It was after falling in love with the decorative baskets from
The Longaberger Company that Lisa Lashley decided to become a
consultant. She started collecting the baskets from home shows she
attended in 1995 and took the leap into her own business in
1998.
All the research Lashley did on the company, and her years of
being a satisfied customer, helped her make the decision. Today,
she recruits and trains consultants working under her supervision
to grow her Salisbury, Maryland, business--in addition to working
full time as a social worker for the state of Maryland. Lashley,
44, says the fun, warm atmosphere of selling Longaberger baskets
and home decor is a pleasant contrast to the gravity of her day
job.
Her biggest challenge, though, is expanding her client base and
introducing Longaberger to more people. How does she prevent
negative impressions about direct selling? "I try to head that
off before really getting started--to share information and to
establish [good] customer service," she says. "To really
ease someone's mind by not being a pushy salesperson, you
establish a rapport and trust with your customers." The focus
on customer service has helped Lashley and her consultants grow the
business to $100,000 in projected sales for 2004.
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Though sales estimates range widely within the industry--because
of varying products and work scenarios (being part or full time, or
managing consultants and receiving a portion of their sales)--Offen
notes that the average annual sales figure falls at about $13,000.
But he says that figure encompasses the highest earners with large
full-time businesses and a bevy of consultants as well as people
who only do it for a few months out of the year to earn extra
holiday cash. Be wary of inflated earnings claims from
direct-selling companies, though, says Offen. Be sure that the
company and consultants are upfront about how long it took them to
reach a certain selling point.
Reaching on of the highest levels in Mary Kay Cosmetics took
Lise
Clark of Greenwood Village, Colorado, nearly 20 years. She
started her business in 1984, when she was 26. Initially, she only
planned to sell Mary Kay products over the holidays; but as she
started to sell, she saw her income outstripping what she would
earn working several jobs at once. She soon went into the business
full time and, today, expects her area unit sales to hit nearly $2
million by the end of 2004.
Organizing the needs of her business is her biggest challenge,
says Clark. "You have to set yourself up to have a checklist
of what you're doing. If you have to [take] a 'power
hour' to make calls, [then do it]," she says. Today, she
coaches the sales directors who work under her (who are all over
the country) via phone, e-mail and conference calls.
Despite any negative associations consumers might have with
direct selling, the entrepreneurs we've spoken to attest that
the industry is alive and well. Find the right company with a great
product or service and the highest ethical standards, and this
could be just the opportunity you're looking for.
Truth or Dare
Get the facts before deciding if your direct-sales opportunity
is legitimate.
According to Neil H. Offen, president of the Direct Selling
Association (DSA), there are a few questions you can ask to find
out whether a company is shady or just plain wrong for you.
- Is the money you're going to make primarily from
recruiting or from selling the product? Recruiting is generally
a part of direct selling; but your primary income as a beginning
consultant should come from sales of the product or service. If the
company is only discussing recruiting--or discussing it over
everything else--be suspicious.
- Do you risk financial loss by being involved with the
company? "Almost all direct-selling companies require
minimal starting costs," says Offen. "It's usually
$500 maximum." Watch for schemes where people make money
solely (or primarily) from selling startup kits.
- Would you buy the company's product if you weren't
involved with the company? If you don't see a compelling
reason to be a customer (a superior-quality product, good customer
service, a good price, etc.), you probably don't want to sell
the product, either.
- Does it sound too good to be true? As with any business
opportunity, be wary of get-rich-quick schemes, such as promises
that you'll make millions of dollars in six months. Investigate
the company literature, reputation, consultants and customers
before you get involved with any opportunity.
- Is the company a member of the DSA? The DSA has a
one-year application process for new direct-selling companies as
well as ongoing regulations for all members to ensure good business
practices. Check out the DSA website for more industry information.
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