How do you pocket money with direct sales?

How do you make money you can put into your pocket with direct sales? For so many of us we see the ads luring is in to direct sales.  So you might be wondering what is direct sales.  The The Work At Home Woman blog defines direct sales as… … the process of selling products face-to-face away from a retail store location. Many times this is done through in-home shopping parties, presentations, and catalog sales. For a minimal fee, companies give you a starter kit that includes everything that you need to start your own business. But how do you make money?  This is still the biggest question.  And the answer diggers for each company.  The company I belong to offers a basic 20% discount on products.  Of course the percentage increases as the order size increases. Up to a 55% discount… But that really doesn’t answer the basic question.. how can I put money in my pocket? Essentially all direct sales companies operate the same way.  You gather orders from your customers, you order products from the company at a discount, and the difference is what you put in your pocket.  Sounds pretty simple right?  This basic math model computes that if you “sell” $100 to your customers, you pay $80 to your company,  you put $20 on your pocket. Although it’s not quite that simple, that is the basics. The problem with that basic math is it doesn’t take into account the cost of doing business.  Even though you don’t have rent, utilities, or inventory with direct sales, there is still a cost of doing business. To be successful in direct sales you will need to have a catalog for customers to look at,  you have the cost of gathering orders, (pen, order forms, printing) and usually you cover the costs of getting product to your customers. So using our basic math model, the $20 that you pocket isn’t really pocketed.  If your catalogs cost $1 each and you have 10 catalogs, you spent $10 on them. You need to purchase items to  gather the orders, I’m guessing those items probably cost you about $5. And Finally You need to get the products to the customers so you probably spent about $5 on fuel. As you can see, using the basic $100 in sales model.  You paid $80 for the products, $10 for the Catalogs, $5 for supplies to gather the orders, and $5 in fuel to get the product to your customers.  So, You actually didn’t put any money into your pocket.   So what is the big appeal for direct sales?  You can put real money into your pocket, and lots of it, but you also have to put in the work.  It’s not a get rich quick endeavor as many would have you believe. If you approach direct sales as you do any other job, and work 40+ hours a week, yes you can put money into your pocket.  It’s basically up to you and how hard you are willing to work.

About the Author

Monica is an  Independent Sales Representative from a small town (900 people) in central Idaho.  She has received awards for sales growth and awards sales levels of $20,000+ for the past several years.  She is a wife, a mother,  a grandmother, and am RN.   She has built a social selling business both in person (traditional door to door) and online (with company sponsored e-store)  Shop Online Now and your order ships right to your door.
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