Is direct selling your ticket out of the recession?
Filed under: Entrepreneurship, Recession
The media has been abuzz with stories of struggling workers who are finding salvation in the field of multi-level marketing and direct selling.
The Wall Street Journal (subscription required) recently asked whether door to door sales represents a "safety net in the bad economy." Kelly Spors writes that a recent Mary Kay party surprised her: "About half the time was spent trying to convince me and the other attendees to become Mary Kay sales reps. The pitch: The economy is so bad that, even if you have a full-time job, why not keep a side business in case you get laid off?"
It has a certain allure to it: an income opportunity that you can't be laid off from. Find enough people willing to buy, and you'll always have income. In reality, network marketing is often very different. The emphasis on recruiting over product selling can lead to a business model that has more in common with a pyramid scheme than a "home-based business."
So how do you separate the legitimate opportunities from the scams? It's all in the products and, more specifically, the product prices: Some companies provide an opportunity to make money through recruiting, but the best ones also make it possible to earn plenty of money doing nothing but selling.
Above all, take any claims of income with a grain of salt. Look for actual data on average earnings. For instance, MonaVie's website promises a "unparalleled opportunity that can allow you to capitalize on the surging health and wellness industry", complete with numerous success stories. But the company's Income Disclosure Statement reports that "The average annualized income for all Distributors during this period was $3,539.68." Of course, you're unlikely to be told that at an "opportunity meeting" held by a distributor.
Direct sales may be a good option for some people, but there is a ton of snake oil to be on the lookout for.
Reader Comments (Page 1 of 1)
4-07-2009 @ 10:39AM
Mike Myers said...
Actually, Zac, every single person who attends a Monavie opportunity meeting is given a copy of that very same Income Disclosure Statement. We are required by Monavie to provide this any time we talk about compensation. So it's almost a certainty that they will be given that information, not unlikely. :)
As far as why that average is so "low," well, most of the people fall into the categories of Distributor and Star. Those are individuals who are either just getting started in this business or who are not pursuing the business seriously. Many people are happy to drink their juice for the health benefits and occasionally mention it to their friends so of course they don't make much but they're content with that.
The fact that Monavie distributors do provide that Income Disclosure Statement to prospects should be praised, really. It represents what people really DO make, not some pipe dream of what they COULD make. Maybe you should attend an "opportunity meeting." I think you'd be impressed and you would have a chance to get one of the healthiest beverages on the planet for less than $5 a day and if you wanted to make a business of it you could do that too! I love it and think it's the best opportunity I've ever seen. I feel better every day and my whole family drinks it. We've been nothing but happy from our experience with Monavie.
Mike Myers
mikemyers23@gmail.com
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4-21-2009 @ 11:03AM
Kelly said...
If you are looking for a delicious new business opportunity with a low start up cost, why not become a Chocolatier? Dove Chocolate Discoveries is the first direct selling chocolate company in the U.S. and is a fun and delicious way to make some extra money. The starter kits are only $99 and include training, equipment and product needed to hold four to six chocolate tasting parties. Absolutely no professional cooking/baking experience is required! Go to www.dovechocolatediscoveries.com to learn more about this unique business opportunity.
Kelly,
DCD Team
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6-25-2009 @ 12:49PM
Jason said...
Monavie is a funtastic opportunity; is like the opportunity of a lifetime. It's good news for beverage lovers as this drink will make you energetic and keep you kicking for longer. Everything you do with Monavie is backed up on their websites. So let me know what you think. You can email me lgambler6@aol.com
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