Direct Selling

What are the Advantages and Disadvantages of Direct Selling?

Hilton HotelsDirect Selling? Without a doubt, most of us who are vigilant about looking for extra income have heard of direct selling. It can be a good way to build a passive income on the side or full time. But, before reaching to that financial success, we need to remember that it is not exactly easy money.

For someone who is new to the concept of the business. It is the best path to learn your skills in sales, marketing, and the overall business idea. It is through direct selling.

What is Direct Selling?

World Port SeafoodDirect selling is otherwise known as multi-level marketing. Sometimes it is also called networking marketing. In this kind of business, an individual becomes a partner. An independent dealer or distributor of any product manufactured by another company.

But he or she will run the business themselves.

The dealer will handle the business, identify and target the market. They do the selling and develop strategies that will make it grow.

Yet, it must be within the boundaries of the company’s policy on how you can really maximize making money. It depends on the scheme of the company we do connect with. It differs from one company to another, like hitting quota, percentage, profit sharing, and others.

Many have done and made good money off it, so it is worthy to draw our attention to the up and downside of direct selling. To help us weigh things better.

What are the advantages and disadvantages of direct sales?

Photo by Annie Spratt on Unsplash

It sounds so promising, so here are the two sides of the coin. To help us understand and make the best decision before jumping over.

Advantages

Photo by MARK ADRIANE on Unsplash

Photo by MARK ADRIANE on Unsplash

Pro # 1: Start-up cost is low-risk potential.

Since the cost of setting up this kind of business is lower than other business, the risk at stake is less. Whether the initial stage of the business fails or succeeds, it is worth the try. It will still look beneficial to the entrepreneur as experience is the best teacher.

Pro # 2: Designed to be a home-based business.

If you are a mother and is looking for an income, direct selling is a good start. It can be done in the comforts of our home while taking care of the kids. Or, for anyone who is not comfortable in an office set-up, this might work best for you.

Pro # 3: The parent company will provide marketing and promotional materials.

As part of the business package, you paid it’s given. It includes the management system, sales, and commission tracking.

Pro # 4: Time flexibility.

As an owner and boss of your business, you can free will to manage your working hours. Yet, be mindful that the effort and time you will spend is proportional to your earning potential.

Disadvantages

Photo by Nikita Kachanovsky on Unsplash

Photo by Nikita Kachanovsky on Unsplash

Con # 1: The pressure of recruitment.

It gives direct selling it a poor image. It makes the idea difficult as only a few are willing to do that.

Con # 2: Time Consuming.

In contrary to the idea of time flexibility, your effort to motivate your team takes a lot of your time and focus. Good management of the group is very important. Or else, getting the best downline that can work on their own with vigor is best, but it is hard to spot.

Con # 3: After all, it is all about sales.

The pressure does not only end in the recruitment. Keeping up with your sales also gives real struggles for some. Most especially if you are new and your sponsor won’t be able to lead you quite well, which sometimes happens.

Con # 4: Intense marketing idea which demands patience and time to develop business.

To get the return on your investment and to reap profits. Selling the product to friends, family and even cold markets will be necessary. Some will take part in lead buying system to get new customers or build the business, and this step takes a long time.

What are our final thoughts?

OmahaSteaks.com, Inc.To wrap this up, direct selling is a great way to start a business. There will be pieces of training on the basics of business. That is believed to be very essential and the core of a commercial industry. If someone is still a neophyte, then it will be beneficial for you.

Yes, it is not an easy type of money. Who says making a big potential income will give us an easy start? Definitely none.

It would depend on the determination you pour into your dreams. With hard work mixed with working smart will really make a difference.

Remember to make research and do your assignment. Before signing up for any direct selling companies. The reputation will give us a heads up, yet digging into deeper on its real potentiality to take us to our goals.

If you think you got what it takes to be part of the direct selling industry, why not give it a chance?

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The Pros and Cons of Direct Sales

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