Direct Selling: The Pros and Cons

GirlonLaptopDirect selling can be a great additional source of passive income (eventually). Even if you are new to business, direct selling can provide the perfect opportunity to really learn how to refine your sales, marketing, and business-building skills.

Over the last few weeks I have shared some no risk, low risk business opportunities to expand your current business or start a new one. If you missed them you can read about Zero Risk Businesses You Can Start Today and Active vs Passive Income: Why You Need Both on my blog.

In direct selling you are basically an independent distributor of products created by another company, however, you are essentially in business for yourself with virtually no overhead and all the back-end work done for you.

Direct Selling is also known as network marketing or multi-level marketing.

This kind of business venture has a huge upside *if you are willing to do the work.* It is however, very important that you choose the right company, just as growing your career and income also hinges on being with the right employer or in the right business of your own.

Here are a few Pro’s and Cons of direct selling to consider:

Pro’s

  • Freedom based: You are in business for yourself. This is a work from home opportunity.
  • You earn commission, bonuses and residual income upfront for the entire life of the customer. *This varies by company.
  • Earn commission on the volume placed under you by others on your team. *This varies by company.
  • You do not need a significant amount of customers to build a healthy business and income. However, you do need business builders on your team.
  • Low to no investment
  • Low to no overhead
  • No employees necessary
  • No need to carry product, inventory or do any of your own content creation

Cons

  • This is a sales job. If you don’t like selling run screaming (not just from this, but from starting your own business of any kind).
  • In the beginning, you have to start with members of your own warm market. People you already know whether they are current customers, colleagues, friends, or family. If this makes you very uncomfortable this may not be the right opportunity for you. You can, however, participate in a lead purchase program to tap into the cold market or build a cold list from scratch as you might with a typical business model, this just might take a bit longer to get going.
  • Retention, retention, retention. In the beginning you will see it takes scraping your knees a bit to realize that you need to be ultra consistent with bringing new people onboard until you identify your true business partners that will build a business of their own and be in it for the long haul. You will have people try it for month and quit. Realize that product users are great but there is not a lot of incentive for them to pay a premium for those products unless they are earning income from the business. If they have no interest in the business at some point they will most likely fall off. This business takes patience, persistence, consistency and vigor.

I hope this gives you a few pros and cons to consider when deciding if adding a new stream of income or starting your first business in direct selling may be right for you.

If you have any questions, please feel free to reach out to my team at customersupport@kellyroachcoaching.com!

For more business building strategies, check out my podcast, Unstoppable Success Radio!

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