Direct Selling Comparison Worksheet
When you start your search for the perfect Direct Selling or
Home Party Line business, here are some valuable questions to
ask when comparing companies and opportunities:
1) Start up cost should be minimal. Start up cost in direct
selling and network marketing companies are usually modest and
mainly to cover the cost of the sales kit. What is their start
up cost? What comes in the kit?
2) Some companies require a monthly purchase. Is there a monthly
minimum purchase requirement and if so, how much is the monthly
investment?
3) Most companies submit the local state sales tax, however,
there are a few that do not. Will I be required to submit my own
state sales tax?
4) Check with each company regarding their return policy. This
will be vital to your business. Can I return unwanted or damaged
products and if so, what is the return policy?
5) Do you have a "buy-back" policy? Some companies offer to
"buy-back" unsold marketable products purchased within the 12
months prior, should you decide to quit the business for 90% of
the price you originally paid. Do they offer a "buy-back" policy?
6) Some companies require Independent Representatives to pay for
portions of the Hostess gifts, etc. You should know upfront
whether part of your commission earned will go to cover these
cost. This will reduce the actual amount of commissions earned.
Am I required to cover part of the Hostess Gifts or pay admin
fees, etc.?
7) It is always smart to compare catalog and supplies cost as
they vary by company. What do your catalogs and paperwork cost?
8) Customer shipping charges are important to your business and
can vary greatly from company to company. What are the customer
shipping charges?
9)It is customary for companies to have a monthly or quarterly
sales requirement to stay active and/or receive overrides. What
is the monthly/quarterly requirements?
10)If you plan to participate in local fairs, festivals or
events, you will want to know whether the company allows you to
sell "cash & carry." Many will not as they prefer
Representatives to provide one on one customer support and book
to increase sales. Do you allow Representatives to sell products
at local fairs and events?
11)Many companies provide Representatives with a company
approved website. If you plan to market your business online,
this will be vital to your success. Does your company provide a
website and if so, what is the cost?_______ If they do not, can
I design my own?
12)Some companies authorize Representatives to deduct their
commissions prior to sending in the Show Order, while others
require all monies collected forwarded to home office and then
commission checks are issues monthly or twice per month. How are
you required to submit payment for a show?
13)How often are commission checks issued..monthly, twice
monthly or weekly? My experience has been that most issue
monthly. Be sure to ask as there are some that offer twice
monthly and weekly.
14)Many companies now ship their products directly to the
consumer or Hostess, however, there are few that require
Representatives to delivery a Show or products. Am I required to
delivery products?
15)With some opportunities, Representatives are encouraged to
stock products to have on hand for eager customers. Will I be
required to stock or carry inventory?
16)Most companies allow their Representatives to purchase
products or display items at a special discount. Are
Representatives allowed to purchase products at a discount and
if so, what is the discount?
17)Have them explain the commission structure and levels of
achievement as it varies greatly by company. What is your
commission structure?
18)Do they offer additional incentives, such as trips, a cash
bonus and etc.?
19)What type of support is available?
As with any business, finding what works for you and your
lifestyle will be the key. Take time to research opportunities
and consider whether the business and support team are a good
match for you.