Winsett: Figuring out if direct sales are for you

Q: I am considering a direct sales job; what should be considered in making this decision?

A: Millions of people have found a way to be their own boss and make money on a flexible schedule through direct selling. Being successful at direct selling doesn’t require any special education or experience but it isn’t for everyone. Better Business Bureau suggests people ask themselves a few questions when considering a new venture in direct sales.

Certainly many families are able to survive tough economic times by getting involved in direct sales with national companies like Mary Kay, Avon, Pampered Chef or CutCo, but direct sales aren’t for everyone and some direct selling opportunities are pyramid schemes in disguise, so the message is: entrepreneur beware.

BBB recommends asking the following five questions when deciding whether to start a career in direct sales:

* Do you have what it takes to be a good salesman? Some people are born with innate qualities for being a salesperson. They are outgoing, friendly, good public speakers and self-motivated. For those that weren’t born with these traits, they can be worked on and refined; however, direct sales aren’t for the terminally shy or for people who need constant prodding to produce. Before taking the plunge, arrange to shadow a couple of successful direct sellers who can show you what it takes — every day — to be a success.

* Is this a product you believe in and can sell? If you are selling a product you believe in, most of the work is already done for you. Excitement over a product or service is infectious and will grab potential customers. If you wouldn’t buy the product yourself, you’re going to have a very hard time selling it.

* Do you have the proper resources for direct selling? While startup costs are low for a legitimate direct sales opportunity-around $100 for a startup kit-it helps to have a few basic resources. A car, a computer, a filing cabinet and a dedicated workspace in your home are all helpful in order to hit the ground running.

* Can you trust the company? Ask the company plenty of questions and read company literature thoroughly. Familiarize yourself with the official code of ethics established by the direct selling Association so you can identify any potential violations. Find the time to sit down with actual representatives and customers for their insight on both the company and the products. Take your time in choosing the right opportunity and always check out the company with BBB at www.bbb.org.

* Is it just a pyramid scheme? Pyramid schemes will often pretend to be legitimate direct selling opportunities. The biggest red flag for a pyramid scheme is that the money making potential lies predominantly in recruiting other people, like you, to pay to join. The money is then filtered up the pyramid, so it follows that pyramid schemes often require large startup fees.

For more advice on getting into direct sales, visit bbb.org.

Get answers to your questions each Friday from Jim Winsett, president and CEO of the Better Business Bureau Inc., which serves Southeast Tennessee and Northwest Georgia. Submit questions to his attention by writing to Business Editor John Vass Jr., Chattanooga Times Free Press, P.O. Box 1447, Chattanooga, TN 37401-1447, or by e-mailing him at jvass@timesfreepress.com.