Getting Started with MLM - Direct Sales

The Seattle Times:

“If you need to invest $150, you should get something reasonable in return, whether it’s samples, catalogs or training materials,” she said.

“If you have to pay $4,000 just for the right to recruit other salespeople, that’s a huge red flag.”

Also, make sure there’s an actual product that’s being sold to the ultimate consumer of that product.

“You should be compensated primarily on what you sell or what your recruits sell,” she said. If compensation is based only on how many people you bring into the business, that’s another red flag.

Ask about the company’s buy-back policy for unused merchandise. The association requires its members to repurchase at least 90 percent of unused inventory.

Finally, be realistic about the earning potential in direct sales — and the work required.

The median income in direct sales is about $2,500 a year.

“Most people in direct sales only work a few hours a week, with a goal of making a couple of hundred dollars a month, so that’s not surprising,” Robinson said.

Those who work full time average about $44,000 a year.

“Direct sales can be a great opportunity, but you need to do your homework and you need to trust your gut,” she said.