  
|
|
|
||||||||||
|
||||||||||
|
|
| If you are asked to sign up with a direct selling company to become its sales representative, you should find out whether it is a legitimate business operation. Think of the followings: |
| 1. | Are you required to make heavy investment at the start? The start up cost of most ethical direct selling companies is low (mainly to cover the cost of the starter kit or product samples); and there is no required purchase of lots of inventory. Beware of pyramid schemes which often disguise entry fees as part of the price charged for required purchases of training, computer services, loads of product inventory etc. |
 |
| 2. | Is the plan basically a selling plan? A reliable sales plan is built on the retailing of marketable, quality products to consumers. This requires a dependable supply of goods from the company. You are not compensated immediately for the act of sponsoring another distributor. Your compensation includes a percentage of the sales of your entire sales group as well as earnings on your own sales to retail customers. |
| 3. | Will company buy back unsold inventory? Direct selling companies with integrity usually buy back unsold, currently marketable inventory at not less than 90% of the salesperson's original net cost less appropriate set-offs, if any. |
|
|