5 Tips Before You Start A Direct Selling Business

considerations before start direct selling business

The economy has seen large shifts in recent years, with continued, strong growth in online sales. More people and companies continue to embrace the hybrid work model, which has unlocked opportunities for individuals to diversify their income. And whether you are a full-time employee, a stay-at-home parent, or otherwise occupied, you may have looked into direct sales. 

Start This Top Direct Selling Business Easily Today

There are many compelling reasons to start a direct selling business—flexibility to set your own hours, low start-up costs, and a variety of products to sell and companies to partner with, to name a few. But is the world of direct sales safe? How do you know if the opportunities are legitimate? 

Here are five reasons you can rest assured that, by partnering with the right company, direct sales can be a safe avenue to pursue. 

5 Considerations Prior To Starting A Direct Selling Business

1. Ethics In Action 

Someone you know may have been burned by a company or individual promising them quick success within direct sales. Regardless of the first-hand experiences you heard, today’s legitimate direct selling (or multi-level marketing) companies are tightly regulated by organizations including the Direct Selling Association (DSA), Federal Trade Commission (FTC), and the Direct Selling Education Foundation (DSEF). These groups hold companies and their distributors accountable to operate with integrity. 

Potential pyramid schemes these are not—in direct sales, you can earn a modest supplemental income exclusively through selling products you personally use and love. 

2. In It For The Long Haul 

The best direct selling companies have been doing business for decades—USANA Health Sciences is one example, celebrating their 30th anniversary in 2023. You don’t have to be an enterprise expert to know a business must be a well-oiled machine to remain strong and relevant for years on end. There are two sides to monitor for direct selling companies: 

● their operations as a corporate entity 
● the development of their distributor base 

Pay close attention to how companies in the industry train, support, and communicate with their distributors, as this is key to deciding your route to start a direct selling business. 

3. Proven Products 

In this day and age, poorly made products are quickly pushed out by the market. Third-party reviews shed insight into users’ personal experiences, and a quick online search should uncover what people think of the products sold by any direct sales company you are interested in joining. For further reassurance, see if the company’s products have received any third-party certifications or awards. With the backing of an independent evaluation, you can feel good about what you will purchase and sell. 

Speaking of products, another advantage when looking to start a direct selling business is the variety: skincare, cutlery, nutritional supplements, workout gear—you name it. There is likely a product category that will resonate with you. 

4. Less To Invest 

Every direct sales company has its own operating structure that will ultimately determine your initial and ongoing expenses and earning potential. This should be one of your top factors when weighing different businesses, especially if you intend to put forth a substantial amount of effort to earn additional income. 

Workload aside, you will spend a lot less upfront, on average, to start a direct selling business than you would a traditional small business, either online or at a physical location. Concepting a business from the ground up is no joke—it requires significant capital investment and real risk while navigating those first few years. Most direct sales companies and MLM businesses only require a small startup fee, as opposed to the tens of thousands (at least!) to get a regular business up and running. 

5. Someone To Lean On 

When you start a direct sales business, you are in good company with other like-minded individuals who distribute the same products. You share a common bond—something about this company inspired each of you to start a direct selling business. Whether it is the products, the ethical actions of the company, or the network marketing business model, there’s something shared that you’re excited or passionate about. And you are each motivated by an entrepreneurial mindset. 

Make an effort to network with fellow network marketer distributors within your organization of interest and the general direct sales field. If you have hesitations about taking the first steps, have honest, upfront discussions about your expectations with your upline and downline or direct sellers who have experience. 

What Works For You As A Direct Seller 

As you can see, the direct sales sphere offers safe, ethically entwined opportunities with considerably fewer risks than a traditional startup. Hopefully this list puts your mind at ease if you have considered starting a direct selling business or multi-level marketing opportunity.

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