Direct Selling Companies – Consider the Costs of Doing Business

Many people are looking for ways to make money from home. One popular home based business model is Direct Sales. Sometimes called party plans, direct sales companies include businesses like Avon, Mary Kay, Tubberware, and Ameriplan.

Direct Sales and Party Plan Companies are also called network marketing companies. They focus not only on selling products or services, but also recruiting other salespeople into the company. These type of home based businesses are best for people with outgoing personalities who enjoy hosting parties, inviting people to events, and talking to strangers. If you decide to sell products or services for one of these companies you will usually be an independent sales representative or independent contractor, NOT an employee. You most likely will be paid commissions when you sell a product, or when someone you recruit or sponsor into the business, sells a product. If you don’t make any sales, you won’t make any money.

There are usually costs associated with doing business, and one must consider these costs prior to joining the business. There may be monthly fees to pay, which may cover your company website or national marketing campaigns. There may also be costs associated with the products you sell. The independent consultant may be required to buy the products first at a wholesale rate, then resell the product to customers at retail price, thus keeping their profit. Other companies may NOT require the independent sale representative to carry the inventory, but rather the items are drop shipped directly to the consumer. Customers may be able to order products from a company website or only from the independent representative. The independent sales rep may need to pay to marketing materials, products, samples, training courses and monthly fees.

Before joining any company, find out the actual costs that are mandatory, like a required monthly fee. Then try to get an estimate of variable costs, like advertising expenses, from an independent rep already in the business. You may also want to talk to people who have “failed” or “quit” this business. They may give you a more accurate description of the costs involved. Calculate how many products you would need to sell per month in order to just break even after your expenses are paid. If this number feasible? How many hours or parties will you need to host to meet this minimum amount of sales? Will you have additional income from the sale of products from a company website or do all product sales come from in person transactions? These are all things to consider when deciding to start a home business in direct selling or party plan type companies.

Before joining any company as a sales representative, make sure to check out their credentials with the Direct Selling Association at www.dsa.org. Also make sure to read the Better Business Bureau report on their company.

Internet Marketing Appeal

Why is internet marketing so popular? What makes it so special? Compared to traditional marketing what makes internet marketing different?

The answer is quite simply, it’s cost versus it’s reach. In traditional marketing the choice of media is key. Internet marketing lets marketers choose between a wide variety of media. From newsletters, to video, to even one-on-one conversations.

One of the biggest benefits of internet marketing over traditional marketing is the low cost of entry. Just about anyone can throw up a Squidoo page at little or no monetary cost. This although a great benefit, is not the most important one.

Another benefit that online marketing has over traditional promotion tactics is the ability for instantaneous feedback. This is a main staple of direct response marketing. I’ll tell you want, the direct-response and direct mail kings of old would have a field day with the internet and world-wide-web.

The internet allows for almost instantaneous feedback. Meaning you can see if what you are doing is working or not. For example you can have stats on your website to see if the forum post you did a few minutes ago attracted any visitors.

Or you can test if the email you just sent to 7,000 people got you any sales. Or you can put up a little ask campaign, surveying your prospects thoughts, and get answers right away that you can put into your next product.

The feedback loop for online marketers is great, however that’s not even the best benefit of internet marketing. By far the biggest reason why internet marketing is a revolutionary form of marketing is it’s enormous reach.

The internet literally connects the world together. If you have a website, literally your reach if over a billion people. Over a billion people can visit your website, see your business offer, at little cost compare to traditional media.

A combination of the three, low-cost, instant loop and broad reach will provide online entrepreneurs with endless amounts of opportunity for some time to come.

3 Tools You Need to Make Money Online With Internet Marketing

Internet Marketing has been one of the best ways to start a business (an income stream) for a long time now, and it looks like it’s only going to get better.

The fact is, this business model has no competition in the ways it can deliver income for work put in. You can start for a couple hundred dollars and, with time and dedication you can build yourself an automated income website that will send you money for a long time. Then build another.

Internet marketing (direct sales by means of the internet) only need three things to come together…

1.  A promotion of a service or product that a lot of people want or need.

2.  A place to display the promotion. This ranges from a webpage, to a blog to a HubPage to a Squidoo lens. You could even do it with just a domain name that redirected to an offers landing page.

3.  A method of generating traffic. (visitors, people, folks, customers, prospects, etc.) But not just any old type of traffic, you want the kind of traffic that is in the market to buy what you are selling. This is the great thing about Internet Marketing, the capability of sorting traffic into probable buyers versus tire kickers.

It’s pretty simple to understand. If you have a good offer, and you have it nicely displayed, and the traffic that is coming to the offer is actually interested in what’s for sale, it’s a winner. Change any one of those things and you may not have a winner at all. So combine all three to “make money online” a certain result.

So, how do you find a good offer?

Go to ClickBank, for starters, and make a list of the top three products in the ten categories and you’ll have a great list of thirty to choose from!

So, how do you get a place to display your offer?

I recommend a WordPress blog used as a website. They are easy to use and Google likes to send traffic to them. You can put anything on a WordPress blog simply by copying and pasting, plus affiliate links are a piece of cake. One more place is Squidoo. Many marketers use ONLY Squidoo to present offers and generate traffic. Including me, but I use WordPress for bigger sites and Squidoo to drive traffic to them.

And, how do you get the “right traffic” to that offer?

There are many solutions for generating traffic and the best one for you will be the one you are the best at. They all work. The degree to which they work is often directly related to how well you execute on the method.

For example, if you want to generate traffic by writing articles, the better you get at it, the better your traffic results will be. Same goes for other methods.

One way to generate the right traffic for good sales is to put the certain keywords on your sales page that your targeted traffic is highly likely to type into Google when searching for certain products. This is referred to as Search Engine Marketing and it is sort of the holy grail of traffic generation because it combines targeted traffic generation with the fact that it’s free.

If you are just getting into the idea of making money online you would be well served to ignore the sales pages that claim you can be rich overnight by purchasing a $47 ebook. Internet Marketing is sales and commerce and it requires a certain level of professionalism.

That said, it is good to remember that Internet Marketing really can be done from home and that it really can be automated. That, along with the potential for real income, are just some of the benefits of online sales and marketing.