In starting up my company, I have put a lot of thought into the different opportunities I could use to grow my business (ie: open a store, online sales, direct marketing, etc.) One of the ways to grow a business I feel is often given a bad reputation is Direct Marketing or sometimes known as Network Advertising. I put together my thoughts on it and what I feel makes it good and bad, whether it is or isn’t a “scheme.”It’s a SchemeNote: This was not official research, just my thoughts on how to know.1) You have to pay for training. If you were hired by a company, they pay you to train, so it should be the same of an at home business.2) You have reoccurring fees to pay. The only time you should be paying reoccurring fees is if you’re a licensed professional. Otherwise, paying a monthly fee so that you can make money is nonsense.3) You don’t know the products. If of a two hour party, you only spent thirty minutes talking about product, there may be something wrong with the focus. If they are pushing you so hard to sell something, you better know exactly what it is and why you would want to sell it.4) You don’t know what you’re selling. I went to a Business Opportunity meeting and after an hour of discussing the business and how you make money, I finally asked, “What is it we are selling?” The man said, “Phones.” Further questioning revealed that he did not know, after being in the business for 6 months, if they were selling Phones or Phone Systems. He had simply been selling the Business Opportunity and worked on recruiting. Unfortunately, when he finally left he had “invested” $50,000 that he never came close to getting back.
5) Lesson One is Recruitment. Not all methods are bad of course. However, if the instructions are something like, “Call your Aunt and say…” or call your friend and say, “Remember you owe me a favor…” If the first step is recruitment or guilt-tripping your family and friends into something, I would avoid that tactic. The priority should be the product and the way to help the products to sell is recruiting and hosting parties. But keep the product at the forefront.6) It’s not a Pyramid. Many people run when they see a Pyramid or think a company is one. If the company tries to hide this fact by showing you pictures of other networking shapes, be cautious. A company that is upfront and honest with what they are is where you want to be.
7) I’ll help you out. If the person who is trying to recruit you is so desperate to sign you under them, that they will pay initial costs, be wary. You may end up in a situation when you are doing under-the-table loans and get yourself into a lot of trouble. If they really want you to sign and it’s a good business, they’ll wait for you to be comfortable.
It’s Not a Scheme
1) They ask you questions you can’t answer with yes or no. This isn’t a con. It’s simply an effective way to get a direct answer. Example would be, “Which products are you getting today,” rather than, “Do you want anything today.” It’s a better selling tactic to ask the former.
2) They share with you a “business opportunity.” It is a business opportunity, but you have to be honest with yourself. You only make money by how dedicated you are and you CANNOT make money sitting on the couch watching TV. This is a way to make money and some are successful, but know the numbers going into it and set realistic goals.
3) Your friend wants to let you in on this great secret. That doesn’t make this evil. Again, an effective way of selling. You’re more prone to buy something if it comes highly recommended by a friend. Putting “secret” or “only by word of mouth” on it simply makes it more exciting and makes you feel that you are in the inner circle.
4) It’s a pyramid! Just because it shapes that way doesn’t mean you need to run. Think of an office and what shape you would put them in? Seems like a pyramid to me. You can make money from selling this way, but know that the top makes the most and if you want to attain success you need to work to have people sign under you. Double check the fine print of course, but if you are actually profiting from sales, it’s not legally a scam. 5) The products sell themselves. If true, this is a great thing. I went to a co-ed kitchen supply party and I didn’t know who was the sales representative. There were products and catalogs on the table and everyone was telling their success stories with the products and what they love. The key is the products and if this is the focus, I think the business will be fine in whatever medium or style they choose to sell in.
6) You don’t feel comfortable. Just because you don’t feel comfortable selling in this way or being apart of a business set up in a direct marketing fashion, doesn’t mean it’s scam. However, listen to your gut. If you don’t feel comfortable, don’t do it. You will only make money if you want to get out there and make money.
7) There is a minimal start up fee. I don’t enjoy the idea of having to pay $50 to start, however when you think of the business owners this is a very helpful strategy. The business owner, when you sign up, is going to send you samples, pamphlets, flyers, and all things branded. There needs to be some security that you will actual use what they send and that you will sell. So, think about what they are asking to start up and evaluate: 1) Do I believe and want to sell this product? 2) Will I get training or support? 3) Do I know where this money is going and can I immediately see what I am purchasing for this amount? 4) Does the amount requested make sense?All in all, NW Allen is NOT a Direct Marketing company. We felt it didn’t match our best interests. However, we feel that many people are confused on this issue and after our research of deciding if it was for us, why not share some of our findings with you?
Quote from Andrew Little, who is a very inspiring Artist who happens to be the Great Mind behind Skankeywear's line of Great Minds Think and also our Paisley design. We are thrilled to be working with such a talented designer.
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