Is direct selling for you? Posted On: Sunday, Nov. 1 2009 05:02 AM By Richard Kitterman
Special to the Daily Herald

With the holidays fast approaching, many consumers are looking for ways to make some extra money while others may be looking for a new career. Millions of people have found a way to be their own boss and make money on a flexible schedule through direct selling.

Success at direct selling does not require any special education or experience but it is not for everyone. Better Business Bureau suggests consumers ask themselves a few questions when considering a new venture in direct sales.

According to the most recent figures from the Direct Selling Association, approximately 15 million people in the U.S. sold an estimated $30.8 billion in products and services through direct selling in 2007.

Nearly one-third of the sales were for clothing and accessories such as cosmetics, jewelry and skin care. A quarter of the items sold were for home items, including cleaning products and cookware.

Understandably, many people get involved in direct sales with national companies to make extra money. Consumers just need to be careful of direct selling opportunities that are nothing more than a scam.

BBB recommends asking yourself the following five questions when considering whether a career in direct sales is for you:

Is it just a pyramid scheme? Pyramid schemes often look like legitimate direct sales opportunities. The red flag identifying a pyramid scheme is that the money-making potential lies predominantly in recruiting other people to pay up-front fees to join your team.

Do you have what it takes to be a good salesperson? Some people are born with innate qualities for sales success such as self-motivation and assertiveness. For those who weren't born with these traits, they can be developed and refined. Before starting out, arrange to shadow a few successful direct salespeople who can show you what it takes to be successful.

Is this a product you believe in and can sell? If you are selling a product you believe in, most of the work is already done for you. Excitement over a product or service is infectious and will grab potential customers. If you wouldn't buy the product yourself, you're going to have a hard time selling it.

Do you have the proper resources for direct selling? While startup costs are low for a legitimate direct sales opportunity, it helps to have a few basic resources. A car, a computer, a filing cabinet and a dedicated workspace in your home are all helpful in order to hit the ground running.

Can you trust the company? Ask the company plenty of questions and read company literature thoroughly. Find the time to sit down with existing representatives and customers for insight on both the company and their products. Familiarize yourself with the official Code of Ethics established by the Direct Selling Association (www.dsa.org/ethics) so you can identify any potential violations. Elements of the Code may assist you in formulating questions you may want to ask of the company.

For consumer information, Reliability Reports on businesses, reports on charities, to schedule a guest speaker or to file a complaint on a company, visit the Better Business Bureau online at www.centraltx.bbb.org or call 699-0694.

Richard Kitterman is executive director of the Better Business Bureau serving Central and South Central Texas.