Looking for a Direct Sales (Party Plan) Company? Do You Know What Questions To Ask?By Cinnamon Henke
So you know what products you want to sell, but how do you pick the right company? By asking questions, but what questions should you ask?
Make sure to ask questions like these:
How much is the commission (also called discount) some companies start you out at a base commission, and then later bump you up to a higher commission. Sometimes you get a raise based on sales, sometimes it's based on if you build a team. Also some companies give you one percent for commission, but give you a higher percent as a personal discount to build your kit.
How do you get paid? Most companies have you keep your commission up front, some have you submit the full order amount and cut you a check later.
What is the hostess program and who pays for it? Some times the rep pays for all of it (minus their discount) Some companies pay for the all of the hostess program and some companies pay most of the hostess program but have the rep pay a co-pay.
How much are business supplies like catalogs, order forms, and invites? Ask to see a catalog and other business supplies.
What are the start-up costs and what do you get in your kit?
Do you have to get a merchant account to take customer credit/ debit cards?
Are there any sales quotas? Quotas are not necessarily a bad thing, but they need to be reasonable.
Is there an annual renewal fee?
Are there any advertising restrictions?
Can you have a website?
Also, it’s important to ask who takes care of the sales tax. It’s not hard to do your self, but you might want the company to do it.
If you are interested in building a team then you might want to ask what the management levels are, how much commission you earn on team sales, what is required to maintain each level?
You might have more questions to ask, write a list of what is important to you, and start asking!
