If you’re thinking about joining a direct sales company so you can set your own hours, work from home, and bring in more money for your family, you may be wondering just how much it “should” cost to join and get rolling.
While it varies from company to company, here’s the bottom line: in my 20+ years in the industry opinion it should cost no more than around $300- $500 to get started, sometimes way less.
As a general rule of thumb, you should be able to purchase a start up kit for your new business with the amount of money you’d typically make in a solid garage sale.
Honestly… it makes me ill to think about the people who have fallen prey to direct sales companies that force you to purchase thousands and thousands of dollars worth of inventory before you even begin (*coughLulaRoecough*) and sometimes inventory you can’t even choose!
Think Twice before taking on Debt
Investing a few hundred dollars into your new business is to be expected. Heck, most businesses require an initial investment – in fact, with something like a brick and mortar franchise you can spend tens of thousands of dollars just to get off the ground.
But with direct sales, it shouldn’t be that much. A good direct sales company won’t require that you keep thousands of dollars in inventory in your attic (who wants to do that anyway? Bleh!) or will offer you options to “earn” your way into your new business. m
I’m sickened by the direct sales companies who hype up their new consultants and convince them to go into deep debt to get started with the business. They’ll often tell their new recruits that they can make their investment back if they work hard in the first month.
You need to know that the majorly successful direct sales companies like Mary Kay and Tupperware do not require that you make thousands of dollars in purchases just to set up shop.
Think critically before you put your family in debt to start this new business.
The Role of Risk in Starting a Business
Like I said *before, I understand that any business will require an initial investment. And to be clear, I’m also not a proponent of super cheap business kits. WineShop at Home offers a $50 start up kit, and I personally don’t think it’s the best choice. Going with a $300 start up kit is better because it will give you a greater sense of how the business works and help to really kick things off effectively. It gives you everything you need and honestly, you’re a little more committed when you spend a little more. There is psychology to it but we won’t get that deep today.
As a direct sales veteran (I’ve been working in this industry TWO decades, don’t I look good?), I can tell you from experience that spending thousands to get started is not right. Historically, the most successful companies and consultants start small and work their way up.
So – if you’re considering joining a MLM or a direct sales company, please shop around and look at which company is right for you. Taking unnecessary risk right in the beginning might feel tempting, especially if higher-ups in the company are persuasive, but you truly don’t need to dip into your 401k savings, run up your credit cards or use your entire emergency fund. In fact, you shouldn’t.
If you’d like to talk, or get more information on how WineShop at Home gets new recruits started, click HERE.