If you are considering joining a direct sales or multi-level marketing company, chances are you have done your research and are fully informed on your company choice. But just in case you haven’t yet, here is a list of 61 questions to consider before you make the decision to join any company.
Talk to your sponsor or recruiter and be informed!
61 Questions to Ask Before Joining Any Direct Sales Company
Ask About Company Information:
- When was the company founded, and by whom?
- Are the founders still involved in the company?
- Does the company have a mission or vision statement?
- Are the company financials publicly available?
- What is the company’s annual revenue?
- How many active consultants are there nationwide?
- Can you find out how many consultants are in your local market?
- Has the company expanded internationally?
- Who are the company’s primary competitors?
Ask About Their Products:
- What are the product ingredients or components?
- Is the product tested on animals?
- Are consultants required to carry inventory to sell?
- How quickly are orders fulfilled?
- What is the product warranty?
- Are samples and business materials provided, or do consultants purchase their own?
- How frequently are products released and retired?
- What is the new product catalog cycle?
Ask About Financial Considerations:
- What is the cost to join?
- Are there various business kit options?
- Is there a fee to maintain a business website?
- What is the sales requirement to remain active as a consultant?
- Is there an inactivity fee?
- Is there a penalty or fee to terminate as a consultant?
- Is there a product buy-back process?
Ask About Sales and Marketing:
- Are there customer and/or hostess incentives offered regularly?
- Are hostess incentives provided by the company or the consultant?
- Does the company provide consultant marketing collateral?
- Are consultants allowed to create their own marketing assets?
- Are consultants allowed to advertise on social media?
- Are consultants allowed to pay for advertising?
- Are consultants allowed to build personal websites or blogs for their business?
- Is there a limitation on selling for multiple direct sales brands?
Ask About Compensation and Incentives:
- What is the product commission rate?
- Can consultants purchase product at wholesale price?
- Are sales tracked on retail or wholesale volume?
- What is the commission payment frequency?
- What are the commission payment methods?
- Is there a new consultant incentive program?
- Can consultants earn free product for personal use, incentives, or display?
- Does the company offer an annual incentive trip?
- Are there rewards for top sales or recruiting?
Ask About Team Building Expectations:
- What are the requirements to promote to leadership?
- What are the commission rates on the compensation plan?
- How many levels deep are leaders paid on?
- Once you reach a certain leadership level, are you paid on that level for all future months if you maintain your own personal sales?
- Does the compensation plan include “generations” that separate and no longer count for a leader’s team volume?
- What is the average length of time for a consultant to move to the first level of leadership?
- What is the average length of time that a consultant reaches the top of the career plan?
- Does the company provide an income disclosure statement?
- Are there any restrictions on how or where you can recruit?
Ask About Team Leadership:
- What is the background of your sponsor?
- Do his or her business goals align with yours?
- Who is your sponsor’s upline?
- Does your sponsor or upline provide any team-only training or resources?
- Does your sponsor or upline provide any team-only incentives or challenges?
- Does your sponsor or upline provide any online groups for team or community building?
Ask About Training and Development:
- Does the company provide new consultant training?
- What channels are used for training – calls or webinars? Videos? Email? Other?
- Does the company provide standard training programs?
- Does the company provide leadership development training?
- Does the company provide social media training?
- Is there an annual National Convention or Conference, or regional meetings?
Once you have all these questions answered, the only remaining question is… are you passionate about the product you’ll be selling?
If you are, then jump in.
Direct sales can be a very lucrative path if you have the motivation and discipline to work it. Commission-based sales is not for everyone, but if you have the right support, training, marketing channels, and work ethic, you can make it successfully yours!
Owning your own business doesn’t mean you have to do it all on your own! Come hang out with me over in my free Facebook group: Social Marketing for Direct Sales, with Brenda Ster.