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My Online Direct Sales Business

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thriving scentsy candle businessThis post was originally published in 2010. I’ve updated it and am reposting it in 2015 to show it’s still relevant today.

At least once each week, someone asks me to share how I have built a successful online direct sales business. While I am not a fan of form letters and automated responses, I thought for the sake of time management, I’d turn the response into a post since it’s such a common question.

I work my business entirely online. It’s possible to be successful with direct sales if you have internet marketing knowledge and experience. Without these two vital components, it’s definitely going to be quite the challenge unless you supplement it with offline activities as well.

I have always worked my current candle business online since I started in 2006.  Nine years later, I have never done a home or basket (catalog) party with Scentsy. I’ve facilitated plenty of those over the last 27 years I’ve been in direct sales, but none with Scentsy wickless.

With regard to whether or not there is too much online competition with all the consultants trying to work their business online, it depends on how you look at it. There certainly are far more consultants out there than when I started nine years ago, but there are also so many more leads out there than could ever be satisfied by all the consultants. Also now Scentsy has brand recognition in many sectors, I’m more sought after online today. Initially no one had even heard of Scentsy flameless candles. People tend to be much more leery when they have no idea about the product or company. [Read more…] about My Online Direct Sales Business

Are You Embarrassed to be a Direct Seller?

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If you have a direct sales business, do you cringe at the thought of someone asking you what you do? In social or business settings do you silently hope that the subject of your occupation never comes up? Or if it does, do you mention your day job and omit that you have a direct selling business? Or do you try to come up with something clever to say so that you don’t have to admit that you do “one of THOSE.”

You’re not alone.   I hear this sentiment echo’d on a frequent basis.   But hang with me, I can dispel this myth and show you why it is a great business to be in.

Oh, Is It One of Those?

Let’s face it, direct sales doesn’t exactly have the best reputation as far as being a bona fide business. Sure some of those who are in a direct sales business may speak highly of it, and the top portion of those making decent money may think it’s the best thing since avocados were discovered. But by and large, it’s looked at as “˜One of Those’.   ‘One of those scams; one of those where you pay for the business opportunity; one of those with over priced products; one of those where your family and friends pray each time they see you that you don’t ask them to join or host a party; one of those where you never make any real money.’

Yikes! Yes I did just say that.   I didn’t say that I believe all of that.   I’ve just been in direct sales for 26 years and I’ve heard it all and I’ve received objections and flack that goes along with it.

I Confess.

Yes I am embarrassed to say that I’m a direct seller. There. I said it. I admit it. I love what I do and don’t have a problem with it, but rather than say that I’m a direct seller, I say that I am a business owner. I don’t want people to think that I do “One of Those.” I want to break through the stigma.   I am successful with my business. I’m a Superstar Director with Scentsy Wickless Candles. I do offer a great product, that is affordably priced and of excellent quality. I’ve been with the company since 2006.   There are so many alternatives to running your business than the traditional home party that many of you have shunned over the years. I run my business like a business and not like a cheerleading club or tee-ball league.

It’s not that I think I’m better or above doing “One of Those.”   My college education and experience is in Business Administration and in Homeland Security and here I am hawking wax. Life took an interesting twist for me within the last 24 months and for now; I know I am just blessed to have an income that supports my family as a medically disabled single parent.   Scentsy offers that opportunity to me and to many others.

Personally I think it’d be easier to be loud and proud about what I did if it didn’t have such a weak reputation; though we’d need a major paradigm shift to change the opinions of others about the industry.   I’m doing my part to change the reputation that direct sales is and can be a genuine business, even the name sounds um, less than corporate “Superstar Director.”   I have a hard time saying with a straight face “I’m a Superstar!”   It sounds like I think I’m Mary Katherine Gallagher (Molly Shannon’s Catholic schoolgirl character on Saturday Night Live who dreams of superstardom).   Don’t get hung up on the titles – not the title direct seller and not the title of the ranks.   They’re just words.

I run my business like a business and employ corporate techniques and methodologies to my business.   I don’t get into rah-rah and silly s-p-i-r-i-t. Some people do, and that’s great, it’s just not for me. But if you do like things, you can certainly get that with direct sales, if you choose to.   I just don’t happen to fit in with many of the other more traditional direct sellers.

So Where Am I Going With This?

There actually is a point here”¦ and it’s sharp! Someone once said that direct selling is about Making it Simple and Duplicatable.   I do like simple. But duplicatable, no thanks, not for me.   I say Make It Your Own.   You may totally disagree with me on this one, and I respect that.   I’m just saying that based on conversations I’ve with a whole segment of people who haven’t given direct sales a try based on some misconceived notions.

In spite of the less than respectable reputation that direct selling has in some circles, you can be successful as a direct seller. If you’re willing to work within the boundaries that the parent company gives you; and willing to be creative, you can have a great business where you can earn a decent income. Don’t necessarily poo-poo the idea simply because you don’t want to do One of Those.

Because of my medical disability, I work my business online. I would love to get out more, but limitations prohibit that.   When someone asks me what I do, I respond that I am a Business Owner or an Internet Marketer. Maybe you don’t have the knowledge, skills or abilities to work your business online, but now that you know there are many alternatives to the traditional home party, you should maybe give direct sales a second look.   You could say that you’re “in sales” or you could say that “you have a candle (or gift) business.”

Perhaps now that you know that we don’t all make a list of 100 people we know and we don’t all advocate contacting everyone within a three foot radius to buy, host or join, it might be time for you to take a serious look at Direct Sales.   I think you’ll be pleasantly be surprised.

About the Author: Laurie Ayers is a Michigan work from home mom and a Superstar Director with Scentsy Wickless Candles. She enjoys helping men and women start and maintain a home based business in the US, Canada, Mexico, Poland, Australia, Puerto Rico, Germany, Ireland and the UK. To download a FREE Start Up Guide which provides more details about how to start a home business as well as to learn about our compensation plan go to www.thrivingcandlebusiness.com/how-to-start-a-candle-business/ or for updates on Facebook LIKE www.facebook.com/ThrivingCandleBusiness and twitter @directsalesblog

Ebay Is Not A Threat

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Most direct sales companies prohibit consultants from selling their products on eBay.   On any given day you can do a search of just about any direct sales product and find them for sale or bid on eBay.   Hmm. Go figure.

Many direct sales companies also have someone(s) at the corporate level who is responsible to attempt to shut down these prohibited auctions.   Sometimes they are successful, sometimes not. If some consultants want to sell on eBay badly enough it’s not too difficult to have a friend list the items or to conceal their true identity.

All too often I see forum posts and hear consultants complain and whine about the eBay sales.     These very consultants spend far too much time trying to bust eBay sellers and not nearly enough time concentrating on selling their own products to their own customer base.   If these very people would invest as much time and energy in their own business as they do into the eBay sellers, they’d have more time to figure out all the places to spend their commission checks. [Read more…] about Ebay Is Not A Threat

Are Vendor Events Worthwhile?

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Is it worthwhile to do vendor events for your Scentsy business?Is it worthwhile for your direct sales business to participate in vendor events?

Vendor events are called many things – craft shows, expos, farmer’s markets, flea markets, festivals, bazaars or fairs.   Some are one day events and others can last as long as one week.   Some are as affordable to enter as $25 per booth while others can cost hundreds of dollars or more.

How do you determine if it is worthwhile to participate?

Do the math and make sure you calculate all expenses, including your time. Also consider the cost of goods sold.   A common question is “How much inventory should I bring?”   Bring as much as you can afford without going into debt over it.   Many experienced direct sellers would not do a vendor event without a large supply of cash and carry. People want it NOW; they don’t want to place orders; they won’t give money to a stranger in hopes that they’ll get the product in a few weeks; they don’t want to fill out any contact sheet – they just want to buy the goods and go. They’ll buy whatever you have – impulse purchases.

Some people set up a small display, without much on-hand inventory and choose to do events in hopes of future sales. That’s too much of a business gamble and far too much of an investment of non-income producing time in hopes of orders later.

Below are some factors to consider when calculating return on investments before deciding to do a vendor event or not.

Based on a 25% commission rate, if the booth fee is $50 you’d need to sell at least $200 just to break even on cost of goods sold – and that does not account for your valuable time, investment in business cards, samples, catalogs, and any display pieces (tables, table cloth, racks, cases, signage, etc.)

If you sold $500 at the show then you’d only profit $125 (assuming you’re at the 25% rate and did not invest any other monies) Figure between product preparations, pack up, travel, set up, time working the booth, tear down and return travel, you had 12 hours invested. That’s earning just a little over $10/hr, yet you still have to deduct taxes from that rate.

That said – if you had on-hand inventory and sold $500 product at the event, you’d make about the same amount of money you’d make at McDonalds.

Take the same above example, only this time figure what you would make if you sold $200 worth of inventory.   You’d be working for free and the event would have cost you money.   Now figure this example without the inventory or without the sales?   Pretty glum picture, isn’t it?

That is not to say that vendor events are never worthwhile.   Sometimes they can be very profitable and a great way to advertise to the masses.   It is just vital that you do the math first and actually calculate your incomes to expense ratio.

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About the Author: Laurie Ayers is a Michigan work from home mom and a Superstar Director with Scentsy Wickless Candles. She enjoys helping men and women start and maintain a home based business in the US, Canada, Mexico, Australia, New Zealand, Puerto Rico, Germany, Ireland, UK, France, Austria and Spain. To download a FREE Start Up Guide which provides more details about how to start a home business as well as to learn about our compensation plan go to www.thrivingcandlebusiness.com/how-to-start-a-candle-business/ 

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