Direct sales companies are a dime a dozen these days. And with so many out there, how do you know which ones are good and trustworthy?
The first thing you should know about direct sales companies is that they are just like any other company. There are good ones and there are bad ones.
But with a little bit of research beforehand, it’s easy to spot the difference between them.
In this post we will be talking about what exactly a direct sales company is, how to spot scams or shady tactics and the pros and cons of joining one.
By the end of this post, you will know if joining one of these companies is right for you.
And I’ve compiled a list of 29 companies that you can join today, but a note before you go joining anything: do your research! Visit the company’s website, read reviews and get a sense of their culture. You will be happy you did.
What are direct sales companies and why do they exist?
Direct sales companies are organizations that sell their products or services directly to the consumer.
They don’t have middlemen like traditional businesses and instead rely on a network of independent contractors, who want to make money while helping others do the same.
Many direct sales companies might say they provide an opportunity for people to create their own businesses and take control of their financial futures.
They are often referred to or thought of as a business in a box. You get the tools and training you need to get started, but it’s up to you to do the work in finding customers and buyers.
Pros and cons of being an independent contractor in direct sales.
Direct sales companies tend to get a bad name for themselves. Or, even worse, are commonly known as pyramid schemes.
We will get into that in just a bit.
But, there is no denying that there is money to be made in the industry. And, there are people that have legitimately made working in these companies their primary source of income.
So, let’s take a look at some of the pros and cons of working with a direct sales company.
Benefits of being an independent contractor in direct sales
- It’s a business in a box model. You’re given the tools you need to get started quickly.
- With technology today, there is an opportunity to run your business purely from home.
- You are your own boss and set your own schedule.
- Generally speaking, you have what is called an “upline”. Or are part of a team. Which could serve as a support system as you get started.
- It can be a way to make extra money or even possibly become a full-time income.
- You invest a fraction of the cost you would to start your own company from the ground up.
- It does not require experience to get started. Although a general understanding of business will give you a head start.
Cons of being an independent contractor for a direct sales company
- You will still need to put in the work and sweat equity, if you want to succeed. They are not get rich quick schemes. (not really a con, but something to be aware of)
- Because of the negative thoughts surrounding direct sales, it could affect your ability to find and keep customers.
- If this is something you want to pursue full-time, keep in mind you are not given a salary or hourly wage. Therefore, you would need to make enough from your commissions to survive on.
- You will have expenses as an independent consultant. Most notably, purchasing products to review yourself, insurance (full-time), mileage and other business costs.
- Market saturation can be a problem if you have many consultants in your area.
- These are selling businesses. You have to be willing to share and sell the products with others.
- You have to watch for shady selling tactics. There are people who will try to sell you on the business, only to abandon you once you join.
If you find these cons a bit scary and are open to other opportunities, then I highly recommend looking into blogging.
Blogging gives you the ability to work at your own pace, is affordable to start and allows for multiple income streams. If you want to learn more about blogging, check out this post as it walks you through all you need to know.
Are all direct sales companies pyramid schemes?
One of the biggest misconceptions about direct sales companies is that they are all pyramid schemes.
Let’s make one thing clear, pyramid schemes are illegal.
A pyramid scheme is a form of fraud that makes money by recruiting people who pay to join. The only way for these companies to make any more money is if they recruit new members.
With direct sales companies, you sell physical products. The company relies on it’s network of independent contractors for selling their product. And money is exchanged for goods.
You should not be required to recruit people under you in order to make money with direct sales companies.
Now, with that said. Companies that do make most of their revenue from recruits buying their product could exist. And they may, very well, be teetering on the line of a pyramid scheme.
But to generalize all of them into one bucket would not be a fair assumption to make.
I have personally bought from consultants with direct sales companies before as I truly enjoyed the product. I would not categorize companies, such as these, as a pyramid scheme.
What to Watch for Before Joining a Direct Sales Company
Direct selling or multi level marketing hasn’t got a bad name for nothing. Like I mentioned at the beginning, there are good companies. And bad.
If I were to join a direct sales company today, these are exactly the questions I would be asking to ultimately decide if I’d join or not.
- Do they earn most of their sales through actual customers or through their recruits? What you are looking at here is to determine if they have a viable selling product. If most of the revenue is coming through recruits then that could be a sign the product is not selling on its own.
- How much initial investment is required? Is it so much that it would require you to go into credit card debt or put a dent in your family savings? If the answer is yes, skip it.
- Are you required to purchase a certain amount of inventory? If so, how much? Again, would this be a financial burden on the family?
- Are there any monthly quotas that need to be met before getting paid?
- Do the reps take care of their customer base or are they just focused on recruiting? You want to make sure that if you sign up, your customers will be taken care of and not neglected by other representatives.
- Do I personally love the product? If I am going to be selling something, I need to absolutely love it, myself.
- Are the recruits in love with the business or do they just love selling people on the business? I would not join under someone until I have seen that they are actively “hosting parties” themselves and love what they do and sell.
Can money be made with direct selling?
The truth is that most people that enter into the direct sales industry will lose money and fail.
And, keep in mind, this is true with any business venture.
It takes a lot of time, effort, commitment, grit and sometimes a little luck to be successful.
Some common reasons why people may fail may include:
- They expect money to come in fast. Just like building any other type of business, you first need to work on building a customer base.
- They don’t have the time or energy for it. It’s not an easy business. And people who are just looking for quick money, probably won’t find anything but frustration in this industry.
- Being overly “sales-y” (that icky type). Ever have someone drop in your DMs with a “new awesome, ground floor opportunity” unsolicited? More often than not, this is a huge turn off to people.
- No support from family or friends. It can be hard to get into any business without support from your innermost circle.
- Team/ Upline is unsupportive. The benefit of having an upline and team is so that you have people to reach out to when you get stuck. If this is missing, it can feel like you are going at this alone. Which could lead to demotivation .
But, with all of this said, it is possible and there are people who make a great living at this business model.
Some have even gone on to make a six-figure income off of direct sales companies.
Tips to get started with direct sales companies
The best thing you can do before getting started with any direct sales company is research the company thoroughly.
Make sure you are aware of any hidden costs or fees that may be associated with joining. Look into the company culture, why they got started and their story.
Also consider reading about the founders on websites other than their own and take time to look into the average amount of money most consultants make.
Some other tips include:
- Get your family on board before signing up. Let them know you are going into a new business venture.
- Join under a consultant that thoroughly loves the company and products. And may be willing to help guide you in this competitive industry. Some consultants have entire websites dedicated to helping their team.
- Choose a product you love yourself and would happily recommend to family and friends.
- Find a company that is committed to their customers and will take care of them.
- Don’t go into debt buying too much product. It’s easy to get caught up in the moment and buy more than you need.
- Start a blog and share your personal experience with the company, the products, etc. This is not something that many people do and can set you apart from the rest.
Direct Sales Companies to Join
Here is a list of direct sales companies that you can get started with today. Please keep in mind that this list is not exhaustive and I have not personally evaluated any of these companies.
Please do your due diligence in researching these companies prior to signing up with any of them.
Look into their financial statements, their company values, stories, read reviews, etc.
Direct Sales Makeup Companies
This list of direct sales makeup companies is not extensive, but includes some of the biggest names in the industry.
Beautycounter – Founded by Gregg Renfrew in 2013. They claim to be setting the “cleanest standards in beauty” and ban over 1,800 questionable ingredients from their formulations. Source: Safety | Clean Beauty | Safer Skin Care Products | Beautycounter
JAFRA – Founded by Jan Day and her husband, Frank, in 1956. They appear to be known for their Royal Jelly expertise. And state on their website that “a JAFRA royal jelly product is sold every 6 seconds”.
Limelife by Alcone – Their family-owned business started in 1952 selling stage makeup to artists in New York City. Limelife by Alcone (originally named Limelight by Alcone) was launched in 2015, allowing beauty guides to join their company. They have stated that they work to source “professional makeup and all-natural skin care that really perform.” Source: About Us | LimeLife by Alcone
MaryKay – Started by Mary Kay Ash in 1963, a well-known beauty company in this industry. MaryKay sells makeup, skin care products, men’s products, fragrance, gifts and body and sun care products.
Seint (formerly known as Maskcara Beauty) – Founded in 2013 by Cara Brook, after running a beauty blog, Maskcara. Their website states that they aim to “create quality, innovative products that could be used by every woman”.
SeneGence – Joni Rogers-Kanti started this company in 1999 after she found that many cosmetic products used the same ingredients. Their website states she partnered with an award winning scientist to develop a patented liquid lip color. They are well-known for their long lasting liquid lip products.
The Avon Company – Founded by David McConnell in 1886 and originally started by selling perfume under the name California Perfume Company. Today, they sell everything from makeup and skincare to jewelry and oral care.
Younique – Startbed by Derek Maxfield and Melanie Huscroft, a brother-sister duo, in 2012. Their inventory consists of makeup and skin care products. They claim to be the “first direct sales company to market and sell almost exclusively through the use of social media” Source: About Younique (youniqueproducts.com).
Other Skin Care and Beauty Direct Sales Companies
ColorStreet – The idea for ColorStreet came to Fa Park in 1988 when he noticed a lady in a nearby cab applying nail polish. He created and patented a product where real nail polish could be adhered to a nail, but the top remained dry. These are 100% nail polish strips without the dry time.
Monat Global – Started in 2014 by the Urdaneta family. Their products are focused on hair, skin, wellness and pet.
Rodan and Fields – Founded by doctors and dermatologists, Katie Rodan and Kathy Fields in 2000. They offer skin care products for things such as fine lines and wrinkles, dull skin, acne, etc.
Essential Oils Direct Sales
doTERRA – Founded in 2008 by a group of four healthcare and business professionals. They set out to find the purest, highest grade essential oils to bring to market.
Young Living Essential Oils – Founded in 1994 by D. Gary and Mary Young. They are known for their statement that they have a “seed to seal” quality commitment with their oils.
Kitchen, Food and Cookware Direct Sales Companies
Cutco – Established in 1949 and the business that exists today was formed in 1982. They stated on their website that they are the largest manufacturer of kitchen cutlery in the US and Canada. Their product line consists of kitchen knives and utensils, shears, flatware, cookware and sporting knives.
Pampered Chef – Founded by Doris Christopher from the basement of her Chicago home in 1980. Their website states that Doris set out to “make mealtimes more enjoyable and less of a chore”. Product line includes cookware, bakeware, kitchen tools, small appliances and more.
Tastefully Simple – Founded in 1995 by Jill Blashack Strahan. Created as an idea to make delicious food that is easy to prepare. Product line consists of breads, soups, desserts, dips and more.
Tupperware – Created by chemist Earl Tupper in 1946 and brought to the direct sales market with Brownie Wise in the 1950s. Their products include bakeware, serveware, food storage and more.
Cleaning and Home Companies
Norwex – Founded in Norway over 27 years ago, they focus on bringing sustainable and healthier cleaning and personal care solutions to the home. Their mission is to “radically reduce chemicals in our homes”.
Scentsy – Started in 2004 by Heidi and Orville Thompson. They are known for their wickless candles and decorative wax warmers. Line consists of wax, warmers, diffusers, fans and more.
Diet and Weight Loss Direct Sales Companies
Beachbody – Founded by Carl Daikeler and Jon Congdon in 1998. They have two decades of experience in the fitness and weightloss industry. Product line consists of at-home fitness programs, nutritional programs, supplements and shakeology.
It Works! – Started by Mark and Cindy Pentecost in 2001and are known for their body wraps. Other products include serums, gummies, teas and others.
Other Companies
Arbonne – Founded in 1980 by Petter Mørck; their website states that their products are vegan and cruelty free. Their product line includes makeup, skincare, nutrition and others.
Discovery Toys – The company began when Lane Nemeth, an early childhood educator, brought together educators and parents to discuss education through play over 40 years ago. They sell educational toys for infants through school age children.
Melaleuca – Began over 35 years ago, they have been focused on finding “better, safer and more natural products”. The product line consists of cleaning products, beauty, personal care and others.
Paparazzi Accessories – Founded by Misty and Trent Kirby, and Chani and Ryan Reeve. Their product line consists of affordable jewelry.
SimplyFun – Started in 2004 with traditional board games and four years later launched their line of educational board games. They sell games for families or preschoolers and grade schoolers.
Stella & Dot – Founded by Jessica Herrin in 2007, the brand now includes Keep Collective and Ever. Products include jewelry, bags, clothing, skincare and others.
Thirty-One Gifts – Founded by Cindy Monroe in 2003; their product line includes bags, totes, accessories, etc.
Usborne Books & More – They started in 1989 and are a division of the Educational Development Corporation. They feature books published by Peter Usborne and Kane Miller. Their collection of over 1,800 fun, entertaining and educational children’s books.
Not sure direct selling is for you? Or maybe you want more control over your finances and business.
I love creating digital products to sell online. My preferred way is through blogging, but there are other ways to sell as well.
Check out my post on how to start a blog here. And you can grab my free blogging guide below to ensure you set it up right, the first time.
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