Use Your Direct Sales Business to Make a Profit, Not Give it Away
Direct Sales is a business model for those that work at home or want to supplement their income. One fact that is for sure and is found throughout the industry, is that most people that are in a Direct Sales business are in it for the money, and believe me, there is money to be made in Direct Sales, if it is done correctly.
That is not a profound statement, I know. Anyone in a small business is working it to make money. So why is it that so many Direct Sales business owners struggle to see a profit?
There are a few solid reasons that will kill a business pretty darn quick.
1) Failure to track expenses
2) Failure to track ad placement and where it is working
3) Giving away too much product or worse yet,
4) Giving away discounts or free shipping
The fastest and easiest way to increase and/or keep your profit in any business is to control your expenses. Your expenses are directly correlated to your bottom line. If you normally make 30-40% profit from the sale of an item, but you incur 10-15% in expenses, you have dropped your income substantially.
If you try and increase customer or hostess participation by discounting the price or by giving away free shipping and the like, you are really impacting your bottom line. This money comes right off of your profit and income. You have no way to recoup that money. Use demo items or free goods you earn from your company to encourage participation. These do not impact your bottom line as fast since you can control how much you give to a customer or hostess. And furthermore, these items can be a tax deduction at the end of the year.
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