Salute to Women Entrepreneurs

Considering an Opportunity?

Here's how to identify legitimate direct selling opportunities:

Start up costs should be minimal. The start up fees in direct selling companies are generally modest - usually the cost of a sales kit. Companies want to make it easy and inexpensive for you to start. Pyramid schemes make their money through fees paid by new recruits or by loading inventory or training aids on them. High entry fees should be a warning sign.

You should be able to return unsold inventory. Companies belonging to the Direct Selling Association "buy back" unsold marketable products purchased within the prior 12 months if you decide to quit the business, for 90 percent of the price you paid for them. The DSA Code of Ethics requires that member companies do this. Beware of opportunities that encourage "front end loading," or buying large inventories of unreturnable products to reach achievement levels or receive a "special" or larger "discounted" price.

Is the money you'll earn based on the sale of products or services? The answer should be "absolutely." This is a key element of a legitimate business. Direct selling, like other methods of retailing, depends on selling to customers who use and/or consume the product. This requires quality products and services sold at competitive prices. Beware of any business that claims you can get rich by solely using their products or by recruiting new people into the business. You should also believe in the products or services you'll be selling.

Ask yourself, "Would I buy this product if I weren't in the sales organization?" If the answer to that is no, think twice about the opportunity.

How to Get Started:

1. Identify a company and product that appeal to you.
   Check our list of member companies or look in your local phonebook.
2. Take your time deciding.
   Does "getting in on the ground floor" mean that everyone joining after you will be less satisfied or happy? A legitimate opportunity won't disappear overnight. Think long-term.
3. Ask questions.
   About the company, its leadership, the products or services, start-up fees, realistic costs of doing business, average earnings of distributors, return policies, and anything else you're concerned about.
4. Get copies of all company literature.
   And read it!
5. Consult with others who have had experiences with the company and its products.
   Check to see if the products or services are actually being sold to consumers.
6. Investigate and verify all information.
   Do not assume that "official looking" documents are accurate or complete or even produced by the company, as opposed to the person trying to recruit you.
7. Need help evaluating a company?
   Check to see if the company in which you're interested is a member of the Direct Selling Association. If it is, you can be assured the company has pledged to abide by and uphold the DSA Code of Ethics. In addition, you might want to call your local Better Business Bureau, state attorney general or consumer protection office.

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1667 K Street, NW, Suite 1100 Washington DC 20006-1660
Phone: 202.452.8866 | Fax: 202.452.9010