At the start of a new year, it’s not unusual for many people to begin looking for a home business. With the current economic recession many more people will look for a second job or home business as a bit of insurance against a possible layoff, because their wages have been frozen, or for a better sense of security. Stay-at-home parents often look for ways to supplement the family income from home for the same reasons.

If you are seeking an additional income you may be considering a direct sales business. The potential for profit is very appealing as is the ease and low-cost of getting started. But there are dangers as well.

Here are some of the pros and cons of direct sales.

Pros:

1. Direct sales gives anyone a chance to be a business owner and entrepreneurship allows everyone to realize their dream of working for themselves.
2. Direct sales has low start up costs and low overhead. Most can be started for $100-$200 and because consultants can work from home and almost never have to carry inventory, the ongoing costs can be contained. When you sign on with a direct sales program, you are provided with all of the tools you will need to get started.
3. There is plenty of variety in direct sales. With opportunities for selling jewelry, candles, home decor, health and beauty products, clothing, and much more, you can choose a product that you feel comfortable with and believe in, and that your customers want.
4. Direct sales business owners set their own hours. Consultants can work part-time or full-time as their schedule allows and moms can work around their kids’ schedules.
5. Direct sales programs offer support for their sales consultants. It can be tough getting started, especially if you have no sales or marketing experience. The support of the company and your sponsor can mean the difference between success and failure.

Cons

While direct sales is a legitimate home business with good earnings potential, the industry is not perfect. There are some drawbacks to direct selling and some programs are better than others. It is important to carefully evaluate and understand a direct sales program before signing on the dotted line.

1. There are hundreds of legitimate direct sales companies, but unfortunately, all direct sales programs are not on the up and up. Be very cautious of exorbitant start up costs, lack of support, guaranteed income, and heavy emphasis on recruiting rather than selling.
2. Some direct sales programs have hidden costs you didn’t count on. While they supply a starter kit for you to host parties you may be surprised later on by the cost of catalogs, brochures, product samples, and other marketing items that you pay for out of your own pocket. Sometimes there is also an annual consultant fee and website fee.
3. Each direct sales program has its own guidelines and policies and procedures that govern your marketing and sales activities. You may find some companies’ policies too restrictive for your goals and personality.
4. While it is easy to get started in direct sales and the company provides training and support, don’t be lulled into thinking the products will “sell themselves.” It takes ongoing effort to maintain a steady income. No business runs itself and your success and income is directly proportional to how hard you work at selling the products.
5. Direct marketing programs offer websites for their associates and sometimes restrict consultants to using it, not their own website for Internet marketing. Unfortunately, because all of these sites are exactly the same and tied to the main company site, they aren’t the best tool for marketing online. If you plan on marketing primarily on the Internet, you will need to establish your own online presence.

Direct sales is a legitimate, viable home business. If you are aware of both the advantages and disadvantages of this type of business and do your research, you can find a company that meets your needs and that you can build into a successful business.

Other resources to help you in your search for a direct sales business:

• Choose Your Opportunity – A guide to finding the right company.
• DirectSalesDirectories.com – Information about many of the available direct sales companies.
• InternetBasedMoms.com Direct Sales Directory – Another list of direct sales companies to consider.

You might also like these posts:

• Five Tips to Get You Through Your Busy Season
• Remember, Direct Sales is About Selling
• Great Home Business Ideas For Beginners