You may be able to start a direct selling business for no initial investment; but those typically turn out to be more like discount memberships. Let’s face it, is it realistic to expect to start a business for free? No, I didn’t think so either. In fact, a majority of direct sales companies require new independent consultants to invest in a starter kit when they join. On average a start-up kit for a direct sales business averages about $50-$300.
Keep in mind that this startup kit is just that – a startup. It will get you going. You won’t be able to be successful in growing and maintaining a business with merely the startup investment. It’s like if your child wants to be in competitive cheer. Just the initial $65 for the pay to play fee isn’t going to cover it. There will be extra expenses such as the cost of shoes, leotards, uniforms, practice outfits, contributions of food for the tournaments; oh and let’s not forget the weekly gymnastics lessons that are now required for most cheerleading squads. And we’ll toss in a little more money for the coach’s gift while we’re at it.
It’s the same with a direct selling business. The initial investment is never enough to last more than initially. For this reason, it is imperative to do your research before you sign up. Find out what other investments may be involved to start a business. Ask potential sponsors what other expenses you should anticipate. Look at the contents in the startup kit and then decide if the business supplies and products included are ample enough to get started.
Some consultants work hard to save enough to budget for the starter kit. One of the reasons direct sales is so appealing is that it provides an avenue to earn extra money toward the family budget. If the additional expenditures are not discussed up front, it could be a rude awakening, when the consultant truly doesn’t have any extra capital to add to the business. I’m not necessarily talking about a large sum of money; but rather in many cases less than $100 additional. Though whether it’s $10 or $100 more than originally budgeted, if there aren’t available funds to invest, it really doesn’t matter what the amount. Perhaps it’s easier to understand this concept with some real examples.