3 Ways to Avoid Breaking Your Bank Account with Your Direct Sales Business

So I am coming from my personal experience point of view as a direct sales consultant,  this is very true so do not let that little voice in your head tell you otherwise! Below is a list of  three things that you can do to stop digging a financial hole for yourself or your family.

1.) Stop hoarding

2.) Stop hoarding

3.) Stop hoarding

What do I mean by Hoarding ? : Buying and accumulating things you do not  need, I was once a victim of this, I would have a hostess with a party shy of  +/- $50 to make a valid party and just so that I can feel good about closing a party, I would go and make a personal order to top up the difference. Really!!? , 2 hours prior, this order was not on my wishlist neither was it on my budget, but because of the pressure to CLOSE a party I would place the order and end up with stuff I do not honestly have a need for and these items would end up living rent free in my home. I thank God I did this a few times before I came to my senses, however I can imagine how many people do this every month and end up with stuff they DO NOT need. Now you might tell yourself you are building inventory for your home party or vendor events, but the truth of the matter is :when you first sign up, that inventory they give you is exactly what you need to work your business and of-course any add-ons (especially if they are free). This is exactly why your home office has a warehouse. If someone wants to truly order from you, they will do it online and this gives them the choice to order exactly what they want allowing them to appreciate your product to its fullest! Hardly will you sell all of your hoarded inventory and if you do you are probably selling it for less than you paid for it (including shipping) or you end up giving away some of your inventory as hostess prizes, when you do your taxes at the end of the year, all this will come to light! ,

It’s OKAY not to close a party, ( your time will come), don’t cheat your business by ordering from your own business ESPECIALLY when you do not have any prior planned use for the inventory. I know some of us also do it to keep ourselves active.The question you should ask yourself is, is it worth it? It’s perfectly fine to be inactive especially when you do not have a super active team under you, don’t get so caught up in “I have to remain active”, you are just digging a financial hole for yourself! How about take that $150 or $200 and put it in your savings account. What if no one buys from you the next 2 or 3 months? Are you going to keep doing it? Of-course we always want to be optimistic, but you have to be real with yourself too. If someone is really going to host a party for you, then let them collect their outside orders and then you can use those to re-activate your account! Absolutely free!!

One of my team members also a friend once did the whole “I have to remain active thing and the next month no orders came thru so she ended up with inventory she does not need and deactivating the next month! Now that was a waste of $200.00 because she does NOT even use the inventory, so she has a whole lot of it in her house and will end up giving it away, which is good for the receiver but is that why she was working her business in the first place?

An example is if you receive $100 in commission for the month of September, In December because nobody ordered from you since beginning of October, you place a $200 order to remain active, what you have simply done is a.) used that commission you received to order more stuff and b.) took out a loan for $100 to keep yourself active (because you did not have this money in you business ) , It becomes a cycle and at the end of the year you are most likely a.)breaking even if you are lucky, or b.) you end up spending more money than you are making! I am not discouraging anyone from direct sales because I am also in direct sales, I am just saying be wise especially if your true goal is to make money from your business, if you are doing it for kicks and you have the money to spend, then this post is not for you.

1 thought on “3 Ways to Avoid Breaking Your Bank Account with Your Direct Sales Business

  1. Pingback: Our Journey to being debt free « Sarah Kay

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