Myth #1: Direct Sellers Make Money for Recruiting People
Truth: In direct selling, no compensation is paid for recruiting people on your team. Compensation is only paid when customers are acquired and use the products and services.
Myth #2: Direct Selling is a Pyramid Scheme
Truth: Pyramid schemes are illegal. Yes, there are pyramid schemes out there, but direct selling is a legitimate and legal way for entrepreneurial-minded people to build a business for themselves but not by themselves. The main difference in a legitimate direct selling company as compared to a pyramid scheme is how the company compensates its sales force. Direct selling companies compensate based on the sale of real products and services to real customers. A pyramid scheme compensates based on recruitment, and in most cases, there is no real product and no actual customers are acquired.
Myth #3: Direct Sellers Are Not Serious Entrepreneurs
Truth: While many people begin a direct selling business on a part-time basis with the hope of supplementing their income each month, a number of direct sellers operate their business in a full-time way to support their family. Both are Entrepreneurs- someone who organizes and manages a business, usually with considerable initiative.
Myth #4: Direct Selling is Outdated
Truth: Direct selling was the original social network, way before Facebook. What retailers and big box stores lack in customer service and relationship building, direct sellers excel at, providing a personal one-on-one shopping experience. With the rise of social selling and social media, direct sales are more relevant today than ever before.
Myth #5: Direct Sellers Are All Work-At-Home Moms Who Lack Education & Skills
Truth: Direct selling provides an opportunity for individuals from all walks of life and all backgrounds to build a business of their own. While many stay-at-home parents start their business on a part-time basis to help bring in some extra income, a number of direct sellers work the business full time. The industry is filled with former business professionals, traditional business owners, former professional athletes, doctors, lawyers and much more.
Myth #6: If You Don’t Get in on the Ground Floor, You Won’t be Successful
Truth: Direct selling provides a level playing field. It doesn’t matter when you start a direct selling business, you have the same opportunity to build a successful business as someone who started years prior. In fact, most direct selling companies improve over time, making the products, services and business opportunities better today than ever before.