Direct sale parties gaining popularity, but it's not easy money

Summary

While traditional retailers report declining sales, many home party companies say their business is increasing. But the home-based business is not for everyone.

Story Published: Aug 19, 2009 at 5:23 PM PST

Story Updated: Aug 20, 2009 at 2:39 PM PST

Direct sale parties gaining popularity, but it's not easy money
SEATTLE -- Whether it's out of desire or desperation, more people are turning to direct sales and home sales parties to pump new life into their cash flow.

But it's no slam dunk. The key is to make sure you have what it takes before you make the commitment.

When Malia Davidson lost her job, she made a big decision.

"I just was not up to the task of going back to the corporate world, " she said.

Instead of going to work for someone else, she became her own boss as a direct sales consultant for a candle and home accessories company called Party Lite.

While traditional retailers report declining sales, many home party companies say their business is increasing.

Julie Dowhaniuk sells Pampered Chef cooking products. Despite the struggling economy, her business is growing. She says more people want to host parties, and more people want to become Pampered Chef consultants.

But the home party business is not for everyone.

Cheryl Bonawatz learned the hard way when she sold home décor.

"People wanted parties when I couldn't be available to do them," she said. "There were complaints. When people would get their orders wrong they would call me, and because I worked full time I was never available to deal with them."

It may look like fun, easy money, but to be successful you have to spend both time and money.

Before you sign up, ask about startup costs. What about training and support? How much can you expect to make? How often will you get paid?

It's also important to ask about the buy back policy. Check online for complaints, and make sure the company has a solid background and good reputation, so the party business you pick is a party you'll want to stick with.

Depending on how much you put into it, you can bring in $300 to $600 a month or more, but you have to treat it as a job.

And it's not just women. There are a lot of opportunities for men.

For More Information:

www.enterpreneur.com

www.dsa.org

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