Are you looking for a way to earn some extra money? Maybe you're a stay-at-home mom who’s looking for a way to contribute to the family income. Or maybe you're just tired of your regular 9-5 job and you're looking for something that will allow you more freedom and flexibility. If so, then direct sales might be the right option for you!
Direct sales companies offer a unique opportunity to make money by selling products directly to consumers. This can be a great way to supplement your income or even make a full-time living.
So, if you're interested in learning more about direct sales, keep reading! We've handpicked some of the legitimate companies around so you can get started on your journey to financial success, without falling victim to illegal schemes and scams.
But before moving on to the lists, let's first talk about what a direct sales business is.
What Is a Direct Sales Business?
A direct sales business is a business model that allows you to sell products directly to consumers, without going through a traditional retail store.
Direct sales businesses typically use a network of independent contractors, also called consultants or distributors, to sell their products. These consultants earn a commission on each sale they make.
Direct Sales Businesses are sometimes referred to as sell-from-home companies because as a salesperson, you don't have to report to the office every day.
This can be a great way to earn money if you have kids at home, or if you're looking for a more flexible work schedule.
Best Direct Sales Companies
Based on our research, here are the best direct sales companies to sell for:
1. Mary Kay
Products: Beauty and skincare
Earnings Potential: 50% commission
Initial Investment: $30 startup fee, free website and credit card processing, + $130 for starter kit
How to Signup: https://www.marykay.com/en-us/sell-mary-kay
Mary Kay is one of the well-known direct sales companies founded in 1963, and it's also one of the most popular. That's because Mary Kay offers a wide range of high-quality beauty and skincare products.
Mary Kay products are perfect for housewives, stay-at-home moms, and even career women who want to earn extra money on the side.
2. Avon
Products: Beauty, skincare, fashion
Earnings Potential: 25% commission
Initial Investment: $30 starter package
How to Signup: https://www.avon.com/becomearep
Avon is another direct sales company with a long history. It was founded in 1886 and has been offering opportunities to women (and men!) ever since.
Avon consultants have the chance to sell a wide variety of products, including beauty, skincare, fashion, and more.
What many Avon sales consultants like is that Avon as a brand is very well-established, so customers are already familiar with the products that make them easier to sell.
3. Beautycounter
Products: Beauty and skincare
Earnings Potential: 25% to 35% commission
Initial Investment: $50 Digital kit + $79 Skincare sampler set
How to Signup: https://www.beautycounter.com/join
If you're looking for a newer line of beauty products to sell, try Beautycounter.
When you join and get their digital kit, you also get your own website to start selling directly to your potential customers.
Beautycounter consultants also get access to a wide range of makeup and skincare products that are perfect for those who love to pamper themselves.
4. Young Living
Products: Essential oils
Earnings Potential: 24% Discount and 8% starting commission
Initial Investment: $29 Business Essentials Kit
How to Signup: https://www.youngliving.com/us/en/company/becoming-a-brand-partner
If you're into aromatherapy and natural healing, then you'll love Young Living's essential oils.
This direct sales program is perfect if you’re passionate about essential oils and want to share your love for them with others. Like beauty products, there’s a great potential for getting repeat customers.
5. Scentsy
Products: Fragrance, candles, warmers, oils, skin care
Earnings Potential: 20% commission
Initial Investment: $99 starter kit
How to Signup: https://scentsy.com/Join/pick-a-consultant-sponsor
Scentsy is a good choice if you want to have a variety of products to sell. The product range is quite varied with candles, warmers, oils, skin care, etc.
One of the best things about Scentsy is that their products are very popular as gifts. This means that you have the potential to earn a lot of repeat business from customers who are buying Scentsy products for their friends and family.
6. Tupperware
Products: Kitchenware
Earnings Potential: 25% commission
Initial Investment: $15 virtual kit + $119 Deluxe Demo Kit
How to Signup: https://www.tupperware.com/pages/join-us
Founded in 1946, Tupperware is definitely one of the most popular direct sales companies. They offer a wide range of high-quality kitchenware products that are perfect for anyone who loves to cook.
The good news is that you can start selling digitally with just $15 for the virtual kit.
7. Pampered Chef
Products: Kitchenware
Earnings Potential: 20% to 33% commission
Initial Investment: $79 for starter kit
How to Signup: https://www.pamperedchef.com/be-a-consultant
Pampered Chef is a multi-level marketing (MLM) company founded in 1980 that offers kitchenware and home products. There are a variety of products including cookware, kitchen tools, and even small appliances.
Aside from commissions, you can also qualify for bonuses and fast-track rewards to earn extra income.
8. Discovery Toys
Products: Toys and books
Earnings Potential: 25% to 34% commission
Initial Investment: $79 joining fee with $140 worth of products
How to Signup: https://www.discoverytoys.net/opportunity/
If you’re a parent, you'll know that buying a lot of toys is an inevitable part of having kids and that the cost of buying toys can pile up. So instead of just spending on toys, why not sell them yourself and earn extra cash?
Even if you're just selling to your personal network or buying for your own kids, the savings can really add up.
9. Usborne Books
Products: Books
Earnings Potential: 25% commission
Initial Investment: $59 to $99 starter kit
How to Signup: https://usborne.com/gb/sell-usborne-books/join
Usborne Books is an MLM company founded in 1973. As the name suggests, they sell books – children's books to be precise. They have a wide range of products including activity books, sticker books, and even non-fiction titles.
Being an Usborne consultant is a perfect side gig for book lovers who want to sell to families, parents, and other child-care providers.
10. Stella & Dot
Products: Fashion accessories
Earnings Potential: 20% to 40% commission paid weekly
Initial Investment: $59 starter kit
How to Signup: https://www.stelladot.com/ambassador
If you're not comfortable selling beauty or home products, then maybe fashion accessories are more up your alley. Stella & Dot offer a wide range of jewelry and other fashion accessories that you can sell.
These products are perfect for fashion lovers, even young business-minded people, who are into style and trends.
11. The Trendy Jewelry Shop
Products: Fashion accessories
Earnings Potential: 40% commission + 60% discount
Initial Investment: Free signup for affiliate program
How to Signup: https://www.thetrendyjewelryshop.com/affiliate_info.asp
No money to pay for a starter kit? Well, that's not a problem with The Trendy Jewelry Shop because they offer a free affiliate signup. As an affiliate, you'll get a 40% commission on all sales plus a 60% discount on all products.
This is perfect for those who want to start selling fashion accessories but don't have the money for an initial investment. You can start promoting their products right away when you get accepted as an affiliate partner.
You will be given your own link/URL that you can promote through your social media channels or website. Every time someone buys through your link, you'll earn a commission.
How Much Money Can You Make as a Direct Sales Consultant?
When working as a direct sales consultant, you will typically earn a commission on each sale you make. The amount of commission you earn will vary depending on the company you work for and the products you sell.
In general, direct sales commissions range from 15% to 40%. However, some companies offer higher commissions for their top performers.
For example, if you sell $500 worth of products and the commission is 25%, that means you will earn $125.
Products that are priced lower and easier to sell often have lower commission rates while products that are more expensive and require more effort to sell often offer higher commissions.
In other direct sales companies, you will be given a discount on their products that you can then sell for full price so you can pocket the entire profit.
Some companies may also offer bonuses and rewards for hitting certain sales targets. For example, you might receive a bonus if you sell $1,000 worth of products in a month.
The amount of money you can make as a direct sales consultant will depend on how much your sales grow over time. While there's no steady paycheck, the advantage is that there's no ceiling either. This means that your earnings potential is unlimited.
If you're just starting out, you might only make a few hundred dollars per month. However, if you're able to grow your sales, you could eventually make a full-time income from your direct sales business.
Pros and Cons of Direct Selling
This business model offers several advantages, both for the company and for the consultants.
For the company:
- Direct sales can be a more efficient and cost-effective way to reach consumers.
- They don't have to worry about the overhead costs of maintaining a retail store or paying full-time sales people.
For the consultants:
- Direct sales offer an opportunity to earn extra income or even replace a full-time income.
- Because they're independent contractors, they can typically set their own hours and work from home.
Of course, there are also some challenges associated with direct sales.Â
- Because consultants are independent contractors, they're not entitled to the same benefits as regular employees (such as health insurance and paid vacation time). However, many sales consultants prefer this setup because it allows them more freedom and flexibility.
- Another challenge is that direct sales businesses do not offer a fixed monthly income because commissions are based on sales volume. So, if you're looking for a steady paycheck, direct sales might not be the best option for you.
Finally, it's important to note that not all direct sales companies are created equal. There are many legitimate businesses out there, but there are also some illegal pyramid schemes posing as direct sales companies.
You have to be careful when choosing a company to work with, and make sure you do your research before signing up.
Things To Consider Before Signing Up as a Direct Sales Person
Now that you know the advantages and disadvantages of being a direct sales consultant, here are a few things you should keep in mind before signing up with a company:
Are you okay with not having a steady paycheck?
One of the topmost frustrations of direct sales consultants is that their income is not guaranteed. So if you need a steady paycheck to cover your bills, this business model might not be for you.
Do you believe in the product you're selling?
To be effective as a direct salesperson, you need to be passionate about the products you're selling. If you're not, it will be difficult to convince others to buy them.
If you use the product yourself and have seen the effects of the product, it will be easier for you to sell it to others.
Can you handle rejection?
Another thing to keep in mind is that you will face rejection when selling products online, in-person, or over the phone.
Not everyone you talk to is going to be excited about what you're selling. You'll need to develop a tough skin if you want to succeed in direct sales.
Don't take rejection personally and always remember that there are plenty of other people out there who will be interested in what you're selling.
Do you have the time to dedicate to your direct sales business?
To be successful in direct sales, you need to put in the time and effort. This means making regular phone calls, going on sales calls, attending training, and working any events or parties you're scheduled for.
If you're not willing to put in the time, you're not going to see the results you want.
Can you handle the risk of investing in inventory?
Most direct sales companies require you to buy inventory upfront, which can be a risky investment if you're not sure whether you can sell the products.
How to Make Sales in a Direct Selling Business
There have been many success stories of people who have made a lot of money through direct sales. If you want to be one of them, here are a few tips for making sales:
Set a sales target
As the saying goes, “If you don't aim, you'll never hit your target.”
The same is true for direct sales. Before you start making calls or going on sales visits, sit down and set a realistic sales goal for yourself.
This way, you know how much you need to sell and you can work towards achieving your goal. This will also help keep you motivated and focused on making sales.
Get organized and create a schedule for making sales calls.
While direct sales allow freedom and flexibility, keep in mind that you still need to be organized and create a schedule for making sales calls. If you're just winging it, you're not going to see the results you want.
Use social media to your advantage.
Gone are the days when direct selling is just about going to your neighbors or local church to sell your wares.
In this day and age, it's important to take advantage of modern tools and apps to increase your customer base.
Social media is a powerful tool that you can use to reach more people and sell more products.
You can use it to your advantage by posting about your products regularly and engaging with potential customers.
Build relationships with potential customers
One of the keys to making sales is building relationships with potential customers. When you build a relationship with someone, they're more likely to buy from you because they know, like, and trust you.
This will also help you get return customers, as they'll be more likely to buy from you again if they had a positive experience the first time.
So don't just focus on making the sale, focus on building relationships as well.
Follow up with your leads regularly
Not able to sell the first time? Don't be disheartened.Try again!
Do you know that 80% of sales require 5 follow-up calls after the meeting? And the sad fact is that 44% of salespeople give up after one follow up attempt!
Remember that potential customers may need to warm up and get to know what you're selling first, especially if it is a new product.
So don't give up too easily and continue to follow up with your leads until they're ready to buy.
How To Avoid Direct Sales Scam
The direct sales industry has been booming in recent years and there are more opportunities than ever to make money. However, with the increase in opportunities also comes an increase in scams.
Unfortunately, there are a lot of people out there who are looking to take advantage of unsuspecting victims.
If you're thinking about starting a direct sales business, here are some things to look out for so you won't fall into a scam.
Is the company selling legitimate products?
Legitimate direct selling companies will sell products that are high quality and in demand. If the company you're looking at is selling products that are of questionable quality or no one is interested in buying, then it's likely a scam.
Is the company requiring you to pay a huge upfront fee?
While some direct selling companies do require you to pay a small starter kit fee, beware of companies that are asking for a large upfront fee. This is usually a red flag that it's a scam.
With most direct selling companies, you can recover this small fee even after a few sales but with pyramid schemes, the money you're asked to pay upfront is much higher than the cost of the products.
Is the company promising unrealistic earnings?
If a direct selling company is telling you that you're going to make a lot of money with very little effort, then it's probably too good to be true. While it’s possible to make good money with direct sales, it's not going to be an easy feat. Success won’t happen overnight.
Is the company forcing you to recruit more salespeople instead of selling products?
One of the biggest red flags of a direct sales scam is when the company is more focused on recruiting new salespeople than selling products.
If you're being pressured to recruit more people instead of selling products in an MLM company, then it's a good idea to stay away from that company.
Conclusion: Make Money with the Best Direct Sales Companies
The direct sales industry is a great way to earn extra money. So, whether you’re looking to start a new direct sales side hustle or are just curious about the industry, we hope our list of best companies will help get you started.
Have you tried any of these companies before? What was your experience? Let us know in the comments below!
Aidan has been writing about personal finance for over 6 years. Prior to this, he worked as a Corporate Finance Analyst where he specialized in Due Diligence, Company Valuations and more. He is a CFA charterholder.
