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Myths and Facts

Myths and Facts

Over the years, some myths and misconceptions about the direct selling retail channel have evolved. Of course, not all the stories that exist about this dynamic and modern retail channel are true, so we are here to help you tell fact from fiction.

For people considering an opportunity with a direct selling company, it is always recommended that you talk to others who have been involved with the company and industry, to help you understand their experiences. 
 

MYTHS vs FACTS

 

MYTH

 I will need to make a large financial investment in products to get started.

FACT

 I will invest a modest amount in samples and resources to start my small business.

MYTH

I won’t make any money.

FACT

With hard work and skill, I can supplement my income and I may also qualify for other incentives.

MYTH

I will alienate my social connections.

FACT

I will be offered training to help me effectively introduce products and services to my connections.

MYTH

I will only get paid for recruiting others. (This is actually how illegal pyramid schemes operate, not legitimate direct selling companies).

FACT

I will get paid for selling quality products and services. If I choose to bring others into my sales team and help them develop their businesses, I may make commission on their sales as well.

MYTH

I will sell lower quality and more expensive products than those that I can buy from retailers.

FACT

I will sell a variety of quality products at different price ranges to suit my customer’s needs and tastes.

MYTH

I will make easy money by just sending out a few emails and social media messages.

FACT

I am a legitimate Canadian entrepreneur, participating in a business where success requires skill and effort.

MYTH

I could end up with excess product that I cannot sell.

FACT

I understand that most direct selling companies now ship direct to consumer, so there is limited need for sales consultants to hold stock. Where unwanted product is held, parent companies offer buy-back programs on reasonable commercial terms.

BEWARE PYRAMID SCHEMES

Pyramid schemes are ILLEGAL and focus on making their money from new recruits, not on product or service sales.

Companies who may be operating as a pyramid scheme might say they are involved in direct selling, but in reality they are more focused on recruiting people. They charge high entrance fees – often buried in the cost of a starter kit, in startup inventory, or for training or other services.

Unlike real direct selling companies and ISCs who focus on selling a product or service, in pyramid schemes little or no focus is placed on the product or service, or on the subsequent sale of these products and services to customers.

IDENTIFYING LEGITIMATE DIRECT SELLING COMPANIES

Legitimate direct selling companies focus on selling products and services at competitive prices, providing a low-cost way for you to start your own small business.

Many legitimate companies are also members of our Association and pledge to abide by our Code of Ethics, which promotes ethical business practices and consumer protection.