starting a direct sales business for Disney money...

[Lees3rwe]

Hey everyone!

I am seriously considering starting a side job with a direct sales business (considering Thirty-One, Initial, Inc., Avon) and putting the money directly into a vacation account for Disney and other fun trips!

We went on our first Disney vacation last October and then BACK in June! I think we are hooked!

Do any of you do a side job for Disney money?
what are some of your favorite companies?

 

[DawnM]

Are you good at sales? Do you want or are you willing to give up your weekends and evenings for parties?

I have quite a few friends who have paid upwards of $200 for the start up of such companies and never really make a go of it to bring in $$. I also have friends who I avoid because I don't wish to hear yet again about how I need to buy Tupperware, Premier Design Jewelry, or whatever.

There are a select few who can and do make it in such industries, I already know I am not one of them.

Dawn

 

[Sagginit]

i have not done this myself. i looked into it in college but decided i just would not generate that much income because i would run out of people to sell to. i do know someone who does pampered chef and everytime she posts on facebook people are looking for products. most people in my social group are settling down and need home/kitchen products so she has a good audience. i know someone else who is selling jewlery, most of us agree its an annoyance because we just have no desire to buy it.

i think the key is do you have a large enough social circle to keep the selling going, and to pick a product people in your social circle want. years ago my friends mother sold party lite candles and did very well. it was at the start of the candle craze and like makeup its a product you need to replace every few months. plus each season people wanted different candles/scents. she also was amazing at decorating with the products, so people would come over and there were all sorts of candle holders on tables, walls, in bathrooms etc. so everytime she had a few kids over from soccer and their parents, a birthday party etc she had a selling opportunity. i think its like mary kay, you need to live the lifestyle to sell the product.

 

[monty22183]

I do this. I decided to join PartyLite 2 years ago because they have no start up cost. I am also considering joining Usborne Books too....love the books for my son and I can make extra money with that too. I love doing this......it brings in extra money that I use for my Disney trips. Good Luck!!!!

Ashley Culp

 

[Lees3rwe]

I would say that I am a pretty good sales person.
I do worry about alienating my friends, because I have some friends that sell stuff that can be pretty annoying... BUT that is their only job.
I have a full time job, so this would just be "play money" for me.

I am really considering Avon, because I enjoy cosmetics and I think they have a pretty good compensation package... plus there are some really loyal Avon users out there!

Thanks for all of your input!

 

[MissBritt]

I sold Avon for about 5 years. There is a big fan base, it's only like $10 to start, and there are no minimums. You can't skip more than 3 catalogs for orders, though, or you become inactive. Even if you just spend $5 you're still active. The only downfall is the commission rates... I don't think I ever made more than 35% and you have to sell a lot to make 50%.

 

[momof1princess]

i got on the waiting list to join thirty-one and all of my friends were so excited about it, because it's not well known around here "oh, everything is so cute, i love it!" "you'll be great at this!" etc. well, when it came time to sign up and start booking parties, EVERYONE who had agreed to host a party when i signed up backed out, so i didn't sign up. i spent 4 months preparing for this, sold $825 through my own catalog party (which is very good for a catalog party-they usually average about $350-$400) to get everyone pumped up about it, then fell flat on my face. personally, i wouldn't do it, but YMMV.

 

[Cheshire Figment]

I would also suggest going to www.irs.gov and order the following publications which will probably help a lot.

334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ)
463 - Travel, Entertainment, Gift, and Car Expenses
535 - Business Expenses
551 - Basis of Assets
552 - Recordkeeping for Individuals
560 - Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)
583 - Starting a Business and Keeping Records
587 - Business Use of Your Home
946 - How to Depreciate Property

And also, if the time can be spared and at and minimal cost take a first semester Principles of Accounting course at a local Community College. Not necessarily to keep the books, but to get an understanding of what the business is doing.

Note that most small business fail within the first few years not because the owner did not know his subject but because they did not understand the accounting.

Mike (CPA Retired)

 

[Lees3rwe]

well, that settles that... maybe I'll just have a big yardsale every year. LOL!

 

[njmom47]

Also, if your company involves someone who is supposed to mentor you (your "upline" person?) they keep in touch with you. I did a home-based business for awhile but found when I had questions or needed help, she was no where to be found.

 

[PrincessSuzanne]

I tried the Avon thing, it didn't work out very well, because evey other woman around here was selling it too. I think I lost more than I made, biggest mistake I ever made.

We just budget money for Disney each payday and most extra paychecks through out the year go in our trip fund.

Suzanne

 

[MrandMissVacation]

I would also suggest going to www.irs.gov and order the following publications which will probably help a lot.

334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ)
463 - Travel, Entertainment, Gift, and Car Expenses
535 - Business Expenses
551 - Basis of Assets
552 - Recordkeeping for Individuals
560 - Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)
583 - Starting a Business and Keeping Records
587 - Business Use of Your Home
946 - How to Depreciate Property

And also, if the time can be spared and at and minimal cost take a first semester Principles of Accounting course at a local Community College. Not necessarily to keep the books, but to get an understanding of what the business is doing.

Note that most small business fail within the first few years not because the owner did not know his subject but because they did not understand the accounting.

Mike (CPA Retired)

I just wanted to thank you for consistently posting this information.. I've seen it a couple of time. This is a wonderful way to pay it forward (knowledge). I have printed this out and will give to my hubby who has opened a business this year with no knowledge on how to do things and it's causing extreme stress in our lives.

 

[timmac]

Based on my own experiences with DXW, my short answer would be: don't do it. The longer answer, don't even think about it. This is only my opinion, of course, and there are some people who do all right with these kind of things, but I'll explain some of my reasoning.

Startup costs. Usually you have to buy a kit, etc, which may set you back as much as $100, or even more.

Recurring costs. Typically catalogs, promotional materials, etc, have to be purchased from the mother ship, err... company. With specials changing every few months or so, this means some expenditure (out of your pocket, which counts against your profit margin).

Value of time and effort. In addition to the several hours you spend doing each "show", don't forget that there's a fair amount of time on the phone, planning, etc, beforehand, and time processing orders afterwards. At a 20% commission rate, think about how much, on average, a show will total, and how much you'll make. After subtracting out expenditures, what does that mean for an effective hourly pay rate? (Don't forget also, it's taxable as self-employment income)

Liability. These companies like to sell you on the idea that you "have your own business". Of course, you don't have complete control over the pricing, availability, or overall distribution of products. But if someone pays you with a check that bounces, for instance, you're definitely on your own to deal with it. "your business" is for the good of the company first and foremost.

Sales opportunity. Keep in mind that you're going to get opportunities for "shows" first through people you know, and thereafter, by referral. You may quickly find that these social circles have some overlap, and the potential pool of attendees is finite. Even worse if there are other salespeople for the same product in your area. The same people won't keep attending parties, or hosting parties, more than a very few times.

Advancement. Often, these companies will sell you on the idea of becoming a "director" or "regional VP" or some similar term, as these are the people who really make a lot of money, on the pyramid-style kickback of the sales by those beneath. To be clear, the majority of income is from your own direct sales, so it's not truly a pyramid scheme as such; that said, the most substantial income only comes from being atop that structure.

I know this was kind of long winded, but I can assure you that I've firsthand seen my DXW attempt (and me get roped into helping with) Pampered Chef, Discovery Toys, Usborne Books, and Partylite Candles. I'm fairly confident in my inductive conclusion that every such of these businesses is similar: there's a fair amount of work involved, while you make a rather mediocre income, for a limited period of time, until you exhaust potential buyers in your area.

 

[thespouseandi]

I joined Thirty One in the beginning of the year to earn some play money...but as my husband has had 3 surgeries since then, it's become needed money....I find it easy to manage and it's not been hard to find parties...but I'm not looking for a career, just extra...I've had book parties over $1000, etc....not many but it helps, lol I am not one of those people who can push it really like I "should" so I average one or two parties a month...and I am ok with that...a few hours out with some girls and new food to try
They also gave out WDW gift cards ($1500 and $2000, I think)to all consultants who hit a certain mark in a five month period...I did not make that mark, but it would have been nice.
Again, I know its not for everyone, but it does work for some of us.


Thanks Mike for those useful publications...I didn't have them all!

 

[Tablefor5]

Lees3rwe! Did you decide on a company?
LOL I save my commission checks for our Disney addiction. Renewing our APs this month!
I am with Initials, Inc. if you were still interested in a party company!
I will PM you with my info and you can contact me if you want!

 

[mbf]

My cousin has been doing Thirty One for about a year and has done really well with it. I don't know how she does it but she really has bought into the whole company philosophy and is very gung ho.

Years ago I did Lady Remington (jewelry, I believe it is now known as Lia Sophia) and it seemed like while I was doing lots of parties I just was not doing enough in sales to make it worth my while. I think the key is to find the right product for the time and place that you are in. For me, my general area/circle was just not into spending money on costume jewelry at that point in time.

I think if you are a person who has no trouble selling then go for it! Find something that is not oversaturated in your area and with a small startup cost. Try to gauge the interest of your friends and family ahead of time and get some commitments so that you at least have some leads going into it.

 

[dizzydrop]

I sell scentsy and I love it....the product basically sells itself. I do parties at homes but mainly basket parties which are a lot like book parties. I make good money selling scentsy and it seems to help out with our bills quite a bit. Good luck with what u decide.

 

[seashoreCM]

The most significant tax item is social security tax (schedule SE for self employment).

If you don't have business equipment to depreciate and don't have a portion of a room set aside for the business, then those parts of the tax law don't bother you.

You can use the per mile deduction and avoid the need to use depreciation on your car. Typically for a trip that involves both business and other purposes you deduct the mileage of a direct trip to the business destination and back.

Start with income and outgo (receipts and expenses). If outgo exceeds income then you don't pay any income tax or social security tax related to the business, but you also need to rethink whether the business was a good idea to begin with.

 

[puffkin]

I sold Tastefully Simple for almost 3 years. I did VERY well as a consultant doing on average 2 parties a week. I did make decent "extra" money and I also worked Full Time as an accountant.

It was a BIG time commitment though, especially if you have kids and work full time. My biggest issue was getting in phone calls and things like that because I couldn't do it during the day and then at night was busy with my son until he went to bed. By then it was too late to be making phone calls. I was probably spending at least 20 hours a week on it between parties, prep, phone calls, closing shows etc.

The big money comes from recruiting a team. That takes a lot of time because for every person that signs up, only about 1 in 10 will really stick with it and make money (which then you take a commission off of). That is hard to do because you have to invest a lot of time in them as well.

While I did enjoy it and I don't think I alienated friends/family (because after the first few parties I was able to get bookings outside my circle of friends and move on from there) it just became too much for me. Once you stop putting in the 100% effort thinking "oh, people will still reorder from me or do catalog parties, etc" your business starts to dry up. You need to be out there doing parties to keep it going long term.

 

[VAfamily1998]

Have you ever checked out a website called "pinktruth.com"? They are mainly focused on Mary Kay, but touch on other MLM companies as well.