What is a Vector Anyway

1
What is a Vector Anyway?

• A Guide for Evaluating Career Opportunities
  withDirect-Selling Companies

2
What is Direct-Selling?

• Direct-selling involves person-to-person sales of
  products and/or services. Sales transactions are
  not performed in a retail store.
• Direct-sales professionals are often called
  consultants, independent contractors,
  distributors, representatives, and other titles.
• Products and services sold through direct-selling
  are often presented to consumers through in-home
  demonstrations, parties, and other forms of
  one-on-one selling.

3
How do Direct-Sellers Differ from Other
Salespeople?

• Direct-sellers are independent contractors. They
  are entrepreneurs who operate their own business.
• Retail salespeople are typically on the hourly
  payroll of a retail store/company (example sales
  associates at GAP in the local mall are retail
  salespersons). Some retail salespeople make
  commission on their sales.
• Manufacturer/wholesaler sales representatives are
  typically on the regular payroll of the
  manufacturers they represent in
  business-to-business sales transactions.
  (example a salesperson for the denim
  manufacturer that sells jeans to GAP, who then
  sells the jeans to the consumer).

4
How can I tell if a Job Posting is a Direct-Sales
Opportunity?

• It can sometimes be difficult to tell at first
  glance.
• What you learn about the opportunity may depend
  on whether you are approached by a person who
  works for the direct-selling company or whether
  you see a poster or online job posting.
• The best direct-selling companies will make it
  clear immediately that you will be working as an
  independent contractor who will own a small
  business.
• continued

5
How can I tell if a Job Posting is a Direct-Sales
Opportunity?

• continued
• Direct-selling companies often entice recruits by
  playing up the benefits typically associated with
  owning a business
• Flexible schedules
• Freedom to conduct work in a way that suits you
• Way to meet new people
• Opportunity to earn extra income
• The benefits may be featured, but the company may
  not reveal that participants will own a business.
  Individuals should thoroughly check the companys
  website to see exactly what type of opportunity
  is being offered.

6
Some Popular Direct-Selling Companies

• Mary Kay
• Longaberger Baskets
• PartyLite
• Shaklee
• Amway

• Vector/Cutco
• Tupperware
• Avon
• The Pampered Chef
• Primerica

7
Arent Direct-Selling Opportunities Scams?

• In general, direct-selling opportunities that use
  single and multi-level compensation plans are
  legitimate. Scams do exist and it is up to the
  job-seeker to research the company and
  opportunity in order to protect themselves.
• Legitimate direct-selling opportunities can
  provide a great source of extra income for some
  people some individuals make their entire living
  off of legitimate direct-selling work.

8
Direct-Sales orPyramid Scheme?

• Some opportunities are not what they seem. As
  with any offer that promises income, one should
  conduct thorough research. Before researching a
  specific opportunity, learn to distinguish
  legitimate opportunities from pyramid schemes.
• Pyramid schemes are illegal. The schemes are
  built solely on signing-up other individuals to
  invest in the opportunity to recruit more
  individuals to do the same. The individual who
  recruits the new person gets a cut of the
  investment.
• The money moves up the chain, resulting in only a
  few or one person getting rich. The losers in
  this scheme are those at the bottom of the chain
  who fail to recruit new people to invest.
• Lack of general knowledge, the existence of
  illegal scams, and a history of poorly-operated
  direct-sales companies can cause public
  confusion. More information on schemes.

9
What to Look for when Evaluating Opportunities

• Find out whether consumers will be the ones
  buying the products or services you will sell
  through the company. If the opportunity requires
  selling to anyone other than consumers, be wary.

• Ask if the company will buy back unsold
  inventory. Legitimatecompanies will buy back at
  least 90 of the unsold inventory you purchased.
• Start-up investments for legitimate companies
  should be relatively inexpensive. If fees are
  very high, then you should probably avoid
  joining. Get rich quick claims and high
  pressure to spend a lot of money in the beginning
  can be reliable warnings.

• Do you have to search long and hard for
  information? Legitimate opportunities will give
  transparent, easy-to-find, easy-to-understand
  information on their website. The 1-800 number
  should not be the only source to get information
  about the opportunity.
• Ask yourself if YOU would buy the product or
  service in question. If you would not buy it you
  probably should not try to sell it.
• Source www.dsa.org FAQ Page

10
Research

• In addition to reading everything on each
  companys website, here are some other resources
  that will help you decide whether to pursue a
  direct-sales opportunity.
• The Direct Selling Association (DSA) is a
  national trade association that represents
  direct-selling companies. The DSA has a code of
  ethics to which it reportedly requires all
  members to adhere. Consumers and potential
  direct-sellers can use the DSA to learn about
  companies and check for legitimacy. Some may
  benefit by joining only those companies listed as
  DSA Members.
• Explore their website www.dsa.org. Pay special
  attention to the Code of Ethics and the
  Membership Directory
• continued

11
Research

• The Better Business Bureau (BBB) www.bbb.com
• The way a business treats its customers can give
  clues to how you will be treated as a sales
  representative. Also a good way to check up on
  the local end of a national direct-selling
  company.
• The Small Business Administration (SBA)
  www.sbaonline.sba.gov Government agency provides
  tips, support, and resources for those interested
  in starting a small business and those who
  already run one. Best used for general
  information on what it takes to be a successful
  entrepreneur. Contains little information on
  direct-selling.

12
Local Issues

• Just because a legitimate, national,
  direct-selling company is an award-winning member
  of the DSAand has a great BBB record does not
  mean sales directors/recruiters at the local
  level will be perfect.
• While you research the whole company, try to
  findout information about representatives with
  whomyou will interact. Talking to current and
  formerdirect-sellers associated with the company
  you are considering is a great way to learn what
  you needto know in order to decide with
  confidence.
• An example of a local issue The companys
  policy may indicate that you can quit at any
  time but the local director may resort to
  high-pressure tactics toget you to stay with the
  company.

13
Additional Notes about Direct-Sales Companies

• Even some of the best direct-sales companies can
  become the target of disgruntled former
  representatives and annoyed consumers. After
  failing to succeed as a direct-seller, some will
  blame the company, whether the company was the
  cause for failure or not.

14
Next Step

• Imagine
• You have been asked to become an independent
  contractor for a direct-sales company.
• You did your homework and verified the legitimacy
  of the offering.
• It is not enough to simply ensure a direct-sales
  opportunity is legal.
• You must make sure direct-selling and
  entrepreneurship fits your personal goals, style,
  and interests.

15
Is Direct-Selling for You?

• For many, the chance to own a business is a
  dream-come-true. Having a flexible schedule,
  being released from limits on earning potential,
  injecting excitement into life, and getting to be
  the boss are seductive benefits of being an
  entrepreneur.
• All who consider starting any business must be
  aware of the realities that come with being an
  entrepreneur
• accounting and taxes
• irregular income flow
• responsibility for ultimate success/failure
• selling and marketing consistently
• risky nature of small business ownership
• long hours

16
Is Direct-Selling for You?

• The direct-selling recruiter who wants you to
  join his or her company will probably do little
  to confirm that you are a good candidate for
  owning a small business. It is your
  responsibility to figure that out before spending
  time and money on a direct-sales opportunity.
• Receive career counseling to see what
  occupations best fit your personality and
  interests
• Take advantage of college institutes that teach
  the process of starting and running a business.
  Some offer entrepreneurship assessments and
  counseling. Try CPCCs Institute for
  Entrepreneurship
• Take a small business course at CPCC
• Chambers of Commerce typically offer
  entrepreneurship resources and information

17
The Sales Industry and thePeople who Thrive in
it.
Successful selling requires Persistence Persuas
ion Promotion Positive-thinking Passion

• Extremely successful salespeople are successful
  for a reason. They are expert persuaders who
  value competition, excitement, recognition,
  profit-gain, and other forms of business success.
  
• Salespeople may appear pushy to those who
  arent familiar with sales or to those who do not
  hold enterprising values.
• No matter what direct-selling opportunity you
  pursue, remember that you are always selling
  something.Be sure that is what you want to do
  before startingyour own business.

18
Still Not Sure if Direct-Sellingis for You?

• Instead of spending 150 on a product kit for
  direct-selling, try taking a job as a
  commission-based salesperson.
• If you enjoy selling things to people and
  earning money based on sales performance, then
  maybe you would benefit from a direct-selling
  opportunity.
• To learn more about direct-sellingand small
  business ownership,contact Career Services.
• Visit our website www.cpcc.edu/career
• career.services_at_cpcc.edu