Wednesday, August 24, 2016

Pyramid Scheme

I'm sure you have heard about these pyramid schemes.  Where I sign up to sell things then I recruit people to sign up under me.  I make a percentage of what I sell and a percentage of what the people under me sell.  There are several companies out there that get you to sell their products.  You can sell jewelry, soaps/lotions, cleaning products, essential oils, food products, etc.

Well, over the years, I have witnessed quite a few moms joining the ranks of direct sales in an effort to supplement the family income.  It's great if you are purchasing and using the product and you know a lot of people that will buy from you (and possibly have a party to expand your customer base and business).

Recently, one of my Girl Scout moms signed up with one of these companies and is now selling jewelry.  She had a party to kick off the start of her business.  I had to work that day and wasn't able to make it, but I did purchase something, even though I did not attend.  I saw her regularly at softball games this summer and she would casually mention her business and how she is trying to figure out how to grow it.

I guess this is where the business side of my head wants to jump in and say something.  I mean, did you have a plan when you started this business?  Who is going to be your customer?  Who will have parties for you?  Are there any shows (craft fairs) you can do?

I keep my mouth shut.  Afraid I might get asked to do a party.  It's nice jewelry, but, I don't want to make my friends feel obligated to purchase jewelry.

I did get a text from her telling me someone did not use their coupon from the party.  I politely declined.  I felt bad, but, I could not justify purchasing jewelry when money is needed for other necessary things at the moment.

Have you ever signed up with a direct sales company?  If so, how well did you do?  Have you been approached by friends selling stuff?  How do you react?

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