Disclaimer: This blog is the opinion of the author. The BOTTLESOUP Direct Sales Calculator is a tool for educational use that should not be used in place of professional financial or legal advice. Contact a lawyer or finance professional for assistance with your business decisions.
With just a few pieces of information, you can self-evaluate a direct sales opportunity. This Direct Sales Calculator was designed to help you understand how start up costs, other costs, retail price and commissions work together to provide a profit.
Why we developed the Direct Sales Calculator
Lately, we’ve received a ton of emails from women asking us to analyze different direct sales work from home opportunities. We’re excited to write all of these pieces, but we know that you want information as quickly as possible. You’re looking for an opportunity to earn additional income.
It’s not up to us to tell you whether or not a direct sales company will work for you. We have our opinions. But this is your decision.
We, as a blog, want to empower women. You know what’s best for you. And you can make the best decisions when you’re well informed.
The Direct Sales Calculator is a transparent tool that helps you evaluate an opportunity. Selling hundreds bottles of essential oils per month may be unreasonable for some women, but you may feel uniquely qualified.
How to use the Direct Sales Calculator
You can use the Direct Sales Calculator in two ways.
You can evaluate a potential opportunity or assess your current direct sales relationship. The Direct Sales Calculator can provide you with the volume of product you’ll need to sell to meet your income goals in the first month and in subsequent months.
What the calculator will not do
The Direct Sales Calculator will not tell you whether or not selling a specific amount of product per month is possible. That decision is up to you.
What you’ll need to know
To get the best use out of the Direct Sales Calculator, you’ll need to know:
- Your monthly income goal. Just think about how much you’d ideally like to make.
- The start up costs for the direct sales company you’re interested in. This could include membership fees, enrollment kits, or other fees required to begin the opportunity.
- How much you’ll need to spend per month to keep things going. This includes things like samples, marketing materials, websites, and other costs.
- Any additional costs you anticipate or have experienced. This could include conferences, travel, advertising, hosting parties, etc.
- The average price of the organization’s best selling product. You can choose their most promoted product, or go on most company websites and sort by popularity. This way you can discover the most frequently purchased items.
- How much commission (in the form of a percentage) you earn per item sold. Many compensation plans will give you this information. It’s best to use the lowest commission percentage. And that’s because it’s better to underestimate earnings.
Having this information handy will allow you to use the calculator quickly and easily. You may know these figures by heart. Or you may need to look up a few facts. You can bookmark this page to quickly come back to the Direct Sales Calculator at any time.
The Direct Sales Calculator
Below you’ll find a version of the calculator embedded. If you have trouble using the embedded version, you can use the Direct Sales Calculator through a Google Drive here.
Need assistance using the calculator?
Please send us a note or leave a comment below.
Your Direct Sales Calculator Results
So you put in all the info and got the number of products you’ll need to sell each month. Great! Now what do you do with that information?
Take a few moments to consider feasibility. Is it possible for you to sell at that volume month after month? Perhaps you are new to sales or the business world. You may be wondering how to determine if such a thing is possible.
As with any business, it’s a good idea to make a plan. Writing a business plan is a good way to help you understand risks, rewards, and the steps necessary to achieve each goal.
Many people are intimidated by writing a business plan. But you don’t need to be. Your plan can be as simple as, “I want to earn X dollars in profit per month by Y date.” Start with your goal, then determine the steps necessary to get there.
I thought i didn’t need business experience for direct sales
Reality is you don’t need business experience for any business. But you do need to think of your opportunity as a business in order to evaluate it.
Why? Because you can’t passively sell thousands of dollars worth of merchandise online. At least not in the sense of putting your feet up and earning money without effort.
Even big businesses like Target and Amazon have to work at advertising, marketing, overhead costs, and other expenses.
Here at BOTTLESOUP, none of our authors have ever been involved with a direct sales company. We are not sponsored or affiliated with any direct sales or multi-level marketing organizations in any way.
What does that mean for you? It means we’re able to be objective. We aim to distill information for you. Because we know it’s hard to juggle all your life responsibilities and get a business off the ground.
We’re here to support you with information. And with the Direct Sales Calculator, we’re giving you a way to get information on demand.
Direct sales articles on bottlesoup
Wondering if we’ve already done the work for you? Here are a few articles to look at:
- Perfectly Posh
- Young Living Essential Oils
- Rodan and Fields
- LuLaRoe (1) / LuLaRoe (2)
Are there other work from home opportunities that don’t involve direct sales?
Yes! The good news is that as our economy becomes more and more digital, even traditional 9-5 jobs can be done remotely. Regardless of your skillset, you can find real, professional jobs online. These jobs pay you a salary or hourly wage. And you’re not required to put any money upfront to get these jobs.
There’s a common misconception that work from home jobs are less demanding than in-office careers. This is no longer true. Many parents who work from home must hire a sitter or nanny in order to complete their work.
Just think about how often you’ve tried to tidy up or make a meal and been interrupted. The same applies to working from home.
What about blogging?
It’s true that lots go bloggers make a significant income and get to work from home. But it’s a marathon, not a sprint. If you’re passionate about a subject and need an outlet, a blog is a great choice.
If you choose to start a blog, know that money won’t come easy. It can take years to ever turn a profit. But unlike direct sales and MLM companies, you own your content.
Data Junkie says
This is so cool. Thanks!
Mrs. Bottlesoup says
Thank you! 🙂 I’ve been thinking about it for a while. Glad you like it!