Getting started
Choosing a direct sales company. Score it before you sign.
Updated Oct. 4, 2026 · 8 minute read
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The right company is the one you’d buy from anyway.
There are hundreds of direct sales companies selling everything from cookware and candles to skin care, supplements and clothing. On paper many look alike: a starter kit, a commission, a catalog, a team. The differences that matter show up in the fine print and in what happens month after month.
Start with the product. You will talk about it every week, to people who trust you, so it needs to be something you use, believe in and would happily pay full price for. Then look hard at the money: what it costs to start, what it costs to stay, how you get paid, and what people in the business actually earn.
The Federal Trade Commission’s advice for anyone considering a multilevel company is blunt: decide whether you really want to sell, whether you have a plan to reach customers, and whether you can afford to risk the money and time. That’s the right frame for any company you’re weighing.
The short version
- Pick a product you’d buy without the discount. It’s what keeps customers reordering.
- Add up the full cost: kit, monthly minimums, autoship, fees and supplies.
- Read the income disclosure and look at the typical earner, not the top one.
- Ask about buyback before you buy any inventory.
- Compare at least two companies side by side before you commit.
The scorecard
Eight things to score, for every company on your list.
| Criterion | Scores a 2 | Scores a 0 | Score |
|---|---|---|---|
| 01Product | You already use it or would buy it at full price. Customers reorder it. The price holds up next to store brands. | You only like it at the consultant discount, or the pitch leans on miracle health claims. | Score 0, 1 or 2 |
| 02Pay plan | A written plan that pays a clear percentage on your own sales to real customers. | Most of the money is described as coming from recruiting, or nobody can explain it simply. | Score 0, 1 or 2 |
| 03Startup cost | A modest kit whose contents you would actually use or sell, with the price stated up front. | Expensive packages, upgrade tiers, or pressure to buy the biggest kit to “start strong.” | Score 0, 1 or 2 |
| 04Minimums & autoship | Low or no monthly minimum, and autoship that is optional and easy to cancel. | A required monthly order or volume just to stay active or keep your discount. | Score 0, 1 or 2 |
| 05Buyback policy | A written policy to buy back resaleable inventory if you leave. | No buyback, or one with conditions that make it hard to use. | Score 0, 1 or 2 |
| 06Income disclosure | A recent statement you can read, showing what typical participants earned. | None published, or only top earners and lifestyle photos. | Score 0, 1 or 2 |
| 07Culture & support | Real training, a helpful upline, and a home office that answers questions. | Hype calls, “fake it till you make it,” or pressure to quit your job. | Score 0, 1 or 2 |
| 08Reviews & track record | Consistent reviews from current and former sellers, and a stable operating history. | Complaints that repeat the same problem, or uncertainty about whether it’s still trading. | Score 0, 1 or 2 |
| Total | __ / 16 | ||
Costs and pay
Where the scorecard usually gets decided.
Startup cost
Minimums and autoship
The pay plan
Income disclosure
Buyback policy
Culture and support
Most people who join MLMs and work hard make little or no money.
That isn’t a reason to never join. Plenty of people sell part time for a discount, a hobby income or a social outlet, and are happy with it. It is a reason to set expectations from the documents, not from the success stories.
The FTC’s business guidance on multi-level marketing also flags “inventory loading”: buying product to qualify for pay or rank rather than to meet real demand. If the plan nudges you to order just to hit a number, score it down.
New to the jargon? Multi-Level Marketing Explained covers ranks, volume and overrides, and Direct Sales vs Pyramid Schemes walks through the legal line.
How to research
Do the research on Direct Sales Aid, then go to the source.
- 1
Browse the directory
Start at Companies and filter by what you’d like to sell. Each profile shows the year founded, commission range, downline commission, startup cost and products sold.
- 2
Shortlist two to four
Read the full profiles and drop anything that fails your must-haves. Profiles of companies that have closed carry a notice, so you won’t waste time on one that’s no longer trading.
- 3
Compare side by side
Compare puts two to four companies in one table: starter kit, personal and downline commission, plan type, track record and member ratings, plus how much you’d need to sell to earn the kit back.
- 4
Read member reviews
Reviews collects what members say about each company. Look for patterns rather than single stories, and weigh reviews from former sellers too.
- 5
Get the documents
Ask the company or the consultant inviting you for the compensation plan, the latest income disclosure, the policies and procedures, and the buyback terms. Read them before you pay for anything.
Questions to ask
Eight questions before you buy a kit.
- What does the starter kit cost, exactly what's in it, and is there a cheaper option?
- What percentage do I earn on my own retail sales?
- Is there a monthly minimum to stay active or keep my discount? What happens if I miss it?
- Is autoship required for consultants? How do I cancel it?
- Are there website, app or annual renewal fees?
- Will the company buy back unsold, resaleable inventory if I leave, and for how long?
- Where is the latest income disclosure statement, and what did the typical participant earn?
- What training and support will I actually get, and from whom?
A good sponsor will welcome every one of these questions and help you find the answers in writing. If you get vague replies, or the conversation keeps steering back to how much the top earners make, that tells you something too.
Once you’ve chosen, Direct Sales 101 maps out your first 90 days.
Sources: Federal Trade Commission, Multi-Level Marketing Businesses and Pyramid Schemes (consumer advice, updated July 2022) and Business Guidance Concerning Multi-Level Marketing; Direct Selling Association, Code of Ethics (inventory repurchase, inventory loading and earnings representations). The scorecard is a planning aid, not a rating of any company.
Put your shortlist side by side.
Keep reading
More getting started guides
New to direct sales? Start with What is Direct Sales?, Direct Sales 101 and Direct Sales vs Pyramid Schemes, or browse all articles.
