Some of the larger companies will provide you with tools and charts in which you can use to make an educated guess on your potential earnings.

Some of the larger companies will provide you with tools and charts in which you can use to make an educated guess on your potential earnings.

Will the stock market rise tomorrow? Who will win the Kentucky Derby? If one knew the answers to these questions then he or she would be rich. How much one might earn in a direct selling compensation plan is the result of many moving parts and to make any sort of prediction: the compensation plan itself, percentages paid on product, profit margins of product, personal sales, down line sales, etc. are all contributing factors that are endless. Two important resources are available to consultants: (1) leading companies post average earnings disclosure charts which indicate average earnings for distributors at various levels and stages of their direct selling program; (2) many companies provide online earnings calculators which allow a consultant to plug in their own assumptions on their personal and group sales and activity, which are then used to calculate the payout based on their expected sales performance.

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According to Nancy Collamer, in her Forbes article “Can You Really Make Money in Direct Sales?” direct sellers earn on average $2,400 annually, which isn’t surprising considering that 89 percent of people who work as consultants do so part-time.

The article emphasizes that the statistics are also decreased by consultants who join companies only to get their favorite product at a discount without intending to sell or recruit. Collamer argues that in order to make full-time money in the MLM business one must a least work full-time, although no formula exists that equates working hours into salary in the direct selling industry.

In addition, the article quotes a MLM industry expert who believes that the best consultants are women in their 50s since they are educated, been active volunteers and are experienced in running their households.

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