Becoming an independent distributor can be fun and rewarding if you dedicate the time and effort it takes to become successful. In order to start a business
in independent distribution you are regularly required to purchase a decent amount of stock of the product you are interesting in reselling. Once you have found the product that you feel you will be most successful in selling, you will need to fill out an application and the necessary tax forms such as a W-9 so that you can begin making money! After purchasing your starter distribution kit and complete the necessary forms, your application will be reviewed and either accepted or denied, depending on whether you filled out everything correctly and you meet the requirements of being an independent contractor
Understanding the Ins and Outs of Independent Distribution
Once you are approved, you are able to purchase the products you wish to resell at wholesale prices and you can begin to sell them at retail prices in any fashion you choose. It is your choice to either keep an inventory of many products or continue to request products from your wholesaler as you sell them. In order to remain an active distributor you are normally required to meet a quarterly sales goal, but if you fail to meet that goal most companies will drop you from their distribution program. Your quarterly sales can be a combination of products you have sold to others at wholesale and retail price.
Many companies offer incentives to those who rapidly excel in the sale of their products by having structured bonus programs. These bonus programs can vary from company to company. They are normally structured to offer you a return of a percentage of your total sales, such as 10% of every thousand dollars of wholesale you distribute. It can continue to scale to 15 and 20 percent as you double and triple your overall sales.
The Advantages of Having a Successful Distribution Downline
Another advantage of being an independent distributor is the ability to recruit more distributors under you in order to maximize the amount of sales, and receive a percentage of your recruits’ sales as well. Once you have at least one recruit you immediately become part of the leadership distributors. This leadership program allows you the opportunity to earn a partial amount of the sales of those under you, and any other person under your recruit as well! In order to continue as a leadership distributor, you must be able to meet a higher combined sales amount so that you don’t just survive off of the benefits of the sales of those you recruited.
To better explain, you should understand that when an independent distributor recruits another distributor they are considered leadership and will have the opportunity to earn over-rides on the wholesale monthly totals of their downline. In order to qualify for downline over-rides, the leadership distributor will be required to submit combined sales with a minimum of a preset amount per month in product. This can be combined wholesale
, retail, and drop shipped. Should the leadership distributor fail to meet sales quotas they will forfeit the over-ride commissions earned for that month. They will not lose their downline. Downlines will only be lost should the distributor become inactive. Should the leadership distributor become inactive the downline will be moved to the leadership distributor’s line above them. Most first line recruits receive around a 5% over-ride while the second and third lines receive 3% to 1% over rides.