Direct sales: beware of scams!

The advantages of direct door-to-door sales

The principle of direct sales is simple. Between traditional in-store sales and mail order sales, the independent home seller (VDI) markets the goods or services of a company directly to potential customers. The advantage: being a mother while working!

“I sell cosmetic products to supplement my ends of the month. I establish my own schedule, so as to devote myself to my 6 month old baby, be out of school for the older one (6 years old) and help him with his homework. I often organize my sales meetings on Saturdays, so my husband, who is not very present during the week, takes the children to the swimming pool or to the park. “ (Isabelle, Lille).

Direct home sales scams

Be careful, the company cannot encourage you to buy stock, especially in proportions greater than what you can sell, without the guarantee that it will be taken back. However, this warranty may be limited to a period of one year after purchase.

Direct home sales and remuneration thanks to referrals

If you have the right to receive commissions on the sales of your referrals (that you have sponsored in the company), in any case you can not be paid on the sole act of recruitment. Watch out for companies that promise to earn you a thousand and one hundred dollars, especially if you hire VDIs. It would be a pyramid sale: the fraudulent practice is prohibited by law, because its participants seek enrichment without economic cause and incur fines and prison sentences …

As Sylvie (former VDI) testifies, illegality is often unknown to sellers, baited by money! “The sale of the articles brought me almost nothing, so the company encouraged me to sponsor a maximum of VDI: each recruitment gave me the right to a remuneration. A friend, VDI in another company, told me that this practice was totally illegal and that I even risked a conviction… I immediately stopped! “

Clearly, your main activity must remain the sale, yours and incidentally that of your godchildren. Your earnings must remain proportional to the work done, not relative to the number of VDI recruited.

How to break the contract?

The VDI, like the company, can terminate the contract at any time, possibly with prior notice. At the start of the contract, however, you have a withdrawal period of seven days and fourteen days if the company is a member of the Federation.

Direct sales: choosing the right product

The key to success in direct home sales is choosing the right product. So better to choose one that you like, you will be more convincing. From lingerie to kitchen equipment, through clothing or cleaning products … Having trouble choosing your business? Are you interested in diversity? You have the right to work for several direct home sales companies. Provided, however, that the products are not competitive.

 

Home sales: work according to your needs

There are those who wish to supplement the family income and those who want to make direct sales a real profession, with a substantial remuneration. It all depends on professional ambition and personal investment: remuneration is paid by commission (on average 20 to 30%), on each product sold. “With a 30% margin on each item of clothing, plus the commissions earned on the products sold by my godchildren, I easily reach 400 euros per month of income, by only working part-time! “ (Nadège, Nice).

Note: the status of VDI only applies to occasional activity. Beyond 16 euros in earnings (in 092), for three years in a row, the seller must release his status to register with a professional register.

VDI: how to build a network?

How to make a network? Tips from Virginie, VDI at tupperware:

– Talk about your sales after school, to your neighbors, to your friends: word of mouth spreads quickly!

– During meetings, suggest that the women present hold a meeting at their home. An incentive: the hostess often receives a gift or a discount on what she buys.

Independent seller: a real status

If under labor law the independent home seller (VDI) is not considered an employee, he is “assimilated employee” with regard to social security. This status gives it a double advantage. As a self-employed person, his earnings are not subject to Assedic contributions. As an “assimilated employee”, he benefits from the social security system. Remember, registration is the responsibility of the home seller.

How to become VDI?

– By being sponsored by another VDI or by contacting the company directly. You will not have a job interview and no diploma is required.

– You sign the contract established by the company. Remember to check the commission you will receive on each sale. The Direct Selling Federation advises to opt for the status of VDI agent rather than VDI buyer-reseller. The first status allows the seller in particular to know in advance his remuneration, since he is paid by commission.

– Remember to declare your income – even low – to taxes!

Right to benefits

Like other employees, the VDI can claim various social benefits, such as PAJE, the free choice of activity supplement and unemployment. If you are expecting a baby, you are entitled to daily allowances for the first six months of work interruption. The condition: to have contributed for six months before the work stoppage, for remuneration at least equal to 1 times the hourly rate of the minimum wage or failing that, to have worked at least 015 hours during the 200 days preceding the stoppage.

Parental leave and VDI?

If the VDI status is advantageous on many points, a total freedom of exercise would be a little too much to ask… If you are on parental leave of education or work part-time to raise a child, you cannot be in the same independent seller time.

* For more information: Federation of direct sales

                             100 President Kennedy Avenue

                             75016 Paris – Tel: 01.42.15.30.00

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