If you're a personal care product junkie like me you can't help but get excited when you come across skin care, bath and body products. Even products that I wouldn't use because of certain harmful ingredients, I'm still drawn to the packaging or what other companies are offering.
Periodically, I come across competitors that offer discounted start up kits which is SO tempting to sign up for the kit value alone. Even if there isn't a sale on the business kits, most of the starter kits are such great value.
First, if I'm signing up just for the products in the starter kit without any intentions to sell or build a business I think it's fair to let the person I'm signing up with know upfront. Most don't seem to mind because they're hoping you'll end up building the business or at least being a loyal customer.
Sometimes people sign up because they're slightly intrigued by the company and that leaves a door open for possibly building a business. Since direct sales is a number business some will join for the product discount and end up building a business and some won't.
For $99 starter kits with most direct sales/party plan companies it's often worth the price because you're getting a lot of products. It also gives you an opportunity to test the company out especially if the company does not require monthly sales, auto-ship, or website fees so there's nothing to lose.
There are quite a few companies that offer free replicated websites so you're not spending anything above the starter kit. It's a great value because you'd spend more on the products individually if you were buying them at retail. You also get a discount as a consultant ranging anywhere between 20-30% off retail.
The downside of people signing up for the kit value without doing the business is that you're earning less as a business builder compared to selling the products at retail. Most companies offer around 5% team commission however if you were selling the products at retail, you could earn between 20-30% profit.
The upside is that anytime someone buys a kit, even if they're signing up for the products or shop "wholesale" as it's known in the industry, a team leader could end up gaining a new business builder. Sometimes people end up falling in love with the products, company, people, and end up being a business builder.
Since direct sales/party plan is a number business you never know when someone decides to turn a hobby into a full blown business. The flip side is also true that most won't do anything with the business.
What do you think about people signing up just for the kit value?