You have options.
Low cost
Complex industry
Massive barriers to entry
High failure rate
Good luck. The promotional products industry has a million moving parts: Suppliers, Products, Vendors, Service Providers, Teachers, Trainers. How do you connect the dots? Who do you know? Who do you trust? The industry also has some peculiar rules, too.
You cannot become a distributor just because you want to. The promotional products industry utilizes a private distribution system that requires proof that you are already selling promotional products as a distributor in order to become a promotional products distributor. If you can’t provide their proof (multiple invoices in multiple client names, a history of working with suppliers, etc.) you won’t be allowed to be a distributor.
It’s a true “Catch-22”.
The DIY cost may be next to nothing, but the chance for true success may be next to nothing, too. Yoda said, “No, Try Not. Do or Do Not, There Is No Try.” DIY is the approach most people take when they are unsure. If you are unsure about starting your business, it’s better not to try. Failure is not fun.
Usually, a good support system
Large franchise fees
Royalties:
up to 20-30% of your net profit
Too much to pay?
Franchise royalties are in the 9% range on your gross sales. In the industry a $1,000 order has a gross profit on average of $400.00 (40%). The 9% royalty ($90.00) on the gross sale is your cost to be a franchisee. Your total net profit then, is, ($400 gross profit less $90 royalty) $310.00.
Your 9% royalty on the sale ($90) is actually 22.5% of the total gross profit available. That’s over 1/5th of the total profit for that sale. You are paying over 22% of your net profit for the privilege of being a franchisee. Think about that.
And think about this too. You will pay royalties on all your orders, new or repeat…forever.
Commissions not profits
50% split with distributor
No industry membership credentials
Half-truths
This is the illusion of being in business for yourself. Are you selling promotional products? Sure. Is it YOUR business? No. Want proof? Businesses make profits. Sales People, Reps, and Dealers are paid commissions.
You are working for your Distributor. Every order you place through them bears their Distributor’s Membership ID credentials…not yours. In fact, you don’t have industry membership credentials.
You are often told by your distributor that if you quit you can take your customers with you. That’s a half-truth. Yes, you can, but you cannot use their purchase orders as proof to the industry that you are the distributor when you decide you want to be a distributor. This illusion is a dream stealer.
It costs almost nothing to be a dealer, that’s the hook. You don’t have equity…it’s more like you are renting.
Let’s talk about true costs. The profits in dealer programs require you to split the profits 50/50 with your distributor. That’s your on-going “true cost” to be a dealer. The same $1,000 order, with a gross profit of $400 (40%), your commission is $200, while your “cost” to your distributor is $200.00. That’s their profit. A dealer program is only one step above a DIY start-up.
All the profits are yours
All the customers are yours
One-time fee for a lifetime commitment to help you succeed
Connection, Education, Training, Support
HIRE AN EXPERIENCED MENTOR
That’s Distributors First (DFI). We help you start a true business, your business, with no strings attached. Meaning no royalties, no profit splitting, ever. Meaning all the profits are yours. All the customers are yours. True equity. True ownership.
Our mentorship is just like coaches on the sidelines of your business. Here to instruct, teach, support, help, and assist. We provide all the industry credentials and industry tech tools you need to be successful. Membership. Research Tools (software). eCommerce Website. Preferred Buying Groups. All the Industry connections.
You supply your commitment in both time and money to build a successful business.
Does it cost something? Sure. We bring a great deal of expertise and insider’s knowledge to your table. We call it C.E.T.S.
Connection. Education. Training. Support.
Our DFI enrollment fee is a one-time fee to us. Period. For a lifetime commitment to help you succeed. No Royalties or Profit Splitting. Period.
Our enrollment fee? Less than $6,000.00. A handful of orders will give you a quick 100% return on your investment.
Our turn-key program will give you everything you need to connect, educate, train and support your new promotional products business.
Isn’t it nice to know that there is someone out there willing to take this journey with you and help you along the way?
Get our free white paper "The Philosophy of Promotional Products" to find out!
You need the Distributors First Connections & Coaching Support Platform to maximize your potential. Distributors First is the shortest distance between where you are now and where you want to be.
We are on the sidelines of your business, helping you achieve your goals.