It’s nice when the media gives you an opportunity to present facts in light of unsubstantiated claims or complaints. That’s what happened in Springfield, MO when KY3-TV News called to see why they had received several phone calls about a so-called misrepresentation.

It turns out Southwestern Company independent student dealer Matt Seitz, from Asbury College in Kentucky was on the scene.  After speaking with him and following him for a while, they were able to see first-hand what he was doing and how the customers were approached (not like what was reported by a few, in what amounts to the so-called miscommunication I referred to previously).

The news story was titled “Door-to-door salesmen defend themselves against false accusations.”  It can be tough being in an industry when some people have a negative attitude towards you – for no real reason other than being different or because of the job you choose to have.  Quick to judge and even quicker to sentence.

In the training I do with each student dealer in Southwestern Company’s summer program, I explain the most basic of communication models:

                                                                            source> message > receiver

The source is the sender of the communication.  If the message is distorted in some way, the receiver does not receive the message as intended by the sender, or source.  This sometimes happens at the door when someone is not listening to the student.  It is an unfortunate part of not only door-to-door sales, but life in general.  

Maybe if we all paid more attention to each other, we would ALL communicate better.

This opinion made me think about how, being in the industry of direct selling, and specifically door-to-door, we have to just sometimes laugh at ourselves and the interesting people we meet along the way and behind the doors.

Ryals received several visits at his home, which from the sounds of it, may be traveling sales crews (magazines, cleaners…).  According to Ryals, with the town of Maple Valley, WA, soon to lift their ban on door-to-door solicitation, he figures the new layers of local bureaucracy (the normal – background checks, application fees, fingerprinting, etc…) may do the job to keep the solicitors out.  Perhaps.  But it would probably just be some of the legitimate ones who would go through the process,  not those that don’t bother anyway for which the onerous process is actually intended to keep out (cough, cough traveling sales crews).

Ryals goes on to list his “Top methods for door-to-door sales defense.”  His ideas are creative and entertaining.  They include:

1. Turn the tables: have a product by the door to sell them.
2. Pick an accent you are good at and pretend to not speak English.
3. Present an alternative list of things you are looking to buy that border from almost believable to ridiculous.
4. Have the solicitor fill out a long and laborious application in order to sell something to you.

I think this is absolutely hysterical.  I give Ryals credit for having fun with something that annoys him rather than getting angry.  Clearly, not everyone enjoys a visit from a solicitor at their home (although many do as evidenced by Southwestern Company’s student dealer experiences).  

Door-to-door sales is not for everyone – and that goes for both sides of the door, the knocker and the knockee.  It can even be fun!

Proof?  Such was the case for independent student dealer Matt Schuster from the University of Missouri who was hoping to run his business selling Southwestern Company’s educational products to families in Gilford, NH this summer.  

The town of Gilford allows door-to-door solicitation… only for a permit fee of $2,500.  Too rich for a college student trying to earn money to offset his educational expenses.  Too rich for most anyone with ambitions to go door-to-door in this community.   

An article from The Citizen of Laconia titled, “No permit fee, no peddling, student told,” dated May 27, 2010, chronicles Schuster’s plea before city council to reduce or exempt the enormous fee.  He had already complied with state permitting and business licensure, as well as two other nearby towns in which the permits were between $10 and $100.  His stated intent was to ensure he went before the council to ensure he was in compliance with the law.

Despite Schuster’s best efforts, the permit was denied by the Selectmen for fear of setting a precedence for future vendors seeking exemptions.  My take?  Just an excuse to keep sales people out of their town – unfortunately the honest ones get thrown out with the bathwater too.  Shame on you Gilford, NH.  Some of your residents just may enjoy meeting Matt.  And some just may want or need the educational materials he is selling for their home to help their children with their school work. 

Opportunity lost on both sides, I say.

The blogger drew this conclusion because of Southwestern Company being one of only four companies in the Direct Selling Association’s  membership to be awarded the Century Award.    

Further, the blogger differentiates between Southwestern Company and others who do not do such a great job working to keep neighborhoods safe.  My own opinion as to why this is: 

Southwestern Company CEO Henry Bedford accepts the Century Award from the Direct Selling Sssociation

  1)    Selection process of quality, sharp students – these students are accomplished and have done something in their lives to prove they are goal-oriented and coachable.  

2)     Parental endorsement – parents endorse their children into the Southwestern Company internship even though they are over 18.  It is always the right decision to have the parents help the college students to know if this is something right for them.  

3)     Training, training, training – there is no other direct selling company I know of that has more training than Southwestern company – from on campus to Sales School to Sunday meetings and get-back meetings and all the other training through out the year.  

4)     Emotional training – the psychology of the sale and how to have a positive attitude among other things are just as important to the sale as any other parts of the “Cycle of Selling.”  

5)     Not entirely focused on sales – sales is means to an end.  Other life skills are covered to help the students be well-rounded and diversified.  Success traits found desirable by employers are also included in the training.  

These five things (and there are others) are some of the things that make the Southwestern Company’s summer sales program stand out.  There have been many that imitate, but they do not have the longevity because they are superficial on the outside.  If you’re going to do it, do it right.  

To read about Southwestern Company’s Century Award on the corporate blog, click here.

In her article titled, “Beware scammers knocking on your door,” Beisel acknowledges there are legitimate knocks, but she takes a swipe at the disreputable ones, citing specific examples.  These include scammers and con artists posing as legitimate workers or contractors, and, of course, magazine sellers.

Some of the advice in Beisel’s column includes: (1) See if you can find out who is at the door before you open it; (2) Do not open the door if you feel uncomfortable; (3) Look for red flags such as odd behavior or unyielding pressure; (4) ask for identification; (5) if a contractor, check them out, follow-up; (6) Call the police/9-1-1 if you feel endangered.

There is a distinct difference between reputable and disreputable.  This article makes it a point to keep it balanced. While not all door-to-door sales calls are scams, you should always take precautionary measures… better safe than sorry.

The author, named Bay (www.queenmotherblog.com), talks about her first experience with a door-to-door magazine sales person.  The experience which she details led her to Google “door to door magazine scam.”  What she found was more information than she ever wanted to know. 

If you are a regular to this blog, you know I have some serious issues with traveling sales crews – the abuses, scams and the black eye they give legitimate direct sellers – specifically door-to-door, immediately come to mind.  In her blog, Bay briefly chronicles the various horrors associated with many magazine sellers: the abuse, lies, deceit, violent crimes and “indebtedness” to their “crew.”

I think Bay has it right when she says, “I hope this opens your eyes to an unfortunate industry that is taking place right in our own neighborhoods.”  This is common ground on which Bay, Southwestern Company and I all find ourselves walking.

I was just wondering how old you have to be to get involved with this program. I am 15 and I am looking for a summer job so that I can get early experience in work fields. I am just wondering if this is for college students only, or can you be younger. If i am unable to do this program; do you know any programs I may be able to work through? Thanks for your time.

I thought about this for a minute before sending the automatic response that we do allow anyone that young to participate.  This was a perfect opportunity to educate an impressionable young person who seems to be mature about what she wants for her future.  The last thing I would want is for her to get caught up in a traveling sales crew at her age.  The crippling effect on her life could be tragic.  Here was my response:

Meagan – thank you for your e-mail.  Traditionally, the program is for college students.  Most are over the age of 18.  We do have a few graduated seniors who are participating this summer, but they have their parent’s endorsement and are entering college in the fall.  Some are siblings to other student dealers in our program.  I do not really know any other programs similar to ours, or that would allow someone of your age to do it yet. 

I would caution you, however, to not get attached to any offers that are too good to be true or promise lucrative travel and money.  Traveling sales crews that typically peddle magazine subscriptions door-to-door are very abusive towards young people.  They take advantage of you by withholding your money and controlling you in various ways. Southwestern Company and other consumer organizations have taken a stand against organizations like these to try and educate the public and young people that these sales crews are dangerous.  Many runaways and youths with criminal pasts take advantage of these groups to get away or go into hiding.  There is little to no training involved and you are constantly on the move from town to town. Multiple laws are ignored – from solicitation permits not applied for to motor vehicle violations.  The reason I tell you this is because I would hate for something like that to ruin your life, as it has for so many – including someone in my family.  I know first-hand the realities of the traveling sales crews.

Look for a credible, reputable company.  Research them and check them out with the Better Business Bureau and get qualified testimonials.  There are lots of offers out there that simply should not be taken up on.  Also, work with your parents to make sure they help you make an educated decision as to what the right thing is for you to do.

In a few years, Southwestern Company would be happy to interview you on a college campus and have you sell our products to make money and build your life skills.  I’m sorry we don’t have anything for you at this time.  You show a real initiative.  Always plan ahead as to how you can better yourself and set yourself apart from others – through experiences and the amazing things you are capable of accomplishing.

The reason I share this is I hope this message not only reaches Meagan, but anyone else who is considering working with a traveling sales crew as an option.

Southwestern Company’s Dr. Ralph Brigham, Global Director of Campus Relations was on hand along with representatives from 11 other direct selling companies including Arbonne, Avon, Mary Kay, Jafra, Herbalife, and Shaklee to name a few.

The team, led by DSA staff attended over 50 scheduled meetings and visited 120 offices.  The “DSA road warriors” were also able to build relationships with lawmakers to help them understand direct selling in greater detail, as the lawmakers may be asked to implement tax withholding on independent contractors.  This has been one suggestion to lessen the burden of the state’s budget deficit.

If the requirements for tax withholding was passed, it could have a detrimental effect on direct sellers who rely on the extra income to supplement incomes and help their families.  With a partial amount of income withheld, it takes away from the basis premise that is direct selling – to improve your financial situation and empower your life.  The past bills were defeated each time.  The group on the ground in California were very optimistic about how many lawmakers are very knowledgeable about direct selling and the unique characteristics of direct selling.

At a reception that night, over 150 attendees were further educated about the merits of direct selling and industry facts.  A video featuring eight direct sellers from California was prominently displayed.  One of the video’s stars is Southwestern Company’s own Phi Do, a University of California in Los Angeles student who will be participating in his fourth summer in 2010 to run his own business selling Southwestern Company’s Learning System.  Phi was a runner-up for last year’s Student Excellent Award and is highly regarded by his peers and Sales Manager, Omar Iribe.

With any type of transaction, it is important to have expectations that are realistic for each party involved – the consumer with the direct seller and the sales person with the wholeselling entity (the direct selling company).  The Direct Selling Association (DSA) has a Code of Ethics that Southwestern Company and many other reputable companies follow.  DSA also provides helpful tips about consumer safety and what to look for. 

Below, are some helpful tips from the Direct Selling Association to help consumers know what to expect from direct sellers and what the salespeople can expect from DSA-member companies.  The tips below go beyond the Federal Trade Commission’s requirements; it’s about doing the right thing and operating with integrity.

As a consumer you should expect salespeople to:
●          Tell you who they are, why they’re approaching you and what products they are selling.
●          Promptly end a demonstration or presentation at your request.
●          Provide a receipt with a clearly stated cooling off period permitting the consumer to withdraw from a purchase order within a minimum of three days from the date of the purchase transaction and receive a full refund of the purchase prices.
●          Explain how to return a product or cancel an order.
●          Provide you with promotional materials that contain the address and telephone number of the direct selling company.
●          Provide a written receipt that identifies the company and salesperson, including contact information for either.
●          Respect your privacy by calling at a time that is convenient for you.
●          Safeguard your private information.
●          Provide accurate and truthful information regarding the price, quality, quantity, performance, and availability of their product or service.
●          Offer a written receipt in language you can understand.
●          Offer a complete description of any warranty or guarantee.

As a salesperson, you should expect a DSA member company to:
●          Provide you with accurate information about the company’s compensation plan, products, and sales methods.
●          Describe the relationship between you and the company in writing.
●          Be accurate in any comparisons about products, services or opportunities.
●          Refrain from any unlawful or unethical recruiting practice and exorbitant entrance or training fees.
●          Ensure that you are not just buying products solely to qualify for downline commissions.
●          Ensure that any materials marketed to you by others in the salesforce are consistent with the company’s policies, are reasonably priced and have the same return policy as the company’s.
●          Require you to abide by the requirements of the Code of Ethics.
●          Safeguard your private information.
●          Provide adequate training to help you operate ethically.
●          Base all actual and potential sales and earnings claims on documented facts.
●          Encourage you to purchase only the inventory you can sell in a reasonable amount of time.
●          Repurchase marketable inventory and sales aids you have purchased within the past 12 months at 90 percent or more of your original cost if you decide to leave the business.
●          Explain the repurchase option in writing.
●          Have reasonable start-up fees and costs.

The above-referenced tips have been provided by the Direct Selling Association and distributed by Southwestern Company.

While the article had an overall negative tone towards direct selling in general, and door-to-door in particular, there are parts of the article that resonated with me.  It’s about a particular local company that had a warning issued against it by the local Better Business Bureau.  Nothing new content-wise on this blog, but I found how the term “direct selling” was used to be somewhat insulting because it generalized a negative.  It painted an entire industry with a broad stroke, when, in fact, the good guys far outweigh the bad guys.  I know for a fact we most often hear about the negative rather than the millions of positive interactions each day with direct sellers.  It’s easy to make the media a scapegoat, but it’s everyone.  Negative news IS news.

For 11 years now, I have fought to educate all kinds of audiences about the merits of direct selling and the benefits reaped from it – both on the consumer and individual seller fronts.  Reputable companies – companies with staying power – do it the right way: with ethics, training and a moral conscience. 

The reason I used the past tense of the word “fight” in the above paragraph is because there is an ever-present shortsightedness when it comes to a legitimate business model in which people often make stereotypical assumptions.  This article starts out this way… but with prior cause. 

You see, the direct selling industry takes its lumps because there ARE groups, organizations and individuals who take advantage of others.  Always have, and unfortunately, always will.  This particular article provides several examples.  Mr. Hathaway recalls past articles he wrote about door-to-door scams including several things I have covered on this very blog including door-to-door security alarm sales and traveling sales crews pushing magazine subscriptions and other items.  There are people out there that take advantage of others and choose to operate in an unscrupulous manner – in all industries.  On the flip-side however, there are more that choose to do it the right way. 

Several points were made which I think are worth repeating:

1. Always do your homework – whether looking to sell products door-to-door or purchase them.
2. The traveling sales crews themselves are a danger – to youth involved and possibly the consumer.
3. From the article: “The business practices of these outfits vary widely, and there are direct sales outfits who deal fairly with both consumers and employees.”

While I cringe at the negative stereotypes being fed to mass audiences, I understand where that comes from.  While the roots of evil start with a few, the vines can eventually hang us all.