In a previous article we introduced you to the concept of O. P. P. , or Other People's Products, and the many ways in which you can profit.
In that article we asked you what you would do if you found a business that:
* could generate multiple streams of income
* would work in any area of the country
* could be worked both locally and nationally
* could be worked both on and off the web
* and, can be started either in your spare time or part time
What we are talking about is a wonderful business that allows you to generate immediate cash flow and build for your future. Simply put, it is the business of being a rep or distributor for other companies. Companies who have done the hard work of developing products, marketing materials, advertising, etc. All work you can take advantage of with your own business.
There are many companies offering different affiliate or distributor opportunities to those who would like to operate a home-based business. Every year, thousands of people get started building for the future by becoming distributors or affiliates. Look around at the various sites on the web and see for yourself.
This article, the third in the O. P. P. series will briefly touch on some of the different type of affiliate or distributor opportunities that are available, and some examples. We’ll also give you an idea of what you can earn using our vintage DVDs as an examples.
Different Opportunities and Examples
Many businesses were started on the premise of getting representatives or distributors to sell their products. Avon, Mary Kay, Amway, Vitamin supplement companies and rug cleaning companies are just a few examples of companies that based their business model on the representative or distributor.
A great example of a company representative was my friend Marty. He worked out of an office with another company that sold items to casinos and restaurants and also repaired those same items. Items, such as, chafing dishes, buffet pieces, salt and pepper shakers, and a whole lot more.
Marty was a representative for a china company, so he would offer china to those same restaurants and casinos. The company he represented paid rent to the other company. Marty would receive a commission for his sales and he would give a percentage to the other company since they helped him get clients.
For those clients Marty got on his own, he kept the full commission. However, Marty was very smart by hooking up with a company that could provide him clients. Plus Marty would mention to those clients he found on his own that in addition to china, he could also supply them chafing dishes, silver salt and pepper shakers, flatware, etc. Marty would not only bring his china catalog with him, he would also bring the other company’s product catalog. This made him even more indispensable to his customers and also gave him an additional source of income.
We will use Marty again as an example of a distributor since he did eventually leave the china company and opened his own office. He became a distributor for a number of different products.
He would purchase glasses, flatware, and mugs wholesale and then resell them to the various restaurants and other establishments. Last time I spoke with him, he was doing quite well for himself.
SMC, is another example of a very well known company that many (including us a number of years back) become distributors for. They have a variety of different programs for their distributors and their products are excellent. In fact, we kept ours and they sit throughout our home.
However, again, we found it just wasn’t for us, and we stopped. Kept the stuff we had and stopped doing it without another thought. A wonderful option for anyone, and an option a lot more involved and difficult when it is your own business. Just another plus of being a distributor, representative or affiliate.
That is what is so nice about becoming a representative or a distributor you can become one very easily with usually very little cost. In addition, if you don’t like doing it you can also stop whenever you want with little loss. There is a lot less risk taking involved than with your own business, which is one of the reasons it is so popular.
We are going to give you a concrete example of how a rep or distributor can use other people’s products to generate income. To do so, we will use selling a DVD to illustrate this.
Many businesses, car clubs or charitable organizations use DVDs to generate funds for their causes, as give-a-ways, and more.
Distributors and reps approach businesses, clubs, and organizations and offer the DVDs to them for their events as prizes, or to businesses as a bonus, gifts, or to add to their product line. They also will sell them to car clubs as a benefit to the clubs’ members. For example, when someone joins a club included in their membership price is a Hot Rods & Models DVD.
Reps and distributors also approach businesses who sell cars and offer the DVD to them with their business name and address on it (co-branding) to give to their customers as an added bonus when they buy a car, a thank you if you will for doing business with them.
Reps and distributors also approach charitable organizations who want to promote their cause and offer a bonus with a donation. Many charitable organizations promote car events as a way of getting donations and offering the DVD is another way they can give value for the donation.
Another source for distributors are those in the business of restoration products. They can approach these businesses to offer the DVD as a bonus to their customers.
In this example, distributors make a minimum of $6.95 for every single DVD title they sell and $10.45 for each double set they sell. Affiliates get $4.00 on each $12.95 disc and $8.00 on 2 DVD sets.
Let’s do some numbers for a distributor/representative based on the abovementioned numbers selling DVDs. The numbers that follow the monthly total represents how many DVDs you need to sell to reach that monthly total.
For Single DVDs
$100 a month - only 15 $200 a month - only 29 $300 a month - only 43
For Double DVDs
$100 a month - only 10 $200 a month - only 19 $300 a month - only 29
Remember the more selection of DVDs you have to offer, will make it even easier to meet your goals as you will have a variety of people with different interests to sell to. For example, lets say you sell the DVD to 5 car clubs and 5 auto sellers, and you sell the two other DVDs to 5 day care centers that’s $139. You get the idea, the more of a selection you have of DVDs to offer the less you have to sell to any one place.
Also you have the opportunity to offer the DVDs to places that do fund raising and want something to give away to their contributors.
Also these numbers are using only one DVD sold to each place, in reality most places will order multiple DVDs so the actual number of businesses, charities, etc. that you approach may well be less than the above example.
Also don’t forgot for many of the businesses you sell to, you will be doing “repeat business” on a consistent basis. Businesses that use the DVDs as give-a-ways will need to replenish their supply, hence a consistent “repeat customer”.
Becoming a distributor or affiliate gives you the ability to build for the future, with O. P. P. , Other Peoples Products. All it takes is the desire to succeed and some time investment on your part.
What are the benefits to the business owner?
* Little start-up capital needed in most cases. * Little or no credit needed. You are selling their products so your credit isn't a factor. * Business can be started simply, no major equipment to buy, unless you don't have the basics already. * Business can be operated full time, part time or in your spare time. * Best of all, the business can be operated from your own home office
As you can see, becoming an affiliate or representative comes very close to being the Perfect Home-Based Business.
Don't you think you owe it to yourself to explore the potential of O. P. P. ?
What are you waiting for?
Copyright DeFiore Enterprises 2007
We offer Solutions for the Home Based Entrepreneur. We've been helping folks start successful home based businesses for over 22 years, so we know we can help you too. Come see how we can help you operate a successful home based business as a rep or distributor for special interest, nostalgic and historic vintage DVDs: http://www.homebusinesssolutions.com