What’s the Best Way to Make Money in a Recession?
According to many experts, a recession is coming. A recession happens when people no longer spend as much money, causing a decline in economic activity nationwide for two consecutive quarters. The government does what it can in order to slow spending so that demand decreases, but right now, it’s likely too little too late. A recession isn’t made official until it has already happened.
What happens during a recession?
Recessions affect all of us in one way or another. In the past we’ve seen layoffs, widespread unemployment, bankruptcies, an unstable stock market, and high interest rates.
You’ve probably noticed that everything costs a lot more. That is due to inflation. During the pandemic, demand was relatively low and people weren’t purchasing as much. With factories and ports slowed or shut down, the supply chain slowed. We are feeling the effects of that now with less products on store shelves and certain items becoming almost scarce.
When demand is high and supply is low, like it is now, suppliers and retailers charge more. In the hopes of slowing demand, the Federal Reserve has raised interest rates. New borrowers will feel the effect of that. The Fed is likely to continue to raise rates every month for as long as it takes. This will mean less people will borrow money and inflation will eventually slow.
Every recession we’ve had throughout history has been slightly different in terms of length and severity, but one common thread is layoffs. It also becomes harder to borrow money because with widespread unemployment, banks don’t want to take a risk on defaulted loans.
There are a couple of good things that can come out of recessions. People tend to save money, if they have enough to save. And people start getting creative and start new businesses. Entrepreneurs have the potential to thrive when a recession hits.
Is it a bad idea to start a business during a recession?
Starting a new business is tough. Most of them fail within five years. Starting a new business during a recession seems like it would be even harder, yet some of the world’s most successful businesses were started in a down economy.
Experts say that if you want to start a business during a recession, you can be wildly successful. Competition is less, people are looking for jobs, and there is a possibility that the government may offer incentives for new business owners. But, the biggest drawback is money. If you don’t have the money to invest, it’s hard to be successful. Fortunately there is one way to start a business if you don’t have a lot of start-up money.
A Recession Proof Business
With people getting laid off during recessions and with fewer jobs available, it could be a good time to start a business. After all, you can’t fire yourself. When there are no other viable income sources, desperate people tend to be more motivated to succeed. One business model that requires motivation but little money has been shown to be nearly recession proof: direct sales.
Why? People don’t stop spending money during a recession, but they do look for creative ways to save. For example, families might opt to eat out less but they still want to enjoy good quality meals at home. They turn to direct sales consultants to buy kitchen gadgets or special cooking mixes to keep things fun at meals.
People also don’t tend to cut their budgets on things like cosmetics or skincare. There is a reluctance to buy “cheap” products when it’s something that you put directly on your skin or into your body.
Interestingly, in the past two recessions, retail sales declined but direct sales increased. People trust their friends and when someone is singing the praises of a certain product that does great things, we listen.
How do you pick a direct sales company?
There are hundreds of direct sales companies to choose from. Many have been in business for decades and others are just getting started. People have made millions of dollars running their own independent businesses using the direct sales model.
The first thing to consider is the product itself. Is it a product or a niche that you are passionate about? If you’re keen on makeup, look at cosmetics or skincare products. Someone who loves to cook would look at a company along those lines. And health conscious people may be more interested in selling vitamins or environmentally friendly cleaning supplies.
Next, you need to look at the investment. Very few companies will offer something for nothing. Like any business, there are ongoing costs. Some companies will require you to carry inventory. Others have catalogs for you to purchase and keep on hand. In this day and age, you’ll need a website and there are usually ongoing costs associated with that. The main thing to consider is whether the investment will pay for itself, or if you need to keep sinking money in for little to no return.
Check out what resources the company provides to its consultants. Do you need to be creative and generate your own social media videos and posts? Do they have educational materials that help you and your customers learn more about the products? Will you have direct access to higher-ups who can answer your questions? These resources can potentially save you time as you build your business.
What are the requirements with the network structure? Does building a network of consultants under you significantly change your income? It is illegal for a company to require you to build a network, but many do reward consultants for bringing others into the business by providing them with residual income. Another thing to consider is if you need to do anything to maintain that residual income from people you’ve brought into the business. Do you have to continue to add more people or achieve a certain level of sales?
No matter what company you decide on, you will have to put in some time and effort in order to be successful. That will include reaching out to people and sometimes even promoting the product in unconventional ways by mentioning it to strangers if they make a comment. For example if someone says that they love your purse, you would say, “Thank you! It’s XYZ Brand and I sell them! Here is a catalog and my card!”.
In direct sales, nothing comes easy. Many companies will make it sounds like you have to do little to no work, but you are running a business. A locally owned restaurant will shut down if the owners don’t continue to promote it and be innovative. You need to operate your business the same way.
Qyral is Different
If you are passionate about skincare and health, Qyral might be the company for you. The products and formulations are based in science and everything is customized for our customers. We’re even able to offer prescription grade products, giving our consultants an even more unique product to promote!
Because our products are custom blended for each individual, you literally cannot keep stock on hand! There is nothing to buy or stock up on. There’s no catalogs or swag. Your only ongoing investment is your website and the time you need to promote it.
Although we are technically considered a direct marketing company, we operate more on the premise of social selling. It works more like a referral system. There are no home parties or putting people in an uncomfortable situation to buy, buy, buy. You promote your website to earn a commission and after that, the customer is yours, earning you residual income every time they order. And if they decide to sign up and launch a website, you’ll start building a team.
We also provide you with everything you need! We have educational videos, ingredient descriptions online, informative blog posts and an open door policy with our staff to help answer any questions you have about growing your business. If you succeed, so do we! It’s a win-win situation.
If you want to learn more about becoming a consultant, check out our website! We’d love to have you as a part of our growing community.