Is SMC a Good Way to Make Money from Home?
June 29th, 2008Specialty Merchandise Corporation, also known as SMC, is a business located out of California. The company is well-known for their late night infomercials which detail how they can help you start your own home based business. The procedure is supposed to be simple. All you have to do is sign up for an account, purchase a number of catalogs, and then begin selling the products in the catalogs you have purchased. The percentage of commission you earn is very high, making it easy for you to sell to both businesses and individual customers. SMC also encourages you to sign up additional salespersons to form your own team.The folks at Specialty Merchandise Corporation conveniently forget to tell you that the retail prices they charge for their products are out of this world. Even if you earn a 60% commission on each sale you make, there is absolutely no way you can sell the products at wholesale prices to other businesses. The businesses you approach won’t be able to mark up the prices enough to actually make a profit.
Recruiting new salespersons will not be easy at all. Many of those you approach will be hesitant to attempt selling the products you are selling because they will fear the program is nothing more than another pyramid scheme. SMC is not actually a pyramid scam, but it is always difficult to convince people that a network marketing business is NOT one. I’ve always been told that you should never pay to work, but paying for essential items such as catalogs and order forms is essential if you’re ever going to make an actual sale. A business that does not charge its distributors for supplies will do nothing but lose money.
In order to become successful with SMC you will have to find direct customers who will purchase items at retail. What’s the easiest way to do this?
Start with your friends and family members, then move on to their friends. What comes next, though? Specialty Merchandise Corporation suggests purchasing tables at flea markets and fairs. The problem is that people who go to swap meets and craft fairs are looking for good bargains. It will be impossible to sell your products at full retail cost.
SMC will also sell you a website you can use to sell your products. The problem is that everyone who purchases a website from the company gets the exact same site. A cookie-cutter site is guaranteed to make you look unprofessional.
If you prefer, you might want to purchase your own website. In order to do so you will need to have a decent amount of web design experience. You’ll have to design the site, add a shopping cart, create a merchant account for payment processing, and open a business checking account.
A less expensive option is to buy a website and then search for free codes and services. You can find free shopping cart codes and use a free payment account with PayPal or another similar service. You might have your customers make checks out to your personal name so that you can cash them with your personal account, but just know that customers are hesitant to purchase from a website where they have to make checks out to an individual instead of a business.
The most important question is whether or not all of this design work is worth the effort? Personally, I’ve had a SMC section on my website for almost 10 years. I’ve never made one sale with their products.
Specialty Merchandise Corporation: Rip-Off or Genuine Opportunity?
SMC is a great opportunity for some people - you know, the ones in the testimonials and on television. Those people are probably paid to talk about SMC, but I do know that a few people have had legitimate success with the company.
Many people who join SMC end up using their membership to purchase products for themselves at wholesale. Of course, the point was to have a home based business, which you do NOT really have if you’re only making purchases for yourself or your family.
Are there alternatives to SMC?
Don’t bother with SMC if you can help it. It’s just as easy to get a federal tax ID number and then make partnerships with whatever wholesale company you choose. Some of these companies will handle drop-shipping on your behalf and you’ll likely avoid large membership fees. SMC charges $300 to join!
I don’t think that SMC is really a rip-off, but it’s not exactly what they want you to believe it is, either. If the company was a little more honest about their pricing scale, or changed it completely, members might be more successful.
After examining and testing hundreds of money-making opportunities and work at home programs, ONLY ONE brought in a paycheck that covered all my monthly expenses.
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