A Quick Guide to Successful Door-to-Door Sales

Ever wondered what it takes to operate a door-to-door sales operation? Interested in expanding your existing sales channels to include door-to-door selling?

Whether you provide a direct product or service, resell someone else’s product, or operate a franchise, for the right person, selling door-to-door can be a rewarding business opportunity. However, the business of door-to-door sales is notoriously tough and fraught with rejection. It is also one of the few industries where a seller’s regulatory posture and legal status is a top-of-mind consideration for the consumer.

Here are a few tips to help you start a lawful door-to-door sales business, and—who knows?—perhaps set you on the path to founding the next Avon empire!

Research your market

Whether you are selling a service (such as residential bug control) or a product (such as the latest cleaning miracle), do your market research.

Who is the competition? What are your differentiators? Which demographics and market trends are prevalent, now and in the future, in your target geography? Is the crime rate high in your selling territory? (Obviously, you don’t want to risk your own person, nor select a community that is crime-prone and therefore highly secured and gated.)

Research your business opportunity

If you are reselling a product, entering into a relationship with wholesalers, or becoming a franchisee, you’ll need to learn how these business models work. How can you build trusted relationships with suppliers? What marketing support will they give you? How do you avoid scams?

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Comply with laws that regulate door-to-door sales

While you don’t need a license or permit to distribute flyers door-to-door, if you engage in any form of in-person solicitation or door-to-door selling, you will need to comply with a raft of regulations. Here’s a breakdown of what the law requires:

1. Register your business

There are several business registration requirements for new business owners that you’ll need to adhere to. You'll need to register a business name, obtain a tax identification number, and register for state and local taxes.

2. Obtain a permit

It is illegal to sell anything door-to-door without a permit. For information on how to obtain a business permit, visit the SBA website. Be sure to carry and display your permit alongside your professional ID.

3. Selling perishable produce door-to-door

If you are selling fresh produce, including meat or fish, your state will also require that you obtain a sanitation or health and safety permit. The USDA has more information on selling meat door-to-door.

4. Communicate and adhere to the 3-day sales cancelation rule

The Federal Trade Commission (FTC) "Cooling-Off Rule" gives customer three days to cancel purchases of $25 or more that are made in the home or at a location that is not the permanent place of business or local address of the seller. Visit the FTC website for more information on how to comply with this rule.

5. Employing minors

Many door-to-door businesses employ minors simply because they are readily available during peak summer selling season, are eager to work, and accept lower wages. However, many states regulate the employment of minors in door-to-door sales.

Last, but not least, be honest and open

Door-to-door selling gets a pretty bad rap, so it’s important to be truthful, courteous, avoid emotional appeals and pushiness, and be sure to back up your claims or pricing with brochures, references , warranties, and the like. It’s also a good idea to document your distribution practices, and if you sell fresh or frozen produce, ensure that your products are correctly labeled.