Is Direct Selling a Good Side Hustle?

Direct selling is a business model that involves parties or individuals buying goods directly from the parent companies and selling them to the customers. A direct selling agent (DSA) is the first point of contact between companies and customers. They act as a mediator between the two parties. 

In a financial institution, a loan DSA is responsible for helping applicants with their loans and bringing in more clients for the loan firms. Reputed lending firms like Andromeda Loans offer quick payouts and combine expert financial advice with cutting-edge technology to provide instant loan approvals with minimal paperwork. 

How do direct selling agents work?

Direct selling agents (DSAs) take care of the tedious documentation work and deliver the goods to their customers. Big organizations and lending institutions partner with DSA agents as they do not have the manpower to dedicate attention to every single client. DSA agents popularize and sell products in the distributor’s name. In exchange for their services, DSA agents earn a percentage of the total money the company makes by selling a particular product. Loan DSA agents receive a percentage of the loan amount.  

Why is direct selling a good side hustle?

• No income cap

For instance, your income as a loan DSA agent depends on the number of loan products you sell and the percentage of commission you receive from each of them. Since there is no limit to the number of products you can sell in a month, there is no limit to the amount of money you can earn as a loan DSA agent. 

• No meritocratic gatekeeping

You do not need any professional college degrees to begin working as a DSA agent. If you have good persuasion skills and can come up with innovative ways to position your manufacturer’s products, you will succeed as a DSA agent. 

• You can be your boss

Another benefit of choosing to work as a DSA agent as a side hustle is the flexibility to set your working hours. You do not have to commute to the physical branch of an institution every day. You can set up virtual meetings and call new prospects from the comfort of your house. However, always remember that if you are meeting a client in person, you must always respect their personal space. 

• Quick payouts

Most reputed lending firms like Andromeda Loans disburse a loan agent’s cut as soon as the loan is sanctioned. After the loan agent helps choose the best loan product suited to their client’s needs, verifies documents, fills up the paperwork, and the loan request is approved, they can receive their percentage cut from the loan amount. 

• No major investment required

You do not have to pay anything from your pocket or invest money to learn anything. Most companies offer on-job training modules that help you understand the products. You have to come up with innovative marketing strategies to pitch them to prospects and convince them to invest in them. 

• Low-risk venture

Since you will not be making a hefty investment in the company or paying any fees to the firm, there is no such monetary risk involved in working as a DSA agent. If you are passionate about finances and sales and have good communication skills, you can begin working as a loan DSA agent right away. 

• Build an excellent social network

What sets apart the loan DSA industry from other side hustles is that you get wide exposure to experienced finance professionals from being a part of a lending institution. Your primary role would be to guide salaried professionals and business owners to choose the best loans to suit their needs and take necessary steps, such as communicating with tax advisors and chartered accountants from your firm, to streamline the application process. Working as a loan DSA gives you an excellent opportunity to build a pool of significant clientele. 

• Develop in-demand skills

When working as a DSA, you have to come up with unique marketing campaigns and position the products in a beneficial light that converts prospects to potential customers. You constantly polish your communication and persuasion skills while working as a DSA agent. This is why your prior experience does not matter. These are core skills that are transferable across industries. 

Skills required to work as a DSA

• Strong persuasion skills

The most important skill that you must have as a DSA agent is to pitch your company’s loan products in a compelling way that convinces prospects to invest in them. You need to develop strong persuasion skills and apply innovative marketing strategies to bring in clients. 

• Knowledge of financial products

To successfully pitch products to prospects, you must possess a detailed knowledge of all the existing, newly launched, and upcoming products in your institution. Most lending firms like Andromeda Loans offer on-job training modules that teach you about their available products. 

• Adopt a people-first attitude

The primary responsibility of a loan DSA agent is to guide individuals through the loan application process and resolve their doubts. Customers are free to call DSA agents any time during office hours to ask questions. You must maintain a calm demeanor and help them. 

• Good Project management 

A DSA partner often has to juggle multiple tasks like following up with clients, maintaining their records, verifying KYC documents, resolving their queries, and communicating with their company. A loan DSA agent also ensures that the loan application and sanction process is completed on time without any hiccups. 

Eligibility criteria to work as a loan DSA

• Must be an Indian citizen: You must be an Indian citizen to work as a DSA agent anywhere in the country. 

• Must be a legal adult: You must be over 18 years old to work as a loan DSA partner. 

• No professional qualifications required: There is no meritocratic gatekeeping in this field. You do not need specific certified college degrees to begin working as a loan DSA agent. 

• Must have high credit scores: You must have an excellent CIBIL score to work as a DSA agent. It is a no-brainer that if your primary role is to assist individuals with their loan applications, you must have an excellent record of paying back your debts. 

• Have a pool of significant clientele: While lending institutions do not mandate it, if you have a previous network of accomplished finance professionals like tax advisors and chartered accountants, you will find it easier to transition into the role of a DSA agent.

Who can work as a loan DSA?

Any individual, salaried or non-salaried, with any prior experience from any field, can begin working as a DSA agent. The best part about this role is that it requires strong negotiation and communication skills, which are in-demand core skills across industries. 

If you do not want an in-person office role, being a DSA agent will offer you that flexibility. It is ideal for working mothers, or for anyone who does not want to spend time commuting to the office every day. You can schedule meetings with the clients at your convenience. If you have had a long career break and want to jump-start your career after a while or want to start something new, apply for the role of a DSA agent. Most lending institutions like Andromeda Loans offer on-job training modules at no added costs to help you learn the tricks of the trade. 

Documents required to work as a loan DSA

• Proof of identity like an Aadhar card, Voter ID, PAN card
• Proof of address like utility bills, passport, and driving license
• Form 16 and income tax return details
• Most recent bank transaction statements
• Completed ‘Become our Partner’ registration form with all your basic details

Signing off

Working as a direct selling agent is the best way to pick up in-demand skills and earn a hefty paycheck on the side. Companies are more laser-focused on increasing their revenue rather than regulating the logistics of how DSA agents operate, allowing them a lot of leniency in deciding their work schedules. If you have doubts about working as a DSA agent full-time, you can initially contribute a few hours in the day to find clients. Once you can secure more clients for your company, you will understand what a hefty paycheck you receive at the end of the month, combing commissions from every loan product you sold.