Sunday, May 2, 2010

Customers or Consultants - Which is Best?

Quick...which would you rather have, 100 customers or 100 consultants on your team?

Hands down, this is a no-contest for me. I'll take the 100 customers any day.

Why? Well, back to my most common theme. SALES is the life and lifeblood of the party plan. If people aren't buying product, nobody is making any money. If I have 100 customers buying product on any kind of regular basis, I have guaranteed commissionable income that I am responsible for generating. I do the work, I earn the dollars.

Plus, where is my number one, without a doubt or moment's hesitation BEST POOL of potential consultants?

That's right...from my customer base.

Not to beat the numbers horse to death, but there are some pretty general statistics that can be estimated here. In direct sales, roughly three customers in ten is a candidate to become a consultant. Lots of variables here: it needs to be the right time in their life and fill some need for them. Still, if I have 100 active customers, chances are there are twenty to thirty potential recruits just waiting to be asked among them.

And a customer with a story to tell is the best consultant you will ever have.

So, think again. Want to build a huge team by focusing on recruiting? Or, build a successful business with satisfied customers and find enthusiastic and motivated consultants from that group?

SALES...the Life of the Party Plan.

Good Selling!

Kimberly

Follow me on twitter @kimberlybates
Sign up to receive a free sixteen week ecourse of selling skills tailored to party plan consultants
http://www.beabetterseller.net

Thursday, April 22, 2010

What If Friends and Family Don't Support You?

Hi Everyone.

I've been stewing on this topic for a while. I have spoken to so many direct sellers over the years who have suffered with this, and frankly, I've had to deal with it too.

Whether it's the friend who insists that they HATE home parties, or the in-law who asks why you are out doing one of those parties instead of staying home with your kids, the reality is that some people are just plain opposed to you doing any type of "selling." Others are concerned that you will be (or frankly are) pushy and insensitive about your product. It's another topic, but remember, no matter how much YOU love it, it isn't for everyone.

So, I have come up with a tactic to help you cope and perservere if your friends/family don't support your business.

Borrow a technique from fiction writing...SHOW don't TELL.

For example, a fiction writer can create a sentence, "Blake punched David for insulting Karen."

Or, the writer can create something like this, "Blake's anger raced down his arm and into his balled fist. Before he even realized he was reacting, he felt the crack of his punch connect with David's jaw. 'Don't you ever insult Karen again,' he hissed."

I'm exaggerating here, but the point is that the first sentence TELLS you what happened. SHOWING you is better, even if my fiction writing is not!

The same applies to those who don't support your business. Stop TELLING them about it.

Just let them SEE your success.

Invite them to go shopping with you to buy some new outfits for the cruise you just won.

Take them to lunch, on YOU, with your profits.

Be happy, don't say why.

Get a new car...don't tell them you earned it until they ask.

Decorate your house with all your free product.

You get the idea. Whatever you do, do NOT talk about your business with these people. It only reinforces their resistance.

SHOW, don't tell.

SALES...the Life of the Party Plan.

Good Selling!

Kimberly

Monday, March 8, 2010

Getting to "Leadership": Should It Be Harder or Easier?

I'm feeling philosophical today, so this is more of a rumination post than one with concrete tips and advice. I promise to get back to that next go round!

I have this dear friend, and this week she "lost" her manager's title with her direct sales company. Now, this particular company has pretty demanding manager requirements, and she had maintained them easily for two years. But, life got in the way, and although her personal sales met the quarterly requirements, her team sales did not.

And POOF! Her team is gone, rolled up to her sponsor.

Ouch.

Her company's rationale for having such tough management requirements is that if you have to work hard to GET there, you'll work hard to STAY there. Likewise, it keeps those who aren't serious about the business from moving into management. Okay...I'll buy that.

On the other hand, some companies promote you into the first level of management if you and your team meet the requirements just one month. BANG...congratulations, you're a manager! The argument for this is that by making it "easy" to get to the first level of management, a consultant gets to "see" the benefit very quickly. This inspires that person to keep working and keep recruiting in order to keep the benefit. Okay...I'll buy that too.

Both ways make a certain amount of sense.

In my experience, the latter of the two is more common - the "easy" first promotion with one or two month sales requirements in the $2000 to $5000 total team sales range. The sales requirement for the person promoting may be as low as $100. The downside of this method is that a team may get off to a fast start then fizzle. The person promoted to management really doesn't know a lot about what they are doing, and may seesaw back and forth between management and consultant. This can make it very challenging for the upline, both financially and team/support wise.

On the high range,my friend's company, who pays NOTHING in downline commissions until one becomes a manager. The manager must sell an astonishing $2500 per month (averaged every three months) and the total team sales must average $7000 per month.

WOW.

The downside of this approach is that people are essentially penalized for sponsoring until the team is big enough to promote. Then, brutal monthly sales numbers to maintain can create stress in a "job" someone probably started for a little extra money, and a lot of extra fun.

I don't have an answer, I just hate to see good people lose their teams after a bad quarter. And it happens every day, in every company.

One - know your comp plan and make sure you understand how, when, and the rules for moving into "management."

Two - don't let it stop being fun and start being work.

Three - always go back to the reason you got into this to begin with. Got champagne wishes and caviar dreams? Then you best get off your tush and work it. Just want to earn a free trip? Okay, what do you have to do to get that? Just an extra $200 a month? Just out of the house a couple nights a week?

Whatever YOUR goal is/was, go after that. Don't let people who have other goals and dreams push you into modifying yours.

Unless you want to.

And remember. NO ONE makes any money unless product changes hands.

SALES...the Life of the Party Plan

Good Selling!

Kimberly Bates

Follow me on twitter @kimberlybates

Get a free ecourse on selling skills for party plan http://www.sellmoretonight.com

Wednesday, March 3, 2010

Five Tips to Re-Opening (or Restarting) Your Direct Sales Business

So...you had a direct sales business, but you let it founder for whatever reasons.

Okay, no problem. One of the best things about this kind of business is that you can just sort of "re-open" when you want. Yes, there are certainly some caveats regarding customer service. But, here are five tips to help get you rolling again.

One - Throw a Party

Yeah, you heard right. Have a party - that's the business you are in, right? But here's the kicker. Make it kind of exclusive (or even VERY exclusive). You could have one JUST for previous hostesses, for example. Or previous customers. Or your neighborhood. A group or organization where you are member. A "just for XXX" party.

Make it worth their while to attend. The fastest and easiest way to do this is to have it be one of the old-fashioned "mystery hostess" parties. But, stretch your hostess benefits as far as possible so you can do multiple drawings. I.E. One drawing for free product value, one for each half-price item, one for any hostess special item, etc. Get as many drawings as you can out of it. Give away entrances into the drawings for making a purchase, attending, being on time, booking a party to help you restart, etc.

Then, make it CRAZY fun. A great way to do this is to drag all your out-dated, out of stock, discontinued, no longer for sale samples out from the garage. Wrap each individually, and do a Dirty Santa type game with them, as part of the party. You know the game I mean - everyone gets a number and then in order draws from the table or swipes from a previous person. Definitely put time and number of swipe limits on things, or you'll be there all night! (You can do this also if you are "restarting" into a new business - get rid of old samples and product you can't use anymore by recycling them into the giveaways.)

Two - Make Use of Old Catalogs

Print out labels that say "This catalog is out of date, please contact me for a new one at XXXX" and smack them front and center cover. Then leave them EVERYWHERE. Where is everywhere? Well, start with the places listed here http://budurl.com/70Places

Three - Get on the Phone

I know, that phone is sometimes the most evil creation on the planet. But, it does matter to people to have a personal touch, and it is cheaper than sending all your previous customers a postcard. You are even allowed to call during the day when they are at work and leave a message. Make it a customer service call. "Hi XXX, this is Kimberly, your XXX rep. I wanted to take a moment to follow up on your purchase of XXX from me a XXX's party last year and make sure you are satisfied. I also wanted to see if I can answer any questions for you about how to use the product. Thank you again for being my customer. I can be reached at XXXXXXX." The point is to RE-ESTABLISH contact with your customers. NOT to get them to buy something right away.

Four - Write an Article

Consider writing an article that is on a topic related to your product and submitting it to local magazines, and free newspapers. Make sure your contact information and credentials are part of the byline. An example would be "5 Easy Steps to Digitizing Your Old Family Photographs" or "How to Make a Tabletop Topiary in Five Minutes." You might be surprised how many local publications are looking for well-written articles. This is especially true of free publications. Just make sure it is relevant to their audience and that you are giving away genuinely valueable information.

Five - Tell People and Ask for Help

One thing I've learned over the years; friends want to help. They need to be asked, and they need to know they aren't being used. But I have seen so many times where just reaching out to friends and asking for help can make an incredible difference.

Oh yes, and be sure to have FUN. It's a vital part of true success in direct sales.

SALES...the Life of the Party Plan

Best,

Kimberly

Follow me on twitter @kimberlybates
Sign Up for an ecourse on Selling Skills for Party Plan Sales at http://www.sellmoretonight.com

Saturday, February 27, 2010

Money Money Money

(Okay, so I sure didn't mean to go, uh...FIVE MONTHS...between blog posts.

Life happens. Crud happens. Stress, kids, new job, another new job, spouse business/work struggles, kid behavior struggles...the list goes on for MANY of us. If your direct sales business has faltered, you are not alone.

Me...I'm finally back on the ground after a whirlwind of taking a new job, that I genuinely like, then going back to my previous employer but in the new position for which I had obtained certification last year. Confused yet? This also meant moving my part time housing,car, etc between two cities. I work in aviation, so I travel to my work city, work there for four days, then go home for three days.

That's where I've been since October. I apologize for dropping off the face of the earth. I've still got thoughts on direct selling, so back on topic from here on.)



So, the subject is money.

For most of us, getting into direct sales to begin with had something to do with money.

It might have been to earn some extra money to help family expenses, or maybe it was that free trip you could earn. Free or discounted products. For some, it was a big picture opportunity to be your own boss and get control of your free time while doing something you loved.

What quickly happens is the other side of the money equation when you get into direct sales...how much should you SPEND to grow your business?

And trust me, if you haven't already figured it out, there are LOTS of things to spend money on. Here's my top-of-the-head list just to start:

Business Cards (free with shipping at vistaprint.com FYI)
Catalogs, Order Forms, Reminder Cards
Inventory (some companies do, some don't)
Samples
Mileage
Self-Improvement/Training Seminars
Meetings and conventions
Promotional (Can get huge very fast and be unproductive...watch this one)

Back to the question. How much do you spend and when?

At first, my recommendation is the absolute minimum you can to get started. If the company offers different kits, take the cheapest. Why? Because it gives you the right to start selling. Once you are selling, you can begin putting a fixed percentage of your earnings back into the business however you choose. I generally recommend 25% of Profit into your personal "Grow My Business" account.

Now, "profit" means how much you make AFTER you deduct your expenses. Not your commission on your sales from the show.

Simple example. You do a $500 show on which you earn $125 in commissions.

Subtract from the $125 the costs of any of the following that apply:

Catalogs given away
Mileage to and from
Hostess Gift
Guest/Doorprize
TAX OBLIGATIONS (IF you owe taxes, don't forget you will pay all 15.5% for SS, Medicare/FICA, PLUS income tax)
Babysitter
Food you provide
Fees owed to company to process order

Now, you have a profit number. Take that amount, multiple it by .25 and set the result aside into your business account. As that pool grows, put those dollars back into the business.

Use the remaining 75% for the original reason you got into this business.

Should you ever overspend that account? Sure. I'm not completed opposed to "investing" in yourself, your business, etc. I just hate to see you do it without a strict accounting of the benefit so you know if it was worthwhile.

I also hate to see anyone spend themselves into debt trying to make a go of it.

Stay focused. Why did you get into the business?

Make sure you are doing what you started out to achieve!

And please don't forget, nobody makes any money unless product transfers hands.

SALES...the LIFE of the Party Plan

Good Selling and welcome back.

Kimberly

Follow me on twitter @kimberlybates

Sign up to receive a free ecourse on party plan selling skills at
http://sellmoretonight.com

Friday, October 2, 2009

Are You Successful?

I do apologize for not blogging for so long. Like many of us, I recently took a job in order to bring in some guaranteed income. The training for that has been a brutal seven weeks, and I'm beat.

But, it got me to thinking...

Do you have to be a "Superstar" to be successful in direct sales?

Think about it, go to conventions, meetings, training sessions, or for that matter, read a book about direct sales and it's almost always the Superstar who is honored. The person who quit her high five-figure job, after just (enter desired timeframe here), and is now living the good life solely on the income from ABC Direct Sales Company.

I have always LOVED those stories. They ARE motivating, and I know doggone well anyone that successful has worked hard for it.

But, as I, like many, juggle loving a product (actually I love three products from three different companies if you really want to know), I find myself wanting to define success less as we see it up on stage, and more for what it means to me.

For example, one product line I use and love (and yes, I am set up as a distributor) is an affordable luxury. I would be thrilled just to sell enough of it to keep myself in product. Support my own habit, if you will.

I went to a party recently (and no, I don't sell this product!) and the consultant was a gas! She was hilarious and genuine, and she told us point blank she sells the product to win a free trip every year. And I thought, "You know, that's not a bad point. Isn't someone who has won a trip successful? And, isn't it great that she defines her success her way, by going on an indulgent, all expenses paid trip every year on her company."

And now, as I am working full time again, I am refining my success definitions.

One, I will consider myself successful first if I can sell enough product to support my habit.

Two, I will consider myself nicely successful if I can make my car payment on top of that.

Three, I will consider myself deliriously successful if I ever win another incentive trip. (I've been on several over the years, and I have to tell you, they usually are amazing!)

The question is, what constitutes "successful" for you?

SALES...the Life of the Party Plan

Kimberly Bates

Tuesday, July 14, 2009

Are You a Direct Sales Addict?

Hi. My name is Kimberly and I'm addicted to direct sales.

There. I've said it in public!

What do I mean by "addicted" and how do you know if you've got it too?

Well, I'll start on the consumer side. I am one of those people who LOVED going to home parties, back in the days before my husband's business turned seriously disasterous and we had two incomes and plenty of moula. I was the guest who could be counted on to spend $50 - 75. And, I loved the social aspect of getting together with a bunch of gals and having an adult beverage and gabbing, and oh yeah, SHOPPING. I rarely go to malls or even department stores anymore, so for years when my kids were really young, I did my shopping at home shows.

Only ONE time did I have to work really hard to find something in the catalog that I wanted. Most of the time, the list was longer than the allowance. I love the opportunity to play with products, to learn about them ,etc.

What can I say - dream guest, right?

And yeah, I've bought a few kits in my day!

In general, I am not a "kitnapper." That's someone who buys the kit with no intention of selling, but just to get the items in the kit and/or the discount for a period of time. In fact, only once did I actually buy a kit for that reason and it was with the full endorsement of my sponsor. She suggested it when she saw how much stuff I wanted to buy. I'd been a loyal customer of hers for about ten years at that point, hosted a good show years before, etc.

Two other times...no maybe three, I bought a kit to help out a friend with the express purpose of adding a new recruit to her lineage during a contest or promotion effort. Again, with the understanding that she needed a body for a period of time, and I had no intention of actively selling the products.

Three times I have retailed product aggressively and sponsored or built teams, once up to the half-million in sales, 200+ team size.

Twice I have found products I thought were great, but never got traction retailing the product. In both those cases, I truthfully did not try very hard.

So yeah....I am pretty sure when you tally the list of the number of times I've joined a company, I qualify as an addict! Even though, in all fairness to myself, I NEVER INTENDED to retail most of those products.

Still...the list is long.

Does this matter? Does it affect my credibility as a sales person? Unfortunately, it may. Likewise, you may find if you have done a variety of companies that your friends will say to you, "Oh no, what now!?"

On the flip side, should you continue to sell a product that doesn't inspire you? I would definitely say "no." And, I've met a whole LOT of ladies like myself, who have tried lots of things. Sometimes for the right reasons, sometimes for the wrong ones. Sometimes because we thought a company was a great opportunity, sometimes because the product was cool. Sometimes because we needed a quick $1000 and doing something for a couple months produced that.

The constant that I see in these (mostly) gals is that they have a passionate desire to improve their lives, and the lives of people they touch. It just takes some of us LOTS of frogs to find the "prince" of a product we can both sell consistently, enjoy consistently, and want to do to the exclusion of other things.

So, go on, go shopping at that home show.

Or, go ahead, take the plunge. Found yet ANOTHER product you love and want to try to sell?

Go for it.

(You may have to find some new friends to sell to though!) ;)

I'm looking at my list and thinking, do I do it AGAIN? For the first time, I've found a product that I want every single thing in the catalog - I've never responded to a line like that before. I've tried the product and LOVE what it is doing for me. Joining companies before has mostly been a more practical decision, timing, market, etc.

Decisions, decisions.

Hi. My name is Kimberly, and I'm a direct sales addict.

SALES...the Life of the Party Plan

Kimberly Bates

Follow me on twitter http://twitter.com/kimberlybates
Learn my system for selling without feeling or being a pain the butt, The Gentle Seller System
http://www.beabetterseller.net

P.S. EDIT If you read my last post, it was about the Trump Network. Just FYI, I don't consider that a traditional "party plan" opportunity. My husband is very interested, and we are researching their products. But, Trump is NOT the company I am referring to above, when I say I want everything in the catalog. That is a different company.