Thursday, April 23, 2009

Direct Sales Best Practices

Wow...sorry I missed a week posting. We are in rec league baseball insanity here, plus I've been feverishly writing articles on a variety of topics. Didn't realize I was a week behind.

This week, I would like to ask you for help for something I've wanted to write about for a long time - best practices by direct selling companies. Problem is, I need to hear from you what your company does really well. Something that is a terrific service to the reps, and not disguised or hidden. Let me give you an example.

I know of a company that claims to pay 30% commission. However they only actually pay 25% to the consultant, and put 5% into an account for buying supplies like catalogs. That is not a best practice! It's deceptive and elitest. Pay the reps what you say you pay them and let them decide how to spend it.

On the other hand, I'll commend Southern Living at Home for putting 5% of a consultant's personal sales into an account to buy supplies. Without claiming it to be compensation! (I assume they still do that.) Why is it a best practice?

Because it serves the consultants AND the company.

Consultants who have to spend $$ on catalogs are stingier with them. Period. When consultants can get catalogs and brochures basically "free" based on personal sales, they will give them out more freely, leave them places, etc. All furthering the interests of the company.

That's a best practice.

Please share with me your company's best practices. Email me at kdbates@aol.com or follow me on twitter http://twitter.com/kimberlybates and send me a message. As soon as I have eight to ten, I'll share them with everyone. (I've already got a couple, but would like another 5 -7)

SALES...the Life of the Party Plan

Kimberly Bates, the Better Seller Coach
http://www.beabetterseller.net
@kimberlybates on twitter

Friday, April 3, 2009

Is Your Upline a Stalker?

Sheez...I must have a torture wish taking this one on!

I'll tell you what, there's a whole lot of opinions out there about how we should interact with fellow consultants both up and down line. So, take mine for what it's worth.

I am a believer that as a sponsor, you owe your downline a great deal. That does not include, however, dragging them over the finish line. You should train them. You should make certain they know the current specials. You should recognize outstanding sales or recruiting - via team emails, blog, phone calls. And not just to that person. Publicly praise as often as possible. Otherwise, make it clear to them you are available to help them achieve their dreams, but that they have to ask for your help and do the work themselves.

However, I believe your downline owes you...NOTHING. That is, they do not work FOR you. While their contributions matter to your success, they do not share in that to the extent you do. You promote, your "team" does not promote. (Lots of leaders will talk about becoming a "directorship" or part of a new entity of some sort. This is hooey.) The benefits of that still go to the person promoting. They did it because of the overall results, no doubt. But, with rare exceptions, the only benefit to having your upline promote is the gaining of information more quickly from the home office and maybe corporate leads. You are getting the bigger commission checks, not your team.

Please do not be that sponsor who stalks their team for results every month. They do not owe you. It is your responsibility to make your title numbers, not theirs. Period.

What if you have one of those uplines? The kind who calls around at the end of the month to see who's got shows open and what's going in this month, etc? What can you do?

First, let me see if I can give you a little bit of what they struggle with. It doesn't excuse that behavior, but at least you'll understand it. Many companies auto-promote. That is, you do a certain title level one month and BAM! you promote. Or, if they didn't promote, someone underneath them was going to go around them and be lost to them forever. This is really tough for a sponsor who has a small team that sells erratically. Especially if their compensation plan then penalizes them team members or commissions if they don't hold on to the title. The pressure can be intense, and they may well being pressured by THEIR upline.

Also, this might be all they know. If their sponsor is a sales-stalker, and that's all they've been exposed to, they might well think that's just how it's done.

What can you do?

One, break the cycle. Take responsibility for your personal sales production, and training and supporting your team as needed. If you don't have enough consistent sellers, go find some new people.

Two, break up with your sponsor. That is, be pleasant but firm and tell them you won't tolerate them pressuring you for results. You appreciate everything you've learned from that person, and you enjoy them. Right up until they get badgerish. Just make it clear, they push you and you will not respond. Don't do what I did in this situation several years ago and quit your company. I should have handled it better. There were lots of other things going on that no one knows about, but I still should have handled that situation better.

Please know, there are terrific sales leaders and trainers out there with fantastic reputations who have had huge success in this industry that advocate "tough love" with team members.

I just happen to think that's not a good policy. It still comes back to the basic structure. A team member is not an employee. It's a whole lot more like a volunteer army. Their own priorities way outweigh the sponsor's.

As a sponsor, make sure you are offering support to those that want to grow and are making the effort. Praise their success publicly and lavishly. Make training available to them. Let go of the ones who talk big, but do nothing. Constantly bring in new people.

As a downline, do not tolerate being bullied about sales from your upline. Stand your ground. Ignore them, and go run your own business. That's why they call you an Independent Contractor.

SALES....the Life of the Party Plan

Kimberly Bates, the Better Seller Coach
http://www.beabetterseller.net for a Weekly Selling Skill
@kimberlybates on twitter