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
Monday, March 8, 2010
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
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
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