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
Sunday, May 2, 2010
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
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
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
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
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
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.
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.
Saturday, July 4, 2009
The Trump Card
Okay, I'll say it.
Why are the people who are touting the Trump Network approaching everyone with "have you heard about the Trump Network?" and nary a mention of what is a terrific product line? (So good, I may join.)
Here's the story as I understand it.
Donald Trump said several years ago that if he was starting over, or going into a new business, or some such thing, that he would do network marketing. I THINK it might have been on Oprah in the past ten years. It's probably on youtube...
Anyway, when things started turning south in the economy last year, he decided, "now's the time." So, he went searching for a company to buy. He had some strong criteria. He wanted a company already in business, but one that had not reached explosive growth. He wanted a health and wellness product. He wanted a quality product. He ended up purchasing a company by the name of Ideal Health. They've been around about twelve years - successful, but not hugely, in an admittedly crowded market.
Several months ago, they went into pre-launch. Ever since, I've seen tweets on twitter, mentions on facebook, a few blogs, etc. And every single one of them focuses on one thing.
Donald Trump.
Now, Mr. Trump is a bonafide force of nature. And having his name, credibility, financial backing, and marketing savvy behind a product is absolutely a good thing. But here is my question.
What are these recruiters going to say to people in a year when everyone knows about the Trump Network? What reason will they give for joining then?
More important, as I have previously discussed here on this blog, it is the retail selling of product that pays the bills in any network marketing or direct sales structure. Even IF a commission is paid on start-up kits, long term, it's residual continuous product sales that really drive checks.
Are all these people signing up for the Trump name thinking they only need sign up a bunch of others and sit back and let the money roll in? If the sole message going out to the public is "Sign up because it's Donald Trump," what does that portend for the ultimate success of the company?
My greatest fear here is that people are signing up literally not caring what the product is. If it's Trump, they're in.
Sigh. Well, to each his or her own. Millions will be made either way.
And, on the plus side, having someone like Trump endorsing network marketing could give an industry that has traditionally suffered mis-understanding and negativity a much deserved dose of credibility.
I'm still sayin'...
SALES, the Life of the Party (or any other direct sales) Plan!
Kimberly Bates
The Better Seller Coach
Follow Me on Twitter http://twitter.com/kimberlybates
Get Selling Skills tailored to party plan http://www.beabetterseller.net
Why are the people who are touting the Trump Network approaching everyone with "have you heard about the Trump Network?" and nary a mention of what is a terrific product line? (So good, I may join.)
Here's the story as I understand it.
Donald Trump said several years ago that if he was starting over, or going into a new business, or some such thing, that he would do network marketing. I THINK it might have been on Oprah in the past ten years. It's probably on youtube...
Anyway, when things started turning south in the economy last year, he decided, "now's the time." So, he went searching for a company to buy. He had some strong criteria. He wanted a company already in business, but one that had not reached explosive growth. He wanted a health and wellness product. He wanted a quality product. He ended up purchasing a company by the name of Ideal Health. They've been around about twelve years - successful, but not hugely, in an admittedly crowded market.
Several months ago, they went into pre-launch. Ever since, I've seen tweets on twitter, mentions on facebook, a few blogs, etc. And every single one of them focuses on one thing.
Donald Trump.
Now, Mr. Trump is a bonafide force of nature. And having his name, credibility, financial backing, and marketing savvy behind a product is absolutely a good thing. But here is my question.
What are these recruiters going to say to people in a year when everyone knows about the Trump Network? What reason will they give for joining then?
More important, as I have previously discussed here on this blog, it is the retail selling of product that pays the bills in any network marketing or direct sales structure. Even IF a commission is paid on start-up kits, long term, it's residual continuous product sales that really drive checks.
Are all these people signing up for the Trump name thinking they only need sign up a bunch of others and sit back and let the money roll in? If the sole message going out to the public is "Sign up because it's Donald Trump," what does that portend for the ultimate success of the company?
My greatest fear here is that people are signing up literally not caring what the product is. If it's Trump, they're in.
Sigh. Well, to each his or her own. Millions will be made either way.
And, on the plus side, having someone like Trump endorsing network marketing could give an industry that has traditionally suffered mis-understanding and negativity a much deserved dose of credibility.
I'm still sayin'...
SALES, the Life of the Party (or any other direct sales) Plan!
Kimberly Bates
The Better Seller Coach
Follow Me on Twitter http://twitter.com/kimberlybates
Get Selling Skills tailored to party plan http://www.beabetterseller.net
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 $$ on catalogs are stingier with them. Period. When consultants can get catalogs and brochures basically "free" based on personal sales, they will give them out more freely, leave them places, etc. All furthering the interests of the company.
That's a best practice.
Please share with me your company's best practices. Email me at kdbates@aol.com or follow me on twitter http://twitter.com/kimberlybates and send me a message. As soon as I have eight to ten, I'll share them with everyone. (I've already got a couple, but would like another 5 -7)
SALES...the Life of the Party Plan
Kimberly Bates, the Better Seller Coach
http://www.beabetterseller.net
@kimberlybates on twitter
This week, I would like to ask you for help for something I've wanted to write about for a long time - best practices by direct selling companies. Problem is, I need to hear from you what your company does really well. Something that is a terrific service to the reps, and not disguised or hidden. Let me give you an example.
I know of a company that claims to pay 30% commission. However they only actually pay 25% to the consultant, and put 5% into an account for buying supplies like catalogs. That is not a best practice! It's deceptive and elitest. Pay the reps what you say you pay them and let them decide how to spend it.
On the other hand, I'll commend Southern Living at Home for putting 5% of a consultant's personal sales into an account to buy supplies. Without claiming it to be compensation! (I assume they still do that.) Why is it a best practice?
Because it serves the consultants AND the company.
Consultants who have to spend $$ 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
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
Friday, March 27, 2009
MUST You Love Your Product?
Oooh, friends. THIS is a tough one.
I find myself coming down on both sides of this, but I tell you what - I'd MUCH rather sell a product I love than one I don't. Here's why.
The process of "selling" has evolved. No question about it. As we've previously discussed, "sell" has become one of the four-letter words we don't want to admit doing. We "offer." We find needs and fill them. We look for people who are looking for us. But heaven forbid, these days, it is very out to actually "sell." In fact, it's not unusual for someone to be recruited into our business - called "Direct Sales" by the way - and be told that they don't ever have to "sell."
Avoiding all the negatives of selling, then, the process has moved to one of "permission" marketing, storytelling, etc. I don't really have a problem with this - but it works a whole lot better IF you have a story to tell about your product or IF it has made some difference in your life that you just have to share. In essence, if you LOVE it.
What if you don't have a story about how the product made a difference in your life? What if you don't use the product? What if you respect the product, but it just doesn't zing for you? Can you still sell it?
Yes, yes, and yes again. But don't lie. Use simple selling skills, and look for people for whom this product is the RIGHT answer to their needs. Just because it doesn't solve a need for YOU, doesn't mean it doesn't solve a need for someone else. I started out in this business selling a product for children before I had any. I believed in the product, but had no personal story or personal experience to share.
But, it's easier if you love it. It's easier if you've got a story. It's more fun if it's a passion.
Now, the hard part. What if it wasn't the product, but the opportunity that called to you?
This one has tangled up more than a few of us. Here's the dilemma. You hear about a great, probably start-up, company and you have a chance to get in on the "ground floor." It's not a product that excites you, but you're a smart enough business person to realize there IS a market for it. So far, so good.
But, because what attracted you was the "great opportunity" you MAY have the tendency to sell that, instead of the product. Just be aware. It's not going to be ground floor forever. This is the voice of experience sharing with you here. I'm not saying you should avoid a great opportunity - I just want you to make sure a great, viable product that you are comfortable selling is part of it.
So, do you have to LOVE your product to sell it ethically and effectively? Nope.
Does it help? You BET.
SALES...the Life of the Party Plan
Kimberly Bates, the Better Seller Coach
You can follow me http://twitter.com/thebetterseller
To receive a sequenced twenty-six week Selling Skills course via email, sign up here
http://www.beabetterseller.net
I find myself coming down on both sides of this, but I tell you what - I'd MUCH rather sell a product I love than one I don't. Here's why.
The process of "selling" has evolved. No question about it. As we've previously discussed, "sell" has become one of the four-letter words we don't want to admit doing. We "offer." We find needs and fill them. We look for people who are looking for us. But heaven forbid, these days, it is very out to actually "sell." In fact, it's not unusual for someone to be recruited into our business - called "Direct Sales" by the way - and be told that they don't ever have to "sell."
Avoiding all the negatives of selling, then, the process has moved to one of "permission" marketing, storytelling, etc. I don't really have a problem with this - but it works a whole lot better IF you have a story to tell about your product or IF it has made some difference in your life that you just have to share. In essence, if you LOVE it.
What if you don't have a story about how the product made a difference in your life? What if you don't use the product? What if you respect the product, but it just doesn't zing for you? Can you still sell it?
Yes, yes, and yes again. But don't lie. Use simple selling skills, and look for people for whom this product is the RIGHT answer to their needs. Just because it doesn't solve a need for YOU, doesn't mean it doesn't solve a need for someone else. I started out in this business selling a product for children before I had any. I believed in the product, but had no personal story or personal experience to share.
But, it's easier if you love it. It's easier if you've got a story. It's more fun if it's a passion.
Now, the hard part. What if it wasn't the product, but the opportunity that called to you?
This one has tangled up more than a few of us. Here's the dilemma. You hear about a great, probably start-up, company and you have a chance to get in on the "ground floor." It's not a product that excites you, but you're a smart enough business person to realize there IS a market for it. So far, so good.
But, because what attracted you was the "great opportunity" you MAY have the tendency to sell that, instead of the product. Just be aware. It's not going to be ground floor forever. This is the voice of experience sharing with you here. I'm not saying you should avoid a great opportunity - I just want you to make sure a great, viable product that you are comfortable selling is part of it.
So, do you have to LOVE your product to sell it ethically and effectively? Nope.
Does it help? You BET.
SALES...the Life of the Party Plan
Kimberly Bates, the Better Seller Coach
You can follow me http://twitter.com/thebetterseller
To receive a sequenced twenty-six week Selling Skills course via email, sign up here
http://www.beabetterseller.net
Friday, March 20, 2009
Is Your Market Saturated?
I’d like to tell you a story.
Several years ago I was part of the launch of a direct sales company. About a year and half later I had an opportunity to do a show for a friend of mine who happened to live in the company’s home city. The population of that metro area was 804,340 at the time. Using the 1 to 1000 rule, the area could sustain 804 active consultants. Using the 80/20 rule, we’d need five times that or just over 4000 signed up consultants to be saturated. (I'll talk about these "rules" below.)
Now, being as the company was based there, many of the first consultants and superstars lived there. In fact, at the time I did the show there were at LEAST five senior leaders – the top level of management with teams generating in the hundreds of thousands in sales per MONTH. Now, of course, the teams were spread all over the country, but a whole lot of them were in this city. Although no one person I knew had access to the company’s ledger, my senior leader estimated (based on conversations about team size with her counterparts, joint meetings, etc.) that there were about 4000 consultants SIGNED UP in this city at that time, eighteen months after launch. Using the 80/20 rule, there were probably 800 active, selling consultants.
So, I pretty much figured doing this show that the audience would have seen it all and heard it all about the company and products. To shorten it up, I did the show, booked two shows, and then one more from one of those. I did four shows there in three weeks, with approximately forty-four total customer guests.
I’d like you to take a guess at the following: How many of the forty-four had already been to one of our shows?
Are you ready for this?
One.
That’s right. Eighteen months after launch, in the headquarters city, with approximately 800 active consultants, ONE guest of forty-four had been to show. Even more interesting, at least HALF had never heard of the company before they were invited.
HALF!
This experience cured me of believing in saturation. But, let me put some "rules" and numbers around it so you can see where the expectations come from.
One reason is simple math. Different examples exist by various organizations, but common wisdom is that an area is saturated when there is one consultant for every 1000 people. Using Year 2000 census data, let’s pick a city. How about the metro Atlanta area? Using only four counties – Fulton, Gwinnett, DeKalb, and Cobb, the population was 2,678,150. So, theoretically that area would be saturated if there were 2,678 consultants for any given company in metro Atlanta.
But wait, don’t forget another common wisdom, the 80/20 rule. That is 80% of the work is accomplished by 20% of the people. So, should you consider the total number of consultants in an area, or 20% of that number? Using that rule, it would take over 13,000 signed up with 20% active to "saturate" these four counties.
Let’s throw another common statistic. Among every three consultants who sign up, one will do nothing, one will sell for a while and eventually drop out, and one will sell something consistently. Then, of the three who sell consistently, one of those will sell only, the second will sell and sponsor and move into lower management levels, and one will sell well, sponsor and move into upper management. For the third, one in three is a superstar. If you’ve stayed with the math, one in nine works the whole business, and one in ninety-nine is a superstar.
Here’s another example, and I’m not picking on Mary Kay. I have PROFOUND respect for that company and what they have accomplished on behalf of all of us who do direct sales. But, there’s a perception that MK is saturated in the U.S. I beg to disagree. Let’s go back to the stats. Population – about 300 million. Divided by 1000 that’s 300,000. And yes, there are more than 300,000 MK reps in the U.S. But, how about the 80/20 rule? Last figures I could obtain for U.S. Mary Kay consultant numbers was around half a million – so 20% of that is 100,000 doing 80% of the sales.
Waaay under the 300,000 the population could sustain.
And no company has anywhere NEAR MK’s numbers. Not even close. I always ask people – is there a Mary Kay rep on your street? Do you know her name? You’d be amazed how few people actually know anyone who actively sells.
Do certain areas have a higher percentage of consultants to population for any company? Absolutely. Does that mean a passionate and determined sales person is destined to fail there? Absolutely NOT. There’s no substitute for effort. None.
Bottom line. Saturation is a myth. Don’t let the perception of saturation keep you from working. A determined sales person who is actively seeking customers will find them anywhere, regardless of how much presence the company has.
Do you love your product? Then just keep looking for people who need it. They’re out there. Just keep asking – and prepare to find customers!
SALES…the Life of the Party Plan.
Kimberly Bates, the Better Seller Coach
Twitter @thebetterseller
http://www.beabetterseller.net
Several years ago I was part of the launch of a direct sales company. About a year and half later I had an opportunity to do a show for a friend of mine who happened to live in the company’s home city. The population of that metro area was 804,340 at the time. Using the 1 to 1000 rule, the area could sustain 804 active consultants. Using the 80/20 rule, we’d need five times that or just over 4000 signed up consultants to be saturated. (I'll talk about these "rules" below.)
Now, being as the company was based there, many of the first consultants and superstars lived there. In fact, at the time I did the show there were at LEAST five senior leaders – the top level of management with teams generating in the hundreds of thousands in sales per MONTH. Now, of course, the teams were spread all over the country, but a whole lot of them were in this city. Although no one person I knew had access to the company’s ledger, my senior leader estimated (based on conversations about team size with her counterparts, joint meetings, etc.) that there were about 4000 consultants SIGNED UP in this city at that time, eighteen months after launch. Using the 80/20 rule, there were probably 800 active, selling consultants.
So, I pretty much figured doing this show that the audience would have seen it all and heard it all about the company and products. To shorten it up, I did the show, booked two shows, and then one more from one of those. I did four shows there in three weeks, with approximately forty-four total customer guests.
I’d like you to take a guess at the following: How many of the forty-four had already been to one of our shows?
Are you ready for this?
One.
That’s right. Eighteen months after launch, in the headquarters city, with approximately 800 active consultants, ONE guest of forty-four had been to show. Even more interesting, at least HALF had never heard of the company before they were invited.
HALF!
This experience cured me of believing in saturation. But, let me put some "rules" and numbers around it so you can see where the expectations come from.
One reason is simple math. Different examples exist by various organizations, but common wisdom is that an area is saturated when there is one consultant for every 1000 people. Using Year 2000 census data, let’s pick a city. How about the metro Atlanta area? Using only four counties – Fulton, Gwinnett, DeKalb, and Cobb, the population was 2,678,150. So, theoretically that area would be saturated if there were 2,678 consultants for any given company in metro Atlanta.
But wait, don’t forget another common wisdom, the 80/20 rule. That is 80% of the work is accomplished by 20% of the people. So, should you consider the total number of consultants in an area, or 20% of that number? Using that rule, it would take over 13,000 signed up with 20% active to "saturate" these four counties.
Let’s throw another common statistic. Among every three consultants who sign up, one will do nothing, one will sell for a while and eventually drop out, and one will sell something consistently. Then, of the three who sell consistently, one of those will sell only, the second will sell and sponsor and move into lower management levels, and one will sell well, sponsor and move into upper management. For the third, one in three is a superstar. If you’ve stayed with the math, one in nine works the whole business, and one in ninety-nine is a superstar.
Here’s another example, and I’m not picking on Mary Kay. I have PROFOUND respect for that company and what they have accomplished on behalf of all of us who do direct sales. But, there’s a perception that MK is saturated in the U.S. I beg to disagree. Let’s go back to the stats. Population – about 300 million. Divided by 1000 that’s 300,000. And yes, there are more than 300,000 MK reps in the U.S. But, how about the 80/20 rule? Last figures I could obtain for U.S. Mary Kay consultant numbers was around half a million – so 20% of that is 100,000 doing 80% of the sales.
Waaay under the 300,000 the population could sustain.
And no company has anywhere NEAR MK’s numbers. Not even close. I always ask people – is there a Mary Kay rep on your street? Do you know her name? You’d be amazed how few people actually know anyone who actively sells.
Do certain areas have a higher percentage of consultants to population for any company? Absolutely. Does that mean a passionate and determined sales person is destined to fail there? Absolutely NOT. There’s no substitute for effort. None.
Bottom line. Saturation is a myth. Don’t let the perception of saturation keep you from working. A determined sales person who is actively seeking customers will find them anywhere, regardless of how much presence the company has.
Do you love your product? Then just keep looking for people who need it. They’re out there. Just keep asking – and prepare to find customers!
SALES…the Life of the Party Plan.
Kimberly Bates, the Better Seller Coach
Twitter @thebetterseller
http://www.beabetterseller.net
Wednesday, March 4, 2009
Do You HAVE to do Parties?
Yes, you need to do shows.
This is coming from someone who doesn’t necessarily love the process of doing shows. That is, I absolutely loathe hostess coaching. Gotta do it, but I’m one of those sellers who wants to tell my hostess exactly what to do, have her do it without question, and then I show up at her door at the assigned time to a room full of excited prospects.
Not happening. But, that’s the topic of another blog. Today, we’re going to talk about why you need to do shows, even if you ALSO take the water to horse by "door to door" work, or other selling efforts.
It’s simple math – shows will almost invariably pay you more per HOUR for the simple reason that you walk into a room of pre-qualified prospects because they accepted the invitation to come to the show. That doesn’t mean they’ll buy, but it does mean you get a chance to see if your product fits their needs. It’s the audience that matters. A bigger group that someone else assembled is GOOD for your business.
Let’s do some math. It won’t be bad, I promise!
Suppose you call around to individual customers, or go visiting offices, or whatever, and collect enough orders to put in a show. For our example, lets say you spend two hours a day for five days one week and you get $500 in orders. I’ll pick a 25% commission rate since that’s common. So, you earn $125 in straight commission. You could also quantify soft costs of mileage, and soft gains of getting hostess benefits if you are allowed. But, to keep it simple, we’re going to use the $125 commission for $500 in sales for 10 hours of work.
That’s $12.50 per hour.
Now, you have a show for that Friday night. Spend half an hour prepping, half driving, two hours at show, half driving home,. That’s 3.5 hours. And you sell $500. So you earn the same $125 for 3.5 hours work or $41.67 per hour.
It’s almost a no brainer, all other things being equal. That is, you may get show leads from both efforts, meet consultants from both efforts, etc. You know from my previous post I’m a believer in working your business outside shows unless you have more than enough leads to suit you.
But, I want to make sure you get the biggest benefit of the show…SOMEONE ELSE does the initial prospecting for you. And prospecting is time consuming, no doubt about it. So, suck it up and do those shows, even if they aren’t your favorite part of the business!
SALES…the Life of the Party Plan
Kimberly Bates, the Better Seller Coach
http://beabetterseller.net/
On twitter, you can follow me @thebetterseller
This is coming from someone who doesn’t necessarily love the process of doing shows. That is, I absolutely loathe hostess coaching. Gotta do it, but I’m one of those sellers who wants to tell my hostess exactly what to do, have her do it without question, and then I show up at her door at the assigned time to a room full of excited prospects.
Not happening. But, that’s the topic of another blog. Today, we’re going to talk about why you need to do shows, even if you ALSO take the water to horse by "door to door" work, or other selling efforts.
It’s simple math – shows will almost invariably pay you more per HOUR for the simple reason that you walk into a room of pre-qualified prospects because they accepted the invitation to come to the show. That doesn’t mean they’ll buy, but it does mean you get a chance to see if your product fits their needs. It’s the audience that matters. A bigger group that someone else assembled is GOOD for your business.
Let’s do some math. It won’t be bad, I promise!
Suppose you call around to individual customers, or go visiting offices, or whatever, and collect enough orders to put in a show. For our example, lets say you spend two hours a day for five days one week and you get $500 in orders. I’ll pick a 25% commission rate since that’s common. So, you earn $125 in straight commission. You could also quantify soft costs of mileage, and soft gains of getting hostess benefits if you are allowed. But, to keep it simple, we’re going to use the $125 commission for $500 in sales for 10 hours of work.
That’s $12.50 per hour.
Now, you have a show for that Friday night. Spend half an hour prepping, half driving, two hours at show, half driving home,. That’s 3.5 hours. And you sell $500. So you earn the same $125 for 3.5 hours work or $41.67 per hour.
It’s almost a no brainer, all other things being equal. That is, you may get show leads from both efforts, meet consultants from both efforts, etc. You know from my previous post I’m a believer in working your business outside shows unless you have more than enough leads to suit you.
But, I want to make sure you get the biggest benefit of the show…SOMEONE ELSE does the initial prospecting for you. And prospecting is time consuming, no doubt about it. So, suck it up and do those shows, even if they aren’t your favorite part of the business!
SALES…the Life of the Party Plan
Kimberly Bates, the Better Seller Coach
http://beabetterseller.net/
On twitter, you can follow me @thebetterseller
Monday, February 23, 2009
Take the Bucket to the Horse
Today, practical advice for direct sales.
Bring the water to the horse.
You know the old saying of course, "You can bring a horse to water, but you can’t make him drink." In other words, you can offer, but the horse may or may not be thirsty.
My question is, how much time did you spend dragging that poor not-so-thirsty horse to the pond? Grab a bucket, fill it up, and carry it around the barn until you find a thirsty horse!
Translation – take your products to places where people who might need them are working, playing, or hanging out. Don’t just wait for hostesses to invite them to shows. Don’t just wait for shows to find hostesses. Truth be told, times aren’t that tough compared to some previous economic setbacks. But lack of consumer confidence is making people who do not need to save or pay down debt choosing to save or pay down debt rather than buy. That doesn’t mean they don’t need products and services, but that they are deferring unnecessarily.
Take it to THEM. Take your products out there and find people who need what you have to offer.
Understand your local economy. If you go to the Bureau of Labor Statistics at http://www.bls.gov/LAU you can find the most current employment stats for your state, county, and some cities. What ever the Unemployment number is, subtract it from 100. That’s how many people ARE employed. Start there.
Next, go to this site and examine your area by zip codes. You won’t be able to get detailed descriptions without paying, but the segment titles are very descriptive and can give a strong feeling of the demographics of a particular zip code. These are residential demographics. http://www.claritas.com/MyBestSegments/Default.jsp?ID=20&SubID=&pageName=ZIP%2BCode%2BLook-up
Now, put together with your employment information, your knowledge of the zip codes where you want to sell, put on your practical hat, and think about the industries that are doing well, regardless of the economy, or doing well BECAUSE of the economy. Here are some ideas:
Medicine
Bankruptcy Lawyers
Pawn Brokers
Companies that do repossession work
Educators
Divorce Lawyers
Consignment Shops
Financial Planners/Advisors
Many of your potential customers may work in these businesses and simply be too busy to attend a home show, but have need of your product. Consider taking it to them where they work. Would the doctor’s office let you set up in the break room during lunch? Likewise lawyers or schools? Could you do a drawing giveaway at the consignment shop? You may have to WORK this to find a formula that works. Your mileage may vary.
The point is, are you waiting for them to find you?
Or, are you finding them?
SALES…the Life of the Party Plan
Kimberly Bates, the Better Seller Coach
http://www.beabetterseller.net
Bring the water to the horse.
You know the old saying of course, "You can bring a horse to water, but you can’t make him drink." In other words, you can offer, but the horse may or may not be thirsty.
My question is, how much time did you spend dragging that poor not-so-thirsty horse to the pond? Grab a bucket, fill it up, and carry it around the barn until you find a thirsty horse!
Translation – take your products to places where people who might need them are working, playing, or hanging out. Don’t just wait for hostesses to invite them to shows. Don’t just wait for shows to find hostesses. Truth be told, times aren’t that tough compared to some previous economic setbacks. But lack of consumer confidence is making people who do not need to save or pay down debt choosing to save or pay down debt rather than buy. That doesn’t mean they don’t need products and services, but that they are deferring unnecessarily.
Take it to THEM. Take your products out there and find people who need what you have to offer.
Understand your local economy. If you go to the Bureau of Labor Statistics at http://www.bls.gov/LAU you can find the most current employment stats for your state, county, and some cities. What ever the Unemployment number is, subtract it from 100. That’s how many people ARE employed. Start there.
Next, go to this site and examine your area by zip codes. You won’t be able to get detailed descriptions without paying, but the segment titles are very descriptive and can give a strong feeling of the demographics of a particular zip code. These are residential demographics. http://www.claritas.com/MyBestSegments/Default.jsp?ID=20&SubID=&pageName=ZIP%2BCode%2BLook-up
Now, put together with your employment information, your knowledge of the zip codes where you want to sell, put on your practical hat, and think about the industries that are doing well, regardless of the economy, or doing well BECAUSE of the economy. Here are some ideas:
Medicine
Bankruptcy Lawyers
Pawn Brokers
Companies that do repossession work
Educators
Divorce Lawyers
Consignment Shops
Financial Planners/Advisors
Many of your potential customers may work in these businesses and simply be too busy to attend a home show, but have need of your product. Consider taking it to them where they work. Would the doctor’s office let you set up in the break room during lunch? Likewise lawyers or schools? Could you do a drawing giveaway at the consignment shop? You may have to WORK this to find a formula that works. Your mileage may vary.
The point is, are you waiting for them to find you?
Or, are you finding them?
SALES…the Life of the Party Plan
Kimberly Bates, the Better Seller Coach
http://www.beabetterseller.net
Thursday, February 19, 2009
Bottom Line - Sales Drive the Checks
How to make money in direct sales? Personal selling, team building? Wide? Deep? Wholesale? Retail?
Every direct sales company out there has a different compensation plan. Most of these plans are a combination of commission structure on personal sales, a bonus or override structure on team sales, and other components such as milestone or rank bonuses tied to pools of some sort. Some pay on retail, others wholesale. It’s all over the place.
It can be VERY confusing, particularly if you’ve never been in the business before.
Here are some very basic pieces of information for you to make sure you understand about your comp plan, and also a few thoughts on the best way to go.
Organizational Structure
Should you be wide or deep and what the heck does that mean anyway?
As a GENERAL RULE, go WIDE first, worry about deep later.
If your organization is wide, that means you have a wide line of team members BESIDE each other RIGHT UNDER you. You might be a prolific personal sponsor, or these people may have rolled up to you from someone you sponsored who left the company. Although many comp plans count someone who rolled up as being on your frontline, others specifically require you to have personally sponsored consultants on your frontline to satisfy rank requirements. Be sure you know what your plan requires to promote.
Why wide? You likely have a requirement of some sort that a certain number of your FRONT LINE (immediately under you) sell a certain amount of volume on a monthly, or quarterly basis. In addition, the wider you are, the wider the total organization will be underneath you. This usually helps your overall compensation. Which brings us to depth.
On the depth side, also as a general rule, the farther people are from you, the less money you will be paid on their production. This may be because there are low level promotes between you, or because your comp plan only pays so many levels deep. If your company pays four levels, you just don’t get paid on people below that, regardless of their status. (If there is a comp plan out there that building wide first hurts you more than building deep first, rest assured it’s very unusual.)
So, it’s simple math. The more people you have on your frontline, the better the chances you don't have to sweat every single sales period that enough of them will do what you need. I feel very strongly that it is NOT your team member’s responsibility to maintain YOUR rank. So, I hope you never pressure your team for results. Build wide enough, and you won’t have to worry. Build wide and you’re likely to have more people in your pay range too.
Bottom line, know your plan and work it.
Which brings me to the next component you need to grasp. What is your company’s policy on "recapture?"
Recapture
Most companies have a rank promotion structure that requires someone to promote with a combination of team sales volume, and so many frontline consultants who are "active" or participating at a certain level. What happens if you don’t recruit all that much, but you wind up sponsoring a superstar?
In most every comp plan, you’re going to be penalized. That’s just the way it is. Eventually, that person is going to build their personal and team sales and structure enough to promote. If you aren’t ready to promote as well, they are going to go around or "break away" from you. Or worse, you go ahead and promote, then can’t hold the new rank when you can’t count their volume anymore. This is what I mean by "penalized." I understand why it happens – the company doesn’t want consultants who aren’t particularly active and working the business regularly to be able to move up in rank just because they sponsored someone terrific.
The question is, can you "recapture" that person and their organization, when and if you ever manage to promote to the level where they would have stayed under you? Unfortunately, in many companies the answer is "no."
BRAVO to companies that provide recapture! I have long thought that punishing someone permanently for recruiting a superstar was a terrible message to send. If you recruit someone great and they pass you, you ought to benefit from being the one who "brung ‘em" to the dance if you work your way up to their level.
Either way, know your plan and work it.
But, please remember one thing that applies regardless of width, depth, or recapture:
Sales drive the checks.
The team will do what you do. If you sell, they’ll sell. If you sell and recruit, they’ll sell and recruit. If you just sell to minimums and recruit, you can expect a large portion of your team to do the same. If you want to earn more, sell more. When the team follows, your checks will too.
Bottom line, you are PAID on your team SALES, not your team SIZE.
SALES…the Life of the Party Plan.
Kimberly Bates, the Better Seller Coach
To receive a weekly direct sales tip and other ideas: http://www.beabetterseller.net
Every direct sales company out there has a different compensation plan. Most of these plans are a combination of commission structure on personal sales, a bonus or override structure on team sales, and other components such as milestone or rank bonuses tied to pools of some sort. Some pay on retail, others wholesale. It’s all over the place.
It can be VERY confusing, particularly if you’ve never been in the business before.
Here are some very basic pieces of information for you to make sure you understand about your comp plan, and also a few thoughts on the best way to go.
Organizational Structure
Should you be wide or deep and what the heck does that mean anyway?
As a GENERAL RULE, go WIDE first, worry about deep later.
If your organization is wide, that means you have a wide line of team members BESIDE each other RIGHT UNDER you. You might be a prolific personal sponsor, or these people may have rolled up to you from someone you sponsored who left the company. Although many comp plans count someone who rolled up as being on your frontline, others specifically require you to have personally sponsored consultants on your frontline to satisfy rank requirements. Be sure you know what your plan requires to promote.
Why wide? You likely have a requirement of some sort that a certain number of your FRONT LINE (immediately under you) sell a certain amount of volume on a monthly, or quarterly basis. In addition, the wider you are, the wider the total organization will be underneath you. This usually helps your overall compensation. Which brings us to depth.
On the depth side, also as a general rule, the farther people are from you, the less money you will be paid on their production. This may be because there are low level promotes between you, or because your comp plan only pays so many levels deep. If your company pays four levels, you just don’t get paid on people below that, regardless of their status. (If there is a comp plan out there that building wide first hurts you more than building deep first, rest assured it’s very unusual.)
So, it’s simple math. The more people you have on your frontline, the better the chances you don't have to sweat every single sales period that enough of them will do what you need. I feel very strongly that it is NOT your team member’s responsibility to maintain YOUR rank. So, I hope you never pressure your team for results. Build wide enough, and you won’t have to worry. Build wide and you’re likely to have more people in your pay range too.
Bottom line, know your plan and work it.
Which brings me to the next component you need to grasp. What is your company’s policy on "recapture?"
Recapture
Most companies have a rank promotion structure that requires someone to promote with a combination of team sales volume, and so many frontline consultants who are "active" or participating at a certain level. What happens if you don’t recruit all that much, but you wind up sponsoring a superstar?
In most every comp plan, you’re going to be penalized. That’s just the way it is. Eventually, that person is going to build their personal and team sales and structure enough to promote. If you aren’t ready to promote as well, they are going to go around or "break away" from you. Or worse, you go ahead and promote, then can’t hold the new rank when you can’t count their volume anymore. This is what I mean by "penalized." I understand why it happens – the company doesn’t want consultants who aren’t particularly active and working the business regularly to be able to move up in rank just because they sponsored someone terrific.
The question is, can you "recapture" that person and their organization, when and if you ever manage to promote to the level where they would have stayed under you? Unfortunately, in many companies the answer is "no."
BRAVO to companies that provide recapture! I have long thought that punishing someone permanently for recruiting a superstar was a terrible message to send. If you recruit someone great and they pass you, you ought to benefit from being the one who "brung ‘em" to the dance if you work your way up to their level.
Either way, know your plan and work it.
But, please remember one thing that applies regardless of width, depth, or recapture:
Sales drive the checks.
The team will do what you do. If you sell, they’ll sell. If you sell and recruit, they’ll sell and recruit. If you just sell to minimums and recruit, you can expect a large portion of your team to do the same. If you want to earn more, sell more. When the team follows, your checks will too.
Bottom line, you are PAID on your team SALES, not your team SIZE.
SALES…the Life of the Party Plan.
Kimberly Bates, the Better Seller Coach
To receive a weekly direct sales tip and other ideas: http://www.beabetterseller.net
Thursday, February 12, 2009
So, What is "selling" anyway?
Who’d think one little word could get people so worked up? And, what is "selling" anyway? Well, according to http://www.dictionary.com/, if we look up the word "selling" and scroll down to the verb definitions…Yep. There it is, not once but twice, definitions 4 and 5…"to persuade or INDUCE someone to buy something."
Ouch. No wonder people who get into sales like to say they aren’t in sales…
I’m going to be the first to tell you, after having two children via induction, it’s not a great thing to experience. Okay, different inducement. But the point is, inducing or even persuading…not such a great way to go about things anymore. Truthfully, it hasn’t been for years. But there are lots of "salespeople" out there who, IF formally trained at all, haven’t been trained any other way than the "persuade, induce, manipulate" school of selling. And they’ve given an honorable profession a terrible reputation.
So, then, what is "Better Selling?" Well, if I have it my way, better selling is finding a need and filling THAT need. It is NOT aggressive, pushy, manipulative, OR inductive.
It’s paid PROBLEM SOLVING.
And it IS "selling."
It’s all about listening. When I teach, the very first thing I teach a new consultant to do is to be quiet and listen. The second skill is to learn to ask questions. Then listen some more. Why? It’s all about finding out IF this prospect, customer, or guest has a need for the product. Does the product solve a problem? If not, LET THEM GO! Teaching salespeople to qualify effectively is an absolute essential of Better Selling. If I can’t fix a problem in your life, I have nothing to sell to you…right now.
So, for many salespeople and new direct sales consultants, the challenge lies in getting started. In filling their well with potential customers, hostesses, and maybe fellow consultants. I believe the best place to begin to find people with needs is to look for people who have the same need the product filled for you. This technique is explained in great detail in Kim Klaver’s book "If My Product’s So Great, How Come I Can’t Sell It?" http://budurl.com/findingprospects I definitely recommend the read. Twitter @kimklaver
And that, my friends, is what I mean when I talk about Better Selling. Find a need and fill it. Expose a problem and solve it. Listen and Help. But, it is SELLING. Okay, call it what you want. I just can’t see the national convention of any company giving an award to the Queen of Offering.
...I’m just saying.
SALES…The Life of the Party Plan
Kimberly Bates, the Better Seller Coach
http://www.beabetterseller.net/ Twitter @thebetterseller
Ouch. No wonder people who get into sales like to say they aren’t in sales…
I’m going to be the first to tell you, after having two children via induction, it’s not a great thing to experience. Okay, different inducement. But the point is, inducing or even persuading…not such a great way to go about things anymore. Truthfully, it hasn’t been for years. But there are lots of "salespeople" out there who, IF formally trained at all, haven’t been trained any other way than the "persuade, induce, manipulate" school of selling. And they’ve given an honorable profession a terrible reputation.
So, then, what is "Better Selling?" Well, if I have it my way, better selling is finding a need and filling THAT need. It is NOT aggressive, pushy, manipulative, OR inductive.
It’s paid PROBLEM SOLVING.
And it IS "selling."
It’s all about listening. When I teach, the very first thing I teach a new consultant to do is to be quiet and listen. The second skill is to learn to ask questions. Then listen some more. Why? It’s all about finding out IF this prospect, customer, or guest has a need for the product. Does the product solve a problem? If not, LET THEM GO! Teaching salespeople to qualify effectively is an absolute essential of Better Selling. If I can’t fix a problem in your life, I have nothing to sell to you…right now.
So, for many salespeople and new direct sales consultants, the challenge lies in getting started. In filling their well with potential customers, hostesses, and maybe fellow consultants. I believe the best place to begin to find people with needs is to look for people who have the same need the product filled for you. This technique is explained in great detail in Kim Klaver’s book "If My Product’s So Great, How Come I Can’t Sell It?" http://budurl.com/findingprospects I definitely recommend the read. Twitter @kimklaver
And that, my friends, is what I mean when I talk about Better Selling. Find a need and fill it. Expose a problem and solve it. Listen and Help. But, it is SELLING. Okay, call it what you want. I just can’t see the national convention of any company giving an award to the Queen of Offering.
...I’m just saying.
SALES…The Life of the Party Plan
Kimberly Bates, the Better Seller Coach
http://www.beabetterseller.net/ Twitter @thebetterseller
Sunday, February 8, 2009
Are You Buying It?
That is, are you buying all the drama about the state of the economy? The dire predictions? The fear and anxiety?
I know it’s hard, but try not to. Let’s talk a little about what is going on, and where direct sales fits into things.
There’s a lot of folklore out there about what does and what does NOT sell during a recession.
Some people point to the old Maslow Hierarchy of Needs Model, which states that once all the needs are met on one level, the individual begins to seek to meet needs on the next level. At the bottom of the pyramid? Food, Clothing, Shelter, Medical Care. Next up? Safety and Security. Middle – Social Acceptance. So, if you are selling to Maslow, you might be tempted to drop whatever you are presently selling and run to the Eat It, Live in It, Smoke It, or Wash With It products of the bottom level.
Another common belief is that women in particular can be counted on to buy things that make them look good, even during tough times. (Blurring the lines between safety/security and social acceptance. Remember, during the Great Depression it was much more socially acceptable for a woman to find a man to "take care of her." So, looking good equated with seeking security, yes?) Thus the common belief that you should be selling cosmetics, skin care, or adornments.
Faith Popcorn, in the Popcorn Report of almost two decades ago talked about nesting and simplifying as critical trends even in tough times…Candles? Organizing Systems?
Now, truthfully, all bets are off if we go through a complete worldwide economic collapse. But there are a whole lot of people working to avoid that, and just about as many opinions on how to do it. So, what can WE do right now, as direct sales people?
STAY IN THE GAME.
Despite the common belief that "necessity" or inexpensive vanity products sold consistently during past recessions, there is mounting evidence to contradict that. In fact, it’s looking more and more like what sold during these times, and more importantly what products THRIVED after these tough times, were the ones that stayed in the game throughout. For corporations, that means continued advertising, PR, and product placement.
For you, that means getting out there and staying out there with your products.
Sure, maybe people aren’t as likely to just buy for frivolity or shopping therapy. Doesn’t mean there isn’t a NEED for what you have to offer. YOU just need to make sure you are offering what they NEED.
There is no reason why you can’t market yourself with an eye toward the uneasiness of the buying public. If you sell cooking solutions, you can certainly put together a presentation on Healthy 30-Minute Dinners targeted at stay-at-home-mothers who are having to go back to work. Cosmetics or Skin Care? Same thing – can you create a presentation targeted to "Look Smashing for Your Interview," or "The Five Minute Make-Up Routine for Back to the Office." Adornments? How about "Save Money by Updating, Not Replacing, Your Office Wardrobe."
But, whatever you do….STAY OUT THERE with your products. There are still problems and needs than can only be met by you and your product line.
Sales…The Life of the Party Plan.
Kimberly Bates, the Better Seller Coach
http://www.beabetterseller.net/
I know it’s hard, but try not to. Let’s talk a little about what is going on, and where direct sales fits into things.
There’s a lot of folklore out there about what does and what does NOT sell during a recession.
Some people point to the old Maslow Hierarchy of Needs Model, which states that once all the needs are met on one level, the individual begins to seek to meet needs on the next level. At the bottom of the pyramid? Food, Clothing, Shelter, Medical Care. Next up? Safety and Security. Middle – Social Acceptance. So, if you are selling to Maslow, you might be tempted to drop whatever you are presently selling and run to the Eat It, Live in It, Smoke It, or Wash With It products of the bottom level.
Another common belief is that women in particular can be counted on to buy things that make them look good, even during tough times. (Blurring the lines between safety/security and social acceptance. Remember, during the Great Depression it was much more socially acceptable for a woman to find a man to "take care of her." So, looking good equated with seeking security, yes?) Thus the common belief that you should be selling cosmetics, skin care, or adornments.
Faith Popcorn, in the Popcorn Report of almost two decades ago talked about nesting and simplifying as critical trends even in tough times…Candles? Organizing Systems?
Now, truthfully, all bets are off if we go through a complete worldwide economic collapse. But there are a whole lot of people working to avoid that, and just about as many opinions on how to do it. So, what can WE do right now, as direct sales people?
STAY IN THE GAME.
Despite the common belief that "necessity" or inexpensive vanity products sold consistently during past recessions, there is mounting evidence to contradict that. In fact, it’s looking more and more like what sold during these times, and more importantly what products THRIVED after these tough times, were the ones that stayed in the game throughout. For corporations, that means continued advertising, PR, and product placement.
For you, that means getting out there and staying out there with your products.
Sure, maybe people aren’t as likely to just buy for frivolity or shopping therapy. Doesn’t mean there isn’t a NEED for what you have to offer. YOU just need to make sure you are offering what they NEED.
There is no reason why you can’t market yourself with an eye toward the uneasiness of the buying public. If you sell cooking solutions, you can certainly put together a presentation on Healthy 30-Minute Dinners targeted at stay-at-home-mothers who are having to go back to work. Cosmetics or Skin Care? Same thing – can you create a presentation targeted to "Look Smashing for Your Interview," or "The Five Minute Make-Up Routine for Back to the Office." Adornments? How about "Save Money by Updating, Not Replacing, Your Office Wardrobe."
But, whatever you do….STAY OUT THERE with your products. There are still problems and needs than can only be met by you and your product line.
Sales…The Life of the Party Plan.
Kimberly Bates, the Better Seller Coach
http://www.beabetterseller.net/
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