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
Monday, February 23, 2009
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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