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Print out labels that say "This catalog is out of date, please contact me for a new one at XXXX" and smack them front and center cover.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
Wednesday, March 3, 2010
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
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