A great friend of mine sent me this article this morning and I wanted to share.  I think a lot of times we get caught up in building our direct sales team we forget about why we actually started our business…..the passion for our products.  Don’t sell yourself short!

article via directselling411.com

I was suprised today when I came across a January post on bloggingstocks.com characterizing Avon’s corporate restructuring plan, which began back in 2005, as necessary because of a flawed business model – reliance on recruiting, and not enough recruits to be had. It’s an interesting, if somewhat naïve, assertion about a company and business model that are more than 100 years old – having survived decades of economic ups and downs and societal shifts.

It’s particularly interesting given Avon’s positive early 2008 forecast – predicting mid-single digit growth in 2008 despite a questionable U.S. economy, according to this Reuters story. It hardly seems like a company in trouble.

Even more interesting are the post’s assertions about the direct selling model in general.

Point #1: Companies “live and die by how many new representatives they can recruit.”
Nope, that statement misses the point entirely. Of course recruiting is a critical part of the direct selling model, but companies rely on those recruits to sell products, not just to sign up. Recruiting alone doesn’t result in income for sales reps or the company. With low start up costs (usually less than $100, and in some cases, far less than that) money is made in direct selling when products move. Products move when sellers sell product.

Point #2: “While MLM companies like to focus the public’s attention on the selling of products, the reality is that it is through the recruitment of new representatives that these companies grow.”
No, the reality is it’s still product sales that matter. If a company has 10 reps that each sell $5000 in products, that’s always going to be better than having 100 reps that sell $100 each. Just adding more representatives doesn’t increase profits – which is why many direct selling companies are focusing on making the “career opportunity” more attractive. By nurturing promising recruits to sell more and, yes, recruit more motivated sellers, sales and profits rise. Any business, direct selling or otherwise, has an interest in cultivating leaders who can be top performers and inspire others to do the same, thereby building the business. Not everyone will rise to the top, but those who do will be the next leaders.

Point #3: “Representative turnover is high, however, in large part due to the fact that the representatives don’t make much money from selling products.”
Turnover in direct selling averages about 56%, comparable to turnover in retail, which is about 53%, not really that notable. Yes, there are plenty of people who try direct selling and decide it’s not for them. There are also lots of people who might try a new brand of cereal and decide it’s not for them either. That doesn’t make the cereal bad, and quite frankly the financial risk for either scenario is about the same. But beyond those who just decide not to continue, you have the equivalent of seasonal workers in direct selling (who may sign up and drop out every year like clockwork) and you have people who achieve their modest goals and then see no need to continue, each of whom contribute to the turnover rate, but none of whom is unhappy with their experience.

Point #4: “My hope is that this outdated method of doing business is something that more and more women are avoiding.”
Sorry to disappoint, but more and more women are choosing direct selling because it offers a flexible alternative to a 9-to-5 job. There’s minimal upfront cost, low risk (especially given the generous buyback DSA members are required to offer) and ultimate flexibility. When fears of recession are rising, people are looking for additional income sources – and direct selling provides a perfect fit. Combine that with relatively low-cost, consumable products that the average consumer doesn’t abandon in slow economic times, and both recruiting and sales are in a position to increase.

Point #5: “With over 99% of distributors losing money in the MLM schemes, it’s no wonder that recruiting representatives may be harder and harder.”
It’s absurd to believe that 15.2 million American direct sellers (and 60 million sellers worldwide) are the mindless followers suggested by this assertion. With $32 billion in sales in 2006, direct selling provides opportunity and success for millions every year. As in any type of business there are people who are not successful. However, there are many more who achieve their goals – both financial and non-financial – and consider their direct selling experience to be a fulfilling one.

Considering all these points reminds me what a solid business model direct selling really is. Companies like Berkshire Hathaway, Hallmark, Reader’s Digest, Jockey, The Body Shop and myriad others operate, or have invested in, direct selling companies – something they wouldn’t be doing if the model were questionable. So, don’t count the Avon lady out quite yet – she’s alive and well.

Written by Amy Robinson
Many know me as SVP and CMO at the Direct Selling Association, but I have two more important roles – a consumer and mother who knows what it’s like to want it all. I have seen so many people find success in direct selling, but I know there are a lot of people who have questions about this method of buying and selling. Through this blog I want to promote a meaningful discussion that will help connect people with answers and connect direct selling companies with the issues they need to address. Read more about this blog in my first blog post.  Follow along by grabbing the RSS Feed.

Barb Girson, International Direct Selling Expert, Trainer and Registered Corporate Coach (TM) invites you to…

a  Free Preview Call filled with Follow UP tips you can use immediately this holiday season.

Get your follow up done early to enjoy your holidays.

To more learn about this Free Preview Teleclass and Register:

http://events.constantcontact.com/register/event?llr=zloggocab&oeidk=a07e5a5d8627743f6dd

This Free Call is Preview of Barb Girson’s Upcoming Unforgettable Follow Up (TM) Day!

Here’s a sample of Barb’s Follow UP Do’s and Don’ts Tips!  Visit MySalesTactics.com for other resources.

Sales MOMS is looking for direct sales professionals to post on the Sales MOMS Network as a Guest Bloggers.

If you are interested in guest blogging send us an email at success@salesmoms.com so we can send you the details of where to send your blog posts.

The rules are:

• You are Allowed two anchor text links within your blog post.
• Must be unique content and will not be reproduced in the future.
• On theme and relevant content for the Sales MOMS website.
• May contain photographs or video.
• In English, with good grammar and the correct spelling.
• We ask that you use your social networking pages to promote your Guest Blog post.
• Provide a link back to the site in your blog roll or on your main index page.
• We will also allow you include a small About the Author paragraph that can contain your email and website address.  This will be posted at the end of your blog post.

That is all that is required to guest blog for Sales MOMS.  This will help to provide good traffic to your site, adds content to the Sales MOMS site and allows us both lto be a little more successful on the internet.

When you start your search for the perfect Direct Selling or Home Party Line business, here are some valuable questions to ask when comparing companies and opportunities:

1) Start up cost should be minimal.Start up cost in direct selling and network marketing companies are usually modest and mainly to cover the cost of the sales kit. What is their start up cost? What comes in the kit?

2) Some companies require a monthly purchase. Is there a monthly minimum purchase requirement and if so, how much is the monthly investment?

3) Most companies submit the local state sales tax, however, there are a few that do not. Will I be required to submit my own state sales tax?

4) Check with each company regarding their return policy. This will be vital to your business. Can I return unwanted or damaged products and if so, what is the return policy?

5) Do you have a "buy-back" policy?Some companies offer to "buy-back" unsold marketable products purchased within the 12 months prior, should you decide to quit the business for 90% of the price you originally paid. Do they offer a "buy-back" policy?

6) Some companies require Independent Representatives to pay for portions of the Hostess gifts, etc. You should know up front whether part of your commission earned will go to cover these cost. This will reduce the actual amount of commissions earned. Am I required to cover part of the Hostess Gifts or pay admin fees, etc.?

7) It is always smart to compare catalog and supplies cost as they vary by company. What do your catalogs and paperwork cost?

Customer shipping charges are important to your business and can vary greatly from company to company. What are the customer shipping charges?

9) It is customary for companies to have a monthly or quarterly sales requirement to stay active and/or receive overrides. What is the monthly/quarterly requirements?

10) If you plan to participate in local fairs, festivals or events,you will want to know whether the company allows you to sell "cash& carry." Many will not as they prefer Representatives to provide one on one customer support and book to increase sales. Do you allow Representatives to sell products at local fairs and events?

11) Many companies provide Representatives with a company approved website.If you plan to market your business online, this will be vital to your success. Does your company provide a website and if so, what is the cost?_______ If they do not, can I design my own?

12) Some companies authorize Representatives to deduct their commissionsprior to sending in the Show Order, while others require all monies collected forwarded to home office and then commission checks are issues monthly or twice per month. How are you required to submit payment for a show?

13) How often are commission checks issued..monthly, twice monthly or weekly? My experience has been that most issue monthly. Be sure to ask as there are some that offer twice monthly and weekly.

14) Many companies now ship their products directlyto the consumer or Hostess, however, there are few that require Representatives to delivery a Show or products. Am I required to delivery products?

15) With some opportunities, Representatives are encouraged to stock products to have on hand for eager customers. Will I be required to stock or carry inventory?

16) Most companies allow their Representatives to purchase productsor display items at a special discount. Are Representatives allowed to purchase products at a discount and if so, what is the discount?

17) Have them explain the commission structure and levels of achievement as it varies greatly by company. What is your commission structure?

18) Do they offer additional incentives, such as trips, a cash bonus and etc.?

19) What type of support is available?

As with any business, finding what works for you and your lifestyle will be the key. Take time to research opportunities and consider whether the business and support team are a good match for you.

In case you missed it, we are doing a FREE LIVE WEBINAR with Jennifer Fitzgerald, creator of The Client Angel which is the fastest-growing follow-up tool available for direct sellers, network marketers, and party plan entrepreneurs.

The FREE LIVE WEBINAR will be held tomorrow Tuesday, July 12, 2011 at 8:30 PM Eastern.

Here is the link for you guys to sign up to join myself and Jen:  SIGN UP HERE

This FREE LIVE WEBINAR is called “Are you Tired of COSTing yourself money by forgetting to follow-up with your clients?” and on it you will learn:

• This is for you if you have ever done a home show and forgotten to follow-up with customers after they got their product
• This is for you if you have ever gotten someone’s contact info out and about and said you would send a catalog and never did and then were too embarrassed to go back 3 months later and send it to them and try to follow-up
• This is for you if you do keep notes on customers but don’t have a computer, in excel spreadsheets and NONE of it is organized

Sales MOMS Sponsor:

Last week we talked to you about the guilty feeling most direct sales people have regarding following up with their customers.  Frankly, we feel guilty because we’re NOT doing it. 

In that email I said the reason we don’t follow up is often just plain, old disorganization . . .  but then I realized there is another big reason as well . . . many of us don’t follow up because we’re afraid of being pushy. 

Does that sound like you?
Does your heart start to palpitate at even the thought of picking up the phone?Does it seem to you that the phone literally weighs 1,246 pounds?Do you think it’s easier to feel guilty than it is to actually make those calls?!

Well, guess what . . . you are not alone and I have a solution for you! 

In case you missed it, we are doing a FREE LIVE WEBINAR with Jennifer Fitzgerald, creator of The Client Angel which is the fastest-growing follow-up tool available for direct sellers, network marketers, and party plan entrepreneurs.

So, if you are afraid of looking pushy when you try to re-service your customers, then you MUST attend this webinar.  Jennifer has some fantastic ideas, tips, and solutions for you.

The FREE LIVE WEBINAR will be held on Tuesday, July 12, 2011 at 8:30 PM Eastern.

Here is the link for you guys to sign up to join myself and Jen:  SIGN UP HERE

This FREE LIVE WEBINAR is called "Are you Tired of COSTing yourself money by forgetting to follow-up with your clients?" and on it you will learn:

• This is for you if you have ever done a home show and forgotten to follow-up with customers after they got their product
• This is for you if you have ever gotten someone’s contact info out and about and said you would send a catalog and never did and then were too embarrassed to go back 3 months later and send it to them and try to follow-up
• This is for you if you do keep notes on customers but don’t have a computer, in excel spreadsheets and NONE of it is organized

I am so excited to be talking about this topic and so I hope you can join me for this special WEBINAR with Jennifer Fitzgerald of The Client Angel.

Remember, good follow up is not only about the right tools, it’s also about the right information, and that’s why I’d like you to join us on this FREE webinar.  Jennifer has so many ideas and tips . . . I know you’re going to love it!  Make sure to sign up here:  SIGN UP

There is one more important thing I want you to know….You will have to sign up in order to be in the running for the FREE giveaway. You don’t have to be on the webinar live because we will be sending out a recording but you do have to register. Jen has so graciously offered to give one of you who registers for the webinar a FREE lifetime membership to The Client Angel!!! That is awesome!!!

Go…register now!!!

I can’t wait to “see” you on the call!