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Do Team Incentives Really Motivate?
Some people love a good challenge; some will stop at nothing to win, win, win! You could offer a free glass of iced tea to the consultant who sells the most this month and you would likely have someone determined to come out on top!
But do team incentives really inspire people? Or are they ‘nice’ but don’t really have much direct affect on results? Or… are they sometimes viewed as de-motivators?
I’ll use my company as an example, but the same could hold true for any direct sales business.
I could offer a $25 gift certificate to our marketing collateral company, which sells nifty logo items and sales aids, for the top team member who had the highest retail sales for the month. Perhaps I’d offer consolation prizes to the 2nd and 3rd place top sellers – maybe something from our own product line, candle bars or room sprays. I could do the same for the top recruiters for the month too.
Then at the start of the following month I could post a team newsletter and announce the WINNERS! Woo-hoo! See your name in lights. The winners would obviously be delighted. But would they have performed well regardless of trinkets offered? Probably. Would my offer of a $25 gift certificate really make someone hustle and sell $3200 in wax last month? Or would she likely have done that anyway, perhaps for the actual commissions she earns?
Not all team members are in business to earn a full time income (although that is very possible and achievable if that is the intent). So what about the mom who works a full time job outside the home, is very busy with her children’s extra curricular activities and is “just trying to earn a little extra money” for the family? She may only choose to or have time to do one party a month. She’ll never be on the list of the Top 3, yet she works as hard trying to keep her head above water.
Is my offer of a plug-in warmer going to magically clear her calendar so that she can recruit 8 new team members this month? Or will the same group of core consultants likely show up on the newsletters each month as the Big Winners? And will this only serve to frustrate those who don’t earn a place in the top sales or recruits? Will it actually cause her to say, “Ah forget it, why even bother?”
To ensure I was working off data and not my own personal opinions, I recently conducted a blind survey of a large group of consultants about this very subject. Below are the results:
1. How do you feel about team incentives?
Love them – they make me work harder: 10%
Don’t affect behavior or “Whatever”: 90%
2. Do you want to receive incentives for:
Being highest achiever: 10%
Reaching number of sales or recruits or other #: 90%
3. How often?
Monthly: 7%
Quarterly: 2%
Unpredictable: 91%
4. What $ value would be acceptable?
$10 or less: 81%
$25: 13%
$50: 4%
$100: 2%
We can all agree that warm and fuzzy is nice. But does it really drive behavior? Your thoughts?
Experienced Sponsors
If you’re looking to join a direct sales company it’s a good idea to interview more than one sponsor before deciding with whom to sign. There are many factors to consider. I’ve heard some interesting comments with regard to signing with a seasoned consultant.
While I fully agree that you need to mesh with whomever you agree to have as a sponsor, I’m still somewhat baffled why someone would choose to go with a new consultant versus a veteran one.
I’ve heard the argument “how can new people ever build a team if people don’t sign with them because they’re new?” I get that if your warm market wants to come along on your new journey with you you can all learn the business together from your upline. Your warm market (friends, family, acquaintances) will support you and won’t expect you to know the answers.
But why would a new person want to start actively recruiting others before she herself has had an opportunity to learn the business? And more importantly why would a potential recruit who is interested in starting a direct sales business want to have a sponsor who is also new?
Consider a hair stylist. Would you want to have your locks cut and colored by someone fresh out of beauty school or someone who has been working on hair for years? What about a doctor? Do you want an experienced doctor or a med student? Do you want your student getting the bulk of his/her education from a student teacher or from a teacher with tenure?
I contend that new direct sales consultants should focus initially on sales and on learning the ins and outs of the business. Be selfish and soak up everything there is to know about the compensation plan, the policies and procedures and become an expert on your product line. Then the recruits come as a result of your working your own business and then you’ll be well positioned to build a strong team.
When you are new and share your new business with others, it is true that sometimes others will flock to you and “want in”. By all means if recruits come to you, sign them, just be sure to disclose that you are also new and still learning the ropes. Don’t mislead people with your experience.
I actually had someone tell me that they would not sign with a Director because “she’ll be very demanding and expect you to report in your progress and attend meetings and, and, and…”. Well that is certainly a misnomer. I mean some Directors might roll that way; but surely not all. And if that style isn’t your cup of tea, that’s an area that could be discussed while you’re interviewing potential sponsors. But I definitely would not intentionally stay away from signing with a Director simply because you envision boot camp and a drill sergeant.
Lastly, if a newer consultant promises you the world if you sign with him/her, consider the offer carefully. If he/she offers you freebies such as a website, more product than comes in the starter kit or exclusive coaching, a red flag should go up. Any direct sales company should have a complete starter kit. If you truly think that you’re going to need extras right away, more so than what is included in your company kit, then perhaps it’s not the right opportunity for you.
Also, if your starter kit does appear to have everything you need to get started, why is the new consultant giving away his/her profit and time to leer you onto her team? Does this person appear desperate? Or lack sound business practices? Will you also be expected to give away freebies that come out of your own pocket to recruit people?
Lastly, if it appears that the new consultant you are considering joining with has some unique skill set that he will teach you, also look at the knowledge, skills and experience with that direct sales company. Someone can be a whiz at closing the deal or at Internet marketing, but if she doesn’t quite yet grasp the compensation or policies of the company, how beneficial really is the offer of the less experienced consultant?
Now before all the new consultants spam me with nastygrams about how I was once new too, yada yada yada, please don’t miss my main points which are:
1. If you are a new consultant, please learn your own business well before actively recruiting others, whom you are responsible to train and mentor and
2. If you are considering a direct sales opportunity and are serious about running your business like a business, then wouldn’t you want to learn from the person who has the greatest knowledge, skills and abilities with that particular company and industry?
Do your due diligence with both which company and which sponsor and you’ll be off to an exciting career in direct sales.
About the Author: Laurie Ayers is a WAHM from Michigan and a Superstar Director with Scentsy Wickless Candles. She enjoys helping others start and maintain a candle business. You can find Laurie at http://la.Scentsy.us or http://www.ThrivingCandleBusiness.com
Is Your Business Stuck in Traffic?
As I drove down to Notre Dame recently, I encountered four different construction zones. Though being that a majority of my trip entailed travel through Michigan, and Michigan is known for our two seasons of driving: “snow” and “construction”, I shouldn’t have been surprised.
Needless to say, I had a plethora of time to think about various areas of interest. Among the many topics of thought that graced my mind, one in particular correlated to what we do with our down time; specifically down time within our businesses.
We all have things that we should do, but there aren’t always tasks that we have to do. Those required responsibilities are easy. We have to do them; so we do. But when your engine is idling, or creeping at a whopping 9 mph, do you utilize the time wisely?
Illustratively, every business has seasons. In some direct sales businesses, the fall traditionally ramps up for the busy season. If your product line would make excellent gifts, then October and November should be peak sales. But what happens at the tail end of December when Christmas cut-off has come and gone? Furthermore, what will you do in January when consumers are financially strapped? Or perhaps your slow time is during the summer. Whenever your slow season, make wise choices for how you use your time.
If you find yourself with some down time and your business is stuck in traffic, you have three detours you can take:
Route A. Get irritated because you’re stuck just sitting. No matter how many times you honk the horn or shout naughty words at the driver in front of you, you’re not moving forward. Perhaps you’ll just quit driving from now on; you don’t need the headaches!
Route B. Do your own thing. Maybe you can go around on the shoulder. Or maybe all those people in front of you in line aren’t as innovative as you. Perhaps you can take a short cut and jump to the front sooner. Why bother with rules, you can outsmart them.
Route C. Enjoy the slower pace; after all, you’re not very self-disciplined to just be still. Realize that the slow down is beyond your span of control and use the time to brainstorm or dream big. Or give yourself permission to just check out from thinking for a while and let your mind wander. (Just be sure to multi-task and keep your eyes on the road).
Odds are you’ve taken at least two of these detours before. Route A serves no useful purpose except to increase your blood pressure. Route B on rare occasions may prove fruitful. Yet generally only serves to put you further behind. Route C seems to be the best route to take. Wouldn’t you agree?
So the next time you aren’t getting the results you’d like with your business, don’t just get mad and quit (don’t even utter the words “This is crap, I quit!”). Also don’t try to re-invent the wheel. Take a fresh look at your corporate training material and start with the basics. What are the leaders in your company doing? Instead, take Route C – and just accept that you have some down time for a reason and make the best of it. Embrace the time to recharge, renew and refresh.
Once you make it out of the construction zone, you’ll be a better “driver” for it.
About the Author: Laurie Ayers is a WAHM from Michigan and a Superstar Director with Scentsy Wickless Candles. She enjoys helping others start and maintain a candle business. You can find Laurie at http://la.Scentsy.us or http://www.ThrivingCandleBusiness.com
Why Direct Sales Makes Sense for Men
Think selling candles, kitchenware, spices and purses is women’s work? Think again! Certainly women make up the brunt of direct sellers but it’s definitely not gender exclusive. Many men in direct sales are earning a decent supplemental (or more) income.
Men, hear me out. Before you stop reading, proclaiming, “I’m not peddling any sissy girlie stuff”, consider why it’s such a viable option for those with higher testosterone levels.
1. It Fits Into Your Schedule
You’re already putting in 40+ hours at the office or on the site. You work hard to support your family. Leaving one full time job to go work a second part time job is one of the last things you want to do; but you do what you gotta do, right? With direct sales you work the business when it’s convenient to you. If your regular gig keeps you on the road commuting to and from work or in between appointments, that’s an opportune time to work in phone calls and make contacts. Instead of playing Mafia Wars at night, just do a little Internet Marketing and let your online community know what you’re offering. Doesn’t that sound better than 14+ hour days working a second job?
2. Let’s Face It, Men Aren’t Natural Gift Givers
Birthday, Anniversary, Valentine’s Day, Mother’s Day, Sweetest Day (3rd Sat. in October, BTW) – you pick. Many men dread the idea of having to pick out something special for their lady. Most Direct Sales product offerings will make excellent gifts for women. As much as we women would love it if the men in our lives were as great of gift givers as we are, genetics simply doesn’t allow that to be the case a majority of the time.
Men are more comfortable buying a gift for wife, girlfriend, mom or sister from another man. Guys, wouldn’t you rather say to your buddy or coworker, “Hey Bob, I’m in the doghouse with Sandy. Can you hook me with a gift to get me off the hot seat?” Rather than wander around aimlessly trying to find something in a store? That will likely fuel the fire anyway instead of make things better. Male direct sellers can fill in the gap.
Also, there’s no law prohibiting men from enjoying facial cleansers, gadgets, nutritional supplements or candles. Many men do, just some are in the closet about it. Another man endorsing that their office, den, house or apartment can smell great or that they have a kitchen utensil that can make Sunday Taco night even more delicious – and it’s nothing to be ashamed of, can be another great selling point to the untapped customer base.
3. And Then There Are The Ladies
Would it really be so bad if you were referred to as the Wax Man or the Purse Guy? There are plenty of women out there who like all the products that direct sales has to offer. The women you come in contact with every day will be an easy sell. Consider all the women you encounter each day – if not at work, think of your wife, sister, girlfriend, mom and then all of their friends. There is no shortage of potential customers. When women encounter a male direct sales representative, she’ll be thinking, “There’s something to be said if he’s getting behind this company. I better check out what he has.”
Contrary to the fact that women in direct sales are the majority, if you put two people in a room, both with samples of some direct sales company to hand out, one a man and one a woman, it’s almost guaranteed that the man will get more attention. Your male gender is one thing that sets you apart from a plethora of other independent sales consultants. Further, many of the current male distributors have a proven track record of success. Generally speaking, y’all tend to have thicker skin than we do and plow through the inevitable sales rejection easier.
Men, if you’ve never seriously considered working with a direct sales company, I highly encourage you to give the industry a look. It’ll provide you the freedom to continue to work your regular job or to give you something to do if you’re retired or unemployed. Your direct sales income can fund private schooling, uninsured medical expenses, home improvement, college tuition, wedding expenses, your boat and aging parent(s) that may be staring you in the face.
For more information about becoming a direct seller, you may research many different opportunities at the Direct Selling Association.
About the Author: Laurie Ayers is a WAHM from Michigan and a Superstar Director with Scentsy Wickless Candles. She enjoys helping others start and maintain a candle business. You can find Laurie at http://la.Scentsy.us or http://www.ThrivingCandleBusiness.com
How to Look Desperate During Direct Sales Recruiting
Looking for tips to help increase your recruiting numbers? Prior to talking about some of the things you can do to help grow your team, it’s important to talk about what not to do.
Before you say, “But that’s not focusing on the positive, Laurie” let me say that I am positive that if you are currently engaging in any of the actions below; and if after you read this you find yourself with a new awareness that what you’ve been doing isn’t necessarily a best practice, I am positive you will see an increase to your down line.
Join My Team and Get …
Bribing people to join your team is numero uno on my list desperate recruiting moves.
- Do you really want team members who are just there for the freebies?
- It looks like your company’s business opportunity and/or starter kit isn’t good enough to stand on its own.
- How is this any different than the little elementary school girl who couldn’t get anyone to play with, so she gave away her cookies at lunch just to have friends?
- It’s sending a message that your mentoring and coaching skills are sub-par. Otherwise you wouldn’t devalue what you have to offer.
- Based on the percentage of royalties you will receive on your new recruit’s sales, have you calculated how much she/he will need to sell before you merely break even on your give away?
I Only Need Two More People To Qualify for the Trip
Do I really need to elaborate how desperate this one makes you look?
Push It… Push it Real Good
Some sales gurus will tout the benefits of creating a sense of urgency. Ok, I’ll give you that some feel this is a good tactic. However my personal experience with direct sales is that it is not appropriate to push too hard when recruiting team members; doing so only makes you look desperate.
- It’s one thing to let people know if you have a ground floor opportunity or a limited time offer, but will their lives really be that miserable if they don’t act now?
- If you represent a stable company with an awesome opportunity, isn’t it reasonable to expect that you (and the company) will be around for a while?
- You may be able to strong-arm someone into joining your team, or create must-have hype, yet if someone starts a business before she/he is ready, who will that benefit … anyone?
- Some will question the motive behind you pushing so hard to recruit new team members. If it’s a good fit, it should flow naturally.
I have never asked anyone to join my team. Never. I simply make my opportunity and myself visible; those who want to join merely do. I’ve had potential recruits ask if me I am offering any sign-up specials (no) or tell me that another consultant is offering free websites to their recruits (so). The passive, put-it-out-there-and-then-just-step-back and let-it-simmer approach has worked well for decades (yes decades) with me.
If you need to make some adjustments in your recruiting efforts, there’s no time like the present to do so!
About the Author: Laurie Ayers is a WAHM from Michigan and a Superstar Director with Scentsy Wickless Candles. She enjoys helping others start and maintain a candle business. You can find Laurie at http://la.Scentsy.us or http://www.ThrivingCandleBusiness.com
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