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Many direct sales consultants are using the economy as an excuse why their business isn’t doing as well lately.  I will concede that some of your current customers may no longer be making as many purchases due to the economy. However what is likely more accurate is that some businesses aren’t doing as well lately because some consultants have not reworked their businesses to account for the sagging economy.

Do you see the difference?  One is saying that the root cause of the decreased or failed business is because of the economy; and the other is saying that the root case is that the consultants don’t rework their business accordingly.

I flew on four different airplanes this weekend.  On three of the four legs of the flight I had two open seats next to me (all the better to recline!).  Yet the First Class section was jam-packed!  The economy can’t be that bad if all the First Class seats are continually full.

Ever drive past restaurant row on a Friday or Saturday night?  Every restaurant parking lot is full and there’s usually a waiting list to get in.  People are still spending money.

I have to make an appointment with my hairdresser six weeks in advance.  People are spending money on manicures, pedicures, facials, haircuts and colors.  The economy isn’t causing people to give up their simple affordable luxuries.

Yes foreclosures are at an all time high. Consumers may be fixing large appliances rather than replacing them.  Some vacation plans have been revised to stay closer to home.  Auto sales aren’t exactly booming right now.  But these are all high ticket items.

There is still a very large demand for simple affordable luxuries.  Chances are, your direct sales product offering falls into this category.  If your personal business is hurting, then it’s time to switch gears and go find the people who are shopping.

It’s win/win really.  Generally speaking, high income folks have money to spend; those in the middle income bracket may be making some sacrifices but it’s not necessarily to the simple affordable luxuries; and those with lower income still enjoy their homes to smell good, their lips to look pretty or their fingers to be beautifully adorned.

Essentially there is a market for your direct sales products, no matter what the economy and no matter to what income ranges you’re offering the product.  You may just need to be creative to find new customers.  Don’t blame the economy.

About the Author:  Laurie Ayers is a WAHM from Michigan and a Star Director with Scentsy Wickless Candles.  She enjoys helping others start and maintain a candle business.  You can find Laurie at http://www.Scentsy.com/LA or http://www.ThrivingCandleBusiness.com

By definition, an “incentive” is something that “incites action” or is “a motive.”  To look closer – to incite is to “spur to action or to urge”.  Likewise, synonyms for motive include “goad: suggests a motive that keeps one going against one’s will” and also “inducement: prompted by deliberate actions.”

Humor me with one more definition:  “Bribe: something that serves to induce or influence.”  Therefore could one could say that an incentive is a form of a bribe?

Yet every day in the direct sales circle I see advertisements and announcements such as:
“Join my team and get a free xyz” and “Refer a consultant to my team and receive a free xyz.”

Isn’t it true that most direct sales companies have a starter kit and a business opportunity that are supposedly of great value containing all that is needed to start and thrive at a home business?  If that were truly the case, what message would a consultant be sending when offering an incentive or bribe (there’s that word again) to people to join her team? That the starter kit and/or business opportunity isn’t a good value?

Or would she be sending a message that she doesn’t believe strongly enough in her self as a leader to encourage people to join her team on merit alone?  And in a general sense, who do you think redeems these types of bribes?  People who firmly believe in the product, opportunity and sponsor and definitely want to be a part of the company or the people who are in it for freebies without regard to best value?

As a leader, would you rather have team members who are committed to making the business work; who firmly believe they are about to embark on a fantastic journey? Or someone who wants the freebies and who may or may not try the business to see how it goes?

The same holds true for referrals.  Any good businessperson will always ask for referrals.  She should be confident in what she is offering to know that others would be happy to recommend her and her company to others.

Consider this: You ask an acquaintance if she knows of anyone who may be interested in starting a business.  The person thinks about it and then responds in the negative.  But then you offer a freebie.  Do you think that suddenly the person who couldn’t think of anyone who may benefit from your offer will suddenly have her memory jogged at the enticement of a freebie?  Or will she merely give you a referral if she genuinely knows of someone?

I realize this is a controversial topic.  Some consultants insist that bribing works.  They argue that people love freebies.  I tend to agree – people do love freebies.  But do they truly work?  Do they bring about the desired results?  Do they help the bottom line or do they merely increase number of team members without regard to return on investment?

My twenty plus years in direct sales, testing and sampling of this tactic reveal that incentives to join are not generally worthwhile to anyone except the person who accepts the freebie.

We should try to succeed by merit, not by favor. He who does well will always have patrons enough. -  Plautus

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About the Author: Laurie Ayers is a WAHM from Michigan. She started her first home business in 1988. As a single parent, Laurie has supported her family by working at home as an Independent Consultant and Star Director with Scentsy Wickless Candles. She enjoys helping others start a candle business. You can find Laurie at http://www.thrivingcandlebusiness.com/

To coach someone means simply:  To train or tutor or to act as a trainer or tutor. Hostesses aren’t expected to be professional hostesses and know all these is to know about home parties (else she’d probably be a consultant!) Without coaching, you should plan on low attended show, low sales and low, if any, bookings. Many consultants who don’t coach don’t do so because they think they are ‘bothering’ their hostess.

Rather consider it more that you are cheating your hostess out of her benefits if you don’t properly coach.

Coaching doesn’t always work – some will let it go in one ear and out the other.  But that doesn’t give you an excuse not to do it. Coach the same each time so you cover all your bases; don’t take short cuts. The better you become at it the easier it gets.  If you think she doesn’t need a portion of the coaching, ask her to just humor you so that you can continue to give her uniform training.

One of the most important things to educate your hostesses on is that their guest list and its importance. This is the key to the success of their show. Remind her that often 30 invites can do out and only one person will show. It’s vital to invite many, many, many!  Next on the list of importance is their follow thru with those who have not RSVP’d (and that will be a long list) or for those who can’t make it. She should ask every non-attending guest if she wants to order from the catalog.

The snacks are secondary.  Whether it’s a bowl of chips or an impressive spread, the guests are coming for your product display. It should not be any work for her.  Easier said than done, I know. Many hostesses fret over cleaning the house and having just the “right” food.  If your hostess is wigging out, offer to bring her a batch of cookies and you’ll even push the vacuum for her.  Really, she needs to relax about the house.

Generally it is not a good idea to hold her party open for days (or longer). All the order collecting should be done prior to the party. If there happens to be some people who RSVP’d that they come and then later did not show, she can always call for their orders the very next day. Remember each time you need to make another trip to the hostess it eats into your profit margin – in both time and gas. If you let your hostesses know in advance to get advance orders, they will usually do what you tell them to.

It is equally important that you remind your home party hostess what she is getting out of hosting the party and that getting every item of her wish list for free is your goal for the party.

Effective coaching increases attendance, sales and your paycheck!

“Our lives improve only when we take chances – and the first and most difficult risk we can take is to be honest with ourselves.” — Walter Anderson

I receive many calls from members of my team and colleagues who ask me why they aren’t making the money I’m making. They believe they are doing the same things that I’m doing so should be making what I’m making. The first thing that I suggest that they do is to keep a work journal. I remember when I decided to keep a work journal shortly after I went full time into my direct sales business. I had gotten laid off from my secretarial job and was desperately trying to earn enough to replace my income with my direct sales business.

I realized that if I intended to earn full time income, I should be putting in full time hours. What I found when I kept a journal was shocking to me. I *thought* I had been working full time when the reality was much different. I consider 40 hours per week as full time. Sure, I ate up 40 hours doing my business, but a very small percentage was taking place face-to-face with customers and recruits. So I decided to keep the journal a new way — I would only count the hours that would directly benefit my profits — usually that
would mean selling to or finding a customer or signing up or supporting a downline member.

It didn’t take many days for me to realize why I wasn’t earning the money I needed to earn. I hadn’t been honest with myself. I told myself I was working full time when I really wasn’t. How many hours a week are you investing in your business doing profit producing activities? If it’s not full time hours, be honest with yourself. Now if you don’t want to earn full time income, then it’s no big deal. But if you are expecting full time income working part time hours, that’s probably not realistic.

Have you heard this definition of insanity? Doing the same thing over and over and expecting different results. If you want to earn full time income (and then some) you’ll need to invest full time hours (and then some) on profit producing activities for your business. So if you are unhappy with your income, start keeping a work journal and be honest with yourself. As William Shakespeare is quoted as saying “No legacy is so rich as honesty”. Start by being honest with yourself.

About the Author:  Lisa M. Wilber, Owner of www.winnerinyou.com and recipient of “The 50 Most influential People in Direct Sales” 2008 award.

Not a Partier in a Party Plan Business? Develop Your Business Anyway!

As you know the party plan and Direct Sales business are going through the roof as more and more people are trying to earn a living and becoming a mom to their kids.

While the party plan business is an awesome place to “work”, not all of us are partiers! When I did a party plan business, I had a heck of a time booking because my DH worked nights and I chose to have no babysitter for my child. So that left me doing parties on Friday night, Saturday afternoons and evenings. While that worked for a while, I also burned out from having no family time to speak of.

So, what’s a non partier in a party plan business to do? Well, luckily, Lots!

Change your Strategy and Focus!

~Change your focus to Book Shows. You can have several going at one time. You are not locked into 2-3 parties a week.
~ Utilize online parties. You can pick the time, date and never leave home!
~ Fundraising is huge! If your company offers it, use it.
~ Book individual appointments with customers to show products and specials.
~ Specialty sales and special priced groupings once a month using Flyers and newsletters.
~ Product of the Month sales.
~ Email campaigns through autoresponders.
~ Utilize helpers to pass out books and take orders for you. Give them a free item or a discount on their order for helping you.
~ Take small orders and create a “party” once every 2 weeks or so. Don’t make it a requirement for your customers to order only through a party situation. Take orders anytime!
~ Gift registry and Wish lists for housewarmings, engagement, sweet 16, new jobs, special holidays.
~ Open houses and vendor/craft shows in town.
~ Join the Chamber of Commerce and networking groups.

These are but some ideas to strengthen your party plan business. Try them all and use the ones that work best for you!

***********Copyright 2004-2006 by Chris Carroll. Chris is a work at home mom that has been in sales for 20+ years. She has a BS in Business Management and is the host of DirectSalesTalk.com as well as her business she enjoys with her son at www.joywithsoy.com.