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Direct Sales is Not For Everyone

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Oh yes I did just say that.   Allow me to repeat: “Direct Sales is not for everyone.”   Personally I’ve been involved in direct sales since 1988 and because of the various platforms available from which to sell (namely internet marketing for me) it is a good fit “¦ for me – but not for everyone.

All too frequently I hear companies and existing consultants tout that “Anyone can do this business!”   Ok, perhaps anyone who has $39.99 or $99.95 on their debit card can sign up for a starter kit, but that does not mean that everyone should.

For example, have you seen the latest teen craze in jean pants – Skinny Jeans? I’ve also heard them called cigarette jeans because they’re so skinny, each leg looks like a slender cigarette.   These jeans can be found in a size double zero all the way up to a size 12 and higher. For those not terribly familiar with women’s sizes, a size 12 is not gi-normous by any means, but it is far from skinny. Many women who would attempt to wear a size 12 and higher skinny jean would look like two pigs fighting under a blanket.   Just because they can wear them, does not mean they should.

Same same with direct sales.   I believe in stretching your perceived limits; I embrace growth and challenges; I get the benefits of getting out of your comfort zone; yet I don’t support trying to squeeze a square peg into a round hole.

Below are some considerations to truthfully ponder before starting a direct sales business.   I know that for every example I cite there are indeed success stories of those who have overcome these challenges and have become financially successful.   However, life is pretty short to have to work so hard at something you don’t love doing or that you have to force yourself to do.

Direct Sales may not be for you if:

  1. It looks so easy – some products are an easy sell, but running a direct sales business takes confidence, persistence, dedication, patience, flexibility, organization, creativity, the ability to follow company policies, and the necessity to actually show up for work – ideally on a daily basis.
  2. You think others would be doing you a favor by hosting a party – if you have the mindset that your hostesses would be “having a party for you” or “doing you a favor”, you’ll need to change your stinkin’ thinkin’ or find another avenue in which to work at home.   You have to believe that you are offering a fantastic product and will benefit your hostesses.
  3. You don’t have much contact with the outside world – if you tend to have a very small circle of friends and associates and don’t have opportunity or desire to leave your home much, it’s going to be challenging to find new customers, hostesses and recruits. Note: not impossible, just an uphill challenge.
  4. You don’t have strong Internet marketing skills – if you do have contacts (see #3 above) you could be just fine.   But if you don’t have much contact with the outside (offline) world and intend to work your business by Internet Marketing, yet don’t possess knowledge, skills and abilities in that area, you can certainly learn, but plan on it taking some time. Just because you build your website, they will not come.
  5. Public speaking scares the pants off of you – if you’d rather have a root canal and a pap smear at the same time than speak in front of a group of people, a business in product sales may not be for you.
  6. You don’t have the financial investment for a start up kit.   Some direct sales starter kits require more financial investment than others; but regardless, if you don’t have the scratch to purchase your own start up kit, then it’s not time to start a business.   Nothing ventured, nothing gained. If you’re not vested in your own business, it has a strong probability of failure.   All businesses require some sort of investment.   While I embrace initially not spending a wad on non-essentials, such as logo wear and other marketing collateral, you will likely need some additional funds for items such as business cards, internet hosting, product samples, etc.
  7. Someone talked you into it – if you didn’t have the gnawing sense that you had to be a part of a particular direct sales company, but rather you were pressured, bamboozled, got caught up in some rah-rah hype or simply didn’t have the peace that surpasses all understanding, then don’t do it.   Far too many former consultants fall into this category and have closets full of dusty starter kits.

You might want to pass this article along or bookmark it so that the next time you hear someone say that “Anyone can do direct sales” you can point out that perhaps while anyone can sign up for direct sales, it may not be the best option for all. (Put the skinny jeans down and find a more flattering trouser cut pant!)

Of course, if none of the seven reasons above pertain to you, then you very well may be the next Direct Sales superstar.   What are you waiting for?   I’ll see you at the top!

Ethics, Morality and Cut Throat Sales

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Ethics and morality used to be used interchangeable in business.   I do not believe this can or should be the current practice.   Many businesses, including the DSA – Direct Sales Association have defined a Code of Ethics. Those business ethics basically say be forthcoming and not deceptive, don’t use false claims, etc.; pretty cut and dry stuff.

Yet when it comes to morality in business, some would argue that definition to be a bit subjective.   But is it?   Shouldn’t we all have a general sense of right and wrong?   Or is it a matter of what’s right to one independent sales consultant would be highly taboo to another?   If it’s not exactly illegal by company policies and procedures, does that mean anything goes in independent sales?

It’s a dog eat dog world. Desperate times call for desperate measures.   It’s a cut-throat economy out there.   True or False? First let’s take a look at what is meant by “cut-throat sales”.

According to one responder on Yahoo Answers: “If you work in a “cut throat sales” environment, it means that the reps are all either starving, lazy or greedy. They will “cut your throat” by stealing your customers/prospects the minute you turn your back.” The same responder continued, “If you have the stomach for it, you can make great money. If you have morals and ethics, you may get ulcers and stress – I did.”

Headlines of a Nov. 26, 2008 Newspaper read:   “The cut-throat Christmas: Stores in price-slash frenzy as battle for shoppers gets desperate.

Most of us would agree that Cut Throat Sales is much more than being keen and aggressive – it’s more about being desperate.     But does it work?

Some Direct Sales companies have a policy about territories.   It’s my understanding that Mary Kay Cosmetic independent consultants are required to ask potential customers if they already have a Mary Kay consultant.   If so, they must back off.   Other companies have a clause that reads something like:   No Territory Restrictions   – There are no exclusive territories granted to anyone.

Take this scenario for example:   A Direct Sales company consultant has a display set up in a local business to generate leads.   A consultant from the same company also happens to patronize this business; sees the display; and still tries to infiltrate the business and make those customers and employees her own customers.   Assuming there are no territory restrictions, is this practice acceptable or no?     What if the second consultant is from the same company but is on a different team?   Is that free enterprise or is that an immoral business practice?   Does your response change at all if both consultants are on the same team?

How do you feel about this second example:   A consultant attends an event and gives her direct sales products as a gift.   Other participants admire the item; yet the consultant who gave the gift merely responds, “I’m glad you like it.”   Then within the confines of this same conversation, another participant, who also happens to be a consultant with the same company, starts her own sales pitch in the middle of the event.   Morally wrong or all is fair in business?   Does it matter if both of these consultants are on the same team?

Here’s my feeling on both of these situations – take what you like and discard the rest:   They’re both wrong, no matter if the consultants are on the same team or not, but it makes it even more immoral if they happen to be on the same team.   In the first situation, if the second consultant didn’t think to request a display first, then she should move on to another business.   There are plenty of leads to go around without needing to be cut throat about it.

In the second scenario, I’m shocked and disgusted that someone would even under cut the first consultant who quietly gave the item as a gift.   The second consultant did nothing but create awkwardness and cause herself to look like a real buffoon.   The second consultant will self-destruct with that kind of desperate cut throat sales tactics.   It does not work and it’s just plain wrong.

Here’s the rub – anyone who doesn’t see these two above examples as immorality in business probably partakes in those kinds of activities. He or she likely sees cut throat sales as the only way to be successful.   My wager is that if there are temporary sales successes in this type of behavior, it’s short lived and the perpetrators will continually need to move on from company to company once bridges are burned and the self-implosion is finalized.

To those folks: I wish you well; you’re going to need it.   To those direct sales independent consultants who see something fundamentally wrong with this type of activity, try not to let the choices of others consume you and steal you of your joy.   Keep running your business with authenticity and integrity – you’ll soar among eagles!

Productive or Just Busy?

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Are you productive or just busy? I hear so many work at homers talk about how busy, busy, busy they are. But busy doing what? There is a very distinct difference between being busy and being productive. That may be a blinding glimpse of the obvious to some, yet so many continue to be busy, busy, busy and don’t have the bottom line to show for it.

I wonder why some people are not productive. Do you think it may be because they simply do not know what to do?   Or perhaps because what they should be doing may be out of their comfort zone?   Or is it so that they feel they are making a contribution to the household if they are busy all day?

One WAHM told me that she was so busy all the time with her business and then she told me that she made about $250 commission a month. The way she talked, she was working her business like she would a full time job. That being so, 160 hours a month divided by $250 is $1.56 per hour.   Not sure I would be bragging about being so busy while earning $1.56 per hour.

Non-income producing tasks are a necessary evil for all business owners.   Yet when the non-income producing duties far exceed the income producing responsibilities, it is really time to reevaluate if you truly want to have a business or are merely content with a hobby. (If it’s the latter, that is perfectly acceptable – but then it is really not a business, is it?)

Is checking forums repeatedly throughout the day really necessary?   Or would popping in on a limited number of forums and networks once or twice a the day suffice? How many times a day do you check Twitter? (Don’t want to miss a status update, do you?) What about Facebook? You would hate to be tardy in filling out 25 Things About You!

Another big time sucker can be your own company or team sponsored consultant forums. While it is wonderful to have camaraderie among other consultants, those folks are not your customer base! Stop in if you have a question or if you want to see if any of your own team members may be confused about something but then get the heck out of there. You won’t find any potential new recruits hanging out in the company consultant forum!

One simple litmus test with each activity is to ask yourself: “Is this the best use of my time?”   If the answer is yes – then good for you.   If the answer is no, then you have two choices: do something more productive or continue to do whatever it is you’re doing, but at least acknowledge that you’re not being productive.   You may find that this one straightforward question changes the way you work on your business.

Home Party Booking Ideas

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Need some home party booking ideas for your Scentsy business? 

I trust you are here because you need some home party booking ideas. You probably feel like you’ve “asked everyone, and no one wants to have a party.” Am I right?

There are generally three main reasons why your booking success needs a little help:

1.       Your peeps are basically non-party people.   Sometimes it’s as simple as that.   Those you know or talk to just don’t get into hosting or attending direct sales home parties. Have you ever tried to convince someone who prefers country music to listen to jazz?   Or how about convincing a true blue dog-person to get a cat?   Sometimes it’s that simple; nothing you say or offer will convert them into party-people.

2.       You haven’t asked.   That may be a BGO (blinding glimpse of the obvious) but are you honestly asking people if they’d like to host a party?   Or are you making up their minds for them? Have you already decided that she wouldn’t want to have party? There might be a market for your mind-reading abilities.

3.       You’re using words and terms that make people run.   Sometimes when people hear “home party” their mind translates that into something as fun as a mammogram or paying taxes. Perhaps you can say the same thing in a more enjoyable manner that will get favorable results.

Home Party Booking Ideas (and solutions)

If you fall into one of the above three categories consider these possible solutions:

1.       Review your company policies and procedures to ensure you are permitted to market via methods other than home parties.   Perhaps you’re better suited to participate in vendor events such as craft shows or state fairs.   Can you use Internet marketing?   Perhaps that’s the way to go instead of constantly hitting the wall with home parties.

2.       Open your mouth and give people the opportunity to get free stuff.   And for goodness sake don’t ever use the word “favor.”   Your hostesses aren’t doing YOU a favor – you’re doing THEM a favor by providing them the opportunity to get some products free or greatly reduced. Until you change your mindset about that favor thing, no matter how you ask, you’ll come off that you don’t really believe you’re offering something worthwhile.

3.       Try using creative language.   How about “Free (candles, jewelry, makeup, etc.) For Large Orders”?   That says nothing about a home party but gives potential hostesses the opportunity to merely collect orders or to decide how to go about getting the free goods.     Also try other names for home party – Tasting Event or Scent Samplers.

If what you’re doing isn’t working it’s really as simple as finding a different way to arrive at your destination.   Take a detour; try something different than what you originally thought was the way to go.

About the Author:   Laurie Ayers is a WAHM from Michigan and a Superstar Director with Scentsy Flameless Candles.   She enjoys helping others start and maintain a candle business.   You can find Laurie at https://la.Scentsy.us or https://www.ThrivingCandleBusiness.com

Are Vendor Events Worthwhile?

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Is it worthwhile to do vendor events for your Scentsy business?Is it worthwhile for your Scentsy business to participate in vendor events?

Vendor events are called many things – craft shows, expos, farmer’s markets, flea markets, festivals, bazaars or fairs.   Some are one day events and others can last as long as one week.   Some are as affordable to enter as $45 per booth while others can cost hundreds of dollars or more.

How do you determine if it is worthwhile to participate?

Do the math and make sure you calculate all expenses, including your time. Also consider the cost of goods sold.   A common question is “How much inventory should I bring?”   Bring as much as you can afford without going into debt over it.   Many experienced direct sellers would not do a vendor event without a large supply of cash and carry. People want it NOW; they don’t want to place orders; they won’t give money to a stranger in hopes that they’ll get the product in a few weeks; they don’t want to fill out any contact sheet – they just want to buy the goods and go. They’ll buy whatever you have – impulse purchases.

Some people set up a small display, without much on-hand inventory and choose to do events in hopes of future sales. That’s too much of a business gamble and far too much of an investment of non-income producing time in hopes of orders later.

Below are some factors to consider when calculating return on investments before deciding to do a vendor event or not.

Based on a 25% commission rate, if the booth fee is $50 you’d need to sell at least $200 just to break even on cost of goods sold – and that does not account for your valuable time, investment in business cards, samples, catalogs, and any display pieces (tables, table cloth, racks, cases, signage, etc.)

If you sold $500 at the show then you’d only profit $125 (assuming you’re at the 25% rate and did not invest any other monies) Figure between product preparations, pack up, travel, set up, time working the booth, tear down and return travel, you had 12 hours invested. That’s earning just a little over $10/hr, yet you still have to deduct taxes from that rate.

That said – if you had on-hand inventory and sold $500 product at the event, you’d make about the same amount of money you’d make at McDonalds.

Take the same above example, only this time figure what you would make if you sold $200 worth of inventory.   You’d be working for free and the event would have cost you money.   Now figure this example without the inventory or without the sales?   Pretty glum picture, isn’t it?

That is not to say that vendor events are never worthwhile.   Sometimes they can be very profitable and a great way to advertise to the masses.   It is just vital that you do the math first and actually calculate your incomes to expense ratio.

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About the Author: Laurie Ayers is a Michigan work from home dog mom and a Superstar Director with Scentsy, who started her Scentsy business in 2006. Shop securely at www.IncomeWax.com. Also, be sure to connect with me on Pinterest