The #1 Biggest Mistake

The first mistake practically everyone makes is trying to sell. We are not sales people. We’re mentors and teachers. If we’re doing this correctly, we are spending much of our time building relationships, not trying to get people to take our best deals.

People can feel the difference when you’re talking to them about things you personally use and can recommend, or when you’re just trying to sell them something. You don’t like that, and neither do they! You know you don’t like to be sold, and you don’t like that icky feeling you get when you try to sell. It just doesn’t sit well, so stop it! Build the relationships, and success will follow. Relationship building is the key!

This  Is Mistake #2

Not checking the background of the leaders in your company. Make sure that they have MLM experience, with integrity. You’re asking, why is this so important? Well, ask these questions also. Do you want to build your business once, build it big, and build it for your children’s children and future generations? It’s so important to be sure that the people running your company know what they’re doing and that they respect the men and ladies out there in the field who are helping to build it.

The best and easiest way to do this is to read the company’s policies and procedures. You may be surprised to find that some of the things will make you scream! When you read them, it won’t take long to realize who you are really building the business for and, sometimes, it’s not you! Please, please, you are urged to read the policies and procedures of any direct sales company that you are thinking of working with.

Here Is Mistake #3

Not knowing how many people it takes to earn the income you want is a gigantic no-no. So you think you want to make $10,000 every month? Then you’ve got to know how many people in your organization it takes, on the back end, to make your goal. Now how viable is that? Do you find yourself having problems with just keeping 10, 20, or 30?

In most comp plans, in order to make $10,000 a month, you’d need somewhere between 1,600 and 5,000 people. Of course, this depends on how your compensation plan is set up. How doable is that if you can’t manage to keep 30? There is one compensation plan out there that requires less than 400 people to make a $10,000 monthly income. It’s probably much easier to keep people in that plan. Be sure to know the numbers, then crunch them to see if it’s doable for you.

Finally, Mistake #4

The final (and most deadly) mistake that many direct sales reps make is going after their friends and families. Unfortunately, most direct sales companies use this “technique” as a main source of lead generation for new reps. Ouch! You need to know right now that your “warm market” is most likely the coldest market there is! This technique will not work. If it does work for you,  then chances are you have the best, most supportive family and friends in the world.

So where do you get leads from? Well, the absolute best leads are the ones you bring in yourself. If your company, team, or upline doesn’t have a system in place to implement, it may be very tough if you’re just starting out.

With some basic skills and a lead generating system in place, you can avoid making these mistakes in  your direct sales business. If you find you’re having problems,  see if you’re not making one of these common mistakes in your own business.

With that said, it’s recently been realized that online marketing has more than its share of industry terms for the newbie to learn. Since marketing in any form is all about getting and keeping new customers, it’s obvious that online marketers have a bit of an image problem. This was pointed out very plainly by a colleague who was interested in working online, and seeking an explanation. He stopped me mid sentence with the words “speak English geek” that was a wakeup call.

Here is a short guide to online marketing terms. These terms will help anyone on the outside of the internet marketing circle get on the inside much quicker.

• Ebook – although very popular this still causes some confusion. A ebook is just an electronic book that you read on your pc. It can be a .pdf file, plain text file or an executable file (one which is actually a self contained program to run on your computer). Ebooks sell really well online because no shipping charges are involved and delivery is instant.
• Joint Venture – a partnership. Simply two or more people work together to increase their sales, or to complete a product or service. Often shortened to JV, joint ventures can be very profitable.
• MLM – the initials of one of the least understood of business models, Multi Level Marketing. Also known as network marketing or referral marketing, MLM is the ideal business model for online marketers. It’s easy to get the message out about a new business, and it’s extremely low cost to advertise online. The problem with MLM is that it’s also easy to mistake a pyramid scheme (also called a ponzi scheme) for an MLM opportunity. There are many unscrupulous people who will sell pyramid schemes as an MLM opportunity. The biggest difference is that a genuine Mutli Level Marketing plan has a worthwhile product to sell, and money is also made by referring other sellers of the product, whose sales in turn generate a commission for you. Pyramid schemes often have a worthless product, or no product at all, and usually pays people mainly from new members joining.
• Niche Marketing –act of selling to a particular group of people. There are many untapped niches, which are small groups of people interested in a specific subject. These people are willing to pay for information. It’s pretty easy to target these niche markets online by monitoring search engine results. You want to find a specific word or phrase which is being searched for, but not near the top of the list of popular searches. An example of a niche market is poodle owners. They’re dog owners, but are specifically searching for information about poodles. These markets can be very profitable because they’re not directly targeted by many other businesses. If you offer products tailored to a niche market, you’ll have little or no competition.
• Online Marketing – selling any product or service on the internet. Marketing is merely the act of selling something. Selling on the world wide web costs less than having a real world, brick and mortar business. The low cost of entry is an attractive reason for starting your own online business.
• Subscriber List – sometimes known as an email list, newsletter list, or an ezine list (ezine is short for electronic magazine). This is a list of people who have given permission for the marketer (you) to send them emails which may contain advertisements. It’s also known as an opt-in list, because subscribers ‘opt in’ to receive the emails. This prevents people from claiming an email is spam because there will be a record of them signing up and agreeing to receive them. In relation to this term, another popular snippet of jargon is double opt-in, which simply means after filling in a form, the potential subscriber then receives an email asking them to verify that they agree to accept future emails. They must agree and confirm before they’re added to the email list they wish to receive.
• Viral Marketing – used to describe a way of increasing your business, or websites reach, by using a “viral technique”. In real life, a virus spreads out by people contacting one another, and computer viruses are spread by contacting other computers. Some clever marketers realized they could use the power of people sending each other information, and watched information about their own business being spread in the same way as a virus. If you give away a free gift, which includes a link to your business, and then you allow others to give it away, it works like a virus spreading the word to others as people send it on to their friends. This technique works extremely well, providing your freebie is something of worth that people would give away in the first place.

I hope if you’re a newbie that these brief explanations of online marketing terms will help you to more clearly understand some of the things the experienced online marketers say and write about. If you’re a seasoned marketer, I hope you’ll try to use less of the jargon we take for granted with your newbie colleagues and friends.

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Easy Ways To Make Use Of Company Resources

• Use the supplies your company provides or recommends. Most often a starter kit is provided to a new sales consultant when they sign on with the company. The starter kit might be a small amount of sample products or a very large kit with many different products.  These are usually designed to help you become acquainted with the products you’re going to be representing and selling. It’s recommended that you use them to that end.  You can use them for your demonstrations as well as for educational purposes.
• Use the hostess gifts provided or recommended. Some direct sales companies offer structured hostess coaching and an incentive program. Again, others let the direct sales consultant create a coaching and incentive system that works best for them.  Either way, it’s recommended that you use the coaching materials your company provides. You should assume they’ve done their research and have a history of success with their coaching and incentive plan.With that said however, if you find that some things just aren’t working for you, then revise it to suit your needs.  Don’t hesitate to tell your direct sales company what works, what doesn’t and the solution you found.  They can use your experience and advice to tweak their program, thus making it more effective for all consultants.

• Use the company marketing supplies. Marketing supplies can be one of the most expensive to create and the most difficult to produce effectively.  It’s best to use your company’s marketing supplies to the maximum of your ability.  Brochures, invitations, flyers, catalogs, scripts, thank you cards, business cards and even direct mail pieces are all things that can be used to help grow your business in an effective and efficient manner.
• Use the provided or recommended technology. Many direct sales companies have embraced the power of technology. Several now offer website hosting, templates, graphics, links, buttons and even shopping cart systems so you have your own business website with very little effort.  Of course each company is different and all websites vary. It makes sense and makes your job much easier if you use the technology resources and aids that your direct sales company provides.

Use Other Recommended Resources

Last but not least, some direct sales companies may offer discounts and resources that will help you save money and build your business. For example, discounts on insurance, office supplies, printing and more can all help you grow and build your business. By making your direct sales company work for you, it puts you that much closer to building the business of your dreams.

Likewise, a hostess who didn’t have a good experience will pretty much let everyone know that being a hostess for you is a drag. So not only is your hostess’s attitude important for immediate profits, it also affects future sales. With this in mind, it’s extremely important to get, and keep, your hostess excited about their party.

You Are In Charge

Since you’re the owner of your direct sales business, your hostess will rely on you to take the reins, so to speak, and provide the planning, tools, and other resources to make being a hostess easy.  Now, this doesn’t mean you micro manage everything – you could imagine if someone were calling you daily to make sure you’re energized for a coming party. Ugh.

However, this means you need a plan in place to make an easy job of it. Some things to include would be:

• Help set a date. It’s advisable to plan for no more than 3 weeks away so your hostess doesn’t have time to change her mind.
• Help to prepare the guest list.
• Invitations and a date that they must be sent by – your hostess can do this or you can to make sure they’re actually sent out on time.  Always include contact information on the invitations as well as a map to her home.
• A calling schedule so each and every attendee is personally contacted and invited to the party by your hostess.
• A guest list or checklist for those who have RSVP’d
• Extra order forms for anyone who’d like to order before the party.
• Supplies – Extra order forms, catalogs, pens, etc.
• Refreshments – are you going to provide them or will she?  You can also combine your efforts.

Tricks Of The Trade To Motivate Your Hostess

Pumping your hostess up about a party is more than just making sure she has an organized plan and supplies.  It also involves:

• Sincere appreciation.  Let your hostess know how grateful you are that she’s hosting.
• A smile. Enthusiasm is contagious.  If you’re jazzed about the party, it goes a long way toward seeing that she’s excited also.

Many people enjoy reaching goals and getting rewarded for doing so.  Goal setting is an effective way to add extra enthusiasm and energy.  Goals can be anything including number of guests, total sales, bookings, or even outside orders.  Set goals at the start and let her know what she’ll get when she reaches them.

Of course your hostess will earn great gifts and benefits from simply being a hostess. Just  think of the joy and excitement she’ll have for the party knowing it’s possible to earn a wealth of products and cash rewards.  Who doesn’t like receiving?

A happy hostess is a super marketing tool and a great sales rep.  When she’s happy, this will entice other people to host parties also and your direct sales business and profits will skyrocket.

Follow these tips and you’ll have people lining up to host parties for you.

• Perfect party treatment begins with a great attitude. This sounds simple enough; realize however your attitude is contagious.  If you’re feeling less than genuinely thrilled about your business and products, your hostess will often pick up on it.  This may leave her wondering why she’s throwing a party for you in the first place.  Be sure your attitude is positive and professional at all times when around your hostess or potential hostesses.  Remember to smile.
• Be gracious. A thank you note may not seem like much but it actually says a lot about you as a caring person.  By sending a thank you note as soon as your hostesses agrees to host a party, you’re immediately letting her know how much you appreciate her and her efforts.  This is also a great time to follow up with information and reminders that will help her throw a more profitable party.  After all, your hostess wants to get something out of this too.
• Be organized and professional. Your hostess is counting on you to provide the necessary materials and information to throw a great party.  This includes everything from hostess checklists and invitations to refreshments and back up supplies.  You’ll want to have everything you need to help her throw the best party possible.
• Establish expectations. It’s helpful to establish expectations early on in the party planning. This means set your sales goals, attendee goals and so on, as well as create a process to attain those goals. Also let your hostess know what’s in it for her, i.e. great gifts, cash, and other incentives.
• Check in. Give here a call every couple of days to see how she’s doing and if there is anything you can do to help.  Don’t get me wrong here, it’s important not to overwhelm her with phone calls and status checks. At the same time, you want to be available if she needs you.
• Offer to call her guests. If she’s willing to give you the names and numbers, do it for her.  This is the single best opportunity to introduce yourself and also get attendees excited about the party.
• Arrive early. Not too early, but with enough time to help her set up the party.  Be professional and gracious.
• During the party, make it a point to recognize the effort your hostess put in. Let the attendees know what she did and also what she earned by being a hostess.  At this point take a few minutes to let others know how they too can be a hostess and earn great incentives.
• Before, during and after, keep your hostess in the loop about where she stands with her goals. Give her help and advice on how to attain her goals as well as motivation and encouragement to keep striving to reach them.
• Never assume a hostess is interested in doing what you do. Even if she does a great job, she may not be looking for a business opportunity, however always present the opportunity and information to her.  Share her strengths with her and how they might fit within the direct sales industry. You never know how circumstances may change in the future.
• Last, but not least, don’t forget to send a sincere note of thanks. Party hostesses are the entire backbone of the direct sales industry.  Without a gracious host to hold your party, you wouldn’t be nearly as profitable and it wouldn’t come close to being so much fun.

Always plan an open house, no matter what type of product you’re selling. This is going to be your first official party to introduce your products so you can showcase and roll out the entire line you’ll be selling.  Start with choosing a date.

Getting Ready For Your First Party

It’s important to consider the date for your party. You want to choose a day when most of your invitees can come for maximum exposure.  Weekends are usually best, but stay away from holidays unless you know people won’t mind coming.  Even more people will be able to come if you give them at least a one or two week window before the event.  Ask for R.S.V.P.s so you can get an idea of how many to expect for food.

Have a couple of dates in mind just in case one is better than the other for your invitees.  Once you’ve set the date, now the fun begins.  It’s time for stategic party planning.  It’s a good thing to keep a few things in mind that you want to accomplish at the party:

* Let people know about your products (benefits, ingredients, etc.)
* Provide a non-threatening atmosphere with no sales pressure
* Have products available for sale on hand, as many as you can
* Present opportunities to become a rep for the company
* Provide food and entertainment (games, door prizes, etc.)

You’ll have enough supplies to have your first show since most direct selling companies provide a starter business kit . You don’t have to keep an inventory for your open house unless you want to have more product on hand.  It’s certainly okay to use your products as advertisements and take orders from the catalog.

The Party Planning

Now that you’ve set your date and figured out your goals for the party, decide how it will flow.  Enlist the aid of your family and friends to keep things going throughout.  For an open house, there’s a small window of time when people enter, talk with you, mingle, and look at products.  It takes you out of the limelight and also takes the pressure off since you’re not standing in front of a group for the entire time.

Display your products prominently on a display table.  The display table can be placed in a foyer or as they walk into the main room where the event is being held.  Give brochures complete with business cards so visitors have a way to contact you later should they want to order again or if they decide that direct sales is an opportunity they want to take advantage of.  Also, a separate table for the food and drinks helps to keep your hands free to mingle and talk with the guests.

The Presentation

Finally, the day has arrived.  You’ll want someone else to answer the door so visitors can come right in and meet you.  Your main assignment for the day is getting the word out about your products and the direct selling opportunity.

You are the hostess at this first direct sales party.  Use this opportunity to book more hostess parties, introduce and sell products, and let people know who and where you are. Good luck!

Here are 5 Tips For Growing Your Direct Sales Business

1. Goal Setting- Setting goals and working towards them will help your business grow and you grow as a direct seller. Keep in mind that realistic goals are much easier to reach than unrealistic goals. Each months make a goal list of how much you want to acomplish that month. Use your goal sheet as a guide to help you build your business bigger and bigger.

A newbie into direct sales could make a goal of talking to 10 people about the business a month, a goal of 5 parties the first month or even a goal of earning $500 the first month. Make sure your base your goals on a level that you will be able to reach without feeling disappointed.

2. Networking- As with any business, networking is important to develop new relationships and contacts. Many direct sales reps elect to join their local Chamber of Commerce and find the contacts they meet within the organization are very valuable. Others choose to network online via social networking sites such as Facebook or Twitter. Regardless of the networking method(s) you select, keep in mind that being yourself is important and honesty is the key to building lasting relationships.

3. Remember your direct sales business is a real business- Your direct sales business is just like any other business in the world and should be treated in that way. Your business can really flourish if you treat it as a business. Being professional in everything you do will help your direct sales business grow.

4. The word NO only means not right now- Many direct sellers are afraid of rejection or being told no, but in reality every single direct seller hears it. It is part of the business and you can not a few No’s halt your success. Remember to never take it personally and continue moving on!

5. Don’t give up- Often people in direct sales get discouraged and give up before they have even had a chance to really work the business. Everyone has bad weeks or months, so if you find yourself in a rut, call your sponsor or start thinking of new ways to work your business. Giving up is easy and anyone who has found success will tell you it takes work!

Places To Begin Looking

Obviously one place to start is with your relatives.  Hey, they’re family, right?  That’s what family does – they help each other out.  A little hint though, in order to make hosting a party more of a pleasure than an obligation, make sure to ask your relatives who are interested in your products and who most likely have friends who are interested in your products. It won’t do anyone any good if Aunt Mary hosts a party for your jewelry business and invites all her candle-loving friends, right?

Let’s say you don’t have family close to you or you just don’t want to go to them, then the obvious next best place to start is with your friends.  Here again, make sure to ask those friends who’d actually benefit from your products and would most likely enjoy being a hostess.  Promise you’ll be a great coach and sales representative, and always make it fun for them to host the party for you.  Also, let them know what’s in it for them too, like all the cool hostess-only gifts and hostess discounts on products.  (You can even consider bartering with them if it helps out better, say you babysit for a night out and they host a party.)

It’s pretty much guaranteed that there are other direct sales consultants in your community. It’s a thriving and rapidly growing business model. Many people are now joining the direct sales industry in order to create a little additional income, especially during these tough financial times.  Connect with these other direct sales consultants and trade hosting parties.  If you don’t know any other direct sales consultants, post an ad in your local community mailer, church or school newsletter.

Finally, if all else fails, consider those people that owe you a favor and call it in.  They’ll be glad they helped you. Being a hostess, when you’re the direct sales consultant in charge, is guaranteed to be fun, not work, right?

Sometimes you may need to get somewhat creative to nab your first direct sales party hostess but once the ball is rolling and you’ve got your first party under your belt, people will line up to host a party for you. Your business will be well on it’s way to attaining the goals you’ve set.

For more ideas, download our People You Know worksheet.

The Pros

Direct sales have gotten a bad rap in the past.  Not all of them, or even many of them, are schemes and many do sell legitimate products of very high quality.  There’s something out there for everyone, from affordable products for kids to products that are on the higher end for more affluent clients.

1. Direct sales give everyone a chance to be a business owner. Entrepreneurship allows everyone to realize their dream of working for themselves.  How much you make is directly related to how hard you work at selling your products to others.
2. Direct sales let business owners set their own hours. It’s a perfect gig for stay-at-home moms with small and school-aged children.  They can work part-time or full-time, whatever their schedule allows.  Moms get to spend time with their kids while still gaining a sense of purpose.
3. Direct sales have low overheads. When you join a direct sales program, they’ll provide all of the tools you’ll need to get started usually for one low payment.  Most can be started for $200 or less.  You’d probably spend at least that much on shopping for the family.  Now, you’ve started your own business which will have an unlimited return.
4. Direct sales programs offer training and support for their sales consultants. It can be tough getting started, especially if you have no sales or marketing experience.  The support of the company you join can mean the difference between success and failure.
5. There is a lot of variety with direct sales. You can choose a product you feel comfortable with and believe in.  From jewelry to home décor to makeup to kid’s toys, there’s a business to fit your interests.

The Cons

As they say, all that glitters is gold…  It’s important to do thorough research before signing on the dotted line with your direct sales company.

1. All direct sales programs are not on the up and up. I know I said above that most are, but let’s face it, some are not. They can definitely talk a good game but in the end, all they do is take your money.  If the up-front cost is heavy and there seems to be no support to speak of, keep on moving.
2. Some direct sales programs have hidden costs you didn’t count on. They do supply a starter kit for you to host parties but don’t tell you about the brochures, other products, and any marketing items that you may have to pay for out of your own pocket and are not reimbursed for.
3. Each direct sales program has its own guidelines for earning commission. In an effort to earn money it is easy to lose sight of the goal and concentrate solely on money.  You can convince people to buy something once and gain a big initial earning but for long term gain, you could be sunk.
4. Direct marketing companies offer websites for their associates. Unfortunately, the websites are all exactly the same and they’re all tied to the main company site.  The search engines won’t be able to find you individually and neither will the online traffic you need to make sales.

If you’re considering direct sales, do research the company and be aware of both sides of the coin with this business before you get started.