So, you’ve seen all the posts and maybe you’ve been approached to “Join my team” from a family member or your friend. Hell, maybe even from someone you haven’t talked to in 20 years. Let’s be honest, this happens. So what does this really mean? We’ve all had a moment of, “Gross, I am not going to do that. It’s a pyramid scheme.” “I’m not going to bug all my friends and family to buy my stuff.” I know I have!
Here’s a bit about my background. I have worked in the technology sector and financial sector, working within the sales departments of both. Here’s what I can tell you about the commission structure of them. In technology, the sky is the limit. Not many tech companies put a cap on what their sales team earns. Let’s say a deal goes down, who gets a piece of that action? The sales person and their boss, their inside rep, the engineer and their boss, their boss’s boss, and the boss’s boss. The higher up the food chain you go the less % of commission they get.
In the Financial sector, well at my company which was very old school, my sales guys got a cap on their sales. So, when they reached their number in October there was no incentive to keep selling. They would try to hold their customers off for a few months so they could front load their next year. At my company they got a very small commission % off their sale but would earn a bonus at the end of they year based on their sales performance. The pay scale is set up very similar to the tech sector as well, just fewer people are involved. Sales person, the Region Manager, the Division Manager, the VP and President.
In an MLM sector, I earn my commission, my upline get’s a part, their upline get’s a part, and then a 3rd upline get’s a part. Any kind of sales role, whether it’s a public company, private, or direct sales, the pay structure is essentially the same all around.
We’ve covered that Direct Sales businesses are not another Bernie Madoff pyramid scheme. It’s a job. It’s a business. A business that me as a mom can do from home to give myself something that makes me feel….normal. I get to interact with adults, go out and drinks with the girls and talk skincare and write drinks off as a business expense.
I’m not familiar with all direct sales companies, just two really. Almost all of them offer start up kits. Rodan + Fields has 4 different kits. One starts at $45 and goes all the way up to $995. One perk that I love R+F offers to new Consultants, is they have a fast start program designed to reimburse you your initial investment…..not just once, but twice!
If you are looking into getting into direct sales, see if they offer a fast start bonus. The R+F Fast Start Bonus is earned after you become and Executive Consultant II and you have 3 months to do it. To be a Level II you need to have 2 people signed up under you and they must have at least 600 in Personal Sales Qualifying Volume. This is just something to keep in mind, if you are wanting to get into a Direct Sales business, ask what their Fast Start program is.
Almost all direct sales companies have monthly requirements one needs to meet to sell. Usually it’s a website fee, some have these some don’t, some require you to spend a certain amount on products. Now, not all companies have requirements so this is something you should ask about. At Rodan + Fields we have a $24.95 a monthly web site fee and we also need to have another $80 in products, this gives you a total of 100 in Sales Volume.
These are not mandatory with Rodan + Fields. You can opt out of this option and you can still earn a commission check, you just won’t be getting that big of a paycheck. If you do this you can make anywhere between 25 – 30% on sales.
Every Direct Sales Company is different. Some require you to do a certain amount of parties a week or a month; and some require you to carry inventory each month so you have stock in house to sell; some don’t. Rodan + Fields is not a party company and we don’t carry any inventory, and there are other companies out there like this.
The biggest push each month are getting potential customers on the phone and signing on new Preferred Customers. You can do retail sales, but you won’t get paid for the sale, your upline will. So, you want to push everyone to sign up for the Preferred Customer program. This is a one time for life fee of $19.95. Some Direct Sales companies require you to pay this every month to get the savings. A Preferred Customer gets free shipping on orders $80 and over and will get 10% off all their orders.
We also utilize social media, just like many other companies. I was taught that when using social media you want to bring followers to you, so don’t always post about your business with every post. Be tactful in your posts and be consistent. Stick to one social media channel and focus on that.
At the end of the day, this is YOUR business. You make it what you need to make it for you. Have your reason and believe with your whole heart on what you want to get out of your business. It will be your focus and help guide you.
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