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Do Team Incentives Really Motivate?

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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

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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 https://la.Scentsy.us or https://www.ThrivingCandleBusiness.com

Is Your Business Stuck in Traffic?

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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 https://la.Scentsy.us or https://www.ThrivingCandleBusiness.com

Mind Your Own Business

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Remember as kids we could say things like “Mind you own beeswax!” or “Don’t be a Buttinski!” While such comments may not bode well for you as an independent consultant, the advice is sound.

A dear friend once told me to spend 90% of my time minding my own business and 10% of the time keeping others out of my business.   That is some of the best entrepreneurial advice I ever received (it’s relevant to non-work related life too).

Specifically I’m referring to independent consultants of the same company – any company, it happens industry-wide – spending waaaaaaaay too much time worrying about what other consultants are doing. If they spent a fraction of the time tending to their own business they wouldn’t have time to get their panties in a wad over what other consultants are up to.

I fully embrace that if you are made aware of someone who is participating in a bona fide compliance infraction and it can hurt your own business or the company as a whole, then you should make the powers-that-be aware of the situation.   This type of issue is not what I am referring to.

But rather I am talking about the tattletalers.   Again, no matter what company you represent I’m sure you see this on some scale.   A prime example of this time consuming whining is eBay sales.   As far as I know, most direct sales companies prohibit consultants from retailing on eBay.   Yet on any given day you can search a particular direct sales company and find hundreds or thousands of listings of product. That’s a fact.

Yet consultants want to take up time on message forums or complaining to upline and anyone else who will listen that “So and so has listings on eBay!”   Then to consume even more time, these folks also take time to email the seller and attempt covert action of uncovering the consultant’s real identity.   “I wrote the seller and just casually asked if they had any other items available or if they could order more!”

People!   Mind your own business!   Just go sell the wax [or jewelry, or makeup, or kitchen gadgets or lotions and potions or whatever product you sell]. Let your corporate office handle these issues.

“But”¦ but “¦ they’re taking my customers away,” you sadly lament.   No.   No those who purchase from eBay are looking for a bargain.   They buy on eBay so that they don’t have to pay retail or attend a home party or deal with an overly eager consultant.   Those are not your customers.   Besides, the sellers often are losing money after they pay for the cost of goods sold, then eBay and PayPal fees.   So let them continue to lose money.

Instead of worrying about what other consultants are doing, get tunnel vision for your own business and you’ll start to see profits soar.

Remember this mantra:

  1. Sell the [insert your product line here]
  2. Get others to sell the [insert your product line here]
  3. Repeat

Simple, right?   Now go mind your own beeswax and make it a productive day.

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 https://la.Scentsy.us or https://www.ThrivingCandleBusiness.com

Getting Started in Direct Sales

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So you’ve just started a Direct Sales business. You’re pretty excited, aren’t you? Your mind is going a million miles a minute. You haven’t even received your starter kit yet and you can’t stop talking about your new business.

That’s how many new consultants feel when they first decide to start a new venture. To keep the momentum going, make sure you know the answers to these five basic questions:

1.      When is payday? To include follow-on questions: How do we get paid -Pay Card? Hard Copy Check? How often? Is there a minimum commission I need before they’ll issue a check? It always amazes me the number of people who start a business and don’t know how or when they get paid.
2.      How much do I get paid? Would you ever accept a jobby job without knowing the pay scale? Then don’t start a business without knowing the compensation plan either!
3.     Are there any smart start incentives? Many companies have time-sensitive promotions and incentives.   Don’t let your window of opportunity pass you by.
4.      What are the top policies I need to know? Likely you received a policies and procedures manual. It can be overwhelming. Find out initially what you absolutely must do and also what you must avoid doing.
5.      Who is my upline? If you don’t have the contact information for your sponsor and for your upline manager/director, get it. When you actually need help is not the time to be tracking down your support network. Obtain this information before you need it.

While it’s not brain surgery, there is much to know in Direct Sales.   Rather than overwhelm yourself initially trying to learn it all, or conversely, not attempting to learn any of it – concentrate on these five basic questions.   Once you have these mastered, keep moving forward and keep learning.

Enjoy your new business! (Because if you’re not enjoying it, what’s the point of continuing!)

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 https://la.Scentsy.us or https://www.ThrivingCandleBusiness.com