Almost every direct sales company has an incentive trip demonstrators can earn by hitting certain levels of sales, recruiting, promotions, etc.
It is meant to incent demonstrators to work just a little harder. Which is great.
There is a lot of prestige in earning these trips.
In theory, the demonstrators who earn these trips are the most successful demonstrators. They are excelling in Selling, Recruiting, Training at a higher level and so they are being rewarded for their accomplishments.
Plus, you get to hang out with top achieving demonstrators and networking is huge in building your info file.
Sounds like something we all want to be part of, right?
The problem comes when good business practices are compromised in order to earn these trips and other incentives.
So when setting your business goals for 2014, keep these 4 things in mind:
1) Spend Less, Sell More
If the sales it takes to earn the trip are coming primarily from your spending, well that's not a free trip anymore is it? In fact, it can become a very expensive trip. Instead look to cut your spending on supplies and increase your sales.
For example, if you spend $50 less each month (which is about 2 stamp sets) and do one more workshop a month, you will end the year with $1650 more in your pocket. Now that is some real cash
2) Scrap Desperation Customer Sales
You need another $500 in sales to hit a bonus or incentive and time is running short. What to do? Work your plan!
Throwing out short term sales to help you meet company or upline sponsored incentives will come back to bite you in the behind every time.
Your customers become accustomed to purchasing from you when you hit desperation mode each month/quarter/year. So they will start to hold off their purchases for your next deal. You will lose a portion, if not all, of your income on your sale.
Plus you will lose the commisssion on the purchases they would have made normally. Who wants to lose money? that is just no fun!
3) Recruit Consistently and Cautiously
Recruiting happens naturally when you offer it consistently. If you "need" a recruit in order to promote or earn an incentive, think long and hard about being willing to add just "any body" to your group.
Recruiting and Training downline is the most important aspect of building a business that truly generates an income that will support you or your family. But it is a long term, consistent effort that will generate lasting results.
Short term, recruiting and training takes time, money and energy. And if you are recruiting primarily because YOU need a recruit, you can be putting your new recruit in a position they are not excited about or committed to. And we know what that means….3-6 months and they are gone. You have lost a demonstrator and potentially a customer.
And when they leave they don't always leave happy. Which means you have lost not only what you invested in them, but also the purchases they would have made from you AND the purchases their friends and family wuld have made from you.
4) Educate and Appreciate your Downline
Stampin'Up! has incentives in place for your downline. Your job as an upline is to let them know what they are, how to earn them and celebrate their accomplishments.
You might need them to promote or recruit or sell in order for you to earn an award or incentive, but their business is not about making sure you earn those awards and incentives.
Their business is about setting goals, working their plan, earning money, enjoying the creativity and having fun.
Bribing them to achieve so that you can achieve is not good business sense for either one of you. It will cost you money to keep dangling carrots and they need to own the success and failure of their business.
There are always demonstrators who at the end of the year their only "income" is the incentive trip that they have to pay taxes on. That just doesn't sound like success to me.
So instead of focusing on incentive trips, awards and titles, here are 5 things to focus on in 2014
1) Know your compensation plan, don't leave money on the table
2) Decide how much you want to earn and set up your calendar to support that goal
3) Work consistently on your goals
4) Don't be swayed by all that glitters
5) Your financial bottom line is the real indicator of a successful business
So (maybe) skip the trip and make some money!
Change Your little Corner of the World!