Over and over again, I’ve watched direct sales consultants try to undercut their competition by offering free kits. What I’ve seen happen is that the consultant does not build a strong team and the consultant loses their reputation amongst other consultants. There are several ways to offer something of value to those who join you without undercutting the price the company has set for the start up kit.
1. Offer more training and more team support than your competitors. While everyone claims that direct sales is easy, the reality is, there are many things that must be learned. Offer ongoing training, meetings, conference calls, message boards, yahoo groups, unlimited help, product information and more. New distributors need to learn about the company, about the products, how to sell the product and how to build a team. Offer more support than anyone else out there.
2. Offer your own incentives. Offer a special incentive if the new distributor sells a certain amount in their first 30 days. Offer a special incentive if the new distributor sponsors 3 people in their first 30 days, each with a minimum first order. Offer a gift certificate for company products if they submit a first order over a certain amount. Each of these will help the new distributor without cutting the start up fee.
3. Offer to help the new distributor with some catalogs to get started and get orders which will help pay their start up fee. They can submit their first order and consultant registration on the same day. Their commissions will pay for the start up fee. If you want, charge a very small refundable fee for those starting catalogs. If the new consultant submits the order and starts, refund them from the money you’ve just made. If the new consultant does nothing, you’re not out money as the new person paid for the supplies you sent.
I’ve seen so many distributors lose money trying to lower the start up fee. When someone starts for free, they have nothing invested and no reason to work hard. Sure, they might say they want to earn but with nothing invested, some of their motivation is now gone. By having them pay the full fee and work towards your incentive, they have even more reason to make their new business a success. In addition, you will not build a sour reputation for yourself in the industry or with the company.
~ ~ Audrey Okaneko has been in direct sales since 1983. She can be reached at audreyoka@cox.net or you can Become a Tupperware Consultant
