Tuesday, January 8, 2013

Why Direct Sales Party Plan Consultants Should Embrace Sales Quotas

One of the most common questions I get asked when prospecting is "are there monthly sales quotas?" If I may be honest, it's something that I strongly consider when evaluating a direct selling business opportunity too. And the reason is that I want flexibility when it comes to the company's compensation plan.

To be clear, there's a difference between monthly personal sales quotas and monthly sales quotas in order to earn from your team's sales efforts. You'll find many companies that may have no monthly sales quotas but every company requires you meet a certain monthly personal sales and/or team sales volume before you'll earn commission from your team sales.

For example: company A could require something like this- $100 personal sales volume plus group volume of $1000 plus 1 recruit then you'll earn 5%. It's important to understand the differences because I've had friends that joined companies with a sponsor saying there are no monthly sales requirements however when they started growing a team and realized they needed at least $500 in personal sales to earn from their team, that was a surprise.

As a rule, you should ask the right questions such as how you'll get paid before you join a company. Sometimes a sponsor won't tell you everything unless you ask specific questions so don't be shy about getting all your questions answered.

Now that you know the difference between a monthly sales quotas, if there's any, versus the monthly requirement to earn a commission from your team, you might want to consider if partnering with a company with sales requirements is a good fit for you or not. I personally think some requirements are good and perhaps it could be quarterly as opposed to having zero monthly sales quotas and here's why- because it changes your mindset when you're required to produce monthly sales volume.

Think of it as a sales job and by the way, direct sales is a sales job. You're an independent sales consultant and your income is 100% based on your personal sales and sponsoring efforts. If you were to work for a traditional company in sales, you're required to produce, there's no option.

Similarly, if you're a consultant for a direct selling company and there's a monthly sales quotas of $100, $250, or whatever the amount may be, you'll have a different mindset. One that requires that you put in the consistent efforts to produce the sales volume required instead of partnering with a company that have no monthly sales requirements which definitely offers flexibility but this can also produce lack of results because there's no accountability.

Of course, you can argue that if someone is motivated and understand what it takes to succeed in business, she will work in her business. This is ideal and it's every sponsor's dream to have someone with this mindset but the reality is that the majority of the people who join a direct selling business don't have this mindset, at least not consistent enough, that is.

We can all be motivated once in a while, and sometimes, but all the time? That's a rarity. I know some days I'm not 100% motivated. And that's the reason sponsoring is equally important to a direct sales consultant's business as it is selling because it's a number's business. Most will fizzle out and if you continue sponsoring enough people into your business you'll have more opportunities to find and develop those superstars.

And the best way to do this is perhaps partnering with a company that requires you to meet monthly sales goals. This will no doubt weed out non producers and most likely won't attract as many but as a team leader having monthly sales requirements is good for continuing to grow your team, sales, and a sense of everybody who is serious about growing a business is all working together in growing their businesses. You know the saying: when everyone's motivated and working together it's contagious to the rest of the team.

What are your thoughts on the pros and cons of partnering with a company that requires sales quotas? I'd love to hear your thoughts and input.


Janette Stoll
Direct to company Team Leader

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