Cross-Recruiting Is The Death Of Some Direct Selling Companies
Wouldn’t it be a blast if, like horse breeders we could cross breed strong powerful sales leaders, and within a few months they would start duplicating and producing other great sales leaders and before you know it, our home-based or small enterprise will have become the next media sensation? Yet, at times I think that’s exactly what many home-based and small entrepreneurs think will happen when they go after sales folks in their competitors pastures.
Like rustlers from days gone by, more and more I am witnessing good-hearted entrepreneurs doing just that. They are falling into the trap of thinking its better to go after their competitor’s sales force then growing and maturing their own. It’s like some magic will happen and their company will explode. Now don’t get me wrong, when a large group moves into a company there will be a rise in sales, which can be seen as momentum, when in reality it just like a wild horse stampede, it’s a magnificent sight to see, but once the bulk of the herd have stampeded over the fence and scatter, then there is nothing to see but the meeting dust of the herd. And if the majority has followed a leader over the edge, hit quicksand, or have found a new pasture, then most will die off and leave the company financially devastated.
Here are five myths I have found that happens when we go after our competitor’s sales leaders.
The Direct Selling Association (DSA), using data which includes the top 20 direct selling member companies – AdvoCare International, LP, Nature’s Sunshine Products, Inc., Ambit Energy, Nu Skin Enterprises, Amway, Rodan + Fields, Arbonne International, LLC, Scentsy, Inc., Herbalife, Shaklee Corporation, Isagenix International, Stream Energy, LegalShield, Take Shape for Life, Inc.-Medifast, LifeVantage Corporation, Team Beachbody, Mary Kay Inc., Thirty-One Gifts, Melaleuca, Inc., USANA Health Sciences, Inc. reveals some amazing facts and figures.
Over 18 million people were involved in direct selling in the U.S. in 2014, with estimated retail sales reaching $34.5 billion, a 5.5% increase from 2013. (PRNewsFoto/Direct Selling Association)
According to date released at the DSA annual meeting June 1st, 2015, retail sales volume among U.S. direct selling companies grew 5.5% between 2013 and 2014 to $34.47 billion. Individuals involved in direct selling increased 8.3% during the same period, surpassing over 18 million (18.2 million) Americans for the first time.
A few years ago I read a book by David Horsager, titled The Trust Edge that left a lasting impression. I have adapted what David taught and expounded on it in helping my clients and others grow unwavering trust in their organizations.
I have taken Horsager’s basic thoughts and used their as the foundation to help entrepreneurs in business, and ministry to build not just a solid foundation, but the pillars they need to hold up the roof of their organizations.
Clarity – People trust a clear message, and will turnoff to hype and rhetoric.
Compassion – People put their trust in to leaders who they see as givers. Leaders who care about serving others more than serving themselves.
Character – People trust those take the right road, not the easy road. Even when the consequences cost them dearly.
Competency – People gain confidence and trust in leaders who they see growing and learning themselves. Knowledge isn’t the power, it’s the wisdom one gains from their knowledge.
Commitment – People will follow leaders who stand their ground on principle and what is right. It’s through adversity that unconditional trust is born.
Connection – People would rather hang out with, buy from, and follow leaders who are also their friends. Build community, not just an organization.
Contribution – People are not looking for excuses for failures, they are looking for difference makers. They want to know that if they give trust, it will be rewarded with positive results.
Consistency – People want to know the leader is dotting their “I’s” and crossing their “T’s”. When we are consistent in the little things we do and say, then people trust us to follow through on our big promises.
I do however believe that BK Boreyko and the team at Vemma, may have taken their eye off the ball in some areas, and when you do this too many times, then what seems like small infractions, can mushroom into what we see has happened at VEMMA.
As I wrote earlier this week, this isn’t just a Vemma issue, this is an industry-wide issue.
I will be doing a video and editorial on this issue over the next few days, to address what I see as the most obvious issues the FTC have raised as concerns.
You just crossed the finish line and got the checkered flag. This was the best presentation you have ever given. The prospects were engaged, their eyes lit up when you shared all the benefits, and you know the close is in the bag. And as you pull out the pen and turn the agreement around for them to sign, they lean back and say, “I have a few questions”, but what you hear is “I have some objections.” So what do you do?
Don’t see an objection see a question. Although the objection might sound like a verbal attack on what you just shared, brush it off and rephrase what they just said back as a question. If their objection was phrased as a question, then provide a direct answer by sharing the benefits you will provide them.
Turn their objections into reasons for buying. One common objection in any sales situation is “The price is high, or why is your prices so high?” Don’t back away from this objection, instead share confidently that at times higher prices is a sure sign of higher value! And if you have done your homework or are observing your prospect, you can use something you have observed they already value and use that as an example.
It always amazes me how leaders inside the home business profession try and dictate team culture instead of influencing it. From company executives to top field leaders, I still come across folks who believe that based on their “rank” they have earned the right to lead, when the reality is, they are just dictatorial managers.
Now don’t get me wrong, I do not believe the majority of these folks are trying to sabotage their success or their team’s growth. I believe that in the majority of cases, people are just following the status quo of traditional business.
So, how do we stop dictating our team culture and start inflicting it?
After reading all the court documents, I have decided to continue to the series to see what can be learned from each court document filed by the attorneys for the FTC.
In this editorial, I want to look at the TRO Application filed by Angeleque P. Linville, the leading attorney for the FTC office out of Dallas. Ms. Linville is without a doubt a very competent legal counsel, from reviewing her background.
But, when it comes to her TRO application, I respectfully disagree with her on several points, and truly take offense o the fact that in several areas she calls “Vemma a pyramid”, rather than an “alleged pyramid.” This may seem trivial to some, except that when anyone has already made up their mind in an argument, then it becomes hard for them to separate facts from their perceived reality.
Much has been written about Wendy and Randy Lewis, and the company they founded, Jeunesse Global. But, what about the hundreds of thousands of average everyday home-based entrepreneurs who are independent professionals marketing Instantly Ageless the flagship product, and building a team of other independent sales and marketing professionals?
I met Jenny Caldwell a couple of months ago while I was covering a controversial Jeunesse issue and used a Facebook post, of a corporate image of Ms. Caldwell, which had been doctored a little with additional text (not by her, but by a raving fan of hers.) However, even the best intentions can go wrong, and before you know it, I received a private message which stated out “Shame on you!”
Well I don’t get many messages that stat out with “shame on you,” so it truly caught my attention. I read her sincere message, and went and reviewed my post. I quickly saw where the confusion was coming from, and responded to her, that I would remove the image of her, as well as any mention of her in the article.
But, the story doesn’t end there; it’s just the beginning. From that point forward, Jenny Caldwell and I struck up an online friendship. Her life is remarkable, not just as a female living in America, but as a leader who has touched countless lives as she fulfills her purpose in life.