| Time and again young leaders and new consultants | | | | seasonal merchandise that has a short sales "life |
| approach me with questions regarding re-investing in | | | | span". You don't need to purchase every new |
| their business. Simply put, a savvy consultant does | | | | product that's coming out in the holiday catalog, just |
| need to set aside a certain amount of profit to | | | | to have it on hand for clients or team members that |
| reinvest for business growth. The challenge comes, | | | | can't afford to buy it for themselves. Buy what you |
| however, when consultants are earning so little in the | | | | will use - or what you don't mind having around at |
| first place, that they just don't think it's possible. The | | | | the end of the season if and when it doesn't sell. |
| profit margin is either too slim, or they've already | | | | 3. Curb "consultant cost" purchases. Most consultant |
| spent it on living expenses. | | | | offers do not give you sales credit or commissionable |
| It's a dirty little secret that most consultants don't | | | | credit. These are often advance purchases or |
| want to talk about or admit... | | | | end-of-season clearance items that companies offer |
| Direct sales companies attract consultants with great | | | | to you at a special price. Unless you can turn around |
| income potential, which leaves many consultants | | | | and sell the product, or you know your clients will go |
| seeing dollar signs. It's not the fault of the companies | | | | crazy for it (in the case of advanced purchases), it |
| - far from it. Commission and compensation rates are | | | | makes more sense to wait it out until you can buy it |
| very clearly outlined on every consultant agreement | | | | on a regular show order. |
| and policy manual. What's missing, however, is any | | | | 4. Double (or triple) dip when possible. If your |
| training on financial management or fiscal responsibility. | | | | company allows, add your purchases to an existing |
| Again, this isn't the problem of the direct sales | | | | show order, take advantage of unclaimed host |
| company. It's not even part of the "jurisdiction" of a | | | | credits, and still get sales credits for the |
| direct sales company. Financial management is the | | | | replenishment orders you're placing. Not every |
| responsibility of the consultant, and yet, too few | | | | company allows this kind of thing, but if your |
| leaders are offering any training to help their | | | | company does, take full advantage of it. You'll be |
| organizations make sound business decisions with | | | | reducing your costs to re-stock your kit, plus many |
| their earnings. | | | | companies offer bonuses based on sales levels. It |
| Here are a few simple considerations to help you | | | | makes sense to let your own purchase count toward |
| make re-investment in your direct sales business a | | | | those levels whenever possible. Additional host bonus |
| little easier: | | | | items can later be used as booking incentives or |
| | | | other gifts - generally at no additional cost to you. |
| 1. Split your profits on a percentage basis. Even if | | | | 5. Track your deductions. Tax time rolls around once |
| you're not making a ton of profits each month, if you | | | | a year, but keeping track of the money you spend |
| allocate specific portions of your income for different | | | | should be a regular occurrence. Mileage, inventory, a |
| purposes (debt reduction, savings, team recognition, | | | | business cell phone and other expenses can add up |
| supply replenishment, etc), it becomes easier to stay | | | | during the year yielding a substantial deduction come |
| consistent in reinvesting appropriately. It's hard to set | | | | tax season. Talk with your tax preparer or book |
| aside $20 from every show when you have that | | | | keeper for additional information. |
| "bomb show" that only has $100 in sales. Opt instead | | | | Direct sales professionals serious about running a |
| to set aside a specific percentage of each profit | | | | profitable business scrutinize every expense and look |
| check to make things easier. | | | | for a solid return on their investment. If you want to |
| 2. You don't need every new-fangled seasonal | | | | make the most of every dollar you earn, you owe it |
| product. When you're strapped for cash, one of the | | | | to yourself to look closely at every penny you're |
| worst things you can do is plow more money into | | | | spending in your direct sales business. |