14:43:45 [annelise] we've got 2 or 3 people who started their own companies vs being reps here right?

14:44:39 [ModKay] I own my own company and signed rep #327 today http://www.MyPreciousKid.com 

14:44:40 [annelise] I'm curious if you started out with planning to have reps eventually, not considering the possibility, or advertising for reps from almost the start...

14:45:18 [annelise] yes Kay, I consider you an inspiration there

14:45:20 [ModKay] never planned for reps was just me the first 6 months, then got asked how others could do my business so thought I would take a couple reps

14:45:38 [ModKay] never imagined I would be here in 2 years

14:45:38 [beansnmore] I started my own company a year ago am just now adding reps. I debated back & forth about adding reps

14:45:40 [annelise] so you let it grow organically

14:45:59 [ModKay] yes

14:46:25 [ModKay] I made a few mistakes (like offering 50% off) and underestimating what it would take in time and cost to train and encourage and manage reps

14:46:32 [annelise] It's one of the things I'm considering, but I would want to at least try selling some myself first to make sure it's possible, not sure what time frame to use.

14:46:33 [ModKay] but overall it has gone very well

14:47:02 [annelise] 50% off is only if they are being straight wholesalers, if you have to support them it's too much.

14:47:17 [ModKay] I agree you have to be able to sell in all the ways you want to teach them to sell. I held parties before I trained them to hold parties. I created sales materials I needed before giving them to the reps

14:47:23 [annelise] even then it depends on your costs whether you could do 50%

14:47:36 [ModKay] I know that now annelise but too late to change

14:47:59 [ModKay] cost factor is the other thing. You MUST have 4 times you cost equals retail or you will lose money

14:48:09 [annelise] That's why I'm considering the rep plan stuff before I start

14:48:16 [ModKay] most underestimate the costs

14:48:37 [annelise] 4x I can do, buy I've seen 5x recommended for party cost

14:48:38 [ModKay] 4 times cost if you are giving 30% commission

14:48:47 [ModKay] 5x is better

14:48:59 [beansnmore] If I set my prices at 4 times over cost, I will be way above my competition on a lot of products.

14:49:17 [ModKay] taking others products to add to your line has proved tougher because 50% off plus shipping is usually the best I can get

14:49:40 [ModKay] then you either have to find a way to lower cost and deal with higher retail

14:49:52 [annelise] If I knew I would not ever have reps I would probably use 3x, if I use 5x I'd be expensive, 4x - makes me in the same ballpark as specialty stores so that's cool

14:50:06 [ModKay] that is the struggle, anything less than 3-4 times if giving 25-30% will lose you money

14:50:33 [annelise] because you definitely have more costs than the product

14:50:41 [ModKay] as you grow and are buying larger quantities your costs will reduce

14:50:55 [ModKay] true anneleise

14:51:18 [ModKay] so plan ahead now and count in the COST of labor to make up the products as though you were paying someone else

14:51:27 [annelise] So is your markup seeming to work for you - beans?

14:51:34 [ModKay] not just cost of the goods but cost + labor = actual cost

14:52:20 [annelise] yes, I'm looking at having to repackage from bulk, and I did calculate the time, because if it goes well I'd need to pay someone else to do it

14:52:21 [beansnmore] the markup has been working for me but I didn't add in labor & time when figuring the rep program.

14:52:56 [ModKay] http://www.pdf995.com/ this turns your catalog to puff

14:53:31 [annelise] Still would want to find a way to keep those people as contractors not employees for overhead reasons... Kay you use contractors (VAs) for that sort of thing I think you've said.

14:53:45 [ModKay] yes I have to pay some else to assemble now at so much per item - I use a virtual assistant with her own business license and multiple clients so I can legally use her and not do the employee thing

14:54:13 [beansnmore] example: a product I currently charge $1.50 for, if I did the 4x then it would go up to 3.20. My competition sells them for 1.60. I don't see how I could compete with that

14:54:19 [ModKay] a contractor must have their own business license, look like a business, have at least 2 customers

14:54:35 [ModKay] and file a schedule C

14:54:45 [annelise] I've done the employee thing with other businesses, so I know how, but it's a burden

14:55:08 [ModKay] beans if you do the rep thing you will need to charge more, if just selling yourself then you can charge less

14:55:23 [ModKay] and employees are expensive

14:56:23 [annelise] right so either find someone who is an independent business already or help make sure they do it right - find them another client... because IRS gets picky about people calling employees contractors. It's a major topic if you go to their payroll tax classes.

14:56:38 [beansnmore] hhmmm now I am rethinking this whole thing.

14:57:00 [beansnmore] I just don't think people would pay 3.20 for a single packet of coffee

14:57:08 [annelise] beans - that is tight ... means you are actually doing less than 2X now!

14:57:53 [annelise] will you be able to reduce your costs with a bigger volume of business?

14:58:16 [annelise] uhoh I have to go

14:58:26 [beansnmore] yes annelise but people are buying. I had it at 2.25 and no one was buying

14:59:00 [beansnmore] no. The only reduction I get is with shipping. If I order a certain $$ amount at a time, they pay for shipping instead of me.

15:00:41 [ModKay] look at Tupperware vs Rubbermaid tw is higher with rep program but sells because of the customer service

15:01:20 [ModKay] selling someone else's products thru a rep program is hard. I can usually only do it my products

15:01:23 [beansnmore] true, and that lifetime warranty

15:01:32 [beansnmore] oops lol TRUE

15:01:53 [annelise] Stuff sold through party plans will always be more expensive than straight retail for these reasons... so they have to compete on image and or quality, not price

15:01:55 [ModKay] the other thing a rep program does is gets your resp buying and using your products and telling others

15:02:05 [ModKay] YES

15:02:24 [ModKay] so if you want a rep program you may need to search out other products and suppliers

15:02:36 [annelise] If I start my company assuming no reps ever I would charge less, but then I'm stuck with a sales force of one.

15:02:50 [beansnmore] My thoughts on adding reps was that it would get more exposure for my company and products

15:02:59 [ModKay] I handle 3 vendors of other products but negotiated a better price because of my number of reps

15:03:07 [annelise] it's a trade off, one of the reasons I haven't' started quite yet is putting much thought into the ramifications of decisions I make now

15:03:16 [Avahosting] one is better than none

15:03:22 [ModKay] yes annelise it is a trade off but still can make a profit

15:03:43 [ModKay] yes reps give exposure but add cost and MUCH time

15:04:02 [annelise] one is better than none, but 300 like Kay has is probably better - though it depends on your margins, products, and quality of recruits

15:04:04 [ModKay] I way under estimated the time it would take

15:04:11 [ModKay] I work nearly full time

15:04:29 [annelise] You could end up selling much volume of product and still not make any money

15:05:01 [Avahosting] true

15:05:03 [ModKay] yes annelise I have had to learn to balance it and stay out of debt. The cost of inventory is the big challenge

15:05:18 [annelise] Consultant dude says expect it to take 3 years to actually be profitable with a party business, same guy who says use 5x pricing

15:06:04 [beansnmore] Cost of inventory and advertising is my major problem right now. Before we moved, I had a part time job to help purchase inventory. Now I don't.

15:08:04 [annelise] If a full blown rep program/discounts is too expensive -- then an in-between thing is to have some sort of affiliate or referral bonus or discount - and volume discounts

15:09:02 [annelise] If you can't get volume discounts yourself, you probably want to look for some replacement suppliers

15:09:55 [ModKay] I made a small profit last year and am now making profit each month and have no debt. I buy on a credit card that gives me flight miles and pay it off each month

15:09:59 Tree enters this room

15:10:34 [annelise] so even though this kind of took you by surprise - you are doing something's right for sure

15:10:56 [ModKay] thanks - well and God's blessing

15:10:59 [annelise] you are in year 2 or 3 right?

15:11:26 [ModKay] for me I think the strong suit has been my knowledge of direct sales and running a business

15:11:34 [ModKay] just had 2nd birthday in May

15:11:51 [annelise] had you sold for other companies before?

15:11:52 [ModKay] took first reps Jan 2002

15:12:18 [ModKay] YES Tupperware in the 70's as a manager and Discovery Toys in the 80's as a manager

15:12:39 [ModKay] and I am good at creating sales materials and desk top publishing

15:12:56 [annelise] I have business experience, but not much sales experience.

15:13:09 [ModKay] let me give you another tip - do not offer rep sites offer your main site unless you are not selling retail on your site

15:13:32 [annelise] not sure I understand how you mean the last statement?

15:13:38 [ModKay] otherwise your reps customers get to you not to them. YOU ant them servicing their clients not you

15:13:57 [ModKay] I do not have rep pages that look like http://www.mypreciouskid.com/rep123 

15:14:05 TracyGrace enters this room

15:14:19 [ModKay] because I sell retail too I want them to have their own web site and domain name

15:14:25 [annelise] being the geek I am, I have been thinking about how to do rep sites and reassure them that they'll get credit for their customers

15:14:29 [ModKay] hi tracy

15:14:51 [ModKay] that way if they ever quit MPK then they still keep their site, their traffic, their customers

15:15:16 [annelise] I definitely want them able to use their own domain names

15:15:22 [beansnmore] well, I need to go. I have to get some things together to bring to the post office. I have learned a lot and have much to think on.

15:15:24 [ModKay] anne the only way with affiliate sites is to stop selling retail on your site and have all orders go thru the reps

15:15:24 [Avahosting] Hi

15:15:31 [annelise] As far as company specific content I will be picky

15:15:32 [ModKay] thanks beans

15:15:37 [annelise] eek must run

15:15:53 [Avahosting] bye annelise

15:15:55 [ModKay] yes I have to approve all sites and their are specific rules about them using the name, logo, products and photos

15:16:13 [ModKay] but I teach them to build their own site traffic

15:16:36 [ModKay] hi tracy we have been talking about building a rep team and before that recruiting. How can I help you

16:54:26 [MandyJoyce] Where can I find a Consultant contract to look at, and be able to apply it to my business so that I can start hiring consultants to sell my product?! I am having problems writing one up, that sounds right!

16:54:45 [MandyJoyce] I just want to be sure I mention everything that needs to be mentioned in a Contract! *S*

16:55:12 [MandyJoyce]

16:55:23 [annelise] you could peek at whoever will show you theirs.

16:55:56 [MandyJoyce] Well, I have asked my girlfriend who sells H&G party to show me hers. That's a HUGE business, corporation, etc. Would the same things still apply?!

16:56:07 [cindiyp] oh shoot someone has those on their site a bunch of forms and stuff

16:56:08 [annelise] I would probably want some expert review or lawyer if I possible

16:56:18 [ModKay] you can see mine

16:56:23 [MandyJoyce] *jumps up and down at Cindi* WHoo hoo!!!

16:56:32 [MandyJoyce] May I Kay?! Do you have it on your site hon?

16:56:37 [ModKay] the thing is that who ever you look at do not copy it word for word - copyright issue

16:56:58 [annelise] Read the agreement and see. The legal parts would be the same -> if from the same state

16:57:01 [ModKay] I had a new site take mine word for word UGH

16:57:05 [ModKay] yes it is on the he site

16:57:13 [MandyJoyce] Yeah...I knew that about the copyright stuff. I just want to make sure I "Cover" all my bases with the proper things..ya know?

16:57:20 [cindiyp] I think it's either on I women or WNC I can't remember

16:57:23 [annelise] Some things would be company policy decisions

16:57:29 [MandyJoyce] REALLY KAY?! *shakes her head* That's a shame!! A real shame!

16:57:50 [cindiyp] well you just take what fits your situation and leave the rest out

16:57:51 [ModKay] yes she had copied products and much of my text. I wrote them and at least they changed my words

16:57:58 [MandyJoyce] Can you give me a link, or email me the link Kay?! amandajoyce@citynet.net

16:58:04 [MandyJoyce] Good for you Kay!

16:58:33 [MandyJoyce] Yep..I am just having trouble with how to word commission, etc. Not much of a "writer" persee'

16:58:45 [ModKay] I just emailed you the word version

16:58:51 [MandyJoyce] I understand it all...just can't put it in terms that sound good LOL

16:58:52 [cindiyp] I just got a contract from a travel supplier to use their website on my site and it's 7 pages long and full of language I can't even begin to understand. So I'll just type up the itineraries myself and put it on. That I can do with no problem.

16:59:11 [ModKay] I suggest letting them buy wholesale and sell retail rather than paying them commission

16:59:16 [ModKay] easier for taxes

16:59:25 [MandyJoyce] I hear ya Cindi *S* Well, I am still learning as I go!

16:59:43 [ModKay] be a wholesale provider for them

16:59:48 [annelise] it saves you having to do their sales tax

17:00:15 [annelise] which reminds me, when I had to leave we were getting to the idea of rep's sites...

17:00:32 [MandyJoyce] Yeah...I have decided on the WHOLESALE Way Kay...that you and I discussed on the phone. However, to give them an incentive, and a downline...

17:00:59 [MandyJoyce] I want to be able to give them up to 3 girls under them...and for each girl...they receive another 5% off for each gal.

17:01:04 [annelise] do you just leave them to put whatever on their site and have their own order processing?

17:01:05 [ModKay] that works, remember you have to give 1099 on commissions and prizes over $600 a yr

17:01:26 [MandyJoyce] Soo that way...they can work up to 50% off of our products...but starting out is 35% wholesale purchase

17:01:26 [ModKay] anne we can talk about it if you like

17:02:04 [MandyJoyce] I have to provide a 1099...gotcha! for how much they purchase wholesale from me....

17:02:19 [annelise] so the 5% comes off their rate - rather than a commission on the downline's sales?

17:02:39 [annelise] if that way, it isn't 1099, it's just your non-taxable sales

17:02:46 [MandyJoyce] I would prefer that they use my site for ordering....but I don't want to discourage them building their own site...

17:02:50 [annelise] how much they make is up to them

17:03:13 [MandyJoyce] Yep Annelise! I though that way....it would give them an incentive to strive for 3 ppl under them....etc.

17:03:36 [MandyJoyce] BUT....The problem is....if they get more than 3...how do I reward them?! That's where I am stumped!

17:03:55 [MandyJoyce] I can't really give them more than 50% off retail..ya know?!

17:04:15 [cindiyp] you've got to make money too

17:04:41 [annelise] Well either you start them with less and give less per person under, or you see it as something that's not supposed to get mega-huge

17:04:51 [MandyJoyce] Exactly! Soo KAY..do you have any suggestions for more than 3 down line under the gals?! How would I reward them for MORE than 3 ladies?

17:05:10 [MandyJoyce] Yeah...good point Annelise!

17:05:15 [annelise] If you are going for mega-growth you need a different structure... If you want more calm controlled growth could be okay.

17:05:30 [MandyJoyce] Without cutting the 50% anymore?

17:06:10 [MandyJoyce] Well, I am striving for 10 reps in a 6 mon. period. I just don't want to have to get into the whole COMMISSION thing....*shys away from that*

17:06:19 [annelise] It's one of the models I've played with in my head... though I was considering 2% for each person taking them from 30%-50% so that is 10 people. It's probably not what I'll go with, but it's a thought

17:06:35 [annelise] commission takes much more tracking work

17:06:52 [annelise] not just the 1099 issue

17:07:37 [MandyJoyce] Exactly!....Not that I am beneath doing that.....but I want the gals to make some CASH too! I think they can make more this way!...However....They prob. could make more...in the long run...by getting say...20 girls signed up under them, etc....*shrugs* I don't' know..

17:08:03 [annelise] This sort of structure simplifies your work load - saves you money,

17:08:14 [MandyJoyce] I want to "Grow"....but I want some "Major" control too.....without it getting too out of hand.....

17:08:23 [MandyJoyce] True Annelise

17:08:44 [annelise] but it doesn't encourage them to actually support and actively encourage their down lines - so it brings less in potentially also

17:09:32 [annelise] Part of it is deciding what the company is for and who you want as reps.

17:10:05 [annelise] Do you want people who are mostly interested in selling product or in big growth?

17:10:28 [annelise] seems like a core personal decision for the founder

17:10:31 [MandyJoyce] Exactly! I don't want to discourage them...but I need a "better" reward for more than three reps?! Maybe...Once they hit 10 reps...they will receive and extra 10% off their monthly purchase?! Or not...LOL

17:11:10 [annelise] the question then is - is your markup enough that you can afford to do that?

17:11:14 [MandyJoyce] I want to focus on ppl who love to cook, share recipes, and want to make a few dollars too! I want the reps to LOVE what they do, and encourage them to Sell a USA made product and a down home country good product too!

17:11:40 [MandyJoyce] Well, we are looking at the figures a lil closer now Annelise....Not sure if we can do that or not....Just an idea for now *S*

17:11:42 [annelise] or maybe instead of number of reps they have - reward them with a discount if their reps each get 3 people,

17:12:06 [annelise] what are they selling ?

17:12:09 [MandyJoyce] AHhhhhh...*thinks* Good thinking' Annelise

17:12:14 [MandyJoyce] Food *S*

17:12:24 [MandyJoyce] http://www.family-fixins.com 

17:12:26 [annelise] yum

17:13:05 [ModKay] sorry phone again

17:13:06 [MandyJoyce] We manufacture and package everything our selves. These are handed down family recipes, that we have made into easy to fix mixes. We want our reps to know the history of each recipe, etc. A lil too much to ask?!

17:13:17 [MandyJoyce] That's okay...Go the file KAY...THANK HON!!!

17:13:43 [MandyJoyce] Will read it after bit, and pick out things I have forgot in mine LOL....So far it looks like I have MOST of it in mine...that's a good thing!

17:14:28 [annelise] That's a reason I've considered the model being to raise what their discount is -- it gets you people who know they only get paid on their own sales of product, people who just want to recruit a big down line and be millionaires will go somewhere else.

17:14:32 [MandyJoyce] We also want our reps to represent our product like we do.....A Family tradition type deal. We want them to know 3-5 diff ways to fix each product, etc....that's what sells it.

17:14:47 [annelise] this could be a good thing if you don't really want that type.

17:15:03 [MandyJoyce] Okay Annelise..so explain to me....what do you mean...Model, discount, etc...

17:15:42 [annelise] model -> business model -> how your structure is set up, there are SO many possibilities

17:15:44 [MandyJoyce] Cindi is awful quiet *S*...where ya at hon?! LOL

17:15:57 [MandyJoyce] GOTCHA Annelise!

17:16:04 [MandyJoyce] See...not good with business lingo *S*

17:16:17 [MandyJoyce] Soo how are you keeping the money grubbers away then *S*

17:16:23 [annelise] discount - I'm using that term instead of commission, because with a commission they pay you, you have to pay them back, and then you have to give 1099

17:16:36 [cindiyp] I'm just listening and reading mail too

17:16:50 [MandyJoyce] Sooo how do you get around NOT doing a 1099?

17:16:57 [cindiyp] what about people paying with credit cards

17:17:01 [MandyJoyce] Okay hon...Just wondered where you were Cindi *S*

17:17:08 [annelise] discount - they only pay you their price and get to keep the rest right away. You don't have to send them 1099, it is their responsibility as business people to do that.

17:17:37 [MandyJoyce] I can accept Credit cards....Through my bank. I have the lil' slider machine, with my die plate, etc. They give me slips...*The bank that is), etc.

17:17:46 [ModKay] you will still have to send them recruit commission on their down line

17:17:48 [cindiyp] like in Tupperware if they pay us with check we fill in order online and they just take what we owe so it's upfront payment. if they pay with CC then they have to pay us back

17:17:52 [MandyJoyce] They take 3% per transaction by credit card purchases...

17:18:00 [annelise] Now if you have a structure where there are incentives besides their special pricing -- those extra things you would have to put on a 1099 if the value was more than $600 in a year

17:18:29 [ModKay] they have to get their own CC merchant account.

17:18:36 [MandyJoyce] Recruit commission on their down line?! Okayyy..speak to me..explain please!

17:18:41 [annelise] It sounded like she wasn't actually paying on the down lines sales

17:18:44 [ModKay] YOU can not process credit cards for them

17:19:08 [annelise] If you pay them 5% of what their down line sells, then you need to give them a 1099 for that part

17:19:17 [ModKay] if you give them a percentage of their down lines sales then you are sending them a check each month - that goes on 1099

17:19:21 [MandyJoyce] GOTCHA Annelise!

17:19:26 [ModKay] yes

17:19:27 [annelise] If you just make the price on what THEY buy 5% less then you don't

17:19:33 [MandyJoyce] Gotcha Kay *S*

17:19:41 [ModKay] and keep it simple the more levels the harder your bookkeeping

17:19:43 [MandyJoyce] Gotcha

17:20:18 [ModKay] Anne so you mean they get 35% off retail normally and 40% off retail with a recruit at a certain level rather than commission n the recruits sales

17:20:24 [MandyJoyce] Okay..let me ask this then Kay....Did you see my question about rewards for more than a down line of 3 ladies?! What kind of incentive should I offer if say...a lady signs on 6 ppl...and she is already purchasing my products for 50% off?

17:20:39 [annelise] That's what I think Mandy was describing

17:20:54 [annelise] More than 50% is really strange

17:21:01 [ModKay] I find my recruit commissions are very minor especially as they must buy $50 wholesale each month to get the recruit commissions (make a level they must make)

17:21:07 [MandyJoyce] Kay...That's how I am planning on doing this.....Let them buy for 35% at first...1 recruit..40%...2 recruits..45%...3rd one 50% off......

17:21:18 [annelise] I used to have a retail store. 50% is standard retail commission

17:21:18 [ModKay] Mandy I would not do that

17:21:40 [ModKay] no because they will recruit people who never sell, You want to reward sales not recruits

17:21:42 [MandyJoyce] *listens*

17:21:50 [annelise] some things might have a smaller discount, but something that pays more is weird

17:21:54 [MandyJoyce] Ahhhhh *Bingo*

17:22:12 [MandyJoyce] Okay...sooo how would I reward SALES?! give me an example?

17:22:23 [ModKay] have a set profit discount and you can change it for sales levels

17:22:35 [annelise] The variation I was thinking was that after X $ of sales - by themselves or the down line they get the better price.

17:23:11 [ModKay] rep gets 35% off her orders, when she has 5 recruits who combined order $1000 a month she gets 40% off her next months orders instead of $35 ----still a bookkeeping nightmare though

17:23:15 [cindiyp] the wholesaler I use pays us on a scale of how much we've ordered. Then they pay us on our down lines sales. Nothing just cause we signed someone up

17:23:37 [MandyJoyce] Ooh okay..for example...they buy wholesale from me for 35% discount. Sell by my retail prices. If they purchase 200.00 - 250.00 a month...then they would say..get an additional 5% off?

17:23:41 [MandyJoyce] Something like that?

17:23:47 [cindiyp] you could go to http://cindyp.agshomebiz.com and see how they pay

17:23:57 [annelise] it would be illegal fro them to actually pay you money for a signup,

17:24:15 [ModKay] I give reps 50% off retail hen ordering $100 retail at one time or more - 25% off smaller orders and 5% on recruits orders but they have to order $50 wholesale ($100 retail) themselves that month

17:24:37 [MandyJoyce] Hmm gotcha!

17:24:41 [annelise] something - how you structure that depends on how much bookkeeping you can mess with and keep straight.

17:24:52 [ModKay] Anne illegal for who to pay who for a sign up

17:25:08 [MandyJoyce] Ahhh yes...bookkeeping....a nightmare in other words LOL

17:25:27 [annelise] Illegal to say you get $100 just for recruiting a sales person, but I've seen people say that

17:25:47 [MandyJoyce] soo how do you handle a down line Kay?! Do you write commission checks?

17:26:02 [annelise] You could earn a commission on what the new recruit buys to start up-- but technically must be careful how you phrase it.

17:26:05 [ModKay] well you can give a sign up bonus but it goes on a 1099

17:26:22 [ModKay] the goal is sales so only give incentives for sales

17:26:36 [ModKay] the recruit bonus should be tied to the recruits sales

17:26:37 [MandyJoyce] *listens some more...*

17:26:56 [ModKay] I do write commission checks but not many

17:27:06 [annelise] If it's tied to their sales, then it is legal

17:27:45 [MandyJoyce] Ahhh okay! Soo how many of your gals/guys are say...."Down lines for others" give me a percentage?

17:28:10 [annelise] Are you using software to track down lines and purchases or trying to do it manually Kay?

17:28:11 [ModKay] if I was doing it again, I would give 35% off retail, and a manager level that is something like make manager with 5 recruits active and $1000 minimum group orders and get a 5% managers commission on sales

17:28:38 [MandyJoyce] Nice....I see.

17:28:52 [ModKay] I did it manually in a notebook forever. Now I am in QuickBooks but still have to manually pull up monthly sales then match to up line an then check for their sales

17:29:00 [annelise] that sounds doable

17:29:17 [ModKay] it would require an expensive database system on the online ordering page to track it automatically

17:29:37 [annelise] There are software programs to do that, not sure how much they cost... I'm generally goofy enough to want to roll my own

17:29:43 [ModKay] QuickBooks helps tremendously - GET it and start your system with it

17:29:53 [ModKay] several thousand dollars

17:29:59 [annelise] I have QuickBooks

17:30:10 [MandyJoyce] I see. Sooo what would your suggestion be for me.....considering wanting to do the consultant thing....not wanting to go HUGE right now...say get 5 gals selling for me.....

17:30:22 [cindiyp] have to go do dishes I'll check back in a bit

17:30:28 [MandyJoyce] Just sell to them at 35% discount for now....

17:30:35 [annelise] making it do the down line thing is not something it's built for really

17:30:38 [ModKay] QB gives me a report by rep or rep totals etc at the end of each month. I enter the orders as I process them, QB makes the receipt for the order and I am done

17:30:52 [MandyJoyce] and what about if they "recruit" someone.....

17:31:10 [annelise] Then you have a list of who is under who and add it up?

17:31:12 [MandyJoyce] Don't' have QB yet....YET that is *S*....

17:31:17 [ModKay] I did not offer the recruit thing until the gals started asking for it. I do one level only

17:31:29 [ModKay] yes Anne\par

17:31:32 [cindiyp] start out slow and plan for growth make sure you have a plan in the background in case it takes off running. There's nothing worse than a company grows too fast and can't handle the orders

17:31:45 [MandyJoyce] ONE level only! Hmmm.

17:31:54 [MandyJoyce] Good idea Cindi

17:32:02 [annelise] only one level makes the tracking easier, esp since you are primarily doing it by hand.

17:32:24 [ModKay] start with the 35% off retail thing and have a plan for the recruit thing

17:32:41 [ModKay] plan for cost of having to get help NOW

17:32:47 [cindiyp] I'll be back

17:32:49 [ModKay] I am glad I did

17:32:50 [annelise] Or promising people all goodness if they have lots of recruits and then telling them that they CAN'T bring in anyone new...

17:33:00 [MandyJoyce] *thinks* Okay..so I do the level one thing.....and have a 'reward/discount" system established for their sales?

17:33:08 [ModKay] yes

17:33:41 [MandyJoyce] So if they bring me in say....per person....500.00 a month in sales..they can earn up to 50% off ,or 40% , or whatever I set it at?

17:33:48 [ModKay] but tie the recruit bonus to group sales or managers sales (make them work for it) and make them train their group for the bonus, they need to motivate the group to make the group sales

17:34:01 [MandyJoyce] Whatever I set it at that is.....

17:34:09 [MandyJoyce] Ahhhh!

17:34:25 [MandyJoyce] BY doing the One level status thing.....does that discourage ppl to recruit?!

17:34:57 [annelise] It's some encouragement, but not as much as multi-level recruiting would be

17:35:11 [ModKay] yes you can say 35% start, 40% off when they reach 3 recruits and $1500in group sales, 45% off when they reach 5 recruits and 2500 in group sales but then you have to finish month end books quickly to know how much they get to deduct and how do you adjust the change in pricing for different levels

17:35:49 [annelise] It would definitely affect what kind of people you brought in and the tone of the company, as well as the bookkeeping and legal ramifications, so consider if you want it that way or not. Sounds like you may not.

17:35:57 [ModKay] for me easier to have them all at one discount rate with a bonus check for the commission after I close the books

17:36:27 [ModKay] if you have a bookkeeper then it might not be an issue - the 1099 thing is no big deal

17:36:45 [MandyJoyce] hmmm....I hate to discourage anyone that wants to sell....but I don't' necessarily want to get myself in a boat where ppl are grubbing for money either....

17:37:01 [MandyJoyce] Yeah...I like the one level deal...for now!

17:37:13 [ModKay] start with one you can add levels later

17:37:18 [MandyJoyce] hang on...Son is peepee in potty

17:37:27 [ModKay] but make it a sales level to get it - not just automatically

17:37:52 [annelise] there would be more point to it if it is tied to performance ie sales

17:38:17 [ModKay] 35% off on personal orders, plus a 5% recruit bonus on first level recruit when recruiter also has $200 in orders

17:38:59 [ModKay] you don't want people to come in and recruit only - they can not train to sell if they are not selling - also spell out what they are doing for the profit - training and encouraging their recruits

17:39:18 [ModKay] will you be selling retail too or just thru the reps

17:39:43 [annelise] If they are only recruiting - it makes you more of a pyramid, so I would want to avoid those too.

17:39:55 [MandyJoyce] I'll be selling retail as well.....

17:40:18 [MandyJoyce] my goal is to NOT have to do anymore in home parties myself personally. T o have my girls selling for me.

17:40:34 [ModKay] then you have to be careful - how do you keep their customers from coming to you

17:40:53 [ModKay] what protection if one of their customers comes and orders thru you

17:40:55 [MandyJoyce] True....

17:41:16 [ModKay] I ask every customer where they heard of us and if they came thru a rep - if they came thru a rep I send the order to the rep to fill

17:41:33 [MandyJoyce] Hmm *thinks* None really...how do I avoid that. I am selling to shops too. Not locally, but to finer gift shops, etc.

17:41:37 [annelise] I would have customers marked in the database with who it was they first ordered from, so as long as they use the same name and all it would be automatic.

17:41:40 [ModKay] and have them make their own sites not sites on your server

17:41:43 [MandyJoyce] OOooooh!

17:41:57 [ModKay] if you have a database

17:42:04 [annelise] Tupperware seems to use cookies, if you get there from someone else's link they ask if you want to change reps and who they have as your current one

17:42:18 [annelise] well I'm a database geek

17:42:30 [MandyJoyce] Hmm I see. Okay...there is still a lot for me to consider I see.....Haven't thought of EVERYTHING *S*

17:42:33 [ModKay] but TW does not sell retail - only thru a rep - if no rep they have you go thru the locator to find a rep

17:42:41 [MandyJoyce] *giggles at Annelise*

17:42:58 [ModKay] cookies only work if you come thru another link on a site

17:43:37 [MandyJoyce] I see. *thinks*

17:43:37 [ModKay] with mals-e free shopping cart there is an affiliate program but not perfectly accurate

17:43:51 [annelise] I'm also inconsistent... If I joined a company I'd insist on being able to make my own site... with the specific types of products I'm considering I would want to force people to use slightly personalized versions of MY site, because I would want to control their product claims

17:43:59 [ModKay] and I do not want to process orders for my reps. I want them to do the customer service for their own customers

17:44:12 [annelise] because I'm also a biochemist geek and truth freak

17:44:27 [ModKay] I have to approve all sites

17:44:30 [annelise] you see why it's taking me some time to sort out if I want to do this and how.

17:44:45 [ModKay] you can offer a template or have one web designer offer the sites and templates for you

17:45:05 [MandyJoyce] Sooo,I could make them get their OWN sites...if they choose...use their own URL on their OWN business cards, etc

17:45:23 [ModKay] I am trying to encourage them to be different from me, not a cookie cutter. I want them to find their niche, their name brand, to be a store that just happens to sell my products

17:45:33 [ModKay] YES

17:45:35 [MandyJoyce] And all orders would come through THEM....and not me....But they would still have to place their WHOLESALE order th

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