15:06:36 [ModKay] please introduce yourself

15:06:44 [ladybead] yes I have to go get my son in 15 minutes

15:07:07 [ladybead] my name is Rose and I do foot jewelry for beach weddings

15:07:10 [puremom] my name is Diane

15:07:20 [puremom] I design infant/toddler apparel

15:07:28 [ladybead] mom of 2 kids 10 and 11

15:07:32 [ladybead] hi Diane

15:07:47 [puremom] hi rose

15:08:04 [puremom] I have 4 children ages ranging from 14 to 2

15:08:11 [ModKay] awesome - do either of you have a rep force or want a rep force

15:08:38 [ladybead] I am considering starting one

15:08:39 [ModKay] I am Kay Green, class moderator, owner of MyPreciousKid.com family safety ID products, with 150 reps

15:08:45 [ModKay] I have 4 kids ages 3-20

15:09:01 [puremom] I'm not sure as of yet what I am really doing if I want to go that far, I wanted to look into it to see what it was all about

15:09:37 [ladybead] I right now have 40 people who have contacted me regarding selling my jewelry wholesale

15:10:03 [ModKay] wonderful

15:10:10 [ladybead] and am not sure how I want to handle this

15:11:27 [puremom] rose I would like to see your site if you have one?

15:11:36 [ladybead] http://www.ladybead.com 

15:11:53 [ModKay] just a sec

15:11:54 [puremom] ty

15:12:56 [puremom] those are beautiful, but can you design just for everyday wear, I love these

15:13:22 [ladybead] they can be made in endless ways

15:13:23 [puremom] hi Jules

15:13:28 [puremom] oh great

15:13:48 [ladybead] I have just gotten in touch with a manufacturer and he is sending me my first 400 pair

15:14:15 [puremom] wow

15:14:19 [Jules] hi! )

15:14:31 [ladybead] hi Jules

15:14:41 [Jules] sorry, I have no clue how that little face got there! LOL

15:14:53 [puremom] lol

15:14:58 [ModKay] well lets talk about the different ways you can handle this.

15:15:06 [tlmivy] Hello, I am the newbie here.

15:15:20 [puremom] hello

15:15:23 [ladybead] hi

15:15:25 [ModKay] YOU can sell wholesale to other existing businesses. They will expect 50% off retail and a $100 minimum is industry standard

15:15:49 [ladybead] ok

15:16:10 [ModKay] then it is up the that business to decide how to sell, where to sell and how much they want to mark up your products

15:16:27 [ladybead] right

15:17:01 [Jules] sorry to interrupt, but you also need to be sure that your products are priced where it will still be worth your while to sell at a 50% discount

15:17:17 [ladybead] yes indeed

15:17:29 [Jules] that is the problem I ran into. I tried wholesale for awhile, but it just wasn't worth my time to sell my pieces at 1/2 off...so now I just do drop-shipping.

15:17:32 [ModKay] OR you can sell thru a rep program (a business owner could become a rep) and the rep buys wholesale from you (usually 20-50% off retail). You provide sales materials, encouragement, training, ongoing support. There will probably be a sign up kit fee, a sales quota, and you say how and where the

15:17:42 [ladybead] I have a guy in Las Vegas who wants to set up accounts for me

15:18:04 [ladybead] Jules what do you sell?

15:18:06 [ModKay] product is sold and what prices

15:18:25 [ladybead] I am considering drop shipping as well

15:18:34 [Jules] I create jewelry too. ) I use a wire-wrapping technique.

15:18:47 [Jules] there is that silly face again! weird...

15:18:56 [ModKay] pricing is a major issue. To wholesale you must be able to do 4 times cost of good plus labor = retail

15:18:57 [ladybead] yes I think I have seen you site very nice

15:19:19 [ModKay] any less than 4 times and you will lose

15:19:22 [Jules] thank you! I love your foot jewelry as well, VERY creative and elegant! Do you make it yourself?

15:19:33 [ladybead] so 4 x what the materials are and cost to make?

15:19:41 [ladybead] yes

15:19:51 [ModKay] Jules how did you manage to get here with a new baby and a toddler under foot LOL

15:20:19 [Jules] I just got Micah down for a nap & Caleb is watching a Thomas video...he was an angel at the grocery store, so I promised him a video when we got home.

15:20:19 [ModKay] cost plus labor to make (as though you are paying someone else to make them) times 4

15:20:25 [ladybead] I will be right back have to get my son from school

15:20:43 [Jules] yes, very good point...LABOR is a big deal especially when your products are so labor intensive

15:20:52 [ModKay] ok

15:21:27 [ModKay] a wise person told me to plan now to have someone else make my products as I will grow to need that - if you do not count labor now you will not be able to keep up

15:22:03 [ModKay] most new companies under price their items and do not have enough profit to keep going

15:22:12 [Jules] I have found that drop-shipping works really well for me. It's only a 20% discount (so it's still worth my time) & since my pieces are custom made, it works great for the store offering it too.

15:22:32 [ModKay] so if you want to retail an item at $10, your cost (including labor) must be $2-2.50

15:22:53 [ModKay] yes drop shipping is a great option too

15:22:54 [Jules] I think it's a happy medium, finding what price you can charge (what the market will bear) and still make enough money to make it worth your time.

15:23:10 [ModKay] stores with drop ship usually want 20-30%

15:23:16 [ModKay] so true

15:23:43 [Jules] I find pricing to honestly be the most difficult part of the biz! I hate pricing.

15:24:06 [ModKay] do in my case I started out wholesaling at 50% off. When I started the rep program I offered them the 50% off with $100 minimum but under estimated the huge time factor and cost in supporting reps.

15:24:53 [ModKay] and reps did not like the $100 minimum that businesses are use to paying

15:25:10 [Jules] yes, I know you give them a TON of support. I have heard nothing but wonderful praise about your rep program from your reps. You have it set up really well

15:25:29 [ModKay] so a rep program could be 3 times your cost (including labor)

15:25:52 [ModKay] Thanks Jules - it is working but I have made some mistakes (the 50% is one of them)

15:26:13 [ModKay] so better off to start offering 25-35% off for reps

15:26:16 [Jules] but you were able to change that, weren't you?

15:26:54 [ModKay] if you are adding others products to your line for your rep 20-25% is all you can probably do, because you will get them at 50% off plus shipping

15:26:59 [Jules] The nice thing is that you are a great people person, so you get to know your reps well. That way when you have to change a policy, they know you are making a necessary decision for your business and I'm assuming they are more able and willing to work with you.

15:27:39 [ModKay] no Jules - the gals screamed when I talked about the change. So what I did was gave them 50% when they order $100 retail at one time, 25% off when they order smaller orders or drop ship to their customer

15:28:29 [ModKay] actually when it comes to the bottom dollar they do not like change LOL

15:28:44 [ModKay] hi paula

15:29:05 [ModKay] but I can make it work because I am priced ok

15:29:09 [Jules] OH! LOL

15:29:45 [ModKay] one of the changes I have made is I no longer sell wholesale to others with online stores except thru the rep program. And I no longer take drop ship customers outside the rep program

15:30:00 [paula] hello ladies

15:30:26 [ModKay] so first thing is price 3-4 times cost (including labor)

15:30:37 [ModKay] second decide how much discount you give the reps

15:30:55 [ModKay] third make sure you have sold in the way you are teaching them to sell.

15:31:12 [ModKay] so I held home parties before they did so I could create the sales materials

15:31:26 [ModKay] everyone lets give your name and URL please

15:32:16 [paula] Paula  

15:33:52 [ModKay] everyone else

15:34:28 [Jules] Julie http://www.JulesJewelry.com 

15:34:39 [tlmivy] Tracey don't have one yet.

15:34:51 [Jules] If I disappear for awhile, it is because Micah is wiggling and may wake up soon.

15:36:33 [ModKay] no worries sweetie - kiss him for me - does he like the sling - Haley lived in the sling when I was at the computer LOL

15:36:44 [ladybead] I am back

15:36:52 [ModKay] wb

15:37:26 [ModKay] so to recap - price 4 times cost - determine rep discount 20-40% - sell like you want reps to sell

15:38:00 [Jules] yes Kay, he LOVES the sling! He slept in it the entire time I went grocery shopping this morning. Thank you again!

15:38:10 [ladybead] so the reps make 20-40%

15:38:16 [ladybead] my kids loved the sling

15:38:24 twernett exits from this room

15:38:30 [ModKay] a couple thing to consider - you will have lots of little costs to add in - credit cards transaction fees 2-6%+ - shipping of products to you and to the reps - production costs - printing

15:38:33 [ladybead] depending on how much they sell?

15:38:46 [ModKay] you are most welcome Jules - it saved me with Haley

15:39:21 [ModKay] yes lady - you determine the rate - I sell to my reps at 50% off retail at $100 or more per order and 25% off retail at smaller orders.

15:39:26 [Jules] the things I never know how to figure in are non-jewelry related things like: ISP fees, web fees, internet fees, advertising, mileage, craft show fees...

15:39:36 [ladybead] so then what is the difference between a rep and drop shipping?

15:39:42 [ModKay] you will probably do better to have a set discount at 20-40% depending on your market

15:40:06 [ModKay] a rep program they sign up, buy a kit, etc

15:40:30 [ladybead] what is usually in a kit?

15:40:43 [ModKay] a drop ship to business owners is they put your products on their site and send you the order when they get it and you drop ship (without your company literature) for them

15:41:24 [ModKay] up to you what is in the kit. Mine has a color laminated sales board, a catalog, 10 pages of training materials, several copy templates, a name tag, and one $10 ID kit

15:41:57 [ladybead] so a kit is samples of what they are selling?

15:41:58 [Jules] even though my website isn't on my products for drop shipping, I still include my copyright on it.

15:42:06 [ModKay] Jules yes their are tons of business expenses directly related to your business but not the cost of goods sold

15:42:37 [ModKay] every company does it differently. I offer a $25 paperwork kit (with one ID kit in it)

15:42:51 [ModKay] plus I offer an additional $67 sample kit for those who want it

15:43:17 [ladybead] then what happens when the reps make a sale?

15:43:19 [ModKay] yes Jules I do the same thing. My product has my company name copyright on the back but not my URL

15:43:46 [ModKay] the rep for me has 2 options. They can either buy inventory in advance and fill the orders as they get them

15:44:02 [ladybead] you copyright your name?

15:44:33 [ModKay] or they can order for me to drop ship to their customer at a lesser discount

15:44:38 mamastuf enters this room

15:44:43 [ModKay] it says My Precious Kid copyright 2003

15:45:11 [ModKay] so companies have one discount for orders to the rep and a different discount for drop ship orders - some do the same for all

15:45:38 [ModKay] your choice - the one thing I have found is having 2 discounts encourages them to carry inventory

15:45:48 [ladybead] how do you keep track of everything

15:45:51 [ModKay] and reps will always sell more when they have inventory

15:45:55 [ladybead] what software program do you use?

15:46:07 [ModKay] LOL the question of all questions - one day at a time

15:46:12 [ModKay] QuickBooks

15:46:16 [ladybead] very true

15:46:23 [ladybead] me too

15:46:30 [ModKay] it lets me give a class number to each rep and lets me run reports each month on them

15:46:49 [ModKay] and my order form for them has the same product numbers as the QuickBooks

15:47:21 [ModKay] you have 2 options again - have them pay retail then give then a commission check each month - more work - more record keeping

15:47:40 [ModKay] or let them buy at wholesale (at their discount) and sell retail and keep the difference

15:48:47 [ModKay] for me I treat my program as a wholesale buying program not a direct sales company . They are responsible for keeping records of their sales and taxes - they collect sales tax in their state - they have their own business name and own URL not a affiliate page off of my main site

15:49:05 [ladybead] so reps can either do parties or be selling on line?

15:49:12 [ModKay] I teach them how to create their own business, their own name, their own branding and niche

15:49:20 [ModKay] you decide lady

15:49:36 [mamastuf] do you 1099 reps when you are drop shipping to them

15:49:39 [ModKay] my reps can sell online, offline at parties, or fairs, or booths, or person to person, anywhere they want

15:50:04 [ModKay] if you are paying commissions you have to do 1099 for any one over $600

15:50:16 [ModKay] if they are buying wholesale from you and selling retail as a business you do not

15:50:49 [mamastuf] I have a company I drop ship from and can have wholesalers under me that I can drop ship to them

15:51:37 [mamastuf] is it just like when I sell to a customer directly

15:52:08 [ModKay] so you get an order, order the stuff from your supplier and they ship it to your customer

15:52:28 [ModKay] so you are saying you can get others under you in their company too

15:53:00 [mamastuf] yes I sell to them on a wholesale basis

15:53:07 [ModKay] one thing with a rep program to consider is the record keeping. It takes me several hours a month just to do the month end reports and send tot he reps

15:53:51 [ModKay] the good thing about the rep program is it gets your name out there quickly - reps are ordering product for personal use and sales - you will grow quickly - but you have to be prepared for fast growth

15:54:17 [ModKay] and be ready to outsource some parts of your business. I can not continue to keep doing it all

15:54:46 [mamastuf] okay maybe I should back up ...I have a company I wholesale from and I can either run as an affiliate or wholesale to them but anything drop shipped from me will carry all my company labeling

15:54:54 [ModKay] the other thing is sales materials - you will need to make or have made catalogs, order forms, letter templates, post cards, recruit info, etc

15:55:21 [ladybead] wow sounds like a lot of money in printing costs

15:55:25 [ModKay] so do you have a question about it mama - not sure what you are asking

15:55:42 [mamastuf] that is all handled from the company I wholesale from including a kit put together for the wholesaler under me

15:55:57 [ModKay] it can be but you will hopefully have the reps buying from you - JULES here does all my catalogs for me and my reps - they order directly from her

15:56:08 [ModKay] then mama sounds like a great program

15:56:19 [mamastuf] it can be pre printed or left blank to stamp by the outsourcing company

15:56:56 [ModKay] super

15:57:48 [ModKay] I just want all of you considering rep programs to know they can be a great tool - just count the cost before you begin - and plan for expense, inventory cost, printing cost, etc. - be sure you have profit in your mark up

15:58:31 [ModKay] too many start without counting the cost or time and fold very quickly. I have been at it 2 years and have recruited 360 people, 150 still active and make a profit every month but I work 40 hours a week+

15:58:50 [ModKay] and I spend a huge amount of time working with my rep force

15:59:18 [ladybead] where do you live?

15:59:20 [Jules] Kay from what I know of how hard you work, I would say it was more "+" than 40! LOL But your business is awesome because of it!

15:59:41 [ModKay] also will you have a managers system?? how will you pay for that? I chose not to have a manger system because I give then 50% - it was a choice of one or the others - They still want incentives though

15:59:49 [ModKay] OREGON

16:00:00 [ModKay] Jules you are probably right - hard to count all my hours

16:00:15 [ModKay] I work most every week day and most evenings too

16:00:59 [ModKay] a rep program is about numbers too - I have 360 who have joined, 150 still on active status (what minimum will you impart to let them stay), and about 25% order each month

16:01:37 [ModKay] I have to say DO NOT DO A FREE Sign up - I learned the hard way here too. They need to put in something in order to be motivated to sell

16:01:46 [mamastuf] how do you motivate and keep track of all that

16:01:54 [ModKay] and have a monthly or quarterly quota

16:02:33 [ModKay] mama in my case I pay 5% recruit commission when their downline sells (the recruiter must have $50 in wholesale purchases that month to get the recruit bonus) - I do it all in QuickBooks

16:02:59 [ModKay] motivation for my rep is a yahoo group where they can interact - it is where I train - motivate - share - help

16:03:16 [ModKay] I occasionally offer little prizes to top ordered that month

16:03:35 [ModKay] I often run a 2 day special in the month where they can order any amount at 50% off retail with no minimum

16:04:01 [ModKay] mostly I just teach them about running a business - treat it like a business not a hobby - write lots of articles

16:04:22 [ModKay] you are welcome to use any of my articles at http://www.1234HomeBusinessGuide.com

16:04:38 [ModKay] oopos http://www.123HomeBusinessGuide.com 

16:04:42 [mamastuf] so you sign them up, they pay an entrance fee and then agree to meet a quota in exchange for a discount then you also add the incentive of sign up bonuses for recruiting...when you set up QuickBooks how do you keep up with the direct and then their downline

16:05:01 [ModKay] that is the web site I set up just for business support and free stuff for my reps and others

16:05:45 [ModKay] I only do one level. So I run a report at the end of the month of all reps who sold. Then I go thru each one and look at their upline and did the upline buy $50 that month, then send a check

16:06:14 [ModKay] if you ar new to QuickBooks I suggest taking a class. I took one at the local community college $100

16:06:54 [mamastuf] I've been there and you have some great articles..I am relatively new to ebusiness and have several areas that I offer stuff in from business to gifts and I am trying to get a major rush of traffic but cannot afford anything and have done the safelist thing and don't want to do it again.

16:07:05 [ModKay] set up QuickBooks and all your product numbers before your rep program starts LOL

16:07:26 [ModKay] traffic takes time and money LOL

16:07:32 [ModKay] link exchanges

16:07:36 [ModKay] write articles

16:07:39 [ladybead] I am new to qb will have to look for a class at the college

16:07:57 [ladybead] why do you say write articles/

16:08:12 [ModKay] it will be worth you time. Mine class was 4 Saturdays for 3 hours each

16:08:48 [ModKay] articles gives you authority as an expert in your field, other sites and newsletters pick up your articles with your bio and links - increasing your traffic and name branding

16:09:16 [ladybead] you do a newsletter?

16:09:32 [ModKay] I can not imagine tracking my reps now w/o QB - I started with a notebook system with a page for each rep - entering their ordering as I went

16:09:44 [ModKay] yes I do a newsletter too

16:10:01 [ladybead] I love qb and have been using it since June

16:10:01 [mamastuf] I have had a framing company and owned a hair and fitness center in the commerce world and used QuickBooks pro for the bookkeeping side but am new to the rep idea or affiliate business

16:10:17 [ModKay] The rep program is a great way for fast growth if you work it right and have enough profit built in and can handle the fast growth

16:10:35 [ModKay] knowing QB will benefit you though

16:10:47 [ladybead] absolutely!!!1

16:11:01 [mamastuf] what are the initial considerations for the rep approach

16:11:02 [ladybead] brb gotta run and get my daughter

16:11:26 [ModKay] I did an affiliate program first - still have 100 people in it - but it just has them put my banner on their site - and I pay commission on click thrus (mals tracks it) but does not teach them to sell my stuff

16:11:37 [ModKay] bye lady

16:11:54 [ModKay] mama not sure what you are asking??? besides what we have discussed

16:12:07 [mamastuf] what is the difference between affiliate and rep

16:12:09 [ModKay] price - rep commission/discount -

16:12:10 scrapper enters this room

16:12:39 [scrapper] hi ladies sorry I'm late just read about the chat!

16:12:47 [mamastuf] sorry I came in late I have three little ones running around here and I am determined to do this as you are so gracious to share

16:12:52 [ModKay] affiliates put my banner on their site and the software tracks any order that come thru it - send a check - a rep program they buy a kit, do parties/classes and sell the products in their own business

16:13:02 [ModKay] welcome

16:13:21 [scrapper] thanks what is our subject

16:13:22 [mamastuf] what software do you use or do you sub this out

16:13:37 [ModKay] there will be a transcript posted to WomansNetworkingCommunity@yahoogroups.com 

16:13:59 [ModKay] we are talking about creating a rep program

16:14:11 [scrapper] oh ok

16:14:14 [ModKay] mals-e.com has a free affiliate tracking system]

16:14:30 [ModKay] I use QuickBooks software to track all my sales and my rep program

16:14:49 [scrapper] I use QK pro

16:15:08 [ModKay] cool

16:15:41 [mamastuf] I'm sorry what do you mean transcript on this whole thing or on the differences of affiliates and reps....speaking of what do you like best

16:15:42 [ModKay] if you have a rep program you can use my articles and free resources at http://www.123HOmeBusinesGuide.com to share with them - lots of free stuff there for your business

16:16:12 [Jules] thanks for the chat...Micah is awake.

16:16:36 [ModKay] I will copy what we have talked about today and put it in a text file at yahoogroups for members of womansnetworkingcommunity at http://yahoogroups.com  - a group worth joining

16:16:40 [ModKay] bye Jules

16:16:59 [ModKay] I make far more money and sales in my rep program than my affiliate program

16:17:21 [ModKay] but also far more record keeping

16:17:29 [scrapper] my business is just new

16:18:07 [ModKay] affiliate program thru mals is a great way to start with a new business - gets you lots of links back

16:18:10 [scrapper] (Custom scrapbook biz) I am also a bookkeeper as well and find that most people use

16:18:24 [mamastuf] thank you ModKay I appreciate your setting up this time...I have networked through some of the online women's groups and I am so grateful to all of you for your sharing and experience

16:18:41 [scrapper] QB or some version of it I just prefer Pro it track so much more

16:18:54 [ModKay] you are most welcome - I am here every Tuesday afternoon

16:19:05 [ModKay] I have the regular QB for now

16:19:26 [ModKay] taking the comm college class gave me help with setting up the chart of accounts correctly

16:19:33 [scrapper] I do a lot of job costing and inventory tracking

16:20:04 [ModKay] awesome - I do not track inventory with mine since I make most of the inventory

16:20:08 [mamastuf] I have both and they both are good the Pro version just has more capabilities in tracking and reporting as well as more online linkage capability...I do taxes for people who have small businesses

16:20:19 [ModKay] any other questions on starting a sales rep program

16:20:32 [scrapper] If you follow the questions it asks it does a pretty good job of setting it up for you

16:20:36 [ModKay] mama - well that makes sense for you

16:21:13 [scrapper] It is also compatible w/ word & excel

16:21:18 [ModKay] actually I found the schedule c set up does not match a schedule c form - it has lots of extra categories not on the sch c that should be sub categories

16:21:32 [scrapper] online banking, bill pay

16:21:39 [ladybead] I am back

16:21:45 [ModKay] I moved all the extras to sub cats so I can simply copy my profit and loss straight to my sch c

16:21:54 [scrapper] yes you can eliminate the ones that you don't use

16:22:07 [ModKay] so ladies we covered a lot of rep programs - any questions

16:22:26 [mamastuf] I think I will go as the kids are taking apart my house and have written down all the websites and will visit them on my early morning wake when everyone else is sleeping and I can read it

16:22:40 [ModKay] it was not that I did not use them - they just were in a wrong place - should have been moved under the main sch c categories I thought

16:22:48 [ModKay] thanks mama

16:23:13 [ModKay] scapper and lady - any questions or confusion over what we covered

16:23:31 [mamastuf] Thank you for inviting us and will watch for more of these this has opened another avenue for me as a business possibility to get rocking and rolling

16:23:50 [ladybead] thank you I think you did a great job of covering the basics

16:23:50 [scrapper] came in too late will have read it later

16:23:54 [scrapper] nk you

16:24:12 [ladybead] just one question

16:24:18 [ModKay] awesome - join womans network community to get the reminders for this chat and others

16:24:28 [ModKay] ok

16:24:29 [ladybead] how do you price your packages that you send to your reps

16:24:47 [ModKay] WomansNetworkingCommunity-subscribe@yahoogroups.com 

16:25:04 [ModKay] which packages - the products or the rep kits

16:25:36 [ladybead] just in general what is the mark up'

16:25:49 [ladybead] how do you determine the price?

16:26:02 [ModKay] for which items - the products I sell?????

16:26:07 [ladybead] yes

16:26:16 [ModKay] products should be 4 times your cost of materials and labor

16:26:25 [ModKay] no less than 3 times

16:26:35 [ladybead] I mean your start up packages

16:26:43 [ladybead] that you send to your reps

16:26:59 [ModKay] for rep kits II charge $25 and have a folder full of training materials, catalog, sales board, 1 $10 product, name tags, etv

16:27:21 [ladybead] thanks I gotta go both the kids are home

16:27:24 [ModKay] just decide what you will put in it and mark it up a bit (counting product at wholesale)

16:27:30 [ladybead] thanks for all the info

16:29:33 [ladybead] thank you bye for now

17:11:04 [kaygreen] free advertising here http://groups.yahoo.com/group/WNC-Chat-Advertising/ 

17:11:13 [kaygreen] and http://www.123homebusinessguide.com 

17:11:55 [kaygreen] and on Monday at http://groups.yahoo.com/group/1ChristianWAHM/ 

Chat by Kay Green of http://www.MyPreciousKid.com  , http://www.123HomeBusinessguide.com  , http://www.KayGreen.com  at kay@mypreciouskid.com We meet every Tuesday 1 pm PST, 4 pm EST
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