In 1976 some very close friends Robert & Shirley Brennan asked us to drive to Portland Oregon (3 hours away) to listen to Rich DeVos one of the founders of Amway. Rich spoke on stage with no fanfare or props. He spoke about American Free Enterprise. He spoke for a couple of hours. I was spell bound. He did not talk much about Amway. But about America and the greatness of being free. The blessing of being able to build a business and controlling your own destiny. That night I went there basically because a friend asked. But I left a changed person. It was the starting point of a 35 year career in direct sales. From being an Amway distributor, selling insurance and building an organization in ALW for 13 years. To selling commissions & genealogy software in the direct sales industry. To owning a consulting firm helping company owners start or fix their companies. To being on committees in the Direct Selling Association. To finally owning my own direct sales company. Years after listening to Rich DeVos I was able to talk to him one day and I thanked him for what he has given to so many people and what he did for me. He was an old man then but still powerful. Later I met his son Doug Devos at a DSA luncheon. I mentioned to Doug that I had read all of his fathers books. It was a short conversation. I few weeks later I got a package from Doug DeVos. It was the newest book by his father. The legacy of Rich DeVos lives on in his son. Another great leader in the direct sales industry that has affected my life for good is Art Williams the founder of A.L. Williams. I have folder of cards from Art from the years I spent in the company. He business & personal messages have carved a piece of my own business belief.
So if you are a leader in a direct sales company, be a good person, develop characteristics of caring for people, protect the Free Enterprise System in America.
What is direct sales really all about? It is about people. It is about being Stewards of People’s Dreams. It is about others first. Don’t build a business just for you. Do it and help others have a chance to improve their lives. We need more company owners that have personal character that changes people’s lives for the better.
What is direct sales really all about?
NEW BLOG SITE
I have created a new blog site. It is now www.bobhipple.wordpress.com
All I did was take out the word blog in the URL and created the new simple one. So if you have it bookmarked then please change to the new one.
Thanks, Bob Hipple
Be Careful of Who and What You Follow
This is a word of caution and direction. I have seen too often that consultants and distributors get caught up in the “greatness” of the owners of the direct sales companies they are part of. As important as the owners are to the opportunity, and respect should be given to them, for the creation of the business, leadership, product development, operations, etc., you are the ultimate leader of your business.
There is a tendency for representatives of direct sales companies to put the owners on a very high celebrity type pedestal. It is natural to do this since the owners are the people who created the opportunity and are out in front. But this is a dangerous thing to do because we really don’t know the true character of people, especially in a direct sales company that is growing quickly.
We should not put any person on such a high platform since they are still just people who have weaknesses and character flaws just like you and me. It is the nature of people when they gain power, wealth and praise that they sometimes exercise increased unrighteous pride. Pride in this since is not like you remember in high school at the football game but this pride is a self-promoting and inward focused pride. It says that the company is great because I am great. Which is not good for them or the representatives of the companies.
When we promote the owners more than the opportunity we can potentially set ourselves and our downline up for failure when the owners retire, sell the company, pass away or just pull back from the personal contact that they once had when the company was smaller.
This cycle has been played out in many of the direct sales companies in the industry.
To protect you and your business you need to balance what and whom you promote.
This creates another issue in that companies change over time. The culture that was in the company when you joined can change and sadly probably will change. The friendly family feeling you experienced can become a distant corporate culture as the company grows. This is a challenge for all direct sales companies as they get bigger. There are a few great companies that have been able to maintain the close relationships with the representatives. I was lucky to be part of a company like that for over 10 years.
With all due respect for the owners of direct sales companies you need to remember that you have your own business and at the end of the day your existing parent company supplies you with products, commissions, shipping, marketing material and incentives. You should always support your company in a positive manner. But be careful not to get caught up in what I call “worshiping the company and owners”
You need build your business and create the kind of culture you want in it. And then be careful not to but yourself on a pedestal. If you do this you can weather any storm that the company might go through.
Just ask yourself these questions:
- If the owners sold the company how would it affect my downline?
- Do I have a strong enough connection with my downline to keep the team together if the owners were not in the company anymore?
- Is the culture of the company today as good as it was when you joined?
- Have you built the kind of culture in your team that is positive and supportive?
- Is your personal business strong enough culturally to survive a negative cultural change in the company?
You need to become the leader of your business and be careful not to be just pulled along with the excitement and fanfare of the company.
As a final note, this is not to say that all companies owners become egotistical leaders and only focused on profits for themselves or the company. It is just that companies and people change. Be careful how much you promote owners and companies instead of the opportunity.
Be the kind of leader you would want to follow. Always look for ways to build your people. When we think of others first, at the end of the day you will be rewarded both financially and personally.
Money makes bad people worse and good people better.
Let’s always be a good person.
Do It or Don’t Do It
I have been in direct sales in one capacity or another for over 30 years. First I can’t believe it has been that long.
But the other day I was thinking about so many of the distributors or consultants that I know who have been or are trying to build a direct sales business. Some are doing very good and some are frustrated.
Here is the common thread I have observed with the ones that are frustrated. Now the frustrated area I am talking about is in growing the number of recruits and getting the volume of sales from them.
People who are big in this business have “focused on recruiting” I mean they are zeroed in on it and personally recruit and understand that they need large numbers of personal recruits to get a few leaders that will do the same.
The people that are frustrated are the one that recruit once in a while. Sometimes by accident and then think that the few recruits they have are going to somehow grow their business.
The truth is that very few people get lucky and recruit a superstar. Most people have to recruit their brains out to find those few people that will take off.
You just have to make the decision to stop playing with the business and stop kidding yourself and setup a plan to personally recruit 50-100 people in a short time period of a few months. Even 6 months to a year. But if you stretch this over 5-10 years you will not have the impact you need.
If you just want to have fun with your business and make a little extra income then don’t worry about what I am say and please don’t get offended.
But if you want to build an income of $50,000 to $100,000 per year then you are going to have to stop just having fun with your hobby and setup a plan to personally recruit large numbers of people in a short period of time.
Just know that most of those people will not be builders. But you will find some and when you do they will do it with or without you. And that is the time when the business is really fun and productive.
So my comment of “Do it or Don’t Do It” means if you keep saying you are going to build a large income business then you need to treat it like a business and go recruit an army.
Just remember you don’t have to recruit like a crazy person forever. Once you get the plane off the ground you can pull back on the gas a little. But if you don’t put the pedal to the metal at the beginning you are never going to get that plane off the ground. And that is frustrating.
So make and plan and start recruiting
New Entrepreneurs
According to a recent study by the Kauffman Foundation, new startup businesses have hit their highest level in 14 years. Despite the recession and probably because of it people are turning to owning their own businesses as an alternative to finding a full-time job.
People are more than ever learning that jobs and careers don’t last for extended periods of time.
When asked why they are starting their own business, one thing people say is that “they are having fun” with their new business and that they can get a job later.
What does that tell us about direct sales? This has always been an entrepreneurial industry. Remember that you don’t just sell products. You offer people a chance to be in business for themselves. There is no better time to offer someone a chance to start their own business.
Where else can you start a business for let’s say $100 (a starter kit) and then start making money the first day in business. There is no license to get, no inventory to buy and even better yet you can recruit and expand your business day one.
Yes you need to be excited and convinced your product is good but don’t forget that the most valuable thing you can offer is the business opportunity. Millions of people are out of work in this country. It is time for you to lead the crusade and touch the lives of these great Americans.
Millions of people have immigrated to America for just a chance to start over and have a taste of the American Dream.
You have the American Dream right now.
Go out and share it with people.
Silpada Jewelry merges with Avon
Silpada Jewelry is one of the really good party plan companies in the direct sales industry.
First see this link:http://silpadanews.com/
They have announced a merger with Avon. I don’t know any of the details yet but it will be interesting to see what happens. Normally I am very cautious of big corporations taking over entrepreneurial direct sales companies. It worked with Pampered Chef so let’s see if it works here. I have great respect for both Silpada and Avon.
The Power of Praise and Recognition
Here are some thoughts on recognition that I think everyone building a direct sales business should consider.
Most people emphasize the things people do wrong. A leader accepts people’s weaknesses and rewards their strengths.
Praise and recognition are the most powerful forms of motivation. Nothing encourages people to work harder and produce quality results like having their accomplishments noticed and praised.
People have certain inner needs: 1) the need to feel that they belong to a group, 2) the need to feel appreciated, and 3) the need to feel that they are recognized for their efforts.
Positive motivation is the key to building people.
If you want people to start succeeding, you start by praising them when they begin to do things right.
Everyone wants praise for a job well done. When you praise successful behavior then people will want to get the same recognition again.
The best place to praise someone is in a group of their peers.
Focus on people’s strengths. Always look for reasons to praise
Be slow to criticize.
When you are working with people you can say 99% positive things and one negative thing, and the only thing they’ll remember is the negative
Recognition doesn’t have to be elaborate. It can be a simple note that says “Your Doing Great” or “I am proud of you” or a phone call of encouragement.
Publish a leader sheet on production. People love seeing their name on it.
When giving recognition or an award in a group always take a few moments to talk about the person, her/his sacrifice and her/his achievements before presenting the award. Never hand out an award with only a handshake.
Always recognize 20-25% of the group.
Be creative with your awards.
Have fun with the awards. It is the recognition that is key.
Always include the spouse when you can.
You can never give too much recognition.
