Do Business Well

Obtain stock

At first you will not need to carry large stocks. Most network companies send products to their large distributors per courier. When your turnover increases, you are likely to place orders directly from the factory, but initially you will obtain stocks from your sponsor for onward delivery to your customers.

Just as a reminder of how the system works — your sponsor will sell you the products you want at exactly the price she paid for it. You make your normal retail profit on those products you sell directly to customers. The balance you sell at no profit to your distributors, but at the end of the month you receive a rebate on the total turnover of goods purchased by your downline. Your sponsor, in turn, gets an overriding rebate (commission) depending on the value of goods sold by her downline.

As your business grows you will want to hold a small stock, perhaps in your office or a spare room, to save you numerous trips to collect stock from your sponsor.

Here are some reasons why you might consider carrying stock:

• By buying some stock you are able to better service your distributors without unnecessary delays. You also qualify for an extra rebate, based on the volume of goods you purchase during the month.
• If your company has a special promotion of a certain product, you might buy a few months’ stock of the item. During the promotional period, you obviously pass the savings on to your customers or distributors. But once the promotional period is over, sell the products at your normal price and make an extra profit on each sale of these special offer items.
• You can show your new distributors the full range of products available. Actual stock has much greater impact than a catalogue picture.
• A neat display attracts attention and is a talking point. Also, it helps with add-to-order sales.
• You are showing confidence in your commitment to the company you sell for.
• You can supply your distributors with stock rather than having to order and let them wait.
• Most companies have a sale-or-return policy. Of course, you must be reasonable about this. But if your stock does not sell, you can return it within a specified time. You don’t carry the risk of stock sitting on your shelf forever.

Open a bank account

In order to control the money passing through your business, it is essential to open some form of banking account. It makes sense to treat your business as separate from your personal accounts because:

Your bank deposit book will show you all monies collected from sales.

• Your cheque-book will show you all monies paid out for expenses, for example, rebates to downliners, stock
• purchases, telephone, petrol, rent (if applicable), stationery, and so on.
• A cash-analysis book will help you record where the income comes from and where the expenditure went, and will help you balance your books.
• Your bank statement will make it much easier for you to work out your income (deposits) and expenditure (payments) each month.

Get to know your products

Learn the basics of your product range. To become a real expert may take a little more time, but you need to be able to talk intelligently and persuasively about the products you sell. And you won’t be able to do that without studying a little. When you start, set aside half an hour or so each day to learn more. Do this until you can talk knowledgeably and with confidence about the products you sell. This homework will really pay off!

The best way to learn about your products is to use them. There is nothing like personal experience. Also, it makes sense to show your prospects you believe in your products.

When you start out, you needn’t be too concerned about your lack of product knowledge. Your sponsor (the person who recruited you into the network) will come with you to see your friends and prospects. She will help you make your first few presentations. Most professional network organisations have informative product catalogues or product videotapes which do the presentation for you. But to be convincing and enthusiastic you need to know the features and advantages of the products you sell and be able to match these to your prospects’ needs.

Professional network marketing organisations hold free training sessions for their distributors. These ’sizzle sessions’ not only get the motivational juices flowing, but also provide valuable information about the product range.

While you can always know more than the minimum, the following are basic questions you should be able to answer for any product:

• What is it called?
• Where is it on display in your home office or stock room?
• How much does it sell for?
• What does it do?
• What is it made of?
• What are its special features/benefits?
• Why should the customer buy the product now (sale price, limited stock, and so on)?

If necessary, expand this list to suit your business.

As a corollary to the above, if you have never been involved in selling, it’s a good idea to read up on the subject. Any good book will explain the fundamentals and you will:

• find out what the selling process is all about
• discover what actions the top sales professionals take
• learn how to approach a customer
• discover the requirements for effective communication
• find out how sales professionals start a conversation in an easy, relaxed way
• learn the secrets and techniques of overcoming objections
• learn how to close the sale and why it is important to ask for the order.

If you’re serious about your business and making it a success, you’ll want to know these things. However, don’t let a lack of selling experience deter you from getting started. Selling is about helping others. Simply aim to do that. The necessary skills and sales refinements, such as how to handle objections, will develop as you go along.

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