Tuesday, March 24, 2015

Your Vision, Your BIG Picture!

by: Dioni Morales, Director of Stylists Services

Yesterday I returned from  a few days of listening to top leaders/earners in this industry from all over the world, at a convention in Las Vegas. I just love these meetings, and I always take in as much information as I can.  I was writing so quickly I had to rewrite some notes while it was still fresh in my mind, and so I could read it! I will be sharing most of it in my next few posts.

One of my favorite topics: Vision. We often confuse "vision" with "goals," and although they are similar, the two are not the same. Both vision and goals provide a picture of an end result. Both are powerful.  The big difference is that goals end once they are reached.  Vision goes on forever.

So what is Vision exactly?

* It is the strategic intent for your business.
* It is the long term picture.
* It is the force behind everything you do.
* It is the results of your daily efforts.
* It is the inspiration for what you do.
* It informs all your decisions.
* It compels you to work through challenges.
* It is what gets you out of bed in the morning and makes you work with passion.
* It is like a string that pulls you forward.

Oprah Winfrey said: "Create the highest, grandest possible vision for your life, because you become what you believe."

How do you create a clear vision?

  • You have to remove your limiting beliefs and your blocks, and that will open up your ability to set goals. (I will give you more details about this in a future post, but for now know that this is part of what is holding you back, and by identifying them they will have no power.)

  • Your vision continues to act as a beacon, guiding you in setting new goals once current ones have been achieved.

  • Goals are the signposts that let you know that you are moving in the right direction towards your vision.

What does a clear vision bring to your business and to your future?:

* Allows you to motivate and inspire others
* Gives direction and purpose
* Inspires enthusiasm and encourages commitment
* Is the key to building huge momentum in your business.

Your vision is the BIG picture, YOUR big picture! It's like when you get on a plane.  When the plane reaches the highest altitudes, all the little details below don't really matter anymore.  It's all left behind and all you see is a great view!

Tuesday, March 17, 2015

Understanding the Party Plan Business Model

We asked Dan Jensen and Andi Jensen Sherwood, premier compensation plan designers who designed Vessel's plan, to share a few thoughts about the various business models within the direct sales spectrum and why Vessel's plan is designed the way it is.  If you have worked with party plan companies before, this may be familiar information.  However, if you're new to direct sales or have only worked on the "internal consumption" end of the spectrum, this will help you understand the basic differences of the various models.

Direct selling companies come in many different flavors. Some invite recruits to purchase products for their own personal use and then share with family and friends ("Internal Consumption").  Others teach recruits to find customers to whom they sell their products for a retail profit ("Retail Bias" or "Retail Customer").  Internal Consumption plans tends to sell in a one-on-one manner, while the Retail Customer plans tend to sell via the party plan model.  Many companies have a mixture of these approaches.  Vessel is basically a party plan business model, and our compensation plan is best described as a Uni-Level Hybrid. 
It is important to understand that a company's approach to field compensation should align with their business model.  A traditional multi-level marketing company, or MLM (like Xango, Herbalife, NuSkin, etc.) compensation plan, for example, would not work with the Vessel business model.  They are incompatible, and such a combination would eventually lead to stagnant sales if not outright business failure. 
The following table illustrates some of the characteristics of the Internal Consumption and the Retail Customer models:
(MLM Model)
(Party Plan Model)
Inexpensive for new recruits
Higher sign-up cost protects retail profits; fewer customers sign up only to get a discount.
Stronger team overrides paid early
Strong incentives for higher sales volumes
High attrition is assumed
Low attrition is achievable
Earnings per hour depends on overrides from recruiting
Earnings per hour are felt immediatel through retail selling
Requires more recruits to achieve sales targets
Requires fewer but more productive recruits to achieve sales targets
Requires less training
Requires more training
People love the product naturally
People love the product naturally, but it might take a compelling demonstration
Eventually collapses if product demand is primarily opportunity driven
Product demand is less opportunity driven, and business grows organically
Business is focused on recruiting
Business is focused on selling, and then recruiting
In the Internal Consumption model, everybody buys at the wholesale price.  Rarely does a distributor sell the product at retail because the prospective customer is offered a compelling reason to "sign up" by purchasing an inexpensive "kit" so they can enjoy the distributor discount on their purchases.  So these companies tend to offer products that are consumed on a daily basis.  Even if the kit is expensive, it would often be loaded with high product value so that it compels them to join to get the product at deep discount through the kit.  When the customer signs up as a distributor in order to get the wholesale price, there is no retail profit margin to the seller/recruiter.  Instead, the company must have margins adequate to pay the recruiter a team-building commission sufficient enough to be worth their time.   We see, therefore, that the Internal Consumption model requires a higher payout in the compensation plan to compensate for the lack of retail profits.  To be competitive, companies typically must pay out at least 38% of the wholesale revenue, otherwise the company will have high attrition rates as distributors look for a better opportunity. 
In the Retail Customer business model with a stronger emphasis on selling to customers who pay the retail price, there is a retail profit margin to the seller.  Note that Vessel's standard Retail Commission of 30% would be equivalent to a 43% commission on the wholesale price of a $100 retail order ($100 Retail = $70 Stylist price; $30 of $70 = 42.86%).  In other words, an Internal Consumption business model would have to offer a 43% payout to be competitive with Vessel's model!  And that's not even taking the Vessel Team-Building Commissions into account. 
Because we do not want everyone to sign up simply to buy products at the wholesale price, our kit pricing becomes a "barrier to entry" - in other words, we want only people who want to build a Vessel business to sign up.  The kit price, and specifically the ratio of included product to kit price, is designed to discourage purchase by those who simply want the product.  We want people who only want to buy the product to buy at the retail price - to become our customers. 
There are many positive points in both business models, and as noted before, many companies employ a mix of characteristics.  The critical point is to understand the purpose and structure of each, and to understand the logic behind Vessel's unique and generous compensation plan. 

To Your Success!



Tuesday, March 10, 2015

Plan Ahead NOW to Attend the Vessel Scents of Style Convention!

by Tracy Ralph, National Sales Director

Do you love meeting up with friends, making new friends, and having lots of laughs together?  What about the excitement when you attend workshops and learn how to increase your sales, or find a cool idea about how to keep your calendar full of bookings? Then your passion level rises when you hear how a Stylist just like you recruited 15 people in one month, and you think, “Wow, if they can do it, so can I.”  At this point you are ready to go home and try all the tips she gave you from just this one testimonial.
Then there’s the motivational stuff! You hear the words shared by a speaker, and you are pumped. You get that wonderful feeling inside, knowing you definitely made the right decision to join your company.
How many of you are thinking:

“I’d love to go to Convention but I don’t think I can afford it,” or

“I’d love to go to Convention but I’d have to take time off work,” or

“I’d love to go to Convention but how can I leave the family?”
Convention is about YOU and it is FOR YOU!  It’s about your future and your development in building a strong and profitable direct sales business.
Convention is designed to help you grow personally and professionally and learn from the best in your company.
There is nothing more rewarding than to attend convention with your team! Those late night get-togethers and grabbing quick cups of coffee while racing to your first session. All the fun and laughter with others who love their business just like you.
That’s Convention.  It’s where you get the big picture.  It’s where you will hear that ONE amazing tip you’ve been searching for to move your business forward.  It is the perfect place to build team spirit and bond with other like-minded people.
And the best thing is that with Vessel, you can earn your Convention FREE!  All of it, or part of it, that is up to you!  With our Convention Contest, not only can you earn Convention, but make money while doing it! Whether you earn your Convention, or pay for it, it is a tremendous growth experience in your Vessel business.
Don’t miss the 2015 Convention!  All it takes is planning:
  1. Calculate how many parties it would take to pay for this event - how much in sales per month and/or how many recruits to earn the Convention credit
  2. Pay attention to the early bird registration price!  The $99 fee ends April 1st
  3. Look for inexpensive air fares
  4. Find room mates NOW to split the cost of the hotel
  5. Encourage your team members to attend with you

Don’t let the perceived costs of Convention stop you or your team members from attending because convention is an investment in YOU!  Invest in yourself.  Make a plan and break it down into achievable steps. The rewards will be enormous!
Are you planning to attend the Vessel Convention this year?
What are you willing to do to attend?

How many team members will you be bringing with you?
Let's make this year the year that will change your business at convention!