We want to share a principle taught to us by Orville Thompson, our friend and Scentsy CEO.
In direct sales some businesses resemble weeds, and others resemble trees.
What you want to have is a tree. What many people have are weeds.
Here are some signs of a weed (and we’ve seen many, many weeds over the years):
- Products that are based on hype rather than something that people really like, and want to buy again;
- The “get in now or it will be to late” principle;
- Quick money;
- Within a couple years the “hype people” or “top income earners” have moved on to a different business;
- An uncertain customer base (one that is largely made up of distributors of the product). Not an independent customer base that is comprised of individuals who aren’t distributors of the product;
- A focus on short term profits by the company, to the detriment of its distributors.
Weeds pop up fast, and they have very weak roots, and they die quickly. The roots are weak because the primary (if not the only) focus is fast money.
A very few people may make some quick money, but MOST people make nothing (and even lose money). These people leave the business with a bad taste in their mouth, and they are the ones who disparage the industry and say it is made up of nothing buy hype, false dreams, and lies.
Weeds hurt the direct sales industry.
They are distracting, especially to the people who are trying to grow a tree. People who have planted seeds for a tree, and are now watering those seeds and nurturing it, often get distracted, abandon their tree, and jump onto a weed.
Here are the signs of a tree in direct sales:
- It takes time to make decent money, but once you get there you have a stable income stream and reliable cash flow for years to come;
- You have to work hard, “get rich quick” is a myth.
- The product is unique, and people like it. It sells itself, and people want to buy more of it.
- Your customer base is made up of independent consumers who love the product, and use it for their own personal use. It is not made up of distributors of the product who also happen to be the #1 purchasers of the product.
- Your business has strong roots. You have a stable repeat customer base. Your team is involved in the business for a variety of reasons including: financial, personal development, friendship and community, and social.
Our business with Scentsy is a tree, not a weed. It took time, and a lot hard work to make really good money, but after that investment we have a stable income. We have a product that people love, that they consume often. Our customer base is independent from the consultant base, and our team is involved in the business for many reasons, as a result the roots of our tree are diverse and deep.
Grow your direct sales business into a tree, not a weed.