When we think about building a team, by nature the first thing that we think of is getting a new Consultant to join. As a result, we sometimes forget that keeping a Consultant in business is as important and bringing in new Consultants. Total Consultant count is actually a more accurate measurement when managing your team.
Because of the quality and efficacy of BeautiControl’s products, you will find Spa guests, clients and even Hostesses who want to join as a Consultant for the sole purpose of receiving a discount on their products.
Over the years, in fact, we have lost our focus on finding new Consultants who want to join this business because of it’s unparalleled opportunity to earn income while offering the flexibility and freedom of a business owner and have focused too heavily on selling “memberships” to clients to help them receive a discount on their products. While some of them may eventually see the benefits of selling product and building a team, many of these Consultants place a few orders, then become inactive and are eventually dropped as a Consultant. Very few of these Consultants who have been dropped ever choose to become a customer of the products or to Host a Spa after she has been dropped. You will see that the turn-over rate of the “consumer Consultant” is far higher than those who are actively selling, building a team or even sharing the products with a few friends and family.
Your focus as a Leader in this business should be to build a team of sellers and to build a personal client base. These two key areas of focus will keep you in business and ensure your success today and in the future. Trust me, the ones who are only looking for a discount will figure that out…you don’t have to use it as a proposition to get them to become a Consultant. I have a motto that I use quite often, “when you play to the lowest denominator, you will achieve it every time”. In other words, set low goals and you will always win.
I know I have said this before, possibly multiple times throughout this series; however, it is worth repeating. There is a huge difference between a Client and a Consultant:
Client: This is the person that you meet through a Spa or through personal contacts that looks to you as a retailer of products. You are their “skin care and cosmetic store”. You have the choice of how you market to your Clients. Because you receive your Consultant Level Discount, as well as additional savings on products each month, you profit the most when you sell at full price, or when you use your discounted products as sales incentives and Host rewards. Clients are YOURS. You are BeautiControl to them, not us. In fact, your clients will never hear from us unless you enroll them to receive the free BeautiBuzz e-newsletters each month or a Client Connection mailing.
Consultant: A Consultant is someone who has joined and fully understands that they have signed up with the expectation to sell and hold Spas. Please, hear me gently here…notice that I said, “understand they have signed up with the expectation to sell and hold Spas”. That doesn’t mean that you won’t have those who have no intention of selling and holding Spas; however, they are fully aware of what they have signed up for. Remember, my job is to market to our Consultants as SELLERS and SPA HOLDERS, not clients. When a Consultant brings someone into the business by “selling a case”, that new “Consumer Consultant” is going to be extremely turned off with weekly emails from BeautiControl talking to them as though they were a business owner, when in fact, they just thought they had purchased a membership from a discount club. So, this person becomes frustrated with the business, he/she doesn’t order enough product to stay active and it receiving emails from BeautiControl talking about selling and emails from you talking about buying, because in reality you are still treating her like she is your client…which she is!
Can you see what we are doing when we bring people into the business who have no intention of doing the business? We are sending confusing, mixed messages to them that will turn them off as a Consultant. As a result, you lose them as a Consultant, you lose what could have been a wonderful client and future Host and in some cases, you lose a friend. They think they are one of your clients who gets a discount, so you are marketing to them as a client while BeautiControl thinks that they are a Consultant who intends to sell and hold Spas, so we market to them as a seller.
With that being said, please read this part before you start sending me ugly emails, there is absolutely nothing wrong with having the “Consumer Consultant” on your team. In fact, these Consultants will always be a large percentage of your team and account for the majority of your monthly totals here. The point here is that over the years we have lost our recruiting verbiage and have relied on “selling the case” as a crutch for getting new Consultants with the HOPE that they will go to BeautiYou, and discover that they can hold Spas and make money in this business. HOPE is not a strategy, my friends. We need to change our words and recruit with confidence in our opportunity to make money and change lives.
The key to managing your team dynamics comes from balancing the sellers and the “consumer Consultants” on your team. Based on 30 years of data, our business (which is a direct reflection of our Consultant’s business) is most healthy when the % of sellers on your team is at least 30% of your total Consultant count and the % of “consumer Consultants” on your team is 70% or under. The 70%/30% formula reflects a business that is healthy and has positive momentum.
When the balance of “Consumer Consultants” becomes higher than 70%, you will likely find that you have a higher turn-over, you are having to work harder to bring new Consultants onto your team to maintain your team size and you are not making the commissions that you could. Essentially, this means that you have to work much harder to maintain your earnings.
As you manage your team dynamics, these are the key things that you should keep in mind each month:
- New Consultants: These, obviously, are the new people that you bring into your business on a monthly basis. There is a direct correlation between the number of Spas that you hold each month and the number of New Consultants that you add to your team. Spas are intended to help you generate leads and find others who see you earning money and want to do the same (the basic principles of Party Plan Direct Selling). If you find that you or your team are not finding enough new people to bring into the business, it is highly likely that is directly related to the numbers of Spas that are being held.
- Active Consultants: These are the number of ordering Consultants that you have on your team each month. This is the segment of your team where you need to spend the majority of your focus. Recognition, motivation and Spa/sales challenges are very effective ways of keeping this segment of your team feeling valued and motivated to grow. The more sellers you have on your team, the higher your percentage of active Consultants will be each month. The MINIMUM percentage that you should have ordering each month is 50% of your team. Once you start to see the mix of sellers and “buyers” shift to that healthy 70%/30% ratio, you will see that the rate of activity on your team increases as well.
- Potentially Inactive Consultants: This is a very important area of focus. The potentially inactive Consultant is the Consultant who has not placed a $100 retail order in a four-month period. I will go to my grave saying that if a person does not use a minimum of $100 retail a month in products, then they are very barely a customer, much less a selling Consultant. One TFF Extreme and one lipcolor every four months would be enough to maintain the active consultant level. Ok, sorry, I went off on a tangent. The point is this…when you see that a Consultant on your team has not ordered and is potentially going to become inactive, meet them where they are and talk to them like a client, which is exactly what they are. You are the reason that they joined, so you will have the most influence in keeping them. Schedule a one-on-one consultation with her and offer her an amazing client experience. Find out what she is interested in and show her what products we have introduced that she may not have seen. Remind her of all the reasons she joined your team…remember, she joined YOU…not BeautiControl. We will communicate to this Consultant and remind her that she is going to become inactive; however, you are the one who has the best chance of keeping the Consultant on your team. You recruited her…I didn’t, so don’t miss out on the opportunity to pay close and special attention to those who fall within this category each month. You spend so much of your time opening the door to BeautiControl to new Consultants every year, but in the process, you may have also left the backdoor unlocked, allowing for your new Consultants to join, never become active and risk losing their active Consultant status. Make sure your back door is shut and once you have then join your team, they never want to leave.
- Inactive Consultants: The inactive Consultant category consists of Consultants who did not maintain their active Consultant status qualifications by ordering a minimum of $100 retail (remember, that is before the Consultant Level Discount) in a four-month period. Once the Consultant falls into this category, they will remain here for 12 months and can reactivate at any time by placing a $150 retail order. During this twelve-month period, BeautiControl will send them monthly emails informing them of new products and ordering opportunities and reminding them that they can regain their active Consultant status by placing a $150 minimum retail order. Historically, we have the best opportunity to re-activate Consultants during months 1 and 2 of their inactive status because many Consultants didn’t realize that there were ordering requirements and they had lost their active Consultant status. This is one of the reasons that informing the new Consultant of the ordering requirements when they join and communicating with them as a Potential Inactive are so important.
The most effective and productive way to manage your business as a Leader is to set key performance Indicators for yourself each month, like we talked about in the blog titled, “BeautiControl 104: Understanding and Working the Success Formula”. Managing your business by measuring business is the only way to set goals and successfully achieve them. When managing the balance of your team dynamics, it is crucial that you have a handle on the makeup of your team:
- % of active sellers (a minimum of 30% is recommended)
- % of consumer consultants
By actively managing these simple performance indicators, you can clearly develop a monthly plan of action as it relates to creating contact and activation strategies for your team. By knowing where your team is most vulnerable, you can focus your efforts to minimize your risks. Once you fully understand this, you will know who you need to target as a New Consultant, what to do to encourage more selling activities and how to segment your communication to most effectively speak to each of these very different audiences.
A team is a collection of very different people who bring very different strengths to the table. If you think of it in “sports terms”, in order to be successful, you need a strong and aggressive offense (sellers and active Consultants) and a strong defense (Clients and “consumer Consultants). When you have the right talent on your team and the right strategy, it is easy to make you business a home run every month.