Want to have a Profitable Summer in your Direct Sales Biz?

Published: Fri, 05/31/19

Hello, ,

This week, it finally felt like summer when I left home at 5:30 am for my morning walk. In Hawaii, we live behind the rest of the world. That’s why we get up at 4am every morning because you’re already heading to your first appointment or even sitting down for lunch. Yes, this is the price we pay to live in Paradise, (not to mention a gallon of milk is $8) ugh! So, getting an extra hour to walk in the morning, makes my day even more productive.

This is what the mountain looked like this week at 5:30 am. What’s your favorite time to walk?

What does walking have to do with making a profit in your business? Well, on my walk I love to listen to podcasts and this week I listened to two podcasts, Biz Chix with Natalie Eckdahl and Biz Mavens with Jeni B and both were discussing profit first in your business.

I find many people in direct sales couldn’t tell you the kind of profit they made from their business year to year. (I hope this is not you.)

Then, I hear some husbands say, “Oh yes, my wife has a fun little direct sales business, that keeps her busy.” If your husband or partner is saying this, then he is truly not understanding your fun little direct sales hobby could be saving him a considerable amount in taxes every year and you may be wishing your fun little hobby earned you a larger profit.

If I put you to the test, how would you answer these questions.

Are you using words like “gross profit” and “net profit” in your business?
What kind of operating capital do you have in your business?
How much “cash flow” does your business generate each week?
Do you complete a monthly profit worksheet?
What profit forecast do you have in your goals and action plans?
What income goal do you strive to achieve every month?

If you’re working your direct sales business part-time or full-time, you are a business owner and it’s important to recognize that every business has revenues and expenses and the difference between them are your profits.

Now, let’s talk about planning a profitable summer!

When you hold a party, it’s a pay day! Most people only get paid twice a month or once a month, but in direct sales you get paid (usually immediately) every time you hold a party. So, the key to working on making a profit over the summer is to figure how many “PAY DAY’S” you want to schedule.

There are three areas to pay attention to having a profit at your party.

You partner for profit every time you hold a party with a hostess. The amount of profits you earn at every party is defined by your relationship with your hostess. It’s your ability to guide her to have high attendance with a group of qualified buyers who love the product and enjoy your presentation. The stronger the relationship you have with your hostess, the higher the sales usually happen at your parties. I lay this hostess formula out in the Companion to the Direct Sales Planner Workbook.

Profit comes from having a killer product presentation. How well you demonstrate your product benefits and solutions will lead to higher sales. I believe it’s important to have a goal of at least $1000 sales at every party. This maximizes the credits for your hostess and gives you a substantial commission for your time. If you’re earning 25% commission, and you earn $300 and the amount of time for the party was 3-4 hours, you know you’re earning around of your party was $75.00/hour. In the Companion workbook, I show you the steps to have a $1000 party selling bundles and how to use power words to help you sell more product.

Great profit lies in your Concierge Check-out. The word concierge denotes you assist people with top quality service. At your party check-out you have the opportunity to have high sales, get future bookings and discover your next prospect by offering top-quality check-out service. I have created a 6-step process which involves developing the relationship with compliments, helping them choose the right products for them, getting them to book a future party to get more products and learning they are a great prospect to join your team. Again, this is laid out in the Companion workbook.

If you’re budgeting your monthly income over the summer, and expecting an amount of cash flow to pay for necessary expenses every month, you want to insure you hold the right amount of parties with the expected amount of sales and income.

Cash flow is important for Mom’s over the summer. A way to insure your income is consistent is realizing the consistency of parties you schedule in June, July and August. The absolute way to hold that consistent number is insured in one word. “Overbook.” Do you find you’re having lots of cancellations, postponements and you’re falling short of your income goals every month? Or maybe you’re on a recruiting role, and you’re signing up hostesses and giving away the cash flow you were expecting. You know it will come back in the long run, but if you’re depending on a certain amount of cash flow, overbooking your calendar by at least 2 to 3 parties is the answer.

Business 101 Teaches us about running a profitable business tracking revenues and expenses. A Simple excel spread sheet will help you track your revenues and expenses. If you purchased the Direct Sales Planner, you received the Monthly WORK SMART Business recap Worksheet. The WORK SMART worksheets are available on my website at https://www.mymentorbiz.com/wsw. Keeping good records every month shows your accountant, your husband and yourself that your business does make money and gives you the validation to write off many other tax deductions to save your family budget a lot of money.

At the end of the day, having a profitable business is about helping others have profitable businesses. Any time you help a team member take it to the next level and experience great personal success, is a huge plus and profit. If your goal is to increase your team over the summer, you must have an action plan. Take some time to watch my YouTube Summer Team Building tips on how to help you team work their business over the summer. While there, Please subscribe to my channel. In this video you’ll find a FREE Summer Action Plan handout for Leaders. Be sure to download it.

Now, if you’re serious about making a profit in your business and need a summer strategy, then hit reply to this email and schedule a 30 minute complimentary session. We will take a look at where you are feeling stuck or frustrated. I’ll show you how summer can be your greatest opportunity to grow a profitable business, and I’ll give you some tips on what to focus on right now!

Love & Success,

Gale Bates, Your “Make the Leap” Mentor

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