In 1979, Daniel Kahneman and Amos Tversky studied how people manage risks and make decisions. Their prospect theory became the foundation of the new field of behavioral economics. Kahneman and Tversky discovered some interesting results which you can use today to operate your direct selling company better. Here is what they learned: People prefer certain…
Time for an Incentive Trip?
In previous posts, we’ve talked a lot about compensation plans. In this one, we’ll address one component of the other side of field compensation – recognition. Field compensation should include both money paid through your compensation plan and recognition. Incentive trips are one category of recognition for both party plan and network marketing companies. Planning Your…
Ask Victoria: How Do I Get My Reps To Improve Their Customer Service?
“I shop quite a bit and spend a lot of money, but it isn’t often that I have encountered a company or a representative that is all about the customer. I will certainly be a repeat customer!” Wouldn’t you like to receive this kind of letter or blog post? Here are some things you need…
Ask Victoria: Why Is The Direct Sales Attrition Rate So High?
The rate of attrition of independent representatives of direct selling companies is high for many reasons. Here are several of them: Direct selling is a “sales” job, but the average person joining a direct selling company may not view herself as a “salesperson.” While people are often led to believe that it is easy and…
Ask Victoria: Can Rapport-Building Be Taught?
It is imperative that direct selling business owners and independent consultants build rapport with customers, representatives, and potential recruits. What exactly is rapport? rap•port (noun) Definition: friendly relationship: an emotional bond or friendly relationship between people based on mutual liking, trust, and a sense that they understand and share each other’s concerns. Successful business owners…
Ask Victoria: How Long Should the Qualification Period Be for a Trip Incentive?
People are motivated not only by money. Trip incentives encourage representatives to work hard for the recognition earned for achieving a specific goal. Even in today’s economy, trip incentives are vital to keeping your most productive representatives excited and focused. Trip incentives can be great motivation tools and often a company will see a measurable…