For most direct-marketing companies, the internet has proved to be a godsend. Apart from the fact that it has increased the effects of competitors significantly as people are able to shop about extremely easily, the internet has meant that companies can decrease their workforces dramatically as people can order online and have goods delivered by carrier. Some businesses even did away with their largely self-employed sales forces - the individuals operating from their very own homes, often for little amounts of money.
Many of those firms came to regret their rashness - sometimes the on-the-ground sales force was the only element differentiating them from millions of other online retailers, many of whom were more skilled at internet trading and could as a result compete more effectively.
On the other hand, numerous of the salespeople became disaffected when they discovered the customers they had recruited were being lured into buying online, thus cutting the salespeople out of the picture and (more importantly) cutting them out of their commission. It doesn't take a marketing genius to figure out that a disaffected sales force not only doesn't produce: it may also cause a great deal of damage.
Betterware distribute household products via a network of homebased distributors, mostly working in their spare time. The basic Betterware selling system is according to a catalog: the distributors put the catalogs through letterboxes in their designated region, then call back later to take orders and (ultimately) to deliver the goods. This system means that there's small or no high-pressure selling, distributors are usually selling to neighbors, and eventually a good social rapport is obtained in between the distributor and also the consumers.
Obviously Betterware can't ignore the internet revolution, any more than any other firm: in fact, you will find distinct advantages in taking orders online. Nevertheless, the business has acknowledged that the main drawback of the internet is the lack of human get in touch with, and in fact Betterware are already far better placed than most other companies to inject a human element.
Therefore, Betterware not just pay commission to the salespeople for any sales produced in their area, even if the orders are placed by telephone or online: they also arrange for the salespeople to deliver those orders to the customers. This establishes the salesperson in a position where he or she is in a position to sell more towards the consumer.
From the salesperson's viewpoint, this system is eminently fair. Following all, the consumer may well have taken the e-mail address from the brochure the salesperson had dropped off - so the bulk of the function had already been done.
From the company's viewpoint, paying the commission means the sales force are quite happy to recommend customers to buy online, rather than fighting against the company in order to take the orders themselves. From the customer's point of view, Betterware company and salespeople show a united front, which can only enhance the brand.
Independent sales forces need to be given very precise territories in which to operate, otherwise it's impossible to allocate the commission. Make sure that salespeople are aware that they can really encourage customers to shop online. This concept works greatest when salespeople are making the deliveries, because that way they make direct get in touch with with the customers.
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Note: This article was sent to us by: Craig Morris at 01202011
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