Happy 2016! Typing
those numbers seems unbelievable to those of us who fully remember the 1970’s
& 1980’s when the looming year 2000 seemed like something out of science
fiction. Last year I made the jump into direct-selling and began this blog
originally to chronicle my experience.
As I review my first 9 months with Norwex I’ll share what I’ve learned
in a series of articles.
Skepticism! Can you really make money selling
Norwex? Is this business model (party style)
relevant in today’s marketplace?
- Yes, you really can make money selling Norwex and Yes, the business model provides plenty of room to adapt to our internet based social media marketplace.
Making Money
First, let me state that no matter how corny it sounds,
making money is secondary (for me) to spreading the Norwex mission of reducing
toxins in our homes. Before Norwex nothing could
cripple me as much as a trip to the cleaning aisle in the grocery store. What would really work? What would eat up the
surface I was attempting to clean? Is
the higher price indicative of higher quality? How did people 50 years ago
clean this? (We have quite a few antiques in our home, mostly 1940’s era). The
Norwex solution ended my quest and gave me the perfect solution based on solid,
time-tested principles.
On to the money…Norwex offers a flat 35% commission of
retail price. I still need to buy all of
my office supplies including catalogs beyond a small batch upon start-up. They
give us shopping bags and Microfiber care inserts free. Norwex generously rewards consultants and
hosts with product which is helpful to use as demonstration products and
giveaway/contest/promotional items.
Let’s take a typical home party of mine.
- Product Sales = $450
- Commission = $157.5
- Value of consultant incentives = $10 (this is not direct cash as the gifts are cumulative ie.) sell $750 this month and receive X, plus you earn points toward annual and quarterly rewards
- Estimate Catalog/Order Form expense = $5
- Other Promotional Expenses = $5 (sometimes I buy sample bottles, envelopes, etc. and I want to be as honest as possible in this breakdown.
Time & Effort: I still spend a good 3-4 hours preparing
for a party when I consider phone calls & emails to my host, preparing my
handouts, games & give-aways and arriving early for setup. More experienced consultants may have a
better formula but I’ve found that as soon as I had a formula for guests
entirely new to Norwex, I had to tweak my plan for a party including those
already familiar with the company. If anything I’m over-estimating but again, I
want to be fully transparent.
- So the total is still $157.50 commission and we’ll divide that over 5 hours or work (prep time and party time) and that equals $31.50/hour.
Pretty good for a job where
I dictate my hours and I get to socialize and meet new people while discussing
improving all of our environments!
How is a Party
Style Sales model received in 2016?
We are social creatures and no matter how we spend our days,
most of us feel best when personally connected face-to-face with others. The Norwex model encourages authentic
communication as we educate consumers.
Back in the ‘90’s I had my first experiences with sales based
parties. I usually felt uncomfortable at
some point and always felt obligated to buy something. To be honest, almost everything I bought, I
did really like! But that uncomfortable
part….when you’re feeling pressured to host a party or play a goofy game…I
shudder. Thankfully Norwex applies no
such pressure. Will I demonstrate how
our products work? Yes. Will I explain
some of the perks for hosting a party and becoming a consultant? Yes. Will I pressure you to host or play a game
where the person who picks the “Party” ticket MUST host a party? NO!
You may come to a party, contradict me with your love of commercial
cleaners or vinegar and baking soda. You
will still get a sample product and I have a feeling you may contact me in a
couple of weeks to place an order. Today’s Norwex parties are fun social
gatherings and often have another theme going on whether it’s cookie swap, book
group or just work-friends social hour.
However website sales, Facebook parties and vendor events
constitute at least 60% of my sales.
Norwex offers their Office Suite (which means website
hosting) so I have a website www.CarolDavis.Norwex.biz
where anyone can place an order. I haven’t
had unknown contacts place orders but I receive orders from friends, family and
those who have been to one of my parties or vendor events.
Facebook parties are run as an event and usually have an
email-party option for those not on Facebook.
These events require less time and yield the same results as a live party. Knowledge is shared, interested is piqued and
orders are placed. My expenses in time
and catalogs are less (although I mail a large packet to the host and mail the
prizes won) and my rewards are great as I’ve reached people that may not be
able to physically get to a live party.
I attended 3 Vendor events this fall with a mix of
results. The most important thing I
learned about these events is that once you’re in – you have dibs for next year’s
event. So even though I didn’t have much
success at event #2, I’ll have right of first refusal next year. And events’ #1 and #3 are guaranteed for
me! There is the expense of the table
space (between $25-$100 in my area) and sometimes a donation to a raffle (my
vendor event #3 required a minimum $25 raffle item). Vendor events require more
time and a little higher expense plus you need to have some inventory to sell
for cash & carry. However, when you
hit it right, you get connections galore for future customers, hosts and
consultants. If you can afford to invest
in your business, Vendor events can be the ticket to expansion!.
Next Week: How Hard do I
have to work?
