Use Subsellers to Increase Direct Sales Profits
The idea of subsellers (or helpers) in direct sales isn’t a new one, but many direct sales representatives neglect this profitable way to build their businesses with less effort than building a full direct sales team or downline.
The difference in a subseller and a regular team member is that the subseller is not a consultant for your company. She strictly helps to sell product under your account.
A subseller’s main purpose is to generate orders. She may be motivated by making some extra money (you can give her a percentage based on sales as noted below), or she may just want to earn enough to get her own products free. Whatever the reason, she will gather her own orders, collect the money from “her” customers, pay you, separate and bag her orders, and then deliver the orders she has collected.
If you decide to use a subseller, or more than one, be sure you have an agreement in place so she and you both understand what each one’s role is. Typical agreements include the following guidelines:
• Subsellers place bulk orders only. The subseller takes the orders from her customers, compile the orders, then gives you one order for everything she needs.
• Subsellers package all their own orders. You return the bulk order just as it was given to you and she separates it as needed.
• Sales Aids such as bags, samples, etc. should be made available for your subsellers at cost.
• Set a discount amount for your subsellers based on their sales. For instance:
• $50 or less in sales, 10%
• $51 – $100, 20%
• $101-$150, 25%
• $151-$200, 30%
• over $200, 35%
• Subsellers should be able to order their own products at the same discounted rate.
• Decide how you’ll handle giving her catalogs and brochures. You may give 1-2 and then charge for additional ones. Whatever works best for you.
• Set a specific time that orders are due to you. For instance, every other Friday by 6:00 PM.
• Let her know when her products can be picked up. For instance after 12:00 noon on the Wednesday after the order is placed.
• Decide on the payment form you’ll accept: cash, money order, PayPal, etc., and when payment is due. It’s best to require payment when the order is placed. This will ensure that your subsellers collect payment from their customer when orders are placed with them.
• Some representatives require a minimum order of as much as $50 from their subsellers. It’s up to you, but if you want to require a minimum, be sure to Include it on your agreement.
• Include a place to sign with an agreed upon statement such as:
This agreement can be changed or altered only with the signature of both parties, however, _____________________ [Your Name] reserves the right to terminate the relationship at any time.
• Above the subsellers signature, add:
I agree to these conditions and understand that I, _____________________, [Subseller’s Name] will be held responsible for all monies due.
• Have your subseller sign and date the Agreement and you do the same.
Now, simply make a copy for her and keep the original yourself. “Hire” as many subsellers as you feel comfortable working with to build your business much more quickly than you could on your own!
While you don’t have the same responsibilities for subsellers as you do for a full team downline, you will want to offer sales helps and ideas, as well as encouragement. After all she is helping to build your business. That’s why it makes so much sense to use subsellers to increase your direct sales profit without undue labor on your part!