The Fear Cycle

As mentioned in a previous post, I began reading John Maxwell's book Failing Forward: Turning Mistakes into Stepping Stones for Success as part of my "continuing education".

One of my favorite topics thus far is the "Fear Cycle" he discusses in chapter 4.  The cycle begins when a fear of failure develops due to a previous negative experience. 

"The fear creates inaction.  Because the person doesn't act, he doesn't gain personal experience in that situation--which is key to learning and overcoming future obstacles.  The lack of experience breeds an inability to handle similar situations.  And that ultimately feeds and increases the fear.  The longer the fear remains unchecked, the harder a person has to work to break the cycle." (p.39)

Maxwell discusses that the inaction which occurs when people are stuck in the fear cycle can take on these most common forms:

• paralysis
• procrastination
• purposelessness

Other negative side effects of the fear cycle include:  self-pity, excuses, misused energy, and hopelessness.

Here is what John Maxwell says about breaking the cycle:

"People who want to get out of the fear cycle often spend time feeling guilty for their inability to change.  But one of the reasons they are stuck in the fear cycle is that they focus their energy on the wrong part of the cycle.  Since they know that fear got the cycle going, they believe that they have to eliminate the fear to break the cycle.  Yet most people are unable to do that.  You can't avoid fear.  No magic potion will take it away.  And you can't wait for motivation to get you going.  To conquer fear, you have to feel the fear and take action anyway." (p.40-41)

No one is without fear and it can strike any aspect of your life.  When your business is a "one man show," fears can create a lot of damage and hold your business back if allowed.  I have seen it in myself and in others.  A fear can keep you from achieving dreams, finding success, and reaching your potential.  It all comes down to your determination to act inspite of the fear.  It is a mind game!  You need to change the recording in your head to positive, encouraging thoughts and keep your own thoughts from discouraging you.

With so many powerful points, I am loving this book!  If you haven't read anything in a while or you need to pick yourself out of a rut, I highly recommend this book.

Inspirational quotes have always encouraged me and John Maxwell uses many in each chapter to emphasize his points.  I'll be sharing some with you later this week.

-Melissa

Questions for Consideration

Are you or a friend considering direct sales?  When looking for a direct sales company to join, do your homework and ask a lot of questions.  Don't be afraid to compare opportunities, not all companies are created equal.

Or, perhaps you are already in direct sales.  Learning the answers to these important questions could make the difference in growing your team.  Having this information ready when meeting with a prospect will convey professionalism, intelligence, and dependability.  Knowing the value of your company will give you additional faith and enthusiasm for your business.


Questions for Consideration:


Company

• How many years has the company been in business?  Everyone has to start somewhere but experience gives companies the time to work out the kinks, increasing organization, service, and support.
• How many independent distributors or consultants do they have? The amount could indicate a wide-open or over saturated market.
• Are they members of the DSA (Direct Selling Association)?  The DSA holds companies to a high code of ethics and works to protect the individual distributors.

Product

• Will the product appeal to a broad market?
• Is the price point affordable for the majority of the population?
• Ask about the quality and manufacturing of items.
• Are you required to keep inventory?
• What is the return or defect rate?
• Is there a warranty?  Who handles returns?  Are there fees involved?
• Are you able to purchase products at a discount?  How much and how often?
• How often does the company release new products and catalogs?  Rotating product keeps customers coming back but having to change your samples or inventory too often can be expensive.
• Are there customer specials?  These can increase your retail and rekindle a business.  Too many customer discounts can hurt your bottom line since customers may have less incentive to host a party or won't buy without a special.
• Who delivers the product?

Investment

• What is the initial investment to represent the company?  What supplies, services, and products are included? Is the value for what you are getting worth more than the investment?  You need to spend money to make money but it should be realistic!  Beware of "buyers clubs" -very low initial start up and pushing people to get in for the discount.  This isn't good for your business as it can over saturate the market and keep people from wanting to buy at regular price. 
• Ask about additional costs: websites, shipping costs, business supplies, etc...

Earnings

• What is the company's average home party?
• What percentage will you earn off the product you sell?  It usually varies from 15-50%.  Does it change based on sales, experience, or growth within your team?
• Are there minimum sales requirements or quotas? 
• Do you make a commission off people you bring into the business?  How does their commission system work?
• How and when are you paid?  Some companies allow you to keep your earnings immediately, others mail you a check.
• Are there opportunities to earn free product, trips, or other incentives?  Ask about program requirements.  Are they realistic?

Hostess Benefits

• What will a hostess earn when they host a party or show?  Generally you will find a percentage of free product is given.  There may also be host specials, bonuses, or discounted merchandise opportunities.  Hostess benefits are a major incentive for booking a party or show. 
• Who pays for free merchandise- the consultant or the corporation? 
• Is there a minimum sales requirement for the hostess benefits to be afforded?
• Do the benefits change based on the type of party?

Training

• How do you get your business started?
• What kind of training and support will you receive when beginning your business and then further down the road? Local events, conferences, online, DVDs, audio trainings, etc...?

Direct sales companies are a fabulous way to begin an at-home-business.  For many years direct sales had a bad reputation and sometimes family and friends will try to talk you out of joining a company.  Decide what your needs are and establish your goals, then identify whether the company you are looking at will meet those.  Ask questions until you have all the information to make a clear decision. 

The lives of many women and their families have been forever changed by their business, yours can too!

-Melissa

Visual Love & Encouragement

Crayola window crayons.  How are they inspirational?

These began as a Valentine's Day gift for my husband since "Words of Encouragement" are one of his top love languages.  I use them to write words of love and encouragement on our bathroom mirror regularly.


You could use them to write:

• a goal, since writing and visualizing them are so important in achieving them
• a favorite quote or bible verse to inspire, motivate or positively influence your thoughts
• the names of people you want to keep in your thoughts and prayers
• love notes, words of encouragement, or reminders for family members

Have fun loving and encouraging yourself and others!
-Melissa

2009 Statistics

While researching for another post I'm working on, I found these new statistics on the DSA website for 2009.  (Click the 2009 link to see the full list of statistics.)


Here are a few of my favorites:

• 16.1 million Americans are in direct sales.
• 82.4% of the sellers are female.
• 32% of sellers are college graduates and 10% have post-graduate degrees.
• Direct Sellers sold an estimated $28.33 billion in 2009.
• 73.3% of the sales took place, face-to-face, in homes.

View the pie chart for types of direct sellers by clicking the 2009 link above.  You can see the percentages of who doesn't do anything, who is just retailing, who is growing businesses, and who just buys.  Very interesting!