Is 20% Commission Enough for Direct Sales Success?

Click For Summary

Discussion Overview

The thread explores the commission structure of Pampered Chef, specifically the 20% commission rate, and how it compares to other direct sales companies that offer higher percentages. Participants share their experiences and insights regarding the benefits of the Pampered Chef model, including the support and products provided to consultants.

Discussion Character

  • Exploratory, Opinion-based, Anecdotal

Main Points Raised

  • One participant, identifying as a consultant, expresses concern about a recruit's perception of the 20% commission rate compared to other companies offering 40-50%.
  • Another participant shares their experience of discussing commission rates with a consultant from another company, highlighting that while the other company offers higher commissions, it lacks the benefits of free host products and inventory support.
  • Several users mention the advantages of the Pampered Chef model, including low startup costs, no inventory requirements, and the value of free products received.
  • One participant notes that the commission structure allows for straightforward sales without the need for additional expenses related to hosting or inventory.
  • Another participant emphasizes the ease of maintaining activity status with minimal sales requirements, contrasting it with other companies that charge membership fees.
  • Some participants appreciate the shared flyers and documents that outline the benefits of the Pampered Chef commission structure, indicating they find them useful for recruiting efforts.

Areas of Agreement / Disagreement

Views differ on the perceived value of the 20% commission rate compared to other companies, with some participants emphasizing the overall benefits of the Pampered Chef model while others acknowledge the appeal of higher commission rates elsewhere. No clear consensus emerges regarding the sufficiency of the commission rate.

Contextual Notes

Participants share personal experiences and insights based on their interactions with potential recruits and other direct sales consultants, focusing on the comparative aspects of commission structures and support systems.

Who May Find This Useful

Consultants considering recruitment strategies or those interested in understanding the competitive landscape of direct sales commissions may find this discussion relevant.

chefjenibel
chefjenibel
Messages
295
Okay, I've never started a thread on here before, but I need some input.
I have a recruit lead that is concerned that we "only" start with a 20% commission rate. Looks as though she has probably been shopping around other direct sales companies and is being enticed by those promising 40-50%.
I, of course, understand why our commission structure works well. Does anyone have a flyer or brochure breaking down what we really earn? I'm thinking of including all of the opportunities to earn free product as well as commission. Anything anyone has is worth a shot! And if you all have any "ingenious" ideas I can spring on her, that would be great! After trying to convince her that it really is worth it, I will probably just tell her. Hey, spend $50 to get your $350 kit, do your first 6 shows, get your commission plus at least SSmonth 1 Bonus, and if you still don't think it's worth it, you've still come out on top. I'm not desperate for recruits, but I would really like her to give it a try. Help!!!! :eek:
 
Here you go ..I think this will help
 

Attachments

The only input I can give you is that I recently was speaking to a woman who sells Home Interior and she asked me how much commission I make. When I told her 24% she replied " wow, I make 40% or more" . I even was thinking that is a nice chunk. Then as I talked to her more I found out that HI does not provide the free host products for her. She has to provide all of that. That is a huge Chunk! She also has to buy all her guest gifts as well. So when it comes down to it it is really not that much. Really about the same as we get. You really need to show her all that we get. Also we do not need to keep an inventory. PC is very sraight and forward. You sell and they pay you commission. Hardly any starting up cost. And the free stuff we get is out of this world.
 
There are just two things on the document that you might want to change. It lists quarterly and yearly bonuses, that has not been in effect for quite some time. And it lists shipping at the bottom as $3.50. It is a great comparison though, I would love to use that to show people.
 
  • Thread starter
  • #5
Thank you! That is a wonderful flyer! Exactly what I was looking for. Like I said, I know all of the benefits, etc, I just didn't know how to put it down on paper.
Anyone have anything else?......
Jen
 
-- "four" major credit cards.
-- 4 half-price choices
 
Last edited:
I recently done a double show with a passion party consultant and i was interested in knowing how much she made. She said well it depends on how much you pay for your kit. You can start off making as low as 10% all the way up to 40% but here's where it really gets bad. They have no host plan at all. I said if i were to host a show what i would i get? She said oh nothing. If i decide to buy something and give it away if comes out of my pocket. I just couldn't believe it. That's the same with home interiors and just about every other ds company that makes that much money. Why go through the hassle of having to purchase gifts and spend your time doing nonsense stuff when you can just let ho give the product away and make half the money. In the end it's better for us....we're not having to spend money to get hosts interested in something.....
 
I am sorry, it was an old flyer, and I sent it without updating it. Please change before you use it, and I will update my file.
 
I loved the flyer! Making those few changes is SO much better than recreating the wheel!! Thanks for sharing.
 
Also to change on the flyer is the 3 half-price items are now 4...

I also let people know that only $200 every other month to stay active... and that is soooo easy to do... plus if we go inactive we don't have to sign up again...unless it was over a year.


Our host program is awesome compared to many (or all) other companies... where else do past hosts get 10% off everything, and 60% off another awesome product!!-- nowhere that I've seen.

I have a friend that used to sell PC, and she started with another company, and she said it just didn't seem right for the past host to not get the 10% off... so she was offering that to her past hosts... taking it out of her commission!
 
That's an awesome flyer--thanks for sharing:D
A passion party gal had a show for me, she said that she can't take credit cards, unless she buys her own machine! Plus that would include paying all the fees that go along with that! Ouch, she thought that really hurt her sales.
One thing I think is great that wasn't mentioned above is our products sell themselves! The company is pretty well-known, and once people see the products in action & hear other people's testimonials, the products are easy to sell!:D Even those that haven't heard of PC.
 
  • Thread starter
  • #12
Here's an update of the FABULOUS flyer that was posted by mrssyvo. I made some adjustments according to the new policies, and based on the comments here. I can't wait to give this to my recruit lead. Hopefully it will really get her thinking.
Thanks again!!!!
 

Attachments

chefjenibel said:
Here's an update of the FABULOUS flyer that was posted by mrssyvo. I made some adjustments according to the new policies, and based on the comments here. I can't wait to give this to my recruit lead. Hopefully it will really get her thinking.
Thanks again!!!!
Click to expand...

Thanks for doing the work of updating it! That's what's great about this site:)
 
Another versionHere is another version that I have...Again, it was posted here, and I tweaked it. It's basically the same, but it's formatted a little differently, and has a little bit of different information. I like this one because the bullets don't run into each other for me (my eyesight is a little weird :D ).
 

Attachments

Here is a recruiting flyer I use. It adds in incentive product value, commission etc., to show prospective recruits why PC is a no risk proposition. It does need updating as consultant promotions change.

I think I would the flyer on this site originally.
 

Attachments

Who wrote up the 20% commission thing?It is absolutely dynamite! I learned stuff I didn't know and I have been doing this for some 5 years! It's wonderful to have such a great "weapon" against the other companies. YEE HAA PAMPERED CHEF! (I knew I had the right company!)
 
I didn't read through all of the threads but some DSA's charge a "membership fee" just to stay active and most of them charge a fee to the consultant to for the ability to take CC's.
 
Those are some great documents! I know they would answer some of the questions that might be at the back of someone's mind. How would someone not want to at least try it after reading that?!!
 
pampered1224 said:
It is absolutely dynamite! I learned stuff I didn't know and I have been doing this for some 5 years! It's wonderful to have such a great "weapon" against the other companies. YEE HAA PAMPERED CHEF! (I knew I had the right company!)
Click to expand...

John - not only is it a great "weapon", but we can use it without beatin down other DSAs. For some reason, there are people who like to carry inventory! Also, I have had other DSA consultants who don't have to carry as much "big stuff" like I do who comment on that. Those usually have their own inventory. To each his/her own!
 
Someone once said how MK or other companies pay 50%. To that I reply, oh yeah, they do. You just have to buy the product and keep an inventory.

Here's something that would break down shows into an hourly pay. This is actually on the back of my lapboards.
 

Attachments

Great documents, good to know I made a great decision with PC!
 

Frequently Asked Questions

Is 20% commission enough to make a living in direct sales?

While 20% commission can provide a decent supplemental income, it may not be sufficient for everyone to rely on as a full-time income. Success in direct sales often depends on factors like sales volume, team building, and personal effort. Many consultants find that they need to sell a significant volume of products or recruit others to achieve a sustainable income.

How can I increase my earnings if my commission is only 20%?

To increase your earnings, focus on boosting your sales volume by hosting more parties, expanding your customer base, and utilizing social media for promotion. Additionally, consider recruiting and mentoring new team members, as many direct sales companies offer bonuses or higher commissions for team sales.

What are the benefits of a 20% commission structure in direct sales?

A 20% commission structure can be appealing for new consultants as it allows for lower entry barriers and encourages sales through achievable goals. It can also foster a sense of community and support within the team, as consultants often share tips and strategies to help each other succeed.

Are there other ways to earn money in direct sales besides commission?

Yes, many direct sales companies offer additional income opportunities such as bonuses for reaching sales milestones, incentives for recruiting new consultants, and rewards for team performance. Some companies also provide opportunities for earning free products or trips based on sales achievements.

How does the commission rate affect my motivation in direct sales?

The commission rate can significantly impact motivation. A 20% commission may be motivating for some, especially if they enjoy the products and the sales process. However, if consultants feel that the commission is too low compared to their efforts, it may lead to frustration and decreased motivation. It's important to set personal goals and find ways to stay engaged and inspired, regardless of the commission rate.

You must log in or register to reply here.

Similar Pampered Chef Threads

Commission Incentives: Recruiting vs. Own Sales
  • DZmom
    • Recruiting and Team Leaders
Replies
4
Views
3K
BethCooks4U
How does commission work in direct sales?
  • TerraOB83
    • Pampered Chef Finances
Replies
5
Views
1K
pamperedharriet
Is Financial Success Guaranteed for Directors in Network Marketing?
  • phatratz
    • Recruiting and Team Leaders
2 3
Replies
68
Views
7K
ChefBeckyD
Why Now Is Prime Time for Direct Selling
  • NooraK
    • Recruiting and Team Leaders
Replies
8
Views
3K
jcsmilez
Director Directorship Dilemma: To Demote or Not to Demote as a Thirty-One Consultant?
  • pamperedbecky
    • Recruiting and Team Leaders
Replies
10
Views
1K
BethCooks4U
Is This Magazine Mostly About Direct Sales Companies?
  • sillylittlechef
    • Recruiting and Team Leaders
Replies
2
Views
1K
soccermama
Consultant Recognition: Celebrating Top Achievers in Sales for 2016
  • otisbg
    • Recruiting and Team Leaders
Replies
2
Views
5K
Admin Greg
Cancelling Backordered Chillzanne: Impact on My Commission?
  • Becky0216
    • General Pampered Chef Chat
Replies
7
Views
1K
PChefPEI
Motivating My Team: Tips and Tricks for Success in Direct Sales
  • sassypip
    • Recruiting and Team Leaders
Replies
13
Views
3K
sassypip
Director Navigating the Struggles of Direct Sales: A Personal Reflection
  • baychef
    • Recruiting and Team Leaders
2
Replies
40
Views
3K
Inomiamenda
Back
Top