Getting Advice: Consulting Leads with a Catch

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A consultant is facing challenges with two potential recruits who want to sign up as a team under one name, which raises concerns regarding tax, insurance, and partnership dynamics. The consultant advises against this arrangement due to the risks of friendship strain and the complexities of shared responsibilities. It is suggested that each individual should sign up separately to promote accountability and avoid potential conflicts over commissions and benefits. There is emphasis on the importance of understanding insurance coverage and tax obligations, as they will only apply to the person who officially signs up. The conversation also touches on economic factors influencing potential recruits' ability to afford startup kits, highlighting a trend where individuals seek to split costs due to financial constraints. Ultimately, one recruit signed up while the other continues to express a desire to collaborate under a single name, despite the consultant's reservations. There are calls for the return of lower-cost kit options to make joining more accessible, and participants are encouraged to advocate for these changes.
chefkugler
chefkugler
Messages
115
Ok I need some advise here. I tried to call my director and still no call back. I should have known.
Anyway.....
One of my consultants called me and has 2 recruit leads. ( I thought, wow there is a god). Well there is a catch to it. The one girl wants to sell and have her friend help her. So they want to sell, but together as one. I explained that only one could be the consultant and the whole tax and insurance thing. I told her it would be better for the girl to sign and then sign her friend under her. They could join together.
they want to sign under one name and still work together. She would then pay the other gal half of her commission. Which I said I didn't think she could write off the expense.
What do you all think and what would you do??

Any advise is appreciated.
 
They should definitely re-think that idea. How many friendships have dissolved once friends became business partners? What if one ends up doing more work than the other? What if they earn a trip? What if one wants to quit?

It is much better if they individually sign up. They could encourage each other along the way. IF this is a sticking point for them and they won't see reason you almost have to just let them do it. I don't think it is a good idea. I only see the potential for disaster; however, they might have worked out a plan that will solve it all. You might want to sit down with both of them when you talk about it.
 
Also, the insurance will only cover the consultant who signed the agreement.My view on this is like when a host wants to *combine* parties (PC and something else)... it never works out well for the host. She doesn't get the benefits she could have by hosting each show separately because guests are splitting their budget between the two companies. It's never beneficial.Ultimately, like Sandra said, the decision is up to them, but basically, it is NOT PC's policy to sign consultants like that and there is a reason we don't. That's the direction I would steer them in.Good luck!
 
  • Thread starter
  • #4
I did tell my consultant that it would be much better for this girl to sign and then sign her friend under her. I stressed to her that whoever signs is the one everything is under and the one who does the taxes and all.
I hope that this lead realizes why it is better to have both ladies sign. I just didn't want ot word it so that they didn't sign at all.
 
Funny, that is how I wanted to sign. Turned out that we didn't end up do ing it at all, and then 6 month's later I decided to try it myself. Incidently my friend decided to do another business and just didn't put any effort in. She is my bestest friend and I love her, but I am glad we didn't do it together. She admittedly does not Direct sales but she is one of my biggest cheerleaders. She will probably take over as my office assistant when Melba moves after I take her to MEXICO!!!
Anyhoo, I would make sure they are aware about insurance, I would also ask them who gets to keep the presents, and who gets the write offs. Invite them together to a meeting and see what they think. It seemed to me a good idea also, but reality eventually sets in. 1 probably wants to and the other is going along to help.
 
Very odd that this came up. I will be talking with a host of mine that was running a store with a partner and they work very well together (am going to find out about why the business didn't work but I think I know...the area). Anyway, she e-mailed me and she wants to sign up and in her second e-mail asked if she and her business partner could do it together.

My response was just as what you have all described but I did forget about the insurance factor too. Thanks everyone for your input. You have helped more than one of us!

I am encouraging her to sign her friend and become a Senior Consultant as soon as April 1st!
 
I think that as the economy is getting fuzzier people are looking to do this to split the cost of the kit. I have had 4 people in two months that want to sign and just cannot afford the $155+--even with the hostess discount. I did a show three weeks ago and we marketed her show as this being her "help me start my business" show--she got 5 bookings, and then they had family issues and she just cannot even come up with the $115. I have had 3 others that could get bookings no problem, just can't even come up with the kit cost. Unemployment is 9.2% here in California right now and it's just a little snug for lots of people.
 
Tastefully simple has a program right now where it's $170 to join and they get all the food and supplies they need to do 10 shows.They pay $57+ now, then have the option of splitting the rest into two payments. If they do $1000 their first 30 days TS gives them a gift certificate worth the balance, which they can use to purchase more products or pay their kit off. My girlfriend that sells TS has recruit 6 people in two weeks. People have the desire to sell, it's just that the kit is too steep for them.
 
  • Thread starter
  • #9
The two gals are coming to our kick off meeting this Saturday. So I hope it paints a better picture for them as to why they would want to sign seperately.

Thank you all for you help on this...
 
I wish they would bring back the $80 and $100 kit credit options. We should send an email!
 
  • Thread starter
  • #11
Just to update you all on what the outcome was:
Both ladies came to our kick off meeting this past weekend.
The one gal signed last night. ( yippee, I have my 2nd senior consultant now)
My consultant and I stressed over and over to the 2 ladies that only one would be covered for insurance and the one would have to do all the taxes. Even so they still want to sell together as one person. I pray that soon the other will realize she should sign seperate.
So I called my consultant this morning to give her a big congrats.( her first recruit) and she tells me that in looking at the agreement info, they signed as Sandy and used Tammy's email address and mailing address and the phone is Sandy's. So now I'm trying to reach Sandy to tell her that her kit is going to be shipped to the address she gave and it will have HER name on it.
Why can't this be simple?
 
good luck w/that Melissa!!
 
Chef Kearns said:
I wish they would bring back the $80 and $100 kit credit options. We should send an email!
Click to expand...

You and me too!!! And I like the payment option. Ship part of the products and you get the rest upon the second payment.
 
If you liked the $80/$100 options, email in your requests! My NED has been telling us to do this for weeks.
 

Frequently Asked Questions

What are consulting leads in direct sales?

Consulting leads in direct sales refer to potential customers or clients who have shown interest in receiving advice or guidance about products or services. These leads are often approached for personalized consultations, where a sales representative can showcase their offerings and address specific needs.

How can I effectively generate consulting leads?

To effectively generate consulting leads, focus on building relationships through networking, social media engagement, and hosting informational events. Offering free workshops or webinars related to your products can also attract individuals who may be interested in a consultation.

What should I consider when offering consultations?

When offering consultations, consider the value you provide to the potential client. Ensure that you have a clear understanding of their needs and how your products can meet those needs. Additionally, be prepared to answer questions and provide solutions that demonstrate your expertise and the benefits of your offerings.

Are there any potential downsides to consulting leads?

Yes, there can be downsides to consulting leads, such as the time investment required to nurture these leads without guaranteed sales. Additionally, some leads may not convert into customers, which can be discouraging. It's important to balance your efforts and focus on leads that show genuine interest.

How do I follow up with consulting leads?

Follow up with consulting leads by sending personalized messages that reference your previous conversations. Offer additional resources or information that may be helpful to them. Timing is crucial, so aim to follow up within a few days of your initial contact to keep the momentum going.

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