Maximizing Your FPV: How to Address Reservations About MLM Earnings

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Discussion Overview

This thread explores participants' experiences and thoughts regarding addressing potential recruits' reservations about earnings in a multi-level marketing (MLM) context, particularly related to the Pampered Chef business model. Participants share how they communicate the nature of earnings and incentives to potential recruits.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Exploratory

Main Points Raised

  • One participant, identifying as a consultant, shares their experience of explaining to a potential recruit that their paycheck is based on personal sales, with any additional earnings being a bonus.
  • Another participant mentions considering the potential recruit's perspective on future earnings from their recruits' sales.
  • One participant discusses being transparent about receiving a management bonus from the company for training and supporting recruits.
  • Another participant emphasizes the importance of honesty, suggesting that conveying a desire for the recruit's success without mentioning personal incentives may come across as insincere.
  • Several users mention the significance of incentives in their roles, explaining that they help with training and support for their recruits.
  • One participant reflects on their own experience of asking similar questions when they were considering joining, highlighting the importance of understanding the earnings structure.
  • Another participant notes that familiarity with the company can alleviate concerns about the MLM structure and earnings.

Areas of Agreement / Disagreement

Views differ on how to best communicate the relationship between personal incentives and the success of recruits, with some participants advocating for complete transparency while others focus on the importance of conveying genuine support.

Contextual Notes

Participants share personal anecdotes and insights based on their experiences as consultants within the Pampered Chef community, reflecting on the challenges of addressing common misconceptions about MLM earnings.

Who May Find This Useful

Consultants looking for ways to effectively communicate with potential recruits about earnings and incentives may find the shared experiences and perspectives valuable.

amy07
amy07
Messages
2,785
So, last night I was doing some host coaching, and I brought up, the "I'm not sure if you knew this or not, but you can use your FPV to offset the cost of the kit". So, the lady told me that she had been seriously thinking about it:D , and of course had reservations if she could actually do it. I was trying very hard not to "throw up" on her, but then I got hit with this question, it's not the first time but it always makes me feel very ackward, "Don't you get money from everyone you sign?" :eek: :eek: I want to be honest, so right now I do not since I only have one recruit, but I know what she was getting at. How do you let the potential know that you are more interested in them succeeding than just padding your own wallet? My only response was that, I still have to meet my personal sales goals regardless of what anyone else does, that my paycheck comes from my hardwork, anything else is a bonus I earn.
How do you guys handle this? I don't want to get caught off guard and stumble about this ever again.

Oh, but this did make me feel better, she told me that she was just going to really watch me at her show to see if she could do this.
 
I haven't recruited yet, but I would think of her question in a different light. Maybe she is thinking of her future, and whether she would make money from her recruits' sales, etc. Sorry I can't help more :)
 
  • Thread starter
  • #3
oh, good point Jennifer. Thanks!
 
Just be honest. I let them know that we both get trip points when they qualify (and that I would have gotten 25 catalogs, but I'm a director) and that I do make 3% (1% for FD) of their sales. I make sure to let them know that PC pays that and it doesn't affect their income at all. I also let them know that it helps with the incentives I give and the training I do with them.
 
Maybe that would be the question to ask. Are you interested in what my incentive is to help you? Or wondering how this will work for you in the future? Yes, I do receive a bonus based on what the people on my team do each month. This is a way to "pay" me for the time/money I spend training you, which is great b/c that is one of my favorite parts of my "job" b/c I'm helping you achieve goals. What interests you most about starting a new venture with me?
 
  • Thread starter
  • #6
oh thanks so much for all the great points!! I did mention the training part of it, but I guess because i don't get incentives from my own director I forgot about that. Although I have every intention of helping my recruits even if I am not a director yet. I gave my first recruit several business supplies to help her get a start prior to getting her kit, including postcards from Nancy's. (and she qualified in her first 30 days!!) And I know that I should have brought up the trip incentive points too! you guys are awesome, thanks! I refuse to get too excited but I know this girl is a hardworker and would be great at this, send some good signing vibes my way.
 
When someone asks, I tell them I get a "management bonus" from the company to help train and support them.
 
I would be totally honest and just explain it the way Kate said. I do recruit because I would like the extra incentives that comes with being a director etc..I think making it sound like you just want her to succeed without anything in it for you will come across as fake (even though I am sure that is not your heart and like most of us in PC we really do want our recruits to be successful regardless of incentives). Just be honest. Okay, my two cents.
 
My director points out that there are incentives to signing people up, but she only succeeds when we succeed.
 
  • Thread starter
  • #10
:D :D She's the one who signed yesterday, so things worked out! WOO HOO, and she already has her first show almost ready to submit - the outside orders from her show I did on Saturday! She is ready to roll!!:D
 
That's great!
 
Awesome!! Way to go!!!:D
 
Congratulations, Amy!!! Rae Ann, I really love what your director's response would be.
Sometimes what people say can throw us off big time. Over time, you will learn to not react to the this and realize that it probably wasn't meant to come out the way it did.
I had a meeting with my team last night and my goal is to get the recruiting started. We set up 2 Cook and Look sessions this month and I told them that I expect that:
1. They will RSVP
2. Show up with their recruit
3. Don't come if you do not RSVP.
I felt like such a *itch, but they know I have two other major things going on in my life and I shared with them that I want to help them succeed and if that was going to happen, it has to be more than just "my wish". I then explained that I was taking 2 nights away from my show schedule so PLEASE use this resource and let's grow your teams! They are excited and so am I!!
Keep your fingers crossed!! I want to become an AD by June 30, 2008 and there is a lot of work to be done!!:eek:
 
Thats awesome! Congratulations!
 
>"Don't you get money from everyone you sign?"<

I can understand this question. I asked basically the same thing when I was signing up. I had heard about "people making money off of those that htey signed up" and I wanted to make sure that what ever money I earned was just that my money. The way it was explained to me, and how I explain it if asked, is that yes once you reach a certain level you do "make money" from your recruits but that the money comes from Pampered Chef not ou tof their paychecks. It made me feel good to hear it that way and it might help your person too.

Penny
 
This wasn't one of the questions I asked when I signed up. However, had I not been so familiar with PC, I probably would have asked. I would have been making sure that PC wasn't some sort of pyramid thing. With those, you don't make any real money by selling to customers. You only make money by convincing others to sell, then selling the product kits to them.

Since I had been a customer for 10 years and a host for 8 when I signed up, I knew that commission was based on sales.
 

Frequently Asked Questions

What is FPV and why is it important in MLM earnings?

FPV stands for "First Personal Volume," which refers to the total sales volume generated by a consultant in a given period. It is crucial in MLM earnings because it directly impacts commissions and bonuses. Higher FPV can lead to increased earnings, making it essential for consultants to maximize their sales efforts.

How can I address concerns about the legitimacy of MLM earnings?

To address concerns about the legitimacy of MLM earnings, it's important to provide transparent information about the compensation plan, share success stories from reputable consultants, and highlight the company's track record. Demonstrating the potential for earnings through real-life examples can help alleviate reservations.

What strategies can I use to increase my FPV effectively?

To increase your FPV, focus on building strong relationships with customers, hosting regular cooking shows or online parties, and utilizing social media to reach a broader audience. Additionally, offering promotions or bundle deals can incentivize customers to purchase more, thus boosting your FPV.

How do I handle skepticism from potential recruits about earning potential?

When addressing skepticism from potential recruits, it's essential to listen to their concerns and provide factual information about the earning potential within the company. Share personal experiences, emphasize the support and training available, and clarify that success in MLM requires dedication and effort, just like any other business.

What resources are available to help me maximize my FPV?

Many resources can help you maximize your FPV, including training programs offered by the company, online webinars, and mentorship from experienced consultants. Additionally, joining support groups or forums can provide valuable tips and strategies from peers who have successfully increased their FPV.

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