Should I Have a Lending Policy for My Direct Sales Team?

  • Context: Director 
  • Thread starter Thread starter amy07
  • Start date Start date
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Discussion Overview

The thread explores various personal experiences and opinions regarding lending policies among direct sales team members. Participants share their approaches to lending products and supplies, highlighting the challenges and lessons learned from their experiences.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Exploratory

Main Points Raised

  • One participant, identifying as a consultant, reflects on being overly generous with lending products, leading to team members taking advantage of the situation.
  • Another participant shares a strong stance against lending, citing negative experiences and emphasizing that all consultants should earn their products.
  • One participant mentions a flexible lending policy, allowing team members to borrow items as long as they are returned promptly and clean.
  • Another participant describes a limited supply store at team training for emergencies and a cautious approach to lending with signed agreements for borrowed items.
  • One participant recounts a past experience of losing track of borrowed items and now insists on written agreements for loans.
  • Another participant expresses frustration over unreturned items and considers implementing a deposit system for borrowed products.
  • One participant notes that their team rarely borrows items due to geographical spread, but shares a past experience of borrowing without issues.

Areas of Agreement / Disagreement

Views differ significantly on lending practices, with some participants advocating for strict no-lending policies while others maintain a more lenient approach. No clear consensus emerges on the best strategy for lending products.

Contextual Notes

Participants share experiences from their own teams, reflecting a variety of circumstances and personal management styles regarding product lending.

Who May Find This Useful

Consultants looking for insights into different lending practices and the challenges associated with them may find this discussion relevant.

amy07
amy07
Messages
2,785
I think that I am overly generous to my team. I often will let them borrow products/supplies from me. Now, I realize that I have created an environment that some are blatantly trying to take advantage of. As in, they don't bother to try to earn the products or buy the sample packages because they know that they can borrow from me.

So, in an attempt to take control & make them take responsibility for their own business I'm going to revamp my lending policy: I'll only lend products to Consultants who are in their first 30 days. After that, they should have PC dollars to pay for what they need. AND seasoned consultants need to start taking control over what recipes they offer. And for supplies, I will no longer let them "borrow" them and give them back to me with their next supply order - they will have to pay me when they get them.

What is your policy on lending to your team?
 
NO LENDING WHATSOEVER!I made this mistake and learned from it!!!!!I thought I was inspiring them by telling them I earned the items free... not so much. When I started having to pull teeth to get the items back, one consultant actually said to me, "What's the big deal? It's not like you PAID for it!"At a conference I learned from an ED that she NEVER lends products. Everyone can earn them. Everyone... either through the sell-a-thon or using the PC$ they earn in their 1st 30 days. And if they don't do that, they can get them 50% off as samples.At one point, I did do the *leave me a check for the amount of the item* (full price) and if I didn't get it back by a certain date, I would deposit the check and get myself a new one. That backfired because I would deposit the check and then they would bring it back to me all pissy.Good luck!
 
I let team members borrow products as long as I don't need them for a show and they return them clean within 24-48 hours. (I'm currently not near most of my cluster, but that was how I did it when I was nearby.)

I've never been asked to borrow supplies...but I do place catalog orders in sets of 100 and let them buy from me at that rate.
 
We have a little supply store at team training where they can buy some supplies. It's very, very limited...like, 2 packs of catalogs, opp brochures, etc...it's really only meant for emergencies.

As for lending...I've done it but I don't do it very often. We have a full kit we've put together that consultants can use for display but they sign a form saying if they don't return some or all of it, they will be charged the full cost of the missing / broken item(s).
 
I have let consultants borrow things but am now no longer owner of an APCS and stand because of it. I lost track of it (actually I'm quite sure I know who has it but have nothing in writing - she's no longer on the team either).

Now if I loan something it's written down and expected back by a reasonable date.

I do sell catalogs and other supplies if I have them and someone needs them at cost. I end up eating some tax and of course the shipping but it's a service for my team in my mind.
 
  • Thread starter
  • #6
Thanks for all the responses. Here's why I'm getting annoyed:
1 Consultant has had one of my trifle bowls for almost a month
1 has owed me door prizes/catalogs for 2 months
1 has an Open House for this weekend and asked to borrow some of the new products. I explained that I have a show for the same day and that if she let me know what she needed I'd see what I could do. Her list? ALL the bamboo, pineapple wedger, steamer, sauces, mixes, collapsible bowls, garlic slicer, peeler, sheet pans, etc. Uh hello? Why don't I just load all my spring products up and bring them over to you....:grumpy:

It's good to hear what you guys do. I know realize that I should've set boundaries a LONG time ago. I really like the idea of paying a deposit (check for value). I'm sure I'd get my products back a lot sooner too! I will explain my new procedure next week at my meeting.
 
I know my NED charges a deposit if you borrow something from her.My team hasn't borrowed much from me. they are all spread out, so it's just not convenient.I did borrow things from my director in the past and she never required anything of me. I always returned it, though.
 

Frequently Asked Questions

What is a lending policy in the context of a direct sales team?

A lending policy is a set of guidelines that outlines how team members can borrow or use company resources, such as products or promotional materials, for their sales activities. It helps ensure accountability and proper usage of resources within the team.

Why should I consider having a lending policy for my direct sales team?

Having a lending policy can help prevent misunderstandings and misuse of resources. It establishes clear expectations for team members, promotes responsibility, and protects the company's assets, ultimately leading to a more organized and efficient sales operation.

What are the key components of an effective lending policy?

An effective lending policy should include guidelines on who can borrow items, the duration of the loan, the condition in which items should be returned, and any associated costs or penalties for late returns or damages. It should also outline the process for requesting and approving loans.

How can a lending policy benefit my direct sales team?

A lending policy can enhance team morale by providing clarity and structure, reducing conflicts over resource usage. It can also improve sales performance by ensuring that team members have access to the tools they need while holding them accountable for their usage.

What should I do if a team member violates the lending policy?

If a team member violates the lending policy, it’s important to address the issue promptly and fairly. Review the specific circumstances, communicate the violation, and implement appropriate consequences as outlined in the policy. This may include warnings, restitution, or temporary suspension of borrowing privileges.

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