Understanding the Director's Agreement: Rules and Requirements Explained

[kitchenqueen]

I am just curious as to what the Director's agreement consists of. I know you sign and submit a director's agreement after you have recruited your 5th consultant. I was sort of curious what the rules are, etc after you have promoted to director. Thanks in advance for any feedback!

 

[pamperedbecky]

I just took a teleclass last night called "Plan Your Promotion to Director" and the teacher went over this. I forget the specifics. There's the minimum # of personally recruited qualified active consultants to become a director. THere are minimum sales each month and for your cluster to receive the override. I really don't know what else. Hopefully a director can elaborate!

 

[kitchenqueen]

Yeah I was planning on taking that particular teleclass in August when I have more time to spare. If there is a director that can elaborate, that would be great! I have many goals set for my PC career and want to be prepared I guess and fully understand the guidelines. Thanks so much in advance!!

 

[chefjanet]

A Director will relinquish the position if he/she fails to meet any combination of the following requirements for any consecutive three month period:

1. $350 in monthly personal commissionable sales
2. $4,000 in monthly first-line cluster sales (includes your personal sales)
3. 5 active first-line consultants every month

*Once you have actually promoted to Director, it is easier to maintain the third requirement because the five consultants no longer need to be "personally recruited". Therefore, any additional consultants in your downline who are currently considered your "first line" because their recruiter hasn't promoted yet, count toward your requirement.

When you only have five active, first-line consultants, it can get hairy some months if not everyone submits shows- or if anyone goes inactive. Fortunately, every newly promoted director does get a "3 Month Grace Period" following the promotion so that no one would relinquish until a minimum of six months has passed.

Hope this helps! Good luck to you!!!

-Janet

 

[chefjanet]

More Information

Hi again,

I realized after I posted the requirements of directorship that I forgot to tell you that as a Director who has fulfilled the monthly requirements of the position, you are entitled to 3% overrides on your first and second line sales, as well as your personal sales. In addition, you are given a "Production Bonus" based on the composition of your cluster. Of course, there are many other rewards of the position, which you can find in our Recipe for Success. In order to receive the new fall product samples, for example, a director needed to submit a minimum of $1,250 in commissionable sales for three out of the four months prior to the new product introduction (March, April, May and June).

Feel free to ask any additional questions and I'll answer them if I can!

-Janet

 

[dianevill]

Another question

If you have 5 active consultants personally recruited, do you have to accept directorship? What if you don't because one is always on the edge of being inactive? Do you lose those recruits after a certain period of time?

Thanks,
Diane

 

[pamperedbecky]

The way I understand it is you don't HAVE to accept directorship. I've always heard you should take it if offered, but I see where you're coming from if one of the five may go inactive. Maybe wait until you get a 6th before accepting it? Kind of like having a buffer I guess.

I will soon have four recruits, maybe five (!), so I'm getting very excited to be inching closer! I've been wondering about how current directors would respond to the dilemma of having one teetering on becoming inactive, therefore losing directorship. Although I did read on the other post about having a 3 month grace period or something. That would give you time to maybe get another recruit or two.

 

[kitchenqueen]

A Director will relinquish the position if he/she fails to meet any combination of the following requirements for any consecutive three month period:

1. $350 in monthly personal commissionable sales
2. $4,000 in monthly first-line cluster sales (includes your personal sales)
3. 5 active first-line consultants every month

Thanks for the feedback Janet! I am alittle confused on #2 though - your firstline must submit atleast $4000 every month? It sounds like it wouldn't be hard, but I'm sure people have had slow months (like I did last month ) If anyone could elaborate on that for me, I'd appreciate it. I just want to make sure I fully understand! Thanks a bunch!!

 

[pamperedbecky]

That #2 is the same point that I would be concerned about too. I guess it does include your own sales, which is yet another reason to keep your own business consistent and strong. But I'd still worry about it. I guess that's all the more reason to keep on recruiting even after you make director!! They do say not to get to the next director level, then coast. You've always got to work it!

 

[kitchenqueen]

You're absolutely right Becky! That's all the more reason to work with your consultants and continue to get them excited. And to keep sharing the opportunity even after achieving 5 recruits. I don't plan on stopping!

 

[dawnsclassycupboard]

Depending on the makeup of your cluster the Director usually carries the bulk of that $4000. This is why it is sooo important that you continue to recruit to build you team. It is a little scary at first to think that you need to keep your cluster at that level but if you yourself have a strong business then the rest of it falls into place.

Remeber that old saying...20% of the people do 80% of the work. When you look at your cluster structure you will notice that out of those 5 that typically only 1 is submitting many sales and recruiting. When you get up to 10, it ill be 2 and so on. The more you build your team, the more busy bees you will have and that $4000. will be a concern of the past.

 

[PamperedEsther]

The Canadian Directors

need $5000 monthly cluster sales
5 active, qualified recruits

does anyone know the amount a Canadian director needs in personal sales?


Esther

 

[chefjanet]

Keep Building Your Cluster

It is very important that once you are promoted, you keep building your business by selling and recruiting. Unfortunately, as you've probably experienced in your quest to promote to Director, you will lose people over time and need to constantly work at adding new members. Hopefully, you can also inspire your downline to recruit so that your cluster will grow wide and deep. At first, your personal sales will make up a good portion of that $4,000 requirement, so you can not neglect your show schedule in order to work on developing your team. It truly is only about 20% of your team who does most of the selling. It's a juggling act, that's for sure!

If you are concerned about whether your small team is strong enough to support your promotion, I'd share your goal with them and ask if they are planning to be the founding members of your cluster. Ask them what their goals are and take that information into consideration. I've always been an optomist, and jumped at the invitation to promote as soon as my fifth recruit qualified. Unfortunately, as soon as I promoted last year, two of my five decided to give up their businesses! They were hanging on until I promoted to "help me out". I wish they had told me that! That just left me scrambling to recruit two more people right away. It was rather frustrating, but it made me work all the harder to avoid relinquishment. Now, I'm up to eight in my downline and am feeling a bit less pressure, but only a couple are submitting shows this summer. Hopefully, they will all remain active at the end of this month!

Would I have waited to accept directorship until I had a stronger team behind me? Probably not. As you know, it often takes a lot of hard work to make it to the point where directorship is offered to you. If I had known that I would lose two people right away, perhaps I would have made sure that I had another recruit or two, but sometimes you just don't know what other people are going to do. You have to look forward and just work harder to reach your own goals... As long as you know that you will still keep working hard to sell and recruit once you promote, and won't try to "coast", then you'll be fine. In my opinion, the benefits of directorship outweigh the challenges!

Good luck to all of you!!!

 

[kitchenqueen]

Thank you Janet for your advice! Right now I only have 2 recruits, but see 3 more as attainable. That's what got me to thinking what the director agreement consisted of. I am working hard on more bookings but also sharing the opportunity more often than I used to. I live in a military town where there is a constant flow of people in and out of town which is good because I am constantly meeting new people. However, with my possible recruits, they are worried about when they move and having to start their business up again. I too am moving in a year when my husband leaves the military but we are moving closer to family and have many friends in the area which will help get the word out and will book shows. But moving to a town where you don't know anyone can be scary and I can see how some of my leads are a bit reluctant to join. I don't want them to join just so I can be promoted, I want them to be happy with PC because in turn you become a happier person and more confident. It's so fun to see my recruits so excited about PC and it's great hearing about their bookings or their next big commision check! Anyway, I'm sure you understand what I mean. I want to be sure that my recruits are happy that they joined and see the possibilities like I do. But I can see how important it is to keep sharing your story. My goal is to have more than 4-5 more recruits before I move...sounds like alot (I KNOW!) but I am truly working hard to get there. Thanks everyone for the suggestions and feedback! This site helps make my job easier!

 

[chefjanet]

Erica, you have the right attitude when it comes to recruiting! You need to put the recruit's needs ahead of your own. If the recruit is not achieving her/his goals, then you won't be achieving yours as the director.

Keep plugging away! I'm sure it's not easy to recruit people when you will be moving soon. That's all the more reason to build strong relationships with your current recruits and your potential recruits. By keeping in close contact with them now, they will know that they can still rely on you when you are not close by.

Good luck to you, and to everyone who is working toward the goal of directorship!!!

 

[JBane]

<<<I realized after I posted the requirements of directorship that I forgot to tell you that as a Director who has fulfilled the monthly requirements of the position, you are entitled to 3% overrides on your first and second line sales, as well as your personal sales. In addition, you are given a "Production Bonus" based on the composition of your cluster. Of course, there are many other rewards of the position, which you can find in our Recipe for Success. In order to receive the new fall product samples, for example, a director needed to submit a minimum of $1,250 in commissionable sales for three out of the four months prior to the new product introduction (March, April, May and June).>>>

What is a "Production Bonus"?

 

[kitchenqueen]

Thanks Janet! I am very close with my recruits now. We've all become very good friends! That's another reason I love my job is because I am meeting alot of new people! I like to think of myself as being very supportive to my recruits and I love being able to help them. And when I move, I'll be about 2 hours away so if one of them has something special going on, it's not a big deal for me to drive up here. With all of us being military families, we all know that moving is in the future somewhere! My goal is to become a director, but I know I won't get there if I do do my job as a director. Thank you for all the feedback too! Like many of you, I like to know what I am getting myself into. So having this information helps tremendously!

 

[D_Patel]

Moving a step ahead...

What comes next after Director ? How many recruits or is it first line directors to promote to the next level. Iam just curious ! While we were on the subject I thought I would ask ! Iam working on Future director ! I had it but then lost one! UGhh that is so frustrating !!

 

[pamperedmom2owen]

I, too, am working toward directorship! I took the step up to director class with my director and that got me really excited! Right now I have 3 recruits, but I know my first one is not going to sell anymore. But I know my 2 newest recruits are really excited about becoming consultants! One is already excited for conference next year! I'd love to be a director by January! The part that concerns me at first is keeping the 5 active recruits! I would hate to go into relinquishment! If you do end up there, you can promote again, right?

 

[chefjanet]

Answers to your Directorship questions...

Hi, it's me again! Hopefully, I can answer all of your wonderful questions! First of all, what is a "production bonus"? It is a monthly payment based upon the composition of your cluster and what level director you are. This is in addition to overrides you receive based upon your cluster sales. I basically use the production bonus to help offset expenses which I incur to recognize and reward my cluster members (pins, ribbons, jewelry, incentives, etc.) and sales meeting expenses. New Directors start out by getting a $50 production bonus during each of their first three months. After that, your PB increases as you continue to build your team and is based upon the composition of your cluster.

What are the levels of directorship? First you start out as a Director, with five active, personal recruits. Once you have promoted two directors from your first line, you become an Advanced Director. To become a Senior Director, you must have four first line directors. Executive Directors have eight first line directors, and Sr. Exec. Directors have 16 first line directors. Our National Sr. Exec. Directors have a complicated "leadership structure" that they must maintain for two years before promoting to the most prestigious positions in the company.

Regarding Director relinquishment and what that means... You want to avoid it! Once you relinquish directorship, you can repromote, but you must do it within the following three months after the relinquishing cycle ends, or else all of your recruits will be reassigned to your upline director permanently. During the "relinquishing period", if you have at least two personal active recruits, you will move to "Future Director" status. Otherwise, you move back to the level of "Consultant". If you fail to repromote during the three months, you go back to square one, so to speak, and must promote through the regular Director promotion requirements again. Definitely not a desirable situation.

Hope I answered all of your most pressing questions! For more info. on the REWARDS and LEVELS of Directorship, look in our business guide, pp. F-6, 7.