Understanding Active Status
The following information is from Julie Potts. You'll see that at the bottom she suggests ways to get your $200 WS in. She has excellent suggestions. A point I want to emphatically make is that we are NOT to sell at 50% to our co-workers to get our order in. We are to sell at retail prices to our customers. You as a consultant are the only one to have the 50% advantage on all of your products. When you try to get your order together by telling your friends and co-workers that you'll give them the consultant discount of 50% if they order from you, you undermine our marketing plan, sabotage your own business, and hurt every other MK consultant out there who is trying to earn a living by selling at retail.
Why wouldn't a co-worker want to order at 1/2 price? Of course she would. And she tells someone else who tells someone else and shortly, you are servicing someone else's customer at 50%, you're doing all the work, and you're not making any profit. And you've taken a customer away from another consultant. If your co-workers want 50% discount, they can hostess a class or become a consultant. Of course you can offer a special discount now and then, but when a customer always gets a big discount, she will always expect one. Don't get trapped into this situation. We join MK to make money and to have the privilege of getting our own products at 1/2 price. Please don't sell to your customers at 50% discount. Sell at full price and reap the rewards! Thank you for allowing me to get on my soap box! Donna Bayes
by Dir Julie Potts
An email from an almost terminated Consultant gave me some insight that may need to be passed on to you about "active" etc.
Active = $200 min order plus 2 months (ex: order Sept-active for Sept-Oct-Nov) A1, A2, A3
Your active status is important for Earned Discount and if you are a recruiter, you must be active to get a recruiting commission. Active status is also important when earning a car and becoming a director, your recruits must be active to count toward the 5-8-12-30.
Inactive = following 3 months after Active Status (ex: Dec-Jan-Feb) I1, I2, I3
You do not receive a recruiting commission but you still receive company and unit literature.
Terminated = 6-12th month since your last $200 order (ex Mar-Aug) T
Your website is frozen. You lose your recruits. You are no longer on the company mailings like the Applause.
A $200 wholesale order is so simple to pull together! I could do $200 a quarter just for my family. Add 2-3 friends who are ordering $50 each plus you and there's your $200. Buy up some gifts for upcoming birthdays and Christmas.......there's an easy $200 to $400 order at a 50% discount.
If you are a Hobby or Part-time Consultant or maybe you have stock but life has you on-hold......IT'S VERY IMPORTANT THAT YOU DO THE 60/40 SPLIT!!!! The 60/40 split is when you sell MK at retail and you take 60% of the cash collected and set aside for restocking, this includes sales tax. The 40% is your profit and business expense money. What typically happens is that many of you are selling bits here and there and 3-6 months later, you get the reminder of your termination status. You haven't set aside part of your sales......and then you feel like you are taking personal money to place an order. You start to wonder where the profit is...............you spent it already when you took the 100% of the sale and put it in your personal account. When you give products away for free...you need to take the 50% plus tax out of your personal account and add to your restock account so that you have the funds to reorder. You would have written a check if you had bought her a gift at the mall...just buy it from yourself at halfprice. You can do the same for your personal products too....to be sure you have what you need when it's time to reactivate.
Let's say you have no stock and you want to place a $200 order but you don't have the money.....
Take your kit and hold a class...one class averages $200 in salesTake your kit and hold a few makeovers....average is $75-$100 per personTake some books to work and have your co-workers shopHave an online web party for family out of townYou can offer 5 people $60 for $50 so that you can collect $250 to cover tax..and you will get an additional $100 in retail for yourself plus you placed a reactivating $200 order!Ask a friend to have a Book Party for you and she gets $50 free MK with $200 in salesIf you have the products on hand then ....
Any of the aboveTake a basket of products to sell at work or the ball field or PTA etc.Have an open house with your family, friends and clientsI'm sure you can come up with even more creative ideas.....the key is that most of you often say that you don't want to place a $200,
because you don't have the extra money right now. OK, so let your customers pay for it!!! That's the plan to begin with. :)