On Crafting Income Streams in Direct Sales for 2020
Four Guiding Principles to Assist in Creating Performing Marketing Income Without Losing your Sanity
Hello Medium.
I’ve been MIA for quite some time because my life has pushed me onto projects that pulled me away from writing- a past time I quite enjoy and see myself being consistent in. This is the moment where I get back up after being defeated and stand tall to write another story.
I’m about finished with my #75hard Challenge through Andy Frisella-CEO of 1stPhorm. It’s essentially 75 days of building habits that are irregular to most people and forces you into making hard decisions to earn grit, confidence, tenacity, and ownership in your own life. It’s the best thing I could have done for myself in 2019, I had quit my job and knew I needed some turbo boost going into Q4 to carry momentum into the new decade. During this 75 day challenge, I’ve been focused on doing what's best for me and the vision I have for myself rather than someone else’s vision for me.
When I first got into direct sales, “the dream” was set up, pitched, and force-fed down my throat to really pull me in. Fresh out of college and seeking massive career growth, I immediately thrived because I was in pursuit of this lofty goal that someone else had crafted for me. I spent years, although required for learning, working under a model that was best suited for someone else’s vision and not my own. Looking back, I would have never found the industry had I not pursued that opportunity yet in hindsight I would have done many things differently that I wish to now pass onto to you.
I’m now hyper-focused on crafting a client-portfolio of revenue streams that are flexible with my life so I can work ON business; not stay in it. Before, it felt like I was always balls-deep in a project on behalf of someone else who used my ambition as a workhorse to scale their opportunity. I would earn great money- yet the value exchange never felt quite right. Sometimes, that’s part of the game and you may find yourself doing the same. The beauty is that the market is ever-changing and so aren’t the campaigns. Projects you thought would last forever crumble at your feet. Leaders you thought you were with for good disappear and get replaced. Teams you work on switch, roles reverse, and you can find yourself in a totally different life very quickly- this can be great or terrible pending on the decisions you make and the deals you accept! A new project will show face and seem popular then die out shortly after- also part of the game. What I’ve attempted to do is provide a short list of principles you can use to generate a “good deal” for yourself so no matter where you’re at- you can apply leverage and grow or find yourself in a better position on a new project.
Now, a good deal is completely objective based on what an individual wants and where they are at. That is why these principles apply at all levels- rep, manager, owner, etc. and across all industries. They are designed, should you follow them, to keep you operating at your best and also consider all options when it comes to generating an agreement for someone to pay you.
This isn’t an attempt to shortcut or get around the fact that some dues are always owed when it comes to making money- you have to put in work. Once you’ve accepted the fact that nothing comes easy, especially in direct sales, you can easily decide that the price of victory is worth it and be willing to accept any difficulties that lie ahead. This prevents you from backing out and also stressing if you weighed the options going back and forth.
While preparing myself mentally for the new decade, I’ve been working on strategic partnerships and relationships that can lead to the outcomes I’m after- the ones that specifically make progress towards a life I want to live. A combination of years of experience including good/bad deals, being involved at all levels of marketing agreements, and the willingness to help others has led me to write this article.
May it be used as food-for-thought or as a guiding compass if you are a 1099 rep seeking to set yourself up as best as possible. I’m going to keep my rules for crafting deals span across the industry based on principles rather than specifics:
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5 GUIDING PRINCIPLES FOR GETTING THE DEAL YOU WANT
1. Never Split the Difference
One of my favorite books I’ve ever read by Chris Voss. It’s a negotiation book that I must have highlighted/read 10+ times over and specific pages 50+. In terms of value- this book has overextended when it came to me having a better understanding of communicating with people you have to negotiate with. The core of the book is about the concept of NEVER going 50/50 on agreements. The “win-win” is described as a weak way to arrange deals and almost always leaves money on the table when it comes to setting yourself up for the best position possible.
Why is this a guiding principle? Simply put- the leverage from gaining a better position can effectively give you compound gains. If you make $100k in commissions on a baseline deal but can negotiate a 10% higher commission for yourself- you’ve earned your way to putting 10k aside for emergency expenses if you haven’t already, for example. This is a building block to protecting your wealth and starting to build what’s really important; your financial fortress. You can take care of yourself and treat better positioning as incentives for you taking the contract. I essentially look at this the same way I look at credit card bonus offers- except you can create your own bonuses by negotiating the best deal. It’s up to you to find which company is going to give you not only the best offer in terms of lifestyle but also the unique value propositions that come with accepting the gig. Find the person you need to be speaking to that is in charge of your “deal,” not a gatekeeper, and sit down with them to see what you can create. You do this with 3–4 people and all of a sudden you have the power to make an investment, your time and energy, into the right vehicle that’s based on terms you’ve created for yourself in consideration of what you want.
Before you get told, “you’re working towards a bigger picture” or “this is the best deal on the market”- reconsider the vanilla, cut-from-the-same-cloth offer you’re accepting-that everybody else can also get. If you’re utilizing the same opportunity the rest of the market has with nothing unique put into the mix for you- chances are you said yes to the first thing that was thrown your way and you missed out on a unique deal that can assist you longterm.
Note: This is not to be said that the goal here is to create a situation where no value is provided on your behalf yet you take more than deserving because you bullied someone into an agreement. This leads to bad business and an opportunity doomed to fail. A precursor to never split the difference would be; knowing your worth and how you provide that value. This is about knowing what your outcome is for your own life; your ideal work schedule, environment, network, opportunity, gross margins needed to sustain your lifestyle, etc.
When you know what you want, you have a better understanding of what you need to ask for to make that happen. Below are examples at different layers of the business NOT splitting the difference:
Rep-Level: Coming on board at $100/sale entry-level but negotiating in a spiff of $20/sale once you have 100 sales approved in x amount of time. 2k bonus.
Manager Level: Bringing your crew of 10 guys to a marketing company on an offer you make $150/sale with $50 in overrides for $200. You get down to the nitty-gritty and realize the only support the marketing company offers is they do payroll for you and “back end support.” You push the envelope of getting paid $225 for 60 days with the promise of being “self-sustainable” (ALSO DOING IT MORE IMPORTANTLY) and set an incentive that you stay at that pay level if you produce x. You make an additional 12% off the contract and can add that to your team’s commissions- earning their respect and more importantly letting them know you’re actively taking care of them. This 12% bonus can turn to dividends on the premise of loyalty alone.
Owner Level: Seeking an MSA from a company to sell on behalf of and getting offered a flat rate for payouts. You lay heavy-handed on what your value is and why the company would want it and press for an additional term. “For the past three years, our company has led with a 90% approval rate and zero complaints. It seems like a team that provides high retention and low compliance problems would be beneficial to you.” When you can effectively point out your value- you’re in the clear to ask for more. If the payment is to remain as is, you can always get further reimbursements through tying residuals or high-usage accounts to it for the cherry on top.
Not splitting the difference can be used in all different sorts of creative ways I’ve failed to mention here, the examples are just to get your gears turning. Negotiating to put yourself in the best position possible is laying the correct foundation to build a reliable income stream.
2. Small Giants are Evergreen
Do you ever feel growth pressure? A better ask; when was the last time you felt like you weren’t responsible for growing the business more? For most of us, the answer is going to be: rarely has a day passed I felt no need to grow my income/team/company. I think the good news is as the entrepreneurship culture passes its pinnacle- the days where everyone fakes a life for the sake of wanting to be clever, we’re going to clear up some of the truths around unrelenting growth and “moonshot thinking.”
The reality is, 99.99% of us on this planet will not launch the next startup that changes the flow of the universe. The notion of “hustling your face off” and “being the best,” (compared to what, anyway?) is a sad story to hear considering a top regret in people’s lifetime is wishing they worked less. Even if you’re passionate about what you do, the idea is to stay great at a manageable size such that you have no external pressure to grow.
When I’m seeking campaigns and considering options- I’m looking for projects where I can remain just that- a small giant. I want to be someone who can disproportionately gain revenue with a small group that’s amazing rather a mediocre group that’s massive. This not only effectively saves you time, energy, and sanity but also keeps you lean enough to not over-index on something that can collapse before your eyes.
What is the medium-effective-dose of how big your personal sales/team/company needs to be in order for you to live how you want? This principle follows the first because you can easily close the gap between how small/large you need to operate because you can gain a better position and lessen your workload immediately.
The point of business is to keep playing the “infinite game” per Simon Sinek. When business is conducted in a way where the focus becomes “staying in business for the longterm” instead of “being the best” short-term, we can begin to make decisions that lead to lasting wealth instead of short bouts of what seems like “getting rich”. By staying small yet great- we can take large market shares simply by structuring ourselves the right way, drive better returns with more focused efforts, and shield ourselves from downtown in the economy/market when that day comes.
Here are real-world “Small Giant” examples in context:
Sales Rep: 1 man show whose goal is to afford $3,500/mo in expenses. He makes $1,000/wk working three days knocking doors. He negotiated his contract right and makes top-dollar on his deals, allowing him to work 40% of the month and dedicating the majority of his life to personal interests outside of sales that ACTUALLY makes him happy.
Manager: You have a team of 10 that are knowledgeable, experienced, and can consistently produce results. You know they’re good for 100 sales a week and everybody is working together under a common purpose. You receive more and more pressure every day from the owner of the marketing company to grow your team and promote more people. This is good for him because through your hard work can create him more revenue. This is bad for you because you’re content with building ten people into rockstars while working towards a life you want. Working under a different campaign, possibly in a different industry completely, you set the tone at the start of a new business relationship that your team wants to remain small yet mighty while you build towards the aspirations of the team. This removes any pressure from the bottleneck up top because the expectation has been set and value has been projected in being a “supplement” to their business vs a “driving revenue force.” Combo this with a good position and you can be more profitable with less work and zero pressure in effectively 3–5 calculated moves.
Owner: You approach a large company you would like to sell on behalf of and they ask you for a forecast of growth for the year. As a small giant, you’re confident your company is able to align with a mission easier than a mediocre company of volume and you change the conversation to figuring out the needs of a company. So many times we think we need to present giant numbers with unrealistic growth plans just to end up being held to an impossible standard. After determining a focus on brand presence is important to the company- drive home how your plan, although not involving significant growth in headcount, is going to contribute massively and being able to boost brand presence by providing superior customer service. Providing further value, you reveal certain systems in your business that allow your company to be great and offer insights into how your model stacks better than a growth-model.
Being a Small Giant given where your situation can save you all the headache and stress of feeling obligated to grow something for someone else. For me, when I began to put a focus on what I wanted, more time/freedom, I realized I could put pieces in play that drastically lessened my workload while maintaining levels of excellence.
3. Own the Day, Own your Business
Ignoring the fact we all have 24 hours in a day and we can optimize our working hours for better results is what separates business’ from the very beginning. Working towards a clear vision is an obvious starting point, yet often people are taking all sorts of action that doesn’t necessarily drive them in the direction they need to go. Owning the day comes before owning the business and when you can set your intention with clear organization you can immediately achieve faster results.
Taking into account habits, daily routines, emotions, and desires can reveal if a person is a winner or not. This is why #75hard was a challenge I had interest in- I knew that if I could up the caliber of my optimization I could make better use of my time and ultimately build my life. Before you set off onto the journey of a new income stream or even to edit your existing one, declare what you want and figure out what it would look like for you to be in that position. What actions would you need to take daily? What routines would you have to incorporate in your life?
When you take ownership of your life you can create freedom for yourself. This looks different on all levels yet is also a principle that plays out everywhere you look. Sales reps who have a morning routine are more likely to do better and be more fulfilled. Managers who have team rituals are more likely to achieve greater numbers. Owners who wake up early and go through their own version of owning the day have further clarity on the direction they’re heading.
Here are some further examples:
Sales Rep A: Wakes up and hydrates, gets in the gym, and listens to an audiobook.
Sales Rep B: Rolls out of bed and slams a Redbull while arriving at the morning meeting late by five minutes.
Manager A: Routinely holds a team huddle and sets the intention of the day
Manager B: Comes up with area plan morning of and doesn’t ask for goals
Owner A: Meditates for ten minutes in the morning and reviews outcomes for week/month/year to make sure daily action aligns with them
Owner B: Doesn’t show up to the office and leaves it to the team to produce the work
Separating yourself as someone who is consistently owning the day vs someone whose moving in the wind is going to build your reputation for being someone who can get results. This is good for all areas of business.
4. Emerge as an Outlier
An outlier is a person or thing differing from all other members of a particular group or set. At any level in direct-sales, you can differentiate yourself and be a top-performer in a category. According to the book 22 irrefutable laws of marketing, becoming a leader in a category you create is a law that should be followed. This increases your value inherently while also gives you the ability to be discovered. Being an outlier, in my eyes, is like achieving under-dog status. I didn’t come from money or connections and had to prove myself when I first started- so I became a top performer. On top of the obvious benefits of being an Outlier- more money, more notoriety, ability to hold stake, etc. it also gives way to get a better chance of receiving for the things you ask for.
Need something done from someone who generates your paycheck? It’s sure a hell-of-a-lot easier of an ask when you’re the elite person/crew/company they have. This can be pulled off as a Small Giant under strong positioning you agreed upon and hopefully, you can begin to see how having these principles can really start to give clear definition to your income.
Becoming a top performer is at its core, something that is saved for the few and not the masses. Ergo, not everybody is going to be able to follow this principle. This makes it unique in and of itself because should you find yourself in a spot where you can differentiate and maintain that- it should be mentioned that you’re probably in an area/market/product that will bring you great success.
Choosing to jump onto projects where you can be a top-performer is strategic and can be had at all levels. Below are examples:
Sales Rep: Becomes #1 agent through a referral system that leads to the highest 1099 to date and also access to relationships that lead him to greater opportunities because he is recognized as number #1 in his category.
Manager: Sets clear terms for incentives when launching a project and gets team to hit targets. They become the strongest team in terms of compliance and retention, growing their resume and gaining access to better quality deals while enjoying bonuses, perks, and fame.
Owner: Brings the company a large market share because of leveraging top tier leaders to an online system that automates process’. Leans out company while creating better results and becomes recognized as award-winning talent.
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I believe that these four principles- negotiating the best position, staying small yet great, own your day, and operate as a top performer, are conditions in which you can craft the right environment to best be on track for your goal. Whether just a sales rep starting off or an owner with years of experience, these serve as markers for you to measure where you stand in terms of holding a sustainable stream of income that is valuable.
I always like to ask, “What are 20% of x that brings me 80% of y?” It gives me a clear vision of focusing on 3–5 things that will push the biggest domino over to build momentum. Whether you are just starting, need to adjust, or are ready to launch a new project- use these principles as a guide.
Increasing your ROI is good for business. Creating the best situation to craft a marketing stream with the best possible return without adding a bunch of extra work is good for the soul.
