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Saturday, May 24, 2014

On Developing True Business Leaders Among Splash Direct Sales' ISMs

On Developing True Business Leaders

The main thrust of Splash Direct Sales is to develop and promote new recruits or dealers to Independent Sales Managers (ISM). This is one way of giving a good sales opportunity to potential direct sellers. The ISM "package" is very attractive: a maximum of 14% rebates on the book sales of Independent Sales Supervisors (ISS). But how to develop ISMs to become true pillars of Splash Direct Sales network nationwide?

Develop True Business Leaders Through the Application of the 80-20 Rule

We can develop ISMs to become true pillars of Splash Direct Sales by the full application of the 80-20 Rule, known also as the Pareto Principle. Wikipedia says that

"The Pareto principle (also known as the 80–20 rule, the law of the vital few, and the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes. Business-management consultant Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population; Pareto developed the principle by observing that 20% of the pea pods in his garden contained 80% of the peas. It is a common rule of thumb in business; e.g., '80% of your sales come from 20% of your clients'".

80-20 rule simply means that 80% of the total Splash Direct Sales production comes from the magic 20% of all ISMs. For a national production of 1M for example with 100 ISMs producing it, 20 ISMs produced the 800,000 sales, and 80 ISMs produced the remaining 200,000 to make the total 1M production. The focus therefore is on the 20 ISMs, which we like to call as the sales pillars of the company. The more sales pillars, the more successful Splash Direct Sales becomes. That's the logic of it all. Develop and focus on the true business leaders or sales pillars of the network.

The Negative Effects of Mass Promotion to Manager Level

Mass promotion is good, for we can gather many true sales pillars only if we have many candidates to choose from. But there's a negative effect also to mass promotion, which is the violation to the reward-performance principle. What is it? It means that since it is so easy to get to the top in Splash Direct Sales marketing plan, the so-called highest rank will lose its aspirational element or attractiveness. The essence of reward performance is lost; the I-aspire-to-be-Splash-ISM dream ceases to be exciting.

The Sad Experience of One Popular Direct Sales Company

Violating the 80-20 rule, one very popular direct selling company (let's not mention its name for obvious reasons) is rumored to close business. The fact, according to expert opinions over the Web, was that the new top executives of this company were cash-business gurus. The 80-20 principle wasn't applied. Instead, the company embarks on mass promotion, without respect to the concept of developing the extremely vital sales pillars (the Pareto Principle) in the sales organization. Mass promotion in a credit extension business will always result in bad collection efficiency rating, for only 20% of the entire network (not everybody!) will be considered as the real business partners of the company. Whereas, the 80% will normally be (yes, goes our experience), the source of soured receivables.

The Splash ISMs' Temptation to Become a Just-recruit-type of Sales Manager

Splash Direct Sales is a traditional direct selling company as argued somewhere in this site. Hence, the just-recruit-type ISM is not sustainable. In traditional direct sales you need to support your downlines with products, if the company won't give them a handsome credit line for policy or procedural reasons.

How to Develop True Business Leaders Among Splash Direct Sales' ISMs?

Well, easy. Teach them the three-fold goal of a traditional direct seller, namely, Sales, Collection, and Recruitment. By sales, one needs to have an inventory or to engage in product distribution. If you are a recruit-only type, then go on with it, but it is not sustainable unless you'll get yourself engaged in employing the so-called "surety" method as allowed by Splash. Outside of this parameter you'll become a pure networker-type of an ISM. As such, I doubt if you can continue on as a sales pillar of the company. For a purely company-should-release-the-products strategy to all dealers from Splash Dealers up to ISS is not a good practice. The 20% sales pillars should be distributor type in traditional direct sales. For only the Pareto's 20% (the true productive leaders and business partners of Splash) can give the company a good collection efficiency rating (CER). That's the wisdom in traditional direct sales: let the 20% sales pillars help in the distribution of products (and of course in the collection of receivables).

Friday, May 23, 2014

IBCs Need Company's Support in Building the Sales Network of ISMs and ISSs

IBCs Need Company Support

How to grow Splash Direct Sales? One answer is by education, and the Company's Network Development Specialist assigned to the IBCs is the key player is this aspect of growing a sales organization. This is what IBCs need: a certain someone from Splash Direct Sales who will take charge in educating the members in the areas of product knowledge, company profile, marketing plan, and the values and strategies needed in making as well as keeping the sales group per ISM/ISS productive and motivated.

IBCs Need a Per-ISM or a Case-to-Case Support

In order to make the IBC successful, we need to make our ISMs and ISSs successful. As such, the training of the Network Development Specialist should be adjusted according to the need of a particular ISM or sales leader. For example, when an ISM hires the services of the Network Specialist of the company, the former naturally wants to keep his/her sales group at the ISS level. In short, the ISM doesn't want the Company Lecturer/Specialist to touch on how to become an ISM, for doing so could break certainly his ISS organization, and with it, the ISM's income. In the same way, the Specialist should not teach the ordinary Splash Dealers on how to become an Independent Sales Supervisor in an ISS Meeting.

Teach the Whole Splash Package Only at the Branch/IBC Center

At the Branch or IBC Center however, we recommend the Network Specialist teaching the recruits the entire Splash opportunity from Splash Dealer up to Splash Independent Sales Manager (ISM). It is unwise for the Company not to require the Network Specialist to do that. As mentioned above however, we feel that the Network Specialist should respect the ISM's strategy before the latter's own group of recruits. The policy should be this: the owner of the sales group, except in the IBC/Branch Office, should be the one to call the shots as to which opportunity or lecture is going to be delivered by the Network Specialist.

Case-to-Case Orientation or Collapse of the ISM Group

The Network Specialist must also help in the training of the recruits of the ISM and the ISS based on the above-named conditions. That's the only way we can grow fast the Splash Network at the ISM/ISS level. Today, what we see is a dozen or so of dying ISM Groups, since the ISM income is seriously affected by the mass promotion of recruits, including the less potential ones, to manager level. As the ISMs/ISSs crave to earn a good income, so the Company's training arm (the Network Specialist) must act in a way relevant to Splash's managers' organizational needs.

Monday, May 19, 2014

Splash IBCs Need to Implement the "Splash Way"

The Splash Way

Splash IBCs need to implement the Splash Way. What is it? Well, we may call it also as the "Splash Culture" or the "Splash Uniqueness." One example of the Splash Way is the strict forfeiture of rebates on overdue accounts. In other companies, they adopted the "take it or leave it" attitude. If you want to join with Splash Direct Sales, then be willing to adopt all its policies sincerely--be willing to adopt the whole culture of Splash! Forfeiture of commission is a good diving board. Pay Splash on time or have your income forfeited. It is the culture. It is the policy. It is who we are. Let the hundreds of Splash's half-convinced managers or supervisors leave us alone. Let them join with other direct selling companies if they are not comfortable with the Splash Way.

I don't like the concept known as exclusivity, which many direct selling companies are adopting. Instead, I support the many-company-affiliation-per-dealer concept. It is healthy for companies to be sort of competing on one not-so-successful dealer. The idea however of developing diehard dealers for Splash is superb. We need a sold-out dealer for all that Splash Direct Sales stands for. We stand for a 97% (or higher!) CER (Collection Efficiency Rating); we stand for those who believe in Splash as a good source of income. Good sales organization is always built on dealers who truly believe in the company as a good source of livelihood. Splash Corporation, the parent of Splash Direct Sales, is so good a company that only the unwise dealers will despise its aureate opportunity. Catharina Bruns once said, "work what you love." That's it. The Splash Way is this: be fully convinced as an Independent Sales Manager (ISM) or as an Independent Sales Supervisor (ISS) that there's financial future with Splash or get out of Splash Direct Sales for good. In all forms of sales organization, the half-convinced is always synonymous with liability--the weakest link; the major source of soured receivables!

The Splash Way Versus the Negative Emphasis of Most Splash's Independent Sales Managers

Splash IBCs need to implement the Splash Way in relation to our Independent Sales Managers (ISM) and Independent Sales Supervisors (ISS). As mentioned above, we need to be a fully convinced ISM or ISS or we don't have the Splash Way or the Splash Culture at all. Secondly, among Splash ISMs there is this one "cultural flaw" that is plaguing their rank. What is it? Well, the concept of recruiting and training without engaging themselves in actual distribution of Splash products.

Please allow me to share to you a little illustration. In the olden times we noticed through the movies how good was the king in sword fight, while his rah-rah boys, his so-called wise guys and advisers, were just playing the role of scribes. In short, the king was engaged constantly in actual combat, while his so-called geniuses were just keeping the records of the former's superiority in the field of action. Consequently, while the king owned the kingdom, the scribes (yes, in a way full of brains!) were just given a little portion of the king's vast wealth. How is it connected with our ISMs' so-called "cultural flaw" or obvious violation to the Splash Way?

Well, simple. Most Splash's ISMs erred in pretending to be like a bank manager or a sales guru of sort or a company executive in their role as the highest-ranking Splash Direct Sales members without engaging themselves in the actual "sword fight" in direct selling business. They want to be lecturers, as if doing so can make them true business men and women. The truth is that as an ISM you are not a mere manager (worse, a mere parrot of the Splash opportunity sometimes; or, a peddler of Splash' exciting marketing plan!). Rather, you are an entrepreneur. To put it simply, you are not just a bank manager in role and spirit handling complaints and giving one or two routine instructions, but that you are the bank owner yourself--the entrepreneur! (Wow, big time, isn't it?) Therefore, you need to have a clear handle of your business--from janitorial functions to conducting board meetings, so to say. That's the Splash Way, the Splash Uniqueness we wanted emphasized--our ISMs and ISSs are entrepreneurs of the purest kind--like that powerful king we mentioned above who was active in combat, exposing himself to risk!

Sad that most Splash ISMs are in truth "binary" networkers, whose specialty is recruitment, training (then transferring to what is new in town!)--without taking an iota of business risk inherent in entrepreneurship such as managing an inventory and having employees.

The Splash Way and Its Emphasis In Entrepreneurship

An ISM who is working like the "scribe" of old or as a mere recruiter and lecturer (without actual engagement in product distribution!) like a "binary" network marketer is certainly not attuned to the Splash Way having no Splash Culture at all. To understand the so-called Splash Way better, let's first bear in mind that membership with Splash Direct Sales as ISM or ISS is actually equivalent to engaging oneself with a TRADITIONAL direct selling business, not the modern MLM (Multi-Level Marketing) type or its fork, the infamous "binary" system (infamous at least in the Philippines!). But what is traditional direct selling? By it we mean, as mentioned earlier, ACTUAL DISTRIBUTION OF SPLASH PRODUCTS. Wait, I know that most of us are negative about it, for it means extension of credit to dealers personally, exposure to bad debts, and to the cost of inventory maintenance. But before making a negative judgment on the so-called Splash Way (or personal distribution of products), please allow me just a couple or two of sentences here. First, take note that Splash Direct Sales is not a binary (the pairing of recruits system) company, therefore your "binary" strategy won't work here for the long haul. In short, your MLM-Binary style (that is, recruit then lecture, lecture, lecture like a college professor) is not sustainable in a traditional direct selling environment. If you want proof, yes, I have ample evidence. CDO Splash, for example, was just like a bubble sales network: together ISMs worked hard; then, together ISMs evaporated like a bubble in just a span of around 3 years. Where are they now? They retreated, so to say, for they didn't want the actual sword fight of a traditional direct selling business, which is product distribution via credit extension to Splash Dealers. What they want is for the company to do everything, from training, product distribution to collection of receivables. The result was business death, for the concept is not sustainable being not attuned to the Splash Way (or product distribution, Splash being a traditional direct selling company).

The Splash Way and the Nuts and Bolts of Product Distribution

In order for a certain business venture to survive, it has to be anchored on some sound business concepts and principles. The Splash Way or personal distribution of product via retailers as ISM has to be based on the time tested principle in traditional direct sales that he or she who pushes the products gets the money. The networking style as applied by most ISMs nationwide is more focused on product knowledge and knowledge of the marketing plan--without the product per se. What's the point? The point is that your recruits/retailers cannot survive with their Splash business, for they were given by the company (per-IBC-performance basis though!) at least P500.00 credit line only. Your lecture, so to say, is excellent, but your product support as ISM (to your retailer) is not. Why do you expect big income from Splash Direct Sales as ISM, when you are not interested in taking the basic business risk (credit extension, for example) as an entrepreneur of Splash. No risk, no money--that is the principle! As it is, most ISMs dwell on the concept that Splash is good, for everything is handled by Splash. Okey, Splash is good--so good indeed. But Splash policy of bearing on its business shoulders everything: training, credit line extension, collection--everything is ENTREPRENEURSHIP on the part of Splash, but not on the part of the ISM. To maximize income in all forms of traditional direct sales, including Splash business, one needs to get oneself engaged in product distribution.

By the way, who are these ISMs who are in fact haters of the concept of product distribution? Well, they are with Splash as business partners of the company, but they are not actually business people in the real sense of the word business. For business has always a surname, which is "venture" (hence business venture!) or risk taking. A true business person is an entrepreneur. Said the dictionary that an entrepreneur is "Someone who organizes a business venture and assumes the risk for it." Without taking any risk at all, so much so in the side of product distribution, which we like call as the Splash Way, then you are not an ISM or Independent Sales Manager of Splash, but just an Independent Sales AGENT of the company. Hence, never expect with Splash a good and sustainable income, for AGENTS are just a go-between of the company and the customer; never as entrepreneur of Splash Direct Sales. Without assuming risk, you will qualify as having an employee-mentality, and your Splash business is nothing more than just one of your wildest dreams. What you are doing with Splash Direct Sales as ISM is more self-employment than doing a business. Take the risk, and be a business person, or go somewhere else is the place called "safety," for business, sad to say, is not in your blood. Business is always synonymous with gambling or risk taking, that is why only very few are engaged in business. Unless the Splash Way (or personal product distribution via retailers) will be inculcated effectively in the minds of ISMs and ISSs, then Splash Direct Sales will continue to be at the mercy of a bubble sales network--a now you see, now you don't ISM productivity.

Splash IBCs need to implement the Splash Way--this is our common mission!

Saturday, May 17, 2014

What Makes Splash Direct Sales’ Managerial Position Very Attractive to Most Direct Sellers?

Grow a Business Anywhere Opportunity in Splash Direct Sales

We have heard this already: winner takes all, and that’s how best we could describe the position of an Independent Sales Manager (ISM) of Splash Direct Sales. For the ISM, while earning a maximum of 14% on the sales of all his or her Independent Sales Supervisors, is allowed to do business in all Branches/IBCs of Splash throughout the Philippines. If you are from Davao City for example, but you have friends or relatives in Cavite, then all you need is recruit them, send them to a Splash Branch in that area, and you’ll earn rebates out of their sales—forever! Splash Direct Sales allows what we call a multi-affiliation platform. You can grow a business network anywhere in the Philippines!

How is Your ISM Future Safeguarded by Splash Direct Sales?

To help safeguard your network of direct sellers and thus protect your income, Splash rules that your recruit is always yours for a lifetime. Secondly, it is the Company, Splash Direct Sales, that will extend credit to all your downlines. The risk inherent in a traditional direct selling entrepreneurship, that is mostly a swelled up accounts receivable, is removed with this setup. All you need is make recruits and keep them by encouragement and similar pep talk. The rest is handled by the company. Splash Direct Sales is owned by Splash Corporation. You have a good future here.

What Will Happen If Some of Your Recruits Will Decide to Become ISM Like Yourself?

In order to protect your income as mentioned above, Splash is going to give you 2% and 1% on your 1st and 2nd level promoted ISMs, respectively.

Will Splash Direct Sales Require You to Issue a Post-dated Check?

The answer is NO, for your maintenance production monthly is only P500.00. If you will decide to go into full-scale distribution however, then you’ll be required to issue a post-dated check.

What Makes the Rank of ISM Profitable?

It is profitable since the risk of having bad debts is removed by Splash. On the other hand, if you will decide to go into full-scale distribution as ISM, meaning, you’ll distribute Splash products directly to your retailers, then you’ll earn an additional 23% or a total of 37% rebates, that is, 14%+23%. Where did we get the 23%? Well, it is the commission intended for the Supervisor or ISS (Independent Sales Supervisor), which will be enjoyed by you having sold the products directly through your Splash Dealers or retailers—outside of the assistance of your Supervisors.

Should you decide to organize more ISS instead, the ISM rank is also considered very profitable as the Splash Direct Sales' compensation plan is also very attractive to the Supervisors. The reason is the 23% rebates on the sales of the Splash Dealers. In Splash, Supervisors, just like the ISMs, are highly motivated since they can purchase on credit Splash product in any branch in the Philippines. They can organize literally Splash Dealers anywhere. Doing the business beyond your home address is always motivating, so much so that it is Splash Direct Sales that will be the one to extend credit to your recruits or retailers.

Why is Splash Direct Sales Not Being Sought-after by Most Seasoned Direct Sellers So Far?

One reason is that most seasoned direct sellers don’t know about the good news of Splash. Secondly, Splash Direct Sales, being still very new to the industry, experienced a seesaw in sales and collection, a very normal occurrence as part of its infancy and growth. Today, Splash is like one flexing its sales muscles in preparation for whatever challenge along the way. In time, Splash Direct Sales will grow the giant it is programmed to achieve with its around 70 branches mushrooming in key cities and in the countryside.

The ISM Rank of Splash Direct Sales is the One Thing We Need to Aspire For

Most bona-fide ISMs want the goodness of the ISM rank hidden from the eyes of their Supervisors or ISS. This attitude, if viewed squarely, is totally unwise. Why, because you will only continue to succeed if the people under you are as successful as you are. After all, success lies in people. Show to your ISS the golden opportunity there is in being an ISM, and you will never run out of new ISS-recruits monthly. Henry Ford once said: “If there is any one secret of success, it lies in the ability to get the other person's point of view and see things from that person's angle as well as from your own.” The point of view of your ISS is that they want to be like you. Encourage your potential ISS to become an ISM like you—we did that, and it worked good indeed.

The Story of a Successful Direct Seller

A Successful Direct Seller

Let's just call her as Miss X, an ordinary fruit vendor who was without sufficient capital, like most fruit peddlers frequenting the public market. We recruited and then trained her on the nuts and bolts of direct selling. Few months after she informed us that at last she was able to purchase a bicycle already, which she used happily in visiting her dealers for the gathering of their orders and for collection purposes. After a year or so, she sent a text message that she had a motorcycle already, and then lately (after around half-dozen years), she said that she had just acquired her brand new Toyota Innova. That's success, isn't it?

She was Less Educated Than Most Unsuccessful Direct Sellers

But that's not the end of the story. She recalled one time during one of our sales conventions that she used to visit us for a coaching session, for she didn't know how to use her checkbook (how to write out words from figures!), for she was so unfortunate as to be able to have a good education. No experience and no capital to start with, yet she joined with direct sales and succeeded. Now, she is already driving a brand-new Innova. Did I mention house and lot? I didn't. But she has a good house and lot also--thanks to her direct selling business!

Her Secret: Copy Success

Just lately she told us this: "You know, I learned something from you which I can never forget." "What's that," I asked. "When you said," she replied, "that when you were born poor, it's not your fault; but if you die poor, it's your fault!" See, this woman remember things! What we did, she copied. "Copy success," that's what we told her, and she did copy our strategies like holding meetings, giving recognition to dealers, etc.

Do You Think She Will Succeed Also with Splash Direct Sales?

Yes, of course, for success is not in the company, it is in the dealer. Remove the wealth of a successful man and he will become wealthy again. Success is in the person, not in the place; neither in one's school; nor in one's company. How much more if you are with such good company as Splash Direct Sales?

Sunday, May 11, 2014

Why is Splash Direct Sales Considered a Major Player in the Direct Selling Industry in the Philippines?

Splash Direct Sales is Considered a Major Player in the Industry?

Why is Splash Direct Sales considered a major player in the direct selling industry in the Philippines?

Because Splash Corporation Owns It

Splash Direct Sales is owned by Splash Corporation, a giant and leader in the retail and manufacturing of food, health, and beauty products for around 30 years already. As a publicly-listed company and among the top 300 in the Philippines today, Splash has the name for quality and affordability, not only in our country, but even in over 32 countries worldwide where Splash has a solid marketing presence. As a child of Splash Corporation, Splash Direct Sales is certain to succeed.

Because Splash Direct Sales is Transparent and Trustworthy

Splash Direct Sales is visible to the public eye as publicly listed companies normally do. A company's transparency is always a good reason for trust and support. Most successful traditional direct sellers desire to be affiliated with a company that is open and visible.

Because of the Pool of Highly Experienced Executives at the Helm of Splash Direct Sales

Splash Direct Sales is surrounded by professionals who are considered well-experienced in this trade. The alliance of brainy and charismatic top executives is a big factor indeed that can make Splash a major player in this industry in the near future. The leadership of Ms. Glenda Pingol, the General Manager, plus the all-out support of Splash's owner and CEO, Dr. Rolando Hortaleza, is an obviously good index in trying to gauge the market share of Splash Direct Sales in the years ahead.

Because of Its Profitable Marketing Plan

Splash Direct Sales is offering a very attractive marketing plan to its dealers. For example, its Independent Sales Manager can earn as much as 14% on all the book sales of his or her Independent Sales Supervisors (or ISS). The latter on the other hand, can earn 23% on the book sales of his or her Splash Dealers who in turn will earn 25%.

Because Splash Direct Sales is Not a Third Party Company

Splash Direct Sales is not a "third party" type of a direct selling institution. By third party type we mean a direct selling company that does not produce its own products. As Splash Corporation is a manufacturing company, so Splash Direct Sales has always the upper hand in terms of price war; free travel abroad; and other sound indicators in measuring up a company's mark in the market place.