Monday, August 18, 2008

Choose The Right Home Based Wine Business




Deciding to start in direct sales is a big decision, choosing a product you are passionate about is usually the first step. I imagine most of you are passionate about wine, you like trying new wines and probably think attending wine tastings is extremely fun. So now you are looking at the different companies that are available to work with, and wondering which company you become a wine consultant with will be the most profitable and which will help you reach your goals. So let's look at a few things.

The Wines

It may seem like a small thing. Obviously they all have great wines or they wouldn't be in business. But maybe you are looking for a variety of wines, or just wines from a single region. You of course want to know if the wines are available in stores and restaurants so you aren't competing with retail establishments. Some questions to ask:

Where are your wines from?
How many wines do you have?
What is the average cost of the wine?
Is the wine exclusive to the company or available in stores?
How often do you get new wines in?

The answers to some of these questions can become extremely important after you've already chosen a company. Maybe you love California wines but you find that your community prefers Italian or French. While you may enjoy a $35 bottle of wine, how many bottles will your clients order?

Who Pays for the Wine For The Tasting?

Wine home businesses are a bit different than most other direct sales businesses in that our product is consumable, and must be finished the night of the tasting. While other wine consultants do have to pay for the products they show during parties, most of them can use the same products over and over, in this business we can't do that. It's important to understand who pays for the wine and how that will affect your ability to book tastings. Some companies have the host pay for the wine which may limit the number of tastings you can book and affect how well the host will encourage her guests to place large orders. Other companies you pay for the wine yourself and so you need to have the money upfront and know that you can market enough wine so that you earn that money back. Other companies have you pay for the wine but then reimburse you, so you need the money upfront but it may be easier to book parties since the host doesn't have to pay for the wine. Some questions to ask:

Who pays for the wine for the tastings?
How much is the wine?
Is there any reimbursement?
What is the average cost of a tasting for the consultant?
How much is shipping?

The Training

Training in direct sales is important like any business. However unlike working at a law firm or marketing company, in direct sales you have a lot of different people to learn from. Corporate will likely have conference calls, seminars and conferences. Your team or upline will also probably have their own training. In some companies the top leaders will also offer training. Some questions to ask:

What initial training do you offer?
What type of training on each of the wines do you offer?
How often are conference calls?
Are you available for personal training?
What written materials are available?

The Kit and Marketing Materials

Typically in direct sales your kit will include some product plus your first set of order forms, brochures, manual etc. Finding out what is included in your wine kit is important. Some companies have wine included in their kit while others do not. Some provide an online kit where you print everything off yourself while others have professional brochures and materials printed. Some companies don't really have marketing materials, you have to create your own. Some questions to ask:
What does the kit include?
What printed materials does the company provide?
How costly are new marketing materials when you reorder?

The Earning Potential

This is what we really want to know right? Keep in mind when asking these questions that all earnings are really dependent on how much you work your business, as well as taking into account all the answers to questions you've already asked, like how affordable the wine is and how easy it is to book a party. Some questions to ask:
What is the commission rate?
Are there different commission rates depending on leadership levels or sales goals?
Are there bonuses?
Do you earn on wine clubs?
Do you earn on reorders?
Do you earn on website orders? Phone orders?

The Fun Stuff

Direct sales companies are notorious for providing incentive trips for wine consultants. So ask about the fun places you can earn your way to! Ask about the annual conventions, are they in great locations? Do you get to try new wines? What other ways are consultants rewarded for doing a great job?

1 comment:

mortgageliminator said...

Excellent article - very informative and concise.

Jen Maxwell