Sponsor Shopping in Direct Sales: Right or Wrong?

shopping card with globeThere has been an increase in a trend I’d like to call “sponsor shopping”.  While I don’t know if someone has already coined the phrase, I think it is the perfect description of the practice.

If you are in direct sales or have ever been in direct sales, you have a pretty good idea of how things work.  You are presented the opportunity by a prospective sponsor or recruiter, you say you are interested, you meet with this person to discuss the business opportunity and you make a decision if the company and income potential is right for you.  And that’s usually how it should happen.

However, I have seen a somewhat alarming trend in sponsor shopping – potential recruits looking for the “best” person to sponsor them.  Nowadays, the internet makes it so easy to find a list of people who can be your potential sponsor.  There are usually no territories when it comes to direct sales, so the field is wide open.  But what qualifies someone as being the best sponsor?

To me, the best sponsor has the following characteristics:

  • Honesty – I expect a potential sponsor to tell me that the business opportunity is great, but that it will be hard work.  There are no easy ways to make money and just like any business, a direct sales business takes hard work, dedication and persistence to be successful.
  • Trustworthy - Does the potential sponsor do what they said they would?  Call to follow up when you asked, send additional information, invite you to a team meeting, etc.
  • Ethical – This is a big one for me! Well actually, they are all important, but this one should actually be first on the list.  I want to work with someone who has built their business ethically.  Not by lying about how wonderful sales are, how many recruits they’ve gotten in a short amount of time, or how easy it is to make money.  Even if they are really successful, I want to know that they built their business the right way – not by buying recruits, underpricing their products, or stealing customers from other distributors or consultants.
  • Easy to talk to – When signing up with a sponsor, the communication needs to be easy.  There needs to be a good bond because you will be working with this person a lot. Just like with any new relationship, you know right away if you and the person click or not…trust me, you need to click!
  • Invested in my success – A true sponsor will be just as invested in your success as you are.  They will be there to celebrate your achievements, and be there to help motivate you and listen when things aren’t going well.  The best demonstration of this would be at a team meeting or testimonials from other people in their downline.  But even someone who is brand new can be highly invested in your success.  Even if you are their first recruit, you can grow and learn the business together.

Now aside from this list, I have seen potential recruits look for other characteristics before making a decision.  Here’s what I’ve observed:

  • Looking for the most successful person - Some potential recruits believe that if they sign up with someone who is successful (has a large downline, makes lots of money, has a car, etc.) that they will do just as well.  What they are failing to realize is that all that success comes with a price.  Hard work and dedication made those people a success, not the person who recruited them.
  • Looking for the best offer - When recruiters are trying to build their downline, some choose to run special promotions as an incentive to get people to sign up.  Incentives such as a free gift, business building materials, training resources, referrals, etc. are not uncommon.  It is important to note that most reputable direct sales organizations do not allow you to pay for someone else’s kit or fees to start a business.  However, there are some that still do it – that’s where the ethical sponsor details come in.

I personally do not see anything wrong with making sure you have the right connection before signing up with someone.  This is a business relationship, but just like any relationship you need good communication to be a success.  But the key word here is relationship! People who are truly interested in the business model and want to give direct sales a try, will join someone’s team because of their relationship with the sponsor, or the relationship they hope to build with that sponsor.    This decision is really based on the sponsor’s character and the way they treat people.

The bottom line is that your sponsor cannot make you a success.  Only you can make yourself and your business a success. It is up to you to look for training, determine your marketing strategy, networking and so on.  While your sponsor can provide training, tell you exactly what they did to build their business, and offer you coaching and mentoring, you are still responsible for implementing the recommendations.

So what do you think?  Do you see anything wrong with sponsor shopping or do you think it’s OK?  Have you done it before?  What was the basis of your decision? Please let me know if there’s anything I have left off my list.

I’d love to hear what you have to say!

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  • http://www.workathomebusinessoptions.com/ Shelly

    Great post!

    I do not see anything wrong with sponsor shopping if it is done for the right reasons. (ie. looking for someone they can personally get along with, looking for someone local to them, etc)

    However…I see a lot of people running around online contacting 3 or more reps with the same company…trying to get a DEAL on their sign-up costs. I really hate that and won’t play that game. You are absolutely right, a lot of reputable companies will not allow their consultants to discount the start up kits but you will find folks who do it anyway just so they can beat out their competition and get another team member.

    I am actually working on a blog post/article about discouting kits and giving away free kits and how it hurts the DS business.

    Anyway, I agree with the points you have made in your blog post.

    Shelly

  • http://www.workathomebusinessoptions.com Shelly

    Great post!

    I do not see anything wrong with sponsor shopping if it is done for the right reasons. (ie. looking for someone they can personally get along with, looking for someone local to them, etc)

    However…I see a lot of people running around online contacting 3 or more reps with the same company…trying to get a DEAL on their sign-up costs. I really hate that and won’t play that game. You are absolutely right, a lot of reputable companies will not allow their consultants to discount the start up kits but you will find folks who do it anyway just so they can beat out their competition and get another team member.

    I am actually working on a blog post/article about discouting kits and giving away free kits and how it hurts the DS business.

    Anyway, I agree with the points you have made in your blog post.

    Shelly

  • Ivette

    Thanks for responding Shelly! So glad to hear I’m not alone :) . I really value your insight, knowledge and hard work in direct sales. So glad to have met you on Twitter!

  • Ivette

    Thanks for responding Shelly! So glad to hear I’m not alone :) . I really value your insight, knowledge and hard work in direct sales. So glad to have met you on Twitter!

  • http://jenfongspeaks.com Jennifer Fong

    Great post!

    I think it is critical to be sure that you will receive the proper support from the person you choose as your sponsor. However I think it’s also important to note that if someone invites you to join the business, and then you “sponsor shop” and wind up signing up under someone else, that’s a bit more challenging of an issue. Unless you feel that you WON’T be successful under a specific individual, that person has made the effort to invite you, and has obviously gotten to know you enough that they know the opportunity may be a good one for you. I think it’s important to realize that the first person that invites you should be the first person you consider when choosing a sponsor.

    You do identify some great qualities that all sponsors should exhibit!

    Jennifer
    .-= Jennifer Fong´s last blog ..Preaching Politics and Religion through Social Media as Part of Your Direct Sales Business =-.

  • http://jenfongspeaks.com Jennifer Fong

    Great post!

    I think it is critical to be sure that you will receive the proper support from the person you choose as your sponsor. However I think it’s also important to note that if someone invites you to join the business, and then you “sponsor shop” and wind up signing up under someone else, that’s a bit more challenging of an issue. Unless you feel that you WON’T be successful under a specific individual, that person has made the effort to invite you, and has obviously gotten to know you enough that they know the opportunity may be a good one for you. I think it’s important to realize that the first person that invites you should be the first person you consider when choosing a sponsor.

    You do identify some great qualities that all sponsors should exhibit!

    Jennifer
    .-= Jennifer Fong´s last blog ..Preaching Politics and Religion through Social Media as Part of Your Direct Sales Business =-.

  • Ivette

    Great points as well Jen, thanks for your comments! I value your opinion and agree that as a potential recruit, you did need to have a sense of security knowing that your sponsor can support you in the business. I think most people can tell when someone is truly offering the opportunity to help someone make money and start their own business vs. just trying to get recruits to build their downline.

    I’m so glad that I have met and followed you on Twitter!

  • Ivette

    Great points as well Jen, thanks for your comments! I value your opinion and agree that as a potential recruit, you did need to have a sense of security knowing that your sponsor can support you in the business. I think most people can tell when someone is truly offering the opportunity to help someone make money and start their own business vs. just trying to get recruits to build their downline.

    I’m so glad that I have met and followed you on Twitter!

  • http://www.irepnetwork.com/blog Linda Stacy

    I’m someone who recommends interviewing more than one potential sponsor. I think it’s important to find a sponsor who has similar business goals, whose leadership style is compatible with your needs, and who has developed a marketing strategy that can help you reach your goals. Interviewing should be done responsibly and fairly, and each potential sponsor should be told that you are interviewing others.

    I agree that starter kit deals and finding the most successful consultant in a company aren’t the best strategies. I also agree that someone who invited you to join a business should be first on your list of potential sponsors.

    Of course, like everything, there are exceptions… if your sister or your best friend is a consultant for a company you’re joining, I wouldn’t recommend looking elsewhere. I think you’re best bet is to sign with her. :)
    .-= Linda Stacy´s last blog ..Private Label Rights – Mom Content =-.

  • http://www.irepnetwork.com/blog Linda Stacy

    I’m someone who recommends interviewing more than one potential sponsor. I think it’s important to find a sponsor who has similar business goals, whose leadership style is compatible with your needs, and who has developed a marketing strategy that can help you reach your goals. Interviewing should be done responsibly and fairly, and each potential sponsor should be told that you are interviewing others.

    I agree that starter kit deals and finding the most successful consultant in a company aren’t the best strategies. I also agree that someone who invited you to join a business should be first on your list of potential sponsors.

    Of course, like everything, there are exceptions… if your sister or your best friend is a consultant for a company you’re joining, I wouldn’t recommend looking elsewhere. I think you’re best bet is to sign with her. :)
    .-= Linda Stacy´s last blog ..Private Label Rights – Mom Content =-.

  • Ivette

    Great points Linda! I agree, if your sister or best friend is a consultant with a company you want to join, you need to sign up with them. I believe that if you want to be a success, nothing will stop you – even if your sponsor is not helpful. There are direct sales trainers like Jen Fong, Lisa Young and Jackie Ulmer, that can help you be successful no matter what business you are in.

  • Ivette

    Great points Linda! I agree, if your sister or best friend is a consultant with a company you want to join, you need to sign up with them. I believe that if you want to be a success, nothing will stop you – even if your sponsor is not helpful. There are direct sales trainers like Jen Fong, Lisa Young and Jackie Ulmer, that can help you be successful no matter what business you are in.

  • http://photoalbums4u.wordpress.com/ Harriette Jasper

    Great post!
    I have been on all sides on this one. I have been ‘interviewed’ several times. Sometimes chosen, sometimes not. I also was a consultant with my company in another country & had to re-sign when I moved back to the USA. You bet I sponsor shopped & thought long & hard on who to go with. But I didn’t go after the deal-I guess my mind didn’t even go there. As a leader overseas in a very new company (they were well established in the US), I was struggling with what to do with my team. I contacted a successful person in our US company & for 2 years she treated me like a member of her team. That helped make my decision when it was time to start over in the US.
    Family makes it all tough as well. I’ve seen both sides of this as well.I think that should be a case by case basis. I’ve lost potential team members because at the last minute they find out someone in the family is in the company. Often that was totally fine, however, several still expected me to train, support & recognize them because their relative was only in for the discount. Some training & help was OK, I have always been willing to help every consultant on our team or not, but spending hours answering every question can become a burden. So I would recommend finding out what that family member’s plans are and if she is pursuing the ‘business’ at all.
    I think in all cases the potential new person should ask some of those kinds of questions of their sponsor, whether they are family or not.
    .-= Harriette Jasper´s last blog ..Washed Out Faces? Turn off the Flash =-.

  • http://photoalbums4u.wordpress.com Harriette Jasper

    Great post!
    I have been on all sides on this one. I have been ‘interviewed’ several times. Sometimes chosen, sometimes not. I also was a consultant with my company in another country & had to re-sign when I moved back to the USA. You bet I sponsor shopped & thought long & hard on who to go with. But I didn’t go after the deal-I guess my mind didn’t even go there. As a leader overseas in a very new company (they were well established in the US), I was struggling with what to do with my team. I contacted a successful person in our US company & for 2 years she treated me like a member of her team. That helped make my decision when it was time to start over in the US.
    Family makes it all tough as well. I’ve seen both sides of this as well.I think that should be a case by case basis. I’ve lost potential team members because at the last minute they find out someone in the family is in the company. Often that was totally fine, however, several still expected me to train, support & recognize them because their relative was only in for the discount. Some training & help was OK, I have always been willing to help every consultant on our team or not, but spending hours answering every question can become a burden. So I would recommend finding out what that family member’s plans are and if she is pursuing the ‘business’ at all.
    I think in all cases the potential new person should ask some of those kinds of questions of their sponsor, whether they are family or not.
    .-= Harriette Jasper´s last blog ..Washed Out Faces? Turn off the Flash =-.

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  • http://athomewithheather.com/social-media/creating-a-personal-brand-part-1 Heather Masson

    Hi Ivette ~

    I’m loving your blog, and I just nominated you for an award. Stop by and pick it up at:

    http://athomewithheather.com/work-at-home-lifestyle/it-seems-ive-been-given-an-award

    Thanks,
    Heather
    .-= Heather Masson´s last blog ..It seems I’ve been given an Award =-.

  • http://athomewithheather.com/social-media/creating-a-personal-brand-part-1 Heather Masson

    Hi Ivette ~

    I’m loving your blog, and I just nominated you for an award. Stop by and pick it up at:

    http://athomewithheather.com/work-at-home-lifestyle/it-seems-ive-been-given-an-award

    Thanks,
    Heather
    .-= Heather Masson´s last blog ..It seems I’ve been given an Award =-.