Sage Advise for Direct Sales Reps:
“Whoever controls the list controls the marketing message.”
If you’ve been around the block a few times and left many different direct sales companies for “greener pastures”, naturally, you’re going to let all your past customers know about your new move. In doing so, you could end up on the business end of a lawsuit for “enticement” from your old company. If you have grabbed your customer list information from your former company, they can rightfully claim that you were using confidential company information that was indeed “owned” by your former company, used explicitly to “harvest” their customers and consultants, potentially causing them thousands of dollars in lost revenue.
If you look at most direct sales consultant agreements or policy manuals, you’ll see wording that says all customer and consultant lists belong to the company, and that you are granted a license to use that information as long as you are a rep. Customer lists are confidential, and considered an important “trade secret” that could cause financial harm should they fall into the “wrong hands”.
Now, if it sounds like I’m trying to put the fear of God in you, you are right. As a business owner, you need to be aware of all the details of any contracts/agreements that you sign. Make sure you’re reading the fine print in your consultant agreement and policy manual.
You hold ZERO ownership claim to any list that is controlled by your direct sales company. Does that sound fair? After all, you did all the hard work to get all these new customers! Well, I’m here to tell you, it’s not fair.. but there is something you can do about it!
Let me explain: whenever a client or lead visits your company sponsored website and signs up for the company sponsored newsletter, they are part of the company sponsored marketing system and their contact info is essentially owned by the company. It doesn’t matter if the client is a lead from another state or someone from your center of influence. The company owns the lead.
As a business owner, YOU need to have a list that YOU control. You need to create this list, as this will become a key asset to this business and any other you may choose to create later on. Now, as the owner of “Your Biz, Inc.”, you have a right to contact, market and serve anyone on your own list, if you have created it correctly.
Here is how you do it correctly:
It is PARAMOUNT that you have potential clients opt-in to your list BEFORE you recommend your company products or services. In doing so, you can prove beyond the shadow of doubt that they were YOUR leads first. It’s as easy as having them sign up for your monthly newsletter (not the company newsletter, YOURS), through your own PERSONAL website or BLOG. When leads opt-in, they have given you written permission to be added to your marketing list.
If you are not technically inclined and need coaching on how to do this, please signup for our newsletter, as we will send out these “How to” tutorials to you. Also, if you don’t currently subscribe to an email service to handle your lists and your email campaigns, here is the company we use
and I highly recommend (They also have a free 2 week trial period so you can check it out for free).
ONE HUGE GIANT WARNING: Do NOT just add people to your list without them fully opting in, or you could be accused of violating CAN-SPAM regulations. Even if you have a list of email addresses that are listed in a funny email you were forwarded from friends and family… DON’T DO IT! Always get their permission. If they’re really your customers, they are usually happy to grant you that permission. If you want to find a way to automate a way to get people’s permission, we can help you with that as well!
Last, but not least: Portability & Flexibility
When you control the list, you determine how and when they are contacted. You can send them ANY message that is in alignment with the purpose of the list. Don’t send knitting tips to a list about financial management. You now assume responsibility for any and all messages going out to your list. It is also your responsibility to keep the list clean. Plus, if you move to a new company, you can take that list with you and avoid any potential pitfalls in the process!
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