While it's unfortunate when a company closes, whether it's an MLM, direct sales firm or a brick and mortar establishment, company closures have become the new normal. If you listen to the news it's all about company mergers, acquisitions and closures. Changes are happening all around us and now is the time to prepare your business for the unexpected. It doesn't matter if you're working from home or working a 9 to 5 job, it's a fact of life that companies are moving, shaking... and closing.
It's still not a good situation when it happens to you. The people that work for a company that closes abruptly are left reeling from the decision, and their livelihoods are left hanging in limbo until they can find something else to fill that gap.
Today's article is about things you can do to prepare your business to weather any storm. We'll focus on a few actions you can take today to minimize potential losses if your sponsoring company decides to close its doors.
The Bad News: Recent Company Changes and Closures
Company closures are happening all around. Watching the news recently, I was reminded that the last day for retail giant Toys R Us was in the not so distant past. This was a store that was the standard for toys when my kids were growing up. They had been around for what seemed like forever, and from the outside seemed like a strong company until recent years.
Later that evening I heard rumblings on social media and online about the closure of Jamberry, and the lawsuit filed against LuLaRoe. Today, I received a notice that Amazon will no longer offer CPM ads as part of their affiliate program. If you're an affiliate and you're not sure what CPM ads are, click here to learn more.
I also heard about Google closing down the Google Link Shortener as of March 30, 2019. I have thousands of links on Google Link Shortener, so that change will have an impact on my business. But at least I have time to make the shift. Many people are not that lucky, sometimes there is no warning, things just happen.
Upon hearing this news, especially about Jamberry, several things went through my mind, after the initial shock wore off. Because I knew several reps that had partnered with Jamberry, and I knew lots of people who bought and loved the products, including me. It was very disheartening.
So my first thought was for the well being of all the reps who were caught off guard and left scrambling to figure it all out. I saw posts and videos from Jamberry leaders who did their best to get ahead of the rumors and speculation. It has to feel awful when the teams you've worked so hard to build are jumping ship for other opportunities or quitting altogether.
In an article titled, "Jamberry, the Nail Wrap Seller, Shuts Down, Leaves Thousands of Sales Reps in a Jam," they discuss a memo sent to Jamberry consultants Thursday afternoon that confirmed that the Utah-based company is in "foreclosure" and that "any product, gift cards, swag, marketing or event purchases made prior to 11:59 p.m. MT on June 28, 2018, are ineligible for (a) refund. It sounds like reps are going through a range of emotions because the company has not been forthcoming with information, leading to lots of speculation.
And to be quite honest, I thought about all the reps who did everything they were told to do. The ones who put off branding themselves, who put all their marketing efforts into building the "company's" brand. I thought about those reps who relied totally on their company supplied website. I thought about the reps who don't have their own blog and/or Facebook page. And I thought about those reps who put all their eggs (so to speak), in their company supplied "basket" by putting their all into one company.
Moving Forward, With a Few Changes of Your Own
No matter what company you're with, if you think it won't happen to you and that your company will be around forever, think again. Look at these changes as an opportunity to take your queue to move forward, while making some much needed changes to prepare your business. If what I've describe above sounds familiar, or you find yourself in an awful position, here are several ways to insulate yourself from these kinds of issues going forward.
Branding: The Best Way to Prepare Your Business
1. Brand Yourself. Branding yourself sets the stage for Business Model YOU. which is a better model than "product pusher" for Company XYZ. Branding is one of the best things you can do to ensure that your business will always have a soft place to land.
The first step involves taking stock in what you bring to the table, (your unique characteristics and principles) and let that distinguish you from all the other people who doing what you're doing and selling the same thing you're selling.
When you brand yourself, you become the person that everyone knows as the person to call for _______. The blank represents the niche, subject matter or topic you want to be known for with your products and services. This is different from the conventional way that people think about salespeople.
If you've been in business for a while, you've likely positioned yourself as the go to person (authority) for your company, we'll call it Company XYZ. So everyone knows you as, Mindy, with Company XYZ, for example. You most likely have a following of people who have placed orders with you. But what do they know about you, that would distinguish you from all the other reps who are selling the same products?
Are you sending all your customers to your company supplied website to place orders? How does your company supplied website show them anything other than your picture, that would make them want to establish a relationship, let alone buy from you? A self hosted blog will enable you to fill in some of those gaps, and we'll talk about that in the next section.
If you're new, you're in a position to start out positioning yourself as an expert, a resource, a go to person for whatever it is you're selling for Company XYZ. Instead of being known as the person who sells Product ABC for Company XYZ, start out letting people know who you are and why they should buy from you over the next rep that sells your product. Help them to know and understand your unique selling point (USP).
Instead of having your company name splashed all over everything, think of things you are passionate about, things you're good at and topics you want to be known for, and build a brand around those things. Let the products support whatever it is you want to be known for.
As a next step, create a transition plan and marketing campaigns that will introduce your customers to your brand. Start using your brand name when you talk to your customers. Get business cards and marketing materials that have your brand name on it.
Product Pusher vs. Successful Brand
Let's say your name is Mindy and your brand is Mindy's Make up Mastery. You'll no longer want to be knowns as Mindy, a rep with Company XYZ. You'll introduce your new and existing customers to your brand, Mindy's Make up Mastery that provides beauty and skin care consulting (or whatever), who happens to include product A, B, and C in her line of solutions. Your business becomes more about the consultations, problem resolution and customer service versus promoting (pushing) products only. You want to be known as a resource, a valued consultant, not a product pusher.
As we've seen in recent instances, when you place all your marketing efforts into building your company's brand, and not your own, you can be left hanging. Of course you want to follow the guidelines provided by your company, but it would be a mistake to neglect your interests as well.
You're in business, and as a part of running your business, branding and marketing are critical to your success. Your company already has their brand established. Things are going to continue to happen in the business world. They will close, merge, change their policies, change their product lines etc. Give yourself more options by becoming more of a consultant in your business to pad yourself in the event that something happens with your sponsoring company.
2. Build a Self Hosted Blog. Creating a blog that you control is the best business investment you can make. Even if you hate writing and have to outsource writing to someone else. It's one of the most affordable, powerful ways to build a brand and connect with new and existing audiences worldwide. You can't afford not to do it.
When you blog, you naturally attract your ideal customers without using paid ads. You also open the door to many opportunities, (including affiliate marketing) to work from any location.
Blogging with a self hosted platform like WordPress.org, gives your business a home or central hub that allows you to see numbers that includes the interests of people that are interacting with your business.
Just like a brick and mortar business, a blog or website gives your customers a place to find you. Many new business owners fall into a level of comfort with their company supplied website. However, again you're handing your customers and control over to your sponsoring company.
When you build a self hosted blog, you have total control over what you post. You're not confined to the rules established on social media or Google or any other platform. Sign up for our free Energized Blogging Mini Course to start building a blog that works for your brand. Read the article, Why Your Business Needs a Blog for more great reasons to start a blog.
3. Invest in Training and Self Development. Know one is born knowing how to run a profitable online business. Additionally, no one is born an expert on a given topic or in a given field. People from all backgrounds build successful businesses every day and they bring different skills and backgrounds to the table. But no one has all the answers. To help with understanding your industry and how to run an online business, there are a number of reputable online courses you can take to improve without breaking the bank.
So this tip is about encouraging you to evaluate where you are today, and find the necessary training, knowledge and confidence to become the "go to" person that people will consult when they are ready to buy whatever it is you're selling. Once you become that person, or if you're already that person, you will have the confidence and know-how to prepare your business grow.
For example, if you're in network marketing, attraction marketing, recruiting, training and team building are much needed skills if you want to set your business on the path to success. Time management and organization skills are another area that will need to be mastered in order to be successful. If those are areas where you struggle, take an in person or online course that will help you succeed in that area.
Learning the nuts and bolts of running an online business and keeping it agile, will help you overcome obstacles that can limit your ability to earn a living. Personal development and mindset are equally as important because they affect the way you problem solve, set goals, organize your business, and manage your time, which leads to productivity and growth.
4. Have Several Streams of Income. I see many business owners who put their whole heart and soul into one company, thinking that the company will be around forever. The thing to remember is that businesses exist to make money. They will always change with the times and work in an effort to keep the money flowing. That's why you have to prepare your business while things are going well to weather the storm in the event that things take a turn for the worse.
As a result of changing times, your sponsoring company may change policies, change compensation plans, change products, and change the rules in a way that makes it no longer a good option for you. If it's your only source of income, you will put yourself in a bind financially if something suddenly happens to pull the rug from under you.
The goal is to create several streams of income so that you're not totally dependent on one company that allows you to pay your mortgage and put food on the table. Just like you would diversify a monetary investment portfolio, you want to diversify your income.
Take time each day to research other companies that might offer products or services that are complimentary to the products you're selling now. If you've started a blog, join 2 or 3 affiliate programs that offer products that you can promote as add-ons or stand alone products that tie in with your industry.
Take our Energized Blogging 10-Day Mini Course to learn how to use affiliate programs to monetize your blog for additional income.
These tips will make you better prepared to weather any storm that threatens to stop you from reaching your goals. Once you make these and other changes to insulate your business, you'll be ready and confident to move in a positive direction.