According to Amway (China) Company, Amway has entered the Chinese market for 8 years. China has developed into the world's largest market, ranked 2nd in 2003, "20 China's daily chemical industry", and once again been "wealth" (Chinese version) is rated as 2003 "The most appreciated foreign investment enterprise", ranked 27th in the best evaluation of the company. In 2003, Amway (China) sales exceeded 10 billion yuan. The company's accumulated investment of 270 million yuan has opened more than 120 stores in the country, and 130,000 active marketers have been cultivated.
More related information claims that Harvard University will use the Amway's bonus system as a case of MBA courses, and think is an impeccable bonus program (in addition, there is a book recently, saying that this is Bill Gates.).)
However, is the Amway's bonus system really impeccable? If you really caught, why didn't I stop around Amway, why is some people who have some people in Amway? What is the problem of Amway to make people a confident controversy? Direct sales is a personal entrepreneurial opportunity or a beautiful trap?
We may wish to analyze the above data. It can be said that Amway has achieved brilliant development in China. However, what is the brilliant back? Let us analyze the above data: 130,000 active marketing staff, sold 10 billion a year, these salespersons can be said that Amway has achieved brilliant hero, then how much?
On average, each sales personnel have 6410 yuan per month, according to Amway sales 3600 yuan -7200 yuan / month, proportion of 9% (6% sales commission 3% floating bonus), each person The average income is about 576 yuan! This is the average income of Amway's active sales staff! There are still more than 400 yuan in Beijing minimum wage! If we are working hard to become a represented representative of Amway sales, the total number of salesperson will reach more than 400,000 according to a active sales personnel, and the total number of sales will be lower, and the average income will be lower.
Another opposite is that the Amway sales staff is about 1000 yuan of monthly income month, and the data calculated above is large. If this is true, this income is also said that there are many people in the country. But this data can be built?
In May 2004, Huang Due, president of Amway China, talked about the situation of Amway sales staff when he participated in the CEO forum held by the Economic Observation News, and Sheng Yat-sen University School of Management.
"(Amway) Sales team, the architecture and income of the team did not have much difference with traditional foreign investors, a salesman, 90% and about salesman, probably 1,000 yuan per month, 9% probably 5000 Between -30000, probably 1% is more than 30,000 yuan, nothing about with large foreign companies. The top managers above a large enterprise are always less, and the following employees are always more, but The distribution of compensation is also almost. "(Information source economy observation newspaper www.eeo.com.cn website)
According to Huang Dedian, if Huang Due said, "Amway Salesman", "Amway Active Marketing Man", then the salesperson calculated by Huang Dedian is 130,000. Further estimate, 90% of the sales staff average annual income of 1,000 yuan, and the 90% of the sales staff has a total of 1.4 billion yuan. According to this calculation, 9% of the sales staff monthly income of 5,000-30,000 yuan, calculated according to 10,000 yuan, and some sales staff totaled about 14 billion throughout the year. 1% sales staff has more than 30,000 yuan, with a total annual total income of about 460 million yuan. These three parts are added, and all sales staff of Amway will have about 3.26 billion yuan! And the sales of Amway is 10 billion, that is, the income is about 30% of the sales. Amway's sales bonus is up to 24% (sales commission 21% floating bonus 3%), plus 4%, 2%, 1%, 0.25% of various leadership prizes and dividends, all the awards add about 30% about. That is to say, all products sold out, sales staff can get 30% of the highest prize, actually, this might?
Obviously, this number is impossible! We must not say that Huang Diner is telling a falsehood. It may be a saying that the actual sales staff actually participating in the Amway is more than 130,000, then Huang Due's data will lose its meaning, which reflects the actual situation of all the salesperson of Amway.
When the salesperson of Amway continues to sell "direct sales" "universities", in the face of such income, I think that only they know their mentality.
Also, let's take a look at the international data. World Direct Association Alliance (WFDSA) Statistics: 1988 global participation in direct sales of 8.48 million, the global direct sales annual turnover is 33.32 billion US dollars; in 2000, in 12 years, it has grown to 38.71 million, and the average growth rate exceeds 10%. The global direct sales annual turnover is 82.26 billion US dollars; in 2002, the global direct sales population was 47.27 million, an annual turnover of $ 85.76 billion. And this is just a statistical number of the World Direct Selling Association. It is estimated that there are more than 100 million people around the world to engage in direct sales, which has formed a distinct contrast with the high unemployment rates brought by the global economic downturn.
When people have the huge business opportunities and employment opportunities for direct sales, they may wish to calm down the above data. In 1988, the average sales of people participating in direct sales were 3929 US dollars, and the RMB was about 32612 yuan; in 2000, the average sales of people participating in direct sales were $ 2125, and the RMB was about 17,637 yuan; according to the 2002 digital calculation The average annual sales of people participating in direct sales were $ 1814, and the RMB was about 15058 yuan.
This result is that with the increase in sales personnel and sales, the per capita sales are decreased. In 2002, each person has a total of 15058 yuan per person, and if calculated according to 20% bonus, each person's monthly revenue is 251 yuan. .
Such sales and income are a successful business approach and employment opportunity?
If the above numbers don't explain the problem, let's take a look at the numbers in Taiwan.
Taiwan's direct sales industry management list:
Year's turnover (Yiliu New Taiwan Currency) participated in the number of people (10,000 people) per capita turnover (Yuanxin TED)
1994 394.06 161.9 24340
1995 448.45 198.6 22580
1996 407.57 236.4 17240
1997 380.79 272.4 13979
1998 391.96 278.1 14094
1999 357.34 281.1 12712
2000 380.86 283.4 13439
2001 285.73 313.6 12300
2002 431.77 326.9 13208
2003 519.91 381.8 13671
From this table, the same conclusion can be obtained.
So what is the problem?
The key issue is that multi-level direct sales is a low efficiency sales.
It is undeniable that multi-level direct sales have the advantages of personnel direct sales, but not all products are suitable for use in personnel. Suitable for people sales, Bruff and Kutz have analyzed their "contemporary marketing". They believe that personnel are applicable to the following situations:
1. Consumers are relatively concentrated in the region;
2, the amount of order is large;
3. The product is expensive, the technology is complex, and special treatment needs;
4, product distribution channel short;
5, almost no potential customers
Multi-level direct sales have advantages, this advantage is that sales staff can face-to-face communication and provide thoughtful services. But this advantage is obtained, it needs to consider its cost, and if it is achieved by higher cost, then the efficiency of such personnel is not high.
For multi-level direct sales personnel, salesperson must complete the full process of looking for target customers, negotiations, transactions, deliver, service, and conduct promotions (such as product demonstrations), but also establish sales networks, training, etc. And knowing how the sales efficiency of this sales personnel.
By studying the sales efficiency of multi-level direct sales, it is hoped to further deepen the understanding of multi-level direct sales.
For sales efficiency, there is fewer discussions in the sales field, one main reason, is the continuous magnification of sales concepts, not like corporate profits, can accurately calculate with financial statements, and the sales efficiency is difficult to analyze.
For sales costs in different sales, there is currently no specific investigation, we can contact our customers from all kinds of sales methods.
Below this table is the statistical analysis result of Canadian marketers to contact customers in different ways:
Media mode requires cost costs for accessing customers
Personal sales access (out of the city) $ 250
Personal sales access (local) $ 52
Holding a trade fair 40 US dollars
Salesman write a letter to 25 US dollars separately
Exhibition room sales or counter sales of 16 US dollars
Phone Number Book Instrument Advertising 16 USD
Direct letter advertising 0.30 US dollars
Business publication advertising 0.15 US dollars
Volkswagen media ad (radio advertising, newspaper advertising, TV commercial) 0.01 ~ $ 0.05
Although this table is not statistics of all sales costs of salespersons, it is also objectively reflected in the comparison between various sales costs.
From this table, we can visually see that contact customer average cost is expressed in different ways. Although this table reflects the cost of contact, it is not possible to reflect the cost of successful success, but in a certain sense, there is still a certain result.
It can be seen that personnel sales are a high cost in various sales.
So, the sales efficiency of multi-level direct sales is low. Why is so many companies still want to do every way to sell this way?
The answer to this question is: Since multi-level direct sales companies and salespersons are distribution, not employ relationships. The specific analysis is as follows:
For multi-level direct sales methods, the key issue is low in sales, low sales efficiency, low sales personnel, but in order to draw a large number of people, realize people's tactics, high-rise direct sales personnel will use "business opportunities" to attract direct sales Personnel, the main problem in this way is the issue of direct sales companies to transfer business costs. Therefore, direct sales legislation should mainly solve this problem, this problem is solved, and other issues will be resolved accordingly. For a sales person, you can sell products, not only on your own efforts, there are many factors, including product quality, price, technical support, after-sales service. The salesperson can not sell the product, but the salesperson is also working hard. For this kind of work, it cannot be borne only by the salesperson.
As can be seen from the above, the salesperson will have to pay, or may have no deal. For some parts that have no transactions, the salesperson has also made efforts, paying costs, no transactions, other reasons, but this part of the work is cost, including time cost, energy cost, etc. For sales work without the transaction, this part of the cost, one way is the company, the company gives a high salary; one is the company and sales staff, the company has sent salary, but there are very few sales people, sales staff To be responsible for its own salary; there is a way, it is the sales personnel to bear, the company does not give salary.
For sales people's income, it is a game of salespersons and businesses, depending on the expectations of both parties on sales performance. When the salesperson expects high sales, salesperson tend to low-wage (no salary) high prize; when the sales staff is expected to obtain high sales, they tend to low prize (no bonus) The way. For enterprises, it is basically the same as the expectations of the salesperson, but the way the choice is the opposite, that is, when the company expects the sales staff to get a higher sales, the company will choose to give the sales staff to low prize (no bonus) Method; when companies expect sales staff to achieve higher sales, the company will choose to give sales staff's low salary (no salary) high prize. Although the expectations of both parties are consistent, the opposite way is selected for their respective benefits.
For this situation, through "lease theory" and information economics analysis, when sales risk is very high, the sales staff is difficult to monitor, the company and sales staff will reflect income through bonus, there is no salary; When the risk, the company fixed a bonus to the sales staff. If the salesperson's efforts are easier to monitor, the two sides will form an employment relationship, and the bonus has evolved into fixed salary; when the sales risk is general, the fixed salary and bonus will be used at the same time.
For multi-level direct sales, due to low sales efficiency, high sales cost, sales risk is relatively high. In this case, the company has only bonuses to the sales staff, but there is no salary, but many direct sales companies use "people's tactics" to avoid risks.
However, due to the "information asymmetry", salesperson accepted a large number of training on "business opportunities", and the high risk of this sales method was not widely known. When the salesperson only pays attention to the opportunity, when high risk is ignored, it is attracted by high bonuses, and it has formed a wrong expectation. It is not difficult to understand. Direct staff reached 70% of the lost rate, also illustrated the "information asymmetry" of high-risk, and after these people passed the actual operation, the income was not as good as other industries, so there was only to leave.
Multi-level personnel direct sales have the advantages of humanized sales, but the sales efficiency is low, high sales costs, and direct sales companies use this advantage of this sales method to obtain the market, and multi-level direct salesmen have created advantages, but due to low sales efficiency and less income And assume all sales risks; customers pay their expensive fees for this high-cost sales. For multi-level direct sales companies to pass all the costs and risks to the sales personnel, the two sides should form the relationship between interests and risk shares, and this relationship is "there is a fixed salary (land rent), also have bonuses (divided into Rent). " That is, the direct sales company should pay the sales staff, both parties should be "employ relationship", not "distribution relationship." Of course, direct sales companies should also recognize this relationship. Since this is a "business opportunity", it is better than other industry opportunities, then income should also be higher than other industries, for these wages, of course.
Therefore, a suggestion for direct sales legislation is: Direct sales company or direct sales company's sales staff must determine whether both parties are employment relationships, must pay salary to the salesperson.
Direct selling companies pay salary to the salesperson, which is the specific embodiment of direct selling companies to pay for this sales manner and take risks. This part of the salary is equivalent to the direct sales company to work hard for the direct sales personnel, and there is no part of the work that does not have a transaction.
If a multi-level direct sales company gives the sales staff's salary, the risk signal of this sales method is passed to the sales staff, enabling salesperson to compare, judge the sales risk of this industry, sales staff can judge this way from salary The risk, the high salary, indicating that the risk is small; the salary is low, the risk is high.
If the direct sales company believes that this sales method is very low, you can use the "rental theory", choose the way the salary has a bonus. Direct sales companies give wages, the greater the development, the better. From the analysis conclusion of the seventh chapter, it can be seen that the direct sales company will adopt a balanced point. At this time, the number of salesperson is limited, and there will be no restrictions to develop sales staff, resulting in the chaos of the market. At this time, the use of human resources is also the most efficient. For government management, only need to manage companies, and there is no need to manage many direct sales personnel, and management is relatively reduced.
Therefore, it is the key to solving the problem from the legal identification relationship between the employment of direct sales companies and the direct sales person. For direct sales companies, this social responsibility should also be burden.
Multi-level direct sales companies know that the direct selling efficiency is not high, but in order to use multi-level direct sales method, leisure sales staff, while "creation" "rich", it also reduces more people's income, this is " The happiness of a few people is built in most people. " Although the law makes a ruling on this, the business ethics of direct sales companies will undoubtedly not get people's recognition and must be condemned by society. This is the main reason why many direct sales have been questioned.
For multi-level direct sales, direct sales companies, direct sales personnel, customers are the roles of three main participation, the final result is that direct sales companies reduce operating costs, get benefits, the biggest winner, and the direct sales staff completed the customer , Sales, service, have a few income; customers have purchased high-priced products and did not form a multi-win-win situation.
From the above analysis, multi-level direct sales tend to form the following situation:
1, low sales efficiency
Multi-level direct sales due to low sales efficiency, according to the data of the World Direct Site, each direct sales personnel have average annual sales of less than 15,000 yuan, with the standards of general company, not enough payment, how does the company survive?
2, the company wins, the sales staff lost
Multi-level direct sales system does not conform to the social equity organization, as companies do not have to pay salary, burden insurance, do not have to advertise, save publicity, and sales staff undertake publicity work, complete from discovering customers, negotiation, signing, and delivering goods The entire sales process of after-sales service has a great effort, but most of the sales staff is lower than the social average, which is extremely unfair to the sales personnel. 3, knitting dream
Although direct sales companies know the real situation of sales personnel, multi-level direct sales opportunities have not high, but too exaggerated, high-income after success, weaving beautiful dreams, to avoid success, but actually every How many bonuses can be successful, how many people can succeed, and in terms of people 's efforts to move towards the goal of success, the success of the traditional career has been different, even lower.
4, price is expensive
Multi-level direct sales due to low sales efficiency, in order to improve sales performance, maintaining multi-level high commission, it will inevitably improve product sales, and direct sales methods can reduce the intermediate link through direct sales, and reduce the price of prices, and to customers. The price is more expensive.
5, waste social human resources
Multi-level direct sales due to low sales efficiency of a single sales personnel, in order to improve the company's sales and use people's tactics, making many people change concepts, engaged in the so-called "direct business", but wasting a lot of social human resources in this efficiency low Resources, have a certain impact on social stability.
6. Destruction of interpersonal relationship
Since the sales activities of multi-level direct sales are mainly launched in the middle of the acquaintances such as relatives and friends, and the money to earn relatives and friends is a controversial thing, and human stress will make the other party barely buy, the seller is sold, buy and sell It is impossible to bargain through effective business negotiations, often causing people to buy the first time, but only can't avoid it, leading to budging, relatives, and distortion of interpersonal relationships, materialization, we usually think of emotion And multi-level direct sales use this way is the most expensive social cost.
7, misleading information, disrupting market order
Once the product is sold through multi-level direct sales, due to the too long of the network structure, it is impossible to form effective management, and the sales personnel are less efficient. In order to improve sales, it is usually exaggered to exaggerate the product performance, and even normal products are magical, the reason is nothing, because Participation People need fanatics, there is not much rationality. Also, in order to change the consumer to change the currently used product, multi-level direct sales are usually through the sales staff attack, dish black competition products, and corrupt market business order.
(The above content comes from "Direct Market" Xinhua Publishing House, October 2004) http://zxdbz.bbs.xilu.com
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