Are COTM’s worth it?

When it comes to Direct Sales we all want to succeed. Part of being successful is getting those sales and keeping them going. After all, the more you sell, the more money you make and the higher you go up in rank.What if you’re just starting out? Learning the ropes and you have a quota to meet?

My experience: 

When I first started in Direct Sales, I had no idea what to do. I knew nothing about how to get customers or how to go about putting my self out there. I was playing it by ear. Then one day, I noticed a post that went somewhere along these lines. “Looking to meet your sales goals? We have lots of people ready to shop, just comment your company below.” Seeing this, I got excited! I could not believe it! Perfect opportunity for me to get sales. So I commented with my business. One minute later, I received a message with a link to join a COTM (Consultant of the month) group.

This is how it works:

So at first you have to  make an IP (short for initial purchase) to the person that invited you to the group. Then there are several groups of different prices you can join anywhere from $15 all the way up to $100. Each group consist of 6 people. Once you have shown interest in what group you would like to join then the admin adds you to that group. For example, I had decided I wanted to join the $45 group. Once there were 6 people in the group, then we are ready to begin. Now keep in mind before hand, it is decided by admin who will be in first place, second place, etc…. In my case, I was in 5th place. For example:

$45 Group:(names are fictional)

  1. Jane Doe
  2. John Doe
  3. Tom Smith
  4. Sarah Smith
  5. Manuelle Leblanc
  6. Joe Brown

So the first month, everyone purchases from Jane Doe. Once every one got their purchases from everyone else then the group is closed and you can join another if you like.

Why COTM makes no sense:

People can bail out! In my case, the Jane Doe once she got all her purchases unfriended everyone and left the group altogether. She even blocked one person that tried to contact her about making due on her commitment. Nothing could be done about it, so Jane Doe got $225 worth of sales and got to spend nothing in return. By doing so everyone in line missed out on a $45 sales (before tax and shipping). Then, Sarah Smith after getting all her sales from the remaining 4 people bailed out too. So, Sarah Smith got $180 worth of sales after herself spending $135 (plus shipping and tax) buying from the previous 3 people. Finally, it’s my turn with only 3 people left to buy from me. Joe Brown made his purchase using points meaning he got his purchase for free and only had to pay for shipping, so this did not count towards commission or sales. In the end I ended up with only $90 in sales after spending $225 purchasing from others. So if I did the math correctly, that leaves me with a deficit of $135.

Makes no sense to me.

Downfall:

  1. It could take a long time before a group gets filled. You can sit there and wait possibly weeks before a group a filled so you can begin.
  2. If you are not the first one in line, you could wait a very long time to get sales not including you could miss out.
  3. People are free to bail out and there is nothing that can be done about it meaning you lose out.
  4. You may end up stuck with products you don’t even need.

Why pay to make sales?

On the upside:

If all you do is bring in people, each person you bring into the group must make their initial IP from you. That’s the only good I see in these types of groups.

Thank You for reading. Later on I will write about trains and game groups.

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