Direct Sales Articles

Enjoy these articles written by Annette and other direct sales leaders from around the world!  We hope they help you!


I'm a Pooh, How About You?

by Annette Yen


I'm a Pooh - how 'bout you?


When my girls were growing up we absolutely loved reading the Winnie the Pooh books together. In fact, now that they are 16  and 17, we actually still enjoy the original series (not the Disney remake books) and often will just pick them up for fun and read a chapter or two.


There is benefit, however, to reading Pooh as a direct seller too.  Hang with me here, I'm very serious.  Pooh and his friends from the hundred acre wood provide a metaphor for the people in our lives in general and more specifically to our direct sales teams.


So let's have some fun and explore a bit more about Winnie the Pooh and his friends and see if you have someone on your team or a potential recruit that looks like:


Pooh himself: Pooh is pretty much the eternal optimist.  He looks at every opportunity of life as a chance to get more honey and won't be shy about asking for honey when he sees it nearby and if his tummy is a little rumbly.  He cares about his friends, sings while he's walking and basically is fun to be around.  Though not always the brightest bulb in the lamp, what Pooh lacks in street smarts he makes up in caring and optimism.


Direct Sales Poohs - Poohs make great team members because they are pretty teachable.  It might take a little bit longer for a Pooh to catch on to the system, but overall they're so fun to work with because of their cheerfulness and their willingness to try, that you enjoy the interaction and long for more.  Poohs will usually see problem issues as bumps in the road and rarely make much of a fuss beyond "oh bother!" :-)



Piglet:  Nervous little piggy Piglet thinks he's smaller than he really is.  He has his moments of being brave, but for the most part, prefers to have Pooh hold his hand and lead the way.  Though faithful to the core, anything new makes him nervous and he'll make a point of letting everyone know that he's a "very small animal."


Direct Sales Piglets:  You can't miss the Piglets in our business because they're very needy.  Even though they know the answer they don't trust themselves enough to go with it so they'll call, email or IM you every time a situation comes up when they're working the business.  Some direct sales Piglets will be too tentative to ever really give the business enough of a chance and will quit, but others could turn out to be your shining stars.  They'll be the ones whose life will be so amazingly altered because of their involvement in direct sales that they'll be featured in company publications.


Rabbit:  Mr. Type A personality through and through, Rabbit is organized and can get things done.  Though slightly lacking in the warm and fuzzy department, he's the go to guy when they need to come up with a plan and actually implement it.  Rabbit's strong personality sometimes scares the other hundred acre wood animals, but they depend on him nonetheless.


Direct Sales Rabbits:  Though teeming with potential, direct sales Rabbits sometimes are so focused on being organized, planning and vision that they don't ever really get their business going, because once they've finished organizing their desk or their schedule, there's not enough time to actually sell the product or the opportunity.  Once you can help a Rabbit focus, however, they could well be your powerhouse sellers and recruiters.


Owl:  Wise old owl has an answer and a story for everything.  He can talk his way out of any situation - either by confusing or boring them to death.  Unfortunately many of Owl's stories are a bit exaggerated - or completely made up.  Owl thinks it's important to look smarter and act like he knows more than he really does.


Direct Sales Owls:  The Owls on your team want to be superstars so much that they'll actually craft stories or embellish what happens in their business appear like the person they hope to be in the future.  Owls, too, can turn into superstars if you capture the enthusiasm that drives them to be storytellers and help them to use that skill to share the business with others in an honest and straightforward way.  


Eeyore:  If Pooh is the eternal optimist, Eeyore is the eternal pessimist.  To him, everything that can go wrong will go wrong.  And so, unfortunately, Eeyore rarely will even try to do anything at all because there is no hope of it succeeding.    If something does happen to go right for him, he'll somehow dwell on the fact that it'll probably go wrong somewhere else down the road.  


Direct Sales Eeyores:  If you've made it this far in this article you've probably got several names in mind that qualify for Eeyore.  Every time this team member calls you it's to complain about something that probably doesn't even affect her because she's not even had a party or placed an order yet and is determined not to until your company makes the situations better.  The problem is this person will then have found another problem to complain about.  Direct Sales Eeyores are pretty tough to turn around and can often drain your energy.  Don't let them. Encourage them in their positive steps, coach them to action and if nothing helps, be strong and walk away. 


This was all in fun, but just like other "personality type" tests and assessments, the Winnie the Pooh list can be helpful in realizing your own Direct Sales style as well as the personality types of your team.  Once you can identify certain characteristics of team members you'll know how to coach and encourage them to success.



Annette Yen loves direct sales. With 22 years experience under her belt she's met many a Pooh, Eeyore, Rabbit and more.  Find free tools and ecourses for encouraging the members of your team on her website www.directsalestools.com.


The Tax Advantages of having a home based business

The best advantages of owning a home-based business are you can turn non-deductible expenses into tax deductions. The deductions you create for your Schedule C have a more significant impact on the total taxes you pay than do deductions on Schedule A. Schedule C deductions not only reduce federal income tax, they also reduce self-employment tax, Medicare tax, and state and local taxes.

Some favorite tax deductions for home-based businesses include the following: 

·Meals and Entertainment can be 50% deductible when you are with prospective or existing clients, vendors, etc. If you are in a service business or sell products, most everyone is a potential client. It is important to follow the simple documentation guidelines issued by the IRS and to understand there are limitations. An example of a deduction you cannot take is dining out with your spouse. Even if you are business partners, the IRS says no to this. If together, you take a potential client to lunch then the meeting expense is deductible.

·Trips must be mostly business-related to be deductible. If a small element of fun is involved, you will most likely have a completely deductible trip. The deductions will not apply to a spouse who tags along, unless it is also a working trip for the spouse. Compliance with IRS regulations can be tricky, so it is best to check with your tax advisor before assuming your trip to Hawaii will be deductible.

·Utilities and other expenses for the portion of your home or apartment you use exclusively for business are powerful deductions. Without a home-based business, the most one can deduct is interest and property taxes (on Schedule A). In relation to a home-based business, a portion of utilities, maintenance, cleaning, lawn service, pest control, etc. can be deducted on a Schedule C.

·Income Shifting. Let us say you have three kids who are ages 10, 12, and 14. You can pay them to work in your business. (Children must be eight years old to be paid for working in a family-based business.) Each child can earn up to $4,700 in 2002 without paying income tax. You also have the advantage of not paying Social Security or Medicare taxes on your dependent children who work in your business. In this example, you have shifted $14,100 tax-free dollars to your kids. This is clearly better than allowance! There are rules, however. The kids have to actually work and be paid fair (not excessive) wages for their services

These are just a few of the many tax advantages available to owners of home-based businesses. It is strongly recommended you enlist a qualified tax advisor to help you learn how to document your expenses and how to legally take every deduction to which you are entitled.
Vicki Collins is the Prosperity Center Director for the DSWA, a CPA/CCPS and a Certified Public Accountant. She specializes in helping direct sellers keep more of what they earn by managing their money properly and maximizing home-business deductions.
Article provided by the DWSA


©2008 DirectSalesMentoring.com - All Rights Reserved