There is always a huge push to “finish” your goals by June 30. It’s the end of the seminar year, so there are extra prizes and sometimes you get to go on stage at seminar. Everyone is pushing in June, and that’s why sales director commission checks are the largest in June.
Is everyone really selling more in June? How do those goals get met and those prizes won? We’ve been following along as Chelsea Claytor was trying to qualify for the pink Cadillac again. And miracle of all miracles, she did it. Magically, $20,000 of production appeared for her in June. Or did it?
We have no way of knowing her exact numbers or how the orders came in. She claims to have personally taken hundreds of orders in the last couple of weeks. If she really had that many customers, why weren’t they ordering before? Why now? It doesn’t really add up for me. Literally.
More likely, available credit on a credit card was the reason the goal was finished. Remember Jen Semelsberger (now Besecker) “finishing million” in 2007? She posted pictures of the event. And one picture told the truth. Multiple credit cards on the desk in front of her. THAT is how these big goals are finished. By placing a large order for whatever production is needed at the end of the night.
Why would a consultant or director do this? Why order more products than you need? Part of it is about saving face. And a big part of it is the lies they tell themselves. I’ll eventually sell it. By getting into the Cadillac now, I get momentum, and I’ll automatically be recruiting more and therefore making more in commissions, so that makes up for any extra money I’m spending on products I don’t need.
And once in a great while, that momentum works. We saw it with a couple of young directors who catapulted to NSD quickly. But of those 2 who did it, one crashed and burned within a couple of years and dropped out. The other is still in MK and raking in the money, but she is the exception. There are at least a few thousand sales directors over the last decade who tried this method of gaining momentum (i.e. paying money to get to that next level to create fake momentum) and failed. They ended up with only credit card debt.
Why? Because the MLM system is designed for failure. It is mathematically impossible for more than a tiny fraction of women to succeed in MLM, which is why we see more than 99% of people fail. It’s not because they didn’t work hard enough. It’s because the system is rigged against them. And even if you focus on just selling products, you’re almost destined to fail with that too. You have overpriced products with too much competition from other consultants who are trying to sell to the same people. Even if you can sell, you end up discounting so heavily that you make very little in the way of profit.
If Chelsea bought her way into that Cadillac, I doubt that her thought process was nefarious. She really thinks that she’ll be an inspiration to others. She believes that she’s helping the women she recruits. This is just one step in the process toward becoming an NSD, and she see this all as a good thing.
But she doesn’t realize how she is setting herself up for failure. She doesn’t have a unit that is truly producing Cadillac level production. That means she’s going to be falling short each quarter, and she’s going to owe a co-pay on her Cadillac. (I.e. she has to pay part of the lease cost herself) She will have a commission check that is less than the Cadillac level, and then it’s going to be reduced by the co-pay. Having the Cadillac is going to be an expensive lesson, if she’s like most of the Cadillac drivers.
It’s all so exhausting, isn’t it?