AMSOIL Dealer Podcast with Michael Sparks-ep004

How to build and design an AMSOIL business that suits you, with  the “Successful AMSOIL Business Models”

“Listen to the show by clicking the player at the bottom of these show notes or download to listen later”

• Get Rich Quick Business Model
• Internet Business Model
• Trade Show Business Model
• ROTS / Full Service Business Model
• Home Warehouse / MLM Business Model
• CA / Professional Rep Business Model
• PC Development Business Model
• Michael Sparks Business Model  Understanding the Comp plan and using that to your advantage. Building a strong personal business and teaching others to do the same.

Get Rich Quick Business Model

1. It takes time
2. It takes effort
3. It takes learning and growing
4. It takes leadership

Internet Business Model

• Minimal geographic restraints … you can reach many people over a large geographic area in a very short period of time.
• Questions can be responded to immediately.
• You can work from the convenience and comfort of your own home.
• You can actively work anytime of the day or night.
• You can be very creative.
• It’s a great Dealer and Preferred Customer prospecting tool.
• Amazon is one of the largest companies in the world, online marketing can be a big time tool if you do it correctly, the AMSOIL business is a lot of like Amazon, they take of fulfillment, they take care of orders and shipping, you get a new customer and earn a commission

• No direct, or face-to-face, contact with your customers.
• It can be perceived as very impersonal.
• Loyalty can be very hard to cultivate.
• If you do not think you would like to spend many hours a day on the computer, this model may not be the best fit.
• Technology is constantly changing and can be hard to keep up with
• Marketing costs can easily get out of hand and into the thousands or tens of thousands of dollars, be sure to know what you plan to do before you spend the money
• Competition can be fierce
• Learning to properly utilize social media like Facebook, LinkedIn, Twitter, Instagram etc. Finding your niche

• Learn to convert contacts or leads into customers (RS/CA/CR), PC’s or Dealers via written communication. If you can’t write well, this method is not for you, since this is not a face-to-face method.
• Respond quickly to inquiries from potential customers that contact you via the Internet. If you don’t respond promptly, they will move on.
• Send requested information and follow up on a continual basis – either on a personal or automated basis.
• Ensure that you have a quality website, and develop expertise on website management and control so that leads do not slip away.
• Since you are not face-to-face, you may find registering PC’s is the preferable 1st step in sponsoring Dealers.

Trade Show Business Model

• This model can provide the opportunity for great face-to-face (direct selling) time with potential customers and future Dealers.
• You have an audience (prospects) coming to you … the challenge is determining the most effective ways of hooking them.
• You can convey passion for the business, as well as the quality of the product, in this type of setting.
• If you attend the right show, you can speak with a great number of people.
• You can prospect for commercial and ROTS accounts, Dealers and PC’s, Catalog Customers and personal retail sales prospects all at one location.

• Cost is one … travel is another. You will spend time on the road.
• If you do not like to travel, this model may not work for you – with the exception of local shows.
• Since you are an individual you are limited to the number of people that you can personally interact with “one-on-one”.
• You can only focus on one market (I.e. the show) at a time with this approach.

• Being a skilled “people person” as you will spend a great deal of face-to-face time with potential Dealers and customers.
• Knowing what you are going to talk about, and being serious about the need to convert leads into customers.
• Involve your down line Dealers for booth assistance and training purposes.
• Developing experience at knowing how much time you will spend with each booth visitor, and making sure you have a plan as to how you will follow-up with each new customer developed – regardless of the type.
• Advanced planning and organizational skills are a plus, as are time management skills.
• Understanding the challenges and opportunities inherent with the type of markets attracted to the show you are attending.
• Understanding the types of people who will attend the show, and what they are coming to the show for.
• You have to be committed to doing this model, getting setup to do shows can be costly, and just doing one or two will not even begin to have a payback.
• Having a system of doing shows….sticking with what you like and what you are good at.
• Consider “closed to the public shows” where there are a large congregation of business owners, either commercial or ROTS accounts. They cost more upfront, but can earn you more money faster.
• Have a way to stay in touch once you meet people. Social, Email, Phone Calls etc. Many trade shows are some distance from your local and you may be getting new customers and accounts from across the country. Be prepared to work with them.

ROTS/Full Service Business Model

• The ROTS/Full Service Business Model is great for cultivating relationships and creating loyalty.
• Delivering the entire product order to the ROTS account makes a statement that service to your customer is your #1 priority.
• Having local Retailers/installers and shops is great to send customers to that don’t want to be an account or just want a small amount of products.
• ROTS accounts is a quick way to get commissions coming in on a regular basis. We started with this model and this proved to be the biggest bang for the buck when getting new customers. It doesn’t take much to have several ROTS accounts buying between $350-$1000 per month (earning you $60-$200/mo per account) Think about having 25, 50, or 100 stores out there selling products for you the servicing dealer

• Your stores control the customer – not you. This is something to always remember!
• The stores customers can elect to buy from whomever they want … they aren’t registered or protected … So other Dealers can register them.
• Time is valuable – it is tough to get to all your customers and keep growing your customer base (you will reach a saturation point).
• If you cannot deliver the product (say you become ill) your customers will go somewhere else – or simply stop buying the product.
• You may have a difficult time building an organization underneath you if you exclude using other business models.
• It’s a constant daily battle to keep your accounts, which destabilizes your long term, future business stability.
• ROTS accounts can be hands-on intensive. Key to train your accounts, for ordering, for new products, recommending AMSOIL to their customers.

• Being able to deliver product is essential to being successful with this business model.
• Maintaining constant customer contact – to understand their business climate and needs, and to stay a step ahead of the competition.
• You must have a willingness to stock product to handle emergency deliveries.
• Schedule training classes for your retail accounts, and stick to it.
• Always sell, then resell, and remind them why they have AMSOIL on their shelf.

Home Warehouse

• Great for face-to-face selling so you can convey your passion and belief to others.
• When Dealers/customers stop by your warehouse they “see” that you are a successful AMSOIL Dealer.
• Ability to earn Retail profits, and volume commissions plus volume discounts further boosting profits. Many dealers that have the warehouse model order tens of thousands per month in products
• It is a great down line team building model since every time someone stops by, you have an opportunity to build relationships, motivate, train and lead.

• You are tied to manning your warehouse – travel will be minimal.
• You must invest substantial sums in your inventory.
• It is often difficult to get the time you need to call on and establish new accounts, especially Commercial and ROTS Accounts.
• The geographic reach of your business can be limited by driving distances and sometimes by the weather.
• As we age, asking yourself if this is sustainable as far as lifting and moving heavy oil boxes.
• Could your spouse take this over if you were gone?
• If you work out of your home, do you want people coming to your house or stopping by if you are not there?

• Be a “people person” and be available.
• Customers often want product 24/7. So be available.
• Understand your customers needs and order patterns so that you always have inventory.
• Follow-up and follow-through is paramount.
• Be available.
• Spend time training your down line so they know how to move product. After all this is why you are investing in and inventorying product.
• Train, motivate, train, lead, train.

MLM Business Model

• True leveraged income.
• True Residual Income
• Building long term relationship with others that want what you want
• Downline dealers become part of your family, even multi-generational!
• Team building is exciting
• Teaching and helping someone go from Zero to Success is very rewarding
• Time and Financial freedom is possible
• It only take a few that want to build the business to help you bring up your levels of success

• Can be slow to build
• Can be frustrating, since everyone is Independent we can not expect anyone to do anything—You can’t push a rope
• You can get emotionally involved with team. They are like family and with that there can challenges like any family
• Your downline will do what you do. As you sponsor, train and teach they will follow you
• Many sponsored dealers don’t take the business opportunity seriously
• It takes many to find a few

CA/Professional Rep Business Model

• Involves selling your lubricant knowledge, application expertise, and service.
• Every order provides almost immediate income.
• Solving a customer’s problem provides the opportunity to not only sell the particular product that solves that situation, but additional products as well.
• Can be a fast track to positive cash flow. Like the ROTS business model dealers are paid as accounts reps. A few Commercial Accounts buying $500-$10,000 per month could be your ticket to gain financial freedom
• The Commercial space has the least amount dealer competition. Many dealers have not developed the skills to go after these customers
• The Commercial space is vast! Many dealers can carve out a niche with various types of customers or equipment.
• Commercial has the ability for a dealer to sell tens of thousands to over $100,000 of dollars in products per month.

• It can be difficult to build a down line with this type of business model since all your time is spent calling on and cultivating CA’s. Commercial Accounts can be very Hand On
• You are competing head-to-head against other lubricant suppliers all day – every day.
• If you cannot visit and service your CA’s on a regular basis, you will lose them, making it difficult to realize long-term business stability.
• It is easy to get lured to “chasing smokestacks”.
• Dealers need to be technically minded and able to answer a lot of challenging questions

• Target niche markets our competition is neglecting, and “don’t get caught up wasting time chasing smokestacks”.
• Study your products, learn common equipment suffering points for applications within your targeted market, and be prepared to make lubricant recommendations … or you will starve.
• Know who your competition is and what makes AMSOIL unique versus their products and programs.
• Never give up! It can take 6-7 calls, or more, to lock down a lucrative CA.
• Present yourself as a problem solver, and follow-through on appointments and commitments.
• Build relationships and ask for referrals!

PC Development Business Model

• PC’s are paying for their own Magazine, which they read and learn about new AMSOIL products and why AMSOIL products are better.  In turn, a PC will buy more without personal intervention.
• Dealers earn: A $10 Qualifying Bonus when the Preferred Customer accumulates 50 Commission Credits during the first 12 months. and $5 Retention Bonus when the PC renews.
• Commissions on “all” CC’s generated by the PC, plus it’s building the Dealer’s monthly CC’s with each new PC sponsored. Sales to PC’s is the same as if the dealer purchased the products themselves to go out and sell. This is a hands off program for the most part.
• The PC Program can be a stepping stone for customers to become dealers. Many top dealers started out as preferred customers and after seeing the benefits and telling others about it decided to join as a dealer.
• PC’s are long time customers–Enthusiasts that will stay with you for a long time
• Direct sales remains AMSOIL’s primary channel of distribution; which means sponsoring Dealers and registering PC’s is your fastest way to climb the “commissions ladder”!
• PC Perks!

• Competition in this area is high among dealers
• Many PC’s come to AMSOIL.com without a sponsoring dealer (be sure to be a customer certified dealer to get these customers assigned directly from AMSOIL)
• PC’s are do themselves. It’s hard to up-sell if you can’t meet them or talk with them.

• Finding PC’s is easy tell everyone you know about the program, promote the PC program online with social media.
• Stress the advantage of becoming a PC. PC Perks like discounted pricing, free shipping, PC points for further discounts, free monthly merchandise and other specials as well as factory direct to your door shipping.
• Recognize that the more PC’s you register, the larger you self-servicing and customer base becomes, which aids in long-term business stability and commissions income.
• Periodically review your PC’s for Dealer upgrade potential.  AMSOIL sees many PC’s upgrading to Dealer status. In fact, the percentage of PC’s upgrading to Dealers is roughly equivalent to the number of new Dealers that become successful.
• Remembering that PC’s are the best source for a Dealer to develop new Dealers.
• Recognizing that registering PC’s is an excellent way to quickly develop a sizable down line team, and many Dealers are extremely successful at it.
• The fact that a DJ earns 23-25% commissions on the Preferred Customer CC’s (up to 84 cents/quart, 10 dollars+/case on ATM) is an excellent reason to encourage down line Dealers to strive to climb the commission ladder to the level of DJ!
• Understand that the $20 (12-month) registration fee for PC’s is recouped when the average PC purchases $100 or more of AMSOIL product/year (I.e. thanks to the difference between retail and wholesale price).
• If PC’s are not contributing at least 10-15% of your CC’s, the current average, re-evaluate your business plan to include a focus on PC’s.

Michael Sparks Business Model