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

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We wanted to give new and prospective AMSOIL Dealers a guide to determining the direction they would like to pursue in building their individual businesses.  Some Dealers may be seeking a stay-at-home business philosophy where the customers come to them. Others may like going to tradeshows.  Perhaps you’re a Dealer with a strong computer background. No matter where your strengths and weaknesses lie, AMSOIL has a business model for you.
Today we’re going to talk about these business models so you can know the strengths and weaknesses of each. This is a quick overview of each one, and there may be other things we don’t discuss on this podcast. If you are already a dealer, be sure to talk with your sponsor, upline Direct, or your AMSOIL Regional Sales Manager. If you are looking to become a dealer we would be glad to discuss this with you. Just give us a call.
  • Get Rich Quick Business Model
  • Internet Business Model
  • Trade Show Business ModelClick here to Join
  • 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

Many new AMSOIL Dealers would be tempted to adopt this business model when setting out to develop their business plan.  The truth of the matter is, however, that this business model does not exist.  AMSOIL simply listed this model to make a point.
AMSOIL is not a get rich quick business, though in reality I believe you can get rich in this business.
  1. It takes time
  2. It takes effort
  3. It takes learning and growing
  4. It takes leadership
What is the definition of getting rich? I specialize in wealth development for business and entrepreneurs…The truth with a Job you work 40 years to retire with 40% of your income. That doesn’t exactly sound like a winning possibility to me. What if you work at your AMSOIL business for 5-10 years, build up a nice sized customer base that continues to order on a regular basis. In realist with just minimal effort your income will continue to rise over the years. Most dealers NEVER retire! Matter of fact several dealers that I know continue to work into their 80’s and 90’s on a part time basis.
You see the idea of the AMSOIL business model is to continue to get paid over and over on an initial effort. Ask yourself, what is get rich quick. If quick is 5-10 years when you can quit your day job, if 5 years you could add additional $2,000-5000 a month in income to what you are already doing, if having financial and time freedom is considered get rich quick then I think AMSOIL could be a good choice.

Internet Business Model

AMSOIL Dealers that choose the internet business have enjoyed tremendous success by taking advantage of their computer skills.  The World Wide Web or Internet is probably one of the most profitable business tools in use today.  Therefore, the AMSOIL Internet Business Model may be an effective way to help launch your future.
The Internet Business Model can provide a Dealer with certain advantages when it comes to reaching prospective customers.
  • 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
Of course, with any business model, there are some drawbacks.  The Internet Business Model is not for everyone. There are some challenges that Dealers can encounter if they rely exclusively on this business model.
  • 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
Now that we have identified the strengths and challenges of the Internet Business Model, there are certain guidelines Dealers should remember if they hope to be successful when utilizing this tool.
Keys to Success:
  • 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

Many of AMSOIL’s most successful Dealers have reached their level of achievement by participating in trade shows.  Whether it’s an automotive, recreational or industrial trade show, more and more AMSOIL Dealers are utilizing this model to expand their businesses. I have personally had some great success with trade shows as well as our mentors David and Carol Bell who are one of the top dealers in AMSOIL.
  • 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.
Keys to Success:
  • 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 Retail-on-the-Shelf (ROTS) Program has developed into a great way to expand the accessibility of AMSOIL products.  The program meets the needs of consumers, who can purchase product in a retail store and helps AMSOIL Dealers expand their business opportunity.
As the servicing Dealer your responsibility is not just to get products into retail establishments.  In some cases the Dealer provides assistance to the account by delivering product, keeping track of buying habits and training the store’s personnel.  As a result, full service has also been included in the title of this 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.
Keys to Success:
  • 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

The Home Warehouse Business Model has proven to be an effective way for AMSOIL Dealers to succeed in generating profits.  This business model also gives Dealers a great chance to build a healthy down line. But like any business plan, the Home Warehouse Model provides its share of challenges.
  • 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?
Keys to Success:
  • 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

We broke the MLM business model out from the Warehouse model. Surely you can sponsor, train and teach dealers in any of the above models. The MLM business model is suited for dealers with strong leadership skills or that want to be a strong leader. Do you have the ability to teach others? The MLM business model can be very rewarding, but also very frustrating at the same time.
AMSOIL has said, sell for today’s income and sponsor for tomorrow’s income. Sponsoring a large and productive downline can bring income long after you are no longer around.
  • 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

Registering Commercial Accounts can be a great way for AMSOIL Dealers to build their businesses.  By purchasing products for use in their own vehicles and equipment, Commercial Accounts provide the potential for large sales volume and high profits.  The CA also requires certain service requirements from the sponsoring Dealer. With that in mind, AMSOIL came up with the 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
Keys to Success:
  • 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

The Preferred Customer (PC) Program is one of the easiest ways to provide people with exposure to the AMSOIL product line.  Preferred Customers purchase AMSOIL products at discount, without the responsibilities of owning a Dealership. It is easy for Dealers to sign up PC’s and it is in their best interest to do so.  AMSOIL Dealers receive commission credits on the PC’s purchases. In addition, PC’s can change their status to an AMSOIL Dealership at any time. The PC Development Business Model should be a part of every AMSOIL Dealers business plan.
  • 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 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.
Keys to Success:
  • 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

We have made is a study to learn all aspects of the AMSOIL business. Which model seems right at first can end up being something you regret. We learned about all of these programs by taking a long term view of our AMSOIL business. Many dealers join to just make some part-time income and have fun. Others want to do this full time. We saw the opportunity, we saw the ability that we could be financially free if we worked hard at it.
We started out focusing on the ROTS program. Our upline used to say Have 100 ROTS accounts doing $100 a week in purchases and you would earn $104,000 per year. This is without sponsoring a single dealer. Actually we were put off about the MLM/Network Marketing side of the business…That was until we truly understood the comp plan as well as the long term nature of that business model and how it can give you Time Freedom.
So what we did was a two pronged approach. We concentrated about 75% on the ROTS and Commercial Customers at first with 25% going to sponsoring and preferred customers. Once we reached the Account Direct Level of recognition we brought it down to 50-50. As our business grew, we started focusing more on sponsor and helping dealers grow their business. Actually have a great webpage called AMSOIL Dealer/Direct Jobber Awards and Incentives which I’ll link to in the show notes
Over the years, we learned about the online marketing and how to attract customers without “selling them” We focused on providing educational information on AMSOIL products and the business. This allowed us to sponsor hundreds of customers and hundreds of dealers over the years. Of course some dropped by the way side, but many didn’t and are still buying to this day.
By understanding the AMSOIL comp plan, we have decided that we would like to help 100 AMSOIL Dealers become Direct Jobbers. We also want to help those DJ’s get to the $10,000 per month level. This equates to $1,000,000 in sales which we would earn a 9% DJ bonus…As AJ Amatuzio once said…The Sky’s the limit. Set your goals high, even if you don’t achieve them because if you only meet 1/2 or even 1/4 of them you are still a super star of success!
What if you worked the Dealer/Direct Jobber awards and recognition that I mentioned earlier? What if you went out and registered 25 Commercial/ROTS accounts. Then sponsored 10 dealer and taught them to do the same. What if you repeated this process over and over until you had 100 C/R accounts and 100 dealers all doing the same. Obliviously in a perfect world this would be fabulous, it may take more than 25 C/R accounts, and it may take more than 100 dealers. But at least it’s a start!
So, Which is the best AMSOIL Business model for you? How would you figure out as a new AMSOIL where to go first?
It’s been said there are as many ways to build an AMSOIL Business as there are dealers. While there are 6 unique programs.
1. AMSOIL Dealer Program
2. Preferred Customer Program
3. Commercial Program
4. Personal Retail Sales Program
5. Catalog Program
6. ROTS Program – Stores / Quick Lubes
Many dealers work all these programs to build a balanced and unique business that suites them. Many dealers have their favorite programs based of their preferences, likes and strengths. The key is being able to help anyone who wants to purchase AMSOIL products in the best way possible.
If you are exploring the AMSOIL Business opportunity and would like to discuss which programs best suit you, please give us a call or reach out over email or social media. We have been dealers since 2000 and have build a solid AMSOIL business using all the programs. Of course we have our favorites as well, but we do work all aspects of the AMSOIL Business Opportunity