"I'll Be There For You..."

Remember the theme song to the show FRIENDS by The Rembrandts? What's funny about starting your own business is that usually, as you start talking about it, your friends are SO SUPPORTIVE of the idea. They'll say, "Go for it!" or "I'll support you 100%!". They will cheer you along and tell you that you've got the talent to do whatever you're thinking of doing.

But, you know what happens when you finally open that business? Your friends are often nowhere to be found. There is an old saying that comes from the bible that roughly says, "No man is a prophet in his own country". That is true at times. I often find that those who were your biggest supporter during the planning stages of your business, don't take you seriously when you actually launch the business. They will often treat your business lightly and sometimes even expect a "friend discount" (translation - WHOLESALE PRICE).

It's sad, really, because you would hope that those closest to you would be your best customers if they are interested in whatever you're selling or doing. You would also hope that they would be your best customer advocates and tell others about your new business.

So, the lesson for today is that if you have a friend who owns a business - be it a scrapbook business or a plumbing business - use them. Put your money where you mouth is and show them that you really DO support them 100% by becoming one of their customers.

How Much Moola {$} Can I Make with PhotoBookBiz?

One of the top questions I get about PhotoBookBiz is "How much will I make?" Well, that's not an easy question because the products all have different profit margins. But, above is a chart (click to enlarge) with a few of the most popular products from prints to lay-flat photo books. The average profit margin on this products is 23% but that can be more or less depending on where you set your prices. These prices are assuming MSRP, but, as I said, you have the ability to set your OWN prices.

Things to remember about this fantastic program:

• It's only $49 a year to join
• You don't ship anything to anyone
• You don't stock any products
• You don't have to process credit cards
• Customer service questions and technical issues are handled by Rocket Life
• You can set your own prices
• You can offer your own unique sales
• The feature-rich software is customer-approved and award winning for it's innovation and ease-of-use

PhotoBookBiz is a GREAT way to tap into digital scrapbooking without risk or investment. As fast as you can sign up, you can be in business. CLICK HERE for information or to sign up!

Looking at PhotoBookBiz?

Check out the video tour of our newly relaunched Rocket Life program. If you've been thinking about starting your own PhotoBookBiz with us, now is a great time!!!! It's just $49 a year!!!

Yours, Mine or Ours?

With the aforementioned closing of I Remember When, I have been once again reminded of WHY I started ScrapBiz in 2002. It was not only my experience with IRW at the time, but past experiences that caused me to be gun shy about the "Your business until we take it from you" model.

The short version of my time with IRW is that they essentially shut down for 2 months and told us to wait. There were some personal things going on at headquarters and the decision was to NOT place any orders for weeks and weeks. I had white cardstock and black pens on order for about 6 weeks. The "story" was that the supplier was out of those. Later, I found out who the supplier was, recounted the story and got a hearty laugh out of the customer service rep. It had NOTHING to do with them not having those two basic supplies and EVERYTHING to do with IRW not paying their bills.

The other issue was that they stopped printing catalogs. I got 6 and then could get no more. How can you have parties when you don't have catalogs? I believe it was like 18 months until the catalogs finally arrived and I was long gone by then.

I kept wondering just who's business this really was? They said it was mine, but they treated it like theirs. Poor planning on their part DID create a crisis on mine. My customers just wanted their orders! I spent nearly every penny I got from customers at Michaels buying products to fulfill orders. Then, I realized that IRW was nothing more than a poor wholesaler (with a really rotten discount) and I went looking for my own source of supplies. And, that is how ScrapBiz started.

A similar situation happened several years earlier. My husband and I were sales agents for Xerox. The business was all ours - hiring, firing, sales, location, etc. That was until we had built it up to something great and wanted to sell it. Xerox said, "Nope, it's not REALLY your business. If you want out, we'll just assign another agent to your territory. You get nothing." We had to "Lawyer-up" for the fight and they backed down and allowed us to sell. We were the first Xerox sales agents to EVER sell their business. Of course, Xerox reserved the right to approve the new agent, but we sold it to an employee who already knew their system so they couldn't reasonably say, "No". But, that was our first go-round in the "Who's business is this anyway" game.

Some I Remember When consultants have indicated that the sharks are circling. They're getting, "Oh, I'm sorry you lost your business. JOIN US TODAY" messages from other consultants in the few remaining direct sales companies in the industry. I hope they will approach those messages with extreme amounts of caution. Do you really want to dive back into that pool?? Do you REALLY want to build something up only to possibly have it yanked out from underneath you again? Do you REALLY want the drama that comes with asking an innocent question about shipping on the consultant boards and getting slammed for being "negative"? Do you REALLY want to deal with all the shipping and policy changes that really only benefit the home office?

I've been quite critical of direct sales companies in the industry for many years because I believe they lead many women down the wrong path. They teach them poor business principles - like recruiting. It GREATLY benefits the company, but hurts the consultant. They dangle big rewards in front of them but the truth is that 97% of direct sales people never earn positive cash flow. They have fantastic conventions every year but really, did you even EARN as much as it costs you to go to the convention? I think most consultants lose more than they made when they fork over all the costs of going to the "rah-rah" party.

So, from all my experiences, I set up ScrapBiz the way I did ON PURPOSE. If ScrapBiz were to close tomorrow (which it won't), not one of my members would lose their business. I love that fact! It's not my business or even OUR business, it's THEIR business. Of course, I'll expect a proper period of mourning - LOL! But, after that, they'll just keep on doing what they love!

Maybe it's time to strike out on your own and join ScrapBiz.

Don't Blame the Economy - we were hurting before that....

I Remember When, the direct sales company that ScrapBiz grew out of in 2002, quietly shut it's doors a couple of days ago. It went without the drama usually associated with the demise of the industry's direct sales companies (Scrap in a Snap, Leaving Prints and TLC all went down in scandalous flames). But, the company was not without it's troubles through the years. According to wholesalers I have worked with for many years, paying bills was often a problem. Still, many consultants are now left without a business. Which was part of my beef with these companies in the first place. It's not really YOUR business - if they close, you close.

But, that's not my point here. My point is that many are blaming the economy. That may have had SOMETHING to do with it - as in it was the proverbial straw that broke the camel's back. But, the scrapbook industry has been in trouble for more than just this past 18 months that we've been in a recession. So, the economy can't be totally blamed.

Some of the business members at ScrapBiz report that their customers don't seem to know there's a recession going on. They are still buying like crazy. Others are reporting only slight declines in business or that business is flat. Both aren't bad given the tough economy.

Our real problems started years ago and the economy was the final straw for some. The problems are simple but the answers are complex. I just taught a class at PMA that covered part of the reasons why the industry has suffered the last few years.

1. Consider what a scrapbook store looked like in 1999 - paper, albums, adhesives, embellishments, tools. Then, consider what the scrapbook store of 2009 looks like - paper albums, adhesives, embellishments, tools.
2. Consider the changes in home technology since then: digital cameras, photo printers, faster computers, better scanners, photo books, color printers, wide format printers.

The problem here is clear - scrapbook stores failed to keep up with the evolution of technology and what it meant to memory preservationists. The new tech brought new possibilities for taking photos and preserving memories and stores ignored it all but customers didn't.

1. Consider the scrappers of 1999 - pretty much those who did and those who didn't. Scrapping was pretty much just ONE type of activity
2. Consider the variety of scrappers in 2009 - hybrid, traditional, card makers, paper crafters, digi scrappers, photo book makers, etc.

The problem here is once again that retailers failed to adapt. We have SO MANY types of customers in our industry and yet, most stores cater to ONLY the traditional scrapper. You can't shut out a large percentage of potential customers and thrive. I seriously get amused when a store owner will look me in the face and say, with all seriousness, "I don't have ANY customers interested in digital scrapping." Well, you DID have those people and they already left. And, you DO have some who are dabbling in it or thinking about it and are in danger of leaving the traditional industry. What you're saying is that you don't offer anything to those people so they don't come in.

And finally, knowing that some will drop out over time (or maybe we didn't have the business sense to know that) and that the average life-cycle of a craft is 7 years, we did NOTHING to invite in new scrappers to replace those who left either because they got bored or changed their style.

Struggle, struggle, struggle.... now, add a bad economy on top of that and it means death for many retailers.

That's not to say that you should be all things to all people. But, if you know you have a strong position as a traditional retailer, then you need to market the heck out of that angle and scratch and claw for every traditional customer you can find. You can't sit back and wonder where everyone went and then blame the economy. If you add tech to your store, then you need to like-wise market heavily the fact that you are a 21st Century Scrapbook Store and you want to invite your former customers back to see what you've got.

Either way it's not going to be easy. But, it CAN be done.

Why PhotoBookBiz Works

The last (boo-hoo) edition of Scrapbook Retailer Magazine has or is about to hit your mail box. Check out our full page ad in the middle part of the magazine (look for the ROCKET!). In talking with my oh-so-smart husband the other day, I came up with all the reasons I love the choice I made of working with Rocket Life! It's a GREAT program unlike any other I have seen out there and fits PERFECTLY with my philosophy that independence is the best road to success!

Here are my Top Ten reasons I think PhotoBookBiz is a GREAT opportunity for retailers in our industry:

1. Works with all types of businesses - it doesn't matter if you want to just have a business out of your home helping friends make books or if you are a bricks and mortar store. It works with online stores, home-based businesses and stores!
2. Competitive Prices - you get to set your own price above your wholesale cost! This was EXTREMELY important to me. And, the fact that you can compete with other companies was important. I didn't want anyone to have to sell their books so high that their own customers wouldn't use them.
   
3. Creativity Platform - the Rocket Life Smart Arrangement Technology means that you can make a REALLY FAST book. But, you can also do all the work yourself. AND, it was also important to me that digital scrapbookers could upload their OWN digital products and easily use them. This software works for everyone from the beginner to the advanced photo book maker/digital scrapper
4. Class Opportunity - the creativity platform, while pretty easy - has a learning curve just like any piece of new software. But, once you learn the tips and tricks - you have an "aHA!" moment. With an LCD projector and an internet connection, you could easily teach your customers how to use the program in a classroom setting. Then, the ability to offer discount codes for attendees is like icing on the cake for those who pay to attend the class.
5. Quality - the product quality is top-notch! I've ordered a lot of books from a lot of different companies and the PhotoBookBiz/Rocket Life books and products are some of the best in terms of quality.
   
6. Private Label - nearly everything that comes to your customer after they place an order has your brand on it. From the confirmation emails generated by the system after the order is placed to the envelope that the product comes in to the products themselves, it's all YOUR brand and YOUR name.
7. Cost of the program - it's $98 to sign up. Other companies are charging FAR MORE for a private label option like this
8. Margins - the profit margins vary by product but so far, PhotoBookBiz businesses are averaging between 20 and 25% profit on their total sales - which is HUGE given the next point.
   
9. No shipping or inventory or credit card processing - all that's handled by Rocket Life! Wouldn't it be nice if it worked that way with traditional scrapbook products?!
   
10. Digital scrapbooking with a profit! The traditional industry has struggled to figure out how to monetize digital scrapbooking. It hasn't made sense to teach classes or sell CD's and we've lost a lot of our traditional customers to digital. This gives retailers a profitable way to tap into the growing popularity of custom photo books and digital scrapbooking.
    

Bye-Bye {?} TLC...

Top Line Creations has finally folded...sort of...not really...I guess...maybe...

After yanking the rug out from underneath their consultants a couple of months ago by killing the multi-level structure of their business without notice and effective immediately, they became a "Discount Buyer's Club". Well, as of this week if you go to their website, you see this:

The management and staff of Top Line Creations ("TLC") wish to thank Consultants worldwide for their support and association during the last four years. It has been determined that inasmuch as (1) TLC has always been a multi-level, direct sales organization; (2) the name TLC and Top Line Creations, LC are associated with the same; and (3) the multi-level, direct sales structure has proven to be unsuccessful in marketing the TLC product line, TLC is no longer a viable enterprise and will be dissolved effective immediately.

Fayette Terlouw and Annette Ward (the "Ettes") previously employed by TLC, will continue to share their talents as designers for a new organization -- Breezy Design, LC ("Breezy").

Breezy has negotiated with TLC's secured creditors to acquire all TLC inventory, outstanding orders, equipment, copyrights, etc. Breezy will process and ship all outstanding TLC orders, and will honor the current subscriptions and referral group memberships previously established by TLC. Breezy assumes no liability for any unused TLC Credits or unused TLC Event Vouchers. Breezy will, however, honor all unused Member's Choice and/or Consultant Choice Coupons.

Breezy welcomes all TLC Members and TLC customers to join them in this new enterprise.

www.BreezyDesign.com

Soooo, they closed? I don't think so. The Breezy Design site looks virtually the same. All the product names end in the trademark "z" and the buying club plans are the same. Apparently, they just changed the color of lipstick the pig was wearing...

My gut tells me they are practicing reputation management. When they killed the structure of the business, there were magazine ads, online ads and websites still hanging around out there that talked about the company as a "multi-level direct sales" company. The internet makes it hard to dramatically change course. If you google "Scrap In A Snap" - the company that went down in a blaze of shame in 2004, you STILL find information - the good, the bad and the ugly on them. I believe TLC wanted to make a clean break from all those cached consultant websites and internet messages out there - especially the bad ones.

Then, there is also the sour taste in the mouths of consultants who got burned because they were owed money for downline sales. They are attempting to erase that bitter legacy. New "club members" won't be able to trace the history or remember what happened. Do YOU remember that TLC was originally called "Cock-A-Doodle Designs"? This is a pattern - change the name so everyone forgets that you were all about chickens or the fact that you messed with your consultants.

I don't really believe that TLC is REALLY closing. They are just changing their name to erase their past. And, for anyone thinking that it's a great time to launch a multi-level direct sales scrapbook company (as often happens when one of these dies) - go back and read number 3 in their notice. It doesn't work. History has shown that time and time again.

Here We Go Again...

I heard over the weekend that direct sales company, Top Line Creations (TLC) has pulled the rug out from underneath all their consultants by shutting down the multi-level part of their business to become strictly a discount buyers club. I doubt the proverbial check is in the mail. I think they just said, "Too bad for you" and did it. The check is never in the mail. Just ask the Scrap In a Snap and Leaving Prints consultants when their final checks arrived...

In the words of Gomer Pyle - "Shame, shame, shame, shame, shame..."

That's the problem with direct sales. Not all direct sales companies are going to do this to you but this seems to be a pattern in this industry. And, if the pattern stays true, someone will rise from the ashes and try to set up another direct sales company. Leaving Prints came from Scrap in a Snap and My Creative Life (which has gone nowhere from my perspective) came from Leaving Prints. Please, don't even think about doing it. The climate for this is all wrong and has been for some time.

Here's why starting a direct sales company is a bad idea these days and why they were more likely to work several years ago.

Industry research from about 2001 showed that a pretty good percentage of the industry (around 10%) was getting their supplies from consultants. At that time, there were fewer online stores and not everyone had a bricks and mortar store near them. The supply of products was also much smaller and it was easier to stand out in the crowd. Therefore, there was opportunity to offer variety and convenience to local customers through direct sales.

Fast forward to 2007 research. The percentage of scrappers buying from consultants vs from online stores has nearly flipped. Now over 10% of scrappers use online stores and something like 4% buy from consultants. Online stores are everywhere. Many people have at least a chain craft store near them and there is so much variety in the industry that it's hard to stand out with an exclusive product line. Local crops are plentiful so women have the opportunity to get together to scrapbook more often than they did 6-7 years ago.

Price is another issue - often, direct sales companies raise their prices to cover the many levels they must pay. So, if they are selling common goods at 15-20% MORE then they can be bought elsewhere, consumers will catch on quickly.

The bottom line is that it's hard for a direct sales company to make a profit. And, in turn, it's hard for a direct sales consultant to round up customers.

That being said, there ARE companies that are old enough with enough "critical mass" to keep their momentum. There also are companies with products unique enough to interest customers (such as digital scrapbooking). I don't believe ANY company has escaped the reality of the industry, though. They have all taken a hit to some degree in the last 6 years. My prediction is that another one (besides TLC who hasn't officially shut down, but...)will bite the dust by the end of this year

Just once, though, I'd like to see someone do it with class and without hurting the very women who built them up in the first place.

Know the warning signs. TLC was bouncing checks at one point (well over a year ago) and messed with shipping non-stop. If a company bounces checks, bounce yourself right out of there ASAP without asking another question. ALL of these defunct companies started down the path to their demise with bounced checks, shipping issues and commission adjustments.

Don't be a Zobo (Zombie Business Owner) if you intend to move on to another direct sales company. Open your eyes and keep one foot near the door. Or, just get out of the mess by joining ScrapBiz and starting a business that no one can take away from you. I could close tomorrow and no one would lose their business.

Territorialism

I was watching the Celebrity Apprentice last night with Mark. The two teams had to set up an art gallery and sell art. The team who sold the most, won the competition. One team had the front part of the gallery, the other had the back room. The back room team (who WON) had to work extra hard to get patrons to come back to their room - especially since Omarosa, the Apprentice-wanna-be that everyone loves to hate - was standing in front of the door with her arm out directing people into their room and preventing them from going into the other one.

At one point, Carol Alt essentially stole a big-money contact from the other team and closed a sale. That set off some wailing and gnashing of teeth at the end. Hey, this guy didn't buy anything from his contact. Their choice of art may not have been his "thing".

That got me thinking about the collaboration and territorialism that sometimes happens in our industry. I put it only in the context of The Apprentice to start the conversation. We certainly aren't in a cut-throat "reality" TV competition with other businesses around us. But, we ARE in business to sell products.

I have heard at times about different consultants from different direct sales companies coming together to hold events. I think it's likely to happen on National Scrapbook Day more than any other time as scrapbook and stamp companies all look for a way to celebrate. I have also heard at times, that although in THEORY everyone possesses the understanding that a customer is a customer that day, that occasionally, some consultants pop corks when they see their customers buying products from other consultants. I have also heard torrid tales of consultants from the same company laying hold of the same customer and essentially "duking" it out over that person.

That is so ridiculous and does nothing but make the consultants involved look bad.

First of all, customers have a right to buy from anyone they choose. If I buy a punch from you at an event, I probably don't consider you "my consultant" the way you consider me your customer. I might buy another punch from a different consultant 2 months later and that's my right. Now, if you win my loyalty through other means, then I'll probably bring my business back to you. Otherwise, you're no different to me (as a customer) than any other consultant.

Secondly, if you believe your customers should be (and can be) shielded from other businesses, then don't selfishly participate in group activities and think your customers will put on their blinders and only buy from you. And, don't get mad at the other businesses for selling to them. Again, customers have a right to buy from anyone they choose to. What you're really saying is that you don't like to acknowledge that your customers are buying from other people. It's hard for you to watch. But remember, the "customers" of the other business owners there are probably dropping some dollars with you, also. It goes both ways.

Third, don't expect to pack up your customer list at the end of the day and take it all home again. Some consultants get upset when other business owners at these events contact "their" customers. If someone buys something from me, they become MY customer also. At that point, I have every right to market to them and try to get them to buy more. Again, if you don't like that idea, don't sign up to go. And, remember also that you have a bunch of new customers in your files, too.

I think for far too long, retailers of all sorts in this industry have had the misguided idea that they should be the ONLY retailer a customer buys from. Therefore, collaboration has been largely absent in the industry. There might be 50 consultants from the same company in a 5 mile radius or 3 LSS's, but instead of coming together to be the rising tide that could lift all boats, they spend too much time infiltrating and tattling on each other.

I love the idea of group events and shop-hops. Let shine what makes your business unique and be confident enough in your own uniqueness so as to not feel threatened by competition! Embrace the fact that you are different. Even if you are a consultant and carry the same lines as 20 other women in your area, you can still make your business unique. The "IT" factor is YOU! Your customers become loyal to you not only because of what you carry, but because of the service you provide.

Collaboration is really what ScrapBiz is all about. Each business owner has their own "Secret Sauce", but overall, we freely talk about ideas that can help everyone. I love that part best about ScrapBiz! All opinions are recognized and welcomed. And, even if there is not agreement, there is no smacking.

What Really Scares Me

Last year it was Rosie "Scrapping" on The View. This year it's...

Zombie Business Owners! (ZoBO's)

You know the kind - they put up with ANYTHING from vendors, from customers or from their direct sales company. Basically, they close their eyes and forge ahead not thinking about what's happening around them. Many of them don't even know if they are making money. They just stumble ahead as the business un-dead.

ScrapBiz was started because I refused to be a ZoBO. When the direct sales company I was with decided to essentially shut down customer service because, "we are getting too many calls" (because they didn't have anything in stock for weeks and weeks and weeks and weeks) I left before I could be Zombied. They closed down the phones so no one could get hold of them except via email (which is really easy to ignore). Then, they moved their entire company (the 5 things left in the warehouse) to another state. All the while, they told the ZoBO's, "happy thoughts", "stay positive", "don't speak unkindly about our wonderful company", "don't discourage others!" (and "here, drink some more Kool-Aid..."). You simply were NOT allowed to complain or even ask questions about their actions. If you asked any questions (like, "Hey, when are the catalogs I ordered 6 months ago going to ship?") on their Yahoo Group, others would jump all over you for being "negative". You were expected to sit tight and be "happy-happy" while they screwed up your business. Meanwhile, my customers, who were NOT Zombies, found other places to buy scrapbook products. So, I ran from the pack of ZoBO's like Jamie Lee Curtis in a Horror Flick.

Why SHOULDN'T you question the actions of a company that messes up? I don't get it. If I'm working with a distributor or other wholesaler and they do something like, oh, send my order of Halloween stuff in mid-November, should I thank them and say, "Hey, it's MY fault. I should have ordered this in January, not August. Shame on me for getting upset about how over-worked you are right now. You're a great company and I love you!" Heck no! I should resolve to NOT order from them again and find an alternative. I probably just lost sales and certainly got stuck with Halloween stuff at Thanksgiving. Fat lot of good that will do me. I will not stay silent, nor would a good company expect me too. Nor would they say, "Don't contact us about our screw-up because it will make us feel bad. Oh, and don't tell anyone else we screwed up because it might make THEM feel bad. Let's just keep this between ourselves..."

Every company trips in the customer service department from time to time. But, the trick is to keep yourself in a position that if they trip too many times or the trip seems to be "odd" (such as not wanting to talk to people and handle problems), then perhaps you need to think about what it really means. And, if it makes you too uncomfortable, perhaps you need to find a similar supplier or another company to work with. The key is to not let yourself be Zombied! Keep your independence and don't join the pack of the un-dead business owners who wander around unable to make their own decisions about what's best for their business. You don't have the power over your customers to get them to wait - they will find a REAL LIVE business to do business with.

By the way, if you are already a scrapbook business owner, ScrapBiz has an option for you! You can join us and take advantage of our wonderful support program. We aren't ZoBO's - we talk about the good, the bad and the ugly of running a business in the Scrapbook industry. Everyone's opinion is respected and we talk - a lot - about running the business that suits YOU! Click HERE for information and to see if you qualify.

Scrap Your Script!

Let me be the first to say that Direct Sales companies are a great option for some people in the scrapbook industry - either for a personal discount or a bit of pocket money or just to sell an exclusive product that you like. Sometimes, though, business training is limited and things that don't work or make people uncomfortable are presented as THE THING that will really bring 'em in.

Sales scripts are one of those things. Okay, I’ll just say it, scripts are cheesy. They shouldn’t be used - come up with your own way to announce your business to the world. But don't patronize or treat your friends, family, or the lady at the grocery store like they are too dim to see through your "spiel". Most people know what's going on when you start reciting it and the rest catch on about half-way through and wish the ground would open up and swallow them mid-sentence.

Years ago I was walking from my car into my church and I was stopped by another lady from our church. She was a wonderful lady with 6 or 7 kids and the family was DIRT POOR. She was trying to help their family by selling water purification systems or something like that. I said, “Hi Shelly, how’s it going?” She said, “Do you like to drink clean water?” Red flags started flashing before my eyes and alarms started ringing in my head, "DANGER! DANGER! DANGER!". How do you answer that knowing what is likely to come next? The cheeky part of me wanted to say, “No, actually. I like to take my chances and strain the floaties with my teeth.” But, I took a deep breath and tried not to sigh (too obviously) and said, “Yes.”

She, wrongly assuming I had just fallen into her oh-so-smart trap, launched into “THE SCRIPT”. She recited it pretty much word for word I assume because it sounded like it was straight from the can. All I heard was a voice like the mom from the Peanuts cartoon, “Wah, wah, wah, wah”. Luckily I had to go to a meeting so I was able to duck out of the whole ugly scene without committing to buy a water purification system and 50 years worth of filters for a low price of… ooops, I didn’t get that far. I avoided that nice woman like the PLAGUE until someone said, "Oh, Shelly's not doing that anymore".

It’s so cheesy to walk up to someone and say, “Hey, I just started the most exciting business in the world. Yes, it’s SO EXCITING that I just had to share it with someone today. And you are SO LUCKY that it‘s YOU I’m going to share with”. Or hand someone a brochure and say, “Would you like to make some extra scrapping money?” Most people with a clue will immediately spring into action to erect their “wall” between you and if you’re friends, they will likely approach you cautiously for the rest of your lives. It's as stupid as Target getting to the part where they actually process your credit card and they say, "Would you like to save 10% off your purchase today?" I hate that loaded question. I always say, "Yes, if it doesn't involve me signing up for a credit card." It's so tacky.

Yet, those are the types of scripts handed out by direct sales companies of all types. Scripts don't teach people how to NATURALLY introduce their businesses to others in more appropriate ways than hunting them down in the parking lot and asking loaded questions for which there is ONLY one answer and using that as a clue to attack them like some rabid monkey.

People are much more responsive when they discover your business on their own through chatting with you or stumbling on your website via a link in your email signature or seeing your car sign or key chain. Those things aren't threatening to them. Then they can ask questions on THEIR terms and not have YOUR TERMS rammed down their throats.

So, set those scripts aside. They don’t work and no one wants to hear them or be assaulted by your business. Building a business takes time and people will be much more likely to buy from you (and maybe eventually even sign up under you) when you are relaxed and natural about your biz.

Heritage Makers Software finally released!

Finally - Heritage Makers went live with their Studio 2.0 software! I gotta get in there and get my Christmas books finished! The release was a bit later than planned, but they wanted to make sure it was working well.

And, now, you can get a free Basic account (it was previously $9.95 to set it up). It doesn't get you the Studio 2.0 content with the drag and drop software and the $2000+ of Scrap Girls stuff, but it will give you access to their Classic software - a very simple storybook-type layout where you plop your photos onto page templates and write your story. You can upgrade to the Studio Premier Subscription ($19.95/month) later. Click HERE to set up your free Basic account.

Congratulations to Heritage Makers on this very cool software upgrade!

Be the Type of Customer You Would Want To Have

Six or so years ago when I started my business in the scrapbook industry, I had an unbelievable experience at a workshop I was teaching. It was at my friend's house - about 70 miles one way from me. So, I had to drive quite a ways to teach this class.

She had invited several scrapping friends, one of them being the former owner of the recently closed LSS. When we got done with our project and the catalog shopping had begun, she went through the catalog and kept saying, "Oh, I still have some of these I can sell you". Finally, she just said, "Let's go to my house after this is over and you can shop my basement. I still have all my inventory down there and I'll sell it to you at cost."

I was shocked out of my mind that someone would be so incredibly rude and thoughtless. What do you think that woman would have done if I had sat in one of her classes and sold my products to HER customers???

Are you a good customer or a bad customer? Yes, there is always someplace cheaper to buy something and there is always a 40% off coupon from somewhere. But, would you honestly be rude enough to sit at a crop that someone spent a lot of time and money setting up and think that you didn't owe them some courtesy for that?

Me personally, I believe that when I accept an invitation to a direct sales party, that I am agreeing to help the hostess out by purchasing something. I also feel (having been a direct sales consultant) that I owe a courtesy to the consultant too. She doesn't get paid unless people make purchases. So, I don't think I should expect her to work for free that night. I intend to pull my own weight, so to speak, and buy something from her - even if it's just some lip gloss or a pen.

As a consultant, I attended several crops and classes at my LSS. I would have never, in a thousand years, mentioned my business or passed around my catalog there. At one LSS, I had my Xyron X and everyone wanted one. The store didn't carry them and the store owner (who was in the class) had never heard of them. I was tempted for about 2 seconds to offer to sell everyone in class one since I carried them. But, it would have been inappropriate for me to do that since those people were gathered there for the benefit of that LSS, not me.

So, next time you attend a crop or class at the LSS, stop and think about the time and money the store owner or crop hostess has invested in the event. It's not a community center or non-profit event, it was put together by someone as part of their FOR PROFIT business. I think it's very rude to complain about prices or discourage others from making purchases during the event. And, it's unimaginable for you to bring your catalogs and pass them around. Put yourself in their place (a skill everyone should learn to do) and consider how YOU would feel if the shoe was in the other foot and it was YOUR event. No matter how you slice it, you would be VERY ANNOYED at that type of behavior.

Get a Shovel...

It's getting pretty deep in here. I need to move some manure!

Angie Pedersen says that I'm a "calls-em-like-I-sees-em" gal. That's flattering! Somebody needs to point out when a shovel is called for and I need a big one!

Click on this link and then click on the patterned paper. Ummm, for a company who will send their lawyers after every poor ex-consultant allegedly violating a contract they signed 10 years ago, that's a mighty big unsubstantiated and unprovable claim.

I was scrapping LOOOONG before they arrived on the scene. And, the owner of Keeping Memories Alive actually started talking about her OWN scrapbooks at the World Conference on Records in 1980!!!! She was selling scrapbook products out of the family store in Utah. Creative Memories was not founded until 1987 under a different name and really didn't start their consultant program until the early 90's. So, I'm blowing the whistle and calling for my shovel... that's pure baloney and they know it. Shame on them for making such a flimsy claim. Next up - the claim that they invented Digital Scrapping...

Scrapbooking is actually a very old activity (my mom was doing it with magazine cut-outs and photos in the 1960's!) and modern day scrapbooking started in the early 1980s - and it wasn't by them.

Hey, if they can get away with it, then maybe I can too. Here's my new tagline: ScrapBiz - we INVENTED home-based scrapbook business". Ummm, nope, I just can't do that with a straight face...

Dare to Compare

In the next few weeks, another direct sales company will officially launch on the heels of the demise of Leaving Prints (and with some of the same faces from LP). If you're looking around for something to join, why not consider your OWN business rather than diving into a company that might or might not be a fit for you?

Check out our comparison of ScrapBiz to a Direct Sales Company. You may find that independence is more "your style".

Click HERE to find out more!

Scrapbook Fashionistas

We had an interesting and enlightening conversation at ScrapBiz recently and some very valid points were made. We were talking about all the "latest and greatest" products out there and what was selling for members. A few "themes" emerged from CHA last week - Black and white papers with bold graphics, paper with BIRDS on it and then "skull and crossbones" grunge for boys. Those are the new "trends" in scrapbooking.

Okay, great. But, I can't think of a single photo I have that will look good with BIRDS. I don't now, nor have I EVER owned a bird. And, the grunge look is not going to fly at our house, either. The Scrapbook Fashionistas out there are thinking, "Who cares if it matches - it's POPULAR!" Okay, have you SEEN a photo of Mary-Kate Olsen lately? Just because it's popular, doesn't mean it looks good. How many girls are wearing ripped tights and looking for those shoes right now? Probably quite a few. But, how many of us think she looks ridiculous? Most of us.

The Scrapbook Fashionistas in this industry have LOUD voices. Yet, they are the vocal MINORITY. Our conversation at ScrapBiz - with actual retailers - shows that the "latest and greatest" is sometimes hard to GIVE away. It sounds shocking, doesn't it? But, the trendy stuff doesn't go with the activities most of us have photos of. My 9 year old's Pinewood Derby photos would look stupid on black and white. I need Cub Scout paper for that. And, you know that popcorn paper that you Fashionistas laugh at in the scrapbook store? I've used it - RECENTLY. One of my sons had a school concert in 1st Grade called "Popcorn Tonight". Those photos would have looked ridiculous on bird paper but the popcorn paper, that you would think should be banned from scrapping, was perfect.

Most of us are not scrapping GIANT photos with philosophical introspective comments that say nothing about the "back story" of the photo. Those are the magazine layouts, but not the layouts of MOST scrappers. Unfortunately, those layouts will paralyze some scrappers into inactivity. They think that they are the ONLY people in the world still using their punches and deco scissors. Guess what? They aren't!

Now, this brings up a business point. I have people who join ScrapBiz and immediately want to get the NEWEST stuff possible. They are "Fashionistas" and want to sell only the new stuff. But, they quickly find out that their customers aren't interested in that stuff. Or, if they are, it's only a small number of their customers. The goal in business is to figure out the 20% of products that make up 80% of your sales. Then, stock your business with those products. Limit the amount of trendy stuff you have because your customers aren't neccessarily looking for it. That's a challenge for some of the scrapbook direct sales companies. They sing the praises of carrying the latest and greatest, yet, is it actually a negative rather than a positive? It might have been the "hook" for the consultant to sign up, but if you're in, say, Kentucky, how many scrappers there CARE about the trendy stuff? Not many. Yet, you're stuck selling ONLY the trendy stuff and often, wondering why you can't get anyone to buy anything from you.

The fact of the matter is that real scrappers scrap very differently than what you see in the magazines and what you see on some message boards. I have lots of scrapping friends who don't know what CHA is, nor do they even know when CKC comes to town. Many of them use the cheap, non-textured cardstock they can get at Michaels. They wouldn't know Bazzill from Chipboard. They just scrap the events and themes of their lives with the products that coordinate. And, in case the Fashionistas have forgotten, in 25 years, when your Grandchildren are going through your albums, they will not know, nor will they care, that you were using the trendy stuff. My Hash Jeans with the star on the back pocket might have been cool and expensive in the 7th Grade, but now, they are just old jeans. No one would be impressed or care.

Apples to Apples: ScrapBiz and Direct Sales Companies

The challenge with helping people understand ScrapBiz is that most people are trying to compare it to a direct sales organization that they are probably also looking at and can't quite wrap their minds around the differences between ScrapBiz and a DS company.

Let me try to put it in the simplest of terms to make it as close to "apples to apples" as I can get it. It should be noted that ScrapBiz is NOT for hobbyist but for those truly wanting to start a retail business. It is illegal to buy wholesale for personal use (although it's okay to sell yourself items at times as long as it's done according to the law).

• You join ScrapBiz
• You get your business license
• you set up an account with Distributor A, Distributor B or Distributor C to order products
• you add smaller companies with low or zero minimums as desired
• you order AT WILL (when you need products) - there are no quarterly quotas. That means you can have slow months and not have to buy products to keep your account open.
• You make 40-50% or more on everything you sell assuming you sell it at the full retail price

Verses a Direct Sales Company

• You join the DS company
• You may or may not be required to have a business license
• You place orders ONLY with the Direct Sales company
• You must order a minimum amount per quarter to keep your business
• You make 20-30% on your personal sales

Now, let's compare the three MAIN distributors that ScrapBiz has relationships with vs your direct sales company. Let's think of a direct sales company as merely a distributor to make this as clear as possible. A distributor carries THOUSANDS of scrapbook products from many different lines (whereas the Direct sales Company will only carry dozens of products). You can get everything from Bazzill to Basic Grey from a distributor. However, each distributor may carry slightly different lines so you need to (like selecting a direct sales company) select the one that carries the most desireable stuff for your business.

Placing orders:

• Distributor A: They require a $75 minimum order each time you order. You CAN order less, however, you will pay a small $5 charge for the convenience. And, Dist. A offers ScrapBiz members and additional discount off their cardstock, card and envelope line. Depending on where you are located with relation to them, you can get shipping discounts or free shipping with a larger minimum order.
• Distributor B: They have a $100 minimum opening order with a $50 minimum reorder. Their discount is often based on volume. The more you buy of a product, the larger the discount. Their smallest discount is about 40% off of retail. They don't offer any shipping discounts and have less variety than the other two.
• Distributor C: They require a $250 minimum opening order but have no minimum on subsequent orders. They require a deposit for your account but you will get it back if you spend $1200 with them within 365 days of your first order. Believe me, that's not hard to do! That's only $100 each month on average. If you aren't doing at least that, you aren't really serious about your business! They offer free shipping once your order reaches $150. Their product offereings will blow your mind and they continually add the latest and greatest.

Think of these three distributors as three different direct sales companies that you get to chose from. The great part (and something you DON'T get with a direct sales company) is that if you want to switch who you are ordering from, you are free to do so. You can even set up accounts with all three if you want to. You will have THREE LARGE distributors to choose products from. Not to mention all the smaller companies we have relationships with. The hardest thing members face is choosing! Many of them overbuy in their excitement.

Along with your choice of who you want to order from, you also get unbelievable support and the experience of some of the best business owners in the scrapbook world. If you want to start vending at shows, we have a member who does the CK circuit every year and will be happy to offer you tips. If you want to start a kit club, we have several members successfully running them already who will offer you advice. If you want to start teaching, we have members who will help you out with that. If you need a website, we have a web mistress who can offer you a fantastic website at a great price. Anything you want for your business can be found at ScrapBiz. It's like being able to customize your new home to your specifications rather than buying the "standard" model.

Hopefully this gives you something you can wrap your mind around. Because we are the ONLY group in this industry doing this kind of thing, we can be hard to understand. I hope I was able to clear up some things for you.

Posts from the Past...

In light of the direct sales company turmoil, I decided to search my blog to see what I have said in the past about direct sales in this industry. Click HERE to read my entries. I've had quite a lot to say and some of it is timely for the situation at hand.

There are some great companies out there who treat their consultants fairly, but, there are also some who just blow hot air at their consultants with promises. I think you need to EDUCATE yourself about what to watch for (yellow and red flags) so that you can do what's best for YOU should you start getting some of those flags thrown at you.

I did what was best for me and my customers and that's how ScrapBiz was started. I stopped believing the emails early on in the crisis and it was the best thing I ever did.