The Paperly Story: Fall/Winter 2012-13 catalog

Paperly is preparing to release its Fall/Winter 2012-13 catalog. I am so excited! As part of that release, I have the honor and privilege of expressing my thoughts on the inside cover. I am especially proud of this catalog's theme because I believe it's time for Paperly to take its rightful place as a leader in the direct selling industry. After reading this catalog's preamble (see below), I welcome your feedback.

Regards,

Jay Rudman, CEO, Paperly

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Direct selling, which is the idea of independent Consultants sharing their passion for products via fun, at-home parties, has been a successful business model for generations. The Rockwellian image of "The Tupperware Party" evokes a strongly positive memory for most of us. While Paperly plans to follow a similar model of the past, we plan to lead the industry towards an exciting future.

Paperly’s products – personalized stationery & gifts – perfectly combines the consultative nature of at-home parties and today’s advanced technology to produce one-of-a-kind products exactly to the customer’s specifications within days of the order. Wow! Custom products delivered within days was unheard of before Paperly began, and now we’re doing it daily.

We started Paperly to enable those who love personalized products the opportunity to start a rewarding business. We also wanted to remind people that the personal note is alive and well. We remain true to these initial objectives, but now, we plan to change the world of direct selling. We invite you to join us. We’re confident you’ll enjoy the journey.

The First Party Plan Business

Quick... name the first party plan business? If you said "Tupperware", think again!

Actually, the very first company to systematize the idea of showcasing products at a Hostess's home to a group of guests (at that time it was typically housewives) was... Fuller Brush Company.

It began during the Great Depression, when a salesman named Norman Squires realized the inefficiency of door-to-door sales, and thus in 1935, he developed his hostess home party plan. Squires continued to perfect the at-home party until 1950, when Earl Tupper, inventor of Tupperware, made Squires general sales manager of Tupper Corporation's Hostess Division. And as they say, the rest is history.

Learn more by watching this video put together by the Direct Selling Association (www.DSA.org) as part of its "Centennial Moments" series.

Perhaps one day history will report favorably on Paperly's incredible success?

Regards,

Jay Rudman, CEO * Co-Owner, Paperly

Comparing Commissions

The feedback from Consultants regarding Paperly's new Commission & Career Plan, which is still relatively new (we just launched it on 09/01/10), has been overwhelmingly positive. And yet, I still occasionally hear from folks interested in joining Paperly, "Why are Paperly’s commissions limited to 26% when I see other direct selling companies offering 30, 40 even 50%?" Nothing could be farther from the truth!

1. Paperly's average party size in 2010 neared $450. I believe the industry average is closer to $350. Clearly, larger parties means larger commissions, so be sure to ask other companies what their average part size is.
2. Paperly’s Consultants do not need to carry inventory. Instead, Paperly's products are personalized and drop-shipped. No inventory means no additional investment beyond the Starter Kit. This is not true for most other companies. They need to offer a higher commission rate, because their Consultants need to re-invest in additional samples and inventory. Therefore, do not looking solely at raw commissions. Instead, you need to calculate your "return on investment" – i.e. how much you make versus how much you spend.
3. Paperly’s 26% is merely its base rate. Many of Paperly's Consultants earn substantial bonuses (up to 12%) by hitting achievable personal sales targets. Also, the 26% does not count the additional commissions a Consultant can earn: e.g. downline commissions (up to 6%) and team/generation bonuses (up to 8%).
4. Lastly, when I helped build Paperly's commission plan, I was adamant that a Consultant could be successful via (i) personal sales, (ii) building a team or (iii) both. I talk to Consultants every day and I know each ticks differently: some like to sell, some like to recruit… and that’s perfectly okay with Paperly. Please be wary of any direct selling company that requires you to recruit as the only way to be successful.

All that said, I think Paperly’s Plan is VERY competitive. Don't be blinded by looking solely at base rates, because so many other factors go into your final payout. Truly, the best advice I can offer when you’re trying to compare commission plans is: Find a company and product that you absolutely love, share your passion with everyone you know, and you’ll likely be very successful.

Happy Holidays,

Jay Rudman, CEO * Co-Owner, Paperly

Give Yourself a Gift

What gift are you most excited about this Christmas? Jewelry? Clothes? Something else your heart fancies?

Although jewelry and clothes are wonderful and appreciated, wouldn't you truly want (and deserve) a gift that:

• Provides the potential for unlimited financial gains
• Realizes a lifelong dream to be your own boss
• Enables you to have tap into your fun, creative self

Doesn't that sound like the perfect gift?

All too often, we're so eager to spend hundreds of dollars on others, but once that money is spent, and that gift is consumed, it's gone forever. That's the difference between spending and investing. Spending does not reap future rewards; investing does.

Just last week, I received a note from a potential Paperly Consultant who said, "I want to join Paperly, but I have to wait until after Christmas, because I've already overspent my budget." I bit my tongue and replied, "Great – Can’t wait!" In truth, I really wanted to say, "All the more reason to join Paperly now! Invest in your future; earn back what you've spent; start making money rather than simply spending it!"

Of course, I appreciate that 'tis the season to give. I agree – give to the homeless, the jobless, and the parentless (among others). But also give to yourself and your future. Invest in your future, and come next Christmas, you may never overspend your budget again.

Happy holidays,

Jay Rudman, CEO * Co-Owner, Paperly

Actually, It’s a Great Time

Over the past few days, I’ve heard from a few potential Consultants that they’re concerned they've "missed Paperly’s holiday selling season", so why should they join now?

Actually, it’s a great time to join Paperly!

Why? Well, to be honest, there's probably never a perfect time to join, right? You’re too busy at work, you’re traveling too much, your kids have been sick, etc. Given that there’s always something going on in your life, and without sounding overly flippant about an important decision, but why not now?

Furthermore:

1. January is typically a big month at Paperly, because customers need lots and lots of thank you notes. So if you join Paperly now, you can spend December selling last-minute holiday items as well as getting up-to-speed for a big January.

2. Although it has yet to be officially announced, Paperly plans its first-ever incentive trip in 2011, with the qualification period starting on 01/01/11. So if you join Paperly now, you’re able to accumulate points from the beginning of the contest.

3. Even though Christmas will come and go all-too-fast, it’s quickly followed by Valentine’s Day, Mother’s Day, graduation, confirmation and Father’s Day, among a handful of other occasions along the way.

Basically, there’s always a reason and need for personalized stationery. Wouldn’t it be nice if you started off the New Year with a new career – something you’re passionate about? If so, then now is the perfect time for Paperly!

Regards,

Jay Rudman, CEO * Co-Owner, Paperly

All the Pieces are in Place

Time for full disclosure…  Although we know stationery (we’ve been in the industry for 10+ years), we’re still learning a lot about direct selling.

In 2007, we launched Paperly by crisscrossing the United States, conducting a half dozen test parties.  In 2008, we invited 6 Consultants – yes, only 6 – to join Paperly.  We purposely kept the community small to ensure we could deliver quality products in a timely manner at a reasonable cost before we announced Paperly to the world.   In 2009, we invested significantly to enable Paperly to grow unhindered.  For example, we spent months customizing a world-class Web solution to enable Consultants to place orders online, manage their back office virtually and post online shopping events.  See www.MyPaperly.com/paperly for a demo.

Now, it’s 2010 and we are not slowing down a bit:

• We’ve introduced a new Starter Kit option, priced at only $99, to allow new Consultants the opportunity to quick-start their business with minimal investment. (http://www.paperly.com/kit.asp)
• We’ve introduced a new Commission & Career Plan so we can return every last penny possible back to the Consultants.  For example, the maximum commission on personal sales volume has increased from 25% to 38%!
• We’re fervently working on 2 new catalogs (Everyday Collections 2010-11 and Holiday 2010), plus a Future Leaders program - both to be released soon!

I share all of this, because honestly, all the pieces are now in place for Paperly’s Consultants to be wildly successful.

I just did a quick analysis and discovered that in 2009, 62% of Paperly’s sales occurred from September thru December!  That means, if you're already a Consultant, it’s time to fill your calendar through the end of 2010.  However, if you're not yet a Paperly Consultant, there may be no better time to join than now.

I’m proud of the progress Paperly has made.  Now that all the pieces are in place, the future is truly limitless.

Regards,

Jay Rudman, CEO * Co-Owner, Paperly

The Most Common Gripe

Unlike any other industry I’ve ever been a part of, the direct selling industry is extremely open.  For example, in most industries, if you walked up to Competitor XYZ and asked, “How do you reward your consultants?” the question would be met with stunned silence.  Oppositely, in direct selling, the competitors share.  That same company would say, “Our rewards include A, B and C.  How about your company?”  And I would gladly share Paperly’s program (within reason, of course).

Over time, I have concluded that such openness is caused by, what I’ll affectionately call, “The My Sister-in-Law Can Find Out Syndrome”.  I’ve named it after my sister-in-law, because she’s the one that can call Competitor XYZ and say, “Hello, I’m interested in becoming a consultant for your company.  Can you tell me how you reward your consultants?”  Voila!  It’s that easy!  And because it’s so easy, direct selling companies do not try to hide much.

So where am I headed with all of this?  Well, I’ve spent a decent amount of time talking to other direct sellers – not just folks at headquarters, but consultants in the field.  The consultants, in particular, are amazing!  They are truly passionate about the products they sell, and they have so many incredible ideas as to how to grow their respective businesses.

Yet, the one gripe I’ve heard most consistently – regardless if the consultant is selling jewelry, cosmetics or kitchen products – is:

“I wish I had gotten involved from the beginning!”

All these consultants appreciate the growth, the income and the prestige tied to being one of the first.  They’re often frustrated by the oversaturation in their community.  In short, they wish they had started before all their neighbors were consultants too.

And that’s the point of this entry!  Paperly is climbing the hill towards what I hope to be amazing success.  Therefore, if you truly are passionate about Paperly’s products, then I implore you to join Paperly sooner than later.  I’d hate to meet you 10 years from now and hear you say, “I wish I had joined

Paperly when I first heard about it!”

Regards,

Jay Rudman, CEO * Co-Owner, Paperly

Money matters, but it’s not the only thing

To date, the #1 reason Consultants have joined Paperly is because they love our products.  The #2 reason is that they’re looking for a fun, stay-at-home business that isn’t overly saturated in their area.  Not until you get to #3 does the word “income” or “money” start to appear.

As Paperly’s co-owner, I’m VERY pleased to know that folks are joining Paperly for the right reasons!  After all, if my Consultants are not passionate about our products, then their “selling” of Paperly’s stationery is essentially a farce, and ultimately, that Consultant will fail.

That said, even though money is #3 on the list, it does matter.  As Paperly’s CEO, I need to ensure Consultants see the rewards of their efforts… and fast.  Thus, Paperly has begun the complex task of reviewing its compensation plan.  To me, Paperly’s comp plan needs to achieve the following 3 objectives:

1. Enable the “Seller” to succeed

Not every Paperly Consultant wants to recruit or manage a team.  Many simply enjoy selling Paperly’s products.  As such, I need to help these Consultants earn a very competitive commission on their personal sales, plus reward them with significant bonuses when they exceed reasonable targets.

2. Let the “Leaders” thrive

Some Consultants want to share their passion for Paperly with others.  They relish sponsoring others.  They love the challenge of building, managing and leading a team.  As such, I want these Consultants to earn a commission on the success of their direct recruits, their recruits’ recruits, and so on.  To me, a team leader spends a significant portion of her time cultivating her team, and therefore, needs to be rewarded when her team succeeds.

3. Provide plenty of “Known Surprises”

What’s a “known surprise”?  Imagine joining Paperly, reviewing the comp plan, and seeing that one day, you may earn a $100 bonus when X or Y occurs.  Sure, you know that bonus exists, but you forget about it, because you’re too busy falling in love with your Starter Kit and booking parties.  Then, a month or two pass, and you see in your commission check an extra $100 because you achieved X or Y.  Wow!  What a wonderful surprise, even though you knew it existed.  To me, a Consultant needs a constant shot of such surprises – often known but forgotten – that makes her smile and say, “yahoo!”

All 3 of these objectives will underlie Paperly’s future comp plan.  We’re confident it’ll enable Paperly to continue its torrid growth.  Personally, I can’t wait to start writing bigger and bigger commission checks to my Consultants.

Regards,

Jay Rudman, CEO * Co-Owner, Paperly