Looking Forward to 2012

Wow, 2011 was another outstanding year for Paperly - thanks to an amazing team of employees, Consultants, Hostesses and customers.  I truly appreciate everything you do for Paperly.

A few qualitatively highlights of 2011 include:

• Dozens and dozens of new, personalized products including coasters, bag tags, design kits, dry erase boards, note cubes, tri-fold photo cards, picture frames and water bottles.
• A new preview technology.  (Feel free to test a sample of our preview capabilities.)
• Graduating our first 2 classes from Paperly's Future Leaders Program.
• Conducting our inaugural President's Council in Chicago in June.
• Significantly enhancing Paperly's marketing efforts, including launching Paperly's Marketing Portal, creating a Paperly YouTube channel and being recognized by the Direct Selling Association for ethical business practices.

Quantitatively, Paperly had another blockbuster year in 2011, including:

• 142% jump in new Consultants. Paperly now has 170+ Consultants located in 34 states coast-to-coast.
• 47% increase in commissionable sales. We love bigger and bigger payouts to our Consultants!
• ~$440 in average commissionable sales per Paperly party.

However, Paperly is NOT resting on our laurels.  We know we have a TON of additional work to do to become the world-class organization we're aiming to be.  Our 2012 initiatives can be broken down into 5 key categories: team building, Starter Kit, Fast Start program, marketing & promotion, and training & development.  I plan to discuss each of these initiatives in my next blog post.

Until then, thank you again for the successes of 2011, and I wish you and yours a happy, healthy holiday season.

Regards,

Jay Rudman, CEO, Paperly

Of Course Money is Important!

As Paperly's CEO, I talk to a lot of potential Consultants and I have found the top 2 reasons they are most interested in Paperly are:

1. They are passionate about the product.  Most say, they love personalized paper and gift products and think Paperly's exclusive designs are gorgeous.
2. They want to be the first in their community to offer Paperly. Although we've been in the stationery industry for 11 years, Paperly is relatively new to direct selling. Fortunately, our growth has been strong & steady; we already have ~175 Consultants located in 34 states coast-to-coast. Clearly, many communities remain completely untapped, and potential Consultants love knowing they can be first.

Interestingly, very few ever ask about the money. Perhaps they're embarrassed to ask the CEO about money?  Or perhaps it's because money truly is a distant third in the above list? Regardless, I know money is important, and therefore, I wanted to elaborate on Paperly's Commission & Career Plan.

Selling, Recruiting or Both

Paperly's comp plan was built over 9 laborious months and leaned heavily on a third-party expert with over 20 years experience in direct sales/comp plans. Even though he was the expert, I was adamant that Paperly reward Consultants who were successful at selling or recruiting or both (the latter, not surprisingly, offers the biggest payout). So unlike many other direct selling companies, you can join Paperly and do well financially solely by selling products you love - you don't have to recruit. Philosophically, that was important to me. 

Incentive Laden

Also important to me is that Consultants earn lavishly for achieving success. True, Paperly's commission starts at 20% (which already is very competitive), but Consultants can quickly earn much more: a personal sales bonus up to 12%, downline commissions of 3-6% and team/generational bonuses of 2-8%.  It certainly can add-up quickly.

No Resting on Laurels

Paperly requires its leaders to stay active by selling at least $200 per month, which by all accounts is a ridiculously low threshold for a business leader. Why this active requirement? Because I do not want a Consultant to build a big team, retire, and then earn significant commissions from her downline while resting on the sidelines. You must sell - albeit a minimal amount - to stay current. That said, you always earn commissions on your personal sales... no worries in that regard!

No Inventory 

Unlike a number of other direct selling companies, Paperly does not require you to purchase inventory.  If you do the math, purchasing inventory can significantly dent your commissions, especially since you're locking-up money by pre-purchasing products you're uncertain will sell and at what price.  All of Paperly’s products are personalized, and therefore, there is no inventory required.

Cash Bonuses & Paperly Dollars

Lastly, Paperly offers cash bonuses of $50 - $1,000 when certain Titles are maintained for 3 consecutive months.  Paperly also offers Paperly Dollars - which can be used to purchase additional business supplies - when certain personal and team sales are achieved. Again, both cash bonuses and Paperly Dollars align with my desire to make Paperly's plan heavily incentive laden.

Whew - that's a lot of information to digest. Please, if you have additional questions about Paperly's comp plan, ask me.  I'm happy to help.

In closing, I readily admit that (1) passion for product and (2) first-mover advantage should be why you join Paperly, but money matters and I am proud to say that I think our Commission & Career Plan enables you to be wildly successful at Paperly.

Regards,

Jay Rudman, CEO, Paperly

Paperly is Different... and Better!

On occasion, I hear from potential Consultants, "I'm considering a few companies. What makes Paperly different?" Fortunately, the answer is easy.

While there are many direct sellers that focus on everything from bags to jewelry, Paperly is the leading direct seller of personalized stationery. Being the leader means having the widest assortment of products, the best-in-class technology, a lucrative commission & career plan, a supportive training process and exceptionally strong marketing materials (e.g. catalogs, loose samples, etc.).

Further validating Paperly’s #1 standing is its membership in the exclusive Direct Selling Association (DSA.org). As DSA’s President, Neil Offen, has said, "The members of the Direct Selling Association pride themselves in their commitment to the highest standards in business ethics." No other direct seller that focuses exclusively on personalized stationery can make that claim.

Additionally, and this point should not be underestimated, Paperly’s designs are exclusive. Without exclusive designs, there are few compelling reasons to purchase products from you versus elsewhere. Paperly’s exclusive designs also enable it to keep its retail price as low as possible, since it does not need to pass along licensing fees or royalties.

Lastly, Paperly drop-ships personalized orders directly to customers. Therefore, Consultants do not need to hold inventory. That’s a big deal! Inventory is YOUR money tied-up in unsold products. That’s why some companies need to pay an outlandish commission. Basically, they’re trading the promise of a high, yet uncertain commission for your upfront purchase of inventory. Personally, that’s not a deal I’d want to make as a distributor.

All that said, there truly is no comparison. If you want to be a part of the leading direct seller of stationery, then Paperly is your best option.

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

Paperly’s Own Triathlon

Last weekend, I completed my 5^th triathlon.  (No, not an Iron Man… I’m not that crazy!)  For the uninitiated, a triathlon combines 3 separate disciplines – swimming, biking and running – into one event.  I love participating in triathlons, because I love the challenge of trying to excel at three things at once.

What do triathlons have to do with Paperly? Perhaps more than you can imagine.

When speaking to Consultants, I often ask, “How do you judge the success of a party?”  Most every Consultant immediately replies, “By how much I sell!”

To me, that answer is analogous to focusing exclusively on the swim portion of a triathlon and completely ignoring biking and running.  A triathlete can never be successful if she only focuses on one discipline.

Instead, like a triathlete, a successful Consultant needs to view a successful party as the combination of 3 disciplines: selling, booking and recruiting.  At Paperly, we suggest our Consultants aim for $600 in sales, 2 bookings (i.e. future parties) and 1 recruit (i.e. future team members).

Without sales, the Consultant earns no commissions.  Without bookings, the Consultant has no future.  And without recruits, the Consultant’s earnings are limited to her own efforts, rather than the collective effort of her team.

Only when a Consultant completes Paperly’s version of a triathlon can she truly say, “I had a successful party!” Go Paperly triathletes, go! I’m rooting for you.

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