Dbk Direct Sales

Position Statement The DBK headquarter sat down and review the sales numbers. A big driver of the years of success was the growth in the number of sales representatives. But Creevey the CEO of DBK was faced with the situation that representatives would not climb the sales ladder up. The rate at which new representatives were transitioning to leader and starting to build their own sales team is slowdown. But the willingness to build up a team is central for the business model of DBK. The reason therefore is already mentioned in the text; because leaders tend to stay longer in the company and are also more productive than sales people. Furthermore, the company can only grow its sales if the number of sales representatives increases The executive board provides two specific solution approaches: • • Increase Leadership Dollars 4 full-time trainers to encourage the representatives

The author suggests to hire 4 trainers to encourage the representatives. Because transporting the message to become a leader , manager or director is cheaper than increase the Leadership Dollars. 2. Argument The main problem of DBK is the fact that sales representatives fear about recruiting new sales representatives. They complain that their own sales volume would decrease when they add friends or colleagues to DBK and for that reason they stopped recruiting new members. The management board has found out, the representatives have a decrease of 15% of their sales volume, when they recruit the first member to DBK and another 10% of decrease for each additional sales representative. So why should representatives bring more members to the company, when this has a negative effect on their own earning? Is the current growth sustainable: DBK generated revenue maximization over the business periods 2006-2009. The reason for this was the volume-based sale by increasing the number of sale representatives at virtually constant prices. High productivity and a strong recruitment had also increased the