How to recruit, utilize, and retain talent is a common dilemma for distributors in organizational development. ▼ Facing a Cooperation Crisis with a Top Employee Every individual and every company has a gradual growth process. When the two are in sync—that is, when the individual's growth needs match the distributor company's growth speed and space—it is the honeymoon period for both, and their needs are balanced and satisfied through mutual progress. However, once the individual's growth speed begins to exceed the company platform's carrying capacity—that is, when the distributor company can no longer provide further growth space for the top employee—this balance is broken, and the cooperative relationship begins to face challenges. In such a situation, what are your thoughts? What choice should you make? If you make the right choice, your company can grow with wings; if not, you may unknowingly become a "free training institution" for other companies or even competitors. I have faced the same dilemma, but here is what I did. ▼ How to Resolve the Crisis I once read an article in the media that analyzed the reasons why top employees leave. One reason described left a deep impression on me: Many top employees, when they perceive that their compensation is not proportional to the revenue they contribute to the company, develop the idea of "going solo." I think this reason for leaving is easy to understand. A top salesperson is certainly diligent and good at handling interpersonal relationships, meaning they possess entrepreneurial potential, so it is normal for them to have the idea of "going solo." I therefore pay close attention to my company's top employees, care about their lives and work conditions, and try to give them a pleasant work experience. 「Case Replay」 Xiao Lu was a salesperson in our company. Within a year of joining, his business ability and sales performance improved rapidly. He was very diligent and had strong public relations skills. Clients that others couldn't win over, he would become good buddies with after one or two visits. I therefore paid close attention to him. During a chat with a client (a client that Xiao Lu was responsible for), I learned that Xiao Lu had always had the idea of becoming his own boss. This made me feel that he wouldn't stay long in my company, but I didn't want to lose a top employee. So, I found Xiao Lu and had an open and honest conversation with him. First, I affirmed his business ability, and then I expressed that I sensed his intention to "go solo" (I did not reveal the client's information to avoid unnecessary trouble). He also shared his plans and the problems he faced. It turned out that a liquor boss had tried to recruit him with a high salary, but he still wanted to become a liquor distributor himself. He came to work for me to accumulate experience and meet clients. Although he was diligent and had accumulated some client resources, capital and brand resources were his biggest problems. At that time, the Xinghua market was dominated by Yanghe and Jinshiyuan (which I represented), with the two brands accounting for over 80% of market share. Thus, the market situation was that the distribution pattern for leading products was very stable, other products had a high dependence on resources, and new products found it difficult to enter the market. Moreover, to become a brand agent in the fiercely competitive environment at that time required substantial capital. 「Solution」 After in-depth communication with Xiao Lu, I realized that truly top and diligent employees are hard to keep in the company long-term. Moreover, with fierce competition among peers, "poaching" is quite common. I came up with the idea of helping him start his own business, developing him into my franchisee, and changing the way we interact. This would give him room to grow while ensuring he continues to contribute to the sales of the brands I represent. So, I shared my idea with him, and he happily accepted my suggestion. Our agreement was as follows: First, Xiao Lu would open a Jinshiyuan franchise store in a suburban area of Xinghua (a place without a Jinshiyuan distribution point, which had always been directly delivered by our company to terminals). Second, during the opening period, I would extend credit of 150,000 yuan worth of products to Xiao Lu (with a guarantor), as initial capital and as support for his entrepreneurship. When he made his second purchase, it would be cash on delivery. The 150,000 yuan credit would be settled in full by the end of the year. Third, Xiao Lu, as my franchisee, would enjoy the same policies as other secondary distributors. Since Jinshiyuan was the main product, I promised to support him with 1-2 tabletop tasting sessions per month to develop group-buying business, with costs to be applied for from the manufacturer. Fourth, Xiao Lu was not allowed to sell other brands of liquor. I supplied Xiao Lu with the full range of Jinshiyuan products, with a comprehensive price system. He could source red wine and beverages himself to meet the needs of various consumers. Fifth, I arranged for a dedicated salesperson from the company to cooperate with Xiao Lu in developing the market and help him grow quickly. Xiao Lu was diligent and hardworking, and he quickly distributed the goods to surrounding villages. His delivery costs were much lower than ours, so I also assigned the small shops in the surrounding areas of his franchise store to him for delivery. Our cooperation became closer. 「Operational Tips」 First, Xiao Lu was a special secondary distributor. On one hand, I extended credit to him as support for his entrepreneurship, out of emotional support. In business, one should be kind to others, build good relationships, and make more friends, so that business becomes smoother. On the other hand, I provided tasting support to help him with group buying. Second, Xiao Lu's purchasing and rebate policies must be consistent with those of other secondary distributors to avoid low-price selling. Third, Xiao Lu was required not to sell other brands of liquor, to avoid cultivating competitors for myself. Distributors should not only be good at "defeating" competitors through marketing innovation, but also need the ability to discover and "tame" potential competitors. 「Tips」 A top salesperson with the desire to start an independent business should be guided and supported to become our partner, rather than becoming a warrior for competing products to fight against us. In addition to helping employees become distributors, you can also give top employees shares to make them owners of the company, allowing them to work with peace of mind and stability; you can also contract sales areas to top employees, making them small wholesalers, increasing their income and expanding their space; you can also send top employees to the distillery, which both increases their income and resolves the danger of them becoming competitors. Source: Jiushi Distributor Home The 2017 (3rd) FMCG + Internet Conference will be held in Chongqing in November 2017. The conference will closely focus on the theme "New Forces, New Ecology" and invite over 1,000 distributors, 500 brand owners, founders of 200+ B2B platforms, and 100+ investment and financing institutions to jointly explore a new chapter of cross-border integration! Click the link below to review the highlights of the 1st and 2nd FMCG + Internet Conferences: 2016 "FMCG + Internet" Summit Forum -END-