Why do I need a host and when should I involve one?
An enthusiastic host or hostess can be one of the best resources you have! Think of them as your “temporary business partner” for small, in-home events like pop-up shops, workshops, and online “parties.”. By opening their home and their connections to you, a host can be a fantastic way to meet new customers, prospective Team members, and even future hosts for your next workshop or online sales event. Hosted events are a great way to involve a friend, family member, or casual customer to provide the venue (e.g., home, Zoom connection, private group in social media), invite guests, and support the “flow” of shopping and creating. Using your Designer Dollars (DD), you can reward each host in a way that’s most meaningful to them.
What are host rewards?
Host rewards can be anything you and the host agree on, but are typically free and discounted product you offer to thank them for their work as a “temporary business partner.” When you share the potential of rewards at a hosted workshop or pop-up shop, you honor your host’s work AND you inspire guests to become a host for a future event, too.
Are rewards required?
No. Note that although Chalk Couture™ doesn’t have a sponsored or required “host rewards program,” we strongly recommend you offer rewards and that you consider incorporating hosted sales events like online parties, pop-up shops, and workshops into your business plan for your Chalk Couture Designership.
This document outlines a recommended structure for rewarding hosts, which you may offer exactly as outlined OR alter to suit your business. As a Chalk Couture Independent Designer, if you choose to add other incentives, discounts, or free products for hosts, these are considered “personal promotions” and are permitted in the Policies and Procedures.
You, not Chalk Couture, are responsible for the administration, funding, support, and tracking of host rewards, and use of any or all recommendations in this document are at the discretion of each individual Independent Designer. No Designer is required to offer or “match” another Designer’s host rewards program.
How can host rewards be funded?
Our generous Compensation Plan is designed to help pay YOU while giving you the flexibility to reward your host when you have one.
Note: Because our recommended host rewards structure is not published to the public, you are welcome to use your DD in a variety of ways. If you choose to use the recommendations exactly as outlined, Chalk Couture has made it even easier for you by providing a “Host Rewards Overview” flyer you can print, email, or share in person with your hosts so they can see in advance how much they may earn in rewards.
When should I use host rewards?
Offer host rewards whenever you have a partner who is helping you promote, host, and close a specific selling event, whether that be in person or virtual (promoted on social media and closed using your Chalk Site and/or Chalk Shop by Square app), or even in a creative workshop in a home or other private location.
What is Chalk Couture’s recommended host rewards program?
You decide what works for you; however, Chalk Central offers these recommendations: Provide a 10% product reward for the total retail sales of each event (excluding any tax or shipping charges you collect).
We recommend that the baseline for any qualifying event be $200 in retail value, and that for every $50 sold you increase the total retail value of the reward by $5.
See the chart below as a handy example.
RETAIL PRODUCT HOST REWARD
When your event totals reach selected levels, you could also consider adding item(s) at 40% off to your host's reward, so for example:
- When sales reach $500, choose 1 item at 40% off*
- When sales reach $800, choose 2 items at 40% off*
* You may choose to make the items available for 40% off limited to stock on hand/your existing inventory, rather than allowing a customer to choose from products you would have to order separately.
Important things for you to know:
- The 10%-in-free-product portion of your rewards program can almost be completely funded by your DD, at very little extra business expense to you. See examples below.
- The 40%-off-items portion of your rewards program allows you to purchase items at Designer Price and pass them along to your host at no additional cost to you. This is YOUR cost, but you don’t need to share that information with your host! For discounted items, you should consider whether to have the host pay sales tax and shipping, as those are real costs to you. Additionally, you may choose to limit the 40% off selection to inventory items you already have on hand.
So, how does this work in real life? Can I see some examples?
Assuming your rewards program matches Chalk Central’s recommendation:
- If host Jenny’s event yields $470 retail, offer her $45 in free product.
- If Sally’s event yields $575 in sales, she’ll earn $55 in free product credit, plus a 40% off item.
- If Sally would like to bump up that event total to $600 by adding her own order, you can tell her she’ll earn $5 more in product credit, for a total of $60. (Suggest that she choose an item on her wishlist to purchase that, in turn, will help her to get more wishlist items at less cost).
- If Audrey’s event reaches $913 in total retail sales, you can offer her $90 in retail value of free product, plus two items at 40% off.
Let’s break down the above scenarios and explain how paying for rewards and placing host orders can wisely benefit each host based on what you earned at their sales events:
1. JENNY = $470 USD/$615 CAD retail sales
- PV generated from retail sales of $470 USD/$615 CAD = 282PV. (Plus, you’ve exceeded qualification requirements for the month and hit activity for the quarter in this single event!)
- Jenny earns $45 USD/$60 CAD in retail product.
- Your instant commission from $470 USD/$615 CAD retail sales (if all are inventory items) = $188 USD/$246.28 CAD + 20DD. Jenny’s $45 USD/$60 CAD retail product can be ordered with 27DD or 20DD + $7 USD/$9.80 CAD in your Designer Office. You will need to deliver her rewards once they arrive.
- YOUR EARNINGS FROM THIS EVENT = more than $181 USD/$236.48 CAD
2. SALLY = $575 USD/$753 CAD retail sales
- PV generated from retail sales of $575 USD/$753 CAD = 345PV.
- Sally earns $55 USD/$75 CAD in retail product + one item at 40% off.
- Your instant commission from $575 USD/$753 CAD retail sales (if all are inventory items) = $230 USD/$301.30 CAD + 20DD. Sally’s retail product can be ordered with 33DD or 20DD + $13 USD/$18.80 CAD, and her 40% off item will be paid for by her. Have Sally reimburse you for her 40% off item when you deliver it, or collect her payment before placing the inventory order.
- YOUR EARNINGS FROM THIS EVENT = approx. $217 USD/$283 CAD
3. AUDREY = $913 USD/$1196 CAD in retail sales
- PV generated from retail sales of $913 USD/$1196 CAD = 547.80PV.
- Audrey earns $90 USD/$115 CAD in retail product + two items at 40% off.
- Your instant commission from $913 USD/$1196 CAD retail sales (if all are inventory items) = $365.60 USD/$478.41 CAD + 40DD. Audrey’s retail product can be ordered with 54DD or 40DD + $14 USD/$16.60 CAD, and her 40% off items will be paid for by her. You remit payment in your Designer Office using DD, your own credit card, or a blend of the two. Audrey’s rewards will need to be delivered or forwarded once they arrive.
- YOUR EARNINGS FROM THIS EVENT = approx. $351 USD/$462 CAD
How do Designer Dollars (DD) support my host program?
There are many benefits to DD, particularly in funding your host program. This is where a
little math comes in handy. Hosts and customers think in retail value; YOU think in PV
and Designer pricing. This benefits your Designership, because when you have an event
that reaches $470 USD/$615.70 CAD in retail, the product to support that event generates 282PV. $282 USD/$369.42 CAD is the amount that you’ve purchased those products for at Designer pricing, so you’ve earned $188 USD/$246.28 CAD cash PLUS you’ve also earned 20DD.
Remember that you spend DD on PV Value—so your 20DD buys over $33 USD/$43 CAD in retail value. It ALMOST completely pays for your host reward in this scenario. Isn’t that fantastic?
You earn 20DD for every 200PV each month, which can be a great offset in your funding of your own host rewards. If you prefer to simply cash in DD for product and have your host shop from your inventory on hand, that works, too.
Note: If you choose to have a host shop for their free items (or particularly their 40% off items) from inventory on hand, we recommend you carry some “high-ticket” items, such as E-sized Transfers or Couture Gallery™ Boards. These are often attractive to hosts desiring to maximize their 40% off benefits.
Do I have to give my host 10% on all sales?
This program is only a recommendation. You have control over what you offer and how the rewards are fulfilled. If you choose to structure your rewards program other than how we have suggested, that’s fine as long as you provide great customer service to your hosts and adhere to Policies and Procedures. Your customers will only see Chalk Couture’s recommended plan if you choose to share it with them.
If you do choose to follow our recommendations, we’ve created a handy recommended Host Rewards Overview flyer if you wish to share.
If I don’t want to offer my host 10% on all sales, can I offer something different?
You bet! As an Independent Designer, you have the flexibility to make your Designership your very own. You may create your own reward program more specific to your Designership using your DD or by providing a completely different reward. Here are a few more options on some programs you could offer:
- Offer a Chalk Transfer™ design from your personal inventory when your host has a successful workshop. You may determine what “successful” means as it pertains to your Designership.
- Provide a Couture Gallery™ or Couture Boutique™ Board for hosting a workshop that meets a minimum, predetermined sales amount.
- Give your host the workshop project for free if there is a specific number of attendees at the event. You may determine what that number is as it pertains to your event.
- Give 40% off of any item when a host hits a certain retail benchmark or attends a certain number of events.
Again, these are just suggestions that may be helpful to you if you choose not to follow our recommended program.
Do I provide rewards on the PV amount an event generates, or the retail amount?
We recommend communicating rewards in RETAIL dollars, as customers and hosts aren’t familiar with PV or how it works.
What if I don’t have a host? Can I still use the DD that I am awarded each month from the compensation plan?
Yes! The DD are awarded to you based on your PV totals each month. You can use the DD to fund many different things in your Designership, even if you don’t work with hosts. For example, you may use DD for Team incentives, expo and event drawings, or giveaways, etc.— the possibilities are unlimited when you use your imagination.
Can I offer the monthly Club Couture™ Transfer design as part of my host
No. Club Couture Transfer designs are exclusively available to subscribers, and should not be available any other way. If your host would like a Club Couture Transfer design, share the benefits of the program and encourage him or her to subscribe.
If a customer at a hosted sales event subscribes to Club Couture, should I include what she paid for her subscription in the total sales?
If you choose to promote Club Couture at your sales events and to reward your host for her support of driving subscriptions, you are encouraged to do so! It’s totally up to you. But be aware that the subscription will generate future sales that should not be considered. If you choose to reward your host on Club Couture subscriptions, we suggest rewarding on initial subscriptions only.
Too, if a customer attending an event is already a Club Couture subscriber, her current month’s Transfer billing should NOT be included in the event retail total.