The Party Plan Direct Sales Model - dummies

The Party Plan Direct Sales Model

By Belinda Ellsworth

Party Plan direct sales businesses place less emphasis on recruiting new team members than the other two direct sales models do. In general, women — who make up the vast majority of Party Plan independent representatives, hosts, and party guests — are often more comfortable sharing products to create income than they are recruiting to create income.

Fortunately, finding interested recruits becomes almost a natural side bonus of a well-run home party. You get in front of enough women enough times and you will encounter many who are looking for something like a Party Plan business.

So, despite a common discomfort with recruiting, when trained properly, women often discover that helping other women succeed by recruiting and training them brings great satisfaction in addition to boosting their business income.

Party Plan is characterized by a number of factors that are consistent across companies. First, most of the product sales and recruiting takes place during events (parties), both in-person and online, where groups of people (called guests) have been gathered together by a host they know personally.

The emphasis in these companies is typically on the products and the gatherings themselves. Hosts act as partners with the independent representative to boost attendance and sales. The parties are the primary source of new contacts and leads.

Parties serve a dual purpose:

  • They generate sales

  • They introduce the independent representative to new, fresh contacts on a regular basis

Many representatives earn all the money they want through their parties and through re-orders from their customers. They find they can continue their businesses successfully as long as they like with little or no recruiting. Their commissions on their personal sales are often quite satisfying, even in the beginning.

The specials provided for customers and perks offered to the hosts of parties are typically provided at no cost to the representative and can be leveraged to get more parties booked and increase initial sales and re-orders.

Instead of being paid with a periodic direct deposit of commissions for their personal sales, Party Plan representatives often receive their sales commissions directly the night of the party or within a few days of submission of the sale, depending on the company’s order-taking structure.