Thursday, August 2, 2012

Direct Sales Party Plan Business Good for Moms?

August is officially back-to-school preparation for kids and moms in many parts of the country. What this means for direct sales and party plan companies is that moms will be looking for a home based business to join when their kids are back in school. Fall is traditionally one of the best, if not the best time, to rev up your sponsoring efforts. If you're a mom looking for a direct sales party plan business to start, here are key things to look for:

Why direct sales/ party plan?

According to the Direct Selling Association (DSA), the direct sales industry is made up mostly of women (88%+). The home based business model is ideal for moms for many reasons. The top reason is the desire to be home full time with their children. And to earn an additional income from working part-time or even earn a full-time income, depending on your level of commitment.

There are countless success stories of women that started a direct sales party plan business to earn $100 or $200 initially and from there it grew into a six-figure income or more. It really depends on you and what you're willing to put into the business.

Direct sales, party plan, or network marketing?

What's the difference? Although party plan and network marketing is under the direct sales umbrella, there are differences which could mean success or failure for you.

In a nutshell, network marketing is based on creating a network of consultants. It's generally heavy on sponsoring other people to join your business hence the word network. Most network marketing companies like Arbonne, Rodan and Fields, Nerium, Votre Vu, doTERRA, have a low entry fee known as their preferred customer option.

Arbonne has a $29 to be a preferred customer which means you can shop products at a discounted price. This makes it easy for people to start buying products at a discount because network marketing products are expensive compared to regular retail stores.

Once you're a preferred customer, you might be more open to consider the business opportunity. To become a business builder which is a term commonly used in network marketing, you will need to upgrade in order to build a business. Votre Vu offers this option as well as most companies. The upgrade option or "success pack" can range from $199 up to $1200. Expect to spend on average $300-$500.

If you join a network marketing company, you will need to be a great recruiter if you want to build a long-term residual income business.

Network marketing generally has a low personal monthly sales volume in order to earn a commission from your team. With Arbonne it was $100 and it may have changed but this is the norm. This low monthly personal sales volume makes it easier to build the business online without doing parties.

Party plan is more common with non-consumable products such as jewelry companies: Stella and Dot, Origami Owl Living Lockets, Jewel Kade, Silpada, or handbags such as Thirty-One Gifts, Miche Bags, as well as clothes, jeans, home decor, and so forth.

A party plan is the opposite end of the spectrum of network marketing. The business model is heavy on doing parties, hence the word party with party plans. Some companies like Stella and Dot changed it up to trunk shows to make it edgier but it's the same concept: you're doing parties in order to sell jewelry. Party plans depend on retailing products through home parties, catalog orders, or selling through small vendor boutiques/craft fairs.

If you join a party plan company, you will need to do parties by asking people to host parties or host parties yourself and invite people to your party.

Either way, you cannot earn the big income in a party plan unless you do parties. That is the heart of a party plan format. The monthly personal sales volumes are typically high with a party plan - anywhere from $300 to $500 personal sales requirements if you want to earn a commission from your team. It's not easy to sell this much jewelry or other non consumable products unless you do parties.

Every company has a monthly personal sales requirements in order to collect commission from your team so it's important to ask. It's not the same as being active so make sure you're clear on this.

Finally, there's direct sales, which is the umbrella that party plan and network marketing falls under.

Direct sales is a hybrid of the two: it's a balance between party plan and network marketing. Combining retailing products to earn an immediate retail profit and sponsoring for long term residual income. Verefina, the company I've partnered with is a perfect example of direct sales, with aspects of a party plan and network marketing.

However, Verefina doesn't have a high monthly personal sales volume which makes sharing products online doable without having to do parties. And it doesn't have the aggressive front-end recruiting common with a lot of network marketing companies. It's ideal for people that are looking for a business format somewhere in between.

If you're looking for a direct sales, party plan, or network marketing company to partner with this fall as your kids head back to school, I hope this was helpful with your evaluation.

It's important to choose the right business format for you but equally important is to find products that you would buy even if you weren't doing the business. Would you pay for those products as a customer first? 

Without a genuine passion for the products and company, it's very hard to succeed long term.


Janette Stoll
Direct to company Team Leader
What's Verefina?

1 comment:

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