There are two types of party plan companies: top tier and low tier. Top tier direct sales companies have significantly higher start up costs such as CAbi women's fashion, Doncaster, Etcetera, and a men's line J. Hilburn. CAbi also has territory restrictions which is brilliant because it reduces the saturation from having too many consultants vying for parties. And the high costs to join one of these top tier companies can limit some people's financial ability to join.
Compared to low tier companies, the start up costs can range anywhere from $10 to $199+, which naturally attracts more consultants because the costs are more affordable. But the downside is that you can end up with a lot more consultants in a concentrated area all competing for home parties.
What's great about top tier and low tier opportunities is that there is something for everyone. That is one of the most attractive features of the direct selling industry. But if you're thinking about joining a party plan which relies on home parties to earn the most money: keep these considerations in mind:
Is your area saturated? I know some people think saturation is a myth. To a degree, I agree because not everyone who signs up is even actively doing parties, so even if you have 100 consultants in your area chances are most of them are NOT actively out there hustling and getting parties booked. This is great news for those that are highly motivated and willing to do whatever it takes to get parties booked.
That said, if you're a mom selling jewelry or handbags and there are 10 other consultants in your area, you're bound to cross paths because moms network with other moms and they tend to network at their kids' schools, after school activities, sports, and so forth.
In fact, a friend of mine signed up to sell jewelry last year when she was the only one in her area and there are now thousands in the company and at least a dozen in her area all competing for home parties.
Does this mean you're too late if you missed one of the first waves- hardly; however, you will need to be out there marketing, networking online and offline to attract new customers which is vital to a party plan business. The heart and soul of a party plan business is to party.
When you're in a business that depends on home parties, having too many consultants can potentially flood your area. Low entry fee such as $10 or $29 might be easier to sponsor new people but realistically, you're sponsoring more people that are essentially competing with YOU for parties.
There should be a balance for party plan companies to attract new consultants with affordable start up costs but not make it a "wholesale" shopping experience by introducing a $29 sign up fee which could compromise a consultant's ability to sell at "retail".
Although you're more likely to see wholesale options with network marketing however network marketing companies typically offer consumable products that are more likely to generate repeat sales. And network marketing relies less on parties and more on customers to consume products therefore the low fee "wholesale" option tends to work for network marketing such as Arbonne, Votre Vu, doTERRA, and many others.
This isn't to deter you from choosing a party plan company that offers a low entry fee but to give you food for thought and think about what your ultimate goals are and make a decision that's best for you.
What are your thoughts on low start up fees? Do they benefit consultants?
#1 Top Leader
P.S. Do you love direct sales but not the party plan type? Email me and let me share how you can build a home based business using products you're already buying elsewhere and never have to bug your friends and family for parties.