Wednesday, April 2, 2014

Natural/Organic Party Plan vs Network Marketing Companies

These days you're seeing more natural, organic skin care and personal care direct selling companies which is a beautiful thing because not all of the opportunities are created equal. Not only the compensation plans vary with each company but also the price points. There is definitely something for everyone but if you're thinking about joining a natural or organic beauty company, how do you know which is the best fit for you?
Products
Are the products high quality and of value to real customers? What are the retail price of the products? Does someone have to sign up to be a preferred customer or distributor first in order to afford the products?
Direct selling is more than recruiting. You need real customers to grow and sustain your business. You also want to earn money right away. The best way to earn an immediate income is to sell products without having a customer jump through hoops. 
Are the products priced competitively with regular brands so you can sell products easily without someone becoming a preferred customer first because the retail price is too high? Higher price points mean your marketing efforts to attract customers will be more selective.
Compensation Plan
People start a direct selling business for many reasons but if you're looking at it as a real business, it's really important to know how you're going to be paid, what are the requirements for team building, and so forth.
Party plan companies pay differently than network marketing companies. What does party plan based mean to you? 
It doesn't mean you're required to do parties but the personal and team volumes are generally much higher which makes doing parties or selling through events, groups, etc. more effective in achieving those volumes than network marketing plans. 
Examples 
With NYR Organic, personal sales volume required to earn a team commission starts at $200 and up to $400 and a team sales volume requirement. 
With Ava Anderson Non Toxic, personal sales volume required to earn a team commission starts at $300 but you also need to have a direct consultant also with $300 in sales. And goes up as high as $1000 personal sales as you move up the leadership rank. 
And Lemongrass Spa, you don't start earning a team commission until you sell $2500 in personal sales.
*Note: Check with these companies for most current comp plan details.
It's understandable people want to join a company because they love the products. I use several products from other direct selling companies and have thought about joining their companies but I know their comp plans are not the best fit for me. 
If you love to do parties, have a large network of people that you can easily tap into to host parties for you, or willing to do whatever it takes to achieve a higher personal monthly volume, then a party plan is a great fit for you. It's one of the reasons why some people choose a network marketing pay plan over a party plan because the personal minimum requirements tend to be a lot lower. 

With network marketing, it's typically common to see anywhere from 25 points to 100 business volume to earn from your team sales. In dollar amount, it depends on each company but it could be as little as $50 to earn from your team. That is significantly lower than party plans. 

One isn't better than the other but one is better than the other for YOU. I prefer network marketing comp plans over party plans because of the low personal sales. More on this topic in my future posts.
Best,
Janette
P.S.  If you love natural and organic personal care products and looking to build your business without having to hit high personal sales volume, I invite you to take a look at my natural/organic beauty business. It is by far the most flexible and achievable comp plan I've seen.

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