How to Start a New Business in Party Plan Selling
Party plan selling is a type of direct selling in which you put on a party to sell a
product or service to your customers. And today some party plan people are even putting on
online parties, where people join together at a certain time and communicate via online
forums, chat rooms, e-mails, or video feeds. The other type of direct selling is
person-to-person selling, where you engage in one-on-one sales.
The first thing you need to do before you start a new business is decide what company
you would like to join. The key to success is choosing a product to sell that you are
passionate about. If you have a lot of passion for a product it will automatically show to
your customers and land you more sales. You should also review compensation plans when
choosing a company.
Once you decide which direct sales company is for you and sign up, you'll want to start
booking parties. Start with your friends and family. Have them book parties so you can
present your products to their friends. Assure them that the party will be fun and their
guests will enjoy themselves. A lot of people don't want to subject their friends to a
sales pitch, but if you reassure them their guests will have a good time and not be
required to make a purchase, they'll book the party. At the party you will talk to the
guests not only about your products, but about booking their own party, and the business
opportunity as well.
The party plan business, like the direct-selling industry, is generally huge - more
than $10 billion - though it is hard to come up with precise figures, because many people
in direct-selling companies put on parties to sell their products even though they aren't
officially considered a party plan company. Plus if Suzy down the street decides to sell
some products which she has bought wholesale form a manufacturer or at a flea market at a
party, well then, that's party plan selling, too. The Direct Selling Association (DSA) has
approximately 170 members, which use person-to-person or party plan sales strategies, or
both. About 80 percent have multi-level compensation plans.
When you learn how to start a new business using a direct sales company, selling
products isn't the only way you get paid. You also get paid to sell the business
opportunity. This means you receive a portion of the sales that people you have recruited
make. This creates a passive income, meaning you are getting paid for something that you
aren't actually doing the work for. The easiest way to recruit people is at your parties.
When they see how much fun you are having and that you are succeeding, they'll want to join.
The direct-selling industry has gained wide acceptance, whether you are selling via
party plan or person-to-person, because the majority of American adults (55 percent) have
at some time purchased goods or services from a direct sales person. So who's involved in
this vast industry? Mostly it's a business of women, who are doing this on their own on a
part time basis as independent contractors.
Mostly, direct selling occurs through face-to-face selling in the home - about 62
percent. But now the Internet is growing - with about 11 percent of the sales, plus the other
major source of sales is the phone - 16 percent. To assess how you're doing in putting on
each party, keep a record of your costs, as well as the immediate income you earn from
sales at the party, plus the income you earn through follow up. It will give you an idea
of what percent of your income is coming at the party itself versus follow up later, so
you can decide what your best strategy is for the future (for example, increase sales at
the party; do more follow up to increase after party sales; continue to pursue your
The bottom line is you can succeed with a direct sales business. Like with other
businesses, it takes time and patience to build your customer base and your team. Once you
get started though, the time flies and before you know it you could have the business
you've always dreamed of owning.
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