Sunday, January 25, 2009

Choose the company

If you haven’t given much thought to the specific direct sales or home party sales company you’d like to join, now is the time to consider that. In order to succeed in the home party business, it’s important that you choose a product that you use or would use yourself. Selling something about which you are passionate is much easier than selling something about which you have no interest. If you don’t use plastic containers that burp, selling them will probably be difficult. If you don’t wear a lot of jewelry, then a jewelry home party plan is not the one for you.

Every day, new party plans and direct sales companies are being formed. Why? Because in the 1980’s it was discovered that this continues to be one of the best ways of selling. Some products really need to be seen and demonstrated, and home parties are a way of having those products demonstrated. Even though our lives get busier, and people say they have no time for themselves or their families, the home party business thrives.

Perhaps you are aware of some of the home party plans in existence. Perhaps not. Do a computer search to find all the home party sales companies you can on the Internet. I think you’ll be surprised at the number and at the kinds of products offered by home parties. There are companies selling Christian merchandise, candles, make-up, jewelry, crafts, home décor, gifts, coffee, and much, much more.

It’s important to interject here that home party sales is not a get-rich-quick-scheme. Working in the direct sales/home party sales industry requires work. But the rewards are many. Most home parties now boast of having average sales of $300-800 per show. Most offer commissions of 20-30%. If each show requires an hour of pre-show preparations, three hours to travel and demonstrate, and an hour of post-show paper work, that means that each show or demonstration will require an average of five hours of your time. At the lowest earnings (20% of a $300 average show), the earnings would be $60 or $12 per hour. And that’s not bad for a part time job that allows you to choose the days and time when you work. At the highest level (30% of $800), the earnings would be $48 per hour. That’s why it’s important to choose the company and the products that interest you most. If you enjoy representing the company, you’ll want to build your business, and the chance of earning about $25 per hour of your time is not unreasonable. But, I emphasize, the money doesn’t just come in while you sleep. With home parties, you do have to prospect for sales and demonstrate. And that requires your time and effort.

Besides showing an interest in the product being offered, another deciding factor in choosing a company to represent is what the start-up cost will be for you. Most companies offer a sales kit which does require a out-of-pocket expense. Most don’t charge retail prices for their sales kits, and they include catalogs and sales tools in the kits. There are companies that don’t charge for kits. Instead, they make the sales consultants sign an agreement to return the kit if they don’t earn it by selling a predetermined amount. Some companies allow you to earn your kit by having a show in your own home. Someone else, a manager perhaps, usually conducts that first show and reaps the benefits of the commission. But you earn the sales kit. How much you have to invest in a new venture will be another determining factor in choosing a home party sales company. As you research the different companies available, you’ll want to take note of what is required to get started.

The third consideration when choosing a direct sales or home party plan business is what training and support you can expect. If were recruited by a local person, you can expect more training and support. Many companies offer official training classes, regular sales meetings, season kick-offs and award ceremonies. Brand new companies may not have any representatives in your area, and any training may be done by video tapes, email and long distance phone calls.

Whether you should choose a well-known older company to represent or a brand new one, is another thing to factor into your choice of companies. There are reasons for choosing either. You won’t have to explain the business of an older well-known company. People will already know. However, they may tell you they have enough of that particular product, because they’ve been to so many parties.

A newer company will require that you educate your friends and relatives and the public more about the products and the company. There probably won’t be any others in the area on whom you can lean for support. But for many, being in on the "ground floor” is attractive, and outweighs not having local support.

The choice of what kind of product and company you’d like to represent is your own. Although it would be nice if your friends and family will agree to be some of your first customers, it isn’t wise to let them choose the company you represent.

Yes, the choice is yours and yours alone. I suggest that while you search the Net for these opportunities, you keep track of the pros and cons of each company you investigate. Doing research and keeping track of the benefits of each company will help you make a wise choice.

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