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When it comes to direct selling, one of the most popular methods is party plan selling. Most of the direct selling companies follow this method of marketing because not only is it an extremely convenient way of promoting the company as well as the products, but a great way of getting leads and sales too.
What Is a Party Plan?
Party plan is essentially typically a home party, where the sales representative of the company use the party business model to offer their products for sale. Under this model, anyone can host a party for the company by taking an appointment with the sales rep.
The host of the party then invites her guests where the sales rep will demonstrate and sell the products. Most party plan companies follow the multi-level marketing business model, where the sales reps receive commissions from their personal sales and also commissions from sales of downline members in their team.
The party plan business model has been successfully used by women to sell products to women such as jewelry, cosmetics, kitchen utensils, wine, lingerie, etc.
How Does Party Plan Work?
In the party plan method of marketing, the sales representatives of the company, who are mainly women, approach other women to get them to host a party or social event in their homes. The sales rep will demonstrate the products of the company during this social event and also offer the products for sale to the guests. In return, the hostess will be given gifts and some of the amount made from the products sold. All the guests will also receive a token item as an incentive for attending.
At the party, the sales rep will display and demonstrate the products of the company and will take orders from the guests. Usually, the sales representative receives a commission on the sales. If the sales rep has recruited other people into the company, then she will also receive a commission on the sales of her recruits.
History of Party Plan
The party plan was a concept invented by Norman Squires for Stanley Home Products in Westfield way back in the 1930s. However, the concept was popularized by Brownie Wise, who used this method to market the products of Tupperware and Tupperware is considered to be a pioneer of the party plan model of marketing.
In the 50s, Tupperware saw the need for women to have a place where they could meet and interact with their friends and this is when the company saw merit in the party plan biz model and decided to integrate it along with their marking plan. Tupperware parties allowed women to socialize with their friends and also earn an income in a comfortable and relaxed social environment.
Top Party Plan Companies
When it comes to the world of beauty and makeup in the MLM niche, Mary Kay is legendary. A privately-owned direct marketing company, Mary Kay was started in 1936 by Mary Kay Ash with a small investment of just $5,000.
Today, the company has been ranked as the 6th largest direct marketing company in the world with a revenue of $3.25 billion in 2017 according to Direct Selling News. Mary Kay is headquartered in Addison and has a worldwide presence in 40 countries.
Mary Kay has been built on the core principle of empowering women and the company revolutionized the beauty world with its innovative products. And, in the year 1999, Mary Kay Ash was named as the “Texas Woman of the Century”.
Mary Kay Business Model
Mary Kay sells its products through an MLM marketing model and via a network of Independent Beauty Consultants. As a Beauty Consultant, you can earn up to 50% on all Mary Kay products you sell and also get commissions on the sales made by the people you recruit to the company.
You can earn many rewards by hosting a Mary Kay party. You can decide on the type of party, place, time and the friends you want to invite. Your guests can try before that shop and when you host a party, you can get up to 20% discounts on your favorite products, earn free products, get special offers or exclusive gifts. You can also host an online party from the comfort of your home if you wish.
Avon is a leading beauty product and cosmetics brand which was started by David McConnel in 1886. Avon promotes and markets its product range of color cosmetics, skin care, personal care, fashion, wellness and fragrances through a network of sales representatives and has been empowering women by offering economic opportunity to start their own business and earn an income.
Avon has over 6 million sales representatives worldwide and as per Direct Selling News, Avon is ranked as No. 2 after Amway as the largest direct selling company with a revenue of $5.70 billion in 2017.
Avon Business Model
You can join Avon as an independent sales representative and launch your own business at a very nominal appointment fee. When you sign up as a sales rep, you will receive a kit that has all the essentials to get you started and you can earn up to 40%* on all the sales. (*40% earnings are guaranteed only on your first order and after this, the amount may vary depending on your efforts.)
What started in the year 2004 by Heidi and Orville Thompson as a company for wickless candles and decorative warmers in Meridian, Idaho is today an international business company and according to Direct Selling News, in 2017, the company made $468 million as revenue. Scentsy is a direct selling company and is a leader in personal and home fragrances and its products are sold in 11 countries through a network of Scentsy Consultants.
Scentsy Business Model
The products of Scentsy are sold using the direct sales and party plan model. The Scentsy salesforce comprises Independent Scentsy Consultants who sell the products via home, as well as, online parties, fundraisers, trade shows and fairs. To host a party, you need to contact your Scentsy Consultant, who will bring along display products, fragrance testers and all that you require for the party.
When you sign up as a consultant, you must buy the Starter Kit for $99 or the Enhanced Kit for $149 which has everything you need to start selling. As a consultant, you can earn between 20% to 30% based on your personal sales.
The Tupperware brand was started by Earl Tupper in 1948 in Massachusetts. Tupperware is a home products brand which includes lightweight non-breakable plastic kitchen and home products which includes containers for preparing, storing and serving food.
Tupperware was the first brand which was sold through direct marketing and in the 50s, Bonnie Wise of Tupperware conceptualized “Tupperware Parties”, which became a popular method by which the products were promoted and sold. Today, Tupperware is available in over 100 countries and the products are sold through a network of over 1.9 million direct salespersons across the world. The revenue of Tupperware in 2017 was $2.26 billion according to the Direct Selling News.
Tupperware Business Model
You can earn with Tupperware by signing up as a Sales Representative. As soon as you start, you can receive a profit of around 25% on your personal sales and you can earn up to even 35% a month. Not only can you earn on your personal sale, once you begin building your team, you will receive royalties on the sales of your team members too.
Founded by Petter Mørck in the year 1975, Arbonne is a Swiss brand which started its US operations in 1980. Arbonne is into the manufacture of premium quality skin care, beauty and nutritional products which are vegan, botanically inspired, cruelty-free and sustainable. Arbonne products are not only good for you but are environmentally-friendly too.
A member of the DSA, Arbonne is a direct sales company and the Arbonne products are marketed through the network of 260,000 independent consultants. In 2017, Arbonne’s revenue was $553 million according to Direct Selling News.
Arbonne Business Model
Arbonne markets its products via its Arbonne Independent Consultants and as an Independent Consultant, you can earn via client commissions which are the profits paid on the product sales to clients (35% of the SRP (suggested retail price)) and 15% of the SRP to preferred clients. If you have a team, you also earn on the sales volume of the team and there are also cash bonuses which are available on your personal and/or team sales.
Started in 2012 by the brother-sister team, Derek Maxfield and Melanie Huscroft, Younique is a beauty and skincare company which is located in Lehi, Utah. The company was started with the goal of empowering and uplifting women across the world. The company started with its flagship product, 3D Fiber Lashes mascara, which was a huge success in the beauty world. In 2017, 60% of Younique’s stake was bought by the beauty conglomerate Coty for around $600 million, according to Reuters.
Younique Business Model
Younique is a direct sales company which sells its beauty products through a network of “presenters” who promote and market the products by direct selling and social media. You can also earn rewards by hosting a Younique virtual party and introducing the products to your friends where the can try the products and also shop.
You can host a Younique virtual party by finding a Younique Presenter to sponsor you and by simply sharing a link. You can then invite your friends to shop via the link, which you can share through text, social media or email.
To be a Younique Presenter, you need to sign up by paying a fee of $99. You will receive a starter kit of products and also your own website to get you started. When you make a sale, Younique pays in the form of royalties and when you make a sale through your website, you will receive your earnings 3 hours within making the sale, which will be deposited into your PayQuicker account. The company will give you a Younique Debit Card when your commissions reach $50. As a Younique Presenter, you can earn royalties between 20% and 30%.
The Pampered Chef
Pampered Chef was started in 1980 by Doris Christopher and has its headquarters in Addison, Illinois. The company offers tools and tips for a quicker and no-fuss cooking experience. The company provides high-quality kitchen products such as cookware, tools, foodstuffs and cookbooks and the product line consist of over 500 products. According to Direct Selling News, Pampered Chef was acquired by Berkshire Hathaway, a company owned by Warren Buffet, in the year 2002.
The Pampered Chef Business Model
The Pampered Chef is a direct seller of kitchen products and markets and sells its products through its sales force of Independent Pampered Chef consultants. The products are mainly sold via cooking shows or in-home cooking demonstrations and over 1 million cooking shows are held in the US each year.
At the in-home cooking shows, Pampered Chef independent consultants bring together people at in-home parties and help the guests use the Pampered Chef’s products to prepare the simple recipes and also share the tips and techniques to make daily cooking simpler and quicker. As a Pampered Chef consultant, you can also run your own online business via your personal website.
You can either work alone as a Pampered Chef consultant or also build a team which can benefit you both financially and personally. As soon as you start your Pampered Chef business, you can start earning immediately and can earn between 20 to 27% as commission on personal sales and when you shop, you can get a discount of up to 50% on Pampered Chef products.
Traveling Vineyard is a direct selling wine company in the MLM niche. The company was started in 2001 and is based in Ipswich, Massachusetts. Traveling Vineyard was bought by Robert Libby in 2010 and the company was then restructured.
Traveling Vineyard Business Model
Traveling Vineyard markets and sells their wine by in-home wine tasting. The company has over 5,000 independent sales representatives, as part of the direct selling team and these reps are known as Wine Guides. If you want to join Traveling Vineyard as a Wine Guide, you need to buy a Success Kit which costs $179.99 and consists of all the things to make your business a success.
As a Wine Guide, you will not be actually selling the Wine but only marketing it for Traveling Vineyard and you can earn up to 35% of your personal sales, which the company calls “personal marketing fee”. When you have a team, you will also get a bonus amount on your team’s sales as well. On an average, as a Wine Guide, you can earn between $80 and $100 for each wine tasting event you organize.
Boisset Collection was started by Jean-Claude and Claudine Boisset in Burgundy, France in 1961 as a small wine trade and today, is the 3rd largest wine group. The company is a leading wine producer and is present in over 80 countries. Headed by Jean-Charles Boisset, Boisett Collection is one of the leading fine wine companies in the world.
Boisett Collection Business Model
Boisett Collection is a direct selling wine company in the MLM niche and markets its products through direct sellers. You can sign up online as a direct seller or Boisset Ambassador with Boisett Collection and “Be Your Own Boss (BYOB)”. Once, you sign up and buy one of the Ambassador Business Kits, which cost between $149 and $349, you can host your wine tasting event and get your business started. As a Boisset Ambassador, you can earn up to 30% as commissions on your personal sales.
Started in Sausalito, California in 2004, Keep Collective is a jewelry and accessories company. Keep Collective was started by Blythe Harris and Jessica Herrin, who are also the founders of Stella & Dot. The company is “inspired for by, created for and run by strong women” and today, Keep Collective is a billion-dollar brand.
Keep Collective Business Model
Keep Collective promotes, markets and sells its products through its Keep Collective Designers via “Design Sessions”. You can host a Design Session by partnering with a Keep Collective Designer. Usually, a Design Session is an online session, where you can share the KEEP products with your family and friends. And, as a Design Session host, you can earn free jewelry from Keep Collective.
As a Keep Designer, you can earn up to 25 to 35% commissions on your personal sales and when you shop, you can get up to 50% discount on the KEEP products. Additionally, you can also earn perks, bonuses and prizes.
Overall, the distinction between traditional network marketing and the party plan model has blurred. And, the important thing is that the party plan model has been extremely successful and is here to stay, so hop on board!