MLM Party compensation plan is the promotion or marketing of products through a social event like home based party. During this social events, the products will be displayed for sale. Moreover, we can say this as direct selling. In this system, the salesperson conducts a home party, during this, they sell products and also ask or give the opportunity to the guests to host the business parties. This plan is concentrated on both single level marketing and multi-level marketing. This plan is mainly used for marketing the products which are (is) used or related to women. So this business plan is mainly followed by women. The products like cosmetics, kitchen utilities etc are (is) done through party plan. Sometimes a combined party (parties) will be held, where a wide variety of products will be sold out. Party plan mainly consists of multi-level compensation plans. Products are sold in this plan. It allows the representatives to recruit others to sell. It has international sales forces. Representatives can be called as independent contractors. Party plan companies call their representatives by the name consultants. Party plan companies usually tend to attract women. But few men are also joining now.
Party Plan companies sell their products to retail customers. In the initial approach of the Party plan, there is less emphasis on MLM Compensation Plans. Opportunity is more focused on the product and the personal commission if the product is sold. One of the core selling models of the Party Plan company is the party itself. Party Plan companies have a complex order entry system which includes the following. Cash and checks from a single party, shipping to different locations and payments made from the credit cards, booking of the rewards, hostess rewards and multiple orders from different customers. Party Plan companies have the consultants who sell their products to retail customers. They recruit other people to sell the products to retail customers and they get paid for those orders. Party Plan companies sell the products with an experience incorporated with it. The product when displayed with a group of women usually creates an emotional and personal connection. For example, a jewellery creates an experience much better than a cup of tea. A party becomes the gathering place for women to have an experience in different products. Because of the social environment they are involved, they try to purchase something.
A party generally has three types of attendees, consultant, hostess and guests. The duration of the party will be about 60-90 minutes. Presentations will be short. After that, time for sampling or viewing the products arrives. Normally refreshments are provided by the hostess. Then the party will be wrapped up by the ladies placing orders and booking extra parties. Products can be purchased from the party if the consultant has extra in hand. Orders can also be placed by shipping.
Guest can order products by credit cards, checks or with the help of cash. The more experienced consultant will always make the business opportunity with the help of presentation or discussion. Guests can also be encouraged to book their own parties by themselves. The advantage is that products can be earned free or in a half priced amount. When a consultant goes home the party order is entered into the online company. A party is created by entering guests, the hostess and each customer’s order. Based on the volume of the party sales, the hostess will get free or half- priced items. Customers will get their orders shipped directly. Combined party order can also be shipped to the consultant or hostess. When the party order arrives, consultant or hostess prepare each separate order for delivery. The product needs to be a retailed appeal. It should be priced so that the actual retail customers will purchase the items.
Nowadays, party plan consultants have used the internet to market new and repeated customers. Another method for selling is catalog parties, 1 to 1 sales, fairs & shows. The majority of consultants likes the products and feels that they are able to make some extra income by conducting parties or selling their products. Most people involve in their direct sales career to recruiting and to build. But others feel attached to the products. They usually view the social aspect of the parties as a fun or a better way to sell and recruit.
What Type of Compensation Plan is Best for You?
I wouldn’t suggest to anyone that they choose their company based on the compensation plan alone. It may come into consideration, but there are more important things to consider when picking a network marketing company.
Over to you. Do your MLM company use the MLM Party compensation plan? How is it working for you?