Party Plan - The definition

Graham replied:

I Have 3 Pages that I use to explain Multi-Level Marketing to people.

This will be long, but I'll try to put them in here.

More and more people are calling on friends to discuss their direct sales business. However, some are not calling to sell them products, but rather to tell them how to start their own marketing organizations. The method most often discussed is multi-level marketing. To understand multi-level marketing, let’s look first at it’s history and then examine why it is the fastest growing field in direct sales.

The first multi-level companies got their start about the time of the Depression, but their bonus structures and distribution programs bear little resemblance to today’s sleek marketing programs. It wasn’t until the mid 60’s that multi-level marketing came into its own with the success of several large national companies. Today it is estimated that more than $5billion worth of products are moved by this method each year. This figure should quadruple in this decade.

A NEW TECHNIQUE

How does multi-level marketing work? Let’s compare it to the two general methods of distributing products and services. These are the standard retail approach and the non-store marketing approach. In the standard retail approach, a company manufactures a product, sells it to a retail outlet which in turn sells it to the public. Or, the manufacturer may sell to a distributor, who sells it to a retailer, who markets the product to the consumer.

The non-store method includes a number of approaches. The most popular are: door-to-door, mail order, direct mail and television sales. With today’s consumer turning more and more to the convenience of in-home shopping, these methods are thriving.

Multi - Level Marketing falls into the non-store marketing approach. It moves products through a nationwide network of distributors. Each is an independant contractor for the manufacturer, and run their business in their spare time. The major difference between multi-level marketing and other non-store methods is that in others, most sales are retail to a retail customer. Most sales by large multi-level companies, however, are to distributors who either : (a) Purchase products for their own use ; (b) purchase to build a retail business, or (c) purchase to build a business of their own through both retailing and sponsoring other distributors.

BIGGER INCOME POSSIBLE

People are turning to the idea of business ownership. While most people earn a living working for someone else, they are finding that they must move steadily up through the corporate structure to earn a higher income. However, the higher they move, the fewer positions there are.

At the same time they are caught in an economic crunch. Forty-five years ago the average weekly cost of living for a family of four was less than $40 a week and a job in middle management meant financial independence. Today, the weekly budget for the same family of four is $400.

Multi-Level Marketing can be an answer. For less than $50 investment, an individual can get involved in a legitimate multi-level marketing program and earn, according to published reports, from $100 a month to hundreds of thousands of dollars per year.

Graham replied:

A POWERFUL MONEY - MAKER

Acccording to Professor Stanley, of Georgia State University, there are more than 832,000 millionaires in America today. 80% of them are self-made. Almost all of them, he says are involved in one way or another in Multi - Level Marketing, and many of them are earning significant six - figure incomes from Multi - Level Marketing. While U.S. household population is growing at a rate of only 25% each year according to Professor Stanley’s research, the millionaire household population is bolting along at an astounding 20% rate. Today he says, one in every 75 households has reached millionaire status. At that rate, there will be an estimated 18,000 new millionaires in the next 90 days! If at least 20% of them come from Multi - Level Marketing, that means we’re right in the middle of the most explosive era in Multi - Level Marketing history!

Yes! Multi - Level Marketing is one of the most promising income opportunities in America today. It’s an opportunity that has been tested and proven for more than 30 years, and today it represents a multi-billion dollar industry which is successfully providing income for hundreds of thousands of Americans from all walks of life. Almost anyone who has a true desire to be successful can become so in Multi - Level Marketing. Some of the biggest money earners have been relatively unsophisticated, non-business people. In fact, some of the most successful distributors in the industry never even finished high school. And, most of today’s successful distributors had little or no money for investment when they began.

Many people have gone on to become totally financially independant in five years or less and some of them have actually been able to completely retire in as few as 1 to 3 years with incomes of $50,000 per year. Even though this industry is more than 30 years old and already distributes several billion dollars worth of goods and services every year, because of the growth explosion that is newly underway, and the fact that the vast majority of people don’t even know what the terms "networking" or "MLM" mean, I’m convinced that the time to get started in a network marketing career has never been better than it is right now! As an independant marketer, you have an unparalleled opportunity to build a marketing organization by simply sharing the opportunity with a few committed people like you who are willing to go out and re-produce themselves by sharing the same opportunity with another generation level of equally committed people. That’s all it is!

As this process continues through four, five, six or even as many as ten generation levels in some companies, you’ll be earning commissions and bonuses from the efforts of everyone in your entire organisation. This is why some people in the Multi - Level Marketing industry today are earning as much as $1,000 to $10,000 per month! Yes, I said per month and even more! In many cases, distributors have been able to earn five figure monthly incomes within months of joining a Multi - Level Marketing company. I personally do not know of any other income producing opportunity which offers that kind of potential! Do you?

Now, think for a moment. A doctor studies for eight years to gain knowledge of his or her profession and then serves as an intern prior to practising on his or her own. It’s the same with a lawyer, an engineer, a computer scientist, a college professor, or most any other profession you can name. Even a brick layer or carpenter must serve an apprenticeship before he or she begins earning a full wage. Yet, not one of these professions offers the possibility of retirement in one to three years, or of fnancial independence in a matter of months. Is it any wonder then why so many doctors, lawyers, computer programmers, teachers, homemakers, and people from all walks of life are discovering Multi - Level Marketing as a second career?

Graham replied:

The end of "A Powerful Money-Maker

We in the Multi - Level Marketing industry have the wonderful option of the ultimate in time leveraging through the principle of duplication of effort. Multi - Level Marketing is a proven system that utilizes the power and resources of many people by exchanging concepts and directing the talents and abilities of these different individuals toward a single worthwhile goal. What other business do you know of that is legal, ethical and

1. Allows you to start part-time from your home without the risk of losing your present income.

2. Allows you to start with a very small, affordable investment.

3. Has unlimited income potential.

4. Has no territorial limitations, no age or sex limitations, and no seasonal limitations.

5. Requires no special skills or training.

6. Is operated with very low overhead and no employees.

I think you will agree with me that there is no business on earth like direct mail Multi - Level Marketing, So why not get involved in Multi - Level Marketing today, right now, with the person that provided you with this material? Just send in your application and your sponsor will help you organize your own business and get you started on the road to success.

Graham replied:

THE AWESOME POWER OF ONE

The problem with most people in network marketing is that they neither have an objective nor a plan for achieving it. Whatever they do, therefore, is aimless. They do a little of this, very little of that; recruit a brother-in-law, send a few postcards, and run a tiny ad. When it doesn’t get them anywhere they whine, drop out and sign up in another program, hoping for the big kill. THIS IS RIDICULOUS.

Fortunately, there is a better way :

Look at the chart below. It clearly demonstrates that if you recruit just one person per month and each recruit signs-up just one person per month for one year, you’ll have over 2,000 people in your organization at the end of one year.

Months........Number of Distributors

1............................1

2............................2

3............................4

4.............................8

5...........................16

6...........................32

7..........................64

8.........................128

9........................256

10......................512

11.....................1024

12.....................2048

A Few Key Points About This Chart :

1. At six months, you have only about 1.5% of your ultimate downline organization. Don’t be discouraged by this. The dramatic growth comes shortly. Unfortunately, in network marketing, most people are out of a program before the sixth month, so they never benefit from the exponential growth.

1. You’ll probably lose money for the first 4 - 6 months. We all know the old saying "It takes money to make money".

Graham replied:

The end of "The Power of 1

Nowhere is this more true than in MLM. It’ll cost you money to join your program, pay for marketing and monthly fees, get leads, follow them up, etc. However, if your organization is doubling mothly, that’s what you should be focused on. The minimal amount of money you spend in the first six months will be more than offset by the substantial amounts of money you make afterwards.

3. The doubling doesn’t stop at 12 months! The methods that have brought you this degree of success, are the methods you must continue to use thereafter for even greater rewards.

So, how do you get started?

Post Your Objective

Personally, I’m a planning fanatic. I have daily, weekly, monthly, yearly ... and even lifetime plans. My ability to plan and to stay focussed on the plan is one major reason for my own success. One key component of the plan is posting your objective where you can see it daily and follow your progress. Where’s a good place? That depends on your situation. Personally, I like it on my computer, where I can see my current objectives every morning. You may prefer a big poster or a slip of paper affixed to your laser printer. The important thing is that you can see it EVERY DAY. Remember, each minute of the day you’re either achieving your objective, or you’re moving farther away from it. There are no exceptions. Thus, at all times you must remember what your objectve is and ensure that you’re doing whatever is necessary to achieve it.

Your objective here? 2048 new members of your organization one year from today.Is it achievable? IT MOST ASSUREDLY IS !

Sorry these were so lo0ng, but I think the info is well explained.

partyplans replied:

Wow.. you could almost write a book on that Graham!

Can you summarise your main key points in that in to a couple paragraphs to include in the definition of Party Plan?

Based on your input... I have modified the definition as follows

Start ----------------

The party plan is a method of marketing products by hosting a social event, using the event to display and demonstrate the product or products to those gathered, and then to take orders for the products before the gathering ends.

In this system, full-time commissioned representatives of the sales organization, almost invariably women, approach other women about hosting a social event in their homes during which a product will be demonstrated. In consideration, they will be given hostess gifts and a portion of the proceeds from the amount of goods sold. Usually all in attendance will be given a token item of nominal value as an incentive to attend.

This plan has been used primarily to sell items whose main appeal is to women, such as Tupperware (a food-storage system), kitchen utensils, home decor items, clothing, jewellery and similar products; recent additions to the field include lingerie and sex toys. Especially in the case of these items, the system of taking orders for later delivery of products has in some instances been replaced by the direct sale of items out of an inventory.

PARTY PLAN & MULTI LEVEL MARKETING

Party Plans are a type of 'Stairstep Breakaway' multilevel marketing plan.

'Stairstep Breakaway' plans bascially allow a representative to start out making a retail profit.

As the reprsentatives sells increasingly higher volumes of products per month, the company rewards the representative with additional profits.

The representative who recruited the new distributor is paid until the new representitive earns enough through their own sales to “break away” from their recrutier and form part of their “downline” instead of their “personal group”.

MULTI LEVEL MARKETING TECHNIQUES

How does multi-level marketing work? Let’s compare it to the two general methods of distributing products and services. These are the standard retail approach and the non-store marketing approach. In the standard retail approach, a company manufactures a product, sells it to a retail outlet which in turn sells it to the public. Or, the manufacturer may sell to a distributor, who sells it to a retailer, who markets the product to the consumer.

The non-store method includes a number of approaches. The most popular are: door-to-door, mail order, direct mail and television sales. With today’s consumer turning more and more to the convenience of in-home shopping, these methods are thriving.

Multi - Level Marketing falls into the non-store marketing approach. It moves products through a nationwide network of distributors. Each is an independant contractor for the manufacturer, and run their business in their spare time. The major difference between multi-level marketing and other non-store methods is that in others, most sales are retail to a retail customer. Most sales by large multi-level companies, however, are to distributors who either : (a) Purchase products for their own use ; (b) purchase to build a retail business, or (c) purchase to build a business of their own through both retailing and sponsoring other distributors.

BENEFITS

1. Allows you to start part-time from your home without the risk of losing your present income.
2. Allows you to start with a very small, affordable investment.
3. Has unlimited income potential.
4. Has no territorial limitations, no age or sex limitations, and no seasonal limitations.
5. Requires no special skills or training.
6. Is operated with very low overhead and no employees.

End ----------------

Graham replied:

Hi Tanya,

I think you have done a great job of summarising that for me. Thank You.

I have the info on 3 x A4 pages, but I could not just copy & paste as the files were too big for the forum.

If you want to use them let me know & I can attach them to an email for you. Then you could just change the contact details on the bottom & print them out yourself.

I think "The Power of 1" is a great explanation of getting new members in your downline.

diva21 replied:

Hi everyone,

I just wanted to say I totally agree with lilygirl.....you must be passionate about your business and yes the product will sell themselves, but  for future longevity recruiting is the way to go...I must say I am somewhat new at the recruiting side of my business, but am taking lilygirls advice and I will be on the lookout for guests at my parties who are "LOOKING'. Thanks for the tip...

marina replied:

 This is why some people in the Multi - Level Marketing industry today are earning as much as $1,000 to $10,000 per month! Yes, I said per month and even more!

After only 10 months in the business my bonus cheque on my downline for this month was  $3715.) This has been increasing from $800 to $3715.  Every month it gets higher and higher. If you put my sales on top I am easily in the category above. 

The power of multi-level marketing is amazing. The lady that joined me up received an $18000 cheque this month. She also still does her shows which is extra income. She has been doing this business for less than 3 years and she is proof it works with the right product.

Multi- level marketing is all for financial freedom. Financial freedom is party plan.

Thankyou for an amazing insight into MLM.

Kindest regards

marina