Resources...
What's new...
More topics...
Opportunities...
Deciding on a party plan - Helpful Hints
Discussions : Tips and tricks : Deciding on a party plan - Helpful Hints
sashels wrote:
Hi All,
This is my guide for people looking to start a party plan business; and also for people already doing a party plan who feel like a change or want to add another string to our bow!
It is just how I do my research, and not intended to be the bible of joining party plans!
Kirstin suggested that I share the questions that I ask when I research party plan companies. Personally I think doing your research is really important, so you know exactly how your business will/or can be run.
There has been a lot of discussion in other threads on choosing a party plan that you love. So my first advice would be to choose a few party plans which you think have fantastic products and then start doing your research. Don't choose a company just because it has a high commission or no start up fee, because if you don't love the product, you will find it very hard to try and sell it; and if you don't like it, then why should your customers try it?
My second advice would be to look at the ongoing business costs; how quickly will your starter kit be paid off or how quickly will you make the money back if you bought it outright; how much do catalogues and sales brochures cost; how much are order forms and other stationary; how much do deliveries cost; how much do host gifts cost you; etc
My third advice would be to look at how much you can earn and is it worth your time? - factor in everything such as time on the phone to the customer, travel time, petrol costs, time spent at party, time placing order, time receiving and sorting the order, time delivering the order.
We all do party plans for different reasons; it doesn't necessarily have to about making a lot of money; my questions do tend to ask about profit, because that's one important factor for me.
I have mentioned some of the questions that I ask and consider above, but I will now write the list of questions that I ask. I have tried to categorise them so it's easier for you, but some could also be in other categories. I'm sure other PP's can add more; I also find that sometimes when you ask one question it leads to another one that you haven't thought of. Personally I would try and answer as many questions as possible so you can make an informed decision and choose the party plan that is right for you!
One last piece of advice, a party plan may not tick every box for you, particularly if you are as picky as me, so try to find the one that is the best fit for you
JOINING COSTS:
how much is a starter kit?
is there more than 1 starter kit?
can you pay it off in instalments or from your commission?
can you buy it outright?
can you join without a kit?
do you have to have a certain number of starter parties? even if you buy the kit outright? are they negoitable?
can you do catalogue parties as a starter party?
is there a minimum amount for a starter party?
can you join just for the discount? or to sell to family & friends? or to sell by catalogues only? or to work part time and do parties? or to work full time doing parties? can you do a combination? can you change categories?
ORDERS/DELIVERIES:
how much do orders and deliveries cost?
do customers pay a postage and handling fee? is it always the same, or does it change depending on the amount of orders?
do the consultants get the p&h fee to go towards delivery costs, or does it go to the company?
is there a minimum amount on an order?
how often do you have to place an order to stay active, and what is the minimum amount?
do you deliver the orders to the host, or are you expected to deliver to every individual order?
can you get orders sent directly to the host from the warehouse?
can you place orders interstate and get orders sent there, or do they have to come to you first, and then you pay the additional postage costs?
BUSINESS EXPENSES:
how much are catalogues?
how much are specials brochures?
how much are order forms? compulsory stationary or pamphlets?
how much do host gifts cost you?
what price can consultants buy the product for, as demo products or for themselves?
Is there any unlimited amount of times that consultants can buy the same item at discounted rates?
are there ever free products? or free delivery days? or free gifts (not product) for consultants?
how often do you have to buy new stock/when new products are released?
how often do catalogues change?
are products ever on special for customers?
COMMISSIONS, REWARDS & SPONSORING:
is the commission always a certain percentage regardless of your sales amounts?
if it changes, when does the commission level change? are you paid the new comission level on everything, or just amounts over that figure?
what rewards do you get for sponsoring? (recruiting)
do you get an ongoing reward for sponsoring, or is it once off per sponsor?
how quickly can you 'climb the ladder'? what are the requirements at each level? what bonuses/responsibilities do you get as you achieve each level?
HOST GIFTS & PROMOTIONS:
what incentives do customers have to book a party?
are there ever additional incentives?
how much do host gifts and rewards cost the consultant?
what are other ideas and ways of increasing your bookings?
can you sell online? can you advertise the products online?
can you have your own website?
can you sell the product at markets and expo's?
GENERAL:
is training compulsory? how many times do you have to go?
if training isn't compulsory, what is available if you would like to attend training?
where is training held?
are there compulsory ring-ins? how often and what information is required?
can you run the business by yourself without any contact with your upline (sponsor)?
if you chose to, can you get support and extra assistance from your upline?
how many people join and leave within 6 months or a year? (retention rate)
what is the companies average party total for an experienced and an inexperienced consultant?
how many consultants are there in Aus, each state?
Feel free to pm me if you have any questions,
good luck and have fun finding the party plan that is right for you!!
Kirstin replied:
Wow! Some real food for thought there...
I would add that your relationship with your upline is vital - if they are v pushy, it can be quite uncomfortable. If they are very inexperienced, you aren't going to get much support. If they live close by, they'll probably be able to do face to face training and help with stock emergencies etc (very handy!)
Thanks for posting.
Kirstin xxx
sashels replied:
thanks Kirstin, and thank you for posting the link to the new pp'ers
xx
Kirstin replied:
I don't necessarily agree with everything in this article, but I thought it raises some important points:
Will Your Business Survive?
by Kara Kelso and Anita DeFrank
I won't rehash the same "choosing a business" speech because most of you know it. However, there's one question that comes to mind - did you choose the RIGHT business, and will it stick around?
Looking around on groups and message boards, something has become some what of a trend - starting new direct sales companies. There's nothing wrong with an established business doing this. However, I can't tell you how many times in the past year alone I've seen companies open and close within a few months. Kits were purchased and reps signed up, but in just a few short weeks the company was closing its doors. It may not seem like a huge deal to the company to move on to something else, but the reps have wasted much time and often money as well.
Although, how do you know the company won't last?
There's a few points to look for when considering joining a new direct sales company.
1. Has the company been around before the consultant program?
If it's brand new and opening with the consultant plan in place, beware! While this isn't always the case, do think twice about a company that hasn't been able to sell the product on their own.
2. How well was the business planned out?
Don't be afraid to ask personal questions! You have a right to know if they have planned their costs out for several years. Regardless of the business, a business owner must understand there is a slim chance of any profit being made in the first year. If they haven't planned to be in debt for at least a year or more, then chances are they will cut their losses before the year is even up. Should they not reveal their business plan, you might want to just move on.
3. What type of shopping cart do they use?
While there's nothing wrong with PayPal, if this is the only type of payment offered by the company you may want to think twice. A professional shopping cart set up doesn't cost that much, and if that cost has been skipped they may not be planning well.
4. Are catalogs and samples available?
If you get a "coming soon" when requesting a catalog, think twice about joining. Catalogs are a very basic part of business, and to not have them ready shows the owner "rushed" to get the business open.
5. How is customer service?
Put in a test order and see how fast things work in the business. If you can't order products yet, but reps are being signed up already, you'll want to wait until they are fully open before actually signing up yourself. Not being able to test out products ahead of time isn't a good sign.
With business comes risks, and no one can be completely sure how solid a company really is. However, being able to spot certain signs is important in protecting yourself and your credibility with your customers. Not to say the tips above will tell if the company will survive or not, but they may be able to give you a better idea if your business will last.
Direct Sales Products & Services
Our goal is to help you succeed!
~~~~~~~~~~~~~~~~~~~~~~~
Was this newsletter passed on to you?
Subscribe at:
Direct Sales Helpers News
Kirstin replied:
From Deb Bixler's very informative website (http://www.createacashflowshow.com):
Here are the questions to ask when joining any party plan company and especially a new company:
- How long has the company been in business? This is important for many reasons including all of those that follow. Like Esio, is the party plan a new branch of a well-established company, or is it a lonely vision starting out in someone’s garage?
- Does the start up company have the financial ability to stay afloat? New companies in any business need the working capital to make it through the rough times which are guaranteed to happen. Companies with cash flow from other sources are likely to get through bad times.
- What kind of support is offered to the sales representatives? At this point, Esio Beverage’s party plan division is a work in progress. The very fact that they hired me to teach them the ropes and train their first 100 consultants shows that they are committed to team training and support.
- Does the company have an internet presence and is it open to consultant interaction? The internet is here to stay. Any company that does not embrace the internet will not be in existence in ten years.
- Is the company committed to branding and marketing on all levels? A company which is starting out of someone’s garage is not going to provide the branding that is required in today’s marketplace.
- Is the structural support in place to grow? Again, Mom and Pop start ups are usually cute, but do they have the staff and structure in place to support the growth in customer service as well as sales consultant service?
- Is it a viable product? I have been contacted by many people starting home party plans with niche type products which may have some appeal on some levels. Is the product line supported by the manufacturer? Has it been tested? What kind of warranties are there?