Party Time
In most MLM organizations, sales are made one-on-
one. However, some companies, such as Stanley Home
Products and Mary Kay, use "party plans," in which a
group of customers are brought together for product
display and demonstrations. Although sales parties can
take time to organize, the party atmosphere helps to
increase sales.
Usually, sales parties are held in someone's home
and the attendees are women. The products most
suitable to this approach include cosmetics,
housewares, and small gift items.
Therefore, the first step in organizing a sales
party is to get someone to play hostess, allowing
guests in her home. Typically, the salesperson offers
an incentive to the hostess, either a gift from the
company's line or cash -- the cash might be a
percentage of sales made at the party. Although this
number varies, 10% is probably the most common
arrangement.
Then, it's up to the hostess to invite people to
the party. The more the better, in terms of sales, but
you don't want to invite so many people that the shy
ones hold back. Make sure the hostess tells all of her
friends that this is a sales party so they bring money.
It's awkward for people to come expecting a purely
social gathering only to find out later that such isn't
the case.
Although "party" indicates refreshments, keep the
food and drink modest. Coffee with cake or cookies is
an appropriate menu.
The focus of the party should be on the product,
so be prepared to put on a show. If you're selling
cosmetics, for example, you or someone else who's
knowledgeable should demonstrate how the cosmetics
should be applied. For clothing, you or a professional
model should show how the items will look; if feasible,
give the guests a chance to try things on.
Usually, people come to a sales party expecting to
buy something; if you put on a good show, creating
excitement, you may convince them to buy more. Having
a drawing for a door prize helps to send the guests
home in an upbeat mood.
Remember that it can be difficult for people to
keep all the items and prices straight in their minds.
For this reason, pass out a list of your products, with
prices, at the start or the end of the party, to
facilitate ordering. Try to get people to buy on the
spot, rather than order later, by offering a discount
or a bonus gift.
Get the names of all the attendees, especially
those who purchased your products or services. Follow
up with them for future product sales or to act as
party hostesses. When you follow up, find out if
they're interested in becoming distributors.
