Home Party Plans
Are they right for you?

Home party plans began in the 1950's, and fall under the umbrella of 'direct sales' or 'multi-level-marketing' type businesses. There are all sorts of different party plan businesses, which cover toys, kitchenware, clothes, candles and many more. The basic idea is to choose a business model that suits your taste and style, and then to earn money by selling products from that company at social events.

Home party plan consultants make their money through direct sales, earning commission on the products that they sell, as well as through recruiting new consultants. Some of the larger home party plan companies also offer incentives such as holidays or cars as rewards for high sales volumes.

Most party plan businesses promote the flexibility that selling in this way offers and often suggest that you can earn yourself extra money by fitting parties around your existing commitments. Whilst the flash holidays and fast cars would need quite a considerable amount of time and effort to achieve, starting off small and building up your contacts and selling opportunities over time would be an ideal introduction to the home party plan model.

Starting Up

To be a successful party plan consultant you will need to be friendly and out-going. If you enjoy meeting new people and can chat easily to small groups, selling at social events might well be for you. You will also need to be inspired by the products that you are selling.

However, you will need to be organised and businesslike in your approach to the paper-work, it would be no good chatting away all night and taking lots of orders, if you didn't deliver the goods on time or collect any money!

Becoming a home party plan consultant is a fairly safe way of starting your own business in terms of support and low start-up costs.

Most well-known party plan companies offer assistance for new party-planners, often assigning an experienced local consultant to help get your business off the ground. Your mentor might help to familiarise you with the products and paperwork, and may even be able to accompany you on your first few events.

As far as initial costs are concerned, you will probably be required to purchase a 'start-up-kit' before you can begin organising any parties. The contents and cost of these kits varies from company to company but they normally include promotional materials such as catalogues, brochures, flyers, business cards etc, a range of popular products to use a samples or demonstration pieces and some business paper-work ie. order forms and receipts. It is always advisable to research what the different companies offer and expect from you before you commit to anything.

Pro's

• Work part time, based from home.
• Choose your own hours to suit you and your lifestyle.
• Run your own business and be your own boss but with support, training and back up from the company that you sell for.
• Relatively low start up costs.
• Meet new friends and increase your social life.
• Sell products that you believe in.
• You may be entitled to a discount on products that you purchase for yourself.

Cons

• Your earnings will be limited by the amount of time that you are able to dedicate to the business. Don't be fooled into thinking that you'll make mega-bucks if you only have a few evenings a week to spare.
• You will need somewhere at home to store your stock or display materials.
• You may have to deal with awkward customers and chase up late payments
• Working from home can blur your work life with your personal life. Although it is good for business to be on call 24/7, you may find that customers call round to place orders or to organise party events when you are trying to spend time with your family.
• It can be tempting to spend more than you really need to on stock or display items.
• The home party plans will often be held in the evenings, so be prepared for late finishes and travelling home after dark.

Next Steps

If you decide that the pro's for a home party plan business outweigh the cons, you will need to determine which company you want to work with. You should definitely choose a company whose products you believe in and would feel confident to endorse. Maybe compiling a short list of companies that appeal in this way would help to narrow down your options. Investigate each company on your short list and find out how each one operates ie. what the set up costs are, whether you are expected to achieve a certain level of sales, and what type of support they offer to new consultants.

Once you have settled on a company, contact them to find out if you are able to operate in your local area. Most companies allow multiple consultants to work in any given area, but you may find some that prefer to allocate a designated 'patch' to each person. If your area is already allocated you might have to reconsider your choice of business.

If you are able to set up with your chosen company in your area, then brilliant! Order your start up kit and take a little time to go through the contents before you start handing out catalogues or booking parties.

Once you feel confident using the products, and have a handle on pricing and the delivery system, start distributing catalogues to family and friends. Try to target people who you think may be interested in buying directly as well as those who might want to host a party.

Then think about advertising your business to a wider audience outside your own circle of friends. Put adverts in places that are appropriate for your product - school notice boards would be suitable for advertising educational toys whilst your local hairdresser might be happy to display an advert for beauty products.

Whichever company you decide to work with and at whatever rate you intend to grow your home party plan business, enthusiasm, confidence and commitment will be your greatest assets. Remain focused and organised and you should be able to earn money through the home party plan model.