We've all been to "those parties"...the ones hosted by your friends that are "no pressure". Tastefully Simple, Pampered Chef, Tupperware and <cough cough> Mary Kay among others.
(Darla will understand the <cough cough> Mary Kay reference)
Of all the ways that there are to make extra money, I can tell you the WORST way (IMO) to do it...and that is through the "home party plan"
Perhaps you have been an Independent Consultant for one of these companies and had a good experience. While I am happy to know that, this I can tell you with absolute certainty: for every one of you, there are at least 10 who lost money, friends and/or dignity as a result of their "business".
Why do I say this? For many reasons.
1. No matter what anyone (especially someone who is trying to recruit you) says, the Home Party Plan is dying a slow and overdue death. With very few exceptions, there is not a single item that you can purchase at a Home Party that you can't get much cheaper on eBay, CraigsList, Amazon or even your local store. Pampered Chef is no longer the only place to get Stoneware. Beer bread mixes can now be found in the supermarket. Etsy is full of crafters who make just as good (if not better) jewelry than you can get at any jewelry party, and at much better prices.
2. When these companies talk abut your per-hour income, they generally aren't taking in to consideration your time to get leads, confirm classes, prepare for classes, do paperwork, etc. And if you are with a company that "encourages" inventory you can add in time for ordering, restocking, making deliveries for those items that you didn't have the night of your party, etc. That promised $20-$40/hour can quickly turn in to less money than you would make flipping burgers at Wendy's!
3. These parties are always promoted as just a "fun night out" and "no pressure". Let's be completely honest: the hostess is asking her friends to spend their money so that she doesn't have to. And anyone who dares to come to one of these parties and leaves without buying? There's one at every party that I have been to and believe me...the Consultant and (usually) the Hostess are annoyed at them for not buying. They may never admit it, but still....
4. Most importantly, there is something very wrong with turning family and friends in to customers. It destroys the whole dynamic of the relationship. Occasionally you will find someone who loves the product so much that they can't wait to have a party for you. More often than not they will agree to have one and then try to figure out a way to get out of it. And if you get to the stage in your "business" where you are actively trying to recruit members for your "team"? They will run screaming from you!
And in the interest of full disclosure: I've been a consultant for 2 different companies. The first time was about 10 years ago and I DID do well. I left when my son was born and I just didn't have time to continue. The second time was about 5 years ago and I left after a year of hard work and barely breaking even. My "tipping point" was when I saw how many women were much working harder than me and losing money by the thousands. I got out. Once I was out for about a year I was able to step back and look at it objectively. You know what I found?
Consultants everywhere are talking about how hard it is to get parties. How hard it is to find and keep customers. How tired they are of their friends and family not "supporting" them. How they can't compete with eBay or even Target.
There are plenty of other ways for you to make a few extra dollars (and I will go in to those ways this weekend!). Any way that ends up with you begging the supermarket cashier to let you give her a "facial" just isn't worth it!
Thoughts?
Julie
Amen.
A dear relative was a consultant for a long time. She was totally in love with the product and convinced herself that maintaining a small warehouse in her basement was an efficient use of her "party" income. All her conversations turned to the latest planning/teaching/recruiting meeting preparations. She's been retired for about five years now and still can't find anyone to buy the junk she's accumulated.
M
I have to say that as a "guest" at those party, I often enjoy myself. I enjoy trying new things, seeing how things work. I like helping my friends get free stuff. That's not to say I love every party, but for the most part - I think it's fun. If we went out to eat or "brick-and-mortar" shopping, we'd be spending money anyway ...
As far as joining the business, I think it's important to get a real grasps on the reality of the business - how much are ALL the start-up costs? The kit may be one price, but you might have to purchase additional things as well. You also have to be very stingy with your spending - hold off from buying a lot till you start to reap some profits ... don't just dive in!
I do sell for a direct sales company, and I see a small profit. I've also learned a lot and met some great people (customers) who enjoy the products and parties. I'm very low-key, and if someone is interested in signing up ... I give them ALL the details. So, I don't see too many recruits 🙂 But I figure I'd rather keep them as a happy customer than risk them being unhappy with their consultant experience.
It's certainly not for everyone. You won't get rich quick (and I'd dare to say you won't ever get rich). Many direct sales businesses are oversaturated. Ultimately, and I think this is true in everything, don't spend money you don't have!
DianeScraps
I have been a Independent Consultant for two companies. Both times I did ok - but I never did either to make big bucks. I was with BeautiControl, because at the time it was the only thing that kept my skin from erupting, and while I was using it friends asked and started using it too.
I was with Leaving Prints, cause it was a cheap way to get access to more scrapbook supplies, and I was an total scrapbook addict (I still love scrapbooking, but I can make it through a day (heck, week or months) without scrapbooking now. But I didn't do the party thing, I taught some classes, mostly at crops, and I vendored at crops.
I have definitely had fun at parties, but when you only hear from certain friends because they are having parties, yeah that's not cool.
And oh yeah Warm Chatter - Ain't Cool! And I will run away from anyone in nylons trying to Warm Chat me!
DianeScrapss last blog post..Catalinas
Heidi
If I am interested in the product, I do have fun at the parties. If I'm not interested, I either don't go, or check with the host if it's okay if I come and don't buy anything at all.
I do LOVE tupperware though. LOVE IT! I think it's a great product and it is the only plasticware with a warranty so far as I know. However, you can now buy it on Ebay and TUpperware.com
IN fact, I was just looking at Tupperware.com 5 minutes ago:)
Otherwise, I do think you have a point that a lot of people make very little money and you should never believe that you are going to make a lot!
Heidis last blog post..Wordless Wednesday - 1st Day of School
Darla - UltraBeautyBoutique
pleadsthe5th HAHAHAHAHHAHA!
holly lang
I think you were a bit tough on direct sales, if you are a SMART business owner and do not make your decisions emotionally, you can build a successful business. I have been a MK consultant for over 4 years and have great customers who appreciate FREE SHIPPING and FREE HOME DELIVERY as well as personalized service. I do not do many "Parties" but focus on customer service. I am SLOWLY building a team and found that works best. In addition, I have a supportive and realistic director whom I know is an ethical woman. yes, you can get the product on ebay, but I would not want to use a personal care product that I do not know whose hands it has gone through.
Celeste Fland
I totally agree. I hate those parties and I hate feeling like I have to go. Yuck. The only product I have ever been happy with after purchasing is Longaberger baskets.
I very rarely go, now that I have been to about 4 I just say no thank you. I doubt I will ever allow myself to go again.