As Vice President of Distributor Interaction for a Party Plan network marketing business, I attended many conventions, training sessions, and distributor parties where I discovered six gems of knowledge I’d like to share.

Six gems of knowledge

Based on my observations, there are six things Party Plan distributors should know and do:

• Party Plan and MLM not created equal.
• Represent a fun product.
• Choose a product that targets women.
• Announce host/hostess rewards.
• Never overstock your wagon.
• Be the sales person you want to buy from.

Party plan and MLM not created equal

Should Party Plan distributors develop their business differently than MLM distributors? Absolutely!

Key Party Plan and MLM Differences

Party Plan

• Offers an appealing hostess rewards plan.
• Focused on personal sales and hostess sales.
• Emphasis on the distributor/hostess relationship.
• Hosts/hostesses must be treated as customers because they’re not members of your business (yet).
• Tends to be more steady–linear income.

MLM

• Offers an appealing sponsorship rewards plan.
• Focused on personal and downline sales.
• Emphasis on the sponsor/enroller relationship.
• Sponsor/enrollers treat each other as partners and members of the same business.
• Tends to be more unsteady – exponential income.

Understanding these crucial differences will help you run forward and not in place. Party Plans and MLM are not created equal–accordingly, their formulas to success aren’t either.

Represent a fun product

As a Party Plan distributor, it is essential to represent products that are fun and actually appeal to a group of potential buyers. Why is a Mary Kay party generally more enjoyable to host than a health drink party? Why are scrap booking parties more enjoyable to host than a telephone service provider party? Parties are called parties because they are fun! They require products that generate valuable, but at the same time, enjoyable experiences. Most purchases are based on emotion and fun products spawn good feelings, which result in more sales.

Choose a product that targets women

In my experience, it has become evident that products that target women, target success! Many reports I’ve read have documented that over 80% of all network marketing distributors are women. I believe women are naturally better networkers than men, and in most cases, are crucial to Party Plan success.

Products that are marketed to both men and women are a double-edged sword. Targeting only one of these market segments tends to draw more attention and be more effective. Choose your demographic wisely!

Announce host/hostess rewards

Make sure that your hosts/hostesses know the reward possibilities before you send them on their way to invite family and friends to their party. Then, at the party make certain you announce to everyone the rewards available to a party host/hostess. For example, the distributor can say, “As hostess, Sally Shopper is receiving free and discounted product rewards based on the success of this party. Please come chat with me or call me at the number on my business card to schedule your party and receive hostess rewards.” It’s a good idea to also offer an extra incentive for those who will commit to host a party before the end of the current party.

Never “Overstock Your Wagon”

”Overstocking your wagon” is another expression for front-end loading–an unethical practice of misinformed direct sales executives and top distributors for selling downline distributors excess inventory in order to receive more commissions. It is financially devastating to the distributors, who fill up their garages with products, rather than their wallets with profit.

Unfortunately, there is no one-size-fits-all solution when it comes to deciding how much inventory you should purchase. Generally speaking, Party Plan distributors tend to need more products on hand than MLM distributors. Based on my experience, here’s the general rule: sufficiently stock your wagon for the typical one to three month inventory turnover. Remember, discouragement kills distributorships and dusty inventory triggers it quickly!

Be the sales person you want to buy from

Don’t be the used cars salesmen you see on TV! You are a buyer and a consumer, just like everyone else. You know how you want to be treated and approached when looking to buy. Just because you become a network marketer, it doesn’t mean you shouldn’t be the same person you were before.

Success as a Party-Plan distributor doesn’t require smooth talking, an attractive appearance, or extensive knowledge, although these attributes may help. The key to success in Party-Plan is a genuine belief in 3 things:

• Your product.
• Your business opportunity.
• Yourself.

People like to feel they are buying of their own good judgment as a result of the information the salesman has given them.