Top Five Reasons to Grow Your MLM Business via the Party Plan

Why should you grow you direct sales or MLM Business via home parties?  That is a million dollar question that I hope to answer today.

Let me start by telling you that the party plan is when you have a host invite over some of their close friends and family members, and you go to their house to demo the products and make sales in a group atmosphere.  Typically, the meeting lasts about one hour (90 minutes max). During that time you demo some products, tell a few jokes, answer questions, pass around some catalogs, give out some samples, talk about the business opportunity and take orders.

This business building strategy lets you work smart by talking to five to ten prospects at once, rather than building the business one-on-one.  Not only can you work smart, but it’s also a lot of fun.  People love to get together and socialize and buy stuff.

As I see it, here are the top five reasons to use the party plan to grow your MLM Business:

1) Educate Your Customers: My favorite reason to use the party plan is to educate my customers about the products and business opportunity. When you have a home party, you have your customer’s undivided attention for one to two hours. You can let the prospects touch the products and demo the products. You can also discuss the features and benefits of the products.

In my experience, I’ve found that the best way to sell something is to educate your customer on the benefits of your product. Show them how the products will help them.  This is frequently referred to as reverse selling (letting the customer sell themselves).  It’s also beneficial that the customers can handle the products, look at it, smell it, taste it, etc.

2) Find New Customers: Customers are the lifeblood of any direct sales business. When you conduct party plans, you typically find five to ten new customers at each event. If you provide great customer service, many of these customers will become repeat customers. This gives you immediate and future profits. And several of your happy customers will normally agree to host a party at their house, which helps build momentum in your business.  Heck, you might even find a few people at the home party who want to join the business.

3) Work Smart: Rather than trying to sell your products one-on-one, it’s much wiser to sell your products in a group setting. Instead of selling one product to one customer at a time, you can sell the same products to five to ten different people at once. This lets you work smart and produce more profit in your business, in the same amount of time.  This is a great strategy for anyone with a full-time job and family commitments, who wants to build a big network marketing business, but doesn’t have a lot of time.

4) Generate More Sales: When you use the home party plan, you generate more sales volume in your business. If you can do one or two home parties each week and each party has five to ten guests, you are going to make a lot of sales (and a lot of money) in your business each month. If you were going to try to reach those same amount of people one-on-one it would take you 10 times longer!

5) Have Fun: Party Plans are fun. They are a great way to meet new friends, generate more sales, socialize, make money and have fun at the same time. If you’ve never done a party plan before (or attended one) you don’t know what you are missing. Just remember that most people love to have fun!

*** Here are a few additional reasons to use the party plan.

My Experience

During my time in Amway (2002 – 2004), I frequently used the party plan to demo different Amway products to my downline distributors and potential customers.  I’d invite a bunch of people over to my apartment and then demo five or ten different products.  We ate snacks, laughed, had fun, and I made some sales at the same time.

I found this to be a very beneficial way to educate my downline and customers about the different features and benefits of the products. Typically, this led to increased product sales and larger bonus checks.  It was also lots of fun.

You can use the party plan to acquire new retail customers or with your current downline distributors. Either way, you will educate each person about what the products have to offer them.

Getting Started with Home Parties

If you are just getting started, I highly suggest you have a “business kickoff” party at your own home.  Invite over all of your friends and family.  During the party, focus on booking follow on parties at your guests’ homes.  Your goal is to start with your own network and then expand into their network of friends and family. If you can book 1-2 parties at every party you do, you will never run out of referrals.

I also suggest that you educate yourself about how to do home parties the right way.  There are plenty of great books on the topic on Amazon.  In addition, you can talk with someone in your upline who has experience with home parties and see if they will help you get started.

Final Thoughts

The bottom line is that home parties are a great way to build your network marketing business. They let you work smart and expose your products and business to five to ten people (or more) at once.  They’re fun, fairly easy to do and very profitable.

Your key to success is to educate yourself on how to get started and learn as you go.  Don’t wait until you are an expert to get started or keep getting ready to get ready.  By the time you’ve done a few parties on your own, you will definitely know what you are doing.

What are your thoughts? Do you use the home party plan to grow your MLM Business?  If so, what type of experience have you had with it?  Leave a comment below to let me know what you think.  I look forward to hearing from you.

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8 thoughts on “Top Five Reasons to Grow Your MLM Business via the Party Plan

  1. Nicole

    I think a kickoff business party is an excellent plan. You can sell products, sign distributors and schedule more parties all at one time. I think you will build momentum quickly for your business by doing a few home parties a month. Give your hosts great incentives and you will always have a host for your parties. I also think, home parties are great for training new distributors. They can host a party or two before trying to do the presentation and you can host parties for your downline so they can practice in a safe environment and you can step in and help if they get off track.

    Reply
    1. chuckholmes Post author

      Yes, home parties are a proven way to build a network marketing business. People have been using home parties for more than 50 years now, and they are still very effective.

      Reply
  2. Faye

    I agree: home parties are the best way for many MLM representatives to sell, sell, sell. At least to new customers. Hopefully, existing customers are already on your auto shop plans because your products are so great and you did such a fantastic job selling them.

    Home parties are the perfect setting: everyone is having fun catching up with their friends, and the hostess is getting to show off her home. Food and beverage parties are the best for the hostess, because then even the pressure of having to figure out how to feed and entertain her guests is gone. If people love the products, they can order them right then and there. (The perfect MLM consultant has plenty of product on hand so that she can fill orders immediately. Not only does the customer get immediate gratification, but the sooner the customers consume those products, the sooner they can order more.)

    Reply
    1. chuckholmes Post author

      I’ll have to agree with you on this one. Having home parties is so much fun and very profitable. Once you’ve done five to ten parties on your own you should be an expert and be very good at making sales.

      Reply
  3. Greg Boudonck

    Parties are a great idea to bring in new distributors and/or just get direct customers.

    As you stated, by having a party, you control the atmosphere and can have the attention you need to get all the points you have across.

    I suggest also having a couple games or contests and give one or two small products away. Of course, this depends upon the type of MLM you are involved in.

    It seems that for most types of network marketers, a party plan would work. You could even cut costs and make it a potluck or a picnic at a local park or lake.

    There are many ways to go about this. It is a great plan.

    Let’s party!

    Reply
  4. Chrystlyn Edwards

    I think building a direct sales and/or MLM business through a party plan is an excellent idea. The combination of educating customers with the potential of gaining them as clients and socializing is great because not only do you get to mix business with pleasure, but you are also making a profit. This is excellent advice for a novice in this industry.

    Reply
    1. chuckholmes Post author

      It is an excellent idea. Our industry was really started as a party plan industry. Most of the biggest and most successful companies around still use this approach.

      Reply

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