Too Good to Be True

You know the saying If it's too good to be true, it probably isn't" and that is the case with a Home Party Plan business. For those of you less familiar with the term home party plan, these are the companies whose reps come into your home and set up a display for your family and friends to shop at and you as the hostess get some sort of reward.

Many of these reps and companies promise executive income for part time hours and of course "the product sells itself". Many people sign up hoping to dig out of credit card debt, or to make ends meat or even just to have extra cash, because after all, its easy and takes no time at all.

When you start looking for someone to sponsor you in the home party business and they tell you its easy and the product sells itself, run don't walk in the opposite direction.

Home Party Plans (HPP) are a convenient way for individuals to increase their income, around their current schedules, but it requires work. Even if the product (and jewelry is one of those) sells itself, you still have to get the product in front of people for it to sell itself.

Can you find a HPP that is inexpensive to join, that requires part time hours and that will yield a return on your investment? Yes you can.

First and foremost find a product you like, and that you think you can sell. For example I sell Fine Sterling Silver Jewelry, I cannot wear gold (we turn green - the jewelry and me) but I can wear Sterling Silver (as long as it has no nickel) so Sterling Silver Jewelry is the business for me.

There are people out there who will tell you a consumable product is best, but I will tell you if you love your product and your company you can sell anything.

Next find the company that carries the product you love. Do some Internet research and find out what you can about these companies. How long have they been in business? For me this was a key point. I wanted a company that was ground floor, and debt free. I found that with AuraStella. How many consultants are in your state and general area? If a company won't tell you this information before you sign up, I don't recommend signing up with them. I asked my sponsor how many reps were in my area and she sent an email to the company owner, who emailed me directly (within 24 hours) and told me the number of consultants in my state (less than 5 and all of them 2 hours away) she also offered to call me and answer any other questions I had directly.

Now that you have selected a company speak with several different reps from that company. Unless you are able to sign direct to the company the person who sponsors you is responsible for helping train you, and you want someone you can speak with and feel a connection with.

You do not have to sign with the first person who you speak with, and if that is the company policy then the company isn't looking out for you. Beware of sponsors making deals to get you under them, let the person persuade you not the free stuff, because when the free stuff is gone you still need to person to help you.

Look at the comp plan. If you don't understand the comp plan ask questions, and ask as many times as it takes for you to understand. The comp plan is important if you want to make full time income. There are lots of women in the HPP business that are making great money without recruiting, but the ones who are consistently on top, have built a team.

Ask yourself the hard questions.

1. How Much Money do you want to make per month?
2. Based on National Party Average (the numbers they put on the websites and local party average) how many shows per month do you need to do to reach that number? Now add 1
3. Can you commit to doing that many shows each month?
4. Can you commit to spending some time each day on the phone and in person with people building your business?
5. Do you have a support network?

Now lets get down to the brass tacks. You want to start this business to make more money, so why should you spend a ton of money to get started? I know the saying you have to spend money to make money, but not in this business.

For my example, I paid the minimum start up costs ($165 pays for one full year as a consultant, a web page with e commerce, credit card processing and basic business supplies). I had the option to buy jewelry at 50% off one time in my first 90 days. I did not take advantage of that option. Instead I just got started. I booked shows with nothing more than a catalog in hand.

Before you sign on the dotted line take the catalog(s) around to people and ask them what they think, would they be interested in the host rewards (in my case free jewelry) and would they help you out by having a show or giving you one name?

Ask if the company allows you to be your own hostess. Have a show invite all your family, friends, neighbors, etc. and ask them what they think of your intention to start this business. From you show book your first 6 shows, then use the hostess credit to get pieces to show and sign up.

That is where I started.

Total out of pocket cost to start $205 (sales tax and shipping and handling).

Next time. Where to find leads.