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If you’ve been looking for small or sideline make money opportunities you’ve probably come across party plan schemes. But what exactly is party plan... and does party plan selling really work?

First of all, I know what you are thinking - Tupperware. Tupperware was probably one of the most famous party plan operations ever but you shouldn’t let that lead you to overlook what is a very diverse business. There is much more to party plan than plastic storage boxes!

What exactly is party plan selling?

Party plan is essentially a variation on the concept of direct selling. For another useful What Biz Opp article on direct selling see here.

Basically when you become a party planning agent or consultant you’re required to find customers willing to host parties in their own homes. You attend the parties and demonstrate and sell whatever product it is you’re handling. You get paid a commission on whatever you sell, as does the host of the party.

You can run your business from home, part or even full time. You may need a small amount of capital to buy some stock, and for initial advertising. You will also need to be well organised and have a friendly, outgoing personality.

What kinds of products can you party plan sell?

As I said there is much more to party plan than plastic storage boxes. Here are some of the other products that are sometimes sold by party plan: Kitchenware. Cosmetics. Clothing. Jewellery. Baby products. Toys/gifts/cards. Books. Crafts. Health and fitness products. Utilities. Foodstuffs.

How do you start a party plan business?

This is an interesting aspect of most party plan opportunities: you usually enter the scheme by signing up with an existing consultant for the scheme who mentors and supports you. They earn a commission on your sales. In turn, you can sign up consultants beneath you and earn a commission on their sales.

Important checks to make before joining a party plan scheme:

Most party planning schemes look very enticing. But it’s important to make a few checks before joining up as a consultant:

• Do people actually want the product you’ll be selling - and is it competitive on price? If you’re selling a very obscure product that not many people need – or if it’s cheaper in the shops – you’ll find it an uphill struggle to make sales.

• Will you be able to find enough people who are willing to host parties in their own homes and invite their friends? This is one of the trickiest parts of many schemes. Again, it depends to some extent on how attractive the product is.

• How much commission do you earn on each sale? Also bear in mind how many you’re likely to sell and what your overheads, such as transport and marketing, will be.

Note: Many party plan schemes also offer you commission on the sales made by any consultants you sign up beneath you. But this kind of network takes time to build up.

• What’s the financial outlay? With most party plan schemes you have to buy a ‘starter pack’ or even buy some initial stock. Bear in mind you’ll actually need to make some sales to get this investment back.

At the end of the day party planning is a genuine small business opportunity. But do take time to check everything thoroughly before you commit yourself to it.

by Steve Markman Financial Expert Steve is a financial opportunities expert and editor of the Market Maven. He has several years experience as a trader. You can sign up for his free weekly eletter here: Recent Articles by Steve Name Email

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