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Quite a few brand new home-based
businesses are started every day by stay at home parents who want to earn an
income. One popular type of business is the so-called "home party plan"
business. Some people equate the home party plan business model as multi-level
marketing or even "pyramid schemes" or cults. Do a search online and you're
likely to see certain names pop up as having been investigated by the
authorities at one time or another or as the subject of critical review by
former participants.
Before you shrug off this business model, you may want to know that several
well-known companies either started as home party plan businesses or are now
just getting into this lucrative arena. As an early pioneer of home party plans,
many of us are familiar with Tupperware. What do you call your re-useable
plastic food storage containers?
At its most basic, the home party plan type of business is a form of product
distribution through means of independent contractors or "consultants". Also
referred to as "Direct Sales" companies or businesses, most of today's home
party plans are set up so that the individuals who participate in the program
have access to the company's products that they then market to their circle of
family, friends or other associates. The consultant then gets a certain
percentage or a commission on any sales.
Typically presented as a "fun" way to have your own business, the idea is to
have someone "host a party" for his or her friends where you, as the consultant,
can show off your company's products and hopefully make some sales and secure
future bookings for more parties. A number of popular and successful direct
sales companies offer perks such as paid cruises or other prizes for their top
consultants. Some companies grant prizes or discounts to "hostesses" to
encourage more sales.
The other part of the home party equation is to expand your sales by recruiting
others to sell the product line and earning a further, albeit smaller commission
on your downline's sales. If you have access to a large network of friends or
people you can market to, the income potential can be quite good. Not every
direct sales company requires this, but most companies do encourage recruiting
new consultants.
The range of products or services that have been sold using the home party plan
system is amazing. Almost everything from artwork, jewelry, coffee to shoes and
purses can be and has been sold using the home party plan business model.
Despite the appeal of home parties, direct-selling is not a sure thing. Not
every one is good at selling and not every one likes to have products pitched at
them. So it's helpful to have a product that everyone wants or uses.
A home party or direct sales business is just that, a business. The Internal
Revenue Service recognizes that home-based direct selling businesses are
legitimate businesses and has rules for reporting revenue and expenses. You need
to maintain proper records, pay taxes on income earned, provide customer service
where needed and maintain a constant customer base.
A home party business requires discipline and effort on the part of the
consultant. However, many people have thriving and successful home party
business. You are your own boss and you can set the pace that you are
comfortable with in building your business.
Lily Chin is the webmaster for Mommy's Work at Home Place. Did you know that
Suzanne Somers recently entered the multi-million dollar home business market
with her own direct selling home party plan program? Visit
http://www.mommyswahmplace.com to learn more.
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