Home Party vs. MLM?

carol_red.jpgCarol Rice, Start Up Princess of Cherish Bound has become a Fairy Godmother to me as I’ve considered a home party business model for sweet & charming. We recently had a very interesting discussion about successful home based parties, (including hers)! Cherish Bound is a home party business that helps customers create and publish their own beautiful digital photo albums.

While Carol and I were chatting about all of the successful national home party companies out there–Tupperware, Pampered Chef, Mary Kay, Discovery Toys, Stampin Up…she mentioned something that really stood out to me. She said that if you have an excellent product that can sell itself without a rep adding value, create an MLM (multi-level-marketing) company because it is a faster growth model. However, if your rep will add value to your product and help it to sell, then the home party model may be ideal for you.

So, that is why Carol created CherishBound as a home party business model. Their reps help customers and “add value” to their product/services because they demonstrate how to create your own album…makes sense. Her reps are trained and offer ideas and suggestions so that the end product is excellent.

Thanks for the tip, Start Up Princess, Carol! To learn more about Carol, please visit her Start Up Princess profile page.

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  1. Marianne

    what’s an mlm?

  2. Thanks Marianne for reminding me that everyone doesn’t know what an MLM is, it’s a multi-level-marketing company. NuSkin, Morinda (Noni), Xango, Nature’s Sunshine…all of those are MLM.

    Cheers!

  3. I know home party’s work well for people working their mlm home business. It’s beats buying mlm lead and start working the phone calling people you don’t know. Home party’s are working well for many people in the mlm business that I’am working.

  4. Hi William, thanks for your comment, I agree that MLMs can have successful home parties. What I was referring to in the post is how to structure your company at start up…when you’re starting out, do you want to set up the company with MLM pay out or have Home Party reps? If you need to tell people about the product for it to work well, such as Mary Kay consultants (MLM) or Pampered Chef (MLM) reps doing demos…those companies are structured best with Home Parties. Morinda’s Noni juice (MLM) however, doesn’t need a Home Party, you just give someone a taste and that’s done.

    Cheers!

  5. Leigh

    Startupprincess-

    I work with a mlm that has a great product line and in the past has not really ventured into the home party line. They have a new product coming out in a few months and home parties seem to be the way that work really well. I have been to a few home parties for other companies, but never hosted a party. What do I need to do to have a successful party and how long should the presentation last? Also, how would you go about advertising?

    Thanks!

  6. Leigh,
    I’m not an expert with homeparties but I’ve been to a few and had 2 successful ones for my sweet & charming business in December. In my opinion it really depends on your product, perhaps you could elaborate on what kind of product it is. However, to answer your questions:

    I like open house style parties instead of a set time. If it absolutely requires a set time like there’s a detailed demo, then make it 30 min or less and tell the guests that the party will last 1 hour, time to gather, demo, and buy. If it’s with friends then you could do it a bit longer, I suppose. Get to the point, make it fun, and always have yummy food/good music. Also I would say that if you want 20 people there, invite 60. We invited 50 and got 25 to one and the other 20 people were invited and 25 came (but that is very unusual). I also recommend postcards 1 week ahead for invites and then call each person also two days before. I had a graphic designer make ours, but your company might provide postcards.

    Feel free to ask more questions.
    Best of luck!
    Kelly

  7. Thanks Kelly!

    The company I work with is a R&D company that has focused only on nutritional suppliments until now. They have a new line of skincare products that are not yet available in the US until March 2007. They are fabulous products that are Preservative free, anti-aging, fragrance free and colorant free just to name a few things about the skin care line. I want to be proactive in getting the information out to people before the products are available to buy. So at this point, I would only have a short video and ppt slide show. What ever suggestions you have would be great!!!

    Thank you so much!

  8. You bring up some interesting points. I have found that there are some companies that combine both. When I was in Market America 6 years ago – I was encouraged to have a home party and find several customers, it was tough work – so it might have been the products. Now however, I market everything almost exclusively online or over the phone. But a hoome party might be a good idea – thanks for the insight!

  9. Thanks for the visit Matt. It’s true that all products don’t lend themselves well to a homeparty, online is great and easy if you get traffic, right!?

  10. Very good read…. Never thought about having a Home Party before.




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