Wednesday, April 23, 2008

Home Party Plan – Creating a Referral Plan that Works


One of the most frustrating parts about building a successful home party plan business for new consultants is creating a referral program that consistently brings in a steady stream of new leads.

It’s actually not as difficult as it sounds, and the sooner you put these simple techniques to work for your home party business, the quicker your business will begin to grow.

Here’s how to get started:

First of all, think of the last time that you experienced truly excellent customer service. What do you remember about the experience? What did the salesperson or representative do that made it stick out in your mind?

Sadly, getting excellent customer service has become such a rarity these days that when we do find someone who understands what it means and practices it in their business, we do remember it – and so will your customers.

Creating an excellent customer service program will also help to generate new leads and referrals to your business, because people will not only tell their friends, family, and contacts about you (usually without you even having to ask), but they’ll also be happy to send referrals your way when you do ask them to.

Start with your own customers. You’re going to create a “Preferred Customer Program” and let your customers know that they qualify for extra special services. What’s wonderful about this is that it will make your customers feel special, and it’s not expensive or time consuming, as long as you stay organized.

Create a simple database – either on your computer, or do it by hand using recipe cards and a card box. Under each customer name and contact information, include the personal information that you have – for example, birthday, anniversary, spouse and children’s names, hobbies, likes, etc. Then, add additional information relating to your product line. If you sell cosmetics for example, what is your customer’s skin tone? Facial shape? Best feature? What are her preferred colors (warm/cold, summer/winter, etc.) What products does she buy all the time? Favorite fragrance? Add this information based on the products you sell and she likes.

For first time customers, put together a simple one page survey or online survey. Invite your customers to fill it out – and tell them that you’ll be happy to let them know when sales of their favorite products are coming up, so that they can save money! And then follow through. Your customers will be delighted, and as you build trust and respect, you’ll also notice that your sales continue to grow.

Every month, go through your list of birthdays, anniversaries, or other special occasions for the next month, and add them to your calendar. Taking the time to send an email, postcard, or greeting card lets your customers know that they are important to you – and that they mean more than the money they spend with you. Pay attention to what’s going on in your customer’s lives, and be ready to ask questions, congratulate special occasions, or comfort during times of trouble. Because almost no one takes the time for these little extras any more, you – and your home party plan business - will be remembered.

Set up a Customer Referral Program. Make it fun and reward customers who refer other customers, hostesses, or recruits your way. For example, you could offer monthly contests, with a product or special prize to the winner. Or offer a special discount or reward program so that customers can earn gifts, products, or discounts on their next purchases. One popular method is to use a points system, where points can be accrued over time – and the more points someone has, the bigger or more expensive prize they can earn. Set up a point system for things like referring a new hostess, or someone who is interested in becoming a consultant, or hostessing a live, online, or catalog party.

One caution – create a system that is easy to use right from the beginning, and preferably one that is automated, to save yourself lots of administrative time down the road. You want to be able to stay on track with your referral program and keep it organized, or it can quickly become a nightmare! Include information about your referral program in all your hostess kits and other marketing materials.

Train your recruits to recruit. Don’t forget to take the time to teach your recruits your recruiting and referral methods, too. Remember that their success helps to build your own. Share your methods with them, and provide ongoing training and support.

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Starting Your Own Home Party Business


A dilemma faced by many women today is how to stay at home with their children and still bring in an income, whether it’s to help pay bills or just have some extra money for life’s little luxuries.

One of the fastest, easiest, and least expensive ways of doing that is to start your own business as a consultant for a direct sales company. Also called home party businesses, there are over 43 million direct sales representatives around the world, and about 12 million just in the United States alone. The majority of direct sales reps are women, who go into business for themselves so that they can work part time, set their own hours, and have the ability to make as much money as they want or need, based on the number of hours they’re willing to put into their business.

If this sounds like something you’re interested in, then here are some things you need to know:

There are as many different direct sales companies and home party businesses as there are direct sales representatives. Most sales reps recommend that new representatives choose a company based on their interests and products that they would want to buy themselves.

Being passionate about your business goes a long way towards your ultimate success as a direct sales rep, especially during the times when you’re struggling to get bookings, recruit other reps, or even marketing your business.

Before starting your research, sit down somewhere where you’re not going to be interrupted for at least 30 minutes, and think about what you want and need from your business.

What are your goals? How much money do you want to make a month? How many hours do you want to work? Think also about your personality – is a home party business going to be right for you? Do you like meeting and talking to new people? Do you like going out or going to parties? Are you motivated? Are you able to stay focused and on task? Do you tend to procrastinate? Although anyone can learn how to become a successful entrepreneur, it will be harder for you if you have to learn new habits at the same time you’re trying to build your business.

Once you have a clear idea of what you want and need from your business, then it’s time to start doing your research about the different companies that are out there.

Make sure to thoroughly check out any home party company that you’re considering becoming a representative for. You’ll want to make sure that they have a good reputation, that they guarantee their products, and that other reps are satisfied.

The percentage of your commissions, the cost of the initial sales kit, even the rate and schedule of pay should all be taken into consideration. Don’t just go by the sales literature – you want to figure out how much money you need or want to make a month. Then look at the amount of commissions you can make per party, and how many parties and how much in total sales you’ll have to make in order to reach that goal. If reaching your goal is going to require you to work longer hours or more than you’re willing or able to commit to, then choose another company.

You’ll want to be aware of any company that charges a really high amount for a sales kit, or requires you to pay for training. Also, your earnings should be based on the products or services you sell, and not on recruiting more people in under you. In fact, any time you’re told that your largest commissions are based on the number of people you recruit or the memberships you sell, be careful. Often times these types of companies turn out to be pyramid schemes or scam companies.

Also, check into the company’s return policy. You should be able to return any unused or unsold merchandise with no questions asked. If the company doesn’t have a clear and open buy-back policy, make sure to get it in writing before committing or signing a contract.

Don’t fall for the promise of easy money. Instead, find a company whose products will help you to build a real, growing home party business of your own, a company that you’ll be proud to be associated with, and that will help you to achieve your goals.

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