Home party businesses have been around for as long as I can remember. They are a fun way to make money as a demonstrator/seller and they are ideal for the home manufacturer to sell their products. Sales through the home party business system are now bringing in nearly 30% of all sales make in the US.
Who Would A Home Party Businesses Suit?
Take for example a person who is making their own products such as candles, soft toys, jewelry, wood crafts, pottery, or any other product that it is possible to carry around within reason. These products are great for a home party business and as I said, it can be the maker that sets up a party system or a person can work for someone else.
I had a ceramic studio and at the time hand painted ceramic bowls, dinner sets, vases, pot plant holders and the like were the rage. I set up a couple of women with a range of items and they created a very nice little income for themselves. This gives gives women flexible hours and a social outlet at the same time.
How Would You Set Up A Team
From the makers point of view you can make this style of selling as simple or as complicated as you like. I knew the craze for hand painted ceramic ware was not going to last for ever so I only put on three moms, but if you have a more everlasting product like jewelry, candles, herbal oils or wood ware then you may like to run it as a bigger business.
If you do want a larger team then you probably need to have a sales manager/demonstrator who runs a team for you. There are plenty of experienced party demonstrators out there and it should not be too hard to set yourself up in this type of small business.
Alternatively you may have a partner who would be prepared to take on this role and organize a sales team for you so that you can still concentrate on making your product or at least organizing the making of it.
The benefit of have a team is that if one is not performing the chances are another is or if one stops working then you still have some working while you replace another.
If you have a team you may have to buy a line or two of product to keep your supplies up. So read about buying products for home party demonstrations.
Selling in this way does need some very careful planning before you take off in terms of:
- having enough stock to start
- the paperwork to cover all eventualities with the selling side of things
- knowing your commission base (leaving profit for you too)
- selling agreements for the sales people
- packaging of products
- method of delivery
- who is going to do the book work for the sales, prepare the orders and get them away
You can see that there is quite a bit of work to be done to get this type of business up and running but also during its operation. But as long as you cost it all the right way then you could find it to be a very lucrative business.
Selling in numbers is always a good thing but of course you are then a manufacturer/wholesaler in this situation so you have to realize that your profit is smaller per item than it would be if you personally were selling at a market for instance. But then again with an active team you will be making good money anyway.
Financing The Business
Because stock is involved in this type of business there does need to be enough finance to make sufficient stock and finance to increase stock levels if need be, especially if you have a product that suits presents at Christmas time where you need to make stock several months in advance before money starts coming in. Alternatively if you are buying all your stock or just some of it, you will need to order for Christmas well in advance so that you get your order in well before Christmas because you don’t want to be out there taking orders for products you do not have.
I would have to say that this type of business was a lot of fun and I feel one that has a good future if you have the right attitude. There certainly are lots of benefits to running a home party business.
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