People often ask about the differences between Direct Sales, Party-Plan sales and Multilevel Marketing and if you are looking for a home based business it is important to know the difference. Some models will give you immediate money and no residual income others will give you residual income and not much up front. It Works! Global is a hybrid company with an MLM compensation plan but we also love to do parties! With the It Works play you generate money right away and also long term through residual income. More and more traditional companies are adding these models to their sales modalities.
Companies that have traditionally sold their products through “conventional” distribution channels (people going to the product) are now recognizing the potential of Direct Sales, Party-Plan sales and Multilevel Marketing to achieve spectacular sales momentum. The reason being that they can lower advertizing costs and promote to a larger market because people are selling direct to others. There are subtle but important differences between the three methods of person-to-person selling.
Direct sales: A direct-sales representative is a commission-based independent contractor. The salesperson writes up a sales order and sends it to the company; the company normally ships the product directly to the customer. Usually there is no need for the salesperson to stock any products other than demonstration items. You purchase from their catalog. Fuller Brush was a direct sales company that came to my house when I was a child.
Most direct-sales products require a reasonably sophisticated level of training on proper sales presentation techniques. Your income is only based on sales you personally produce. If you become a sales manager, you receive a commission override on the sales efforts of those you train and manage.
Party-plan sales: Most women have attended a home party offered by Tupperware, Home Interiors, Discovery Toys or other successful party-plan companies. In comparing direct sales to party-plan sales, two significant differences exist.
First, the distribution channel is simplified because the product moves directly from the distribution company to the party-plan host or hostess to be distributed to customers. The host or hostess is a volunteer ambassador for the products who can earn gifts, cash or credit toward the purchase of his or her own product selections. The independent representative is ultimately the catalyst for the retail sales of the product at the party.
Enticing the party customers to return to future parties is critical to ongoing growth. This is accomplished by introducing new products, offering discounts to past customers, and making sure the customers have fun and look forward to a repeat performance. They can sponsor new independent sales representatives on whose future sales they will realize a small return. If you stop working your party company because you are sick or you don’t want to do it any longer, all of your income stops.
Multilevel Marketing: MLM companies account for billions of dollars in annual sales and are estimated to influence one out of every three homes in America with a marketing-related contact. Today, virtually any consumer product or service is open to Multi-Level Marketing distribution.
Through MLM, also called network marketing, the direct-selling process is duplicated by salespeople who sponsor and train others. An ever-increasing income stream can be generated through bonuses on sales made by several levels of downline distributors. The commissions and bonuses are paid directly to the MLM representatives, rewarding their efforts for selling products and sponsoring others who sell products and sponsor others and so on. As your team grows your income does too whether you are working or not. The vast majority of MLM representatives work part-time to build a second income while continuing their full-time jobs, which is the way I did it. MLM leaders with hundreds or even thousands of part-timers in their organization can truly earn incomes beyond anything seen in traditional business, direct sales or party-plan sales.
It Works! Global is an MLM and not a party company, yet we use the party format to get in front of more people and share the experience of the products. Our Ultimate Body Applicator has to be experienced and when experienced in a party setting, it generates a lot of excitement, because people are seeing slimming results on their body in 45 minutes.
When we do a party we get paid immediately because guests pay between $25-$30 to try the Ultimate Body Applicator. If you have 10 people in the room you leave with $300. Not only that but orders generated by the party are sent directly to the company where they are shipped directly to the customer. Attendees can also try our facial applicator and sample our new ProFIT superfood protein shake and our Greens and see demo’s of our Fat Fighter, so they get a comprehensive understanding that our company sells more than just “Body Wraps”.
There are so many ways to sell the It Works products that you are not confined to the party model. Our pay is not based on doing parties or the number of parties you do. We do parties because they are fun!
If you can’t make it to a live wrap party, we have added an online version of the wrap party that can be experienced in your own home right on your computer. You are taken through a similar process where you learn about the products, be able to watch videos, download information and are able to purchase so you can try them on your own, which is really simple. There is no pressure to do anything but enjoy the party. Click Opportunity to join the fun!!