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View Full Version : Difference
SweetDanielle
04-30-2007, 06:32 PM
Hi Everyone,
I just wanted to know the difference between home party plans and mlm companies?
Thanks,
Danielle
I just wanted to know the difference between home party plans and mlm companies?
Thanks,
Danielle
bsballmom
04-30-2007, 06:45 PM
from my understanding (and I could be wrong LOL) with an MLM company you really don't make any money until you get others in the business. It is not so much from customers as from getting others to join. That is where your money is.
With home party plans you make money from your shows. You do not have to get anyone to join to make money. Of course you make more if you put together a team, but it's not mandatory and you can make a great income without having to have others join up.
HTH
With home party plans you make money from your shows. You do not have to get anyone to join to make money. Of course you make more if you put together a team, but it's not mandatory and you can make a great income without having to have others join up.
HTH
clatham
04-30-2007, 07:04 PM
Hi Danielle,
Well, I've now done both the party-plan and the MLM. Just last year I joined a new party plan company and ran with it! I recruited (expos, craft shows, advertisements, etc.) and I spent an incredible amount of $. Thousands to be exact. What did it get me--well, yes, I did promote to Director within 6 months and I earned their first directors trip to Mexico. I recruited 16 people in all and what do I have to show for it--not much. The most I ever earned in commissions from my team was $1,100 in November. The remaining months, I earned under $300.00 in commissions. I paid for all postage, I had to handle returns, I had to track down the hostess and meet with her before the party to get the invite list, etc. It's not just the evening of your party (3 hours min. away from home) that you're spending time away from your family--it's a lot of time. Many phone calls, reminder calls to guests, etc. I just ran out of time to get everything done and be able to keep up with my 3 children (11, 9, and 7) and their schooling and sports schedule. I was tired of missing out on my evenings home with the family.
Everything happens for a reason...While at an expo, I met a woman who introduced me to MLM--network marketing. Believe me---I was incredibly skeptical--just losing a lot of $ in the last direct sales company. However, I listened and did a lot of research, etc. I flew out to Salt Lake City to check out the company and the product. The key to MLM's are to make sure it's a solid company and a product that you belive in and can easily promote to people. It's simply, word of mouth--we all know that word of mouth is the best form of advertising. MLM involves a lot of time on the phone--making contacts with your current family, friends, etc. But this means you are at home--no invites to mail out, no evening parties, etc. They begin taking the product, they tell others about it and those people call you wanting to hear more about it. MLM does involve bringing people into the business. The more business builders you have under you, the faster and bigger your business grows.
Also, be careful of the pay plan. It must be a solid plan. You just need to check things out!
Best of luck!
Well, I've now done both the party-plan and the MLM. Just last year I joined a new party plan company and ran with it! I recruited (expos, craft shows, advertisements, etc.) and I spent an incredible amount of $. Thousands to be exact. What did it get me--well, yes, I did promote to Director within 6 months and I earned their first directors trip to Mexico. I recruited 16 people in all and what do I have to show for it--not much. The most I ever earned in commissions from my team was $1,100 in November. The remaining months, I earned under $300.00 in commissions. I paid for all postage, I had to handle returns, I had to track down the hostess and meet with her before the party to get the invite list, etc. It's not just the evening of your party (3 hours min. away from home) that you're spending time away from your family--it's a lot of time. Many phone calls, reminder calls to guests, etc. I just ran out of time to get everything done and be able to keep up with my 3 children (11, 9, and 7) and their schooling and sports schedule. I was tired of missing out on my evenings home with the family.
Everything happens for a reason...While at an expo, I met a woman who introduced me to MLM--network marketing. Believe me---I was incredibly skeptical--just losing a lot of $ in the last direct sales company. However, I listened and did a lot of research, etc. I flew out to Salt Lake City to check out the company and the product. The key to MLM's are to make sure it's a solid company and a product that you belive in and can easily promote to people. It's simply, word of mouth--we all know that word of mouth is the best form of advertising. MLM involves a lot of time on the phone--making contacts with your current family, friends, etc. But this means you are at home--no invites to mail out, no evening parties, etc. They begin taking the product, they tell others about it and those people call you wanting to hear more about it. MLM does involve bringing people into the business. The more business builders you have under you, the faster and bigger your business grows.
Also, be careful of the pay plan. It must be a solid plan. You just need to check things out!
Best of luck!
bsballmom
04-30-2007, 07:57 PM
That's why there's different strokes for different folks - LOL.http://www.wahm.com/forum/smileys/smiley36.gif I lost my shirt on an MLM plan and nobody wanted to have anything to do with them. With the party plan I am in, I love it!!! I make a fantastic commission, I do not have inventory, I don't do deliveries, I don't handle returns (all returns are handled directly between customers and the company), we have evites on our websites that we can use, etc. I only work on my schedule - and around my family functions.
I love it and the money is great!!! Even at an "advisor" level (non-mgmt) we make a great commission - and there is no pressure to recruit if you don't want to.
My recommendation would be to check into whatever you want to do and research it well. Each company has their own pluses and minunes and finding what is right for you is the key to your success.
I wish you well in whatever you decide to pursue and I'm sure others on this board will also share their experiences with both MLM and party plan.
I love it and the money is great!!! Even at an "advisor" level (non-mgmt) we make a great commission - and there is no pressure to recruit if you don't want to.
My recommendation would be to check into whatever you want to do and research it well. Each company has their own pluses and minunes and finding what is right for you is the key to your success.
I wish you well in whatever you decide to pursue and I'm sure others on this board will also share their experiences with both MLM and party plan.
foreverdavis
04-30-2007, 08:28 PM
Simply explained, "party plans" have parties. MLM don't.
However, this is not as simple as stated since Party plans could possibly sell by one-on-one and online. And MLM's can have parties.http://www.wahm.com/forum/smileys/smiley1.gif
Angie
However, this is not as simple as stated since Party plans could possibly sell by one-on-one and online. And MLM's can have parties.http://www.wahm.com/forum/smileys/smiley1.gif
Angie
LorettaA
04-30-2007, 09:02 PM
I don't think there is a difference if the company pays on more than one level than it is MLM. It could be a MLM with or without a home party plan format.
littledb
05-01-2007, 06:10 AM
It's the marketing, mainly.
Party Plans: Hold parties to sell products.
Direct Sales: Person to Person
They all fit into the same category.
This is a generalization and not true to all MLM but MLM is known more for focusing on recruiting and selling the income opportunity vs. focusing on the product.
A Mary Kay rep will tell you how wonderful the make up is, why not get it for a discount and make some money, but it's about the product.
An MLM company will say "I can help you get rich!" They often focus on getting people on autoship so they "order" monthly and as you builda team, they keep spending the money to get checks.
Power Pops, Fun Unlimited, is MLM. And they focus a lot on the money. Now the product is good, but I can tell you, I make more in direct sales.
So it is personal opinion on which is better.
My advice? Product ALWAYS first. Don't join to get rich, it usually doesn't happen. But if you love what you do, you may be surprised!
Plus, work your biz smart. There is no reason to spend more then you are making. If you have to buy yourself to a level, I'd say you are doing something wrong and need to relook at your approach. You CAN get there on your own with some hard work, training and motivation.
best of luck!
Debbie
Party Plans: Hold parties to sell products.
Direct Sales: Person to Person
They all fit into the same category.
This is a generalization and not true to all MLM but MLM is known more for focusing on recruiting and selling the income opportunity vs. focusing on the product.
A Mary Kay rep will tell you how wonderful the make up is, why not get it for a discount and make some money, but it's about the product.
An MLM company will say "I can help you get rich!" They often focus on getting people on autoship so they "order" monthly and as you builda team, they keep spending the money to get checks.
Power Pops, Fun Unlimited, is MLM. And they focus a lot on the money. Now the product is good, but I can tell you, I make more in direct sales.
So it is personal opinion on which is better.
My advice? Product ALWAYS first. Don't join to get rich, it usually doesn't happen. But if you love what you do, you may be surprised!
Plus, work your biz smart. There is no reason to spend more then you are making. If you have to buy yourself to a level, I'd say you are doing something wrong and need to relook at your approach. You CAN get there on your own with some hard work, training and motivation.
best of luck!
Debbie
joli
05-01-2007, 08:12 AM
Hi Danielle,
With the company I am with you can do both home parties and mlm. The home party aspect is retail so you would make a profit off of what you sell. The mlm aspect is you make a commission based on distributors signed up under you and if they have people signed up under them you would earn a commission if you are qualified. In our pay plan you would need 5 personally sponsored members on a monthly autoship to maximize the pay plan.
I like that I can earn money selling the products at retail in different ways and also that I earn a commission check from sponsoring people. By my being on the monthly autoship I also recieve a deep wholesale discount on my purchases. The beauty of it is that I don't have to sponsor people to make money but to earn residual income the mlm option is the way to go.
Yolanda in New York
With the company I am with you can do both home parties and mlm. The home party aspect is retail so you would make a profit off of what you sell. The mlm aspect is you make a commission based on distributors signed up under you and if they have people signed up under them you would earn a commission if you are qualified. In our pay plan you would need 5 personally sponsored members on a monthly autoship to maximize the pay plan.
I like that I can earn money selling the products at retail in different ways and also that I earn a commission check from sponsoring people. By my being on the monthly autoship I also recieve a deep wholesale discount on my purchases. The beauty of it is that I don't have to sponsor people to make money but to earn residual income the mlm option is the way to go.
Yolanda in New York
SweetDanielle
05-01-2007, 08:15 AM
I am not looking to join an mlm. I am already a consultant for Cookie Lee Jewelry and The Body Shop at Home. Actually a customer was inquiring about the difference of the two, so I wanted to make sure I had the facts. Thank you for all the information that has been provided.
Danielle
Danielle
clatham
05-01-2007, 08:18 AM
Residual income is KEY. You can work the business and get a good group going. When you go on vacation, your ill, etc., you're still making $ on that group that you've established. It's not necessarily just the people you've personally sponsored. It's the people that those people have brought into the MLM also. Especially with a binary, networking is the way to go!
lips2nv
05-01-2007, 01:06 PM
My company is both. We are a multi-level direct sales company. I make money having parties and I make money building a team.
Patty Gale
05-01-2007, 02:22 PM
from my understanding (and I could be wrong LOL) with an MLM company you really don't make any money until you get others in the business
Actually, this isa misconception. If a network marketing company only offers compensation after you have people join your business, this is illegal.
Network marketing companies have to offer an option for a person to purchase the product on a retail level without joining the opportunity.
There are many network marketing teams that have in-home presentations forproduct demonstrationsand opportunity presentations, too.
You could join a network marketing or mlm and just promote the product if you wanted to.
The differences between what is deemed network marketing and direct sales are primarily just verbage and the compensation plans.
It is becoming more of a blurred definition because essentially, when a customer buys a product from what is perceived as a "network marketing or mlm", it is a direct sale from the distributor to the customer, even though the actual product is shipped from the distribution center.
An MLM company will say "I can help you get rich!" They often focus on getting people on autoship so they "order" monthly and as you builda team, they keep spending the money to get checks.
While there are companies and reps that promote this way,there are also many that do not use hype in their marketing. Not all mlm's promote pushing theopportunity first and pipe-dreams of 'getting rich quick'.
Patty
Edited by: Patty Gale
Actually, this isa misconception. If a network marketing company only offers compensation after you have people join your business, this is illegal.
Network marketing companies have to offer an option for a person to purchase the product on a retail level without joining the opportunity.
There are many network marketing teams that have in-home presentations forproduct demonstrationsand opportunity presentations, too.
You could join a network marketing or mlm and just promote the product if you wanted to.
The differences between what is deemed network marketing and direct sales are primarily just verbage and the compensation plans.
It is becoming more of a blurred definition because essentially, when a customer buys a product from what is perceived as a "network marketing or mlm", it is a direct sale from the distributor to the customer, even though the actual product is shipped from the distribution center.
An MLM company will say "I can help you get rich!" They often focus on getting people on autoship so they "order" monthly and as you builda team, they keep spending the money to get checks.
While there are companies and reps that promote this way,there are also many that do not use hype in their marketing. Not all mlm's promote pushing theopportunity first and pipe-dreams of 'getting rich quick'.
Patty
Edited by: Patty Gale
