WAHM Forums

Hi Everyone,

I've been lurking on this forum for a little while. I'm trying to decide on which party plan company to go with. I have narrowed it down to candle/home fragrance. It seems great for gift giving and repeat customers.

I have questions for people experienced in direct sales with party plans. Should I go with a start up company with the potential to be the one of the first in my state to offer their products or an established company everyone knows but has tons of consultants already? Any pros/cons you offer would be great, too?

Thank you so much for the advice!

As you said, there are pro's and con's

Recognition/Brand - this can be a big one. a new company is not going to have the recognition by people, so you are likely always explaining the company and product. Gold Canyon is still newer where I am, so I find I am having to explain it a lot.

A new company may not have training in place like an established company, so you may have to do a lot of self training. Depending on your background, this may be difficult. You also may not get the support you would like.

Established doesn't always mean tonnes of reps. Gold Canyon has about 25,000 in North America. That may sound like a lot, but depending on your State, you may not find too many.

A lot of this really depends on how much work you are wanting to do. I was with a company where I was the first in my province, and it was very hard.

I agree with the above information. I personally wouldn't go with a start-up. I would at least like the company to be around for about 4-5 years - this gives them time to work out the kinks. Last year there were quite a few newer companies that went under. I also don't believe in saturation of reps. Everyone knows different people and/or works their business differently.

I say go with the company that you like the products the best and that you feel confident selling.

Best of luck.

Barb
www.passionforpetz.com
www.burnforsuccess.com

I would also feel out your friends and family---which product would they buy. Can you get a sample from both companies---see which appeals to you more. And consultants in your area--meet with them and see what kind of a vibe you get from them.
Good luck in what ever you choose. I mayself thought about Scentsy for almost a year before I took the leap.

That depends! Either way, you are going to have to work it, girl!! So pick the product you LOVE and dive right in! Immerse yourself in training, and get very clear and deliberate about your WHY and your dreams!!

There are pros/cons to each. Make a T-chart for both. Then sit back and let it sink in. It will come to you.

:D

In my opinion, I'm not too keen on start up companies for the same reason as BarbB. I've seen new companies go under very quickly. They started with a bang and ended with a bang lol!

Go with a company that is at least 4 years in, and make sure that they have training involved. Training is a MUST especially if you're new to this. Also, when picking your sponsor, make sure they're well trained or at least know where to direct you if they dont have the answers.

HTH!

Kesha

So here are some topics I frequently see pop up when people ask your very same questions.

Is there such a thing as to Saturated? I believe that YES it happens...... Especially in smaller towns where there isnt a lot of people. If there isnt, then what do you call it when there are no open slots for the fairs, bazaars, expos? What about within your circle that everyone knows someone who sells "company a"? Ofcourse there is saturation....to the average person who isnt aggressive with little direct sales experience. I think when people say there isnt, then its a way for them to justify their "feeling safe" attitude because their personal circle isnt over saturated.

New Startups crashing? Yeah many that arent smart with business decisions can crash. Say for example a new company that comes out with a bang...spending thousands or millions on advertising, campaigns etc.... going into debt just to get their name out there.... They crash! But I have seen MANY of large name companies crash & go bankrupt as well even having been around for 20+ years.

Do you want to go with something you feel passionate about? Or go with something because you "think" you may be safe? Regardless, chances of anything shutting down can happen to any company at any stage.

Some people dont mind being a cow in the herd instead of finding ways to lead the herd. It all depends on what works for you :)

I've tried both, the start-ups vs established and decided I will go with established every time.

And when it comes to the Scented candle products I will stay with the one I am with because I did try the rest and always went back to my current one because I found that the grass was never greener on the other side, the facts that there are NO $500 a month quota's,and the restrictions placed on a consultant in some of the other companies made it difficult to make a generous income, their compensation plans of 20-30% was ridiculous.

I appreciate a company where you can actually BUY WHOLESALE and make a 50% income immediately as opposed to buying at retail prices and than waiting for a measly 20-30% commission for a full month afterward was just unacceptable!

Good luck in whatever you decide!

I also have done both. I joined a start-up because I loved the products, the mother company was a well-established company (over 20 years) and thought the items were unique. However, the company fell through in about a year.

I love getting in on the ground floor, but now have to be cautious. It's one of those things that if the company does really well and you joined as a founder, etc. then it's great. But then if you get in on the ground floor and the company doesn't do well, it's bad.

I think that even in doing a lot of research before joining companies, it's a hard decision. I had to pray about my decision to join my current company. It was an established company that I thought I could do well with, but really had to make sure that was where I was supposed to be. I'm glad I made the decision I did.

As I read back through what I wrote, this may not help much.

I don't really agree that there are pro's and con's. I think the division is about 99%/1%.

To me, this is a complete no-brainer: joining a start-up is, statistically, just about the surest way of stacking the deck against yourself that there is.

I have no desire to be in on the ground floor, even in the statistically highly unlikely event of the company turning into a winner.

There are huge disadvantages in being in at the beginning.

The popular myth is that the people who get in on "the ground floor" do best. The reality completely belies this. If you look at the histories of all the long-standing, successful companies, almost invariably the people who have been most successful in them are the later recruits, not the earlier ones.

A good question to ask people trying to recruit others into start-ups is "In 3 years' time, will this company be as good or better an opportunity than it is now?" If the answer's "yes", then 3 years later is clearly the time to join it, after it's proven that it's one of the 5% or so of companies that can survive 3 years. If it's "no", then run, because you won't be able to sponsor people 3 years later, will you?!

The "argument" that start-ups can be a good thing because companies as enormous and well established as (for example) Forever Living Products are "were once start-ups" is completely fallacious and misses the point that at the time they started, there were also 999 other start-ups around, nearly all of which disappeared into obscurity, most of them not even lasting a year, and there wasn't any way of telling which one was going to be the one that might survive and turn into a success story, because they all "looked good". Who needs odds like that?! :eek:

I think it depends on the type of person you and what your specific needs might be at the time.

Motivating yourself to do what it takes to establish a start-up vs. working a path already cut for you.

Wishing you all the best in your decision making. I've been with both and found pros and cons either way.

I think sometimes, you just have to take a chance. If you have done your homework, and the company appears to be sound, and you are passionate about the product that you will representing then go for it. I think that we fail to realize that all companies were start-up or new companies at some point. Look at Scentsy, they have not been in business that long by industry standards, but their business is booming. What if the people that joined with them the first or second year had decided not to because they were a "start-up company? What if the five other ladies had not decided to join Mary Kay and her new venture? The thing is, none of us control the future. We do not have a magic ball that we can look in and see what will happen today, tomorrow, next month or year. How sad would it be to hinge our hopes and desires on this fear of the unknown. So again, I say go for it after you have done all your homework. A lot of us have been with established companies that folded. Who knew? Life goes on. Good luck on your journey.

I think that we fail to realize that all companies were start-up or new companies at some point.

I think we realize that just fine, actually.

What we often don't realize, though, is that when the now-big, now-successful, now-surviving ones were start-ups, there were hundreds of other start-ups around at the same time, that looked just as sound and didn't throw up red flags when people did their due diligence, and there just wasn't a way then of telling which ones would become which.

The fact of the matter is that under 5% of them lasted 3 years (some say it's under 3%: it depends whose figures you believe).

Who needs odds like that?

Those 5 ladies who joined Mary Kay were very lucky, and that's the truth of it.

But not as lucky as the people who joined her later, after she'd survived 3 years and had a working business model people could duplicate and a known, proven market.

And those later people did better financially, too, as is almost always the case.

Just saying. ;)

Just one thought on the topic of "ground floor opportunity":

In my experience (and I've been pretty successful in sales over the past 30 years!) ...

The whole "ground floor" speil that some companies/people talk as it relates to startups giving a newbie a better potential is just hogwash.

The reality: *******YOU****** are the "ground floor" of whatever it is that you build. Whether the company has been on the planet for 5 months or 50 years doesn't matter as much as what YOU intend to do with it.

And much also depends on your needs for your venture. Do you need the money? Or is this just a hobby and the money is secondary to having fun and getting away and having some time of your own? (there is no right or wrong answer to that). The answer does determine what you need to get out of a company, IMO.

All of this said, be keenly aware of the kind of "feel" a company may have in your area. In some areas, some leaders and their people may have established a very good image - or alternately - it may have a negative one. Those things will affect you.

By going with a company that has positive track record, if you are truly out there making contacts, you absolutely will gain business from people that have lost their consultants but still want your product.

And as far as having the "advantage" of introducing something new, in reality, most prospects have probably not tried your chosen product before! So in reality, no matter what you choose, it will be "new" to them and the "trying something new" door is really open to all of us. (only thing that makes that not work is if the company or it's reps have left a sour taste in your area)

As for picking an industry - I guess I feel that direct sales/home parties *is* the industry. I sell skin care because I believe it is a better business with higher profit margins as well an easier "sell" than doing candles (but I love candles). If I'm going to go out and do parties, I personally am going to work with something that pays me the best for my time. :)

Hope this helps a little.

I would definitely study the two companies and get a feel for what people you will talk to would be more likely to be interested in. If the new candle company has good products and you really like them then I would try it, depending on the intial investment. If it doesn't work out you'd still be established in the industry and would do well with the more familiar one but again it's about how much you want to invest. If you'd feel you wasted time and money if it doesn't work then go with the one that's well known but it's not going to be "easier" in my opinion. Either one will require effort on sponsoring and it helps to know who you would sign up after you join or you might feel lost in your first months and that hurts your momentum. Speaking from experience, being new in the game it really helps to have someone that is there to support you. That's my advice.

My past experience....ground floor is hard work and unstable...but, you just never know. Bottom line for me and many others is that you have to LOVE your product! You have to. If you don't have the love for your product...you just won't do as well. No matter how much money you could/do make. I was doing pretty darn good with another company some years ago...but...I wasn't passionate about the product. I wasn't. I was in it for the money. I didn't enjoy it. Just like any "job"...you will do better when you wake up in the morning and like what you are doing (selling in this case). I have that now with the company I am with. I love it! I found my niche. I look forward to selling this product....and people can tell. Good luck in your decision!! =)

I agree with the majority of responses. One thing that hasnt been mentioned is how do you make money.. Compare the compensation plans as well as team building incentives. You can love the product but if you are out there working your butt off and the company is the only one really benefiting that should be a deal breaker. Study both plans. Write down how long it will take you to get your initial investment back and any incentives for both companies. Write down what you need to make a month and then figure how many parties or sales you would need to get that and then compare which one works the best for you. I would think this is important concept for you unless this is just for fun or a hobby..

This is a really good discussion and lots of great advice - different strokes for different folks.

I've been with some really good companies that are no longer in business - both established companies (one was around fo over 30 years) and startup companies (either started from scratch or an outshoot of an established company jumping on the party plan bandwagon). Just because the company didn't succeed doesn't mean I wasn]t personally a success - I was a success because of my passion for the products and the company.

I fully believe that it is your passion that will make you successful in any party plan business. If you love what you do, it speaks volumns; your excitement spreads to people! I love party plan - traveled to places I never would have been, made fabulous money, made lasting friendships. In the last 8 years, I have tried many companies who have a proven track record and have scores of highly successful people - I didn't succeed with them because my passion just wasn;t there.

I agree no matter what company you join, you're "new" . Follow your passion and you'll succeed.

Marianne

Marianne -
I agree with you SO much with regards to the travel, friendships and income potential. Just returned from our Leadership Conference and it was fabulous. I'm totally with you in my love of the "party plan business." What a fabulous way to make a living!

Hoping your happy with whatever your choosing to do these days! :-)

I want to say thank you SO much for the advice and response to this thread. You offered some great advice that really made me think about my decision. In the end, I decided to sign up with the start up company. I have a great sponsor and hope to do well. Thanks again and good luck to all of you with your businesses!

Best to you and your new business venture! That great sponsor will serve you well.

Keep us posted! :-)

Congratulations on taking the plunge!

Marianne