Direct Selling? Party Plan? Beware! By Rick Grandinetti
After the article on the “Economy” I penned on late January there were numerous responses from
“How do I increase sales in my company if the economy is down?” to “How do I stay competitive
when I am cutting back?” and “What strategy do I put into place for long term growth in a recession?’
However, the overwhelming response was, “How I make extra money” or “If I lose my job what is a
great way to earn income?” In my extensive research let me tell you what will not generate the
income you seek. In fact, what I am about to warn you about will actually deplete your bank account.
The phrases “Party Plan and Direct Selling” came up several hundred times in the inquiries.
A Party Plan or a Direct Selling organization sells directly to individuals usually with no
retail market. They sell via consultants’ to individuals and mainly in an “In-home party” setting.
As you read this, you either have attended one or have been invited to many. What generally occurs
is a host will be sold on the idea to host a party, which in the Party Plan Direct Selling business
is a called, a “Show”. The “hostess” is promised oodles of free product, all that she has to do to
acquire her piles of free merchandise is to invite people over to her house and buy the over
inflated priced goods. I understand this can be a social gathering where people get together and
eat drink and buy product. This portion is not the threat, what occurs next is the element that can
invert your pocket book and crush hopes. The individual selling at the “Party” tries to convince the
“party goers” to sell for him or her. That is when the promises regarding how much you can make are made.
You are told, “You too can make so much money by selling and doing what I do”. All that the
partygoers have to do is buy your own “kit” or worse “hold six shows”. You see, the money they speak
about making is not selling the product it is about convincing other people (your family and friends)
to sell for you. Now, what does that sound like HMMM? The irony is you sell to your family and
friends first and then persuade them to sell for you. By now, you have committed to the six shows
or bought the kit. In addition, it is nowhere as easy as the person said to earn the high income
and exotic trips. Facts are over 90% of the people that join a Direct Selling organization drop out.
In order for the top lineage people in this pyramid to make their revenue, they must constantly
recruit new consultants. Selling their expensive products just will not generate enough revenue.
Ask your direct selling “up line” when was the last time they promoted out a consultant to the income
they speak of during the “parties”. You will find it is few and far between if any at all.
All of this during a down economy and preying upon individuals that are hurting for extra money.
You have been warned.
Please check out these sites for further information on Direct Selling and MLM’s
www.quatloos.com/mlm/mlm.htm
www.consumeraffairs.com/misc/partylite_hostesses.html
www.mlm-thetruth.com/
www.vandruff.com/mlm.html
Now, there are reputable firms to earn extra income or employment such as Mary Kay Cosmetics.
Lorraine Hudak, a sales director for Mary Kay states, “As a small business owner, Mary Kay is a
great opportunity, like any business you must be willing to work the business in order to be
successful.
Mary Kay provides excellent training that is auditory, visual, and weekly training meetings.
There are always opportunities for the consultants to learn to become more proficient”.
If selling is not your cup of tea after joining Mary Kay, they will buy back all of your products
from your first order within one year, now that is integrity in business.
Another way to earn extra money or a tremendous income, solve problems; if you want to become
wealthy prevent problems. In this economy, more than ever, organizations are looking for people
who can solve problems not “just sell products” and certainly not sell your family and friends
on a pyramid scheme.
