Work From Home Freedom

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Thinking About Starting a Home Party Plan Business?

Posted on June 7, 2011 at 11:09 AM

Quite a few brand new home-based businesses are started every day by stay at home parents who want to earn an income. One popular type of business is the so-called "home party plan" business. Some people equate the home party plan business model as multi-level marketing or even "pyramid schemes" or cults. Do a search online and you're likely to see certain names pop up as having been investigated by the authorities at one time or another or as the subject of critical review by former participants.


Before you shrug off this business model, you may want to know that several well-known companies either started as home party plan businesses or are now just getting into this lucrative arena. As an early pioneer of home party plans, many of us are familiar with Tupperware. What do you call your re-useable plastic food storage containers?


At its most basic, the home party plan type of business is a form of product distribution through means of independent contractors or "consultants". Also referred to as "Direct Sales" companies or businesses, most of today's home party plans are set up so that the individuals who participate in the program have access to the company's products that they then market to their circle of family, friends or other associates. The consultant then gets a certain percentage or a commission on any sales.


Typically presented as a "fun" way to have your own business, the idea is to have someone "host a party" for his or her friends where you, as the consultant, can show off your company's products and hopefully make some sales and secure future bookings for more parties. A number of popular and successful direct sales companies offer perks such as paid cruises or other prizes for their top consultants. Some companies grant prizes or discounts to "hostesses" to encourage more sales.


The other part of the home party equation is to expand your sales by recruiting others to sell the product line and earning a further, albeit smaller commission on your downline's sales. If you have access to a large network of friends or people you can market to, the income potential can be quite good. Not every direct sales company requires this, but most companies do encourage recruiting new consultants.


The range of products or services that have been sold using the home party plan system is amazing. Almost everything from artwork, jewelry, coffee to shoes and purses can be and has been sold using the home party plan business model. Despite the appeal of home parties, direct-selling is not a sure thing. Not every one is good at selling and not every one likes to have products pitched at them. So it's helpful to have a product that everyone wants or uses.


A home party or direct sales business is just that, a business. The Internal Revenue Service recognizes that home-based direct selling businesses are legitimate businesses and has rules for reporting revenue and expenses. You need to maintain proper records, pay taxes on income earned, provide customer service where needed and maintain a constant customer base.


A home party business requires discipline and effort on the part of the consultant. However, many people have thriving and successful home party business. You are your own boss and you can set the pace that you are comfortable with in building your business.


Did you know that Suzanne Somers recently entered the multi-million dollar home business market with her own direct selling home party plan program? Visit Mommy's Work At Home Place at to learn more.



Article written by Lily Chin


Home Party Plan Business Directory

Categories: Home Party Plan Companies

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