A Direct Sales Party Plan business is a great way to find financial freedom and picking the right party plan company can make all the difference.
Here are some of our most frequently asked questions:
1. What do you sell and what makes it unique in your local area?
We currently market as Kirstilee, selling lingerie, ladies underwear, ladies swimwear and a few chosen dresses/skirts/tops. We are adding a new disributorship for perfumes and fragrances soon.
2. Who is your target audience, type of customer?
Our target audience are ladies who want to look nicer for their partners, and men who want to buy gifts for their ladies.
3. What is the cost to start? And what is included in that cost?
It costs $10 to start, and that $10 goes towards your demonstraton kit. The starter demonstration kit contains $250 worth of goods at retail cost, or $200 at consultant’s purchase price.. The cost of the demonstration ‘kit’ ($200) is recovered from the $10 sign-up payment and from commissions paid. We take 25% of the commission until the remaining $190 has been paid. If you earn $100 commission, we will retain $25. Many of our consultants pay for their kit in as little as a month. We do require you to complete a credit card authorisation for the value of the kit, but we do not charge your credit card unless you stop doing parties – and we would only charge it for the outstanding balance.
4. What is the average party spend across the company – not just the top sellers?
Most parties are above $400. While the occasional $100 party does happen, it is most certainly not usual. And there are the occasional $1,000 parties too, but again, this is not usual. Sometimes the low sales parties are because a few guests want to host a party and buy at their own party to get maximum rewards, so what you lose on the swings, you gain on the roundabouts.
5. What percentage commission do you make from your sales (as a starting consultant)?
All of our consultants make the same commission, regardless of whether they are just starting or well established. We pay 20% on sales (hostess credit is not counted in sales).
6. How often are commissions paid? How are commissions paid? Can they be paid directly into savings accounts?
We pay commissions weekly, and can pay them directly into savings accounts. Naturally, commissions are not paid until the customer has paid for their order.
7. What is the company’s minimum monthly quota?
We don’t have a minimum monthly quota, but we do hope our consultants want to do as many parties as they can! If a consultant does not do any parties for three months, and has not contacted us to explain why, then they are considered as having abandoned their consultancy.
8. Does your company offer online catalogues that can be ordered from? Is there a charge?
Yes, all of our products are available for purchase online. Each consultant has a unique web address which they should give to their customers to use when purchasing online to ensure the consultant receives their commission. We do not sell directly to the public because we have no intention of competing with our consultants.
9. How does commission work for online orders?
Online orders attract the same commission as party sales, catalogue sales or any other way. If our consultant sells it, they get their 20% commission.
- Is there a fee for my own website space to market and sell through?
We give you your own page on our website for direct orders. The charge for this is only $5 per month.
11. Are email accounts provided for professional presentation? Is there a cost?
Email accounts are provide for free to each consultant.
12. What incentives are offered?
We have competitions twice a year. Typically the price is valued at around $1,000. We also offer incentives for recruiting new consultants. For recruiting a new consultant you will receive 5% of their commissions for as long as they are a consultant and you are a consultant. There are no ‘levels’. You do not earn anything from
13. How are products delivered – directly or do you have to run around making deliveries with the extra costs involved?
Our products are delivered directly to the customer by post directly from our warehouse overseas.
14. What are the customer and consultant shipping charges for orders?
The purchase price includes all shipping charges.
15. Do you have to purchase all of your own marketing materials?
No! We provide any marketing materials, with the exception of the demonstration kit. We do encourage our consultants to sell the items in their kit before they start to soil. If somebody really loves an item, tell them that you are willing to let them have that one for cash (it’s yours to sell) and then replace it. This keeps your kit nice and fresh.
16. How seasonal is the product? What is the realistic potential for year round income?
Lingerie is not at all seasonal, nor is underwear. Swimwear is seasonal, although in much of Australia the Winter period is fairly short.
17. What is the unique selling point for the company – is it set up for the growing market demand for natural, fair trade, organic products? Is it a declining market or industry?
18. What is the education program like? What’s included in the monthly programs and meetings; CD’s, books, message boards, forums, newsletters?
19. What is the support community like, where do they meet online and offline? Use forums for specific party plan company recommendations.
20. Who pays for the hostess rewards? Are there products for instant gratification sales or promotional rewards such as for party bookings?
Hostess rewards ($15 Gift Certificate and 10% of sales) are paid for by us. We also provide a $10 Gift Certificate to the hostess for each guest who books and holds a party, although many of our consultants also provide additional incentives if they are having trouble booking parties.
21. Are you required to pay for any part of the hostess gifts or administration fees with your commission or direct payments? What’s the impact on your commission income?
No. Only if you want to give added incentives, which would be your responsibility.
22. What is the return policy for the company?
If the customer simply changes their mind, there is a 10% restocking fee, and the item must be unopened. If the size is wrong, we will exchange for the correct size provided the goods are undamaged and unused. If the required size is not available, and the goods are undamaged and unused, then a 100% refund will be given. For exchanges because of colour or pattern etc. the item must be unopened. If the item is defective, of course there is a 100% refund or exchange.
23. What are the tax requirements?
Each consultant is self employed. Each consultant is responsible for registering their own ABN and, should they choose, to register for GST. Our items are all priced with GST included. The total party sales will be invoiced to the consultant at 80% of the value of the sales. The GST break-up is indicated in all invoices.
24. What is the company’s buy-back policy and the time frames involved?
Most consultants do not carry stock, but should they choose to do so we will buy back any stock (subject to a 10% handling fee) provided it is still sealed in its original packaging. We will buy back the display kit depending on the condition of the merchandise, but in no case less than 50% of purchase price provided the merchandise is not damaged. We encourage consultants to keep turning over the items in their kit so that they are always fresh and clean.
25. Does the company allow party plan consultants to sell product at local fairs, festivals, shows or events? Doing shows can increase direct sales and party bookings for you but some companies are not structured to allow for cash and carry sales.
Yes. Consultants can sell anywhere they like. In fact, we encourage it.
26. Are consultants able to carry stock to satisfy customers’ need for instant gratification, use for promotional rewards and sales and how much do consultants pay for them – what percentage?
Yes. If the consultant wishes to carry stock that is a choice they are free to make. They will still pay 100% of the sale price when they purchase the stock and their 20% commission will be ‘paid’ as a discount, meaning that the consultant’s profits from selling the stock are exactly the same as selling on order. Any items sold from stock will not be counted toward a party total as the consultant will have already received their commission as a 20% discount when they purchased the stock.
27. What are the exit costs for leaving the company such as promotional goods, marketing materials and products?
There are no exit costs. We only ask the consultant to return any promotional goods or marketing materials which we have provided.