as with those in the Party Plan model, independent representatives have hosts gather their friends and family to experience a product demonstration, in-person or online. But with Hybrid, the emphasis is as much on the business opportunity as it is on sales of the product. The structures of the compensation plan tend to borrow traditional elements from both Party Plan and Network Marketing.
One significant difference is that with Hybrid companies, it is common for the representative to encourage the host to have an impromptu gathering, rather than scheduling it weeks in advance. They might say, “Sure, I’d love to demonstrate how this product works. I absolutely love it and I think you will, too. You can get it for free, too, and I can show you how. Why don’t you and a few friends come over and watch while I show it to you tonight or tomorrow?”
Hybrid companies typically represent tangible products that are consumable, such as health and wellness or beauty products. As in Network Marketing, these products lend themselves well to auto-ship, the subscription order model where independent representatives and customers get monthly replenishment orders shipped to their homes automatically.
In Hybrid companies, auto-ship usually offers a price break for the customer, (sometimes referred to as a preferred customer rate). You will see programs that offer vanishing auto-ship or free auto-ship for customers who refer other customers through referral programs. These referral programs can also include free auto-ship for independent representatives who have a certain number of customers on auto-ship, meaning that the representative’s own monthly consumption of product is covered. These referral programs, which attractively combine the customer-focused Party Plan outlook with the Network Marketing-style auto-ship approach, have been very successful and have led to significant growth for the companies and leaders involved.
Examples of companies that lend themselves to a hybrid model are Nerium, ItWorks, and Thrive Life.
Direct sales appeals to people interested in earning extra money outside of a traditional job. Some choose to work part-time with a direct sales company as a way to pay for the extras that challenge their budget, often in addition to a full-time job. Others are looking for a way to make additional money while still attending to priorities in their lives like parenting, caregiving, school, or charitable work and appreciate that they can control their calendar and plan events, parties, and one-on-one appointments (where you meet with clients individually instead of in a group setting, like a home party) around their schedules.
According to the Direct Selling Association of the United States, 83 percent of representatives in direct selling are women. In the past, generally speaking, men tended to be drawn more to the Network Marketing model, with women feeling more comfortable focused on the Party Plan style of business.
Perhaps sharing products they are passionate about comes more easily to most women. In any case, there’s no question that Party Plan selling is very popular among females. In general, women enjoy gathering with other women and tend look for reasons to do so. Having a Party Plan business or hosting a party provides an excellent excuse to get together.
In recent years, with the growth of the Internet, the increase in dual-income families, and product lines that are more appealing to modern women (weight loss, skincare, and energy products), there has been a noticeable increase in Hybrid and Network Marketing companies targeting a female salesforce.
In addition, busy people of both genders see the benefit of Network Marketing’s reputation for ongoing automatic income (also known as residual income) from a business that can fit into the nooks and crannies of their schedule and be handled by phone and keyboard, instead of with a schedule of home parties. This could explain why many married couples choose to build a business together in the Network Marketing model.
Party Plan is still going strong and continues to be the top choice of people interested in earning profits and creating cash flow from even the early stages of their business. Quite often, representatives in Party Plan get paid for some or all of their sales the night of each party. For people looking to alleviate day-to-day budget shortfalls, the Party Plan model is especially attractive.
With the changes in the industry through the Internet and social media, as well the globalization of the industry, direct sales is growing. And with multiple ways to touch your business, all three models are becoming more appealing.
Your First Steps in Direct Sales
Much of this book is devoted to helping you work through the many details of direct selling, and I devote whole chapters to explaining the many facets and supporting you in making decisions.
Let’s say for a second that you’ve picked your product and company and have decided to join up. What happens then? What are you in for? Here is a simple checklist you can follow as you take your first steps in your new business.
While waiting for your kit:
✔ Get a date book or calendar big enough to write in. This is where you will schedule your meetings, appointments, and parties.
✔ Mark all the dates that you want to work for the next two months and add any personal conflicts to your calendar. If your goal is to work Tuesdays and Thursdays, then put a star on each of those dates. This will help you offer dates to clients who want to set parties or appointments with you.
✔ Schedule your launch party. Your launch party is a party you host yourself that will launch your business to your family and friends. For best results, you’ll schedule two launch parties within three days of each other. Chapter 8 talks all about launch parties.
✔ Make a working list of people you know (50–100 names) and their contact info. (See Chapter 7 for help on creating your list of 100.)
✔ Post your plans on Facebook and tell your friends and family how excited you are about your new business. (For more information on how to utilize social media in your business, head over to Chapter 11.)
✔ Invite as many people as you can to your launch party(ies) (check out Chapter 8 for more information).
✔ Schedule four to five additional home parties (see Chapter 9) or appointments (Chapter 12) in a 30-day time frame. In this case, you will ask people who could not attend your launch parties to host parties of their own. See Chapters 7 and 8 for more information.
✔ Invite a friend to start a business with you. Statistics show that when you start the business with a friend, your chances of success are much higher. (See Chapter 14 for more on recruiting.)
✔ Set up your personal website that your company provides. Your company will provide you with step-by-step instructions on how to do this. This is a website you will be able to share with your customers and use for marketing purposes. Customers will be able to order directly from your website and find out more information on hosting a party or joining the business.
✔ Get to know your virtual office. Your virtual office is the portal your company will provide where you can place orders, access training, and get other company information. Don’t get overwhelmed by your virtual office. Ask your leader to walk you through placing your first order and navigating your way.
✔ Set up a space
