Party Plan - How IT Works

How It Works

In this system, representatives of the sales organization, almost invariably women, approach other women about hosting a social event in their homes during which a product will be demonstrated. In consideration, they will be given hostess gifts and a portion of the proceeds from the amount of goods sold. Frequently all in attendance will be given a token item of nominal value as an incentive to attend.

At the event, the salesperson displays and demonstrates various products. She then takes orders from attendees. The salesperson is almost always paid solely a commission on sales. If the salesperson has recruited other sales people into the organization, then she also receives a commission based on her recruits' sales.