party plan

MLM’ party plan is a business plan of marketing products by hosting what is presented as a social event at which products will be offered for sale. It is a form of direct selling. The primary system for generating sales leads for home party plan sales is the home party itself: the salesperson uses the home party business model as a source for future business by asking attendees if they would like to host selling parties as well. Direct selling through the party plan typically uses multi-level marketing (salesperson is paid for selling and for sales made by people he recruits or sponsors) rather than single-level marketing (salesperson is paid only for the sales he makes himself).

This plan has been used primarily to sell items whose main appeal is to women by women, such as kitchen utensils, home decor items, jewelry, cosmetics, handbags, and similar products. Sometimes a combination party is held, at which a wide variety of such merchandise is offered for sale. In consideration, they will be given hostess gifts and a portion of the proceeds from the number of goods sold. Frequently all in attendance will be given a token item of nominal value as an incentive to attend.