Here’s a summary of an article Brett Duncan recently published on WorldOfDirectSelling.com. Read the entire article here →

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I love Prince – not the royals across the pond, but the musical genius who gave us “When Doves Cry” and countless other hits. From a tender age of seven, his music struck a chord with me, and it’s been a lifelong affair. Among the myriad concerts I’ve attended, Prince’s performances are unrivaled, sitting proudly in my top five experiences.

But why bring up Prince, you might wonder? Well, his iconic “1999” is more than just a catchy tune; it’s become a metaphor for my musings on the current state of party plan companies in the direct selling industry. Despite the song’s message that the party can’t last forever, it seems many of us in the direct selling space are stuck in a time warp, insistent on partying like it’s still 1999.

Now, don’t get me wrong. My heart has a special place for party plan companies. My journey into the world of direct selling didn’t start here, but over time, with more than half of my clientele coming from this vibrant sector, I’ve developed a fond affection. The energy, the fun, the spirit of community found in these companies is infectious.

 

The Issue is Not Philosophical, but Operational

But here’s the rub: as much as I love the concept of parties – the gatherings, the tastings, the demos – I’ve grown increasingly critical of the traditional “party as an order type” model. It’s become apparent that the challenges faced by party plan companies today aren’t just philosophical; they’re operational, deeply rooted in the ways orders are submitted and host programs are managed.

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The essence of my argument? Parties should remain a central feature of our industry’s culture, but the mechanics of order submission and host incentives need a serious overhaul.

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The traditional party plan model, while revolutionary in its heyday, struggles to align with the modern consumer’s preferences and the digital landscape’s demands.

 

A Story to Illuminate My Point

Let me share a story to illustrate my point. Early in my career, I witnessed a nutritional MLM company soar to new heights thanks to “mixers” – essentially home parties where products could be sampled and discussed. This experience underscored a fundamental truth: the power of social settings in selling products in person. And yet, these mixers thrived without the need for elaborate host programs. The sheer joy of sharing and community was reward enough.

Fast forward to today, and we find ourselves navigating a world transformed by the internet, e-commerce, and not least, the global pandemic. The latter, often dubbed the “Great Accelerator,” has pushed us towards embracing online parties and social selling with renewed vigor, albeit out of necessity rather than innovation.

Yet, as we’ve adapted, unintended consequences have emerged. Self-hosting, order gathering without actual parties, endless shows, and the morphing of host programs into quasi-customer rewards schemes have all highlighted a misuse of resources and a deviation from the host program’s original purpose.

 

We Must Leverage Our Best Customers

So, what was the host program’s goal? At its core, it was about leveraging our best customers to spread the word, rewarding them for bringing in new customers through genuine, product-centric gatherings. It was a brilliant referral strategy, now lost in translation.

Facing technical, financial, and customer experience challenges, it’s clear the traditional host program model is no longer fit for today’s purposes. Our efforts to stick with outdated practices not only hinder our technological progress but also compromise financial efficiency and muddle the customer buying experience.

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The solution, though, isn’t to abandon the party plan model but to evolve it.

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We need to embrace the spirit of the party without being constrained by outdated mechanisms. This evolution involves:

1. Encouraging product demonstrations and social gatherings without making them the sole avenue for orders and rewards.
2. Rewarding sales regardless of how they are achieved, focusing on the outcome rather than the process.
3. Reimagining our approach based on what we want to achieve today, not what worked in the past.
4. Asking ourselves how we would structure our company if we were starting afresh in the current landscape.
5. Holding onto our identity while being open to changing everything else about how we operate.

In essence, we need to align our strategies with how customers wish to engage and purchase, not just how we prefer to sell. We can still embody the joy and community spirit of parties, but we must do so in a way that reflects the present and future of direct selling.

THE FULL ARTICLE

 

Make Sure Your Company Stays Relevant

Prince, ever the visionary, saw changes on the horizon long before the rest of us. His ability to adapt and innovate serves as a reminder that while the party doesn’t have to end, it certainly can’t go on as if it’s still 1999. Let’s draw inspiration from his foresight and courageously steer our party plan companies into a new era, one that honors our roots while embracing the inevitable evolution of direct selling.

Looking to realign your party plan strategy? We are working alongside other direct sales companies, doing just this. Reach out today, and let’s discuss how we can help make sure your company stays relevant.

Read the original article in its entirety at WorldOfDirectSelling.com.