Page 2 of 2The cause of the problem
The second step is to discover and define the cause of the problem. The first suspect would probably be the compensation structure of party plan companies. After all, almost without failure, party companies pay far less in override commissions and for far less depth in the sales organizations than do companies with network marketing and MLM compensation structures. This creates less emphasis and encouragement for recruiting.
The compensation plan is a major contribution to the lack of recruiting and of building a national sales organization by the majority of party plan distributors. Let’s face it. Distributors do what they get paid to do. Yet, the compensation plan is not the primary cause.
There is an innate problem with party plan companies. Most of the income distributors earn is derived from the retail sales obtained at parties and the repeat orders that result from them. Women invite their friends, relatives, and associates from work, church or other organizations, in which they are involved. They are then taught to encourage those who attend to host future parties. This continues the great retail sales profits they earn. They are also encouraged to try to recruit new distributors from their parties. This is where the innate problems start to occur.
The women who attend the party are their friends, relatives, etc., as discussed above or they are at least friends of friends, associates of associates, etc. In other words, these are the same women that attend their parties. If they became distributors, many of the same women they would invite to their parties are the same attendees that are would be attending their new downlines’ parties. This would directly threaten their primary source of income, the retail profits from the parties and the resulting repeat sales. These women are not fools. Why would they want to set up competition for their main source of income for lower override commissions?
However, this innate problem has roots even deeper. Women are very social in nature. They are also, by nature, caring and nurturing. Although, many women are good at business, they often are reluctant to reduce income that can be used for their families to re-invest in their business to do recruiting, build a downline and build a business. They often are reluctant to do mass marketing and national marketing. Even in network marketing and MLM compensation plan companies, women often work more personally with their downline. They are often more concerned about helping others on a personal level. Men tend to want to help people on a financial basis or with achieving success within business. In other words, party plan women do not want to create competition for themselves, divert income from their families and/or become hardcore businesswomen (“businessmen”). Thus they are reluctant to build both locally and nationally. No wonder there are so many small party plan companies!
How to solve the problem
Let’s get real! I just taught competitive consultants about a serious problem for party plan companies, that they may not even have a clue exists. I even explained what causes it. Although I would love to help all of these party plan companies solve this major problem, how magnanimous do you think I am?
I bet many of these small party plan companies know:
1. … that I am right about having difficulty expanding and building a large nationwide sales organization.
2. … and at least suspect I am right about the causes.
3. … that they were not told about this innate problem, cause or its solution, if they paid the “favorite son” consultant from the association’s seminar his exorbitant fees. I bet you are wondering, “Didn’t they have a clue or were they keeping you in the dark intentionally to protect the large party plan company members?”
I have a solution to this innate problem that is crippling your company and keeping it from fulfilling your vision.
I promise my fees are very reasonable and nowhere near the exorbitant fees of the “favorite son” consultants. If you want your party plan company to prevail in building a large nationwide sales organization, give me a call. I promise I’ll help you clean up this innate problem without taking your company to the cleaners!
Keith Laggos has been in the direct sales industry for 36 years, half of that time as a successful distributor. He is one of only three people worldwide chosen for the Hall of Fame Award. He is president of a 22-year-old, multi-level company, which he founded. He is a board member of an industry association as well as other companies, an expert witness and an industry consultant.
His publishing company is the largest in the industry and produces Network Marketing Business Journal, formerly Money Maker’s Monthly, the first direct sales college textbook, Direct Sales – An Overview and Higher Than The Highest Mountain, an inspirational, warm and humorous fictional account of how a Christian family’s love and faith overcome all while facing everyday challenges in today’s society. It also provides a positive example of how network marketing helps families at various aspects and junctures of their lives. Most recently, he has published How to Recruit & Sell in an Over-commercialized Society, a how-to textbook on marketing. The Multi-Level Marketing International Association (MLMIA) has awarded Laggos and Network Marketing Business Journal’s predecessor Money Maker’s Monthly, several prestigious awards, including its Global Vision Award, Supplier of the Year and President’s Spirit Award, among others.
Laggos has also been published and quoted in other publications and academic journals around the world. Laggos has a bachelor’s degree in math and computer science, a master’s of business degree in management and marketing, a master’s degree in economics and a doctorate (abd) in public policy analysis and a doctorate in business economics.