Customizing a proven formula

The other day I had a customer express an interest in hosting a Tupperware-like party for LittleLDS. I thought it was very interesting because LittleLDS parties don’t exist (yet). The most interesting part of this is that it isn’t the first time someone has brought this up to me. The first time I had someone show interest in the idea, I was merely flattered. It was at one of the tradeshows that I was doing in Salt Lake City. The second time I thought was a bit coincidental, and the wheels started to slowly turn. I passively considered the details of such an idea, but never really did much about it amid all the other projects I’m currently working on. This time, however…with a THIRD request….a pattern has been formed, and I can ignore this issue no longer. There is obviously a market for the idea. It might be small, but it obviously exists, and, being the opportunist that I am, I MUST try my hand at it.

This could actually be just the system I have been longing for. It would be a way to sell, without doing all the work myself. I could set up the system, introduce it to the interested parties and then let it take off (Okay, that’s a little over simplified, but you get the idea). It would be like having employees without out the hiring, firing or technical tax issues!

Because I’ve never been to a Tupperware, Pampered Chef, or Mary Kay party, I only had a very generalized idea about what kinds of things are done at one. At the onset of my research into this idea, this is what I knew;

An interested person contacts the company and expresses an interest in wanting to host a party. Invitations are made and sent our by the host, and the company sends a representative to the party to demonstrate the product. The hostess’ motivation for having the party is two fold (I presume). First, she’s hoping that her guests will order something which will help her to earn some sort of pre-established credit toward the company’s products. Second, the host wants to have a fun little get-together with her neighbors and friends (psshhh…..right. Let’s not kid ourselves. It’s ALL about the products).

The other thing that I know about these types of parties (and I’ve also witnessed this one first hand) is the kind of reaction one has at receiving an invitation. There are only TWO reactions. Either you’re thrilled, or you’re totally put out. I’ve seen and heard of the latter reaction much more often. That being the case, I decided to ask Kim some questions about the nature of the “hosted product party.”

Question: What do most people hate most about these types of parties?
Answer: The pressure of feeling like they HAVE to buy something. Knowing your friend invited you so that you would buy something and also knowing that if you don’t buy something, your friend won’t earn enough credit towards what SHE wants to get out of this party.

Question: What do most people like about these parties?
Answer: If they do like the company and the products, then it’s fun to look through the catalogs and find something fun to buy. They also like hanging out with the other guests at the parties.

Question: What is the major motivation for someone to host a party like this?
Answer: Aside from being able to hang out with some friends, as a hostess, when your guests purchase items at the parties, you earn credits toward products you want from the company. Unfortunately, you never know if you’ll earn enough through your guests’ purchases or not until after the party is over. Some companies will even give extra rewards when one of your guests sets up an appointment to host a future party at their home with the company’s representative.

Question: From a corporate perspective, what are the drawbacks to hosting product parties?
Answer: A representative needs to be paid when present.

Question: From a corporate perspective, what are the major advantages of hosting product parties?
Answer: They generate word of mouth advertising, which is the most powerful method of advertising there is. Also, these parties can be self-perpetuating…on party can be the catalyst for a host of others when the party is done successfully. It is a low-cost, high impact method of selling and advertising.

Okay, so, taking a logical and practical approach, I’ve come up with the following assessment of the information that Kim gave me; First of all, if I can eliminate the hassle and pressure away from potential guests of feeling like they HAVE to buy something at one of these parties, I could probably change the initial reaction of receiving an invitation from “Ah, crap!” to “Oh, sweeeeet!” I could do that simply by letting the hostess and the guests know beforehand (through the instructions packet and party invitations) that credits earned by the hostess are NOT contingent upon the purchases of the guests. Easy enough. If I allow the hostess to know ahead of time what she can expect to earn from the party (regardless of purchases), then she might be more motivated to host in the first place. I can achieve this by making the level of credits earned directly related to the number of guests who merely show up (not by how much is purchased). For instance, I could say that in order for a hostess to earn one LittleLDS coloring CD, she would have to have, say, 5 guests attend her party. Those guests could then, in order to be considered “in attendance” provide their contact information for a future follow up letters and email – thus adding to the LittleLDS advertising data pool. Also, because LittleLDS is new, I can’t afford to hire a representative for each of these parties, and heaven knows I’M not going to be attending them! Instead, I could set up a pre-packaged demonstration & party suggestions with game ideas, and activity models that the hostess, herself, could handle. Essentially, it would feel more like a shower than a product party. Most women I know actually LIKE going to showers. Guests arranging to host their own LittleLDS parties as a direct result of the party they had just attended would only be an added bonus for the hostess by earning her ancillary rewards.

After making some of these suggestions, Kim admitted that this modified version of the hosted product party model might be more conducive to a fun outcome, rather than a pressured one. Kim did bring up something that caused me to really think. Right now, I only have 3 CDs for sale. I’m working on my 4th title now, and my LittleLDS Page Keepers, but they’re a long way from completion. I don’t exactly have a catalog’s worth of products to choose from. Say my hostess receives one free CD for every 5 guests that attend her party. If she has 15 guests show up, she’s just earned my entire available collection! Or, what if one of the guests buys 2 of the CDs at the party, and then decides to host her own? She really would only have to invite 5 people to receive the 3rd and final CD. This got the wheels in my head spinning faster. I could spend some time developing my Café Press products and have some on hand to include with this party packages. They could include free giveaways with the LittleLDS logo…things like, mugs, hats, throw pillows, t-shirts (for kids), mouse pads, tote bags, pins, stickers, etc…. Or, what if I were to network? What if I were to contact FHE on DVD or Little Play Dates, or another LDS company to create a joint product party model? What if the guests of the party are able to learn about, win, and buy other products besides just my own at the party? Chances are, this would help to advertise my product further. Not only would I be helping other LDS businesses to grow, but they would be helping me too, and neither of us would need to sell our products ourselves. I might have to formalize this on paper and make a few phone calls…