The party host uses his or her reputation and knowledge of the product to promote it sales among invited guests thereby stimulating impulse buying.

The party plan sales allow for a variety of products to be displayed, demonstrated and promoted by word-of-mouth. This also gives room for questions and personal testimonial by the hostess and the companys sales representatives present at the party. This plan combines party fun in-home parties, togetherness and bonding. Existing users are given a discount on purchases and are motivated to invite other guests to the next party or sponsor a home party or new sales representatives.

If effectively done the party plan can give birth to a party plan group (PPG) from which hostesses can be recruited from and the sales party taken to various homes and location with the intention of driving more sales and recruiting more end-users of the products. Today, party plan parties are conducted virtually with varieties of products.

THE ADVANTAGES OF PARTY PLAN SELLING MODEL

1. Easy to start as it relies on people lifestyle and to a large extent fun driven
2. Host or hostess are motivated by gift, cash or credit for future purchases
3. Success stories recorded by leading companies known for using party plan and these will include Discovery Toys, Tupperware, Home Interiors, JAFRA Cosmetics and others
4. It encourages mentoring and coaching for new recruits, consultants, and sales representatives
5. It is a business type that can be done without many headaches considering that fact that social events are common in our society and such events usually draw huge attendance.

DISADVANTAGES OF THE PARTY PLAN MODEL

1. Impulsive buying and pressuring guests to buy the demonstrated products is sometimes considered inappropriate
2. Quality of the merchandisers are sometimes suspects
Like every other business, a thorough investigation is required and a good relationship must be established with the company beyond the purse party host and the consultants.

HYBRID DIRECT SALES AND MARKETING MODEL

Direct sales companies are constantly adopting methods and technology at ensuring that all classes of people are dragged in by their nets. The use of technology is structured to effectively manage the compensation plans, support auto-shipment, reward individuals effort and at the same time promotes networking in such a way that both party plan and multilevel systems are combined.
The hybrid system takes care of those who are interested in products and as well those who wanted both the products and the business opportunity that it offers through networking. In the words of Belinda Ellsworth, the hybrid direct sales model is a combination, in both pay structure and business practices, of network marketing and party plan,
The hybrid direct sales model offers a more acceptable business plan that cut across demography and allays their fears of many. It brings the best of SLM, Party Plan, and MLM. This is the trend now and should be embraced by direct selling companies.
The need to expand coverage, reduce cost and provide an opportunity for the new generation of young people who are better with technology and the telemarketing systems are some of the major reasons why a hybrid system should be taken more seriously. For example, trading in forex, gold and digital currency follows the hybrid marketing system and it is gaining much ground in formally traditional societies and accepted by a vast majority of the people that still want their privacy to be maintained while trading online.

ADVANTAGES OF THE HYBRID MARKETING SYSTEM

1. It uses multi-channel or a hybrid distribution system. Modern day direct sales organizations are determined to compete effectively and that win more customers using different distribution channels that were hitherto the reserves of the conventional marketing organization. Unlike traditional direct sales organizations which sell and compensates distributors using the single system, the hybrid organization now adopt matrix payment and a combination of binary and hybrid system.

2. It enables organizations in the direct sales business reach a wider market. Beyond word-of-mouth, door€“to-door, purse party plan etc multilevel marketing companies now use online facilities, Telemarketing, low-cost communication system. Today, network marketers can recruitment downlines in far away countries and get paid in their local currencies i.e., OrganoGold Nigeria was built by ambassadors in Jamaica, Alliance In Motion Global Nigeria was develop by Alliance In Motion Global Philippines, Syntek Global USA pioneered Syntek Global Nigeria.

3. It widens the demography and dragnets for more people to be brought into the direct sales business. Today, people open a business account, children account and sometimes an entire family are engaged in network marketing because of the hybrid system that is both convenient for the older generations as well as the new generation.

DISADVANTAGES OF THE HYBRID MODEL

1. Channel Conflict. Adopting multiple channels can sometimes be problematic if not well coordinated; we have instances of delay delivery of products and breakdown in the system thereby making auto-shipment of order product impossible.

2. Lack of Control. The hybrid direct sales models is a combination of both party plan and multilevel marketing system, hence the likelihood of slackness in control may be prevalent since members are given some level of freedom in their operation.

3. Likely compromise in product quality. Although modern direct sales companies are constantly refining their production system, still, the tendency for laxity is to be considered since product are delivered from multiple distribution centers.

4. System failure. Because the hybrid model relies so much on technology the likelihood of system failure is a probability especially when it comes to compensation which is so diverse and tempting.

NETWORK OR MULTILEVEL MARKETING MODEL

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DIFFERENT TYPES OF DIRECT MARKETING MODEL

SINGLE LEVEL MARKETING MODEL (SLM)

The single level marketing and selling model recognize direct relationship between the sellers and the parent company from which the sellers buys and sell directly to the others end users without the need for sponsorship or recruitment of down lines. In an SLM system, the seller buys directly from the parent company and in turn sells directly to customers or product end-users usually families and friends.
In single level marketing, sellers are rewarded based on their personal sales activities, what matters here are the sellers personal efforts and abilities to create customers or buyers that they sell to directly. The seller earns income in the form of commission and bonus from both personal purchases and sales made.
Companies such as Mary Kay, Fuller Brush products, and Lia Sophia Jewelry sell their products using the single level marketing system.

ADVANTAGES

The single level marketing models have some advantages that are worth noting:
1. Low cost in up-front Investment. A single level marketing platform is easy to join because it is reasonably affordable and does not require huge investment and once a potential seller meets the companys requirements he or she might only be required to buy the starter pack.
2. Direct Relationship is established between the seller and the parent company. Single level marketing avails the single level seller to directly relates to the parent company with little or no interference from go-betweens
3. Single level sellers receive enormous support from the parent companies in areas of product training, sales strategy and promotions.
4. It allows for flexible time and schedules. It is a home business so it is convenient to undertake.
5. Less risk as minimal startup capital is required and product purchases limited to individuals capacity.
DISADVANTAGES
1. Volume of sales may be limited since SLM is based on individuals effort as against group effort
2. Lack of monitoring and control by the parent company on the activity of the single level seller might engender strife and strain relationship
3. Since sales are mostly based on personal testimony and demonstration it may be difficult to win doubters over.

LINKED: HISTORICAL EVOLUTION OF DIRECT SELLING
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REVEREND JAMES ROBINSON GRAVES SOUTHWESTERN PUBLISHING HOUSE AND THE AMERICAN CIVIL WAR.

Reverend James Robinson was one of the greatest advocates of the cause of south America, his religious fervency and creativity contributed to the establishment of the Southwestern Publishing House which invented a unique way of publishing and selling of books during and after the American civil war that started on the 12th of April, 1861. Before the war the North had economic advantages over the South, it was not too long after the war started that the South realized the negative effects of economic dependence on the North. It got to a point following the blockade that the South recognizes the fragility of their economy and that they could not find publishing materials such as plates to produce the Bible to help the soldiers stayed closer to God in faith at the war front and families at home build their faiths on the word of God.
In the heat of the civil war, Reverend James Robinson was able to work through the blockade at the risk to his life to get printing materials to Nashville Tennessee and embarked on the printing of what later became the Little Bible or the pocket-sized friendly Bibles.

WHAT IS THE CONNECTION OF THIS TO DIRECT MARKETING AND SALES?

After the war, the South and its economy were destroyed extensively and it was realized that the youth could not go or return back to college. In order to keep them productive and get them back to school, Reverend James Robinson developed a unique selling method To meet the needs of their pockets and their soul a new sales concept was developed in which over 100,000 young men were engaged as sales agent to sell Southwesterns Bibles and other book materials from door-to-door instead of selling via mail order. Using this sales method the company prospered, the youth had a sense of pride in them and were able to go back to school.
As we speak today Southwestern Publishing Company founded in 1855 still exist and doing well as one of the leading publishing companies with a unique history and impact on the history of direct marketing and sales. (See www.southwesternmd.wordpress.com).
Linked to DIRECT SELLING AND MULTILEVEL MARKETING AN UNTAPPED GOLDMINE IN NIGERIA

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The question is why does the whole of African have an insignificant 1% of sales from direct selling except for the not too impressive performance of South Africa in Cosmetics and Personal Care Items?
Not to talk of Nigeria where doubt and lack of will to tap into this global goldmine is still undermining the revenue generating potentials for government, businesses, and individuals. I am particularly interested in routing appetite for direct sales, enhancing economic activities in direct selling/marketing and to help in demystifying the unfounded beliefs that all direct sales companies engage in pyramid scheming or Ponzis. Like every other business endeavor, direct selling has its fundamental rules and principles and certain observable criteria that must be followed to succeed.
I will pay attention to the how of direct selling, look at the various types of direct sales models and how organizations and individuals can make it work for them.

WHAT IS DIRECT SELLING?

This is a sales channel or method of selling, where organizations sell or market their products directly or through representatives to customers thereby eliminating the need for middlemen. In direct sales channel, wholesalers, retailers, and advertisers are not necessarily required. This business typically can be done face-to-face, through demonstration and via the internet; it can be done in a group or party plan and another personal contact format.
According to the definition given by Avon company It is about building relationships with people and offering a high level of service and personal attention
IT MUST HAVE STARTED SOMEWHERE!!

WHAT IS THE STORY BEHIND DIRECT SALES?

Obviously, direct sale channel must have evolved from an attempt by individuals to satisfy their needs outside subsistence farming which restrict their desires and abilities to meet those desires to personal effort and ability. People were quick to realize that if they must satisfy all their needs then the need to buy from others becomes essential and because they dont have the luxury advertisement and long distance traveling mode they naturally approached neighbors who have needs for what they can produce in exchange for what they need.
Direct sales appear to be the oldest sales channel in history.
In the words of J.M. Emmert, direct sale €¦ began appearing alongside the development of civilizations. As hunter-gatherers settled down to farm and build towns, the first direct sellers began to sell their wares across Europe, Africa, and Asia.
Trade by barter or the exchange of goods for goods in traditional communities without the use of cash or money is largely linked to direct sales where one farmer takes his produce to another who had the need for it in exchange for what he or she needed is a typical example of direct sales.

NEXT – HISTORICAL EVOLUTION OF DIRECT SALES

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