So, I don't know what to call these people but they sell:
Mary Kay
TupperWare
Lia Sophia
Pampered Chef
Amway
Avon
Thirty-One
Between the sheets/Sheer expressions lingerie
Ardyss Life
Body Magic
etc...

I have been hit up by a consultant/friend to be part of a party from each of these companies.

These are pyramid schemes, right? Also, who gets into selling this stuff? I like some of the products but I def don't like it enough to sell it and having to constantly hit up your friends/coworkers to come to parties or host them has to be a difficult task.

I just don't want to host a party or be a consultant and I don't really want to get roped into going to a party and buying this stuff.

10/26/2010 8:51:15 PM

It's about getting a sales audience.

If you host a party, it might be fun....maybe. But the fact of the matter is the consultant is using YOU to gather an audience that they can sell their shit to.

If you are a consultant...well, yeah. You're basically peddling some company's product to YOUR friends, and friend's friends. Depending on the company, they want you to buy some of their shit to showcase. You can't return it.

10/26/2010 8:55:58 PM

10/26/2010 9:01:51 PM

Don't do it!1

well.. think about the sex toy one.

10/26/2010 9:02:01 PM

I realize this thread is about pyramid schemes....which I stay the fuck away from. Hear me out, maybe I can offer some insight.

I am in outside sales, which is currently salary+commission, but will move into straight commission starting at the beginning of July 2011. I have been in this position since July 2010. I have competition from several direct manufacturing sales reps, large distributors, and local distributors. Here are the advantages and disadvantages of each:

Direct Advantages: Immediate knowledge of new technology, no middle man mark up, one shipping bill (paid by manufacturer or buyer of goods), access to larger range of non-commodity items, control inventory, have access to many distributors that can effectively sell their goods which increases market share, and set prices of commodity they manufacture.

Direct disadvantages: Typically have 1-3 sales reps per region (i.e. southeast, mid-atlantic, northeast, etc.) limiting the number of accounts they can successfully manage/cold-call, lack physical customer service or physical technical service available to or affordable for smaller users or altogether, are sometimes not trustworthy because they will go in behind their distributors that sell their commodity to one account in large quantities (i.e. they missed a big account, and have found out about it through a distributor selling their particular product) which leads to the distributor not selling their product anymore, have too many distributors selling the product ultimately driving the set price down through deviations, possibly rely on distributors to actually sell the product, and competition from other direct sources.

Large distributor advantages: have access to other commodities that go hand in hand with other manufacturers (poor example- grocery stores sell milk as well as cereal), get direct pricing, many locations regionally or nationally easing the shipping burden of buyers with multiple locations, personal service either customer or technical, many sales reps that are able to cover a broader territory, access to multiple manufacturers of the same commodity allowing to keep prices in check, service programs that smaller companies can't offer and direct providers can't match in price or value, and experts of many many commodities as opposed to one or a few.

Large distributor disadvantages: smaller local distributors creating price wars (think Michael Scott Paper Co vs Dunder-Mifflin), direct mfg's going in behind and stealing business, limited access to all of the mfg's (you won't find Harris Teeter name brands in Food Lion and visa versa), can't truly set prices because it's based on both supply and demand, territory management, and tough growth prospects in slower economies (this is true for direct as well really)

Local distributor advantages: Typically a good ol' boy setting where the seller and the buyer know each other for years (this does happen at all levels, but mostly at the local level), local folks are right down the street and can be used in emergencies, if the local guy buys at high enough volumes then there is no shipping charge to the end user, and access to both direct mfg's and large distributors.

Local distributor disadvantages: easily beaten in price, array of commodities, array of technology, lack of trained staff, low cash flow, etc etc etc.

This is what I have noticed in my four months, I am sure there are plenty more that need mentioning. The way I am setting myself apart as a sales person is this: I go after the big accounts right now while I am new. The big accounts, if I land them, will take care of me while I am new and building a customer base. The money made off of those allows me to focus free time on smaller accounts that get me higher margins. I build up big accounts, I would like to have 5-10 of these, then get 20-30 medium accounts. If I lose 1 or 2 big accounts, the 20-30 medium accounts keep me afloat while I go after new big accounts. I don't really waste time on small accounts simply because they basically pay for breakfast or something really small.

I will say this, if you can't get a big account in the first 6-8 months (assuming you have cash flow that you can ride this long) you could be in a world of trouble. If you can get one, it will really make going after the others a lot more enjoyable and less stressful. It's simply just very exhausting wasting any time on anything other than big accounts in the very beginning. You work just as hard on the medium sized accounts and see 1/3 to 1/36 of the money in my situation.

If you have any other questions, you can PM me. I hope this helps in the slightest!

10/26/2010 9:05:43 PM

i don't host parties but a bunch of my co-workers have (31, tastefully simple -- the best imo, pampered chef) and they've always been pretty fun. they end up getting a lot of free/cheap stuff too. i've been to 3 tastefully simple parties and i have bought a couple things but i mostly like them because they serve alcohol and the food is really good!

10/26/2010 9:28:06 PM

I def love pampered chef products too and will buy those again but for most of the other stuff, I always feel guilted into buying tings because I really don't see a need for the stuff.

10/26/2010 9:32:22 PM

i don't go to pampered chef parties because they are a waste of time and everything they sell i could buy at target for much cheaper and the same quality. tastefully simple is fine for things i am not going to make by myself (the beer bread is yummy!) but since i cook a lot (unlike many of my coworkers) a lot of it is kind of stupid.

10/26/2010 9:34:38 PM

Ugh. I have a friend who hosts these things constantly. My rule is that I only go if it's something I am planning to buy in the near future anyway.

10/26/2010 9:47:38 PM

i just like the stone ware from pampered chef. That is all I buy.

10/26/2010 9:50:31 PM

i am actually going to a tastefully simple party on friday. i think she strategically planned for it to be on payday

10/26/2010 9:51:46 PM

My hairstylist is the worst for hounding me about this. I almost want to switch hairstylist but she is the best person I have found in years to do my hair...I have told her before I don't want the stuff.

10/26/2010 9:53:49 PM

Wait. Wait a second ladies.

You're telling me that companies have taken your knack of spending un-Godly amounts of money on shit you don't need and using your friends to peddle more of their shit to you at a higher cost? These companies are brilliant.

"Oh! Women love to shop, right? So how about we sell our shit to a consultant, who sells it to women, who sells it to their friends! Who cares if the woman actually sells the shit she bought, we still gots her monies!"

Seriously. Women. How have you not figured this out?

10/26/2010 10:02:24 PM

the hosts don't have to buy anything to sell, and i don't think that's how it works for the consultants either, but it could differ depending on the company.

10/26/2010 10:05:42 PM

warren buffet likes the Pampered Chef so it must be cool

10/26/2010 10:08:52 PM

yeah when i sold sex toys i had to buy a kit and hit up all my friends and family. some companies have a buy back program for your kit if you get out of the business but mine was really strict.

10/26/2010 10:26:30 PM

^in that instance, I would really hope so.

ETA: I once worked with this mentally challenged girl who kept bugging all the women in the office to lend her a vibrator. Someone actually did, and then the poor girl kept trying to return it when she was done. [/threadjack]

[Edited on October 26, 2010 at 10:48 PM. Reason : "That thing really tore me up!"]

10/26/2010 10:46:03 PM

Didn't Metricula sell sex toys at parties at some point? She might have some input.

[Edited on October 26, 2010 at 10:49 PM. Reason : wording ]

10/26/2010 10:47:40 PM

My ex sells mary kay. it sucks.

10/26/2010 10:52:24 PM