Hostess rewards programs are an important element of party plan companies. These programs reward people who invite friends and acquaintances to their homes or to online events who purchase products or services from a consultant. Most often, rewards are free and discounted products.

Have you ever wondered why we don’t just pay hostesses money? Here are 4 reasons we don’t recommend this practice:

Customer Loyalty And Hostess Rewards Programs

Free and discounted products are the rewards that direct selling companies offer to customers and hostesses.

While the rewards provided to customers and hostesses are similar, the behaviors we want to see from each are different. When you understand these differences, you will see why a one-size-fits-both approach won’t work.

Customer Behaviors

In our special report 20 Secrets of Successful Direct Selling Companies, the 13th secret is:

Make your M.O. (modus operandi) multiple orders.

We want customers to buy again and again. We can encourage and reward this behavior by providing customers with free products or product credit for their consistency in placing orders or for their total purchases over time.

We may also want customers to introduce the company’s products to their friends. We can offer those who refer customers free products or free product credit when their personally referred customers make purchases.

Customer rewards are not dependent on a party’s sales.

The common thread throughout all customer programs is to reward customers for activities performed over a long period of time. Think marathon.

Hostess Behaviors

Hostesses invite their friends to a party, whether held online, in person, or both. They earn free product credit and discounted product purchase opportunities, the amounts of which are based upon the purchases made by those who were invited to the party.

Hostess Rewards are based fully on the sales generated at a single party.

The common thread of all hostess programs is to reward hostesses based upon the sales made over a short period of time. Think sprint.

Mustard and Ice Cream

Mustard and ice cream are each tasty, but together they would make a nasty treat.

Don’t make the mistake of mixing desired hostess behaviors into a customer loyalty program.

Customer loyalty should not be tied to the sales made to other customers at a party, whether real or cobbled together to meet a party minimum. Likewise, hostess programs should not provide rewards for sales made over a long period of time.

When Hostesses Become Territorial

A successful party is one that generates bookings. A booking is a commitment by a guest who agrees to host her own party on a specific date. Without bookings, there are no more parties.

Sometimes hostesses don’t want their guests hosting another party. They want their guests to purchase only at their parties.

You may be surprised to discover that the territorial hostess is not the problem. It’s the symptom of the problem.

What Is The Problem?

When hostesses become territorial, the problem is a lack of good hostess coaching. Hostess coaching is teaching a hostess what she should do to have a successful party.

I like to say the primary purpose of a party is to get bookings for new parties from it. When everyone at the party has the same circle of friends, no one wants to book because they think they would invite the same people.

It’s much easier to get bookings when not everyone who attends a party knows each other.

Hostesses should be coached by consultants to invite people from all walks of their life. Unlike a dinner party where the hostess works hard to ensure everyone attending knows each other and gets along when a hostess makes her list of guests to invite, it’s best for the consultant and the hostess, too, if people attend from outside the hostess’s warm circle of friends.

Who Should Be Invited?

Hostesses should be encouraged to invite people using the memory jogger below:

Relatives
Friends
Coworkers
Neighbors
Church or social group contacts
People you do business with
People who have invited you to a home party
Spouse’s coworkers or their spouses
Previous coworkers or neighbors
Contacts through our children

Notice that “your closest friends” is not a listed category.

Everyone Wins

With good hostess coaching and a good hostess program that rewards both the current and new hostess for bookings, everybody wins.

The consultant gets more bookings and holds more parties. The current hostess has a larger party, earning hostess benefits from the sales at her party plus additional rewards from bookings. Your company benefits from more parties, more consultants, and more retention.

If your hostesses become territorial, don’t get mad at them. Instead, focus on what can be done differently when coaching a hostess.

Direct Selling Startup Guide

Learn What You Don’t Know

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Chapter 1 – Start Here!

Using This Guide
Answering Your Questions

Chapter 2 – Direct Selling

Home Party Plan and Network Marketing
Multilevel Marketing (MLM)
Direct Selling and Internet Businesses
Affiliate Programs
Direct Selling Products and Services
The Ideal Products for Direct Selling
Qualities You Like
Stages of Business Development
Pilot Programs
Part-Time, Full-Time

Chapter 3 – My Dream

Telling Your Story
Establishing Company Values
Next Steps

Chapter 4 – My Team

Building Your Team
Team Assignments
Interviews of Team Members
Business Building Tasks

Chapter 5 – Goals

Personal Goals
Business Goals
Next Steps

Chapter 6 – Products / Services

Building Your Image
Trademarks
Your Primary Products
Branding
Pricing Strategies
Sales Methods
Selecting Your Sales Methods
Autoship
Your Suppliers
The Multiplier
Number of Products
Product Introductions
Your Second Product
Training and Tools
Income Opportunity Options
Distribution
Next Steps

Chapter 7 – Customers

Product Customers
Income Opportunity Customers
Motivations to Join
Attributes of Successful Independent Representatives
Repeat Customers
Retention
Your Best Customers
Next Steps
Initial Recruiting
Four Stories

Chapter 8 – Initial Recruiting

Local, National, or Global Launch
Fifteen Ways to Recruit
Next Steps

Chapter 9 – Competitors

Competitor Profiles
Overall Assessment of Identified Competitors
Next Steps

Chapter 10 – Software

Startup Options
Selecting A Solution Provider
Software Shopping List
Questions You Should Ask
How To Be A Good Software Client
Next Steps

Chapter 11 – Legal

USA Regulations
Canadian Regulations
Why Do Companies Get Shut Down?
Landmark Cases
Don’t Do List
Legal Advice
Defining Your Legal Entity
Sales Tax Decisions
Managing Your Finances
Forms
Legal Details
Next Steps

Chapter 12 – Business Plan

Purposes of a Business Plan
Business Plan Elements
Additional Business Plan Considerations
Compensation Plans
Forms of Recognition
Hostess Rewards Programs
Leadership Development
Next Steps

Chapter 13 – Money

Costs to Launch Your Company
Post-Launch Cash Needs
Money Sources
What Do Investors Want?
Next Steps

Chapter 14 – Timeline

Major Task List
Constructing Your Timeline

Chapter 15 – Checklist

Checklist of Assignments
Next Steps
The Sylvina Difference

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Reviews

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What You Don’t Know

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Inside Our Direct Selling Guide

Each chapter includes vital information, business building tasks, thought-provoking questions to direct you to action, examples and suggested next steps. Topics covered include:

About Direct Selling
Telling Your Story
Building Your Team
Positioning Your Company
Product and Income Opportunities
Compensation Plans
Assessment of Competitors
Initial Recruiting
Legal Issues
Sales Tax
MLM Software Options
Business Plans
Money
Major Task List
Business Building Checklists
Pilot Program Considerations

and many more.

For more details, view the Table of Contents.

Would you like to know more about what others think of our book? Browse our Guide Comments.

While there are common elements between network marketing businesses, party plan businesses, and other types of businesses, our guide addresses the need-to-know differences.

This extraordinary guide offers not only important reading material to teach you what you need to know, but also groundwork activities at the end of each chapter to give you clarity, focus, and a path to take you to your goal.

Conclusion

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For more information about our guide or our consulting services, contact us today at 503.244.8787 or submit our information request form.