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House party
Entrepreneur, August, 2005 by Gwen Moran
Andrew Shure would love to party with your pets. The 42-year-old owner of Shure Pets, a Chicago pet products Company that sells pet accessories, including Hawaiian shirts for dogs, water dishes shaped like bistro mugs and more, bet his business model on the fact that direct selling through home parties would be successful. And he was right: Almost two years after startup, his company has added more than 530 independent consultants throughout the country and Puerto Rico, bringing projected 2005 sales to $1 million.
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That kind of growth is not uncommon, says Amy Robinson of the Direct Selling Association (www.dsa.org). In-home sales accounted for 62 percent of the $29.5 billion in direct sales in 2003, she says. Home parties appeal to people with busy lives and can work for everything from golf clubs to scrapbooking supplies. Robinson offers these tips for success:
* USE WORD-OF-MOUTH MARKETING. Representatives should tap family and friends to host in-home parties.
* SHOWCASE YOUR PRODUCT. Says Shure, "In-home demonstrations let us show our customers which products are the best choices for them."
* INCLUDE AN EDUCATIONAL COMPONENT. If you're selling golf clubs, include useful information on improving one's swing. Says Robinson, "People want to walk away with helpful information."
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