Testing your ideas and business model may quite possibly be the most important (and most overlooked) step in the process of starting your new MLM company or home party business.  Some companies (especially home party companies) conduct pilots or test parties before launching their direct selling businesses.

MLM pilots and test parties can provide answers to these important considerations:

• Will guests buy our products at home parties?
• How much will the average guest spend on products and services?
• How much will the average party generate in sales?
• How much will hostesses spend?
• What percentage of guests will host a party of their own?
• What percentage of guests will be interested in becoming a rep?
• Is the hostess rewards program configured correctly for your business?
• Does the sales presentation script work well?
• What do guests like best about your home parties?
• What can you do to make the parties more enjoyable and more successful?

As you collect information from each test party you will have valuable information for setting commission percentages on personal sales, setting expectations and dollar-per-hour earnings from the compensation plan, and specifics of the hostess rewards program.

The test party outline included in the LaunchSmart workshop guides you through defining the program’s goals, which decisions need to be made, which tasks are to be performed, which materials need to be developed, and which responsibilities to be assigned.  Along with schedules and timelines, you’re all set to learn from the pilots and test parties.

Historians say that more millionaires were created during the great depression than in any other point in history.

I’m amazed by the number of entrepreneurs and dreamers who are coming forward in our down times to launch new business.  Somebody forgot to tell them that times are tough!

These are the women and men embracing the American dream.  They have the courage to dream, the discipline to think, and the backbone to act.  So far this week we have served more than ten individuals and companies who are up to their elbows in starting and running their MLM companies and Home Party Plan businesses.  Ranging from eLease who is placing the first round of test market assumptions to their idea of expansion through direct selling, to Endless Glow – a home party company providing airbrush tanning services and products by two lovely sisters who aren’t aware that there is a recession.

Somebody forgot to tell them.

We see it over and over again. Entrepreneurs come up with a great new product idea, they spend hundreds of thousands of dollars setting up and launching a MLM of Party Plan company – but, they never bother to do any market research up front to see what their target market thinks of their product.

Probably the most classic case ever was Purina – who years ago made this mistake with a new dog food. Spent tons of money introducing it – but – guess what? Dogs hated it. They had never done a taste test!

Before you charge too far, hire a marketing firm to do some focus groups for you. You can get feedback on your product, the services you intend to offer, your pricing, your compensation methods, even “little” things like your name and logo.

A little money invested up front will help you fine tune things – or maybe even reinvent things – and will greatly increase your likelihood of success!!

Contact us for more information on how we can assist!