Posted in Marketing and Strategy Terms, Total Reads: 717
Definition: Party Selling
The party selling is a form of direct sales technique. Basically the party plan refers to selling goods or services to people from a customer or hostess’ home or any generic location. The host thus becomes a kind of sales representative and receives a commission instead.
For example, suppose a firm has launched a new line of kitchenware. Instead of going door to door, the sales representative might ask a friend to host a party in which the product will be demonstrated and people will be encouraged to touch and feel the product and also make purchases. In this way, we get a large group of potential customers under one roof. The host may get an incentive to have the party plan in his house and also on the number of products purchased.
The party selling concept was first developed by the Tupperware Company and since then has evolved to include a great many products.