Hostess rewards programs are an important element of party plan companies. These programs reward people who invite friends and acquaintances to their homes 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:
Hostess vs. Representative
If a person wants to make money, we want that person to enroll as an independent representative. We don’t want to offer money to hostesses because it may interfere with recruiting.
When you give a hostess free product, it costs you less than money. For example, a $20 product may cost your company $5. $5 is less than $20.
When a hostess spends some of her own money at a party, we make money on her purchases. That money we make on her purchases helps to cover the cost of the free products we give her.
Hostesses Are Great Customers
If a hostess buys your products, she is more likely to buy them again. We would like to have hostesses become repeat customers. If a hostess is paid in money instead of free or discounted products, she is less likely to buy once and therefore even less likely to buy again.