A pilot program is a group of activities planned as a test or a trial of a business model. Pilot programs can help direct selling companies to answer some of the most important questions relating to the viability of your business model.
Most often, pilot programs are executed by party plan companies. Through a pilot program, you will learn:
1. Will guests buy your products at home parties?
2. How much will the average guest spend?
3. How much will the average party generate in sales?
4. How much will hostesses spend?
5. Is your hostess rewards program configured correctly for your business?
6. Will some guests agree to book their own parties (where they will be the hostess)?
7. What is the level of interest in your income opportunity?
8. Does the sales presentation script work well?
9. What do guests like best about your home parties?
10. What can you do to make the parties even more enjoyable?
Network marketing companies can also have pilot programs. Through them, one can learn:
1. Will representatives buy your products?
2. Will retail customers buy your products?
3. How much will the average order generate in sales?
4. What is the level of interest in your income opportunity?
A pre-launch is a designated period of time during which a direct selling company will pre-enroll representatives prior to its official launch. Sometimes during the pre-launch, a company may offer its products for sale. At other times, only starter kits are sold. Most pre-launch periods last anywhere from 2 to 6 months.
Pre-launches are designed to be “momentum generators.” Like priming the pump on a lawnmower, the company will grow faster at the outset if the engine of growth is fueled and ready to go.
During a pre-launch period, representatives know that not everything they expect from the company will be present or will be working perfectly. Chaos may be the word of the day, but in exchange for the chaos, representatives get to be “on the ground floor”. It is an exciting time for everyone.
A launch is the official birth of a company. A launch may be signified by an event where many of the initial representatives are present or it may merely be a date on a calendar. Launches are celebrations, usually accompanied by announcements of new products or sales tools.
How should pilot programs and pre-launches be implemented? We recommend you consider one of three options.
Run the pilot. If successful, have a break, then a pre-launch period followed immediately by your launch.
Run the pilot. If successful, have a break, then launch the company without a pre-launch.
Run the pilot, then immediately launch the company if the pilot is successful.
For help with your pilot, pre-launch, or launch, contact Sylvina Consulting at 503.244.8787.