DH and I were chatting last night, and sort of thought of an idea for a home based selling business, along the lines of Phoenix/Usborne etc. The long term goal would be to see if it takes off and to make it a "party plan" business but I have no idea exactly how these schemes work.
Is there anyone on here who wouldn't mind telling me how the commission things work, as if we do this I'd want to build in the possibility that it could take off and want to have a structure in place from day one that would allow us to do this without having to drastically change pricing? This may all be a pie-in-the-sky pipe dream, but I feel I ought to look into it.
From going to parties, I see that hosts typically get 10 - 20% of the sales at their party as goods (perhaps having to reach a certain sales threshold first) and usually a little gift for hosting. Would I be right in thinking the agents usually buy in their stock at 25% off so that's their commission? What about the area managers - how are they rewarded for their teams? I remember in the dim and distant past knowing a lady who was a Tupperware manager having a car and saying she made huge earnings - how is that possible?
I think my head is going to explode trying to figure out how these (legal) pyramids work!