How To Save $18,200 In Your First Year Alone!  

Surviving in business is hard enough, creating sufficient profit to stay in business is even harder.  Selecting the right sex toy home party company can be confusing and often times frustrating.


We’ve compiled the Top 5 Most Expensive Mistakes Made When Selecting A Romance Party Company as an industry resource for those exploring this wonderful home-based business.


All earnings assume 4 parties per month, $500 average party earning 40% commissions.


Mistake #1 - Allowing For A Non-Compete Clause

Brief Overview: You're not allowed to work for another company if you decide to leave.

Consultant agreements often contain language prohibiting a consultant from leaving one company to join a competing company in the same industry. This is called a Non-Compete Clause or Non-Compete Agreement. 

If the company you join doesn’t seem like a good fit, and you decide to leave for a competing company that seems to suit your needs, your old company may exercise their right to sue you in a court of law for breach of contract.  This is an attempt to prohibit you from working for a competitor for the time period stated it states in your agreement, typically 1 year, but some go as high as 2 years. 

If you decide to fight the lawsuit, you will need to hire an attorney. 

Win or Lose, you still pay your attorney’s fees.

If you don’t fight it, a default judgment will be filed against you and you will automatically lose.

Potential Lost Profits For 1 Year Of Waiting In Year 2 - $9,600 (not including legal fees)


Mistake #2 - Accepting Less Pay For Equal Work

Brief Overview: Some companies pay you less even though the products and work requirements are similar.


You should never overlook earning more money for the same amount of work.  Provided the company is well established, has a great product line and offers a wide range of consultant support, there is no reason anyone should accept less pay for equal work.

Company buying discounts range from 25% of sales to 60% of sales depending on the product line.  You should compare like-kind companies when matching up the pay scale.

Your eCommerce website should automatically take on-line orders and issue you the same commission % as you would receive for processing the same order in person, after all, it’s still your customer.

To determine potential lost profits, we’ll assume you selected a company paying a 40% buying discount verses a 50% discount.

Potential 1st Year Lost Profits - $2,400


Mistake #3 - Getting Stuck With The Bill

Brief Overview:  Paying for your hostess rewards gifts should be the responsibility of the company, not you.


Providing your Hostess with free gifts as a “Thank You” is common practice, after all, they helped gather their friends and family so you have an audience to sell to.

Giving your Hostesses a 10% shopping spree on $2,000 in average sales each month equals $200 worth of free products.  Getting stuck with the bill for these gifts is very expensive. 

Assuming you’re at a 40% buying discount, you will spend $120 per month to simply say “Thanks”. 

Hostess rewards offered to hostesses should be equal to or higher than your competitors so you won’t have to pony up the difference to compete for parties.  The industry average is 10% of party sales.  Not finding a company that has a low or no cost option for hostess rewards really adds up as you’ll be on the hook for paying for these shopping sprees at your current buying discount.

Potential 1st Year Lost Profits - $2,400


Mistake #4 - Allowing Your Competition To Speak With Your Hostess Or Potential Team Member First

Brief Overview:  A lack of technology will put your business at a disadvantage.


Assume that 10 new potential hostesses contacted both you and your nearest competitor each month, with all things being the same, over time, 50% would book a party with you, and 50% would book a party with your competitor.

What % would you get if you had the ability to speak with all 10 potential Hostesses every month before your competitor had the chance to? 60%, 70% or even 80%?  What would that mean to your business and to your pocket book?   What if your competitors had this advantage over you? 

Some companies lack the technology to prevent this very situation from happening.  An instant alert to on-line website inquiries through a simple Text Messaging Software platform would end this glaring disadvantage and would allow you to connect with your Hostess first, before the competition does.

Assuming you would lose just 1 party per month to your competitor from your pool of leads at an average profit of $200 per party:

Potential 1st Year Lost Profits - $2,400


Mistake #5 - Doing More Than Your Fair Share (Time is Money)

Brief Overview:  A lack of services provided by the corporate office costs you more than you think.


Time Truly is Money - Time is the only commodity that none of us can buy more of, we each have a finite amount of it and the more we waste it, the more expensive it gets.

While it’s hard to determine the true cost of doing busy work, we can safely say that if you had to do all these things in you business, you’d waste approximately $200 per month in lost revenue (vs. the company doing these things for you). 

The company should collect & file state sales taxes on your behalf.

The company should ship direct to hostesses and customers and pre-pack all orders according to guest so you don’t have to “repack & reship” on your own.

On-line orders should ship automatically without your involvement in the ordering process.

Company should provide tax reports, profit & loss statements and a historical record of all your purchases in real time, 24/7, with just the click of the mouse.

Potential 1st Year Lost Profits - $2,400


These Common Mistakes Can Add Up To $18,200 In Your First Year Alone!


All earnings assume 4 parties per month, $500 average party earning 40% commissions.


Free Industry Report Supplied As A Courtesy By:

All figures are for illustration purposes only.  Many variables, known and unknown, exist that may increase or decrease profit.

Brown Bag Party Inc. 

Brown Bag Party is a nationwide romance home party company based in southern California.  We offer a variety of romance products through a network of independent romance consultants. 

Brown Bag Party Offers:

1) No non-compete clauses

2) 40 to 50% Commissions With No Sales Quotas

3) Free Company Paid Hostess Rewards

4) Qik Alert - Speak To Your Customers First!

5) Services To Save You Money

To learn more visit: www.BrownBagParty.com

 

 

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