Profit Party: Exploring Today’s Adult Home Party Business Climate

Erin V.

Sex in America is alive and well. And, with all of the new products entering the marketplace with specific forms, features and functions, adult home parties are still the best place to teach a captive audience how to get everything from an adult toy that the manufacturer promises.

Take a deeper look into adult home party sales— the lingering effects of the recession, including reduced consumer spending, negatively impacted the direct selling industry early in the five years to 2015. However, revenue has gained ground since the economic downturn. The gradually improving economy is expected to lead to higher income levels and, consequently, higher discretionary spending. Now that we are in the recovery phase of the recent real estate bust along with the nation’s economy on the upswing, in the five years to 2020 the direct selling industry is expected to continue to grow, driven by improved consumer confidence and disposable income.

Today’s adult home party playing field is peppered with burgeoning companies that are taking notice of both the changing landscape of adult toys and more sophisticated consumer preferences.

And, many Americans who lost their jobs in the wake of the recession established direct selling businesses as a means of income due to the relatively low start-up costs, thus boosting revenue growth. Why? Because the direct selling industry exhibits minimal barriers to entry, with low establishment costs and no licensing requirements that prevent companies from entering the industry. Most are individually-owned or independent contractors, therefore startup costs are low because there is little need to invest heavily in technological equipment, such as computerized inventory controls and point-of-sale systems.

More than 18 million people were involved in direct selling in 2014 with estimated retail sales reaching $34.5 billion, a 5.5 percent increase from 2013. Nine billion of those reported sales came from home party planning. The direct sales channel continues to experience steady growth as more individuals generated more revenue in 2014 than any year previously. According to the Washington, D.C.-based Direct Selling Association, about one-third of the 300 direct-sales companies registered with the association are party plans.

Industry heavy hitter Pure Romance has the largest network of adult home party resellers reporting their salesforce stands at 25,000 consultants, who are actually independent business contractors around the country selling their products. Pure Romance started in the basement of founder Patty Brisben’s home in 1993. Since 2001 the company has grown from $3 million a year in sales to $130 million in 2014.

According to the company, the recipe for their success is based on their consultants offering a safe environment for women to ask questions and learn more about improving their relationships. 

But why? Industry experts agree that the mystery of sex is part of what makes sex sell. We can learn more and more everyday about sex and our own sexuality and there will still be more questions to ask. We buy lubes, toys and lingerie over and over because one time is rarely enough to say,”Ok, I’m over it!” Adult home party companies get to help people learn a little more about their own sexuality that is an essential part of who we are as human beings.

Today’s adult home party playing field is peppered with burgeoning companies that are taking notice of both the changing landscape of adult toys and more sophisticated consumer preferences. Because, it is likely the adult home party guest has shopped online and they will continue to make online feature and benefit comparisons after the home party. If they don’t know what’s new to the marketplace yet, with a few strategic clicks on the Internet, they will.

Lovewinx, a relatively new adult home party company, prides itself on home party demonstrations that help women of all ages and lifestyles to become more sexually aware by bringing romance, fun, fantasy and creativity into their relationships. Lovewinx has an impressive catalog of sophisticated product while still remaining inherent to the basic principles of women-centric home demonstrations that make this genre of adult novelty sales profitable.

According to the Direct Selling June 2015 Market Research Report, intensifying competition from alternative retail channels, most notably e-tailers, will temper demand for products sold by direct sellers. For this reason, adult home party reps will need to emphasize their personalized service to maximize sales.

Today’s evolving and highly digital technological society demands convenience over nearly everything else. For this reason, subscription commercecompanies are proliferating, as consumers want to eliminate the inconvenience of having to buy items over and over again.

In addition to convenience, many subscription models offer cost-saving advantages to end users, according to a report by JD Supra. Rather than paying expensive fees for every purchase, consumers prefer the low upfront expenses usually associated with buying goods or services through a subscription. Furthermore, the monthly or other periodic payments are often offered at a discount, enhancing overall satisfaction and fun factor. Companies also benefit from using a subscription model because satisfied customers will likely return for future purchases.

With that in mind, new adult home party companies are willing to go the extra mile and offer personalized service. Bee Smart N Sexy, an adult home party new comer, offers a catalog of the latest in new technologies and a shopping concierge. According to the company, their independent consultants have superior training in all aspects of adult novelties and romance enhancements. Customers can take advantage of the product bundles packaged into a subscription service that caters to the individuals taste and budget. By combining adult industry knowledge with a product subscription service, Bee Smart N Sexy strives to create personal and trusted relationships with their customer.

“It’s all about the training you can offer your consultants,“ said Linda Cerce, Bee Smart N Sexy consultant. “The adult toy industry is so vast and the extensive product lines increase each season. You need a clear understanding how they work and how they affect your body in the most advantageous way. Training gives you the confidence to make product recommendations that builds a lasting trust between you and your customers.”

You can easily get involved in adult home parties because there are no barriers to entry. Other than being over 18, there are no education and experience requirements to participate. When the Direct Sales Association did a survey of why people became direct sales reps, the three main reasons were 1) to make more money, 2) being in business by yourself and 3) free products. There’s a saying in the home party industry, “Like it, place an order; love it, host a party; want it all, become a consultant.” This is a smart rule to follow because the more passionate you are about the product, the easier it is to sell them. If you are passionate about adult toys, sexuality, and improving someone’s experience in the bedroom, then adult home party sales are for you.

Erin V. is the marketing and vendor liaison for Williams Trading Company. Williams Trading Co. is a full line adult wholesale distributor with more than 40 years of excellence in the industry, carrying more 20,000 different items, with new products added weekly.