AT&T, Jockey and Aerosoles Newest to Adopt Network Marketing

Posted on 17. Oct, 2006 by Ty Tribble in Network Marketing - MLM

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It is no longer a question of if major companies will adopt Network Marketing, it is now only a question of when...

Brandweek:

With all the new options for communications media, ranging from mobile to blogs to satellite radio, what's a marketer to do? Party!

Companies ranging from AT&T to Aerosoles to Jockey are rediscovering house parties, Tupperware's innovation from the 1950s.

The programs generally work like this: Marketers pay women (and they're usually women) or give them free products to sell at parties. The women invite their friends, who can order the products.

That's how Jockey's Person-to-Person initiative works. The program, launched last year, employs "comfort specialists" who receive a training manual and DVD, a product guide, party cards and a bra fit and measuring guide. Jones New York started a similar program this year. Jones expects to recruit more than 3,000 style consultants to show the brand's jewelry and accessories. The consultants get commissions as high as 35%.

Aerosoles has marketed its shoes via home parties for at least five years. The number of Aerosoles home parties jumped 40% in the first quarter this year compared to last.

Karen Sadick, evp-retail merchandising, credited busy lifestyles and multichannel shopping habits comprising everything from catalogs to the Internet to discounters. Now, Aerosoles is going beyond house parties and hitting offices, hair salons and dentist offices.

Apparel companies aren't the only ones tapping house parties. Michael DeRose, co-founder/CEO of House Party Inc., Irvington, N.Y., targets backyard Fourth of July barbecues, Halloween parties and New Year's Eve celebrations to promote products including CDs, DVDs, TV shows and video releases. AT&T, meanwhile, uses house parties to promote U-verse, its TV-over-phone line service.