Understanding Host Orders: Commission and Credit Explanation for SS Month 2

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Discussion Overview

This thread explores the understanding of commission and credit related to host orders during the second month of the SS program. Participants share their experiences and thoughts on how commissions are structured in relation to host benefits and discounts.

Discussion Character

  • Anecdotal
  • Opinion-based

Main Points Raised

  • One participant questions whether consultants earn commission on host orders, noting a specific instance where a host's order exceeded $500.
  • Another participant clarifies that commission is not earned on free, half-price, or hostess special items, but is earned on additional purchases made by the host.
  • One participant reflects on the benefits provided to hosts, suggesting that they serve as an incentive for hosts to hold shows, contrasting this with other direct sales companies.
  • Another participant expresses understanding of the commission structure, appreciating the benefits for hosts and acknowledging the positive experience for them.
  • One participant shares a past experience of not realizing they wouldn't earn commission on certain items, leading to disappointment.
  • Another participant mentions that not earning commission on half-price items can enhance credibility with hostesses, emphasizing their belief in the product.
  • One participant notes that while they do not earn commission on half-price cookware, they can cross-sell other items to earn some commission.

Areas of Agreement / Disagreement

Participants generally agree on the lack of commission for host benefits and the rationale behind it, though individual experiences and feelings about the structure vary.

Contextual Notes

The discussion reflects personal experiences and perceptions regarding the commission structure in the context of hosting shows and the benefits provided to hosts.

Who May Find This Useful

Consultants seeking to understand the implications of host orders on their commissions and those looking to share experiences related to the SS program.

straitfan
straitfan
Gold Member
Messages
1,455
Only finishing up SS month 2 and have a question. Am I correct in understanding that we get nothing off of our hosts' order? I had a host last night who bought for her 2 half price items the knife set and the Exec. cookware set. Her hostess order was over $500! We don't make a commission or anything off of that, correct? (her order was more than the whole show!) Think I'm just barely going to scrape up my 1250 for the month, but seems so sad not to get any credit for the big order!
 
You don't make commission of the free, half price or hostess special, but you do make it off of anything else they buy with their discount. I know, it's a bummer isn't it? I also have a hostess who got the cookware and her total is over $300. But, then again, PC is giving them huge discounts as it is and that is what makes them want to have shows for us. I guess I can understand that they really can't give us commission on stuff they are selling for half price and giving away free.
 
The host benefits are a gift to US to help the host be enticed to have a good show. Most direct sale companies make the consultant PAY for those benefits. The company offers them to the host but it comes out of the consultant's pocket.

Use the benefits to your advantage and praise the hosts for earning them! TELL them that they are from PC and that YOU don't pay anything toward them (AND that you don't get commission on them so they don't think that you are pushing them to get the cookware to line your pocket). This also gives us a recruiting opportunity - stress PC's generosity to the host and the consultant.
 
  • Thread starter
  • #4
Thanks for the info. I really do understand the reasons why, and yes, my sister-in-law was thrilled with her bargains! And yes, this is SOOOOOOO much better than ME having to pay her to host the show.
Signing off with a better attitude!
 
My very first show was like this. Too bad I didn't know that I didn't make commission of it then, and spent it before I found out I didn't get it!
 
I think it gives the cookware sales a lot of credibility with my hostesses. I tell them up front that I don't make any commission off of the half-price items but am recommending the cookware because I really believe in it and know they'll love it.

I love that when we have incentives like the cookware sales last February and stoneware this month that they count the half-price, free and hostess special items towards the incentive.

Of course it still would be nice to get that commission ;)!

Michele
 
I agree about the credibility!! Also, when they use cookware as their half price sometimes I can cross sell the nylon tools and make commission off of those if they already used their free stuff! Not much, but something!
 

Frequently Asked Questions

What is a Host Order in Pampered Chef?

A Host Order in Pampered Chef refers to the products that a host selects for themselves as part of their rewards for hosting a party. Hosts can earn discounts or free products based on the sales generated during their party.

How is the commission calculated for Host Orders?

The commission for Host Orders is based on the total sales from the party. Typically, hosts earn a percentage of the total sales, which can vary depending on the sales volume achieved during the party. This commission is then applied to their Host Order as credit.

What is the difference between Host Credit and Commission?

Host Credit is the amount of money a host earns from their party sales that can be used to purchase products at a discount or for free. Commission, on the other hand, is the earnings the consultant receives from the total sales, which is separate from the host's benefits.

Can hosts use their commission to pay for their Host Order?

No, hosts cannot use their commission to pay for their Host Order. The commission is intended for the consultant's earnings, while the Host Credit is what the host can use to select products from their party sales.

What happens if the total sales do not meet the minimum requirement for Host Credit?

If the total sales do not meet the minimum requirement for Host Credit, the host may not qualify for any rewards. It’s important for hosts to encourage sales to ensure they can maximize their benefits from hosting the party.

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