House parties touting direct sales products like makeup or Tupperware have been around for a long time. The success of the house party is well-known, and it is quickly growing into a marketing tool for all. With the help of one company, many popular brands are adopting the trend for their own needs.
House Party helps companies reach customers by giving out party kits to various people. Mostly at-home moms, they apply for a chance to throw a party in their own home, and sample a new product before it hits the market. According to Chicago Tribune, in the recent roll out of a Velveeta party kit, nearly 5,000 people decided it was time to celebrate Cheesy Skillets. They are not the only company bringing people together to promote their products. You may also recognize Playstation or Norton. They are both brands that are ready to start a party in your home.
House Party, founded in 2005, has built a database of more than 1 million would-be hosts, mostly 30-something moms, who eagerly compete to throw parties. The firm estimates it will organize 90 events and some 225,000 parties this year, up from about 85,000 parties two years ago. A typical 8- to 12-week campaign costs about $200,000. The company projects revenues of about $20 million this year and hopes to reach $50 million by 2014.
“This is a wonderful way to either augment advertising and marketing that’s already in the field or treat it as its own separate marketing entity where on that singular Saturday, 75,000 people will be advocating, trying and talking about Velveeta,” said Michael Perry, House Party’s CEO.
Recent offerings run the gamut from the Pull-Ups Potty Dance to the Redbook Happy Hour, with tens of thousands of applicants vying to host several thousand parties. The payout is simply a chance to sample new products before they are available to those not lucky enough to make the guest list.
Screenshot from House Party