Penguin to Use 'Party Plan' Method to Sell Direct to Consumers

In late June, Penguin Group (USA) announced the launch of a new direct sales division to be aimed primarily at the children's market, with a particular emphasis on preschool and young readers, called "Family Books at Home." Family Books will sell books via a network of "independent consultants," who will utilize a "party plan" method of selling books at gatherings in private homes. Penguin hired former Avon.com president and general manager Len Edwards as the new division's president of direct selling.

"This channel will give consumers access to a wide range of titles that may not always be available in retail stores," said David Shanks, CEO of Penguin Group (USA), in a press release. "This method of direct selling in the home provides the consumer with personalized service and helps us reach segments of the population who may not have sought out our books through other channels."

Independent consultants will be recruited at a number of what Penguin calls "opportunity meetings" and via the Internet. The consultants will manage all aspects of their business online via a Family Books Web site. At launch, the company will feature approximately 200 books, with titles primarily coming from the Dorling Kindersley's line of children's books, as well as selected products from other Penguin Group imprints. In its press release, Penguin stressed that Family Books will not be discounting books and customers will be responsible for shipping and handling on all orders.

John Makinson, chairman and CEO of Penguin Group, explained, "We're always looking for ways to find new readers and we believe this venture will do just that. Our DK children's line is perfectly suited to the direct sale channel, which will attract customers who might not visit a traditional bookstore."

In August 2000, a few months after it purchased DK, Penguin closed DK's Tupperware-style selling unit, Family Learning, which lost over $20 million the year before. The Family Learning operation had been in place prior to the Penguin purchase of DK, however, and a spokesperson for Penguin noted the publisher was in a "much better position from a back office standpoint" to launch the Family Books at Home division.