I always use my hostess or party benefits to pay for the gifts and I try not to go over $5. Depending on the size of the party I'll draw 1-3 names using this questionaire I pass out at the beginning.
The drawing gives you the chance to collect people's email, ph. no. and areas of interest. This is especially helpful when you want to enter a customer after the party who hasn't put in an order yet. It also facilitates following up with guests who didn't place an order at the party. It gives the shy ones the chance to share their interest with you too (occasionally someone will check interest in hosting a party without saying anything at the party).
And, let's face it, winning is FUN!
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