What is Direct Selling?
Direct Selling is the sale of a consumer product or service, person-to-person, away from a fixed retail location. Sales are typically made through party plan and other personal contact arrangements.
Direct selling is ideal for products that require more demonstration or explanation than provided in retail stores. It is also an attractive channel for suppliers who can’t compete for space on retail shelves.
The industry is supported by a variety of systems for managing distributor networks. Direct selling embraces a broad range of products, with a growing presence in the cosmetic and nutritional supplement markets. Importantly, industry rewards are exclusively tied to the sale of products.
What is the difference between Direct Selling and Network Marketing
Direct selling is a distribution method, where Multi-level marketing (MLM), also referred to as network marketing, is a type of management and reward structure found in direct selling that has proven over many years to be a highly successful and effective method of compensating direct sellers for the marketing and distribution of products and services directly to consumers.
i.e. A direct selling organization can offer a multi-level compensation plan where distributors are paid based not only on their own sales, but also on sales of others they have brought into their business.
What is the difference between Direct Selling and Direct Marketing or Distance Selling?
Direct selling should not be confused with terms such as direct marketing or distance selling. Some commonly known types of direct marketing and distance selling techniques are telemarketing, direct mail, and direct response. The primary difference between the two methods of marketing is the face to face, or personal presentation that is always an aspect of the direct selling relationship.
What are the benefits of Direct Selling or Network Marketing?
Low Cost of Entry, High-Profit Potential: In direct selling, you can start a home-based business for hundreds of dollars, as opposed to spending hundreds of thousands of dollars (or more) to open a franchise or traditional business.
Grows Exponentially: Most businesses grow as one plus two plus three. Where most direct selling businesses grow as one times two times three. i.e. you get six new people, who get six new people, who get six new people, etc.
Recurring Income: As an employee, you trade time for dollars, one hour of work equals one hour of income. With direct selling, you can leverage your time and efforts, creating income that keeps coming in even during your off hours.
You Choose Your Own Level Of Participation: Need a part-time job? Or a full-time career? Want to stay local? Or expand internationally? The choice is yours and yours alone.
No Glass Ceilings: Doesn’t matter who you are or where you are from, Direct Selling is totally democratic, whoever gets results, gets money and recognition. Period!
Low Overhead, Little Inventory: Work from home! You have the choice to put your profits in your own pockets instead of offices and employees.
Buy Products at Wholesale for Personal Use: Because direct selling offers exclusive, cutting-edge products unavailable in retail stores, you can enjoy the added advantage of receiving discounts and rebates on one-of-a-kind products for your own personal and family use.
Encourages Personal Growth: Companies and successful distributors understand that to grow your business, you must first grow yourself. Which is why they recommend and produce books and tools that encourage people to dream big dreams and then make them come true by growing themselves and their businesses to their fullest potential.
Make Friends, Make Money, Make a Difference: Direct selling isn’t just about making money. Making money is nice, but making friends and making a difference in people’s lives: that’s priceless!