Definition
Direct selling refers to selling products and services directly to the consumer in a non-retail market. Despite, sales that take place at home, work, or another non-store location.
This system often removes several of the middlemen involved in product distribution, such as the regional distributors and wholesaler.
Despite products go from manufacturer to the direct sales company, to the distributor or representative, and to the consumer.
The products sold through direct sales are normally not found in typical retail locations, which means finding a distributor or representative is the only method for buying the products or services.
Direct selling is usually associated with the party, these are not the only types of companies that use direct selling.
Many businesses that sell B2B (business-2-business), use direct selling to target and sell their products to their end customer.
For example, many companies that sell advertising or office supplies will send their reps directly into the stores that can use their services.
Do not confuse direct selling with direct marketing. Direct selling is when individual salesperson reaches out to consumers directly.
Examples
- THIRTY-ONE GIFTS
The gift company Thirty-one which was founded in 2003. They started offering a huge number of attractive home organizing and personalized products which includes storage bins, purses, wallets, lunch and picnic thermals, and customizable pillows and wall art.
Consultants make 25 % on every sale through face-to-face, online, and catalogue parties. Starter kits are from $99. If you have become a leader to new consultants, you will earn a percentage of their commission as well.
There is also a monthly subscription fee for a personalized website and emails to customers.
- AMWAY
Amway is an America based company that uses a multi-level marketing model to sell varieties of products, primarily in health care, beauty, and home care markets.
Amway was founded in 1959. Amway businesses started offers, Opportunities That Empower, Relationships That Endure. The company has gained a big amount of revenue of 9.5 billion USD (2015).
What is Direct Selling
Article by Parag Goyal