Direct selling can best be described as
the marketing of products and services directly to consumers
in a face to face manner, generally in their homes or the homes
of others, at their workplace or other places away from permanent
retail locations. Direct sales typically occur through explanation
or personal demonstration by an independent direct salesperson.
These salespeople are commonly referred to as direct sellers.
The strength of direct selling lies in its tradition of independence,
service to consumers, and commitment to entrepreneurial growth
in the free enterprise system. Direct selling provides accessible
business opportunities to people looking for alternative sources
of income, and whose entry is generally not restricted by gender,
age, education, or previous experience. It should be noted that
around the world a substantial majority of direct sellers are
women, and most work in their direct selling businesses on a
part-time basis. A very small percentage of direct sellers are
employees of the companies whose products they represent.
Independent direct sellers are those individuals engaged on
their own behalf, or on behalf of a direct selling company,
selling products and services through personal sales contacts,
and are commonly referred to in some jurisdictions as independent
contractors. Essentially, this means that the company whose
products they distribute do not employ these independent salespeople
with each individual operating their own business. These independent
direct sellers have an opportunity to earn profits from their
business, and also accept the responsibility for the risks associated
with operating a business.
The products sold by direct sellers are as diverse as the people
themselves and include: cosmetics and skin care products; laundry
and personal care items; nutritional products; telecommunication
and technology oriented products; vacuum cleaners and home appliances;
household specialties; household cleaning products; food and
nutrition products; toys, books and educational products; and
clothing, jewelry and fashion accessories; just to mention a
few.
Generally, these products are sold in the context of group presentations
(Party Plan), or on a person-to-person basis. In a Party Plan
approach, the direct salesperson demonstrates products to a
group of guests, invited by a host in whose home or other location
the direct selling demonstration takes place. By contrast, other
direct sellers will often explain and demonstrate the products
they offer to consumers in the comfort of the consumers' homes,
at a time, which is convenient for them.
Direct selling provides important benefits to individuals who desire an opportunity to earn an income and build a business of their own; to consumers who want to enjoy the alternative from busy, hustle and bustle shopping centers, to intimate personalized service. |
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It offers an alternative to traditional employment for those who desire a flexible income earning opportunity to supplement their household income, or whose responsibilities or circumstances do not allow for regular part-time or full time employment.
In many cases, direct selling opportunities develop into a fulfilling career for those who achieve success and choose to pursue their independent direct selling business on a full time basis.
The cost for an individual to start an independent direct selling business is typically very low. Usually, a modestly priced sales kit is all that is required for one to get started, and there is little or no required inventory or other cash commitments to begin. This stands in sharp contrast to franchise and other business investment opportunities, which may require substantial expenditures and expose the investor to a significant risk of loss.
Consumers benefit from direct selling because of the convenience and service it provides, including personal demonstration and explanation of products, home delivery, and generous satisfaction guarantees.
Moreover, direct selling provides a channel of distribution for companies with innovative or distinctive products not readily available in traditional retail stores or those products that require more explanation than they would receive on a store shelf. Direct selling enhances the retail distribution infrastructure of the economy, and provides consumers with a convenient source of quality products and excellent service.
An important component of the Direct Selling profession is network marketing. It is also referred to as multilevel marketing, structure marketing or multilevel direct selling, and 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.
What sets the direct selling profession apart from other types of selling, is the special relationship aspect of party plan, network marketing and one-on-one sales. Relationships are the foundation which has made this business model a success.
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