Direct sales have their particularities. For example, it should focus on sales techniques and invest more in improving the team`s sales skills. We`ve selected five tips on how to run a business in direct selling from the start. Learn more about direct selling to take into account the different sources of income and avoid potential scams. Direct selling eliminates several intermediaries involved in the distribution of products, such as the regional distribution center and the wholesaler. Instead, the products go from the manufacturer to the direct selling company, then to the distributor or representative, and finally to the consumer. Products sold through direct selling are usually not found in typical retail outlets, which means that finding a distributor or representative is the only way to buy the products or services. This practice is applicable in most industries, not just in cosmetics or wellness companies like Oriflame in the example below. Even if you`re direct selling in B2B, there are probably influences that your audience appreciates.

For example, if you offer software for recruitment and HR, you will find an influential and reputable professional in this field on Facebook and get in touch with them. This type of direct selling is usually done face-to-face, e.B. through door-to-door or solo presentations. Nevertheless, it can also take place online. As a result, sales reps derive their income from commission sales and occasional bonuses from the company from which they source products. They don`t recruit other sales reps to get more revenue. Unfortunately, it can often be difficult to distinguish between a legitimate MLM business opportunity and a pyramid scheme, as they have many of the same characteristics. MLM and pyramid schemes require participants (called „distributors“) to recruit other people, and both link a person`s compensation directly to their recruitment results. The main difference between the two is that Ponzi schemes are designed in such a way that merchants` money flows through the company. Instead, sales take place at home, at work, online, or in places other than stores. Direct sales are usually associated with the party plan and network marketing agreements.

But they`re not the only ones using direct selling. Many B2B companies use direct selling to target and sell to their end customers. For example, many companies that sell office supplies send their employees directly to stores that can use their services. Direct selling can be done in two ways. The first is when the direct seller gives a demonstration in front of a large group of people (often called a party plan) and the second method is when the presentation is from person to person (one to one). ● It offers accessible business opportunities for people looking for other sources of income, usually regardless of gender, age, education or previous experience. It promotes the free market system and entrepreneurship among its direct seller. One-step direct sales typically take place one-on-one through door-to-door or face-to-face presentations, online meetings, or catalogs. In general, revenue is generated by sales commissions, with possible bonuses to achieve the target goals. Sales of host or party plans are made in a group environment, with the distributor or representative usually making a presentation at their home or at the home of a potential customer. In direct selling, retailers avoid intermediaries in the supply chain and sell products directly to consumers. In traditional retail, products are sold online or in a physical store, but direct sales rely heavily on sellers standing in front of customers in non-traditional environments.

Products sold through direct selling are usually not found in traditional retail stores. This means that finding a distributor or representative is the only way to buy them. Information about the types of direct selling is inconsistent – people often confuse it with the methods used by different companies. In general, the classification includes two categories: indirect sales, on the contrary, include various intermediaries – distribution centers, wholesalers, regional representatives, etc. For example, Coca-Cola uses this model. This means that a customer can buy a Coca-Cola from a third party, but not on the company`s website. Sometimes these direct selling methods are used in combination. They are not mutually exclusive. According to the FTC, „Direct selling is an umbrella term that encompasses a variety of forms of business based on person-to-person sales in locations other than a retail store, such as.

B social media platforms or the seller`s home or potential customer.“ [2] In a direct selling model, a brand immediately interacts with customers. An example of a direct seller is Boeing. The company offers its products directly to potential customers – airlines. It`s important to note that direct selling is not the same as direct marketing. In the first case, individual distributors or sales representatives contact customers directly. In the second case, a company markets directly to customers. Some examples of direct marketing include emails, flyers, promotional letters, outdoor advertising, advertisements, phone calls, websites, and others. The start-up cost for most direct selling businesses is a few hundred dollars or less, as direct sales don`t depend on overheads such as real estate, facilities and equipment, or traditional advertising, which can cost tens of thousands or even hundreds of thousands of dollars.

Millions of independent direct sellers see benefits in working for themselves. The most obvious is the ability to start and grow their own business and run it as they see fit. The freedom and flexibility to set their own working hours attracts all types of people to direct sales, including parents with young children, students, caregivers, retirees, military spouses and many others. .