Today, consumers have access to just about any product or service through Direct Selling somewhere in the world. Many people think of cosmetics, cleaning products, nutritional products and homeware as products that are available through Direct Selling. However, there is an ever-increasing range of products and services marketed via Direct Selling, either person-to-person, via party-plan or online.
Direct Selling Business Model
Direct selling is a method of retail and marketing used by top global brands and smaller, entrepreneurial companies to market goods and services, directly to consumers, in their homes or at any other location, away from permanent retail premises. It is usually conducted face-to-face, at the place where products are demonstrated: either to an individual, or to a group (home parties).
Direct selling is a model that works – it has always adapted to market and demographic changes, all the while not losing sight of its ethos. In a sophisticated digital retail environment, modern consumers are well informed when browsing and purchasing products online. They expect shopping to be easy and access to products and services swift. Direct selling has adjusted to the digital retail space, as many sellers choose to sell products online. Nevertheless, they retain the core value of direct selling: personal connections enabling consumers to get the best products and services for themselves and their family. This is why our industry is so unique. It remains relevant and continues to grow, even in the face of increased competition with e-commerce and in-store retailers.
A direct selling activity can be run from home or any other place. It can start as a part-time activity run in parallel with a regular job, but it may subsequently develop into a full-time job, depending on the time and commitment involved with the selling activity. It is a unique alternative to conventional employment. It benefits people with other commitments (family, full-time employment), who may learn transferable business skills via direct selling.
Multilevel marketing (MLM)
Many direct selling companies have adopted a multilevel compensation plan to remunerate their sellers. This is where direct sellers are given the opportunity, in addition to the commission they make from making personal sales, to build their own sales teams. In doing so, they are able to receive additional commission from the sales achieved by those they have recruited, trained, helped and motivated.