Direct Selling, also known as person-to-person retail, is a method of distribution of consumer goods and services through personal, face-to-face i.e. salesperson-to-consumer sales away from the fixed retail stores or business locations. It is related to consumer products rather than industrial ones which is covered under B-2-B marketing.
Top global brands as well as small companies use direct selling to market their products and services to customers. Direct Selling encompasses the selling of personal items like jewelry, cosmetics to household items like kitchenware, houseware to life coverage like insurance, and many more. Direct Selling mainly deals with FMCG products and covers the need for individuals in all their facets of life.
Direct Selling stands distinctively when compared to broader retail methodology. It encircles the direct sale of products and services to the end customers but even facilitates and promotes the individuals to build a business with minimal startup and running costs. In this way, direct selling methodology develops individuals with limited resources, to become entrepreneurs. This fosters the feeling of confidence and responsibility and belongingness in individuals, a byproduct of running one’s own business.
In direct selling setup, consultants work with the freedom of their own business but affiliation with a company provides the benefits of channels established by the company. Consultants create a strong bond with customers due to face to face dealing and demonstration with them. This strategy of marketing seems to be more promising and productive for many companies rather than expensive traditional modes of attracting customers like advertisement and premium shelf space.
Direct selling is lucrative for individuals as the company’s products or services are available to them at discounted rates. They can generate commissions on the sale of items to friends and families and others and might buy them at a discounted rate for self-consumption.
Many consultants expand their business by expanding the network of direct sellers. MLM (Multi-level marketing), network marketing, and referral marketing are a few of the forms, used in direct selling. According to this model, the consultant recruits and trains other representatives to begin his/her own business, thereby earning a commission on sales made by their representatives.
Below are the key points to be analyzed to outshine in Direct Selling Profession:
1. Diligent selection of Company: An ethical company with well-established rules and regulations which adheres to collaborative and rewarding work culture, would be the right one to work with. A clear understanding of the company’s compensation plan and the modes to receive rewards for one’s efforts are the main requisites in the selection of the company.
2. Selection of Products or Services: Preference of product or service should be based on familiarization with it. An individual should know all the details of the product/service.
3. Target Setting: Selection of Company and the product should lead to the formalization of a concrete and well-versed plan with a defined timeline.
4. Network Setting: Direct selling is totally a field for individuals having marketing skills and one who can build up a wide network can easily flourish here. Social media seems to be a boon for this mode as products and services could be profoundly promoted through it.
Direct selling has a bright future to unfold as there is an enormous untapped market of potential consumers, at all income levels and social brackets. With the enhancement of technology related to computer telecommunication and the availability of social networking platforms like MLM Diaries, Direct Selling will find the peak.