Direct Sales – Multi-Level Marketing, Single-Level Marketing, and More
The Direct selling is the sale of products in a non-retail location, such as at home, online, or outside the store.
Eliminate intermediaries involved in distribution, such as wholesalers and regional distribution centres.
Instead, products are shipped directly from the manufacturer to the sales company. Here is the representative or supplier, and finally, the consumer.
What is direct selling?
Direct selling is usually associated with network marketing businesses and party plans. However, they are not the only ones who use direct sales.
Many B2B companies use direct selling to brand and sell to their end customers. For example, many companies that sell office supplies will send your tips directly to the stores that use their services.
It is important to note that direct selling is not the same as direct marketing.
In the first, the individual distributors or representatives communicate directly with the clients of the case. However, in the second case, a company now markets to customers.
Types of direct sales
These direct selling methods are used in combination. They are not mutually exclusive.
1. Single level direct sales
- This type of direct selling is usually done face-to-face through door-to-door or one-on-one introductions. Here, it can also take place online.
- As a result, sellers earn their sales revenue from commissions and occasional bonuses from the company they source their products from. They don’t recruit other sales reps to get more income.
2. Sales plan or party planner
- This type of sale is done in groups. The primary method of generating leads is to host a social event and offer products for sale.
- Sellers then use the party plan sales model as a basis for future business by asking customers if they would like to host such sales parties.
- They often host parties to sell products and find workers when they are not making individual sales.
3. Multi-Level Marketing (MLM)
- If you are a multilevel business marketer, your primary focus is recruiting members, not the product itself.
- What distinguishes MLM from other types of direct selling is that its income is based on sales commissions and sales earned by different business associates recruited into the company.
- MLMs are popular with people who want to work from home, but getting involving can be risky due to high start-up fees, complex quotas, and recruit-dependent salaries.
- As a result, most MLMs are generally not considering a good thing.