DIRECT SELLING EXPLAINED
Direct Selling is a professional distribution channel that offers entrepreneurial and income generating opportunities. Income is earned from Direct Sellers' personal sales to their customers as well as from sales made by members of Direct Sellers' teams.
Direct Sellers (independent contractors who may also be referred to as distributors, consultants, managers, sales agents, and independent business operators, among others) are entrepreneurs who market and sell products and services, typically away from a fixed retail establishment, through one-to-one selling, online sales, sales through social media platforms, group product demonstrations/presentations (also sometimes referred to as Party Plan) or a combination and with online support. It’s all about personal relationships.
Income is based on sales of products or services. Direct Sellers also provide training and leadership to their teams.
Single-Level Direct Selling, Multi-Level Marketing (MLM), Network Marketing and Referral Marketing are all selling systems, which offer a variety of compensation plans (financial reward) and marketing/administrative systems, individual to each DSA member company.
Single-Level Direct Selling is the sale of products directly to a wide customer base and earning from profits on these sales. The profits are usually the differences between the price charged by the Direct Seller to the customer and the discounted price received by the Direct Seller from their direct selling company.
Multi-Level Marketing, Network Marketing or Multilevel Direct Selling have proven over many years to be highly successful and effective methods of compensating Direct Sellers for the marketing and distribution of products and services directly to consumers. As a multi-level marketer, the direct seller is often a product or service user themselves and sells products and services to a small base of their own customers as well as recruiting, training and developing their own team of Direct Sellers, who do the same. Income is generated from sales made across these various levels.
Hybrid Systems are emerging as more single-level direct selling companies now use elements of multilevel marketing as they recognise its potential for exponential growth. Over half of the direct selling companies worldwide and almost all new direct selling companies are multilevel.
Referral Marketing is where Direct Sellers earn an income from referring customers to an organisation, with the customers intending to buy products and services from that organisation.
Direct Selling should not be confused with Direct Marketing/Telesales/Direct Mail. Although direct selling organisations sometimes use direct marketing or distance selling techniques and technology to enhance their businesses, the primary difference between direct selling and direct marketing is that direct selling offers an income earning opportunity to the Direct Sellers (independent contractors who may also be referred to as distributors, consultants, managers, sales agents, and independent business operators, among others).