essay about direct selling

Direct Selling – Meaning, Types, Pros, Cons, Examples & Tips

Businesses always try to facilitate their customers as much as possible. For instance, online/non-store retailing allows customers to buy a product without physically going to any brick-and-mortar store. It not only saves their time but is easy and convenient as well.

Apart from online retailing, businesses facilitate their customers or even potential customers with direct marketing. That is, rather than selling the products at a brick-and-mortar store , companies sell their products face-to-face.

The sales may take place at customers’ homes, workplaces, shopping malls, or any non-store location. In marketing terms, this concept is called Direct Selling. It can be a face to face selling, or companies even use online platforms for Direct selling.

Table of Contents

What is Direct Selling?

Direct selling is a mode of doing business where the seller sells its products directly to the customer. There isn’t any other party (third party) involved in the transaction. The sales generally take place at customers’ doorstep such as their homes, offices, cafes, shopping malls, online, etc.

Direct selling basically relies on salespersons because there are no intermediaries in the process. A business following this type of selling method skips whole sellers and distributors from the supply chain.

How Direct Selling works?

Direct selling typically eliminates few “ingredients” in the supply chain. Generally, these companies skip regional distributors and whole sellers from their supply chain. The manufacturer dispatches the product directly to the sales company. Then, the sales company sends the products to end distributors or representatives.

Direct selling doesn’t involve any typical store retailing. This means the customers can buy the product from reps or distributors. Generally, party-plan and network marketing companies are associated with it. However, there are many B2B companies that work with the direct selling method. For instance, a business may get help from a distributor or rep to sell its products to other businesses.

It is important to understand that direct selling and direct marketing are two different practices. Selling directly to customers involves selling through reps or distributors. Direct marketing involves a company marketing its products directly to customers without any reps, etc.

Types of Direct Selling

Single level direct sales.

This is a typical form of direct selling that involves face to face selling. The reps may go door-to-door and give one on one presentations to sell the products. But, this practice is not limited to face-to-face selling. The reps may sell the products through online channels directly. These reps get commissions and occasional bonuses from the company.

Host/Party-Plan Sales

This selling practice basically focuses on group settings. That said, the sales representatives organize a social event or a party and then offer the products for sales. In fact, sometimes, these sales representatives may ask the customers if they want to organize and host selling parties. Mary Kay is a common example as they often arrange social events and sell their products at such gatherings.

Multi-Level Marketing

Multi-level marketing can be a blend of the above-mentioned methods as well as new practices. For instance, a sales company may do single-level marketing, host or party sales, and hire new salespersons as well.

This way, a sales company or representative earns commission through sales and sales made by the other hired sales partners/reps. Some common examples of this blended strategy include Arbonne, LulaRoe, Mary Kay, Avon products inc, Herbal Life nutrition, and Scentsy. Most of these firms do single-level direct selling, host social events, and hire new recruits for selling products.

Direct Selling VS Pyramid Scheme

It is pretty difficult to distinguish these two terminologies because of similar characteristics. However, there are few specific differences that can differentiate one from the other.

Advantages of Direct Selling

Direct selling is one of the most popular modes of selling products, and here is why:

Direct selling is one of the most effective methods to get direct feedback from the customers. As sales companies or reps interact directly with customers, their feedback helps the companies to improve their products regularly.
It is a great way to ensure maximum personalization. Sellers know what their customers want and what kind of offers will suit different customers. Customers prefer those brands which offer them customized offers and recommendations.
Price regulation is another brilliant advantage of direct selling. As there are no intermediaries, the companies have better control over their products’ prices and a more transparent sale process.
Customer retention is one of the most important objectives of any business. It allows businesses to directly interact with their customers and be more empathetic. When you know what your customers want, you can easily satisfy them.
Direct selling also allows companies to set higher profit margins. As there are no middlemen to take their share of profit, a business can earn more profit with this scheme.
Convenient working hours is another benefit for sales reps. They don’t have to follow strict working hours. As long as they are making sales, everything will be fine.

Disadvantages of Direct Selling

Direct selling can be a tricky scheme for reps or distributors. The manufacturing company generally does not provide any leads. Therefore, reps have to build their network on their own.
If the seller/manufacturer focuses on incentivizing the reps to recruit new people than actually selling products, it may create a pyramid scheme.
Direct selling can be a difficult method when you talk about business growth or expansion. These sellers heavily rely on distributors and reps. Besides, this business model will work only if the reps/distributors are giving you constant and growing sales.
Last but not least, direct selling requires reps and distributors to have literally “impeccable” marketing skills. It is extremely difficult to persuade a customer and sell a product door-to-door.

Tips for Direct Selling

Direct selling is not that easy as one may think, but following few valuable practices can make things a lot easier.

Build Relationships Before Sales

Knowing your potential customer is extremely important in any form of business. Therefore, the first priority should be establishing a relationship with potential customers and finding their “pain points.” When you know what your customer needs, you can make a much better product.

Be Consistent

It is not easy to convince someone to buy your product. You may get rejections, but it is important that you are consistent with your efforts. Constant efforts and customized offers can turn a prospect into an actual customer.

Network Building

Building a strong and growing network is vital in the direct selling method. In fact, it is virtually impossible for direct sellers to actually establish their business without networking. A thorough customer database can help you build and track a strong network.

Stay Connected With Your Customers

It is important for direct sellers to stay connected with their customers. Customers can easily forget you if you are not in touch with them. You can educate them about the product features and upgrades. Inform them about your new offers through emails or newsletters.

Offer Incentives to your Reps or Distributors

Your sales reps or distributors are as important as your customers. If you reward them handsomely, you can earn their loyalty and maximized efforts. You can offer them higher commission rates to motivate them. If you are paying more commission, it means you are making more sales.

Train your Reps

Well, direct sellers don’t have to give a share from profit to whole sellers and other intermediaries. However, investing in your reps can be very profitable. You can train and upgrade their professional skills regularly. Selling requires updated and effective communication skills, and this investment will definitely bring more sales.

Turn Your Customers into your Brand Ambassadors

There is no better way to market your brand than “word of mouth” from an elated customer. A happy customer will surely bring more customers, and this chain will never stop if you keep delivering what you promise or what your customer needs.

About The Author

shaharYar Ahmad Ranjhaa

What is Direct Sell | Definition, Examples and Best Strategy | 2024 Reveal

Astrid Tran • 24 Dec 2023 • 7 min read

What is Direct Sell ? When a company or a person sells products or services directly to customers, without going through a store or a middleman, we call it by several names, such as direct sell, direct selling, or direct sales. It has proven to be a successful business model for many companies for centuries.

So why is it so successful? In this article, there is a comprehensive insight into the art of direct sell, and an ultimate guide to becoming excellent direct sellers.

What is direct sell?

Personalized Service

Cost-effective, flexibility, job creation, customer loyalty.

What are examples of top direct sellers?

What are the three types of direct sell?

Focus on customer satisfaction, embrace technology, offer unique products or services, develop a strong brand, invest in your team, frequently asked questions, bottom line, tips for better engagement.

Type of sale
Enterprise sales

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What is Direct Sell?

Direct selling, a direct-to-consumer strategy (D2C), means selling directly to end customers without intermediaries such as retailers, wholesalers, or distributors. A company or a salesperson contacts potential customers directly and offers them products or services, often through in-person demonstrations, home parties, or online channels.

However, direct sell has been controversial and criticised over the years. It raises a concern that some companies may operate as pyramid schemes, where the primary focus is recruiting new members rather than selling products or services.

Why Is Direct Sell Important?

Direct sales is an important distribution channel for many companies both domestic and international, and here are some reasons why it is extremely important.

It provides personalized service to customers, as salespeople often demonstrate products and services to the customer in person. This allows customers to get a better understanding of the product and its features, and salespeople can provide recommendations based on the customer’s specific needs.

These sales techniques also help companies avoid the costs associated with traditional advertising, such as TV, print, and radio ads, and can instead focus on building a relationship with their customers through direct selling.

It also allows salespeople to work on their own terms, giving them flexibility in terms of working hours and the amount of effort they put into the business. This can be an attractive option for people who want to earn income while maintaining a work-life balance.

Many job opportunities have been created in direct sales businesses for people who may not have formal education or training. It provides them with a platform to earn income and build a business, regardless of their background or experience. Nu Skin and Pharmanex brands, with their products sold in 54 markets through a network of approximately 1.2 million independent distributors.

This method can lead to customer loyalty, as salespeople often build personal customer relationships. Customers are more likely to buy from someone they trust and have a good relationship with, which can result in repeat business and referrals.

What Are Examples Of Top Direct Sellers?

What are examples of direct distribution? Direct sell has a long and rich history, dating back to the earliest days of commerce. The practice of selling goods directly to consumers without the use of intermediaries such as retailers or wholesalers can be traced back to ancient times, when traveling merchants would sell their wares directly to customers in marketplaces and on the streets.

In the United States, the term became popular in the late 1800s, when companies such as Avon and Fuller Brush began using this sales technique as a way to reach customers who were difficult to reach through traditional retail channels. These companies would employ salespeople, known as “ Avon Ladies ” or “ Fuller Brush Men ,” who would go door-to-door selling products directly to consumers.

In the 1950s and 60s, D2C context experienced a surge in popularity as new companies such as Amway (focused on health, beauty, and home care products) and Mary Kay (which sells cosmetics and skincare products) were founded. These companies pioneered new sales and marketing techniques, such as multi-level marketing, that allowed salespeople to earn commissions not only on their own sales, but also on the sales of others they recruited into the business.

Nowadays, Amway, Mary Kan, Avon and a young company like Nu skin enterprise, are among top 10 direct sales companies in the world. For example, Avon Products, Inc reported their annual sales worth $11.3 billion and has over 6.5 million sales associates. They are the best examples of successful direct sales business even though this sales technique has undergone significant transformations in recent years, largely due to advancements in technology and changes in consumer behavior.

Companies might use certain sales approaches to broaden their market and target more customers. There are several types of direct sales that companies commonly use:

Single-level direct selling involves a salesman selling products directly to customers and earning a commission on each sale. This is a simple and straightforward approach, often used by those who want to earn extra income.

Party plan direct selling refers to a method of hosting parties or events where a direct seller presents products to a group of potential customers. This approach can be effective for products that require demonstrations or explanations.

Multi-level marketing (MLM) focuses on building a team of salespersons who earn commissions not only on their own sales, but also on the sales of the people they recruit. MLM can provide opportunities for growth and passive income, but has also been subject to controversy and criticism. The top two MLM global markets United States and China, following by Germany and Korea.

5 Keys to Successful Direct Sell

Running a direct selling business in today’s competitive market can be challenging, but here are some tips to help increase your chances of success:

In today’s ever-changing market, customer satisfaction is key to retaining and building a loyal customer base. Providing excellent customer service, timely delivery, and high-quality products can help differentiate your business from competitors.

Companies might offer customers some incentives like hosting an online takeaway event. Customize your direct online sales via online event with AhaSlides Spinner Wheel , you can engage with your customers and potential customers, showcase your products and services, and increase sales for your direct selling business.

Related: Prize Wheel Spinner – Best Online Spinner Wheel in 2024

Utilize technology to streamline your operations, improve communication with customers and team members, and stay up-to-date on industry trends. This includes using social media, e-commerce platforms, and other digital tools to expand your reach and grow your business.

Stand out from the competition by offering unique products or services that meet a specific need in the market. This can help you attract new customers and retain existing ones.

A strong brand can help differentiate your business and build trust with customers. This includes creating a memorable logo, developing a consistent brand message, and establishing a strong online presence.

Your team of direct sellers is critical to the success of your business. Invest in their training and development, provide ongoing support, and recognize their achievements to keep them motivated and engaged.

If you want your team members to be more engaged and interactive in training sessions, why not add live polls, quizzes, and games into your presentation. AhaSlides comes up as the best solution for supporting virtual training.

Related: Ultimate Training and Development in HRM | Everything You Need to Know in 2024

Is it direct sales or direct sales?

“Direct sell” and “direct sales” can refer to selling products or services directly to consumers.

What is direct selling to customers examples?

In-person sales, in which salespeople visit customers in their homes or workplaces to demonstrate and sell products. Examples include Tupperware, Avon, and Amway.

How do I become a direct seller?

If you’re interested in becoming a direct seller, you can find world’s top direct selling companies to start. Make sure their company culture aligns with your values and interests.

What is the skill of direct sales?

Effective communication is essential for understanding customer needs, presenting the benefits of products or services, and building trust with potential customers. A skilled direct seller must listen actively, ask relevant questions, and respond appropriately to customer inquiries.

What are direct sales and indirect sales?

Direct sales involve selling products or services directly to customers through face-to-face interactions or online sales. On the contrary, Indirect sales involve selling products or services through intermediaries, such as retailers, wholesalers, or agents.

Why is direct selling good for business?

It allows for a personalized approach to sales, is cost-effective, allows for faster feedback and market research, and provides opportunities for entrepreneurship and flexible work arrangements.

Is direct selling a marketing strategy?

Yes, it can be considered a marketing strategy as it involves selling products or services directly to customers, often through personalized and targeted approaches, to build customer relationships and increase sales.

What is direct sales vs MLM?

Direct sales is often associated with multi-level marketing (MLM) or network marketing, where salespeople earn commissions not only from their own sales but also from the sales made by the people they recruit into the sales force.

What is online direct selling?

Online sales: Companies sell products or services directly to consumers through their own websites or social media platforms. Examples include LuLaRoe, doTERRA, and Beachbody.

Today, direct sell remains a thriving industry, with billions of dollars in annual sales and millions of people employed as direct sellers worldwide. While the methods and technologies used in these sales tactics have evolved over time, the basic concept of selling goods and services directly to customers remains the core value of the business.

Ref: Forbes | The economic times | The Wall Street Journal | Software Suggest

Astrid Tran

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How to Sell Anything | 2024 Reveal | 12 Excellent Sales Techniques

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On the Benefits of Direct Selling

By: Robert A. Peterson

Length: 19 page(s)
Publication Date: Sep 14, 2021
Discipline: Sales
Product #: BEP617-PDF-ENG

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Direct selling isn't just an industry or a business model-it's people. Direct selling is successful today because of the people who have been able to build successful businesses from the ground up or by representing a company's product. Entrepreneurs who use a direct selling approach utilize independent salespeople to market and sell their products or services directly to the consumer. These direct selling distributors are offered a low-risk, low-cost path to micro-entrepreneurship. Framed within the context of entrepreneurship and an overview of the long-term sustainability of the direct selling business model, this book dives into three main issues associated with direct selling: compensation, ethics and compliance, and global reach. Written for practitioners, academics, members of the press, policy makers, and students, this text offers research and knowledge about the economic and social benefits of direct selling and provides detail and clarity on key issues related to direct selling as a sustainable business model. Chapter 6 explores the financial and nonfinancial benefits of direct selling. Three female direct sellers share their stories regarding their experience. Two empirical surveys-their design and results-are discussed at length. The first survey looks at why people start working in the gig economy and emphasizes the expected and actual financial rewards of gig workers who are direct sellers. The second survey explores why people become direct sellers specifically and the nonfinancial benefits they gain from their direct selling experience. Typical reasons respondents gave for becoming direct sellers included earning extra money, improving personal lifestyles, and being able to purchase products or services from the company at a discount. Direct sellers' expectations regarding how much money they would make were mostly realistic; the majority of respondents also believed their self-efficacy was improved through their direct selling experience.

Learning Objectives

Describe several financial and nonfinancial benefits of being a direct seller.

Understand why people choose to become gig workers and direct sellers.

Sep 14, 2021

Discipline:

Business Expert Press

BEP617-PDF-ENG

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Direct Selling Timeline

This Is Direct Selling

Like many entrepreneurs, direct sellers embrace the spirit of independence. And like industries that are built to last, direct selling has adapted and endured over the decades by preparing generations of Americans for many of the defining moments that changed the course of our nation’s history. The resilience and independence that have been intrinsic to the business for more than a century are fundamental to who we are and where we are going.

Some of the tasks ahead, such as modernizing descriptions of our opportunity, growing the relationship with the ultimate consumer, and committing to ethical business practices and rigorous self-regulation, we will face together.

Every direct selling company has a hand in building the reputation for our way of doing business. Our companies, united with DSA, are making channel-wide efforts to ensure that our customers, sellers, potential sellers, policymakers, investors, and the public at large understand that—in today’s market, this is Direct Selling.

Direct selling is a go-to-market strategy that is an alternative channel to retail. Individual independent distributors market and sell products and services to consumers in direct selling.

Some of the world’s most storied companies and recognizable brands market today’s leading-edge products through the direct selling channel – these include jewelry, cookware, nutritionals, cosmetics, housewares, energy, insurance, and much more.

The direct selling channel differs from broader retail in how it gets great products and services into the hands of consumers. It’s an avenue where entrepreneurial-minded Americans can represent the products they love, while they work independently to build a business on their own terms.

Consultants forge strong personal relationships with prospective customers, primarily through face-to-face discussions and demonstrations. In this age of social networking, direct selling is a strategy that many marketers of consumer products find more effective than traditional channels.

Millions of Americans from every state, congressional district and community in the United States choose direct selling because they enjoy a company’s products or services and want to purchase them at a discount. Some decide to market the products they love to friends, family, and others and earn commissions from their sales. The most successful consultants may decide to expand their businesses by building a network of direct sellers.

Eighty-nine percent of direct sellers decide to work part-time, offering busy parents, caregivers, military spouses, veterans, and others flexibility and work-life balance. As advancements in technology create a new American economy whose foundation is built upon the entrepreneurial spirit and independent work, historically, direct selling has been one of the oldest ways millions of Americans have chosen to work independently—long before the advent of the Internet. Direct selling has a long history of substantially contributing to the economy and supporting the millions of Americans involved.

An Independent Salesforce

Direct selling is unique among retail channels in how it markets products and services to customers. Instead of relying on traditional retail outlets or online marketplaces, direct selling companies maintain a salesforce of millions of independent workers.

Direct selling in the United States achieved record highs in 2020: retail sales reached $40.1 billion, independent sellers numbered 7.7 million, and customers totaled over 41.6 million. Independent work adds value to the economy, society, and for those who choose to pursue it. Real estate, insurance, travel and technology companies, and well-known brands rely on independent workers to deliver products and services to consumers.

Independent direct selling consultants earn commissions on sales but work for themselves. They set their hours, create their marketing plans, determine their sales team goals and how to mentor those within it, and decide how to best serve their customers.

Millions of independent direct sellers see advantages in working for themselves, especially in having a chance to build and grow their own business and run it how they see fit. The freedom and flexibility to set their own working hours draws all types of people to direct selling, including parents with young children, students, caregivers, retirees, military spouses, and many more.

Startup costs for most direct selling companies are minimal compared with franchises and other small businesses—a few hundred dollars or less. Direct selling doesn’t rely on overhead like real estate, facilities, equipment, or traditional advertising that can add tens or hundreds of thousands of dollars to the expense of running a business.

Direct Selling: A Century+ American Tradition

Leaders in the business know that direct selling has been a unifying thread in America’s cultural fabric. Generations of direct sellers—from the Yankee Peddler to the virtual social selling parties of the COVID-19 era—have adapted, endured, and innovated to survive and thrive.

After the Civil War ravaged the South, many young men, unable to afford higher education, sold bibles door-to-door to go back to school someday.

In 1910, before the start of World War I , ten companies joined together to form the Agents Credit Association—the predecessor to the Direct Selling Association—to fight for the interests of the 93,000 traveling salespeople across the United States.

The Great Depression, followed by World War II, tempered a generation of resilient individuals who would go on to found and represent the legendary direct selling companies that continue today. Direct selling was an important business opportunity during the post-war boom for American women seeking new ways to contribute to their family’s financial security.

The pandemic provided clear evidence that the name direct selling solicits a positive response from our consumers, sellers, and individual sellers everywhere. As the world shut down outside, families turned to the direct selling channel to shop local, stock their pantries and closets, and support their friends and neighbors who sell the products they need. DSA’s numbers compiled for 2020 sales and salespeople are eye-popping reminders of the value of direct selling.

Types of Direct Selling

At the same time, and even with last year’s success, some names and terms associated with direct selling raise questions about how we fit into the landscape of legitimate business. Renewed growth has brought with it renewed questions, and sometimes skepticism, about our business model.

Most, if not all, skepticism is unfounded and borne of misunderstanding.

The terms network marketing, multilevel, and even door-to-door contribute to the misunderstanding that can conjure up a less-than-flattering perception of direct selling. Even as direct selling benefits the country and the economy, the nomenclature and insider terminology associated with the business model can contribute to confusion about who we are and how we operate.

Direct Selling includes the following methods of selling:

Direct selling companies whose sellers primarily use parties to market and sell their products are called party plan companies. Parties have moved beyond the homes of hosts to include online parties. A unique attribute of party plan companies is the role of the host; their incentive to host a party typically includes free and discounted products.

Direct selling companies using this model have sellers marketing their products or services through individual, one-to-one demonstrations and other personal contact arrangements. Individuals also employ online platforms to engage in this type of direct selling.

Door-to-Door

Direct selling companies that have their sellers book appointments or knock on doors to visit their customers in their homes.

Social Selling

With the rise of social media platforms, direct selling companies are empowering their sellers to share their experiences with their products and services to help generate new leads and sales.

Direct selling companies that offer products and services valued at more than $500 have been called big-ticket companies. These include home appliances, vacuums, and kitchen products.

A Model for Self-Regulation

DSA’s self-regulatory program—the Direct Selling Regulatory Council (DSSRC)—was established in 2019 and is operated under the auspices of the Better Business Bureau’s National Programs. Working in tandem with the DSA Code of Ethics, DSSRC helps ensure consumers and salespeople can have the utmost confidence in the direct selling business model.

DSSRC independently monitors earnings and product claims disseminated by all members of the direct selling community, regardless of a company’s DSA membership status.

DSSRC has performed. The International Council for Advertising Self-Regulation (ICAS) honored the program in June 2021 with the Best Sectoral Initiative Award. The Council gave the honor for the program’s outcomes that met the award’s highest bar of achievement in terms of tangible results and relevance and for how the DSSRC encourages ethical and responsible marketing and advertising practices.

Today, company leaders and senior executives from across the globe are joining forces in an unprecedented effort to reinforce what those of us who participate in direct selling already know. This global channel, whatever its name, is a positive and increasingly important force for individual sellers and consumers everywhere.

“Our products are the foundation of our distributors’ businesses—Herbalife Nutrition consumers love our products. They also love the experience and community that our distributors build around the product. It’s a natural intersection that provides exposure to the business opportunity.” —Randall Popelka, Vice President, Global Government Affairs Herbalife Nutrition

“As the retail economy transforms, businesses must do better to understand their ultimate consumer. As direct sellers, we must navigate and foster the relationship between our brands and customers without doing a disservice to those most important relationships with our independent sellers.” —Danny Lee, President & CEO, 4Life Research

“Our language, a true by-product of our history, contributes to the myths and misunderstandings surrounding us. Language that is easy to understand helps all audiences—including regulators who are confused by our terminology—better understand who we are and what we do.” —Mark Statsny, Chief Sales Officer Scentsy

“Compensation plan experts joined DSA at meetings with Federal Trade Commission officials to discuss the finer points of multilevel compensation plans that often leave regulators focused on a plan’s complexities. These officials reason that if they can’t understand the plans, then a typical consumer can’t understand them. And if a typical consumer can’t understand it, the potential exists for abuse and deception.” —Joe Mariano, President and CEO, DSA

“Given today’s highly charged regulatory climate, providing distributors with resources to share accurate product and earnings claims plays a critical part in supporting a culture of compliance within your field. Social media has provided consumers and the press a stronger voice to broadcast their opinions or experiences, which has emphasized the negative impact of misleading statements.“ —Jemima Wechsler, Group Vice President, Compliance, Team Beachbody

Direct Sellers (millions)

Direct Selling in the Mainstream

Direct selling is represented by celebrities, entertainers, and athletes in endorsements, partnerships, and sponsorship of charities, sports organizations, and other beloved institutions.

The Magic of Fragrance Meets the Magic of Disney

Imagine trying to create fragrances that capture Mickey Mouse’s charm, the friendly forest that makes up Winnie the Pooh’s Hundred Acre Wood, or the inquisitive and open-minded bravery that is Belle—Scentsy, the international fragrance and home décor company, is doing just that. Scentsy is launching a variety of fragrance products and scented plush toys featuring Mickey and Minnie Mouse, Hundred Acre Wood, Disney Princess, and Disney–Pixar Finding Nemo.

“We’ve worked very closely with the Disney product design team to deliver an incredible lineup of characters with signature fragrances that fit within the imaginative storytelling of the Disney brand,” said Heidi Thompson, Scentsy Co-founder and Co-Owner. “We couldn’t be more excited for Scentsy to align with Disney, one of the world’s best, family-oriented brands. We know Scentsy Consultants and customers around the world will be thrilled.”

The collaboration with Disney allows more than 100,000 Independent Scentsy Consultants across eleven countries to sell the Disney Collection. The collaboration was unveiled in Anaheim at Scentsy Family Reunion, the company’s annual convention.

“We couldn’t find a brand that better matches our aspirations and values. Family-friendly, industry leading, creative, artistic, warm, enliven, and inspire are words from Scentsy’s mission statement, but these words could be used to describe the standards Disney has set for the world,” said Scentsy Co-owner, Orville Thompson “Where Disney creates powerful memories through parks and entertainment, our products will help people remember and re-live those experiences through fragrance.”

Category Retail Sales ($ billions)

The Miss USA organization has a new partner: SeneGence

In July 2021, at the SeneGence annual event held in Frisco, Texas, SeneGence Founder and CEO Joni Rogers-Kante was joined onstage by 2008 Miss USA and National Director for the Miss USA organization Crystle Stewart to announce the partnership. “Many years ago, I participated in a Miss USA event selling LipSense to their attendees,” said Rogers-Kante. “At that time, I never would have believed that SeneGence would be a sponsor of the iconic Miss USA pageant.” The SeneGence and the Miss USA organization partnership campaign includes exclusivity for cosmetics, television coverage (i.e., SeneGence commercials, backstage LipSense® lounge, SeneGence cosmetics used on contestants and talent), a Miss USA and Miss Teen USA custom LipSense collection, giveaways, and more. The Miss USA organization is committed to bringing pageants into the everyday lives of young women across America. Their Pageantry Reimagined® presents a new generation of women of influence whom the world has yet to meet. “Miss USA and SeneGence are two organizations that are deeply aligned with the advancement and empowerment of women, and we are delighted with this partnership,” said Rogers-Kante. The 2021 70th edition of Miss USA and Miss Teen USA awards were broadcast live from the Paradise Cove Theater of River Spirit Casino Resort in Tulsa, Oklahoma.

Tastefully Simple products appear in new feature film, As They Made Us

The Minnesota-based company was approached by the movie’s production company that felt Tastefully Simple would be the best product partner for the modern heroine and her family featured in the film. The movie, written by Mayim Bialik of The Big Bang Theory and hosting Jeopardy fame, stars Dianna Agron, Candace Bergen, and the twice honored, Oscar-winner Dustin Hoffman. It opened in theaters April 2022.

Global Direct Selling

Tamuna Gabilaia, Executive Director and Chief Operating Officer of the World Federation of Direct Selling Associations (WFDSA), says that while many people are familiar with direct selling’s quality products, “They don’t necessarily associate those products with the industry.“ That is troubling, and Gabilaia acknowledges that the industry must do a much better job of spreading the knowledge about itself to better educate consumers.

“Views of the industry are directly related to people’s familiarity with the industry and their firsthand experiences,” she says. “However, when they associate the products with direct selling—coupled with positive, personalized experiences—they become our best advocates.”

Gabilaia points out that although exaggerated earnings and product claims can negatively affect the industry’s image, WFDSA’s statistical data shows increasing popularity for the industry in recent years. Worldwide, retail sales have increased every year in all regions around the globe.

“Our industry is resilient and grows despite the global upward or downward economic trends,” Gabilaia says. “The African continent and MENA (Middle East, North Africa) regions represent huge, untapped potential for the industry. We are working with direct selling associations in those regions to explore opportunities.”

Prior to joining WFDSA, Gabilaia was familiar with some direct selling products but had little knowledge of the diverse, inclusive, and empowering industry that is direct selling.

“I feel immense joy and satisfaction waking up knowing that I work with brilliant, caring, dedicated, humble, and positive colleagues and friends who make a meaningful difference every day in every type of economy and political system,” she says.

Gabilaia highlights the increased use of digital tools among the many advances that accelerated during the pandemic. “These tools are instrumental in helping direct selling companies grow by empowering their representatives to adapt and respond to the many challenges of the volatile economic environment,” Gabilaia says. “They are key drivers of increased sales and representative growth.”

Gabilaia points out that direct selling has a competitive advantage over other industries in dealing with customers off line and in person. Retailers are trying to replicate the personalized relationships that characterize the direct selling business. Direct selling has and always will evolve to stay ahead of the curve. The challenge is to tell our great story while dispelling the misperceptions about the industry.

To do all that, WFDSA has set forth its initiatives for the next few years. As Shaklee CEO Roger Barnett stated when he became WFDSA Chairman, the industry has tremendous opportunity to

Reimagine what direct selling means in the digital world, and to provide even greater connection and support to millions around the world.
Reinvent who is a direct seller and how we compensate them, so we can expand the number of people we impact in the future and be even more inclusive than today.
Redefine the image of direct selling by quantifying our impact on creating a diverse, powerful, inclusive economy for all.

“We have set an ambitious agenda for enhancing the reputation of the industry and moving beyond compliance,” says Gabilaia. “The critical initiatives of reputation enhancement and ethics, and global legal and regulatory, are moving along and will enter next phases shortly.”

Direct Selling Myths and Facts

Myth: Most people lose money in direct selling.

Fact: Minimal startup investment provides a low-cost path to starting a flexible, part-time, direct sales business.

Because of the low cost of entry—startup costs are well below $200 in general—and minimal risk of financial loss upon exiting, direct sales is a low-risk business opportunity.

The channel has a safety net in place for sellers who decide to close their business but have unsold inventory: the 90 percent buyback guarantee from DSA member companies for products purchased within the last twelve months.

About 90 percent of people who join direct selling companies do so to earn supplemental income. Each direct seller sets individual goals. Many reach their short-term goals and then take a break, and some set higher goals and become full-time direct sellers.

Myth: All direct sellers keep inventory.

Fact: If sellers choose to hold a small amount of inventory for immediate delivery to customers or for other reasons, they are supported by DSA member companies with the 90 percent buyback guarantee.

Increasingly, direct selling companies embrace e-commerce: customers order from a seller’s personal website, distributors place orders online, and products are shipped directly from the direct selling company to customers.

Myth: All direct selling companies are pyramid schemes.

Fact: There are legitimate direct selling companies, and there are pyramid schemes. Pyramid schemes are illegal.

Pyramid schemes often masquerade as direct selling companies, but there is an important and meaningful distinction. Pyramid schemes compensate members primarily for recruiting new participants, not for sales of real products or services.

In a legitimate direct selling company, product sales are the main source of a direct seller’s compensation. Meaningful compensation is not based on how many people are in your business if there are no sales by those individuals.

DSA agrees with regulators and law enforcement that pyramid schemes should be fully prosecuted.

Myth: Direct selling companies are not regulated. They don’t protect consumers.

Fact: Direct selling companies operating in the United States are subject to local, state, and federal laws, as are other businesses, and depending on the product or service, by the Food and Drug Administration (FDA). Laws prohibiting inaccurate earnings, income, and product claims are enforced.

The Federal Trade Commission (FTC) regulates the industry as part of its consumer protection mission. State Attorney Generals typically enforce state consumer protection laws where a direct selling company has salespeople.

All US direct selling companies are monitored and regulated by the Better Business Bureau National Programs Direct Selling Self-Regulatory Council (DSSRC), whether they are DSA members or not. The DSSRC provides impartial monitoring, enforcement, and dispute resolution regarding product claims or income representations by all US direct selling companies and their sales force members.

As a condition of membership, DSA companies must adhere to DSA’s Code of Ethics, a stringent set of consumer protections, including prohibition of inventory loading and the 90 percent buyback guarantee. Independent direct sellers who represent member companies are responsible for upholding these same high standards of business ethics that companies pledge to maintain.

Myth: There is nowhere to turn if I need to report a problem with a direct selling company.

Fact: Consumers can start by reporting business practice issues directly to the direct selling company. They can also contact the independent DSA Code Administrator and the Direct Selling Self-Regulatory Council.

The BBB National Programs Direct Selling Self-Regulatory Council (DSSRC) monitors and manages concerns about the accuracy of earnings claims, income claims, or product claims made by any direct selling company, whether the company is a DSA member or not.

Consumers may report issues of inventory loading, terms of sale, warranties, and product guarantees, for example, by filing a complaint with the Federal Trade Commission (FTC) or with their State Attorney General.

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Related Papers

Manfred Krafft , Anne Coughlan , Julian Allendorf

This paper uses a unique dataset of over 13,000 individual direct-selling distributors from dozens of firms, at a wide variety of stages in their direct selling experiences, to investigate the motivations to join, stay, and leave a direct selling distributorship. We build on the literatures in sales force management and compensation, economics, organizational behavior, psychology and sociology to develop hypotheses both about each of these key decisions a distributor makes, as well as the interlinkages among the join, stay, and leave junctures in the distributor’s life cycle. Our analysis shows that many insights from these underlying academic research paradigms are robust to the direct selling situation, while others are not supported – suggesting that direct selling has many parallels, but is not a replica of, other non-direct-selling sales channels. We find that individuals join as direct-selling distributors for a variety of reasons, many of which combine multiple aspects of direct selling that a cluster of distributors finds attractive. Only a small proportion of joiners sign up purely for personal consumption of the direct-selling firm’s products – but a great majority do join for this and other reasons as well. We further find that stated reasons for joining are frequently replaced by other motivations for staying as a direct selling distributor, consistent with the idea that distributors join without always knowing what direct selling will offer to them; they learn in the process of doing it. We also link certain traits as well as certain joiner and stayer types to the likelihood that a distributor will leave the firm; but interestingly, we do not find that a distributor’s reasons for joining have a relationship with his/her likelihood of leaving. Thus, the join --> stay --> leave life cycle path does show linkages from each stage to the next, but its failure to directly link join reasons to likelihood to leave is consistent with the learning that naturally occurs as distributors develop.

Industrial Marketing Management

Arch Woodside

Phani Achanta

Bos Wisawachaiyawat

Physica A-statistical Mechanics and Its Applications

Erika Fille Legara

Government regulators and other concerned citizens warily view multilevel marketing enterprises (MLM) because of their close operational resemblance to exploitative pyramid schemes. We analyze two types of MLM network architectures—the unilevel and binary, in terms of growth behavior and earning potential among members. We show that network growth decelerates after reaching a size threshold, contrary to claims of unrestricted growth by MLM recruiters. We have also found that the earning potential in binary MLM’s obey the Pareto “80–20” rule, implying an earning opportunity that is strongly biased against the most recent members. On the other hand, unilevel MLM’s do not exhibit the Pareto earning distribution and earning potential is independent of member position in the network. Our analytical results agree well with field data taken from real-world MLM’s in the Philippines. Our analysis is generally valid and can be applied to other MLM architectures.

Sustainability

Nestor Shpak

European Journal of Business and Management Research

Samuel Affran

Information Management and Business Review

elisabeth siahaan

Nowadays, MLM Company around the world are highly developed, and companies especially in Indonesia have been using a system of direct sales to the consumers. The career structure in MLM Company has been very much acknowledged. However, not all MLM distributors are able to achieve the line of succession. The purpose of this research is to analyse the main causes of career success in MLM Company. This study uses both quantitative and qualitative methods. The selection of samples is carried out using a snowball technique which retrieved as many as 198 distributors registered at the Multi-Level Marketing (MLM) Company in Medan, namely; PT. Herbalife Indonesia, PT. Orindo Ayu (Oriflame), PT. Sophi Martin Indonesia, PT. K-link, PT. Tupperware Indonesia and PT. Amway Indonesia. The result of the study finds that entrepreneurial competency and committment simultaneously have a significant influence to the career success of MLM distributors. Moreover, the study finds a partial relationship between the entrepreneurial commitment and motivation that has a significant effect on career success, while the entrepreneurial competency does not partially influence the success of career significantly. The results also show that entrepreneurial motivation is a moderating variable that is able to strengthen the influence of the entrepreneurial commitment to career success, as well as between the entrepreneurial competency and career success.

Journal of business Venturing

Ian C. MacMillan

IAEME Publication

In today's world, business development is the key to success. If the business does not develop, larger competitors take part of its customers. To maintain position and successful development in the market, it is necessary to expand the enterprise, that is, to scale the business. Scaling a business is a process whose primary goal is to increase sales and profits.The article discusses the necessary conditions for scaling a business, the main ways and conditions for expansion. The article also presents modern marketing tools that play an important role in scaling and automation of business processes. The considered option of analyzing a possible sales market for scaling a business is the basis for making decisions related to market activity, choosing a target market, determining the planned sales volume, etc.

Advantages and Disadvantages of Direct Selling

Advantages and disadvantages of direct selling: perspectives of both tourism operators and tourists.

The growth of the internet has made direct selling easier and faster for both tour operators and tourists. According to Frost (2004) the fascination with new technology has changed the way tourism providers interact and trade with their customers. The primary focus for this essay is to discuss the advantages and disadvantages of direct selling for travel and tour management. In this essay, the perspectives of both tourism operators and tourists will be considered.

This essay will be presented in four sections. The first section will outline direct selling and identify the users of direct selling.

The second section will discuss the advantages and disadvantages for a tourist using direct selling. The third section will discuss the advantages and disadvantages for a tourism provider using direct selling. Finally, the essay will be concluded summarising the key advantages and disadvantages for direct selling. In the past, travel agents have been an intermediary for tourists and tourism sellers.

Travel agents have been used by tourists to access a wide range of tourism service providers; likewise tourism providers have used travel agents to gain access to numerous customers (Frost, 2004).

Due to the extreme competition in the tourism industry, tourism providers are looking to cut costs in order to win over customers with lower prices. This is currently being done by cutting down on the commission costs payed to intermediary such as travel agents and introducing direct selling. In recent years the rapid growth and vast accessibility of the internet has allowed the transition to direct selling to take over.

Proficient in: Economics

“ Ok, let me say I’m extremely satisfy with the result while it was a last minute thing. I really enjoy the effort put in. ”

The internet creates availability and accessibility for tourists and tourism providers to do business while providing equivalent information at a lower cost than a travel agent can (Bennett & Lai, 2005).

Moreover, Frost (2004) identifies four methods of direct selling other than the internet where tourism businesses are able to get in contact and do business with tourists, these include: use of the telephone, increased use of credit cards, the development of call centres and the development of customer loyalty programs. Each of these function have the ability to facilitate direct selling and put the tourism seller directly in touch with the purchaser.

However, for many tourism businesses, airlines in particular, the internet has become the primary method for direct selling (Law & Leung, 000, as cited in Frost, 2004) Tourism businesses are generally able to easily create their own websites on the internet to attract, interact and make transactions with potential tourists without using an agent. According to Bennett and Lai (2005) the internet has given tourism providers such as hotels the opportunity to cut out intermediaries by providing facilities for direct booking via their websites. Hotels and airlines are service providers who make notable use of direct selling over the internet.

According to Howard and Harris (2001) travel products are one of the most popular products and services available on the internet as they do not require the customer to feel, smell, try on or test before purchasing and the product does not need to be sent to the buyer. Many tourism businesses provide the opportunity to purchase tourism products or services directly via their websites. A study by Dolnicar and Laesser (2007) revealed that 64. 4% Swiss tourists purchase tickets for scheduled flights departing from local airports directly from suppliers in comparison to 35. % who purchase from travel agents, similarly only 33. 2% of Swiss tourists purchase tickets for ships and cruises from travel agents.

This data shows that many tourists are moving away from the traditional use of travel agents and further towards direct purchasing. Webber and Wesley (1999) found that the types of tourists most likely to be using the internet to purchase directly form tourism sellers are usually between the ages of 26 and 55, have high incomes, are employed in management, professional or computer related positions and have more experience on the internet.

However it is important to note here that this research was conducted in 1999 and results today may differ. A tourist will experience advantages when purchasing tourism products and services directly from the seller. The most apparent advantage that a tourist encounters is lower cost. As the seller is not required pay commissions to an intermediary, products and services become cheaper and the tourist will benefit from the lower cost. The availability of cheaper tourism products is a certain advantages for tourists. As the purchase is often a high involvement purchase, tourists tend to shop around for the best available offers.

The introduction of direct selling has forced prices in the tourism industry down therefore creating more competition for sellers but better prices for buyers. Direct selling has also allowed the industry of low cost airlines to evolve and create greater savings and advantages for tourist. Dolnicar and Laesser (2007) found that direct selling over the internet also allows tourists to communicate with suppliers regarding information about the product or service and allows them to make transactions at any time and any place. For many tourists the convenience of direct selling online is a key advantage.

The ability to purchase at all hours of the day and night and from any where in the world is one of the significant attractions to online direct selling. Many tourists work long hours and are not able to get to a travel agent during open hours; this feature of convenience is a huge incentive to book directly with supplier. There are also disadvantages tourists experience when using the internet to purchase directly from sellers. According to Frost (2004) the internet is considered by some to be: impersonal, inflexible, frustrating, not always convenient, not always available and risky.

Frost (2004) explains that many people would prefer to talk to a real person when planning travel rather than a computer screen, as people value the reassurance of personal advice. Many tourists appreciate the independence of an intermediary who does not work for the supplier and will give true, unbiased advice. Intermediaries such as travel agents are able to make tourists feel comfortable when purchasing tourism products as they are able to offer lots of different options from many suppliers.

Frost (2004) also identifies that for some people the internet can be difficult to use as some websites do not allow certain people to access it and may lack the information required to complete bookings. Some websites of tourism suppliers are confusing to use as they may use technical language and have too much information. People who do not use the internet as frequently as others often have difficulties with making bookings online. Therefore, tourists often prefer to use a travel agent or intermediaries as they are able to perform all of the difficult and time consuming tasks that the tourist can not.

According to Frost (2004) some tourists acting as their own travel agent risk losing the accuracy, knowledge and speed that an agent offers. Travel agents are specially trained in understanding the industry and are available for tourists to use to gain information from. The final disadvantage experienced by tourists to be discussed is the risk of fraud. According to Frost (2001) many tourists have concerns when purchasing online and giving out personal information such as credit card details. It is a well known fact that some people do experience fraudulent behaviour when spending money online.

This can be a high risk that a tourist takes when purchasing from an unknown supplier. This disadvantage of purchasing directly from a supplier may prevent some tourists from utilising this facility and choosing to use a trusted agent. When tourism suppliers sell directly to the tourist, the seller will also experience advantages and disadvantages. The foremost advantage experienced by a supplier selling to a tourist involves lower costs. These lower costs are often experienced due to the reduction in costs of commissions and distribution costs.

Dolnicar and Laesser (2007) complement these advantages by including higher revenues and a larger potential market to the advantages of a supplier selling via a webpage or directly to the tourist. Bennett and Lai (2005) found that suppliers reduce costs by cutting out the ‘middleman’ or intermediaries such as travel agents. As previously discussed, travel agents and intermediaries work based on the commission paid to them by the seller for selling to tourists on their behalf. By cutting out the intermediary and selling directly to the tourist, large savings can be made by the tourism supplier.

These cost reduction will not only increase revenues, but allow the tourism supplier to be more competitive within the industry. Further advantages of supplying online include the little to no capital investment required and the effectiveness of promotion and distribution through video clips, virtual tours and images (Bennett and Lai, 2005). Websites make communicating with tourists cost and time effective with online contact facilities such as online bookings email responses. Sellers are also able to provide all required information on the web page including frequently asked questions so that the buyer does not have to contact the supplier.

The use of images and videos provide more depth to what the tourist is purchasing and allows the tourist to interpret the information. According to Bennett and Lai (2005) some suppliers, airlines in particular, benefit from direct selling as the internet reduces the cost of producing tickets. As tickets booked online are all created electronically, the supplier saves in the costs of printing the ticket and distributing the ticket. Further research has found that suppliers are choosing to improve their service by creating customer loyalty programs that allows the business to keep record of past users (Bennett & Lai, 2005).

These customer loyalty programs not only benefit tourist, but they allow the supplier to keep a close eye on where and when the customer is travelling. Once the tourism busiesses knows who the customer is they are able to target them with promotions for future travel. This shows that if the seller was not directly in touch with the tourist, their customer knowledge would be limited and future promotion would be more difficult. Common customer loyalty programs in the tourism industry include frequent flyer programs and hotel rewards clubs.

These loyalty programs usually reward customers for repeat business with discounts, perks and upgrades therefore encourages the customer to continue to use the business. The disadvantages of suppliers selling directly to tourists have also been considered. These disadvantages include the costs of maintaining websites and support facilities whilst trying to keep the tourism business running. Many tourism busiesses, particularly smaller businesses find it easier to leave the sales and customer service duties to experienced agents so that they are free to do what they do best.

Although most large tourism organisations such as airlines have developed departments especially for direct selling, smaller businesses such as tour operators may not have the capacity or facilities to conduct direct business with tourists. Dolnicar and Laesser (2007) found that the costs in maintaining websites, the use of information technology support and the usage of internet channels often becomes costly to some tourism businesses. It is important for the tourism supplier to ensure that websites are constantly up dated and all applications and purchasing functions are working properly and easy for the tourist to use.

In addition, the tourism supplier must ensure that the business is advertised in the best possible media outlet to guarantee high customer coverage. In conclusion, this essay has revealed that the growth of the internet is allowing communication between tourists and tourism sellers to be much easier and widely available. Key advantages for tourist purchasing tourism products through directly include lower purchasing costs and the convenience of purchasing from any where at any time. However the disadvantages of purchasing directly include the lack of personalisation and trust, the inconvenience of time wastage and the risk of fraud.

Key advantages of tourism businesses selling directly to busiesses involve the reduction of costs paid to intermediaries and an increase in customer loyalty. However disadvantages to tourism businesses include higher competition and the costs of maintaining websites. This essay has shown that although direct selling and the internet and is steering customers away from the use of intermediaries such as travel agents, there are still many advantages and disadvantages to both suppliers and tourists when doing business together.

References:

Bennett, M. M. & Lai. C. K. (2005). The impact of the internet on travel agencies in Taiwan. Tourism and Hospitality Research, 6(1), 8-23.
Frost, W. (2004). Travel and tour management, Melbourne: Hospitality Press.
Howard, J. & Harris, R. (2001). The Australian travel agency (3rd Ed. ). Roseville, N. S. W: McGraw-Hill Book Company Australia.
Dolnicar, S. & Laesser, C. (2007). Travel agency marketing strategy: insights from Switzerland. Journal of Travel Research, 46, 133-146. DOI:10. 1177/0047287507299573
Webber, K. & Wesley, R. (1999). Profiling people searching for and purchasing travel products on the World Wide Web. Journal of Travel Research, 37, 291-298.

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The Power of Direct Marketing and Direct Selling

December 29, 2023 December 29, 2023
by Nageshwar Das

Discover the differences between direct marketing and direct selling and learn how businesses can leverage these strategies to their advantage. Find out how direct marketing allows businesses to communicate directly with their target audience and personalize their messages. Explore the advantages of direct selling, including face-to-face interaction and immediate sales. Understand the synergy between direct marketing and selling, and how combining these strategies can create a seamless customer experience. Incorporate marketing and selling into your marketing mix to maximize results and build strong customer relationships.

Exploring the Power of Direct Marketing and Direct Selling

They are two powerful strategies that businesses use to connect directly with customers and drive sales. While they share similarities, they each have unique characteristics and benefits that can help businesses achieve their marketing and sales goals. In this blog post, we will explore the differences between marketing and selling, and how businesses can leverage these strategies to their advantage.

What is Direct Marketing?

Direct marketing is a promotional strategy that involves reaching out to customers directly, without intermediaries, to promote products or services. It is a targeted approach that allows businesses to communicate directly with their target audience. Direct marketing can take various forms, including email marketing , direct mail, telemarketing, and social media marketing.

One of the key benefits of direct marketing is its ability to personalize the message and tailor it to the specific needs and preferences of the target audience. By collecting and analyzing customer data, businesses can create highly targeted campaigns that resonate with individual customers. This personalized approach increases the chances of converting leads into customers and building long-term relationships.

What is Direct Selling?

Direct selling, on the other hand, is a sales strategy that involves selling products or services directly to consumers, typically outside of a traditional retail setting. It eliminates the need for middlemen and allows businesses to interact directly with customers. Direct selling can take various forms, including door-to-door sales, home parties, and online selling through e-commerce platforms.

Direct selling offers several advantages for businesses . It provides a personal touch, allowing sales representatives to demonstrate and explain the products or services in detail. This face-to-face interaction builds trust and credibility, which can lead to higher conversion rates. Additionally, direct selling often allows for immediate sales, as customers can make purchases on the spot.

Research the top 10 direct selling online businesses , including Amway, Avon, and Herbalife.

The Synergy Between Direct Marketing and Direct Selling

While direct marketing and direct selling are distinct strategies, they can work together synergistically to maximize results. By combining the power of personalized marketing messages with the personal touch of direct selling, businesses can create a seamless customer experience that drives sales and fosters loyalty.

For example, a company can use direct marketing to generate leads and create awareness about their products or services. Through targeted email campaigns or social media ads, they can capture the attention of potential customers and encourage them to take action. Once leads are generated, direct selling techniques can be employed to convert those leads into paying customers. This could involve setting up personalized consultations or demonstrations to showcase the product’s features and benefits.

By integrating these strategies, businesses can create a cohesive customer journey that moves prospects from initial awareness to purchase. The combination of direct marketing and direct selling allows for a more holistic approach to customer acquisition and retention.

They are powerful strategies that can help businesses connect directly with customers and drive sales. While direct marketing focuses on personalized communication to reach the target audience, direct selling emphasizes face-to-face interaction and immediate sales. By leveraging the strengths of both strategies, businesses can create a comprehensive approach that maximizes results and builds strong customer relationships.

Whether you’re a small business looking to expand your customer base or a large corporation aiming to increase sales, incorporating marketing and selling into your marketing mix can be a game-changer. So, embrace the power of direct marketing and direct selling and watch your business thrive!

Direct selling online business in india.

Nageshwar Das

1 thought on “the power of direct marketing and direct selling”.

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What are the advantages of direct sales?

12 Jan 2023

Format: APA

Academic level: College

Paper type: Essay (Any Type)

Downloads: 0

Companies from across the globe often consider different options when it comes to deciding the right channel through which they present their product offerings to individual consumers, with many firms utilizing direct sales. Selling directly to potential as well as existing customers has far-reaching positive effects. First, they present businesses with the best possible opportunity to establish strong customer relationships. In essence, multiple personal interactions remain memorable and meaningful, as clients can ask pressing questions about given products. Second, direct sales allow firms to coordinate other business strategies simultaneously. For example, sales representatives can be advised to use the same presentation or language used in other marketing methods. Equally important, selling directly to customers help in cost reduction and management.

What are the two conditions that must be met if a firm is to practice market pricing successfully?

Market pricing, also known as market-based pricing strategy is a competition tool, which allows a given firm to gain the much-needed competitive edge by setting prices slighter lower or higher than its competitors. To achieve this successfully, the business organization must be well positioned to predict the reaction of individual consumers. At the same time, the firm must have some degree of monopoly power in the industry.

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What are some of the advantages of personal selling for an international firm?

International companies, which use personal selling tend to enjoy a broad range of benefits. In particular, they employ local sales representatives, who possess the much-needed capacity to understand the prevailing customs, culture, and norms. Additionally, the whole process of personal selling plays a central role in promoting and maintaining personal as well as close contact with existing and potential consumers. At the same time, it allows the participating firm to gain quick access to valuable market information.

What are the two important sets of distribution issues faced by international firms?

International companies often face a variety of distribution issues, especially cultural differences and stringent government or political regulations. For instance, Apple continues to have difficulty distributing and selling the infamous iPhone in China, with the Chinese company, Huawei, facing the same challenge in the United States (U.S.), given the ongoing trade war between the two economies. Differences in culture, including language barrier tend to play a pivotal role in hampering communication between locals and non-local sales representatives.

Business Torts Laws and Intellectual Property Rights
Promotion and Pricing Strategies

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Direct Sales Approach for Selling Crude Oil in Nigeria Essay

Directing selling, selling of crude oil in nigeria, control of crude oil selling in nigeria, factors to be considered before embarking on direct sales of crude oil, global trading patterns that affect direct sales approach, challenges that affect direct sales approach of crude oil in nigeria..

The direct sales approach is a method of marketing and retailing goods to the consumer and does not rely on direct mail, product advertising or fixed retail outlets. In the context of crude oil, it is usually sold directly to potential buyers through an organisation or corporation, which controls and regulates the selling. The direct selling approach has greatly changed in the recent due to the adoption of the internet and shifts in consumer behaviour. Therefore, it would be important to the Geneva-based oil trading company to adopt direct selling strategy to Crude oil is the leading product in terms of the value of units traded on a daily basis globally.

The selling of most of the world crude oil reserves is controlled by organisations that facilitate the sale of the crude oil such as the Nigeria National Petroleum Corporation (NNPC). These organisations have been tasked with the role of setting up guidelines concerning the selling process. In addition, other oil producing countries have created such corporations to manage various issues with regard to oil production and selling.

The government mainly controls the operations of the NNPC. In fact the oil sector in the country has been relatively stable sue to the strict regulations that re effected by the NNPC on behalf of the government. This corporation allocates the crude oil to specific buyers who have met certain conditions set by the corporation. Those who may apply for allocation are required to be bona fide end users who own a refinery and retail outlets abroad, details of the facilities, markets and volumes of crude oil processed over the last three years must accompany the application and must be an established and globally recognised large-volume trader.

Applicants should meet certain requirements in order to be allowed to trade in oil. This aims at prohibiting firms that are not well prepared to engage in oil trading, which would result in the collapse of the global petroleum industry. One of the most important requirements of applicants is a minimum investment that is set by the oil production and regulatory body. In addition, firms should have about 100 million US dollars with regard to annual turnover.

Direct selling of crude oil in Nigeria can be described in four ways. They include freight on board (FOB), tanker-to-tanker (TTT), tanker take over (TTO) and cost insurance and freight (CIF). Among the three methods of selling oil in the country, various firms commonly adopt the TTO and TTT. In TTO, a firm uses a tanker of a oil producing company to transport the purchased oil to its premises, but returns the equipment upon delivery. On the other hand, in TTT, a purchasing firm uses its own tankers for transporting the bought oil to its destination. Thus, it would be expected that the firms adopting the TTT approach of buying oil usually incur relatively cheap cost in purchasing oil than those that use the TTO method. Various payment methods are adopted to facilitate efficiency in the oil selling business. Some of the methods are swift methods, or online payment approaches.

Nigeria is the largest oil producer in Africa, and the fifth largest in the Organisation of Petroleum Exporting Countries (OPEC). Oil for the past three decades has provided 90 percent of the foreign exchange earnings of Nigeria, financing 80 percent of total government revenue. According to the Nigerian constitution, crude oil is the property of the federal government, which negotiates the terms of oil production with the private firm. Most exploration and production activities involving crude oil are carried out by multinationals, but they operate under the control of the Nigerian National Petroleum Corporation (NNPC). The oil industry contributes to 55-60 percent of production contracts receive same ratio of total revenues.

Most of European and American countries have signed agreements with the Nigerian government in extraction and selling of the Nigeria’s crude oil. The new terms for oil exploration are outlined in the Petroleum Act and allow foreign companies to bid for contracts in joint operation with the NNPC.

The new contracts between the NNPC and foreign firms were put in place for the purpose of improving Nigeria’s control of the oil industry, thus ensuring that the multinationals sold up to 60 % of their equities to the state. However, this goal has been disrupted by domestic economic crisis, international pressures for privatisation, and political instability.

The control over the operating costs of production and selling of crude oil has been repeatedly expressed in the maximisation of high profits accrued by foreign oil companies, even during times of economic downfall.

There are four major factors that need to be considered when trading in crude oil. The first is the funds needed to buy the oil. It is estimated that one will need a minimum of hundred US dollars to get up to two million barrels of crude oil. The second factor to be considered is availability of potential buyers. One should research on the available potential buyers before venturing into the selling business.

The third factor is the tanker where the seller will store the crude oil as he or she awaits transportation to the potential buyers. The fourth factor to be considered is the crude oil seller or supplier. Before engaging in the business of trading in crude oil you will need a seller or supplier to distribute the oil to respective buyers. This is usually costly for many countries but the burden is lessened with the acquiring of a tanker for storage of oil reserves.

These reflect the result of buyers and sellers responding to market forces to get each type of crude oil from where it is produced to where it is most important and valued.

The direct selling of oil to be adopted by the company based in Geneva would make important considerations with regard to setting the prices of oil products. The prices are largely influenced by the prices of crude oil, which are vey volatile. Therefore, the approach selling oil would be based on trends of global market trends, which could be impacted by several factors, such as politics, natural calamities, and famines, among others.

Some of the major countries that the organisation is expected to have the best sales would be China and the US because of their relatively high oil consumption trends. Thus, the direct selling approach would focus on identifying the best market niches in the countries that have significant oil usage patterns. Although various issues could negatively impact the sales, it would be expected that the approach would be implemented in such a way that most of the negative factors would be eliminated. Today, determined market signals that inform the buyers and sellers about the current and future supply and demand, which ensures that the global price for crude oil reflects its market value.

Though direct selling approach has been on use in Nigeria, a number of challenges have been faced. The first challenge is that the NNPC cannot work without the support of the foreign multinationals and as a result these multinationals reap maximum profits at the expense of the country. Secondly, there are constant theft cases of crude oil when it is being transported to the respective buyers. As a result of this, the country makes major losses that affect the economy negatively. The changes in the global market price may affect the selling in that the crude oil may have already been sold hence affecting the oil company negative or positively. Direct selling approach is also affected by constant breakdown of trucks transporting the leading to extra losses.

In conclusion, the direct selling strategy would be adopted by the organisation so that the sales revenues would be improved in the coming years. The country of target is Nigeria, which has significant crude oil that is used to make diverse products. Thus, the management of the firm should use the approach to gain competitive advantage in the future.

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Hundreds of Jan. 6 Prosecutions—Including Donald Trump’s—Are Suddenly in Peril at the Supreme Court

Will the Supreme Court jeopardize the prosecution of more than 350 defendants involved with Jan. 6, including Donald Trump, by gutting the federal statute that prohibits their unlawful conduct? Maybe so. Tuesday’s oral arguments in Fischer v. United States were rough sledding for the government, as the conservative justices lined up to thwap Joe Biden’s Department of Justice for allegedly overreaching in its pursuit of Jan. 6 convictions. Six members of the court took turns wringing their hands over the application of a criminal obstruction law to the rioters, fretting that they faced overly harsh penalties for participating in the violent attack. Unmentioned but lurking in the background was Trump himself, who can wriggle out of two major charges against him with a favorable decision in this case.

There are, no doubt, too many criminal laws whose vague wording gives prosecutors near-limitless leeway to threaten citizens with decades in prison. But this isn’t one of them. Congress wrote a perfectly legible law and the overwhelming majority of judges have had no trouble applying it. It would be all too telling if the Supreme Court decides to pretend the statute is somehow too sweeping or jumbled to use as a tool of accountability for Jan. 6.

Start with the obstruction law itself, known as Section 1552(c), which Congress enacted to close loopholes that Enron exploited to impede probes into its misconduct . The provision is remarkably straightforward—a far cry from the ambiguous, sloppy, or muddled laws that typically flummox the judiciary. It’s a mainstay of the Department of Justice’s “Capitol siege” prosecutions, deployed in about a quarter of all cases. Overall, 350 people face charges under this statute, Trump among them , and the DOJ has used it to secure the convictions of about 150 rioters . It targets anyone who “corruptly … obstructs, influences, or impedes any official proceeding, or attempts to do so.” And it clarifies that an official proceeding includes “a proceeding before the Congress.”

The government argues that some rioters attempted to “obstruct” an “official proceeding” by halting the count of electoral votes through “corrupt” means. That includes Joseph Fischer, the defendant in the current case. Fischer, who served as a police officer before Jan. 6, allegedly texted that the protest “might get violent”; that “they should storm the capital and drag all the democrates [sic] into the street and have a mob trial”; and that protesters should “take democratic congress to the gallows,” because they “can’t vote if they can’t breathe..lol.” Video evidence shows Fischer assaulting multiple police officers on the afternoon of Jan. 6 after breaching the Capitol.

Would anyone seriously argue that this person did not attempt to corruptly obstruct an official proceeding? For a time, it seemed not: 14 of the 15 federal judges—all but Judge Carl Nichols in this case—considering the charge in various Jan. 6 cases agreed that it applied to violent rioters bent on stopping the electoral count. So did every judge on the U.S. Court of Appeals for the District of Columbia Circuit except one, Judge Gregory Katsas. Both Nichols and Katsas were appointed by Trump. Their crusade to kneecap the law caught SCOTUS’ attention, and the court decided to intervene despite overwhelming consensus among lower court judges. The Supreme Court’s decision will have major implications for Trump: Two of the four charges brought by special counsel Jack Smith in the former president’s Jan. 6 prosecution revolve around this offense. A ruling that eviscerates the obstruction law would arguably cut out the heart of the indictment.

At least three justices seem ready to do just that. Justice Clarence Thomas—back on the bench after yesterday’s unexplained absence —grilled Solicitor General Elizabeth Prelogar over the law’s application to Jan. 6. “There have been many violent protests that have interfered with proceedings. Has the government applied this provision to other protests in the past?” Thomas asked, as if to nail the Justice Department for inconsistency and reveal some improper motive for wielding the law against violent insurrectionists. Justice Neil Gorsuch trolled Prelogar by alluding to Democratic Rep. Jamaal Bowman’s infamous fire alarm incident . “Would pulling a fire alarm before a vote qualify for 20 years in federal prison?” he asked. Justice Samuel Alito joined in to ask about “protests in the courtroom” when an audience member interrupts the justices and “delays the proceeding for five minutes.”

“For all the protests that have occurred in this court,” Alito noted pointedly, “the Justice Department has not charged any serious offenses, and I don’t think any one of those protestors has been sentenced to even one day in prison.” Why, he wondered, weren’t they charged under the obstruction statute?

Alito, audibly angry, continued: “Yesterday protestors blocked the Golden Gate Bridge in San Francisco and disrupted traffic in San Francisco,” he told Prelogar. “What if something similar to that happened all around the Capitol so … all the bridges from Virginia were blocked, and members from Virginia who needed to appear at a hearing couldn’t get there or were delayed in getting there? Would that be a violation of this provision?”

To be clear, this is trolling: There is simply no comparison between a violent attack on the Capitol and protests that take the form of civil disobedience. And these justices expressed no similar concern about an ongoing red-state effort to persecute peaceful protesters who participate in Black Lives Matter demonstrations. Gorsuch and Alito’s hypotheticals ignore the reality that there are two layers of protection between minor protests and this rather major law. First, the Constitution affords prosecutorial discretion to the executive branch, allowing the Department of Justice to decide when an illegal “protest” is dangerous enough to warrant the use of a criminal law like the obstruction statute. Second, prosecutors must always prove the alleged offense to a jury, beyond a reasonable doubt, creating a democratic check on the abusive use of a stringent law to punish a silly crime.

Prelogar highlighted this latter point, explaining that juries have indeed acquitted Jan. 6 defendants of obstruction. If prosecutors ever apply this (or any other) criminal statute to a questionable set of facts, they may always be thwarted by a jury. That is how the system is meant to work.

This kind of behavior from Thomas, Gorsuch, and Alito is no surprise at this point. And the liberal justices countered them as best they could. What’s troubling is that the other conservative justices jumped in to join the pile-on. Chief Justice John Roberts insistently pressed Prelogar to prove that the Justice Department has interpreted and enforced the obstruction law consistently in the past. This question ignored the fact that, as Prelogar reminded the court, there has never been any crime like the assault on the Capitol , so the agency had no prior opportunity to apply the law in any similar way.

Justice Brett Kavanaugh suggested that the Justice Department didn’t really need this statute because it has other laws at its disposal. “There are six other counts in the indictment here,” he told Prelogar. Why “aren’t those six counts good enough just from the Justice Department’s perspective given that they don’t have any of the hurdles?” Of course, the DOJ brought the obstruction charge specifically because it was more serious than the others; prosecutors felt an obligation to enforce Congress’ strong protections against intrusions on official proceedings, including those in the Capitol. Kavanaugh appears to think the DOJ should have settled for a smattering of lesser charges. Justice Amy Coney Barrett was not so obtuse; she earnestly worried that the statute was too broad and fished around for narrowing constructions. Yet she seemed unsatisfied with the many options Prelogar provided to keep the law limited to the most egregious interruptions of government business.

What all six justices seemed tempted to do was rip up Section 1552(c) because it happens to include another sentence that applies to the destruction of evidence and other official documents. Jan. 6 rioters didn’t destroy evidence, this argument goes, so they can’t be culpable under a law. That reading is untenable , something Prelogar impressively reinforced at every turn on Tuesday, but it may be attractive if a majority wants to defuse this statute before it’s used against Trump in a court of law.

Smith’s indictment of the former president for his participation in Jan. 6 doesn’t entirely hinge on obstruction. It does, however, weave obstruction into both the facts and the legal theory of the case, placing it at the center of a broader criminal conspiracy to overturn the 2020 election. If SCOTUS defuses the law now, Smith would have to scrap two of four charges and restructure the entire indictment, making it that much easier for Trump to demand further delay and, eventually, evade a conviction.

The justices know this. They should have been on their best behavior on Tuesday to avoid any glimmer of impropriety. It was already profoundly disturbing that Thomas sat on the case given his wife’s involvement with the attempt to overturn the election. The other justices’ faux concern about overcriminalization of protesters only added to the foul smell emanating from arguments. There’s no telling how Fischer will turn out; maybe the liberal justices will help their colleagues rediscover their better angels behind the scenes. From Tuesday’s vantage point, though, the argument was a bleak reminder of how easy it is for cloistered jurists to wish away the massive stakes of a case like this.

NURBURGRING WEBCAMS
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U.S. Dealers Concerned About VW’s Scout And Sony Honda’s Afeela Direct Sales Model

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U.S. Dealers Concerned About VW’s Scout And Sony Honda’s Afeela Direct Sales Model

In 2022, VW's head of sales said the firm's dealers would have no claim to Scout's EVs

by Brad Anderson

The two new manufacturers have remained tight-lipped about how they will sell their EVs.
Many dealers are worried VW and Honda/Sony will adopt a direct-to-consumer sales model.
The car manufacturers have been threatened with legal action should they go down the direct sales route.

Honda and VW are being urged not to sell their impending Scout and Sony Honda Mobility vehicles outside their established franchised dealers in the United States.

Last week, the Automotive Trade Association Executives expressed their concern at the possibility of the brands selling their vehicles directly to consumers or through an agency model where dealers receive a fee for facilitating the sale of a new vehicle. The association took out a full-page ad in the April 15 issue of Automotive News and asserted that state laws prohibit companies directly or indirectly affiliated with an established manufacturer from selling new vehicles without dealers .

Read: Scout Motors Takes A Jab At Chevy Blazer And Ford Bronco

The ad has been supported by 50 state and 21 metro associations and indicated that dealers could pursue legal action if VW, or Sony and Honda’s joint venture decide to sell Scout and Afeela EVs directly to consumers respectively.

Speaking with Auto News , the Automotive Trade Association Executives’ 2024 chairman and chief executive of the Pennsylvania Automotive Association, John Devlin said dealers were becoming increasingly concerned by the lack of communication from the carmakers about their respective plans.

“After two years of asking and getting nothing, frustration is very high,” he said. “If they want to sell the vehicles direct, it’s going to be an incredibly difficult battle.”

The chief executive of Scout Motors, Scott Keogh, has declined to say how the brand will sell its vehicles, simply stating it wants to do “the right thing for our customers.” A spokesperson from Scout echoed this sentiment in a statement.

“Our future customers are at the heart of every decision we make as we work to build our production center and design, engineer and ultimately manufacture and sell great vehicles,” they said. “The automotive industry is constantly changing, so we’re taking our time to very deliberately envision the right customer journey.”

In 2022, VW of America sales and marketing head Andrew Savvas informed dealers that Scout was an independent brand and that dealers would have no claim on its products. Little has been said about the company’s retail plans since then. Scout is developing both an electric pickup truck and SUV for the U.S. market.

Sony Honda Mobility representatives have not commented on the firm’s retail plans. It plans to sell its electric sedan in 2025 before launching a second SUV model in 2027.

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Direct Selling – Meaning, Types, Pros, Cons, Examples & Tips

What is Direct Selling?

How Direct Selling works?

Types of Direct Selling

Host/Party-Plan Sales

Multi-Level Marketing

Direct Selling VS Pyramid Scheme

Advantages of Direct Selling

Disadvantages of Direct Selling

Tips for Direct Selling

Build Relationships Before Sales

Be Consistent

Network Building

Stay Connected With Your Customers

Offer Incentives to your Reps or Distributors

Train your Reps

Turn Your Customers into your Brand Ambassadors

About The Author

shaharYar Ahmad Ranjhaa

What is Direct Sell | Definition, Examples and Best Strategy | 2024 Reveal

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Need a tool to sell better?

What is Direct Sell?

Why Is Direct Sell Important?

What Are Examples Of Top Direct Sellers?

5 Keys to Successful Direct Sell

Is it direct sales or direct sales?

What is direct selling to customers examples?

How do I become a direct seller?

What is the skill of direct sales?

What are direct sales and indirect sales?

Why is direct selling good for business?

Is direct selling a marketing strategy?

What is direct sales vs MLM?

What is online direct selling?

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