Direct selling consists of single-level marketing (in which a direct seller makes money by buying products from a parent organization and selling them directly to customers) and
multi-level marketing (in which the direct seller may earn money from both direct sales to customers and by sponsoring new direct sellers and potentially earning a commission from their efforts). Multi-Level Marketing is usually known as MLM. A single level direct selling involve mainly sale effort by the sales person, or named as an agent or a distributor. MLM would require more leadership and team work as products are sold through the network of many distributors, termed as business partners in many cases.
According to the
FTC: "Direct selling is a blanket term that encompasses a variety of business forms premised on person-to-person selling in locations other than a retail establishment, such as social media platforms or the home of the salesperson or prospective customer."
Modern direct selling includes sales made through the
party plan, one-on-one demonstrations, and other personal contact arrangements as well as
internet sales. Some sources have defined direct selling as: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs."
Some famous direct selling companies have a long history of over a hundred years. Take Avon as an example, they have been selling beauty products since establishment in 1886. Although not the first direct selling company, Mary Kate established in 1963 in beauty products was disruptive as they only accepted female distributors in the beginning years. Amyway started selling domestic household, which then adding more skincare and health products along their history of 60 years since 1959. Nu Skin Enterprises has its inception in 1984 in Provo, Utah, U.S.A. and focus on anti-aging products with lines of beauty device and health supplements.
[https://www.nuskin.com/en_CA/about_us/company_history/the_history.html Retrieved 16 Dec 2022] Main product lines carried by direct selling companies are household products, skincare and beauty, health supplement and some others characterized to have a long-tail consumption and brand loyalty, well-fit this specific business model.
See also
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Account based marketing
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Direct marketing
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Guanxi
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Lead generation
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Lead management
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Personal selling
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Relationship marketing
Relationship marketing is a form of marketing developed from direct response marketing campaigns that emphasizes customer retention and satisfaction rather than sales transactions. It differentiates from other forms of marketing in that it re ...
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Sales
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale.
The seller, or the provider of the goods or services, completes a sale in r ...
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Social selling
References
External links
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