Direct selling, as the name suggests, involves the direct sale of goods and services to consumers without the presence of a retail store. Since salespeople are involved directly with consumers, direct selling has proven to be one of the most cost-effective forms of marketing today. It does not only significantly reduce advertising costs but it also requires very little capital with virtually no overhead costs unlike traditional brick and mortar businesses.
Most direct selling companies employ Multi-level marketing, a marketing strategy wherein a salesperson earns not only from personal sales but as well as from every successful sale made by his downlines. It is this feature of multi-level marketing and the relative ease of direct selling that makes it so appealing to a lot of people.
Since direct selling is highly dependent on networks, all salespersons are considered to be part of a team. This means that while each person is expected to sell products and services on their own, each success -- and consequently, each failure, affects the entire network as a whole. The primary advantage of being part of such a network is that distributors get all the help and resources they need to succeed, making it easier not only to create a steady clientele but also to build a relationship of trust among merchants and consumers.
On the other hand, direct selling appeals to consumers because it eliminates the need to go to a physical retail location to go shopping. Instead, the salesperson goes to where the consumer is to present, market, and sell products and services. Direct selling through MLM or network marketing offers people a profitable venture either to earn some extra money to supplement their income or even to serve as one’s primary source of income.
