Wednesday, September 11, 2013

What Is Direct Selling?

There are three great methods of marketing- party plan, person-to-person and network marketing. Check out this article from one of our favorite companies, the "Direct Selling Women's Alliance":

Direct selling can best be described as the marketing of products and services directly to consumers in a face to face manner, generally in their homes or the homes of others, at their workplace or other places away from permanent retail locations. Direct sales typically occur through explanation or personal demonstration by an independent direct salesperson. These salespeople are commonly referred to as direct sellers. 

The strength of direct selling lies in its tradition of independence, service to consumers, and commitment to entrepreneurial growth in the free enterprise system. Direct selling provides accessible business opportunities to people looking for alternative sources of income, and whose entry is generally not restricted by gender, age, education, or previous experience. It should be noted that around the world a substantial majority of direct sellers are women, and most work in their direct selling businesses on a part-time basis. A very small percentage of direct sellers are employees of the companies whose products they represent. 

Independent direct sellers are those individuals engaged on their own behalf, or on behalf of a direct selling company, selling products and services through personal sales contacts, and are commonly referred to in some jurisdictions as independent contractors. Essentially, this means that the company whose products they distribute do not employ these independent salespeople with each individual operating their own business. These independent direct sellers have an opportunity to earn profits from their business, and also accept the responsibility for the risks associated with operating a business. 

Read more at: http://dswa.org/dswa_our_view.asp


Party Plan
Shared emphasis on product SALES and team building.

Products sold primarily through in-home shows.

Distributor consumption is a small percentage of the company's sales.

Company often provides a hostess program.

Sales force comprised primarily of women.

Commissions paid on limited levels.
Person-To-Person
Emphasis on product SALES/SERVICES.

Products/services sold primarily through one-on-one sharing.

Distributor consumption is a small percentage of the company's sales.

Company does not provide hostess program.

Sales force comprised of both men and women.

Commissions paid on few levels, if any
.
Network Marketing
Emphasis on TEAM BUILDING.

Products/Services sold primarily through one-on-one sharing.

Distributor consumption is a large percentage of the company's sales.

Company does not provide hostess program.

Sales force comprised of both men and women.

Commissions paid on multiple levels
.