Why Direct Selling

Direct selling, also known as person-to-person retail is a business model in which people sell products directly to the end consumer.

Direct selling makes entrepreneurship accessible to anyone, where you can start a business with low overhead costs and no experience. In direct selling, distributors earn income by selling particular products to end consumers, either in person or online. Direct selling entrepreneurs can also hire others to join their sales team, sell products and increase their income potential.

 

Direct sales are sales that take place between a brand and the end user without a middleman or distributor. They're a type of B2C sales, and they can happen in person or online. The most important thing for your company to know about direct sales is that it's on the rise — and there are no signs of it slowing down.

Direct Selling Business Model

Direct selling is a retail channel used by top global brands and small, entrepreneurial companies to sell products and services to consumers. Companies market all types of goods and services, including jewelry, cookware, nutritional products, cosmetics, household goods, energy and insurance, and much more

 

The direct selling channel differs from mass retail in one important way. It's not just about getting great products and services into the hands of consumers. It's also a path where entrepreneurial-minded Americans can work independently to build a business with low start-up and overhead costs.

 

Direct selling consultants work on their own but are affiliated with a company that uses the channel, giving them the freedom to run the business on their own terms. Consultants build strong personal relationships with potential customers, primarily through face-to-face discussions and demonstrations. In this age of social networking, direct selling is a market strategy that can be more effective for many companies and product lines than traditional advertising or securing premium shelf space.

 

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

 

Eighty-nine percent of direct sellers decide to work part-time, providing flexibility and work-life balance to busy parents, caregivers, military spouses, veterans, and others. As advances in technology create a new American economy whose foundation is built on the entrepreneurial spirit and independent work, it is important to remember that direct selling is 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 making substantial contributions to the economy and supporting the millions of Americans involved.

Independent Sales force

Direct selling is unique among retail channels because of the way products and services are sold to customers. Rather than relying on traditional retail stores or online marketplaces, direct selling companies maintain sales teams of millions of independent employees, which in 2015 contributed $36 billion to the U.S. economy. Real estate, insurance, travel and technology companies, and well- known brands also rely on independent workers to deliver products and services to consumers. Independent work adds value to those who choose to pursue it, to the economy and to society.

 

Independent direct sales consultants earn commissions on sales but work for themselves. They set their own hours, create their own marketing plans, and decide whether to build a sales team and how to advise the people on it, and how to serve their customers.

 

Millions of independent direct sellers see benefits in working for themselves. The most obvious is the chance to build and grow their own business and run it the way they want. The freedom and flexibility to set your own work hours attracts all kinds of people to direct selling, including parents with young children, students, caregivers, retirees, military spouses, and many others.

 

Start-up costs for most direct selling companies are a few hundred dollars or less because direct selling does not rely on overhead such as real estate, facilities and equipment, or traditional advertising, which can cost tens or hundreds of thousands of dollars.