Direct Selling Business Model


If you are interested in selling your products directly to the customer in a non-retail environment, then you have to adopt a direct selling business model. The best part of this business model is that it can eliminate most of the middlemen, for instance, the wholesaler, regional distribution centre and so on. The manufacturer sends the products to the Direct Sales Company or the distributor. Then the products reach the customers. The products that are sold through the direct selling business model, are not generally available in regular retail locations. Hence, it is necessary to find a distributor if someone wants to buy such services or products.

Generally, one can associate a direct selling model with network marketing companies and party-plan. There are other companies too, which use the direct selling business model. Many businesses that prefer B2B or business-to-Business to sell their services and products, utilise direct selling technique to target and sell the products to their end consumers. For instance, companies that deal in office supplies or advertising services, use direct selling technique and send their reps directly to stores which can utilise their services.

Difference between Direct Marketing and Direct Selling:

Also, one needs to understand the difference between direct selling and direct marketing. Direct marketing is the technique in which a company directly markets its services or products to the consumer. And direct selling is the technique in which an individual salesperson directly reaches out to customers.

Different types of Direct Selling:

  • Single level Direct Sales: This business design uses a one-on-one technique. For instance, door-to-door or in-person presentations are types of single-level direct sales. Such sales can take place online or via catalogue too. Normally, the income is in the form of commissions and extra bonuses.

  • Party plan or host sales: This type involves group settings. The rep or distributor gives a demonstration or presentation at a location. Sometimes, a company may sell to the individuals involved in a business. Income generated in the form of sales commissions, and recruitment commissions too.

  • Multi-level marketing (MLM): There are various ways in which sales take place in case of multi-level marketing, like, single or party presentations, catalogues, online, sales made by business partners and so on. 

Sometimes, people confuse between direct sales and multi-level marketing. But the two terms are not interchangeable. Network marketing and MLM are types of direct sales. But all forms of direct sales do not involve MLM. 

Using a direct sales model for home business:

One can definitely use the direct sales business model to build an up a made-from-scratch home business. For instance, a social media management service provider can approach different companies directly to sell them his services. This method is applicable in most of theB2B product or service. B2C sales can also utilise this technique. For instance, the inventor of a new device can approach potential customers directly with a one-on-one presentation. There are many direct selling consultants in India who can provide effective guidance to their clients. 

If you want to establish your business on a direct sales basis, then you should hire the leading direct selling consultants in India. You will be amazed to see the benefits that they offer you.


What do you think?

Written by Bhupendra

Bhupendra Singh is a professional writer, blogger who writes for a variety of online publications. She is also an acclaimed blogger outreach expert and content marketer. She loves writing blogs and promoting websites related to SEO, education, fashion, travel, health and technology sectors.


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