Direct selling

Not to be confused with Direct marketing, Direct trade, or Door-to-door.
For Direct-to-consumer (DTC) e-commerce business model, see Direct-to-consumer.

Direct selling is a business model that involves a party buying products from a parent organization and selling them directly to customers. It can take the form of either single-level marketing (in which a direct seller makes money purely from sales) 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 earning a commission from their efforts).[1]

According to the US Federal Trade Commission: "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."[2]

Modern direct selling includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales.[3] 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."[4][5]

  1. ^ Brown, Carolyn M. (19 July 2010). "8 Things You Should Know Before Becoming a Direct Seller". Inc. Retrieved 29 July 2018.
  2. ^ "Business Guidance Concerning Multi-Level Marketing". FTC.gove. Federal Trade Commission. 4 January 2018. Retrieved 8 January 2018.
  3. ^ Merrilees, Bill; Miller, Dale (1999). "Direct Selling in the West and East: The Relative Roles of Product and Relationship (Guanxi) Drivers". Journal of Business Research 45 (3): 267–273. doi:10.1016/S0148-2963(97)00238-5.
  4. ^ Michael A. Belch George E. Belch Advertising and Promotion: An Integrated Marketing Communications Perspective, 7/e., McGraw-Hill/Irwin, 2006
  5. ^ Xardel, Dominique (1993). The Direct Selling Revolution. Understanding the Growth of the Amway Corporation. Blackwell Publishing. pp. 3–4. ISBN 978-0-631-19229-9.