Direct selling is a business model that involves a party buying products from a parent organisation 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).
According to the FTC: "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."
Modern direct selling includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales. 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."
Avon, Mary Kate, Amway, and Nu Skin Enterprises are examples of direct-selling companies.
- ^ Brown, Carolyn M. (19 July 2010). "8 Things You Should Know Before Becoming a Direct Seller". Inc. Retrieved 29 July 2018.
- ^ "Business Guidance Concerning Multi-Level Marketing". FTC.gove. Federal Trade Commission. 4 January 2018. Retrieved 8 January 2018.
- ^ 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.
- ^ Michael A. Belch George E. Belch Advertising and Promotion: An Integrated Marketing Communications Perspective, 7/e., McGraw-Hill/Irwin, 2006
- ^ 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.
- Media related to Direct selling at Wikimedia Commons