Direct selling is a business model that involves a party of people
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).
According to the US
Federal Trade Commission
The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) United States antitrust law, antitrust law and the promotion of consumer protection. It ...
: "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".
[Michael A. Belch George E. Belch ''Advertising and Promotion: An Integrated Marketing Communications Perspective'', 7/e., McGraw-Hill/Irwin, 2006]
See also
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Account-based marketing
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Direct marketing
Direct marketing is a form of communicating an offer, where organizations communicate directly to a Target market, pre-selected customer and supply a method for a direct response. Among practitioners, it is also known as ''direct response ...
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Guanxi
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Lead generation
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Lead management
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Personal selling
Personal selling occurs when a sales representative meets with a potential client for the purpose of transacting a Sales, sale. Many sales representatives rely on a sequential sales process that typically includes nine steps. Some sales represen ...
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Relationship marketing
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Social selling
Social selling is the process of developing relationships as part of the sales process. Today this often takes place via social networks such as LinkedIn, Twitter, Facebook, and Pinterest, but can take place either online or offline. Examples of ...
References
External links
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