Direct sales companies sell their products to clients without a traditional retail shop. Such companies often use independent contractors to sell products to their clients. We know these contractors as “sales reps” or “consultants”. Consultants sell the products through various methods. These methods include in-home demonstrations, social media, or one-on-one selling. Some well-known direct sales companies include Avon, Mary Kay, and Tupperware.
In a direct sales business, the consultant earns a commission on the products they sell. They may also earn bonuses and incentives based on their sales volume. Direct sales companies usually offer training and support to their sales reps. Some also offer the opportunity to build their own team of sales reps.
A central benefit of direct sales is its approach to client relationships. Selling direct to clients creates the opportunity for better feedback. In turn this feedback improves products and service.
Selling directly to the client removes the retailer from the distribution chain. Other middlemen like warehouses may also be removed which results in financial (and other) benefits to various parties.
Traditional Distribution Model
Direct Sales Distribution Model
