Direct selling
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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).[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]
See also
- Account-based marketing
- Direct marketing
- Guanxi
- Lead generation
- Lead management
- Personal selling
- Relationship marketing
- Social selling
References
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- ↑ 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. Script error: No such module "CS1 identifiers"..
- ↑ Michael A. Belch George E. Belch Advertising and Promotion: An Integrated Marketing Communications Perspective, 7/e., McGraw-Hill/Irwin, 2006
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