If you plan to begin your journey as a direct seller, then knowing the area you plan to dive right into is a very important step. That means knowing what direct selling is and how it functions is a very important step in your journey to success. So why don’t we go ahead and gain a basic understanding of it? This article will give you a proper insight into the ways in which direct selling works. Moreover, it will make you understand how it differs from other marketing methods like MLM. So, let’s discuss this further.
What is Direct Selling?
Before moving any further, let’s jump right into the basics. So, first and foremost, let’s define or find out what direct selling is. This will help you to form a basic understanding of direct selling. Well, without clearing that out, the rest of the article may look very bizarre to you. So, let’s do this. In simple terms, one can define it as a way to make money.
Yes, just like any other form of marketing, direct selling is a method of sales and marketing adopted by a company to sell its product and services and thereby make a profit. But, this doesn’t make direct selling companies like QNET evil, right? They are making sales just like all the other companies we are familiar with. The only difference is that they perform their sales slightly differently.
The Marketing method of Direct selling
Its marketing method is the major difference between any other company and a direct-selling company. Simply put, direct sellers are not salespeople but independent contractors who sell goods or services through their businesses. The direct seller’s products or services might be makeup, health club memberships, products or anything else you can think of. The way they market their products and conduct their sales is what makes them so unique. Unlike traditional businesses that advertise their products using traditional media and set up a physical store to sell products or services, the direct selling method opts for a much more transparent method.
In direct selling, the independent contractors affiliated with a company visit or contact the potential customers. They don’t rely on intermediaries and deliver the product directly to the customer. Through this marketing approach, the company avoids the unnecessary business expense that would otherwise be allotted to the mediators. As a result, they can provide their products at a much more honest price, where the customers only have to pay for the product’s actual value. So, this marketing approach helps not only the company but also the customers.
The difference between Direct selling and MLM
As we saw earlier, direct selling is a sales model where the company sells its products or services directly to customers through independent sales representatives or distributors. The sales representatives are not typically required to recruit new sales representatives, and they earn a commission on the products or services they sell. The commission is usually based on the total sales volume they generate.
But when it comes to MLM, it is a sales model where the company’s independent sales representatives sell the products or services directly to customers and recruit new sales representatives into the organization. These recruits become part of the sales representative’s downline, and the sales representative earns a commission on the sales generated by their downline. MLM companies often have a complex compensation structure that rewards sales representatives not only for their sales but also for the sales generated by their downline.
That means companies like QNET, one of India’s acclaimed direct selling companies, generate their profit solely through sales, just like the other companies. The IRs of QNET or any other such company doesn’t get any profit by recruiting new people to the company. To make it simpler, think like this.
The only difference between a direct selling company and any other company is their marketing and products. While generic companies make generic products, the product sold by direct selling companies will have one or another kind of specialty to them. This special quality that the other generic brands cannot deliver will be the selling point of these products.
In conclusion
So, the next time someone gets confused between MLM and direct selling, be prepared to clear their doubts and redirect them towards the truth. Understanding concepts that are unlike normal will be difficult. But if you plan to enter this field as a direct seller, you should be knowledgeable about your own profession. In order to learn more about direct selling, visit QNET India now.