What is Direct Selling? How Can It Be A Based Business?
Direct-selling means selling a consumer product or service a way from a fixed retail location and doing it in a face-to-face manner. According to the direct selling Association, in a recent given year 30 million people sold more than 28 billion worth of products through a direct selling opportunities. A direct selling business opportunity that can be turned into a home-based business comes in a huge variety of fields. Common examples are cleaning supplies, cookware, personal care products, cosmetics, jewelry, skin care products, wellness products, weight loss products, vitamins, leisure products, educational products, toys, games etc.
The companies that provide direct selling home-based business opportunities are well-known names that you must have heard about. It is also more than likely that you must have come face-to-face with another person who has taken on direct selling as a way to make some money working from home. Some of the well-known companies of offering direct selling opportunities are Nu Skin, discovery toys, Amway, the fuller brush company, Tupperware, Nikken, Primerica and many more.
The direct selling business opportunities can be further divided into two main groups. These groups are single level marketing and multilevel marketing.
Single level marketing — single level marketer sells products by buying them directly from the parent company and selling them directly to their customers.. This is how they are money by including a profit margin on the products that they sell. multilevel marketing
Multilevel marketeers make money both by selling products to consumers as well as by recruiting new direct sales into the direct selling business opportunity.
What a single level marketing?
Single marketing is the most simple form of a direct selling business opportunity. To a person involved with the direct selling business such as a single level marketing buys products from the parent organization and sells them directly to his customers. There is a profit margin added onto these products. Sometimes this profit margin is dictated by the parent company there is another location scout that seller is allowed to play his margin within a certain range. There are many who popular names for direct selling single level marketing businesses. These names are Avon, Electrolux, Tupperware, Kirby, etc.
What is multilevel marketing?
Multilevel marketing was started by Lee Martinger and William Castleberry in 1945 when they launched the California Vitamins to sell the vitamin supplement called Nutrilite. Multilevel marketing known as MLM in short form also known as network marketing or a person to person marketing has grown rapidly over the past few years to generate $22 billion in sales in United States alone and employs more than 10 million people.
With a multilevel marketing job, the direct seller or a salesperson has two ways of earning money.
As a distributor — as a distributor of a product, the salesperson working with the multilevel marketing business will buy the product from the parent company and sell it directly to the people at a profit margin.
As a Recruiter — the salesperson working for multilevel marketing business also earns money by recruiting other people in the business. These people form the ‘downline’ for the salesperson. Whenever people in the downline of a salesperson makes sales or recruit for the people in their downline, that same person or everybody up on the outline of the commissioners were. This process of recruiting other people is also called sponsoring and the people in the outline of a salesperson or cosponsors.
The most successful multilevel marketers make more money through the downlines — reducing the product for themselves. This is also a way of automating the home-based business where you no longer have to make since personally but get commissions from the sales that other people make in your downline. Because of this many multilevel marketers more focused most of their efforts on recruiting new distributors rather than to selling.
It should be noted that this is the business model resulted in the creation of lot of scams in the past to stop it is against the US law, the level marketing organization to recruit distributors and collect fees from them without also selling products. Such an arrangement is called a pyramid scheme and is illegal. It is set up specifically to make its creators which while leaving everyone else of the heart on the money. These scams can be spotted when there is no real product to sell and the emphasis is on recruiting other people in the U. and asking them to pay you to join the program has been the only way of earning money. When there is no good aqueduct involved for sale for something that has little or no intrinsic value such as a special report on how to make Money on the Internet, this may just be a pyramid scheme which is illegal and may result in legal complications for you if you take part in it.