Direct selling is a business model in which independent sellers buy products from a parent company and sell them directly to customers in person, away from a conventional retail store, often in a customer's home or workplace through demonstrations or party-plan events. It takes two main structures: single-level marketing, where sellers earn only from their own sales, and multi-level marketing, where sellers also earn commissions on sales made by people they recruit. The U.S. Federal Trade Commission describes it as person-to-person selling outside a retail establishment, distinguishing it from both mass direct marketing and unsolicited door-to-door sales by its reliance on personal demonstration and relationship.
Facts
Core MechanismIn direct selling, independent sellers buy products from a parent company and sell them straight to individual customers, typically face to face or through personal networks, rather than through a retail store. 1 Cross-Tradition Connections
Associated With
Amway built its business on direct selling, distributing products through an independent salesforce rather than retail stores.
Direct selling takes two basic structures: single-level marketing, where sellers earn only from their own sales, and multi-level marketing, where sellers also earn commissions on recruits' sales.
Sources
1. Wikipedia, Direct Selling
WikipediaLead sectionQuote, Lead section
Direct selling is a business model that involves a party of people buying products from a parent organization and selling them directly to customers.
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