Direct Selling Concept
Direct selling can be defined as a distribution method of consumption goods through personal face-to-face contacts between the seller and the buyer outside of the commercial fixed places. Usually, in this sales method exits a strong bet in the customer service, including personalized explanations and demonstrations of the products.
On the other hand a direct selling company is the one which simultaneously produces and sells its final product to the consumer in a personalized way in their home or in another place outside of the retail fixed places. This way, the direct selling company can simultaneously assume the roles of producer, wholesaler and retailer.
Direct selling has its origin in the street vending. During thousands of years the streets vendors travelled all over transporting the most varied products to sell to the consumers. Those travelers were mainly itinerant men and independent from each other. However, in the last 100 years direct selling became different – currently direct salesman perform mainly in their neighborhood, are mainly women and many times network connected to companies with well organized structures.
It can be identified two or three sales methods, within the direct selling, namely:
- Doorstep selling: also known as door-to-door selling consists on the direct selling of products and services performed by salesmen who visit the clients in their place of residence, presenting their products and realizing the sale.
- Workplace selling – consist in the performance of exhibitions and/or demonstrations of products and/or services in a company (usually medium or big dimension), authorized by the company’s responsible, and aiming to provide its employees a way to shop without leaving their workplace.
- Sales Meetings, also known by “Party Plan” or “Home Parties Sales” – consist in sales performed in meetings in the homes of potential clients, who usually invite their friends and family to assist to the meeting in which is made the products presentation.