Direct selling is a hauntingly vibrant and effective expansion of distribution channels for products and services worldwide. In fact, if you look at the top toiletry businesses according to profit, two of those who belong to the top ten expanded through direct selling. Also, in many developing nations, direct selling is a burden-free method of selling AND buying for products and services. That is why direct sales companies succeed even in poor nations.
HOW IT STARTED: The WFDSA(World Federation of Direct Selling Associations) was founded in 1978. It was a non-governmental organization which represents the direct selling industry to the world. When WFDSA was created, there was a clear demarcation of direct sales companies which are deemed “legitimate” and those which are not. Moreover, the WFDSA also facilitated the making of a World Codes of Conduct for Direct Selling as ethical conduct in direct selling is often bypassed by small companies. All direct sales companies should follow these codes as a condition of membership in their respective national DSA.
An example includes ensuring that the companies do not mislead the customer through false promises in their brochures and banning any form of pyramiding operations. The operations of the direct sales companies are routinely monitored by an independent code administrator. Currently, there are over 58 national DSAs represented in its membership, and in 2007, the estimated retail sales by its members reached more than US $111Billion globally. This sales figure came from more than 67 million independent sales representatives worldwide. Top lucrative direct sales companies are those which expand more rapidly than an internet virus.
WHY DIRECT SELLING WORKS: Direct selling, in its truest sense, is a form of selling that doesn't include a “middle man” or any establishment intervention (mall and shop distributions). It gives the sales man a “direct” chance to “directly” present his/her company's products to the prospect buyers. Direct sales companies are usually those which sell high-involvement products like insurance, educational plans, and top-of-the-line cosmetics. They don't just sell products but value.
Direct selling is beneficial to individuals who want to start a business of their own while having a very small capital. Most of the direct sales companies just require a small amount of purchase from their company as a “starting kit” for you to acquire membership and legitimacy in selling their products. In fact, some of these companies don't even require purchase! They just need you to fill out some application forms and pay a very small amount for an ID. And there you go. You can market their products and get as much as 50% profit from them. Also, direct selling is an alternative to consumers who like to avail of other shopping alternative centers (admit it, department stores get boring after some years of living in the same area and going to the same malls).
Direct selling is coupled with the feeling of exclusivity to the consumer, as the products sold are presented to him/her personally. Usually, this kind of selling also includes a very light paying scheme (e.g. one-month-to-pay). Moreover, it offers an alternative to conventional employment to those who want to have flexible time and a flexible earning opportunity. When you are starting in this business, it will be good for you if you are not that prone to 8-hour commitments such as a regular job. Full-time direct sales agents only become full-time once they become very successful with direct selling.
As you can see, it's very easy but it requires hard work. Profit turnover doesn't come over night, or over a fort night. What is important is that you are assertive, dynamic and flexible to the times. Moreover, the basics of personal management are highly advised when you are in this kind of industry. Direct sales companies do not help you first-hand anymore. They just facilitate your success but you trod through it yourself.
Best Direct Sales Companies
Direct sales companies have been with us for quite some time now. The way these have generally worked is that a direct sales associate would take their products to home based events where they would demonstrate them to attendees. So what are the most popular direct sales companies currently? This list will give you some direct sales companies to think about if you are interested in starting your own direct sales business.
1) Tupperware, first developed in 1945 had by 1946 moved to a direct sales model. This is the company who invented the party based model of direct sales as we know it. Tupperware now has nearly 2 million associates in nearly 100 countries worldwide.
2) Avon was once the California Perfume Company, back in 1886 when it began; by 1928, however, they had adopted the more familiar name of Avon. This is one of the most well known direct sales companies on Earth now, with almost 5 million representatives in 143 countries worldwide.
3) In 1963, Mary Kay Ash began Mary Kay Inc. in the interests of giving women an opportunity to improve their lives through running their own business. There are now around 1.6 representatives of the company.
4) Discovery Toys, Inc. has been in the educational toys business since 1978. This company only does business in the U.S. and Canada and uses the party model of direct sales.
5) Home Interiors & Gifts, now celebrating its 50th anniversary in business, boasts more than 100,000 associates employing both parties and face-to-face marketing methods to sell their products,
6) Pampered Chef has been around since 1980; this is one of the newest direct sales companies. They have over 60,000 Pampered Chef consultants worldwide and use their own variation on the party plan (the Kitchen Show).
7) Also started in 1980, Arbonne International sells their skin care products via person-to-person marketing instead of the party plan method.
8) Peter Usborne's Usborne Books has been around since 1973, selling high quality books for children. They employ person-to-person marketing as well as parties to market their books.
9) Creative Memories, a scrapbooking supply company, has been using the party plan method of marketing their products since 1987 and have tens of thousands of consultants all over the world.
10) Meleleuca, Inc. has been in the business of green products since 1985 and markets their tea tree oil based skin care, personal care and home products worldwide via person-to-person marketing. They are the fastest growing direct sales company in the U.S.
These direct sales companies are just ten out of the multitude of such companies out there which you can become involved with. Before signing on with any company, do some research to determine what their compensation model is, if online marketing is permissible and whether the company's goals fit in with your own.
Doing this sort of evaluation on each company you are considering will help you to be better informed and thus make a better decision about which direct sales company is right for you.
Both Terez Dunn & Robert Williams are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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