Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location.

Peddling is the oldest form of direct selling. Modern direct selling includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales. A textbook definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs." Industry representative, the World Federation of Direct Selling Associations (WFDSA), reports that its 59 regional member associations accounted for more than US$114 Billion in retail sales in 2007, through the activities of more than 62 million independent sales representatives.[5] The United States Direct Selling Association (DSA) reported that in 2000, 55% of adult Americans had at some time purchased goods or services from a direct selling representative and 20% reported that they were currently(6%) or had been in the past(14%) a direct selling representative. According to the WFDSA, consumers benefit from direct selling because of the convenience and service it provides, including personal demonstration and explanation of products, home delivery, and generous satisfaction guarantees. In contrast to franchising, the cost for an individual to start an independent direct selling business is typically very low with little or no required inventory or other cash commitments to begin. Most direct selling associations, including the Bundesverband Direktvertrieb Deutschland, the direct selling association of Germany, and the WFDSA and DSA require their members to abide by a code of conduct towards a fair partnership both with customers and salesmen. Most national direct selling associations are represented in the World Federation of Direct Selling Associations (WFDSA). Direct selling is distinct from direct marketing because it is about individual sales agents reaching and dealing directly with clients. Direct marketing is about business organizations seeking a relationship with their customers without going through an agent/consultant or retail outlet. Direct selling often, but not always, uses multi-level marketing (salesperson is paid for selling and for sales made by people he recruits or sponsors) rather than single-level marketing (salesperson is paid only for the sales he makes himself).

Largest direct selling companies
According to Direct Selling News, the largest direct selling companies, by revenue in 2010,[8] were Company Name Avon Products Amway Natura Vorwerk Herbalife Year Founded 1886 1959 1969 1883 1980

Direct mail may vary in format. and direct response. and they believed they could compete with the retail market.Mary Kay Tupperware Oriflame Forever Living Products Nu Skin Enterprises 1963 1946 1967 1978 1984 Direct Selling Methods: Single Level & Multilevel Marketing Direct Sales went through important changes in the United States. Many existing direct sales organizations. and retail outlets came into existence. brochure or even both. Some common types of direct selling methods are telemarketing. . and it benefits customers who seek an alternative to regular shopping methods.This is one of the chief direct sales tactics prevalent today. • • Telemarketing . or to those whose circumstances don't allow them to have a regular part time or full time job. manufacturers were not satisfied with this retail form of business. and because they had specialized knowledge of their distributors. convenience to the customer. Direct Mail . There are different methods used to get your sales flowing and also make customers happy to take your calls. including the giant Avon Products. Direct selling companies market their products through the person-to-person method. so they introduced direct sales into their sales force to promote their goods. but usually conforms to standard mailing requirements. peddling declined. Direct selling benefits individuals who desire an opportunity to earn an income and also build their own business. away from retail locations.This is marketing conducted exclusively through mail. as retail establishments were incapable of providing adequate services and also could not provide good quality. through a network of independent sales people. When new business forms developed. It first began with Yankee peddlers selling their goods to the colonies. However. Direct selling took over the retail market on the basis of their product advantages. trace their origins from the late nineteenth century. The men involved in direct sales were very organized. direct mail. It also offers an alternative mode of earning to those who want to increase their household income. You should be very pleasant and stay on the point while making your sales pitch. A direct mail package includes a letter.

persistent and honest. Earnings are in proportion to efforts. Direct selling companies include two types: Single level marketing (SLM) or Multilevel marketing (MLM). No one is born a top selling agent or consultant. and thus generate a huge number of sales. so that your customers feel your excitement and are in turn enthused. • • Single Level Marketing . Benefits of Direct Selling Research shows some of the most popular reasons people choose direct selling are: • • • • • Direct selling is a good way to meet and socialize with people.In this strategy. They cannot sponsor any other distributorship or sales personnel. but also the way these should be applied. Multi Level Marketing . Direct selling is a good way to earn extra income. sincere. when you love what you do you will never lose interest. and also provides them the means to do so.• Direct Response . outgoing. Direct sellers are independent contractors. A business reply card is a direct response tool. the seller recruits other distributors or sales people. usually to buy a product. you will be able to succeed in direct sales. There are no required levels of education. which means you can: . You're your own boss. Direct selling is an art . To be a success in sales. Downliners are necessary to increase the sales force. It takes consistent effort.This is an advertising technique that urges consumers to respond in a certain manner. You must believe in what you are selling and be passionate about it. you must learn not only the basic techniques. If you want to be successful in this art. this applies to direct sales. experience. vision and also focus. you must be humble.you have to master it with a lot of dedication. Income comes only in the form of commission or bonus. lifetime clients. By truly caring about your consumer's best interests. Direct selling is a good way to own a business.Rewards the sellers for their personal sales activity. People of all ages and from all backgrounds have succeeded in direct selling. A good sales person should not be afraid to talk to anyone to get him or her interested in the product. and build a group of loyal. Direct selling offers flexible work schedules. financial resources or physical condition. As they say. Anyone can do it. and also receives commissions and bonuses on the sales they make. as these are the keys of a successful salesperson.

the promoter will collect $16. you and the other 15 players in your level may make it to the top. Each new participant pays for the chance to advance to the top and profit from payments of others who might join later. and you and the others on the bottom level will each be $1. the supply of participants is limited. a new level must be added to the bottom. If enough new participants join. Set your own goals and determine yourself how to reach them. half of them losing $1. you might have to pay anywhere from a small investment to thousands of dollars. $500 of your money goes to the person in the box directly above you. If all the boxes on the chart fill up with participants. However. the pyramid may collapse long before you reach the top. there would have to be a never-ending supply of new participants. 512 people would have to be recruited. his box is removed and the second level becomes the top or payoff level. In reality. each one twice as large as the one before. Earn in proportion to your own efforts. When the promoter has been paid off.you choose when and how much you want to work.• • • • Work part-time or full-time . In this example. the promoter. 32 empty boxes are added at the bottom. . in order for you to collect your payoffs.000 each. to join.000. Only then do the two people on the second level begin to profit. Own a business of your own with very little or no capital investment. Receive training and support from an established company. The level of success you can achieve is limited only by your willingness to work hard. For example. In order for everyone in a pyramid scheme to profit. What is a Pyramid Scheme? Pyramid schemes are illegal scams in which large numbers of people at the bottom of the pyramid pay money to a few people at the top. however. and the search for new participants continues.000 buys a position in one of the boxes on the bottom level. To pay off these two.000 poorer. and each new level of participants has less chance of recruiting others and a greater chance of losing money. What Is IDSA? The Indian Direct Selling Association IDSA is an autonomous. and the other $500 goes to the person at the top of the pyramid. self-regulatory body for the direct selling industry in India. $1. Of course. The Association acts as an interface between the industry and policy-making bodies of the Government facilitating the cause of Direct Selling Industry in India. Each time a level rises to the top.

The company must sign to abide by the Model Code of Ethics. the number of direct sellers grew to 3 million from 1. then the company should either own the trade name/mark or have exclusive rights to sell and/or distribute those products. Amway. IDSA catalyses change by working closely with government on policy issues. clarity & confidence in Direct Selling. when the Indian economy was battling a growth slowdown. or a growth rate of nearly 67 per cent. the top global direct selling brand. The report shows that in 2008-09 and 2009-10. the sector grew at a rate of 17 per cent in 2008-09 and at 24 per cent in 2009-10. Of these. . If the company manufactures or produces the services by itself. particularly among women. nearly 70 per cent were women. then the product or service being offered is completely owned or controlled by the company (including manufacturing). The company submits all fees as required by the Association. The methods of operation are fair and comply with the Model Code of Ethics and all relevant Indian legislation. The company and its Promoters should be of sound financial standing. The company must submit all required documents for scrutiny along with the completed application form. Who can become members of IDSA? • • If a company is into trading of products and does not manufacture/produce the products itself. At the same time. The “Socio-Economic Impact of Direct Selling: Need for Policy Stimulus” published by Icrier and the Indian Direct Selling Association has used data from a national survey to underline that direct selling — the method where companies sell products to consumers bypassing supermarkets or grocery shops — has reduced unemployment.IDSA strives to create and further an environment conducive to the growth of direct selling industry in India.8 million. partnering industry and government alike through advisory and consultative activities. and Tupperware are the most visible face of direct selling in India. • • • • • A report on the direct selling business released on Friday by a prominent think tank is expected to buttress the growing support for allowing foreign investment in all types of retail business. enhancing efficiency and ushering in desired credibility .