Direct Selling is the sale of a consumer product or service, person-to-person, away from a fixed retail location. These products and services are marketed to customers by independent salespeople. Products are sold primarily through in-home product demonstrations, parties and one-on-one selling. It’s driven mainly by the power of word-of-mouth advertising, which has proved to be the most effective over the years.
An important component of the Direct Selling industry is multilevel marketing. It is also referred to as network marketing, structure marketing or multilevel direct selling, and has proven over many years to be a highly successful and effective method of compensating direct sellers for the marketing and distribution of products and services directly to consumers. Direct selling should not be confused with terms such as direct marketing.
Direct selling refers to a distribution method, whereas multilevel marketing refers more specifically to a type of compensation plan found in direct selling. A direct selling company that offers a multilevel compensation plan pays its representatives/distributors based not only on one's own product sales, but on the product sales of one's "downline" (the people a representative/distributor has brought into the business, and, in turn, the people they have brought into the business).
A key difference which iwould like to tell you is that...In Direct sales - The product or services are sold to the customers but NO RELATIONSHIP is made between the seller and customer. Eg- Credit card , encylcopadia, etc. some one get your reference , knocks you door, sells of the products to you...and thats it.
But in MLM..the person who sells the product or services to u remains responsible and its a RELATIONSHIP made in a journey of success together.
Direct Selling is the sale of the products direct to consumer by the sales people away from shop or Stores, without the commitment of Repeat order. The compansation is directly depends on sales done by individual.
MLM is a specific type of Direct Selling here Products are selled to consumer by the company refered by other consumer. The compansation is done by A Structured Compansation Plan. It refers to not only by the sale of personally refered consumer but the sale on indirect refereals also.
Direct Selling is the big brother of MLM or Network Marketing, because in Network Marketing we first introduce and promote product or service and that is the first thing to do. Now, MLM or Network Marketing is how we are compensated in for our effort to promote our product or service, and specifically MLM is more related to the compensation while Network Marketing is concerned with the activity of marketing such product or service through our Network of contacts and their Network of contacts and so on.
yes of course.
The direct selling means that you contact the people ad sell them. If you stop selling, you stop your income.
On the other hand, the MLM means that the person who you spoke with comes under your network. If he sold or brought other people to his network, you will get a benefit even if you didn't sell.
Hope you found the answer you are looking for,
hope to keep in touch my brother.
Eng. Medhat Hallab
gm of HTCI
A multi level marketing offering what's your worth depending on your effort invested and your intention of doing it. This is a great tool of spreading the good news or the quality of the product while giving away good marketing plan or incentives while following the vision and mission of the founder or the company.