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

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. It first began with Yankee peddlers selling their goods to the colonies. When new business forms developed, peddling declined, and retail outlets came into existence. However, manufacturers were not satisfied with this retail form of business, so they introduced direct sales into their sales force to promote their goods. The men involved in direct sales were very organized, and they believed they could compete with the retail market, as retail establishments were incapable of providing adequate services and also could not provide good quality. Direct selling took over the retail market on the basis of their product advantages, convenience to the customer, and because they had specialized knowledge of their distributors. Many existing direct sales organizations, including the giant Avon Products, trace their origins from the late nineteenth century. Direct selling benefits individuals who desire an opportunity to earn an income and also build their own business, and it benefits customers who seek an alternative to regular shopping methods. It also offers an alternative mode of earning to those who want to increase their household income, or to those whose circumstances don't allow them to have a regular part time or full time job. Direct selling companies market their products through the person-to-person method, away from retail locations, through a network of independent sales people. Some common types of direct selling methods are telemarketing, direct mail, and direct response.

Telemarketing - This is one of the chief direct sales tactics prevalent today. There are different methods used to get your sales flowing and also make customers happy to take your calls. You should be very pleasant and stay on the point while making your sales pitch. Direct Mail - This is marketing conducted exclusively through mail. Direct mail may vary in format, but usually conforms to standard mailing requirements. A direct mail package includes a letter, brochure or even both.

Direct Response - This is an advertising technique that urges consumers to respond in a certain manner, usually to buy a product, and also provides them the means to do so. A business reply card is a direct response tool.

Direct selling companies include two types: Single level marketing (SLM) or Multilevel marketing (MLM).

Single Level Marketing - Rewards the sellers for their personal sales activity. They cannot sponsor any other distributorship or sales personnel. Income comes only in the form of commission or bonus. Multi Level Marketing - In this strategy, the seller recruits other distributors or sales people, and also receives commissions and bonuses on the sales they make. Downliners are necessary to increase the sales force, and thus generate a huge number of sales.

Direct selling is an art - you have to master it with a lot of dedication. If you want to be successful in this art, you must be humble, sincere, outgoing, persistent and honest, as these are the keys of a successful salesperson. A good sales person should not be afraid to talk to anyone to get him or her interested in the product. No one is born a top selling agent or consultant. To be a success in sales, you must learn not only the basic techniques, but also the way these should be applied. It takes consistent effort, vision and also focus. As they say, when you love what you do you will never lose interest; this applies to direct sales. You must believe in what you are selling and be passionate about it, so that your customers feel your excitement and are in turn enthused. By truly caring about your consumer's best interests, you will be able to succeed in direct sales, and build a group of loyal, lifetime clients.

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. Direct selling offers flexible work schedules. Direct selling is a good way to earn extra income. Direct selling is a good way to own a business. Earnings are in proportion to efforts.

Anyone can do it. There are no required levels of education, experience, financial resources or physical condition. People of all ages and from all backgrounds have succeeded in direct selling. Direct sellers are independent contractors. You're your own boss, which means you can:

Work part-time or full-time - you choose when and how much you want to work. Set your own goals and determine yourself how to reach them. Earn in proportion to your own efforts. The level of success you can achieve is limited only by your willingness to work hard. Own a business of your own with very little or no capital investment.

Receive training and support from an established company.

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. Each new participant pays for the chance to advance to the top and profit from payments of others who might join later. For example, to join, you might have to pay anywhere from a small investment to thousands of dollars. In this example, $1,000 buys a position in one of the boxes on the bottom level. $500 of your money goes to the person in the box directly above you, and the other $500 goes to the person at the top of the pyramid, the promoter. If all the boxes on the chart fill up with participants, the promoter will collect $16,000, and you and the others on the bottom level will each be $1,000 poorer. When the promoter has been paid off, his box is removed and the second level becomes the top or payoff level. Only then do the two people on the second level begin to profit. To pay off these two, 32 empty boxes are added at the bottom, and the search for new participants continues. Each time a level rises to the top, a new level must be added to the bottom, each one twice as large as the one before. If enough new participants join, you and the other 15 players in your level may make it to the top. However, in order for you to collect your payoffs, 512 people would have to be recruited, half of them losing $1,000 each. Of course, the pyramid may collapse long before you reach the top. In order for everyone in a pyramid scheme to profit, there would have to be a never-ending supply of new participants. In reality, however, the supply of participants is limited, 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, self-regulatory body for the direct selling industry in India. 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.

IDSA strives to create and further an environment conducive to the growth of direct selling industry in India, partnering industry and government alike through advisory and consultative activities. IDSA catalyses change by working closely with government on policy issues, enhancing efficiency and ushering in desired credibility , clarity & confidence in Direct Selling.

Who can become members of IDSA?

If a company is into trading of products and does not manufacture/produce the products itself, then the company should either own the trade name/mark or have exclusive rights to sell and/or distribute those products. If the company manufactures or produces the services by itself, then the product or service being offered is completely owned or controlled by the company (including manufacturing). 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 sign to abide by the Model Code of Ethics. The company submits all fees as required by the Association. The company must submit all required documents for scrutiny along with the completed application form.

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. 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, particularly among women. Amway, the top global direct selling brand, and Tupperware are the most visible face of direct selling in India. The report shows that in 2008-09 and 2009-10, when the Indian economy was battling a growth slowdown, the number of direct sellers grew to 3 million from 1.8 million, or a growth rate of nearly 67 per cent. Of these, nearly 70 per cent were women. At the same time, the sector grew at a rate of 17 per cent in 2008-09 and at 24 per cent in 2009-10.