Direct selling is a successful business model over the past years. Even though it has been negatively scrutinized for comparing it with other schemes, the industry was able to generate a retail sales of $167.7 billion globally according to the WFDSA report. Lets discuss different types of direct selling.
Single-level marketing (SLM): SLM as the name implies the one-on-one marketing where the seller earns directly. In this type, there is no recruitment of teams or commission overrides from other sellers. This type of marketing is apt for individuals who wants to build relationships.
Multi-level marketing (MLM): Multi-level marketing focuses on building network through independent distributors. Here the distributors earn a commission of their personal sales they made and a percentage of commission for their downlines sales.
Party plan model: As the name suggests, parties are conducted on home or any other places for introducing products, brands, their benefits and selling them to the party guests. This model creates a relaxed and social ambience which encourages interaction and impulse buying.
