Companies are often confused to select which type of business model is apt for their business. There are two types of business models such as direct selling and personal selling. Each has their own characteristics and differences. Let's discuss some of them. Direct selling is the distribution of products and services through independent distributors. They also give importance for building long lasting customer relationship through distributors and networks, but with less personal interaction. They have low-risk entry with minimal upfront costs and reduced need for large infrastructure.
Personal selling is a sales technique where products are distributed on face-to-face interaction which focuses on relationship building. They example of personal selling includes real estate agents, luxury goods sales, technology solutions providers. The personal selling requires consistent recruitment and training and can be investment intensive. The customer relationship is built Ideal for personalized interactions, fostering trust, and loyalty.
