by Domitila L. Mapa,Ph.D
What is Direct Selling? What makes it different to that of a networker? Who is more successful, a Direct Seller or a Networker?
Many people opted to be a direct seller as their additional work to augment their family income .But many times their products are not on cash basis.There customers are fond of two gives or 15/30 mode which means they will pay on the 15th day or 30th day of the month for that is the day where they receive their salaries.It is seldom a consignment method of payment .
But some younger ones follow the networking approach, they are good and smart in it,
They have an unlimited access of income , it doesn't follow how high your education is, but how smart you are in dealing with people .Networking is about making connections and building enduring, mutually beneficial relationships.Creating a group of acquaintances and associates and keeping it active through regular communication for mutual benefit. Networking is based on the question "How can I help?" and not with "What can I get?" Many are afraid to venture in net working, but they want to sell products.Though there are companies that offer direct selling with networking but still some are lukewarm and think that its is a scam .
To know more deeper, let's differentiate Direct Selling to that of Networking .In the end, it's you who will decide which path of success will you follow.
Direct Selling is an assertive, face-to-face selling approach where the independent salesperson commonly presents his product or service to a prospect at his work place, or office. it is a house to house sales, Companies tend to market higher-priced, one-time purchase items, such as Avon and Cook wares filters.Receiving customer feedback in person holds an advantage in adapting to market changes quickly.Residual income is money earned on successive sales.
The majority of available profit is paid to the salesperson. Once the sale is complete, the direct salesperson moves on to the next customer to generate another potential sale. Although the direct salesperson earns a higher percentage than management, the potential for earning residual income is severely limited.Large businesses utilize widespread, intensive distribution methods to market products nationwide. Direct salespeople are often bound by sale territories, time and physical availability. The most successful direct salespeople only earn money on their personal sales. Growing a distribution force of other salespeople is normally reserved for sales managers
Multilevel Marketing is not actually marketing, but an additional technique to systematize and compensate direct salespeople. It is better depicted as a direct selling compensation plan where salespeople receive payment in a variety of ways. Multilevel marketing representatives also approach customers, but usually begin with a list of friends, relatives and other amiable acquaintances. Cosmetics, vitamins and other regularly restocked products are compatible with the multilevel marketing model. As consumers reorder consumable goods, this creates residual income and marks a distinction from direct sales. multi-level marketers earn much lower commissions on initial retail sales, but produce residual income from their customers' reorders. The greatest part of this commission is funneled to upper management on the multilevel marketing distribution line. The distributors are customers who also recruit more distributors. This can create levels of long-term residual income with management bonuses. According to the WFDSA, multilevel marketing offers independent business opportunities through building and training a distribution team to duplicate the selling process.
Therefore ,the difference between direct sales and multilevel marketing methods is
primarily in compensation arrangements.Both direct sales and multilevel marketing are avenues for businesses to retail their products straight to the consumer. Each selling method operates at the end of a chain of distribution that culminates with the buyer receiving the product or service. Personal selling is important in building customer relationships and communication.
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