The Similarities of Direct Selling and Network Marketing
Direct selling is basically offering products on a one-on-one, person-to-person basis, instead of the normal shopping experience at a retail locations. Take for example Mary Kay, Pampered Chef, or my company, Scentsy, we normally offer our products and services using the party-plan. On the other hand, Avon products are normally sold one-on-one by a local Avon representative. If you have experiences either of these buying options, you have purchased products from a direct selling company.
Direct selling should not be confused with other types of sales that do not occur in a fixed retail location; such as, magazine sales, home repair services, telemarketing, wholesaling, real estate sales, or “work-from-home” businesses such as envelope stuffing, transcription, or product assembly.
Direct sellers (or as Scentsy calls them, “Consultants”) are independent contractors, and not employees of their respective companies. Approximately 12% of all direct sales are made online or by phone,with the remainder of their sales occurring at in-home shopping parties. These shopping parties allow customers to try and choose the company's products in a relaxed, fun, social environment. It is interesting to note that the party plan method of direct selling didn’t even begin until the 1940s.
Just about any product or service can be purchased through these direct selling parties all over the world. When you think of direct sales parties, most people think of cosmetics, wellness products and home décor products. However, there are countless other products available, such as kitchen and food products, jewelry, clothing, organic gardening supplies, spa products, scrapbooking supplies, rubber stamps, and Scentsy products, which are decorative ceramic scented wax warmers. But, there are many, many more such direct selling companies.
The simplest explanation of network marketing is that it is a method of marketing products by independent representatives to reach the maximum number of potential customers that a company otherwise would normally not reach through online or offline marketing methods. Company's choose to market through network marketers because companies have discovered that traditional marketing methods resulted in millions of dollars spent each year to market their products and services. These companies began to realize that word-of-mouth marketing is a far more powerful and effective method of marketing. This is especially true when the the consumers are offered product and services from individuals whom they know and trust!
Network marketing associates of network marketing companies recruit individuals, often referred to as their sales force, which is similar to what other companies and franchises,have done for years. An example would be the insurance industry, which you probably have seen in ads TV regarding an “Independent Insurance Agent or Associate” You may also have seen in your neighborhood that many of these small businesses use signs and other advertisements designed to draw attention to them. However, there is a distinct difference between network marketers and these type of businesses. Most of these individuals are assigned an exclusive territory and cannot market outside of their assigned territory. However, network marketers, in most cases, can market just about anywhere their company is established.
The Bottom Line -
If you look at these two home-based business types, they are very similar. Both Direct Sales and Network Marketers offer a company's product and/or services one-on-one, either through party-plans or through various online venues. In some instances, either may use both of these techniques. Both types of product sales types benefit and compliment the companies, distributors and customers. Therefore, it is a win - win!
If you are interested in direct sales, I invite you to look at Scentsy's opportunity. While Scentsy has traditionally been the sale of wickless ceramic scented wax warmers and scented was, the company has committed to expand it's product line.
1) Last year, Scentsy introduced a new product line of solid perfumes, which was well received and expanded upon in the 2012 Spring/Summer catalog.
2) March 1, 2012, Scentsy launched its “Layers” line of personal and laundry care products infused with your favorite Scentsy fragrances. Custom-designed, Scentsy worked with the best suppliers in the industry to bring you personal care products you will absolutely love.
3) On May 1, 2012, Scentsy will introduce their new brand, Velata, which features a patent-pending, silicone dish on an electric warmer paired with the world’s finest quality Belgian chocolate in classic milk chocolate, white chocolate, dark chocolate, and caramel milk chocolate. Velata chocolate comes packaged in a microwavable, six-ounce pouch with a convenient pour spout.
4) On August 1, 2012, Scentsy will launch another new brand...stay tuned for the exciting product news!!!
Please contact me at: https://jenhasgoodscents.scentsy.us Or at: firstname.lastname@example.org