Direct Selling

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An additional element of the direct-marketing program is direct selling, the direct, personal presentation, demonstration, and sales of products and services to consumers in their homes. Avon, Cutco, Mary Kay Inc., and Tupperware are some of the best-known direct-selling companies in the United States and are now extending these programs overseas. Close to 11 million people engage in direct selling throughout the world; 99 percent of them are independent contractors (not employees of the firm they represent). These 11 million generate approximately $25.57 billion in sales.

The three forms of direct selling are
1. Repetitive person-to-person selling. The salesperson visits the buyer’s home, job site, or other location to sell frequently purchased products or services (for example, Amway).
2. Nonrepetitive person-to-person selling. The salesperson visits the buyer’s home, job site, or other location to sell infrequently purchased products or services (for example, Encyclopaedia Britannica).
3. Party plans. The salesperson offers products or services to groups of people through home or office parties and demonstrations (for example, Tupperware and PartyLite Gifts).

While a number of products and services are sold through direct selling, home and family care products (33.7 percent) and personal care products (26.4 percent) are the most popular. The “typical” direct-selling representative is female (73 percent), married (76 percent), and between 35 and 44 years of age. For most of the representatives, direct selling is not a full-time job but an opportunity to earn additional income and a way to get the product at a discount for themselves. Over half of those employed in this industry spend less than 10 hours a week selling, and 81.6 percent spend less than 30 hours a week.



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