Know the Benefits of Direct Selling in 2024

Direct sales are an age-old selling practice of approaching the customer or business directly to market and sell the products. This channel does not include the traditional distributors, stores, or franchises. The business approaches the customer directly to showcase and sell their products. Direct sales can be done for self-produced products or after buying products from a company.

The current trends predict that by 2025, the benefits of direct selling will touch the cap of about ₹1 lakh crore. Accelerating digital adoption and rural market expansion are two key factors that have aided this growth. Most direct selling sales take place at online stores, or at their homes or at a workspace or public place through demonstrations or direct explanations.

Direct selling benefits are adapted by many small businesses because it removes the requirement of a mediator between the seller and the consumers.

Direct selling is a popular method adopted by many cosmetic and wellness companies worldwide. This practice is also used by companies selling financial services, household goods, etc. It is a more personalized approach to letting businesses have direct relationships with customers. It is an attractive option if one is looking to expand their business and improve the sales revenues.

Benefits of Direct Selling

Let’s take a look at the benefits of direct selling and the personalized approach:

It helps the companies get effective feedback: Enabling personalized offerings and engaging with the target market in a more beneficial manner. Understanding customer needs also helps the sellers adjust or modify the products and build more customer loyalty.

Increased direct income: One of the most lucrative direct selling benefits is increased revenue. There are many factors contributing to this, including but not limited to:

Elimination of distributors and stores.
More motivation for the sellers as they often write their own paycheques.

Sellers put in more efforts to sell the products by being more objective towards their goals and setting dedicated targets. The profits are often used to supplement the income or develop new products, or maybe a vacation or as a full-time salary.

Planned flexibility: This might sound like an oxymoron, but one of the direct selling benefits includes being as flexible as you can. You can plan your own schedule and business hours at their own pace. Flexibility means putting the priorities first, and it comes as a boon for sellers who are working full-time jobs, or studying in college, or have to take care of the elderly or children. Sellers can fit the sales calls and visits into their schedules as per their pace and client’s availabilities. Another direct selling benefit is more control over the sales process and distribution channels. This means flexibility in pricing, promotion, and offers on the products.

Autonomy: The seller is their own boss, they can set their own goals, objectives, rules and even the standard of customer service. The seller can choose when they want to work, take some vacation time, or attend the family events they would have otherwise missed. A benefit of direct selling is that the seller can schedule in family time as and when needed without having to requisition with the boss.
Work from home: Most direct selling is done work from home, thus saving time and money to the business. There is very little commuting and need of specific workplace. The seller can do their chores and still look after their business.

Customer relationship and satisfaction: Direct selling helps the seller build stronger customer relationships and attract and retain more customers. Sellers have more personal interactions with the customers, as most direct sellers start by building friendships. There is a better insight to the needs of the consumers.

Freedom to use multiple business strategies: The seller has the advantage of using multiple selling techniques to close the sale. For example, they can use the feedback of their marketing campaigns to create alternatives, or combine their advertisements with the sell. This will help in increasing the revenues and retaining more consumer loyalties.

More price and cost control: Another benefit of direct selling is that the seller has more control over the pricing of the product. This is possible because there are no wholesalers, operational fees, staffing costs, etc. Sellers can match the competitor prices and ensure that their customers get the lowest and best prices for great products.

Helps develop business skills: Since the seller is the sole worker and the boss. they get to polish and learn many new skills such as customer service, marketing skills, leadership, patience, empathy, communication, time management, financial management, negotiation, organization, and interpersonal interactions.

Global expansion: Direct sales models are flexible and adaptable and thus can be implemented across different markets and regions. This gives the seller the opportunity to expand in the global markets and quickly grow the sales networks. Wider audience reach can be achieved without extra overhead costs.

Types of Direct Sales Models

There are different types of direct sales models that you can adapt to boost the sales and increase business revenue. The methods to build a relationship with a customer include:

Single level sales: Which include meeting individual clients and giving product demonstrations. For example, arranging fittings for clothing or product tests.

Door to door sales: which require the sellers to travel to the homes, workplaces, or other meeting places suggested by the potential clients. The sales can be mostly closed on spot.

Multi-level sales or networking marketing, or MLM: In this method the businesses establish a network of clients, distributors and representatives and create a hierarchical structure where everybody earns through direct sales and commissions.

Party plan sales: In which the sales are done in the parties or gatherings.

Online shopping: Which includes websites, email lists, harnessing online selling platforms to reach the customers, process, and ship orders worldwide.

Business to business sales: Which involves reaching other businesses in trade shows, events, etc.
Subscription based sales: To entice customers in purchasing the subscriptions to get regular products and deliveries or services on a monthly, yearly, or quarterly basis. This ensures that the business has a steady revenue stream and customers are free from the worry of reordering or the supply running out.

Telemarketing: This involves selling products or services over the phone.

Direct selling has its own benefits, and with the power of social media and internet on hand, everybody from big businesses to just starting entrepreneurs can take advantage of this method to boost their businesses and reach a larger customer base.

Amit Bhateja