{"id":710,"date":"2025-02-28T11:00:00","date_gmt":"2025-02-28T12:00:00","guid":{"rendered":"http:\/\/nurseagence.com\/?p=710"},"modified":"2025-03-18T13:16:25","modified_gmt":"2025-03-18T13:16:25","slug":"how-to-survive-thrive-in-direct-sales","status":"publish","type":"post","link":"http:\/\/nurseagence.com\/index.php\/2025\/02\/28\/how-to-survive-thrive-in-direct-sales\/","title":{"rendered":"How to Survive & Thrive in Direct Sales"},"content":{"rendered":"
Whether you recognized it as a direct sale or not, you\u2019ve almost certainly encountered people who engage in the practice. Maybe it was a door-to-door knife salesperson, a family member selling cosmetics, or Uncle Rico from Napoleon Dynamite<\/a> at your door, offering model ships to help hawk plastic dinnerware.<\/p>\n In any case, direct sales is an immediately personal type of selling that requires an entrepreneurial spirit and initiative. It can be lucrative and rewarding, but I think there\u2019s a lot to know if you\u2019re considering pursuing it.<\/p>\n In this article, I\u2019ll give you perspective on what direct sales is, a few different subcategories, and key tips on how to do it right.<\/p>\n Table of Contents<\/strong><\/p>\n Direct sales is the practice of selling a product or service directly to customers without intermediaries. That means a company engaging in direct sales will have its own internal sales team responsible for generating, contacting, and nurturing leads through to a closed deal.<\/p>\n Direct sales is common in a huge range of industries from herbal supplements to enterprise software, and while there are a few different methods of direct selling I\u2019ll touch on below, what they have in common is that they happen outside a traditional retail environment \u2014 for example, at your front door, on a Zoom call, or at a friend\u2019s house.<\/p>\n Different methods come with their own advantages and disadvantages for the salesperson, but let\u2019s quickly establish why a company would pursue the direct sales route over channel sales.<\/p>\n Direct sales stand in contrast to channel sales<\/a>, which generally involve one or more intermediary transactions before a customer buys. For example, many manufacturing companies sell to wholesalers, who then sell to retailers, who finally sell a product to an end user.<\/p>\n I was surprised to find out that channel sales account for some 75% of the world\u2019s commerce<\/a> \u2014 so why is the remaining 25% holding out?<\/p>\n The main advantage of direct sales is the control it offers. Companies selling direct have complete control over their marketing, pricing, positioning, and more. They\u2019re also able to establish and maintain valuable relationships with their audience, which isn\u2019t always possible or practical when selling to intermediaries.<\/p>\n A direct sales situation also allows the seller to capture more of the profit from each sale made instead of sharing it with wholesalers, retailers, and anyone else who touches the product on its way from creation to distribution to the end-user.<\/p>\n Of course, the advantages come at a cost, and the direct seller will need a way to market to prospects and amass an audience, build the sales infrastructure and team to get in front of that audience with a pitch, and offer post-sale support to consumers who have questions, run into issues, want to warranty products, and more.<\/p>\n If you\u2019ve weighed the pros and cons and you\u2019re set on the direct sales approach, here are a few of the ways your company can go about getting in front of customers to make your pitch.<\/p>\n <\/a> <\/p>\n In direct-to-consumer sales, a business sells directly to the end user without intermediaries. In ecommerce, for example, this would be a sale of the company\u2019s own products made on the company\u2019s own website instead of through an intermediary like Amazon. Brands with physical storefronts also sell their products directly to consumers.<\/p>\n Best for:<\/strong> Products with tighter margins that make it difficult for manufacturers to thrive after losing profit to the additional touchpoints of a channel sales approach.<\/p>\n Single-level direct sales are performed primarily through one-on-one meetings between salespeople and prospects. This type of direct sales can be conducted through mediums like in-person pitches, over the phone, via catalogs, or online.<\/p>\n Single-level selling often has a straightforward commission structure. The companies supporting these kinds of sales offer commission for each sale and might have other incentives available for meeting specific goals or quotas.<\/p>\n My own role in sales falls in this category, and although motivated sellers can be successful with many different approaches, I personally think single-level selling is the sweet spot for many salespeople.<\/p>\n Best for:<\/strong> Very expensive or complex products that require expert knowledge or a consultative sales approach. A single-level sale can happen in one meeting, but it could also have a longer sales cycle involving numerous meetings with a variety of stakeholders.<\/p>\n Host selling is generally conducted in a group setting \u2014 often through a party or event dedicated to pitching a specific offering. It usually entails a direct salesperson presenting to prospects in someone\u2019s home or office.<\/p>\n Best for:<\/strong> Host selling is ideal for products where quality is somewhat subjective, or those that need to be tried (such as a fragrance) before a prospect wants to commit to a purchase. Ever tried to convey a scent on a website? Host selling is also a good fit for any product that\u2019s more compelling with an in-person demonstration, since these demos are often difficult to replicate for digital consumption.<\/p>\n Multi-level marketing (MLM) is a mode of direct sales that can encompass aspects of single-level and party-plan sales, but the practice contains a recruitment element not generally associated with the other two.<\/p>\n I sometimes conflate MLM operations with illegal pyramid schemes, but in pyramid schemes, payment is based solely<\/em> on a recruit\u2019s ability to recruit other reps instead of actually selling a product.<\/p>\n In MLM, representatives sell products while recruiting and training other representatives. Once the recruited reps start selling products, their recruiters earn a partial commission for their efforts \u2014 all on top of the commission those original reps earn through their own sales.<\/p>\n Most multi-level marketing operations are legitimate and are distinguished from pyramid schemes in three ways: the product is legitimate and of high quality, the income reps earn comes from sales and recruitment instead of just recruitment, and recruitment isn\u2019t billed or pushed as the primary focus of the operation.<\/p>\n Best for:<\/strong> The MLM model makes the most sense when a company needs to attract part-time sellers who may only have a few hours per week to sell. It also helps tap into the network effect, and MLM can scale a well-received company quickly.<\/p>\n <\/a> <\/p>\n So what do the four direct sales methods above look like in the real world? Let\u2019s check out some companies swimming against the channel sales mainstream with a direct sales model.<\/p>\n If you\u2019ve ever been to a bike shop, you\u2019ve probably come across models from Giant, Specialized, and Trek that use channel sales \u2014 but a few brands are seeing success with the direct-to-consumer model. Canyon Bikes<\/a> is one company leading the charge, selling products straight to the end user and promising better value by cutting out the retail middleman.<\/p>\n CutCo (and its controversial parent organization, Vector Marketing) is a well-known brand that relies on single-level selling. Instead of recruiting other reps for downline commissions, CutCo salespeople are exclusively compensated through their own sales.<\/p>\n This form of direct selling was popularized by brands like Tupperware, whose direct sales reps held \u201cTupperware Parties<\/a>\u201d to show off the brand\u2019s products to friends and family. Mary Kay is another company that\u2019s famous for its effective use of the host selling practice to leverage the social networks of its sellers.<\/p>\n Avon<\/a> is one of the most recognizable examples of MLM direct selling. It operates through a network of individual representatives responsible for selling directly to consumers and who receive a commission for each sale. They travel and make in-person connections that drive sales, and they also earn a commission for recruiting more direct sales representatives for the company.<\/p>\n\n
What is direct sales?<\/h2>\n
How does direct selling work?<\/h3>\n
Direct Sales vs. Channel Sales<\/h3>\n
Types of Direct Selling<\/h2>\n
<\/p>\n
1. Direct-to-Consumer (D2C)<\/h3>\n
2. Single-Level Selling<\/h3>\n
3. Host Selling<\/h3>\n
4. Multi-Level Marketing<\/h3>\n
Direct Sales Examples<\/h2>\n
D2C: Canyon Bikes<\/a><\/h3>\n
<\/p>\n
Single-Level Selling: CutCo<\/a><\/h3>\n
<\/p>\n
Host Selling: Tupperware<\/a><\/h3>\n
<\/p>\n
MLM: Avon<\/a><\/h3>\n
<\/p>\n