WHAT IS DIRECT SELLING ?

WHAT IS DIRECT SELLING ?
The sale of a consumer product or service through personal contact, away from a fixed retail location or shop. Worldwide, the number of direct sellers is growing at 220,000 per week.
MLM - a definition Multilevel marketing allows sellers to build a business through their own sales efforts and by inviting others to become sellers. Remuneration is based on a seller's personal sales AND on the combined sales of those people they have sponsored, trained and motivated. Benefits to customers This form of marketing goods or services directly to consumers takes place: at the customer's convenience often in his/her home either on a one-to-one basis, or in the context of a sales party. Customers value the advantages of: convenience personalised attention a good selection of products ability to examine the products for a period of time protected by a customer refund policy.Benefits to sellers Many of these people have chosen direct selling because they want to own their own business, but do not have : considerable funds required to buy a franchise or start a new company training time education Among the top five reasons people sell direct are that they: like and believe in the product like being their own boss, and working their own hours like the supplemental family income or like making extra money for themselves feel that the harder they work, the more money they can make enjoy selling and meeting people. Benefits to companies In today's world of rapid change, direct selling offers companies: a direct distribution channel that can be accessed immediately bypassing rigid and costly traditional distribution channels.
The following factors differentiate illegal pyramids from lawful direct selling business:
Legitimate Direct Sellers
Pyramid Selling
Legitimate direct selling companies offer a genuine business opportunity based on consumers. They routinely offer consumers satisfaction guarantees or cancellation rights so that the consumer may return the product for replacement or refund if he/she is dissatisfied.
Legitimate direct selling companies strongly discourage overstocking of inventory and provide participants leaving the plan with an opportunity to return any unused, saleable merchandise to the company for a refund of not less than 90% of the salesperson’s net cost.
Legitimate direct selling opportunities may be taken up with minimal start up costs and little or no inventory investment. Even modest entry fees may be refundable if the new direct seller decides not to pursue the opportunity.
The sales and marketing plans of credible direct selling companies are based on the progressive recognition and reward of direct sellers for consumption of the company’s products. The development and stability of a direct seller’s business is dependent on satisfied consumers and fairly remunerated direct selling members.
Every salesperson subscribes to the industry code of ethics.
Pyramid schemes have no such commercially viable product sales base.
In contrast, pyramid schemes often encourage or require large stock of non-refundable inventory and disappointed scheme participants are then left with stock which they can neither sell nor return.
Conversely, pyramid selling schemes often require high entry fees and/or substantial “investment” in inventory, and neither are refundable. This is because pyramid operators make their money from new recruits to fund their schemes.
Pyramid schemes on the other hand, offer ‘get rich quick’ schemes to induce participants to buy “ground-floor” or “leadership” positions. In pyramid selling schemes there is no viable, long-term business opportunity.
No code of ethics exits.