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Direct selling is the marketing of consumer goods and services directly to consumers on a person-to-person basis, generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations.
Direct selling offers customers the opportunity to see, test and judge a product at their leisure in their own homes or among friends. All goods are delivered directly to the customer. It is especially useful for consumers in rural areas and small towns, making available goods and services not provided through outlets in the area.
Direct selling occurs in two primary ways. It can operate on a one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or on a party-plan basis (selling through explanation and demonstration of products to a group of prospective customers by a direct seller usually in the home of a hostess who invites other persons for this purpose).
There are many ways of organizing a direct selling company. Some companies use a network or multilevel marketing structure, where goods and services are supplied to consumers for final consumption through sales made by a network of independent direct sellers. These direct sellers may receive remuneration based on their own sales of goods and services to consumers, and from the sales to consumers generated by their network of other independent direct sellers who have been recruited and trained in the business.
Direct selling is a form of non-store retailing.
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