Direct selling is marketing and selling products to
consumers directly. There is no retail location or
website location where customers can place orders and
pickup the products. Sales are made through
one-on-one interactions between the seller and the
customer. This is done through demonstrations,
private parties (in homes or place of business), and
other private arrangements.
This model was widely used in the past before the age of
the Internet where salesmen roam the country visiting
residents in their homes and businesses to pitch their
products and drum up sales.
It is still a good business model for certain type of
businesses.
Examples of the Direct Sales Business Model
Safe Manufacturer: This company will generate
revenues using roaming salesmen to target and pitch their
products to banks, jewelry stores, small businesses that collect and
hold cash overnight, etc. Offer quick product delivery
(overnight shipment, 2-day, 7-day, etc.). Offer setup service
for a small fee. Offer loss or missing key recovery.
Home Security Systems:
Generate revenues by using roaming salesmen to target and pitch to
residents. Offer quick delivery and setup of the security
systems. Provide monitoring of the system to ensure that it is
functioning 24/7.
Home/Office Cleaning Service:
This company will generate revenues by using roaming salesmen to
target residents and businesses to pitch their service to them.
Offer flexible delivery of service that is most convenient to the
customer (such as after hours cleaning, weekend cleaning,etc.).
Landscaping Service: Generate revenues by using roamign
salesmen to target and pitch the service to residents and
businesses. Offer on-demand service and flexible delivery of
service (such as after hours, weekends, holidays, etc.).