Selling products directly to the consumers in a non-retail environment is called direct selling. With direct selling, starting a business gets easy for a person as it allows them to start with little investment and without any prior experience. This model is gaining a lot more popularity these days. Many people are indulging themselves in direct selling to earn money.
Let’s learn more about direct selling.
What is Direct Selling?
In direct selling, there is direct contact between a seller and consumer without involving any intermediator. These kinds of selling occur in a non-retail environment such as home, work, online, and other non-store locations.
In traditional selling, products are sold at a physical store or an online store. But, direct selling is making use of a salesperson who contacts the customer directly and makes a sale.
The main benefit of direct marketing is that it eliminates all the intermediaries involved in product distribution. Usually, the products sold through direct sales are not found in typical retail stores.
Types of Direct Selling
There are mainly two types of direct selling which are being used by various companies these days. They are as follows –
- Single-level sales
In single-level sales, sales are done one-on-one through door-to-door or online presentations, catalogs, etc. A salesperson can earn income by sales commissions for trading products in single-level sales. Advertising agency’s employees also get a certain bonus when they reach their target goals.
- Multi-level sales
In multi-level sales, a representative sells a product and also recruits a new salesperson. They get paid for the sales made by them and the sale made by the representative also. This approach is followed by many companies these days.
Future of Direct Selling
India was introduced to the idea of direct selling in the late 1990s, after launching operations by Direct selling giants like Amway and Oriflame in 1998. Both of them created a huge market in India, they created millions of direct sellers across the country. This happened because they followed the best industry practices.
Other than these international giants, Indian companies like Vestige and Tupperware emerged in the 2000s and generated employment for women and talented sales professionals.
According to a report by KPMG and FICCI, India’s direct selling business may grow to Rs. 645 Billion by 2025. Reports also say that the direct selling business has reported growth around 16% in the last 5 years and it is expected to increase in the future.
Strategies for Direct Selling Success
Selling products directly to the customer in a non-retail environment can be a good option for the people looking for home business opportunities.
Making a direct selling business success is the same as other businesses. You have to do research about your market, find an ideal market and audience, try to attract the audience, and give them the best services.
Here are some basic business tips to achieve success in the direct sales business:
1. Use What You’re Selling
Your customers are smart, they will know when you will tell something flattering about the product just to make a sale.
Thus, to overcome this situation you should start using the product you are selling because after using the product you will be genuinely excited about the product and this could be seen on your face easily.
When you love the product you are selling, you will share your personal experience and information with them honestly and accurately with the customer, your chances to make a sale will increase.
2. Identify Your Target Market
Find out the potential customers of your products and services. Make a list of 100 people who you know will buy your product.
You may find your future buyers and business partners from this list. Most of the direct sales companies follow this step in the starting. Although this is not the most effective method to use.
Finding your targeted audience is important as you don’t have to waste your time on the people who are not interested in your product.
But whenever people will reach a potential customer, you can also offer them to make money with direct selling. Most of the direct selling representatives are customers initially.
You can also lookout for people who want to make money and like your products.
3. Stay Focused
In this job, you are likely to hear many “NOs” before hearing a yes. You have to talk to 50 people to get 5 customers out of them. But, don’t feel low and stop. You have to stay focused and persistent in your work.
This kind of business might get frustrating, but this is also part of the business. You should not get discouraged after all this because the key to making a business successful is to keep going even after listing a no.
4. Identify the Benefits of your Product
To market a product better, you need to know all the benefits of the product. You should study about the products you are selling and analyze their advantages. See if they are helping men and women in any way to make their life easier.
Write down the features of your product in the form of benefits. This will help you in making a sale.
Highlighting the benefits of your product will help you in developing a better marketing plan. Many times home businesses fail due to poor marketing strategies. Thus, you have to build a good marketing plan for the audience you want to target.
5. Make Appointments
In direct sales, you have to introduce your product and business plan to the people because it’s a person to person business.
Most of the presentations in front of people are the deal-breaker so you need to make more and more business appointments with the customers.
With the use of new technology, you can give these presentations online by phone and laptop through webinars and live sessions.
Invite people to attend your seminars and live sessions. By using digital platforms, you can increase your reach. You can easily target a large audience apart from your local area by using the digital platform.
6. Offer extra
If you want to succeed in direct selling, you have to attract the audience. Give some discounts and offers to your customers to make them buy your product.
You can offer them to buy one and get one free at the starting of your business. Or you can give them some complimentary gifts and services on every purchase.
Sponsoring games and events can also be a good option for you to attract people. But make sure to sponsor events that are related to your product. Your business profile can be raised through these activities.
How to Promote Your Direct Sales Business Online
No matter what business you have, the promotion of all businesses is required. Internet users in India are increasing constantly, thus using online tools to promote your brand is a good choice. This will help you in boosting direct sales.
1. Start a Blog
Blogging is one of the most important ways to promote your business. It works for almost every business. If you want to attract people and build a trustworthy relationship with them, then blogging is the best way to do so.
Make a blog that is informative and relevant to your targeted audience, this will help you in converting readers into customers.
Read more in details about how to start a blog and earn money online in India.
3. Use Social media
Increasing brand awareness becomes easy with the help of social media platforms. Businesses use social media to generate leads as well. Most of the people search for a product on social media before making a purchase.
Maintaining a social media profile can also help you in building a strong online community. It helps you in building a good relationship with your clients. You can consult them for free and can reply to your customers’ queries too.
4. Email Marketing
Boosting your sales can become easy when you use email marketing. Build an email list of your past customers or the people you think can be your potential buyers and send them emails regarding your services.
Give seasonal offers to the people on birthdays, festivals, and more. The emails sent should be attractive and personalized to engage more buyers.
5. Lead Magnets
After setting up your blog, use a lead magnet. You can give your audience special offers in exchange for their email addresses. A lead magnet can be anything like e-book, discount, gift with purchase, or any complimentary services.
6. Join HandS with Influencers
Contact famous bloggers and influencers who have a good number of followers. You can find many influencers on social media that have a great reach. After finding one, collaborate with them and ask them to promote your brand.
How to Start a Direct Selling Business?
If you are looking for some part-time business opportunity, direct selling can be an ideal option for you. It is very easy to become a direct seller of a brand.
Steps to Start a Direct Selling Business:
Step 1: Choose a Brand
Choose a brand with which you want to associate. It will be better if you choose a brand which you are already using, this will help you when you will try to sell the product to other people. You can share your personal experience with the people.
Step 2: Register Yourself
After finding a brand that you love, register yourself as a direct selling agent. Visit their website, go to the business opportunity page, and register yourself there.
Step 3: Fill Details
Fill all your details in the form carefully. Only fill right and authentic information in the form to avoid any problem in the future. Fill your account information and payment information in the form and continue.
Step 4: Review and Confirm
Check all the information submitted by you in the form again. After reviewing all the information, read the agreement, and press confirmation.
After following all these steps, you will be all ready to be a direct selling agent.
Although all brands have unique procedures, the steps shared above are part of a basic process that is generally followed.
Advantages of Starting a Direct Selling Business
Direct selling is popular among many countries these days. There are many advantages of direct selling.
1. Increase in Income
These days most people want to have a stable source of income and many are also doing part time jobs with their regular jobs to earn more money.
Having financial freedom is the dream of all the people these days. Direct selling will help you in gaining extra income.
You can do it as a part time job to increase your source of income. And if you feel like you are making good money out of it, you can also make it your full-time job.
2. Flexible Schedule
Whether you are a college student or a housewife, direct selling will be a good option for you as you can work according to your schedule. It will help you in making money by investing in a short amount of time.
Retired people who want to start something new can also become direct sellers of any reputed brand.
3. Business Skills
Working as a direct seller will give you good exposure to the market. You will meet various people daily. By working as a direct seller you will learn various skills like time management, organization, presentation skills, speaking skills, sales techniques, and many more.
These skills will help you with many things in your future endeavors. Even if you want to start your own business someday, these skills will help you in getting success.
4. Work from Home
Direct sellers don’t have to go to the office daily for a particular time. It’s not like a regular job in which you have to go to the office at 9. In this, you can work anytime which suits you from your home only.
One more plus point of becoming a direct seller is that you can be your own boss and you don’t have to answer anyone.
5. Discounted products
Other than earning, you can purchase products at a discounted rate when you work as a direct seller. If they are consumable products which can be used on a daily basis, then it is a plus point for you.
You will get the newest products in the market before anyone else. People who like to stay ahead of the latest trend can grab this amazing opportunity to be a direct seller.
After learning about all the benefits and future scope of direct selling, it is clear that it is a good option for anyone who wants to earn money. The direct selling business is growing steadily in India. Thus, it is the right time to try out your hands in this.
You can start your direct selling business with your own products or you can become a direct seller representative for any brand, it’s all up to you.
Direct selling works in India very effectively. Indian direct selling industry is growing at a fast rate which shows that direct selling works in India. It has also generated many employment options for people all over the country.
Yes, you can make money through direct selling. But, it also depends on the amount of effort you are putting in your work. Your success will be directly proportional to the serious efforts made by you to make a sale.