Direct Sales 1

Meaning of Direct Sales Part 1

For you as a company founder, it is important right from the start how you define your sales strategy and how you implement it. After all, you want your products or services to reach your potential customers. That’s why you have to actively distribute them. One way to reach your customers is through direct sales .

What is direct sales?

The sale of products from the manufacturer to the customer is understood as direct sales. It is important that this direct sales take place outside of your business premises and that you do not involve any intermediaries. The points of sale for direct sales can be very different. Direct sales describes all forms of sales in which your products are sold on the name and account of your company. This means that there is always a direct customer relationship and every purchase contract is concluded between you as an entrepreneur and the customer.

What forms of direct sales are there?

When it comes to direct selling, you might also think of selling products through personal contacts. If you believe the definition of Wikipedia, then direct sales also include digital channels of sales . This includes , for example, eCommerce or telephone sales . The Bundesverband Direktvertrieb Deutschland eV (also called BDD) contradicts this representation. The following definition is used here:

“The personal, non-media sale of consumer goods and services outside of business premises. Direct sales are therefore not only the sale of products in the customer’s home or workplace, but also at trade fairs, markets or pedestrian zones. “

Below is an overview of the most important forms of direct sales. The media sales opportunities are also included here.

Distribution channel Description

Home demonstration

Home demonstrations or the very well-known sales parties are among the most popular forms of direct sales. One reason for this can be found in social selling. This means that many people, maybe you too, can be tempted to buy by family members, friends or acquaintances more quickly. Among the most popular of these events is the well-known Tupperware party or the lingerie party, which is so much loved by women. The home of an interested party serves as the point of sale. Above all, it is estimated that everyone is sufficiently familiar with the product and can also test it.

Home service

One of the most famous home services in Germany is “Bo-Frost”. This home service visits its customers at regular intervals and supplies them with consumer goods, primarily frozen goods.

Purchase from the agent

The sales agent has been around since 1926. The Vorwerk company is considered the inventor, best known for its vacuum cleaners. All products and merchandise are marketed through a sales agent. He either visits his customers at home or also makes presentations at work. In addition to a sale, he also conducts consultations or demonstrations of devices or products.

eCommerce

In the area of ​​direct sales, eCommerce is a form in which the entire purchase process is carried out online. As a rule, there is no personal advice with eCommerce.

Telephone sales

Telephone sales have also been a form of direct sales that has been in use for a long time. In recent years, however, it has come under heavy criticism. With telephone sales, everything takes place over the phone, from acquisition and advice to sales.

Networking Marketing

This form is also called structure sales or multi-level marketing . On the one hand, it is about the sale of consumer goods, and on the other hand it is about recruiting new sales members. This means that the corporate structure is also expanded through networking marketing. You might think of the infamous pyramid scheme right now. But networking marketing is clearly different from this.

Who is employed in direct sales?

In earlier years one spoke of a classic “representative” who was employed in direct sales. The profession, or rather the job title, is still viewed critically by many today. According to HEALTHKNOWING.COM, this may also be one reason why many companies give their employees in direct sales a different name. These terms range from representative to party manager to the classic term sales partner. It becomes particularly interesting when you look at the people who work, especially in the B2C area. These are primarily housewives, poorly paid office clerks and young mothers. This is by no means a prejudice, but is proven by figures from the BDD. But why are this group of people employed in direct sales? There are several reasons for this.

  1. Flexibility: Many people decide to work in direct sales because they can flexibly organize their working hours here . Most employees only work part-time and they can decide for themselves when they work and how much they work. In this way, work and family life can be optimally designed. Regardless of whether it is a part-time job or a main job.
  2. The product affinity: A lot of employees in direct sales know the products very well because they were customers themselves before. So you have a clear connection to the product and know the advantages. Such employees in direct sales bring a high level of product competence, but also enthusiasm for the product, to entrepreneurs like you. That helps a lot with sales.
  3. High opportunities for advancement: Among employees in direct sales, the proportion of women is around 72%. Of these, around 83% are in a management position. Everyone can decide for themselves how their career should or can go. The more time invested, the higher the sales. And the higher the sales, the higher the earnings and career opportunities.
  4. Easy entry: If you want to prove yourself in direct sales, you don’t need any special qualifications or previous knowledge. After maternity leave or a longer break from work, you can return to work in direct sales without any problems.

Direct Sales 1