Are you looking to earn by venturing into direct selling? But before taking that bold step, do you want to know the advantages of direct selling so you can decide if it’s worth your time? If yes, then this post is for you.
Direct sales is a good job for stay-at-home moms, students, and anyone trying to make ends meet financially.
*As an Amazon Associate I earn from qualifying purchases. This post may contain affiliate links from Amazon or other publishers I trust (at no extra cost to you). See disclosure for details.
Therefore, in this post, we will thoroughly explore the advantages and disadvantages of direct selling so that you can make informed choices.
What is Direct Selling?
Direct selling is a simple business model in which products are sold directly to the consumers without passing through middle men. This type of sales can take place at home, online, at your place of work or office, and other non-store locations.
Direct selling is a flexible and easy way of making money. You are your own boss as a direct salesperson – you decide when, where, and even how you want to work. How much you earn depends on your effort in making sales, and recruiting people if it is a multilevel marketing company.
Advantages Of Direct Selling
Some of the reasons why direct selling is popular are because of the following benefits:
- It is one of the most effective ways to get direct feedback from customers. In direct sales, the distributor or sales reps interact with the customers directly and get their feedback back to the company. This will help the manufacturers to improve their products to meet the needs of their clients.
- Direct sales ensure maximum personalization. The sales reps or distributors know what their customers want, they even know the kind of offers that will suit different customers. A lot of buyers prefer companies that offer them personalized offers and recommendations.
- Another wonderful benefit of direct selling is price regulation. There are no middlemen or intermediaries and the companies have full control over the prices of their products. Their sales process is also more transparent.
- Direct sales companies easily retain customers for a long time and this is a very important business objective. Direct sales companies interact directly with their customers and they are more empathetic. You can easily satisfy your customers when you know what they want.
- Direct selling enables companies make higher profit margins because there are no middlemen to take a share of the profit. With direct selling, businesses usually earn more.
- It has convenient working hours. The sales reps or distributors can work when they want. There are no strict working hours. Everything will be fine as long as you are making sales.
- Direct selling eliminates the need for store maintenance because it takes place in a non-retail environment. You won’t be required to set up a store before you can sell your goods.
- Direct selling offers the benefit of product demonstration and this helps you win the trust of your potential clients. When you give them a demonstration of a product or service, you will win their trust because they can see what they are about putting their money into.
- Customer satisfaction is highly guaranteed in direct selling. A lot of customers get angry when they are not given enough attention in stores.
Disadvantages Of Direct Selling
As the popular saying goes – whatever has advantages, also has disadvantages. Some of the disadvantages of direct selling are highlighted below:
- The act of direct selling is tricky, you have to learn some of the tricks and tips if you want to become a distributor or sales rep. You also have to build your network on your own because the company does not provide any leads.
- A pyramid scheme can easily be created if the company emphasizes more on recruiting new people as sales reps instead of selling products. And pyramid schemes are illegal in some countries like the United States of America.
- In direct selling, expansion or growth is sometimes difficult because these rely heavily on sales reps and distributors.
- Direct selling only works if the sales reps or distributors are constantly making sales and their network is growing.
- Direct selling requires you to have faultless marketing skills. Not everyone has this and it can be very difficult to persuade a customer to buy a product or join a business. It can even be difficult to sell a product door-to-door.
- In the past, it was difficult to reach a wider audience in direct selling but that is no longer an issue thanks to the presence of social media and websites now.
- Direct selling can affect your personal life if you make it full-time and your only source of income. You will give it too much time and may not take vacations like other people, you may even work on weekends because that’s when most people are free. You will be making a huge profit doing this but your personal life will be compromised.
- Also, you will face rejections, you will get a lot of Nos, so be prepared for this if you are going into direct selling. But don’t let it discourage you because it is part of the business.
- Like all other businesses, direct selling also has a risk of failing. So we don’t advise you to put your whole fortune at risk. Take small steps and expand your business gradually as you make more gains.
Is Direct Selling Worth It?
Yes! Direct selling is worth the effort because it pays well and has many advantages.
There may be factors that want to keep you from going into direct selling but they can all be handled.
For instance, if you want products that suit you, there are many direct companies with different niches that you can pick from. This gives you the opportunity to do what you love doing and work will be fun for you instead of being stressful. There is direct selling in almost every niche you can think of, like fashion, cooking, makeup, and even offering online classes.
Also, some direct sales companies train their sales reps, so you don’t have to worry about not being able to speak to someone or in public. Some even give new sales reps mentors and as you grow in the business, you will also mentor others.
Direct selling is a good and legal way to increase your source of income.
Advantages of Direct Selling To The Consumers
- The consumer has an opportunity of testing the products
- Direct selling has flexible buying hours
- It has a guarantee and after-sales service
- Consumers have direct contact with the sellers
- Consumers have the right to withdraw purchase within a given period
- There is personalized home delivery in direct selling
- Demonstration of products, and demonstrations take place in a friendly environment.
Advantages Of Direct Selling For Sales Reps
- Sales reps can establish and run their business at a low cost and at minimum risks
- The earning opportunities are flexible
- Working hours are flexible
- Your family members, friends, and spouse can be part of your business
- You can work either part-time or full time
- Most direct selling businesses don’t require formal education
- The company will train and support you
- There are a large range of products to sell
Advantages of Direct Selling To The Economy
- It creates earning and employment opportunities
- It creates micro-enterprises
- Direct selling develops entrepreneurship and self-employment
- It contributes to the economic welfare of the nation
- It doesn’t discriminate against gender, age, ethnicity, or religion
Tips To Succeed In Direct Selling
Direct selling is worth the effort due to its huge benefits and flexibility. So, you can learn the marketing tips and tricks to improve your chances. Here are some tips that can help you succeed in this field.
- Learn about your company and their products
One of the most important steps in succeeding in direct sales is to pick a company or product you love and sell it. Also, make sure you use the products or services yourself.
When you pick a company of your choice, take your time and learn about their products, the pros and the cons. Do your homework thoroughly.
It is also good if you learn about the history of the company. This will help you to make an effective sales pitch. It will also help you have answers to all the questions your customers may ask you about the product and company.
You will give a wrong impression if you don’t have an answer to any of their questions.
- Build a robust network
You have to build a strong and growing network in direct selling. It is almost impossible to establish your business and make gains without networking.
You need a thorough customer database to help you build a strong network and expand it.
- Focus on establishing trust by building relationships
To be a successful sales rep or distributor, you must establish trust by building genuine and trustworthy relationships. It is very important to know your customers because you will make more sales when they trust you better.
So your main focus should be on establishing a relationship with your potential customers and trying to find their pain points.
You will make more sales when you know what your customer needs.
- Be consistent in your efforts
Consistency pays. It is not easy to convince people to buy your products or services but don’t be discouraged. Keep speaking to people, keep uploading content on your blog and social media platform, keep doing what you know will make your brand famous and with time, you will turn prospects into actual customers.
5. Get relevant training
Direct selling needs updated and effective communication skills, emotional intelligence, critical thinking, decision-making skills, persuasion skills, etc.
The investment you make in getting relevant training and knowledge will eventually pay off and bring in more sales.
6. Make your customers your brand ambassadors
This is the best way to market your products – positive feedbacks/testimonies from an elated customer will go a long way.
A happy customer will definitely bring more customers. If you keep giving what your customer needs or delivering your promise, this chain will never stop as you will keep getting more customers.
Direct selling is a great way of earning extra cash on the side or as a full-time business. The flexibility and potential for growth are some of the numerous benefits, and from this post, you can see that the advantages of direct selling far outweigh its disadvantages.
We hope this post helps you in making good decisions and succeeding in your direct sales business.