Direct selling involves selling products and services directly to consumers without middlemen. It can be done through home visits, online, or other venues. There are two main business models - single-level selling where sellers earn commission on their own sales, and multi-level selling where they also earn from sales of those they recruit. Some advantages are better profits, self-regulation, strong customer relationships, and the ability to work remotely. Popular direct selling companies include Amway, Herbalife, Avon, and Vorwerk. In 2017, direct selling totaled $189.6 billion in global sales.

1. DIRECT SELLING
SHREEKRISHNA MONDAL
MSc IN INDUSTRIAL FISHERIES
COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY

2. A direct selling company sells products &
services to the consumers without involving any
middlemen or third parties through at home,
online & other venues
DEFINITION:
“Direct selling is one of the simplest paths to entrepreneurship” --- Art Jonak
Direct sellers may be distributors, representatives & consultant.

4. CHARACTERISTICS:
• There is no middlemen or third parties.
• Direct contact between a seller and a consumer
• It can be operated from home, cafe, online,
office etc.
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5. BUSINESS MODELS / TYPES:
Single-Level Sales:
• A direct seller makes money by buying products from a parent organization and, selling them directly
to customers
• This type of direct selling is usually done face-to-face, e.g., through door-to-door or one-on-one
presentations & it can also take place online.
• Salespeople earn their income from commission sales and occasional bonuses from the company they
get their products from.
• Example: Amway
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6. Multi-Level Sales:
• Independent distributors selling to consumers in a multi-leveled commission structure
• A representative not only sells products but also recruits new salespeople
• Pyramid schemes
• Primary focus is on recruiting members
• Salespeople earn their income from commission own sales and for sales made by people they have
recruited (recruitment fees)
• Example: MLM-companies such as Herbalife, Natura etc.
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7. One-on-One Sales:
• When salesperson individually approach to the customer.
• They present their products from door to door or face to face.
• Example: Amway
Online Sales:
• MLM-companies, as well as small businesses and local representatives, sell products and services
through their own websites or social media accounts
• They present their products from door to door or face to face.
• Example: Nykaa (Online Beauty Shop)
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METHOD OF DIRECT SELLING:

8. Host or Party-Plan Sales:
• In this method, products are sold by hosting a social event or parties and offering products for sale
• Sometimes salespersons may engage some celebrities to promote and sell their products.
• Example: Mary Kay (Online Beauty Shop)
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9. 1. Better profit than conventional distribution systems
2. Self regulatory (as there is no middlemen)
3. Strong customer relationships
4. Higher margins
5. Better personalization (By interacting with customers directly, sellers know their
buyer persona better and can provide their customers with highly relevant and
personalized offers)
6. Remotely work (from home, office etc.)
7. Network marketing and many B2B companies use direct selling
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ADVANTAGES:

10. 1. Amway:- An American company that sells health, beauty, and home care products.
2. Herbalife:- A global MLM-corporation that develops and sells dietary supplements. USA based co.
3. Avon Products, Inc:- A multi-level marketing company headquartered in the U.K. specializing in
beauty, household, and personal care products.
4. Vorwerk.- A brand from Germany that sells appliances, clothing and accessories, cosmetics, home
decor, kitchenware, and personal care products.
5. Natura:- A global company from Brazil with 6,400 regular employees and 1.7 million salespeople.
This brand sells cosmetics and personal care products.
6. Modicare:- An Indian beauty and grooming company.
OTHERS:- Mary Kay (USA), Oriflame(Swedish co.), Infinitus (China) etc.
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Top Direct Sales Companies:

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Revenue:- US$ 8.4 billion (2019)
Top Direct Selling Company

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Modicare has been
growing at a CAGR of
60%. Our turnover for
2020-21 was Rs 1723
Crore.

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Amway, Oriflame and
Modicare lead the
Indian direct selling
industry

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Los Ángeles, California, U.S
Revenue:- US$ 5.54 billion (2020)

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Revenue of top direct selling companies 2020, billion $

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HIGHLIGHTS:
• Direct Selling hit a record $189.6 Billion in total sales in 2017.
• Approximately $76 Billion was paid to distributors in 2017, the equivalent of about
$208 million in commissions per day!
• Direct Selling companies have generated nearly $1.5 TRILLION dollars in sales
since 2009 and paid over $600 BILLION in commissions to distributors.
• Women represent 74% of all Direct Selling distributors worldwide.
• The majority of Top 20% income earners in Direct Selling are women and couples.

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• Direct Selling companies are on pace to create $1 TRILLION in sales over the next
5 years
• Direct Selling companies are on pace to pay out over $400 BILLION in
commissions to distributors over the next 5 years!

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23. “All the information and data are
used here, only for educational
purposes & collected from
internet.

24. Thank you
Thanks for your attention and patience
Shreekrishna Mondal
shreekrishnamondal@gmail.com