Direct Selling, Network Marketing And Entrepreneurship

Is there a difference between direct selling companies and network marketing firms

? Executives and veteran sales representatives from both sales-oriented organizations can discuss the similarities and differences. Ideally, network marketing is described as a component of direct selling wherein tangible and intangible merchandise is sold directly to consumers. The difference lies in the method used in compensating the seller.

Distinction between Direct Selling and Network Marketing

Direct selling is seller-based. It gives commissions to the sales person after a retail sale. Direct sales corporations normally market household items like small appliances; air and water filters; cooking dishes and wares; and, home accessories. A large portion of the sales profit is given as commission to the seller. Unless these people have been named as sales managers, these sellers are given commissions based on personal sales instead of the number of people recruited. Majority of products sold by direct selling companies are heavy-duty items instead of consumable goods so there is little chance to earn residual income.

Long-term residual income is more for network marketing where distributors still do selling but is usually confined to close acquaintances and next of kin. Network marketing companies offer retail commissions but these are relatively lower. Most of the available commissions channeled to bonuses for up line management people in the recruitment tree.

Multi-level Approach

In multi-level marketing, sales personnel are paid commissions for commission on their own sales and sales of representatives recruited by them. So, the selling objective is somewhat defeated since you can literally stop selling but still look forward to lucrative income due to the sales done by your recruits.

Women in Direct Selling

More women are joining the growing ranks of direct sellers after staying for so long in the corporate world and failing to find satisfaction in going up the corporate ladder or getting tired of the so-called corporate politics.

These women get attracted to opportunities in direct selling primarily because of the prospects of earning more. Besides, there are minimal start-up costs, logistics, marketing support and resources, websites and other materials. Research and development is also well-funded so you can expect ample backing if you decide to become an independent business owner.

Most women start enterprises which are compatible with personal values and offer freedom and flexibility when it comes to schedules, meetings and presentations for clients. These are the exact features that are at the heart of opportunities presented by companies with goods ranged across all categories of consumer products and services.

Direct selling conferences and workshops are held on a regular basis to provide motivation for entrepreneurs especially women although men are also included in this equation. The objective is to encourage these aspirants to work at establishing their own businesses. Direct sellers believe that there is a growing market and people can be empowered to be counted as part of the team. The unstable economy provides more reason to enter the domain of direct selling since unemployment is fast becoming a problem in many countries nowadays.

by: Larry Dunn1

POST COMMENT

Which Is The Best Fat Burner Among Wheat, Oats And Rice? Revitol Scar Cream-a Way To Remove And Heal Scar Get To Know The Material And Construction Of The Knives Merits And Demerits Of Blackout Blinds The Different Kinds Of Pollutions, And The Permanent Alterations Happening In The Earths Atmosphe Event Design Edmonton Companies Shapes All Custom And Corporate Events Improve Skin Tone And Look Younger Cash For Gold Toronto: The Best Option To Buy And Sell Gold Awesome And Inspiring Trade Show Booths Schools In Indore And Kolkata: Brings Out The Best In Your Ward Grab The Trendy And Latest Pair Of Ladies Shoes From An Online Store How To Choose The Best Garden And Home Furniture In Orange County Top Custom Web Development And Designing Trend In 2012