I. Overview of Direct Selling
According to the definition of the World Direct Selling Alliance, direct selling refers to selling goods and services in a face-to-face and unfixed way. Direct sellers bypass traditional wholesalers or retail channels and accept customers' orders directly. Direct selling refers to the distribution mode in which direct selling enterprises recruit direct sellers, and the direct sellers directly sell products to the final consumers (hereinafter referred to as consumers) outside the fixed business premises. The so-called direct selling is network marketing-product sales meeting, which refers to the distribution mode that direct selling enterprises recruit direct sellers, and the direct sellers directly sell products to the final consumers (hereinafter referred to as consumers) outside the fixed business premises. Its management mode is the inevitable trend of economic development in 2 1 century.
Direct selling refers to the distribution mode in which direct selling enterprises recruit direct sellers, who directly sell products to final consumers outside the fixed business premises. Outside the so-called fixed business place, there is no fixed sales place, not a formal employee of the company. The form is decentralized and free, using the interpersonal relationship of direct sellers, that is, relatives and friends to sell.
Second, the origin of direct selling
China's direct sales
Direct selling originated in the late Qing Dynasty and the early Republic of China in China! According to historical records, as early as 1929, the second generation manager of China Wang Restaurant used a way similar to direct sales to solicit business: anyone who introduced business to Wang could get a commission of 5%~ 10% of the turnover. This is the earliest recorded direct selling in the world and the origin of direct selling!
Modern direct-selling
Modern direct selling originated in the United States, and the earliest direct selling sprouted in the 1950s, founded by the Jew Casabe. With the rapid development of information society and people's pursuit of convenient and fast shopping, it came into being. Now, in countries with mature and developed market economy, direct selling is almost all over the world. Although direct selling can be said to be the earliest commercial distribution mode of human beings, direct selling has not been well understood, and the definition of direct selling has not been finalized so far, because direct selling is divided into two categories.
Third, the classification of direct selling.
The first narrow sense of direct selling
The so-called narrow sense of direct selling means that producers, manufacturers and importers sell products to consumers face to face through direct sellers (and consumers), including single-layer direct selling and multi-layer direct selling.
Single-tier direct selling is used by 20% direct selling companies. 80% of direct selling companies adopt multi-level direct selling. Single-level direct selling is to introduce commission mode. For example, the brokers of insurance companies and futures companies are all free, and they sell products by their own interpersonal relationships and get commissions. However, the developed customers have not become salespeople and formed a hierarchical structure, so this is legal.
Multi-level direct selling is based on the company's reward system. A direct seller (who is also a consumer) can not only sell the company's products or services to consumers, but also absorb, coach and train consumers to become his subordinate direct sellers, and he becomes an online direct seller. The higher-level direct sellers can be promoted to the class according to the number, algebra and performance of the lower-level direct sellers, and get different proportions of bonuses. (Note: Customers developed by direct sellers can also become salespeople, forming a hierarchical network, thus realizing team compensation)
The second kind of direct marketing
Direct marketing, also known as direct marketing, refers to product manufacturers, manufacturers and importers delivering products or suggestions to consumers through the media (e-mail DM, TV shopping channels and the Internet). In direct marketing? Straight man? , refers to the direct sale to consumers without going through the dealer. Reply? Word refers to the interaction between enterprises and customers, customers have a clear reply to the marketing efforts of enterprises (whether to buy or not), and enterprises have clear statistical reply data, so as to evaluate the previous marketing effect.
Fourth, the difference between direct selling and pyramid selling.
Difference 1: Is there an admission fee?
Illegal pyramid schemes often charge fees such as admission fees and membership fees. There are different charges and various forms and means? Innovation? . For example, some illegal pyramid schemes will charge a hard entry fee, ranging from three to five hundred yuan. Of course there are some? Smart? For illegal pyramid selling companies, they will have other flexible forms, such as charging hundreds to thousands of dollars for the initial subscription of products. It is understood that these illegal pyramid schemes participants get the qualification to join, introduce or develop others by paying the membership fee or paying the membership fee in disguised form by subscribing for goods, and get a return. In the formal direct selling company, there is no such fee, and the income source of the formal direct selling company and its employees mainly comes from the sales of real products.
Difference 2: whether there is any business behavior relying on high-quality products.
This is also the fundamental difference between illegal pyramid selling companies and direct selling companies. Illegal pyramid schemes often rely on worthless but expensive products. A set of cosmetics worth only tens of dollars can sell for hundreds or even thousands of dollars. It is worthwhile to standardize the product pricing of direct selling enterprises.
Difference 3: Is the product legally circulated?
Illegal pyramid selling is just one? Crowdfunding? Games, high entry fees and low-quality and high-priced products that cannot be circulated in the market will not last long. Their sales method is to let all the entry-level sales representatives (or salesmen) subscribe to the products they say, but these products are not in circulation in the market, but only as samples or promotional materials for the next salesman. The final situation is that all the salespeople are alone, and the products are not circulated or sold in the market at all, but only one product is sold? A cover? The income of these illegal pyramid schemes organizers mainly comes from the entry fees paid by participants or the fees paid in disguised form by subscribing for goods.
Because the products are not in circulation, the organizers mostly use part of the fees paid by the late participants to pay the remuneration of the early participants to maintain the operation, so the participants still saw the original operation of the company. It's normal? 、? Very healthy? . However, direct selling companies are completely opposite. On the one hand, the products of enterprises require good quality; On the other hand, products sell well in the market. For direct selling enterprises, the quality of products is the fundamental reason to determine the sales volume of products, because the distribution channel of products is from manufacturers to customers through marketing representatives, with no other links in between and few advertisements.
Difference 4: Is there a related guarantee system such as returning goods?
It is understood that once the illegal pyramid selling products are sold, they cannot be returned, or they try their best to set obstacles for repeat customers. This is completely different in direct selling enterprises. All regular direct selling enterprises will provide customers with perfect purchase protection. For example, general customers can get 100% cash back if they promise to return products that still have sales value within 7 days after purchase. For quality customers, some direct selling companies have better services and promises.
Difference 5: What is the personnel structure? Pyramid? style
Illegal pyramid selling companies that make profits by pulling people's heads often appear as follows in the sales staff structure? Pyramid? Type, such a sales structure leads to who comes first, and at the same time, the first batch of participants get income from the membership fee paid by the development offline members. The amount of income is determined by the order in which they join, and the consequence is that the first batch of participants are always ahead of the latecomers. This kind of unsurpassability does not exist in direct selling companies, but in direct selling companies, regardless of the participation of participants, what is the performance in income? Get more for more work? , is a kind of? Distribution according to work? The behavior of.
Difference 6: Is there any formal store operation?
After the comprehensive rectification of MLM in China by 1998, many foreign direct selling enterprises have been transformed. Since then, have shops hired salespeople? This model has become the main sales model to standardize direct selling enterprises. This special way of direct selling makes salesmen subordinate to stores, which is not only directly related to the company, but also convenient for management. Illegal pyramid selling enterprises often stay in the state of developing personnel, organizing networks and having no shops to engage in business activities. Until today, the existence of shops is still an intuitive difference between illegal pyramid selling and direct selling in China market. Of course, we should also be alert to the attempt to engage in illegal pyramid schemes by using shops to wash white.
Through this article, do you have a deeper understanding of direct selling? Learn quickly.