In recent weeks I’ve been listening to much talk of direct sales and MLM, I’ve noticed that many people confuse both terms and don’t know exactly what are the similarities and differences. Whether you’re in a MLM or direct selling company, or that you’re even considering entering any of these, in this article I’m going to clarify what each one and I’m going to point out at least five differences between them. Before seeing the differences, let’s see what are the direct sales and MLM what what are direct sales? Direct selling is a way in which companies distribute their products directly to the final consumer through distributors or independent agents, who typically use the power of recommendation or Word of mouth advertising to sell products (or services). A (a) (a) independent distributor earn money depending on your sales volume, if it sells much WINS $ much and if it does not sell anything WINS $ nothing. The dealer has the advantage of deciding how many hours will you devote a week, set their schedules and choose the way of getting customers.
Usually the distributor buys at wholesale prices and sells to retail price, winning $ difference which is usually between 30% to 50% of the price to the final consumer. Direct sales companies can offer such generous commissions since they don’t have to spend $ on advertising, saves money on expenses of logistics (van direct from the winery to the House of each Distributor) products, salesmen salaries or rent of shops in commercial places. In Mexico there are large companies such as Avon, Belcorp, Natura, Swiss Just, Fuller and Tupper Ware that work under this scheme. Although there are others, such as Mary Kay and Jafra that many women come only to sell their products (direct sales), but as they progress in the company, encouraged that they recruit to other distributors and participate within the multilevel scheme.