Direct Selling that involves a brand’s interaction directly with the consumer is a great source of additional income. However, the onset of the Covid-19 resulted in many losing their livelihoods. The Direct Selling industry has been an exception and comes to the rescue of many by providing them financial freedom. Direct Selling, also known as Multilevel Marketing (MLM) or Network Marketing, can help you earn big if you are dedicated, hardworking, and ready to practice the most effective marketing strategies. Though the pros far exceed the cons, you should be aware of them before stepping into the Direct Selling industry.
A Look at the Growth of Indian Direct Selling Industry
There has been a consistent rise in the domestic Direct Sales market in India since 2013. Are you aware? Of the total global sales of over USD 18 billion in the year 2019, the Indian Direct Selling industry generated around USD 2.4 billion in retail sales.
As per a report in The Economic Times, the Direct selling sector will employ more than 18 million people by 2025. The industry estimates expect the Indian Direct Selling industry to grow at a Compounded Annual Growth Rate (CAGR) of around 4.8 percent, likely to reach INR 15,930 crore by the end of 2021.
Direct Sales – Types and Methods
Direct Sales comprises mainly of two categories – Single-level and Multi-level. Single-level Sale is that sale where the Sales Representative earns a commission for selling products or services of a company they are associated with. For example, a commission earned by the Independent Representatives when they sell services of a company, say printing services. In Multilevel Sale, the Independent Representative earns commission by selling company products or services and by recruiting new Sales Representatives – referred to as the downline. Further, they even earn a commission – both on their sales and the sales made by the ones they have recruited. Most MLM companies use this Multi-level method.
Sales Representatives use various ways to approach their prospects. For example, One-to-one sales involve an in-person interaction, Online sales involves selling products or services via their website or social media account, and Party-plan sales involve the Sales Representative gathering a group of prospects and customers for a presentation or demo. It has a resemblance to a party going on!
Direct Selling – Pros and Cons
Pros
- You attain financial freedom; you own your business and is your own boss.
- Flexibility to work from home or anywhere.
- Possibility to earn commissions, bonuses, and residual income from your sales and also your downline.
- There is no need to have many customers to build a successful business.
- Your business grows by recruiting further business builders in the form of Sales Representatives.
- You do not need a big investment to start your MLM business.
- Don’t need employees to run the business.
- You do not have to carry the product when you go out to meet prospects.
- You do not have to create an inventory as the company will do it for you.
Cons
- As a Sales Representative, your job involves selling, and if you do not like a sales job, the MLM business is not meant for you.
- Initially, it would help if you started selling your warm prospects, including your friends, colleagues, relatives, or current customers. If you are uncomfortable approaching and selling them, then the MLM business is not suitable for you.
- After taking a lot of effort to recruit someone to build your downline, only to realize later that they are quit after some time can be quite a frustrating experience. MLM is a business that requires a lot of hard work, patience, and persistence.
Conclusion – Direct Selling is a Lucrative Business
There are several MLM or Network Marketing companies that exist but. Not all of them are genuine. Some of them operate as MLM companies disguising the pyramid model that is illegal in India. Direct Selling is an addition to the several career options already available to you. Having seen the pros and cons of Direct Selling, it is entirely up to you to decide whether you are comfortable with it. But, bear in mind that there is no career option as lucrative as Direct Selling that does not require any big qualification or experience and neither does it require any big investment. So, step in with confidence and never look back once you have taken your decision. You will not regret it.
