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#128 Direct Sales
Definition:The direct sales business model involves marketing and selling products or services directly to consumers without the use of a physical retail location. In this model, independent sales representatives, often referred to as "consultants" or "distributors," play a central role in promoting and selling products or services to their personal networks and beyond. Direct sales companies typically provide sales materials, training, and support to their representatives. Representatives earn commissions on their sales and may also recruit and earn bonuses from new sales representatives they bring into the organization.
History:The direct sales model has a long history, with roots dating back to the late 19th century. Here are some key points in the history of direct sales:
Late 1800s: The direct sales model began to take shape in the late 1800s with the emergence of door-to-door salespeople who sold products like books, cleaning supplies, and encyclopedias directly to consumers.
Early 20th Century: The direct sales industry expanded with the growth of companies like Avon (founded in 1886) and Tupperware (founded in 1946), which relied on a network of independent sales representatives who held home parties to demonstrate and sell products.
Mid-20th Century: The direct sales industry continued to grow in the mid-20th century, with companies like Amway (founded in 1959) and Mary Kay (founded in 1963) adopting direct sales and multi-level marketing (MLM) models.
Late 20th Century: The direct sales industry diversified, encompassing a wide range of products and services, including cosmetics, nutritional supplements, home goods, and more. MLM companies like Herbalife and Nu Skin gained prominence.
21st Century: Direct sales adapted to the digital age, with the emergence of online direct sales and e-commerce platforms. Companies like Rodan + Fields and Younique allowed representatives to sell products online and build virtual teams.
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