Direct Sales vs. Network Marketing

Chapter 40 - Direct Sales vs. Network Marketing (Order on Amazon)

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Throughout the industry, the terms direct selling and network marketing have been used interchangeably. While they both involve sales, their activities are somewhat different.

Modern direct selling includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales. Some sources have defined direct selling as: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs.

Direct selling consists of two main business models: single-level marketing, in which a direct seller makes money by buying products from a parent organization and selling them directly to customers, and multi-level marketing (also known as network marketing or person-to-person marketing), in which the direct seller may earn money from both direct sales to customers and by sponsoring new direct sellers and potentially earning a commission from their efforts. Read more ...

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