The direct sales industry is both ancient and vibrant. Simply put, direct sales is a model in which products are introduced to consumers face-to-face by manufacturers or distributors through independent representatives or distributors, without going through traditional sales channels such as shopping malls and supermarkets. This is like a manufacturer moving the sales counter of their product directly to the customer’s home, which not only shortens the sales channel but also better meets the customer’s needs.

The characteristic of the direct sales industry is the coexistence of advantages and pain points. Its advantages lie in:

Price advantage: Direct sales can bypass traditional retail channels, reduce intermediate costs, and thus have a price advantage.

Flexible employment opportunities: Direct sales can also create flexible employment opportunities, especially in the lower tier market, attracting many part-time or low skilled workers.

Customer Relationship: Customer relationships established through “face-to-face service+emotional marketing” often result in higher repurchase rates and loyalty.

However, the direct sales industry also has its pain points:

Risk of illegal pyramid schemes: Some companies are suspected of pyramid schemes and false advertising, leading to a blurred understanding of the boundary between direct sales and illegal pyramid schemes among the public, and a long-term crisis of trust.

Intense market competition: Traditional direct sales categories such as health products and cosmetics are facing direct impact from e-commerce platforms and new consumer brands, resulting in fierce market competition.

The operation mode of the direct sales industry is diverse, commonly including dual track system, dual track+differential+e-commerce, and solar line.

Dual track system: Developing two vertical tracks, progressive layer by layer, simple and easy to replicate, but prone to the phenomenon of “elephant legs”.

Dual track+differential+e-commerce: This is the latest model in the direct sales industry, which combines multiple excellent genes, flexible institutional reforms, low entry barriers, and is suitable for people with a low-cost investment mentality.

Sunline: Everyone has the opportunity to lead their own team, and the structure of the entire team is like the sun radiating light in all directions, but in the later stages, they may lose control of the team.

I hope this information can help you better understand the direct sales industry! Do you have any views or experience on direct sales marketing? We can chat together!