Why is this type of trading so popular in different parts of the world? Below we have compiled the main advantages:

The ability to adapt the product to the needs of customers. Companies that are engaged in direct sales control the entire cycle of selling goods, from their production to sale. This approach allows the brand to quickly receive customer feedback and adapt its products to customer needs and market trends.
Personalization. Through personal interaction with buyers, sellers better understand their pains and desires, so they can make relevant and personalized offers. This affects the company's income. According to statistics, 91% of consumers are more likely to buy from brands that provide relevant offers and product recommendations.
Control at every stage of interaction with customers. The company has full control over the price of its product and can adapt it to the needs of customers, as there are no intermediaries. Brands independently regulate the quality of customer service during the purchase and have lower reputational risks.
Strong relationships with customers. The basis of direct sales is personal contact with customers. This allows the company to use an individual approach to each client and build long-term relationships with them. Increasing customer retention by at least 5% increases profits, by 25% - 95%.
High margins. Another advantage of the absence of intermediaries is that all income is returned to the company. There is no need to divide it between the business and third parties.
What is the difference between direct and indirect sales?
In the direct selling model, the brand interacts with customers on its own. A great example is Boeing. This manufacturer offers its products directly to potential customers – airlines.

Indirect sales, on the contrary, require the involvement of intermediaries - distribution centers, wholesalers, regional representatives, and so on. This model is used by Coca-Cola. Customers buy their favorite drink from third-party suppliers, not from the company's website.

Rating of direct selling companies
When it comes to the list of the largest direct selling companies, the top leaders are network marketing brands. Below you can see the five largest companies by revenue:

Amway. An American company that sells beauty products, health products, household chemicals, dietary supplements, and more.
Herbalife Nutrition. A global MLM corporation that develops and sells dietary supplements, sports nutrition, weight normalization products, and cosmetics.
Avon. A multi-level marketing company headquartered in the UK. Avon specializes in cosmetics, household items, and personal care products.
Vorwerk. A German brand that sells home appliances, clothing, accessories, cosmetics, home décor, kitchenware, and personal care products.
Natura. A global corporation from Brazil with 6400 permanent employees and 1.7 million sellers. This brand sells cosmetics and personal care products.
The sales volume of these companies is impressive. See what the rating published by the authoritative publication Direct Selling News looks like. Please note that Amway's revenue for 2019 was $8.4 billion.

Types of direct sales
Information about the types of direct selling is contradictory, so people often get confused about the definitions. As a rule, the classification includes two categories:

Single-level sales. The seller receives a commission for the sale of products. For example, an employee of an advertising agency is charged a percentage of the amount of services sold.
Multi-level sales. A company representative not only sells goods or services, but also recruits new sellers. They are rewarded for both their own sales and those made by the people they have attracted. This approach is popular among MLM companies.
Direct Selling Methods
Salespeople apply different communication approaches to their customers. Let's take a look at some of them.

Individual sales. This method involves personal communication with the buyer. A salesperson goes to an individual business meeting with a client or addresses passers-by on the street to present their products.
Online sales. A favorite method of single-level and multi-level brands. Huge international MLM companies, as well as small businesses and local representatives, sell products and services through their own websites or social media accounts.
Meeting in the format of a presentation or party. The salesperson gathers a group of buyers and introduces the product to them. Meetings are held in a relaxed atmosphere. A friendly atmosphere encourages customers to socialize and shop. Meetings can take place both in a rented hall or café, and in the office.
How to Use Direct Selling
Direct selling has its own characteristics. For example, it's important to invest more in improving the team's sales skills. Here are the top five best practices for success in direct selling.

Set goals. They are the motivator and foundation of success. To be effective, your goals need to be specific and measurable, such as "increase revenue by 15% in the third quarter."
Define your target audience. Having a clear understanding of who your target customer is is key to increasing sales and ROI. Make a portrait of the buyer, collect data such as age, profession, place of work, lifestyle, habits, interests, pains, and so on.
Create a sales strategy and think over KPIs. A strategy will allow you to meet customer needs, increase ROI, and shorten the sales cycle. KPIs will help you track the achievement of your goals and the success of your business strategy. Regularly review performance indicators to assess performance, identify gaps in strategy, and find solutions.
Combine sales and marketing. Marketing and lead generation are key for any business. Develop a detailed plan for how to target potential customers. For better results, combine sales and advertising efforts. Marketing will help increase sales by attracting warm leads and will allow you to collect more information about buyers from sellers.
Study the stages of the sale and implement them. Think about how to engage with your audience at each level of the sales funnel. The process includes the ability to recognize a potential buyer, introduce your product to them, work through all objections, close the deal, and keep in touch in the future to increase loyalty.

Add the internet marketing tools below to your strategy to boost your direct sales.

Create a blog
No matter what industry you're in, blogging is an effective way to promote a business. Businesses that blog attract more website visitors. With its help, brands build strong trusting relationships with the target audience and convert them into buyers.

To achieve high results, make your blog as interesting as possible for potential customers. Publish not only your company's news, but also useful articles.

Use Lead Magnets
If you have a blog or website, use a lead magnet — a special offer for the target audience in exchange for an email address. A lead magnet can be anything you are ready to offer to users, for example: a discount, a gift for a purchase, a pdf book, a checklist, additional services, and much more. After a person fills out the subscription form, they will continue their journey through the sales funnel using email campaigns or messenger marketing.

Use SendPulse to quickly create a catchy lead magnet. The intuitive interface of the form builder will help you develop a free omnichannel subscription form in just a few minutes to enrich the subscriber base of email newsletters and chatbots.

Connect SMM
Social media is a great way to engage with your audience. Almost half of the world's population spends about 2.5 hours daily on social networks. With their help, companies attract potential customers and increase their brand awareness. According to statistics, in 2019, 54% of internet users used social media to search for products.

Another reason for social media communication is to build a strong community around your brand.

See how Avon maintains an Instagram profile. To strengthen its relationships with customers, the company attracts influencers, publishes useful recommendations and video tutorials, and regularly motivates the audience to share their opinions in the comments. To increase engagement and attract new subscribers, Avon often holds contests.

Use email marketing
Email campaigns are one of the most powerful tools for increasing sales — in 2019, every dollar invested in email marketing brought $42 in profit. With this channel, you can engage your customers and send them special offers. About 60% of people prefer to receive promotional messages by email. To increase sales with email campaigns, send product selections and offer personal discounts.

See how the Lamoda online store does it. In the email below, the company emphasized the uniqueness of the offer with the phrase "subscribers only" and added a "You may like" section to motivate users to make purchases.

Promote your brand with influencers
Approximately 48% of marketers claim that the ROI from influencers is higher than that of other marketing channels. Cooperation with opinion leaders is a successful way to promote. Therefore, influencers are attracted in many industries.

However, do not think that opinion leaders work effectively only in the field of cosmetics and health. Even if a company is a B2B direct selling, there will always be people that your target audience listens to. For example, if you offer hiring and HR software, find and contact an influential and respected professional in the field on Facebook.

5 Direct Selling Techniques
Direct selling requires certain skills and approaches from the seller. True virtuosos in this field can convince the client that by buying your product, he is making the right decision. To achieve results, sellers use different methods. Below we have prepared five common techniques.

FAB (features – advantages – benefits). Most scripts, landing pages, and promotional materials use this scheme. First, the client is told about the properties of the product, then its main advantages are emphasized, and at the end the key benefits of using the product are described. This approach helps to argue the value of the offer and overcome possible objections.
SNAP (Simple, iNvaluable, Algin, Priorities). This technique requires sellers to remain flexible and put themselves in the shoes of the buyer. The main thing is to "speak the same language with him", prove yourself as an expert, negotiate with the client, and not put pressure on him, and set priorities correctly.
From small to large or "foot-in-the-door". Ideal technique for upselling and upselling. The essence is to gradually increase the level of trust and loyalty. First, the client is offered to buy an inexpensive product, and then they make a more expensive offer. The fact is that it is easier for a person to decide on a small purchase, and after receiving a positive experience with the brand, he is more likely to make the next one.
SPIN sales. This technique is based on four types of questions that are asked in a certain sequence so that the client himself identifies his problem and comes to the desired conclusion. First, the person is asked to talk about the situation (S), then they are led to the problem statement (P), then extractive questions are asked (I) so that the client understands the depth of the problem, and finally, with the help of guiding questions (N), they lead to the desired solution.
Technique of gaining favor. Motivates a potential customer to take advantage of the brand's products and services through a free trial, discount, or additional services. Such equipment allows you to demonstrate the quality of the company's products and gain trust.

You can use these techniques not only for personal communication with the client, but also for online marketing. Increase the effectiveness of direct sales with email campaigns, chatbots, SMS and web push notifications.