Saturday, May 24, 2008

Direct Selling Versus Network Marketing

Direct Selling and Network Marketing primarily involve sales.

Both direct selling and network marketing focuses on the product or service they’re offering. But I don’t totally agree with its meaning or description in Wikipedia. Perhaps because it varies depending how it is done in certain countries. For instance, like here in the Philippines when you say Direct Selling the people are familiar with Avon, Sara Lee now Fuller Life, Tupperware, Sundance etc. A dispersal of catalogues and brochures would do. There’s less talk and no further explanation needed. For a description is provided in the brochures. It is not like there’s no sales tactics involved but the strategies to get or make a sale is already spelled out in print in the brochures. Effective communication is still required for a seller to know the specific wants of his or her customers. Maintaining customers’ interest and loyalty will later turn to customer satisfaction and trust.

Direct selling goes hand in hand with direct marketing. In the sense that, direct selling becomes a marketing medium that can be used to sell anything. Product ranges from toiletries, herbal and food supplements, apparel, intimate apparel, cosmetics, fragrances and fashion jewelry, books, storage and serving products, vacuum cleaners and other home appliances, and water purifiers.

But network marketing does not engage solely on products or service it renders. The essence of which is to build a network or networks or groups of people to help the pioneer or initiator achieve his or her goals as well as help others or his team or group to achieve success on their goals too.

It does not merely focus on one’s personal success but also its team or down lines.

It encompasses another’s success. It expands to its team members. The leader who made it first must lead by example and here lies the distinction between direct selling. The leader must begin within his self to carry out and mentor his team in doing the company’s business. Aside from the training considered necessary, the leader or up line guides his subordinates or down lines in presentations, meetings, demonstrations and warm and cold calling until such time he can lead his own down lines along the way to success.

Carrying a wide range of goods is to be credited in the direct selling medium. Having the ability to carry a wide variety of goods can be sometimes mistaken as a supernatural ability. Frankly, I’m amazed by network marketers and direct sellers. I sometimes mistake their ability to carry a wide range of products as a supernatural power.

Why do I see it as a supernatural power?

Successful direct sellers and network marketers have mastered themselves. Mastering ourselves? Is that really possible? If they have achieved it and conquered their rejections, refusals, depression, humiliation, shame and ridicule they can truly be called masters for they willingly did it so.

Worth noting about direct selling is customer satisfaction. Quality of product, uniqueness and money-back guarantees are the top reasons of shopping through direct selling from talented entrepreneurs. Add to that less hassle in shopping. Imagine no more aching heels from long walks hopping at malls searching for that perfect item to buy, no need to use your car and forget where you parked it when you’re done with your shopping, farewell to wasted lengthy minutes or hours from long lines while waiting for your turn to pay for your purchased item, no more dashing to the malls during peak seasons, end your futile attempt at boutiques and shops for scouting that impeccable pair of shoes, in short eliminate the all-consuming energy draining when you shop. There is convenience in buying products through direct sellers. A direct seller deals only with one of his buyers at a time. Personalized service is the core of direct selling.

Unique, best modify the direct selling profession. It does not require educational degree, experience, financial resource or physical condition. Earn more while having to invest less is an advantage of direct sellers. With just a small initial capital, it could grow into boundless leaps. On the other hand, network marketers engage in business presentations and meetings, trainings, warm and cold calling, equipped also with a heavy business portfolio and an all ready business package (a set of products for a specific need). This requires a larger amount for a start up package. In Direct Selling and Network Marketing are not advertisement driven companies unlike its retail counterparts. Both do not invest much in advertisement. Thus, these companies direct sellers sell in fact save much which is then passed on as substantial commissions to its dealers and distributors. In some respect, this is a form of owning your own business. You become your own boss. This means you can work full-time or part-time. You get to choose and set up yourself when and how you work. This is where you set your own goals and determine how to reach them. Be rewarded by how much effort you put in your business. In networking, you build your organization by building your group through your invited prospects.

To recapitulate, network marketing and direct selling are geared towards making sales. But they differ in approach. Direct selling relies on franchising while network marketing uses leveraging. Leadership on the first one is subjective and with a sense of individualism, the latter is objective, holistic through a team of networks run by a driven goal-oriented leader.

2 comments:

Anonymous said...

Business networking, or network marketing, can be a gold mine for Business entrepreneurs.
Business Networking
is a marketing strategy with far reaching benefits from publicity to business development and increased sales. It is a process where business people come together with a mutual intent--to build business by building business relationships.

A Marketer's Ramblings said...

Yes, I definite agree with you. You build a network of business companies and people where business relationships develops as each buisiness fluorishes.