Employing a direct sales force involves setting up a network of distributors to sell your products for you. This can be a very beneficial sales model that helps you increase your sales as well as lower your costs overall. Many products are sold with this type of arrangement and more direct sales businesses are starting every day.
One of the biggest benefits of using a direct sales force is that you can increase your sales substantially. Many companies that have switched over to a direct sales method have found that their sales have increased significantly. This happens because their products are getting out to a larger network of people. Distributors are sharing the products and more sales are being made.
Another benefit of using a direct sales force is that you can lower your business costs. With this type of business model, you do not have to spend any money on advertising. If you have ever tried to utilize advertising before, you know how much money you could potentially waste if the advertising does not work. With this model, you only have to pay the distributor for the sale. You can lower your overall costs and increase your sales at the same time.
With this type of business model, you also get to benefit from guaranteed sales. You do not have to pay a dime to anyone until you have a sale generated. The distributor goes out and sells your products or services. Then you pay the distributor for the commission that he has earned. With this model, you can control costs much more effectively and you know that you can bring in a profit because you already have the sale before you have to pay anything out.
Word of Mouth
Most business owners realize that the most powerful form of marketing is word-of-mouth advertising. A happy customer is one of your best sales agents. They will tell all of their friends about your products and services. With direct sales, you are relying on a sales force to tell their friends and family about your products. If the person believes in your products, he will be able to convey this belief to his close contacts. Word of mouth does not cost anything and it is much more effective than any other type of marketing available.
With this business model, you do not have to make a large initial investment. You simply have to come up with a compensation plan for your distributors and recruit a few initial distributors to get started. Then the distributors that you recruit will take care of the rest.