THE CROATIAN DIRECT SELLING ASSOCIATION
Frequently asked questions
Who is involved in direct selling?
Most direct sellers are women, although nearly a third are men or two-person teams such as couples. The vast majority are independent business people – micro-entrepreneurs whose purpose is to sell the product and/or services of the company they voluntarily choose to represent – not employees of the company. Approximately 90 percent of all direct sellers operate their businesses part-time.
What products and services are sold through direct selling?
Virtually every consumer product or service can be purchased through direct selling. People who purchase through direct selling say that product quality, uniqueness and money-back guarantees are the top reasons for shopping through direct selling.
What is the difference between direct selling and direct marketing?
Direct selling is selling a product or service in either a person-to-person or presentation method. Direct marketing involves sales through the catalogues.
What is the difference between direct selling and network marketing?
Direct selling refers to a distribution method, whereas network marketing refers more specifically to a type of compensation plan found in direct selling. A direct selling company that offers a multilevel compensation plan pays its representatives/distributors based not only on one’s own product sales, but on the product sales of one’s “downline” (the people a representative/distributor has brought into the business, and, in turn, the people they have brought into the business).
What is the difference between single level and multilevel payment system?
A single level payment system involves a representative/distributor who is compensated based solely on one’s own product sales. In a multilevel payment system representatives/distributors are compensated based not only on one’s own product sales, but on the product sales of one’s "downline".
History of direct sales
Direct sales is considered as the oldest channel of distribution of goods and services in the history of mankind. It is a part of basic need of humans for exchanging of goods and mutual communication. In the middle ages persons engaged in direct sales were called „peddlers“ and they contributed to development of trade by bringing news from large cities into small villages. Rural areas and smaller towns were supplied with basic goods exclusively by sale merchants. In the first half of the 20th century goods like vacuum cleaners or washing machines were sold via direct sales. At that time such products were revolutionary and presentation and demonstration of the products were necessary in order to find a way to the buyers. Such presentation and demonstration could be rendered only by a person engaged in direct sales. In the begging of the 21st century direct sales is a dynamic, vital and rapidly developing sector which offers a possibility of earning to millions of sellers throughout the World.
How many companies engage in direct selling?
It is impossible to estimate the number of direct selling companies operating at any given time. This is a result of several factors. First, most states do not require direct selling companies to register as such. Therefore, no exhaustive list exists. Second, as with any business, many direct selling companies do not thrive in the direct selling market and have a relatively short life span. In fact, many companies may even come and go before they could even be “counted.”