Most people are familiar with the terms MLM and network marketing but might raise their eyebrows at direct marketing network. It can be confusing since there isn’t a single definition and different people will define it differently. For some, it is a group of direct sales marketers who band together to exchange information and tips regardless of the products each sells. Others think of direct marketing networks as being more like network marketing but with more of a focus on selling products to consumers than recruiting new members for the business.
Many businesses that started out as all or mostly direct sales have become a combination of direct sales and network marketing. Some of the better known ones include Avon and Tupperware. Avon was door to door sales and representatives were assigned to specific territories. This later changed as more women entered the workforce. Representatives no longer had to sell only in specific neighborhoods. When the internet came along, Avon didn’t take too long in becoming a presence online. More representatives began networking and recruiting as Avon’s business model adapted.
Tupperware experience a similar transformation though their beginnings were a bit different. Tupperware was well known for home parties to sell products. Representatives would book parties by encouraging the hostess of one to ask her guests to consider booking a home party at hers so she got a discount or free products. If a guest also signed up as a representative, it benefited both the hostess and the representative. Home parties are still done but Tupperware has also made the jump to selling and recruiting online. Tupperware offers several ways for people to buy products. You can host a home party, an online party or simply place an order online without hosting at all.
Avon and Tupperware are just two examples of companies that transitioned from direct sales to direct marketing network companies. One company that has always been pretty much a combination of direct sales and network marketing is Shaklee. Distributers sold products directly to consumers and recruited new distributors. They also often kept top selling products in stock so they could be delivered faster. Now, distributors don’t need to keep stock on hand and do a large portion of their selling online with products shipped directly to the buyer rather than to the distributor for delivery.
The internet has made direct sales easier for many companies and has led to more networking among the representatives of those companies. Now, much of the training is online so new reps do not need to attend training seminars and meetings at specific times and locations. At one time, it was thought the internet might mean the end of companies that focused on direct sales marketing but they have adapted and grown bigger than ever. They offer more opportunities for both joining as representatives and being customers. Direct marketing networks are worth checking out no matter what your definition is. Either way, the opportunity to connect with others in direct marketing benefits sales.