I know a lot of people who hold lots of misconceptions about DIRECT SELLING. The main misconception is that it is a MLM Scam. Nothing can be further from the truth.
Basic Distinctions
MLM - thrives on referrals
Direct Selling - thrives on sales and then on referral
MLM - needs you to pay to join the program
Direct Selling - Do not require any joining fee apart from getting a business kit to kick start your direct selling venture (Now people may see this as a joining fee but if you do not know what products you are dealing with or what compensation plans are in place and how you will receive your payments, how are you going to explain this to your customers or potential partners?)
MLM - No products
Direct Selling - Product ranges are available depending on the direct selling industry you join. It can range from energy to wellness to beauty to tupper wares.
Take a simple scenario. You walk into a BodyShop outlet (I like their products so I am using it as a an example) and find this amazing perfume. You buy it and you apply it on your next outing and your friends or relatives ask you what you are wearing and you start with where you bought it, the price, the scent and so on.... The next day, they end up at BodyShop and buy the same product. Well, you referred a good product which they liked and they ended up buying it. Suppose BodyShop is a direct selling company. You will actually get a referral fee and you can actually buy at member price and sell at retail price making a profit. What is the difference? YES! you make money! That is direct selling. What is the scam in that?
Recently, I bought a coconut breaker equipment from a steelware shop. I happen to share this with my sis-in-law and she was excited about it. We used to have this sickle type of thing which we use to break coconuts and for a person who is not very careful, you could end up getting hit on your arms from time to time. So this thing was really simple. You just keep that coconut breaker on the floor and slam the coconut on it. The water just flows into the container and the coconut breaks into a beautiful halves. 2 weeks later, I had a party at my place and all the ladies who attended ended up buying that thing the next day. Hmmm... now, if only i got paid for the referrals, I would have easily made some quick money.
Anyway, I just get a little mystified and dejected when people just ignore something because someone is getting paid for referring it. I am sure you guys who are involved in direct selling face this kind of issues as well. If you do, do let me know by posting comments. Also, I wrote an article on basic things you should know as a direct seller for those who are starting out. Do read and let me know how I can make it better. Thanks.
Basic Distinctions
MLM - thrives on referrals
Direct Selling - thrives on sales and then on referral
MLM - needs you to pay to join the program
Direct Selling - Do not require any joining fee apart from getting a business kit to kick start your direct selling venture (Now people may see this as a joining fee but if you do not know what products you are dealing with or what compensation plans are in place and how you will receive your payments, how are you going to explain this to your customers or potential partners?)
MLM - No products
Direct Selling - Product ranges are available depending on the direct selling industry you join. It can range from energy to wellness to beauty to tupper wares.
Take a simple scenario. You walk into a BodyShop outlet (I like their products so I am using it as a an example) and find this amazing perfume. You buy it and you apply it on your next outing and your friends or relatives ask you what you are wearing and you start with where you bought it, the price, the scent and so on.... The next day, they end up at BodyShop and buy the same product. Well, you referred a good product which they liked and they ended up buying it. Suppose BodyShop is a direct selling company. You will actually get a referral fee and you can actually buy at member price and sell at retail price making a profit. What is the difference? YES! you make money! That is direct selling. What is the scam in that?
Recently, I bought a coconut breaker equipment from a steelware shop. I happen to share this with my sis-in-law and she was excited about it. We used to have this sickle type of thing which we use to break coconuts and for a person who is not very careful, you could end up getting hit on your arms from time to time. So this thing was really simple. You just keep that coconut breaker on the floor and slam the coconut on it. The water just flows into the container and the coconut breaks into a beautiful halves. 2 weeks later, I had a party at my place and all the ladies who attended ended up buying that thing the next day. Hmmm... now, if only i got paid for the referrals, I would have easily made some quick money.
Anyway, I just get a little mystified and dejected when people just ignore something because someone is getting paid for referring it. I am sure you guys who are involved in direct selling face this kind of issues as well. If you do, do let me know by posting comments. Also, I wrote an article on basic things you should know as a direct seller for those who are starting out. Do read and let me know how I can make it better. Thanks.
