The direct selling business model operates on a person-to-person basis, bypassing traditional retail channels. Direct sellers may be independent contractors, employees, or business owners who earn income through sales commissions and bonuses. Companies like Avon, Amway, and Tupperware are famous for employing this business model. The key components include:
- Product Sales: The primary revenue source is the sale of products. - Recruitment: Many direct selling companies encourage sellers to recruit others to join the business, sometimes leading to a multi-level marketing (MLM) structure. - Training and Support: Companies provide training and resources to help sellers succeed.