2nd Floor, Om Apartments, Pune
+91 - 9595 271 145 / +91 - 9284 293 227 info@csladda.com

NOTE ON DIRECT SELLING / NETWORK MARKETING

SUB: NOTE ON DIRECT SELLING / NETWORK MARKETING

A. Introduction

Direct selling/Neteork Marketing is selling products directly to consumers in a non-retail environment. Instead, sales occur at home, work, online, or other non-store locations. Direct selling, also known as person-to-person retail, is a business model where people sell products directly to other people.

B. What Is Direct Selling/ Network Marketing?

With direct selling, distributors avoid intermediaries in the supply chain and sell products directly to consumers. In traditional retail settings, products are sold online or
at a physical store, but direct selling relies heavily on salespeople getting in front of customers in non-traditional settings.

C. How Direct Selling/ Network Marketing Works?

Direct selling eliminates several intermediaries involved in product distribution, such as the regional distribution center and wholesaler. Instead, products go from the manufacturer to the direct sales company, then to the distributor or rep, and finally to the consumer. The products sold through direct sales are usually not found in typical retail locations, which means finding a distributor or rep is the only method to buy the products or services.

Direct selling is usually associated with party-plan and network marketing companies. Although these companies use direct sales, they aren’t the only ones; many businesses that sell business-2-business (B2B) use direct selling to target and sell to their end customers. For instance, many companies that sell advertising or office supplies will send their reps directly into the stores that can use their services. Don’t confuse direct selling with direct marketing.

Direct selling takes place when individual sales people directly reach out to consumers, whereas direct marketing involves a company marketing directly to the consumer.

D. Types of Direct Selling/ Network Marketing :

There are a variety of ways business owners can utilize direct selling, including:
•Single-level direct sales
•Host or party-plan sales
•Multi-level marketing
Single-level direct sales are typically performed one-on-one through door-to-door or inperson presentations, online meetings, or catalogues. Generally, income is earned on sales commissions, with possible bonuses for reaching target goals. Host or party-plan sales are made in a group setting, usually involving the distributor or rep doing a
presentation in their home or a potential customer’s home.

PLACE OF RENDERING SERVICES.

The place of rendering services generally shall be our office situated at 2nd Floor, 496/B, Om Apartment, Near KCC Classes, Kasba Peth, Pune – 411 011, Maharashtra, India.

Pramodkumar R. Ladda
Company Secretary & Insolvency Professional

Tel: +91-20-24570055 | Office Cell : +91- 9284293227, 9309845448, 8080051671 |
Personal Mob. : +91- 7972422151, 9595271145 |
Skype id: pramodladda
info@csladda.com | http;//www.csladda.com

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