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Glossary Terms
Compass - The Only Sales Glossary You Need
Direct sales is a method of selling products or services directly to customers, without the involvement of intermediaries such as wholesalers, retailers, or middlemen. This method is also known as network marketing, multilevel marketing, or door-to-door selling.
Direct sales refer to the process of selling products or services to customers directly, without the use of intermediary channels such as wholesalers or retailers. In direct sales, a company's sales representatives interact with potential customers one-on-one, whether through face-to-face meetings, phone calls, or online communication.
Direct sales can take various forms, including door-to-door selling, person-to-person selling, and online selling. This sales method allows companies to have greater control over the management of their sales processes, including pricing, inventory, and customer relationships.
Outsourced direct sales and marketing is when a company hires an external agency or team to handle sales and promotional activities.
These outsourced teams engage directly with customers to sell products or services, often bringing specialized expertise and reducing internal overhead.
Direct sales offer several key benefits:
An example of a direct sale is a skincare consultant selling products door-to-door or through a personal network. The transaction occurs directly between the consultant and the customer without involving retailers or third-party sellers.
The five direct sales strategies are as follows:
The direct sales process typically includes:
Yes, sales commission is considered a direct cost. It directly correlates to sales activity and varies based on the number of units sold, making it a variable expense tied to revenue generation.
Product costs are matched directly with sales revenue when a product is sold.
This aligns with the matching principle in accounting, ensuring expenses are recorded in the same period as the related revenue, giving a more accurate picture of profitability.
Direct sales means selling directly to consumers without intermediaries. Key steps include:
To build a strong direct sales team:
Boost direct sales with these strategies:
