Direct selling has been in vogue for a very long time. Direct selling companies are committed to not only bringing quality products to the global audience, but also a quality of life that can, and does, change lives. It refers to selling products directly to the consumer in a non-retail environment. Instead, sales occur at home, work, online, or other non-store locations. By design, direct selling firms rely more on the selling skills of their sales force rather than advertising. Direct salespeople are usually independent contractors, not company employers, and opportunities with direct selling companies are open to persons from all backgrounds, experience levels, and personal characteristics. The products found in direct selling are usually not found in retail shops. Direct selling companies sell their products directly to the consumer, and QNET is one of the top growing direct selling companies. Earlier direct selling constituted small vendors going door to door selling their products like earthen pots, bangles, toys etc. If we go by the words of the world economic forum, India is going to be in the top 3 in the world consumer market. India is already in the top 100 countries in the consumer market and is known as the hub for direct selling in South Asia.
Direct selling in India
India’s population is equivalent to 17.71% of the total world population, with a 6.1% unemployment rate. People in India are desperate to get a job or start earning as soon as possible. Most of India’s population is middle class. Middle-class people are always finding a way to turn the tables and earn a little extra to survive in this dire economy.
Direct selling acts as a ray of hope in such situations as it opens up doors for new possibilities. It creates employment for people across ages.
Direct selling and women empowerment
Direct selling has been empowering women across the world. It has given them various opportunities to grow and support themselves or their families. It has to be one of the most empowering businesses out there, which gives you the power to run your own business in your own way.
Direct selling empowers more than 80% of all the 90 million people involved in this business. It has to be one of the largest, fastest-growing businesses that there is. Age and gender are no matter when it comes to this line of business.
Creating employment opportunities
Direct selling is creating numerous employment opportunities all across the world. In a country like India, with its vast population, it can work wonders. People who are willing to put in extra hard work can achieve milestones in this business.
India is set to have the youngest workforce by 2025. With the rise of entrepreneurship and a growing appetite for financial independence, it is also becoming a viable career option for this demographic.
The more you learn about this line of business, the clearer it gets as to how this is helping people grow in numerous ways. It is one of the most empowering businesses out there. Just like any other business, you should have a strong gut to thrive in direct selling; you will face multiple challenges daily but you should have the courage to stare at those challenges in the eye and crush them.
Why Direct Selling?
DS offers important benefits to people who want an opportunity to earn income and build a business of their own, to consumers as an alternative to retail stores, and a cost-effective way for businesses to bring products to market.
Here are some key reasons why you should join this business:
Flexible work hours
Direct selling had flexible work hours way before it was a trend. It also offers you the benefit of working from the comfort of your own home. You put in the hours that you think are necessary for the growth of your business.
Innovative and diverse range of products
The products that you find in a direct selling company won’t be the ones that you can find in normal shops and retail markets. These products are very new and innovative. Take QNET’s Diaba health and Natose, for example. Natose is a natural sweetener and has practically no calories, and Diaba health is an ayurvedic product for diabetic patients that has been a miracle product for some. There are various such products out there that you’d only find in a direct selling firm.
Being your own boss
Yes, direct selling provides you a chance to be your own boss. You are in charge of how you want to approach the business. You make the decisions on how you want to sell your products and who you want to sell your product to. This gives you the flexibility to decide who, what, when, where and how you want to approach someone and/or sell your product.
Challenges faced in direct selling
Direct selling is no easy business. Every day brings out new opportunities and with that, new challenges. Every business is affected by technological, cultural, political, and lifestyle changes. Direct selling companies are no different.
A study by ASSOCHAM, released in 2018, quantified that the industry will reach INR 15,930 crore by 2021. The survey also stated that the industry has doubled since 2011 reaching INR 12,620 crore in 2016.
Like any other business, there are challenges in direct selling like getting prospective customers, giving your pitch and the most crucial -convincing
Although their names are similar – direct selling and direct marketing – they are very different industries — the advantages and disadvantages of direct marketing are not associated with those of direct sales.
WIDESPREAD CHALLENGES
Prospecting
When you are prospecting a client, it is very important to remember the “need”. Ask yourself, how would this be beneficial for this person. Approach him/her keeping a stronghold on that point. It is often very difficult getting the right prospects and prospecting can become really stressful when you keep getting rejections back to back. However, prospecting right will get you ahead in the game.
Pitching
The step after prospecting is pitching. Pitching is something that would require you to have certain skills, and you ought to be damn good at it. To excel in direct selling, you need to have good convincing skills. You should be able to talk to people and be so enigmatic that they stay engaged in your pitch. There are so many successful marketers out there with so many educational videos on how to make the perfect pitch and to learn the right way to pitch your ideas
Knowing the competition
Direct selling is a 200-billion-dollar business and a lot of companies prefer this business as a way to go because it creates revenues like no other business. And so, it has a lot of competition. Therefore, when you are in this business, you should be well aware of your competition. Companies like AMWAY, QNET, ORIFLAME are the big dogs when it comes to the direct selling business. You should be aware of their line of products, their new launches, and their pitching styles.
Amway has been facing backlash for a while now, I have a friend who was a part of Amway and she had to go through so many issues because of it. She said she felt like she was a part of a cult-like group. They made her spend so much on seminars and one-time use materials.
It becomes very difficult to work in an environment where you don’t feel free running a business that people call their own.
Growing in a direct selling business requires a lot of quick wit as well; you need to work hard, and you need to be quick about it.
I believe rather than getting envious about the better products or anything of that sort, you should focus on the points that make your competitor stand out and inspire yourself to become better and grow in the aspect of business.
Facing mountains of challenges every day
Direct selling is a business that prepares you every step of the way. In this business, you will encounter various challenges that are bound to shape you into a person that can face anything the world throws at him.
In direct selling, you will face challenges like rejection, widespread misconceptions among people about direct selling, rumors associated with DS, and worst of all, people calling this a fraud. When you go through such things as a routine, you get better at how you routinely handle these distractions.
Direct selling guidelines in India
In India, the direct selling business module was first witnessed in the year 1980; however, it remained at a very limited scale owing to various reasons. Direct selling didn’t see the light of growth because of unclear legislative guidelines.
The guidelines were issued on 12th September 2016 as guiding principles for State Governments and Union Territories. These guidelines asked all direct selling entities in the country to, within 90 days of issue of these guidelines, submit an undertaking with Department of Consumer Affairs ( Ministry of Consumer Affairs, Food and Public Distribution, GOI ) confirming that they have complied with these guidelines and also provide details about its incorporation, and, other details/information, as may be notified by the government from time to time.
Every direct selling entity (DSE) must follow these certain guidelines to operate legally in India. Some of the important guidelines are:
1. It shall be the owner, holder, licensee of a trademark, service mark or any other identification mark which identifies the entity with the goods to be sold or supplied or services to be rendered.
2. It shall issue proper identity document(s) to its direct sellers.
3.It shall maintain proper records of business dealings of direct sellers either manually or electronically
4. It shall maintain proper and updated website giving the prescribed information.
5. It shall provide all direct sellers their periodic account / information.
6. It shall monitor the value of the purchases of all its direct sellers/distributors on a monthly basis and once the purchase value crosses the VAT threshold, it must intimate the direct seller/distributor to pay the VAT
7. No DSE will use misleading, deceptive or unfair recruiting practices, make any factual representation to a prospective direct seller that cannot be verified or make any promise that cannot be fulfilled.
8. No DSE will present any advantages of DS to any prospective direct seller falsely or deceptively, make any representation which is false or misleading, use, or cause or permit to be used, fraud, coercion, harassment, or unconscionable or unlawful means in promoting its DS practice.
9. No DSE will require its direct sellers to provide any benefit, including entry fees and renewal fees, or to purchase any sales demonstration equipment or material in order to participate in its DS operations.
10. Direct selling company cannot force its direct sellers to purchase more goods or service than they can expect to consume or sell.
There are various points in the guidelines mentioned for consumer protection. Direct sellers and DSE shall take appropriate steps to ensure the protection of all private information provided by a consumer and shall be guided by the provision of the Consumer Protection Act 1986
Every DSE shall constitute a Grievance Redressal Committee, whose composition and nature of grievance shall be in accordance with the conditions prescribed in the guidelines.
All of these guidelines are made to make sure that the customer rights are protected, and no Ponzi schemes are encouraged. Thus, what constitutes to be a direct selling is based on four conditions, that aredirect selling has to be marketing, distribution, and selling of the goods and services as a part of network of direct selling. all of these conditions need to be qualified simultaneously for determining direct selling.
