Glossary
Direct Selling
Direct selling is a method of selling products or services in person, away from a fixed retail store, typically through independent sellers who work as distributors rather than employees. It covers a range of business models, including one time in home sales, party plan events, and ongoing network marketing businesses where distributors can also recruit and earn from other distributors' sales.
Also called: direct sales, person to person selling
Why it matters
Direct selling describes the sales channel itself, not any one compensation structure. Some direct selling companies pay only on personal sales, while others add network marketing team commissions, so knowing a company uses direct selling does not by itself say how its distributors are paid.
Example
A skincare company that sells only through independent consultants who host in home demonstrations and take orders directly from customers, rather than through retail stores, is a direct selling company.