How to Use the Direct Sales Business Model

A direct sales business model involves the marketing of a product or service directly to the customer without the use of advertising, distribution or retail outlets. A direct-selling approach utilizes a sales staff that employs personal demonstrations and presentations to explain the uses of potentially complicated or involved services.

Instructions

Difficulty: Moderate

1. Determine whether the direct sales business model will work for your goods and services. Generally, this marketing approach is reserved when your product needs a thorough explanation. For instance, selling an insurance policy requires a direct sales business model so that the customer can learn all of its benefits.
2. Train a sales staff to market your products and services to prospective customers. Your salepeople must be able to answer all of the customer's questions, and they must know how to close the deal.
3. Use telemarketing to reach prospective customers. To succeed, your telemarketers must be professional and efficient, and they should focus only on those people who are likely to buy based upon past purchasing decisions.
4. Stress the importance of the savings to the customer. By avoiding the unnecessary costs of advertising, distribution, inventory control and middlemen, you can pass savings on to the customer. You also can provide better customer service.
5. Motivate your sales staff by allowing them to earn bonuses and commissions on sales. Foster a sense of entrepreneurship by allowing them to be creative in their sales approaches, which in turn can drive profits. However, monitor their performance so that they don't do anything unethical.

Tips & Warnings

• There are many computer software programs designed to help you manage a call center if you decide to sell your product or service through telemarketing. These programs can help you to manage your workflow and staffing while constantly monitoring your sales staff.