How to Use the Direct Sales Business Model

By eHow Business Editor

Rate: (0 Ratings)

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

Step1
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.
Step2
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.
Step3
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.
Step4
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.
Step5
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.

Post a Comment

POST A COMMENT

Request a New How-To Article

Looking for more How To information? Chances are there’s an eHow member who knows how to do what you’re looking to do. Submit an article request now!

eHow Article:  How to Use the Direct Sales Business Model

eHow Business Editor

eHow Business Editor

Category: Business

Articles: See my other articles

Related Ads