What is Direct Sales?

Information About the Party Plan Opportunity

What is Direct Sales, exactly?



Direct Sales Companies are companies who choose to advertise by contracting with individuals, usually called consultants or distributors, in order to move their product.

Usually, the company does not provide any advertising for the business and/or products; that is what the consultant is for! The company pays the consultant a commission of the sales they make, usually ranging from 15%-40%, depending on the product, the company, and the consultant’s position in the company.

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They are called Party Plan companies, because the concept is that the consultant, once trained, will conduct a party (like a Tupperware Party) in a friend’s home.

The friend, or host, will invite those she knows to come over for an evening of fun and games, a snack, and a sales presentation.

Each guest knows that there is an unspoken rule that if they show up, they need to purchase something.

The host receives prizes, and credit towards products, for the sales at her party.

The consultant receives commissions, and “dates” more bookings (parties) from the guests who attend.


Focus is placed on SALES.

Most companies have a sales quota each consultant needs to meet either monthly, quarterly or annually. While each consultant is encouraged to recruit other people to join the company, the usual rewards for doing so are either a small (around 5% ) commission on the new team member’s sales, or a gift such as free product, for recruiting.

Often, consultants have the opportunity to advance to a higher position in the company, such as a Manager, or Director, or Eagle Director, etc.

This is usually based on recruiting a certain number of new people and/or maintaining a group volume in sales.

As a consultant advances, the rewards are greater as they usually earn a commission off the sales of those they sponsor, if they were not already doing so.

Most companies offer extra incentives to their consultants and/or managers:
--Cars
--Cash bonuses
--Exclusive Product
--Jewelry
--Exotic Vacations



These incentives are for things like reaching sales goals, recruiting new team members, and making it to the next leadership position within the company.

There are policies and procedures for each Party Plan company.

Some will not allow you to use their logo or trademark without written permission from the company. Others require you to purchase business cards directly from them. Some don’t care.

A few companies will not allow you to advertise online. Some ask you to sign exclusive agreements, stating that you will not work with another direct sales or MLM Company .

Each plan is different, though in every company, you are an independent contractor, NOT an employee, and you will be responsible for your own taxes.

To understand what is direct sales, the Direct Sales industry should not be confused with MLM, aka Network or Multi-Level Marketing.

While both forms of advertising sell products, and both allow consultants or distributors to earn income from several levels of participants, the Direct Sales industry is more product focused, while the MLM company is more opportunity focused.

Both types of companies serve a purpose, and both are excellent opportunities. You have the ability to replace an income with either choice.

The great thing about this industry is that it allows everyday people to go into business for themselves. All of the difficult work, like product invention, manufacturing, shipping, promotional materials, legal fees, etc, is done for you by the company.

You simply purchase a Starter Kit and off you go!

Most companies offerstarter kits from $30-500. The company will even provide you with effective training.

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I hope that this helps you understand what is direct sales.


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