Direct selling can be defined as "marketing and selling products, directly to consumers away from a fixed retail location. Sales are typically made through party plan, one to one demonstrations, and other personal contact arrangements.” Direct selling is also known as off premise selling or door-to-door selling.
Direct selling should not be mistaken with direct marketing or distance selling, because direct selling is about individual salespeople reaching out to consumers directly. See our FAQ for more information on the differences with direct marketing and distance selling.
Most of the well established direct selling companies use a multilevel compensation plan by which the sales agent is paid not only for their own sales but also a percentage of the sales of those representatives they introduced into the organisation and got recruited.