3 Advantages of Direct Selling for Small Businesses

Direct sales methods do not have the best reputation among sales professionals and are often seen as intrusive. Some even view them as being taboo. For those who are confused about “Direct Selling”, let me explain that it involves product promotions that are done outside of a store, i.e. live product demonstrations done at a prospect’s home or workplace.

A sales representative will go to people’s houses and ask them if they are interested in a free demonstration. If the prospect accepts the demonstration, the salesperson pitches the product while showing what it is capable of. They will compare the product to other alternatives and reveal their unique selling point. You must note that direct sales often involve the sales of items that are not available anywhere else.

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More big companies are starting to take the benefits of direct selling into consideration, however, some small businesses that are selling a local or an imported product to the local audience can also consider direct selling. We are going to go over the top three benefits to direct sales, which include:

  • Cost-effectiveness
  • Personable Approach
  • Low Risk Entry
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1- Cost-effectiveness

Direct sales methods can be very cost-effective. Standard sales and advertising platforms can be very costly. Standard advertising can include TV ads, radio ads, and newspaper classifieds. These costs can significantly reduce a company’s profit margin.

Implementing a direct sales campaign is an excellent way to reduce overhead. A direct sales approach is much cheaper than standard advertising campaigns. With direct sales, clients can be acquired at virtually no cost. As the sales reps travel from door to door, it only costs the amount of fuel it takes to get there. This dramatically increases the value of each sale.

2- Personable Approach

An article on Forbes describes the need for a personal connection in sales. A direct sales method offers a more personable approach to sales. With standard advertising, such as T.V and radio ads, there is no interaction between the sales representative and the potential customer. This lack of communication can leave the prospect with unanswered questions.

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When they do their research to find these answers, they may come across a competitor’s product. This can easily be avoided with direct sales. Direct sales can be a very interactive process. The sales respective can answer the prospect’s questions and disarm their objections. As a sale representative improves their communications skills, they will notice an increase in sales. These skills will improve naturally over time. But influence training will speed up the process.

3- Low Risk Entry

All companies must take risks. However, it is important to only take calculated risks. If a company takes a risk without doing the proper research, it could be the last decision that company ever makes. This is the biggest reason companies avoid trying new sales methods. If it does not work out, they will have lost a lot of money.

But direct sales presents a very low risk. Because it cost so little to implement, a failed campaign will not have much of an impact on the company’s profit. This gives companies much more flexibility when testing new approaches. They can tweak their sales pitch and split test to see which methods work best. With a direct sales approach, a company has much more freedom to experiment.

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In spite of its reputation, direct sales can be very useful. With a low-risk entry point and an added personal touch, direct sales offer benefits that are not seen in other marketing methods. Any company that does not take direct sales into consideration could be leaving money on the table.