What are Direct Sales?
Direct sales occur when a sales rep sells a product directly to a customer, without any intermediary involvement. For many businesses, this is ideal as it removes logistical planning within supply chains and makes the sales process easier.
Direct selling is commonly used by business-to-consumer (B2C) companies and software-as-a-service (SaaS) companies, as their sales teams work directly with customers to close deals and deliver products and services.
Types of Direct Sales
Direct sales are often misunderstood or misinterpreted as being similar to pyramid schemes. While there are similarities (sales reps meet with potential customers to pitch their products and make sales), direct selling does not require the recruitment of additional sales reps to earn a commission.
Multi-level marketing has become infamous because of illegal pyramid schemes, but we’re not focusing on that.
B2C and SaaS companies rely on direct-to-customer and single-level sales. Their business models are legal and effective.
Direct to Customer
This type of direct selling is often seen via online purchases. SaaS companies that sell subscriptions online, for example, where a user simply registers and pays, then downloads the product or receives login information, would be utilizing direct-to-customer selling.
Many B2C companies operate via single-level direct sales, where sales reps actively engage with sales prospects and customers to sell products, and then earn a commission off each sale made. There are no intermediaries involved, and the customer only deals directly with members of the sales team.
Why are Direct Sales Important?
Direct selling removes logistical planning, multiple levels of administration and approvals, and ultimately makes the sales process easier for both the sales rep and the customer. It’s straightforward and simple, which helps boost overall customer satisfaction and allows sales reps to focus on their work without worrying about external factors.
It also allows sales reps to build meaningful relationships with their customers, which improves retention and boosts brand loyalty. Increased customer experience also contributes to positive reviews and recommendations via word of mouth, which cycles back when prospecting new leads.
How to Increase Direct Sales
Hire Engaging Sales Reps
Since direct sales rely on sales reps making sales directly with customers, it’s important to ensure you have the right people in the role. When hiring, look for engaging, outgoing candidates who can make positive, lasting impressions. They must be effective communicators, expert negotiators, and know how to listen and deliver exactly what a customer needs to bolster relationships.
One of the most important components of direct selling is a sales rep’s ability to connect with their prospects and build relationships. Personalizing interactions is key, so always conduct research to ensure you know who you’re talking to and lean on your knowledge of their work to hammer home how your product will help them achieve their business goals.
Sending video emails to sales prospects is an excellent way to grab their attention and get them interested in your product. Video prospecting improves open rates and increases replies, and should be built into your sales cadence if it isn’t already.
If your sales prospect is on the fence about your product, you can also use sale demo videos to walk them through your product, highlight its unique selling point, and get one step closer to a final sale.