The term direct selling is self-explanatory. It is a method in which brands prefer to directly reach the customer through the agents, rather than follow a lengthy third-party distribution channel with various middlemen at different stages.
The sales do not take place at retail stores. They happen in non-commercial areas such as at home, in a party/ gathering, or even at workplaces. The products sold by the brands that follow the direct selling method are not usually available at retail stores. They have to be purchased from the agents, either by contacting them personally or through the website.
Direct selling is another name for network marketing and MLM (Multi Level Marketing) model. It is a popular business model that is being adopted by various small, medium and large businesses all over the world.
Direct selling has many benefits for the brand and the agents who sell the products. Being a profit-based model, it creates a win-win situation for businesses and agents to earn more money in less time. The agents are not employees of the enterprise. They are freelancers or homemakers who are looking for an alternative income source. Those working regular jobs also take up membership to become agents and earn some money.
To effectively manage the business model, enterprises use direct selling software. This software has been designed to bring the various departments, employees, and agents of the enterprise on to a single platform. It also allows enterprises to create a website through which the agents can recruit more agents and also generate sales online by identifying potential customers in newer markets.
Take a look at the Features of Direct Selling Software to understand its usefulness and effectiveness in streamlining the business at different levels.
- Compensations Plans
- Compensation plans play a major role in direct selling. The agents are arranged in a network and their commissions are calculated based on the compensation plan chosen by the enterprise.
- The plans can also be customized as per the requirements of the business. The percentage of the commission, the network status of the agents, and any of the bonus rewards the enterprises want to give the agents are managed by the software.
- This brings transparency to the process, and agents can see how their payouts and commissions have been calculated.
- Unlimited Customization
- Wouldn’t it be wonderful if the software can be molded and changed however we want? Direct selling software is capable of exactly that. The software providers create a basic software package with standard features.
- When enterprises buy the software, they can ask for in-depth customizations so that the software fits the business model of the enterprise. Whether it is something as simple as changing the theme, color combination, and layout of the software or something as complex as software integrations, everything is possible with direct selling software.
- Analysis and Reports
- Regularly analyzing sales is a great way to understand how the business is performing. While enterprises have a lot of raw data scattered throughout, it is a task to bring it together, process it, analyze it, and generate reports based on various factors.
- Since direct selling software collects data on a single platform, it becomes easier to not just access the latest information but also to generate automated reports. By setting filters or sort and arrange data, the software can be used to generate textual and graphical reports with charts, bars, and pies.
- SMS/ Email Integration
- Sending regular alerts is one way of staying in touch with customers and agents. The software can be used to send automated SMS messages to national and international numbers. Email messages can be sent in a similar method to inform customers about their subscriptions, new products, exclusive offers, etc. Agents can be updated about meetings, launch programs, and other important details they need to know.
- Network Management
- One of the understated Features of Direct Selling Software is network management. The admins can easily manage the networks and the agents in the network. Teams and their individual networks can be tracked without having to put any effort into the process. At one glance, the admins can see the network status of various agents and their teams.
- Multiple Software Integrations
- Multilingual module, multicurrency module, payment gateway integrations, and e-wallets are some of the most commonly used software integrations. Direct selling software can be used to create integrated websites for the business.
Brands that follow the direct selling model can contact the software providers to know more about the technical support, cloud hosting services, and employee training options. The software providers will ensure that the software is error-free so that enterprises can focus on their core aspects of the business to increase ROI.