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Direct sales

Nikiforov Alexander
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What are direct sales?

Direct sales are the process of selling goods and services without intermediaries. In this case, the company itself is responsible for producing goods, finding clients, and selling products both online and during personal meetings. For example, the company "Netology" actively uses this approach by developing and launching its own courses, as well as finding clients and making sales via phone, email, social networks, and messengers.

Direct sales provide direct interaction between the buyer and the seller, excluding distributors and wholesalers from the chain. This interaction does not necessarily have to take place in a physical space; for instance, when an entrepreneur offers handmade soap on social media and consults clients through messages, it is also considered direct sales.

Difference between direct and indirect sales

Direct sales imply that the manufacturer sells its product independently, while indirect sales occur through intermediaries who take on the tasks of consulting clients, spreading information about the product, and processing payments. Many companies combine both approaches to increase profits and reduce the burden on managers. For example, the manufacturer of children's play equipment ROMANA sells its Swedish walls through its own online store, which is an example of direct sales, as well as through marketplaces like Ozon, which pertains to indirect sales.

Advantages and disadvantages of direct sales

Direct sales have many advantages for businesses:

  • Personal contact: The seller interacts directly with the client, increasing the chances of a successful deal. Communication can occur not only offline but also in the online space.
  • Feedback: The ability to quickly learn the reasons behind a client's refusal to purchase and improve the product based on the received data.
  • Individual approach: Direct sales allow for a deeper understanding of client needs and the adaptation of offers to meet those needs.

On the other hand, direct sales have their drawbacks, the main one being high costs. To effectively work with a large client base, a significant number of employees, training, and the implementation of a CRM system are required. This can be complicated and expensive, leading large companies to rely on intermediaries, while small businesses often prefer direct sales for closer interaction with clients.

Types of direct sales

There are several types of direct sales, which vary depending on the methods and places of communication with clients:

  • In public places: These are sales that occur in parks, shopping centers, and other public places where samples of goods are demonstrated or tastings are held.
  • During meetings: Such meetings are organized in offices, cafes, or business centers, where a manager demonstrates products and leaves commercial offers.
  • By phone: Companies call potential clients and offer them their goods or services.
  • Over the internet: This includes sales through social networks, online stores, and landing pages.

There are also less common methods, such as home or office sales, but these can raise skepticism among buyers.

Techniques and methods of direct sales

To successfully carry out direct sales, it is necessary to apply various techniques and methods that help effectively present the product. Here are some of them:

  • Consultative selling: The primary approach that involves identifying the client's needs before providing information about the product.
  • SPIN selling: A method based on four types of questions aimed at identifying the situation, problems, implications, and needs of the client.
  • FAB: The seller reveals the values of the product, starting with features, then benefits, and finally advantages.
  • SNAP: A technique that emphasizes simplicity, value, alignment, and priorities in the product offer.
  • Conceptual selling: A method that is especially effective for complex products in the B2B sector, where the seller offers a concept of perception of the product rather than just its characteristics.

Rules for successful direct sales

To achieve maximum results in direct sales, it is advisable to follow several simple recommendations:

  • Know the product: The seller should have a detailed understanding of the product to confidently respond to client questions.
  • Write scripts: They can be useful for newcomers and help sellers feel more confident.
  • Be polite and friendly: The success of sales depends on how you present the company and the product.
  • Do not argue with the client: Acknowledge their viewpoint and politely offer counterarguments.
  • Automate communication: Use chatbots to respond to standard client inquiries.
  • Request feedback: After closing a deal, ask the client to leave a review and share their opinion.