Direct selling refers to a distribution method, whereas multilevel marketing refers more specifically to a type of compensation plan found in direct selling.
A direct selling company that offers a multilevel compensation plan pays its representatives/distributors based not only on one’s own product sales, but on the product sales of the people a representative/distributor has brought into the business.
Is a Process where a company, either the manufacturer of certain products, or a main supplier or exclusive distributor of a product or service, sells and the markets the products directly to the end consumer away from a fixed retail location.
The way it worked in the past is through Independent representatives who are also customers, carries and presents to the customers and sell the product and service on-site, or sign the agreement (Application form). Then collects Payment to the supplier and get paid in the form of profit shares or commissions.
The modern Method of operation now, is that the Independent representative presents to the customer and the supplier delivers direct saving their representatives time and effort on book-keeping, storage, and delivery, as well as accounting.
In traditional way of distribution, there is almost 65% of money paid on Advertising, marketing and Sales.
Direct Selling pays you the Independent Representative for the word of mouth advertising from that budget instead, giving you the opportunity to generate lucrative income and also saves money on less effective and expensive ways of marketing.