On the other hand, direct selling is a dynamic, vibrant, rapidly
expanding channel of distribution for marketing products and services
directly to consumers. An important component of the direct
selling industry is multilevel marketing, which is also referred to as
network marketing, structure marketing or multilevel direct selling.
This has proven over many years to be a highly successful
and effective method to compensate direct sellers for the marketing
and distribution of products and services directly to consumers.
Direct selling provides important benefits to individuals who want
to earn an income and build a business on their own; to consumers
who enjoy an alternative to traditional retail outlets. It offers an
alternative to traditional employment for those who desire a
flexible income earning opportunity to supplement their household
income, or whose responsibilities or circumstances do not
allow for regular part-time or full time employment (Coughlan &
Grayson, 1998). However, direct selling should not be confused
with terms such as direct marketing or distance selling, which
may be described as an interactive system of marketing that uses
one or more advertising media to affect a measurable response
and/or transaction at any location, with this activity stored on a
database. Some of the better-known types of direct marketing
and distance selling techniques are telemarketing, direct mail,
and direct response. Although direct selling organizations occasionally
use some direct marketing or distance selling techniques
and technology to enhance their businesses, the primary difference
between the two methods of marketing is the face to face, or personal
presentation that is always an aspect of the direct selling
relationship (Schelfhaudt & Crittenden, 2005).