Views Collection

Are direct selling companies always successful? I was introduced to join such a company which was basically a direct selling company. Their products included some tooth pastes, soaps and etc. They claimed that all the manufacturing companies at present have never provided any reimbursement to its final consumers who have been using their products life long. Being such a brand loyal customer, that customer has never been privileged with any kinds of offers. And whenever that customer had to buy that product they would have to go through the retailers which means they have always been paying more.

So this company which I was introduced to me had an objective to reach to its final customers directly. They said that, this would make their products available to its loyal customers at a cheap price. The dealers margin, retailers margin will be neglected in this course so it will obviously be cheaper. And whoever which includes a new user of this company’ products sells or motivates others to use it will get a ranking and thus he will get some bonus in the form of vacation or additional cash. It was some what like the Gold Quest scheme.

But does this prove that they are being loyal or trying to give something to its genuine and loyal customer? In no way a company would be established without any profit motive. In order to reach to the general customers they need sales persons, they need accountants to maintain books and there are a lot of overhead expenses as well. So how can this company provide its products with a zero profit margin? How could they sell their products in the same price as the operating cost which incurs in the manufacturing process?

I did not like this at all and I would in no way join the chain of this company.