​Business Models in Direct Selling





Catalog Sales

Catalog Sales is a Direct Selling model which consists of creating an interesting catalog that speaks for itself and deliver it to the sales force, which is responsible for distributing it.

Unlike the flat sale in which there is a management by this sales force some area leaders, awards, offers and discounts.


catalog sales


Flat Sale

It is a business model which consists of a single level and involves the traditional Direct Selling in which the adviser / businesswoman / distributor manages the relationship, sells it to your network and makes the orders to distribute them when they arrive.

Normally companies that work in flat sales have area leaders that are in charge of directing groups of vendors and distributors so that they can achieve their objectives and achieve better sales and better benefits for both the client and the salesperson / consultant.


flat sales


MLM – Multilevel Marketing

It is a direct sales model in which the sales force sells products directly to consumers through recommendations and word of mouth marketing. MLM commercials not only sell the company’s products, but they encourage others to join the company as distributors. It is a strategy in which associates are remunerated not only for the sales they generate, but also for the sales made by their network.





It is a direct sales model, which is based on two sections of structure, which means that the organization of the network is only generated on these two sides.

Some features of this model are:


  • The model is more based on the strength of the network and the business (more agile, more aggressive) than in the products, they are used for very small portfolio companies (very few or only product).
  • Easy to sell and high initial investment concept
  • The payment to the consultant / distributor is made based on the weakest leg or side.
  • Each distributor is allowed to have only two distributors in the first level, called business centers.
  • Each member is only responsible for recruiting and sponsoring two others to join the plan
  • The binary compensation plan remains one of the most preferred and used in direct sales. Companies in the top tier of the direct selling industry prefer this plan because of the simplicity to motivate people to be part of the business.
  • It allows you to grow your network (legs) in depth but with restrictions on the width (only two sides), the depth network can grow as much as you want and you just have to do an arduous job to start the network once, the rest It depends on each member, as long as each person does not stop finding both legs, you will continue to live and grow






A hybrid business is a business concept that combines different services in one place to offer a different and more complete option of consumption and pleasure to customers. Some companies are combining several business models also to reach more public.

Party Plan


It is a successful business model that has been gaining strength in recent decades. These are the main features of the Party Plan model:


  • The products are distributed through independent sellers.
  • The products are promoted and marketed in meetings at home or private parties, whether physical or virtual, organized by a distributor or host.
  • The main objective of these meetings is to demonstrate and expose the main benefits and characteristics of the products and services to a group of potential buyers.
  • After the demonstrations, the hosts take the orders of those attending the event.
  • One of the objectives of a Party Plan event is also to recruit new salespeople.
  • It is a system for generating sales and / or business opportunities.
  • The main items that are marketed in this mode are kitchen utensils, household items, jewelry, cosmetics, handbags and clothing.
  • In these events, it is common to provide incentives and discounts to both distributors and attendees.
  • The party plan model has more to do with making profits when making sales at events than with multilevel marketing, it is about using your residence and your free time to promote products that may be interesting for your friends.
  • The experts in the model say that the key to success in this is not to see it as a job but to feel it more as you organize an event in your home as if it were a special occasion.
  • Once the attendees feel great and comfortable, you can start showing your products, offer snacks and keep the same atmosphere at the time of the sale and make money in the best possible location for you and your guests.


party plan


* Due to industry competition and new trends in Direct Selling Previous models can be complemented with the following:


  • Shopping Clubs
  • Influencers