Exit to the people. How to make money on direct sales of cosmetics
Direct sales of cosmetics are still popular, as it benefits not only companies and their distributors, but also consumers, allowing them to bypass the mark-up stores. But the amount of profit in this business completely depends on the seller.
Direct sales is a suitable option for your own business, especially if these are your first steps in entrepreneurship. The idea is relevant for women, mothers on maternity leave, students and anyone looking for part-time work. Direct sales are an alternative to traditional work and a source of additional income. If desired, a direct and profitable business can be built on direct sales. This option is suitable and novice entrepreneurs. After all, to organize a business based on direct sales is quite simple: you do not have to rent a room, buy equipment and invest large sums. The main element of direct sales is the entrepreneur himself. Only on his personal qualities will the success of the business depend.
Ready ideas for your business.
You can open your own business for little money. To do this you will need to purchase an inexpensive distributor kit. To start earning direct sales, you need a budget from 0 to 15,000 rubles. This favorably distinguishes direct sales from franchising and other types of investments, which require significant costs. It is rather difficult to name the exact amount of investments: each company has its own strategy and policy (moreover, both in the matter of attracting distributors and in the matter of paying for their work). Therefore, carefully review the different options and select the one that seems most appropriate to your expectations and requirements.
Direct sales are beneficial not only to companies and their distributors, but also to consumers. First, it is a quality service: product demonstration, personal consultation, home delivery and guarantees. Secondly, this is a saving – often the prices of cosmetics sold directly are much lower. Thirdly, it is an opportunity to purchase unique products that are not on the shelves of traditional stores.
Direct sales: the situation in Russia
In Russia, the direct sales market has been developing for over 20 years. According to studies, the main clients are women aged 30-55 years, and the average amount of each purchase is about 1,500 rubles.
Most large companies engaged in direct sales, sell cosmetic products. In this area, there is a high customer loyalty: purchasing the company’s products from one representative, the majority of buyers return with other orders to him. This form of interaction with the client allows for an individual approach and gives the buyer confidence. Therefore, it remains relevant. So direct sales are still a popular channel for the cosmetic trade.
Currently, the market for direct sales of cosmetics is actively growing. In 2018, it grew by 11% and reached almost 120 billion rubles and maintains this trend. At the end of 2017, direct sales of cosmetics amounted to more than 58 billion rubles. The popularity of direct sales is due to the fact that consumers are trying to save, bypassing intermediaries (shops), which make a high premium.
You should also evaluate all the advantages and disadvantages of the business in order to understand what conditions of work are waiting for you.
Advantages and disadvantages of direct sales for the seller
Advantages and disadvantages
Interaction with the buyer. The seller sees the reaction of the buyer and can adapt to his requests. Personal product presentation for each consumer
Different sellers may interpret product information in different ways. This complicates the reporting of a single holistic message to all consumers.
No cost at the point of sale. No need to invest in the equipment of the sales area, utilities and security of goods.
Audience coverage is limited to the high cost of this type of sales. It is difficult to reach a large number of potential buyers.
The level of income from direct sales is proportional to the effort
Reaching large audiences through a personal sales channel can be expensive.
Unlimited potential for individual and financial growth
Intrusive vendors who are keen to sell as much as possible
There are no requirements for education, work experience, financial or physical condition. People of all ages and backgrounds can succeed in direct sales.
The success of direct sales depends largely on the identity of the seller and his ability to communicate with people.
Can be used as a source of additional income, flexible working hours
Orientation to a specific market and consumer
Unlimited potential for individual and financial growth
The opportunity to receive support from the company and undergo training
Consequently, direct sales of cosmetics have advantages both as a business and as a service format.
Exit to the people. How to make money on direct sales of cosmetics
How to start a business on direct sales
Open a business in direct sales of cosmetics is quite simple.
