Direct Sales Industry Development

Introduction

“Direct Sale” means a door to door sale, a mail order sale or a sale through electronic transaction within the meaning of the Direct Sales and Anti-Pyramid Scheme Act 1993; OR services conducted in the following manner:

  1. Sale of goods OR services in the following manner;
    1. Sale of goods OR services in the following manner;
    2. making telephone calls,.
  2. seeking out persons who may be prepared to enter, as purchasers, into contracts for the sale of goods or services; and
  3. that first-mentioned person or some other person then or subsequently enters into negotiations with those prospective purchasers with a view to the making of such contracts .

Types of Direct Sales Business Marketing Plan

There are three types of marketing plan under the direct sales business, namely:

  1. Multi Level Marketing Plan
    1. The company recruits / appoints individuals as members / distributors to distribute the company’s products;
    2. . Member / distributor then appoint other individuals (downline) to form a network to sell the company’s products. The process of recruitment of new members / distributors may continue up to a reasonable level.
    3. Each member / distributor will receive commissions / bonuses / incentives from their private sales and sales of members / distributors in their network (overriding bonus).
  2. Single Level Marketing Plan
    1. The company appoints sales representatives / sales agent and pays salary / commission / combination of salary and commission on the sales made; and
    2. Sales representatives / agents are not allowed to appoint / sponsor other sales representatives / agents.
  3. Sales Through Mail Order or Mail Order Sales of goods or services by any person, either personally or through any person authorized by mail or any other means of delivery, including by electronic means.

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