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Guide for Direct Sales: Ethics

November 17, 2010 in Direct Sales | Comments (306)

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Ethics for Direct Sales

Direct Sales is a marketing strategy of selling products direct to consumers instead of going to the location of the retailers of the product. It is a strategy that a consumer can also sell the products to another consumer by using a profitable commission schedule.  Most products that were successful with direct selling are the cosmetics and apparel that has ranked first, and the health products like multivitamins and food supplements ranked two.

Because of more company arises for the direct selling; there are ethics for direct sales that is best recommended for both, consumer to the salesperson and salesperson to the company.

As a consumer, it is expected from the salesperson to introduce their product and the company they are representing. They will end the demonstration if the consumer requested to. To demand an official receipt the contact information of the company and salesperson is included. The salesperson should also respect and only call the consumer at the preferred time to contact. And the consumer should be well informed of the description of the warranty or guarantee.

The cooling off period should also be provided to the consumer, the period of which the consumer can return or cancel the purchase order with a full refund. The salesperson should also be guaranteed by the company in the Direct Sales Industry. Salesperson should be provided of the complete information of the compensation and of the products. This is also to ensure that the salesperson is not just buying the products to qualify for the down line commissions.

The company should also provide necessary trainings to their salesperson that will help their operations. They should also encourage the salesperson to purchase products that can sell in reasonable amount of time.  And have a reasonable start up fee and costs. In any situation that the salesperson decided to leave the business, it is then advised to repurchase the marketable product that produces 90% profit for the past 12 months.

However, there is what we call a US Direct Sales Code of Ethics. These sets are the basic fair and ethical practices to which company members of the association should follow. The ethical code protects the salesperson from being misinterpreted of the potential earnings of the product that they will be representing. The ethics provided are to set guidelines of the information that needs to be checked, either as a salesperson or as a consumer.