Direct sales basics
What is direct sales? Selling without the store.
Direct sales is selling products straight to customers through independent consultants instead of a retail shelf. That can happen face to face, at a party, or through a link in a text. Here's how it works and how the people doing it get paid.
Updated Oct. 2, 2026 · 7 minute read
The definition
A company makes the product. An independent consultant sells it.
In direct sales, the company makes or sources the products, and a network of independent consultants sells them to the people they know, meet and reach online. There is no store in the middle. The consultant earns a commission on each sale instead of a wage.
Consultants are self-employed. They choose their hours, buy their own starter kit, and pay their own taxes. The company provides the products, a catalog or website, shipping, and the pay plan that decides what each sale is worth.
The model covers everything from kitchen tools and candles to skin care, wellness, clothing and even financial and energy services. Browse the companies in our directory and you’ll find all of them.
The short version
- Direct sales means selling outside a retail store through independent consultants.
- Consultants are self-employed and earn commission, not wages.
- Pay plans come in three shapes: single-level, multilevel and affiliate.
- A legitimate company pays you for selling product to real customers, not for recruiting.
Three ways to sell
Most consultants mix all three.
The methods overlap. A consultant might demo at a party, follow up one to one, and take the reorder through an online shop.
Person to person
The oldest form: a conversation, a demo, an order. Today that’s as likely to be a text thread as a doorstep. It’s how most consultants start, with friends and family, and where repeat customers come from.
Party plan
A host invites a group, the consultant demos the line, and guests order on the spot. The host earns free or discounted products on the party’s sales. Made famous by Tupperware and still central to party plan companies.
Online & social
Replicated websites, live videos, Facebook groups and shoppable links. The party can happen online, and the order ships straight from the company. Many consultants now run most of their business this way.
How consultants get paid
Every plan starts with commission on what you sell.
What differs is whether you also earn on other people's sales, and how many levels down that goes.
Illustrative split only. Each company publishes its own rates in its compensation plan.
| Plan | Levels paid under you | You earn on | The upside | Watch for |
|---|---|---|---|---|
| Single-level | 0 | Commission on your own sales only. | Simple, and your income tracks your effort. | No team income, however many people you introduce. |
| Multilevel (MLM) | 3–7+ | Your sales, plus a share of sales made by people you recruit and their recruits. | Leaders can build income from training a team. | Rank and volume rules; most participants earn little (see Industry Statistics). |
| Affiliate | 0–2 | A percentage of sales made through your link or code. | Easy to explain, rarely a kit or minimum. | Usually no team income, and the commission can be lower. |
In a legitimate MLM program, you should be able to make money just by selling the product.
Is it for you?
Who direct sales suits, and what to check first.
It tends to suit people who
- already use and love a product, and talk about it anyway
- want flexible, part-time income around a job or family
- enjoy hosting, demos, or building a social following
- are comfortable being self-employed and tracking their own numbers
Before you buy a kit, find out
- the full startup cost, and what’s inside the kit
- the commission rate on your own sales
- monthly minimums to stay active, and what happens if you miss one
- whether the company buys back unsold inventory
- what the typical participant earned, from the income disclosure
Every company profile on Direct Sales Aid lists the startup cost and commission range side by side, so you can compare companies head to head.
Glossary
The words you'll hear in your first week.
- Consultant
- An independent seller for a company, also called a rep, distributor, stylist, advisor or brand partner. Self-employed, not an employee.
- Starter kit
- The products and supplies a new consultant buys to begin. Price and contents vary widely by company.
- Host
- The person who opens their home (or online group) for a party and earns rewards on its sales.
- Upline / downline
- The person who recruited you and the people you recruit, in a multilevel plan.
- Personal volume (PV)
- The sales, in points or dollars, credited to you each month. Many plans require a minimum to stay active.
- Rank
- A title tied to sales and team targets. Higher ranks unlock larger percentages.
- Autoship
- A recurring monthly order. Often optional for customers, sometimes expected of consultants.
- Income disclosure statement
- A company document showing what its participants actually earned. Read it before you join.
Quotation from the Federal Trade Commission’s consumer guidance on multi-level marketing (updated July 2022). Commission ranges are general; each company sets its own.
Find a company that fits you.
Compare startup costs, commission ranges and real reviews across the direct sales companies in our directory.
Keep reading
More from the Direct Sales Aid resource library
Direct Sales 101Your first 90 days: choosing a company, the kit, the first party, the numbers.Direct Sales vs Pyramid SchemesWhere the money comes from, the FTC's test and the red flags to check.Affiliate vs Direct SalesFlat commission or a team plan? Tiers, pros, cons and who each one suits.Industry StatisticsSales, sellers, categories and what participants really earn.Consultant ToolkitUncompensated picks for bookkeeping, mileage, payments, design and shipping.Launching a Company?Put a new direct sales company in front of shoppers from day one.
Articles›What is Direct Sales?
