All products and services are generally sold through distribution channels. These distribution and advertising costs range between 25% -50% of the product cost but products get sold generally on the basis of recommendations made by existing users or experts. But recommendations don't fetch any money to the recommender. The power of recommendation is so strong in some businesses that they live or die on this basis, of which cinemais the finest example
If we are somehow able to pay the recommender for recommendation one can Imagine of how strong a market of a product or service can be.
Direct Marketing Strategy is that once Customer has consumed a product he automatically becomes a distributor and when person recommended by him buys a product he gets a commission on the same.
DIRECTSALES DEFINITION -
“DIRECT SELLING IS THE SALE OF A CONSUMER PRODUCT OR SERVICE, PERSON-TO-PERSON, AWAY FROM A FIXED RETAILLOCATION. THESE PRODUCTS AND SERVICES ARE MARKETED TO CUSTOMERS BY INDEPENDENTSALESPEOPLE. DEPENDING ON THE COMPANY, THE SALESPEOPLE MAY BE CALLEDDISTRIBUTORS, REPRESENTATIVES, CONSULTANTS OR VARIOUS OTHER TITLES. PRODUCTSARE SOLD PRIMARILY THROUGH IN-HOME PRODUCT DEMONSTRATIONS, PARTIES ANDONE-ON-ONE SELLING.” DEFINITION ACCORDING TO THE DIRECT SELLING ASSOCIATION, U.S.A.
The Direct Selling model intends to compensate the “Consumer” for referring the products and services to his friends and relatives. Such a Consumer when he starts recommending is known as an Independent Representative (I.R.) and is governed by the terms and conditions which he accepts when buying the membership (Download joining form to see detailed terms and conditions)
In Direct Selling, instead of spending money on normal marketing channels like advertisements etc., the focus is on getting the Consumer to use the products and services of the Company and then asking him to recommend the Company’s products and services to his friends and relatives. On achieving a certain turnover or numbers the person recommending the company is paid certain incentives and rewards.
Out of the various incentive models available to compensate the Consumer for his recommendation, SAHARA CARE has chosen the” Binary” incentive model.
According to the incentives model, the incentives are paid to the I.R. as under:-
I.R. introduces two friends/relatives to the Company, i.e. one is placed in the left leg and the other is placed in the right leg, the Independent representative earns an incentive of Rs. 1000/-
If and when A and B choose to recommend the products and services to their friends and relatives the benefit of upto Rs. 1000/- for each pair will flow to whoever in their up line completes his/her pairs in the ratio of 1:1. Capping on 150 pairs per week
Renewal Membership :- I.R. renews his ID and also renews two of his down line I. R.’s, i.e. one is from left leg and one from right leg, for each renewal pair the Independent representative earns an incentive of Rs. 500/-.
* RENEWAL INCOME IR NEEDS TO RENEW HIS MEMBERSHIP/ID.
Capping and trimming is applicable. Please read the membership agreement carefully before buying the Membership.
For More information, contact to our distributors