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Direct Selling Notes

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Hemen zinahbizu
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39 views3 pages

Direct Selling Notes

Uploaded by

Hemen zinahbizu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Key terms

The term "abridgment" refers to a shortened version of a written work, achieved by omitting less
important details while retaining the main content and meaning

A legal compendium refers to a comprehensive collection or summary of laws, legal principles, or legal
practices. It serves as a reference tool for legal professionals, providing a concise overview of a larger
body of legal knowledge or specific legal topics.

Notes

For companies in countries lacking national associations, the WFDSA offers resources that can help them
understand the regulatory landscape and best practices in direct selling.

This includes

 guidance on ethical standards;- https://wfdsa.org/wp-content/uploads/2021/04/Code-of-Ethics-


Booklet-2017.pdf
 compliance with international norms:-
https://www.faire-werbung.ch/wp-content/uploads/2021/10/ICC-International-Code-of-Direct-
Selling-Code_FINAL-with-covers.pdf

The ICC
The ICC Code of Direct Selling is intended primarily as an instrument for self-regulation and selfdiscipline,
but may also be used by the Courts as a reference document within the framework of applicable
legislation.

Effective self-regulation is also an instrument for the protection of individual companies’ goodwill and
reputation

the term direct selling refers to the selling of products directly to consumers, generally in

their homes or the homes of others, at their workplace and other places away from

permanent retail locations, where the direct seller may explain or demonstrate products;

 the term direct selling company refers to a business entity which utilises a direct selling

distribution system to market products;

 the term direct seller refers to a person who is a member of a distribution system of a

direct selling company. A direct seller may be an independent commercial agent,

independent contractor, independent dealer or distributor, employed or self-employed

representative, or any other similar sales representative of a direct selling company;

the term consumer refers to any persons to whom direct selling activities are directed, whether as an
individual or as a trade customer or user;  the term party selling refers to selling through explanation
and demonstration of products to a group of prospective customers by a direct seller usually in the home
of a host or hostess who invites other persons for this purpose;  the term product refers to anything,
goods or services, tangible or intangible, that constitutes the subject of an intended direct selling
transaction;  the term recruiting refers to any activity conducted for the purpose of offering a person
the opportunity to become a direct seller.

Note worthy articles

Article A1 All direct selling should be legal, decent, honest and truthful. Every direct selling activity
should be carried out with a due sense of social and professional responsibility. No direct selling should
be carried out such as to impair public confidence in direct selling.

AI Recommendations

Create Clear Contracts: Ensure that all agreements with direct sellers are detailed and transparent,
outlining their rights, responsibilities, and compensation structures. This can help protect the company’s
interests while clarifying expectations for sellers how can we make our agreement contract clearer?

 Detailed Contracts: Create comprehensive contracts that clearly outline the rights and
responsibilities of both the company and the direct sellers. This includes terms related to
compensation, performance expectations, and compliance with company policies.
 Non-Compete Clauses: Include reasonable non-compete or non-solicitation clauses that prevent
direct sellers from engaging with competing companies or soliciting customers after leaving your
organization.
 Regular Updates: Maintain open lines of communication with direct sellers through newsletters,
webinars, or dedicated platforms. Regular updates about product launches, promotions, and
policy changes keep sellers informed and engaged.
 CRM Systems: As previously mentioned, utilize Customer Relationship Management (CRM)
systems to track seller performance, manage customer interactions, and ensure compliance
with company policies. This data can help identify top performers and areas needing support.
 Mobile Apps: Develop mobile applications that allow direct sellers to access training materials,
track their sales activities, and communicate easily with management. This can enhance their
efficiency and engagement
 Participate actively in international forums and discussions related to direct selling to stay
informed about emerging trends, best practices, and potential regulatory changes.

 Engage with relevant stakeholders, such as consumer protection agencies and international
organizations, to demonstrate your commitment to ethical practices and contribute to the
development of industry standards

 Monitor Compliance: Regularly audit direct selling activities to ensure adherence to


ethical practices. Establishing a culture of accountability can strengthen the company's
position and rights over its sellers.
Leverage Technology
 Utilize CRM Systems: Implement customer relationship management (CRM) software to
track sales activities and ensure compliance with company policies. This can provide
insights into seller performance and help identify areas for improvemen
 comprehensive Overview: CRM systems provide a centralized platform to monitor all
sales interactions, from initial contact with potential customers to the final sale. This
allows managers to see the entire sales cycle at a glance.
 Activity Logging: Sales representatives can log their activities (calls, meetings, emails)
directly into the CRM. This helps in maintaining a record of each interaction with
customers and prospects, ensuring that no opportunities are missed

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