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Direct Selling; Is it the Next Driver Of Startup Commerce Companies? April 14, 2012

Posted by jeremyliew in Uncategorized.
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I just wrote a guest post on TechCrunch asking. “Is Direct Selling The Next Driver Of Startup Commerce Companies?” We’re seeing lots of exciting startups using this old channel to drive very fast growth.


1. Brett - April 14, 2012

You missed Beachbody — who is converting fans of P90x and Insanity into one of the fastest growing direct selling companies in country.

2. website - April 15, 2012


Direct Selling; Is it the Next Driver Of Startup Commerce Companies? « Lightspeed Venture Partners Blog…

3. Alvaro - April 15, 2012


Your article is spot-on. Following are three additional reasons why I think that direct-sales channels will continue growing in Latam:

1. Credit card penetration: Still low among the general population. Moreover, credit card holders still perceive using credit cards online as risky, which is a real hinder for lesser known e-commerce portals. On the other hand, companies that rely on a direct sales force give buyers the option to pay with cash.

2. Weak postal services: forget about USPS`s two to three-day service. Lengthy S&H is one of the main reasons why coupon-sites` service is perceived as poor throughout the region. Again, a direct sales force eliminates the need of S&H, since the prod. is usually delivered by the salesman or the party host.

3. Cheap labor.

Of course there is always the issue of how scalable a business can be when you need to increase head-count in ordert to increase sales…

PS: You would be surprised to learn the case of Rena Wear in Peru, where the company sells high-ticket cookware to middle and low-income buyers throughout direct selling.

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