This plan allows the direct seller to manage and service a large direct retail network or distributor network. Those interested in this plan must first be sponsored by an existing distributor of the company. With the help of this distributor, he then builds his monthly sales volume to qualify for higher monetary incentives and higher level of recognitions.
At direct distributor level, he functions both as a wholesaler and retailer, purchasing products in bulk from the company and distributing them to his distributors who in turn sells them to the customers. All income earned by a distributor is based upon the volume of sales and no other considerations. There is one standard distributor price for products to distributors and one standard retail price for products to customers.