Benefits of Direct Selling

Research shows some of the most popular reasons people choose direct selling are:

• Direct selling is a good way to meet and socialize with people.
• Direct selling offers flexible work schedules.
• Direct selling is a good way to earn extra income.
• Direct selling is a good way to own a business.
• Earnings are in proportion to efforts.

Anyone can do it.
There are no required levels of education, experience, financial resources or physical condition.
People of all ages and from all backgrounds have succeeded in direct selling.

Direct sellers are independent contractors. You’re your own boss, which means you can:

• Work part-time or full-time – you choose when and how much you want to work.
• Set your own goals and determine yourself how to reach them.
• Earn in proportion to your own efforts. The level of success you can achieve is limited only by your willingness to work hard.
• Own a business of your own with very little or no capital investment.
• Receive training and support from an established company.

People like to shop through direct selling.
According to recent surveys, 74 percent of Americans have purchased goods or services through direct sales. That’s more than the number who have purchased through television shopping and on-line computer services combined. People value the products available through direct selling and 45 percent of Americans want to buy from direct sellers.

Direct selling is a growing industry.
Sales in the U.S. have more than doubled in the last decade to more than $30 billion and are now more than $100 billion worldwide.

People from literally all walks of life, of all ages, are successful in direct sales. About 75 percent of those working in direct sales are women, 10 percent are African American, six percent are Latino and three percent are Asian, Native American or other. Many people start part-time, and later leave their other careers when direct selling becomes more lucrative.

- found on www.dsa.org

Considering an Opportunity

If you are considering the possibility of starting your own business through direct sellinig, www.dsa.org is an excellent resource.  Below are some helpful guidelines when considering the opportunity.

Here’s how to identify legitimate direct selling opportunities:

Start up costs should be minimal. The start up fees in direct selling companies are generally modest – usually the cost of a sales kit. Companies want to make it easy and inexpensive for you to start. Pyramid schemes make their money through fees paid by new recruits or by loading inventory or training aids on them. High entry fees should be a warning sign.

You should be able to return unsold inventory. Companies belonging to the Direct Selling Association “buy back” unsold marketable products purchased within the prior 12 months if you decide to quit the business, for 90 percent of the price you paid for them. The DSA Code of Ethics requires that member companies do this. Beware of opportunities that encourage “front end loading,” or buying large inventories of unreturnable products to reach achievement levels or receive a “special” or larger “discounted” price.

Is the money you’ll earn based on the sale of products or services? The answer should be “absolutely.” This is a key element of a legitimate business. Direct selling, like other methods of retailing, depends on selling to customers who use and/or consume the product. This requires quality products and services sold at competitive prices. Beware of any business that claims you can get rich by solely using their products or by recruiting new people into the business. You should also believe in the products or services you’ll be selling.

Ask yourself, “Would I buy this product if I weren’t in the sales organization?” If the answer to that is no, think twice about the opportunity.

How to Get Started:

1. Identify a company and product that appeal to you.
   Check our list of member companies or look in your local phonebook.
2. Take your time deciding.
   Does “getting in on the ground floor” mean that everyone joining after you will be less satisfied or happy? A legitimate opportunity won’t disappear overnight. Think long-term.
3. Ask questions.
   About the company, its leadership, the products or services, start-up fees, realistic costs of doing business, average earnings of distributors, return policies, and anything else you’re concerned about.
4. Get copies of all company literature.
   And read it!
5. Consult with others who have had experiences with the company and its products.
   Check to see if the products or services are actually being sold to consumers.
6. Investigate and verify all information.
   Do not assume that “official looking” documents are accurate or complete or even produced by the company, as opposed to the person trying to recruit you.
7. Need help evaluating a company?
   Check to see if the company in which you’re interested is a member of the Direct Selling Association. If it is, you can be assured the company has pledged to abide by and uphold the DSA Code of Ethics. In addition, you might want to call your local Better Business Bureau, state attorney general or consumer protection office.

- Information found at www.dsa.org.

What is Direct Selling?

Direct Selling is the sale of a consumer product or service, person-to-person, away from a fixed retail location. These products and services are marketed to customers by independent salespeople. Depending on the company, the salespeople may be called distributors, representatives, consultants or various other titles. Products are sold primarily through in-home product demonstrations, parties and one-on-one selling.

The direct selling industry has touched a majority of adult Americans.
• The direct selling industry has touched a majority of adult Americans: In 2000, 55 percent of American adults reported having, at some time, purchased goods or services from a direct selling representative. This represents a slight increase over the Wirthlin figures.
• In the 2000 survey, one in five American adults (20%) reported they are now (6%) or have been (14%) a direct selling representative.
• Among direct selling customers, three out of four (77%) have attended an in-home demonstration or party.

The market potential for direct selling.
• Thirty-eight percent of adult Americans surveyed in 2000 have some interest in purchasing a product or service in the future via direct selling, but only 27 percent had actually made a direct selling purchase in the past year. Both figures are about the same as in the earlier survey (Wirthlin Worldwide, 1997).
• With public interest in purchasing through direct selling (38%) exceeding those who have purchased (27%), these recent figures suggest there is an opportunity for growth!

Are America’s shopping patterns changing?
• As reported in 2000, the 55 percent of American adults who have ever purchased by direct selling is exceeded only by the percentage of those who have ever purchased via retail stores (96%) or through mail order catalogs (83%).
• The percentage of American adults who are somewhat, very or extremely interested in using the Internet as a method of purchasing products and services in the future has increased from the 30 percent of American adults reported in the 1997 survey to the 50 percent reported in 2000.

- Information found at www.dsa.org