What is Direct Selling?

Introduction

Direct selling is a retail channel used by top global brands and smaller, entrepreneurial companies to market products and services to consumers. Companies market all types of goods and services, including jewelry, cookware, nutritionals, cosmetics, housewares, energy and insurance, and much more.

The direct selling channel differs from broader retail in an important way. It isn’t only about getting great products and services into consumers’ hands. It’s also an avenue where entrepreneurial-minded people can work independently to build a business with low start-up and overhead costs.

Direct selling consultants work on their own, but affiliate with a company that uses the channel, retaining the freedom to run a business on their own terms. Consultants forge strong personal relationships with prospective customers, primarily through face-to-face discussions and demonstrations. In this age of social networking, direct selling is a go-to market strategy that, for many companies and product lines, may be more effective than traditional advertising or securing premium shelf space.

Millions of people around the world choose to become involved in direct selling because they enjoy a company’s products or services and want to purchase them at a discount. Some decide to market these offerings to friends, family and others and earn commissions from their sales. The most successful consultants may decide to expand their business by building a network of direct sellers.

Benefits of Direct Selling

Direct selling offers important benefits to people who want an opportunity to earn income and build a business of their own, to consumers as an alternative to retail stores, and a cost effective way for business to bring products to market.

Consumers benefit from direct selling because of the convenience and service it provides, including personal demonstration and explanation of products, home delivery, and generous satisfaction guarantees.

Direct selling offers an alternative to traditional employment for those wanting a flexible opportunity to supplement household income, or whose circumstances don’t allow regular employment. Direct selling opportunities can develop into a fulfilling career for those who achieve success and choose to pursue their independent direct selling business on a full time basis. Start-up costs in direct selling are typically low. Usually, a modestly priced sales kit is all that’s needed to get started, and there is little or no inventory or other cash commitment to begin. This stands in contrast to other businesses with the cost and risk associated with larger outlays.

Direct selling offers a distribution channel for businesses with innovative or distinctive products that for cost or other reasons are not suited to other retailing.

As the external Socio-Economic Impact Studies for the various markets show, direct selling is a positive benefit to the economies and people where direct selling companies operate and serves consumers with a convenient source of quality products.

Choosing an Opportunity in Direct Selling

Identify a company and product that appeal to you

Contact our member Direct Selling Associations (DSAs) for more information or look in your local phonebook.

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.

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.

Get copies of all company literature

And read it!

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.

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.

Need help evaluating a company?

Contact our list of DSAs members, the Better Business Bureau or the government consumer affairs office.

The cornerstone of the WFDSA’s commitment to ethical business practices and consumer service is its World Codes of Ethics. Every national DSA pledges that it will require each member as a condition to admission and continuing membership in the DSA to comply with the WFDSA World Codes of Ethics for Direct Selling with regard to direct selling activities both inside and outside of its home country, unless those activities are under the jurisdiction of Codes.

Global Statistics

The World Federation of Direct Selling Associations (WFDSA) is pleased to present industry sales and sales force figures for 2020.

Sales figures are expressed at Estimated Retail level and exclude Value Added Tax. Except as footnoted, figures for sales and independent representatives are based on the entire industry.

Sales figures for 2020 are expressed in US Constant 2020 Dollars to exclude the impact of foreign exchange and ensure comparability. WFDSA uses average annual exchange rates from the International Monetary Fund to convert data from local currency to the common currency, US dollars.

2020

Report of Sales and Independent Representatives

Sales by Product Category Report

Fact Sheet 2020

NOTE: If you have questions, please do not hesitate to contact info@wfdsa.org

World Federation Statistical Database (2017-2020) – The official source for all WFDSA statistical data

Here, you will find:

4 years of historical data for Direct Selling globally, by region and by country

re-stated data and actual data which has later replaced initial estimates

data on Retail Sales, Independent Representatives and more

year-over-year percentage changes and 3-year compound annual growth rates, based on local currency

Please note that Sales are expressed as Estimated Retail Sales excluding VAT and represent the entire industry unless otherwise stated. Constant USD for the most recent year is used to convert figures to a common currency, thus eliminating the impact of currency fluctuation; exchange rates are average annual rates from International Monetary Fund (secondarily from OANDA)