Direct Selling Association.
As the names says, Direct Selling means marketing your product or services directly to the consumer without any mediator. Providing the products or services generally in their homes, offices or any other place away from their permanent place usually via demonstrating or explaining the use of that particular product by a direct seller. In direct selling business, the major barrier is payments.
Benefits:
- Direct Selling offers supple work schedule.
- It is a good option to earn extra money.
The companies who are selling multi-level marketing compensation plans are represented globally by a trade association in the United States, United Kingdom, Australia, Malaysia, Singapore, and New Zealand comes under Direct Selling Association. The companies who are its members get many advantages like they make public relations, lobbying efforts against regulation of the multi-level marketing industry and also help in funding a political candidate.
In United State itself, more than 20 million of people are involved in Direct Selling including every state, community or congressional district. In retail sales, more than $36 billion was generated in 2015 in Direct Selling, a 4.8% increase from 2014. As compared to previous year, more revenue is generated by more people thereby resulting in steady growth in direct sales channel. Growth of people involved in Direct Selling in the 2010, 2011, 2012, 2013, 2014, 2015 and 2016 are 15.8, 15.6, 15.9, 16.8, 18.2 and 20.2 (millions) respectively.
According to Direct Selling Association Census, 81.8% of DS representatives are females and the remaining are male (18.2%). The large section of DS representatives falls under the age of 30 to 46 years, resulting in 37.1% of sales consultants in the country.
The most common misconception among people, who do not have much experience about Direct Sales, is that the turnover rates of direct sellers is high because there is no real potential in the industry. The actual annual turnover rate in direct sales is 56% and in retail 53%. The highest revenue rate was in the year 2016 with total sales of $32.18 billion was accounted in U.S only. From there onwards, there was a steady growth in the market. Between years 1998 to 2008, there was a increase rate of 2.6% in Direct Selling.
In UK, 80% of the total Direct Sales generate the business with combined sales of £2 billion per year. These businesses range from small companies to large multi-national operations.
