Direct selling is the person-to-person presentation and sale of products or services, during a transaction that happens outside a designated retail location, i.e. home parties.
Direct sellers (also known as consultants or representatives) work as independent contractors, not employees, for the companies that make the products or services they sell. They usually earn a commission on products they sell, a discount on the products they buy, or a combination of both. Many direct selling companies also offer a multilevel compensation plan, meaning that consultants who recruit and train other consultants also earn a commission on sales made by these recruits.
The industry is growing worldwide, involving more than 15 million people who generate $30.8 billion in US sales and $112 billion in global sales. Although some orders and reorders (about 12%) take place online or by phone, a majority of direct sales happen at home shopping parties where trying out and selecting products becomes a social event.
If you want to know more about a direct selling company that you are considering joining, you can go to www.directselling411.com, the DSA’s consumer-oriented website. You will find a ton of information about direct selling, including how to get started.
