How It Works

Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Peddling, for instance, is the oldest form of direct selling but it is quite outdated. Modern direct selling includes sales made through a party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales. A textbook definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs.

Being a multi-billion dollar business, DS is now viewed as a major means of trade which is being used by more and more firms. Nowadays, it has grown to such an extent that it has turned into the driving force of the 20 century’s economy. Renowned and important people like Bill Clinton and Robert Kiyosaki have expressed their support for this method of trading. According to the statistics released by WFDSA, this industry registered an annual turnover of over $ 113 billion in 2008. Direct Selling’s pioneers hold that it will be the future’s novel method of trading. Nonetheless, in the not-too-distant past, it was wrongly denounced as a Pyramid scheme or a trick to hit the jackpot overnight. However, those who have chosen this type of trade have no difficulty in persuading people into believing that DS is legitimate and reasonable means of producing sales.

Direct Selling Progress
So far, the world has widely embraced the idea of direct selling, some 4500 big businesses sell their products through this method. Among those companies, we can name Coca-Cola, Gillette, I.B.M, Colgate-Palmolive, Philips and General Motors (G.M). Direct Selling has been proven in over 125 countries, and some 66 million people are successfully using it. Thirteen million people had been engaged in this marketing by 2002 just in the U.S. alone, and the number soared to 15.2 million in 2006, with the industry amounting to over $ 32 billion of the turnover in the U.S. economy. John Kalench, the renowned writer and marketer, believes that Direct Selling has provided one of the best financial opportunities in history. Thanks to the Direct Selling Industry, some 64000 people have managed to earn eight-figure incomes by 2002 just in the United States. According to statistics published by DSA, in 1992, approximately 50 percent of those who spent their time doing direct marketing more than 40 hours a week earned over $ 50 thousand annually. Also, 10 percent of them had an annual income of $ 100 thousand.

A study conducted by Upline News Letter about active direct sellers in direct selling led to the conclusion that the highest annual incomes generated through DS range from 125000 to a few million dollars on average. The total number of the well-paid individuals varies depending on the relative company. One of the most active international companies applying DS methods officially announced that 400 of its top leaders earn, on average, $787 000 annually.