Direct Selling: An Accessible Path to Entrepreneurship
Direct Selling: An Accessible Path to Entrepreneurship. Direct Selling: An Accessible Path to Entrepreneurship Direct selling is a business model that offers entrepreneurial opportunities to individuals as independent contractors to market and/or sell products and services, typically outside of a fixed retail establishment, through one-to-one selling, in-home product demonstrations, or online.
Direct Sellers Value Opportunity
More than six million entrepreneurs in the U.S. are selling products or services through the direct selling channel, providing a personalized buying experience for more than 36.6 million customers. That’s because direct selling offers a low-risk way to participate in a fast-growing part of the economy.
Direct selling remains a relationship business.
- Some of those relationships still happen face-to-face; however, direct selling has changed along with the rest of the economy.
- Individuals are building relationships through social media, using e-commerce sites to complete transactions, and sometimes functioning as mobile “showrooms” for emerging product lines. The appeal of direct selling is often the ability to experience the product first hand and build a relationship with a salesperson who uses the product themselves. Direct selling fills in an important gap in the emerging online economy.
- For most Americans involved in direct selling, the revenue they earn is not their primary income but the way to a family vacation or presents for the holidays or just a little extra spending money. In fact, most direct sellers only work part-time in direct selling, and many have other jobs.
Direct sellers are your neighbors, your friends, and your family and whether they work a few hours a week or full-time, they are American entrepreneurs in the truest sense of the word.
- The information contained herein gives you a visual snapshot of direct selling in America. We hope you’ll take a couple of minutes to better understand what direct selling is all about.
Direct selling (Wikipedia)
- Direct selling consists of two main business models: single-level marketing, in which a direct seller makes money by buying products from a parent organization and, selling them directly to customers, and multi-level marketing (also known as network marketing or person-to-person marketing), in which the direct seller may earn money from both direct sales to customers and by sponsoring new direct sellers and potentially earning a commission from their efforts.
- According to the FTC: “Direct selling is a blanket term that encompasses a variety of business forms premised on person-to-person selling in locations other than a retail establishment, such as social media platforms or the home of the salesperson or prospective customer.”
- Modern direct selling includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales. Some sources have defined direct selling as: “The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs.”
- Direct Sellers Value Opportunity
- Americans Turn to Direct Selling Because It Meets Their Needs
- Direct Selling Is Popular by Any Measure
- 62% 65% 62% 78%
Met or exceeded expectations
- Long-term Supplemental Income
- Provides Flexibility
- Products at a Discount
82% Excellent/good 78% Would recommend
- Source: DSA 2014 National Salesforce Study
- Source: DSA 2014 National Salesforce Study
Direct Selling Is the Most Accessible Path to American Entrepreneurship
- Direct Selling Is Accessible With a Low Cost-of-Entry
- Direct Selling Is Low-Risk Refund Percentage If
- $1,000-
- $100,000+ 90%
You Decide to Stop
- $106.40
- $3,000
- 0% 0%
Direct Sellers Realtor
Chain Restaurant Franchise
- 2013 DSA Sales Strategy Survey
- Source: Conservative estimate based on the cost of courses needed to obtain real estate license, pay for initial materials, MLS system costs, REALTOR membership. Costs vary by state.
- Conservative estimate. Many large chain restaurants have start-up costs in excess of $1 million—though some are less.
- Direct Sellers Source: DSA Code of Ethics
Realtor Chain Restaurant Franchise
- Direct Sellers are Empowered
Direct Sellers Are More Affluent Than the Average American - Percentage of Household Incomes Greater than $50K
- All Americans: 52%
- Direct Sellers: 58%
- Direct Sellers Are Better Educated Than the Average American
Direct Sellers U.S. Average
- 99% 85%
- 52% 28%
Source: U.S. Census 2014 DSA National Salesforce Study
- College
- Graduates
- High School Graduates
- College
- Graduates
- High School Graduates
Source: DSA 2014 National Salesforce Study National Centre for Education Statistics
