What is direct selling?

What is direct selling?
•D I R E C T S E L L I N G I S T H E S A L E O F A C O N S U M E R
PRODUCT OR SERVICE, PERSON-TO-PERSON, AWAY
FROM A FIXED RETAIL LOCATION.
•T H E S E P R O D U C T S A N D S E R V I C E S A R E M A R K E T E D T O
CUSTOMERS BY INDEPENDENT SALESPEOPLE.
DEPENDING ON THE COMPANY, THE SALESPEOPLE
MAY BE CALLED DISTRIBUTORS, REPRESENTATIVES,
CONSULTANTS OR VARIOUS OTHER TITLES.
•P R O D U C T S A R E S O L D P R I M A R I L Y T H R O U G H I N - H O M E
PRODUCT DEMONSTRATIONS, PARTIES AND ONE -ONONE SELLING.
Estimated 2005 U.S. Direct Sales
Estimated 2005 U.S. Salespeople
1-, 5- and 10-year growth rates
Popularity of Direct Selling*
 In 2000, 55 percent of American adults reported having,
at some time, purchased goods or services from a direct
selling representative. (Some recent surveys show this
number to be as high as 74%.)
 In the 2000 survey, one in five American adults (20%)
reported they are now (6%) or have been (14%) a direct
selling representative.
 Among direct selling customers, three out of four (77%)
have attended an in-home demonstration or party.
*DSA's 2000 Direct Selling Public Attitude Tracking Survey, conducted by Burke
Marketing Research
Industry Growth Potential Continues
 38 % of adult Americans surveyed in 2000 have
some interest in purchasing a product or service in
the future via direct selling.
 27 % had actually made a direct selling purchase in
the past year.
Growth
 Sales in the U.S. have more than doubled in the last
decade to more than $30 billion and are now more
than $100 billion worldwide.
 According to recent surveys, 74 percent of Americans
have purchased goods or services through direct
sales. That's more than the number who have
purchased through television shopping and on-line
computer services combined.
Percent of Sales by Major Product Groups
Industry Leaders
Avon (9 billion)
Amway (6 billion est.)
Mary Kay (3 billion est.)
Herbalife (2 billion)
Tupperware (1.8 billion)
Nu Skin (1 billion)
Percent of Sales by Census Region
West 25.7%
Midwest 25.2%
Northeast 15.7%
South 33.4%
Gender
Age
Marital Status
Education
Diversity
People from literally all walks of life, of all ages, are
successful in direct sales. About 75 percent of those
working in direct sales are women, 10 percent are
African American, six percent are Latino and three
percent are Asian, Native American or other. Many
people start part-time, and later leave their other
careers when direct selling becomes more lucrative.
Main Reason for Becoming A Direct Sales
Representative
 36%-Additional income
 31%-It's your business and making money through
direct sales in important to you
 29%-Discount/wholesale/free products
 4%-Other
What is a Pyramid Scheme?
 Payment or commission based on the recruitment of
individuals and not on the sale of product.
 No refund for goods or services.
 Large entry fees
 Pressure to purchase large orders
Global Market Size
Global Sales Force
`