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Getting to know direct sales companies

Direct selling is an eerily vibrant and effective expansion of distribution channels for products and services around the world. In fact, if we look at the top toiletries businesses by profit, two of the top ten expanded through direct sales. In addition, in many developing nations, direct selling is a no-charge method of selling AND buying products and services. That is why direct selling companies are successful even in poor countries.

HOW IT STARTED

The WFDSA (World Federation of Direct Selling Associations) was founded in 1978. It was a non-governmental organization representing the direct selling industry worldwide. When WFDSA was created, there was a clear demarcation of direct selling companies that are considered “legitimate” and those that are not. In addition, the WFDSA also facilitated the development of Global Codes of Conduct for Direct Selling, as ethical conduct in direct selling is often overlooked by small businesses. All direct selling companies are required to follow these codes as a condition of membership in their respective national DSAs. An example includes making sure that companies do not mislead customers through false promises in their brochures and prohibiting any form of pyramid schemes. The operations of direct selling companies are routinely overseen by an independent code manager.

Currently, there are more than 58 national DSAs represented among its members, and in 2007, its members’ estimated retail sales reached more than USD 111 billion worldwide. This sales figure came from more than 67 million independent sales representatives worldwide. The most lucrative direct selling companies are those that spread faster than an Internet virus.

WHY DIRECT SELLING WORKS

Direct selling, in its truest sense, is a form of sale that does not include a “middleman” or any intervention by the establishment (distributions in shopping malls and stores). It gives the seller a “direct” opportunity to “directly” introduce their company’s products to potential buyers. Direct selling companies are typically those that sell high-engagement products like insurance, educational plans, and top-of-the-line cosmetics. They not only sell products but value.

Direct selling is beneficial for people who want to start their own business with very little capital. Most direct selling companies only require a small amount of purchase from your company as a “starter kit” for you to gain membership and legitimacy to sell their products. In fact, some of these businesses don’t even require purchase! They just need you to fill out a few application forms and pay a very small amount for an ID. And there you go. You can market your products and make up to 50% profit from them.

Also, direct selling is an alternative for consumers who like to take advantage of alternative malls (admit it, department stores get boring after a few years of living in the same area and going to the same malls). Direct selling is linked to the feeling of exclusivity for the consumer, since the products sold are presented to him personally. Usually, this type of sale also includes a very light payment scheme (for example, one month to pay).

In addition, it offers an alternative to conventional employment for those who want flexible hours and a flexible income opportunity. When you are starting out in this business, it will be good for you if you are not as prone to 8 hour commitments, like a regular job. Full-time direct sales agents only become full-time once they are very successful with direct sales.

As you can see, it is very easy but requires a lot of work. Earnings turnover does not come overnight, or in a strong overnight. The important thing is that you are assertive, dynamic and flexible at times. Also, the basics of personal management are highly recommended when working in this type of industry. Direct sales companies no longer help you first hand. They just make it easier for you to succeed, but you went through it yourself.