Direct Selling Industry

Direct Selling is the marketing and selling of products directly to consumers away from a fixed retail location. Peddling is the oldest form of direct selling. Modern direct selling includes sales made through a party plan one-on-one demonstration, and other personal contact arrangements as well as internet sales. Depending on the company, the direct sellers may be called distributors, representatives, consultants or various other titles.
 
An important component of the Direct Selling industry is multilevel marketing (MLM). We also refer to this as network marketing and it has proven over many years to be a highly successful and effective method of compensating direct sellers for the marketing and distribution of products and services directly to consumers. Multi-level Marketing is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other people that they recruit. This recruited sales force is referred to as the participant’s “downline” and can provide multiple levels of compensation.
 
Simply put, direct selling is a distribution method. Multi-level marketing refers more specifically to a type of management and reward structure which is found in direct selling. A direct selling organization that offers a multi-level compensation plan pays its distributors based not only on their own sales, but also on sales of others who they have brought into their business.  It’s interesting to note that over 95% of these companies are offering their products with a networking marketing compensation plan.
Understanding what Direct Selling is and what separates it from what we might refer to as ‘traditional’ or retail selling is important if you’re involved in the industry. This is a large, global industry and it is unique in many ways. That’s why so many people are deriving additional part-time income – or are earning their sole income, often quite a significant income through Direct Selling – or Multi-level marketing.

Identify a company and product that appeal to you

Take your time deciding
Does “getting in on the ground floor” mean that everyone joining after you will be less satisfied or happy? A legitimate opportunity won’t disappear overnight. Think long-term. Ask questions. About the company, its leadership, the products or services, start-up fees, realistic costs of doing business, average earnings of distributors, return policies, and anything else you’re concerned about. Get copies of all company literature and read it! Consult with others who have had experiences with the company and its products. Check to see if the products or services are actually being sold to consumers. Investigate and verify all information Do not assume that “official looking” documents are accurate or complete or even produced by the company, as opposed to the person trying to recruit you. Need further help evaluating a company? Contact us at info@dsa.org.sa

The cornerstone of the DSA SA commitment to ethical business practices and consumer service is its World Codes of Ethics. Every national DSA pledge that it will require each member as a condition to admission and continuing membership in the DSA to comply with the WFDSA World Codes of Ethics for Direct Selling with regard to direct selling activities both inside and outside of its home country, unless those activities are under the jurisdiction of Codes.

• Tells you they are, why they're approaching you and what products they are selling.
• Explains how to return a product or cancel an order.
• Respect the customer's privacy by calling at times that best suit their convenience and wishes.
• They will provide an accurate and truthful information on the price, quality, performance, quantity and availability of their products or services.
• They won't engage in any deceptive, unlawful or unethical recruiting or sales practice.
• When they're sharing the business opportunity with any prospective recruits into their business, they base all actual and potential sales and earning claims on documented facts.

Legitimate opportunities have some very clear and identifiable characteristics. If, by the way, anyone tries to ‘entice’, to have you join or become part of anything which could be seen as a ‘get-rich-quick’ scheme or ‘financial success overnight’ without having to do any work, then that’s neither legitimate nor is it sustainable.
 
Characteristics which clearly identify a legitimate business opportunity.

• Startup cost should be minimal.
• Marketing business requires some commitment by you.
• No company should require you to buy large quantities of products.
• The money you'll earn should be based on the sale of products and services.

Direct selling offers important benefits to people who want an opportunity to earn income and build a business of their own, to consumers as an alternative to retail stores, and a cost-effective way for business to bring products to market.
​Consumers benefit from direct selling because of the convenience and service it provides, including personal demonstration and explanation of products, home delivery, and generous satisfaction guarantees.
Direct selling offers an alternative to traditional employment for those wanting a flexible opportunity to supplement household income, or whose circumstances don’t allow regular employment. Direct selling opportunities can develop into a fulfilling career for those who achieve success and choose to pursue their independent direct selling business on a full-time basis. Start-up costs in direct selling are typically low. Usually, a modestly priced sales kit is all that’s needed to get started, and there is little or no inventory or other cash commitment to begin. This stands in contrast to other businesses with the cost and risk associated with larger outlays.
Direct selling offers a distribution channel for businesses with innovative or distinctive products that for cost or other reasons are not suited to other retailing.
As the external Socio-Economic Impact Studies for the various markets show, direct selling is a positive benefit to the economies and people where direct selling companies operate and serves consumers with a convenient source of quality products.

Direct selling is unique among retail channels because of the way in which products and services are marketed to customers. Instead of relying on traditional retail outlets or online marketplaces, direct selling companies maintain a salesforce of millions of independent workers that added $189.6 billion to the global economy in 2017. Real estate, insurance, travel and technology companies and well-known brands also rely on independent workers to deliver products and services to consumers. Independent work adds value to those who choose to pursue it, to the economy and to society.
Independent direct selling consultants earn commissions on sales but work for themselves. They set their own hours, create their own marketing plans, determine whether to build a sales team and how to mentor those within it and how to serve their customers.
Millions of independent direct sellers see advantages in working for themselves. The most obvious is the chance to build and grow their own business and run it how they see fit. The freedom and flexibility to set their own working hours draws all types of people to direct selling, including parents with young children, students, caregivers, retirees, military spouses and many more.
Start-up costs for most direct selling companies are a few hundred dirhams or less because direct selling isn’t reliant on overhead like real estate, facilities and equipment or traditional advertising that can cost tens- or even hundreds-of-thousands of dirhams.