I am sure you have known someone that is involved in direct sales. For some people, it can conjure up negative feelings. Some of you may know of a family member that hounded you to buy their products or to “join” them in their business. Some people may have even been tricked to come to a sales meeting. Sure, I get it, I know some of “those” same type people but there is much more to the industry than a few overly excited family members or dishonest friends.
The direct sales concept that has been around since the dawn of time. Traders brought their goods straight to the people all over the world. Direct Sales is the sale of a product or service away from a store. Typically, it is from person to person or in small groups. Avon was one of the first direct sales company with Tupperware appearing years later and the rest they say is history.
Often times when someone thinks of Direct Selling they think of pyramid schemes. Well, let’s take a look. A pyramid scheme brings people in and charges them a substantial amount of money for overrated merchandise. Pyramid schemes create financial hardships for consumers and they are illegal. Many times no product changes hands. Some people think only the people at the " top" or upline make money and in a pyramid scheme that is true. With legitimate direct sales companies, your upline may benefit from your sales but that does not take anything you earn away from you. You still earn what you earn, does that make sense? Some people may have been taken advantage of by an actual company but I bet you a hundred dollars that company is not around anymore. Companies that engage in a pyramid style model are usually here today, gone tomorrow. Just like anything else, do your research on any direct sales company you may be looking at.
Direct selling has an incredible place in commerce in this country. Last year alone it was responsible for an $83 billion impact, with over $10 billion being paid in local, state and federal taxes. (Direct Selling Association, November 2017.) So, while there are some dishonest companies out there, the majority of them are legitimate businesses providing great opportunities for everyday people like you and me.
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Direct selling provides millions of Americans the opportunity to supplement their incomes, balance work with family and purchase quality goods at a discount. Consider this statistics from The Direct Sellers Association.
* More than 20.5 million people were involved in direct sales in 2016. 5.3 million of those are building independent businesses as direct sellers. 15.2 million buy goods and services that they enjoy at a discount.
* Almost 75% of those involved in direct selling are between the ages of 25-64 years old and about 75% are female.
* People involved in direct selling have a higher percentage of annual incomes over $50,000 (58%) compared to all Americans (50%).They also have a higher level of average education than the average American. 52% of direct sellers are college graduates compared to 28% of all Americans, and 99% of direct sellers have high school educations compared to 85% of all Americans.
*Changes in technology and modes of communication along with higher interest in less traditional job opportunities make the Millennial generation of great importance to direct selling companies. Millennials are also more favorable toward direct selling than other generations.
Here a few articles about direct sales and its impact on peoples lives and on commerce.
http://www.womansday.com/life/work-money/tips/a5495/best-direct-sales-companies ( Notice the 4th company listed)
Reasons that people start a direct sales business vary. Some are women looking to supplement their income so they can stay at home with their kids. Some people start a business to meet people or help others.Some just don't want to work 9-5. Whatever the reason, the direct sales model is really quite extraordinary. Where else can you start a business with a relatively low start-up cost with access to all the training you need( if you pick a good company).You don't have to buy a building, hire people, buy inventory, or have any of those headaches and you have the opportunity to make money and possibly change someone's life right along with yours.
While technology has changed the face of business today and it is a wonderful tool even for the direct sales industry, the uniqueness of direct sales has always been face to face, building relationships. So while many people start a direct sales business to earn money it is a wonderful bonus to build lasting relationships.
There are many ethical direct sales companies out there today. I hope this article makes you want to learn a little bit more about the potential for direct sales.
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