What is Direct Selling, and Is It For You?

You’ve likely heard the term “direct sales” before, in casual conversation among friends or even by someone in the industry. If the phrase seems more popular lately, it’s no surprise—direct selling represents tens of billions of dollars in the U.S. economy annually, with growing communities across the United States connecting just under 50 million sellers and customers in 2020.

But what is direct selling, exactly? 

Direct Sales = A Business Model

Direct selling is a retail channel that allows companies to market products and services directly to consumers. The industry spans many different categories, from fashion, health, and wellness to cosmetics, kitchenware, and beyond.

Unlike a typical retailer, direct selling companies offer an opportunity for entrepreneurial-minded people to start their own business with low overhead and start-up costs. Those who sell products, commonly called “distributors,” claim a company affiliation, but are considered independent and have the freedom to work on their own terms. Typically, products sold by distributors are produced by and shipped directly from the company—eliminating the need for an expansive warehouse to store goods.

Many companies also allow distributors to create passive income by growing a network of direct sellers who work with them, earning a percentage of their team’s sales. Only a small percentage of distributors grow their teams substantially, but those who do find the most business success within the industry.

The Federal Trade Commission (FTC) and the Direct Selling Association (DSA) ensure the various companies, business models, products, and distributors are held to the highest ethical standard. The DSA works to “promote, protect and police the direct selling industry while helping direct selling companies and their independent salesforce become more successful.”

Who’s Involved in Direct Selling?

Thanks to the relatively low costs of starting a direct selling business, anyone can be a distributor. For some—slightly over 10% of distributors as of 2020—direct sales is a full-time job. The flexibility to work as much or as little as desired, on your own schedule, is enticing for those who balance priorities like raising a young family, being a caretaker, or working part time.

As of today, about 75% of the industry’s independent sales force is female, with the average seller in their 40s. But anyone can be a distributor, and direct sales opportunities certainly aren’t limited to the extroverts. In fact, many distributors work almost exclusively through social media, making digital instead of door-to-door connections with people across their town and around the world.

Conducting business online is more prevalent than ever. An ever increasingly connected world coupled with heightened health concerns has led many consumers to prefer digital meetups.

Deciding on a Direction

The range offered by the direct sales model is as expansive as the companies in this unique industry. Each operates its own way to sell a variety of products. Some have expanded on a global scale; others are honed in on single markets.

Ultimately, the best company for you is one whose values align with yours, is active in your location, and carries products you personally enjoy and use. This last point is important—speaking authentically about your product experience makes all the difference.

Do your research. A solid starting point is the DSA, which brings incredible leaders from across the industry together to shape the world of direct selling. The Board of Directors is currently headed by Kevin Guest, CEO of USANA Health Sciences, Inc.—a U.S.-based health and wellness company in the direct selling sphere.

As you look at companies, ask yourself the following questions:

• Do they have products I would actually use?
• Does their business model align with how I would run my business as a distributor?
• Do they maintain a quality, modern website?
• Are they an active member of the DSA and within good standing?
• Are they active on social media?
• Do they operate or directly support any non-profit organizations or initiatives?
• Do they have current partnerships with any other organizations?
• Have they been in the news recently, and if so, was it good news?
• Have they won awards for the quality of their products, business practices, or outstanding individuals within the company?
• Do I know anyone involved with this company, or can I find testimonials online?
• What resources are available to learn more about the company, opportunities, and products?

With this list of questions in mind, you’ll be able to paint a picture of your ideal company.

Something for Everyone

Each person has their own answer to the question, “what is direct selling,” and that’s a strength of the industry. The choice is yours when it comes to the company you associate with, the products you use and sell, the network you build, and the amount of effort you put into your business.

Now, the next time someone mentions a direct selling venture, you’ll have an idea of the unique opportunity they’re pursuing.