…True or False?
Direct selling is the marketing and selling of a product or service directly to consumers away from a fixed retail location.
In the U.S alone in 2006, direct sales accounted for more than $32 million in retail sales, involving more than 15.2 million distributors nationwide. According to The World Federation of Direct Selling Associations (WFDSA), in 2007 alone its 59 regional member associations accounted for more than $114 billion in retail sales through the activities of more than 62 million independent sales representatives.
Multilevel marketing, another name for network marketing, is a marketing strategy that compensates promoters of direct-selling companies not only for product sales they personally generate, but also for the sales of others they introduce to the company.
Network marketing is a respectable business, regulated by bodies like the Federal Trade Commission and the Direct Selling Association (DSA), a national trade association of the leading firms that manufacture and distribute goods and services sold directly to consumers. Members are guided by a strict code of ethics, ensuring that ethical business methods are observed. The DSA protects the interest of the member companies and independent business individuals they represent.
Most individuals involved in direct sales are independent businesspeople (also known as distributors) whose purpose is to sell the product or service of the company they choose to represent. Approximately 90% of direct sellers operate their businesses part time.
In network marketing, individuals can determine how much they are looking to earn. Large-scale success happens when a distributor (upline) works closely with other distributors they bring in, investing time and other resources to train them on how to become successful in building a solid ‘downline’. Exponential growth often kicks in when everyone is building a downline team of successful entrepreneurs, often multiplying to thousands of distributors and products/services.
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