Direct Selling -FAQ's

Q. What is direct selling?

Direct Selling means the marketing of consumer products/services directly to the consumers generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations, usually through explanation or demonstration of the products by a direct seller.

Q. What products and services are marketed through direct selling?

Virtually every consumer product or service can be purchased through direct selling. People who purchase through direct selling cite product quality, uniqueness and money-back guarantees as the top reasons for shopping through direct selling.

Q. Who is involved in direct selling?

An estimated 15.1 million people are involved in direct selling in the U.S., and more than 66 million worldwide. More than 80 percent of US direct sellers are women. The vast majority are independent business people - they are micro-entrepreneurs whose purpose is to sell the product and/or services of the company they voluntarily choose to represent - not employees of the company. Approximately 90 percent of all direct sellers operate their businesses part-time.

Q. What products and services are marketed through direct selling?

Virtually every consumer product or service can be purchased through direct selling. People who purchase through direct selling cite product quality, uniqueness and money-back guarantees as the top reasons for shopping through direct selling.

Q. What is the difference between direct selling and direct marketing?

Direct selling is selling a product or service in either a person-to-person or party plan method. Direct marketing is catalogue sales.

Q. What is the difference between direct selling and multilevel marketing?

Direct selling refers to a distribution method, whereas multilevel marketing refers more specifically to a type of compensation plan found in direct selling. A direct selling company that offers a multilevel compensation plan pays its representatives/distributors based not only on one's own product sales, but on the product sales of one's "downline" (the people a representative/distributor has brought into the business, and, in turn, the people they have brought into the business).

Q. What is the difference between single level and multilevel compensation plans?

Single level compensation plan means a representative/distributor is compensated based solely on one's own product sales. In a multilevel compensation plan, representatives/distributors are compensated based not only on one's own product sales, but on the product sales of one's downline

Q. How to Protect Yourself?

1. Take your time. Don't let anyone rush you. A good opportunity to build a business in a multilevel structure will not disappear overnight. People who say "get in on the ground floor" are implying that people joining later will be left out in the cold. BEWARE!

2. Ask questions:

 *About the company and its officers.

 *About the products - their cost, fair market value, source of supply, and potential market  

   in your area.

 *About the start up fee (including required purchases).

 *About the company's guaranteed buy-back of required purchases.

 *About the average earnings of active distributors.

3. Get written copies of all available company literature.

4. Consult with who have had experience with the company and its products. Check to see if the products are actually being sold to consumers.

5. Investigate and verify all information. Do not assume that official looking documents are either accurate or complete.