Direct Selling Industry
In my fifty plus years on earth, I have seen many direct sales
(multi-level marketing, MLM) companies come and go. Some of the more legitimate ones that are still in business today and are going strong are; Mary Kay, Amway, Amsoil
, Shaklee, Tupperware, and Herbalife just to name a few.
One question that many people ask about this type of entrepreneur
venture is: Are these legitimate companies?
This is a fantastic question and one that I pondered many times over. The quick answer to this question is yes they are.
is a multi-billion industry today and are continuing to grow each and every day. With direct sales, you can choose to sell anything from cookware to cosmetics to financial products and even vacation packages and so much more.
What is the definition of direct sales or MLM?
The balance small business refers to direct sales as being: Direct selling refers to selling products directly to the consumer in a non-retail environment. Instead, sales occur at home, work, or other non-store location. This system often eliminates several of the middlemen involved in product distribution, such as the regional distribution center and wholesaler. Instead, products go from manufacturer to the direct sales company, to the distributor or rep, and to the consumer.
The products sold through direct sales are usually not found in typical retail locations, which means finding a distributor or rep is the only method to buy the products or services.
Why does direct selling attract so many people?
This industry is huge and it attracts a wide variety of people. According to the Direct Selling Association, there are over 15.2 million people involved in this type of industry just here in the United States. On top of that, there are over 114 billion people worldwide that operate in the direct selling industry.
So why are so many people attracted to this type of business is. Research and surveys show that people choosing this type of business in order to have flexible hours and be their own boss. Some people see this as a side hustle while others are working their business full time. The flexibility is yours.
But is direct selling or multilevel marketing legal?
Over the years these types of business structure have suffered a lot of bad press and have been scrutinized very heavily. I remember back in the 1980s there was a company called A.L. Williams and associates. This company skyrocketed to over 100,000 members selling term insurance. Today we know this same company as Primerica
.
Primerica is just one example of an MLM company that has been in existence for over 40 plus years. Primerica sells life insurance and other financial products. This industry is very heavily regulated by our government and this is why I used Primerica as an example to answer the question, is direct selling or MLM legal. If this type of business model was illegal then I am sure our government and the insurance industry would have closed down Primerica many years ago.
Also, take a serious look at Amway. This company has been around for over 59 years. Plus they have weathered the storms of bad press and being called a pyramid scheme business model. Today this company is still strong and doing well in this industry.
IS this industry for me?
Direct sales businesses are not for everyone. Take me for example, my personality is that of an INFJ which is considered an Introvert. I personally shy away from any type of sales or anything to do with asking people to purchase from me.
However, direct sales is a great way to start a home based business and if you are willing to put in the work you can make a very serious living.
My wife and step-daughter are two perfect examples of people that have no sales background and have successfully created a profitable business in direct sales. They both are representatives with a company called Thirty-One. This company sells handbags, totes purses, and accessories. Link
Thirty-One has been around for 16 years. Thirty-One has a very solid business program and they have a great mission to their organization.
In the days to come, we will take a serious look at what it takes to become successful in this type of business model.
