INTERNATIONAL RESEARCH JOURNAL OF SCIENCE AND ENGINEERING

57-64

Authors: Gupta Swaroopa Rani N

Direct selling is a type of sales channel where products are marketed directly to customers, eliminating the need for middlemen – wholesalers, advertisers and retailers. Direct selling can be conducted one-on-one, in a group or party format, or online. Direct selling is a dynamic, vibrant, rapidly expanding channel of distribution for the marketing of products and services directly to consumers. The purpose of this paper is to describe direct selling and the benefits that it brings to the marketplace. There are presently over 60 national DSAs represented in its membership, and in 2011 it is estimated that worldwide retail sales by its members accounted for more than US$154 Billion through the activities of more than 91 million independent sales representatives. The World Federation and its national DSAs have always understood the necessity for ethical conduct in the marketplace and as such the WFDSA has developed a World Codes of Conduct for Direct Selling which all national DSAs have approved and implemented in their national codes. All direct selling companies agree to be bound by these codes as a condition of membership in a national DSA. What makes direct selling such an attractive career option is the flexibility it offers. Those who engage in direct selling are independent contractors who determine how much time and energy they want to invest in their businesses. They set their own hours, and define and control their work-family life balance. An Independent Sales Representative is her own boss. Direct selling is also a way to own a business with a minimal capital investment. Research shows some of the most popular reasons people choose direct selling are it is a good way to meet and socialize with people, it offers flexible work schedules, it is a good way to earn extra income, it is a good way to own a business and Earnings are in proportion to efforts. There are no required levels of education, experience, financial resources or physical condition. People of all ages and from all backgrounds have succeeded in direct selling. Direct sellers are independent contractors. You're your own boss, which means you can work part-time or full-time - you choose when and how much you want to work, set your own goals and determine yourself how to reach them, earn in proportion to your own efforts. The level of success you can achieve is limited only by your willingness to work hard, own a business of your own with very little or no capital investment and receive training and support from an established company. Thousands of people have lost a substantial amount of money by participating in pyramid schemes. Many of the victims knew they were gambling (although they didn't know the odds were rigged against them). Many others, however, thought they were paying for help in starting a small business of their own. These people were fooled by pyramid schemes disguised to look like legitimate businesses. The purpose of this paper is to help you avoid falling victim to pyramid schemes, whether simple or disguised. Simple pyramid schemes are similar to chain letters, while disguised pyramids are like wolves in sheep's clothing, hiding their true nature in order to fool potential investors and evade law enforcers. You can buy with confidence, when you purchase products from a direct selling company that is a member of your local DSA. Each DSA member company must adhere to a Code of Ethics, which protects you as a consumer. The information provided in this paper will help us understand our rights as a consumer. It will also answer some general questions we may have about the direct selling industry. It also contains Global Statistics on Sales Strategies, Product Categories and Sales Methods.