What is World Federation of Direct Selling Associations?
Direct selling is also known Multilevel marketing is a retail channel for the distribution of products
and services. At a basic level it may be defined as marketing and selling products direct to consumers
away from a fixed retail location. Sales are typically made through party plan one to one demonstrations
and other personal contact arrangements. A definition from a text book is The direct personal
presentation demonstration and sale of products and services to consumers usually in their homes or at
their jobs. Industry representative the World Federation of Direct Selling Associations reports that its 59 regional member associations accounted for more than US$114 Billion in retail sales in 2007 through the
activities of more than 62 million independent sales representatives.
According to the WFDSA consumers benefit from direct selling because of the convenience and service it
provides including personal demonstration and explanation of products home delivery and generous
satisfaction guarantees. In contrast to franchising the cost for an individual to start an independent
direct selling business is typically very low with little or no required inventory or other cash
commitments to begin.
The United States Direct Selling Association (DSA) reported that in 2000 55% of adult Americans had at
some time purchased goods or services from a direct selling representative and 20% reported that they
were currently 6 percent or had been in the past 14% a direct selling representative.
Most direct selling associations including the Bundesverband Direktvertrieb Deutschland the direct
selling association of Germany and the WFDSA and DSA require their members to abide by a code of conduct towards a fair partnership both with customers and salesmen. Most national direct selling associations
are represented in the World Federation of Direct Selling Associations (WFDSA).
Direct selling is distinct from direct marketing because it is about individual sales agents reaching
and dealing directly with clients. Direct marketing is about business organizations seeking a
relationship with their customers without going through a consultant or retail outlet.
By far the majority of direct selling companies use a multilevel compensation plan where the agent is
paid not only for their own sales but also a percentage of the sales of other representatives they
introduce into the organization and help train.
