International Law

Is Direct Selling a Niche?

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David Greiman writes about the direct selling industry:

"Product demonstrations now take place at parties and workshops in which potential customers become captive audiences as they learn about - and try - everything from kitchen and health items to lines of jewelry and homemade crafts.

"People love the opportunity to get together with friends and shop," said Amy Robinson, spokeswoman for the Washington, D.C.-based Direct Selling Association.

"It really gives people an opportunity to shop for something they love in a relaxed atmosphere, an excuse to get together with friends and family," she said. "So many people have full day planners.

The first things to go are social engagements." Those gatherings can be rather fruitful.

Between 1997 and 2006, direct sales in the United States grew from approximately $22.21 billion to an estimated $32.18 billion, according to figures compiled by the Direct Selling Association. Sales did drop slightly last year to about $30.8 billion, Robinson said."

Hmm, and just how much can you gross with direct selling? "And for the people doing the selling, the money definitely doesn't hurt. The median income is about $2,400 a year, Robinson said, but for many the earnings are higher. "It's very flexible. You can devote as little or as much time to it as you want," she said. "It's a great source of supplemental income. It can be a full-time job. It really depends on what your personal goals are."

I guess it is too bad that the Direct Selling Association opposes any government regulation which would require that their be an objective, verifiable and realistic basis for an earnings claim.

Oh and by the way, "median" is the number which splits the group into equal probabilities. If $2,400 is the median gross sales, which I doubt, then exactly half the direct sellers earn less than $2,400 and the other have earn more. So it is nonsense to say "but for many the earnings are higher", unless of course you want to be misleading.

Full post as published by Misleading Advertising Law on October 03, 2008 (boomark / email).