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.
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 guarantee as the top reasons for shopping through direct selling.
What are the responsibilities of a Direct Seller from a Member company?
As a Direct Seller of a Member company, you are responsible for upholding the Code of Ethics and Conduct. To uphold the standards of business ethics your company has pledged to uphold, which are embodied in the Model Code of Ethics
As a Direct Seller, your responsibilities include the following:
- Tell your potential customers who you are, why you're approaching them and what products you are selling.
- Explain how to return a product or cancel an order
- Respect the privacy of your customers by calling at a time that is convenient for them.
- Promptly end a demonstration or presentation at the request of your customers.
- Provide accurate and truthful information regarding the price, quality, quantity, performance and availability of your product or service.
- Offer a written receipt in a language your customers can understand.
- Provide your name and contact information, as well as the contact information of the company you represent.
- Offer a complete description of any warranty or guarantee
Can Direct Sellers make product and business comparisons between direct selling companies?
Companies and Direct Sellers shall refrain from using comparisons which are likely to mislead and which are incompatible with principles of fair competition. Points of comparison shall not be unfairly selected and shall be based on facts which can be substantiated. Companies and Direct Sellers shall not unfairly denigrate any firm or product directly or by implication. Companies and Direct Sellers shall not take unfair advantage of the goodwill attached to the trade name and symbol of another firm or product.
Where can I obtain the full member list of the IDSA?
To get the full list of the Indian Direct Selling Association member companies, you may go to Our Members Or write to us at firstname.lastname@example.org
How can I find out more about the Code of Ethics and Conduct?
To find out more, you may visit us at link of Code of Ethics
What qualification does one need for becoming a successful distributor?
Although the direct selling industry does not require any specific qualification, successful direct selling distributors are known to have exceptional:
- Selling skills
- Presentation skills
- Motivation skills
- Leadership skills
- A basic understanding of finance
However, two key factors critical for success are:
- Focus, commitment and hard work
- Faith in the direct selling profession and the industry
Can an individual company in the business of direct selling become a member of the WFDSA?
No. Only the national Direct Selling Association (DSA) of any country can be a member. Today it has DSAs of 58 countries as its members. For more detail, Go to WFDSA History
What are the new trends in the direct selling business?
We see the following new trends:
(a) All member companies are launching new products this year;
(b) All companies are expanding going to have new distribution centres to reach their customers quickly and the focus would be rural India.
Macro trends: Legitimisation, authenticity ,range of products, prevention of fly by night operators, gainful business opportunities for those who choose to sharpen their acumen ,growing support from the Indian and global Industry at large and requisite attention from the policy makers.
READY! SET! & GROW! This is how we see the industry at this point of time.
Your queries are welcome. It just goes to show that the direct selling industry is a force to reckon with and we are proud to have your attention.
How can you differentiate between legitimate & illegitimate direct selling Company?
|DIRECT SELLING COMPANIES||FRAUDULENT FINANCIAL PYRAMID SCHEMES|
|Direct Selling means the marketing of the products/services to the consumers generally from home or workplace i.e. locations away from permanent retail locations. It is done through explanation and demonstration of the products by a direct seller.||"Pyramid" means a multi layered network of subscribers to a Money Circulation Scheme formed by subscribers enrolling one or more subscribers in order to receive any quick or easy money benefit, directly or indirectly, as a result of enrolment.|
|They offer genuine business opportunities. It involves quality sales plan of goods and services.||Pyramid schemes involve products which are cheap to produce and have no established market value. New miracle products, exotic cures, mattresses, online surveys are some of these.|
|The cost of entry is reasonable.||Cost of entry is extremely high.|
|Plans are entirely performance based.||No Plan or Pyramid Plan.|
|Returns are dependent on the time invested and motivation of the direct seller and come slowly.||Returns are easy and quick.|
|Sales incentive is based on sale of goods/services.||Incentives are based on recruitment rather than on sales.|
|Enrollment is not compulsory of doing business.||Enrollment is mandatory for doing business.|
|Business is by sale of products. Enrollment is optional.||Commission based on recruitments.|
|Sales incentive to all distributors is through Direct Selling Companies only.||Payment through members and negligible pay outs by promoters.|
|Direct seller joining the business can exit the business within reasonable time. Investment is refunded as per the company provisions in the Initial Contract. Exit policy in place for termination of contract.||No refund or exist policy exists.|
|Products have 100% buy-back guarantees to ensure protection of end-consumer as per company policy.||Products usually do not have a buy-back policy.|
|Products are supplied to meet genuine demand and direct sellers are encouraged to hold minimal inventory and replenish as and when need arises.||"Front loading" is encouraged. Therefore, products are thrust upon the direct sellers, irrespective of their ability to sell the product and the actual market demand.|
|Rigorous product and product Sales training is done. Incentives based on sales or products and Sales performance are offered.||There is no emphasis on product or product sales training. Emphasis merely lies on collection of money from new enrollment.|
|Every sales person had to abide by the Industry Model Code of Ethics.||There exists no Code of Ethics.|