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In 1992, a study of the direct selling industry was commissioned by the Direct Selling Association and conducted by Nathan Associates. It revealed that approximately 90 percent of the industry’s salespeople were women.
This figure has fluctuated in recent years years between 65 and 75 percent. This is not surprising, given the fact that early successes in the industry, such as Avon Mary Kay, and Tupperware, found their support among housewives. The 1992 DSA study found that “the ‘average’ person working in direct selling is a white, married woman, aged 35 to 44, with some college education, a household income of $25,000 to $30,000, a working husband, and children.” The research also revealed that this person is adding $200 to $300 per month to the family income, working between five and ten hours a week.
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Every month, companies mail (or email) their active distributors computer management reports about their downline sales organizations. These are typically referred to as downline reports or genealogy reports. (Auxiliary reports and other information are often available upon request.) A downline report is basically a lengthy computer printout showing important activity and indicators in a particular downline sales organization. The typical downline report about your sales organization would include the following information for you and the individuals in your downline sales organization:
1. Rank or position reached in the organization.
2. Levels below you or break-away position in the organization.
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Independent distributors in network marketing companies earn money in two basic ways:
1. Retailing – They buy products from their companies at wholesale prices, sell them at retail prices, and keep the difference. Or, they simply take orders and receive commissions. This is basically the same compensation offered by conventional marketing companies, except that independent distributors for network marketing companies are not merely employees. Instead, they are their own bosses – the owners of their own business.
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The Direct Selling Association (DSA) has offered some tips for distributors looking to start their own direct selling business. Some of which include:
- On Your Own or With Support?
- What Kind of Business?
- Do your Research!
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