Direct Selling Boom

Originally posted on Wokingmums.com

The number of people working in direct selling - a livelihood dominated by women - has risen by 22% year-on-year in the first quarter of 2010, according to figures from the Direct Selling Association (DSA). Workingmums.co.uk looks at why the industry is defying the recession.



Healthy outlook
Women account for around 90% of all direct sellers. The latest healthy figures continue to demonstrate the upward trend registered for the industry in 2009 - annual statistics released by the DSA for last year show the industry, as a whole, attracted more than 325,000 new direct sellers. This was up 17% compared to 2008, and over 290,000 of the newcomers were women. And the prognosis for the future is healthy too. Richard Berry, director of the DSA, told Workingmums.co.uk. the direct selling industry could go up this year alone by 5-10%. ''The whole industry has the potential to expand by 100pc or more,'' he says.


So why has direct selling escaped the consequences experienced by other industries during the economic downturn? The answer lies in the type of products sold - cosmetics, clothes and jewellery. Recent research by Mintel shows that spending on clothes and beauty treatments is holding up well despite the economic slowdown.


''There is no fall off in consumer demand,'' says Berry. ''The majority of things - cosmetics, jewellery and household goods - do not suffer in a recession. They are largely impervious to economic conditions. We have seen the industry perform well in most economic dips we have traded through in the DSA's 45-year history.''

What's the attraction of direct selling?
''Flexibility is one of the key attractions,'' says Berry. ''Direct sellers can work the hours they wish to - it is truly flexible.'' Many parents looking to enhance their work/life balance see direct selling as a good option, and it also appeals to parents who are seeking to start a small business.


''The majority of sellers are women in a part-time business which fits in with family commitments, and often it's not something that they do for many years,'' explains Berry. Some are looking for a fill-up to their family income because their spouse's work has suffered in the recession - others have a short-term objective in mind, such as putting money earned towards Christmas or a family holiday. Some take up the occupation only when family commitments permit it - they may do it for a while, take a break and then resume later on.


Graduates are also turning to direct selling to supplement their income as they search for full-time jobs. ''It's not their career choice but it does give them an introduction to the world of commerce and shows potential employers they're prepared to work hard,'' says Berry.


Characteristics needed
''You don't need to be a super salesman or a roaring extrovert to start direct selling,'' said Berry. ''But you do have to be prepared to talk to people face-to-face and you have to like meeting new people. You need to be well-organised if you're running a little business, but probably no more so than any competent mum.''


The best way to sell anything is to give it your own personal recommendation. If you liked a product yourself enough to buy it, you can give it your own personal stamp of approval by selling it. ''That personal recommendation is gold dust,'' says Berry. ''You don't get that in a retail shop. Most customers really do like a personal recommendation.''


But he advises that direct selling is perhaps not suitable for people who want to take part in home-working schemes but don't want to set foot outside of their front door to drum up work. ''Direct selling is about meeting people face-to-face and talking to them,'' he insists.


How to get started
Visit www.dsa.org.uk to find out about companies who are looking for direct sellers. Firms registered with the Direct Selling Association have been approved by the Office of Fair Trading. Money is needed to invest, but there are safeguards for potential sellers. Nobody is permitted to invest more than £200 in the first seven days and you have 14 days in which to change your mind. The average investment to begin with is £100.

To join Neal's Yard Remedies Organic - visit www.skinorganics.org.uk


Holding a home party is a good method of starting off. Ask a friend to be a hostess and invite more friends to an evening to showcase your products. Offer the hostess a product free of charge in return for arranging the party. From that initial party, more requests for party evenings could follow and more word of mouth recommendations will boost business.