The Myths and Truth about Direct Selling Business

by Ram Arora 2 months ago in fact or fiction

No ‘work-at-home’ scheme is demonized and misunderstood than network marketing and direct selling.

The Myths and Truth about Direct Selling Business
Photo by Hans-Peter Gauster on Unsplash

No ‘work-at-home’ scheme is demonized and misunderstood than network marketing and direct selling. At its best, direct selling and network marketing are seen as ‘unimportant’ mommy-business or something that Uncle Bob does only to find his good luck. And at its worst, it is perceived as scam artists and being ‘full of greedy snakes oil salesperson’. Simultaneously, others tout direct selling business as a viable method to jump-start a home-based part-time business.

If you are considering direct selling, then you need to examine some common myths and misconceptions about it. So, just have a close look at the following to understand this industry better:

1. Myth: Direct selling is an unethical pyramid scheme

Reality: In the pyramid test, the organization’s shape does not decide legality. If it did then most of the organizations and businesses including the government ones would be illegal. It is because they all have this pyramid structure. In general, an illegal pyramid scheme provides its members with no products/services and pays them as per the number of recruits.

But the legal structure, on the other hand, offers high-quality products and services to its members and distributors. Recruiting new distributors or members will allow them to increase their income based on the sales volume along with the team sales volume, not the total number of recruits. A legitimate direct selling business should adhere to regulations and laws along with publishing statistics of average income.

2. Myth: Only the people sitting at the top make money

Reality: Well! This particular argument describes a job more accurately. How often does an executive-level employee become the CEO in the same company? The bitter truth is that a huge number of quality and talented employees never get the financial rewards and growth their work deserves.

Hence, it is not true that only the people who start early get money. Many ‘ground-floor’ members earn nothing while many people who have just started a few years back make a fortune. The actual thing is that in a good direct selling firm, members can get any amount of money, irrespective of where they are standing in the company. Simply put, direct selling income is associated with your efforts, not position.

Moreover, when members of direct selling businesses start earning income and rewards based on their efforts, they do not change their current position until the company asks them to leave that place. That means, no matter when you start or where you stand in the company, you will always have equal chances to do well if you put honest efforts.

3. Myth: Gradually, every program will get saturated

Reality: Saturation is not possible because there are not a finite number of members. As you already know that every day people are born and turn 18 years old. In this manner, adding new and potential marketers in your pool of prospects will never bring saturation. Even in the book of Zig Ziglar, the writer has said that Network Marketing for dummies, offers the best argument against the saturation myth. He asks, “Do you know anyone who doesn’t have a refrigerator? No? That doesn’t stop GE from selling more of them.”

4. Myth: Direct selling does not work

Reality: As per the Direct Selling Association, the direct selling businesses are a part of nearly $35.4 billion in sales in the USA in 2018. Additionally, over 6.2 million people are into direct selling in the USA. These numbers are enough to show you that this industry can also work well if you put a lot of honest efforts into the business.

5. Myth: No one becomes rich in direct selling

Reality: It is a fact that not everyone gets success in direct selling. Around 2-10% direct sellers earn big but these are the ones who work continuously in their businesses. But getting rich must not essentially be how this industry is judged! Rather, it should be measured by the number of sellers who reach their objectives.

Final Words

Direct selling business indeed has its issues. However, most of them hinge around misleading and false information. You can only achieve success in your venture if you avoid this misleading information. For this, you will need to gain a solid understanding of this industry, select your direct selling company carefully, and commit effort and time to your business. You can also consult a professional direct selling consultant for the right guidance.

fact or fiction
Ram Arora
Ram Arora
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Ram Arora

Ram Swaroop Arora is a digital marketing strategist who possesses profound knowledge of digital marketing. Being the founder of Digital Markitors, he specializes in undertaking and executing ROI driven digital marketing campaigns.

See all posts by Ram Arora