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The Power of Direct Selling

If you consider yourself to be relatively newer to the world of direct selling industry, read this page with undivided attention. And if you consider yourself as one of the so-called veterans of the direct selling industry, read this page word-by-word with utmost honesty and sincerity. For, it is the fundamental responsibility of each of us to correctly understand, appropriately represent and prudently safeguard this new-age business model without letting it to be needlessly maligned.

First things first! Direct selling is nothing but the sale of a consumer product or a service, person-to-person, away from a fixed retail location, distributed through independent sales representatives who are sometimes also referred to as consultants, distributors, owners and many such titles. Direct sellers are not employees of the company. They are independent contractors who represent, demonstrate and sell the products and services of a company to retail customers in return for a commission. Such independent distributors are also encouraged to build a sales network of willing individuals who in turn can do exactly the same work subject to KYC compliance, as per the code of conduct and business ethics of the direct selling industry, adhering to the Model Guidelines of Direct Selling industry 2016.

Direct Selling is truly an exciting way of owning one’s own business as it offers an incredible opportunity for a common man to create his / her success story. Direct selling sales methods are employed in over 200 countries of the world to successfully distribute various products and services directly to the end users. In the USA, the direct selling industry has created more millionaires than any other industry, offering legitimate business opportunities to committed individuals with strong work ethics.With a sales force of over 90 million Independent Business Owners worldwide, the industry exceeds an annual turnover of US$ 189 Billion in the organized sector alone. This could well be the tip of the iceberg considering enormous unaccounted turnover in the unorganized sector too,literally in every country.

The Power of Direct Selling
The Power of Direct Selling

Powered by the digital economy with broadband internet and Smartphones, today, direct selling industry is completely transformed, worldwide. Having robust web presence has become extremely imperative for every direct selling company. Online video conferencing, webinars and small home meetings are some of the widely used successful sales method, where family members, relatives, friends or acquaintances congregate at a specific time to learn about the company, its products and services and the business plan. But in reality, the actual sale occurs when an Independent Business Owner (seller) meets a prospective customer (buyer) in a one-on-one business presentation where information about the products and services are made and the business plan is explained. Though any product or a service can be sold through direct selling, categories such as wellness products and services, personal care, home care, real estate, holidays, leisure and travel have performed very well amongst direct sellers.

Direct selling in India has been a largely popular sales-method since the mid 1990’s but even after 25 years,the industry is yet to receive the mainstream business recognition due to adequate industry-specific legislation. Exploiting such circumstances the business model has been severely abused by many unscrupulous players who continue to floatnumerous Ponzi schemes, pyramid schemes and collective investment schemes that cheatgreed-driven gullible publicwith the help of some unethical individuals, seriously jeopardizing its credibility. Sadly, many times legitimate direct selling businesses have also been equated with illegal money-circulation schemes due to lack of adequate understanding of how this modern distribution model works.

However, if you are determined to build a successful alternative career through a legitimate direct selling business, here is the good news.

After years of persistent follow up with the Government of India by associations that have been safeguarding the direct selling industry, the Inter-Ministerial Group (IMG) of the Government of India under the leadership of the Department of Consumer Affairs issued ‘Model Guidelines on Direct Selling’ on the 9th of September 2016. An advisory to this effect was sent to all state governments and union territories on the 12th of September 2016. Essentially, this advisory supersedes all the previously issued state level guidelines by Kerala and Rajasthan. On the 26th of September 2016, these model guidelines named ‘The Direct Selling Guidelines 2016’ were officially notified in the Gazette making them legally binding. As per the guidelines, all business entities engaged in employing direct selling sales methods are allowed to carry out legitimate business activities subject to filing an affidavit as prescribed by the Department of Consumer Affairs. This has come as a huge relief for millions of direct sellers who rely on this industry to take care of their families and a moral victory for this promising industry.

Welocity Booster is categorically committed to offer credible wellness products and services to its end users and offer a legitimate direct selling business opportunity by following every norm of ‘The Direct Selling Guidelines 2016’.

Download the following Links:

1. Model Guidelines on Direct Selling (9 September 2016)

2. Advisory on Model Guidelines on Direct Selling(12 September 2016)

3. Gazette Notification on Model Guidelines on Direct Selling (26 September 2016)