DSA

all of themon an as-needed basis.We have a commit- tee structure throughwhichwe interact with all of our members so theycan networkwith each other.We do not have a hard copy,print communication in the form of amagazine,however we cooperatewith at least one industrypublication and sometimes,more,put out byvendors and suppliers,inwhichwewill deliver our Association and industrymessages.” Finally,speaking about DSA’s protecting function, Mariano says,“Likemost associations and trade organi- zations,we have an advocacy function,which is rep- resenting the interests of the businessmodel across a wide range of governmental and policymaking bodies, including state legislatures,town and citycouncils, and,of course,the United States Congress; and also in conjunctionwith our colleagues and other associ- ations and,at theworld federation,increasinglyat the international level in front of global bodies.” While direct selling accounts for less than one per- cent of total retail sales in the United States,Mariano stresses that its growth rate has traditionallyoutpaced that of other retail sectors.In fact,from themid 1980s until the Great Recession of 2009,the industryhad un- broken growth of about four or five percent each year, on average,even though demographic changes and the growing trend toward internet shoppingmight logicallyhave predicted the sector’s demise.“Yet the di- rect selling channel,which relies on face-to-face inter- action,social interaction,knowledge about the product –all of these things actuallyenhanced the abilityof the channel tomaintain its viability,becausewewere able to provide services and information about prod- ucts that were not otherwise available in the growth of either direct marketing,or big-box retailing,and even, to some extent,internet retailing,”Mariano asserts. “At the same time,”he continues,“direct selling THE DIRECT SELLING ASSOCIATION proved itself to be flexible enough to incorporate elements of all of those other channels into its core methods by themillions andmillions of contractors who sold these products on a personal,face-to-face level.And so,oncewe hit the Great Recession,we actuallyhad only slight turndowns in the total,esti- mated retail sales compared to other segments,and thus,wewere able to recover as amarketingmethod more quicklyand,indeed,the number of sales people continued to growthrough that period of time.And since that time,as the economy improved,we returned to that four to five percent growth rate.So,there’s been a significant increase and a significant growth in the channel,typified byhome parties,as well as network marketers who have large sales organizations where theybring in people to sell products,personally,de- spite the reduction of people out in the field because of the lessening of the door-to-door component.”In fact,today,approximately90 percent of DSA’smembers aremulti-level marketing companies,whereas in 1970, onlyfive percent of itsmembers were in that category. WhileMariano admits that the direct selling channel has its challenges,including the presence of a small number of companies and individuals who claim to be legitimate direct sellers,but do not ascribe to the DSA’s high ethical standards,as well as the abilityof internet retailers to nowdeliver their own products in amore timelymanner than ever before,he still believes that the businessmodel has an appeal that is strong and compelling.“The opportunity for individuals to be micro-entrepreneurs and to have the flexibility to sell, andcombine thosesalesactivitieswithsocial activities –theseareall things that appeal toayoungergenera- tionthat sees,andwants tosee,lessand lessdistinction betweentheirpersonal lives,theirprofessional activities, andeventheir communityactivities,”hestates.“Theyare viewing,byall accounts,opportunities thatwill allow themtocombineall of themwithadegreeof flexibility. Anddirect sellingallowsyoutodothat.” So,while the days of the Fuller BrushManmay be long gone,direct selling continues to be a viable segment of the country’s retail sector.And,as such,the Direct SellingAssociationwill continue to be its lead- ing voice and protector.

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