WASHINGTON, Nov. 26 /PRNewswire/ — The number of Americans working as direct selling consultants in the U.S. increased by more than 1 million to 15.2 million in 2006, according to a study released today by the Direct Selling Association, the industry’s national trade group.
According to the Growth & Outlook Survey Report: U.S. Direct Selling in 2006, the direct selling industry, which includes well-known name brands such as Avon, Mary Kay, Herbalife, The Pampered Chef and The Longaberger Company, gained 1.1 million representatives from the previous year. The study also reports that U.S.-based sales grew to $32.18 billion in 2006, up from $30.47 billion the previous year and $29.73 billion in 2004.
"Today, there are more products and services available than ever before, and more opportunities for men and women to work with companies that offer items that match their own interests and hobbies," said Amy Robinson, DSA’s Vice President of Communications and Media Relations.
The report indicates that women continue to represent the largest segment of consultants — 85.2 percent.
The survey also found that 89.9 percent of all direct sellers work part- time, less than 30 hours a week, while 10.1 percent work full-time.
"For stay-at-home moms, direct selling offers a fun and flexible way for women to work part-time around family obligations and other responsibilities," said Robinson. "Some do it to make extra money, perhaps to save for holiday shopping or family vacations — while others simply enjoy the social interaction or the opportunity to get their favorite products and services at a discounted price."
The study indicates that 75.2 percent of all sales in 2006 were conducted face-to-face: 66.9 percent in a home, 3.9 percent in the workplace, 3.8 percent at a temporary location and 0.6 percent of the time in other locations. The remaining 24.8 percent of sales occurred remotely: 12.8 percent of the time over the phone, 11.6 percent via the Internet and 0.4 percent of the time through other mediums.
In addition to flexibility, one of the greatest benefits of direct selling is the portability of the business.
"The direct sales model enables people to easily relocate their business and develop a customer base in new communities, while maintaining relationships with pre-existing customers in other states by accepting orders placed over the phone, via e-mail or on the Internet," said Robinson.
Clothing, personal care and accessories remain the largest product categories with 33.7 percent or $10.84 billion in sales. Home and family care products were second with $8.6 billion in sales, wellness third at $6.5 billion, leisure and education at $1.3 billion, and $4.8 billion for other products and services.
Other significant findings from the survey include the following: — 33.2 percent of sales occurred in the South region of the U.S., 26 percent in the West, 24.9 percent in the Midwest and 15.9 percent in the Northeast — 67.1 percent was generated by individual/person-to-person sales, 28.9 percent by party and group sales, 3.4 percent directly through a company and 0.6 percent via other methods
More information about Growth & Outlook Survey Report: U.S. Direct Selling in 2006 can be found on the DSA Web site: http://www.dsa.org/.
