(WASHINGTON D.C. – September 6, 2023) The Direct Selling Education Foundation (DSEF) today released its 2024 Economic Impact Report. This new study quantifying the annual economic impact of direct selling activity on the US economy was conducted by Professor Robert A Peterson, John T. Stuart III Centennial Chair in Business Administration at the McCombs School of Business, The University of Texas at Austin. It shows the direct selling industry contributed:

• $111.4 billion to the US economy in 2022, an increase of $28.3 billion from 2016 (a 34% increase).

• $15.5 billion in tax revenue to federal, state and local governments, an increase of $4.9 billion (a 46% increase) from 2016.

“Because of the nature of the direct selling industry and its widespread use of independent contractors, the total estimated economic impact of $111.4 billion should be considered conservative,” says Dr. Peterson. “What we’re seeing is a big effect on household income (induced effect), an increase of 70% from 2016, and real growth of 34% in total impact over the same period.”

The $111.4 billion economic impact consisted of:

• The Direct (retail sales) Effect of direct selling, $40.5 billion
• The Indirect (upstream or supply chain) Effect of direct selling, $31.0 billion, and
• The Induced (downstream or household) Effect of direct selling, $39.9 billion

“The impact of the channel continues to grow as people engage with direct selling companies to earn supplemental income, pursue entrepreneurial opportunities and enjoy great products and services,” says Joe Mariano, President of Direct Selling Association and DSEF. “The channel is definitely hidden in plain view.”

Direct selling is a business model that offers entrepreneurial opportunities to individuals who, as independent contractors, market products and services to consumers, typically outside of a fixed retail establishment through one-to-one selling, in-home product demonstrations, or online.

DSEF Executive Director Gary Huggins noted, “it is extremely important to engage leading independent scholars and field experts as we seek to advance an understanding of the direct selling channel and its impact on the U.S. economy.”

Media Contact:
Gary Huggins
ghuggins@dsef.org

About the Direct Selling Education Foundation

DSEF engages and educates the public about how direct selling empowers individuals, supports communities and strengthens economies worldwide. For more than 50 years, the Foundation has partnered with members of the academic community to support research and education programs. These programs expand the knowledge and understanding of the fundamental principles of direct selling. DSEF works with more than 200 professors in a variety of disciplines—such as entrepreneurship, marketing, ethics, consumer studies, business and economics—to develop direct selling-related academic research, case studies and teaching content.

(WASHINGTON D.C. – September 15, 2023) – The nonprofit Direct Selling Education Foundation (DSEF) recently sponsored the “Building Trust in the Marketplace” conference at Emory University. The hybrid virtual and in-person event brought together leading academics, state and federal regulatory officials, consumer protection advocates and some industry representatives with expertise in key elements of building and sustaining marketplace trust.

The event was hosted by DSEF Fellow Dr. Sandy Jap, Professor of Marketing, Emory University and Dr. Kent Grayson, Associate Professor of Marketing, Northwestern University; participants explored issues related to ensuring a healthy marketplace with a particular focus on the direct selling retail channel, which has annual sales of $40 billion in the U.S. and over $183 billion worldwide. Conference sessions included a variety of views from university professors who study the channel, consumer protection advocates who have questioned some industry practices, regulators proposing new business regulations and experienced channel participants.

“This academic conference welcomed all points of view and involved some of the most esteemed academic minds in the country, “said Dr. Jap. “This kind of dialogue is vital to the development of good business practices and effective public policy.”

Direct Selling Association President Joseph Mariano added, “We are committed to a robust and fair exploration of the way direct sellers seek and build trust in the marketplace and to learning how we can build on our successes in creating trust with our customers and independent salespeople.”

Conference sessions explored important issues including:

• Guardrails responsible companies must implement to ensure that consumers and salesforce are protected in voluntary business arrangements and customer interactions.
• Pursuing effective and independent industry self-regulation as a complement to the appropriate role of federal and state regulatory bodies in protecting consumers.
• Federal and state law enforcement views regarding their role in ensuring effective consumer protection.

DSEF Executive Director Gary Huggins added, “The participation of leading experts who study trust and its impacts in various disciplines including marketing, ethics, consumer behavior and entrepreneurship will also serve as a catalyst for further research and public discussion to drive improvements in performance and industry best practices.” Huggins concluded, “The Foundation will continue to engage with our academic partners along with other key leaders and advocates to advance these critical discussions.”

ABOUT DIRECT SELLING EDUCATION FOUNDATION

For more than 50 years, DSEF has partnered with members of the academic community to support research and education programs. These programs expand the knowledge and understanding of the fundamental principles of direct selling. The Foundation works with more than 200 professors in a variety of disciplines—such as entrepreneurship, marketing, ethics, consumer studies, business and economics—to develop direct selling-related academic research, case studies and teaching content. In 2022, direct selling generated more than $40.5 billion in retail sales in the United States. More than six million entrepreneurs in the U.S. are selling products or services through the direct selling channel, providing a personalized buying experience for more than 40 million active customers. Visit DSEF.org for more information.

Allison Crick, University of South Florida, Named Grant Recipient

WASHINGTON, DC—June 15, 2021—The Direct Selling Education Foundation (DSEF) is pleased to announce its 2021 Sales Doctoral Student Grant Program recipient. Allison Crick, a student at the University of South Florida (USF), was awarded a grant that will help Association to Advance Collegiate Schools of Business (AACSB)-accredited doctoral granting institutions build, recruit and retain the next generation of aspiring sales-focused faculty and scholars. Allison is working with Dr. Andy Artis, Dr. Doug Hughes and Dr. Nathan Hartmann at USF’s School of Marketing and Innovation.

“On behalf of all of us at DSEF, I’d like to congratulate Allison Crick,” said Kimberly Harris Bliton, DSEF Senior Director, Academic Initiatives. “Four years ago, DSEF Fellow Dr. Jaramillo and I were discussing how we might encourage more PhD students to pursue an academic career in sales to meet current and future needs. The DSEF Doctoral Sales Grant Program was born from that conversation. We’re pleased to offer the grant for a third year.”

Dr. Fernando Jaramillo, (Professor and Associate Dean for Students and Programs, University of Texas at Arlington) and Dr. Greg W. Marshall, (Charles Harwood Professor of Marketing and Strategy, Crummer Graduate School of Business at Rollins College) administer the grant program, along with Bliton and DSEF Executive Director Gary Huggins.

“Now more than ever, funding for innovative new research on best practices for direct selling is of the utmost importance,” said Marshall. “The DSEF Sales Grant program recognizes and rewards the best of the best of next generation sales scholars whose work can positively impact direct selling practices well into the future.”

The grant recipients were selected from a pool of applicants who submitted proposals relevant to the direct selling channel, DSEF and Direct Selling Association (DSA) member companies. Over a four-year period, the recipients will receive $4,000 to develop and execute a research project focusing on a topic of relevance for DSEF and DSA member companies.

DSEF 2019 Doctoral Sales Grant recipients Carissa Harris, University of Nebraska-Lincoln, and Jen Riley, Kansas State University, will continue to receive grant disbursements through 2022. DSEF 2020 recipients Molly Ahearne from the University of Georgia and Scott Hachey from the University of Hawai’i at Mānoa will receive disbursements through 2023.

ABOUT DSEF

For more than 40 years, DSEF has partnered with members of the academic community to support research and education programs. These programs expand the knowledge and understanding of the fundamental principles of direct selling. The Foundation partners with nearly 250 professors in a variety of disciplines—including sales, marketing, management, economics, ethics and entrepreneurship—to develop direct selling-related academic research, case studies and teaching content. In 2020, U.S. retail sales from direct selling totaled more than $40 billion, with 7.7 million independent salespeople building full-time or part-time businesses in the United States.

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