Number of people involved in Direct Selling (in Millions). Source: DSA’s Growth & Outlook Survey, Salesforce Statistics.
By David Rauf
“Segmentation is a critical part of understanding the FTC’s view of what is legal and what is not.”
—Larry Steinberg, partner, Bulchalter
“From an industry perspective, people in the regulatory community clearly had a hard time seeing how the model worked. Segmentation will help to better demonstrate who is using the product and who is buying the product.”
—Joseph Mariano, president, DSA
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Lack of standardization and customer inclusion create poor optics.
In other words, direct selling is just like the rest of life. Hard work is rewarded. Lack of effort is not
For several years, direct selling companies have posted income disclosure statements on their websites to provide information on exactly how much money their distributors are making on average. Income disclosure statements have come to be viewed by many as a practice that can provide transparency for the channel as well as satisfy a concern of regulators.
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