DIRECT SELLING is the marketing of products
and services directly to consumers in a face-
to-face manner, away from retail...
There are over 99 million
direct selling entrepreneurs
worldwide.
Last year, direct selling accounted for over
US$182 bill...
Indonesia is the #23 largest direct selling market in the world. Direct retail sales in
this developing market reached US$...
Russia is the world’s 11th largest direct selling market. In 2014, direct retail sales were in
excess of US$ 3.6 billion, ...
Your industry gives people a
chance to make the most of
their own lives. And to me,
that is the
very heart of the
American...
Network Marketing (NM) is an important component of
Direct Selling, where the company and its products are
marketed direct...
DOWNLINES build a
network of distributors & have
equal opportunity
with their UPLINES.
PROMOTION & FINANCIAL
GROWTH come f...
Father of Microfinance & Nobel Peace Prize Winner 2006 opened his
keynote address at the World DSA Congress in Singapore i...
DIRECT SELLING
an alternative source
of income during the
economic crisis
During an economic crisis, companies
downsize an...
What are the BENEFITS of
being a direct sales professional?
Choose when, where and how much you want to work.
Earn profits...
COMMON MISCONCEPTIONS
99.9% of people lose money from network marketing.
Most network marketing companies are pyramid sche...
Network marketing is the big
wave of the future.
It's taking the place of
franchising, which now
requires too much capital...
PYRAMID
SCHEMES
Right from the start, network
marketing companies will tell you
that financial freedom requires hard
work, dedication and ...
Network marketing companies help
distributors keep track of purchases,
commission earnings & product
delivery status while...
They believe in achieving strong long-term growth and
stability by creating a culture of ethical marketing.
The business p...
Unlike Pyramid Schemes, where there are no legitimate
products/services for initial investment, network
marketing companie...
Network marketing companies apply
fair and reasonable compensation plan
restrictions in their distributor’s earnings to
cr...
Network marketing companies follow strict
methods in dealing with inventory and do not
encourage product overloading. This...
Many network marketing
companies are really business
schools that teach values not
found in traditional business
schools. ...
www.qnet.net
Busting Direct Selling Myths: Illegal Pyramid Schemes VS Legitimate Direct Selling
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Busting Direct Selling Myths: Illegal Pyramid Schemes VS Legitimate Direct Selling

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Want to understand the Direct Selling industry and how to tell an illegal pyramid from a legitimate network marketing company? This presentation helps you understand the key differences.

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Busting Direct Selling Myths: Illegal Pyramid Schemes VS Legitimate Direct Selling

  1. 1. DIRECT SELLING is the marketing of products and services directly to consumers in a face- to-face manner, away from retail locations.” – World Federation of Direct Selling Associations (WFDSA) “
  2. 2. There are over 99 million direct selling entrepreneurs worldwide. Last year, direct selling accounted for over US$182 billion in global retail sales. (WFDSA Annual Report 2015)
  3. 3. Indonesia is the #23 largest direct selling market in the world. Direct retail sales in this developing market reached US$ 1.1 billion in 2014, up 8% vs 2013. DSA member companies in Indonesia employ 3,472 people. In 2014, direct selling in the US generated US$ 34.5 billion in estimated retail sales, up 5.5% and a US record. The industry has given jobs to more than 55,300 people in the US - people who are experts in their fields and serve as resources to help independent representatives grow their business. DIRECT SELLING AND THE WORLD ECONOMY
  4. 4. Russia is the world’s 11th largest direct selling market. In 2014, direct retail sales were in excess of US$ 3.6 billion, up 0.3% year-over-year. The 2014 sales figure is a record for Russia. The independent salespeople in Russia represent the nation’s 19 direct selling association member companies. These companies employ some 6,743 people. Turkey’s 1.1 million direct sales people, increased in numbers by 2.1% in 2014. 84% are women – that’s nearly a million female entrepreneurs. Just 2 of the 10 Turkish DSA members are Turkey-based companies. For the others, communications, customer service and IT functions are largely supported by direct selling company regional infrastructure in other countries. In this, Turkey provides a strong example of the interdependence of nations and how direct selling helps attract direct foreign investment to a market. (WFDSA Annual Report 2015)
  5. 5. Your industry gives people a chance to make the most of their own lives. And to me, that is the very heart of the American dream. “ ” Former US President Bill Clinton
  6. 6. Network Marketing (NM) is an important component of Direct Selling, where the company and its products are marketed directly through word-of-mouth. WHAT IS NETWORK MARKETING? A legitimate business with real products sold at a fair price, where financial success is due to network marketers’ dedicated efforts. (Entrepreneur.com, 25 December 2000)
  7. 7. DOWNLINES build a network of distributors & have equal opportunity with their UPLINES. PROMOTION & FINANCIAL GROWTH come from encouraging downlines to achieve the same. Start at the bottom & RISE TO THE TOP by building your own business. NETWORK MARKETING
  8. 8. Father of Microfinance & Nobel Peace Prize Winner 2006 opened his keynote address at the World DSA Congress in Singapore in 2008 with these memorable words… This morning, while sitting with the leaders of this industry, I was amazed by how the way we work is so similar. We got involved in the business in different ways, but since our objective was the same, we somehow became very close to each other. In the same way, what I'm about to tell you today will sound familiar to you as well. “ ” Professor Muhammad Yunus
  9. 9. DIRECT SELLING an alternative source of income during the economic crisis During an economic crisis, companies downsize and lay off staff. Starting a traditional business requires substantial capital investment which not many can afford. People choose to purchase necessities and consumable goods from their business partners, colleagues, family and friends.
  10. 10. What are the BENEFITS of being a direct sales professional? Choose when, where and how much you want to work. Earn profits in direct proportion to your efforts. Use direct selling as a full-time business or supplementary income source. Open to everyone regardless of age, race, gender, experience, etc. Good way to meet people and socialise. Access to innovative products not found in retail stores. Convenient service provided.
  11. 11. COMMON MISCONCEPTIONS 99.9% of people lose money from network marketing. Most network marketing companies are pyramid schemes. Recruitment is the key to success in network marketing. Network marketing companies are unregulated. Requires inventory purchase. Drop-outs are stuck with what they have purchased. All network marketers just want an easy way to make money.
  12. 12. Network marketing is the big wave of the future. It's taking the place of franchising, which now requires too much capital for the average person. “ ” Jim Rohn (1930-2009) Multimillionaire & Motivational Speaker
  13. 13. PYRAMID SCHEMES
  14. 14. Right from the start, network marketing companies will tell you that financial freedom requires hard work, dedication and business smarts. LEGITIMATE NETWORK MARKETING is not a ‘get rich quick’ scheme Any company that promises you an easy way to get rich quickly (especially through membership building) is probably a scam. $$
  15. 15. Network marketing companies help distributors keep track of purchases, commission earnings & product delivery status while offering full customer and marketing support. LEGITIMATE NETWORK MARKETING provide business tools Network marketing companies place huge emphasis on training and have a lot of qualified trainers to help you understand the business and products better, so you have the ability to mentor and steer you in the direction of success. LEGITIMATE NETWORK MARKETING has a solid training system
  16. 16. They believe in achieving strong long-term growth and stability by creating a culture of ethical marketing. The business policies and procedures of network marketing companies are clearly stated, binding every network marketer to strict regulations and agreements. LEGITIMATE NETWORK MARKETING has proper policies, procedures and ethical marketing codes
  17. 17. Unlike Pyramid Schemes, where there are no legitimate products/services for initial investment, network marketing companies spend millions on research & development to provide high quality products that meet the lifestyle needs of people across the globe. LEGITIMATE NETWORK MARKETING delivers quality products or services Network Marketers are rewarded mainly for selling products. In a pyramid scheme, there is no financial return unless you have successfully recruited others into the company. LEGITIMATE NETWORK MARKETING gives out commissions based on product sales
  18. 18. Network marketing companies apply fair and reasonable compensation plan restrictions in their distributor’s earnings to create equal income opportunities for all. LEGITIMATE NETWORK MARKETING imposes restrictions on compensation plans In a pyramid scheme, those who came in first make all the money while new members lag hopelessly behind because they were recruited when the money pool had already been depleting.
  19. 19. Network marketing companies follow strict methods in dealing with inventory and do not encourage product overloading. This drives focus towards proper networking and distributors do not have to worry about having to dispose of excessive product supply. LEGITIMATE NETWORK MARKETING does not encourage product overloading
  20. 20. Many network marketing companies are really business schools that teach values not found in traditional business schools. Values such as the best way to become rich is to teach yourself and other people to become business owners, rather than to teach them to be a loyal employee working for the rich. “ ” Robert Kiyosaki Best-selling Author of Rich Dad, Poor Dad
  21. 21. www.qnet.net

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