Business News
Riding the Wave of the Booming Direct Sales Industry
By
Sep 13, 2005, 22:11

(ARA) – For many people, direct sales isn’t just a convenient alternative to shopping at stores for housewares, gifts, candles, scrapbooking supplies and even gourmet foods. It’s the chance to enjoy a night out, shopping and having fun with friends. And for those who sell these products, direct sales has given them a way to provide for their families while enjoying the independence of owning their own business.
One example of a company that has been extremely successful in this arena is Minnesota-based Tastefully Simple, a direct sales company that offers gourmet foods at home taste-testing parties. Founded just 10 years ago “on a dream and a shoestring” by President & CEO Jill Blashack, Tastefully Simple now has annual sales nearing $120 million. For the past four years, Tastefully Simple was ranked near the top of the Inc. 500 list of the fastest-growing privately held companies in the nation.

"Making the Inc. 500 list one time is an honor," said Blashack, "but making it four consecutive years shows that Tastefully Simple is a dynamic company that's here to stay!"

Even in years when the economy is sagging, companies like Tastefully Simple are doing extraordinarily well. Over the past 10 years, the direct sales industry has outpaced retail growth, and it shows no signs of stopping, according to the Washington, DC-based Direct Selling Association, the voice of the industry.

“We have seen 19 consecutive years of growth in both sales and salespeople,” said DSA Communications and Media Relations Director Amy Robinson. “In fact,” she added, “U.S. sales reached nearly $30 billion in 2003, and more than 13.3 million people were direct sellers. The number of products and services sold via direct selling has increased dramatically, and companies, both new and well-established, are finding it to be a great way to do business.”

DSA President and CEO Neil Offen noted, “We occupy a niche in the world of retailing, but a growing niche and one more appreciated today than even one year ago.”

Why is direct sales enjoying such rapid growth? According to Robinson, “Consumers like direct selling because of the personal attention they receive – an element of the shopping experience that’s often missing in a brick-and-mortar setting.” The DSA notes that product quality, uniqueness and money-back guarantees are the top reasons buyers give for shopping through direct selling.

“Sellers like direct selling because of the flexibility and sense of accomplishment it provides, " Robinson noted. According to the DSA, most are women, though nearly a third are men or two-person teams such as couples. The vast majority are independent businesspeople – not employees of the company they represent. Approximately 90 percent of all direct sellers operate their businesses part-time.

People from literally all walks of life and all age groups are successful in direct sales. According to the DSA, direct sales appeals to so many people because it gives them the chance to be their own boss and choose how much they want to work. It also gives them the opportunity to own a business of their own with little or no capital investment. According to the DSA, success in direct sales is limited only by the amount of time and effort each individual puts into their business.

This June, as Tastefully Simple celebrates its tenth year in business, its nearly 20,000 independent consultants will be putting in a little extra time and effort. Though more than 25,000 taste-testing parties are held each month, Tastefully Simple consultants are expected to hold more parties than usual in June to mark the company’s birthday.

To experience firsthand what the direct sales industry is all about, Tastefully Simple invites you to attend or host a taste-testing party. For more information about Tastefully Simple, visit the company’s website at www.tastefullysimple.com. More information about the direct sales industry can be found at the Direct Selling Association’s website – www.dsa.org.

Courtesy of ARA Content

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