The Complete History of Direct Selling

Travel with us through the past, present, and future of direct selling.

The story of trust and transformation: Person-to-person commerce
into a $168 billion global industry with 102+ million sellers.

Explore the Incredible Insights on Direct Selling

Where History Began

About 3000+ years ago, Phoenician traders blazed the trail for
direct selling across the Mediterranean.

Products include purple dye, glass, and metals directly to consumers.
Recorded as one of the first international trade networks.
Built trust through personal relationships.
Started lending credit based on reputation.

Medieval Direct Sellers

Travelling merchants from the Middle Ages (500-1500 AD)
further built the foundation for direct selling.

Chapmen and peddlers brought goods from far off places to serve the needs of rural communities.
Products included medicines, books, and household goods.
Developed catalog and sample system.
Maintained regular trade routes and customers.
Trade in the Middle Ages occurred through person-to-person interactions.

The American Frontier Era

The 1800s in America witnessed the birth of organized direct selling.

Direct sellers were Yankee Peddlers.
They served the majority of rural America.
Sold 200+ product categories.
Daily trade route spanned 20-30 miles.
Products sold included tin goods, hardware, clocks & watches, seeds, and medicines.

Establishment of Direct Selling Companies

The first company in the direct selling model is Southwestern Company founded by Rev. J.R. Graves in 1855.
The company sold religious literature and focused on entrepreneurship, personal development, and sales training.
In 1883, Vorwerk sold home appliances like kitchen appliances and vacuum cleaners.
David H. McConnell established California Perfume Company in 1886, which is now Avon Inc.
Introduced women-centered marketing idea with “Avon Ladies”.

MLM Enters Direct Selling

The foundation for MLM was laid way back in 1903-1920s
by Watkin Products and the Fuller Brush Company.

California Vitamin Company, which was later known as Nutrilite, established in the 1930s, is considered to be one of the first MLM companies.
The company introduced a multi-level commission structure.
The concept of downlines was introduced.
Launch of Amway in 1959 marks the birth of modern multi-level marketing.

Early Industry Leaders

Many companies contributed to the growth of direct selling from 1900-1940.

The Fuller Brush & Co. established in 1906 sold cleaning products through door-to-door selling.
J.R. Watkins Medical company founded in 1868 in the US offered the first money back guarantee.
Wearever introduced America to aluminum cookware in the early 20^th century.
Electrolux was launched by Axel Wenner-Gren in 1919 in Sweden.

The Dawn of Party Plan Era

Norman Squires in the late 1930s conceptualized the party plan model of selling.

Mr. Frank Stanley Beveridge of Stanley Home Products adopted the idea.
In 1948, the first Tupperware party was hosted.
Breakthrough model for women to enter direct selling.
Changed door-to-door selling to home parties.

Onset of legal turmoil

Direct selling industry started facing legal and regulatory scrutinies.

The famous FTC vs. Amway case: In 1979, the court ruled out FTC allegations to declare Amway to be a legitimate marketing opportunity.
The "Amway Safeguards" was established.
Ten retail customer policy which mandated representatives to make 10 sales to retail customers to receive commissions.
70% rule demanded that 70% of products must be sold to customers.
Buyback policy was established which required companies to buy back unsold inventory.

Global Expansion of Direct Selling

Direct selling expands worldwide between the 1980s and 1990s.

Launch of toll-free numbers improved customer service.
Distributor training by Tupperware was introduced.
The introduction and rise of fax machines simplified global operations.
Japan and Taiwan emerged as prominent markets in Asia.
Desktop computers were used for sales tracking.
Invention of the internet changed the growth pace.

Contributing Factors to the Growth

Economic liberalization
Women entering the sales force
Entrepreneurship opportunities
Globalization of brands
New technology inventions

The Digital Transformation in the 2000s

2000-2010: Internet revolutionizes direct selling with company websites and digital catalogs.
2004: Launch of Facebook enabled social selling integration within direct selling.
2010: Instagram becomes visual catalog for direct selling companies.

Direct Selling Industry Today

Current Global Statistics:

$168 billion global annual revenue

102.9 million active distributors

71% are women

29% are men

Direct selling global representatives by age

Top Product Categories in Direct Selling

Wellness (35%): Supplements, weight management
Cosmetics (30%): Skincare, makeup, fragrances
Household (12%): Cleaning products, cookware
Clothing (8%): Fashion, accessories
Services (7%): Utilities, financial services
Other (8%): Books, toys, home decor

Challenges Faced by the Direct Selling Industry

Network management: Managing a global diverse distributor network.
Market saturation: Too many distributors and same kind of products.
Reputational issues: Often confused with pyramid schemes.
Compliance alignment: Maintaining compliance across different regions.
Regulatory scrutiny: Constantly under the watch of regulatory bodies.

Proper distributor training and ethical business practices are important for long-term sustainability.

Innovations Leading the Direct Selling Industry

AI-powered Personalization: Custom product recommendations, customer support, distributor training.
AR Try-ons: Virtual makeup and clothing fitting.
Blockchain: Transparent commission tracking and recording.
Live streaming: Real-time product demonstrations and social selling.
Subscription models: Recurring revenue streams and increased customer lifetime value.
Influencer integration: Micro-influencer programs for product and brand promotions.

Top 10 Global Direct Selling Companies

#	Company	Country	Revenue 2024 (in million USD)	Revenue 2023 (in million USD)	Growth Rate	Year Founded
1	Amway	USA	7400	7700	-4%	1959
2	Natura & Co	Brazil	5649	4671	21%	1969
3	Herbalife	USA	5000	5062	-1%	1980
4	eXp Realty	USA	4567	4300	6%	2009
5	Vorwerk	Germany	4100	3450	19%	1883
6	PM International	Luxembourg	3220	3030	6%	1993
7	Primerica	USA	3089	2748	12%	1977
8	Coway	South Korea	3031	2699	12%	1989
9	Infinitus	China	3000	3500	-14%	1992
10	Utility Warehouse	UK	2590	2990	-13%	2002

Regional Market Insights

Direct selling around the world

	Higher Penetration	Mid Penetration	Lower Penetration	Total	# Countries
Asia/Pacific	53%	33%	13%	100%	15
Americas	73%	27%	0%	100%	11
Europe	15%	33%	52%	100%	33
Africa/Middle East	0%	50%	50%	100%	4

The Future of Direct Selling

Emerging trends and technologies

Social selling with social commerce integration.
Focus on eco-friendly products and business practices.
Gig economy fusion and micro-entrepreneurship opportunities.
Training, selling, and event hosting with immersive technologies.
Advanced payment methods including cryptocurrency payments.
AI and automation will redefine people and processes in direct selling.
Blockchain will add layers to security infrastructure.

Key Takeaways

Celebrating human connections through the ages

3000+ year old sales model.
Built on the foundation of personal relationships.
Technology enhances the power of human connections.
Success and sustenance are rooted in values and ethical practices.
Customer-centric businesses hold a brighter future.
Global market projection of $230 billion by 2030.