The direct selling industry contributed $72 billion to the U.S. economy in 2004, according to an economic impact study conducted by Ernst & Young and released today by the Direct Selling Association (DSA).
The $72 billion includes direct, indirect, and induced impacts from $27.8 billion in wages, commissions, bonuses, and other compensation earned by the more than 13.6 million Americans who work in the direct selling industry, as well as impact from sales to customers, production activities, capital investments and tax revenue.
“The economic impact study confirms the ongoing growth of direct selling as a shopping option for millions of American consumers,” said Neil Offen, DSA President and CEO. “In ever-increasing numbers, Americans are choosing direct selling because they enjoy personal contact with knowledgeable sales representatives. Consumers enjoy service, selection and social interaction that’s hard to match with other shopping experiences.”
Direct selling involves the sale of a consumer product or service, person- to-person, away from a fixed retail location. The industry includes global companies with household names, including Avon, Herbalife, Mary Kay, The Pampered Chef and Tupperware, as well as hundreds of small- and medium-sized businesses.
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