DSE is excited to congratulate Marc Oback who has been appointed Managing Director of inmediaONE] as of 1 July 2010. His predecessor, Thomas Holz became the Chairman of inmediaONE] newly founded Advisory Board.  DSE wants to thank Mr Holz for his commitment to the ethics and principles of Direct Selling throughout his tenure as Managing Director.

Mr Oback has been with inmediaONE] since 2008 as sales director telemarketing. He brings a sales and business background to inmediaONE], having held positions within the distribution business from the bottom up.  He recently received his master’s degree in business administration.

DSE looks forward to continuing to work closely with Mr Oback as DSE Board Member to bring the very best of Direct Selling products and practices to the EU.

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On August 23rd, 2010, BEUC, the European Consumers Organization, released updated objectives regarding consumer contracts in the European Union. According to BEUC, these new goals are intended to inspire cross-border contracts between European consumers and sellers, a large number of which are direct selling contracts.

BEUC hopes to put in motion a plan that will raise consumer confidence by identifying and addressing substantial deficits and gaps in existing consumer contract rules and researching consumer shopping patterns and problems encountered. When new legislation is introduced based on these findings, BEUC intends for consumers to feel confident that it represents maximum harmonisation at the EU level in regards to cross-cutting and technical issues, such as the length of withdrawal period; whereas, a minimum harmonisation approach was utilized for issues such as guarantees and unfair contract terms to allow Member states the ability to maintain more advantageous rules for consumers and to adapt them quickly to market changes.

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Just to give you a brief update on the progress of the Consumer Rights directive and how IMCO is proceeding with the development of Mr. Schwab’s proposal:

On June 24th 2010, Mr. Schwab elaborated on chapters 4, 5 and 6 of his proposal to the internal market consumer protection Committee (IMCO). His explanations were received with mixed feelings; some MEP’s criticized the proposal for being incoherent and difficult to follow, while others commended Mr. Schwab’s efforts and found his proposition to deliver substantial improvements to the Commission’s current directive.

It was agreed, however, that no progress could be made if the committee and its rapporteurs where divided. The discussion was suspended until July 12th so as to give rapporteurs more time to review the proposal, voice their opinions to each other, and provide feedback to Mr. Schwab. Hopefully in a few weeks, there will be an agreement on the structure and approach necessary for the completion of this new directive.

The committee plans to meet again in September (13th and 29th) to finalize the amendments of the directive and compile a final draft.

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On June 23rd 2010, members of DSE sat in on the IMCO hearing concerning the future of European standardization. The discussion concentrated on finding tools to develop the internal market, control public services, and advocate the European Union’s interest throughout the world. A dozen specialists joined the discussion and many different opinions were heard; the variety gave great dynamism to the 4 hour long debate!

Here’s a brief summary of what went on: Commissioner for Industry and Entrepreneurship Antonio Tajani argued that although the European standardization system is successful, it could still use improvement both on a national level and a global level. The aim is to improve the current system so as to strengthen the EU’s economy and the EU’s influence in the global market. Many new ICTs and unexplored sectors need to be addressed so that the EU can have an updated and coherent plan across the Union.

Challenges include how to achieve transparency, how to build community interest, and how to gain public support. Many specialists presented their propositions and await feedback at the next meeting in mid-July; until then, the discussion is suspended. IMCO hopes to have a new standardization package adopted by November.

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Fiction #1: Direct selling is an outdated method of buying and selling.

Fact: On the contrary, direct selling a dynamic, vibrant and fast growing sector of activity providing earning opportunities to millions of salespeople all over the world. Direct selling sales have increase 79% during the last decade and currently the direct sales industry represents well over €100 Billion worldwide[1]. With today’s consumer demands for better personal service and more human communication, direct selling is the answer. Person-to-person demonstrations of products provide an opportunity for potential consumers to try products, talk to knowledgeable consultants, and receive personal attention for an overall successful and enjoyable shopping experience. DSE’s member companies are strong examples of sustainable direct selling companies that have built up an impeccable reputation of a modern, innovative and dynamic sector in international markets based on ethical, sustainable and legitimate practices and high quality innovative products.

Fiction #2: Most direct selling companies are pyramid schemes and entail fraud.

Fact: There is a clear difference between illegal pyramid scheme business models and sustainable direct selling: Sustainable direct selling companies seek to make money with you as they help you grow your business selling the highest quality products to end consumers. Pyramid schemes seek to take money from you by tricking you into recruiting more sales consultants rather than by focusing on selling products to end consumers. Please visit the DSE Website to learn more on distinguishing ethical and sustainable direct selling companies from illegal or fraudulent ones. Click here.

Fiction #3: Direct selling is a quick and easy way to make money.

Fact: Remember expressions like “money doesn’t come in overnight” and “if it sounds too good to be true, it usually is.”. With serious and sustainable direct selling companies, getting started and earning an honest income in direct selling is an earnest opportunity for everyone, without distinction of age, gender, background or education. Just as in any other business situation, it takes time for consultants to establish their customer base and build their personal business. Direct selling is not necessarily a get-rich-easy business model. It is however, an ideal opportunity for individuals to start a business at very low costs and to earn an honest income. You can be successful if you establish personal goals and devise a strategy to reach them. Bottom line: your earnings will be in proportion to your efforts.

Fiction#4: Direct sellers generally lose money.

Fact: In sustainable and legitimate direct selling, direct sellers cannot lose money. With DSE Member Companies and any other serious direct selling company, the only cost direct sellers are sometimes asked to pay is a small fee for their starter’s kit. Their subsequent income entirely depends on their own actions and efforts. Approximately 89% of direct sellers rate their personal experience in direct selling as excellent, very good, or good, and 84% say that their direct selling profits meet and even exceed their expectations[2]. If you are committed and hardworking, you’ll gain money and enjoy your direct selling experience. Before you sign up with a direct selling company, investigate carefully. Look on the DSE website to find sustainable direct selling companies that will provide you with earnest income opportunities. The site will also teach you how to distinguish earnest income opportunities from scams that try to take your money.

Fiction#5: The vast majority of new consultants drop out within a year.

Fact: Nearly 78% of consultants who are in direct selling for less than a year report that they are very likely to continue as direct sellers in the future, and 70% of new consultants rate their experience as “very good” or “excellent”. For those that do drop out, it is generally because their intentions are to work only seasonally or temporarily when extra income is needed (ex: holiday seasons). When their goals are met they drop out, often temporarily, only to come back into the business the same time next year.

Fiction#6: At direct selling parties, you are expected to buy a product.

Fact: The purpose of direct selling parties is to provide a demonstration of the product (or service). Potential consumers will gain information about the products, learn about their functioning, and even test them out all while participating in an enjoyable shopping experience. Based on the demonstration and information received the consumer is free to decide whether he or she wants to buy the product. As in any retail related situation albeit marketing, promotion or product placement in supermarkets etc, a certain level of product promotion pressure exists. This is not different in direct selling.The success of the entire industry is dependent on providing consumers with high quality products and customer service leading to overall satisfaction. Creating an environment conducive to sales will give the consumer a well-informed opinion of products and thus the freedom to decide whether or not to make a purchase.

Fiction#7: Direct selling products are overpriced.

Fact: Direct selling depends on selling to consumers and establishing a market; as such, direct selling competes with other channels of distribution such as traditional retail shops, online e-commerce etc. This creates price elasticity for direct selling products in the market, and as a result what survives on the market is of the highest quality and priced competitively. Consumers accept the prices because they are convinced that they are getting true value for their money. For example, Tupperware products are by far the best in their category. They are made with high-quality materials to be durable, reusable, and sustainable. Tupperware stands behind the quality of its products offering a life-long warranty. The Vorwerk vacuum cleaners are built with stronger, quieter, and more lasting engines than any other product in its category on the market. Because these products are proven to be of better quality and higher performance, consumers accept the price. Moreover, consumers greatly appreciate the valued-added of the product demonstration and personal service that direct selling uniquely provides.


[1]Tupperware website – http://www.tupperwarebrands.com/company/directselling.html

[2]Direct Selling 411 Website – http://www.directselling411.com/blog/debunking-the-999-myth-again/

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Vorwerk’s Thermomix On The Rise

By admin | Filed in In the press

It seems as though Vorwerk’s new business model has really helped the company thrive through the global economic crisis. By revising customer care services and adopting a new sales approach, Vorwerk direct sellers have been able to develop stronger and more loyal relationships with their clients. Consumer demands are better addressed and as a result client bases are growing internationally. This past year Italy, France and Portugal responded really well to the Thermomix division, and hence contributed to its increase of total sales by 9%.

Furthermore, the employment rate has risen to a record-breaking 661,000 and business generated outside Germany now makes up 63% of total volume. One can’t deny the substantial growth of the direct sales organizations this past year, and Vorwerk hopes to continue along this path throughout 2010 by offering opportunities to over 4000 new sales advertisers worldwide.

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Why Become a Direct Seller?

By admin | Filed in General Information

For many people, direct selling has a rather negative connotation, due to the unethical practices of some direct selling companies. The truth is however, that when done correctly, direct selling can have enormous benefits for both the vendor and the customer. Direct selling is a dynamic, vibrant and growing sector of activity providing earning opportunities to millions of salespeople all over the world.

So why become a direct seller?

Many people find themselves becoming direct sellers due to the opportunities it provides. As a direct seller you personally decide how much time and effort you would like to invest in your business. Additionally you can work mostly from home. This excellent work/life balance is what makes direct selling a great opportunity to earn supplementary income, for people who are generally engaged otherwise, say with family, or another job.

Due to the fact that direct selling requires no previous education, and little to no initial investment, anyone wanting to earn extra income can become a direct seller. This means that stay at home moms and dads, retirees, school dropouts and college students all have the exact same chances at success as someone with a college education, years of work experience, or even an MBA. But beware of any promises of earning big bucks with no effort – that does not exist in direct selling.

Direct selling is a very interactive discipline. Its success depends strongly on relationship building. As a direct seller you will constantly be meeting new people. Due to the nature of your job as a vendor and consultant, you will be meeting all kinds of people and building friendships that could last a lifetime.

So if you are looking to earn some extra income, have a flexible schedule, be your own boss and constantly meet new people then direct selling is the optimal career for you.

If you want to read more, check out the article entitled “8 Reasons Why the Direct Selling Business is Booming” here.

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Direct selling can be defined “as marketing and selling products, direct to consumers away from a fixed retail location. Sales are typically made through party plans, one to one demonstrations, and other personal contact arrangements.” Direct selling is known as off premise selling or door-to-door selling.

Direct selling should not be mistaken with direct marketing or distance selling, because direct selling is about individual salespeople reaching out to consumers directly. See our FAQ for more information on the differences with direct marketing and distance selling.

A direct seller is an independent consultant working on commission rather than an employee working on a fixed salary.

Most of the well established direct selling companies use a multilevel compensation plan by which the sales agent is paid not only for their own sales, but also receives a percentage of the sales of those representatives he/she recruited and introduced into the organization. Selling a product is usually made very easy by those direct selling companies that operate in an ethical environment.
Click here to access the DSE website and read more about the sales methods used in direct selling.

Two Direct Selling Europe (DSE) Members are among the top ten direct selling companies in the world in 2008 by revenue:

DSE distinguishes itself by exclusively representing companies that have an irreproachable reputation and implement sustainable and ethical business practices.

To read more, we strongly recommend you read our article “DSE Separates Fiction from Fact – Top 7 Direct Selling Myths” – it really helps explain the truth about the industry and certain prejudices! You can view it on our blog, or on the DSE website here.

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Nakedwines.com = WIV Wein International’s Online Portal for Wine Makers, Buyers and Investors.

It consists of a group of 20,000 normal wine drinkers, who support 25 winemakers that produce wine exclusively for Naked Wines. Because Naked Wine’s customers support winemakers directly they do not pay to be sold to. This means they save an average of 33% with each purchase. Wines can be ordered online at http://www.nakedwines.com.

Naked Wines also gives winemakers the opportunity to join the network (see: http://www.nakedwines.com/suppliers). They can thus gain support from thousands of “Angels” that back their wines and finance their wineries, which enables winemakers to sell high quality wine at an inexpensive price; exclusively via Naked Wines. In return, Naked Wine’s “Angels” drink better wine, spend less money and support talented winemakers. Become an Angel here: http://www.nakedwines.com/angels.

Naked wines is a completely new way of buying wine, where everyone wins. Their customers get delicious wine at a price they can afford. Their winemakers get to do what they love; make wine without compromise, and they call themselves “naked” because you see exactly what you get.

For more information on WIV Wein International and Naked Wines click here

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DSE Quoted in Direct Selling News

By admin | Filed in In the press

This morning the Direct Selling News article on the top performing global markets was published online and DSE was quoted in the introductory paragraphs!

Marc Pouw, Managing Director of Direct Selling Europe (DSE) says, “[The industry] continues to grow and offers excellent income and career opportunities for each of the members of DSE. 2010 will be another successful year.”

To read the full article, please click here.

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