What is direct selling? •D I R E C T S E L L I N G I S T H E S A L E O F A C O N S U M E R PRODUCT OR SERVICE, PERSON-TO-PERSON, AWAY FROM A FIXED RETAIL LOCATION. •T H E S E P R O D U C T S A N D S E R V I C E S A R E M A R K E T E D T O CUSTOMERS BY INDEPENDENT SALESPEOPLE. DEPENDING ON THE COMPANY, THE SALESPEOPLE MAY BE CALLED DISTRIBUTORS, REPRESENTATIVES, CONSULTANTS OR VARIOUS OTHER TITLES. •P R O D U C T S A R E S O L D P R I M A R I L Y T H R O U G H I N - H O M E PRODUCT DEMONSTRATIONS, PARTIES AND ONE -ONONE SELLING. Estimated 2005 U.S. Direct Sales Estimated 2005 U.S. Salespeople 1-, 5- and 10-year growth rates Popularity of Direct Selling*  In 2000, 55 percent of American adults reported having, at some time, purchased goods or services from a direct selling representative. (Some recent surveys show this number to be as high as 74%.)  In the 2000 survey, one in five American adults (20%) reported they are now (6%) or have been (14%) a direct selling representative.  Among direct selling customers, three out of four (77%) have attended an in-home demonstration or party. *DSA's 2000 Direct Selling Public Attitude Tracking Survey, conducted by Burke Marketing Research Industry Growth Potential Continues  38 % of adult Americans surveyed in 2000 have some interest in purchasing a product or service in the future via direct selling.  27 % had actually made a direct selling purchase in the past year. Growth  Sales in the U.S. have more than doubled in the last decade to more than $30 billion and are now more than $100 billion worldwide.  According to recent surveys, 74 percent of Americans have purchased goods or services through direct sales. That's more than the number who have purchased through television shopping and on-line computer services combined. Percent of Sales by Major Product Groups Industry Leaders Avon (9 billion) Amway (6 billion est.) Mary Kay (3 billion est.) Herbalife (2 billion) Tupperware (1.8 billion) Nu Skin (1 billion) Percent of Sales by Census Region West 25.7% Midwest 25.2% Northeast 15.7% South 33.4% Gender Age Marital Status Education Diversity People from literally all walks of life, of all ages, are successful in direct sales. About 75 percent of those working in direct sales are women, 10 percent are African American, six percent are Latino and three percent are Asian, Native American or other. Many people start part-time, and later leave their other careers when direct selling becomes more lucrative. Main Reason for Becoming A Direct Sales Representative  36%-Additional income  31%-It's your business and making money through direct sales in important to you  29%-Discount/wholesale/free products  4%-Other What is a Pyramid Scheme?  Payment or commission based on the recruitment of individuals and not on the sale of product.  No refund for goods or services.  Large entry fees  Pressure to purchase large orders Global Market Size Global Sales Force