Direct selling is special in that it involves a direct contact between the direct seller and consumers. Consumers and prospective consumers are presented the products, demonstrations are made and they have the opportunity to make better sense of what they are about to purchase.

Discover more about:

• One-to-one and one-to-many direct selling
• Mutilevel marketing or network marketing
• Pyramid schemes
• Sales methods of DSE member companies

 One-to-one and one-to-many direct selling

There are two types of direct sales activities:

-On a person-to-person basis. Consultants meet in private with customers to discuss products or services, provide demonstrations, and offer various shopping assistances. This is the most frequent sales method as nearly 70% of all direct sales take place in a person-to-person manner.

-On a one-to-many basis. These are the so-called "party sales" or "home parties" where all gather to learn about the products or services. The party plan method offers friends, family members, co-workers and other guests a fun and relaxing way to get together and shop.

Read more about the benefits of direct selling and existing opportunities with DSE member companies.

 Mutilevel marketing or network marketing

Many direct selling businesses are now organised on a multilevel (MLM) or network marketing basis, although they may use neither term in their promotional material. The distinction between MLM and a conventional direct selling structure is the nature of the earnings opportunity offered to new direct sellers.

A company uses multilevel marketing when direct sellers are paid not only for their own direct sales but also a percentage of the sales of other representatives they get recruited into their direct selling company. All DSE member companies use multilevel marketing to reward their sales agents.

If you are offered an opportunity to both retail products and to receive additional rewards from the sales of others you recruit into the business, then this is multilevel marketing or network marketing and therefore subject to the 1997 Trading Schemes Regulations.

For further information and advice, contact us at Direct Selling Europe (DSE).

 Pyramid schemes: Beware!

Pyramid schemes are illegal scams in which large numbers of people at the bottom of the pyramid pay money to a few people at the top. Each new participant pays for the chance to advance to the top and profit from payments of others who might join later.

Pyramid schemes are illegal in most countries, which is why many pyramid schemes try to present themselves as legitimate multilevel marketing (MLM) businesses.

Discover how to avoid illegitimate schemes such as pyramid schemes.

 Sales methods of DSE member companies

Our member companies at Direct Selling Europe (DSE) distinguish themselves from other direct selling companies as they distribute products of high-quality and high-visibility brands which are in strong demand with consumers. They have pioneered the European direct selling market and helped to establish the legal basis for fair practices in direct selling methods.

Some of our member companies also offer a multilevel compensation plan but with significant control over processes and contracts with all their sales agents.

Pyramid schemes as well as other fraudulent business opportunities are illegal in most European countries. You can find more information about consumer protection in the European Union on our consumer protection.