This week I’ve seen several blog posts repeating the tired assertion that 99% of direct sellers lose money. One even referred to the myth as a “cold hard fact.”
As I’ve pointed out previously on this blog, more than half of direct sellers report that their net income from direct selling, after taxes and expenses, is positive. In addition, positive net income is reported by nearly half of new direct sellers – those representing their current company for less than a year.
I’m sure this post will encourage the same critics who spread the 99% myth to respond to this message with the same information, that quotes the same circle of people, referencing the same “research” again and again. You can go back and review all of those previous discussions on earlier posts on this blog if that information is of interest to you. I won’t repeat it all here.
Anyway, my purpose with this post is not to spend more time debunking the 99% myth with dueling facts and figures. We’ve done that already. More important are the stories of actual people, average Americans like those profiled in a few recent media stories I’ve linked to below, who personify the success direct selling can provide – whether success is $200 a month or much more. Take a look at these examples:

Direct selling has carved out substantial niche

Direct sales businesses boom as economy tightens

Direct sellers strike balance, maybe gold

There are a couple of key points from these stories worth mentioning.

Not everyone in direct selling earns a six figure income, but then, not everyone is looking to earn a six-figure income. Many of the people profiled are seeking a little extra income in their spare time and they’re obtaining it via direct selling. As I am proud to point out, the median income for a direct sellers is about $2,400. The average income is actually significantly higher, but statistically speaking, the $2,400 number is far more accurate – that’s based on the millions of people just looking for (and achieving) supplemental income.

One of the other theories posited by direct selling critics is that if you’re not already in the business, it’s too late and the market is saturated. Not true. As the stories above demonstrate, successful direct sellers are entering the business all the time.

As I’ve said numerous times on this blog – direct selling is not for everyone, and just as with anything in life, there are people who will try it and not find the level of success they were hoping for. Anyone considering direct selling should clearly define their personal goals and thoroughly research both the industry and the specific company they are considering. Hopefully this Web site will assist in those efforts.

So, keep in mind that despite the stories in the articles above, success in direct selling is not guaranteed. But contrary to what our critics would have you believe, neither is failure.

In fact, more than half of direct sellers report that their net income from direct selling, after taxes and expenses, is positive. In addition, positive net income is reported by nearly half of new direct sellers – those representing their current company for less than a year. The research from our sales force survey also shows the following:

• 89% of direct sellers rate their personal experience in direct selling as excellent, very good, or good;
• 84% of direct sellers say that direct selling meets or exceeds their expectations as a good way to supplement their income or make a little extra money, and;
• 91% of direct sellers say that direct selling meets or exceeds their expectations as a business where the harder they work the more money they can make.

Does this mean that all of these people are making six-figure incomes? Of course not! In fact, most are probably earning very modest amounts – exactly meeting their goals. One of the advantages of direct selling is that you can set your own goals and develop your own schedule to meet those goals. Many people begin direct selling as a way to earn a little extra money in their spare time – they’re not looking for a fulltime job.

I’ve always found this 99.9% myth fascinating because it essentially asserts that nearly 15.2 million people in the U.S. and 60 million people around the world continue as direct sellers despite losing money. Are we to believe that five percent of the U.S. population would continue in a business where they are losing money? Simply put, most people do not lose money in direct selling.

Further, anyone who gets involved with a legitimate direct selling company should not risk financial loss by doing so. The DSA’s Code of Ethics, for example, is designed to protect direct sellers and customers. Inventory buybacks (which include sales aids) and other provisions of the code allow sellers recourse if there’s an issue with the company.

It is my hope that everyone who tries direct selling will begin with reasonable expectations and a clear understanding of the path to their goal – hopefully information found on this site will help with that.
Certainly, direct selling is not a fit for everyone – but no one should risk financial loss by giving it a try. Managing expectations for new independent sellers is critical for success, and is an issue I’m sure we’ll address more than once on this site.

The bottom line is, just as it’s wrong to tell someone considering the direct selling opportunity that they’re guaranteed to succeed, it’s just as wrong to tell them that 99.9% of direct sellers lose money and that they’re guaranteed to fail.