What consumers need to know about direct selling

Posted in Business & Finance by Admin on 4 July, 2017 at 4:18 p.m.

With rapidly evolving technology changing the way we interact, bank and even book holidays, it stands to reason that the way we buy things is also changing.  Digital technology is increasingly becoming an integral part of the sales mix, yet despite this, the oldest sales technique known to man, is still flourishing. 

The worldwide growth of direct selling is indisputable. According to the Direct Selling Association of South Africa (DSASA), in the 2015 financial year the South African direct selling industry made sales of more than R11 billion, which is an annual growth of 13% over the previous year.

DSASA chairman, Ernest du Toit, says that one of the reasons for this growth is that digital marketing and social media are making direct selling more effective than ever before. Sellers can now research potential clients’ interests, position themselves in a more effective manner and reach further than ever before, using Social Media.

With direct selling constantly evolving, so too are consumer perceptions about the industry.

“The industry has moved on from the image most people have of a man in a suit knocking on the door, with a volume of encyclopaedias or household products wedged under his arm. Today direct selling agents are trained professionals, informed about their customers, have in-depth product knowledge and increasingly are making a full-time living from direct sales.”

The DSASA is improving and upholding the standards in the industry. Equally important is its campaign to inform and protect consumers. Here’s what you need to know:

1.  Protecting consumers

The DSASA defines and sets ethical practices and safeguards consumer interests, by ensuring all members and sellers adhere to a strict Code of Conduct aligned with the Consumer Protection Act as well as World Federation Direct Sellers Associations code of conduct.  The DSASA further ensures that all member companies subscribe to and operate within the strict guidelines of the Code of Conduct.

2.  Invoking professionalism

The DSASA requires members to provide comprehensive training, both in acceptable sales methods and product knowledge.  All members ensure that their sellers act in a professional manner. With more than 57% of all products sold worldwide, being based on personal endorsement, the current direct seller’s insights and product knowledge gives them the edge in today’s world where consumers are well informed.

3.  Your friend in a time of crisis

Most importantly, the DSASA provides effective recourse for consumers and sanction for non-compliant members.  All complaints are dealt with by the independent DSA Secretariat, who endeavours to resolve all issues.  Failing this, the matter will be elevated to an independent Code Administrator and failing this, to an Independent Arbitrator, or the National Consumer Commission.

Direct sellers are making a difference across the world; changing lives, helping people to take ownership of their own wellbeing and achieving financial freedom. More and more consumers are embracing this lucrative industry.  With self-regulating Associations like the DSASA, consumers can now have peace of mind, knowing that there are strict professional operating guidelines in place and that their best interests are at heart and under the protection of the professional, self-regulating DSASA.

Submitted by: Sam Logan / MEROPA
 

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