Direct Selling Channel Delivers $111 Billion Annual Economic Impact to U.S. Economy, New Study Finds
July 02 2024 - 9:00AM
Business Wire
The Direct Selling Education Foundation (DSEF) today released
its 2024 Economic Impact Report. This new study quantifying the
annual economic impact of direct selling activity on the U.S.
economy was conducted by Professor Robert A Peterson, John T.
Stuart III Centennial Chair in Business Administration at the
McCombs School of Business, The University of Texas at Austin. It
shows the direct selling industry contributed:
- $111.4 billion to the U.S. economy in 2022, an increase of
$28.3 billion from 2016 (a 34% increase).
- $15.5 billion in tax revenue to federal, state and local
governments, an increase of $4.9 billion (a 46% increase) from
2016.
“Because of the nature of the direct selling industry and its
widespread use of independent contractors, the total estimated
economic impact of $111.4 billion should be considered
conservative,” says Dr. Peterson. “What we’re seeing is a big
effect on household income (induced effect), an increase of 70%
from 2016, and real growth of 34% in total impact over the same
period.”
The $111.4 billion economic impact consisted of:
- The Direct (retail sales) Effect of direct selling, $40.5
billion
- The Indirect (upstream or supply chain) Effect of direct
selling, $31.0 billion, and
- The Induced (downstream or household) Effect of direct selling,
$39.9 billion
“The impact of the channel continues to grow as people engage
with direct selling companies to earn supplemental income, pursue
entrepreneurial opportunities and enjoy great products and
services,” says Joe Mariano, President of Direct Selling
Association and DSEF. “The channel is definitely hidden in plain
view.”
Direct selling is a business model that offers entrepreneurial
opportunities to individuals who, as independent contractors,
market products and services to consumers, typically outside of a
fixed retail establishment through one-to-one selling, in-home
product demonstrations, or online.
DSEF Executive Director Gary Huggins noted, “It is extremely
important to engage leading independent scholars and field experts
as we seek to advance an understanding of the direct selling
channel and its impact on the U.S. economy.”
About the Direct Selling Education Foundation
DSEF engages and educates the public about how direct selling
empowers individuals, supports communities and strengthens
economies worldwide. For more than 50 years, the Foundation has
partnered with members of the academic community to support
research and education programs. These programs expand the
knowledge and understanding of the fundamental principles of direct
selling. DSEF works with more than 200 professors in a variety of
disciplines—such as entrepreneurship, marketing, ethics, consumer
studies, business and economics—to develop direct selling-related
academic research, case studies and teaching content.
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Gary Huggins ghuggins@dsef.org