The Government plans to train 500 million people by 2022 to meet the large deficit of manpower. An industry like Direct Selling that provides self-employment opportunities for youth belonging to various segments of the society can help in achieving this, says Chavi Hemanth
Do you want to be your own boss and make an independent earningIJ Direct selling offers you the opportunity to have your own business that too with a minimal capital investment. It enables you to set the goals through self-effort and dedication towards a better future. The only perquisite to start a direct selling business is to have zeal towards hard work.
Direct selling is a sale distribution channel where products are marketed directly to customers, eliminating the need for a middleman. With the rising cost of living standards, the industry has witnessed a high attrition rate, as many individuals join this way of selling as part timers to earn supplementary income.
It has been noticed that this direct selling business is not only popular among women but also gaining popularity with men. Women constitute 60 per cent share of the total sales force in this sector. However, Indian men are looking up to this sector, as a supplementary earning opportunity, as consumption basket of the families has swelled up over the years. Among men, it has been noticed that students are fast picking up to earn extra income to meet their short or medium term goals.
Joining this industry, offers a viable income opportunity for such men. The share has increased to 40.6 per cent in 2012-2013, according to Annual Survey Report by Indian Direct Selling Association (IDSA). The survey also revealed that the percentage of self-employed of total distributor’s base in category of men increased to 44 per cent while the percentage of part timers of total distributor’s base in terms of women increased to 60 per cent in 2012-2013.
The Government of India targets to skill 500 million people by 2022, to meet the large deficit of manpower. In such situation, industries like Direct Selling provide self-employment opportunities for youth belonging to various segments of the society.
This plays an essential role in the uplift and development of skills especially of those individuals who join as independent sale consultants or distributors. It gives them an opportunity to work, learn and grow by improving their inter-personal skills such as good communication, convincing power etc. Most of the companies under this selling offer training programmes to direct sellers. The survey revealed that firms have offered training to their sales representative in the range of 500 man hours per quarter to 25,000 man hours/quarter during 2012-2013.
Take the case of 22-year-old Ankit, a Delhi University student who used to work at a call centre for a year. He got to know about direct selling business from his friend and decided to give it a try. The first two years were a lot of struggle with no income. But with company’s training, belief in products and their systems, Ankit started earning much more and even built his own team. His basic income started with Rs 120, now its Rs 25,000 per month. He works on flexible timings and operates without a boss.
Hence, this direct selling opportunity helps in identifying the true potential of an individual with an opportunity to earn, learn and develop ones personally.
There are certain points that need to be kept in mind, to start a business with direct selling companies.
While you chose to be a direct seller, it is imperative to choose legitimate companies doing ethical business, hence it is advisable to choose a company that has a authentication seal of IDSA (Indian Direct Selling Association) and follow the standard code of ethics.
Incorporated in 1996, IDSA is an autonomous, self- regulatory body for the direct selling industry in India.
The association acts as an interface between the industry and the Government’s policy-making bodies and facilitates the cause of the industry in the country.
Sales incentive is based on sale of goods/services rather than based on recruitment, which is applicable in ponzi schemes.
In direct selling companies, products have 100 per cent buy-back guarantees as per company policy.
Enrollment is not mandatory for doing direct selling business while it is compulsory for ponzi schemes.
Direct selling industry emphasises on training on product and product sales to the direct sellers while there is no as such training policy in ponzi schemes. They stress on collection of money from new enrollment.
In this industry, returns are dependent on the time invested and motivation of the direct seller while in ponzi scheme, returns are easy and quick.
The industry has supported the growth of Independent Sales Consultants (ISCs) by providing quality products and enhancing their capabilities through training programmes and assistance, while keeping the need for seed capital to a minimum.
Over 3 million individuals are involved in direct selling activity across India compared to 1.8 million in 2012-2013.
If you look at the figures the industry has clocked Rs 7,164 crore turnover for 2012-13 and marked an incredible growth over the years. The sales revenue of this sector is expected to peg Rs 10,843 crore from 2012-2013.
According to the Annual Survey Report by PHD Chamber of Commerce and IDSA, the employment opportunities grew by 89.7 million sales forces.
The growth of total distributor’s network stands at 18.9 per cent 2012-2013, contributed by around 20 per cent growth among members and 12 per cent growth among non-members. The robust growth is mainly attributed to factors such as entry of new firms, bolster business and more youth joining the force.
In a nutshell, the outlook of direct selling industry is very bright and promising and it carries potential to scale new heights in terms of sales volume, self-employment opportunities, contributing to India’s growth and socio-economic development towards a better future.
The writer is secretary general, Indian Direct Selling Association (IDSA).