The global economy is in a better state than it was just a few short years ago. Unfortunately, while there are positive signs of recovery, geopolitical conflicts, supply chain disruptions, and high unemployment mean that growth has been uneven.
Nevertheless, a few industries have managed to weather the storms. Of these handful, direct selling stands as a sector that has continued to prove its resilience, sustainability and overall value.
According to the World Federation of Direct Selling Associations (WFDSA), the direct selling sector contributed more than half a trillion US dollars to the global economy from 2020 to 2023. Most significantly, it has played an important role in lifting local communities and supporting household income.
The one issue, however, is that for all its current success and long-standing roots — with informal direct selling practices dating back centuries — the formal, structured industry as we know it today has only taken shape over the past several decades. As a result, misconceptions continue to surround it.
This is why Direct Selling Associations (DSAs) are so important to the industry and companies like QNET.
The Role of Direct Selling Associations in the Direct Selling Industry
DSAs are national and regional trade associations for companies that market products and services directly to consumers via independent representatives or freelance distributors.
At present, there are some 60 DSAs across the various regions, all of which are overseen by the WFDSA, based in Washington DC, United States. What is most important to note is that all the associations are focused on upholding ethical business practices and ensuring consumer protection.
Here are the ways in which DSAs promote, protect, and police the direct selling industry:
Advocacy and Representation—Legitimate direct selling companies like QNET are committed to adhering to all laws and regulations in the countries and regions they operate in. However, a lack of knowledge about direct selling has sometimes resulted in authorities and administrators enacting and enforcing unfair rules. DSAs help lobby for favourable policies and regulations, address industry-wide issues and concerns, and provide a unified voice for the direct selling sector.
Education and Training — Direct selling, in contrast to some other sectors, is blind to creed, class, educational background and/or work experience. Nevertheless, to be effective, individuals are required to be professional and committed and acquire and develop certain skills. DSAs help nurture success by providing direct selling entrepreneurs with the tools and knowledge to run their businesses effectively in line with best practices and ethical standards.
Networking and Collaboration Among Members — The direct selling industry values knowledge sharing and collaboration. Indeed, mentoring is a key component of direct selling. As such, DSAs help member companies and individual direct selling entrepreneurs connect with one another to share experiences and challenges. In QNET’s case, for instance, our DSA memberships allow us to pay it forward by collaborating with and mentoring new members.
Regulatory Compliance — Like the education, healthcare and sports sectors, the direct selling industry is governed by its own stringent code of ethics. A common misconception is that self-regulation equates to an absence of regulatory compliance. In the case of direct selling, however, DSAs ensure that all members adhere to the legal, ethical and safety standards contained within the WFDSA’s Code of Ethics; a set of rules and guidelines that is regularly updated to meet the demands of the direct selling sector.
QNET’s DSA Memberships
QNET is an active member of several DSAs, with membership in some of these associations stretching back many years. For instance, our membership in the Direct Selling Association of Malaysia (DSAM) dates to 2010.
The following is a list of QNET’s DSA memberships:
- Direct Selling Association of Malaysia (DSAM)
- Direct Selling Association of Singapore (DSAS)
- Direct Selling Association of the Philippines (DSAP)
- Indonesian Direct Selling Companies Association (AP2LI)
- Dogrudan Satis Dernegi (DSD) (Turkey)
- Direct Selling Association UAE (DSA UAE)
QN Europe, QNET’s business in the continent, also holds several direct selling industry memberships, namely:
- Asociacion de Empresas de Venta Directa (Spain)
- Association pour la Vente Directe du Luxembourg (AVDL)
- Federation De La Vente Directe (FVD) (France)
- Associazione Vendite Dirette Servizio Consumatori (AVEDISCO) (Italy)
QNET’s commitment to adhering to industry standards and codes of conduct extends to working with other industry players and stakeholders. In this way, we believe we can advance the direct selling sector and ensure the well-being of our distributors and the satisfaction of our customers.
QNET’s memberships in the following institutions underline this commitment:
- Hong Kong Health Food Association (HKHFA)
- Health Supplements Industry Association of Singapore (HSIAS)
- Health and Dietary Supplement Association of the Philippines (HADSAP)
- Digital Commerce Association of the Philippines (DCOM)
- Management Venture Asia Cambodia
- Business Ethics Institute of Malaysia (BEIM)
Challenges in Countries and Regions without DSAs
Not all countries or regions have DSAs, however, and this reality poses significant challenges to direct selling companies and distributors.
In some regions, the situation has resulted in a lack of advocacy for the industry, regulatory uncertainties and limited access to resources. It has also triggered ethical concerns, especially in situations where unscrupulous individuals and groups have introduced illegal scams and schemes and masqueraded as legitimate direct selling companies.
For QNET’s part, however, we have responded to the problem by advocating several solutions, among them championing the formation of DSAs in affected countries and regions, calling for support and guidance from the WFDSA, and working hand-in-hand with local stakeholders to boost awareness about the direct selling industry.
For instance, we have worked with governments across Africa and Asia to develop and host product exhibitions, trade fairs and programmes aimed at educating the general public about direct selling. We have also initiated and collaborated on several scam awareness campaigns and stood firm against illegal and unethical practices.
QNET has also established #QNETPRO, a comprehensive training programme geared towards educating, informing and training our distributors or independent representatives to uphold the highest standards in conducting their business. The record shows that we have been quick to take action against errant individuals who compromise QNET and the direct selling industry’s reputation.
A Commitment to Good Business Practices and Consumer Protection
Direct selling is a dynamic and rapidly growing industry, and reports indicate that the industry is poised to achieve even greater things. As such, the partnerships between leading companies like QNET and local and regional DSAs will be even more important in fostering a spirit of trust in direct selling’s commitment to ethical practices and the protection of all those associated with the sector.
