“It was great sitting down with small business owners from across North Carolina to hear how they are positively impacting the state’s economy,” Senator Budd said. “The spirit of entrepreneurship they bring to the state where individuals can start a flexible, low-cost business that becomes an integral part of their communities is commendable. I look forward to continuing supporting policies that will facilitate their growth in the United States Senate.” 

DSA President and CEO Joseph N. Mariano believes the conversations that take place in these roundtable series meetings can have far-reaching impact on legislation. 

“This series provides in-person opportunities for direct sellers to meet with elected officials like Sen. Budd in their states and districts to discuss their positive experience with the business,” Mariano said. “It’s important for policymakers to hear directly from their constituents and hear how policies being considered in Washington will impact them. We appreciate Sen. Budd for being the first United States Senator to participate in this roundtable series and hope his colleagues will follow his lead.” 

The post DSA Hosts Roundtable for Women Entrepreneurs  first appeared on Direct Selling News.

The DSA sees this as important legislation given that the US Department of Labor is currently finalizing a rule on independent contractor status under the FLSA, which could result in confusion regarding direct sellers. 

“The independent contractor status of direct sellers has been vital to the business model for decades,” said Joseph N. Mariano, DSA President. “This legislation recognizes there is bi-partisan support that direct sellers and real estate agents are true independent contractors. As Congress and the Administration debate the merits of independent work in our recovering economy, we hope that the independent contractor status of direct sellers and real estate agents will continue to be supported.” 

The post DSA Supports Legislation Defining Independent Contractor Status for Direct Sellers  first appeared on Direct Selling News.

Years ago, thoughtful industry leaders established the DSA Diversity and Empowerment Committee as a permanent part of the DSA Board with the goals of broadening the opportunity we offer and better reflecting our constituents (who come from every background and skin color) in company, industry and Association leadership. We have made progress, but it hasn’t been enough. The events of recent months have highlighted the need for all of us, including direct sellers, to take the next necessary steps to ensure that the American dream of opportunity, freedom, and equity that direct selling embodies, is a reality for all.

That is why I have been so gratified to see the universal commitment to these ideas, in theory, and practice, being espoused by direct selling leaders in our initial discussions among CEOs and the DSA Board. As a result, DSA had committed itself to providing resources to direct selling companies as they work to ensure that we are the best examples of equal opportunity and inclusion for all, regardless of race or other considerations.

Our Diversity Council, chaired by Jeff Reigle of Regal Ware, and a committed team of DSA and DSEF management executives, have embarked on the first steps of an ambitious program of activities to support the industry in its efforts, including:

• data gathering on racial demographics for benchmarking,

• coordination with other business groups committed to diversity,

• creating a forum for direct sellers to publicly announce their commitments and actions,

• educational programming for direct selling companies about inclusive diversity and equity,

• support of minority-owned small businesses and suppliers, and

• fostering industry commitment to enhancing minority leadership in our companies and in our Association.

To that end, DSA is collaborating with Ameli Global Partnerships. Founder and principal Mona Ameli is not only nationally certified in Diversity & Inclusion and a globally certified Cultural Transformation consultant, but she also knows our industry intimately. She has 20-plus years of executive experience with several large and medium-size companies and served as the Chair of the DSA’s Diversity and Empowerment Council for three consecutive terms. She has been committed to and a leading voice in our industry’s diversity and inclusion efforts.

Mona, Jeff, and a wide array of DSA member company executives have begun the hard work of turning their commitment into concrete, measurable action through a series of webinars and discussions designed to provide member companies with tools to assist them in efforts to successfully increase and retain participation of a more diverse base of employees, field members, and suppliers. These sessions are our first step in a series of tangible activities and resources the DSA is providing all its members to keep our ongoing commitment to this cause and to provide direct sellers with the tracking and strategic tools to measure the business efficacy of company D&I initiatives.

Ultimately, though, our efforts aren’t about merely dollars and cents, SKUs or productivity rates. Ultimately, this is about what has always been at the heart of direct selling—our commitment to the American dream and promise of inclusion, equity, and opportunity in which everyone can share. #stronger together #community

The post On Opportunity, Freedom, and Equity for All… first appeared on Direct Selling News.

The DSA’s power of Association ensures us all that, as we consider the market landscape and new dynamics, we are not alone. We have the resources to help ensure that we, as an industry, develop the smartest strategies that enlighten solutions revealing new opportunities and the path forward.

Community is something that DSA members identify as central to DSA’s power of Association. Empowering members to share their strength with their peers drives DSA’s mission. This collaboration is what enables direct selling to shape a shared vision for driving the industry into the future.

The DSA’s unique range of programs offers the opportunity for us all to share our knowledge and strength so that our pivot in the face of change is both agile and graceful.

Regional Councils
• Four Regional Councils— Coastal, Mountain, Capital and Cactus—convene top direct selling executives locally to share information, learn about industry trends and participate in the policies and actions of the Association.

DSA New Learning-On-The-Go Webinar Series
• Bringing a new educational opportunity to members when they want and where they are, this webinar series offers valuable insights from those who have blazed trails that are bringing forth tomorrow’s innovations.

Direct Seller Primary Contact Directory
• Relationships are everything, and the personal and professional bonds among individual executives are significant. This directory empowers members to strengthen relationships and engage with peers in new ways.

Communications Toolkit
• Telling the direct selling story is a key to protect the channel’s reputation, and we encourage all member companies to incorporate these materials into their communications initiatives. Please contact us directly with specific requests.

The post The Power to Surpass Today’s Inflection Point first appeared on Direct Selling News.

Growth & Outlook is DSA’s annual survey that reports on the size and scope of direct selling in the U.S. and is audited by Nathan Associates, a third-party international economic consulting firm.

The annual Direct Selling Growth & Outlook Survey provided the following data on the industry:

Retail Sales

The direct selling channel generated $35.4 billion in retail sales in 2018 – up 1.3 percent from 2017. Wellness products remained the most popular product category in the U.S. in 2018, accounting for 35.6 percent of sales, followed by Services (22.6 percent), Home & Family Care/Durables (15.8 percent), Beauty & Personal Care (15.6 percent), Clothing & Accessories (7.7 percent) and Leisure/Educational (2.7 percent).

Direct Selling Population

The DSA further refined the 2018 data collection to better separate direct sellers from customers. This new research shows that the number of people selling products or services using the direct selling model grew 1.6 percent, with 6.2 million U.S. entrepreneurs selling in either a part-time or full-time basis.

Demographic breakdowns for both direct sellers and discount buyers include 6 percent (under 25); 19 percent (25-34); 26 percent (35-44); 24 percent (45-54); 17 percent (55-64); and 8 percent for 65 and older.

By gender, 75 percent of direct sellers in the United States in 2018 were women and 25 percent men. The percentage of women joining the channel increased by 1.5 percentage points from 2017 to 2018, men joining the channel dropped by 1.5 percent.

Ethnic and racial demographics for 2018 went unchanged from 2017. Eighty-five percent of those involved were White/Caucasian, 8 percent African American, 4 percent Asian, 1 percent American Indian or Native Alaskan, 1 percent Native Hawaiian or Pacific Islander and 1 percent other not identified.

Demand for Direct Selling Products

The DSA said in their press release that in 2018, there were more than 36.6 million people actively buying through the direct sales channel, with notable growth coming from an increase in preferred customers. This customer count excludes those who have not signed an agreement with a direct selling company.

“The U.S. direct selling industry is moving in a very positive direction,” said Joseph N. Mariano, DSA president and chief executive officer. “Retail sales were strong, thanks largely to the U.S. direct sales force and their ability to attract millions and millions of customers. The 2019 Growth & Outlook Survey also provided additional insights into the people involved in direct selling – particularly due to segmentation efforts – helping our member companies provide an even better experience for those who buy and sell through our channel. As we look forward and evaluate industry data, as well as national economic and retail projections, we believe the industry will continue to see modest growth during the next three years.”

For more information on DSA’s 2019 Growth & Outlook Survey: 2018 Direct Selling Data in the United States, you can also read more on this topic atwww.dsa.org/benefits/research. The DSA has also added a new interactive component when you hover the arrow or cursor over various content on the page.

The post U.S. Direct Selling Annual Retail Sales Reach $35.4 Billion for 2018 first appeared on Direct Selling News.

We can shrink from these challenges, or we can evolve. We can be resilient, innovative and bold. This will require new thinking and tough decisions, but it will position us to be even stronger. As the 2019 Global 100 list celebrates its tenth birthday, Direct Selling News examines how the industry has changed and what the landscape looks like as we head into the third decade of the 21st century as independent distributors.

First, the numbers

Collectively, the companies in the DSN Global 100 achieved $75.6 billion for 2018. Aggregate sales for the top 10 global companies on DSN’s Global 100 list were $40.8 billion in 2018. Twenty of the Global 100 grew by $100 million or more in the past year—including list toppers Infinitus, Natura, Herbalife Nutrition, Coway and Nu Skin. Newcomers O’Boticario and Atomy debuted at $1.22 billion and $1.5 billion, respectively. There are 23 mid-market companies—those between $300 million and $1 billion on this year’s ranking. Five companies are above $700 million, and another five above the half-billion-dollar mark.

“There are 23 mid-market companies—those between $300 million and $1 billion on this year’s ranking. Five companies are above $700 million, and another five above the half-billion-dollar mark.”

Eighteen companies are making their first appearance on the Global 100 list, including companies from Brazil, Korea, Taiwan, Germany, Malaysia, Japan and Sweden. The biggest gaps on the 2019 list, though, come from the absence of 25 of the 26 China-based companies that made the list last year and some U.S.-based companies—such as Mary Kay, Isagenix, AdvoCare and Juice Plus—that chose not to report their financials.

In response to some unsubstantiated product claims, the Chinese government in January launched a 100-day review of all health and wellness direct selling companies operating in China, the industry’s second-largest market. Because of the increased scrutiny, most Chinese companies were unwilling to disclose their financial information to the magazine. This left room for 18 newcomers to the list and seven companies returning to the list after an absence.

“Direct selling companies are spending millions to improve their online shopping portals, partly in response to the Amazon effect and partly because of regulatory pressure to distinguish more clearly between customers and distributors.”

The economic and regulatory conditions in a global marketplace always fluctuate, and sometimes companies will decide to keep a lower profile, which is why it’s noteworthy that this year’s list includes 13 private companies that have reported their numbers to the Global 100 every year since it began in 2009. Public companies don’t have a choice about whether to share financials, but closely held companies do, and their transparency allows the Global 100 to present as clear a picture of the industry as possible.

Times, they are a changin’

The direct selling business and consumer habits have changed significantly over the last decade.

From a broad, cultural perspective, people now consider their involvement in a direct selling company in much the same way they consider any job. “The direct selling space is evolving from the days when it was sort of a niche way to do business,” says securities analyst Doug Lane. “Given advancements in technology and social selling, direct selling  is becoming more mainstream.”

But nothing has changed in our industry more than the prevalence of technology. In the last 10 years ecommerce and social media—mainly Amazon and Facebook—have transformed the way people learn about and purchase products.

In 2009, there were 360 million active Facebook users worldwide. Now there are 2.38 billion—and a huge number of them turn to social media for brand guidance. And Forbes reports that 70 percent of Americans with annual incomes of $150,000 or more have Amazon Prime memberships, which give people unlimited free shipping (now in one day) of more than 100 million items.

Overall e-commerce sales in the United States reached $517 billion last year, 14 percent of all U.S. retail sales, according to analysis of U.S. Commerce Department data. Amazon sales alone were $141 billion of that total—accounting for nearly one-third of ecommerce revenue.

Direct selling companies are spending millions to improve their online shopping portals, partly in response to the Amazon effect and partly because of regulatory pressure to distinguish more clearly between customers and distributors. Direct sellers have to offer customers a way to buy product without signing up to become a distributor, and creating direct online ordering systems is the easiest way to do that. Such changes come more quickly for smaller, newer companies, Lane says. But the larger the business, the more legacy systems and mindsets there are to move. “That makes it a big challenge,” he says. “But that’s what leadership has to do.”

Some direct selling companies are meeting this challenge head-on, responding with complete digital transformations of customer and distributor experiences, says Bob Bass, Lead Strategic Insights Analyst for Amway, which tops the Global 100 list for the seventh consecutive year, with $8.8 billion in revenue. “Changes I’m seeing are monumental, from the way companies support distributors to the emerging use of augmented reality.”

Augmented reality is fueling a trend called “experiential retail,” which is, ironically, drawing customers back to brick-and-mortar stores. For example, Pottery Barn allows in-store customers to place virtual furniture in digital versions of their homes. Nordstrom shoppers can select clothing via a mobile app and the store will have the items waiting for them in a dressing room when they arrive. French beauty products retailer L’Occitane lets customers take a cyber hot air balloon ride through the French countryside while they get a hand massage with real hand cream.

“Customers and distributors want to be reached in ways that are most meaningful to them. Everything from attracting, developing and retaining more young leaders to honing in on what is marketed to different segments, so that your approaches are much more personal and relevant.” – Bob Bass, Lead Strategic Insights Analyst for Amway

If some of these experiences feel familiar, they should—they’re a next-gen version of what network marketing has been doing through the party plan model for decades: letting people try and build a connection with a brand before they buy. This trend reinforces the core of our model while showing us how to enhance that model at the same time.

Beauty and wellness products are prime for augmented reality, says a recent market study—so as the direct selling channel’s largest category, these products give the industry an opportunity to use the tool on a broad scale. Amway’s already on board. Last spring, it partnered with a Silicon Valley company to implement the YouCam Makeup app, which makes personalized skin care commendations and lets customers put virtual Artistry brand makeup on their selfies.

With YouCam, Amway seems to be proving that even massive companies can be technologically agile, if they’re committed. Amway Chief Sales Officer John Parker says it’s all about a forward-thinking mindset. “We encourage our employees to stay hungry and focused on what is still possible rather than what we have already achieved,” he says. “As an industry we embrace what’s great about our channel—the combination of digital and social relationships with the delivery of live interactions and experiences distributors and customers will never forget.”

Getting personal

As consumers become more sophisticated about how and where they buy, they’ve also become more particular about how they want companies to market to them. “Customers and distributors want to be reached in ways that are most meaningful to them,” Bass says. “This means everything from attracting, developing and retaining more young leaders to honing in on what is marketed to different segments, so that your approaches are much more personal and relevant.”

Noah Westerlund, Senior Vice President of Business Development for SUCCESS Partners, says this personal approach starts with making sure the audience you want and the audience you have are the same. “Be realistic about what your company provides, and do some audience research to find out if it’s what your intended targets really want,” he says. “Maybe you have a product that has always appealed to Baby Boomers but you keep pushing your teams to recruit and sell to Millennials.” If you’re losing or can’t gain momentum, a misalignment between your message and target customers may be partly why.

Parker says Amway’s strategy for keeping its momentum for so many years is to keep its ear close to the field. “We continually focus on listening to our Amway Business Owners, who are out there every day working with customers and new people in the business,” he says. “Like them, we know the importance of hard work, trying new approaches, studying others’ successes and failures and planning our next move, even when business is at its strongest.”

New frontiers

One ingredient and one concept that have burst into the marketplace in the last few years are putting our industry in an interesting juxtaposition: One is opening doors to astronomical sales, while the other is reminding us not to take our position for granted.

Let’s talk about hemp first. Products with cannabidiol (CBD)—a non-THC product derived from the cannabis plant—are becoming wildly popular for direct selling. DSN estimates that direct selling’s CBD revenue reached $300 million in 2018, will hit $600 million this year and will generate $1 billion next year.

At least 40 companies on this year’s Global 100 list sell products with CBD, and they’re seeing huge numbers. Four of them alone—including Las Vegas-base My Daily Choice/Hempworx and San Diego-based Kannaway accounted for $400 million of overall CBD sales last year. Sales at My Daily Choice/Hempworx increased from $10 million in 2017 to $100 million in 2018, a 900 percent growth rate.

While CBD has become the hot new category inside the industry, income opportunities with ride-share providers, on-demand errand services and private home rental companies are changing the game outside our industry, which used to have a lock on the “gig” idea.

According to a recent McKinsey Global report, more than 160 million people in Europe and the United States are earning money using cars, houses and time they already own. This is more than three times the 18.6 million U.S. direct sellers—4.1 million of whom are discount buyers or have no plans to sell the products and nine million of whom have gone inactive.

The lure of gigs is strong because they usually require little capital or training. You don’t need sales skills to be an Uber driver. You wake up, turn on your phone and customers fall out of the sky.

“If you’re losing or can’t gain momentum, a misalignment between your message and target customers may be partly why.” – Noah Westerlund, Senior Vice President of Business Development for SUCCESS Partners

Direct selling experts say that the industry can be competitive by appealing to people’s desire to work for more than just a paycheck. People want to be part of something with a greater purpose—they also will gravitate toward opportunities that provide support and ongoing training so that they can improve personally and professionally.

But we can’t keep doing everything the way we’ve always done it. For example, gig work pays on the spot and that’s a huge deal to its workforce. Direct sellers have to find ways of paying more quickly.

NuSkin, number seven on this year’s list with $2.68 billion in sales, introduced a new compensation strategy in late 2017 to allow for quicker payouts. Through NuSkin’s “Velocity” pay plan distributors can earn retail sharing bonuses daily when someone buys a product via their mobile app. “We found there was a fairly large group of people building a Nu Skin business because they needed income today, not six weeks, or even a week from now,” NuSkin President Ryan Napierski said at the 2019 Companies in Focus.

And about those customers “falling out of the sky?” Direct selling also needs to refine its process of distributing leads to field teams, Westerlund says. “That’s how we become an end-to-end solution that’s competitive with gig economy opportunities.”

Being better

How do we maintain traction where we have it and regain it where we might have slipped?

We always need to recognize and build on what makes us unique—our high-quality research-based products, the opportunity we give people to change their lives in small and big ways and our deep commitment to the communities in which we do business.

It’s also critical for companies to acknowledge and correct for their blind spots and missteps, and that means doing a better job on compliance, income claims and product claims. Bass agrees. Transparency is everything in this industry, he says.

In January, the U.S. Direct Selling Association launched the Direct Selling Self-Regulatory Council to hold the industry even more accountable to ethical business practices. Administered by the Council of Better Business Bureaus, the SRC will monitor the marketplace for questionable activity, investigate consumer complaints and report potentially noncompliant companies to the appropriate government agencies.

“We know that direct selling has sometimes suffered from perceived problems, occasional bad actors and others who pretend to be legitimate,” said DSA President and CEO Joseph Mariano. “We have decided to address these issues directly, by holding companies to the highest standards with an effective third-party regimen.”

Says Bass, “It’s in our collective interest to call each other out and hold each other accountable for deceptive and dishonest speech.”

In addition to staying mindful of industry-specific changes, it’s important to note that the economy is likely nearing the end of a decades-long expansion cycle. It’s too soon to know how much of a slowdown we’ll experience, but slowdowns are inevitable. And maybe a more moderate pace is exactly what everyone needs to catch their breath and make plans for the next race.

$100 million+ non-reporting companies

In addition to the Chinese companies not reporting this year, several $100 million plus companies previously represented on our Global 100 list chose not to report their 2018 data.

The post A Lifetime Of Change In One Decade first appeared on Direct Selling News.

Like many established industries, we’ve dealt with misinformed statements and flat-out fiction throughout the history of the direct selling channel. Recently, news reports proliferated inaccurate direct selling earnings information, erroneously inferring that specific earnings data were published by the Federal Trade Commission (FTC). In fact, the FTC never published a report of this nature and there are no government reports of any sort which address the issue of how much money direct sellers across the business channel earn. Adding to the misinformation, some reporters have referenced an FTC website link to a public comment from an outspoken and opinionated critic of direct selling.

FACTS AND FINDINGS

DSA proactively educates reporters, writes editorials and opinion letters, and even requests retractions or apologies. We’ve also provided direct selling facts and pointed news outlets to thirdparty research and academics, including:

• According to DSA’s 2018 National Salesforce Study, 80 percent of respondents rate their experience in direct selling as good, very good, or excellent.
• DSA’s 2018 National Salesforce Study shows that 90 percent of people involved in direct selling work part-time (fewer than 30 hours per week) with more than 50 percent working fewer than 10 hours per week.
• Research conducted by DSEF Fellow, Dr. Anne Coughlan, Polk Brothers Chair in Retailing, Professor of Marketing, Kellogg School of Management, Northwestern University discusses her independent research on the individual motivations of direct sellers who become involved in the direct selling industry.

TURNING A NEGATIVE INTO A POSITIVE

Pick up the printed issue in which this article is found.

When encountering inaccurate information, we can change the conversation to a positive one by emphasizing the proactive steps we are taking to support and protect U.S. consumers. In many cases, we highlight the DSA Code of Ethics requiring that accurate and truthful earnings representations be shared with all prospective sales people. In addition, we point to the steps we are taking to establish a self-regulatory program. The Direct Selling Self-Regulatory Council (DSSRC) will be administered by the Council of Better Business Bureaus (CBBB) and monitor the entire direct selling marketplace, not just DSA members. This will include websites and social media of direct selling companies and their independent sales forces in the areas of income representations and product claims.

A NEW DSA RESOURCE

Imagine if the more than 18 million people in direct selling and DSA member companies had a go-to source for the latest facts and information to address inaccuracies and, in turn, accurately promote the benefits of direct selling. I’m pleased to tell you that we recently launched, “DSA Fact Check,” a campaign that includes timely questions and answers about our industry, along with
important facts and third-party resources.

When it comes to setting the record straight, we as an industry can be a powerful voice for truth.

The post Fact or Fiction? Let’s Set the Record Straight first appeared on Direct Selling News.

The complaint alleged that the LuLaRoe plan violated the Washington state Anti-Pyramid Promotional Scheme statute, made false and misleading earnings claims to potential and existing participants, and otherwise violated the state’s consumer protection laws.

Direct Selling Association President Joseph N. Mariano said, “DSA members, through their membership, are committed to the highest level of consumer and salesperson protection. In addition to our DSA Code of Ethics, DSA and its members have vocally supported the enactment of strong anti-pyramid laws consistent with the provisions of DSA’s Code, including Washington state’s anti-pyramid law now cited by Attorney General Ferguson.

“Sadly, not all companies in the direct selling channel are DSA members,” Mariano continued, “and non-members like LuLaRoe do not accept, as members are obliged to, the requirements of DSA membership and our Code. That’s why we have just announced the establishment of our new Direct Selling Self-Regulatory Council (DSSRC) in partnership with the Council of Better Business Bureaus.

“The DSSRC will monitor the marketplace, accept competitor challenges, and otherwise consider patterns of consumer salesperson complaints for DSA members and non-members alike,” said Mariano.

“The DSSRC, working in tandem with the DSA Code, is intended to help ensure the marketplace is free of the types of consumer harms, particularly deceptive income and earnings claims, that Attorney General Ferguson’s complaint alleges in this case,” Mariano said. “We wholeheartedly support prosecution of operations that flout the law and disregard the legal and marketplace standards reflected in the DSA Code.”

Direct Selling News has reached out to LuLaRoe to see if they would like to comment on these allegations, and will update this story if they choose to do so.

The post DSA Issues Statement Regarding LuLaRoe Lawsuit first appeared on Direct Selling News.

“I’m especially pleased that Steve Wallach has been elected to serve on the Direct Selling Association’s Board of Directors,” said DSA President Joseph Mariano. “We believe direct selling will play an increasingly dynamic role in the future of retailing, and the entrepreneurial spirit that enables Steve to empower Youngevity’s independent contractors in exciting new ways will be an asset to our board.”

The DSA represents the direct selling industry and advocates on behalf of its 200-plus member companies. Its board consists of 22 industry leaders who serve as officers and directors, as nominated and elected by their peers. In addition to leading and directing the affairs of the association, board members are charged specifically with promoting the DSA code of ethics. Board leadership also carries government relations, education, and research responsibilities.

“I’m extremely grateful for the opportunity to serve on the DSA Board of Directors,” said Wallach. “I look forward to helping advance the association’s global membership initiatives and being at the forefront of positive change in our industry.”

The post Youngevity CEO Steve Wallach Named to DSA Board of Directors first appeared on Direct Selling News.

Protecting our independent salesforce and their ability to build a business on their own terms remains our lynchpin issue.

Joseph Mariano

DSA has made independent contractors’ prevalent in their initiatives. To ensure members are apprised of the most current developments, the Association launched the Independent Contractor Update. This monthly newsletter summarizes events impacting independent contractor status across the country and provides updates on what DSA is doing to position the state of direct sellers positively.

In July, DSA hosted the first Independent Contractor Practicum in Washington, D.C. Nicholas C. Geale, Chief of Staff to the United States Secretary of Labor, discussed the policy priorities of the Administration and Department of Labor to protect and encourage independent contractors. DSA continues to foster positive relationships with government officials to protect our businesses.

In addition to this participation by the Trump administration, the practicum convened leading voices from member companies and outside practitioners to explore updates on recent legal developments for independent contractor status, implications for independent contractors of the recently enacted Tax Cuts and Jobs Act and the association’s legislative initiatives. A range of specific issues relevant to direct sellers as independent contractors such as salesforce training, social media monitoring and contract enforcement were also discussed.

DSA also began an Independent Contractor Working Group under the auspices of the Government Relations Committee. This group of legal and government affairs professionals are examining the legal landscape of independent contractor law and how to differentiate direct selling from those new economy players that now utilize the independent contractor model. A specific goal is to analyze the environment in Washington, D.C. and state capitols to gain increased insights into ways that statutes can more clearly define distributors as independent contractors to keep providing the freedom and flexibility to operate their businesses.

Pick up your print copy of the September 2018 issue in which this article appeared.

DSA has already identified several critical independent contractor initiatives:

• Federal legislation to make clear that direct sellers are not covered by the rigid employment requirements of the Fair Labors Standards Act (FLSA).
• Efforts to clarify similar laws in the states:
  • Continue DSA’s long-standing efforts to have direct selling exemptions from state unemployment coverage;
  • Work as part of a coalition to overturn the recent “Dynamex” decision in California that changed independent contractor law;
  • Remain the leader of the national coalition of businesses devoted to preserving independent contractor status;
  • Engage in our public proclamations of the “Year of the Independent Contractor” and promoting direct sellers as the “original entrepreneurs.”

I am optimistic about the future. I know that by empowering direct sellers, our industry can play to our strengths and leverage our experience, entrepreneurial know-how and drive to innovate and capitalize on the market opportunities.

Our industry has much to gain by empowering direct sellers, and we look forward to embarking on the bold, ambitious initiatives that will preserve our distributors’ ability to continue to thrive for decades to come.

The post Year of the Independent Contractor first appeared on Direct Selling News.