Why Do Those Companies Fail?

Here are several of the areas where those start-ups in the direct selling industry fail:

There are not so many direct selling companies that start their journeys as big businesses from day one. Almost all are small and medium-sized enterprises (SMEs). In fact, many of them start as family-owned businesses. And they come with their limited resources and their own weaknesses, as well.

Here are several of the areas where those start-ups in the direct selling industry fail:


Global Direct Selling Industry in 2015

Few weeks ago the WFDSA (World Federation of Direct Selling Associations) announced 2015 figures it had gathered from local organizations. Before that, we had Direct Selling News magazine’s company-specific sales volumes.

Both reports contain interesting statistics, especially from a comparative point of view. Let’s take a look at these numbers.

Regions and Countries

Consumers in Portugal

Direct Sales Strong In Portugal

When your company enters a new country, the most important step you can take is to learn about that country’s culture, economy, and regulations. Rules of thumb for international operations and commissions can only get you so far. Take time to get to know individual markets. Today, let’s take a look at Portugal.

The World Federation of Direct Selling lists Portugal as having 195,180 distributors in 2014 with the equivalent of 279 million US dollars in sales. The Portuguese market remained steady over the past 3 years. Alturas and Santos (2009) researched the consumers of direct sales products in Portugal. Although Portugal is a small market, the insights gained about consumers provides a window into the European market, which ranks third in the world—behind Asia (first) and the Americas (second).

We know from other research that direct sales consumers in the U.S. list convenience, ability to handle the product, and personal attention as advantages (Ridgway, 1989). We also know that consumers of direct sales products and services tend to have higher education levels.