Question 1

How can my company join Seldia?

Accepted Answer

Seldia has three categories of members: national Direct Selling Associations (DSAs), Direct Selling companies having operations in Europe (Corporate Members), and service providers. To be eligible to join Seldia as a Corporate member, a Direct Selling company must be a member of at least three European DSAs. If the company has been active in Europe for less than 5 years, then the criteria is reduced to one DSA.

If you comply with these criteria, you are welcome to send your application to the Seldia Secretariat (seldia@seldia.eu).

Question 2

Would like to start a Direct Selling activity; What should I ensure first?

Accepted Answer

It is advisable to verify whether the companies that you are considering are a member of Seldia or a local DSA. Our members must adopt the European Code of Conduct, guaranteeing comprehensive protection to both consumers and direct sellers.

Question 3

What is the difference between Direct Selling and Multilevel Marketing?

Accepted Answer

Direct Selling consists in selling or recommending personalised services and products directly to consumers by independent sellers who receive compensation linked to sales.

Multilevel Marketing is a Direct Selling system, which allows direct sellers to build their own sales teams. In doing so, direct sellers are remunerated both on the products and services they sell to consumers and on the sales of a network of other independent sellers involved and trained by them in their business.

It is important to note that Multilevel Marketing has nothing to do with Pyramid sales model. Pyramid schemes are illegal. Direct sellers are independent, are not required to work fixed hours and do not have to meet any sales/revenue targets.

Question 4

What is the difference between Direct Selling and Direct Marketing?

Accepted Answer

Direct Marketing and Direct Selling are two business models to promote products or services. They may seem similar, but there are several differences.

Direct Marketing uses various impersonal channels such as print ads, calls, emails, or letters to reach potential customers. While, Direct Selling, relies on a personal connection between sellers and customers.

Direct Selling also offers a more personalised experience than Direct Marketing. For example, customers can receive demonstrations before purchasing a product.

Question 5

What is a Code Administrator?

Accepted Answer

A National Code Administrator is an independent person or body appointed by the DSAs. A Code Administrator shall monitor Companies’ observance of the Codes by appropriate actions, settle any complaint of a consumer or a direct seller which has not been previously resolved with the company, and publish an annual report on the operation of the Codes.The European Code Administrator observes the application and enforcement of the European Code of Conduct for Direct Selling throughout Europe. It consists of four members who meet regularly: three from the Direct Selling sector and the chairperson, who is an independent consumer law professor.Section 4 of the European Code of Conduct provides in detail all the attributes of the Code Administrators, under the title “Code Enforcement”.

Question 6

What products and services are sold in Direct Selling?

Accepted Answer

Direct sales are suitable for a wide range of consumer products and services. The largest product/service categories are wellness, cosmetics and personal care, and household goods and durables. Other product/services categories are clothing and accessories, financial services, foodstuffs and beverages, utilities, home care and improvement, books, stationary, and toys.

Question 7

To what extend does the Direct Selling sector use social media?

Accepted Answer

Many sellers, in particular the ones under 45, use social media to connect with consumers, set up consultations or parties, or even to host virtual parties. This is simply a natural progression to the online space of the personal connections our sector is built on.

Many of our companies also have internal policies to ensure that the use of social media for Direct Selling is not abused, and in 2021 Seldia published a Guide on disclosure and recognisability of the commercial nature of Direct Selling social media content.

FAQ

Commonly asked inquiries about Direct Selling