WASHINGTON--(BUSINESS WIRE)--The Direct Selling Education Foundation (DSEF) today released its 2024 Economic Impact Report. This new study quantifying the annual economic impact of direct selling activity on the U.S. economy was conducted by Professor Robert A Peterson, John T. Stuart III Centennial Chair in Business Administration at the McCombs School of Business, The University of Texas at Austin. It shows the direct selling industry contributed:
- $111.4 billion to the U.S. economy in 2022, an increase of $28.3 billion from 2016 (a 34% increase).
- $15.5 billion in tax revenue to federal, state and local governments, an increase of $4.9 billion (a 46% increase) from 2016.
“Because of the nature of the direct selling industry and its widespread use of independent contractors, the total estimated economic impact of $111.4 billion should be considered conservative,” says Dr. Peterson. “What we’re seeing is a big effect on household income (induced effect), an increase of 70% from 2016, and real growth of 34% in total impact over the same period.”
The $111.4 billion economic impact consisted of:
- The Direct (retail sales) Effect of direct selling, $40.5 billion
- The Indirect (upstream or supply chain) Effect of direct selling, $31.0 billion, and
- The Induced (downstream or household) Effect of direct selling, $39.9 billion
“The impact of the channel continues to grow as people engage with direct selling companies to earn supplemental income, pursue entrepreneurial opportunities and enjoy great products and services,” says Joe Mariano, President of Direct Selling Association and DSEF. “The channel is definitely hidden in plain view.”
Direct selling is a business model that offers entrepreneurial opportunities to individuals who, as independent contractors, market products and services to consumers, typically outside of a fixed retail establishment through one-to-one selling, in-home product demonstrations, or online.
DSEF Executive Director Gary Huggins noted, “It is extremely important to engage leading independent scholars and field experts as we seek to advance an understanding of the direct selling channel and its impact on the U.S. economy.”
About the Direct Selling Education Foundation
DSEF engages and educates the public about how direct selling empowers individuals, supports communities and strengthens economies worldwide. For more than 50 years, the Foundation has partnered with members of the academic community to support research and education programs. These programs expand the knowledge and understanding of the fundamental principles of direct selling. DSEF works with more than 200 professors in a variety of disciplines—such as entrepreneurship, marketing, ethics, consumer studies, business and economics—to develop direct selling-related academic research, case studies and teaching content.
