What is Disinformation?
Many scholars believe the term originated in the 1950s in Russia but it is in the 1990s, with the dawning of the digital age, that disinformation began to spread irrepressibly. Today, conspiracy theories, propaganda, deepfakes, fake news, hoaxes, frauds, photoshops, and scams are intentionally designed to target and mislead ordinary citizens.
What is Direct Selling?
Different Types of Disinformation
Around Direct Selling
Impact of Disinformation
on Businesses and the Industry
Disinformation can damage a company’s brand, impact the public’s trust in an industry, and even influence financial markets. For example, in recent years conspiracy theories about 5G cell towers have slowed down or even stopped the upgrade of digital infrastructure in many areas. False stories on social media about Metro Bank in the UK caused customers to line up to close their savings accounts. One study estimates that fake news costs the US stock market US$39 billion each year.
This is why many direct selling companies work with the World Federation of Direct Selling Associations to combat disinformation about the industry and institute comprehensive policies and procedures to promote public trust in the direct selling model.
Direct Selling Industry FAQs
How big is the Direct Selling industry?
Why are direct selling products generally more expensive than similar products sold off-the-shelf?
The direct selling business model is all about reaching out to customers and members with premium, exclusive products that are not generally available through retail stores. Most of these products, both durables and consumables, have features and benefits that have to be explained to the customer, it is not something an individual would directly pick up off a rack. In the case of consumables, the efficacy of the product has to be established to ensure repeat purchase. The success of any direct selling company is reliant on this aspect.
An example is QNET, whose product price is the prerogative of the manufacturer/seller. It may be pertinent to note here that most consumer products have a cost of 30% of MRP and the remaining is distributed over marketing expenses and margins of the wholesaler and retailer. The formula applied by direct selling companies is the same.
Why do some people succeed in direct selling and others don’t?
Direct Selling is a great platform to look for an additional source of income or for a full-time business. However, just like any other business, some people succeed, and some don’t. And therein lies the beauty of direct selling: It allows you to work at your own pace, which also explains why the results vary from person to person. Here are seven reasons why some people make money in direct selling (and others don’t):
- They are focussed
- They don’t procrastinate
- They are consistent
- They take relationships seriously
- They don’t expect overnight results
- They don’t overcomplicate the business
- They have supportive uplines
Is Direct Selling Legal and Safe?
The direct selling industry is serious about protecting its members. That’s why it has regulations in place that also help to create confidence in the market. Direct selling protects its customers and entrepreneurs in two ways: (1) Self regulation through the Code of Ethics and (2) Laws in individual countries. Direct selling rose to popularity in the U.S. from the 1900s onwards. That required an independent body to protect the sector, which led to the formation of the U.S. Direct Selling Association (DSA). The DSA created the industry’s Code of Ethics to maintain the highest standards for doing business. These ethics cover what direct sellers can and cannot do when it comes to building the business. Today, more than 60 countries have their own direct selling associations. Local DSAs are a crucial part of the industry’s support structure. They act to promote the industry and to build trust and integrity around it.
Reference: Is Direct Selling Legal and Safe?
Who Are We?
Why did we set up this Direct Selling Disinformation Centre?
Use this Form to Report Disinformation about QNET