The Direct Selling Education Foundation (DSEF) has released its 2024 Economic Impact Report, a comprehensive study quantifying the annual economic contributions of direct selling activity to the U.S. economy. Conducted by Professor Robert A. Peterson, the John T. Stuart III Centennial Chair in Business Administration at the McCombs School of Business, The University of Texas at Austin, the study reveals significant findings:
- The direct selling industry contributed $111.4 billion to the U.S. economy in 2022, marking a 34% increase ($28.3 billion) from 2016.
- It generated $15.5 billion in tax revenue for federal, state, and local governments, a 46% increase ($4.9 billion) from 2016.
Dr. Peterson notes, “Given the nature of the direct selling industry and its extensive use of independent contractors, the total estimated economic impact of $111.4 billion is likely conservative. We observe a substantial effect on household income, with a 70% increase in the induced effect since 2016, and real growth of 34% in total impact over the same period.”
The $111.4 billion economic impact is broken down into:
- Direct (retail sales) Effect: $40.5 billion
- Indirect (upstream or supply chain) Effect: $31.0 billion
- Induced (downstream or household) Effect: $39.9 billion
Joe Mariano, President of the Direct Selling Association and DSEF, comments, “The channel’s impact continues to grow as people engage with direct selling companies for supplemental income, entrepreneurial opportunities, and high-quality products and services. The channel is indeed hidden in plain view.”
Direct selling is a business model providing entrepreneurial opportunities to individuals who, as independent contractors, market products and services to consumers, typically outside of fixed retail establishments through one-to-one selling, in-home product demonstrations, or online.
DSEF Executive Director Gary Huggins emphasizes the importance of involving leading independent scholars and field experts to advance the understanding of the direct selling channel and its impact on the U.S. economy.
