New Member Orientation

Myth of Direct Selling

Tiens Training and Education Dept

New Distributor Orientation

 New Member Orientation

1 、 History of DS
2 、 Present of DS
Index

3 、 Definition of DS
4 、 Core of DS
5 、 Component of DS
6 、 Trends of DS

New Distributor Orientation

History of DS
Direct Selling started from mid of 19 th Century, MLM began from
mid of 20th Century, it’s been 1.5 century now and you can see
DS everywhere is the world.
Before1910 Post-Millenium

• DS grow fast in the world

Pre-Millenium •2005, China announce DS
•1855 ， SouthWest Rules and Regulation
Printing Company founded
and selling bible door to
door
60’s •1975,US government sued
•1886, Avon founded Amway and the lawsuit last for 4
•1910, US DSA founded in years, Amway won and became a
New York legal DS company
•1934, Nutrilite founded •1978 ， WFDSA founded
•1959, Amway founded •1990 ， Avon entered China
•1998 ， China banned MLM

New Distributor Orientation

 Evolution of DS- 5 Era of DS
Opportonity
1st Era Product
•Channeling people to
build a steady consuming
network
•Channeling oriented 2nd Era
•Quality Product became
the fundamental of DS
•Product became the core
to build a steady consuming
network
• Product oriented
All-in
Com Plan
System 5th Era
3rd Era •DS Golden Triangle
•Different Setting of •Unique Quality
the Com Plan to 4th Era Product
attract different group •Multiply and duplicate •Good Com Plan
of audiences, is became the standard • Company Vision and
stimulating the model, competitive contribution
market system became the •Style, Strategy and
•Com Plan oriented major tool to win the Integration
market
•System oriented
New Distributor Orientation
Present of DS

2008-2016 Global DS Sales

New Distributor Orientation

Present of DS

2008-2015 Global Distributor Numbers

New Distributor Orientation

Present of DS

2015 Top 10
DS Countries

New Distributor Orientation

Present of DS
2015 DS growth in Top 10 Countries （ million/person ）

Rank Country Business Volume (Million USD) Distributor Amount

1 USA 36120 20200000
2 China 35455 Unknown
3 Korea 16891 6737546
4 Germany 15185 838833
5 Japan 14664 3311000
6 Brazil 9125 4571625
7 Mexico 6930 2200000
8 France 4590 640215
9 Malaysia 4437 4800000
10 UK 4039 625000
Global Total Volume 183729 103277493

New Distributor Orientation

What is direct selling ？

Direct Selling is a business

model that product and service
supplied and provided by
manufacturer directly to
customer, no intermediaries
such as wholesaler or retailer
involved, seller received order
from the customer directly.

New Distributor Orientation

What is direct selling ？

Direct Selling is a business model that DS company

recruits DS distributor, distributor promotes the product
and service to end user in any venue
Definition of “DS company recruits distributor" are:
1 ： Only those DS company which complied to local laws can operate in
such operation way ；
2 ： Only DS company can recruit distributor, but not any third party or
personnel

New Distributor Orientation

What is direct selling ？

Conventional Direct Selling

 Big investment Capital

 Low entry and Capital
 No Intermediary involved
 Intermediary involved
 Fast and high return
Low and slow return  Own career establishment
 High operation cost  No operation cost
 Passive market control  steady market channeling

New Distributor Orientation

What is direct selling ？

Conventional Business
Wholesaler
Agent From different
level
Retailer

DS Agent
Manu- Consumer

facturer Distributor

Direct Selling Business

New Distributor Orientation
Definition of DS
DS VS Ponzi Scam
Factor DS Pyramid scam/ Ponzi scheme
Company perspective
Income source Product and Service New member entry fee
Concept Quality product and service oriented Scam and cheat
Company Strategy Sales oriented Headcount oriented
Structured and organized operation Non-organized structure
Systematic training program Lack of product training
Com plan Fair scheme – effort = income emphasize on high return and easy up-
rank
Life cycle Long-term operation Short life cycle
Distributor Perspective
Enrolment Low or no enrolment fee High enrolment fee
reasonable management fee and low Large quantity of order required
order quantity required
Guarantee Right, Obligation and responsibility Lack of guarantee, high risk on financial
stated clearly and laws
Product selling Good return within certain period No or high requirement on goods return
Reasonable price Hidden and unfixed price

New Distributor Orientation

Core of DS

Direct Selling is a way you create your own sales business

New Distributor Orientation
Core of DS

DS is a business that rely on team work and collaboration

New Distributor Orientation
Direct Selling Operation Core Factors

通
用
技
Corporate Quality

能
Culture Product

Systematic and High Return

Com Plan
New Distributor Orientation
Trends of DS

Young Diversity Globalization

Generation

New New Health

Sales Model Work Model Product

New Distributor Orientation

 Health Industry
Bright Future
 Massive Potential

New Distributor Orientation

Let’s get to know direct selling

Your decision to Infinite Future

Are you ready?
New Distributor Orientation
 New Member Orientation

Congratulation!
You have completed
NDO — DS Knowledge

Your next training topic : First step to start DS business

New Distributor Orientation