In its 2024 Economic Impact Report, the Direct Selling Education Foundation (DSEF) reported the combined annual industry impact of direct selling activity on the US economy in 2022. The study 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.
The total economic impact of the direct selling industry was estimated to be $111.4 billion in 2022, with $40.5 billion resulting from retail sales generated by direct selling; $31 billion impacting supply chain; and $39.9 billion associated with household spending. This is a significant increase (34%) from $83.1 billion in 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,” said 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.”
As a percentage of retail sales, direct selling fell into six main categories: wellness (34.7%); services and other (30.7%); home and family care or home durables (16.1%); personal care (10.7%); clothing and accessories (5%); and leisure and educational (2.8%).
Direct selling’s fiscal impact in 2022 included $9.5 billion in federal tax revenue and $6 billion in state and local tax revenue.
“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,” said Joe Mariano, President of Direct Selling Association and DSEF. “The channel is definitely hidden in plain view.”
