57% of ‘Direct Sellers’ Earn Nothing
Pyramid schemes – You need to sell 3,243 of this popular product to earn UK’s minimum yearly wage
After analysing the income disclosure of 30 direct selling businesses, Ocean Finance uncovered that:
- 57% of sellers earn nothing
- A third (33%) earn £36 or less per month – however, this is pre-expenses and doesn’t include the joining fees to sell, or purchasing the products to sell
Many of the direct selling businesses admit this in their small print, too. One report said, “These figures do not represent a profit, as they do not consider expenses incurred by a Brand Affiliate in the promotion of his/her business. Common expenses may include, but are not limited to, travel, office supplies, license fees, insurance premiums, and legal or accounting fees.”
Another stated, “These figures do not represent profits, as they do not include expenses such as renewal fees, event registration, etc. incurred in the promotion of their businesses.”
How Many Products You Would Need to Sell to Make the UK’s Minimum Wage
Ocean Finance have also uncovered the best-selling product for some of the UK’s most popular direct selling businesses and calculated how many you would need to sell to earn the minimum yearly wage (£16,216)
|Direct Selling Business – Best-Selling Product||The product is sold for||Per Week – No. of Sales Required to Earn Minimum Annual Wage||Per Year – No. of Sales Required to Earn Minimum Annual Wage|
|The Body Shop at Home – Hemp Hand Protector||£5.00||62||3,243|
|Avon – True Glimmerstick Eyeliner||£6.00||52||2,703|
|Usborne Books – ‘That’s Not My…’ Book||£6.99||45||2,320|
|Scentsy – Wax Bar||£7.25||43||2,237|
|Amway – Vitamin B Plus Nutrilite||£17.85||17||908|
|Younique – Moodstruck Opulence Matte Lipstick||£21.00||15||772|
|Herbalife – Formula 1 Meal Replacement Shake||£30.99||10||523|
|Forever Living – Freedom Aloe Gel||£31.34||10||517|
|Arbonne – Make-up Primer||£32.00||10||507|
Sellers for The Body Shop at Home would have to sell 3,243tubes of their popular Hemp Hand Protector (sold at £5.00) each year to earn the UK’s minimum wage. This works out at a staggering 62 sales per week.
Avon sellers would have to sell 2,703 of their True Glimmerstick eyeliners per year, which works out at 52 sales required per week.
Selling homeware is just as hard as beauty, too with Scenstysellers having to sell 2,237 Wax Bars per year, or 43 per week at the standard price of £7.25.