| Direct
Selling in New Zealand |
Direct Selling
in New Zealand is a method of selling products or services directly to consumers, typically outside of a retail store setting. This can include in-home demonstrations, one-on-one appointments, or parties. Products are sold by an independent representative, rather than a traditional retail store or e-commerce platform. :
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| There are many decriptions and terms used however the only accurate term is Direct Selling whereas other terms can be used to disguise illegal pyramid schems as a direct selling business. We discourage those terms being used. |
| Pyramid or Genuine Business Opportunity? |
| With direct selling in New Zealand there must all ways be a consciousness of that which can be defined as Pyramid. Hence the prime
purpose must always be to sell products and using products as recruiting for reward such as buying a gold coin to join may likely be a sign of an illegal pyramid scheme. Genuine direct sellers only provide income from the sale of products or services which may include bonuses to those who have recruited a person on actual sales made by that person |
| Prosecutions of illegal pyramid schemes may viewed at the Commerce Commission Site found through our Government Links Page. |
| Potential |
On a base ratio
of potential in New Zealand, it is reasonable to assume that
the overall Direct Selling Market for New Zealand can grow to
at least 3 and possibly 4 times its present size on dollar value
and around double the number of distributors
This is justified by taking the US and Japanese ratios and applying
them to New Zealand. (If we were to take the Japanese, Korean,
Taiwanese or Malaysian markets then the potential is far greater
when considering the per capita sales)
This assumes that New Zealand can grow to the same ratios from its present of 1 in 36. If markets like those in Asia were considered then perhaps the present level of Direct Selling is just the tip of the iceberg! |
Companies considering
setting up a Direct Selling operation in New Zealand are advised
to contact the DSANZ to obtain a copy of the Code of Practice and discuss their sales
plan for potential problems.
There is no charge for this service but clearly the DSANZ would
look to those companies to take up membership and adhere to the
Code of Practice when commencing operations in New Zealand |
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