1855

Rev. JR Graves establishes the Southwestern Publishing House

The Southwestern Company history dates back to the first half of the 19th century. There are indications that the company was publishing religious pamphlets as far back as 1840 but the company finally settled in the mid-1850s as the Southwestern Publishing House under the leadership of Rev. James Robinson Graves. Initially the company sold its products through the mail but after the Civil War, Rev. Graves developed a new sales concept by engaging young Southern men to sell the products door-to-door.

1886

California Perfume Company Founded

McConnell's first General Agent, Mrs. P.F.E. Albee.

David H. McConnell started a company called the California Perfume Company (CPC) in 1886 when he was 28 years old. The company offices were established in New York at 126 Chambers St., a manufacturing and shipping office operating from a room only 20 ft. by 25 ft. McConnell's first General Agent, Mrs. P.EE. Albee, is still remembered today as a model for Avon Representatives and Zone Managers worldwide.

1905

Madam C.J. Walker Paves the Way for Women and Minorities

Madam C.J. Walker is one of the earliest pioneers of the direct selling method of product distribution. In 1905 she developed her own hair care products and started her own company-the Madam C. J. Walker Manufacturing Company- to manufacture and distribute them. Understanding the need for prospective customers to be able to experience her products, Madam Walker spent 18 months between 1906 and 1908 traveling door-to-door selling her products by demonstrating their use and effectiveness. Recognizing that she could duplicate her own successful sales in other women, Walker encouraged other Black Women to leave unpromising careers as poorly paid washerwomen and maids to become Walker Agents and earn commissions selling various hair care preparations directly to customers. Capitalizing on the power of direct selling, Walker spent most of the next decade traveling to promote her products and train her independent sales consultants, proudly known as Walker Agents. By 1910 she had a growing cadre of Walker Agents to sell and demonstrate the product, but she continued to crisscross the United States speaking at churches, lodges and other public venues.

1910

The Agent’s Credit Association is Founded in Binghamton, NY

In 1900 there were slightly fewer than 93,000 traveling salesmen, numbers warranting the formation of a national association one that would look after the needs of direct selling companies and create an image for direct selling as a respectable profession by making sure ethical business methods were observed.

What is today known as the Direct Selling Association was formed in Binghamton, New York, in 1910. At its founding, the association was called the Agents Credit Association. The formation of this group marks the start of the modern-day direct selling era.

The Agents Credit Association had 10 members and functioned primarily in the fields of credit matters and collection of accounts, as its name implies. The original 10 members were

• California Perfume Company (now Avon Products, Inc.) - New York, New York
• Freeport Manufacturing Brooklyn, New York
• McLean, Black & Co. - Boston, Massachusetts
• Mitchell & Church - Binghamton, New York
• Mutual Fabric - Binghamton, New York
• National Dress Goods Co. - New York, New York
• Queen Fabric - Syracuse, New York
• Security Company -Weedsport, New York
• Standard Dress - Binghamton, New York
• World’s Star Knitting - Bay City, Michigan

1914-1918

World War I

1920s

Electrolux, Fuller Brush, Real Silk, and others were busy in the 1920s using door-to-door sales to market their products and make keeping the home a more efficient task, contributing to the ongoing scientific homemaking movement sweeping the U.S.

It was these companies and the executives who led them-including one Frank Stanley Beveridge, who would go on to found Stanley Home Products and give women such as Mary Kay Ash and Mary Crowley their start-that furthered what has been a decades-long adventure for direct selling, as our members continue to introduce products to the marketplace that address a need and inspire progress.

1922

The Fuller Brush Man

The phrase “Fuller Brush Man” is coined by a salesman for the Saturday Evening Post. Having become a national celebrity by the early ‘20s, the Fuller Brush Man is a regular character in comic strips such as Mutt and Jeff and Blondie and Dagwood.

1925

Reorganization and a New Name

At the annual convention of the NAAC in May 1925 at French Lick Springs, Ind., the association was again reorganized and renamed the National Association of Direct Selling Companies. It was at this time that the membership was first divided into Active and Associate members. “Active membership was open to those concerns whose merchandise ultimately reaches the consumer or user by means of a personal solicitation. Mail order operations are not included. “Associate” membership was open to concerns furnishing services or selling merchandise to direct selling companies. Active membership is 80 and associate members number 11.

A new purpose statement was drawn up and the ethical principles therein contained were summed up by NADSC President Frank B. Jennings:

“What the direct selling industry requires above all, gentlemen, is a sincere determination on the part of everyone in it to conduct their business absolutely on the square, that their sales agents are honest, and reliable in their contact with the public...we must continue to operate in the spirit of the closest co-operation, that has always existed between the members of the NAAC, with our individual interests submerged and our supreme objective, the constant improvement and healthy growth of Direct Selling.”

Attorney James George became the first executive director of the association in 1925. Lloyd Deilke joined the association in 1938 as an assistant to Mr. George, and assumed leadership of the association in 1964.

1931

Green River, Wyo. Passes Legislation Restricting the Rights of Door-to-Door Sellers

In what would become known as a “Green River Ordinance,” the town of Green River, Wyo. passes legislation prohibiting door-to-door solicitation. Under such an ordinance, it is illegal for any business to sell their items door-to-door without express permission from the household beforehand. Some versions prohibit all organizations, including non-profit charitable, political, and religious groups, from soliciting or canvassing any household that makes it clear, in writing, that it does not want such solicitations (generally with a “No Trespassing” or “No Solicitations” sign posted.)

The ordinance was challenged on constitutional grounds by the Fuller Brush Company in 1932.

Stanley Home Products is Founded by Frank Stanley Beveridge

1940s

As World War II engulfs the world in turmoil, women in the US are called to service in factories across the country. This is the first time women have entered the workforce in such sizeable numbers. No longer would the fairer half of the American population be content solely with minding the home and the children. Their entrepreneurial spirit would last long after the men reclaimed their industrial jobs - prompting many women to turn to direct selling both as a pastime and a way to earn money, as they had become accustomed to during the war.

1946

NADSC Incorporation

The NADSC was officially incorporated in 1946 under the laws of the State of Minnesota.

1950s

Direct selling expanded dramatically in the 1950s as the entrepreneurial spirit took over and a multitude of future giants were born.

Network marketing great Amway and nutritionals giant Shaklee were just two of our industry’s leaders who were born during this decade. Also industry-leading companies that arriving on the scene were the “royal” fashions of Queens-Way, as well as Jafra and Home Interiors (founded by Stanley alums Jan and Frank Day and Mary Crowley, respectively).

Their success was, in large part, due to the thousands of homemakers who were looking for opportunities to earn extra income while taking care of their husbands and families, having been shuttled out of the factories once World War Il and the Korean War were over.

1951

DSA Begins its First Public Relations Program

The firm of Banner & Greif is contracted to maintain a public relations program for the association.

US Supreme Court Upholds Validity of Green River Ordinances

The Supreme Court rules in Breard v. Alexandria that the ordinances previously upheld at the state level barring door-to-door salesmen from calling on residences in cities such as Green River, Wyoming, are not invalid.

The direct selling industry will spend decades fighting such ordinances city by city until district courts begin to rule that such “Green River ordinances” are in violation of the 1st amendment right of free speech, while at the same time, promulgating reasonable self-regulatory standards regarding door-to-door activities.

The US Supreme Court will ultimately limit the ability of localities and government to arbitrarily restrict commercial speech.

Home Party Success

Tupperware finds that the Home Party is so successful that it pulls all of its products from retail stores and begins to distribute solely through direct selling.

1959

Amway Is Founded by Richard DeVos and Jay Van Andel

1968

J. Robert Brouse Appointed as DSA President

J. Robert Brouse became president of the association on Dec.1, 1968, and was instrumental in the association’s move to Washington, D.C.

1970

The Association’s First Enforceable Code of Ethics is Adopted.

The Association’s first Code Administrator was Clarence Lundquist. Congressman Ken Roberts, Henry Robinson, Bill Rogal and Gerald Gilbert succeeded him. The current Code Administrator is Jared Blum.

1977

Queens-Way to Fashion v. U.S. acknowledged the long understood legitimacy of classifying direct sellers as independent contractors.

1979

In Re Amway, the U.S. Federal Trade Commission challenged the legitimacy of the Amway business model. Ultimately Amway was vindicated and their model upheld -a major Victory for all multilevel marketing companies.

1982

Congress Passes the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) creating special “statutory nonemployee” status for direct sellers in section 3508 of the tax code.

From “Briefing for Members” September 20, 1982

DSA Wins 10-Year Independent Contractor Legislative Struggle

“How sweet it is” were the words DSA President Neil Offen used in reporting the association’s stupendous Congressional victory on the independent contractor issue to Board Chairman James G. Davis, Queen’s-Way to Fashion, Inc. Spreading the word to member companies Chairman Davis stated “This victory reflects DSAs finest hour. It is corroborative testimony to the conviction that group and individual effort can effect outcome,” obviously very successfully.

After 10 years of struggle, Congress has passed legislation DSA has been seeking (as part of President Reagan’s $98.3 billion tax bill). Under the very strong support for our industry by Senate Finance Committee Chairman Robert Dole (R-Kan.), agreement was reached at approximately 4 a.m. on Saturday, Aug. 14, to give special, favorable treatment to our industry vis-à-vis the question of whether or not our salespeople are employees or independent contractors. With the agreement of House Ways & Means Committee Chairman Dan Rostenkowski (D-III), the House-Senate Conference Committee later that evening at 9 p.m. accepted an independent contractor provision to the bill, and created a new category of “statutory nonemployee” applicable to direct sellers, as well as one for realtors.

Specifically, this legislation means that all direct sellers (i.e., individuals whose remuneration substantially comes from direct sales, or other output related to direct sales, and who have a written contract providing they are not to be treated as employees) will be treated as independent contractors for federal tax law purposes. Consequently, the common law test need no longer apply vis-à-vis federal tax law.

In addition, anticipated new information reporting burdens were substantially reduced for our industry. The bill contains the requirement that direct sales companies must, in the future, supply to the IRS the names, address and social security number of salespeople who purchase more than $5,000 of products for resale during the course of a calendar year.

1990s

The 1990s saw technology advance at a tremendous rate. In 1991 the National Science Foundation allows the first commercial use of the Internet. AS this new technology rapidly takes hold and more and more Americans start paying tor dial-up service, many were concerned this modern technology posed a distinct threat to direct sellers. Companies feared this impersonal realm could be a death knell for businesses that achieved their success through the personal connections their salespeople made out in the field. Over time, direct selling companies have embraced this technology-and the advancements that have come in the years since-as a complement to their sales methods, but this future was far from certain a decade ago.

1996

Webster v. Omnitrition

. . . was a class action lawsuit that, in language from a decision by the U.S. Federal Court of Appeals for the Ninth Circuit, questioned the legitimacy of compensation paid on products and services purchased and consumed by individuals who are part of the salesforce.

1999

Andrea Jung is named Avon’s first female CE0, making her the first Asian-American woman on the Fortune 500.

2004

DSA Model Anti-Pyramid Scheme Legislation Recognized by the Council of State Governments

The Council of State Governments recognized the DSA Model Anti-Pyramid Scheme Legislation as passed in South Dakota in their Suggested State Legislation Book. Six additional states have adopted some form of the model, which clearly distinguishes legitimate direct selling companies from illegal pyramid schemes.

2006

Long-term Image Enhancement Program Implemented

The DSA Board of Directors approves plans for a long-term Image Enhancement campaign which would reverse nearly 30 years of relative inactivity in terms of proactive media outreach. In its first year the program results in more than 600 positive news stories.

The Federal Trade Commission Issues a Notice of Proposed Rulemaking with Regard to Business Opportunities

The Federal Trade Commission released a Notice off Proposed Rulemaking (NPR) that would have imposed onerous and impossible requirements on direct selling companies. The Direct Selling Association and its member companies would work for the next three years, through the course of the rulemaking process, to ensure the interests of direct sellers are protected. In 2009 a revised NPR excludes direct sellers from the scope of the rule; the final rule is still pending.

2010

DSA Celebrates its 100th Anniversary