BUSINESS + ECONOMY

Direct selling and the big impact it has on the Utah economy

Aug 17, 2022, 5:30 PM | Updated: 8:01 pm

direct sales Utah...

FILE: A view of doTERRA essential oil booth August 25, 2021 in New York City. (Dimitrios Kambouris/Getty Images for Mercedes-Benz)

(Dimitrios Kambouris/Getty Images for Mercedes-Benz)

Big businesses like DoTERRA and Nu Skin share more in common with a door-to-door salesman than you may think. They both follow a direct selling business model, and they are popular. These companies made up more than 71% of Utah’s exports in 2020.

Over the decades, Utah has developed into a hub for direct sales. Dr. Levi Pace, a senior research economist from the Ken C. Gardner Policy Institute at the University of Utah, spoke with KSL about its prominence in the state. 

“One thing I didn’t realize was the extent to which this industry brings in revenue from other states and from customers globally,” said Pace.

According to his findings in a study titled, An Economic Analysis of Utah’s Direct Selling Industry, 10 direct selling companies combined for $6.3 billion in international sales. 

Direct sales have proved to be lucrative, but what are they?

Person-to-person selling, fueled by personal networks

Pace said that direct selling includes companies that have a person-to-person selling business model. Fueled by making contacts with their personal networks, he explained that not every internet retail company is a direct sales model.

“Direct selling often involves a lot of in-house manufacturing as well. So ordering and ingredients, but also preparing things,” said Pace. 

According to a paper published by Pace, the direct selling industry employed 17,487 Utahns. It has also indirectly supported 20,751 jobs through industrial activity. These are highly skilled jobs that pay above average said Pace  

“So we’re in the neighborhood of $63-64,000 for an average wage at these jobs,” said Pace. 

He also said that these jobs are not exclusive to the big name companies and that the fact that Utah is in a unique position by housing these companies. 

Related: 

 

 

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Business + Economy

Shopping carts are parked outside a Home Depot in Philadelphia...

MICHELLE CHAPMAN AP Business Writer

Home Depot buying supplier to professional contractors in a deal valued at about $18.25 billion

Home Depot will buy SRS Distribution, a materials provider for professionals, in a deal valued at approximately $18.25 billion.

6 hours ago

Four cats relaxing on chairs and a cat tree at Fawn's Family Rescue...

Heather Peterson

Fawn’s Family Rescue provides lounge to relax with adoptable cats

Fawn's Family Rescue recently opened its doors in Bountiful. The new cat lounge provides a comfortable way for people to hang out with feline friends.

16 hours ago

The Powder Baby Dry Shampoo team poses with its check after winning the 2024 Utah Entrepreneur Chal...

Logan Stefanich, KSL.COM

BYU student startup wins $30K at Utah Entrepreneur Challenge

BYU entrepreneur Kylee Black, who founded Powder Baby, said the cash prize will be instrumental in advancing her business.

20 hours ago

IRS texts are bogus. Picture shows a sign saying "warning, scam alert" on a keyboard...

Britt Johnson

Millions to be paid for Utah’s largest real estate scheme settlement

Over $10 million in refunds will go to victims of a Utah-based real estate scheme following the settlement of a lawsuit.

22 hours ago

1040 form shown, tax refund season is here...

Sam Herrera

Should you spend or save your tax refund?

Filing your taxes can be a headache but figuring out how to spend your tax refund might be a headache in its own right.

1 day ago

Single-family homes under construction in Saratoga Springs are pictured on Tuesday, July 19, 2022....

Adam Small

2023 saw far fewer building permits in Utah, report says

The Ogden-Clearfield metro area had the biggest percentage decline in building permits year-over-year, nose-diving by 34%.

2 days ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

Direct selling and the big impact it has on the Utah economy