Virtual Tour of DSO's

(Direct Selling Organizations)


Amway profile List of DSO links

    Introduction


    It may seem strange that a page on Direct Selling Organizations would appear among New Religious Movements. It is here because often scholars of religion have persuasively argued that DSO's have many features similar to religions. They are often referred to as "para-religious" which is defined by Arthur Greil as ""phenomena that clearly fall outside the American folk category of religion but which nonetheless seem to be "like" religion in certain notable ways."

    The emergence of the internet has provided a new opportunity for all businesses to promote their message, but particularly DSO's (Direct Selling Organizations) who use independent distributors to sell their products. The internet provides a great opportunity to not only promote their products and provide information to their distributors, but it is also a great place to recruit new distributors. According to the Direct Selling Association, DSO's constituted 20.84 billion dollars in 1996 retail sales in the US alone and their were 8.5 million distributors in the United States. (DSA's Statistics). This does not include the increasing presence of DSO's overseas.

    Although many books have been written about DSO's, the internet provides an opportunity to visually see how DSO's work. It also provides us an opportunity to look at many of the images DSO's provide and compare them with common features of religion. Most of this page is either based on Nicole Biggart's book called Charismatic Capitalism or comes from information directly from the web pages. Hopefully this will provide a great interactive tool to understanding the workings of DSO's.

    What are DSO's?

    1. The Products .

      DSO products vary widely, but the great majority are home, family, and personal care products. Almost all of the products are sold with the belief that the product is doing good for the family or society, it has superior quality, or is a better value. Examples:

    2. The Plan .

      The major difference between DSO's and traditional businesses is the DSO marketing plan. Instead of having traditional employees and stores, DSO's mostly rely on independent distributors to sell their products. The primary responsibility of these independent distributor's is not simply just to sell the products, but to also recruit new distributors. The recruitment of distributors can make DSO's very profitable. Each distributor is on their own as to how much they choose to sell, recruit, and make.

      Although each DSO varies, there are three basic ways a distributor can make money. One way is to receive discounts due to the volume of merchandise ordered. The distributor also receives a percentage markup on the merchandise. Finally, the distributor receives a percentage of everything sold in his "downline." The "downline" is anybody the distributor recruited in addition to anybody that distributor may have recruited. This creates an exponential effect of potential revenue sources. Many DSO's also provide bonuses in the forms of cash, vacations, cars, or other gifts. Here are some examples of compensation plans:

    The Appeal of DSO's and Value Rationality

    1. The Appeal through Quizzes

      In a capitalist society, individuals often dream of financial success and security. But within this search, there are many individuals who get lost in the search. DSO's appeal especially to people who see only poor alternatives compared to direct sales. DSO's can give a sense of control over work, a feeling of being rewarded for performance rather than social characteristics, and a work place that provides a friendly, family environment (Biggart 49-50). Many companies provide quizzes to appeal to potential distributors. Look at what companies are appealing to:

      • Bodywise : The main question Bodywise asks is "Are you living your dream?" Do you want a rewarding career? Do you want to set your own income? Finally, it says that Bodywise is the Healthy way to do business.
      • Primerica : Are you serious about changing your life? Notice question 3: Do you see your current position as limiting in terms of career growth and expectactions?
      • Mary Kay : Mary Kay really emphasizes the needs of women. Notice how one question asks, "Would you like being associated with a company that's environmentally concerned and committed to helping women be their best? Not only is it appealing to financial needs, but also the need to do something greater for society.

    2. Women .

      According to the DSA, in 1996, 59.3% of American distributors were female, 23.4% male, and 17.3% couples. Why such a high percentage of women? Since an increase in consumption in America around mid-century, one income in households has become limited. At the same time, women began to enjoy the independence of money as it set them aside from their domestic roles (Biggart 55). Women, however, have not enjoyed a fully integrated work force. Also, women have not fully shed their role as principle caretaker of the household (Biggart 58). The restraints for women still in the regular workforce in addition to the pressure to help the family have made direct selling very attractive to women. Many DSO's directly appeal to this need.

      • Avon : Avon has a whole page celebrating women and their accomplishments.
      • Discovery Toys : Notice how all the distributors featured are women.
      • Country Collectables :Two women founders. Notice the use of American flags with houses and a mission of family intertwined with a product appealing to women. Again, it appeals to the conflicting desires if women.

    3. Value Rationality

      Ever since Frederick Winslow Taylor and "Taylorism," most businesses have been concerned with "economic rationality": a systematic approach to profit and efficiency. Max Weber, however, proposed another idea of "value rationality" in which "duty, honor, the pursuit of beauty, a religious call, personal loyalty, or the importance of some 'cause' no matter in what it consists" (Biggart 101). In his landmark book, The Protestant Ethic and the Spirtit of Capitalism , Weber showed how "ideas and economic activity intersect in an entrepreneurial morality"(103). This can be shown in the Calvinist movement in which earthly prosperity was take to represent God's favor. This "justified entrepreneurial activity as morally correct"(104).

      DSO's capitalize on this "value rationality" by promoting an "American Ethic" in which individual accomplishment determines success and there is a greater meaning than simply money. In many cases, the DSO belief system is almost a religion of the "American Dream."

      • Premier Designs : (go down to their philosophy and the Hornier-Premier foundation) This is a jewelry company but notice how God and the Free-enterprise system are intertwined very similar to Weber's thoughts. Their charity foundation also helps to support Bible based missionary efforts around the world.
      • Equinox : Most DSO's have a cherished Code of Ethics which promotes ethical and cooperative business practices.
      • Enviro-Tech : Enviro-Tech's whole front page has to do with the environment, not its product.
      • Reliv : The Kalorgis foundation is a charitable foundation to provide nutritional resources to poorer countries.
      • Symmetry : These rhetorical questions all tend to deal with some aspect of the American Dream. Do you want a new home? Car? Travel? The title of the page is "freedom;" another core American belief.

    Incentives, Symbols, and Rituals



    What clearly makes DSO's successful, however, are the rituals and symbols they use to reaffirm their beliefs. Here are some examples:

    1. Founders/Leaders

      In most DSO's, the founders or leaders of the organization are brought almost to a sacred status. Members will travel hundreds of miles to see or meet them. Here are some examples:

      • Mary Kay :A whole page dedicated to Mary Kay Ash.
      • Herbalife :The founder, Mark Hughe's, has a large picture at the center of the page.
      • Premier Designs : Listen to message by the founder Andy.
      • Dudley : Founder Joe Dudley has his own book out which particularly reaches out to an African-American audience.

    2. Company Histories

      The history of the company also play a significant role.

    3. Headquarters

      The Headquarters of these companies are also often considered sacred.

      • Tupperware Tour :The Tupperware headquarters is often called a "campus." Notice the main building has a hall of fame. Many DSO's have this to recognize their top sellers and is also often considered a sacred thing to strive for.

    4. Meetings/Conventions

      Most DSO's have regular meetings and conventions for distributors to get together and talks about their products. These conventions are more like a revival, than a business affair. They usually involve clapping, singing, and a motivational singer. Almost all are held in exciting vacation places. Many companies will pay for their top distributors to attend as an incentive.

      • Shaklee : Shaklee offers their supervisors free trips to the conventions. For example, you get "an unbeatable combination of informative workshops, entertainment, business sessions and recognition-and everything wonderful that San Francisco has to offer."
      • Bodywise : Many conventions have special awards presentations at their conventions. This is another ritual to excite distributors. Also notice how many of the participants are celebrating there health product company by doing aerobics together.
      • Premier Designs : The pictures of Premier Design's convention tells a lot. First of all, the theme is "Rainbow of Hope" suggesting the convention and Premier Design's is a bridge to your desires. One picture shows people clapping and singing , very similar to any type of revival.
      • Nuskin
        • : Nuskin really promotes how big its conventions are.

    5. Symbols

      Along with rituals, another important part of most Direct Selling Organizations are symbols. Many of these symbols are simply images promoting the ideals of the company. The most common use of symbols, however, are given to distributors to show their statuses in the organization. These could be pins, cars, or some type of name recognition in the company's headquarters. These symbols often become sacred reminders of their commitment to the company.

      • Equinox : Equinox has a picture of the Statue of Liberty on their opportunity page promoting the idea of the "American Dream."
      • Market America : In order to enter the Market America site, you must click on a picture of a Bald Eagle. This is also an important American symbol and an image of freedom.
      • Mary Kay : Mary Kay is famous for their "pink Cadillacs." Now, however, you can earn a Mary Kay GMC Jimmy.
      • Shaklee : Shaklee allows you to earn the car of your choice and that includes "your license, registration, sales tax, replacement tires, and repairs.
      • Avon : When you reach the President's club level at Avon you receive a "Mrs. Albee hand- painted porcelain award which is a symbol of excellence and was inspired by the entrepreneurial spirit of Mrs. P.F.E. Albee, Avon's first Representative." You can also see the additional levels and awards.
      • Reliv : Reliv puts their Ambassador's names on the web.

    Conclusion

      Although DSO's are not a religion in the traditional sense, their techniques for attracting and retaining new members are very similar. First of all, they design their message to appeal to the needs and values of the potential distributors. Then, through a series of rituals and symbols, they keep their distributors excited about the organization. By understanding how religions form and operate and then comparing them to things such as DSO's, we begin to realize that New Religious Movements are not that much different from many organizations we take for granted.

      ***Due to the ever changing nature of the internet, dead links are always a problem. In as many cases as possible, multiple examples are provided in case one link is dead. We welcome any suggestions for new links or information on dead links.

    Bibliography

    Books

      Ammerman, Nancy Sue. 1983.
          "Because people buy soap": Amway and the priests of capitalism.  Master's thesis: University of Virginia.

      Biggart, Nicole Woolsey. 1989.
          Charismatic Capitalism: Direct Selling Organizations. Chicago: University of Chicago Press.

      Butterfield, Stephen. 1985.
          Amway, the cult of free enterprise.  Boston:South End Press.

      Collins, Randall. 1992.
          Sociological Insight: An Introduction to Non-Obvious Sociology. New York: Oxford Univeristy Press.

      Conn, Charles Paul. 1978.
          The possible Dream: a candid look at Amway. Greensburg; Penn.: Manna Christian Outreach.

      Demerath, N.J. et al, eds. 1998.
          Sacred Companies: Organizational Aspects of Religion and Religious Aspects of Organizations. Oxford.

      Roberts, Richard. 1995.
          Religion and the Transformations of Capitalism. Routledge.

      Smith, Rodney K. 1984.
          Multilevel marketing: a lawyer looks at Amway, Shaklee, and other direct sales organizations.  Grand Rapids: Baker House Books.

    Articles

      Greil, Arthur L. 1993.
      "Explorations along the sacred frontier: Notes on para-religious, quasi-religions, and other boundary phenomena." in David G. Bromley and Jeffrey K. Hadden, The Handbook on Cults and Sects in America Part A. 153-172. Greenich, CT: JAI Press, Inc.

      Cristina Gutiérrez. 2001.
      "Religious Aspects of Multilevel Sales Organizations" Paper presented at the International Conference of CESNUR. London. April 19-22.

Created by  ChristopherSmith.
For Soc 257: New Religious Movements
Spring Term, 1998.
Last modified: 05/03/01