Direct Sales Awareness and Compliance Certification Course (DSACC Course) - Developed for BE Independent Affiliate

Written By Aman

Last updated 4 months ago

Course Syllabus📖

  1. What is Direct Sales Marketing, Affiliate Marketing, Network Marketing or Multi-Level Marketing (“MLM”)?

Direct Sales (also known as Affiliate or Network Marketing), a business model where independent Affiliates promote and sell products directly from manufacturers to consumers, eliminating middlemen. This approach reduces operational costs, allows manufacturers to reward independent Affiliates through commissions, and creates a win-win for all parties. Companies like BE operate on this model, offering low-cost entry, no inventory requirements, and opportunities for skill development and income growth.

  1. Why BE developed this course?

BE developed this detailed awareness and compliance course to educate independent Affiliates, customers, and the public about the legitimacy and value of the Direct Sales industry, which is often misunderstood and unfairly criticized. Despite misconceptions and comparisons to illegal schemes, Direct Sales operates as a lawful business model with inherent risks like any other legitimate enterprise. Through this initiative, BE aims to promote transparency, correct misinformation, and strengthen understanding of how ethical Direct Sales companies function.

  1. Why would an Independent Affiliate join a Direct Sales Company?

    Independent Affiliates join Direct Sales companies for different reasons; some seek short-term extra income, while others aim to build a long-term career.

  2. What is the difference between legal Direct Sales companies and Illegal Pyramid Schemes?

The table in this module outlines key differences between legitimate Direct Sales companies and illegal pyramid schemes, emphasising that legality depends on multiple factors, not isolated traits. Legitimate companies, like BE, focus on real products, customer sales, transparent operations, and regulatory compliance. Pyramid schemes, on the other hand, rely on recruitment, false ROI promises, and lack genuine products or legal structure.

  1. How big is the Direct Sales Industry?

The global direct selling industry, valued at over USD 189.71 billion in 2021, is projected to grow steadily at a 6.1% annual rate through 2028. It provides millions worldwide with income opportunities and promotes micro-entrepreneurship, with participation expected to keep increasing.

  1. What are the different Laws and Regulations Applicable to a Direct Sales Company?

Direct Sales companies are subject to various laws depending on their products, sales channels, and jurisdictions. While some regions have specific Direct Sales or anti-pyramid scheme laws, others apply general regulations like consumer protection, data privacy, advertising, and fair trade. Additional licenses or approvals may be required for regulated products such as health supplements, insurance, or securities.

  1. What are the compliance requirements for an Independent Affiliate working with a Direct Sales Company (& how to promote BE)?

Independent Affiliate must respect the company’s intellectual property by following brand usage guidelines and seeking approval before creating promotional content. All product claims must include clear, visible, and substantiated disclosures to avoid misleading customers. Likewise, income or lifestyle claims require truthful disclaimers showing average earnings, as exaggerated or unverified statements can result in regulatory or legal action.

  1. What are Unethical Practices in Direct Sales Industry?

Independent Affiliate must follow both legal and ethical standards, avoiding practices like false claims, misuse of company IP, harassment, fraud, or misleading promotions. Acting unethically can lead to serious consequences, including account termination or legal penalties. BE encourages all Independent Affilaite and customers to report violations, emphasizing that compliance is an ongoing responsibility, and completing the course doesn’t exempt anyone from accountability.

  1. MCQ Questions

Additional Links/Readings:

Name

Author

Publisher

Year

Topic(s) Covered

Reading Type

BE Policies and Procedures

BE

BE

2022

Distributor’s Legal, Compliance and Ethical Obligations

Mandatory

DSA Code of Ethics

DSA

DSA

Mandatory

Research Articles - Direct Selling Education Foundation

DSEF

DSEF

Updated Regularly

Compliance, Ethics, Market Research, Best Practices etc.

Optional

The Role of the Independent Affiliate Network in the Persistence of Legal and Ethical Problems of Multi-level Marketing Companies

Claudia Groß and Dirk Vriens

Journal of Business Ethics

2019

Corporate ethics Illegal behaviour Multi-level marketing Unethical behaviour

Optional

Guidance on Earning Claims

DSSRC

DSSRC

2022

Earning, Lifestyle and Product Claims

Mandatory