Direct-selling association promotes higher professional standards
THE THAI Direct Selling Development Association (TSDA) will join forces with the government, educational institutes and public organisations in a bid to raise occupational standards among direct-selling companies.
A forum, which also include the Office of the Consumer Protection Board (OCPB) and Thailand Professional Qualification Institute (TPQI) for the first time, will be held this month with the aim of moving the country’s direct-selling industry to a more professional level.
Somchai Hatchaleelaha, TSDA president, said that the seventh educational forum on occupational standards would be held on August 19. More than 6,000 local direct sellers had already been trained during the first six forums.
“This time, we have invited the TPQI, which is public organisation, to join the forum to discuss the establishment of occupational standards for the direct-selling industry, together with the OCPD,” Somchai said.
The discussions would be aimed at raising standards to a level that would be acceptable to consumers, he said.
Somchai said that the industry was aware that many people saw direct selling as an opportunity to build profits through marketing schemes.
However, he said it should be understood that not everybody would get rich from being involved in a direct-selling business. In general, only 10 per cent of people involved in direct-selling businesses would be successful enough to reach a high income level. Others should view themselves as customers who enjoy good quality products.
“The problem is that advertisements about direct selling always exceed reality. They persuade people to become involved in the business as independent sellers by giving them impossible expectations of getting rich easily,” Somchai said.
He noted that this was quite different from illegal pyramid schemes, in which participants attempted to make money solely by recruiting new participants into the programme rather than through investments or the sale of products or services.
The hallmark of a pyramid scheme was the promise of sky-high returns in a short period of time for doing nothing other than handing over money and getting others to do the same.
Somchai said that a direct-selling scheme would have a marketing plan that was realistic and was actually applied. These businesses would be able to register with the OCPB.
“The forum will reflect the association’s commitment to building the occupational standards in direct-selling.,” he said. It would also encourage members of society to understand what direct selling is and be aware of the “good and bad things” in the industry.
Somchai said that more than 10 million people were involved in direct-selling businesses with about 900 companies providing direct selling, direct marketing, or online shopping services. However, fewer than 100 of these companies belonged to direct-selling associations.
“Today, we (the TSDA) would like everybody to be able to differentiate between a direct-selling business and a pyramid scheme. We hold this training forum for independent direct sellers and then register them into the system so that they will be recognised and will behave responsibly.
“Every direct seller who passes training at the forum will receive certification from the association,” he said.
