More Canadians Becoming Entrepreneurs Amid ‘Direct Selling’ Movement

Date:

Share post:

More people in Canada are seeing the benefits of becoming independent sales consultants in the direct selling industry to provide some income coming into their households during this economic crisis brought on by the COVID-19 (coronavirus) pandemic.

Peter Maddox, President of the Direct Sellers Association of Canada, said the industry is ideal for many people now who are facing financial hardship with the closure of many businesses and the overall economic downturn.

“I don’t have any firm data but I’m hearing that people are getting more people calling saying ‘hey, I like your products, I’d like to start selling them’. For better or worse, our industry tends to do better when times are a little tougher because people are looking for extra earnings, opportunities,” said Maddox.

PETER MADDOX

According to the association, direct selling is the sale of consumer products or services, person-to-person, away from a fixed retail location. It is a retail channel used by large, global companies and small, entrepreneurial brands to sell all types of goods and services. Driven by independent sales consultants, direct selling is also called social, network, or personal selling.

The association said it’s also an avenue for entrepreneurial-minded Canadians to work independently and to build a business with low start-up and overhead costs. Over 1.2 million Canadians are involved as independent sales consultants and over 14 million are involved as consumers.

Historically that included people going door-to-door to sell encyclopedias or vacuum cleaners. Today, independent sales consultants operate in a vast variety of industries working for retail giants such as Mary Kay, Avon, and Pampered Chef.

Here are some stats the association has about the industry

  • 200+ companies utilize a direct selling model in Canada;
  • 2 million independent sales consultants;

  • $3.5 billion in annual sales;

  • $1.21 billion in annual personal revenue to independent sales consultants;
  • $1.31 billion in national and local taxes paid out annually;$886 million in direct tax revenue;

  • $424 million in indirect and induced tax revenues; and

  • $7.3 billion total economic impact (direct & indirect benefits).

Direct selling is a retail channel used by large, global companies and small, entrepreneurial brands to sell all types of goods and services, including: Nutritionals and healthcare, Cosmetics, Jewelry, Housewares, Food and Beverage, Giftware, and Utilities.

Maddox said working as an independent sales consultant is typically an add-on income for most people – making a few hundred dollars a month and not working full-time hours.

“It’s extra income. Maybe it pays off a car payment, maybe it helps your family go on vacation. Right now you’re not going to just jump in and replace the income from a full-time job. But definitely there’s opportunities for people to make additional income for the family and maybe get a little bit just to keep food on the table and those sorts of things,” he said.

In early April, the association was upset over what it called “the restrictive eligibility criteria” for the Canada Emergency Response Benefit (CERB) by the federal government.

Initially to receive money from CERB, people could not have any income.

“That impacts our sellers in a lot of ways. A lot of them do a regular job and then they do some direct selling to make a little bit of extra money,” said Maddox. “Let’s say they lost their regular $50,000 a year job and were still making $400 a month through direct selling. That meant they couldn’t get any government benefits.”

“So we went to government along with a lot of other groups and said that’s kind of unfair because people have lost the majority of their income. You don’t want to discourage economic activity right now. Recently they announced that you could earn $1000 a month and still apply for that benefit. So we were pleased with that.”

The recent Absolunet's COVID-19 x eCommerce Report revealed that Canadian e-commerce is on the tipping point as online sales have doubled since March 11, the day when the World Health Organization declared COVID-19 a global pandemic.

“I think going forward more people are going to be looking for gig type work where they can piece together a bunch of different jobs to make a living and we can certainly be a part of that,” said Maddox.

The direct selling association estimates that 42 percent of the Canadian population counts on the direct selling industry to deliver a wide range of products and services to them.

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here

RELATED ARTICLES

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Chrome Hearts Buys Yorkville Building for First Canadian Store

Chrome Hearts has acquired the former Webster building in Toronto's Yorkville neighbourhood, paving the way for the luxury brand's first standalone Canadian store.

Lululemon Opens Massive Automated Distribution Centre in Brampton

Lululemon’s new one-million-square-foot Brampton distribution centre will support e-commerce fulfillment across Eastern Canada and the eastern U.S.

CFIB projects private investment to weaken, even as GDP expected to grow in Q2-Q3

Canada's GDP is expected to grow by 2.7% and 1.6% in Q2 and Q3, respectively.

RioCan Sells 50% Share in FourFifty The Well to Woodbourne Capital for $155 Million

RioCan Real Estate Investment Trust has divested its 50% stake in FourFifty The Well in Toronto to Woodbourne Capital for $155 million. This marks a strategic move as RioCan focuses on its core retail operations while Woodbourne gains full ownership of the rental tower.

Why CHFA NOW Toronto Matters for Retailers Navigating the Future of Wellness

CHFA NOW Toronto 2026 brings together retailers, suppliers and emerging brands to help businesses discover the products and trends shaping the future of wellness retail in Canada.

Daily Synopsis: Jul 15, 2026

Jones Soda expands retail, Miss Vicki's returns, no plans for Carlingwood Mall redevelopment sayw owner, Red Apple renovates more stores, London Drugs cuts jobs, and other news.

Quebec Removes QST from Select Foods and Household Essentials

Quebec has removed QST from selected foods, toilet paper and facial tissues, requiring retailers to update product classifications and checkout systems.

Retail Insider “Real Estate & Leasing Report”: Scarcity and Curation Reshape Canadian Retail

Retail Insider's latest Real Estate & Leasing Report examines how limited retail space, selective investment, and redevelopment strategies are reshaping Canada's commercial property market, with growing performance gaps between prime retail assets and secondary centres.

Maxi Plans 13,000-Square-Foot Store at Montreal’s Former Forum

Maxi will open a 13,000-square-foot grocery store at Montreal’s former Forum in 2027, extending Loblaw’s compact urban discount strategy.

B.C.-Built Lemonade Lab Brings Tap Payments to Kid-Run Businesses

B.C.-built Lemonade Lab gives young entrepreneurs access to tap payments, digital storefronts and business lessons under parental supervision.

How B.C.’s House of Q Built a North American BBQ Brand Through Specialty Retail

From competition pits to hundreds of retail shelves, B.C.-based House of Q is building a North American BBQ brand through specialty retail and award-winning products.

Toronto-Based Rawcology launches GUT TO GO probiotic snack bites, expands retail distribution across Canada

The launch marks the company's latest product expansion as it responds to growing consumer interest in convenient foods with added nutritional benefits.

June spending holds steady as Canadians balance essentials and experiences: RBC

“The breadth of spending increases across categories points to households maintaining a cautiously optimistic view heading into the summer even as they remain selective about bigger-ticket discretionary purchases.”

Retailers risk losing sales as more shoppers expect tap-to-pay, Oobit survey finds

44% say a no-tap business feels outdated, a perception problem that compounds the lost sales.

Why consumer behaviour is becoming harder to predict in the AI shopping era

"The whole game is moving from understanding audiences to understanding intent. The brands that make that jump win.”

Why smart retail brands are investing more in in-store experiences despite e-commerce growth

80% of consumers say in-person events are the most trusted way to discover new products — and 85% are more likely to make a purchase after engaging with a brand in person. 

Daily Synopsis: July 14, 2026

Fake fashion stores mislead Canadian consumers online, how malls have sifted with society, Steve's Music auctioning remaining gear, Healthy Planet opening store, Frenchy's thrift store gets own musical, and other news.

Retail Insider “Luxury Report”: Control, Concentration and the Rise of Canada’s Premier Retail Nodes

Canada's luxury retail market is becoming increasingly concentrated around a select group of premier destinations as brands prioritize flagship stores, direct customer relationships and experience-led retail. Retail Insider's latest report examines the forces reshaping luxury investment, real estate and competition.

Bakebe Finds Early Success at CF Markville as Experiential Retail Continues to Grow

Bakebe has opened its first Canadian location at CF Markville, bringing its app-guided baking concept to Canada as experiential retail continues to grow.

Canadian Retailers Face New Discovery Challenge as Shoppers Turn to AI

Canadian retailers face a new challenge as shoppers turn to AI for product discovery, with Retail Rewired’s Chris Parsons urging stronger content, reviews and product data.