Other Direct Selling Establishments — Business Survival Rate
An estimated 57% of other direct selling establishments businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 10.7%.
Is Other Direct Selling Establishments a Good Business to Start?
With a 57% five-year survival rate, other direct selling establishments is near the national average (~50%). This means roughly half of new entrants will still be operating after 5 years — typical business risk that rewards solid planning and execution.
The annual exit rate of 10.7% indicates moderate turnover. Success depends on differentiation, location, and operational efficiency rather than inherent industry advantages.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net negative: more businesses closing than opening (-0.1 pp spread).
Job Creation & Destruction
The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 193,670 workers across 20,860 firms.
Want to know how much other direct selling establishments businesses actually make?
See full revenue benchmarks for Other Direct Selling Establishments →Frequently Asked Questions
- What percentage of other direct selling establishments businesses fail?
- Approximately 43% of other direct selling establishments businesses fail within their first 5 years. The annual closure rate is 10.7%, with 2,477 firms closing permanently in 2023.
- Is the other direct selling establishments industry growing or shrinking?
- The other direct selling establishments industry is currently stable with a net job creation rate of +1.4% per year. New businesses are entering at 10.5% while 10.7% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.