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July 21, 2017

U.S. News

Jeff Higginson Appointed CEO International of FuXion Biotech

Photo: Jeff Higginson (left), CEO International at FuXion BioTech, with company Founder and Owner Alvaro Zúñiga.


Lima, Peru-based FuXion Biotech, the provider of nutritional beverages made from Andean, Amazonian and Oriental fruit and vegetable extracts, recently announced that industry veteran Jeff Higginson has been appointed to the newly created position of CEO International to help the company with rapid expansion.

“We are now in a process of transformation as we move from one of Latin America’s strongest companies into a true worldwide powerhouse,” said CEO and President Alvaro Zuniga Benavides, who founded the company in 2006. “Jeff brings the talent, experience and passion to help us continue our growth in South and Central America, and to develop the U.S., European and Asian markets.”

Prior to FuXion, Higginson was with another health and wellness company in the direct selling channel. He served as Director of Sales & Marketing during its initial launch, and in 2010 was named co-CEO.

“The FuXion product line meets the needs of millions of people, and I’m excited to join the team taking the FuXion movement around the world,” said Higginson.

FuXion was founded on the belief that ancient knowledge of millenary cultures could be leveraged using modern biotechnology. The company’s products are made by merging more than 1,500 active ingredients extracted from natural foods and combining them in unique formulations with modern technology to multiply the benefits of each. In April, the company placed No. 85 on the Direct Selling News Global 100 list of the top direct selling companies in the world, achieving $135 million in 2016.

July 20, 2017

U.S. News

Herbalife Nutrition Introduces New Simply Probiotic

Los Angeles-based Herbalife, the global nutrition company, recently announced the launch of Simply Probiotic, a new product designed to help the more than 74 percent of the United States population experiencing intestinal imbalances.

Simply Probiotic is a science-backed, easy-to-use powder probiotic that delivers 1 billion active probiotic cultures per serving to support gut balance. It is portable, and requires no refrigeration or special storage. It mixes easily with hot, cold or frozen foods and beverages such as water, tea or coffee. It contains zero calories per serving, with no artificial flavors, colors or added sweeteners, and is made with non-GMO ingredients.

“Simply Probiotic is an easy-to-use solution to promote the growth of beneficial bacteria in the intestines for those who want to maintain a healthy digestive system,” said Dr. John Agwunobi, M.D., M.B.A., M.P.H., Chief Health and Nutrition Officer, Herbalife Nutrition. “Our new probiotic powder can be added to any diet to promote beneficial bacteria in the gut.”

Simply Probiotic is formulated with GanedenBC30®*, a patented, shelf-stable probiotic strain that can survive the acidic gastric passage to germinate in the intestines. Probiotics can assist individuals who experience daily gut discomfort due to poor diet, an on-the-go busy lifestyle, lack of exercise or stress, and those who want to maintain a healthy digestive system.

In addition to Simply Probiotic, Herbalife’s other digestive health products include Active Fiber Complex, Herbal Aloe Powder and Herbal Aloe Concentrate.

*GanedenBC30 is a registered trademark of Ganeden.

July 20, 2017

U.S. News

Intuit and Stella & Dot to Simplify Finances for Consultants

Intuit Inc. and Stella & Dot, the San Bruno, California-based global fashion accessories brand and social selling company, are working together to offer Stella & Dot Independent Business Owners in the United States and Canada the ability to manage their finances and tax obligations with QuickBooks Self-Employed (QBSE). The agreement between Intuit and Stella & Dot also applies to KEEP Collective, a Stella & Dot sister brand focused on personalized accessories.

Today, more than 360,000 self-employed individuals worldwide use QuickBooks Self-Employed to track their business finances and understand their tax obligations throughout the year.

Stella & Dot Independent Stylists and KEEP Collective Independent Designers are a part of the booming direct sales industry, contributing to the larger, overall trend of self-employment globally. Intuit forecasts that independent workers, which include direct sellers like Stella & Dot Stylists and KEEP Collective Designers, will make up 43 percent of the American workforce and 45 percent of the Canadian workforce by the year 2020. Additionally, according to the Direct Selling Association, 5.3 million people were building independent businesses as direct sellers in the United States alone last year. Similarly, in Canada, the Direct Sellers Association states there are 882,000 direct sellers who drive $792 million in revenue.

QuickBooks Self-Employed helps untangle business and personal expenses, uncover potential deductions and provide insight into tax obligations through the following features:

  • Expense Tracking: Business and personal expenses are easily categorized, making it easy and fast to track every potential deduction.
  • Mileage Tracking: Users can track mileage automatically. QuickBooks Self-Employed helps users identify potential vehicle deductions and prepare for tax time.
  • Receipt Snap: Snap a photo of a receipt with the mobile phone app and automatically create a transaction with the receipt attached. If a transaction already exists, Receipt Snap will automatically attach the receipt to that transaction.

“While being self-employed means different things to different people, one thing holds true for all: the opportunity to create a business that suits your individual needs,” said Cassie Divine, Vice President and Business Leader of Self-Employed Solutions at Intuit. “But we also know the freedom and opportunity that comes with being self-employed can bring uncertainty around financial management and tax compliance. QuickBooks Self-Employed offers the tools direct sellers need to effectively manage their businesses….”

July 19, 2017

U.S. News

Natural Health Trends Q2 2017 Revenue Down

Natural Health Trends Corp., a company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, recently announced preliminary financial results for the quarter ended June 30, 2017.

The Rolling Hills Estates, California-based direct-selling and e-commerce company estimates total revenue for the second quarter to be $51.5 million, compared to $80.4 million in the second quarter of 2016. The Company further estimates that its deferred revenue at June 30, 2017 was $4.0 million, compared to $4.3 million at March 31, 2017. At June 30, 2016, deferred revenue was $8.8 million, compared to $6.5 million at March 31, 2016.
 
Earnings per diluted share for the second quarter are estimated to be in the range of 85 cents to 90 cents, compared to $1.07 per diluted share in the second quarter of 2016.
 
“Our preliminary revenue estimate for the second quarter of 2017 remained under pressure as our leaders continued to progress through the slowdown we have been experiencing in our Asian markets since the third quarter of 2016,” said Chris Sharng, President of Natural Health Trends Corp. “In order to reinvigorate momentum in Asia, we have enhanced our incentive programs, launched new promotions and prepared for our summer event in Kuala Lumpur. Further, the second quarter of 2016 presented a difficult year-over-year comparison as a significant product price increase was phased in starting from June last year, pulling demand forward into the quarter a year ago, which led to record product orders. Partially offsetting the sales decline during the second quarter of 2017 was strength in Europe and the market opening in Peru as well as a positive response to our recent product introductions. Importantly, we have been able to successfully retain all of our top ranked leaders through these challenging times and morale remains strong.”
 
The Company, which operates through its subsidiaries throughout Asia, North America and Europe, expects to issue its complete second quarter 2017 financial results in early August. 

July 19, 2017

U.S. News

Ambit Energy Forms 501(c)(3) to Fight Hunger

Dallas, Texas-based Ambit Energy, the world’s largest direct seller of energy and a leading national retail energy provider, recently announced the company’s corporate social responsibility initiative, Ambit Cares, has been granted 501(c)(3) status.

“We are proud to officially launch Ambit Cares as a national nonprofit dedicated to fighting an issue that affects far too many of the communities we serve, including our home here in Dallas,” said Jere Thompson Jr., Co-Founder and CEO of Ambit Energy. “The Ambit community has a unique opportunity to have a positive impact with a national reach, and what our team has accomplished in a short time is a testament to our commitment to this cause.”

Ambit Cares was formed to provide an opportunity for employees and consultants to help fight hunger in their communities. The company organizes corporate volunteer opportunities every quarter and encourages consultants to participate in local efforts that work toward ending hunger, which affects one in eight Americans. In 2016, the first full year of the program, 557 Ambit Cares participants volunteered 3,292 hours at hunger relief organizations in the U.S., and donated 218,474 pounds of food and $65,495 in monetary contributions.

Ambit Cares has also launched an online donation page for consultants, customers, employees and friends of Ambit at AmbitCares.org. Feeding America, a nationwide network of food banks and the nation’s leading domestic hunger relief charity, is Ambit Cares’ primary beneficiary. Ambit Cares distributes donations received in the areas from which they came, so contributors know they are giving back locally.

Ambit Cares also advocates for hunger relief awareness and promotes volunteerism. By tracking volunteer hours, pounds of food donated and monetary contributions, Ambit Cares is able to recognize volunteers, including the Volunteer of the Year, who is announced at Ambit Energy’s annual conference, AMBITION, each year.

“The immediate enthusiasm and commitment to Ambit Cares by our consultants, employees and customers has been incredibly inspiring,” said Anna Batman, Director of Programming for Ambit Cares. “We look forward to building on this momentum as we grow our programs and extend the reach of Ambit Cares.”

July 19, 2017

U.S. News

Mary Kay’s “Suits for Shelters” Provides Clothing to Abuse Survivors

Photo: Models show off clothing options provided for abuse survivors through Mary Kay’s “Suits for Shelters.”


Mary Kay Inc.’s ninth annual Suits for Shelters program will collect women’s professional attire in Dallas through Aug. 4 to give women the ability to pursue lives full of independence and empty of violence.

Tootsies, located in the Plaza at Preston Center, will accept community donations. In return, those who donate items will receive a $25 Tootsies gift card. WFAA News Channel 8 is airing a series of public service announcements to encourage community support and more donations for the annual clothing drive.

“Although it may seem simple, receiving a skirt or blouse truly does have the potential to change a domestic abuse survivor’s life and provide professional opportunities some women may never have thought possible,” said Jan Langbein, CEO for Genesis Women’s Shelter & Support. “Mary Kay is a proven leader in the fight against domestic violence, and Suits for Shelters is a unique way to engage our community, introducing them to the issues domestic violence survivors face every day.”

A partnership between Mary Kay Inc. and The Mary Kay FoundationSM, Suits for Shelters supports domestic violence survivors with professional attire to help boost confidence as they start their lives free from abuse. Since 2009, Suits for Shelters has collected more than 17,000 pieces of professional clothing for women in need.

“Suits for Shelters is just one way that Mary Kay and our community can partner to offer domestic violence survivors a piece of hope as they take their next steps into a life free from their abuser,” said Ryan Rogers, Vice President of The Mary Kay FoundationSM and grandson of company founder Mary Kay Ash.  “Domestic violence is an epidemic that impacts one in four women regardless of age, race and socioeconomic status—it does not discriminate. Women’s shelters in our community and across the United States provide life-saving services. Mary Kay’s support of these organizations is an important part of our commitment to ending domestic violence once and for all.”

Mary Kay has a long-standing commitment to prevent and end domestic violence. Over the past 15 years, Mary Kay Inc. and The Mary Kay FoundationSM have donated more than $53 million to domestic violence prevention and awareness programs to women’s shelters across the country in an effort to end the cycle of abuse.

“Suits for Shelters unites our community in providing a pathway out of abuse for survivors as they seek employment, which is essential to a life free of abuse,” said Crayton Webb, Vice President of Corporate Communications and Corporate Social Responsibility for Mary Kay Inc. “Empowering women and enriching their lives is part of our corporate fabric, and we know one of the first steps to an enriched life is feeling safe in your own home.”

July 18, 2017

U.S. News

WorldVentures Announces Expansions into 4 Countries

Plano, Texas-based WorldVentures™, a leading direct seller of global travel and leisure club memberships, recently announced it has opened for business in four new territories—Guam, Jamaica, Latvia and Uganda.

According to the company, Guam offers a business-friendly climate and a stable economy, having experienced a US$651 million annual spend by foreign tourists. “Growth in Oceania is a natural and exciting progression considering the success we have enjoyed in Asia,” said Wayne Nugent, Founder and Chief Visionary Officer for WorldVentures. “We are offering Representatives a chance to experience the fun, freedom and fulfillment that WorldVentures is built on, and we are thrilled to launch our business model on the island of Guam.”

WorldVentures also launched WorldVentures Marketing Jamaica Limited, marking its second Caribbean foothold next to Puerto Rico. As the third-largest island of the Greater Antilles and a destination known for its music, cuisine and scenery, Jamaica will help to increase the company’s presence in the region. “As a business, travel is one of the largest industries globally with unparalleled growth potential and we are seeing strong momentum here in Jamaica, where tourism is one of the key drivers of the economy,” said Nugent.

The company also announced the expansion of WorldVentures Marketing to Latvia, marking the company’s first foray into the Baltic region. “With one of the world’s fastest telecommunications infrastructures and free economic zones to encourage entrepreneurs, it makes sense to expand into Latvia,” Nugent said.

Additionally, WorldVenture has established WorldVentures Marketing South Africa (Pty) Limited in Uganda, a move expected to bolster the East African nation’s economy through business opportunities and increased tourism. “It’s no longer sufficient for WorldVentures to cast a wide net in emerging markets,” said Nugent. “Rather, we seek to power growth by creating new markets and changing the landscape of existing ones. Africa is a strong area of focus and expansion there demonstrates our ongoing commitment to share the WorldVentures opportunity with every person across the globe.”

July 17, 2017

U.S. News

Amway’s Steve Van Andel to Retire in 2018

Photo above: Steve Van Andel (left) and Co-CEO Doug DeVos with Michigan’s Hillsdale College inset. The college’s graduate school bears Van Andel’s name.


Ada, Michigan-based Amway, the No. 1 direct seller in the world, recently announced that Co-CEO Steve Van Andel will retire at the end of 2018.

The early announcement is intended to give the company time to determine who will take over his role as Co-CEO, a position he shares with Doug DeVos. Van Andel plans to remain as Chairman of the Board while stepping away from his day-to-day duties. DeVos also serves as President.

“My goal is to stay engaged,” Van Andel told The Grand Rapids Press. “I love the Amway business. I love being part of it. I love what Amway does and what Amway stands for.”

Van Andel has worked for Amway for 45 years and has served as Co-CEO since 1995, when he succeeded his late father, Jay, who co-founded the company with Rich DeVos, father of Doug DeVos.

“Both our dads told us don’t ever forget two heads are better than one, and that probably helped out our partnership,” he said.

Van Andel said a decision hasn’t been made if one of his siblings—Nan, David or Barb—or someone outside the family would take over the Co-CEO responsibilities. David Van Andel is Founder and CEO of the Van Andel Institute in downtown Grand Rapids.

“Will there be something else? Who knows,” Van Andel said. “I haven’t really thought that far ahead yet to figure out if just time with my family is enough or if there needs to be something else. We’ve got a year and half before I think about what is next.”

July 14, 2017

World News

ORGANO Launches OGXFENIX Beverage and Product Line in Europe

ORGANO, the Vancouver, Canada-based direct seller of coffees, teas, nutraceuticals and personal care items, recently announced that its popular Body Management product line, complete with its premier product, OGXFENIX, will be available throughout Europe commencing Aug. 6. The OGX Body Management product line debuted last year in North America and has been the company’s fastest selling product family.

“ORGANO has always been guided by a desire to provide convenient, premium products that benefit an active lifestyle,” stated Bernardo Chua, Founder and Chief Executive Officer of ORGANO. “Our Body Management product line is the embodiment of that vision and mission. As a global company, it is gratifying to witness a positive international response to our products, to the ORGANO community and to the ORGANO family.”

OGXFENIX, available in both creamy vanilla and rich chocolate, is gluten-free, contains whey protein free of artificial growth hormones and synthetic sweeteners, and features the anti-oxidant rich Ganoderma mushroom, electrolytes, and a pre-biotic fiber for optimal digestive health. Shipped in powder form, OGXFENIX products currently can be purchased in Europe through pre-orders.

The OGXFENIX product line also includes such product entries as Organic Ganoderma Lucidum, Ganoderma Lucidum Mycelium, and Organic Ganoderma Lucidum Spore Powder, which are available in the Netherlands, Belgium, Germany (Organic Ganoderma Lucidum Spore Powder is not available in Germany), Spain, France, Italy, Czech Republic, Poland, Austria, Slovenia, Hungary, Ireland, Greece, Cyprus, Portugal, United Kingdom, Slovakia and Romania. These products will be coming soon to Denmark, Sweden, Norway and Finland.

“Enjoying OGXFENIX allows individuals to manage their weight while saving 1,000 EUR to 3,000 EUR per year in the process,” added ORGANO Co-Founder Shane Morand. “With OGXFENIX, a complete meal can be made in under two minutes, thereby keeping with our promise to provide the world with premium and convenient products.”

“ORGANO’s Body Management product line, OGX in North America, has become the gold standard in weight management, and it features a terrific support system,” stated Holton Buggs, ORGANO Chief Visionary Officer. “The OGX Body Management product line supports customers in North America through our dedicated interactive Facebook community, X4Ever.”

X4Ever engages OGX Body Management product line users in North America with a daily interactive support network that allows them to share their stories, celebrate milestones, read about each other’s experiences, cheer each other on, enjoy new recipes and health tips, and experience the support that can make a healthier lifestyle plan more enjoyable and successful.

Founded in 2008, ORGANO offers its suite of products through its Independent Distributor network and to consumers through its retail and Preferred Customer programs. The company currently operates in 51 countries on six continents and is privately held.

July 13, 2017

U.S. News

Amway Education Offers Courses for Business Owners

Ada, Michigan-based Amway, the world’s leading direct selling company, is offering an Amway Education “summer school” for entrepreneurs. The “school,” available today through Labor Day, will provide all visitors access to content normally limited to Amway Independent Business Owners (IBOs), including 10 videos that cover topics ranging from how to use social media in their business to how to understand retail margins.

“We are dedicated to helping entrepreneurs learn and acquire the skills they need to be in business for themselves,” said Suzie Fiore, Director of Training and Education at Amway North America. “These courses are a helpful way to hone practical business skills, and the quiz is a resource for entrepreneurs to better understand their unique learning styles and provide direction for leveraging their business ‘persona.’ ”

Amway Education has also released a complementary quiz, What’s Your Learning Personality?, providing a visual, interactive way for existing and aspiring entrepreneurs to better understand their unique learning personalities. The quiz is also designed to encourage business owners to reflect on what personal traits have made them a successful entrepreneur and, ultimately, what their learning “persona” is in order to continue their professional and personal development.

The five personas include:

  • The Seeker: For those with an abundant amount of curiosity and a constant need for new information and business strategies—given in a quick, concise way.
  • The Juggler: Entrepreneurs with little time to devote to any individual task, but who always complete a to-do list on time and in a professional fashion—organization is key!
  • The Cornerstone: Industry veterans with business skills that span the spectrum, and a knack for understanding that the small stuff matters for continued success in an evolving world.
  • The All-Star: For those who are hands-on and committed to seeing projects through, these are the kinds of entrepreneurs that believe sustained success is the only true success.
  • The Coach: Natural leaders looking to not only start their own business, but who have multiple colleagues who can independently spearhead important projects on their behalf—they love to be the sounding board!

Based on which persona is revealed, users will be directed to two relevant courses on Amway Education’s website to continue their learning experience. Users can choose to view the two videos recommended for them, or explore the remaining courses. However, with nearly 100 short videos in total on the Amway Education platform, there are helpful options for entrepreneurs at any stage.

“Continued education is critical to developing entrepreneurial skills to both start a new business and grow an already thriving venture,” said Dr. David B. Audretsch, an advisor to Amway Education, and a professor and Director of the Institute for Development Strategies at the Indiana University School of Public and Environmental Affairs. “The vast library of courses within Amway Education is relevant to those serious about starting a business, and the quiz is a good place to start for those who might just be curious to learn more.”

Amway Education is accessible in the United States, Canada and Dominican Republic, and is available in five languages: Spanish, Mandarin, French, Korean and English.

For more information on Amway Education and to view the courses offered via Summer School for Entrepreneurs, visit www.amway.com/amwayeducation. To take the quiz, visit www.whatsyourlearningtype.com.

July 13, 2017

World News

WFDSA Announces 2016 Global Retail Sales of $182.6 Billion

The World Federation of Direct Selling Associations (WFDSA) recently announced that global direct sales in 2016 increased 1.9 percent, from US $179.2 billion in 2015 to $182.6 billion in 2016, a new global record.

The data gathering was compiled through local DSAs, their member companies, members of the Global Research Subcommittee and outside third-party vendor Nathan Associates.

Highlights from the announcement include:

  • The global growth was driven by increases in all regions. As well, 81 percent of countries around the world showed sales increases.
  • Not only was there year-over-year growth, but the direct selling channel has shown sustained growth with a 3-year compound annual growth rate (CAGR) of 5.2 percent (2013–2016).
  • The story of sustained growth over time can be told in all regions:
  • Asia-Pacific, which accounts for 46 percent of global direct sales, shows a 3-year CAGR of 6.7 percent for the period from 2013 to 2016.

  • The Americas, accounting for 33 percent of global sales, shows a 3-year CAGR of 3.3 percent.

  • Europe, with 20 percent of global sales, has a CAGR of 4.9 percent.

  • And Africa-Middle East, at about 1 percent of global sales, has a CAGR of 6.0 percent.

  • Sales were generated by the world’s 107 million independent representatives, another record. These are the career-minded entrepreneurs who build their own businesses marketing the products/services of a direct selling company, as well as the part-time micro-entrepreneurs who earn extra income by doing so. This salesforce of independent representatives was up 3.1 percent year-over-year.

  • Accounting for 80 percent of global sales are the world’s Top 10 direct selling markets: United States, China, Korea, Germany, Japan, Brazil, Mexico, Malaysia, France and United Kingdom.
  • Direct selling shows success in both advanced and developing economies: Of the Top 10 markets, six are advanced economies and four are developing economies, according to the International Monetary Fund.

July 12, 2017

U.S. News

MONAT Global Wins DSA of Canada Award

MONAT Global, the Doral, Florida-based direct seller, recently announced that it was chosen as the 2017 Journey to Success Award winner by the Direct Sellers Association of Canada, the premier national trade association in Canada for companies that offer entrepreneurial opportunities to independent sellers to market and sell products and services.

The Journey to Success Award is designed to recognize up-and-coming direct selling companies that have dedicated themselves to achieving a high standard of excellence in business operations in less than five years.

“We are thrilled to be selected as this year’s DSA of Canada Journey to Success Award winner,” said Ray Urdaneta, CEO of MONAT Global. “We are gratified to be singled out for our success and hard work. Fostering the right culture, both in the home office and the field, has been integral to our success.”

In October 2014, MONAT Global officially opened its doors in the U.S., and in Canada in October 2015, as the first direct sales company to focus on the multibillion-dollar hair care market. MONAT had approximately 4,000 VIP Preferred Customers in 2015 and now counts more than 100,000. Distributors are called MONAT Market Partners and total more than 50,000 across all 50 states and all 10 Canadian provinces.

One of the fastest-growing companies in both the U.S. and Canada, MONAT is on target to exceed $300 million in annual revenue three years after opening its doors. The company attributes its growth to its mission to help people everywhere enjoy beautiful, healthy, fulfilling lives through exceptional, naturally based products, a fun and rewarding business opportunity, and a culture of family, service and gratitude.

MONAT’s strategies to facilitate continued growth as well as corporate social responsibility programs include gold standard industry practices, such as the deployment of the Market Partner Academy, an online training platform; the MONAT Motor Club, in which qualifiers earn monthly bonuses toward leasing their own white Cadillac; and Gratitude, MONAT’s corporate giving program. Market Partners and corporate employees in the U.S. and Canada have donated hundreds of service hours to the Salvation Army, Habitat for Humanity and Children’s Home Society.

Since October 2016, MONAT has entered a new phase of accelerated, double-digit growth month after month. “I thank God every day for these great hair products and the opportunity this industry provides to change lives,” added President Stuart MacMillan.

MONAT Global is a wholly owned subsidiary of Alcora Corp., whose holdings include L’EUDINE Global and B&R Products.

July 12, 2017

U.S. News

Youngevity Completes Acquisition of Sorvana International

Chula Vista, California-based Youngevity International Inc., a leading omni-direct lifestyle company, recently announced it has closed the acquisition of the assets of Sorvana International. Youngevity originally announced entering into a definitive agreement with Sorvana on June 19.

Sorvana International was formed in November 2016 through the unification of two natural wellness companies, FreeLife and L’dara. FreeLife has been in business for 22 years providing natural wellness products predominantly in the United States, Canada, Australia and the Philippines; L’dara, established in 2013, is known for its award-winning patented skincare products.

“We are very proud of having closed on the acquisition of Sorvana International,” said Steve Wallach, Chairman and CEO of Youngevity. “Sorvana embodies so many of the attributes we look for in an acquisition, ranging from the level of quality products, the amount of distributors and customers, and the geographic footprint the company currently has in the marketplace. We have been seeking to acquire an established company with international distribution and we are very fortunate to have found that opportunity in Sorvana.”

Youngevity President and CFO Dave Briskie added, “Closing on this transaction is a great start to the second half of this very exciting year for Youngevity. The FreeLife and L’dara brands, along with their accompanying distribution, represents both our largest top-line revenue acquisition and the greatest database of customers and distributors we have ever added to Youngevity. Their 22-year history as a successful direct selling company was a very compelling factor in our decision to pursue these brands as a desirable addition to Youngevity. We believe our two established cultures will create many benefits and cross-marketing opportunities for both Youngevity and Sorvana distributors.”

“We couldn’t be happier with this merger,” said Ray Faltinsky, FreeLife and Sorvana CEO and Co-Founder. “Youngevity is a perfect match for our commitment to science-based, natural wellness products that transform lives. It’s part of their DNA, as it is ours. And they have a corporate team that has made this merger seamless. We have gotten off to an incredible start and our field is excited!”

“The response from our Sorvana Wellness Partners has been excellent,” said Kevin Fournier, FreeLife and Sorvana Co-Founder. “They now have thousands of new products to share, new international markets to expand their business, and the support of a talented and dedicated Youngevity corporate team to help them positively impact the lives of so many people in the future. We believe it is the perfect match of company culture and priorities. Our merger with Youngevity just feels so right to so many!”

Youngevity offers products from the six top selling retail categories: health/nutrition, home/family, food/beverage (including coffee), spa/beauty, apparel/jewelry, as well as innovative services. The company was formed in the course of the summer 2011 merger of Youngevity Essential Life Sciences with Javalution® Coffee Company (now part of the company’s food and beverage division). The resulting company became Youngevity International Inc. in July 2013.

July 11, 2017

World News

European Cosmetics and Personal Care Market Slows in 2016

While the European cosmetics and personal care industry grew to 77 billion euros in 2016, the growth was much slower than in recent years, according to figures released by Cosmetics Europe.

Sales increased only 0.8 percent in 2016, compared to 3.1 percent in 2015 and 2.1 percent in 2014. Denmark recorded the greatest recession (-14.3 percent), followed by the United Kingdom (-11.4 percent), which was impacted by both the Brexit vote and the fall of the British pound. France, Italy, Germany, Spain and Norway were among the 18 countries achieving positive growth for the year.

Even with the slow growth, Europe (EU28 plus Norway and Switzerland) remains the leading producer of cosmetic products. The United States ranked second in 2016 with 64 billion euros, followed by China (€41 billion), Brazil (€24 billion), Japan (€22 billion), India (€10 billion) and South Korea (€9 billion).

Sales in product categories were all down from 2015, with the exception of makeup, which achieved 0.8 percent growth. Hair care products saw the greatest decrease, at -2.4 percent; fragrances and perfumes (-2.1 percent), skin care (-0.9 percent) and toiletries (-0.6 percent) were all down.

Skin care (25.7 percent) and toiletries (25.0 percent) remain the biggest product categories, followed by hair care (19.2 percent), fragrances (15.8 percent) and decorative cosmetics (14.3 percent).

Nearly €18 billion worth of cosmetic products were exported in 2016, with France, Germany, Italy and Spain being the largest exporters.

July 11, 2017

U.S. News

Origami Owl Co-Founder Chrissy Weems Named CEO

Chandler, Arizona-based Origami Owl, the custom jewelry direct seller, recently announced that the company’s co-founder, Chrissy Weems, will be stepping in as CEO.

In 2010, Chrissy and her then 14-year-old daughter, Bella Weems-Lambert, started the company as a way for Bella to buy a car once she turned 16. It has since become a global social selling company with over 45,000 independent business entrepreneurs, referred to as Designers.

In the new leadership position, Chrissy has big plans to lead with heart, while continuing to live the mission of Origami Owl: to love, inspire and motivate people of all ages to reach their dreams and empower them to make a difference in the lives of others.

“I’m committed to getting back to the basics of what made this company so successful—people first, creating a ripple effect of good, leading with intention, connecting people in meaningful ways,” Chrissy said. “In addition, we believe the youth are our future, and we are committed to giving them the tools they need to be successful.”

She said that the Origami Owl Owlette Program, which holds a special place in Bella’s heart, will move to the forefront once again. This program provides a unique opportunity for youth, ages 11–17, to work alongside their parent who is an Origami Owl Designer. Bella leads the Origami Owl youth leadership program, which inspires girls to be strong leaders within their peer groups and schools, and teaches them finance, how to run their own businesses, be confident and successful, and realize that, like Bella, they can reach their dreams.

Origami Owl’s flagship line of meaningful jewelry includes signature Living Lockets®, which can be customized with Charms to tell a personal, meaningful story. With the 2016 acquisition of the willa teen skincare company, Origami Owl added a new product category and became a “family of brands.”

Origami Owl is an Inc. Hire Power Award recipient. In 2013, its second year as a direct seller, the company grew by 870 percent, earning it the Direct Selling News Bravo Growth Award Based on Percentage. The company’s philanthropic venture, Force for Good™ donated $1.15 million to charitable causes in 2016. Willing Beauty’s social focus, the Willing Heart Project, will raise money to support single mothers struggling to care for their families.

July 10, 2017

U.S. News

Mannatech Unveils Skincare Line Luminovation to Korean Market

Mannatech Inc., the Coppell, Texas-based health and wellness company, recently unveiled its new skincare line, Luminovation™, to its Korean market at its annual Asia Mannatech Vision Program event in Seoul.

The Luminovation skincare line includes eight innovative new products suitable for all skin types and priced for the mass market. The product line includes a Multi Action Cleansing Balm, Ultra Mild Cleansing Gel, Pure Nature Balancing Toner, Hydra Micro Capsule Serum, Active Hydrating Lotion, Hydra Force Moisturizing Cream, Pure Mild Sun Protector and Miracle Sleeping Mask, all of which are designed to help prevent the signs of aging.

“The Luminovation skincare line is part of the K-beauty wave of advanced beauty and skincare products that are in great demand,” said Mannatech’s CEO and President, Alfredo “Al” Bala. “Mannatech has once again delivered a science-backed, natural solution; this time for improving the health and wellness of the body’s largest organ—the skin.”

Several of Mannatech’s Luminovation products have a pH of 5.5, the skin’s optimal pH, which may keep the skin from fluctuating from oily to dry for a balanced, flawless appearance. The product formulas are mild and not only remove impurities from the skin but also keep it hydrated appropriately. The Luminovation line also includes Mannatech’s exclusive Glyconutrients for improved skin health and wellness.

“We believe we are leading innovation for skin care, and our Associates are very excited to experience what these advanced products can deliver,” said Mannatech’s President of Asia, Patrick Park. “As the skincare innovation capital of the world, we are proud to introduce the Luminovation line that we believe will transform the way our customers view skincare and view themselves as they embrace our natural, effective solutions.”

Luminovation products are made with mild, plant-based ingredients and with science-backed formulas that are exclusive to Mannatech. The skincare line will be available for pre-order in the Korean market in July.

July 10, 2017

U.S. News

Mary Kay Continues Global Expansion with Entry into Peru

Dallas, Texas-based Mary Kay Inc., the multibillion-dollar beauty company founded by industry icon Mary Kay Ash, recently announced the opening of its newest market—Mary Kay Peru. The expansion strengthens Mary Kay’s already solid foundation in Latin America, while providing a flexible business opportunity to Peruvian entrepreneurs.

The opening of Mary Kay Peru follows the company’s recent and successful launch in neighboring Colombia. In 2015, Mary Kay Colombia entered the Latin America region with 150 select beauty products in the color cosmetics, skin care, fragrance and body care categories.

Mary Kay executives from the United States, Argentina, Brazil, Mexico and Colombia have collaborated with Mary Kay Peru in all aspects of this expansion, from market research to tailoring the Mary Kay opportunity for optimal success in the Peruvian marketplace.

The company’s Peru headquarters will be in Lima and cover operations for the entire country. The grand opening is slated for September. The in-country social media and web presence will be announced shortly, as well as a series of demonstrations highlighting the world-renowned company’s beauty and skin care products as well as the business and entrepreneurial opportunities associated with being a Mary Kay Independent Beauty Consultant.

The concept of direct selling has been growing in Peru for the past 40 years. In 2016, World Bank ranked Peru 50th (out of 189 countries) for ease of doing business. Direct foreign investment in the country totaled $7.7 billion (USD) in 2015.

Mary Kay Ash began her eponymous company in 1963. The 54-year-old company is currently in 40 countries and has 3.5 million Independent Beauty Consultants worldwide. In April, Mary Kay Inc. placed No. 5 in the Direct Selling News Global 100 ranking of the top direct selling companies in the world, achieving $3.5 billion in 2016.

July 07, 2017

World News

LR Health Launches New LR ALOE VERA Brand

Ahlen, Westphalia, Germany-based LR Health & Beauty recently launched its new LR ALOE VIA brand, featuring 40 care products for the entire family.

“The demand for our Aloe Vera care products steadily increased over the past years,” said Dr. Thomas Stoffmehl, CEO of LR Health & Beauty. “Currently, they make up about 20 percent of our core business. They are an important part of our partners’ daily business. In order to meet the high demand in the future, we are updating our Aloe Vera portfolio and are expanding our production capacities.”

The development and production of Aloe Vera products is one of the core competencies of LR Health & Beauty. Since 2002, the company has sold more than 55 million liters of Aloe Vera Drinking Gels as well as 70 million Aloe Vera care products. Processing 12,000 tons of aloe vera leaves per year, LR is among the world’s largest manufacturers of aloe vera products.

The company’s Research and Development Department is continuously developing the products further, and 15 years of aloe vera expertise are reflected in the new LR ALOE VIA brand, which covers the areas of care, cleansing and regeneration. The product variety ranges from the main lines Face Care, Body Care, Special Care and Oral Care through to the sub-lines Hair Care, Men Care and Baby Care.

For all Aloe Vera products, LR exclusively uses the pure leaf gel of the plants, which is sourced in Mexico by the company. Controlled manufacturing processes are top priority, from cultivation through processing in Germany. All LR Health & Beauty products comply with strict quality standards. Regular inspections by the International Aloe Science Council (ISAC) ensure high aloe vera quality, from cultivation to processing. All care products are tested for skin tolerability by the independent Dermatest Institute. SGS INSTITUT FRESNIUS tests the Drinking Gels, carries out blind testing and inspects the batches as well as the hygiene conditions.

“The quality of our Aloe Vera products can be recognized by the high content of pure leaf filet,” said Stoffmehl. “In contrast to care series sold in drug stores, our products feature a particularly high aloe vera content—most of the products count between 30 and 60 percent. This content is shown on the packaging and thus also transparently visible for the consumer.”

In addition to the launch of the ALOE VERA VIA brand, LR is building a new production site for Aloe Vera Drinking Gels at its headquarters in Ahlen. Both projects are part of the sustainable growth strategy. The investment in the site amounts to EUR 10 million.

July 07, 2017

U.S. News

Shelly Maguire Named to Zija Product Advisory Council

Lehi, Utah-based Zija International recently announced that it has welcomed skin care and beauty expert Shelly Maguire to its Product Advisory Council.

Maguire brings with her decades of experience in the industry. She has developed and brought to market over 50 anti-aging skin care products since 2001. Her career as a regular presenter on Home Shopping Network Live TV, Live TV Worldwide and infomercials, as well as her accomplishments as a radio show host and published author, have led to her recognition as a skin care industry leader.

“We are thrilled to have Shelly Maguire as a part of the Zija Product Advisory Council,” said Dr. Joshua Plant, COO and Chairman of the Council. “Her unique and accomplished background will provide Zija Members with unprecedented skin care and beauty knowledge, and will help us expand the GenM Personal Care line even further.”

Diagnosed at the age of 12 with Cystic Fibrosis and given a life expectancy of 18 years, Maguire became interested in health and wellness to help combat her disease as well as her own skin challenges. Her passion to help others and interact with them personally led her to the direct sales channel. She has used her own life experiences to inspire, motivate and help people worldwide. In addition, her other entrepreneurial endeavors include founding and running a chain of high-end beauty spas with over 125 employees and creating an accredited continuing education program for massage therapists and estheticians.

Zija has curated an experienced and expert group of professionals to maintain the highest quality of research and development, sourcing, validation and delivery practices for its products. In addition to Plant and Maguire, the Product Advisory Council includes master herbalist Karen Jensen; researcher and clinical pharmacologist Dr. Monica Marcu; and naturopathy and alternative medicine expert Dr. Scott Johnson.

In May, Zija acquired XANGO, the health and wellness company also based in Utah that was the first to market a premium mangosteen beverage to consumers worldwide.

July 07, 2017

U.S. News

Thirty-One Gifts Celebrates National Ice Cream Month with New Print and Products

Thirty-One Gifts, the Columbus, Ohio-based direct seller of handbags and accessories, is celebrating National Ice Cream Month with a newly released ice cream print available on several products, as well as ice cream bowls and special ice cream cone and popsicle personalization. The items will be available in July only.

The new ice cream print, Sweet Sprinkles, is offered in three products—the best-selling Large Utility Tote, the Double Duty Caddy and the Oh-Snap Bin. The ice cream cone and popsicle embroidery may be put on most products, along with text such as a name, phrase or meaningful message for gift-giving. Thirty-One Gifts is offering products with the new Sweet Sprinkles print, along with the Get the Scoop Bowl Set, as both customer and hostess specials in July.

By purchasing any of the new ice cream prints or products, customers will be supporting nonprofit organizations. Thirty-One Gives, the company’s philanthropic initiative, will donate about 5 percent of net sales to nonprofit organizations that serve and support girls, women and families. To-date, Thirty-One Gifts has donated more than $100 million in product and cash to nonprofit organizations.

July was proclaimed as National Ice Cream Month in 1984 by President Ronald Reagan, who also established the third Sunday in July as National Ice Cream Day, observed this year on July 16. He recognized ice cream as a fun and nutritious food that is enjoyed by over 90 percent of the nation’s population.

Thirty-One is one of the world’s largest direct selling organizations and offers totes and purses, wallets, home organization solutions and décor, thermal-insulated bags, jewelry and more. Products are sold at home parties and online.

July 06, 2017

U.S. News

Youngevity Debuts New Addition to ProLine Collection

Chula Vista, California-based Youngevity International Inc., a leading omni-direct lifestyle company, is debuting Pürmeric™, the latest addition to its ProLine™ product collection.

Pürmeric contains 95 percent curcuminoids from certified organic turmeric root, delivering a high anti-oxidant capacity.

“We are proud to offer a powerful, organically sourced product that delivers the reported anti-oxidant benefits of curcumin,” said Steve Wallach, CEO and Co-Founder of Youngevity. “Pürmeric is our newest addition to the Youngevity Performance product line, which addresses exercise performance-based nutritional needs that supports athletes and weekend warriors alike with nutritional benefits tailored to their pursuit of fitness.”

Used for centuries in Ayurvedic and Chinese medicine, turmeric has been known to be an anti-inflammatory agent. According to Memorial Sloan Kettering Cancer Center, there are ongoing clinical trials to substantiate Eastern Medicine use of turmeric, and laboratory and animal studies do suggest that turmeric can reduce inflammation in animals. Anti-oxidants have become a recognized element of good nutrition, helping the body to combat free radicals by safely neutralizing them and preventing and reducing the damage they can cause to cells.

“Pürmeric delivers yet another example of our commitment to offering quality and science when we create a nutritional product or supplement,” said Dave Briskie, President and CFO of Youngevity. “…We are in the business of offering robust product entries that can compete strongly across the supplement spectrum.”

Youngevity was founded upon the pioneering principles of Dr. Joel Wallach. The ProLine collection of products was designed to provide specific systems of the body with advanced, targeted nutritional support.

July 06, 2017

World News

Steeped Tea Appoints New President

Photo: Melanie Hayden Sparks, Steeped Tea President


Ancaster, Ontario, Canada-based Steeped Tea Inc., the direct seller of loose-leaf tea, food items and accessories, recently announced the appointment of Melanie Hayden Sparks as President.

Sparks’ appointment marks a strategic move by Steeped Tea founders Tonia and Hatem Jahshan, and the executive team, to engage a visionary leader with a wealth of business knowledge and acumen to take the company to the next level. The move comes after a series of strategic expansion plans the company has implemented over the past few months to shift the company and accelerate its growth.

“Steeped Tea has accomplished so much in such a short time, and we are thrilled Melanie will lead our continued growth well into the future,” said CEO Hatem Jahshan.

Born and raised in Calgary, Sparks brings over 30 years of direct selling experience to the position and a track record for producing positive results. Her leadership experience includes appointments as President of a candle direct seller’s business in Canada and International Vice President of Sales and Marketing at Watkins Incorporated, as well as several other leadership roles with U.S. and Canadian companies.

“Her vast experience building high-performing teams and engaging Independent Consultants is what we need to continue the momentum in Canada and ignite our U.S. expansion,” said Tonia Jahshan, who serves as Chair of the Board.

Steeped Tea was founded in 2006 and is a five-time Profit 500 fastest growing company. A contributing force to the company’s success was its partnership in 2012 with David Chilton and Jim Treliving, investors from the Canadian Broadcasting Corp. show, Dragon’s Den, the Canadian version of Shark Tank. “Melanie has an impressive track record and reinforces our commitment to being a leader in the direct selling industry,” said Treliving. “These are exciting times for Steeped Tea.”

July 05, 2017

World News

Oriflame Chooses Nepa for Global Brand Research

Schaffhausen, Switzerland-based Oriflame recently selected Sweden-based research company Nepa to help the cosmetics giant continuously track and explain trends, as well as the wills and actions of its customers and competitors, in 10 countries.

“We set target to countries on performances according to our global strategic directions,” said Frédérique Jacqmart, ‎Consumer Insight Manager at Oriflame. “Nepa will help us to understand our brand position in detail and how to find the formula for market success. We chose Nepa as our partner because of their experience of global projects and innovative solutions.”

Nepa will conduct brand tracking for Oriflame in Mexico, Colombia, Indonesia, India, China, Turkey, Portugal, Poland, Morocco and Russia—countries with widely varying market conditions. Research will be conducted among both end-consumers and Oriflame sales consultants to gain insights about Oriflame brand position and the development over time.

“We are proud to be the supplier for this strategic project,” said Johan Rinaldo, Commercial Director at Nepa. “Oriflame is a strong brand, and we feel confident that our collaboration will help Oriflame gain actionable insights to improve the brand position even further.”

In April, Oriflame placed No. 15 on the Direct Selling News Global 100 ranking of the top direct selling companies in the world. The company achieved $1.4 billion in 2016.

Nepa was founded in 2006 to help companies become more customer oriented by bringing the voice of the consumer into business development and daily decision-making. It combines consumer feedback data with actual behavior data to transform traditional insights into financially quantifiable actions. The company has more than 350 clients in over 50 countries, with offices in Stockholm, Helsinki, Oslo, Copenhagen, London, New York and Mumbai.

July 05, 2017

World News

L’Oreal, Natura Sign Contract for Sale of The Body Shop

The exclusive talks between Sao Paolo, Brazil-based direct seller Natura Cosmeticos SA and L’Oréal SA for the sale of The Body Shop concluded last week with a signed contract between the two parties. The deal is reported to be for $1.1 billion (1 billion euros).

The French cosmetics giant bought The Body Shop more than a decade ago in a deal that valued it at 652 million pounds ($833 million). The lotions and soaps retailer, founded by British entrepreneur Anita Roddick in 1976, earned the reputation as an eco-friendly company. However, competition from other brands offering similar products based on natural ingredients with no animal testing caused the company’s operating profit to drop 38 percent to 33.8 million euros last year. L’Oréal confirmed in February that it was considering selling the brand.

The Body Shop has more than 3,000 stores in 66 countries. The proposed sale is subject to clearance by anti-trust authorities, notably in Brazil and in the United States, and expected to close during 2017.

Natura has also earned a reputation as an eco-friendly company. Founded in São Paulo in 1969 by Luiz Seabra, it is one of Brazil’s most valuable brands. In acquiring The Body Shop, Natura bolsters its international expansion. In 2013 the company purchased Australia’s Aesop for $70 million. Aesop has 261 locations in 20 countries.

Natura placed No. 9 in Direct Selling NewsGlobal 100 ranking, which recognizes the top direct selling companies in the world. The cosmetics giant had earnings of $2.26 billion for 2016.

July 01, 2017

News in Brief

News in Brief, July 2017


Mary Kay: 25 Years of Celebrating Great Minds

Mary Kay Inc., in partnership with the Academy of Marketing Science (AMS), is celebrating 25 years of supporting great minds through the AMS Mary Kay Doctoral Dissertation Award.

Each year, the iconic Dallas, Texas-based beauty company has presented the AMS Mary Kay Doctoral Dissertation Award to doctoral candidates in marketing who have defended their dissertation proposals. At this year’s AMS Annual Conference, held at Hotel del Coronado in Coronado Island, California, Anita Pansari from Georgia State University was awarded the AMS Mary Kay Doctoral Dissertation Award. Jeeweon Brianna Choi from Michigan State University was awarded the AMS Mary Kay Doctoral Dissertation Proposal Award.

“By providing mentorship, networking opportunities with our top executives and monetary awards, we hope to inspire great minds in the academic world,” said Kerry Tassopoulos, Mary Kay Vice President of Public Affairs.

The Academy of Marketing Science is a non-profit, international, scholarly, professional organization.


4 Direct Sellers Make Forbes’ List of Best Midsize Employers

Four direct selling companies—doTERRA, New Avon, Herbalife and Nu Skin Enterprises—made Forbes’ 2017 list of the Best Midsize Employers in America. The annual list, conducted with the help of statistics database and consumer research firm Statista, recognizes companies operating in the U.S. with between 1,000 and 5,000 workers that are the best at making their employees feel happy, inspired and well-compensated.

Pleasant Grove, Utah-based doTERRA, which has 1,650 employees, placed highest in the list among direct sellers at No. 71. New Avon, with 2,100 employees, was No. 246; Herbalife, with 2,300 employees, was No. 263; and Nu Skin, with 4,800 employees, was No. 273.

Statista surveyed 30,000 employees anonymously through several online panels. According to the survey results, atmosphere at work and pride in service or products the company provided were the most profound factors that drove employer recommendations of their companies to others (25percent), followed by salary (16 percent).

The company placing No. 1 on the 2017 Best Midsize Employers List is Lush, a retail cosmetics and personal care products company headquartered in Poole, U.K.


New LegalShield Law Index Data Helps Reveal Economic Trends

LegalShield, a provider of legal services, recently launched the LegalShield Law Index, which provides a forward-looking snapshot of the economic and financial status of U.S. households and small businesses.

The Index is made up of five indices, including the LegalShield Consumer Financial Stress Index, LegalShield Housing Activity Index, LegalShield Bankruptcy Index, LegalShield Foreclosure Index and the LegalShield Real Estate Index.

“The LegalShield Law Index is generated from actual consumer and business demand for various legal services provided by our closed panel of dedicated law firms covering all 50 states,” said James Rosseau, LegalShield’s Chief Commercial Officer. “Our index predicts economic activity that represents more than 70 percent of the Gross Domestic Product of the United States.”

A few takeaways from the first public release in May:

  • Consumer confidence may continue to ease in the months ahead, but will likely remain strong by historical standards.
  • Housing starts, which have risen at a stubbornly slow pace since 2012 and remain well below pre-recession levels, should continue to improve slowly in the months ahead.
  • Bankruptcy filings should remain subdued in the near term. However, elevated levels of household debt are worth keeping an eye on, as they could lead to upward pressure on bankruptcy filings in the future.
  • Foreclosures should remain subdued in the short term, but may begin to rise in the second half of the year.
  • Existing home sales should continue to improve slowly in the months ahead. LegalShield will release the Index monthly.

USANA Makes Global Impact During Inaugural World Service Week

The USANA True Health Foundation (THF) celebrated its first-ever World Service Week during the week of May 20–27. Throughout the week, USANA Associates, employees and their families, as well as the general public, volunteered thousands of hours of service.

“We are thrilled at the response we received from our entire USANA family throughout the globe during our very first World Service Week,” said Brian Paul, THF’s Executive Director of Communications. “The impact we were able to make in just seven short days of service is truly remarkable.”

During World Service Week, THF traveled with nearly 20 USANA Associates to Uganda, where they spent six days serving those living in villages and inner-cities near the Kampala region. While in Uganda, participants painted a local school, volunteered at the Wentz Medical Center as well as donated food and other service and aid to those in need.

USANA employees around the globe served their local communities during World Service Week, including: collecting food and serving meals to those in need; donating blankets to hospitals; collecting toys, clothes and books for children; providing food and hygiene products to nursing homes; caring for animals in need of adoption; participating in shore clean-ups and donating blood to the Red Cross.

The USANA True Health Foundation is in 20 countries around the world. Since 2012, THF has donated $12.1 million and 15.1 million meals.


Direct Selling Expansions in the Second Quarter:

NEW FACILITIES

  • Amway North America California Business Center
  • LR Health & Beauty, ground-breaking, aloe vera production site, Ahlen, Germany
  • Young Living, ground-breaking, New Headquarters in Lehi, Utah

NEW MARKETS

  • Isagenix International, U.K.
  • Nerium International, New Zealand
  • WorldVentures, Amsterdam
  • Park Lane Jewelry, Puerto Rico

July 01, 2017

Publisher's Note

Looking to the Future

by Lauren Lawley Head


During the past few months, the team at Direct Selling News has been examining the trends shaping the future of direct selling. You saw the first phase of that work in last month’s edition, which unveiled the 2017 Global 100 list of the largest direct selling companies in the world and analyzed the results of that research project. In this month’s edition, we continue the effort with writer Courtney Roush’s cover story on the consumer trends impacting the channel, as well as take you inside the U.S. Direct Selling Association’s annual meeting for a look at the leadership changes, policy initiatives and research work happening there.

Technology, of course, is a key driver of change on all fronts. It is changing the way all of us communicate, conduct business, make purchases and even relate to one another. Savvy direct selling companies are investing heavily in understanding these changes and adapting their business model to keep pace. LegalShield CEO Jeff Bell offered this call to action in his interview with Roush: “We must put technology at the center of everything we do. It must be in our presentation, our client service, and our business management. We must do more for our distributors than Uber does for their drivers.” 

Innovation extends beyond the implementation of new technology, and you will see this in action in all three of the feature stories on direct selling companies in this month’s edition. The Company Spotlight on Viridian International beginning on Page 38, for example, explores how a new corporate structure can reshape a brand. A year after its acquisition, the new team at Viridian is focused on expanding the salesforce, product line and geographic reach. At California-based Youngevity, featured in the Company Focus story beginning on Page 50, a strategy of acquiring smaller companies has been driving a product line evolution that now spans six retail categories. And at WineShop At Home, featured in a story beginning on Page 64, executives have been focused on transforming the business while remaining committed to the traditional strengths of direct selling: personal touch. In this case, the personal connection between the corporate office and the sales field has been critical to success, says President and CEO Jane Creed, because it fostered trust and belief in the brand and the team. “We were ready to walk through the fire and make it happen, and that’s what we did.” 

Where will direct selling take you and your company next? We hope that the stories in this edition provide inspiration and practical tips to help you shape a positive future.

All the best,
Lauren

July 01, 2017

Working Smart

Why Recognition Is Your Business

by Jay Leisner


Click here to order the July 2017 issue in which this article appeared or click here to download it to your mobile device.


Attracting and retaining independent consultants is a primary goal for any company owner or executive in this channel. And since direct selling consultants are not employees but independent contractors who are operating their own businesses, it sometimes takes multiple ways to encourage them to “stay in the game.”

Money paid through a multilevel compensation plan will help keep consultants active, but by itself it is simply not enough to keep them engaged. Consultants are volunteers, so it helps to get to know them and to recognize their efforts. Remember that a little goes a long way.

Connecting with consultants through encouragement accomplishes several objectives at once. It recognizes their achievements with something beyond money, and it rewards behaviors that we wish to become repetitive. It also can increase activity, decrease attrition, and help build a culture of personal development.

If consultants feel like they are part of something greater than themselves, they can become more committed to your company and stay in the business longer.

Field compensation is most likely already your largest expense. In fact, the average direct selling company spends 30-50 percent of its sales on compensation plan rewards. We have also found that direct selling companies spend only 3 to 8 percent of sales on recognition, which typically includes awards, contests, incentives, and national and regional conferences. Take this opportunity to get the most out of your recognition budget, and endeavor to spend all you’ve budgeted with the goal to maximize the impact of your spending. You’ll be glad you did.

The Experience of Recognition

For every 100 people who enroll to participate in your income opportunity, how many do you wish to experience company recognition? The types of recognition you should offer your new consultants depends on your number.

If you’re not sure, I recommend your goal be at least 50 percent of your consultants receive recognition. And what exactly do you recognize? The short answer is that anything the achiever believes is worthy of acknowledgement can generate excitement and further engage that consultant. 

We often recommend up to 50 measurements for recognition to direct selling companies.
Here are the top 15. Recognize new consultants when they:

  1. Attain a specific career personal sales target
  2. Achieve the first Fast Start goal
  3. Achieve the second Fast Start goal
  4. Achieve the third Fast Start goal
  5. Achieve the fourth Fast Start goal
  6. Beat their previous personal best in monthly personal sales
  7. Beat their previous personal best in monthly group sales
  8. Have an anniversary
  9. Have a birthday
  10. Recruit their first consultant
  11. Recruit their second consultant
  12. Recruit their third consultant
  13. Promote to new title or rank in the compensation plan
  14. Promote to a specific new title or rank faster than anyone else previously
  15. Recruit a specific number of consultants over their career

Contests versus Incentives

There are important differences between contests and incentives. Contests encourage competition and discourage collaboration, because only a select few will win. With a contest, you don’t know that if you do X, you will get Y.

For this reason, they can be problematic. You don’t know what you have to do to win because there are no specific goals.  Also, there is no way to measure how close you are to winning, and you cannot be certain if you won until the contest is over. Further, your performance could be excellent, but because contests are competitions, you could still “lose,” which actually can create negative feelings for top performers.

On the other hand, contests do have their good points. The company goes into a contest knowing how many winners there will be and therefore the total cost in advance.

The company knows how many hotel rooms to book and how many employees need to attend based on the known number of winners, so it can plan now for their absence from daily work.

However, whenever a direct selling company runs a contest, there will be a group of top performers who did not make the cut. And since they are volunteers and not employees, failing to reward their performances may not be the best option. 

Incentives, on the other hand, are programs where all of the performers who achieve specific targets can win. With an incentive, you know if you do X, you will get Y.

I think many companies with multilevel compensation plans would benefit from plans that are designed to motivate and reward specific behaviors. We have found rewarding the following 12 behaviors can motivate consultants to produce even better results in the future: 

  1. Personally purchasing the products or services
  2. Selling to customers (nonparticipants of the income opportunity)
  3. Introducing the income opportunity to others (sponsoring/recruiting)
  4. Building a team
  5. Training, supporting and nurturing others
  6. Becoming a leader
  7. Personally developing leaders
  8. Helping other leaders to develop leaders
  9. Meeting or exceeding minimum activity requirements
  10. Being promoted to a higher title or rank
  11. Meeting or exceeding title maintenance requirements
  12. Staying active and engaged in the business (retention)

For best results, each contest or incentive should be designed with consideration of several, but not all, of these behaviors. While great compensation plans are generally complex, recognition programs need to be less complicated. 

How to Design a Contest or Incentive

It helps to think strategically, so you know the cost of your program, and are able to predict the likely number of participants. Begin by reviewing the 12 salesforce behaviors. Then, select no more than four specific behaviors to be encouraged.

Determine the achievements to be rewarded, and identify how you will reward each one of them. Consider weighting if multiple achievements are to be measured.

Evaluate past periods to see how many winners there would have been, who would have won, and what would the cost of the rewards have been. If there are too few winners, reduce requirements to generate a new data set based on history. If there are too many winners, increase requirements to generate a new data set based on history.

Review the new data sets and adjust requirements until you have a data set with the desired number of winners and costs for rewards. Adjust requirements up a bit, assuming that achievers will do more to get the new rewards.

Consider including two sets of requirements, one for new consultants (who are in the business less than one year when the contest or incentive begins) and another for those who’ve been in the business longer.

Design your programs in groups, not just one as one island program, so that the activities encouraged by one program can help feed the next one.

Prepare IT data collection and redemption tracking requirements. Determine the exact data to be shared with the company and the consultants.

Monitor the results and compare them to other periods of time using your Key Operating Indicators.

Don’t be afraid to introduce new elements if the old ones aren’t working, or if you believe something different will be better.

Is Recognition a Crutch?

For many years, I have observed that companies with compensation plan deficiencies can often depend heavily on contests or incentives for recruiting. As a result, in months where there is no recruiting incentive or recruiting contest, recruiting can be significantly diminished or completely absent.

If this is the case, before you ramp up your recognition program or contests, consider whether or not your compensation plan alone is adequately rewarding the recruiting behavior.

Once you establish that, you can move on to evaluating, and possibly cleaning up, your recognition program. If you’ve made a mistake in the program, don’t worry; everything is fixable.

Maybe your company has an incomplete recognition strategy or does not set participation goals for each recognition program. Or, it does not spend enough money on recognition, has too few zero- or low-cost rewards, does not publish achievements, offers too many contests or too few incentives. That’s OK, too. Even if a program uses lucky draw rewards, does not offer leadership meetings or leadership trips as rewards and fails to report progress toward rewards to participants, you have the power to correct all of those mistakes.

Why Recognition Is So Important

While your expenditures on recognition are probably small compared to what you pay through your compensation plan, always remember that recognition is equally important to attract and retain your independent consultants.

All recognition programs should be designed to fit your business model and compensation plan, so don’t “set it and forget it.” Just as compensation plans need to be refreshed from time to time, so do your recognition programs.


Jay LeisnerJay Leisner is President of Sylvina Consulting with 30 years of compensation plan and direct selling expertise, having worked with companies across the globe.

July 01, 2017

Executive Announcements

Executive Announcements, July 2017


Richard P. Goudis Transitions to Herbalife CEO

Los Angeles-based Herbalife Nutrition announced the official transition of Richard P. Goudis as the new CEO, in succession to Michael O. Johnson, who will now assume the position of Executive Chairman of the company.

With his passions grounded in innovation, education and training, Goudis will set the strategy for Herbalife, overseeing all aspects of the company’s growth initiatives. 

“This is an exciting time to be leading such a dynamic team of dedicated professionals who every day position our company for further innovation and growth,” said Goudis. 

Goudis, a recognized leader in the nutrition industry, has more than 18 years of experience in the field of nutrition with 13 years as part of the Herbalife management team, serving as COO since 2010 and CFO from 2004 to 2009. During his tenure as COO, the company expanded its Herbalife Innovation and Manufacturing (H.I.M.) facilities to five locations around the world. Under his management, Herbalife also grew its employee base to more than 8,000 people worldwide.

Newly appointed Executive Chairman Johnson draws from his extensive working history with Goudis to say, “The Board and I could not have picked a more qualified candidate to lead this company forward. We look forward to supporting him as he leads Herbalife Nutrition well into
the future.”


USANA Announces New Appointments and Roles

USANA, the Salt Lake City, Utah-based wellness company, recently announced new appointments and roles for executive positions to strengthen the company’s leadership team.

CEO Kevin Guest has been appointed to the company’s board of directors. His association with USANA began 25 years ago when his media company, FMG Productions, was hired to produce marketing materials. After Guest was hired as Executive Director of Media and Events at USANA, more promotions followed, culminating with him becoming Co-CEO with then-CEO Dave Wentz in 2015. In November 2016, he became sole CEO when Wentz stepped down to focus on his family and to become Chairman of the Direct Selling Education Foundation.

“Being a member of both the board of directors and management team at USANA allows me the unique opportunity to create a closer tie between the two—which can only help in building a better USANA,” said Guest.

Doug Hekking, former Executive Vice President of Finance, is now Chief Financial Officer. This will be the second time that Hekking has assumed the role in the company, having previously served as CFO between May 2011 and December 2012.

Paul Jones, who has served as both Chief Financial Officer and Chief Leadership Development Officer, will now concentrate exclusively on his role as the latter, where he will lead the human resources and organizational development of the company worldwide. 


Fernandez, Thompson Named to Avon’s Leadership Team

London-based Avon Products Inc., the company for women, has appointed Miguel Fernandez as Global President, with responsibility for commercial business operations, as well as James Thompson as Senior Vice President, General Counsel and Chief Ethics and Compliance Officer, effective in August.

Fernandez is a seasoned executive with more than 20 years of operating experience, including significant international experience and a proven track record in the direct selling channel. He joins Avon following nearly 10 years at a leading direct seller of health and wellness products, where he served as Executive Vice President and Managing Director for the Americas and Worldwide Member Operations. 

Prior to that, Fernandez was Chief Financial Officer at OCC Mundial and Business Controller for Microsoft in Mexico. His earlier career included roles in investment banking at JPMorgan Chase in New York and financial management at Procter & Gamble.

Thompson previously served as Executive Vice President, General Counsel and Secretary to Chiquita Brands International Inc. for nine years. He is an experienced general counsel with significant global experience, including handling a range of highly complex operational, governance, regulatory and transactional matters.

Prior to Chiquita, Thompson was Group Vice President and General Counsel at McLeod USA, a publicly traded telecommunications company.
Both men will be based at Avon’s headquarters in London.


Youngevity Adds Kevin Allodi and Paul Sallwasser to Its Board of Directors

In continued preparation for its listing on the NASDAQ Capital Market, Chula Vista, California-based Youngevity International has increased the breadth of experience in its Board of Directors by adding Kevin Allodi and Paul Sallwasser. Both new board members’ insights from careers with exchange-traded publicly held companies are expected to be vital as Youngevity prepares for its uplisting.

Their appointments increase the number of independent directors serving on the board to four members, who now represent a majority of the Board. 

Allodi is a veteran of the communications and mobile software industry. He served as President/Corporate Vice President of Internet billing & customer management startup Portal Software Inc., aiding in its successful IPO in 1999. Allodi is currently CEO and Co-Founder of Philo Broadcasting, a media holding company.

Sallwasser, a certified CPA, joined the audit staff of Ernst & Young LLP in 1976 and remained with Ernst & Young LLP for 38 years. He served a broad range of clients primarily in the healthcare and biotechnology industries, of which a significant number were SEC registrants. Sallwasser served in the national office as a member of the Quality and Regulatory Matters Group working with regulators and the Public Company Accounting Oversight Board (PCAOB).

Sallwasser also qualifies as an “audit committee financial expert,” as defined by the rules of the SEC. 


MONAT Global Welcomes New Executives

 
MONAT Global, the Doral, Florida-based direct seller, has hired industry veteran Janet Cronstedt to be the hair care company’s Vice President of Sales, U.S. Cronstedt previously held key positions in direct selling, including Vice President of Sales, Chief Growth Officer and Senior Vice President of Sales and Marketing. 

“We are thrilled to have Janet with us,” said Stuart MacMillan, President of MONAT. “Her vast experience in building high-performing teams and engaging customers is exactly the leadership we need as MONAT continues to expand and grow across the continent.”

Separately, MONAT also brought on board Thomas J. Hoolihan to serve as Senior Vice President and Chief Legal Officer. Hoolihan has served as General Counsel and held senior management positions at public and private companies across a range of industries, and has been advising in the direct selling industry since 2004. He specializes in helping entrepreneurial companies achieve sustainable growth and profitability. “With our field now adequately covered and premier legal counsel on board, MONAT is well primed for continued growth and expansion,” MacMillan said.


SeneGence International Appoints New President

Irvine, California-based SeneGence International has named Philippe Guerreau President.

Guerreau has been a member of the SeneGence Supervisory Board for more than four years. He was previously a Vice President at L’Oréal USA, where he oversaw finance for North American manufacturing operations as well as plant expansions and manufacturing cost optimization projects. 

“We are so excited to have Philippe lead our executive team,” said SeneGence Founder and CEO Joni Rogers-Kante. “Philippe brings expansive industry knowledge to SeneGence. With our booming growth, he will play a key role in guiding the company into what is sure to be a bright future.”

Guerreau previously held CFO, President and CEO roles in various industries, and has been part of forward-thinking industrial solutions that anticipate client needs in terms of profitability, safety and compliance with environmental standards. At Senegence, he will utilize his skills in organizational development, financial planning and analysis, change management, and process improvement to develop and implement best practices in the company.


ForeverGreen Promotes Rick Redford to CEO

Lindon, Utah-based ForeverGreen Worldwide Corp. has appointed Rick Redford as CEO, as part of its restructuring, first announced on March 2. 

“Finding the right person has been a timely and thorough process for the company,” said Ron Williams, who resigned as President and CEO but will remain a member of the Board of Directors. “Mr. Redford has the right experience and knowledge to do an outstanding job as the company’s new CEO.” 

Redford, who has over 20 years of experience in the direct selling channel, has been involved with the company since the start, initially for five years and most recently when he came back last year as COO. 

Williams will continue with ForeverGreen in a consulting role, working directly with leadership in the field.

July 01, 2017

Company Focus

Youngevity: Sharing the Notion of Betterment

by J.M. Emmert


Click here to order the July 2017 issue in which this article appeared or click here to download it to your mobile device.


YOUNGEVITY

Founded: 1997
Headquarters: Chula Vista, California
Top Executives: Steve Wallach, CEO; Michelle Wallach, COO; Dave Briskie, President and CFO
2016 Revenue: $163 million
Global 100 ranking: No. 76
Products: Health/nutrition, home/family, food/beverage, spa/beauty, apparel/jewelry, innovative services


nameSteve Wallach
nameMichelle Wallach
nameDave Briskie

Twenty years of study on trace minerals had revealed a basic truth to biomedical research pioneer Dr. Joel Wallach: A deficiency in nutrients could, and would over time, greatly affect one’s physical well-being. With that knowledge in hand, the scientist identified a combination of 90 essential minerals, vitamins, amino acids and fatty acids that would enable a person to not only survive, but also to function fully and thereby attain a high quality of life.

However, in 1997, Dr. Wallach’s groundbreaking research was falling on deaf ears in the world of academia. Discouraged but driven by the desire to help others, he turned to an unlikely vehicle to share the health benefits of micronutrients: direct sales. Through the powerful distribution model of the direct selling channel, he could change the lives of people around the globe for the better. 

And so, that same year, Dr. Wallach founded American Longevity, the predecessor of Youngevity International, with his wife, Dr. Ma Lan, his son Steve and his wife, Michelle. The company’s first products were vitamin and mineral supplements. “That’s where it started,” said Steve Wallach, Youngevity’s CEO. “What it has culminated into over 20 years, and what ties into our now diverse product range, is that it’s not just about physical health and wellness but also emotional health and wellness.”


What it has culminated into over 20 years, and what ties into our now diverse product range, is it’s not just about physical health and wellness but also emotional health and wellness.
- Steve Wallach, Co-Founder and CEO, Youngevity


That is to say that, although Youngevity remains firmly rooted in the pioneering principles of Dr. Wallach, much has changed for the Chula Vista, California-based company in recent years. The message of 90 essential nutrients is still a key component of the company’s success, and its health and wellness products, including the popular 90 for Life, are still among its best-selling products. However, while that message drove the business forward for the first 20 years, the company’s present acquisition strategy is allowing it to evolve into a better version of itself, offering a full spectrum of products and services so that every interaction with customers and distributors helps to further improve their lives.

Today, Youngevity is a leading omni-direct lifestyle company that offers products from six retail categories, and is a vertically integrated producer of gourmet coffees. The omni-direct approach, according to Wallach, means selling a variety of products through any number of channels—social selling, multi-level marketing, e-commerce. Wall Street analysts call it a platform company because its cloud-based infrastructure and web portal allow it to accelerate growth domestically and globally as well as efficiently integrate acquisitions. It’s a model that Youngevity executives feel sets up the company to be agents of change—with their goal to pioneer the next generation of direct selling.


Youngevity distributors enjoy the beach during an incentive trip to Punta Cana, Dominican Republic.

Acquisition Strategy

When Youngevity was founded, one of the Wallachs’ objectives was to create a legacy company, one that would last for generations. They knew that to accomplish that goal, they would need to have a range of products that would be adaptable over time. While the company initially expanded quickly through the additions of beauty and personal-care products, acquisitions over the past few years have pushed the number of product offerings to more than 3,000. Those offerings span six retail categories: health/nutrition, home/family, food/beverage (including coffee), spa/beauty, apparel/jewelry and small business services. 

“If you look at any company that is significant, whether outside direct sales or inside it, there’s been acquisitions in their history, whether product lines or companies they’ve acquired,” said Wallach. “We’ve just done it more and more recently. It’s exciting to all of us because other companies are trying it, and because they are now understanding the synergistic benefits of this concept.”


Wall Street analysts call Youngevity a platform company because its cloud-based infrastructure and web portal allow it to accelerate growth domestically and globally as well as efficiently integrate acquisitions.


Wallach says executives look for companies that have a possible interest in selling. Then Youngevity’s decision to purchase comes down to: they look for great people (on the corporate side as well as in the field); they look for great areas of distributor activity where Youngevity has just entered or wants to enter; and they look at products. Above these, culture must always be a good fit.

In the past year, the company has made several acquisitions with an eye toward scalable growth. In August 2016, it acquired Renew Interests, the owner of SOZO Global and Integris, to expand both the company’s salesforce and its product offerings across nutrition, coffee, weight loss, energy and skin care; and Nature’s Pearl Corp., the maker of Muscadine grape seed that gives antioxidant health benefits, to bolster its health and wellness line. At the time of its announced acquisition, Nature’s Pearl had a database of 17,000 distributors and 45,000 customers across the U.S. and international markets. The company was on track to generage $9 million in annual revenue. With the purchase, Wallach said Youngevity became the only direct selling company to offer Muscadine personal-care products.

TextThrough Youngevity’s Be the Change Foundation, each month distributors, employees and customers participate in a Random Act of Kindness Day helping someone in need.

Its March 2017 acquisition of BellaVita, which offers food and beauty products inspired by the Mediterranean diet and lifestyle, has helped to raise the company’s profile in the Asia-Pacific region where BellaVita had offices in seven countries with established customers and distributors. That same month, Youngevity added RicoLife, a California direct seller of nutritious teas and coffees, cleanses, and energy and slimming supplements (purple tea developed in Kenya). RicoLife already had a strong following among millennials in the U.S., Mexico and Latin America, and its acquisition will help to fuel Youngevity’s millennial business strategy.

Technology Investment

The ability to quickly add other companies into the Youngevity family of products is due to a strong focus on infrastructure. Developing the infrastructure to support its acquisition strategy had meant a huge financial investment; however, the company’s web portal and cloud-based technology has allowed Youngevity to accelerate growth domestically and globally, efficiently integrate acquisitions, and simplify its marketplace for consumers and distributors.

“One of the things we had to do was build this portal so when we have an acquisition, instead of it taking us six months to figure out how to integrate the legacy system, we reduce that time to six days so that they can live on our site,” said President and CFO Dave Briskie.


[Growth through acquisitions is] exciting to all of us because other companies are trying it, and because they are now understanding the synergistic benefits of this concept.
- Steve Wallach


What’s behind the portal is a huge infrastructure comprised of an API services layer that allows Youngevity to bring other software into its system and deploy them quickly and seamlessly. Responsive file servers stationed in every market ensure there is no latency period during consumer or distributor interactions.

Without the portal, any acquisition would essentially stay a separate company for an indeterminate amount of time. Additionally, it would impede the company’s strategy for cross-selling and cross-marketing as well as Youngevity’s goal to be a “swap where you shop” one-stop destination.

“The technology platforms allow us to take a complex product line and make it simple for the consumer,” said Briskie. “Think Amazon. Amazon has mastered the complexity to make it simple for the consumer in a way that is enjoyable. Internally, to keep bringing on product lines and making them available around the world, we had to do something similar. We are on the verge of releasing this technology platform that takes a complex-to-diverse product range and makes it very understandable to the newest person that joins as either a customer or distributor. It’s been a huge investment, specifically to support the ongoing initiatives around our acquisition strategy and make sense out of it.”

Text

International Expansion

In addition to recognizing the need for a range of products, the Wallachs understood the importance of international expansion. In studying companies that have achieved what they desired, they realized that between 65 and 75 percent of the sales volume of those companies tended to be from international growth. To truly deliver on the residual income promise of network marketing, the Youngevity team felt it had to expand into international markets as well.

The company has done this by successfully establishing beachheads in markets and developing an essential group of products to introduce to consumers. Singapore was the point of entry into the Asian market, which now includes the Philippines, New Zealand, Taiwan, Hong Kong, Indonesia and Malaysia. Guadalajara, Mexico, was the entry point into Latin America, where later this year the company will open in Colombia. And Russia was the starting point for Europe, which currently includes Kazakhstan and will, according to Wallach, add additional markets in the future. Youngevity also has an office in Canada.

While it has been a yeoman’s effort to gain entry into these markets—as a public company reporting on subsidiaries and in adhering to each country’s compliance guidelines—what has been just as challenging has been the issue of which products to introduce. With more than 3,000 products, executives had to develop a core offering that provided a good, strong message of who the company was and then build upon those first products in the market.

“We needed to develop a core grouping of products that would be true to our heritage of Dr. Wallach’s message of nutrition,” said Briskie, “while making sure there was enough of a widening of the product line in the vertical so the rest of the world would understand our omni-direct strategy for betterment.”


The technology platforms allow us to take a complex product line and make it simple for the consumer.
- Dave Briskie, President and Chief Financial Officer, Youngevity


Selecting which items posed a dilemma, especially in light of the cross-marketing strategy related to acquisitions. “We bring an almost Amazon-like feel to our industry with a vast array of verticals and a vast array of products. The excitement is overwhelming,” says Michelle Wallach, who serves as Youngevity’s COO.

Brand Experience

Charged with telling Youngevity’s evolving story is Loren Castronovo, the company’s Chief Marketing Officer. A 25-year direct selling veteran, she sees success as a simple equation: strong visionary leadership, plus a motivated and capable team, plus great brand experiences. It just comes down to execution. Castronovo is focused on three initiatives for 2017 designed to create memorable brand experiences for consumers and distributors and reinforce the notion of betterment: engagement, infrastructure and branding.

In February, Youngevity unveiled a new logo, which reflects the company’s positioning as an omni-direct lifestyle company. “We wanted to signal this transformation and growth to a full-spectrum products and service marketplace,” said Castronovo. “Omni-direct refers to providing multiple touchpoints of engagement with the company, and lifestyle is all about representing many of the top-selling retail categories. We also wanted to convey that if you are interested in extra earning, Youngevity is a great place for that to happen with so many products to choose from.”


We bring an almost Amazon-like feel to our industry with a vast array of verticals and a vast array of products. The excitement is overwhelming.
- Michelle Wallach, Co-Founder and Chief Operations Officer, Youngevity


In addition, she is leveraging the pioneering spirit that has been so key to the success of the company and complementing it with disciplines required for the next stage of growth for this business. “As our breadth of categories continues to grow, our products continue to grow, and we want to make sure there is oversight for each vertical and that there are product roadmaps to keep those verticals fresh and compelling,” she said. “This structure focuses on a new level of cross-functional collaboration across the company, and it will help guide the right investment decisions and ensure we are agile in the integration of any new acquisition.”

Rebranding a 20-year-old business with a heritage like Youngevity’s does not happen overnight, especially with a diverse product line that is constantly expanding. While Castronovo will lead marketing initiatives such as the current repackaging effort and a new catalog strategy, she understands messaging centers on gaining trust and ensuring that with every interaction a consumer or distributor has with Youngevity, their lives get a little better.

“Belief in physical wellness goes hand in hand with emotional wellness,” she said. “It’s really about cultivating a glass-half-full optimism and the belief that there are things you can do every day to make each day a little bit better. Anything worth having does take a little effort, and we are happy to be here to help, whether it is through the great products, the community that we are building or the training we are providing.”

Looking Ahead

Last year was a good year for Youngevity. In fact, it was a record-breaking year, with annual revenue rising 4 percent to an all-time high of $163 million. However, as exciting as that was to executives, what really excited them were acquisitions, infrastructure development and international expansion, which, they say, helped to set the foundation for the next 20 years.


Anything worth having does take a little effort, and we are happy to be here to help, whether it is through the great products, the community that we are building or the training we are providing.
- Loren Castronovo, Chief Marketing Officer, Youngevity


“I look at 2016 as a transformational setup year,” said Briskie. “It was a positioning year. What is impressive to me is knowing that we actually achieved growth while resolving some things we thought important for the future of our company. We’re thrilled that we achieved some growth, but we feel the best is certainly yet to come.”

 

July 01, 2017

Company Spotlight

Viridian works to Create a More Sustainable World

by Angela E. Soper


Click here to order the July 2017 issue in which this article appeared or click here to download it to your mobile device.


Viridian International

Founded: 2009
Headquarters: Norwalk, Connecticut
Top Executives: Paul Booth, CEO; Cami Boehme, Partner and COO
2016 Net Sales Generated: $263 million
Global 100 ranking: No. 59
Products: Sustainable lifestyle including electricity, natural gas, solar and travel


namePaul Booth
nameCami Boehme

Although climate change and its causes may be hotly debated, research shows many believe greenhouse gas emissions caused by humans’ lifestyles are harming the planet. A 2015 survey conducted by the Pew Research Center found that majorities in all 40 nations say climate change is a serious problem, and two-thirds of those polled believe people will have to make major lifestyle changes to combat it.



Changing people’s lifestyles to help reduce greenhouse gas emissions is the focus of everything Viridian International does. With a commitment to sustainability and minimizing the carbon footprint, the company is proving that green living can help the planet and reward its Independent Associates and customers.

Today Viridian International is dedicated to creating a path to a more sustainable world—its mission from the day the company was founded in 2009. The company launched with a single electricity product and has broadened its product portfolio to include natural gas, solar and travel, with plans to offer more “green” products and services. Its growth has been substantial—549 percent in the first seven years—and much more is on the agenda.

Readjusting Its Corporate Structure

In addition to expanding its product offering to create lives “powered by purpose,” the Norwalk, Connecticut, company has not been afraid to readjust its corporate sails to best serve its over 26,000 Independent Associates and more than 250,000 customers.

Initially founded as a private company designed to give people an opportunity to choose energy that could be affordable and great for the environment, Viridian soon became the network marketing sales unit of publicly traded Crius Energy. In July 2016 the company was acquired by Viridian International Management LLC, a newly formed private company that paid $2 million in cash upon completion of the deal. A promissory note of $4 million was due to the company in 12 months, with additional payments over five years, which will total $10 million. The goal was to expand Viridian’s Associate base, product offerings and geographic reach.

Spearheading the new investment group was Paul Booth, now Viridian International CEO. Booth was very familiar with Viridian because his company, Data Paradigm Inc., had been instrumental in helping it enhance its back office and compensation plan. With 30 years’ experience in network marketing, he knew the channel well and was so impressed with the company he stepped away from his CEO role at Data Paradigm to take the helm at Viridian.

“I saw the opportunity with Viridian,” says Booth. “It just made a lot of sense to take it private so we could so some things that public companies simply can’t be nimble enough to do.” And while the nature of the product was a given for Booth, something a bit deeper spoke to his heart. “It was the people and the culture more than the nature of the product… It was the leadership base [that drew me] and that continues to be the case today,” he adds.

Helping to steer Viridian toward increased growth is Cami Boehme, Partner and COO. Boehme had been Chief Strategy Officer for Crius Energy, working with Viridian Associates. She says Viridian will again operate as a single, focused, exclusive, dedicated brand—with a set of private investors committed to its success. However, Viridian maintains an exclusive partnership with Crius Energy to offer responsible electricity, natural gas and solar to its U.S. residential customers.

For Boehme, Viridian is far more than a business with huge potential to grow; it’s a culture rooted in a desire to create positive change in the world, which began in 2007 with helping people choose responsible energy. “I loved how such a simple idea could simultaneously be so bold,” says Boehme. After learning about the “crazy idea” to make green energy affordable, Boehme says she jumped onboard right away. It wasn’t long before she realized Viridian had become “one of the most inspirational companies to launch in decades.”

Since those early days, Boehme has witnessed the results of this bold plan—clean water for a village in the Rainforest; children playing in a lighted room at night for the first time thanks to a solar installation; and new trees growing in the Amazon thanks to Viridian and its Associates’ reforestation efforts. And, she’s watched timid Associates turn into confident leaders who are making positive changes in their own lives thanks to their Viridian businesses, she says.


Participants in the Amazon Preservation Project take in the magnitude of the forest they are committed to preserving.

From Complex to Simple and More Lucrative

Viridian’s revised corporate structure includes a new compensation plan. The coded compensation plan Viridian had been using is being replaced with a binary plan that goes above and beyond the usual binary that only pays on the volume in the smaller of the two legs.

“We’ve addressed that Achilles Heel, if you will, of a binary by making significant income on the other side as well,” explains Booth. “[The plan] is certainly based on the side that has the lesser volume,” adds Booth.  However, he notes, the plan includes a building block component called the Trio, where it’s “you and two,” which creates a replicated effect. This produces a pay line that swaps back and forth, generating significant momentum that allows the plan to pay to an infinite depth on both sides.

Viridian Associates, known collectively as Generation V, are embracing the new plan, says Charla Gervers, Vice President, Leadership Development. “Our senior leaders are beyond excited,” she says. Gervers feels the company is going from complexity to simplicity, which she believes “really speaks volumes, because they ‘get it’ ”—a significant factor since the coded plan was difficult for many to understand and share.

Another feature helping Associates build their businesses and sell products is the Viridian Catalyst App, a mobile app designed to help with prospecting efforts. “It has really changed the game here at Viridian,” says Gervers. “[Associates] don’t have to try to navigate a website to find a document or a video to send to someone. They just have it right in the mobile app that they can text immediately out.”

In addition to the app and the company’s back office system, called the V Center, Viridian supports its Associates by conducting a webinar with all new Associates within seven days of joining the company, by holding webinars for the field monthly and quarterly, and by conducting periodic trainings on new products and services.

It’s All about Responsible Products

From its initial foray into offering a single electricity product, Viridian has expanded to offer responsible energy products in 18 U.S. markets and in Australia, as well as a new travel program called Travel Light. Sustainability and offsetting the carbon footprint is a primary component of all Viridian products. A carbon footprint represents the total set of greenhouse gas emissions caused by a person, event, organization or product, expressed as carbon dioxide equivalent. And about everything people do in life contributes to the amount of carbon dioxide that goes into the atmosphere.

TextViridian Associates help during a beach clean-up in Mexico.

Viridian purchases carbon offsets to neutralize emissions created by consumers’ energy usage as well as their travel through Travel Light. “A carbon offset is something somewhere in the world that’s either avoiding the release of carbon or it’s producing more oxygen,” explains Boehme. “Carbon offsets provide funding for projects that help our environment. A carbon offset is simply certification that one metric ton of CO2 has been intentionally reduced, absorbed or avoided as a result of a project, initiative or program designed to create that positive impact.” Thanks to Viridian’s carbon offset purchases, customers can make a big difference in the health of the planet. For example, an average Viridian electricity customer’s usage avoids enough CO2 to represent 109 trees grown over 10 years and 36,552 aluminum cans recycled.

The company also makes contributions on each purchaser’s behalf to its Simply Right Natural Gas Fund, which supports nonprofit organizations that are driving and creating positive change in the natural gas industry. Plus, it gives electricity to a needy family for one day every month that Viridian customers pay their energy bill, and offers a 5 percent cash back program for bundling electricity or natural gas plans.

Rates for energy usage varies depending on the plan and area in which customers live, says Boehme. To help customers review rates and plans in their area, they can go to rates.viridian.com. Associates also receive the company’s online newsletter, the Energy Insider, every month to receive up-to-date information about its energy products.

Putting a New Light on Growth Potential

Viridian’s solar product offers strong growth potential for the company. According to the Solar Energy Industries Association, the U. S. solar market had its biggest year ever in 2016, having installed 14,800 megawatts of solar power, nearly doubling the previous record of 7,500 megawatts in 2015 and bringing the total installed to 42.4 gigawatts. The organization predicts the cumulative U.S. solar market to nearly triple in size over the next five years, surpassing 10 gigawatts.

Viridian offers a variety of flexible plans for installing solar panels and offers 24/7 monitoring for the life of the solar contract, which includes any necessary repairs or replacements. In addition, its Sun Plus One program helps families in need by donating one solar system to a family in the U.S. or around the world for every 15 of its installed solar customers.

Boehme says the structure of the company’s solar program, which removes its complicated nature, is compelling. “It’s not the kind of product that as a network marketer you want to become an expert in,” she says. “And so we have [created] a very, very simple lead program.” She adds that Associates merely provide the names of people who are interested in solar to an internal team that then follows up with each prospect. “We pay $1,000 for every installed [solar] deal, and really all that our Associate is doing is creating that initial interest,” Boehme says.

TextViridian’s trip last year for its 7 Continents in 7 Years project took Associates to Albania to install electricity for school children.

Viridian’s Travel Light program takes advantage of the booming travel industry, ($683.1 billion in direct spending for domestic and international travel in 2016, according to ustravel.org), while helping to offset the carbon footprint caused by travel.

With Travel Light, people can enroll as a member and receive as much as 50 percent in discounts on travel purchases, receive a 110 percent price guarantee and reward credits, have access to a personal concierge, and never have to worry about blackout dates. There is also a Karma program that does not require a monthly membership and offers smaller discounts.

When people use Travel Light to book flights, hotel rooms, vacation packages, rental cars or even cruises, Viridian purchases carbon offsets on their behalf to counterbalance the emissions those activities create. Viridian’s purchases of carbon offsets include forest restoration protection, landfill gas recovery systems, wind farms, energy efficiency for buildings and transportation, and education programs that seek to reduce the use of fossil fuels.

The company produces a sustainability report each year so its Associates can see exactly how much it has been able to accomplish. To date the company has offset more than 9 billion pounds of carbon by partnering with organizations and projects around the world. As an example, the 2016 carbon offsets purchased by Viridian for its customer usage plus its corporate travel and events came from two landfill gas projects: McKinney Landfill in Collin County, Texas, and Wolf Creek Landfill in Dry Branch, Georgia.

Making the World a Greener Place

Viridian is committed to making that carbon footprint as light as possible. Its 7 Continents in 7 Years (7C7Y) project, an annual initiative focused on a different continent each year, has improved people’s lives and the environment all over the world. 7C7Y projects generally focus on electrification or reforestation. The first year initiated Viridian’s Amazon Preservation Project, which represents the company’s commitment to plant 5,000 trees in deforested regions of the Amazon, and its Earth Mom program encourages people every month to “show the planet a little love.”

The 7C7Y incentive program encourages field leaders to help create a more sustainable world. Top leaders are rewarded with these hands-on trips; called “voluntourists,” they spend a week making a difference somewhere in the world before enjoying a week of fun and relaxation. They’ve trekked to such places as Ghana, India, Fiji, Brazil, Albania and Nicaragua to do things such as reforest a region, install solar panels, help to provide power for a school and provide much-needed clean water. This year’s seventh installment of the initiative will take them to New Mexico.

The company also has a program for nonprofit organizations called Viridian Cares and a program for commercial customers called the Business Beacons Program that allows businesses to take advantage of Viridian’s energy-efficient products.

Building to a Blitz

The company’s launch in Australia last October is also playing a role in Viridian’s growth. Robert McFadden, Vice President, Australia, helped during Viridian’s infancy, traveling the U.S. in a little black Toyota Prius to share the company and its product with people. He left after two years, and was recruited back into the company after a three-year hiatus. He says he couldn’t resist rejoining the company.

Australia boasts 4,000 Associates, and McFadden anticipates growing that number to 10,000 over the next two years. Adds Boehme, “We have a growing team there. They’re very passionate about sustainability and they really embrace our mission.”

With the company’s launch in Australia, and plans to roll out new products in the fall, Viridian is definitely charting a course for growth. Viridian currently ranks No. 59 on DSN’s Global 100 and had $263 million in net generated sales in 2016. Booth says he wants to increase the number of Associates to 1 million and plans to use a methodical approach to become a $1 billion business well within five years.

“We won’t hurry up and mess up,” he states. “However, I can tell you once we do jump into those [other] countries, we now have a compensation plan that can get us in there and we can just blitz very, very quickly.”

For Boehme, this growth will never change the mission and purpose of Viridian. To her the heart of the matter is quite simple: “We help people make more sustainable choices more affordably, and we help people build a business doing that.”

July 01, 2017

Company Spotlight

WineShop At Home: A Rebirth and Renaissance

by Lin Grensing-Pophal


Click here to order the July 2017 issue in which this article appeared or click here to download it to your mobile device.


WineShop At Home

Founded: 1998 (direct selling, 2002) 
Headquarters: Napa, California 
Top Executives: Stan Fredrick II, Chairman of the Board; Jane Creed, President and CEO 
2016 Revenue: approximately $20 million
Products: wines, wine club, custom-label wines, gifts, stemware and accessories 


nameJane Creed

There are a lot of things that have come together to drive the growing popularity and increasing presence of WineShop At Home in the direct sales channel: growing sales and interest in wine among a wide range of demographics, a growing number of women interested in careers in the direct sales channel, and the proliferation of new wines and new wine blends to please virtually every palate.

A New Regime

1-800 Wine Shop.com Inc., now DBA WineShop At Home, had been established as an internet wine company, but due to inexperience and lack of direct sales knowledge, the company was on the verge of closure when the Fredrick family—J. Stanley Fredrick I, Chairman of the Board at Mannatech Inc. and a DSA Hall of Fame member, and his son, Stan Fredrick II—then minority owners, took a majority ownership in the business and gradually began the process of bringing it back to life. Fredrick II now serves as Chairman of the Board for WineShop At Home. By 2010, WineShop was well positioned to bring Jane Creed into the organization to execute a turnaround strategy for the new majority owners of the company.


The trust between your employees, your field organization and the company is the most important thing in direct sales. We’re just so thrilled that we’ve been able to reinfuse this business with passion that’s unlike anything else out there.
- Jane Creed, President and CEO, WineShop At Home


Creed came to WineShop At Home with an already well-established presence in the direct sales channel, having served for nine years as a senior vice president for a notable seller of high-quality kitchen tools. Her wine and food-related experience was also extensive—she’s hosted international press events for wine-growing regions, has developed strategic plans for wineries, chefs and lifestyle, luxury and consumer goods companies, and has introduced a French wine company’s products to the American market. She’s also a prolific writer and serves on the Board of Directors for the Direct Selling Education Foundation as well as on the Advisory Board of Women of the Vine & Spirits. To say she is passionate about both direct sales and wine would be an understatement.

Through Creed’s leadership as President and CEO, WineShop At Home has executed a turnaround that now positions it as a leading in-home wine-tasting company in the U.S.—and that has led the company to double-digit growth and profitability.

When she took the helm, she says, the initial focus was paying off debt—almost $2 million of debt. “Today, we are a debt-free, highly profitable business with a growth rate of approximately 15-20 percent over the past five years, year over year,” Creed says. The company is privately held and does not release full financial information, but it does have about 4,000 Independent Wine Consultants and is “approximately a $20 million company,” she says.

What has driven that success? Building a culture of trust. “The trust between your employees, your sales field organization and the company is the most important thing in direct sales,” Creed says. A key element of the turnaround, “was rebuilding trust with our sales field organization so that they would understand where we’re coming from, what we do and what it is that we stand for.” That was accomplished over time through open communication and transparency. “We were ready to walk through the fire and make it happen, and that’s what we did.”

Creed adds, “We’re just so thrilled that we’ve been able to reinfuse this business with passion that’s unlike anything else out there.” A focus on discipline, along with taking steps to simplify the business, were keys to stability and growth, Creed says. It was also about “infusing the business with new joy and passion and creating a sense of community.”

The organization is now a blend of employees who were part of the original organization and those who have been hired since the turnaround, bringing the total to 30 full-time employees. All value the new transparent culture, open communication, the focus on quality, and the enthusiasm that Creed and her team have developed.

Capitalizing on Love for Wine

The consumption of wine is a decidedly social experience, making the direct sales model a perfect fit. Bringing together a group of wine lovers into a social setting sets the stage for sampling, sharing and shopping.

Women represent the majority of the market, says Lauren Howes, Manager of Marketing for WineShop At Home. They like wine, they like high-quality wine and they like having a variety of options to choose from, both in terms of varietals and price point—and WineShop At Home gives them all of this, along with exclusivity.

When WineShop At Home Independent Wine Consultants join the company, they are set up with a W.O.W. (Wine on the Web) Package, which provides them with a replicated website and the WineShop At Home app that they can use to place orders, enroll new Consultants and access training tools and other supportive materials to help them run their businesses. Various incentive programs are in place to reward Consultants for their efforts through vacations and other awards.

What Makes WineShop At Home Unique

In addition to a concerted focus on building a strong culture, based on trust and transparency, Creed says that a focus on the product and “upping the ante on the quality of the product” have also helped to drive demand and sales.


Driving the high quality of the company’s products is Alexandre Reble, Director of Winemaking. Reble is a native of Bordeaux, France, and has more than 18 years of winemaking experience both in France and the United States.


“We knew that we wanted quality to drive price,” says Creed. Driving that high quality is Alexandre Reble, Director of Winemaking. Reble is a native of Bordeaux, France, and has more than 18 years of winemaking experience both in France and the United States. Reble focuses on selecting wines and creating innovative blends that are introduced regularly. “We have 38 exclusive wine brands that we’ve created,” says Creed. “We release four new wines every month, so our people always have new wines to try at our Tastings.” Reble studied at the Agricultural School of Libourne and Blanquefort, receiving degrees in enology and viticulture, as well as wine trade and spirits. He came to the Napa Valley in 1997 and worked at estates that included Beringer, Newton Vineyards, Flora Springs Winery, Twomey/Silver Oak Cellars and others.

WineShop At Home follows a “good, better, best” pricing strategy, says Creed. Wines range from $14 to $75 a bottle. “There’s really something for every consumer price point,” she says.

The uniqueness of the offerings is also driven through Reble’s selection of varietals from around the globe—from Napa and throughout California, as well as countries such as Chile, Argentina, Italy, France, Australia and Spain. While the company does not disclose its wine sources, as this is proprietary information, Creed says they source from some of the best vineyards in the world. She adds that this gives WineShop At Home some advantages as it is not reliant on one, or just a few, estate vineyards, should any of them have a bad season. “We’re also known for our Winemaker’s blends,” says Creed. “These are formulations that our Winemaker puts together that are quite unique within the wine industry.” WineShop At Home currently has 38 exclusive wine brands created in Napa and has been awarded more than 75 medals at international wine competitions over the past four and a half years, including Sunset International Wine Competition, San Francisco Chronicle Wine Competition and Winemaker Challenge International Wine Competition.

There’s also a certain aura of exclusivity that drives sales at WineShop At Home private Tastings and through its website. Wines cannot be found on store shelves, on any other website or in any tasting rooms or restaurants. They can only be attained through WineShop At Home Wine Consultants.

How It Works

Wine Consultants, primarily women (85 percent), and falling within the 35-44 age range, tend to be suburban—94 percent are married and 40 percent are parents, says Howes. “The largest concentration of Consultants is in Texas, but we also have a lot of consultants in Colorado, Iowa, Pennsylvania, Tennessee and Illinois.”

The company’s mantra is “We Are One Wine Nation,” and it’s the theme of this year’s convention where, says Creed, “We’re even having our own ‘One Wine Nation’ flag.” Anyone can come together over a glass of wine, and that’s the premise behind the Wine Tastings. Wine Consultants don’t have to be wine connoisseurs. They simply need to be interested in sharing a wine tasting experience with friends and family. Hosts can choose from five Wine Tasting Samplers: “the original,” “the renegade,” “the collector,” “the romantic” and “the individualist.” Samplers offer five bottles of wine for $29.95, plus tax and shipping—the Host also receives a “thank you” bottle, altogether making Samplers average more than $120 in retail value. Hosts also have the opportunity to add on to their Sampler with “Custom Packs.” Each wine comes with tasting and vintner’s notes, which offer some background on the wine, its vintage, varietal(s) and appellation, alcohol content, aging potential, serving notes, pairings—and a recipe for a selected pairing.


Wines cannot be found on store shelves, on any other website or in any tasting rooms or restaurants. They can only be attained through WineShop At Home wine consultants.


In addition, the notes identify the “Vinotype” most likely to enjoy the wine. The Vinotype experience was developed in partnership with Tim Hanni, a world-renowned Master of Wine. It’s devised from a short survey that explores taste preferences based on personal, psychological and physiological traits. After an individual takes the quiz on the WineShop At Home website, a list of wine recommendations is delivered that can be readily shared with friends via social media.

It’s all about flexibility, friendships and fun. But, while fun is at the heart of the WineShop At Home experience, the company gets very serious about a very important cause.

Giving Back

WineShop At Home’s Raise Your Glass corporate giving program benefits America’s Mighty Warriors, a 501(c)3 nonprofit organization that honors American troops, the fallen and their families with programs that improve quality of life, resiliency and recovery. The organization was founded by Debbie Lee after her son, Marc, became the first Navy SEAL to be killed in Iraq on Aug. 2, 2006. Marc’s Last Letter Home asked for friends and family to “pass on the love and kindness and precious gift of human life.”

The decision to support this organization was both personal and business-related. The program came to WineShop At Home’s attention after Stan Fredrick II, and his wife, Hollie, met its founder, Debbie Lee, at their church where she was speaking to the congregation. She said she was on a mission to tell the congregation about her foundation, America’s Mighty Warriors. Fredrick shared information about the program with Creed, and they both felt it was the right fit.

“Many of our Wine Consultants are military families, or come from military families themselves,” says Creed. The small size of the organization also appealed to them, as did the fact that 95 percent of the dollars raised went directly to those who needed the help.

WineShop At Home supports the cause by directly passing along contributions through monetary donations in increments of $1, $5 or $20 and through the purchase of its special-label Glory Cellars wine—a $2 contribution is made to America’s Mighty Warriors for every bottle purchased. Those who make a donation of $20 or more to the Raise Your Glass program receive a special “Raise Your Glass: America’s Mighty Warriors” commemorative pin. This special wine is released during times of the year that coincide with patriotic or military-specific holidays. 

It’s a fitting focus for a company that is currently, exclusively based in the United States.

The Future

There are no signs that the demand for wine will ebb in the near future in the United States—or other countries. Rob McMillan, Executive Vice President and Founder of Silicon Valley Bank’s Wine Division, write’s in his “State of the Wine Industry 2017” report : “Premium wine dominates sales today and is responsible for nearly all the growth in the trade.” By 2021, Gen X will have surpassed the baby boomers “to become the largest fine wine consumer demographic in the United States,” according to the report.


Nothing would make me happier than seeing a bottle of our wine on every table in America.
- Jane Creed


“Our sense right now is that things are going so beautifully here there’s nothing but growth, growth, growth,” Creed says about WineShop’s potential. “We’re going to be expanding our operations here in the U.S. and then looking beyond.” But, she adds, “There are certainly opportunities in Europe, and in Asia, so those are things that we will be exploring in the years to come.”

That growth will also drive some expansion, she says. “We’re bursting at the seams at our location here in Napa. Next year we’ll be moving into new headquarters.” The current location has about 17,500 square feet, and the new building is planned to have at least double the space.

Creed says, “Nothing would make me happier than seeing a bottle of our wine on every table in America.”

 

July 01, 2017

DSA News

Direct Selling and the Changing Face of Retail

by Ben Gamse



Click here to order the July 2017 issue in which this article appeared or click here to download it to your mobile device.


DSA’s 2017 Growth & Outlook market-sizing survey helps direct selling companies better understand the direct selling industry. This research also explores broader consumer, workforce, and other economic trends and their implications for direct selling. These trends include the evolution of the retail sector as many brick and mortar retailers struggle while e-commerce experiences explosive growth. Other trends, such as the rise of the gig or sharing economy and wage stagnation have significant implications for direct selling. First, here’s a look at DSA’s new Growth & Outlook survey results, showing direct selling data and insights for the 2016 year:

Size and Scope of Direct Selling

A record 20.5 million people were involved in direct selling in the United States in 2016, a 1.5 percent increase from the previous year. “People involved in direct selling” have signed an agreement with a direct selling company and are eligible to purchase products at a discount and resell them at a profit. They are also eligible to sponsor others to do the same.

For the first time, DSA has released “segmentation” figures of those involved in direct selling, to better describe who they are and how they are involved:

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Of the 20.5 million “involved,” 5.3 million are building independent businesses as direct sellers, meaning they are actively managing a customer base and possibly sponsoring others to do the same. Of these, 800,000 are full-time and 4.5 million are part-time. In addition, 15.2 million others receive a discount on products and services they personally enjoy and use. (Outside of the 20.5 million are preferred/registered customers as well as customers who have not signed an agreement with a direct selling company).

Estimated direct retail sales in the United States in 2016 was $35.54 billion. This is a 1.6 percent decline from last year but still the second-highest in direct selling history. This modest dip in sales represents an opportunity for the industry to take advantage of a more customer-consumer-centric model, provide the best of both offline and online shopping experiences, and attract some of the 89,000 retail employees laid off in the United States since October, according to a recent New York Times (NYT) article on American retail. Finally, direct selling must compete with a growing gig economy for salespeople and with e-commerce giants like Amazon and Walmart/Jet.com for customers.

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Below are some strengths, opportunities, and challenges faced by direct selling:

Personalization (Strength)

A key strength of direct selling is personalization, and a one-on-one personalized experience is a likely reason why we continue to see growth in the wellness sector in direct selling. Consumers are increasingly focused on health and wellness as the obesity epidemic in the United States worsens, the U.S. population ages, and people seek a more healthy and happy lifestyle. Direct selling “coaches” provide a long-term, personalized relationship and help customers stick to regimens and achieve results. The wellness product group represents the largest direct selling category with a 34.9 percent share of overall sales. The category grew from $10.4 billion in 2014 to 12.4 billion in 2016 (19.2 percent increase).

As competition increases in all direct selling categories, the industry must leverage the unique one-on-one relationship between seller and customer to stay above competition from other retail channels.

E-commerce/Omni-channel Retail (Opportunity)

E-commerce, social media, and mobile technologies are improving—creating opportunities for direct selling companies to complement in-person sales by broadening company and salesperson reach and increasing efficiency of the customer experience.

Of the retailers experiencing the most success, many (such as Warby Parker, Ulta Beauty, and Walmart/Jet.com) have an omni-channel approach.

Online and offline shopping both have specific advantages, and when combined make for a better consumer experience. According to findings by market and consumer research expert GfK, people who shop at brick and mortar stores do so because they can physically see the product before they buy, are familiar with the store, and derive instant gratification from obtaining the product immediately. Reasons for shopping online include saving money, better selection and convenience.

Combining these channels makes sense as “people who shop both online and offline spend 2.5 times more than those that just use one channel,” says Scott Galloway, Professor of Marketing at NYU Stern School of Business.

Direct selling is already leveraging the value of omni-channel retail. DSA’s 2016 Managing Your Company’s Web Presence & Technology systems Report shows that many DSA members offer e-commerce, mobile commerce, and social media training and tools to complement in-person service.

Growth & Outlook Methodology

In early 2017, DSA conducted the industry’s largest market-sizing survey, with 104 direct selling companies participating. Nathan Associates, an economic consulting firm, confidentially collected survey data, conducted secondary research, and generated industrywide estimates. The Growth & Outlook Report was generated with diligent guidance and oversight from the DSA Industry Research Committee and with assistance of Artemis Strategy Group. This DSA data and industry insights cannot be found anywhere else.

Wage Stagnation and Retail Closures/Layoffs (Opportunity)

A key strength of direct selling is its ability to offer supplemental income—attractive in an environment of wage stagnation and large retail closures and layoffs.

More Americans are working, but income hasn’t increased proportionally. According to Bloomberg, “even though the unemployment rate hit a decade low of 4.4 percent in April, average hourly earnings of all private non-farm workers grew just 2.5 percent over the past year.”

Also, Slate substantiates what we’ve already seen happening—the decline of the shopping mall. Department stores that often serve as “anchors” to malls, such as Macy’s and Sears, are closing hundreds of locations, with Sears closing 150 stores and Macy’s to close 100.

Those workers affected by this continuing decline already have experience in retail and are likely looking for additional income, presenting an opportunity for direct selling.

Increased Competition with Amazon/E-Commerce (Challenge)

According to NYT, “Between 2010 and 2014, e-commerce grew by an average of $30 billion annually. Over the past three years, average annual growth has increased to $40 billion.”

While e-commerce presents an opportunity for direct selling, it also serves as a competitive threat when e-commerce companies can offer a wide range of low-cost products and services, quick delivery, and convenient user experience.

DSA Industry Research Committee:

  • Judy Jones, Amway; Industry Research Committee Chair
  • Jeff Kaufman, Isagenix International; Immediate Past Industry Research Committee Chair
  • Pammie Strickland, Ambit Energy; Past Research Committee Chair
  • Martha Broda, Mary Kay Inc.
  • Julie Cabinaw, Scentsy Inc.
  • Michael Freeman, Team Beachbody
  • Gordon Hester, The Juice Plus+ Company
  • Tyler Horton, Nature’s Sunshine Products Inc.
  • Omobola Imoisili, Team Beachbody
  • Susan Leen, Amway
  • Brian Matney, Thirty-One Gifts
  • Erich Pagel, Scentsy Inc.
  • Jay Schwartz, New Avon
  • Erica Sheffield, Arbonne International
  • Jesse Stamm, Take Shape For Life - Medifast
  • Monica Wood, Herbalife
  • Ben Gamse, DSA
  • Nancy Burke, DSA

To learn more about DSA research, visit http://www.dsa.org/benefits/research or contact DSA Market Research Manager Ben Gamse at bgamse@dsa.org.

For example, NYT shares, 52 percent of American households have an Amazon Prime account (2016). The Washington Post reports that Walmart experienced a 63 percent surge in online sales in Q1 2017, and Walmart customers enjoy two-day shipping on millions of items without a membership fee. Walmart’s online offerings include 50 million items, a 500 percent increase from last year.

One of direct selling’s advantages is personalization, but other companies are offering increasingly sophisticated personalization through e-commerce, mobile commerce, social media, and in-store experiences. Many of these companies have loyalty programs, collecting vast amounts of user data used to improve personalized experiences. Many of these companies have loyalty programs, collecting vast amounts of user data used to improve personalized experience.

Professor Galloway suggests that retail as we know it is going to change dramatically in the next five years. The direct selling industry will need to embrace these changes and find ways to demonstrate its unique value, sell more products and provide better customer service online, improve logistics, and quicken delivery.

Gig/Shared Economy (Challenge)

In the past several years, a significant number of “gig economy” organizations, such as Uber, Lyft, Task Rabbit, and AirBnB have entered the market with success. These companies compete with direct selling for salesforce members, touting similar benefits such as freedom, flexibility, and supplemental income. Direct selling must build and capitalize on its strengths of socialization and personal connection.

As the face of retail continues to change, with new technology disrupting many product categories, direct selling has the opportunity to capitalize on current trends and innovate for the future.


NameBen Gamse is Market Research Manager at the U.S. Direct Selling Association.

July 01, 2017

Exclusive Interviews

New DSA Chairman Inspiring Change


The U.S. Direct Selling Association named a new Chairman of the Board in June: John Parker, Chief Sales Officer of Amway. Parker is an experienced direct selling executive, having spent more than two decades with Amway, including positions as President of Amway Japan and as the company’s Chief Marketing Officer. He has been active with the broader direct selling community, having spent four years as Chairman of the Direct Selling Education Foundation and, most recently, serving on the executive committee of the DSA. He recently spoke with Direct Selling News about his goals for the 2017-18 board year. The following is a condensed version of that conversation.

DSN: What is your vision for the U.S. Direct Selling Association?

JP: The way I think about it is in three different categories: Core to DSA’s mission, we are focused on enhanced protecting, policing and promoting the industry through DSA. When I talk about protecting, really the focus there is on our government affairs and legislative agenda and ensuring that we take advantage and continue to grow our effectiveness both at the state and federal level. When we talk about policing, it’s taking this opportunity to create a much stronger, more robust self-regulatory effort at DSA, one that’s viewed as credible by regulators and external groups. Then in terms of promoting the industry, it’s the intentional way in which we tell our story and engage on these issues with outside audiences and constituents. We need to not only tell the great story that we have to tell about our industry, but also tell the story about how we’re facing challenges head on—how we’re changing and how we’re willing to change for the better. 

John Parker

DSN: How do you describe the direct selling landscape in the United States today? What do you feel is the pulse of the channel itself in terms of its alignment with consumers and independent sales associates?

JP: The concepts that have really driven the growth of our industry in the U.S. and around the world over the years are entrepreneurship and natural communities of like interests and passions forming in a way that will benefit our businesses. I think we’ll see continued success in becoming viewed as even more mainstream and more relevant to the next generations of entrepreneurs in America.

Likewise, I think that as long as we are able to adapt the way in which our businesses meet the needs of consumers through great products and meet the needs of our representatives through great support and great entrepreneurial opportunities, the future is brighter than it’s ever been. That, against the backdrop of some of the challenges we’ve faced, just creates a clear need for us to focus on both. To focus on the way in which we’re providing great consumer experiences, great entrepreneurial experiences, and all of that done in a way that proves our commitment to the highest level of ethics and consumer protection. 

DSN: There are an increasing number of opportunities out there for individuals to engage in this emerging YouEconomy. How do you see direct selling continuing to differentiate itself in the marketplace?

JP: While there’s risk of direct selling being less differentiated in the marketplace than it was in the past, I continue to be very optimistic about our opportunity because the sheer number of people who are choosing to engage in part-time and entrepreneurial endeavors are doing it in a way that didn’t exist in the past. 

The desire to live a gig-focused existence—because of its attractiveness to adventurous people who value experiences over “things”—is just one of the big opportunities that direct selling fits into. Yes, there’s more competition in that space. It does require us as companies, and as leaders, to approach the marketplace with a different mindset, given the changing expectations that consumers and today’s entrepreneurs have. But, we’ve proven our ability over time as an industry to successfully do that. While this may be the biggest, most fundamental change we’ve seen in the economic landscape in our country’s history, we’ll bet on our industry to do that effectively in the near term and over time.

DSN: How can the Direct Selling Association best advocate for member companies? What can member companies do to help best support the association?

JP: Let me answer the second question you asked first. I would say that the best way for individuals to advocate for the association is to get involved in the association and truly help the association understand what their needs are, so that we can, in fact, respond to them. 

In terms of how the association can best advocate for our members, I refer back to those three P’s. I think the first thing that we need to do is ensure that we have advocacy happening for the direct selling industry with the most important audiences—promoting. And to protect ourselves—the second “P”—we’ll need to stretch even further our ongoing commitment to government affairs and public policy outreach, and to leveraging the great work of the Direct Selling Education Foundation with academia. 

There are two parts to how we’re viewed. One part is how the industry is viewed and how our companies, as a part of this industry, are viewed. The other part, frankly, is the strength and credibility of the DSA brand. We need the DSA brand and its work to be viewed as essential and meaningful by policymakers, legislatures and regulators.

The standards to which we hold ourselves, and the standards to which we hold the industry collectively, need to get higher—that’s the third “P” of policing. The opportunity we have is to raise the bar as it relates to consumer protection standards and what it means to be a member of DSA. 

DSN: What changes are underway in terms of allocating more resources toward Code enforcement and toward the Code Administrator’s office?

JP: In the current year’s budget, we have made significant increases in the investment we are directing toward Code enforcement, and we have begun the process of accelerating and moving in that direction already. What we’re going to work on in the next year is to define how that is not just a one-year, or one-off approach, but how we build it into the ongoing operation of the association and what it means to be a member of DSA. This isn’t just an idea that’s kind of floating around; this is a direction that the DSA and membership have already chosen as the top priority as we begin the new board year. In the longer term, our goal is to have a model of self-regulation that’s well thought out and credible—one that inspires confidence, and that others can learn from—one that the FTC points to as a model for other industries to emulate.

DSN: What will have happened that, when you look back at the end of this board year, you’ll know it was a success?

JP: We’ll know it is a success when several audiences—existing members, direct selling companies who are not members but maybe are thinking or have thought about being members, policymakers and regulators—look back at DSA and say, “Wow, things are changing pretty substantially at DSA.” Specifically, we’re going to make changes in the way in which we self-regulate, and we’re going to be successful in advancing good public policy. All of that together is going to result in DSA being a more credible organization with member companies and with policymakers and regulators. 

That isn’t just going to happen because we continue to do things the way we’ve done them. It’s going to happen because we’re going to make important, necessary and visible changes that will be very positive for the long term.

July 01, 2017

New Perspectives

‘We’re All on the Same Team’

by John Addison

John Addison spent 35 years in the corporate offices of one of the world’s largest direct selling companies, Primerica Inc., most recently serving as Co-CEO. Since his retirement, he wrote the best-selling book Real Leadership: 9 Simple Practices for Leading and Living with Purpose, and he now serves as Leadership Editor for SUCCESS magazine and President and CEO of Addison Leadership Group. He regularly offers his leadership insights to Direct Selling News readers, and has answered some of your questions below.

If you have a question you’d like John to answer in a future issue, email editor@directsellingnews.com.

We’re planning our next big field event and having a debate about onstage recognition. Who should get the most stage time: the legacy leaders or the up-and-comers?

This is a very good question and a very tricky question. It has to be balanced. You can never make your big organizational builders feel like you’re putting them out to pasture or you don’t care about them anymore. That sends absolutely the wrong message to the organization; however, it is critical that you also showcase new, young heroes in the business.

Let’s focus for a second on what are you trying to accomplish with a big event. I would say for most companies at least a third of it should be first-timers. If that’s not the case, you’re really not attracting enough new people.

Events don’t need to be the same old people talking to the same old people. You have to have that new blood, that new growth in the room. You want to energize the people who have been with you, but you want to have the new people say, “I can do this, I’m in.” I’ve always told people, a big convention should be a showcase of success. It needs to have some emphasis on the new heroes, people growing, on the way up. You always edify those who are the big builders and have been there a long time, but you have a huge, huge focus on up-and-comers and new heroes.

The year is half over, and we’re lagging behind on our sales objectives for 2017. What do you recommend we focus on to get back on track?

I believe it is important to have both a short-range and a long-range plan for the business, because if you’re not measuring against something, you’re just taking a chance on things. And don’t overreact, because if you’re constantly changing stuff, it just leads to a bunch of confusion. Even positive change is change, and you need to be
very careful.

Also, I think people need to be very cautious when changing their compensation plans to compensate for a midyear disappointment. People plan their lives and their business based on the comp plan, and if you’re constantly changing it, people lose confidence in the leadership. Instead of a comp-plan change, you need to have a budget for short-term incentives that you can put in place if things aren’t going the way you want. For example, if I saw recruiting was down, I would call a play that led to a 90-day recruiting incentive. You need to have short-term things you can do that create energy, excitement and growth.

We have some senior managers whose business units are not performing as expected. How can we turn things around? And when is it time to move on?

In every organization, the leader needs to know their people. They need to know their strengths and weaknesses. Now, sometimes you have great leaders who are struggling because of the economy, regulatory issues or something else that’s happening in the environment. You need to be realistic and know that sometimes people are fighting a tough battle.

But I believe leaders need to be close not only to the people who are right around them, their direct reports, but also to people two and three levels deep. The leaders need to know them as people, know their strengths, their weaknesses and even whether or not they are a cultural fit. When someone is a constant negative force on the business, you need to move them on to their next opportunity in life. The worst thing to do is to say, “I’m not going to make a decision and see if it gets better.” It’s a mistake to think that magically they’re going to wake up one day and things are going to change.

Our legal and marketing departments can’t seem to work together. How can we bridge the divide?

When we took over at Primerica, there were some struggles between the legal and the marketing area of the business. One of the things I made clear to everyone was that we’re all on the same team. Your message has to be, “We’re all on the same team. We’re here to grow this organization.” My theme for that year was, “One Team, One Dream.”

That said, to build a business, you gotta be in business. If the marketing people get too far out there, you won’t be in business, but if you let the lawyers get too far out there, you won’t do any business. Everyone has to have the same goal to build a healthy, secure, strong business. We’re here to build and grow. Tennis is an easy sport with no nets or lines, but the fact is, it does have a net and lines, so while the lawyer’s job is to try to keep us inside the lines, our job is to grow. There may be a constant tension between the two, but the critical and constant message should be, “We are on the same team.” 

We recently had some negative publicity. How concerned should we be, and how can we shift the conversation?

The most effective way to handle negative publicity is to make sure you are making morally and ethically good choices for the business. One of the most important things you can do for your reputation is to handle complaints fast. Do not have angry customers out there saying, “I bought this, and I couldn’t get my money back.” We need to resolve problems for upset people, fast. You’ll probably never be in a place where people don’t criticize you, but when you get to the bottom line, you need to feel good about what you’re doing for the consumer and for your reps.

Don’t overreact to negative publicity. Control what you can control, and don’t run around and overreact to everything. I think when people say, “Everybody needs to know our story. Just put a noisemaker on our head and start hiring a media person,” it’s usually one step before disaster.

Now, if you have a real crisis, you need to hire somebody good at dealing with crisis media. But I’ve watched people take a small situation and turn it into a problem by going to the media. Make sure you are doing the right things, but if you get a little criticism or whatever, don’t overreact to it.

July 01, 2017

Cover Story

Consumer Trends: Technology Is Still King

by Courtney Roush


Click here to order the July 2017 issue in which this article appeared or click here to download it to your mobile device.


In 1995, Newsweek magazine published an article by astronomer Clifford Stoll in which he stated that the Internet was a passing fad, and that in two or three years hence people would find little value there (Clifford Stoll: The Internet? Bah! Newsweek, February 27, 1995). Acknowledging his incredibly inaccurate prediction 11 years later in a 2006 TED Talk, he said, “If you really want to know about the future, don’t ask a technologist, a scientist, a physicist…. No, if you want to know what society is going to be like in 20 years, ask a kindergarten teacher.”

This quote highlights one of the primary reasons direct selling companies should take note of emerging trends. More than any time in history, children are the harbingers of future consumer trends: They enter the world of consumption at an increasingly earlier age, given the demands on busy families; their desire for time-saving, ready-to-go convenience; their early access to technology; and their greater independence and involvement in purchasing decisions. Companies have an incredible opportunity to engage this younger demographic and gain brand loyalists in their formative years. 

But the impact of technology doesn’t stop with the youngsters; it is driving the behavior of consumers of all ages. Consider these statistics:

  • This year, online video is expected to account for 74 percent of all online traffic (KPCB).
  • 55 percent of people watch videos online every day (MWP).
  • 85 percent of Facebook video is watched without sound (Digiday).
  • Marketers who use video grow revenue 49 percent faster than non-video users (VidYard).
  • 82 percent of U.S. adults say they at least sometimes read online customer ratings or reviews before purchasing items for the first time, including 40 percent who say they always or almost always do (Pew Research). 
  • 70 percent of U.S. millennials say they would appreciate a brand or retailer using AI technology to show more interesting products (SONAR/J. Walter Thompson).
  • The virtual reality industry is growing at a fast pace, with revenues from VR hardware and software projected to increase from $3.7 billion in 2016 to more than $40 billion by 2020 (Statista).
  • The average person spends approximately two hours on social media every day (Mediakix).
  • The average person will spend more than five years of his or her life (to be exact, five years and four months) on social media (Mediakix). That comes in ahead of eating or drinking, grooming, socializing and even doing laundry.

These statistics remind us that we’re talking about more than just a trend here; this is our new reality. How are direct sellers responding to this new reality, then—including the emerging, yet compelling, technologies still gaining footholds and the ever-increasing expectations of consumers who have grown accustomed to the instant gratification these innovations deliver?


If you really want to know about the future… ask a kindergarten teacher.
- Astronomer Clifford Stoll, 2006 TED Talk


“We must put technology at the center of everything we do,” says LegalShield CEO Jeff Bell. “It must be in our presentation, our client service, and our business management. We must do more for our distributors than Uber does for their drivers.”

Storytelling

What these emerging technologies share is their ability to tell a story. When we think about the appeal of online peer recommendations, what exactly is it about those testimonials that resonates with people? Those before-and-after stories trigger self-identification and customer engagement. Brands who can forge emotional connections with their customers are far more likely to retain them. We’re living in an era in which many consumers are wading through information overload and questioning if they can trust what they’re reading. They’re searching for authenticity. We’ve seen a seismic shift in the way brands communicate: They’re showing, not telling. And that’s precisely why written words are becoming secondary to images and experiences.


The average person will spend more than five years of his or her life (to be exact, five years and four months) on social media (Mediakix). That comes in ahead of eating or drinking, grooming, socializing and even doing laundry


The Search for Personalization

North America 17 Consumer Trends, a report issued by market research firm Mintel, sets the scene for our current landscape, stating that 63 percent of Americans say technology gives them so many choices that it’s hard to pick the best one for them. In short, we’re inundated, and we need help weeding through the muddle. Personalization does exactly that. Consumers are seeking not just authenticity, but also confirmation of their core beliefs and values. Retailers are responding with more targeted, data-driven messages. 

While consumers appreciate that, there’s a bit of a downside involved, both for them and for the messengers seeking to retain them. Consumers aren’t being exposed to new and different products, services and ideas outside their “parameters,” and, taking the path of least resistance, retailers limit their audience. “Whether or not they are aware of it,” the report says, “many consumers find themselves in a perpetual cycle of being exposed only to ideas, beliefs, opinions and services with which they already identify. In the coming year, these figurative echo chambers will place a greater distance between people—and between consumers and brands—leaving the latter with more complex challenges.” In other words, retailers who want to expand their markets have to find ways to attract consumers in other, different silos. “Brand disruption is paramount,” the report adds, “in getting inside of consumers’ echo chambers and making connections with them. Human interaction could prove effective because advice from real people has the benefit of
being more trustworthy.” 

When it comes to the direct selling channel, there’s no escaping our foundation of personalized service, nor should there be. “Technology has helped make the experience better, it’s helped connect people more easily, and it has brought more clarity and focus on what we offer, but the part that we’re preserving—the most important part of the differentiation—is that personal touch,” says Mona Ameli, President of Take Shape For Life, Medifast’s direct selling division, which is currently being rebranded as OPTAVIATM, effective this month. “The transformational aspect of our business related to relationships—none of those tools can replace that. And we don’t want it to be replaced, because that’s where the DNA of our business is.” 


We must put technology at the center of everything we do. It must be in our presentation, our client service, and our business management. We must do more for our distributors than Uber does for their drivers.
- Jeff Bell, CEO, LegalShield


Direct selling executives are considering how to blend the tried-and-true with the new and innovative, giving consideration to several emerging technologies and trends like the ones covered below.

The Growing Predominance of Video

When managed correctly, video can add a great deal of personalization to the consumer experience, which is why it’s an especially powerful medium. Facebook Live is dominating this conversation. The service offers a number of advantages over Periscope: You can limit your Facebook Live exposure to specific groups on your page, and the videos don’t expire after 24 hours. Traci Lynn Jewelry Founder and CEO Traci Lynn, who also serves as Vice Chairman of the Direct Selling Association Board of Directors, uses it for training. “If I’ve got a new consultant group, I can bring them into our corporate office virtually, and I can introduce them to the staff,” she explains. “It’s fresh and new every single month, without bringing any production crew in. We’re in-house with our cameras—our phones.” She adds, “My video likes and engagements have quadrupled from what I’d get on a normal post. Video works. People want to hear from you—just the real you, in jeans, sitting at your desk.”

The Need for Speed, and Convenience

You’ve undoubtedly noticed the U.S. Postal Service delivering packages on Sundays. Call it the Amazon Effect. Modern consumers want shipping fast, and they’re often willing to pay for the privilege. A holiday survey commissioned by Deloitte and released in December 2016 found that the number of consumers who consider three- to four-day shipping to be “fast” is on the decline. Consumers are quickly becoming accustomed to push-button/get-it-now services like Amazon Dash, Alexa, Siri and UberEATS that offer near-instant gratification; or the short turnaround times provided by companies like Zappos and Amazon Prime, who deliver within an average of 24 to 48 hours. 


The transformational aspect of our business related to relationships—none of those tools can replace that. And we don’t want it to be replaced, because that’s where the DNA of our business is.
- Mona Ameli, President, Take Shape For Life


“Speedier deliveries and an overall faster customer experience is something we’re putting a lot of thought into,” says Mike Edwards, Vice President of Global Digital Services and Channel Strategy at Amway. “As one market example, Amway India is currently working on a one-on-one consumer connect strategy that enables us to deliver products within one day in Amway India’s top 20 cities. The model is run like this: one minute for the customer to register to buy Amway products, an hour to get in touch with an Amway Business Owner who is selling the products, and one day to deliver the products to the customer. For this type of model to work, the consumer experience with the brand is critical. You cannot have Amway delivering in 10 days while other e-commerce companies are delivering in two days or less.”

In the months and years ahead, our channel is likely to face increased pressure to deliver faster and better.

“What direct selling has traditionally relied on is that the direct selling community—people who are vested—will put up with things that regular consumers would not. Today, that’s completely different,” says Lori Bush, retired CEO of Rodan + Fields and an advisor, speaker and consultant. “If you’re going to convince me that I should be part of this business model, I know what my expectations are as a customer. I want to know that I can deliver those same expectations to the people I bring into the business.”

Subscription “boxes,” which contain products from makeup, jewelry and razors to food, cleaning supplies and even mysteries, are a hot trend, capitalizing on the consumer’s desire for novelty, both from a packaging and products standpoint. The attraction is that these companies are curating or hand-selecting specific items that are of interest to consumers, based on the answers they provide to questions about their preferences. Some direct sales companies, like Amway, have been examining how to leverage this model, while some, like Traci Lynn Jewelry, already are doing it successfully.  

There’s one caveat when it comes to these subscription services, though. “What comes in those boxes has to delight,” Bush says. “I think it’s a brilliant approach, though I’m not seeing a lot of it in direct selling yet. But it makes a lot of sense. If you’re going to set up these mixed box programs, though, you’re going to have to really rock at processing returns, and that could be what gets in the way. It’s a wonderful consumer experience if it’s done right.”

Artificial Intelligence

First of all, what is artificial intelligence? In a nutshell, the term describes the science of creating intelligent computers that respond like humans. When you call an airline to make a reservation and you’re walked through a series of voice-commanded steps before you’re delivered to a live customer service representative, that’s AI in perhaps its most basic form. The potential applications of such technology could be significant for the direct selling channel, particularly in the customer service arena. However, given that our channel has set the bar high for customer service, there’s no margin for error here. It remains to be seen whether AI could assume this function, at least in part.

Ever heard of chatbots? Imagine a chatty, conversational exchange through text messages, much like you’d have with a good friend or family member who knows you well. According to Chatbots magazine, there are two types of chatbots. The first one is based on simple commands, and it’s only as smart as it’s programmed to be. If it asks you a question and you don’t give an exact answer, it won’t know how to respond. The second variety is based on more sophisticated machine learning. You can give an approximate answer, and the chatbot is smart enough to figure out what you meant. This chatbot actually becomes “smarter” over time; it remembers your previous conversations and stores information about you. 


If you’re going to convince me that I should be part of this business model, I know what my expectations are as a customer.
- Lori Bush, retired CEO of Rodan + Fields and consultant


If all of this sounds a bit futuristic, well, it is, but this form of technology already is more common than you might think. In fact, for the first time, messaging app use is beginning to pull ahead of social network use, according to Business Insider. In an online survey of more than 1,000 18-to-65-year-old U.S. consumers, 44 percent said that if the company could get the experience “right” (read: accurate), they’d prefer to communicate with a chatbot versus a human. 

The customer service potential for chatbots comes from the fact that they work around the clock. If you’ve got a worldwide presence spanning multiple time zones, and/or if you simply want to be able to service those distributors or customers who are working late-night hours, chatbots could offer a solution. 

Add to this that consultants are already putting in a lot of hours recruiting people and working to meet volume requirements and make commission levels. To meet the direct selling level of service, AI can help fill the gaps, shortening response times and enhancing the customer experience. “This is where I think a lot of things are going because people have expectations of service levels that can’t be met with humans,” says Bush. “You just can’t hire enough bodies and train them well enough to provide that continuous level of service.” 

For now, direct selling companies are keeping an eye on the trend and considering its possible applications. “I think it’s clear that AI is going to affect every business moving forward,” says Amway’s Edwards. “The advancements occurring in AI are really staggering. We’re definitely staying on top of computer science trends and thinking about how we can embrace AI advancements to help build efficiencies in our business. It’s not easy to make bold forecasts around AI, but I can comfortably say that each year the impact on direct selling will become more pronounced—just like it will be for every business.”

The question still remains whether or not it is simply a trend that will pass. Are there other ways to provide personal service and keep up with the competition without AI? Outsourcing customer service remains an option, which can save money as well as keep a company competitive in different markets.

Virtual Reality

Virtual reality, or VR, refers to computer-generated, three-dimensional images with which you can interact in a seemingly real way with the use of special equipment like a headset. VR could certainly prove useful for distributors because, as convenient as it is to research or shop online, the computer screen remains a barrier. Because we’re a channel that prides itself on “try before you buy,” we’re faced with the challenge of how to bridge the gap between digital and physical. This technology, once mainstream, could possibly be used to help provide customers with a more realistic product sampling or viewing experience. LegalShield’s Bell calls VR “the ultimate test drive,” and it remains to be seen how, and if, it could find its place in a selling situation. 

Amway currently is using VR to draw visibility for its Corporate Social Responsibility initiatives, a means of bringing authenticity to the brand. In 2016, the company sent a camera crew to Lusaka, Zambia, where more than half the population lives in poverty. Amway’s Nutrilite Power of 5 Campaign has been working with Non-Governmental Organizations (NGOs) in Zambia since 2011 to fight against chronic malnutrition. VR video captured the program in action. “Interestingly, Nielsen recently reported that 48 percent of consumers who viewed VR video content from a nonprofit were more likely to donate afterward, so we hope that new ways of using VR could help spread awareness of the Power of 5 campaign’s efforts to fight childhood malnutrition,” Edwards says.

Post-Purchase Experience

An article published by Harvard Business Review (“Online Retailers Should Care More About the Post-Purchase Experience”; Amit Sharma; May 24, 2016) states that only 16 percent of companies are focused on customer retention, despite the knowledge that it’s far more expensive to find new customers than it is to retain them. This gap represents a tremendous opportunity for the direct selling channel. The post-purchase experience, of course, is among our key strengths and points of difference. And because consumers are hungry for better service in our tech-driven world, direct selling companies would be wise to draw more attention to what we do best. 

In your standard retail transaction, you purchase a product, then never hear from the retailer again outside of the occasional email offers you receive. Order online, and the retailer might send your package via FedEx or UPS, which is a fast but hardly personalized means of delivery. Savvy retailers, however, are realizing that they’re leaving money on the table if they don’t capitalize on the opportunity to build customer relationships. Retention is achieved by ensuring a consistent experience across channels, and from the moment the consumer presses the “submit your order” button. For example, a visually appealing, brand-consistent email with a fun, conversational message can help reinforce the customer’s decision to purchase. The best post-purchase messages even lay the groundwork for the customer’s next purchase, with a special offer or product suggestion. Or perhaps they encourage the customer to leave a review or follow them on social media—anything to keep them engaged. 

While consumers are focusing more and more on “self-seeking, self help or self-service,” according to Bell, personal interaction with a direct selling company could go a long way toward building the trust they so eagerly seek when making product purchases, and at the same time establish “the transference of belief in a product/service” for the company. For consumers, “the foundation is distrust of traditional means of learning about products (advertising or shelf space).” What our channel may need to pay close attention to is that the Internet is learning quickly and presenting more transparency, he says. 


We have this amazing opportunity to compete by having our sales consultants be a part of the experience in a way that you can’t compete or duplicate with online shopping.
- Cindy Monroe, Founder, President and CEO, Thirty-One Gifts


Still, the direct selling channel can build upon its foundation of personalized service, using technology to amplify what we already do so well. “We have this amazing opportunity to compete by having our sales consultants be a part of the experience in a way that you can’t compete or duplicate with online shopping,” says Thirty-One Gifts Founder, President and CEO Cindy Monroe. “We know that we have to be faster and rethink our digital experience for our customers, but we’re doing that with our sales field being a part of that experience.”  

How can direct sellers further capitalize on consumers’ desire for a post-purchase experience? “Compensate distributors more for retention and repeat sales than for first sales,” Bell suggests. “In addition, set up referral programs, recognizing that everyone doesn’t want to be a distributor, but everyone likes a reward.”

As part of its rebranding effort, Take Shape For Life has taken a deep dive into the experience each of its tools delivers, whether it’s a Health Coach using the back office, or a customer receiving her first food order. “All of those have been given a high level of importance, because that’s where you really bring value and create customer retention and satisfaction,” says President Ameli. “The experience still has to be built into it, so that people feel that we care about them, even if it’s not a person talking to them on the phone.

“Even the language and the experience flow needs to show that. It’s not just about efficiency. We talk about the soul of the brand and the soul of the company showing up in all the technology touchpoints. Even though you’re interfacing with the technology, you still feel that the brand is connecting with you.” To support that philosophy, OPTAVIA has created a new Experience and Support department designed to ensure a seamless experience for its community of Health Coaches and their clients, which, Ameli believes, will have a direct and positive impact on retention. The overriding objective for the company’s transition to OPTAVIA is the development and support of Health Coaches who will guide clients through not just short-term weight loss, but a total life transformation. 

For any direct selling company grappling with how to keep up or even get ahead of the curve with these evolving consumer trends, Traci Lynn has a piece of advice: “If we go back to the basics, a lot of times we’ll find some great answers. The reason I’m still standing today is because I’ve got a field that believes in me and trusts me. We use technology to our benefit, but at the core of who we are, we still want human connection.”

July 01, 2017

DSA News

WFDSA World Congress in Paris: The Place to Be!

The XV World Congress, co-hosted by the World Federation of Direct Selling Associations and the French DSA, will take place in Paris on Oct. 1-3, 2017 with France, the second largest direct selling market in Europe, as host.

Amongst the many topics debated in this event will be digital and technical revolutions, new managerial trends, and the most recent legal developments impacting our business model.

With the theme of Own the Future, high profile speakers, leaders of direct selling, media representatives and academia will be present at this momentous event. Emma Crosby, the well-known BBC journalist, will moderate the plenary sessions, and keynote speakers will share their vision of a fast-moving world in constant transformation, including Pascal Lamy, former Director of the World Trade Organization (WTO), and Bertrand Piccard, the Swiss aeronaut who flew around the world with “Solar Impulse,” the first solar-powered plane. 

Besides a CEO Panel discussion between four key leaders of the direct selling industry, the programme of the Congress features a range of interactive workshops:  

Generation Y. Also called millennials, they grew up with new technologies and bring a whole new vision of the workplace. Direct selling companies follow this trend closely as a growing number of young people are interested by the direct selling work.

The Collaborative Economy. This is a fast growing business trend. Its concept, based on a “doing more with less” approach, is in line with the current economic climate. How does direct selling relate to the collaborative economy? The success of this new peer-to-peer entrepreneurial business trend will push retailers and consumers to reinvent ways of doing business. 

The Evolution of Consumerism and Distribution. Today’s consumers are more, and often better, informed than the seller due to their habits of researching products and services online before making purchase decisions. How can companies adapt their strategies and business model to the new purchasing habits initiated by this digital revolution? Will customer loyalty be affected by this evolution, and if so, how? 

Social Media and Direct Selling. What is the future of social networks in this industry? What is the contribution of new technologies to sales methods, and how can these tools best be used?

The Company of the Future. Experts predict robots will take over 30% of our jobs by 2025 and many blue collar jobs will disappear. Flexibility, balanced and healthier life styles, new schedules at work—all of these new trends emerge, supported by new technologies. Direct selling companies must adjust their operations to these new trends. How can they meet this challenge?

Wellness Products: Tomorrow’s Health and Connected Tools. In the near future, scientists will be able to analyse everyone’s health with the help of connected tools such as the “health watch.” Will these new connected health tools make significant advances in the future and will they boost direct sales of wellness products that occupy an increasing share in the direct selling sector?

Be sure to be part of this event, and register now on https://www.wfdsa2017paris.com/.

July 01, 2017

DSA News

DSA Annual Meeting Prepares for the Future of Direct Selling


Click here to order the July 2017 issue in which this article appeared or click here to download it to your mobile device.


Photo: Adolfo Franco (far left), Executive Vice President and Chief Operating Officer at DSA, sits down with a Leadership Panel to discuss, “Where We Are, and A Vision Forward.” The panel included (from left); Dave Wentz, Chairman of the Direct Selling Education Foundation; Traci Lynn Burton, Founder and CEO, Traci Lynn Jewelry; David Holl, President and CEO, Mary Kay Inc.; and John Parker, Chief Sales Officer, Amway. 

More than 1,000 people from around the world interested in direct selling participated in the U.S. Direct Selling Association’s Annual Meeting in Orlando, Florida, June 4-6.

This year’s event covered a range of topics, including driving and managing business growth, navigating the changing consumer landscape, self-regulation and public policy. Jonah Berger, Associate Professor of Marketing Wharton School, University of Pennsylvania, shared during a general session why “word of mouth” advertising is so much more effective than traditional adverting. Amanda Gore, CEO of The Joy Project and an expert on changing people’s behaviors, revealed how a few changes can enhance well-being and increase productivity and sales. Shama Hyder, CEO of the Marketing Zen Group, then offered her social media strategies to attract more customers, lead to more sales and grow a company’s brand.

The event did not have a designated theme, as has been the tradition, a choice that reflects the strategy of the association going forward, said Amway Chief Sales Officer John Parker, the incoming chairman of the DSA Board of Directors. “We really wanted to focus the attention on the Direct Selling Association and the way in which we as an industry are coming together to adapt to change in the marketplace and changing member needs,” Parker said. “We hope that the outcome of our time together is one that not only creates energy and excitement about the future but builds momentum toward positive change that will make DSA a stronger, more effective, more value-added organization to its members and one that is also more credible to outside audiences.”

The Board of Directors also approved a series of policy guidelines proposed by the DSA Ethics & Self-Regulation Committee to strengthen the DSA Code of Ethics and Association policies, building upon DSA’s stringent commitment to the highest standards of ethical business practices in direct selling.

“DSA continues to set the standard for industry behavior,” says DSA President Joseph N. Mariano. “The new policy guidelines make clear that companies must demonstrate that real customers are using real products, and provide examples of how legitimate companies can define and describe customers, salespeople, business builders, personal use of product by salespeople, and other aspects of our business model.”

In addition, Mariano noted that “procedures have been put in place for cases in which DSA member companies are subject to governmental actions. In such cases, companies will now be subject to suspension of voting rights, and if the facts merit, expulsion from the Association.”

In other business, three states have adopted anti-pyramid legislations this year: New Jersey, Indiana and South Carolina. Approval has been secured from last year’s lead co-sponsors to move forward with proposing the federal bill.

Direct Selling Honors

DSA closed the meeting with its Awards Gala and Dinner Celebration. For the first time ever, a DSEF Educator of the Year was awarded, which went to Dr. Brenda Cude with the University of Georgia.

One of the highest honors within the direct selling community, DSA Hall of Fame, was also announced. DSA inducted Nu Skin Enterprises Inc.’s Truman Hunt into the Direct Selling Association Hall of Fame. Hunt received this honor in recognition of his significant years of service and considerable contributions to the DSA, the World Federation of Direct Selling Associations (WFDSA) and the direct selling channel.

“Truman Hunt is one of the true gentlemen of the direct selling industry,” said DSA President Joseph N. Mariano. “Through decades of working together, I’ve come to respect not only his intellect, fairness and talent, but also his humanity. It is a great honor to be able to see him receive the Direct Selling Association Hall of Fame Award.”

Hunt served as President and CEO of Nu Skin from 2003 to 2017. Very active in the channel, Hunt has served on the DSA Board of Directors, including as Chairman from 2014 to 2015. He also was Chairman of the WFDSA from 2005 to 2008 and most recently served that organization as Secretary.

The event also included the annual DSA Awards. The recipients were recognized for programs that have empowered independent direct sellers and fueled business processes. The 2017 category award winners were:

  • Excellence in Salesforce Development Award: Scentsy Inc., for its Social Selling Tools
  • Marketing and Sales Campaign Award: New Avon LLC, for its “This is Boss Life” integrated marketing campaign
  • Product Innovation Award: Ruby Ribbon Inc., for Ruby Ribbon Demiette
  • Rising Star Award: viaONEHOPE
  • Technology Innovation Award: The Pampered Chef, for its Express Party Checkout
  • Vision for Tomorrow Award: Damsel in Defense, for SAFE Hearts
  • Partnership Award: Momentum Factor
  • “DSA congratulates all our 2017 DSA awards winners for their outstanding accomplishments and contributions to direct selling,” said Mariano. “These programs are incredible examples of the vitality, creativity and innovation that propel our industry forward, every day.”

DSEF Board Members Focus on Awareness and New Research

Brenda CudeDr. Brenda Cude of the University of Georgia was recognized with the first ever DSEF Educator of the Year award.

Under the direction of Chairman Dave Wentz, the Direct Selling Education Foundation is keeping its focus on spreading awareness of the value of direct selling on the economy and individuals pursuing entrepreneurship.

The DSEF Fellows program, in particular, is steadily growing. The program provides individuals a three-year opportunity to work with DSEF and industry executives to gain deeper insights into the direct selling channel of distribution, both as a market strategy and pathway to micro-entrepreneurship.

By June 2019, the goal is to have 200 professors as partners in the DSEF Fellows program and to reach 60,000 students per year with accurate information about direct selling. As of now there are 78 Fellows who have reached 8,416 students with direct selling content or industry speakers. An onboarding process is included with a guide to engagement that was produced this year, designed to motivate each professor to create research and encourage students to participate, with the expectation to reach at least 100 students in the year.

The current Economic Impact study will have been completed by June 30, with the Socio component expected this fall; the Success Drivers of High Performers study will be delivered in the fall of 2018. DSEF is involved in seven new research endeavors in all, including the study presented in Orlando comparing satisfaction rates among direct sellers and franchisees.

Another hot topic on the agenda was rethinking the term “direct selling.” While it is still challenging to pinpoint a replacement as the definition continues to evolve, members were looking for the best way to reflect the channel’s flexibility and position in the marketplace and how it could positively impact the level of interest from millennials and other demographic groups.

And finally, in Board Action, all of the DSA nominees put forward for the DSEF Board were approved.


John Parker Elected as Chairman of U.S. Direct Selling Association

The U.S. Direct Selling Association’s Board of Directors also held its formal annual meeting and election of board members with Amway Chief Sales Officer John Parker elected as Chairman. Important announcements included the DSA Women’s Leadership Retreat set for Aug. 21-23, as well as the DSA Day on the Hill scheduled for Sept. 12-13. This fall will also see the combination of the Regulatory and Marketing and Communications conferences combined into a single event.

Additionally, Traci Lynn Burton, Founder and CEO of her eponymous jewelry company, was elected Vice Chairman, and Michael MacDonald, Executive Chairman of the Board of Medifast (Take Shape For Life) was elected Treasurer. David Holl, President and CEO of Mary Kay Inc., remains on the executive committee as the Immediate Past Chairman, and Scentsy Inc. CEO Orville Thompson remains as Past Chairman.

Others elected to the Board as Directors for terms expiring in 2020: Jean-Charles Boisset of Boisset Collection, Kevin Guest of USANA Health Sciences, Ursula Dudley Oglesby of Dudley Beauty Corp., Kevin Sommer of Melaleuca, Halle Sminchak of The Kirby Company, Connie Tang of Princess House and Elizabeth Thibaudeau of Jamberry Nails.

Those continuing to serve on the Board of Directors: Cami Boehme of Viridian International, Dan Chard of Take Shape For Life (Medifast), Angela Chrysler of Team National, Landen Fredrick of Mannatech Inc., Alexis Ginn of Primerica Inc., Ashley Good of Arbonne International, Pamela Jones Harbour of Herbalife, Konrad Mayr of Sabika Inc., David Merriman of ACN Inc., Ryan Napierski of Nu Skin, Britney Vickery of Initials Inc., Scott White of New Avon and Christie Woodfin of Thirty-One Gifts.

June 30, 2017

U.S. News

Mannatech Launches Highest-Grade Aloe Product in Canada

Mannatech Inc., the Coppell, Texas-based pioneer of Glyconitrition, recently launched Manapol® powder, its highest-quality aloe vera gel extract, to the Canadian market.

Manapol powder is a pure, premium, 100 percent aloe vera gel extract that is abundant in acetylated, mannose-rich polysaccharides, or acemannans. The acemannans in Manapol powder have a guaranteed molecular weight of more than 1 million Daltons, testing the highest of any other aloe gel extract. The Glyconutritional product supports cellular communication and may provide gastrointestinal benefits.

“We’ve reached an exciting milestone by providing our most potent ingredient as a stand-alone product to our Canadian market,” said Christopher Simons, Mannatech’s Regional President of EMEAA and the Americas. “Manapol is our core technology at Mannatech and something that the Canadian market has been especially passionate about and supportive of for years.”

For more than 20 years, Manapol powder has been an essential ingredient in other Mannatech products. Mannatech’s Advanced Ambrotose® product and Ambrotose® complex are among the company’s top-selling products containing the aloe gel extract, and are known for their immune and gastrointestinal benefits.

Recently Mannatech announced it has secured its continuing source of premium Manapol powder with an exclusive deal with Natural Aloe Costa Rica. With this agreement, Mannatech provides its customers with transparency about where exactly the aloe in its products is sourced.

In April, Mannatech placed No. 73 on the Direct Selling News Global 100 list of the top direct selling companies in the world, reporting $180 million in revenue for 2016.

June 29, 2017

U.S. News

Nu Skin Expands Its Scientific Research in Skincare Devices

Scientists at Provo, Utah-based Nu Skin Enterprises Inc. recently presented insights on advancing the understanding in the development and efficacy of skincare device technology at conferences in the United States and China.

The research was presented at the annual meeting of the American Academy of Dermatology (AAD), held in Orlando, Florida, and the Society for Investigative Dermatology in Portland, Oregon, as well as the Cosmetics R&D and Technology Conference in China.

“These latest novel findings from Nu Skin’s scientists serve to continually transform our skincare device platform so we can bring the best products to market,” said Dr. Joseph Chang, Nu Skin’s Chief Scientific Officer. “The studies described in the posters are tangible demonstration of our innovative approach in skincare devices, so that we can incorporate the best technology into products that provide the best experience and benefits for our customers.”

A poster co-presented by certified dermatologist Dr. Zoe Draelos and Nu Skin scientist Dr. Dale Kern at the AAD annual meeting highlighted a study on individuals with clinically sensitive skin. The study found that a cleansing treatment device with a soft silicone treatment head and counter-rotating action provided both aesthetic improvement and deep cleansing benefits in subjects with sensitive skin after just one use. Furthermore, the study found that these benefits intensify over time with consistent use of the device.

“The research we conducted on individuals with sensitive skin found that the surface of the device cleansing head along with the cleansing motion can make the difference in removing facial debris without damaging the skin and creating bumps,” said Dr. Draelos. “Both the clinical assessment and the self-assessment for all participants noted statistically significant improvement in smoothness, softness, pore size, texture and cleansing ability after just seven days of use.”

A second poster detailed a study that examined different frequencies and movements of a cleansing treatment device to determine the precise motion and frequency that promotes skin renewal, revealing smoother, softer skin after just one use. This poster was presented by Dr. Kern to the Society for Investigative Dermatology, and similar information was shared at the Cosmetics R&D and Technology Conference.

Nu Skin’s skincare device portfolio includes ageLOC Me, a unique anti-aging skin care system that delivers a personalized daily regimen based on skincare preferences, as well as the Nu Skin Facial Spa, the ageLOC Galvanic Spa and the ageLOC Galvanic Body Spa that stimulates and tones the skin.

Nu Skin plans to introduce its latest device, the ageLOC® LumiSpa skincare system, beginning in October with full global availability in early 2018.

June 29, 2017

U.S. News

Sunrider Founder Awarded Honorary Doctorate Degree

Dr. Tei-Fu Chen, the world-renowned herbalist and founder of Torrance, California-based Sunrider International, was recently awarded an honorary doctorate degree by his alma mater, Kaohsiung Medical University (KMU), in Taiwan. An alumnus from KMU’s Department of Pharmacy, Dr. Chen was recognized for his donation of over 100 million TWD (over US$3 million) to the school.

During the ceremony, Principal Jingkuan Liu invited Chen to address the more than 1,500 graduates. In his speech, Chen emphasized that big investment is not necessarily the key to success. What is essential, he said, are good products, a good story, duplication and marketing channels. He encouraged the students to set Kaohsiung as their base, to expand their horizons and to see the world as their home. He said that real happiness is doing something meaningful, and that his donation to KMU is meaningful to him because a bigger school with greater resources can better benefit society.

Chen learned about herbs from his paternal grandfather, who would give his sickly grandson herbs to improve his health. Chen later studied his grandfather’s ancient manuscripts on herbs, and enrolled in KMU to obtain a degree in pharmacology.

It was at KMU that Chen met and married Dr. Oi-Lin Chen, now a licensed medical doctor and the President of Sunrider. In 1982, they bought the company at which he was doing research and development and started Sunrider. The nutritional company, which is celebrating its 35th anniversary this year, is in 42 countries across the globe.

In 2004, the State Postal Bureau of China issued a series of postage stamps recognizing Chen as “Elite Overseas Chinese.” In 2009, Forbes Asia listed him as one of the “World’s Heroes of Philanthropy.”

Founded 63 years ago, Kaohsiung Medical University, originally known as Kaohsiung Medical School, has more than 45,000 alumni, among whom many contribute to medical-related industries, government agencies and research institutes.

June 29, 2017

U.S. News

Mary Kay Names Philippines General Manager

Dallas, Texas-based Mary Kay Inc. recently appointed Sobee Duenas Choa as General Manager of Mary Kay Philippines.

Choa has been with Mary Kay for eight years. She returned to the Philippines seven months ago to focus on growing the company’s local market, which she believes has yet to achieve its full potential. “It’s one of the reasons I came home,” Choa said. “I saw how successful other countries were, and I was like, my own country has so much potential, why aren’t we there yet?”

As the head of Mary Kay Philippines, Choa brings with her over two decades of experience working in the beauty industry. She started her career with Avon Philippines in 1995 under the company’s brand management function. In 2001, she became Avon Asia-Pacific’s Regional Process Leader on new product development. She then moved to L’Oreal the year after, managing brands such as Lancome, Maybelline and Garnier. Choa returned to Avon in 2006 as part of the company’s Asia-Pacific regional brand marketing center. She worked in Shanghai and Tokyo as Senior Brand Manager for Avon’s Color Cosmetics.

In 2009, Choa joined Mary Kay. Based in Hong Kong, she was Regional Manager for Asia-Pacific, as well as Acting Marketing Manager for Singapore and Malaysia—roles that allowed her to see how other markets were overtaking the Philippines in terms of growth. What she discovered was that Mary Kay Philippines needed to overcome two main setbacks: lack of brand awareness and cost. “We realized that we needed to be more present,” she said. “Now it’s easier to find a consultant, easier to find a Mary Kay product, and we’ve adjusted our pricing.”

Choa joined Mary because of its values. “[Mary Kay has] three core values: follow the golden rule; live a balanced life—faith, family, career; and have a ’go give’ spirit. Every time we have a new employee, we talk about the core values, because we need to be on the same page.” AS General Manager of Mary Kay Philippines she is determined to ensure both Mary Kay’s products and values reach more Filipinos. “We have over 7,000 islands; it would be great to have a Mary Kay distributor on each one,” she said.

June 28, 2017

U.S. News

WorldVentures Sponsors Special Olympics in Texas

Plano, Texas-based WorldVentures™, the direct seller of global travel and leisure club memberships, was a blue-ribbon sponsor of the 2017 Special Olympics Texas Summer Games, held last month at the University of Texas at Arlington.

“More than 3,000 athletes went for the gold, and we are thrilled to have helped them because Special Olympics Texas is an outstanding organization making a huge difference,” said Wayne Nugent, WorldVentures’ Founder and Chief Visionary Officer.

Kristie Crone, Development Director of Sponsorships for Special Olympics Texas, praised WorldVentures, saying, “Without this support, we would not be able to do what we do.”

In addition to the blue-ribbon sponsorship, 40 WorldVentures employees and seven WorldVentures Foundation™ volunteers showed their support by timing events at the finish lines, encouraging the athletes with cheers and applause and providing comfort from the Texas heat by handing out cups of cool water as the athletes ended their competitions. Kassy Rosewitz, WorldVentures’ Director of Corporate Relations, also helped athletes and their families manage the North Texas heat by handing out sunglasses, as well as sunscreen and lip balm.

The WorldVentures Foundation is a U.S. 501(c)(3) organization with a mission to create positive change in the lives of children all over the world. The Foundation supports sustainable programs that promote children’s health, happiness, safety and development.

Special Olympics Texas is a privately funded non-profit organization that changes lives through the power of sport by encouraging and empowering people with intellectual abilities, promoting acceptance for all, and fostering communities of understanding and respect.

June 28, 2017

U.S. News

Jeunesse Honored with 17 Communicator Awards for 2017

Global youth enhancement company Jeunesse Global recently won 17 awards at the 23rd annual Communicator Awards, an international awards program that honors excellence in marketing and communications. The program is sanctioned and judged by members of the Academy of Interactive and Visual Arts (AIVA).

“We strive to create top-notch marketing and training tools that help Jeunesse Distributors share our story and the unique benefits of our products simply and effectively,” said Chief Visionary Officer Scott Lewis. “We are honored that the AIVA has recognized these efforts, along with the talent and creativity of our Marketing and Communications team.”

The Lake Mary, Florida-based company was recognized for its creative and communications work in print, video, social media and packaging, earning two Gold Awards of Excellence and 15 Silver Awards of Distinction.

Two marketing pieces won multiple awards. The We Live Jeunesse magazine received one Gold and four Silver Awards for writing, design, photography and content. The Jeunesse product catalog received three Silver Awards for design and photography.

Three company videos were honored for branded content. “Instantly Ageless™ by Jeunesse” won a Gold Award, while “M1ND™ An Ounce of Genius” and “What Does Your Day Look Like?” won Silver Awards.

Other creative works recognized with Silver Awards included:

  • Instantly Ageless Flawless Photo Contest social media campaign, for content marketing
  • Luminesce® Flawless Skin Brightener, for packaging
  • Jeunesse blog, for content marketing and writing
  • “Jeunesse Guide to Social Selling,” for writing and design

The Communicator Awards was founded two decades ago to honor big ideas in marketing and communications. The AIVA judges are top-tier professionals who work at media, communications, advertising and marketing firms, as well as major corporations such as Conde Nast, Coach, Disney, Estée Lauder, Lockheed Martin, MTV Networks and Pitney Bowes. This year, they scored more than 6,000 entries from around the world, making this the most competitive awards program for creative and communications work.

June 27, 2017

U.S. News

LegalShield Celebrates 45th Anniversary

Photo: LegalShield recently honored Oklahoma Attorney General Mike Hunter, shown here with LegalShield CEO Jeff Bell, at a community event at the company’s headquarters in Ada, Oklahoma.


LegalShield, the Ada, Oklahoma-based provider of legal safeguards and identity theft solutions for individuals, families and small businesses, is celebrating its 45th anniversary.

The company recently hosted a meet-and-greet event at the company’s headquarters to kick off the celebration of its 45th year of business. Former Senator Susan Paddack, former Attorney General Mike Turpen and Chickasaw Secretary of Commerce Bill G. Lance Jr. were among the guests who participated in the day’s festivities. During the event, in which the company shared its vision for success as well as its commitment to doing business in Oklahoma, LegalShield honored Oklahoma Attorney General Mike Hunter, who serves as the state’s chief legal enforcement officer and as such, works relentlessly to protect consumers from fraud.

“We are absolutely honored today to host this event that celebrates LegalShield’s partnership with an outstanding leader in Oklahoma, Attorney General Mike Hunter,” said Jeff Bell, LegalShield’s CEO. “At LegalShield, we are vigilant in our efforts to help citizens across North America achieve equal justice under the law, and we’re thrilled that General Hunter has the same vision.”

Hunter reaffirmed his pledge to vigorously defend customers’ rights and encourage small business growth.

“Harland C. Stonecipher was a true visionary,” said Hunter. “It’s amazing to see how this company started and where Jeff has taken it. What you’re selling is peace of mind. Being in business 45 years doesn’t happen by accident. It takes hard work, courage, sacrifice and dedication. Those are the things that really embody the spirit of the LegalShield organization. Consumer protection is something I’ve decided to take very seriously. Whether criminals try to defraud consumers over the Internet or in person, we will act swiftly to achieve justice. This is a great company, and I’m honored to be a part of your celebration.”

In April, LegalShield placed No. 43 on the Direct Selling News Global 100 list of the top direct selling companies in the world, achieving $450 million in 2016.

June 27, 2017

World News

Young Living Expands into Indonesia

Lehi, Utah-based Young Living Essential Oils recently celebrated its official expansion into Indonesia with nearly 1,500 attendees at its grand opening in Jakarta.

“We’ve looked forward to opening the Indonesian market for some time and are very excited to share Young Living’s exceptional products and business opportunities with this great country,” said Chief Operating Officer Jared Turner.

As a billion-dollar direct selling market with the fourth largest population in the world, Indonesia is a prime region for Young Living to establish a strong presence while providing optimal service and accessibility to its Indonesian consumers. With a new office and store located in Agro Plaza Building, Kuningan, Jakarta, the company’s base of operations will serve to make its products more accessible to customers across Indonesia.

“Our in-store and call-center teams are equipped to help customers learn more about Young Living’s beauty, wellness and home essential oils and to purchase products that suit their needs,” Country Manager of Young Living Indonesia Anggit Wicaksono said during the ribbon-cutting ceremony of Young Living’s first store in Jakarta.

“We are overwhelmed by the outpouring of support and response we’ve received as we begin our journey in this dynamic country,” said Tai Tolman, Regional President, Asia-Pacific. “I look forward to supporting our members and joining with and empowering them to achieve their personal and professional goals.”

June 26, 2017

U.S. News

Herbalife Continues Commitment to Diversity and Inclusion

Global nutrition company Herbalife announced today that in its continued commitment to diversity and inclusion in the workplace, and in recognition of the contributions diverse communities have made to society, the company is supporting two impactful initiatives: the CEO Action for Diversity & Inclusion™ and the “I Am an Immigrant” public awareness campaign.

The Los Angeles-based company has an unwavering commitment to diversity and inclusion, with women making up 46 percent of the company’s managers and above worldwide, and 52 percent of its managers and above in the U.S. are persons of color.

The CEO Action for Diversity & Inclusion™

Reaffirming the company’s commitment to diversity and inclusion, CEO Richard P. Goudis is one of the business leaders signing on to the CEO Action for Diversity & Inclusion, a collaboration between more than 150 CEOs pledging to make their companies places where individual experiences and perspectives are welcomed, and employees feel empowered to discuss inclusion and diversity.

The CEO Action initiative represents more than 50 industries across all 50 U.S. states and millions of employees globally, committing to take action to address diversity as a pressing social issue. (A full list of partners can be found at CEOaction.com.) In demonstrating its commitment to the CEO Action initiative, Herbalife pledged to take three initial action steps to advance diversity and inclusion in the workplace, including:

  • Continue to cultivate workplaces that support an open dialogue on complex, and sometimes difficult, issues surrounding diversity and inclusion, so that colleagues gain greater awareness of each other’s experiences and perspectives
  • Implement and expand unconscious bias education to better facilitate open and honest conversations
  • Share best known—and unsuccessful—practices in order to help each other build and improve effective diversity programs

“I believe it is important to create a great place to work with a caring and supportive environment for all of our employees,” added Goudis. “Joining this initiative is just one way we are demonstrating our commitment to a diverse and inclusive workplace, which is essential to fostering a culture of innovation and ongoing positive change.”

“I Am an Immigrant”

Herbalife also recognizes that immigrants with diverse backgrounds have made significant contributions to American culture and community. In recognition of these contributions, and in celebration of the fourth annual Immigrant Heritage Month, the company is supporting the “I Stand with Immigrants” campaign, celebrating the contributions immigrants have made in the United States.

The “I Am an Immigrant” initiative is engaging with thousands of people across the country and bringing together more than 250 companies and non-profit organizations representing business leaders, artists, entertainers and elected officials to celebrate and lift up the critical contributions of immigrants in our communities. To learn more about Immigrant Heritage Month and the “I Stand with Immigrants” initiative, visit IAmAnImmigrant.com.

Herbalife was recently commended by the Hispanic Association on Corporate Responsibility (HACR) for promoting diversity and keeping Hispanic inclusion top of mind.

June 23, 2017

U.S. News

ARIIX Honored with Six Distinguished International CEO Awards

Health and wellness company ARIIX received top honors at the 2017 annual CEO World Awards, including Best Overall Company of the Year and Management Team of the Year.

ARIIX founders, company innovations and the Jouvé™ brand were honored with six prestigious awards, three gold and three silver, in the global program honoring business and professional excellence. Awards for the Bountiful, Utah-based company included:

  • Best Overall Company of the Year (Gold)
  • Innovative Company of the Year — Consumer Products and Services (Silver)
  • Management Team of the Year (Gold)
  • CEO of the Year — Fred Cooper (Gold)
  • Executive of the Year — Mark Wilson (Silver)
  • Products, Upgrades and Innovation of the Year — Jouvé Skin System (Silver)

“We have already been experiencing incredible things for 2017,” said ARIIX President and Founder, Mark Wilson. “We’re setting record sales weeks in our top markets, we’ve shaken up the industry with compensation plan enhancements, and we’re about to host the largest event in ARIIX history, our World Reunion in Hong Kong. We’re just getting started, and being honored by the CEO World Awards is just the tip of the iceberg for the recognition our innovations will be receiving this year.”

The CEO World Awards is an annual industry and peer recognition program honoring CEOs and companies of all types and sizes in North America, Europe, Middle East, Africa, Asia-Pacific and Latin America. It is part of the SVUS Awards® recognition program from Silicon Valley, which also includes other programs such as Consumer World Awards, Customer Sales and Service World Awards, Golden Bridge Awards, Globee Fastest Growing Private Companies Awards, Info Security PG’s Global Excellence Awards, Network Products Guide’s IT World Awards, Pillar World Awards, PR World Awards and Women World Awards.

Winners will be honored in San Francisco on June 26, 2017, during the annual SVUS Red Carpet Awards Ceremony Dinner.

June 23, 2017

U.S. News

Two USANA Executives Honored by Utah Business Magazine

Two executives from Salt Lake City-based USANA, the cellular nutrition company, were recently honored by Utah Business Magazine. USANA’s Chief Communications and Marketing Officer Dan Macuga was named to the CXO of the Year list, while Ashley Collins, Vice President of Marketing and Public Relations, was named one of Utah’s 30 Women to Watch.

The CXO list awards chief-level executives who are key to their organization’s success. The 30 Women to Watch recognizes 30 female business leaders in Utah that stand out as role models in and out of the workplace.

Macuga started as a Vice President of USANA’s field development and public relations and social media teams in 2008. He worked his way up to Chief Communications Officer in 2011 and held that position until November 2016, when he was also given the title of Chief Marketing Officer. He is in charge of the internal and external communications at USANA, as well as the vast marketing and customer service departments.

“Dan has been such an important piece in USANA’s success over the past nine years,” said Kevin Guest, USANA’s Chief Executive Officer. “I am happy to see him receive significant recognition for his efforts. He has taken on the role of both chief marketing and communications officer in stride, and has been able to thrive in a position that is usually a two-person job. Dan is a true leader in the workplace and has created such a positive culture in the company.”

Ashley Collins has more than 15 years of experience working in public relations, marketing, communications and advertising. In late 2016, she was promoted to the role of Vice President of Marketing and Public Relations, taking on the responsibility for overseeing many different areas of the company.

“I have worked with Ashley for more than 10 years, and have had the opportunity to watch her grow into an amazing leader and businesswoman,” said Amy Haran, USANA’s Vice President of Communications. “She leads by example and is respected by her peers and those she manages. But above all else, Ashley loves to have fun, and I think that’s important when you’re in such a high-level position.”

June 22, 2017

World News

Avon Appoints Jonathan Myers as Chief Operating Officer

London-based Avon Products Inc. announced the appointment of Jonathan Myers as Executive Vice President and Chief Operating Officer, effective Sept. 1. Myers will assume leadership of Avon’s Brand Marketing and Product Research & Development, Digital Information Technology and Global Supply Chain. He will be based at Avon’s headquarters in London and report directly to Avon’s Chief Executive Officer, Sheri McCoy.

Myers brings to Avon significant operational and management experience in global markets, including emerging markets. He has expertise in executing growth strategies, integrating teams and managing a complex and diverse range of customers and channels. At both Kellogg and Procter & Gamble, he led major brand and product programs to drive innovation, while pioneering e-commerce capabilities in China and the U.K. to increase awareness and trial of new products and categories. He also oversaw the rapid expansion of manufacturing capacity to support business growth in China, alongside implementing new supply and demand forecasting across different businesses and markets globally.

Most recently, Myers served as Kellogg’s Vice President, Western European Markets, and Managing Director, U.K. and Ireland, where he successfully built the business and strengthened the organization, including delivering accelerated sales growth on the acquired Pringles business. Prior to Kellogg, he had a successful 20-year career at Procter & Gamble, serving in various leadership roles, including General Manager, Oral Care and Feminine Care, China, where he significantly grew market share. Earlier in his career at P&G, he worked on a range of Beauty Care businesses.

“I am delighted to be joining Avon at such a critical time in the company’ transformation,” said Myers. “With a 130-year history, the largest global representative network and leadership positions across a number of key markets and categories, Avon is positioned as one of the world’s premier beauty brands. I look forward to working alongside Sheri and the new Avon leadership team to deliver sustainable growth by expanding our network, digitizing our operations and leveraging our dynamic portfolio of market-leading products.”

Planned Executive Leadership Changes

Myers’ appointment completes the series of planned executive leadership changes that have been taking place in recent months, as Avon ensures it has the leadership team in place to accelerate the next chapter of the transformation journey to sustainable profitable growth.

Building out the leadership team to execute Avon’s three-year strategic growth plan represents the achievement of an important part of the transformation journey. During 2016, Avon created the platform for the future growth of the business. It entered into a strategic partnership with affiliates of Cerberus Capital Management L.P. that involved a $435 million investment in Avon and separation of Avon’s North America business into a privately held company, majority-owned and managed by Cerberus. It also reduced balance sheet leverage, extended the maturity of the debt portfolio, and achieved $180 million of annualized savings. In 2017, the company moved the corporate headquarters to the U.K., and the growth plans have been refined and the key enablers to drive change are being put in place. 

The company has been making broad-based changes to its leadership team. Recent appointments include Miguel Fernandez as Global President and James Thompson as General Counsel and Chief Ethics & Compliance Officer. In January, Jamie Wilson joined as Chief Financial Officer, having previously held the position of Chief Finance Officer of SABMiller.

Chan Galbato, Chairman of Avon, commented, “Our Board and management team, under Sheri McCoy’s leadership, are committed to the turnaround of Avon’s business and are continuing to ensure the business executes on its strategic plan to create consistent, sustainable and profitable growth. This latest appointment completes the executive team required to take Avon on to the next stage of the journey.”

“Jonathan’s appointment and the other executive leadership appointments we have recently announced ensure we have the strong, seasoned leadership team in place to drive and accelerate the pace of change in the next chapter of our journey to profitable growth,” said McCoy. “During 2016, we established the basis for our transformation, separating the North American business, strengthening our balance sheet and driving out cost. In 2017, we’ve refined our growth roadmap and put in place the enablers to drive the necessary changes to achieve our stated long-term financial goals.”

Fernando J. Acosta, Avon’s Executive Vice President and Chief Marketing and Social Selling Officer, has decided not to relocate to the U.K. and will therefore be leaving the company on Nov. 1. James S. Scully, Avon’s current Executive Vice President and Chief Operating Officer, will be leaving the company Oct. 1, following his previously announced decision not to relocate to London.

“I know I speak for the entire Avon management team and the Board in expressing our sincere appreciation to both Jim and Fernando for their dedication and service to Avon,” said McCoy. “We are extremely grateful for their leadership and contributions to the company’s strategic vision and transformation initiatives, and wish them both all the best.”

June 22, 2017

World News

Direct Selling Continues to Show Sustained Growth in Europe

Strong sales in wellness and cosmetics/personal care products helped the European direct selling sector continue to grow in 2016, according to the World Federation of Direct Selling Associations and the European Direct Selling Association (Seldia). European sales reached €32.9 billion (euros), up 3 percent from €32.3 billion in 2015.

Europe is the third-largest direct selling market globally, with a 20 percent share of sales. The region has seen a steady upward trend in direct sales for the last few years and is forecasted to continue growing, according to Euromonitor International’s report, “Direct Selling and Communities in the Internet Age.” In 2016, the sector saw increased growth rates across the vast majority of European markets, with Germany, France and the U.K. as the top direct selling countries:

Germany € 14.3 billion 
France € 4.1 billion
U.K. € 3.5 billion 
Italy € 2.8 billion
Poland< €1 billion

“We are happy to see such positive developments for direct selling in Europe,” said Seldia’s Executive Director Katarina Molin. “While retail remains a very competitive sector where consumer demands and choice continues to advance, the growth of direct selling shows that the sales channel, which offers direct and personal recommendations to the consumer, is a highly appreciated way of shopping.”

For the first time, wellness products are the top product category in Europe, followed by cosmetics and personal care. The breakdown of sales per product category was:

Wellness 32%
Cosmetics and Personal Care 25%
Household Goods 12%
Home Improvement 9%
Clothing and Accessories 9%
Home Care 4%
Food and Beverages 4%
Books & Toys 3%
Utilities 2%

“We are seeing an increased consumer focus on health and beauty across all age groups,” said Molin. “Direct selling has proven to be a trusted channel for consumers looking to combine a focus on a healthy lifestyle with both high-quality skincare and nutritional products, and we expect to see continued strong growth in these product categories over the next couple of years.”

Visit www.seldia.eu for further details on the 2016 European direct selling statistics.

June 21, 2017

U.S. News

Youngevity Acquires FreeLife and L’dara Brands

Youngevity International Inc., the Chula Vista, California-based omni-direct lifestyle company, recently announced that it has entered into a definitive agreement for the acquisition of the assets of Sorvana International. The companies have scheduled the closing of the transaction and the merger of the businesses to take place on July 1, 2017.

Sorvana International was formed in November of 2016 through the unification of two natural wellness companies, FreeLife and L’dara. FreeLife has been in business for 22 years providing natural wellness products predominantly in the United States, Canada, Australia and Philippines; L’dara is known for its award-winning patented skincare products.

“For over 18 months we have been in discussions with Youngevity and other potential companies, and we came to the conclusion that Youngevity is the best fit for us and provides the best opportunity for our Wellness Partners around the world,” said Ray Faltinsky, CEO and Co-Founder of Sorvana International. “I am impressed with Youngevity’s executive team, and we are confident that Youngevity’s omni-direct, multi-vertical strategy represents an opportunity that has a tremendous future. Our Wellness Partners are very enthusiastic about the expanded opportunity to market and get rewarded for sales on thousands of products in a number of different categories, and in a number of new countries.”

Sorvana Co-Founder Kevin Fournier added, “I can tell you that we dug very deeply and have found Youngevity has a very compelling vision, and we believe the platform they have developed will provide enormous upside for our Wellness Partners and customers into the foreseeable future. I believe our Wellness Partners will have enormous success within Youngevity, and I am confident Youngevity’s distributors and customers will enthusiastically embrace FreeLife and L’dara quality products.”

Both Faltinsky and Fournier will assist with all aspects of integrating Sorvana’s salesforce and will continue as distributors of Youngevity following the closing.

“FreeLife has a proud 22-year history of success in the direct selling profession, and L’Dara’s patented skincare products are very special,” said Steve Wallach, CEO and Co-Founder of Youngevity. “We believe acquiring Sorvana International represents a true extension of our mission of betterment, and delivering exceptional, science-based wellness products for optimal health to our customers. We are very proud of this acquisition as it represents our largest transaction in terms of top-line revenue and in number of quality field leadership.”

Last week, the NASDAQ Stock Market LLC approved Youngevity’s application to have its common stock listed on the NASDAQ Capital Market. Trading on NASDAQ commenced today, June 21, under the ticker symbol “YGYID.”

June 20, 2017

World News

Avon Products Inc. Appoints Miguel Fernandez as Global President

London-based Avon Products Inc. recently announced the appointment of Miguel Fernandez as Global President, with responsibility for commercial business operations, effective August 14, 2017. He will be based at Avon’s headquarters in London.

Fernandez is a seasoned executive with more than 20 years of operating experience, including significant international experience and a proven track record in the direct selling industry. He joins Avon following nearly 10 years at Herbalife Ltd., where he most recently served as Executive Vice President and Managing Director for the Americas and Worldwide Member Operations. Previously at another top direct seller, he served as Senior Vice President and Managing Director of Mexico, and Vice President, Finance & Distributor Operations.

Prior to joining Herbalife, Fernandez was Chief Financial Officer at OCC Mundial and Business Controller for Microsoft in Mexico. His earlier career included roles in investment banking at JPMorgan Chase in New York, and financial management at Procter & Gamble. Fernandez holds a Bachelor of Science in industrial engineering, with honors, from the Monterrey Institute of Technology in Mexico and a Master of Business Administration from Darden School of Business, University of Virginia.

“I am delighted to welcome an executive of Miguel’s caliber to Avon’s leadership team,” said McCoy. “Miguel’s expertise in general management, global sales, marketing and operational excellence will help us accelerate changes in our commercial operations and drive profitable growth.”

Fernandez succeeds John Higson, who will be retiring in September from his role as Avon’s Executive Vice President, Chief Commercial Officer, following 32 years with Avon. “On behalf of the entire Avon team, I would like to thank John for his countless contributions to Avon, and his many years of dedicated service to the Avon Representatives. We wish him all the best in his future endeavors,” said McCoy.

June 19, 2017

U.S. News

Youngevity Approved for Listing on NASDAQ Capital Market

The NASDAQ Stock Market LLC has approved the application for Chula Vista, California-based Youngevity International Inc. to have its common stock listed on the NASDAQ Capital Market.

“I am thrilled to announce our up-listing to the NASDAQ Capital Market,” said Dave Briskie, President and CFO of Youngevity. “From the beginning, we approached this goal to up-list as a marathon and not a sprint. This allowed us to organically meet and satisfy the exchange’s requirements as we grew our business. We view this event as a major cornerstone of our corporate foundation to build upon as we continue to grow Youngevity’s brand and culture.”

Youngevity executives believe the listing on NASDAQ will increase the omni-direct lifestyle company’s visibility and appeal to institutional investors, provide increased liquidity to a larger universe of investors, and ultimately contribute to shareholder value. Trading on NASDAQ will commence on Wednesday, June 21, 2017, under the ticker symbol “YGYID.”

“Youngevity’s listing on the NASDAQ Capital Market is a major corporate milestone and a source of great pride for the Youngevity family of employees, distributors, executives and supporters that have contributed to this moment,” said Steve Wallach, Co-Founder and CEO of Youngevity. “What enhances that sense of pride and accomplishment is that Youngevity attains this listing by executing and delivering on our business plan and our priority to grow shareholder value with minimal dilution. We are happy to say that meeting NASDAQ’s requirements is a culmination of the dedication and hard work of so many throughout the Youngevity family.”

June 16, 2017

U.S. News

Young Living Essential Oils Wins PRSA Silver Anvil Award

Lehi, Utah-based Young Living™ Essential Oils was presented with a 2017 Silver Anvil Award by the Public Relations Society of America (PRSA) during a ceremony held last week in New York. The Silver Anvil Awards are among the most prestigious in the public relations industry and recognize the best of the best in brand communications and public relations.

Young Living took home the award for Events & Observances—Seven or Fewer Days (Consumer Events) for “The Lavender Room.” In December 2016, the wellness company was eager to provide New Yorkers with an opportunity to “take a breather” during the hustle and bustle of the busy holiday season. Through a partnership with leading global public relations firm Ketchum, its agency of record, Young Living developed an essential oil-infused pop-up installation along Fifth Avenue at Union Square in New York City. The Lavender Room—part meditative space and part sampling and pop-up shop—immersed busy New Yorkers in the relaxing bliss of Young Living’s Lavender essential oil and featured a quiet Zen-like room with a forest of more than 5,000 stems of fresh lavender. Passersby were invited inside The Lavender Room to sit for a few moments in peace and relaxation.

“During one of the most wonderful but stressful times of the year, we wanted to invite New Yorkers to take a quiet moment to re-center in this uniquely peaceful space,” said Andrea Neipp, Senior Director of Global Brand Awareness at Young Living Essential Oils. “The installation brought to life the power of pure essential oils through scent, and it created a haven of calm amidst the holiday hustle and bustle of Fifth Avenue to raise brand awareness and share the benefits of Young Living Essential Oils.”

Added Young Living Chief Operating Officer Jared Turner, “Young Living is honored to be recognized for extraordinary communications work among such highly regarded PR campaigns. Our quality commitment doesn’t just apply to our products; it is also reflected in the caliber of talent and expertise among our employees and staff within every department in the company.”

Young Living Essential Oils, which placed No. 22 on the DSN Global 100 ranking with $1 billion in sales for 2016, champions pure essential oils and distillation and continues its passionate commitment to empower individuals to whole-life wellness.

Ketchum is a leading global communications firm with operations in more than 70 countries across six continents. The winner of 19 Cannes Lions and an unprecedented five PRWeek Campaign of the Year Awards, Ketchum partners with clients to deliver strategic programming, game-changing creative and measurable results that build brands and reputations.

June 15, 2017

U.S. News

Le-Vel’s DFT for Weight Management Shatters Sales Records

Le-Vel Brands, the direct selling channel’s first cloud-based company and the creators of Derma Fusion Technology (DFT) and the Thrive Experience, recently introduced the company’s first product focusing primarily on weight management: DFT Duo. Within eight hours of launch, the product generated $7.5 in sales.

DFT Duo offers a dual-application, enhanced formula concentration with greater absorption—a 205 percent concentration increase from Le-Vel’s DFT Ultra—along with a higher lipid metabolism rate and innovative left/right technology for balanced duo release. Its 40 percent larger surface area packs a bigger punch to help users meet nutritional and weight management goals. Worn on both the left and right sides of the body, DFT Duo delivers all-day appetite management and nutritional support, as well as helps increase the metabolism.

“We’re excited to be able to offer a product specifically formulated for weight management,” said Le-Vel Co-Founders and Co-CEOs Jason Camper and Paul Gravette. “DFT Duo is based on a game-changing formula. If people are going to make permanent lifestyle changes, we know that simplicity is absolutely key, which is why DFT Duo, like all of our DFT products, is incredibly easy to use. Our DFT products already have a huge following, so we knew the response to DFT Duo would be great, but this product blew past our expectations right out of the starting gate. It’s our most successful product launch to date, and it’s already changing people’s lives in meaningful ways.”

DFT Duo is intended to be taken as part of a simple three-step system, alongside Thrive Premium Lifestyle Capsules and Thrive Premium Lifestyle Mix. Le-Vel originally introduced Derma Fusion Technology in 2013. It infuses the skin, or derma, with a premium-grade formula of superior ingredients, and with a delivery rate designed to benefit consumers over an extended period of time. In the few years that have followed, Le-Vel has introduced additional DFT products to its Thrive Plus line: DFT Ultra, an enhanced version of Thrive DFT, and Black Label, which offers mood support, among other unique benefits. DFT Duo is for anyone who wants to focus primarily on weight and appetite management.

Le-Vel recently celebrated a milestone: $1 billion in lifetime sales. Founded in 2012 by Camper and Gravette, the Frisco, Texas-based health and wellness company has experienced substantial growth since generating $10 million in revenue in its first full year, 2013. Le-Vel was the recipient of Direct Selling NewsBravo Growth Award in 2016 in recognition of its extraordinary year-over-year growth. The company also was recently named, for the second year in a row, to the DSN Global 100 ranking of the top revenue-generating companies in the direct selling industry.

June 15, 2017

U.S. News

Herbalife Nutrition Announces New Appointments to Corporate Leadership Team

Los-Angeles-based Herbalife Nutrition recently announced the appointment of Frank Lamberti to the role of Executive Vice President and Managing Director, The Americas and Worldwide Marketing.

Lamberti succeeds Miguel Angel Fernandez. In his new role, Lamberti will lead global marketing, and will work closely with Herbalife distributors and their customers across a region that includes the United States, Canada, South and Central America and Mexico.

Lamberti has been with Herbalife since 2005. He was formerly the Senior Vice President of Strategic Business Initiatives, responsible for overseeing several key initiatives for the company, including oversight of the FTC implementation. Previously, he held several leadership positions with the company, including Senior Vice President and Managing Director, North Asia; and Worldwide Head of Financial Planning and Analysis, Strategic Planning, Distributor Ethics and Compliance and Investor Relations. Prior to joining Herbalife, Lamberti held management roles in finance, consumer services and accounting at Sunbeam Corporation, DHL and Rexall Sundown, among others.

“For more than 12 years, Frank has made a positive impact on Herbalife Nutrition, assuming broader and increasingly more challenging leadership roles covering many key areas of our business,” said Richard P. Goudis, Herbalife CEO. “As a result, he is respected by our distributor leaders, and is highly regarded by our employees and executive team.”

The company also announced the recent appointment of Richard Werber to Acting General Counsel while the company conducts a search for the role. The previous general counsel, Mark Friedman, is now working on special projects for the company.

As Acting General Counsel of Herbalife, Werber has global responsibility for all legal departments for the company’s business around the world. He has over 30 years of legal experience and served as the Vice President, General Counsel and Secretary of Rexall Sundown Inc., a multinational manufacturer of nutritional supplements and sports nutrition products. Prior to Rexall, he was a partner in several law firms, including Holland & Knight LLP.

“Having worked together in the past, I value Rick’s legal expertise and am happy to be able to access his numerous talents once again,” said Goudis.

June 14, 2017

U.S. News

USANA CEO Kevin Guest Elected to DSA Board of Directors

Kevin Guest, CEO of Salt Lake City, Utah-based USANA, was elected to the Direct Selling Association (DSA) Board of Directors during the Association’s 2017 Annual Meeting in Orlando. Guest will serve a one-year term, helping the organization to achieve its goals of promoting the direct selling channel as well as ensuring that member companies maintain the highest level of business ethics.

“DSA is pleased that Kevin has accepted this position on the board of directors,” said Joseph N. Mariano, DSA President. “Kevin’s dedication to and enthusiasm for direct selling will prove a significant asset not only to the board but for the entire Association and membership. I look forward to working more closely with Kevin on DSA’s strategic initiatives moving forward.”

Guest has led in a variety of roles within USANA for more than 24 years, including Executive Director of Media and Events, Vice President of Marketing, Chief Marketing Officer and President of North America. In August 2015, he was named Co-CEO with Dave Wentz; in November 2016, when Wentz stepped down, Guest became sole CEO of the company. In addition, he was recently nominated to serve on the company’s Board of Directors.

“I am excited to serve an organization, which plays such a crucial role in promoting the innovation and integrity within the direct selling industry,” said Guest. “The DSA encompasses a wide variety of companies, each offering exceptional products and services to millions of independent distributors and their customers throughout the United States. I’m honored to have the opportunity to serve the DSA as it works toward furthering its initiatives throughout our great industry.”

The Direct Selling Association is a national trade association of more than 200 leading companies that offer entrepreneurial opportunities to independent sellers to market and sell products and services, typically outside of a fixed retail establishment. More than 20 million Americans are involved in direct selling in every state, congressional district and community in the United States.

June 13, 2017

U.S. News

Viridian Partners with NAUP for Commercial Energy Program

Norwalk, Connecticut-based Viridian International Management, a leading network marketing company, recently announced the expansion of its large commercial program with a new partnership with North American Utility Partners (NAUP). Together, Viridian and NAUP will be able to give large commercial customers more energy choices to enhance corporate sustainability initiatives.

Viridian’s network of more than 22,000 Independent Associates can now offer large commercial customers electricity and natural gas rate quotes through the Viridian Commercial Energy Program, powered by NAUP. NAUP is a premier, full-service energy advisory and consulting firm providing energy procurement and brokering to commercial customers nationwide.

“Partnering with NAUP is just another example of how we’ve been focused on expanding and diversifying responsible offerings for customers,” said Viridian CEO Paul Booth. “Now, large commercial clients can view energy products and rates side by side, empowering them to choose the supplier that best fits their individual needs.”

Viridian has made a number of development announcements in the past year, including its decision to become a private entity last July. Soon after, it declared international expansion with its launch of Viridian Australia. In addition, Viridian announced a new venture into the $8 trillion travel industry with the unveiling of its responsible booking platform, Travel Light, in both the U.S. and Australia in late 2016 and early 2017, respectively. Travel Light offers affordable travel options that are also zero-carbon—Viridian purchases carbon offsets to counterbalance 100 percent of the emissions created by every activity or service booked through the site.

Viridian plans to continue strategic partnerships that will allow Viridian Associates to build lucrative businesses and offer customers around the world more sustainable lifestyle choices.

June 13, 2017

World News

L’Oreal to Sell The Body Shop to Natura in $1.1B Deal

Sao Paolo, Brazil-based direct seller Natura Cosmeticos SA is currently in exclusive talks with L’Oreal SA to buy The Body Shop, the French cosmetics giant’s lotions and soaps retailer that was founded by British entrepreneur Anita Roddick in 1976. The deal is reported to be for US$1.1 billion (€1 billion euros).

In February, L’Oreal confirmed it was considering selling The Body Shop, which it bought for $833 million (£652 million pounds) in 2006. Sale of The Body Shop, which has more than 3,000 stores in 66 countries, immediately attracted a wide range of bidders. Last month it was announced that Natura was among the final bidders, joining private equity suitors CVC Capital Partners, Advent International Corp. and Investindustrial Advisors SpA as the firms vying for the 40-year-old chain. Last Friday, L’Oreal said it had received a firm offer from Natura, and that the proposed deal put an enterprise value (equity plus debt) of €1 billion on the business.

Roddick was innovative in the mass marketing of cosmetics made without animal testing and with natural ingredients, and The Body Shop earned the reputation as an eco-friendly company. However, L’Oreal has seen profits decline due to increased competition from newcomers offering similar products based on natural ingredients with no animal testing. Operating profit dropped 38 percent to €33.8 million last year.

Natura, the largest cosmetics company in Brazil and the ninth largest direct seller in the world, is recognized as an eco-friendly company as well. Jean-Paul Agon, Chair and Chief Executive Officer of L’Oreal, said Natura was “the best new owner we could imagine to nurture the brand DNA around naturality and ethics.”

Added Guilherme Leal, Co-chair of Natura’s Board of Directors, “Natura and The Body Shop have always walked in parallel, and today their paths meet. The complementarity of our international footprints, the sustainable use of biodiversity in our products, a belief of ethics in management and fair relations with communities, and a high degree of innovation constitute the pillars of the journey on which we are now embarking.”

In acquiring The Body Shop, Natura bolsters its international expansion. In 2013 the company purchased Australia’s Aesop for US$70 million. Aesop has 261 locations in 20 countries.

The deal should be finalized later this year.

June 12, 2017

U.S. News

Youngevity Adds Kevin Allodi and Paul Sallwasser to Its Board of Directors

In continued preparation for its proposed listing on the NASDAQ Capital Market, Chula Vista, California-based Youngevity International has increased the breadth of experience in its Board of Directors by adding Kevin Allodi and Paul Sallwasser. Both new board members’ insights from careers with exchange-traded publicly held companies are expected to be vital as Youngevity prepares for its uplisting.

The board additions come after the recent organizational changes to streamline operations and focus key subsidiaries on attaining profitability as the company prepares for its uplisting. Their appointments increase the number of independent directors serving on the board to four members, who now represent a majority of the Board.

Allodi is a veteran of the communications and mobile software industry. He served as President/Corporate Vice President of Internet billing & customer management startup Portal Software, Inc., aiding in its successful IPO in 1999 and helping Portal achieve peak annual sales of $268 million and a market cap of $6 billion. Portal was ultimately sold to Oracle Corporation in 2006. Allodi’s broad experience in various vertical markets, serving as an advisory board member for several portfolio companies, and his expertise in media and raising capital should be an asset to the Board, according to Steve Wallach, CEO of Youngevity.

“Kevin Allodi’s broad leadership experience in multiple markets, combined with his operational and technologically based experience across several verticals, provides the hands-on practices that we expect will be instrumental to our Board,” said Wallach.

Allodi is currently CEO and Co-Founder of Philo Broadcasting, a media holding company that includes award-winning digital content studio Philo Media and a broadcast television production company Backyard Productions. Allodi also serves as a Managing Partner of KBA Holdings, LLC, a private equity investment firm active in the digital media, hi-tech, alternative energy and bio-tech industries, as well as a partner, limited partner, director and/or advisory board member to several portfolio companies, including G2T3V LLC, uBid, LynxIT Solutions, Ridge Partners LLC, Social Ventures Partners Chicago. He is also on the Board of Directors of FNBC Bank & Trust.

“I have been impressed with Youngevity’s business model and intrigued by what has been accomplished both in their coffee division and their direct selling division over the last several years,” said Allodi. “I feel Youngevity will benefit greatly from an uplisting to NASDAQ Capital Markets, and I look forward to the contributions I can make as a member of their Board of Directors.”

Sallwasser, a certified CPA, joined the audit staff of Ernst & Young LLP in 1976 and remained with Ernst & Young LLP for 38 years. He served a broad range of clients primarily in the healthcare and biotechnology industries, of which a significant number were SEC registrants. He became a partner of Ernst & Young in 1988 and retired in 2011. Sallwasser served in the national office as a member of the Quality and Regulatory Matters Group working with regulators and the Public Company Accounting Oversight Board (PCAOB).

“Paul Sallwasser’s impressive history with Ernst & Young, including his vast experience in corporate governance and his experience with the PCAOB, should resonate strongly with all our shareholders,” said Wallach.

Sallwasser also qualifies as an “audit committee financial expert,” as defined by the rules of the SEC. His professional background and his corporate governance knowledge serve as the basis for his position on the Board as well as on the audit committee.

“I appreciate the opportunity to join the outstanding members of this Board and look forward to helping to guide the Company in the next stage of its growth and development as a NASDAQ listed registrant,” said Sallwasser.

Youngevity is an omni-direct lifestyle company offering a hybrid of the direct selling business model, which also offers e-commerce and the power of social selling. It was founded upon the pioneering principles of Dr. Joel Wallach.

June 12, 2017

U.S. News

New LegalShield Law Index Data Helps Reveal Economic Trends

LegalShield, the Ada, Oklahoma-based provider of legal services, recently launched the LegalShield Law Index, which provides a forward-looking snapshot of the economic and financial status of U.S. households and small businesses.

The Index is made up of five indices, including the LegalShield Consumer Financial Stress Index, LegalShield Housing Activity Index, LegalShield Bankruptcy Index, LegalShield Foreclosure Index and the LegalShield Real Estate Index. Each index relies on LegalShield’s unique and proprietary database of actual member demand for and usage of legal services to predict the health of the U.S. economy.

“The LegalShield Law Index is generated from actual consumer and business demand for various legal services provided by our closed panel of dedicated law firms covering all 50 states,” said James Rosseau, LegalShield’s Chief Commercial Officer. “Each index is a leading economic indicator and is released in a more timely manner than traditional economic indices. Our index predicts economic activity that represents more than 70 percent of the Gross Domestic Product of the United States. The LegalShield Law Index provides actionable intelligence about the direction of the U.S. economy in the mid- to near-term.”

The five separate measures that comprise the LegalShield Law Index together provide a leading indicator of the economic and financial status of American households and small businesses. The indices closely track a handful of key economic indicators, such as the Consumer Confidence Index (developed by the Conference Board), Housing Starts (reported by the U.S. Census Bureau), and Foreclosure Starts (reported by the Mortgage Bankers Association). Each LegalShield index has undergone a battery of statistical tests overseen by a Ph.D. economist to validate its relationship to an existing economic indicator that sheds light on the health and direction of the U.S. economy.

The key predictive takeaways from the first public release of data, through May 2017, are as follows:

  • Consumer confidence may continue to ease in the months ahead, but will likely remain strong by historical standards.
  • Housing starts, which have risen at a stubbornly slow pace since 2012 and remain well below pre-recession levels, should continue to improve slowly in the months ahead.
  • Bankruptcy filings should remain subdued in the near term. However, elevated levels of household debt are worth keeping an eye on, as they could lead to upward pressure on bankruptcy filings in the future.
  • Foreclosures should remain subdued in the short term, but may begin to rise in the second half of the year.
  • Existing home sales should continue to improve slowly in the months ahead.

The LegalShield Law Index tracks the demand for different types of legal services for the various areas of law over the past 15-plus years. Each time a LegalShield partner law firm receives a request from a LegalShield member, the request is logged as an “intake” within one of roughly 70 unique areas of law (e.g., real estate, criminal, bankruptcy), depending on the nature of the legal need.

“We are excited to share our forward-looking data about the U.S. economy, based on the actual legal needs of our members and the work of our provider law firms—data that covers more than one-and-a-half decades of activity,” said Rosseau. “When our members contact their LegalShield provider law firm, we record the area of law. In aggregate, our index foreshadows economic activity based on actual legal events in the lives of individuals, families and small businesses.”

LegalShield will be releasing the Index monthly, on the sixth business day of each month. Today the company is releasing May data, along with an assessment of what the data suggest about the health and direction of the U.S. economy. For access to the economic assessment, click here.

In March, LegalShield added Launch by LegalShield to its lineup of legal and identity theft services to help entrepreneurs navigate the legal side of starting a business. Launch draws upon LegalShield’s network of law firms to help entrepreneurs form a business entity and file the necessary paperwork.

June 09, 2017

U.S. News

U.S. DSA Announces 2017 Award Winners

The U.S. Direct Selling Association (DSA) held its 2017 Annual Meeting earlier this week in Orlando, Florida. During the Awards Gala, DSA announced the recipients of its prestigious 2017 DSA Awards, which honor the best of direct selling by recognizing member companies for programs that have empowered independent direct sellers and fueled business processes. The 2017 category award winners were:

  • Excellence in Salesforce Development Award: Scentsy Inc.
  • Marketing and Sales Campaign Award: New Avon LLC
  • Product Innovation Award: Ruby Ribbon Inc.
  • Rising Star Award: viaONEHOPE
  • Technology Innovation Award: The Pampered Chef
  • Vision for Tomorrow Award: Damsel in Defense
  • Partnership Award: Momentum Factor

“DSA congratulates all our 2017 DSA awards winners for their outstanding accomplishments and contributions to direct selling,” said DSA President Joseph N. Mariano. “These programs are incredible examples of the vitality, creativity and innovation that propel our industry forward, every day.”

DSA Top 20

The DSA also announced the 2017 Top 20 member companies, based on net sales in the United States for 2016. Two companies, ACN Inc. and Younique, were new to the list.

“The DSA Top 20 member companies truly are leaders in our industry and should be applauded both for the opportunities they offer millions of Americans and for the significant contributions they make to the economy,” said Mariano. “It is my very great honor to congratulate each DSA Top 20 member company, not only for this prestigious recognition, but for the devotion they show day in and day out to their customers and salespeople by virtue of their membership in DSA. They set an example our entire business model should be proud to follow.”

The Top 20 companies were:

  • ACN, Inc.
  • AdvoCare International LP
  • Ambit Energy
  • Amway
  • Arbonne International LLC
  • Herbalife
  • Isagenix International
  • Mary Kay Inc.
  • Melaleuca Inc.
  • Nerium International
  • New Avon LLC
  • Nu Skin Enterprises
  • Scentsy Inc.
  • Stream Gas & Electric, Ltd. DBA Stream
  • Take Shape for Life Inc. (Medifast)
  • Team Beachbody
  • The Juice Plus+ Company LLC
  • Thirty-One Gifts
  • Young Living
  • Younique

Truman Hunt Inducted into Hall of Fame

During the gala, DSA inducted Nu Skin Enterprises Inc.’s Truman Hunt into the Direct Selling Association Hall of Fame. Hunt received the industry’s highest honor in recognition of his significant years of service and considerable contributions to the DSA, the World Federation of Direct Selling Associations (WFDSA) and the direct selling industry.

“Truman Hunt is one of the true gentlemen of the direct selling industry,” said Mariano. “Through decades of working together, I’ve come to respect not only his intellect, fairness and talent, but also his humanity. It is a great honor to be able to see him receive the Direct Selling Association Hall of Fame Award.”

Hunt served as President and CEO of Nu Skin from 2003 to 2017. Very active in the industry, Hunt has served on the DSA Board of Directors, including as Chairman from 2014 to 2015. He also was Chairman of the WFDSA from 2005 to 2008 and most recently served that organization as Secretary.

The Direct Selling Association is the national trade association for companies that offer entrepreneurial opportunities to independent sellers to market and sell products and services. More than 20 million Americans are involved in direct selling in every state, congressional district and community in the United States.

June 09, 2017

U.S. News

DSA Releases 2017 Growth & Outlook Topline Figures

The U.S. Direct Selling Association (DSA) released topline figures from its 2017 Growth & Outlook report during its recent Annual Meeting held in Orlando, Florida. Prior to naming the DSA Top 20 member companies, based on net sales in the United States for 2016, the DSA noted that the success of the DSA Top 20 is a testament to the vitality of the direct selling business model.

  • A record 20.5 million people were involved in direct selling in the United States in 2016, a 1.5 percent increase from the previous year—5.3 million are building independent businesses as a direct seller, and 15.2 million are receiving a discount on products and services
  • Of the 5.3 million direct sellers, 800,000 are full-time and 4.5 million are part-time.
  • Estimated direct retail sales of $35.54 billion in 2016 is the second-highest in direct selling history.
  • The largest percentage (26 percent) of those involved in direct selling are between 35 and 44 years old; those 44 to 54 years old are the next largest group, at 23.3 percent, followed by those 25 to 34 years old at 21.4 percent.
  • 74 percent of people involved in direct selling are women. Since 2014, 0.4 percent more men have become involved in the industry.
  • Ethnic and racial demographics: Americans involved in direct selling include 78 percent non-Hispanic and 22 percent Hispanic; the largest percentage by race is White/Caucasian Americans, at 84 percent, with Black/African-Americans at 9 percent.
  • Wellness products continue to lead product categories, followed by services and other, home & family care/durables, personal care, clothing & accessories, and leisure/educational.
  • By region, the South had the largest percentage of sales with 37 percent, followed by the West (25.7 percent), the Midwest (20.5 percent) and the Northeast (16.3 percent).

To see the DSA infographic, Direct Selling in 2016: An Overview, click here.

The Direct Selling Association is the national trade association for companies that offer entrepreneurial opportunities to independent sellers to market and sell products and services. More than 20 million Americans are involved in direct selling in every state, congressional district and community in the United States.

June 08, 2017

Event Production

Mills James


June 08, 2017

U.S. News

Jeunesse Honored with 9 Telly Awards

Global youth enhancement company Jeunesse Global was recently honored for excellence in video production in the 38th annual Telly Awards, bringing home nine trophies for music, visual effects and sound design.

The Lake Mary, Florida-based company won a Silver Telly, the competition’s highest honor, for use of music in the marketing video M1ND™ An Ounce of Genius. In addition, the company won eight Bronze Telly awards for:

  • M1ND An Ounce of Genius — Health and Wellness category
  • M1ND An Ounce of Genius — Visual Effects
  • NV™ Be the Envy by Jeunesse — Beauty/Cosmetics Marketing category
  • NV Easy Airbrush Foundation Guide — How-To/DIY category
  • Instantly Ageless™ by Jeunesse — Beauty/Cosmetics Marketing category
  • Jeunesse Kids™ Bringing Hope Kenya — Social Responsibility category
  • Jeunesse University Rome event recap — Event Marketing category
  • What Does Your Day Look Like? Commercial — Sound Design

“It is an honor to receive recognition of our work in this respected competition,” said Jeunesse’s Chief Visionary Officer Scott Lewis. “These awards help to confirm that we are on track with our goal to provide Jeunesse Distributors with creative and effective videos that clearly communicate our messaging with engaging visuals, sound and content. Telling the Jeunesse story through video has always been an important part of our marketing strategy, and providing our Jeunesse Distributors with effective tools is always a top priority. We are humbled to have earned a total of 50 Telly Awards since 2014 for video and branded content work.”

The Telly is the premier award honoring outstanding television commercials and programs, the finest video and film productions and online commercials, video and films. Winners represent the best work of the most respected advertising agencies, production companies, television stations, cable operators and corporate video departments in the world, including Microsoft, MLB, NBC, Time Warner, ESPN and Bloomberg. Less than 10 percent of 13,000 entries this year earned Silver awards, while approximately 25 percent received Bronze awards.

June 08, 2017

World News

USANA Makes Global Impact During Inaugural World Service Week

Photo: A USANA Associate visits with villagers in Uganda during World Service Week, May 20-27.


The USANA True Health Foundation (THF) celebrated its first-ever World Service Week during the week of May 20–27. Throughout the week, USANA Associates, employees and their families, as well as the general public, volunteered thousands of hours of service.

“We are thrilled at the response we received from our entire USANA family throughout the globe during our very first World Service Week,” said Brian Paul, THF's Executive Director of Communications. “The impact we were able to make in just seven short days of service is truly remarkable. We look forward to continuing this initiative in the future, and continue to serve our local communities and those in need all year.”

During World Service Week, THF traveled with nearly 20 USANA Associates to Uganda, where they spent six days serving those living in villages and inner-cities near the Kampala region. While in Uganda, participants painted a local school, volunteered at the Wentz Medical Center as well as donated food and other service and aid to those in need.

USANA employees around the globe served their local communities during World Service Week, including:

  • United States: Served dinner to those in need at St. Vincent de Paul Homeless Resource Center; donated more than 100 blankets to local hospitals; cleaned up the grounds at the Children's Justice Center; cleaned living spaces and cared for animals at Utah Animal Adoption Center; made toy cars for children in need at Tiny Tim's Foundation for Kids; prepared and served lunch for families residing at the Ronald McDonald Family Room at Primary Children's Hospital; and prepared food packs with the Children's Hunger Fund in Dallas, Los Angeles and Chicago.

  • Mexico: Provided food and hygiene products to San Judas Tadeo nursing home.

  • Canada: Packed more than 5,300 pounds of food for local food banks.

  • China: Collected and donated clothing, books, computers and USANA products to the School of Migrant Laborers' Children.

  • Australia: Participated in a shore cleanup at Meadowbank Wharf and donated over 900 meals to Foodbank.

  • Hong Kong: Served the elderly at St. James Settlement and donated blood to the Red Cross.

  • Philippines: Collected food packs and coloring books for donation in the Laguna Province; cleaned and renovated Oplan Brigada Eskwela school; and fed and served the poor at Duterte's Kitchen Feeding.

  • Singapore: Collected food, clothing and toys to donate to local charity centers.

  • Taiwan: Cleaned and donated food items and USANA products to Bethany Children's Home.

The USANA True Health Foundation is in 20 countries around the world. Its mission is to ensure that impoverished children and families reach their fullest potential by providing food and nutrition. The Foundation is dedicated to disaster relief, working aggressively to ensure immediate help and resources are provided to those in desperate need. Since 2012, THF has donated $12.1 million and 15.1 million meals.

June 07, 2017

U.S. News

Youngevity Announces Reverse Stock Split; Prepares for NASDAQ Listing

Youngevity International, the Chula Vista, Calif.-based omni-direct lifestyle company, has filed a Certificate of Amendment to its Certificate of Incorporation to implement a 1 for 20 reverse stock split of the company’s authorized, issued and outstanding common stock in preparation for its proposed listing of its common stock on the NASDAQ Capital Market.

The reverse split—which was approved by the company’s stockholders on February 23, 2017, followed by a unanimous vote by the Board of Directors—will become effective with the Financial Industry Regulatory Industry (FINRA), and in the marketplace today, June 7, whereupon the shares will begin trading on a split adjusted basis under the symbol “YGYID,” with a “D” to be added for 20 trading days to signify that the reverse split has occurred. After that time, the company’s ticker symbol will once again be “YGYI.” Youngevity’s transfer agent, Fidelity Transfer, will act as exchange agent for the reverse split. Youngevity stockholders will receive forms and notices to exchange their existing shares for new shares from the exchange agent or their brokers.

If approved, the NASDAQ listing is expected to facilitate greater liquidity in the stock as well as enable broader market access to the investment community as many participants have been unable to purchase stock listed on the OTCQX, where Youngevity is currently listed. The company believes it will meet the requirements for listing its common stock on the NASDAQ Capital Market; however, before any listing of the common stock on the NASDAQ Capital Market could occur, NASDAQ will need to approve Youngevity’s application for listing after the reverse stock split is completed. There can be no assurance that the company’s application will be approved.

“Over the years our philosophy was to build the business of Youngevity, and the value built would be reflected by our share price,” said Steve Wallach, Co-Founder and CEO of Youngevity. “The NASDAQ up-listing is expected to advance that opportunity by positioning Youngevity with a much wider spectrum of investors. Potential investors who were unable to consider participation in an investment in Youngevity will now have the opportunity to do so. We strongly believe that up-listing to the NASDAQ truly creates an opportunity that, up until now, has not been available for many.”

Youngevity President and CFO Dave Briskie added, “It has always been our vision to list Youngevity on a major exchange. We are extremely gratified to execute this reverse split in anticipation of an exciting transition to the NASDAQ Capital Markets Exchange. We believe that listing on the NASDAQ is pivotal for attracting a larger and more diverse shareholder base going forward. At this time, we would also like to express our gratitude to current shareholders who have exhibited loyalty and patience as Youngevity has undertaken this process.”

June 07, 2017

U.S. News

Mary Kay: 25 Years of Celebrating Great Minds

Mary Kay Inc., in partnership with the Academy of Marketing Science (AMS), is celebrating 25 years of supporting great minds through the AMS Mary Kay Doctoral Dissertation Award.

For more than two decades, the iconic Dallas, Texas-based beauty company has presented the AMS Mary Kay Doctoral Dissertation Award to doctoral candidates in marketing who have defended their dissertation proposals. The company recognizes a winner and two runners up each year at the AMS Annual Conference. At this year’s conference, held at Hotel del Coronado in Coronado Island, California, Anita Pansari from Georgia State University was awarded the AMS Mary Kay Doctoral Dissertation Award. Jeeweon Brianna Choi from Michigan State University was awarded the AMS Mary Kay Doctoral Dissertation Proposal Award.

“As a leading direct selling company with a presence in nearly 40 countries and more than 53 years in business, we have been honored to support doctoral students through the AMS Mary Kay Doctoral Dissertation Award for 25 years now,” said Kerry Tassopoulos, Mary Kay Vice President of Public Affairs. “By providing mentorship, networking opportunities with our top executives and monetary awards, we hope to inspire great minds in the academic world.”

Doctoral students from programs at any recognized university, college of higher learning, business school or management school worldwide are eligible for the AMS Mary Kay Doctoral Dissertation Award. Competition finalists have the opportunity each year to network with Mary Kay top executives.

“An important aspect of academic excellence is to establish connections to real-world examples through networking with corporate executives and other academics,” said Adilson Borges, President of The Academy of Marketing Science. “The AMS Mary Kay Doctoral Dissertation Award continues to give doctoral students that advantage as they work to complete their journey of obtaining doctorate degrees and becoming successful professors in communities across the nation and around the world.”

The Academy of Marketing Science is a non-profit, international, scholarly, professional organization. It is dedicated to promoting high standards and excellence in the creation and dissemination of marketing knowledge and the furtherance of marketing practice through a role of leadership within the discipline of marketing around the world. The Academy is committed to the highest ethical standards and collegiality in the pursuit of this mission.

June 06, 2017

U.S. News

Nerium to Sponsor Big Brothers, Big Sisters National Conference

Addison, Texas-based Nerium International and the Nerium Ripple Foundation will be a Gold Sponsor for this year’s Big Brothers Big Sisters of America’s (BBBSA) National Conference, which will be held June 25–29 in San Diego, California. This will be the fifth consecutive year that the global relationship marketing company has served as an official sponsor of the conference.

The annual conference is BBBSA’s weeklong event where BBBSA affiliates come together from across the country to learn, share best practices and inspire one another. The theme of this year’s conference is Powering BIG Futures. The Opening General Session Luncheon is sponsored by Nerium.

BBBSA was founded in 1904. The organization’s work has provided much-needed guidance for America’s at-risk youth, young girls and boys, many of whom live in single-parent households or face academic or social challenges. There are more than 26,000 young people on waiting lists to be matched with a Big Brother or Big Sister.

Since their partnership began in 2012, Nerium has contributed more than $4.2 million to BBBSA. The company chose the organization as its key philanthropic partner because Nerium believes in the power of relationships and personal development and also encourages the spirit of entrepreneurship with its Independent Brand Partners.

“Big Brothers Big Sisters helps at-risk youth to focus on their goals and dream big, and empowers them to become all they can be,” said Nerium Ripple Foundation President and Chair Amber Olson Rourke. “The organization is in complete alignment with what we stand for at Nerium International with our philosophy of Making People Better.”

“Big Brothers Big Sisters of America is grateful for Nerium International’s commitment to our mission and support of our National Conference,” said Pam Iorio, Big Brothers Big Sisters of America President and CEO. “The conference is a highlight of the year for our affiliates—a time for celebration, inspiration and training for more than 600 affiliate leaders.”

In January 2016 Nerium was recognized by BBBSA as the organization’s largest corporate fundraising partner. During the previous year, the company, through its charitable arm, the Nerium Ripple Foundation, donated $1.3 million to BBBSA. In June 2015, Nerium was awarded the BBBSA Top Partnership Award.

June 06, 2017

U.S. News

U.S. Public Companies: 3-Year, Q1 Comparisons

With most of the U.S. public direct selling companies reporting their financial results for the first quarter of 2017, we thought it a good time to review their numbers over the past few years—a look at three-year annual growth, as well as a comparison of first-quarter financial results for 2014–2016 and Q1 2017.

This report includes 13 companies: Avon, Herbalife, LifeVantage, Mannatech, Medifast (Take Shape For Life), Natural Health Trends, Nature’s Sunshine, Nu Skin, Primerica, Reliv, Tupperware, USANA and Youngevity. (As of this story, Educational Development Corp., ForeverGreen, JRJR Networks and RBC Life Sciences had not submitted financial reports for the first quarter of 2017.)

Of the 13 companies, only five experienced positive growth over the three-year period from 2014 to 2016: USANA (26.5 percent), Youngevity (21.4 percent), Primerica (13.4 percent), Take Shape For Life (6.8 percent) and Natural Health Trends, which saw revenue grow 130.9 percent over that time.

Note that while the chart lists Avon with negative growth during that period, at the end of 2015 Avon Products Inc. sold its North America business to Cerberus Capital Management. The resulting company, New Avon, is now private.

With the exception of Reliv, all of these companies placed on Direct Selling NewsGlobal 100 list of the top direct selling companies in the world, which was announced in April. 

  • Avon (No. 2)
  • Herbalife (No. 3)
  • Tupperware (No. 10)
  • Nu Skin (No. 11)
  • Primerica (No. 12)
  • USANA (No. 20)
  • Nature’s Sunshine (No. 50)
  • Natural Health Trends (No. 54)
  • Medifast (Take Shape For Life) (No. 65)
  • LifeVantage (No. 68)
  • Mannatech (No. 73)
  • Youngevity (No. 76)

 

ANNUAL

 

QUARTERLY

 

2014

2015

2016

 

3-Year

Q1 2014

Q1 2015

Q1 2016

Q1 2017

   Avon

$7.64 billion

$6.16 billion

$5.71 billion

 

$2.18 billion

$1.55 billion

$1.30 billion

$1.33 billion

 

 

-19.3

-7.3%

-25.2%

 

-28.9%

-16.1%

2.3%

   Herbalife

$4.81 billion

$4.47 billion

$4.48 billion

 

$1.3 billion

$1.1 billion

$1.101 billion

$1.102 billion

 

 

-7.0%

0.2%

-6.8%

 

-15.3%

1.0%

1.0%

   LifeVantage

$214.0 million

$190.3 million

$206.5 million

 

$55.1 million

$45.2 million

$56.2 million

$45.0 million*

 

 

-11.0%

8.5%

-3.5%

 

-17.9%

24.4%

-19.9

   Mannatech

$190.1

$180.26 million

$180.30 million

 

$43.0 million

$44.4 million

$40.7 million 

$40.6 million

 

 

-5.17%

0.2%

-5.15%

 

3.25%

-8.3%

-0.2%

   Medifast (Take    Shape For Life)

$208.2 million

$202.1 million

$222.4 million

 

$57.0 million

$52.1 million

$56.7 million

$58.0 million

 

 

-2.9%

10.0%

6.8%

 

-8.6%

8.8%

2.3%

   Natural Health           Trends

$124.6 million

$264.9 million

$287.7 million

 

$23.2 million

$40.7 million

$74.3 million

$59.9 million

 

 

112.6%

8.6%

130.9%

 

75.4%

82.5%

-19.4%

   Nature’s Sunshine

$366.4 million

$324.7 million

$341.2 million

 

$93.5%

$83.9 million

$82.4 million

$83.1 million

 

 

-11.4%

5.1%

-6.8%

 

-10.3%

-1.8%

0.8%

   Nu Skin

$2.569 billion

$2.247 billion

$2.208 billion

 

$671.1 million

$543.3 million

$471.8 million

$499.1 million

 

 

-12.5%

-1.7%

-14.0%

 

-19.0%

-13.1%

5.7%

   Primerica

$1.34 billion

$1.41 billion

$1.52 billion

 

$324.3 million

$345.1 million

$363.0 million

$405.2 million

 

 

5.2%

7.8%

13.4%

 

6.4%

5.2%

11.6%

   Reliv

$57.3 million

$51.7 million

$45.5 million

 

$14.5 million

$14.8 million

$13.0 million

$12.8 million

 

 

-9.7%

-11.9%

-20.5

 

2.0%

-12.1%

-1.5%

   Tupperware

$2.606 billion

$2.283 billion

$2.213 billion

 

$663 million

$582 million

$525.7 million

$554.8 million

 

 

-12.4%

-3.0%

-15.0%

 

-12.2%

-9.7%

5.5%

   USANA

$790.5 million

$918 .5 million

$1.006 billion

 

$182.4 million

$219.4 million

$240.4 million 

$255.3 million

 

 

16.2%

8.88%

26.5%

 

20.3%

9.6%

6.2%

   Youngevity

$134.0 million

$156.6 million

$162.7 million

 

$26.4 million

$36.8 million

$38.2 million

$38.7 million

 

 

16.8%

3.9%

21.4%

 

39.4%

3.8%

1.4%

*LifeVantage fiscal year runs July to June.

June 02, 2017

U.S. News

pawTree Receives $7 Million Growth Investment from Private Investors

When Roger Morgan founded pawTree, he thought the combination of direct sales and custom pet nutrition would “turn the pet products market on its head.” Apparently, there are others who believe the same.

The Southlake, Texas-based direct seller of holistic pet food and supplements recently announced it has received a $7 million growth investment from private investors. Although exact terms of the deal were not disclosed, the investment capital will be used to further accelerate the growth and expansion of pawTree nationally.

“We make a difference in the lives of pets and their people, which is at the heart of our vision to create a world filled with unconditional love where pets and their people thrive,” said Morgan, who is the company’s CEO.

Since launching in 2014, pawTree has more than doubled each year, making it one of the fastest-growing brands in pet nutrition. pawTree offers natural pet food, pet treats, holistic supplements and more for both dogs and cats. Products are sold exclusively through a group of nearly 1,500 “petPros,” or independent reps. The petPros simply share the pawTree products with others and earn residual commissions when people go to the pawTree site and buy. “Anyone with a passion for pets can join as a petPro and get paid commissions,” said Morgan.

In 2015, the company earned 4.5 stars by the Dog Food Advisor, a well-known online source providing third-party reviews of dog food. In 2016, pawTree expanded with the introduction of nutrition, health, wellness and accessory products for cats.

June 02, 2017

U.S. News

Thirty-One Gifts Offers HERO Personalization

Thirty-One Gifts, the Columbus, Ohio-based direct seller of handbags and accessories, recently announced that it is offering a new design to recognize the heroes in our lives. A special personalization option on company products features the word “HERO.” An emblem can be added representing military, police, fire, EMT and everyday heroes, as well as American and Canadian flags, which may also be used individually.

The HERO personalization option is part of the company’s Hero Campaign. Thirty-One is encouraging use of the hashtag #CelebrateHeroes, and is inspiring people to recognize their everyday heroes and share their stories on social media. The release of the new option coincides with holidays and other national recognitions, including Military Appreciation Month, Memorial Day, International Firefighters Day, National Police Week and Independence Day.

In recognition of the first responders in its hometown, Thirty-One delivered totes full of treats to all 58 police and fire stations in Columbus, Ohio.

Thirty-One has published a video on YouTube celebrating heroes titled “Who’s Your Hero?” It is available here. The video features children and adults celebrating their personal heroes: a teacher, firefighter, father and mother, military and coach.

Thirty-One Gifts is one of the world’s largest direct-selling companies, and offers purses, wallets, totes, home organization solutions and décor, thermal bags, jewelry and more. The new HERO personalization is available on most of its products, including pillows. Products are sold by independent sales consultants throughout the U.S. and Canada.

The company is dedicated to celebrating and supporting families. In addition to the HERO recognition, every product purchased from Thirty-One goes toward supporting nonprofit organizations through the company’s philanthropic initiative, Thirty-One Gives. This year, Thirty-One Gives will donate approximately 5 percent of net total sales in product and cash to support nonprofit partner organizations with a shared mission to support girls, women and families. To date the company has donated more than $100 million in product and cash to nonprofit organizations that share its mission.

Thirty-One has built a strong culture of corporate collaboration and field support. In our May issue, Direct Selling News spoke with Founder, President and CEO Cindy Monroe on the evolution of Thirty-One and recent steps she and the leadership team have taken to strengthen the business.

June 01, 2017

DSN Global 100

2017 Global 100, By the Numbers


June 01, 2017

U.S. News

Richard P. Goudis Transitions to New Role as Herbalife CEO

Photo: Herbalife Nutrition’s COO, Richard P. Goudis (right), has become CEO as Chairman and CEO Michael O. Johnson transitions to Executive Chairman.


Los Angeles-based Herbalife Nutrition today announced the official transition of Richard P. Goudis as the new CEO, in succession to Michael O. Johnson, who will now assume the position of Executive Chairman of the company.

With his passions grounded in innovation, education and training, Goudis will set the strategy for Herbalife, overseeing all aspects of the company’s growth initiatives and ensuring the company continues to be recognized worldwide as a leading nutrition company. He will guide the overall Herbalife business strategy in the 94 countries where the company operates. Goudis will also be responsible for strengthening and increasing the base of independent distributors and consumers, as well as the development of new product lines with broad scientific support.

“This is an exciting time to be leading such a dynamic team of dedicated professionals who every day position our company for further innovation and growth,” said Goudis. “Our talented global distributors bring innovative products to market that help customers live healthy, active lifestyles, truly making us the premier global nutrition company.”

Goudis, a recognized leader in the nutrition industry, has more than 18 years of experience in the field of nutrition with 13 years as part of the Herbalife management team, serving as COO since 2010 and CFO from 2004 to 2009. In his role as COO, he was responsible for building a global infrastructure that created competitive advantages, including the oversight of worldwide manufacturing operations, product development, quality assurance and control, supply chain and strategic sourcing, warehousing and logistics, human resources, information technology, security and safety, and regional finance and operations functions. During his tenure as COO, the company expanded its Herbalife Innovation and Manufacturing (H.I.M.) facilities to five locations around the world, ensuring the highest levels of quality control for the company’s nutrition products. Under his management, Herbalife also grew its employee base to more than 8,000 people worldwide.

Newly appointed Executive Chairman Michael O. Johnson draws from his extensive working history with Goudis to say, “The Board and I could not have picked a more qualified candidate to lead this company forward. We look forward to supporting him as he leads Herbalife Nutrition well into the future.”

June 01, 2017

World News

James Thompson Named Avon’s General Counsel

London-based Avon Products Inc., the company for women, recently announced that it has appointed James Thompson as Senior Vice President, General Counsel and Chief Ethics and Compliance Officer, effective Aug. 1.

Thompson previously served as Executive Vice President, General Counsel and Secretary to Chiquita Brands International Inc. for nine years. He is an experienced general counsel with significant global experience, including handling a range of highly complex operational, governance, regulatory and transactional matters.

Prior to Chiquita, Thompson was Group Vice President and General Counsel at McLeodUSA, a publicly traded telecommunications company, and Director, International Legal at a top direct selling company. His earlier experience includes significant domestic U.S. and international antitrust and corporate work at the law firm Jones Day in Washington D.C. and Brussels.

Thompson will succeed Jeff Benjamin, Senior Vice President, General Counsel and Chief Ethics and Compliance Officer, who as previously announced will be retiring from Avon.

Thompson will be based at Avon’s headquarters in London and report directly to CEO Sheri McCoy.

“I am pleased to welcome James to Avon,” said McCoy. “He is a seasoned and highly talented General Counsel, with broad international experience across many industries. As a member of the Avon executive team, James will play an important role as we drive sustainable profitable growth.”

June 01, 2017

DSN Global 100

2017 Profiles



Click here to order the June 2017 issue in which this article appeared or click here to download it to your mobile device.


IN THIS ISSUE:

2017 DSN Global 100 List
2017 Profiles
DSN Makes its Global 100 Celebration an Event to Remember
Frequently Asked Questions about the Global 100 Ranking
By The Numbers

DSN BRAVO AWARDS:

Leadership: It Works! CEO Mark Pentecost: On the Road to Legendary
Leadership: Isagenix’s Jim & Kathy Coover: Agents of Change
Growth: Jeunesse: Forging an Uncharted Path to Billion-Dollar Growth


 

 

1. Amway

2016 Net Sales: $8.80 billion

Country: USA

Amway is an $8.8 billion direct selling business based in Ada, Michigan. Top-selling brands for Amway are Nutrilite vitamin, mineral and dietary supplements, Artistry skincare and color cosmetics, eSpring water treatment systems, and XS energy drinks.

  • 2015 Rank: 1
  • 2015 Net Sales: $9.50 billion
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Appliances; Cosmetics; Food and Beverage; Home Care; Kitchenware; Personal Care; Wellness
  • Markets: 100
  • Primary Market: Not available
  • Salespeople: 3 million
  • Employees: 19,000
  • Headquarters: Ada, Michigan
  • Executives: Steve Van Andel and Doug DeVos
  • Year Founded: 1959
  • Website: www.amway.com

 

2. Avon Products Inc.

2016 Net Sales: $5.70 billion

Country: UK

Avon is the Company that for 130 years has proudly stood for beauty, innovation, optimism and, above all, for women. Avon products include well-recognized and beloved brands such as ANEW, Avon Color, Avon Care and Skin-So-Soft.

  • 2015 Rank: 2
  • 2015 Net Sales: $6.16 billion
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Cosmetics; Personal Care
  • Markets: 70
  • Primary Market: Brazil
  • Salespeople: 6 million
  • Employees: 28,300
  • Headquarters: Northamptonshire, England
  • Executive: Sheri McCoy
  • Year Founded: 1886
  • Stock Symbol: AVP—NYSE
  • Website: www.avon.uk.com


 

3. Herbalife Ltd.

2016 Net Sales: $4.50 billion

Country: USA

Herbalife is a global company that sells products intended to support a healthy lifestyle. Its products are formulated according to nutrition research and science and are manufactured to the highest standards of safety and quality. Herbalife products are available exclusively through independent Members.


  • 2015 Rank: 3
  • 2015 Net Sales: $4.47 billion
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Cosmetics; Personal Care; Nutrition; Weight-management
  • Markets: 91
  • Primary Market: USA
  • Salespeople: 4 million
  • Employees: 7,400
  • Headquarters: Los Angeles, California
  • Executive: Michael O. Johnson
  • Year Founded: 1980
  • Stock Symbol: HLF—NYSE
  • Website: www.herbalife.com

 

4. Vorwerk & Co. KG

2016 Net Sales: $4.20 billion

Country: Germany

The Vorwerk & Co. KG family enterprise was founded in 1883. Vorwerk’s core business is the global direct sales of high-quality household products such as the Kobold vacuum cleaner, Thermomix kitchen appliance, Twercs tools, Lux Asia Pacific products, as well as JAFRA cosmetics.


  • 2015 Rank: 4
  • 2015 Net Sales: $4.00 billion
  • Sales Method: Party Plan
  • Compensation Structure: Single-Level
  • Products: Appliances; Cosmetics; Home Decor; Kitchenware; Personal Care
  • Markets: 70
  • Primary Markets: The Americas
  • Salespeople: 637,126
  • Employees: 11,949
  • Headquarters: Wuppertal, Germany
  • Executive: Reiner Strecker
  • Year Founded: 1882
  • Website: www.vorwerk.com

 

5. Mary Kay Inc.

2016 Net Sales: $3.50 billion

Country: USA

For more than 53 years, Mary Kay has offered an entrepreneurial pathway to women to achieve their goals. As a multibillion-dollar company, we offer the latest in cutting-edge skin care, bold color cosmetics and fragrances.

  • 2015 Rank: 6
  • 2015 Net Sales: $3.70 billion
  • Sales Method: Party Plan
  • Compensation Structure: Multi-Level
  • Products: Cosmetics; Personal Care
  • Markets: 40
  • Primary Market: The Americas
  • Salespeople: 3.5 million
  • Employees: 5,000
  • Headquarters: Dallas, Texas
  • Executive: David Holl
  • Year Founded: 1963
  • Website: www.marykay.com

 

6. Infinitus Co. Ltd.

2016 Net Sales: $3.41 billion

Country: China

Infinitus health products combine extracted natural plant essences with traditional Chinese herbs to stimulate the body’s immunity and resistance. The company seeks to advocate for and modernize the 5,000-year-old traditional Chinese herbal philosophies and practices.

  • 2015 Rank: 5
  • 2015 Net Sales: $3.88 billion
  • Sales Method: Person To Person
  • Compensation Structure: Not available
  • Products: Skin Care; Cosmetics; Health Care
  • Markets: 2
  • Primary Market: China
  • Salespeople: Not available
  • Employees: Not available
  • Headquarters: Hong Kong, China
  • Executive: Sammie Lee
  • Year Founded: 1992
  • Website: www.infinitus-int.com


 

7. Perfect

2016 Net Sales: $3.06 billion

Country: China

 

With a company mission of “Building a perfect career while gaining a perfect life,” Perfect has a commitment to provide high-quality products to consumers, create opportunities for Perfect distributors to develop their careers, and to maintain long-term investment and development in China.


  • 2015 Rank: 7
  • 2015 Net Sales: $3.58 billion
  • Sales Method: Person To Person
  • Compensation Structure: Not available
  • Products: Cosmetics; Personal Care; Skin Care; Household; Wellness
  • Markets: 7
  • Primary Market: China
  • Salespeople: Not available
  • Employees: Not available
  • Headquarters: Guangdong Province, China
  • Executive: Woo Swee Lian
  • Year Founded: 1994
  • Website: www.perfect100.com


 

8. Quanjian Natural

Medicine Science

2016 Net Sales: $2.89 billion

Country: China

 

Quanjian Natural Medicine Science and Technology Development Company draws from traditional Chinese medicinal traditions to bring consumers high quality teas, packaged foods, skincare products and cosmetics.


  • 2015 Rank: Not ranked
  • 2015 Net Sales: Not ranked
  • Sales Method: Person To Person
  • Compensation Structure: Not available
  • Products: Health and Wellness
  • Markets: Not available
  • Primary Market: China
  • Salespeople: Not available
  • Employees: Not available
  • Headquarters: Tianjing, China
  • Executive: Shu Yu Hui
  • Year Founded: 2004
  • Website: en.ziranyixue.com


 

9. Natura Cosmeticos SA

2016 Net Sales: $2.26 billion

Country: Brazil

 

Natura is a multinational direct seller of cosmetics, personal care and beauty products and the leading direct seller in Brazil. In 2014, the company became the first listed corporation to be certified by B Corp, which recognizes companies that give equal value to their economic, social and environmental results.


  • 2015 Rank: 8
  • 2015 Net Sales: $2.41 billion
  • Sales Method: Person To Person
  • Compensation Structure: Single-Level
  • Products: Cosmetics; Personal Care
  • Markets: 6
  • Primary Market: Brazil
  • Salespeople: 1.8 million
  • Employees: 7,000
  • Headquarters: Cajamar, Brazil
  • Executive: João Paulo Ferreira
  • Year Founded: 1969
  • Stock Symbol: NATU3.SA—Sao Paulo
  • Website: www.natura.net


 

10. Tupperware Brands Corp.

2016 Net Sales: $2.21 billion

Country: USA

 

Tupperware is a global direct seller of innovative, premium products across multiple brands and categories through an independent salesforce. Products include design-centric preparation, storage and serving solutions for the home.


  • 2015 Rank: 9
  • 2015 Net Sales: $2.28 billion
  • Sales Method: Person To Person
  • Compensation Structure: Single-level and Multi-level
  • Products: Beauty; Personal Care; Storage; Serving
  • Markets: 100
  • Primary Market: Indonesia
  • Salespeople: 2.6 million
  • Employees: 13,500
  • Headquarters: Orlando, Florida
  • Executive: Rick Goings
  • Year Founded: 1946
  • Stock Symbol: TUP—NYSE
  • Website: www.tupperware.com


 

11. Nu Skin Enterprises

2016 Net Sales: $2.208 billion

Country: USA

 

Nu Skin Enterprises Inc. offers a comprehensive line of premium beauty and wellness solutions. The company builds upon its scientific expertise to develop innovative product brands that include Nu Skin®, Pharmanex®, and ageLOC®.


  • 2015 Rank: 10
  • 2015 Net Sales: $2.25 billion
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Cosmetics; Personal Care; Wellness
  • Markets: 50
  • Primary Market: Greater China; North Asia
  • Salespeople: 998,000 customers and sales leaders
  • Employees: 1,500
  • Headquarters: Provo, Utah
  • Executive: Ritch Wood
  • Year Founded: 1984
  • Stock Symbol: NUS—NYSE
  • Website: www.nuskin.com


 

12. Primerica Financial Services

2016 Net Sales: $1.52 billion

Country: USA

 

Primerica assists clients in meeting their needs for term life insurance, which it underwrites, as well as mutual funds, annuities and other financial products, which it distributes primarily on behalf of third parties. In 2016, Primerica insured more than 4 million lives and maintained approximately 2 million investment accounts on behalf of clients.


  • 2015 Rank: 12
  • 2015 Net Sales: $1.41 billion
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Financial Services
  • Markets: 2
  • Primary Market: USA
  • Salespeople: 98,358
  • Employees: 1,932
  • Headquarters: Duluth, Georgia
  • Executive: Glenn Williams
  • Year Founded: 1977
  • Stock Symbol: PRI—NYSE
  • Website: www.primerica.com


 

13. JoyMain Science and Technology Development Co. Ltd.

2016 Net Sales: $1.49 billion

Country: China

 

JoyMain adheres to a “law-abiding, honest, caring, quality” business philosophy in providing high-quality health and personal care products and business opportunities. The company researches, manufactures and sells a variety of products with a focus on high-tech health care products.


  • 2015 Rank: Not ranked
  • 2015 Net Sales: Not ranked
  • Sales Method: Person To Person
  • Compensation Structure: Not available
  • Products: Nutrition; Health Care; Home Care; Clothing
  • Markets: 1
  • Primary Market: China
  • Salespeople: Not available
  • Employees: Not available
  • Headquarters: Nanjing, China
  • Executive: Wang You
  • Year Founded: 2000
  • Website: www.joymain.com


 

14. Jeunesse Global

2016 Net Sales: $1.41 billion

Country: USA

 

Jeunesse is a global youth enhancement company with a mission to impact the world by helping people look and feel young, while empowering them to unleash their potential. Jeunesse utilizes multilingual customer service, back office support and a global enrollment system.


  • 2015 Rank: 18
  • 2015 Net Sales: $1.09 billion
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Cosmetics; Personal Care; Wellness
  • Markets: 140
  • Primary Market: Asia Pacific
  • Salespeople: 620,341
  • Employees: 800
  • Headquarters: Lake Mary, Florida
  • Executives: Randy Ray and Wendy Lewis
  • Year Founded: 2009
  • Website: www.jeunesseglobal.com


 

15. Oriflame Cosmetics

2016 Net Sales: $1.40 billion

Country: Switzerland

 

Oriflame sells a wide portfolio of Swedish, nature-inspired, innovative beauty products. Respect for people and nature undlerlies Oriflame’s operating principles and is reflected in its social and environmental policies. The company supports numerous charities worldwide and is a co-founder of the World Childhood Foundation.


  • 2015 Rank: 14
  • 2015 Net Sales: $1.35 billion
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Cosmetics; Personal Care
  • Markets: 60
  • Primary Market: Asia Pacific
  • Salespeople: 3 million
  • Employees: 6,189
  • Headquarters: Switzerland
  • Executive: Magnus Brännström
  • Year Founded: 1967
  • Stock Symbol: ORI-SS—Stockholm
  • Website: www.oriflame.com


 

16. Ambit Energy*

2016 Net Sales: $1.20 billion

Country: USA

 

Ambit Energy provides electricity and natural gas services in deregulated markets across the United States, primarily marketed through the direct sales channel.


  • 2015 Rank: 13
  • 2015 Net Sales: $1.40 billion
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Electricity and Natural Gas
  • Markets: 1
  • Primary Market: United States
  • Salespeople: 65,000
  • Employees: 640
  • Headquarters: Dallas, Texas
  • Executives: Jere Thompson Jr. and Chris Chambless
  • Year Founded: 2006
  • Website: www.ambitenergy.com

*An earlier version of the 2017 Global 100 list contained an incorrect revenue figure for Ambit Energy. The company has certified that its net sales were $1.20 billion, ranking it No. 16 on the Global100.

 

 

16. New Era Health Industry Group Co. Ltd.

2016 Net Sales: $1.16 billion

Country: China

 

Based in China, New Era is dedicated to the research and development of health foods, nutrition, cosmetics and chemical commodities. The company partners with many research institutions at home and abroad.


  • 2015 Rank: 17
  • 2015 Net Sales: $1.16 billion
  • Sales Method: Person To Person
  • Compensation Structure: Single-Level
  • Products: Cosmetics; Health Care Cleaning
  • Markets: 14
  • Primary Market: China
  • Salespeople: Not available
  • Employees: 1,000
  • Headquarters: Beijing, China
  • Executive: Not available
  • Year Founded: 1995
  • Website: www.intgz.com/en


 

17. Telecom Plus Plc

2016 Net Sales: $1.12 billion

Country: UK

Telecom Plus, which owns and operates the Utility Warehouse brand, is the UK’s only fully integrated provider of a wide range of competitively priced utility services spanning both the Communications and Energy markets. Members benefit from the convenience of a single monthly statement, consistently good value across all their utilities and exceptional levels of service.

  • 2015 Rank: 16
  • 2015 Net Sales: $1.17 billion
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Communications and Energy Services
  • Markets: 1
  • Primary Market: UK
  • Salespeople: 45,808
  • Employees: 908
  • Headquarters: London, England
  • Executive: Andrew Lindsay
  • Year Founded: 1996
  • Stock Symbol: TEP—London
  • Website: www.utilitywarehouse.co.uk

 

18. Belcorp Ltd.

2016 Net Sales: $1.09 billion

Country: Peru

Belcorp is a direct selling company that develops, manufactures, and distributes cosmetics and personal care products. The company’s main brands are Esika, L’Bel and Cyzone and the company’s mission is to “Promote Beauty for Personal Fulfillment.”

  • 2015 Rank: 15
  • 2015 Net Sales: $1.20 billion
  • Sales Method: Person To Person
  • Compensation Structure: Single-Level
  • Products: Cosmetics; Personal Care
  • Markets: 15
  • Primary Market: Latin America
  • Salespeople: 811,762
  • Employees: 6,893
  • Headquarters: Lima, Peru
  • Executive: Eduardo Belmont
  • Year Founded: 1968
  • Website: www.belcorpusa.com

 

20. USANA Health Sciences

2016 Net Sales: $1.01 billion

Country: USA

USANA Health Sciences is one of the top health and wellness companies in the world. Founded in 1992, USANA has become a global company that is highly regarded for not only the quality of its products but the exceptional work of its employees. USANA’s products consist of supplements, vitamins, foods and a skincare line all manufactured to meet the highest of standards.

  • 2015 Rank: 21
  • 2015 Net Sales: $918 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Cosmetics; Food and Beverage; Personal Care; Wellness
  • Markets: 20
  • Primary Market: China
  • Salespeople: 471,000
  • Employees: 1,788
  • Headquarters: Salt Lake City, Utah
  • Executive: Kevin Guest
  • Year Founded: 1992
  • Stock Symbol: USNA—NYSE
  • Website: www.usana.com

 

21. Pola Inc.

2016 Net Sales: $1.004 billion

Country: Japan

Founded by Shinobu Suzuki, Pola has earned a global reputation for its high-quality skincare, hair-care and cosmetics products as well as its commitment to supporting women in their pursuit of more satisfying lifestyles.

  • 2015 Rank: 25
  • 2015 Net Sales: $823 million
  • Sales Method: Person To Person
  • Compensation Structure: Single-Level
  • Products: Cosmetics; Skincare; Personal Care; Nutrition
  • Markets: 13
  • Primary Market: Not available
  • Salespeople: 150,000
  • Employees: 1,326
  • Headquarters: Tokyo, Japan
  • Executive: Hiroki Suzuki
  • Year Founded: 1929
  • Website: www.pola.co.jp

 

22. Young Living Essential Oils

2016 Net Sales: $1.000 billion

Country: USA

Young Living Essential Oils is the world leader in essential oils with a strict Seed to Seal®process to produce pure essential oil products for every individual, family and lifestyle. This process ensures that all products are genuine, free of synthetic chemicals and pure. This commitment stems from the company’s 20 years of stewardship of the earth.

  • 2015 Rank: 20
  • 2015 Net Sales: $1.00 billion
  • Sales Method: Person To Person
  • Compensation Structure: Multi-level
  • Products: Cosmetics; Food and Beverage; Home Care Personal Care; Wellness
  • Markets: 14
  • Primary Market: USA
  • Salespeople: 1.5 million
  • Employees: 2,200
  • Headquarters: Lehi, Utah
  • Executive: Jared Turner
  • Year Founded: 1993
  • Website: www.youngliving.com

 

23. SUN HOPE

2016 Net Sales: $940 million

Country: China

Founded by Chen Shangji and Zheng Zhuyu, Sun Hope is devoted to "spreading beauty and health" through preventative medicine. The company's four main product lines are SUN HOPE healthy care products; SUN HOPE skincare products; SUN HOPE household products; and SUN HOPE personal cleaning products.

  • 2015 Rank: Not listed
  • 2015 Net Sales: Not listed
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Dietary Supplements; Skincare; Personal Care; Cleaning
  • Markets: 3
  • Primary Market: Not available
  • Salespeople: Not available
  • Employees: Not available
  • Headquarters: Tianjin, China
  • Executive: Nancy Chen
  • Year Founded: 1965
  • Website: www.sunhope.cn.en

 

24. DXN Marketing Sdn Bhd

2016 Net Sales: $927.0 million

Country: Malaysia

The core business activities of DXN include cultivation, manufacturing and marketing of health food supplements. Product lines include dietary supplements, food and beverages, personal care products and water treatment systems.

  • 2015 Rank: 24
  • 2015 Net Sales: $862 million
  • Sales Method: Party Plan
  • Compensation Structure: Multi-Level
  • Products: Appliances; Cosmetics; Food and Beverage; Home Decor; Kitchenware; Personal Care; Wellness
  • Markets: 184
  • Primary Market: Asia Pacific
  • Salespeople: 6.37 million
  • Employees: 1,632
  • Headquarters: Alor Setar Malaysia
  • Executive: Dr. Lim Siow Jin
  • Year Founded: 1995
  • Website: www.dxn2u.com

 

25. WorldVentures

2016 Net Sales:
$926.6 million

Country: USA

WorldVentures is the leading international direct seller of vacation club memberships and helps people achieve more fun, freedom and fulfillment by offering award-winning DreamTrips, which include premium vacations at reduced prices.

  • 2015 Rank: 32
  • 2015 Net Sales: $693 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Leisure and Educational Services
  • Markets: 28
  • Primary Market: USA
  • Salespeople: 421,532
  • Employees: 604
  • Headquarters: Plano, Texas
  • Executives: Dan Stammen and
  • Wayne Nugent
  • Year Founded: 2005
  • Website: www.worldventures.com

 

26. Isagenix International

2016 Net Sales: $924.3million

Country: USA

Isagenix develops and manufactures nutritional and personal care products and solutions that include health and wellness, weight loss, performance, healthy aging, and energy.

  • 2015 Rank: 22
  • 2015 Net Sales: $890 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Wellness
  • Markets: 13
  • Primary Market: United States
  • Salespeople: 521,510
  • Employees: 866
  • Headquarters: Gilbert, Arizona
  • Executives: Jim and Kathy Coover
  • Year Founded: 2002
  • Website: www.isagenix.com

 

27. Yanbal International/Unique

2016 Net Sales:
$924.0 million

Country: Peru

Yanbal International is a global multi-level corporation expert in cosmetics and jewelry, whose mission is to change the lives of all women and their families through beauty and inspiration to fulfill their dreams. It operates under the principle of “prosperity for all.”

  • 2015 Rank: 30
  • 2015 Net Sales: $747 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Cosmetics; Personal Care
  • Markets: 11
  • Primary Market: Peru
  • Salespeople: 400,000
  • Employees: 5,330
  • Headquarters: Lima, Peru
  • Executive: Janine Belmont
  • Year Founded: 1967
  • Website: www.yanbal.com

 

28. Team Beachbody

2016 Net Sales: $863 million

Country: USA

Beachbody was founded in 1998 and is a leading innovator of health, home fitness, nutrition and weight-loss programs that deliver results. Through its direct selling division, Team Beachbody, the company offers ways to get fit, lose weight and get healthy with the help of a personal Coach.

  • 2015 Rank: 28
  • 2015 Net Sales: $780 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Wellness
  • Markets: 2
  • Primary Market: United States
  • Salespeople: 406,000
  • Employees: 900
  • Headquarters: Santa Monica, California
  • Executive: Carl Daikeler
  • Year Founded: 2007
  • Website: www.beachbody.com

 

29. Market America

2016 Net Sales: $798 million

Country: USA

Market America is a product brokerage and Internet marketing company that specializes in one-to-one marketing. Its mission is to provide a robust business system for entrepreneurs, while providing consumers with an alternative way to shop for everyday products.

  • 2015 Rank: 27
  • 2015 Net Sales: $791 million
  • Sales Method: Person To Person
  • Compensation Structure: Single-Level
  • Products: Appliances; Clothing and Accessories; Cosmetics; Home Decor; Kitchenware; Leisure and Educational; Personal Care; Services; Wellness
  • Markets: 9
  • Primary Market: Not available
  • Salespeople: 184,000
  • Employees: 838
  • Headquarters: Greensboro, North Carolina
  • Executive: Jim Ridinger
  • Year Founded: 1992
  • Website: www.marketamerica.com

 

30. ACN

2016 Net Sales: $750 million

Country: USA

ACN is one of the world’s largest direct sellers of telecommunications, energy and other essential services people use every day, including phone service, wireless, natural gas and electricity, solar, high speed internet, security and automation, and payment processing.

  • 2015 Rank: 26
  • 2015 Net Sales: $821 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Essential Services
  • Markets: 25
  • Primary Market: United States
  • Salespeople: 200,000
  • Employees: 1,200
  • Headquarters: Concord, North Carolina
  • Executives: Robert Stevanovski, Greg Provenzano, Tony Cupisz, Mike Cupisz
  • Year Founded: 1993
  • Website: www.acninc.com

 

31. Stream

2016 Net Sales: $735 million

Country: USA

Stream is a leading direct selling company and provider of connected life services. The company’s innovative use of direct selling revolutionized the energy industry, generating more than $8 billion in total revenue in 12 years. Stream Connected Services work seamlessly together to fit customers’ on-the-go lifestyles, keeping them connected wherever they are.

  • 2015 Rank: 23
  • 2015 Net Sales: $866 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Energy; Home-Life; Essential Services
  • Markets: 1
  • Primary Market: United States
  • Salespeople: 315,632
  • Employees: 223
  • Headquarters: Dallas, Texas
  • Executive: Larry Mondry
  • Year Founded: 2004
  • Website: www.mystream.com

 

32. Tiens/Tianshi

2016 Net Sales: $695 million

Country: China

Tiens engages in the research, development, manufacturing and marketing of healthcare products including herbal products, vitamin and mineral supplements and personal care. The company has produced 45 types of healthcare products, which have obtained the “Health Food Certificates” issued by the PRC Ministry of Health.

  • 2015 Rank: 11
  • 2015 Net Sales: $$1.55 billion
  • Sales Method: Person To Person
  • Compensation Structure: Single-Level
  • Products: Health and Wellness; Skin Care; Household Goods
  • Markets: 110
  • Primary Market: China
  • Salespeople: Not available
  • Employees: 2,827
  • Headquarters: Tianjin, China
  • Executive: Li Jinyuan
  • Year Founded: 1990
  • Stock Symbol: TBV-AMEX
  • Website: www.tiens.com

 

33. It Works!

2016 Net Sales: $686 million

Country: USA

It Works! exists to empower people to do great things and change their lives inside and out. The company offers personal care and wellness products that address issues for body-shaping and anti-aging, vitamin and mineral supplementation and more. The company’s passion is to make a difference in people’s lives.

  • 2015 Rank: 29
  • 2015 Net Sales: $748 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Wellness
  • Markets: 22
  • Primary Market:  United States
  • Salespeople: 150,000
  • Employees: 180
  • Headquarters: Palmetto, Florida
  • Executive: Mark Pentecost
  • Year Founded: 2001
  • Website: www.myitworks.com

 

34. Team National

2016 Net Sales: $659 million

Country: USA

Team National provides membership savings on products and services in more than 20 industries, including factory direct pricing on home furnishings and more.

  • 2015 Rank: 36
  • 2015 Net Sales: $549 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Membership Savings Services
  • Markets: 1
  • Primary Market: United States
  • Salespeople: 487,000
  • Employees: 71
  • Headquarters: Davie, Florida
  • Executive: Angela Loehr Chrysler
  • Year Founded: 1997
  • Website: www.bign.com

 

35. Yandi

2016 Net Sales: $644 million

Country: China

Yandi is a nutritional and cleaning products company operating in eight provinces in China.

  • 2015 Rank: 34
  • 2015 Net Sales: $597 million
  • Sales Method: Person To Person
  • Compensation Structure: Not available
  • Products: Health Food; Cosmetics; Household Cleaning
  • Markets: 1
  • Primary Market: China
  • Salespeople: Not available
  • Employees: Not available
  • Headquarters: Zhu-zhou, China
  • Executive: Huang Jialin
  • Year Founded: 2011
  • Website: Not available

 

36. Miki Corp.

2016 Net Sales: $597 million

Country: Japan

Operating in Japan, Taiwan and Malaysia, Miki Corp. markets nutritional products, skincare and a range of household detergents.

  • 2015 Rank: 35
  • 2015 Net Sales: $578 million
  • Sales Method: Person To Person
  • Compensation Structure: Not available
  • Products: Cleaning; Nutritional; Skincare
  • Markets: 3
  • Primary Market: Japan
  • Salespeople: Not available
  • Employees: 280
  • Headquarters: Osaka, Japan
  • Executive: Toshikazu Kadota
  • Year Founded: 1966
  • Website: www.mikiprune.co.jp

 

37. AdvoCare International

2016 Net Sales: $586 million

Country: USA

Family-owned AdvoCare offers premier nutritional, weight-management and sports-performance products backed by scientific research and a Scientific and Medical Advisory Board. In addition, AdvoCare empowers Independent Distributors with an industry-leading business opportunity and world-class training and business tools.

  • 2015 Rank: 31
  • 2015 Net Sales: $719 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Wellness
  • Markets: 1
  • Primary Market: United States
  • Salespeople: 549,357
  • Employees: 320
  • Headquarters: Plano, Texas
  • Executive: Brian Connolly
  • Year Founded: 1993
  • Website: www.advocare.com

 

38. Arbonne International

2016 Net Sales: $541 million

Country: USA

Arbonne International creates personal care and wellness products crafted with premium botanical ingredients and innovative scientific discovery. Arbonne’s personal care and nutrition formulas are vegan certified, cruelty-free, formulated without gluten, dermatologist tested and adhere to a strict Ingredient Policy.

  • 2015 Rank: 40
  • 2015 Net Sales: $502 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Cosmetics; Personal Care; Wellness
  • Markets: 7
  • Primary Market: Not available
  • Salespeople: 250,000
  • Employees: 650
  • Headquarters: Irvine, California
  • Executive: Kay Napier Zanotti
  • Year Founded: 1980
  • Website: www.arbonne.com

 

39. Plexus Worldwide

2016 Net Sales: $532 million

Country: USA

Since its inception, Plexus Worldwide has been helping people transform their lives with science-based health and wellness products and a home-based entrepreneurial opportunity. Plexus’ core beliefs are simple: Be Trustworthy, Be Honest, Be Reliable, and Be Responsible.

  • 2015 Rank: 46
  • 2015 Net Sales: $384 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Wellness
  • Markets: 4
  • Primary Market: United States
  • Salespeople: 477,492
  • Employees: 300
  • Headquarters: Scottsdale, Arizona
  • Executive: Tarl Robinson
  • Year Founded: 2008
  • Website: www.plexusworldwide.com

 

40. Rolmex Technology Co. Ltd.

2016 Net Sales: $515 million

Country: China

Rolmex is a subsidiary of Luomai Technology Group that markets kitchen wares, cleaning products, cosmetics and nutritional products in three provinces in China.

  • 2015 Rank: 42
  • 2015 Net Sales: $448 million
  • Sales Method: Person To Person
  • Compensation Structure: Not available
  • Products: Cosmetics; Kitchenware; Wellness
  • Markets: 1
  • Primary Market: China
  • Salespeople: Not available
  • Employees: Not available
  • Headquarters: Liaoning Province, China
  • Executive: Not available
  • Year Founded: 2001
  • Website: www.rolmex.com

 

41. PM International

2016 Net Sales: $460 million

Country: Germany

PM-International is one of Europe’s largest direct selling companies in the areas of Health, Wellness and Beauty. It offers premium nutritional supplements and skincare with its FitLine and BeautyLine series.

  • 2015 Rank: 47
  • 2015 Net Sales: $350 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Wellness
  • Markets: 35
  • Primary Market: Germany
  • Salespeople: 74,546
  • Employees: 450
  • Headquarters: Schengen, Germany
  • Executive: Rolf Sorg
  • Year Founded: 1993
  • Website: www.pm-international.com

 

42. Scentsy Inc.

2016 Net Sales: $456 million

Country: USA

Scentsy is a direct selling company and international leader in home and personal fragrance, offering styish, innovative and customizable product designed to Warm the Heart, Enliven the Senses and Inspire the Soul.

  • 2015 Rank: 43
  • 2015 Net Sales: $429 million
  • Sales Method: Party Plan
  • Compensation Structure: Multi-Level
  • Products: Appliances; Cosmetics; Home Decor; Kitchenware; Personal Care
  • Markets: 11
  • Primary Market: United States
  • Salespeople: 131,000
  • Employees: 1,000
  • Headquarters: Meridian
  • Executives: Orville and Heidi Thompson
  • Year Founded: 2004
  • Website: www.scentsy.com

 

43. LegalShield

2016 Net Sales: $450 million

Country: USA

LegalShield is the leading provider of legal services in all 50 states and four Canadian Provinces.The company’s goal is to create a world where everyone can access affordable, responsive and accountable legal services, offering peace of mind. LegalShield is also one of the largest providers of identity theft protection and restoration.

  • 2015 Rank: Not ranked
  • 2015 Net Sales: Not ranked
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Services
  • Markets: 2
  • Primary Market: United States
  • Salespeople: 270,000
  • Employees: 801
  • Headquarters: Ada, Oklahoma
  • Executive: Jeff Bell
  • Year Founded: 1976
  • Website: www.legalshield.com

 

44. Le-Vel

2016 Net Sales: $449 million

Country: USA

Le-Vel is the first cloud-based direct selling company. The company offers a premium grade nutritional supplement product line, THRIVE, which utilizes cutting-edge proprietary formulas and delivery systems.

  • 2015 Rank: 48
  • 2015 Net Sales: $349 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Wellness
  • Markets: 2
  • Primary Market: USA
  • Salespeople: 175,168
  • Employees: 50
  • Headquarters: Frisco, Texas
  • Executives: Jason Camper and Paul Gravette
  • Year Founded: 2012
  • Website: www.le-vel.com

 

45. Omnilife

2016 Net Sales: $375.93million

Country: Mexico

Omnilife provides nutritional supplements with a unique blend of ingredients vital to a healthy life. Committed to improving the lives of people around the world, the company specializes in developing and manufacturing innovative nutritional, personal care and cosmetic products that are sold through independent distributors.

  • 2015 Rank: 44
  • 2015 Net Sales: $406 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Cosmetics; Personal Care
  • Markets: 20
  • Primary Market: The Americas
  • Salespeople: 961,024
  • Employees: 2,262
  • Headquarters: Zapopan, Mexico
  • Executive: Jose Luis Higuera
  • Year Founded: 1992
  • Website: www.omnilife.com

 

46. YOFOTO

2016 Net Sales: $375.92million

Country: China

YOFOTO delivers healthcare products utilizing traditional Chinese medicine and also focus on the preservation of good health. The company serves its global marketing partners by offering a healthy lifestyle as well as a career opportunity.

  • 2015 Rank: 45
  • 2015 Net Sales: $399 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Health and Wellness
  • Markets: 2
  • Primary Market: Not available
  • Salespeople: Not available
  • Employees: Not available
  • Headquarters: Zhejiang Province, China
  • Executive: Huang Jinbao
  • Year Founded: 2004
  • Website: www.yofoto.net

 

47. For Days

2016 Net Sales: $365 million

Country: Japan

For Days offers a wide range of dietary supplements and cosmetic products to more than 300,000 loyal members. The company places a strong emphasis on new product development and is currently in the process of expanding its business globally.

  • 2015 Rank: 51
  • 2015 Net Sales: $325 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Cosmetics; Personal Care
  • Markets: 1
  • Primary Market: Japan
  • Salespeople: 327,000
  • Employees: 276
  • Headquarters: Tokyo, Japan
  • Executive: Keiko Wada
  • Year Founded: 1997
  • Website: www.fordays.jp

 

48. Faberlic

2016 Net Sales: $356 million

Country: Russia

Faberlic is Russia’s largest direct seller with its own production facilities and R&D. The company offers a wide range of products from cosmetics to home care, apparel and accessories.

  • 2015 Rank: Not ranked
  • 2015 Net Sales: Not ranked
  • Sales Method: Person To Person
  • Compensation Structure: Not available
  • Products: Cosmetics
  • Markets: 40
  • Primary Market: Russia
  • Salespeople: 1.89 million
  • Employees: 2,599
  • Headquarters: Moscow, Russia
  • Executive: Vladislav Davankov
  • Year Founded: 1997
  • Website: www.faberlic.ru

 

49. Kang Ting

2016 Net Sales: $348 million

Country: China

  • 2015 Rank: 55
  • 2015 Net Sales: $308 million
  • Sales Method: Person To Person
  • Compensation Structure: Not available
  • Products: Cosmetics
  • Markets: Not available
  • Primary Market: China
  • Salespeople: Not available
  • Employees: Not available
  • Headquarters: China
  • Executive: Not available
  • Year Founded: 1996
  • Website: Not available

 

50. Nature’s Sunshine Products Inc.

2016 Net Sales: $341 million

Country: USA

Nature’s Sunshine Products is a leading natural health and wellness company that markets and distributes nutritional and personal care products. The company manufactures most of its products through its own state-of-the-art facilities to ensure the highest quality, safety and efficacy in its products. The company also supports health and wellness for children around the world through its partnership with the Sunshine Heroes Foundation.

  • 2015 Rank: 51
  • 2015 Net Sales: $325 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Wellness
  • Markets: 47
  • Primary Market: United States
  • Salespeople: 550,000
  • Employees: 963
  • Headquarters: Lehi, Utah
  • Executive: Greg Probert
  • Year Founded: 1972
  • Stock Symbol: NATR—NASDAQ 
  • Website: www.naturessunshine.com

 

51. 4Life Research

2016 Net Sales: $328 million

Country: USA

4Life offers products that support the immune system through Transfer Factor technology including dietary supplements, wellness and personal care. Products are developed and tested in the company’s state-of-the-art laboratory to ensure quality and efficacy.

  • 2015 Rank: 54
  • 2015 Net Sales: $321 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Wellness
  • Markets: 24
  • Primary Market: United States
  • Salespeople: 362,000
  • Employees: 800
  • Headquarters: Sandy, Utah
  • Executive: Steve Tew
  • Year Founded: 1998
  • Website: www.4life.com

 

52. AnRan Nanometer Industry Development Co. Ltd.

2016 Net Sales: $321 million

Country: China

AnRan is a Hong Kong-based company specializing in nanometer level micro-biochemistry. Nanotechnology is the study of tiny particles and their inclusion in fabrics, cosmetics and other products. AnRan’s nutritional, skincare, and personal-care products are the result of this scientific research.

  • 2015 Rank: 58
  • 2015 Net Sales: $296 million
  • Sales Method: Person To Person
  • Compensation Structure: Not available
  • Products: Cleaning; Cosmetics; Kitchenware
  • Markets: 1
  • Primary Market: China
  • Salespeople: Not available
  • Employees: Not available
  • Headquarters: Shandong Province, China
  • Executive: Liu Run Dong
  • Year Founded: 2005 
  • Website: en.hongkonganran.com

 

53. Naturally Plus

2016 Net Sales: $300 million

Country: Japan

Naturally Plus promotes worldwide wellness through nutrition and healthy lifestyle choices. The company develops and markets science-based nutritional supplements.

  • 2015 Rank: 49
  • 2015 Net Sales: $339 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Cosmetics; Food and Beverage; Personal Care; Wellness
  • Markets: 99
  • Primary Market: Not available
  • Salespeople: 229,292
  • Employees: 510
  • Headquarters: Tokyo, Japan
  • Executive: Takashi Tajima
  • Year Founded: 1999
  • Website: www.naturally-plus.com

 

54. NHT Global

2016 Net Sales: $288 million

Country: USA

Natural Health Trends Corp. is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, North America, and Europe.

  • 2015 Rank: 60
  • 2015 Net Sales: $265 million
  • Sales Method: Person To Person
  • Compensation Structure: Multi-Level
  • Products: Cosmetics; Home care; Personal Care; Wellness
  • Markets: 45
  • Primary Market: Hong Kong
  • Salespeople: 118,956
  • Employees: 145
  • Headquarters: Rolling Hills Estates, California
  • Executive: Chris Sharng
  • Year Founded: 2001
  • Stock Symbol: NHTC—NASDAQ
  • Website: www.nhtglobal.com

June 01, 2017

U.S. News

TYRA Beauty to End Direct Sales Operations

Less than two years after its entry into the direct selling space, TYRA Beauty is ceasing all direct sales operations. The cosmetics company founded by supermodel Tyra Banks announced on May 26 that as of July 1, it will exclusively sell its products through direct-to-consumer e-commerce and other retail channels.

The decision comes as a bit of a shock to industry watchers. Banks had been a vocal champion of the channel and had brought her personal story to the forefront when she opened the doors of TYRA Beauty in September 2015. Her decision to venture into direct selling was due to her longtime mentor’s insistence on her giving women a platform to become the CEO of their own lives. Banks’ platform of developing, nurturing and protecting the self-confidence of women, driven by what she had witnessed her mother go through after a divorce, was a perfect fit for direct selling.

TYRA Beauty held a soft launch in March 2015 with 200 hand-picked independent “Beautytainers,” who were largely responsible for starting the company’s initial momentum. When company officially opened its door six months later, more than 7,000 women who had been waitlisted before the launch joined.

Banks said at the time, “TYRA Beauty has this wonderful world of direct selling, which has such a rich history. But what I’ve been laser-focused on is bringing it to a different generation and creating a snap and a sass and a sizzle. We want marketing, a voice, a message that speaks to the woman who wants to step out of her day-to-day, who wants freedom to express herself, to walk that hallway like a runway, to be her fiercest self.”

According to the May 26 announcement, while the direct sales channel grew from a few hundred hand-selected Beautytainers during its initial Beta period in the spring of 2015 to several thousand by 2017, doubling revenue each year, the decision to close the channel was due to certain challenges typically associated with direct selling and multi-level businesses.

“The success and positive momentum in the direct sales channel has been astonishing,” the announcement read. “That success has come at a price and over the last year it has become increasingly clear that there are challenges with the direct sales channel that are simply not compatible with the mission and ultimately the business.”

Starting July 1, TYRA Beauty will sell its cosmetic and skincare products through its e-commerce operations and other retail channels.

June 01, 2017

DSN Global 100

Bravo Growth Award: Jeunesse: Forging an Uncharted Path to Billion-Dollar Growth

by Courtney Roush


Click here to order the June 2017 issue in which this article appeared or click here to download it to your mobile device.


IN THIS ISSUE:

2017 DSN Global 100 List
2017 Profiles
Building Strategy for Future Growth
DSN Makes its Global 100 Celebration an Event to Remember
Frequently Asked Questions about the Global 100 Ranking
By The Numbers

DSN BRAVO AWARDS:

Leadership: It Works! CEO Mark Pentecost: On the Road to Legendary
Leadership: Isagenix’s Jim & Kathy Coover: Agents of Change
Growth: Jeunesse: Forging an Uncharted Path to Billion-Dollar Growth


It was Sept. 9, 2009, or 9/9/09 at 9 p.m., an auspicious day and time to start a company, if you follow the tenets of Chinese culture. The number 9 signifies longevity in Chinese. And Asia-Pacific was precisely the region in which Jeunesse, a direct seller of healthy and youthful living through skin care and nutritional products, had opted to get its start, so the timing wasn’t fortuitous; it was deliberate. Randy Ray and Wendy Lewis had left retirement behind to launch what they believed was a means to better health, vitality and, ultimately, financial security for millions of people worldwide. They shared a belief in the power of what they were creating, but couldn’t predict at that time just how strongly their message of empowerment would resonate in the hearts of men and women from vastly different cultures.

Although Jeunesse’s World Headquarters is in Lake Mary, Florida, the company’s initial priority was establishing itself in Asia, specifically in Taiwan, with two flagship products: LuminesceTM, a cellular rejuvenation skin care serum; and Reserve, a gel-based antioxidant supplement, which remains the company’s best-selling product today. Hong Kong, Indonesia and a multitude of other international markets quickly followed. This kind of approach stands in direct contrast to the majority of U.S.-based direct sellers, who typically focus first on establishing themselves stateside before crossing any oceans. 


We’ve learned if you don’t do it right, you don’t get a second chance. You’ve got to develop a cohesive, clear strategy and scope, then execute it with efficiency.
- Wendy Lewis, Founder and Chief Operations Officer, Jeunesse 


So did this strategy prove to be successful? In a word, yes. Jeunesse is the winner of the 2017 DSN Bravo Growth Award. The company generated $30 million in revenue during its first year, debuted on the DSN Global 100 in 2012 with $65 million in sales and, over the past two years, has increased its annual sales by $1 billion, jumping from approximately $400 million in 2014 to more than $1.4 billion in 2016. Since its formation in 2009, Jeunesse has expanded its presence into more than 140 markets throughout Asia-Pacific, the Middle East, Europe, the Americas and Africa. Jeunesse India is slated to open its doors this summer, and Argentina is expected to launch in late 2017.

‘Reverse Engineering’

What was the rationale for turning the traditional method of expansion on its head? The plan for Jeunesse was to create strong markets abroad, then return home ready to build upon that solid foundation of global support. Scott Lewis, Chief Visionary Officer, calls the company’s international-first philosophy “reverse engineering.” He credits that point of difference among the factors largely responsible for the company’s remarkable growth. 

TextPictured (bottom row): Founders Randy Ray and Wendy Lewis; (top row) Chief Visionary Offer Scott Lewis and his wife, Isabel.

His mother, Founder and Chief Operations Officer Wendy Lewis, agrees. Prior to launching Jeunesse with her husband, Founder and CEO Randy Ray, the couple spent years founding and later selling nationally ranked medical software and computer hardware companies and providing back office solutions for startups. They also spent 18 years in the direct selling channel as independent business owners. “We thought [the reverse engineering approach] would provide stability,” Wendy says. “We’d worked with a lot of direct sales companies over the years because we did their back office support, paid their commissions, etc. Our thought was to bring as many countries up as possible, and get as many of those countries to $1 million a month as possible. Then, if one country experienced challenges or had issues that needed to be resolved, all of our other countries could continue to thrive and carry us forward. And we wouldn’t have to be dependent on any one specific market to carry the load.”

“Our long-term focus was to create a top 10 company in the industry, a legacy company that continues generation after generation,” Scott says. “We focused on infrastructure, our global platform, all of the steps we needed to be sustainable in those markets. We nurtured relationships, obtained direct selling licenses, found the right management team, the right manufacturing partners. All of those steps have led to the growth we’ve been fortunate enough to have.”


Randy and I were in this channel many years before Jeunesse… so we were determined to have a close relationship with our distributors because we know what it’s like to be in their shoes.
- Wendy Lewis


The company’s global infrastructure includes a seamless compensation plan, which has remained unchanged for more than seven years. Its IT platform and back office software are both managed in house. While such an infrastructure isn’t terribly unusual today, it was back in 2009 when Jeunesse first came on the scene, and it’s enabled the company to remain both nimble and efficient as it processes a myriad of local currencies.

To manage the inherent complexities of the 140-plus markets it serves, Jeunesse retains five regional presidents who routinely meet to discuss additional expansion. The system works well from Scott’s perspective. “I like to empower our market leaders and give them the autonomy to leverage their natural instincts,” he says. “Most of us have worked together quite a while. I don’t even have to follow up on certain initiatives anymore because of the synergy of being aligned.” 

The company maintains a universal gating system, which dictates a series of specific criteria any prospective market must meet, including the determination of whether there are committed leaders willing to grow the territory. “The No. 1 thing we look at is the leadership, because if you don’t have the leaders, you’re wasting your time,” Wendy says. 

Each market presents its own unique challenges. “We’ve learned if you don’t do it right, you don’t get a second chance,” she adds. “You’ve got to develop a cohesive, clear strategy and scope, then execute it with efficiency.”

A Product Strategy Based on Diversification and Science

An atypical growth strategy is only part of the Jeunesse story, however. The market for anti-aging products is a highly competitive one. But Randy Ray knew he’d discovered something exceptional back in 2009, when he found himself in the Beverly Hills office of cosmetic surgeon Dr. Nathan Newman, who was renowned for his groundbreaking work with stem cells. Ray was suffering from eroded cartilage in both knees. Dr. Newman’s injectable procedure was designed to regrow cartilage and eliminate knee pain using a patient’s own stem cells, which are found within the body’s fatty tissue. 


Jeunesse KidsTM is an international nonprofit foundation with a threefold goal to release children from poverty, bring education and healthcare to children, and end childhood exploitation.


But those stem cells could also do something else: minimize premature aging without invasive surgery. In fact, Dr. Newman had the world’s only stem cell skincare facial serum sitting on his office shelf. Randy was intrigued, and after trying the serum themselves, he and Wendy put their own direct selling experience to work. The result was Jeunesse and the formation of what would be called a Youth Enhancement System, including the company’s two flagship products and a diverse lineup of additional products in the nutritional supplement, weight management and energy categories as well as anti-aging. Collectively, the products in the Youth Enhancement System serve consumers of all market segments, from baby boomers to millennials. That kind of product diversity, Scott says, has connected Jeunesse to a broad audience and maximized opportunities for revenue generation. “That’s what got us over the $1 billion hump.”

‘It’s a Multicultural, Multigenerational Family’

A company with a geographical reach as broad as Jeunesse’s serves an incredibly diverse spectrum of cultures. Clearly, then, there’s an aspect of the company’s message that resonates across cultures. What is it? First and foremost, Scott says, it’s family. His mother, Wendy, and Randy “are the mom and pop of our global family. I look at our distributors as brothers and sisters.” Scott, who with Wendy had just arrived in Dubai at the time of our interview, spends a considerable amount of time on the road working directly with distributors. “The more we travel,” he says, “the more we’re inspired to help them achieve their dreams. We see the level of commitment people have to Jeunesse, and that’s what drives us.”

Wendy estimates that she spends approximately 75 percent of her time on the road. Speaking from a distributor event in Amsterdam before heading to Prague and Budapest for an incentive trip for Asia-Pacific distributors, she says, “When we go home, we’ll be home for a month, and that’s the longest we’ve been home that I can remember.” And then she’s off to Hong Kong, where she heads at least four times a year.

“Our distributors are passionate,” she says. “There’s so much energy. They come to our events from all around the world. They like the feeling of being together, and they keep each other motivated. They know they can talk to me about anything at any time. Randy and I are out there traveling the world, working hand in hand and side by side with them.


We’ve always prided ourselves on having very simplified, clear messaging that is duplicable, and developing a culture based on our core values and mission.
- Scott Lewis, Chief Visionary Officer, Jeunesse 


“I’ve been an entrepreneur my whole life,” she adds. “Randy and I were in this channel many years before Jeunesse, and we got to know it very well, so we were determined to have a close relationship with our distributors because we know what it’s like to be in their shoes.”

A significant component of Jeunesse’s commitment to a multicultural, multigenerational family is its charitable organization, Jeunesse KidsTM. It’s an international nonprofit foundation with a threefold goal to release children from poverty, bring education and healthcare to children, and end childhood exploitation. Among the organization’s objectives is strengthening its infrastructure and resources so that distributors have the opportunity to actively participate in and even spearhead their own Jeunesse Kids projects around the world.


Scott Lewis accepts the Bravo Growth Award for Jeunesse’s $1 billion growth over the past two years.

Simple Is Key

As direct sellers, you all know that simplicity is an imperative philosophy if you hope to attract distributors and, ultimately, customers to your products and your business opportunity. 

“We’ve always prided ourselves on having very simplified, clear messaging that is duplicable, and developing a culture based on our core values and mission,” Scott says.

With that goal in mind, Jeunesse just rolled out its newest mobile app, available on both iOS and Android platforms, and part of its broader J World marketing system, comprising back office, mobile and social tools. Called “The Prospector,” the app is a comprehensive yet simple-to-use pre-loaded roadmap for converting contacts to customers. It allows distributors to select a Jeunesse product applicable to a prospect, then send her a pre-loaded text message and video in an easy, conversational tone. The prospect can move directly to the distributor’s personal website if she wishes. Distributors receive a notification when the prospect has watched the video and may view metrics, including how many minutes the prospect watched. The app also includes follow-up action items, integrates with distributors’ calendars, and sends them push notification reminders.  


The more we travel, the more we’re inspired to help them achieve their dreams. We see the level of commitment people have to Jeunesse, and that’s what drives us.
- Scott Lewis


This emphasis on streamlined yet powerful technology, along with the company’s unified infrastructure, commitment to science and family-oriented culture, has positioned Jeunesse for lasting success as it continues to strengthen and expand its global presence. 

Next Goal: $3 Billion

As she considers her company’s short but incredible history, what surprises Wendy the most? Her answer won’t surprise you. “The growth. Everybody asks ‘What did you do?’ We did the same thing we’ve always done. We put our heads down and went to work.” Having passed the billion-dollar milestone, Jeunesse now has its sights set on $3 billion, which Wendy hopes will land Jeunesse among the world’s top 10 direct sales companies.

Nearly eight years after that opportune start date, Scott says that the company’s markets are nowhere near saturated. “We’ve really just laid a foundation,” he says. “As crazy as it seems, we’re still a sleeping giant with a huge vision to fulfill.”

June 01, 2017

DSN Global 100

Bravo Leadership Award: It Works! CEO Mark Pentecost: On the Road to Legendary 

by J.M. Emmert


Click here to order the June 2017 issue in which this article appeared or click here to download it to your mobile device.


IN THIS ISSUE:

2017 DSN Global 100 List
2017 Profiles
DSN Makes its Global 100 Celebration an Event to Remember
Frequently Asked Questions about the Global 100 Ranking
By The Numbers

DSN BRAVO AWARDS:

Leadership: It Works! CEO Mark Pentecost: On the Road to Legendary
Leadership: Isagenix’s Jim & Kathy Coover: Agents of Change
Growth: Jeunesse: Forging an Uncharted Path to Billion-Dollar Growth


There has been a remarkable story unfolding at It Works! over the past few years. The Palmetto, Florida-based wellness company debuted on the Global 100 ranking in 2012 at No. 56 with $200 million in revenue for 2011; this year, its $686 million propelled it toward the top third of the list, landing the company at No. 33 in the prestigious ranking.

 
That incredible increase in revenue growth since the company’s debut on the list is in large part due to the fun and friendly company culture Founder and CEO Mark Pentecost has created, his focus on goals, and, perhaps most importantly, his philosophy on life. The former math instructor and basketball coach teaches his team to “live on the offensive,” and it is a mantra that took on a much deeper meaning as another, more personal story unfolded in 2016. In recognition of Pentecost’s leadership during the past few years of astonishing growth as well as leading his team during a personally difficult year, Direct Selling News presented him with the Bravo Leadership Award at the April 19 Global 100 Celebration in Dallas.

Offense vs. Defense

Things happen to all of us, and when we do encounter a challenging time it’s easy to take up a defensive posture, on our heels, watching what life throws at us. But for Coach Mark, as Pentecost is still called, it is during those times when people can grow the most. 

His “live on the offensive” philosophy of life reminds Wrapreneurs—It Works! business owners—of a simple truth: When you are on offense, you score, you celebrate, you do an end-zone dance; when you are on defense, you are just trying to keep the other team from scoring, and you never get to celebrate life.

“So, I really coach about ‘on the offense,’ ” says Pentecost. “And the first step is just showing up. I want my team members showing up every day even when they don’t feel like it. That’s when the business really grows.” 

It’s a philosophy Pentecost has taught for years; however, in 2016 he expanded it. “We added a word about being on the offense: We call it the road to legendary,” he says. “Satisfaction sneaks up on us. We say, ‘Hey, that was a good day.’ We get satisfied, and if we do that too many days in a row, we stop growing. But stretching ourselves? Legendary. We say: ‘Good’ is paying off your credit cards; ‘great’ is paying off your mortgage; ‘legendary’ is paying off your mom’s bills or your parents’ house.” 


Life tries to punch us. It’s so much better when you’re attacking life, when you’re on the offense, and you’re dictating instead of just accepting whatever happens.
- Mark Pentecost, Founder and CEO, It Works!


Pentecost’s teaching relates not only to business, but life as well. Whether it is family, financial or health issues, living on the offensive changes one’s perspective and the approach to life challenges. It’s similar to boxing, says Pentecost. “If you’re on the offensive, you’re the one punching; on defense, you’re the one getting punched. Life tries to punch us. It’s so much better when you’re attacking life, when you’re on the offense, and you’re dictating instead of just accepting whatever happens.” 

Last year, life did take a big swing at Pentecost. It should come as no surprise that he swung back hard. He was not going to let a phone call undo everything he had built, and neither was his It Works! team. 

A Team Effort


Through its major partnerships, the It Works! Gives Back Foundation has sponsored over 2,000 children in need in five countries and has provided over 3 million meals through Children’s Cup, among other givings. 

The call was unexpected. Hours before he was to fly to a team event, Pentecost listened as his doctor relayed the news that he had cancer. “My team had great plans for 2016,” he says. “I set personal goals and wanted to work with my team in the field every day. I wasn’t planning on a journey that involved cancer.”

The journey to success, and helping others achieve success, is not a straight line. Any CEO or direct selling leader can attest to that. Rather, it’s a squiggly line, Pentecost says, and cancer had the potential to make his journey an extremely squiggly one. However, to understand Mark Pentecost and understand why It Works! has climbed in the Global 100 rankings under his leadership, one has only to look to his response to the news: Squiggly lines, to him, are opportunities, and they make our personal journeys our success stories. 

Immediately following the cancer news, new opportunities with his family and in the workplace started to take shape in Pentecost’s life. “My family got closer than ever before,” he says. “All three of my kids got involved in the company, and my Corporate Leadership Team stepped up to take on more responsibility. We decided, as a team, that together we were going to kick cancer’s butt.” 

We can never plan for every obstacle life throws our way; however, as Pentecost has learned, what we can do is surround ourselves with the best team possible so that when life does throw a punch, a support team is in place to face what comes next as well as to confidently continue down the squiggly road ahead. “It’s these times that show you what’s important and what’s not important,” he says. “I want to lead a company of integrity—a company of great leadership and a unified team. I want to change lives and help families around the world by being a vehicle of hope on the road to legendary.” 

One Team, One Vision


It Works! debuted on the Global 100 ranking in 2012 with $200 million in revenue for 2011; this year, its $686 million propelled it towards the Top third of the list, landing the company at No. 33.


Changing people’s lives has been the No. 1 goal at It Works! since Pentecost and his wife, Cindy, founded the company in 2001. In the 15 years it has been in business, the company has changed its physical location—from the original home base in Michigan to a world-class global headquarters in Palmetto, Florida—but everything else has remained the same. That is due to Pentecost’s consistent leadership and commitment to a company culture built on the core values of friendships, fun and freedom. 

“We’ve been very intentional, as we’ve grown and added so many new people, that we keep our culture, which to me is our secret sauce,” he says. “We [company leaders] meet regularly with HR to make sure we don’t wake up one day and, because of this growth and all the new people, it’s not who we were.” 

What also remains constant from the day It Works! opened its doors is Pentecost’s focus on goals. It is that focus to which he attributes a large part of the phenomenal success his company has enjoyed over the past five years. He says. “We set goals and—although it is never that straight line to your goals, you have to readjust all the time—we really united our team. We called all our events One Team, One Mission, and we were really focused on what it was we were trying to do: Keep it simple; stay focused.”

Great leadership sets the vision and provides the pathway for people to follow and succeed, and Pentecost does this very well. He says, “We’re truly a vehicle of hope through our products, through our business, through our culture. We just get people dreaming bigger, and I think staying focused is what has helped us have the growth and success that we’ve had.”


It Works! President and CEO Mark Pentecost accepts the Bravo Leadership Award for not only the company’s amazing growth story but also for his personal inspiration while facing one of life’s toughest challenges head on.

Giving an Assist

Great leadership also knows no bounds when it comes to helping others. With the growth and success that has come to It Works!, the company, employees and Wrapreneurs have the opportunity to engage in philanthropic efforts that support the greater global community and several causes through the It Works! Gives Back Foundation. 

Text

Each year, the Foundation supports four major organizations but also encourages anyone in the company to find opportunities to assist their own communities. This One Team, One Mission philanthropy extends throughout the company’s 21 markets. “It’s a grassroots giving back,” says Pentecost. “We try to plant seeds—what can you do in your area with your teams to really make a difference. Anything we do, we look at it and say that is a great idea, but how can we take it to a whole ’notha level and make it legendary.”

Through its major partnerships, the It Works! Gives Back Foundation has sponsored over 2,000 children in need in five countries and has provided over 3 million meals through Children’s Cup; provided natural disaster relief for over 10,000 families through Samaritan’s Purse; and donated over 600 care packages to children battling pediatric cancer throughout the United States and Canada through The Payton Wright Foundation. It has also helped fund research for a cure for childhood cancers through The V Foundation. 

In addition, for the past two years the Foundation has worked with Selah Freedom to open a safe house for survivors of sex trafficking; it has served over 575 survivors of human trafficking through training, advocacy and hope, and has educated over 40,000 children on human trafficking. 


I realize now that every day is a blessing. I don’t want every day to be just good. I don’t want every day to be just great. I want every day to be legendary.
- Mark Pentecost


The Foundation is near and dear to Pentecost’s heart, and he is very proud of what the entire It Works! team has been able to accomplish through it. He also recognizes the reciprocal nature of caring for and about others. “To be blessed,” he says in true leader form, “you have got to be a blessing.”

The Game Plan

More than 150,000 Wrapreneurs sell It Works! personal-care, lifestyle and apparel products worldwide. The company is looking at other markets down the road, but for now most of the international expansion efforts are focused on Europe, Canada and Australia.

As he watches his company continue to grow, Pentecost is reminded how direct selling helped a struggling schoolteacher and basketball coach change his life. “This industry can bring families together and it can help people get out of debt,” he says. “It is such an answer for so many that we are going to continue to focus on our sales team and how we can help change lives.” 

TextMark Pentecost shows the team spirit of It Works! during the Global 100 Celebration.

That has always been his goal: to see if It Works! could help people to step up and better their lives. He is most happy seeing people who didn’t have confidence gain that confidence, or realize that they are meant for so much more in life.

Last year, life presented Pentecost with a frightening challenge, but he knows there is much more ahead for him. “I realize now that every day is a blessing,” he says. “And I don’t want every day to be just good. I don’t want every day to be just great. I want every day to be legendary.”

June 01, 2017

DSN Global 100

Bravo Leadership Award: Isagenix’s Jim & Kathy Coover: Agents of Change 

by J.M. Emmert


Click here to order the June 2017 issue in which this article appeared or click here to download it to your mobile device.


IN THIS ISSUE:

2017 DSN Global 100 List
2017 Profiles
DSN Makes its Global 100 Celebration an Event to Remember
Frequently Asked Questions about the Global 100 Ranking
By The Numbers

DSN BRAVO AWARDS:

Leadership: It Works! CEO Mark Pentecost: On the Road to Legendary
Leadership: Isagenix’s Jim & Kathy Coover: Agents of Change
Growth: Jeunesse: Forging an Uncharted Path to Billion-Dollar Growth


Over the five-year period from 2010 to 2015, health and wellness company Isagenix International grew from $256 million to $890 million in revenue, a 247 percent increase. 2016’s revenue of $924.3 million then placed them at No. 26 on this year’s Global 100 ranking. In addition, Associate growth exploded from 25,000 to 506,000, a 1,923 percent increase, during that same period. Today, the company has more than 550,000 customers worldwide.

Any company experiencing that kind of tremendous growth must have exceptional leadership at the top, and this is certainly true at Isagenix. Partners in both business and in life, co-founders Jim and Kathy Coover have spent the past decade and a half serving employees and Associates in their near billion-dollar company. 

In recognition of their exceptional leadership, both of their company as well as within the direct selling channel, Direct Selling News presented the Coovers with the Bravo Leadership Award during the DSN Global 100 Celebration held in Dallas on April 19.


To the Coovers, their 15th anniversary and the $5 billion marker represent the vast number of lives that have been touched in a positive way through their company. 


Recently the Coovers enjoyed celebrating Isagenix’s 15th anniversary. It seemed fitting that on that same day, March 23, the Gilbert, Arizona-based company reached another major milestone: cumulative sales of $5 billion. The company moved to Gilbert last year when it finished construction on its new 150,000-square-foot three-story headquarters, now home to 650 of the company’s over 1,000 employees. Thrilled to be celebrating the town’s largest business by revenue, Mayor Jenn Daniels declared March 23 Isagenix Day. 

The Coovers, however, are most delighted because for them, their 15th anniversary and the $5 billion marker represent the vast number of lives that have been touched in a positive way through their company. 

Lofty Goals

To impact world health and free people from physical and financial pain: That was the Coovers’ vision for Isagenix when they founded the company in 2002. It was a lofty goal for a company with fewer than 10 employees and five initial products. But they had a plan: add incremental products that provided incremental benefit to customers. Over the past 15 years, the products have continued to evolve, as have the company’s internal systems and the tools they offer to the field to build their businesses.

The Coover’s philosophy is that if it is not right for the customer, it is not right for the company, and this philosophy is echoed by all of the staff. Today the company has more than 100 products, packs and systems that make up their core offerings focused on weight loss, performance, healthy aging and energy products. 


The investments we have made have and will continue to position us well as we move forward.
- Jim Coover, Co-Founder and CEO, Isagenix 


Of course, one of the most important offerings Isagenix provides is the entrepreneurial business opportunity. The core principle that has enabled Isagenix to have continuous growth from its inception hasn’t changed: It is creating the best experience for Associates. The Coovers believe that the best way to do that is through direct selling. In fact, when first envisioning what their company would be, they made a commitment to be a legacy company and an ambassador for the direct selling profession. 

“We wanted to fulfill the promise of what our profession makes possible, and that’s to create a vehicle that helps people to take control of their health as well as their financial future,” Jim says. “Direct selling at Isagenix allows people to engage without a significant investment, to participate in developing a residual income, to join a community that supports them in personal growth. I think this is the greatest profession in the world, and I think our best years are ahead of us.” 

Positive Progress

Growing into a top-30 Global 100 company does not come without its pains, however. Like any company experiencing growth, there are challenges. The key is to act quickly and keep moving forward. “At Isagenix, our inclusive and collaborative culture allows us to tackle challenges and find solutions that work for everyone,” says Kathy Coover, who serves as Co-Founder and Executive Vice President. “There will always be issues in any business, but the key is to find the right solution and immediately make the adjustment. Most importantly, we move forward with a positive attitude.” 


We wanted to fulfill the promise of what our profession makes possible, and that’s to create a vehicle that helps people to take control of their health as well as their financial future. 
- Jim Coover


One of Isagenix’s challenges was IT. Technology is a fast-moving target for any company; when the company began, the iPhone did not exist. Consider all the technological advances that have occurred during the past 15 years, and it is easy to understand the challenges for a company that was integrating a high-touch profession like direct selling into a high-tech platform. However, as Jim Coover sees it, the challenge has been a real opportunity. 

“The investments we have made have and will continue to make position us well as we move forward,” he says. “I’ve always said I never want the company to be the limiting factor in how many people’s lives we can affect in a positive way.” As a result, the Coovers heavily invest in both infrastrucure as well as in tools and incentives for the field to stay strong and motivated.  

TextIsagenix co-founders Jim and Kathy Coover and their son, Erik Coover.

Another challenging area has been international expansion. Isagenix has a presence in 11 markets across the Americas, Asia and Australia. Every new country that the company enters requires different regulations for the efficacy and safety of products; thus, expanding into countries has taken more time and expense than the Coovers envisioned. However, they remain committed to not compromising on the quality and integrity of the results people can ultimately enjoy. The company is continuing its expansion pursuits, including its soft launch in the U.K. in May. 

Servant-Leadership

What allows the Coovers to move seamlessly through the challenges is their servant-leadership philosophy and the culture they have created at Isagenix. Jim and Kathy believe they truly are in partnership with the field; they work hard at making sure the corporate staff, whose role it is to support the Associates, is connected with the same values and goals, so they have a clear vision of what the Coovers are trying to accomplish and what everyone’s role is within the company framework. 

“Leaders create the vision and strategy for the overall direction of the company,” Kathy says. “It’s our responsibility to ensure clear goals and actions are communicated to everyone on our team in order to be successful.”

The partnership works because the Coovers have built a culture of integrity. “I know how important it is to create focus, to ensure that people have a clear vision,” Jim adds. “I try to show people what’s possible. That’s worked well in terms of how we have built our team internally, and how we have built our field leadership as well.”  

And it is teamwork that has really driven the company’s success. When Isagenix first began, Jim wore a lot of hats. He has since delegated much of the day-to-day decision-making because he has built a first-rate team to support him. He credits a good bit of the company’s growth to this team building and surrounding himself with the best people possible, and then empowering them to grow into their own potential. He says, “We felt if we did it right that we would attract the right people and that has certainly been the case, both in terms of our corporate leadership and our field leadership.”

Along with all of this focus on the field, the Coovers also highly value their employees. They have created programs that reinforce their commitment by helping them grow as individuals and empowering them to enjoy the best quality of life, both physically and through their association with the company. Recently, based on feedback from employees, the executive team implemented new paid maternity and paternity leave policies, as well as granted everyone an additional week of paid time off.


There will always be Issues in any business, but the key is to find the right solution and immediately make the adjustment. Most importantly, we progress forward with a positive attitude.
- Kathy Coover, Co-Founder and Executive Vice President, Isagenix


The Coovers’ commitment to their employees is reflected in Isagenix being recently named one of the “Best Places to Work in Direct Selling” for 2017, by Direct Selling News and published in our April issue.  

That spirit of helping others also extends to the company’s philanthropic efforts. As they started to enjoy success, the Coovers felt blessed, and they wanted to share those blessings with people in need, especially children. To date, nearly $4 million has been contributed as a company and as individuals to support that effort. 

As Isagenix began to grow globally, the Coovers wanted to find a charity that was doing good work and had a bigger footprint around the world. It aligned with the Make-A-Wish Foundation, and to date has raised $5.6 million and helped to grant 630 wishes. “Our field and staff have embraced making a difference, so we think our work is just beginning,” Jim says. “It takes about $7,000 to grant a wish, so we have lofty goals on the impact we can have on children around the world.” 

In addition, Isagenix contributes to many other charities that align with their core values through its charitable giving program, including the Arizona Better Business Bureau Ethical Athletes Award, Food for Thought, Southwest Autism Research & Resource Center, and many others through its Global Give Back Day, which takes place annually on May 20.

Leading the Way

For 2016, Isagenix continued its steady climb toward the $1 billion milestone, earning $924 million. With the recent launch in the U.K., significant growth in markets such as Australia, Canada, New Zealand and Mexico, and the U.S. market continuing to report double-digit growth annually, the company seems poised to surpass $1 billion in the coming year. 


It’s our responsibility to ensure clear goals and actions are communicated to everyone on our team in order to be successful. 
- Kathy Coover


Jim also expects the company to double in size within three years, making Isagenix a multibillion-dollar player in the channel. Eventually, the Coovers want to be the undisputed leader for direct selling’s health and wellness sector.

What might take a bit longer to achieve, however, is a goal that was part of their original vision back in 2002. Their 25-year plan included the goal to become the largest health and wellness company in the world. Not just in direct selling, but in the overall health and wellness industry. “I think more in terms of when are we going to pass Johnson & Johnson,” says Jim. “We’re part of a health paradigm that is growing rapidly, where people recognize that drugs are not the answer and they need to start taking responsibility for their own health. We intend to continue leading the way in that whole movement.”

And they intend to do it using direct selling as the vehicle. “I think this is an opportunity for all of us to step up and demonstrate to the world what a powerful distribution channel we are, but more importantly, what a powerful agent of change in this world we can be,” Jim says.

June 01, 2017

DSN Global 100

DSN Makes Its Global 100 Celebration an Event to Remember

by DSN Staff


Click here to order the June 2017 issue in which this article appeared or click here to download it to your mobile device.


IN THIS ISSUE:

2017 DSN Global 100 List
2017 Profiles
DSN Makes its Global 100 Celebration an Event to Remember
Frequently Asked Questions about the Global 100 Ranking
By The Numbers

DSN BRAVO AWARDS:

Leadership: It Works! CEO Mark Pentecost: On the Road to Legendary
Leadership: Isagenix’s Jim & Kathy Coover: Agents of Change
Growth: Jeunesse: Forging an Uncharted Path to Billion-Dollar Growth


In appreciation of those companies that lead the way in offering an unparalleled opportunity for individuals to start their own businesses through shared connections, Direct Selling News honored the group during its eighth annual DSN Global 100 Celebration. The awards ceremony and dinner, held April 19 at the InterContinental in Dallas, served as the backdrop for the unveiling of our exclusive ranking of the top revenue-generating companies in direct selling.

DSN’s Lauren Lawley Head and John Fleming hosted nearly 400 executives from around the world. In fact, the Global 100 list represents companies based in 17 countries this year and is a collective effort to show the impact and potential of the $183.7 billion direct selling industry. 

“Each year, the DSN Global 100 gives us an opportunity to recognize the leading companies in direct selling today,” said Lauren Lawley Head, Publisher and Editor in Chief of Direct Selling News. “The companies on the list represent a wide range of products and services, but they share a passion for developing a community of independent business owners who share those products and services with customers in their personal networks. It is a unique and powerful distribution channel.”

Fleming added, “The announcement and reveal of the top 100 Direct Selling Companies in the world is a most exciting moment in our year! Congratulations are always extended to those companies who are listed.”  He continued, “The DSN Global 100 is not a competition, it is a listing. The privately held companies who voluntarily submitted their certified revenue for the previous year contribute to the transparency needed to constantly inform a global audience of the impact direct selling companies are making on economies and individual lives around the world.”

For the fifth consecutive year, Ada, Michigan-based Amway claimed the top spot as the No. 1 direct seller in the world, with $8.8 billion in revenue in 2016. The company is truly a global giant, with a large portfolio of brands—including the best-selling nutritional brand in the world, Nutrilite, skincare brand Artistry, as well as the XL Energy Drink business. Amway does business in over 100 markets through more than 3 million independent Amway business owners.

In attendance and accepting the award on behalf of Amway was Jackie Nickel, Chief Marketing Officer of the Americas. 

“We’re truly honored to be recognized as a leader in this great industry,” Nickel said. “We credit such a privilege to our millions of Amway Business Owners worldwide, who are at the heart of our business.”

Special Guests

DSN welcomed very special guests to the dinner, esteemed members of Direct Selling Association’s Hall of Fame and the Direct Selling Education Foundation’s Circle of Honor: Charlie Orr, CEO of Canada’s Immunotec; Brian Connolly, CEO of AdvoCare; Stan Fredrick, Chairman of the Board, Mannatech Inc.; and our own John Fleming. 

Also in the audience was President of the Direct Sellers Association of Canada James Smith and Chairman of the Direct Selling Education Foundation Dave Wentz.

DSN Global 100

In all, the Global 100 companies achieved more than $82 billion in net sales in 2016, up a fraction from 2015. 

The Top 10 companies achieved $40.53 billion in revenue, with the total number of salespeople at about 24 million. It is also a testimony to the power and strength of the direct selling channel that a number of companies reached milestones in 2016. Ten companies grew $100 million or more last year, and 22 companies each reported annual revenue of $1 billion or more. 

TextJackie Nickel, Chief Marketing Officer of the Americas at Amway, accepts the night’s top prize for the company, which placed No. 1 on the Global 100.

By region, there were 46 companies from North America in the Global 100; five from South America; nine from Europe/Africa; and 40 from Asia/ Asia-Pacific. A total of 17 countries were represented on the list—Brazil, China, Colombia, Cyprus, France, Germany, India, Japan, Malaysia, Mexico, New Zealand, Peru, Russia, Singapore, Switzerland, the United Kingdom and the United States. 

Companies appearing in the ranking for the first time included Quanjian from China (No. 8); Marketing Personal from Colombia (No. 81); Global Ventures Partners from the U.S. (No. 92); and Shinsei from China (No. 99). Companies returning to the list were JoyMain from China (No. 13); SUN HOPE from China (No. 23); LegalShield from the U.S. (No. 43); Faberlic from Russia (No. 48); Merro International from China (No. 56); KK Assuran from Japan (No. 64); New Image Group from New Zealand (No. 86); Vestige Marketing from India (No. 91); Immunotec Research from Canada (No. 96); Nefful from Singapore (No. 97); and Captain Tortue Group from France (No. 98).

The Bravo Awards

Each year, the DSN Global 100 celebration endeavors to recognize an industry executive who embodies exceptional leadership qualities that have propelled his or her company to extraordinary new heights. Whether it is inspirational vision that has built solid corporate cultures, innovation that has strengthened the company infrastructure, or creativity that has created new opportunities for independent business owners, our Bravo Leadership Award aims to acknowledge such achievements of a direct selling leader.

This year, one recipient for the Bravo Leadership Award was simply not enough, for there were two remarkable stories that unfolded. The first Bravo Leadership Award was presented to Jim and Kathy Coover, co-founders of Isagenix and a leadership team that has grown their business 247 percent over the past five years, propelling the company into the Top 30 of the DSN Global 100 with $924.3 million in annual revenue. The team recently celebrated their 15th year in business

“As leaders, I think we have an incredible opportunity to step up and demonstrate to the world what a powerful distribution channel we are, and more importantly, what a powerful agent of change we can be,” Jim said. “We have always tried to stay true to our motto of ‘if it isn’t right for our associates and customers, it isn’t right for the company.’ ” 

The second recipient of this year’s Bravo Leadership Award was Mark Pentecost, Founder and CEO of It Works! His wellness company did not enter the Global 100 ranking until 2012, when it debuted at $200 million, but over the past four years, the team at this company has grown its revenue 274 percent, reaching No. 33 with $686 million. 

TextDebbie Coffey, who accepted Avon Products’ award for its No. 2 ranking on the Global 100, reinforced the importance of companies helping people change their lives.

Leading It Works! to exponential growth during the past few years was reason enough to recognize Pentecost; however, the way in which this former math teacher and basketball coach has taught his team to “live on the offensive” is truly inspirational. As he shares with the audience his personal—and victorious—battle with cancer, he tells a very compelling story of the individual courage to face life’s toughest challenges head on, while doing so with an abundance of integrity and grace

“My team had big plans for 2016, having to deal with cancer wasn’t one of them,” he said. “We can’t plan for every obstacle that is thrown our way, but we can put the team in place and surround ourselves with the best people. When something is thrown your way, you have the support to handle it.”

Pentecost still has big plans for It Works! and for how he and his team can impact the world by being positive change makers. “Good is having a strong company. Great is increasing profits or opening new markets. But legendary is changing the lives of people who need it the most,” he said.

Youth enhancement brand Jeunesse received the Bravo Growth Award for its increase in annual sales by $1 billion over a two-year period—from approximately $400 million in 2014 to $1.4 billion in 2016. It debuted on the Global 100 in 2012 with $65 million in sales, breaking into the top 20 of the Direct Selling News Global 100 list in 2015 and advancing to the No. 14 spot this year with $1.41 billion in net sales. Based in Lake Mary, Florida, the company sells its anti-aging products and nutritional supplements in 140 global markets.

Chief Visionary Officer Scott Lewis accepted the award and commented, “We are pleased to have been chosen by Direct Selling News as their 2017 Bravo Growth Award recipient and appreciate this meaningful recognition. In addition, it is truly an honor to be listed among the top 15 companies in our industry, and we are grateful for the hard work and dedication of our Jeunesse family from across the globe, who we congratulate for making this accomplishment possible.”


Direct Selling News’ Lauren Lawley Head and John Fleming toast the Global 100 honorees.

Impacting Lives for Better World

Debbie Coffey, Vice President, Corporate Communications, New Avon LLC, who accepted Avon Products’ award for its No. 2 ranking on the Global 100 with sales of $5.70 billion in 2016, reinforced the importance of companies helping people change their lives. She is also an Avon Foundation board member.

“Thank you Direct Selling News for this recognition of Avon Products, Inc. performance in 2016. We owe our success to our 6 million Avon Representatives around the world who are changing their lives and the lives of those around them through the Avon opportunity. They are our greatest motivation and inspiration,” said Coffey.  

TextMarily Penttinen accepts Mary Kay’s award for placing No. 5 on the Global 100.

“2016 was an exciting year for us at Avon, It was our 130th anniversary, and, as an Avon Foundation Board Member, I am very proud to share that it was the year we reached $1 billion raised globally for women’s causes,” added Coffey, who is also an Avon Foundation board member. “We are so proud to give women living with breast cancer and domestic violence help for today and hope for tomorrow.”     

Jackie Nickel, who accepted Amway’s award for No. 1 direct seller in the world, spoke too about purpose and the efforts the company takes to have a positive impact on people’s lives.

“This award is a testament to the work we do each and every day to help people live better lives, discover their potential and achieve their goals,” she said.

The following companies sponsored tables at the DSN Global 100 Celebration: 

Platinum Table Sponsors – ACN, Amway, Isagenix, It Works!, Jeunesse, New Avon, Total Life Changes and World Global Network; Gold Table Sponsors – AdvoCare, Ambit Energy, Mannatech, Mary Kay, MONAT, Oriflame, Plexus Worldwide, SeneGence, Stream, WorldVentures, Young Living and Zurvita.

This year, six special suppliers also chose to support Direct Selling News in sponsorship of the banquet: SUCCESS Partners, Avalara, Exigo, Hyperwallet, InfoTrax and Multi Image Group.

June 01, 2017

DSA News

DSEF Academics Yield Data and Third-Party Validation

by Josephy N. Mariano



Click here to order the June 2017 issue in which this article appeared or click here to download it to your mobile device.


IN THIS ISSUE:

2017 DSN Global 100 List
2017 Profiles
DSN Makes its Global 100 Celebration an Event to Remember
Frequently Asked Questions about the Global 100 Ranking
By The Numbers

DSN BRAVO AWARDS:

Leadership: It Works! CEO Mark Pentecost: On the Road to Legendary
Leadership: Isagenix’s Jim & Kathy Coover: Agents of Change
Growth: Jeunesse: Forging an Uncharted Path to Billion-Dollar Growth


As champion and advocate for the direct selling business model, DSA is tasked with preserving an environment in which direct selling companies can operate effectively and free from undue regulation. Efforts to educate policymakers, media and the public on the value of direct selling as a go-to-market strategy and entrepreneurial opportunity are all the more effective when made in collaboration with credible third-party validators, backed by sound and compelling data.

The Direct Selling Education Foundation (DSEF), of which I have the honor of being President, partners with the academic community to expand knowledge of the direct selling model through education and research initiatives. Under the stewardship of my colleague and DSEF Executive Director Gary Huggins, the DSEF team is working diligently to not only meet but exceed its targets of engaging students and building meaningful relationships with professors and other influencers.

Through classroom content and campus programs, such as a recent entrepreneurship and corporate social responsibility event at the University of San Francisco (USF) and hosted by DSEF Board Member and Fellow Dr. Elizabeth Davis, Dean of the School of Management, USF, students are given insights into direct selling as a path to micro-entrepreneurship. These business leaders, policymakers, media representatives, and consumers of tomorrow hear from DSA member company executives and learn about real-world business scenarios and the corporate decision-making processes of dynamic and conscientious companies.

DSA’s advocacy is “evidence-based,” relying on verifiable statistics and the validation of academics and opinion leaders. The DSEF Fellows Program—currently numbering nearly 70 leading academics—is yielding a rich supply of data and statistics that underscores the validity and vibrancy of our business model. The Program is also cultivating a cadre of credible third-party validators whom DSA can deploy to speak objectively about direct selling.

DSA members can also leverage DSEF research when conveying to the public, legislators, and would-be salespeople the legitimacy and scope of direct selling. The Socio-Economic Impact Study (SEIS) of Direct Selling in the United States, for example, measures and reports on the economic and social effects of direct selling. DSA invited DSEF Fellow and SEIS partner, Dr. Robert Peterson, Associate Dean for Research, John T. Stuart III Centennial Chair in Business Administration, and Charles Hurwitz Fellow, IC2 Institute at the University of Texas at Austin, to present data from SEIS at a DSA and Congressional Direct Selling Caucus event on Capitol Hill in March. The event was well attended by Members of Congress, congressional staff, media, and other guests, who gained a far greater appreciation of how direct selling benefits the American people and economy.

At DSA’s Annual Meeting this month, Dr. Anne Coughlan, DSEF Fellow and Polk Brothers Chair in Retailing, Professor of Marketing at the Kellogg School of Management at Northwestern University, will be presenting DSEF’s Join Stay Leave study, which examines the many reasons why sellers join, stay, and leave DSA member companies—an invaluable tool for learning more about the motivations for becoming involved with direct selling.

The unbiased opinions of independent third-party validators such as Drs. Davis, Peterson, and Coughlan and other DSEF Fellows, based on objective research and data, carry a great deal of weight and underscore the credibility of direct selling to a degree that is not easy, either for member companies or DSA alone, to obtain. I urge all direct selling company executives to visit dsef.org to learn more about how to support and take part in DSEF research initiatives and campus events.


NameJoseph N. Mariano is President of the U.S. Direct Selling Association and the Direct Selling Education Foundation.

June 01, 2017

DSN Global 100

Frequently Asked Questions about the Global 100 Ranking


Click here to order the June 2017 issue in which this article appeared or click here to download it to your mobile device.


IN THIS ISSUE:

2017 DSN Global 100 List
2017 Profiles
DSN Makes its Global 100 Celebration an Event to Remember
Frequently Asked Questions about the Global 100 Ranking
By The Numbers

DSN BRAVO AWARDS:

Leadership: It Works! CEO Mark Pentecost: On the Road to Legendary
Leadership: Isagenix’s Jim & Kathy Coover: Agents of Change
Growth: Jeunesse: Forging an Uncharted Path to Billion-Dollar Growth


Why did DSN start the Global 100 list?

DSN created the Global 100 list to acknowledge the achievements of direct selling companies and to provide a clear picture of the magnitude of the industry. Just as every credible industry ranks its players—through Inc. 500, FORTUNE 500, and Forbes’ lists—DSN wanted to show the public what a viable and credible industry direct selling is.

Who uses the Global 100 list?

The DSN Global 100 list offers a unique perspective on the global impact the industry has on economic and social levels. It provides a scope of learning not only for industry members, but also for researchers, investors and those seeking opportunities within the industry. When DSN began the ranking in 2010, it was committed to creating a fair ranking that would showcase a transparent industry, thus providing credibility and consumer confidence as well as research support for those desiring information on direct selling companies. 

What research process is utilized to produce the Global 100 ranking?

The identification of the companies to include in the DSN Global 100 list is the culmination of months of research and the cooperation of many individuals throughout the world. Wherever possible, the DSN team seeks out public records and documents for publicly traded companies. Additionally, the team reaches out to the private companies that may qualify for the ranking. Research begins in December and continues through to the publication of the Global 100 list. To fully reflect the global reach of direct selling, each year, DSN has been able to extend the boundaries of research by working with research partners, including China-based DIR Group, to obtain information on international companies.

How is privately held company data compiled?

Nearly four-fifths of the DSN Global 100 data is derived from privately held companies. Most of this data comes from the companies themselves, which submit a revenue number validated by the CEO and certified by a qualified agent, and when they submit they enhance the value of the industry’s strategic objective to showcase a much more transparent business model. These companies could have chosen not to participate; however, their cooperative spirit, which so exemplifies this unique industry, makes the Global 100 ranking possible. 

What revenue number does DSN ask for in the research process?

To participate in the DSN Global 100, a company need only submit a net revenue number validated by the CEO and certified by a qualified agent. DSN does not request confidential financial documents. DSN respects the financial privacy of all direct selling companies, asking that a company only reveal the annual revenue number that will allow it to be placed in the ranking.

What is the purpose of the Revenue Certification Form (RCF)?

In an effort to further ensure the integrity of the Global 100 list, DSN instituted the Revenue Certification Form, or RCF. The RCF requires all private companies to have their revenue number validated by the CEO and certified by a qualified agent (either at the applicant company or an outside independent source). DSN believes any company performing in a manner warranting identification and recognition as one of the Global 100 companies would proudly share its revenue number in a manner deemed fair to all. 

Why isn’t Value-Added Tax included in the revenue number? 

The ranking criteria is net sales revenue from direct selling operations before commissions and without value-added tax. The VAT, from DSN’s perspective, is certainly an integral part of the salesperson’s life; however, it is not a part of the corporate revenue as we track it. 

Why aren’t some companies I know of on the list?

There are both nationally and internationally based companies worthy of recognition in the DSN Global 100 ranking that do not appear on the list. If you do not see a specific company it could be that (1) the company was contacted but declined to participate, (2) the company did not respond to requests, or (3) the company did not submit information in time. Each year, new companies come onto the radar screen and every attempt is made to connect with them. 

June 01, 2017

News in Brief

News in Brief, June 2017



Click here to order the June 2017 issue in which this article appeared or click here to download it to your mobile device.


IN THIS ISSUE:

2017 DSN Global 100 List
2017 Profiles
Building Strategy for Future Growth
DSN Makes its Global 100 Celebration an Event to Remember
Frequently Asked Questions about the Global 100 Ranking
By The Numbers

DSNBRAVO AWARDS:

Leadership: It Works! CEO Mark Pentecost: On the Road to Legendary
Leadership: Isagenix’s Jim & Kathy Coover: Agents of Change
Growth: Jeunesse: Forging an Uncharted Path to Billion-Dollar Growth


Amway North America California Business Center Opens

Amway recently opened the doors to its newest experiential facility, the California Business Center (CABC). The new facility, located in Buena Park, will empower Amway Independent Business Owners (IBOs) with resources for better business-building.

The CABC is a dynamic, high-impact experience center that offers flexible meeting spaces, training and demonstration areas, product and sampling zones, an Amway historical gallery, and in-store purchasing options for IBOs, including Amway’s high-quality products from its leading nutrition, beauty and home brands.

Amway Engineering and Facilities partnered with Tom Rakestraw Architects of California to develop the CABC as an expansion of Amway’s Center for Nutrilite Experience. The two experiential Centers now occupy the shared space. The location was originally home to Amway’s first Nutrilite facility, which opened in 1948.

“We are excited to announce the opening of the California Business Center as a part of the ongoing investment in our IBOs, building credibility for their businesses and helping them achieve their goals,” said Jim Ayers, Managing Director, Amway North America. “Having a physical space to experience all facets of our business opportunity—meet, train, demo and purchase product—is a tremendous value that we’re proud to now deliver on both coasts through the new facility as well as our New York Business Center at Citi Field.”


Herbalife Q1 Results Exceed Expectations

Los-Angeles, Calif.-based Herbalife reported net sales of $1.1 billion for the first quarter of 2017, and volume point growth of 1 percent compared to the prior-year period. Net sales increased in China (5 percent), EMEA (6 percent) and Mexico (8 percent); sales decreased in North America (7 percent), Asia Pacific (2 percent) and South and Central America (8 percent).

China sales and volume significantly exceeded expectations primarily due to the impact on timing of sales and volume, which resulted from a price increase announced in March 2017, effective April 1, 2017. The company believes this shifted member purchases into the first quarter, which would likely have been made in the second quarter of the year.

On a reported basis, first quarter net income was $85.2 million, or 98 cents per diluted share, compared to net income of $95.8 million, or $1.12 per diluted share, for the first quarter of 2016.

“We’ve made a solid start to 2017, exceeding our EPS guidance,” said Michael O. Johnson, Chairman and CEO of Herbalife.

Herbalife was No. 3 on this year’s DSN Global 100 ranking of the top direct selling companies in the world. The company reported earnings of $4.5 billion for 2016.


Zija International Acquires XANGO

Zija International, the Lehi, Utah-based direct seller, announced that it has acquired XANGO, the health and wellness company also based in Utah that was the first to market a premium mangosteen beverage to consumers worldwide.

The acquisition was made possible through the efforts of Zija’s Founder Ken Brailsford, who also co-founded Nature’s Sunshine and founded Enrich International (now Unicity).

“Every one of the XANGO founders has worked with Ken during our careers,” said XANGO Founder, CEO and Chairman Aaron Garrity. “Ken brought my partner Joe and I into the direct selling business and shaped the early parts of our careers. He is a mentor and a trusted friend. Ken has always shown deep respect for what we have all built with XANGO, and he shares our belief that a company in our industry must make distributors its top priority.”

Zija executives say the company is poised to drive change in direct selling and continue a path of accelerated company growth, led by President and CEO Ryan Palmer. XANGO distributors, which number more than 2 million in over 40 international markets, will now have access to the entire Zija catalog.

XANGO was founded in 2002 by brothers Joe and Gordon Morton and Aaron Garrity. Brailsford founded Zija four years later, in 2006.


Herbalife Sponsored Triathlete Wins IRONMAN


Heather Jackson, a triathlete sponsored by global nutrition company Herbalife, won the women’s race at the IRONMAN 70.3 Peru in April, and then she donated all proceeds to the Peruvian people devastated by the recent floods that displaced an estimated 900,000 families.

“I’m always so grateful for the opportunity to race, and meanwhile, thousands of people have lost their homes,” said Jackson. “Peru, Herbalife Nutrition and the entire Herbalife Nutrition community have given me so much in so many ways that it is the least I can do to give back to this wonderful country.”

Jackson, who trains in Bend, Oregon, was one of 1,600 runners competing in the race. She completed the event with a time of 4 hours, 12 minutes and 41 seconds. Her finish qualifies her for the upcoming IRONMAN in Chattanooga, Tennessee, in her attempt to secure a spot in this year’s IRONMAN World Championship in Kailua-Kona, Hawaii, in September.

“As [Heather Jackson’s] official nutrition partner, we could not be more proud of her success in this IRONMAN and for giving back to those who need it most right now,” said Herbalife Chairman and CEO Michael O. Johnson.


dŌTERRA Funds Playgrounds at UVU Autism Center

dŌTERRA International has funded the construction of two specialized playgrounds and a sensory garden for children at the UVU Autism Center in Orem, Utah.
The Pleasant Grove, Utah-based direct seller of essential oils recently joined with leaders from Utah Valley University (UVU) and the local community to celebrate the opening of the Melisa Nellesen Autism Center on UVU campus in Orem, Utah, which features therapy and sensory rooms for counseling, diagnostics, social skills groups and family support.

doTERRA provided funding for the outdoor playgrounds and sensory garden, which are part of the 15,000-square-foot Autism Center. “The purpose of the autism center aligns with doTERRA’s mission, which is focused on empowering families and improving individuals’ health and wellness,” said Kirk Jowers, Vice President of doTERRA Corporate Relations and European Markets.

The two newly completed playgrounds focus on enhancing motor skills while encouraging children with autism to interact with their surroundings. The sensory garden features a variety of plants and landscape features that encourage exploration and provide tranquility.

“Utah is one of the top states for children on the autism spectrum,” said Jowers. “Having a fully equipped autism center here at Utah Valley University is a blessing for so many.”


UAE DSA Organizes First Middle East Direct Selling Forum

The Direct Selling Association of the United Arab Emirates (DSA UAE) recently facilitated the first Middle East Direct Selling Forum. Held in Dubai Festival City, the full-day event was organized to promote and protect the direct selling business model in the MENA (Middle East North Africa) region.

The DSA UAE had the full support of the World Federation of Direct Selling Associations (WFDSA), Department of Economic Development in Dubai (DED), the Dubai Chamber of Commerce & Industry, and the Department of Tourism and Commerce Marketing (DTCM) for the event. Approximately 200 guests attended the forum, which stressed the importance of the channel for the UAE, GCC (Gulf Cooperation Council) and MENA region.

Panel speakers included DED Deputy Director General Ali Ibrahim; DTCM CEO Issam Kazim; Vice President of International Relations for the Dubai Chamber of Commerce & Industry Hassan Al Hashemi; COO and Executive Director of the WDFSA Tamuna Gabilaia; DSA UAE Chairman Omar El Masri; and DSA UAE Executive Director Poorya Montaseri.

The Direct Selling Association of UAE was established in 2012 and is based in Dubai. Its nine direct selling members are DXN, Edmark, Forever Living, Juice Plus, Jeunesse, LEO, PMI, Thermomix and Unicity.


AVON 39 Walk to End Breast Cancer Season Begins

New Avon LLC and the Avon Breast Cancer Crusade announced the kickoff of AVON 39 The Walk to End Breast Cancer. Now in its 15th year, the 2017 season began in Houston at the end of April, with Washington, D.C., right behind it in May. They will be followed by Chicago (June 3–4), Boston (June 24–25), San Francisco (July 8–9), Santa Barbara, California (September 9–10) and New York (Oct. 14–15).

United by the theme #FierceIsForever, the two-day, 39.3-mile walks celebrate the strength and philanthropic commitment of participants who raise a minimum of $1,800 to accelerate breast cancer research; improve access to screening, diagnosis and treatment; and educate people about breast cancer.

“As the company for women, we are proud of our strong purpose-driven mission to improve the lives of women—and this includes our long-term commitment to the fight against breast cancer,” says Scott White, CEO of New Avon.

Since the launch of the Avon Breast Cancer Crusade by the Avon Foundation for Women in 2003, more than 235,000 participants have raised nearly $620 million in the fight to end breast cancer. Avon and the Avon Foundation for Women have contributed over $1 billion globally toward eradicating breast cancer and domestic violence.


Nu Skin Reports Q1 2017 Sales

Nu Skin Enterprises announced financial results for the first quarter of 2017.

At Nu Skin, revenue increased 6 percent compared to the first quarter of 2016, with the company reporting $499.1 million. “We are pleased to deliver strong first-quarter results, which demonstrates the progress we made executing on our strategic priorities to increase customer trial and acquisition,” said CEO Ritch Wood.
In Mainland China, revenue increased 26.4 percent, from $119 million in the first quarter of 2016 to $150 million in 2017; and South Asia-Pacific saw an increase of 9.8 percent, from $64 million to $70 million.

South Korea, Japan and Hong Kong all experienced decreases in revenue: South Korea was down 4.2 percent, from $86 million to $82 million; Japan, down 6 percent, from $65 million to $61 million; and Hong Kong/Taiwan, down 10.3 percent, from $40 million to $36 million.

The Americas saw a very slight decrease of 0.01 percent for the first quarter, from $65.75 million to $65.66 million. Revenue in EMEA increased 4.5 percent, from $33 million to $34 million.

June 01, 2017

Publisher's Note

Counting down: 100 Reasons to Celebrate

by Lauren Lawley Head



Click here to order the June 2017 issue in which this article appeared or click here to download it to your mobile device.


IN THIS ISSUE:

2017 DSN Global 100 List
2017 Profiles
Building Strategy for Future Growth
DSN Makes its Global 100 Celebration an Event to Remember
Frequently Asked Questions about the Global 100 Ranking
By The Numbers

DSNBRAVO AWARDS:

Leadership: It Works! CEO Mark Pentecost: On the Road to Legendary
Leadership: Isagenix’s Jim & Kathy Coover: Agents of Change
Growth: Jeunesse: Forging an Uncharted Path to Billion-Dollar Growth


Welcome to our 2017 Global 100 edition!

Each year, the Direct Selling News team works with companies around the world on this special project, and it has become our signature research endeavor. We appreciate all of you who contribute to the effort by providing data or other support, especially our Global 100 sponsors: ACN, Amway, Isagenix, It Works!, Jeunesse, New Avon, Total Life Changes, World Global Network, AdvoCare, Ambit Energy, Mannatech, Mary Kay, MONAT, Oriflame, Plexus, SeneGence, Stream, WorldVentures, Young Living, Zurvita, Avalara, Exigo, Hyperwallet, InfoTrax, Multi Image Group and SUCCESS Partners.

Lauren Lawley Head

The Global 100 list is much more than a ranking of company names and revenue figures. It provides those inside and outside the channel with a better understanding of the scope of direct selling today. You’ll find the list itself on Page 40, followed by more detailed profiles of each company starting on Page 44. Writer Heather Martin takes you inside the list with this month’s cover story, identifying the key trends driving growth last year and shaping the future of direct selling. In all, the Global 100 companies had more than $82 billion in combined net sales in 2016, with 22 companies at the $1 billion mark or higher. Ten grew by $100 million or more from 2015 to 2016. 

At our Global 100 Celebration in April, we also had the opportunity to present some special recognition. Florida-based Jeunesse received this year’s Bravo Growth Award, having increased net sales by $1 billion during the past two years. Isagenix Co-Founders Jim and Kathy Coover and It Works! CEO Mark Pentecost received Bravo Leadership Awards in recognition of their contributions to their companies and to the direct selling community at large. Mark Pentecost also shared his personal journey battling cancer, encouraging everyone in attendance to look at every day as a blessing. “I don’t want every day to be just good. I don’t want every day to be just great. I want every day to be legendary,” he says. “I want to take life to a whole ’notha level, and this industry gives us the opportunity to do that.”

Sit back, dig in and enjoy this year’s Global 100 coverage. Then, mark your calendars for the 2018 program. Research will begin this December, with the 2018 list unveiled at a celebration dinner April 25 at the Renaissance Dallas at Legacy West in Plano, Texas. We can’t wait to see you there.

All the best,
Lauren

June 01, 2017

Cover Story

Building Strategy for Future Growth

by Heather Martin


Click here to order the June 2017 issue in which this article appeared or click here to download it to your mobile device.


IN THIS ISSUE:

2017 DSN Global 100 List
2017 Profiles
DSN Makes its Global 100 Celebration an Event to Remember
Frequently Asked Questions about the Global 100 Ranking
By The Numbers

DSNBRAVO AWARDS:

Leadership: It Works! CEO Mark Pentecost: On the Road to Legendary
Leadership: Isagenix’s Jim & Kathy Coover: Agents of Change
Growth: Jeunesse: Forging an Uncharted Path to Billion-Dollar Growth


Whether you’ve been around the block, like Amway, or you’re relatively new in town, like Total Life Changes (TLC), direct selling was a good business to be in for 2016.

Even with such pressures as a softening in China’s economy—the largest market for some of the channel’s biggest players—and increased regulatory scrutiny, about half of this year’s Global 100 companies reported higher revenue than they reported a year before. They launched products that are winning with consumers, invested heavily in technology and designed incentives that are driving distributor success. These targeted growth strategies, along with an even sharper focus on best practices, are positioning direct sellers to continue to expand footprints, broaden retail sales and create opportunities for entrepreneurs.

Controlled Growth

The Global 100 had aggregate revenue of more than $82 billion in 2016, with 10 list-makers growing by $100 million or more and 22 reporting annual revenue of $1 billion or more each.

Not everyone saw huge leaps in revenue or crossed a major financial milestone. Some companies’ sales were down—although most of those didn’t decrease by much, and analysts say reports of lower revenue among global companies can be misleading because of how the strong dollar affects exchange rates.

Other direct sellers’ numbers held steady, and many that grew did so modestly, according to Euromonitor, which analyzes the global direct selling channel. “Despite aggressive competition from internet retailing, direct selling posted moderate growth in 2016,” Euromonitor says in a recent report. “The main reason behind its resilient performance is that some consumers still prefer to try products before purchasing.”


We are very optimistic about our strategies to recover and very optimistic for the China direct selling space.
- Bob Bass, Lead Strategic Insights Analyst, Amway


Moderation is a good thing, says Bob Bass, Lead Strategic Insights Analyst for Amway, which held tight to its No. 1 spot even though revenue dipped slightly from $9.5 billion to $8.8 billion. Bass says he could largely attribute that decline to the changing Chinese economy—which we’ll discuss later in the story—but he believes the outlook is bright for Amway and other direct sellers, especially those that have a large overseas presence. “We are very optimistic about our strategies to recover and very optimistic for the China direct selling space,” Bass says.

Launch Time

New products were rolling out from every corner of the direct selling market in 2016. And the anecdotal evidence suggests that companies are focusing on niches within their niches, creating highly targeted versions of existing products and pursuing very specific customers.

During its 2016 International Convention, USANA Health Sciences—No. 20 on the Global 100, having hit the $1 billion mark—unveiled its InCelligence technology. Found in several USANA products, such as CellSentials, the company created InCelligence to harness the body’s ability to nourish, protect and renew itself, and it seems to be performing well. Last year, the supplements line that includes the new technology accounted for 20 percent of USANA’s overall product revenue, according to the company’s annual report.

The consumer drive to drop pounds also fueled new supplement technology. As part of the ongoing development of its 4Life Transfer Factor line, 4Life introduced 4LifeTransform Burn at the company’s annual convention in October. 4LifeTransfer Burn is meant to accelerate metabolism and double the body’s ability to burn fat, executives say, adding that they believe it will keep the company on a hot streak. “Burn will, I think, give us the momentum we need to make 2017 another record-breaking year,” Chief Marketing Officer Danny Lee told DSN last year.

Mannatech, which landed at No. 73 on the list with $180 million in revenue, also introduced a fat-loss system last year. While it declined to say what percentage of its revenue came from TruHealth sales, Director of Communications Mike Crouch said last fall that more than 20 percent of new associates had joined Mannatech by purchasing TruHealth.

At a different point on the broad products spectrum, Princess House—which grew by $25 million to $195 million in revenue and ranked No. 72 on the list—has launched cookware for younger families in its largely Hispanic customer base. Traditional Princess House product users often are cooking for large family gatherings, says Vice President of Operations Russ Whittle. “One of our best sellers is a 50-quart stockpot—the kind you usually see only at Chipotle or Qdoba.” The new ware includes smaller skillets and griddles for the family that’s just starting out. The company also has focused on expanding into other categories, such as food storage containers, one of which just won a Good Housekeeping Seal of approval and the Direct Selling Association Ethos Award for product innovation, Whittle said.

The younger consumer is the sweet spot for TLC’s newest product as well, an instant version of the company’s detox tea. Busy millennials appreciate this new stick pack, says Chief Operating Officer John Licari, because they can just pour the tea into a 12- or 20-ounce bottle of water and shake the bottle to blend the drink. No tea bag to steep.


In the United States, challenging people with the opportunity to lose weight through friendly competition has proven really successful for us in getting them to use and share the products.
- Calvin Jolley, Vice President of Communication, 4Life Research


Launching in new geographic markets also gives these direct selling companies potential for a substantial return. Even the smaller companies such as TLC—which is up six spots on the list to No. 94, with $88 million in revenue—are interested in international expansion. They opened offices in Japan, Taiwan and the Philippines in 2016. Additionally, in December, Mannatech announced that it had launched a cross-border e-commerce model in China. Princess House increased its penetration here at home into the Southeast, the Pacific Northwest and Northern California. Whittle says international expansion is a possibility, but “we realize we have a lot more opportunity here in the United States, and that’s where our current focus is.”

High-Tech Low-Tech Balance

The technology that supports the sales of all these new products and growing salesforces got a boost last year, as well. On-demand, easily accessible training is no longer optional for companies who want to gain or keep a competetive advantage; it’s a critical part of any successful consultant-support program. New software at TLC guides incoming distributors through mandatory online training videos to make sure they’re aware of crucial compliance issues, says CEO Jack Fallon. Tech-savvy USANA also sees continuing value in investing in IT, having ramped up its investment in its technology infrastructure over the last year, says CEO Kevin Guest. “Technology is one of our greatest opportunity areas. The world today is in everyone’s pocket on their phones.”

USANA focused in particular on building its WeChat presence in China, the platform through which nearly all of China’s e-commerce and social media traffic flow, according to Bloomberg.com. On average, Chinese internet users spend more than one-third of their online time in WeChat. “It’s literally how many people in China function from a mobile perspective,” Guest says.

While technology continues to aid and transform direct selling—making expansion and growth exponentially easier and faster—company executives are still talking about the importance of maintaining face-to-face connections in an increasingly virtual business. Simply put, technology can never replace the personal nature of the consultant-to-customer relationships and its benefits.

“A lot of direct selling companies who want a high-tech approach also want to keep the high-touch activities so they don’t lose that personal relationship selling model that is traditional,” says Amway’s Bass about the online-to-offline (OTO) trend. “Buyers can be much more loyal to the direct sellers that offer social media and OTO opportunities.”

Incentive Programs

Product innovation and a blend of high-tech and traditional sales methods are fundamental to the modern direct seller’s success. So are strong leaders in the field. Without them, a company cannot be competitive.

And while most successful entrepreneurs are self-driven, they also are highly motivated by incentives. So direct selling companies continue to create programs that increase the engagement and performance of their field teams as well as draw new retail customers.

4Life has created a weight loss contest in which participants use a pack of products for a month and share before-and-after pictures to illustrate their transformations. “In the United States, challenging people with the opportunity to lose weight through friendly competition has proven really successful for us in getting them to use and share the products,” says Calvin Jolley, VP of Communications, indicating that most of the company’s recent growth coincides with the positive effects of the challenge.

USANA has had success with targeted promotions, as well, Guest says. Short-term regional and marketing-specific incentives like travel rewards for the Filipino salesforce, for example, have gained a lot of traction. “Most people in the Philippines don’t have the opportunity to travel,” he says. “If they have the ability, through their productivity and their growth, to see parts of the world they’ve never had the opportunity to see, that’s a great incentive.”

Sometimes it’s about simple math. Customers are often motivated to hold parties for host rewards of products they desire, but for which they don’t want to pay full price. At Princess House, the incentive emphasis has been on giving a major product discount to a party host who hits a certain sales target. “If you can get a $500 retail item for $99 for getting a $750 show, you’re going to work a little harder,” Whittle says.

China Whirl

As analysts have said, the steady but less rapid growth—and for some, the slight decline—among global direct sellers is due primarily to shifts in the Chinese economy and to the strong dollar in general.

Trends to Watch in China


Amway has seen it all in China. The company was there when the direct selling channel got its foot in the door. It was there when the government shut the channel down for a period in the late 1990s because of poor actors creating pyramid schemes. And Amway’s there now, as the channel is coming out of a period of rapid growth. While the pace is slowing and the government appears to be tightening the reins a bit, Amway Strategic Insights Analyst Bob Bass believes there are promising trends that will create new opportunities for direct sellers to succeed.

  • Online to offline. While not unique to China, this trend of balancing virtual business with in-person communication and selling is gaining momentum in the Chinese market. Companies that embrace the blend are likely to be more successful.

  • Traditional Chinese medicine. Nutritional supplement companies are leveraging the country’s unique medicinal remedies as they develop new products. This approach is resonating loudly, not just with Chinese consumers but with customers beyond the country’s borders.

  • Leading with product. Companies that focus on the three R’s—retailing, retention and recruiting—will be in stronger positions as the Chinese economy makes its transition. Says Bass, “Sometimes direct selling competitors get ahead of themselves and their three R’s are only ‘recruit, recruit, recruit.’ ” However, those companies that place high priority on leading with product (retailling) and retention strategies are much better positioned to experience long-term sustainable growth.

Let’s start with the dollar exchange rate, which affects how U.S. companies record revenue and profit generated in other countries. On average in 2016, the dollar was up against most currencies, except the euro and the yen. In China, the exchange rate was 6.91 yuan for every dollar; in India, the average rate was 70 rupees for every dollar; and in Japan, US$1 would exchange for 113 yen. For U.S.-based companies that do a majority of their business overseas, their earnings can look less robust when the dollar is strong compared with the currency in a particular country. The money those companies make in that foreign currency doesn’t translate to as many dollars as it would if its local currency exchange rate were equal to or stronger than the dollar.

For example, Nu Skin’s local currency growth rate for sales in China in 2016 was 14 percent, says Doug Lane, a securities analyst who specializes in direct selling companies. But the skin products company reported dollar growth in sales of only 8 percent because of the depreciation of the yuan against the dollar. Simply put, it’s important to consider the exchange rates when evaluating the strength of a U.S. company that conducts a significant amount of commerce in countries with weaker currencies, Lane says. Failing to do so can create a false negative impression of a company’s overall performance.

The overall Chinese economy has also had an effect on a number of companies who do business there. Bass says that direct sellers are going to have to adjust to a new reality in China. The channel’s growth this year in China could be in the -5 percent to +5 percent range. As of press time, no one really knows yet. The only sure thing is that this critical market for many direct sellers is changing—partly because the Chinese government has slowed the rate at which it grants licenses to direct sellers. Bass doesn’t expect the government to double the number of licenses over the next two years, as it did from 2014 to 2016, when the number went from 40 to 80. The other change is coming from a declining gross domestic product, he says. According to the International Monetary Fund, China’s GDP was about 6.7 percent at the end of 2016, down from the 7.5 percent range in 2013. Bass says some projections have the GDP falling to as low as 5.9 percent by 2020. “That is a drastic decline from an economy that still has a large and rapidly growing middle class.”

These pullbacks along with China’s notoriously tough rules for network marketers aren’t causing panic; they’re just reminding direct sales executives that they must continue to be diligent about their Chinese operations.


It’s however much effort you want to put into it. If you want your business as a passive income, you’ll earn less [than if you are actively working it].
- Russ Whittle, Vice President of Operations, Princess House


Nu Skin notes in its 2016 annual report that it’s still feeling the effects of a crackdown on its practices in China in 2014. “Our business in mainland China still has not fully recovered from these events,” the report states. “The regulatory environment in mainland China is particularly complex and continues to evolve.”

As the Chinese economy loses some steam, the government is turning inward, analysts say, encouraging its citizens to buy indigenous products. Lane says this “Buy China” message likely will affect mass marketers more than it will hurt direct sellers. “A lot of direct sellers tend to offer premium products,” he says. “When you get into the prestige markets, that consumer is looking for a U.S. product or a Japanese product, an upscale brand with the cachet of originating from a sophisticated overseas source. There’s a huge opportunity with an emerging middle class with disposable income going up, a market that’s a natural fit for direct selling culturally.”

Frank Jiang, who leads Amway’s global China sales team, agrees that direct sellers should stay positive about their position in and prospects for China and should commit to “continuing their best practices of corporate citizenship.” Direct sellers also need to keep an eye out for competitors who may not share that commitment, he continues. “There’s always the potential for newly licensed companies to want to accelerate their growth trajectory and that can often lead to bad practices. We’re all in this together, and we need to watch for bad actors.”

USANA’s Guest understands that while the direct selling channel in China has grown dramatically, it’s still “a new frontier” in many ways, and companies need to be diligent. “We want to be a good corporate citizen in China,” he says. “We want to understand what the regulatory environment is and what they’re trying to accomplish, and how we can support the future of direct sales in China.”


There’s a huge opportunity [in China] with an emerging middle class with disposable income going up, a market that’s a natural fit for direct selling culturally.
- Doug Lane, Securities Analyst


Guest says that while USANA certainly “feels pressure from an exchange rate perspective,” the company believes its future in China is clear because of how strongly its health-supporting products are resonating with a population increasingly in tune with the need to combat environmental stressors.

Top Companies Per Region


Asia/Asia Pacific 40
1. Infinitus, Malaysia $3.41B
2. Perfect, China $3.06B
3. Quanjian, China $2.89B
4. JoyMain, China $1.49B
5. New Era, China $1.16B

Europe/Africa 9
1. Avon, UK $5.70B
2. Vorwerk, Germany $4.2B
3. Oriflame, Switzerland $1.40B
4. Telecom Plus, UK $1.12B
5. PM International, Germany $460M

North America 46
1. Amway, USA $8.80B
2. Herbalife, USA $4.50B
3. Mary Kay, USA $3.50B
4. Tupperware, USA $2.210B
5. Nu Skin, USA $2.208B
6. Primerica, USA $1.52B
7. Jeunesse, USA $1.41B
8. Ambit Energy, USA $1.20B
9. USANA, USA $1.01B
10. Young Living, USA $1.00B

South America 5
1. Natura, Brazil $2.26B
2. Belcorp, Peru $1.09B
3. Yanbal, Peru $924.0M
4. Marketing Personal, Colombia $153M
5. FuXion Biotech, Peru $116M

Practices Make Perfect

Compliance issues in direct selling are on the front burner in the United States, too. In 2016, two high-profile Federal Trade Commission settlements—with Vemma and Herbalife—heightened companies’ awareness of the need to self-regulate to make sure potential income claims are honest and transparent, to have a robust retail customer base, and to ensure that the majority of distributors’ volume comes from customers outside the compensation plan.Guest says direct selling tends to attract high-achievers, and sometimes the way they describe their success can inadvertently cause problems. “You see people who are not trying to be deceptive; they’re honestly not trying to say anything other than, ‘This is what I did!’ ” But if a particular distributor’s success is not the norm, a potential salesperson may misunderstand unless the company clarifies what the average person can expect.

He adds, “When someone enrolls in USANA we talk about proper income claims and about how to run their personal business within the constraints of the law.” At Princess House, the company’s “Success Start” program helps new consultants understand how much work it will take to achieve a particular level of success. Clarity on this issue is paramount in today’s regulatory climate. When a company strengthens the new person’s grasp of the work involved, both parties benefit. Whittle says. “If [a consultant] wants her business as a passive income, she’ll earn less” than if she is actively working it.

As we round the mid-year point of 2017, the outlook for this channel is promising, and we anticipate another year of success for direct selling worldwide. Our channel remains the single best entrepreneurial opportunity for anyone, from any walk of life, to improve their circumstances. We look forward to reporting the 2018 Global 100 List!

May 31, 2017

World News

Immunotec Acquired by Immuno Holding

The previously announced deal for Quebec, Canada-based Immunotec Inc., the direct seller of nutrition, skincare and wellness products, to go private in a cash deal that valued the company at US$25 million, was recently completed.

The deal was closed by way of a plan of arrangement under the Canada Business Corporations Act, pursuant to which 1111267 B.C. Ltd., a subsidiary of Immuno Holding, S.A. de C.V, acquired all of the issued and outstanding common shares of the Company for a cash consideration of CAN$0.485 per share.

Immuno Holding is a company led by Mauricio Domenzain in partnership with Nexxus Capital, one of the leading alternative asset managers in Mexico with a track record of almost 20 years of investing in and supporting successful growth companies. Domenzain is a former top executive of a prominent global direct selling company, with relevant expertise in the Mexican and U.S. markets and a passion for the network marketing channel.

“We are very excited about this transaction, as we believe that Immunotec, with its strong management team, its network of over 100,000 independent consultants, and its culture rooted in Quebec-based research and development, is uniquely positioned to continue to generate growth and prosperity for the benefit of its customers, independent consultants and employees in Quebec, the U.S. and Mexico,” said Domenzain. “We have great respect for Immunotec’s leadership team guided by Charlie Orr, CEO, as well as the independent consultants and look forward to working collaboratively to fuel such growth and to support the current momentum Immunotec has been experiencing over these past years.”

Rod Budd, Chairman of the Board of Directors of Immunotec, added: “We believe the time is right to take this next step in the evolution of Immunotec. After undertaking a robust strategic review effort, led by Threadstone Advisors and Winfield Consulting, we are excited by the value to be delivered to Immunotec’s shareholders. The Board was also very impressed by Immuno Holding’s understanding of our relevant markets as well as their excellent plan to maintain, and accelerate, the Company’s growth. This transaction presents the ideal opportunity for all stakeholders.”

Charles Roberts, one of the company’s founders, said, “I believe Immuno Holding will bring great experience, dynamism and support to Immunotec’s employees and network of independent consultants in order to foster the Company’s continued path of growth and success.” Dieter Beer, another founder, added, “I have confidence that with Immuno Holding’s support, the Company will continue the vision that I shared with Dr. Gustavo Bounous to position Immunocal® as a global nutritional choice, and to improve many more lives with this incredible product.”


The agreement between Immunotec and Immuno Holding concludes a strategic review process undertaken by leading direct selling M&A advisor, Threadstone Advisors LP in partnership with Winfield Consulting, LLC. Together, the advisors were employed to monetize the equity interests of Immunotec’s founding shareholders, Charles Roberts and Dieter Beer, who were pursuing a sale in the interest of personal estate planning while ensuring that the new owners possess the resources and experience required to drive the Company’s continued growth in the future.

Threadstone Advisors, LP is a boutique investment bank serving the consumer sectors with expertise in mergers and acquisitions, equity and debt capital raises as well as strategic advisory aervices. In partnership with Winfield Consulting, LLC, which provides strategic and executional support to operating companies and investors in the direct selling business model, Threadstone has become a leader in advising the direct selling channel. This is the third direct selling transaction in two years that Threadstone and Winfield have been involved in as partner–advisors.

May 31, 2017

U.S. News

Industry Veteran Jason Domingo Joins Bod-ē Pro

Bod-ē Pro, the Scottsdale, Arizona-based direct seller of nutritional products, welcomed industry veteran Jason Domingo to the executive team as a Master Influencer. Domingo has 25 years of continuous network marketing experience as a distributor, including terms as Master Distributor for Zrii, LifeVantage and Yevo.

“His talent lies not only in building teams of great leaders, but also as a mentor,” says Bod-ē Pro CEO, BK Boreyko. “I’ve wanted to work with Jason for the last 12 years, but our timing just never aligned. That day has finally arrived. People are always impressed by his track record, but I think they’ll be even more impressed with his level of caring for his team, and in Bod-ē Pro, his team is the entire company.”

In addition to bringing field experience critical to long-term growth, Domingo will also help to guide the enterprise to profitability in all markets, domestic and foreign. He will play a critical role in the company’s internal expansion, and his experience will help to fast-track Bod-ē Pro’s external expansion.

“There is nothing more rewarding than a well-run network marketing company, and the character of its owners is the single most important component to its success,” said Domingo. “That’s why I’ve locked arms with BK Boreyko and Bod-ē Pro. BK embodies the best qualities of our business model. His track record speaks loudly, and his love and dedication for our business model has been tested like no other owner.”

May 30, 2017

U.S. News

USANA Brand Ambassador Jennings Wins Dancing with the Stars

Salt Lake City, Utah-based USANA can now boast about the ballroom dancing skills of one of its Brand Ambassadors. Team USANA Brand Ambassador Rashad Jennings and his pro partner, Emma Slater, won the coveted Mirrorball Trophy on the Season 24 finale of ABC’s hit show, Dancing with the Stars.

Jennings, the NFL running back who has played for the Jacksonville Jaguars, Oakland Raiders and New York Giants, signed up for Dancing with the Stars earlier this year as a fun opportunity to learn another new skill. “At the beginning of this journey, signing up, I didn’t know what I was getting into, and I knew I was going to learn how to dance,” said Jennings. “But if you had told me I would have made it to the finals, I wouldn’t have believed you.”

With tough competition among fellow professional athletes David Ross and Simone Biles, and Fifth Harmony’s Normani Kordei throughout the season, Jennings and Slater were able to deliver memorable dances that allowed them to head into the two-night finale at the top of the leaderboard. Jennings then earned his first perfect scores from the judges for both his Viennese Waltz redemption dance and his freestyle performance, securing his spot at the top.

“Rashad is a tremendous athlete and individual, which can be seen in everything that he does,” said Dan Macuga, USANA Chief Communications and Marketing Officer. “It has been fun to watch him perform on a different type of stage and showcase another one of his talents. We congratulate him on this well-deserved achievement.”

Jennings is the fourth NFL player to win the Mirrorball Trophy. Emmitt Smith, Donald Driver and Hines Ward were previous winners.

According to the USANA website, Jennings overcame a childhood riddled with asthma and poor nutrition. He played football for Liberty University, where he was chosen as the conference Offensive Player of the Year as a junior. He was drafted by the Jacksonville Jaguars in 2009. The self-proclaimed health nut, who sleeps in a hyberbaric chamber, is currently a free agent.

“To maintain a healthy lifestyle, you’ve got to find products that complement you and provide the nutrients you need,” Jennings said. “USANA has a great product line. It’s clean. I do not have to worry about failing any drug tests.”

May 26, 2017

U.S. News

Bod-ē Pro Plans New Products, Asia-Pacific Launches

Bod-ē Pro, the Scottsdale, Arizona-based direct seller launched on March 7 by industry veteran BK Boreyko, will release two new products and expand into three Asia-Pacific markets over the three to six months.

Bod-ē Pro’s first product was its nootropic beverage, Bod-ē Happy, a specially formulated drink that promotes productivity and alertness and supports cognitive function. The company’s second product, Bod-ē Strong, was released April 15. It contains ultra-premium ingredients, including a full spectrum of antioxidants, powerful phytonutrients from mangosteen, curcumin, maca, green tea and aloe, along with plant-sourced ionic minerals to provide a foundation for wellness.

Over the next three months, Bod-ē Pro will release a clinically studied, anti-aging formula called Bod-ē Pro TEN, as well as Bee Happy, a natural, honey sweetened, lemon-lime version of its flagship strawberry-lemonade flavored product, Happy. On-the-go powder sachets of Bee Happy should be available in two months, and a ready-to-drink canned version in three months. A portion of Bee Happy sales will be donated to organizations committed to saving the honeybee population.

As for expansion plans, Bod-ē Pro just launched in Canada under an NFR (not for resale) program and will officially open the market this fall. In addition, the company plans to expand into Hong Kong within three months, and into Taiwan and Japan in the next six months.

Bod-ē Pro capitalizes on traditional networking, internet marketing and social media viral influence’ by using existing platforms to deliver unique and highly consumable products direct to consumers. The company deploys technology and a fulfillment infrastructure, along with an app containing a suite of features, empowering the micro influencer with the ability to turn their social media platforms into a social marketplace.

May 26, 2017

U.S. News

Isagenix International Celebrates 2nd Annual Global Give Back Day

Isagenix International, a global leader in health and wellness products and solutions, recently celebrated its 2nd annual Global Give Back Day.

The corporate-created event took place across the world, in the company’s 13 markets, with employees and customers giving back to their local communities and environment. Isagenix organized activities such as public park, beach and schoolyard clean-ups; tree plantings; blood drives; charity walks; meal preparations for the less fortunate; volunteering at orphanages and homeless shelters; and more.

“Our Isagenix family of employees and customers is constantly looking for ways to give back and make an impact,” said Erik Coover, Isagenix Owner and Senior Vice President of Global Field Development. “While we strive to make a positive impact on the world every single day, we created Global Give Back Day as a focused effort to give back to our local communities and to our Earth all over the world in the most powerful way.”

Many customers who participated in the event are also members of a popular Isagenix affinity group called START. The START Your Life movement invites young people ages 18–35 to be part of a community built on a foundation of integrity, contribution and growth. With nearly 70,000 participants, the group is made up of passionate Isagenix Members striving to lead extraordinary lives while helping others do the same.

“Isagenix is the largest company headquartered in Gilbert, Arizona, and a key economic driver in the United States and across the globe,” said Cheryl Lewis, Isagenix Vice President of Corporate Affairs. “In 2016, our business generated total output of $2.5 billion while impacting the U.S. GDP by over $1.5 billion and creating an employment impact of nearly 13,500 jobs in the U.S. alone. As a good corporate citizen, we have a responsibility to continue impacting not only our economy, but our global environment and communities as well.”

May 25, 2017

U.S. News

Herbalife-Sponsored Triathlete Heather Jackson Wins Again

Herbalife, the Los-Angeles-based global nutrition company, congratulated its sponsored triathlete Heather Jackson on her second IRONMAN win in thirty days. Jackson won the IRONMAN 70.3 in Chattanooga, Tennessee, on May 21, earning the title for the second year in a row.

Jackson was one of 2,944 athletes competing in the race. The Bend, Oregon-based triathlete completed the race with a time of 4 hours, 15 minutes and 20 seconds.

“I am thrilled with the race results and so grateful for the support from the Herbalife Nutrition community for making sure I was properly fueled and hydrated before this and every race,” said Jackson.

“Heather Jackson’s outstanding accomplishments are an inspiration to us all, showing us what can be achieved through passion, hard work and commitment,” said Herbalife Chairman and CEO Michael O. Johnson. “As her official nutrition partner, Herbalife Nutrition is proud to continue fueling her on her journey.”

On April 24, Jackson won the women’s race at the IRONMAN 70.3 Peru. She then donated all proceeds to the Peruvian people, who were devastated by floods that displaced an estimated 900,000 families.

Jackson’s next race is the IRONMAN in Boulder, Colorado, where she’ll vie for one of 40 slots in order to qualify in this year’s IRONMAN World Championship in Kailua-Kona, Hawaii, in September.

Herbalife supports more than 190 world-class athletes, teams and events around the globe, including Cristiano Ronaldo, the LA Galaxy and champions in many other sports.

May 25, 2017

U.S. News

Le-Vel Reaches $1 Billion in Lifetime Sales

Le-Vel, the direct selling industry’s first completely virtual, cloud-based company, recently achieved $1 billion in lifetime sales.

Founded in late 2012 by Jason Camper and Paul Gravette, the Frisco, Texas-based health and wellness company has experienced substantial since generating $10 million in revenue in its first full year, 2013. The company achieved $100 million in its second year, $350 million in its third year, and $450 million in 2016. Last month was also the largest revenue-generating month in Le-Vel’s history.

For the founders, who are also Co-CEOs, the true measure of Le-Vel’s success is how many lives are impacted through Le-Vel’s products. “From the beginning, our focus has been on helping people live healthier, happier lives,” said Camper and Gravette. “A cloud-based infrastructure was something our industry hadn’t seen before, so it was a risk. But we knew it would give us the ability to invest in products that could change people’s lives. And it has. It’s been incredibly rewarding to witness the growth of our sales force and their customers and to hear their powerful stories. That’s what keeps us going, and we’ve only just gotten started. This company has so much potential to impact the lives of others around the world in a positive way.”

Le-Vel began with a trio of products designed to promote weight management, fitness, lean muscle support, mental clarity and appetite control. The THRIVE EXPERIENCE, as it is collectively known, incorporates a daily morning regimen of Premium Lifestyle Capsules, a Premium Lifestyle Shake Mix and Derma Fusion TechnologyTM (or DFT) adhesive, worn for time-released results.

Over the last four years, Le-Vel has expanded its product line to include supplementary products that complement or enhance the core benefits of the Thrive Experience. Additional products include Thrive Kids, Activate, Boost, Balance, Black Label, FORM, Move, Rest, Expand, and Pure. The company has more than 6 million Customer and Brand Promoter accounts, and currently ships within the United States, Canada, Australia, New Zealand, the United Kingdom, and Mexico.

Le-Vel was the recipient of the 2016 Direct Selling News Bravo Growth Award, recognizing the largest year-over-year growth in the world in direct sales, for its 254 percent growth from 2014 to 2015. Last month, the company placed No. 44 on the Direct Selling News Global 100, reporting $449 million for 2016.

May 24, 2017

World News

Nature’s Sunshine Receives Direct Selling License in China

Natural health and wellness company Nature’s Sunshine Products recently received its direct selling license from MOFCOM, China’s Ministry of Commerce. The license allows the Lehi, Utah-based company to begin direct selling activities within China, the second largest direct selling market in the world.

In 2014, the company began the application process for a direct selling license for Nature’s Sunshine China following the formation of a joint venture with Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (Fosun Pharma), a local healthcare company. The joint venture was the first of its kind between a U.S. company and a Chinese company for direct selling products in China.

“We are greatly honored to receive our license from the People’s Republic of China,” said Nature’s Sunshine Chairman and CEO Gregory L. Probert. “This marks an important step toward realizing the vision and potential we saw when we joined forces with Fosun Pharma almost three years ago. By bringing Nature’s Sunshine to the people of China, we are opening a tremendous new chapter and growth opportunity in our company’s 45-year history, and fulfilling our mission to transform lives around the world through our innovative, industry-leading products.”

Paul E. Noack, President of China and New Markets, said that receiving the license was the culmination of more than two years of hard work and dedication in laying the foundation of Nature’s Sunshine China. “This license makes it official that Nature’s Sunshine’s direct selling business has arrived in China,” he said. “Having made significant investments over the last couple of years, building the infrastructure to support the commencement of operations, we are in a position to begin direct selling activities in the near-term. We are immensely proud of the accomplishments of the China management team, and we are optimistic about the opportunity the China market provides.”

Nature’s Sunshine China is headquartered in Shanghai, a leading economic center with an urban population of more than 24 million residents.

May 24, 2017

U.S. News

Young Living Acquires Nutrition Company Life Matters

Photo: Young Living’s global headquarters in Lehi, Utah.


Young Living Essential Oils, the Lehi, Utah-based direct seller of essential oils, recently made a non-cash acquisition of Life Matters, a nutrition company located in Coeur d’Alene, Idaho, owned by Richard Bliss Brooke and Kimmy Brooke.

“Richard and Kimmy are legendary direct selling veterans,” said Jared Turner, Young Living Chief Operating Officer. “We share common cultures, goals and missions. We are pleased to welcome them to the Young Living team.”

Life Matters’ product lines include Life Shotz(R), a nutritional drink; VIBE, a whole-food meal replacement shake; MIND, a supplement for improving mental function; and MOTION, a supplement for joint and tissue nutrition.

“Kimmy and I considered many options in the direct selling industry before choosing Young Living, and we’ve never been more excited about the next step in our vision to enhance the lives of others,” said Richard Bliss Brooke, CVO and Co-owner of Life Matters. “We are honored to join such a respected company as Young Living, and we believe in its mission to share wellness, purpose and abundance with people all over the world.”

In addition to its therapeutic-grade essential oils, Young Living also offers home care, personal care and wellness products. Its Healthy & Fit selection features multivitamins, antioxidant support, weight management and energy and stamina solutions.

Young Living was founded in 1993. The company was No. 22 on last’s month’s DSN Global 100 ranking of the top direct selling companies in the world, with earnings of $1.0 billion for 2016.

May 23, 2017

U.S. News

Vorwerk Overall Revenue Up 4.1%, JAFRA Down 7% for 2016

Vorwerk & Co. KG recently announced the figures for the fiscal year 2016. At a press conference in Düsseldorf, Vorwerk Group Managing Partners Reiner Strecker, Rainer Genes and Frank van Oers revealed that total revenues for the past year were up 4.1 percent to 3.1 billion euros (not including VAT).

In addition, Vorwerk Group generated an increase in business volume, which also includes the new business of the akf group, which totaled 1.2 billion euros. With a volume of 3.8 billion, Vorwerk achieved a year-on-year increase of 4.7 percent. Taken together, all of its German activities generated 7.1 growth in sales to 1.1 billion euros.
 
JAFRA Cosmetics, the direct selling division of Vorwerk, was down 7 percent on its level for the previous year and generated sales of 369 million euros. The decline is due chiefly to currency differences, since the Mexican subsidiary, in particular, JAFRA’s largest, actually generated a slight increase in sales in the local currency.
 
Two of Vorwerk’s other divisions saw increases for the year: The Thermomix Division succeeded in boosting sales by 11 percent to almost 1.3 billion euros to remain the top-performing division within the Vorwerk Group. The akf group reported sales are up 11.9 percent to 431 million euros and new business now stands at 1.2 billion euros.
 
Two other divisions saw decreases for the year. The Kobold Division suffered a slight fall in sales of 3.9 percent with sales totaling 836 million euros. During its reorganization, Vorwerk Flooring invested in its production facilities and product portfolio. Sales were down while the reorganization was in progress, so that at the end of the reporting year the division reported a decrease in sales of 8.7 percent to a total of some 70 million euros.
 
The managing partners noted that the spotlight for the coming year was very much on digitization, which Vorwerk is approaching at many different levels. “Some of our present products already feature a digital interface, and in the future, all of our products will,” the Managing Partners stated. “The main question here is: What does a product need to have to be a market success and to convince customers to buy? Or to put it another way: What makes our life better? Each new product idea will be developed with these questions in mind.”
 
The Vorwerk & Co. KG family enterprise was founded in 1883. Vorwerk’s core business encompasses both the production and sale of high-quality household products (Thermomix kitchen appliance, Kobold vacuum cleaner, Twercs tools, Lux Asia Pacific products) and cosmetics (JAFRA Cosmetics).
 
Vorwerk was No. 4 on last’s month’s DSN Global 100 ranking of the top direct selling companies in the world. The company reported earnings of $4.20 billion for 2016.

May 23, 2017

World News

U.K. Launch Most Successful Market Entry for Isagenix

Gilbert, Arizona-based Isagenix is now open for business in England, Scotland, Wales and Northern Ireland. The health and wellness company recently kicked off sales in the United Kingdom, making it the 13th market where Isagenix products and solutions are offered.

“Our entire Isagenix team has been involved in ensuring that our opening in the U.K. is a smashing success,” said Travis Ogden, Isagenix President and CEO. “We were expecting a great response but have been humbled by the overwhelming outpouring of interest and support of over 17,000 people who have pre-enrolled to begin their Isagenix health and wellness transformation. The U.K. launch is our most successful market entry to date and a sign of what the future of Isagenix looks like around the world.”

The U.K. staff is led by Peter Kropp, regional general manager of Europe, and includes a team of over 35 staff members. Isagenix, which has its U.K. main office is in central London, will be hosting its official grand opening event June 24–25 in London at the ExCel Exhibition Centre.

“Since the market’s announcement at New Year Kick Off 2017 in January, people have been eager to begin experiencing and sharing our no-compromise products,” said Sharron Walsh, Isagenix Senior Vice President of International. “This foothold in Europe offers many exciting opportunities for growth.”

Product offerings in the U.K. will focus on weight management, and energy and performance. Featured products include the company’s popular 30-Day System, as well as e+™ (known as e-Shot in the U.K. market) and IsaDelight® for Cleanse Day support. As the market grows, more products and solutions will be added.

May 22, 2017

U.S. News

Young Living Breaks Ground on New Headquarters

Lehi, Utah-based Young Living Essential Oils, a leader in essential oils, recently announced groundbreaking on its 263,000-square-foot global headquarters. The five-story building will sit on 27 acres, with 3.6 acres of demonstration gardens, and offer work space for nearly 1,000 employees.

The new building, designed by Kevin Scholz, is meant to complement Young Living’s philosophy of living harmoniously with nature. The flowing, organic design enhances a sense of community, connectivity and communication, with a focus on green initiatives throughout the indoor and outdoor designs. Construction will be completed by Okland Construction.

“The care and detail that went into designing our headquarters was a collaborative effort to capture our Founder and Chairman of the Board D. Gary Young’s vision for an architectural representation of the spirit of wellness and abundance that Young Living embodies,” said Jared Turner, Young Living Chief Operating Officer. “I am certain this campus will be one-of-a-kind, inside and out, and we look forward to sharing it with our local community and all who wish to visit.”

Young Living is the pioneer of pure, modern-day essential oils and distillation and continues to be a key influencer and leader in the global wellness movement. Over the past few years, Young Living has grown to be one of Utah’s largest companies, with a strong presence in international markets, along with numerous farms and distilleries around the world. This growth has allowed the company to continually offer new employment opportunities locally and globally.

“We are honored to have Young Living permanently establish its headquarters in Lehi,” said Lehi City Mayor Bert Wilson. “Young Living has been a valuable community partner, and we look forward to the future opportunities it will bring to our city and state.”

May 22, 2017

U.S. News

4 Direct Sellers Make Forbes’ List of Best Midsize Employers

Four direct selling companies—doTERRA, New Avon, Herbalife and Nu Skin Enterprises—made Forbes’ 2017 list of the Best Midsize Employers in America. The annual list, conducted with the help of statistics database and consumer research firm Statista, recognizes companies operating in the U.S. with between 1,000 and 5,000 workers that are the best at making their employees feel happy, inspired and well-compensated.

Pleasant Grove, Utah-based doTERRA, which has 1,650 employees, placed highest in the list among direct sellers at No. 71. New Avon, with 2,100 employees, was No. 246; Herbalife, with 2,300 employees, was No. 263; and Nu Skin, with 4,800 employees, was No. 273.

Statista surveyed 30,000 employees anonymously through several online panels. Klaas Seestädt, the Statista analyst overseeing the project, said the most weighted question asked of survey respondents was whether they would recommend their own company to others, on a scale of zero to 10. While employees were also asked to rate their employers on pay, diversity, paths to advancement and other work factors, those results did not affect the overall score and were instead used to gauge what a given company was doing right or wrong in gaining employee approval.

According to the survey results, atmosphere at work and pride in service or products the company provided were the most profound factors that drove employer recommendations (25%), followed by salary (16%).

The company placing No. 1 on the 2017 Best Midsize Employers List is Lush, a retail cosmetics and personal care products company headquartered in Poole, U.K. Founded in 1995 and once the biggest supplier to the Body Shop, Lush opened its first American store in 2003 and now has 210 in North America.

May 22, 2017

U.S. News

Youngevity: Overall Revenue Up, Direct Selling Revenue Down in Q1

Chula Vista, CA-based Youngevity International, Inc., a leading omni-direct lifestyle company, recently announced financial results for the first quarter ended March 31, 2017. Revenue increased 1.4 percent to $38.7 million as compared to $38.2 million in the same period last year. During the three months ended March 31, 2017, the company derived approximately 86 percent of its revenue from direct sales and approximately 14 percent of its revenue from its commercial coffee sales.

“We have invested significantly in marketing efforts, compliance efforts, global infrastructure and a comprehensive rebranding strategy that began in the fourth quarter of last year and carried over into the first quarter of this year,” said Steve Wallach, CEO of Youngevity International. “The compliance effort and enforcement measures created revenue drag on our direct selling segment into the first quarter. We believe these were necessary measures and as a result, the company is better positioned for continued growth. The month of March showed a significant increase in revenues, which we believe is sustainable as we move through 2017.”

Direct selling segment revenues decreased by $1.6 million or 4.5 percent to $33.2 million as compared to the three months ended March 31, 2016. This decrease was primarily attributed to a decrease in existing business as a result of general weakness in this segment during the first two months of the quarter.

“The first quarter of 2017 illustrates our commitment to continue to implement our growth strategies and to simultaneously focus on managing that process,” said Dave Briskie, President and CFO. “This affected our direct selling segment, which experienced significant and necessary additional expenses for the first quarter. Although this had a negative impact on our bottom line we are confident our omni-direct platform is gaining acceptance throughout the enterprise. We were pleased with the performance of the coffee segment and we are bullish that growth will continue for this segment.”

The company’s commercial coffee segment revenues increased by $2.1 million or 61.3 percent to $5.5 million compared to the same period last year. Revenues increased in both the coffee roasting business and green coffee business.

To see the full report, click here.

Youngevity was No. 76 on last’s month’s DSN Global 100 ranking of the top direct selling companies in the world. The company reported earnings of $163 million for 2016.