New Perspectives

Inside the DSA
Neil H. Offen, President & CEO Direct Selling Association

I thought this month DSA should share with you some insights into what's on the association's plate of activities that has yet to (and may never) appear in our monthly newsletter, News from Neil, which goes to our member company executives. Each month we send News from Neil in electronic format to more than 3,000 executives. Written in a Kiplinger style, it's a much anticipated e-mail from DSA.

The following are items I hope will be of interest:

Code of Ethics Enforcement: DSA talks the talk, but is it really walking the walk as to our Code of Ethics enforcement and self-regulation? I'm sure we could be doing more. For example, the Code requires all member firms to educate their salespeople about its provisions. How many are meeting this obligation? Certainly not all. I want to see greater compliance efforts, especially in reaching the field regarding the protections offered to consumers under the Code, as well as the rights of distributors to be protected from abuse by the company or their uplines. I will be using my bully pulpit more and more in this ethics area in the days and months ahead. We must be sure we are delivering on the promises the Code makes.

Creation of DSA Chapters: We are exploring the possibility of creating chapters of the association in selected areas to bring company executives together to network, get to know each other and learn from each other through informal receptions and dinners. Sites to be considered include Chicago, Dallas-Ft. Worth, Salt Lake City and Southern California. The success of the Dinner with DSA events we have held around the nation sparked this idea.

Creation of a Field Association: Led by Doris Christopher of The Pampered Chef, a diverse group of industry executives is exploring the pros and cons of DSA offering services to our distributors, or possibly creating an association for the field. Going back many years, this idea first appeared as part of DSA's Plan 2010, adopted by the Board of Directors in 1999. Most recently, the group met in Chicago to complete a SWOT analysis of several options and proposals. The issue will be discussed further during the March Board meeting. For details about the discussion, contact Melissa Brunton at mbrunton@dsa.org.

Communications: Fifty companies are participating in DSA's upcoming advertorial insert, which will appear in the May edition of O, The Oprah Magazine. The insert will feature relevant information for consumers and potential direct sellers. As part of our ongoing communications and public relations efforts, the insert will be a great positioning piece for the industry, and will showcase the many interesting and important facets of this dynamic industry. Look for it on a newsstand near you beginning April 17.

Services: DSA recently announced the addition of liability insurance for members of the field salesforce. This is being offered through PRO Insurance, the same firm DSA partners with to offer health insurance to field sellers. For salesforce members to qualify for coverage, they must be with a company that has partnered with PRO and DSA-there is no cost to the company to participate, and more information about both programs can be found on DSA's Web site. DSA is now offering News from Neil via podcast and conducting DSALive!, a quarterly call with DSA staff and special guests who present and discuss timely news and information relevant to the association and the industry. Companies that are not currently members who are interested in these or other services should contact DSA's membership director, Nancy Burke, at nburke@dsa.org.

State of the Industry Update: Direct selling sales were up 2.5% in 2005 over 2004 to slightly over $30 billion at estimated retail. I expect 2006 data to reflect a slight uptick, and 2007 to be a better year yet. Party plan firms were particularly hard hit in the 2003-04 period. But I am pleased to report, albeit from anecdotal and nonscientific data, a recovery is seemingly under way. I have also noticed this trend in a number of the major nonparty plan firms. Salesforce numbers have continued to grow throughout the period, now topping 14.1 million. It is interesting to note, though, that a number of these individuals, while technically distributors, are really wholesale or discount buyers who do not retail or recruit-an important distinction when looking at compensation and other related statistics.

Association Growth: DSA has now exceeded 500 companies in our membership (including active, pending, subscriber, global and supplier member companies.) Some 800 executives serve on DSA's various committees, councils and task forces.

Annual Meeting: We expect more than 1,000 in attendance at this year's Annual Meeting, June 3-5, 2007, in San Diego, Calif. Exhibit space has been sold out for quite some time, and our general sessions, workshops and other events are shaping up nicely. Keynote speaker Chris Gardner is sure to be a big draw, and we are looking forward to seeing everyone in sunny California.

Of course, this overview of association events scratches only the surface of the work being done by DSA staff and many member volunteers. We welcome and encourage the participation of everyone involved in direct selling and ask you to contact us with any questions or comments at info@dsa.org or 202-452-8866.

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