In this centennial year for our industry, and on the eve of Avon’s 125th anniversary in 2011, I’ve been doing a lot of thinking on the subject of legacies. At our last annual meeting, I was very proud to accept, on Avon’s behalf, both the Century Club and Founder’s awards acknowledging Avon’s pioneering role in direct selling. For me, personally, these awards were also a reminder of the extraordinary and linked journey of our company and the industry we serve.
Exactly two years ago, the top stories were the election and the economy. As we now reflect on the close of another year, the stories that are still at the forefront in our minds are whether the leadership of this country is moving us toward recovery from the recession or whether we are still very deep into a recessionary economy.
Take a moment to imagine a world free of hunger, pain and sickness. A world where children don’t have to suffer because they aren’t receiving healthy meals or the medical treatment needed just to fight off a common cold. Just imagine the impact of seeing children smiling and playing, instead of crying and oftentimes dying from hunger. Can you see a world that free?
Shipping costs continue to be a major cost component in a company’s overall supply chain costs. Furthermore, shipping rules and regulations continue to increase in complexity, and costs continue to increase every year. Oftentimes, companies either absorb these costs or pass them on to distributors who are struggling to manage expenses while building a business. In addition, shipping policies and costs may directly impact a company’s sales and its ability to recruit and retain distributors.
The Value of DSA Membership for Direct Selling Companies
2010 marks the centennial anniversary of the Direct Selling Association (DSA). As such, member companies are the beneficiaries of a rich legacy in the United States and around the world. It’s a history of competitor collaboration, information exchange, united lobbying efforts to protect our model of distribution, and public awareness campaigns designed to dispel myths that sometimes impede our growth. Although the DSA enjoys more than 200 member companies, this represents a mere fraction of businesses eligible for membership. For current members and those considering membership, the DSA offers an unlimited opportunity for involvement.
Gigi Hill Handbags are delighting bag-lovers across the country—from their roots in sunny California all the way to the sultry cities of Florida, and just about every state in between. These fashion-meets-function bags, which have been on the direct selling market for a mere two years, have quickly developed a cult-like following along with a growing realm of enthusiastic stylists (or sales representatives). And it all started with two busy moms who had a dream… and dared to make it come true.
A mutually beneficial relationship with the American Heart Association has cosmetics company JAFRA changing the face of caring.
With less than two months left in another year, many are already offering their assessments as to which companies were truly able to adapt to and benefit from recession in the United States. We know the direct selling business model is well suited—if not an ideal solution—to challenging times, when job eliminations have become the norm along with a high anxiety index… if there is such a thing. We also know the direct selling business model cannot sell itself; therefore, the messaging companies use to gain the attention of their sales organizations will always be critical to the performance of those companies. It is always what a company does with the model that makes the difference between survival and the ability to maintain or grow during the challenging period.
Last month in this space, Neil Offen, DSA’s President, gave his analysis of the direct selling industry. He promised that I, as his successor in that office, would share my thoughts this month. I’ve worked with Neil for 25 years and generally have found his insights and observations to be spot on. But this time (in an obvious effort to be at least a little bit controversial and interesting for our readers), I am going to disagree with Neil.
There’s nothing like the fresh enthusiasm and energy new distributors bring to the business. Besides the fact that their sales and recruiting efforts create growth, their mere presence inspires and re-energizes those around them to do more as well. Needless to say, new people are truly the lifeblood of the business.
The creators of direct selling companies and their CEOs and executive teams who lead them hold the key to the resurgence of capitalism in America and beyond. Those who have invested in the enterprise of direct selling must always be reminded what an important contribution they make as they teach the free-enterprise system and individual personal development.
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