Direct Selling Companies’ Impressive Performance Continues in July
Transformation Capital recently reported that direct selling companies in its survey set* of 50 continued their impressive performance during July.
Their July performance continued what is now a five-month trend for the industry.
“While the volume and rate of sequential growth have predictably slowed, due to the higher hurdle rate that has been established month after month, more than half of the companies surveyed once again grew in July compared to June,” said Stuart Johnson, CEO of Transformation Capital. “In addition, the vast majority of respondents reported being up for the month as compared to July one year ago, as well as up year-to-date as compared to the same period in 2019.”
Transformation Capital began tracking this data in March of this year to provide industry executives with timely and salient data related to the direct selling industry’s performance in the COVID-19 environment.
In March, as the pandemic was beginning to take hold of individuals’ daily lives, 80 percent of respondent companies reported sequential revenue growth over February, which was followed by 80 percent of respondents reporting sequential growth again in April during the peak of COVID-19 related lockdowns. May and June’s surveys each resulted in reported growth by more than 70 percent of respondents.
“As we are all aware, summer is typically a slow season for most companies within our industry, which, we believe, makes June and July’s results all the more impressive,” said Johnson. “Despite some seasonality and the likely effect of altitude fatigue, the industry remains strong and all indications point toward a strong fall and close to 2020.”
*The total data set consists of more than 50 companies, with criteria including headquarters based in the U.S., a minimum of $5 million per month in revenue, and a substantial percentage of revenue from U.S. business. Public companies did not participate. Half of the companies are not members of the Direct Selling Association