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D. Gary Young: A Lasting Legacy For Future Generations

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In this issue:

D. Gary Young was the amalgam of a life spent overcoming tremendous adversity—poverty, disabling injury, ridicule and a harsh upbringing fostered in him an unstoppable desire to help others in need.

Through Young Living Essential Oils, the company that he and wife, Mary, founded in 1994, Gary Young built a direct selling legacy, earning him the prestigious inaugural Bravo Legacy Award at the Direct Selling News Global 100.

However, during the writing of this feature to honor Gary, we received the sad news that he had passed away May 12, 2018, after a series of health problems. We pay tribute to him by honoring his memory through his own words and those closest to him. In addition to how he personally touched so many lives, his extraordinary professional contributions to the direct selling community will be felt for generations to come.

Mary Young accepts the Bravo Legacy Award on behalf of her husband and Young Living Founder D. Gary Young.

 

Early Life and Abject Poverty

As a boy, Gary called a 20-foot-by- 30-foot mountain cabin in Challis, Idaho, home. With no running water or electricity, the family—Gary, his parents and five siblings—eked out an existence determined by what they could grow and hunt. Life was harsh.

“As I looked at the poverty in which I lived, I knew in my heart that I never wanted to live like my parents and was determined to have something better,” Gary said. He dreamed about creating and forging a future out of the wilderness and the mountains that he loved.

“My father taught me the value of hard work and how to be creative in solving problems and achieving what had to be done. This gave me the physical and mental strength that equaled whatever challenge came my way,” Gary said.

And his challenges were great. In his early 20s, a logging accident left Gary near death with 19 broken bones, three skull fractures and multiple herniations of the spinal cord. He languished in a coma for three months. Upon waking, doctors said he would not walk again.

Distraught, Gary attempted suicide twice. “He didn’t want to live without his horses. He didn’t want to live without his mountains,” Mary Young said. An attempt to starve himself ironically prevented scar tissue from forming and nerves rerouted. Sensation returned to Gary’s toes and he defied the medical prognosis. Gary rose to walk again.

“Whatever path I walked, God was my partner and foundation for the decisions I made. After my terrible accident at age 24, I promised God that if he gave me back my legs, I would spend the rest of my life serving his children,” Gary said.

Unfortunately, challenges followed Gary throughout his life, in the form of injury and illness. On Jan. 25, he faced yet another when he suffered a stroke that rendered his left side useless.

“Gary was a man who loved God and believed the mountains were God’s living room, where Gary went to communicate and find peace,” Mary said. “He loved his home and his family, and his greatest joy was in being of service to his fellow man, helping people reach their highest potential, have a greater understanding and compassion for one another, and achieve mutual respect and honor, even with our many cultural and ethnic differences.”

D. Gary Young during his participation in the Iditarod Trail Sled Dog Race in Alaska.

Laying the Young Living Foundation

A self-described “gunfighter” who lived by instinct, fast decisions and emotion, Gary Young never hesitated in life or business. The three 33s guided him: 33 percent intuition, 33 percent calculation and experience, and 33 percent gut feeling.

Mary and D. Gary Young

In the 1980s, Gary was immersed in alternative medicine, and then became fascinated with essential oils. He studied essential oil distillation methods in the early 1990s and became enamored with the potential power of natural ingredients. When a distillation teacher in France advised him to grow the necessary plants himself, Gary jumped at the idea of getting his hands dirty and planted his new 60 acres in Idaho with lavender, peppermint and tansy.

By 1994, newly married Gary and Mary Young, who sang with the Utah Opera, wanted to share essential oils with the wider world and for the first time used network marketing to do it. They renovated a run-down Riverton, Utah, building as their headquarters and called the fledgling company, Young Living.

Driving Energy

Gary’s all-encompassing, driving energy infused Young Living. He plowed fields with his tractor, designed and built farm and distillery equipment, formulated in the laboratory, and taught seminars. His dedication, energy, enthusiasm and capacity for hard work, Young Living President and COO Jared Turner said, “put people half his age to shame.”

“The only way Gary knew how to lead was from the front and the rest of us did our best to keep up! When you have a vision as singular as his was, paired with the determination and drive to accomplish it, you see unbelievable things happen. You see Young Living happen,” Turner said.

For 25 years, Mary watched this man take on every day as if it were his last. “He was passionate, quick-witted, emotional and brought excitement and creativity with his empathetic, loving and kind nature that was very contagious,” she said.

Gary put his unique zest for life on full display for Young Living’s Members by riding a zip line into an annual convention, mushing a dog sled team across the Alaskan wilderness, and taking up medieval jousting for sport. “If you’re not living on the edge, you’re taking up too much space,” Gary said. “Think of your goal, feel the passion come up inside you and forget about all the stuff on the side trying to convince you that you can’t do it. Yes, you can do it.”

Growing the World Over

“You’re only as good as that which you can give to someone else,” Gary said. Young Living and the network marketing channel allowed Gary to fulfill his own dreams in grand, visionary ways and make good on his promise to God to help others.

Keeping that promise started at the source of essential oils themselves. Gary traveled the world to learn all he could about growing and distillation, journeys that became far-reaching opportunities for good.

When Young Living established farms in places like Chongon, Ecuador, where Gary lived for a time tending lavender, he cultivated crops and formed strong, equally beneficial bonds with local farmers and villagers. He looked deep into the holistic needs of the community and set about meeting them.

“I was able to provide jobs for people who had never had a job, provide education for children who would never have an opportunity, and see poverty turn into real success with longevity for countless people,” Gary said. “It was very exciting for me to see ways that I could teach people how to help themselves through honest, productive work that produced oils for my company. It was a win-win for everyone.”

Turner said, “I think one of the biggest differentiators is that he led with his heart. That’s not to say that Gary wasn’t brilliant, insightful, and incredibly well informed. I can testify that he was! What I mean is that he prioritized the human benefits of his products and the company above any financial considerations.”

“I believe that when God blesses you financially, it is your responsibility to help God’s children who are less fortunate, not only with money but with giving of your time to help in other physical ways when possible,” Gary said. He formalized this belief with The Young Living Foundation in 2008.

Chongon’s children were first on Gary’s list. He acquired land for a new school, The Young Living Academy, and built it in 2009. Partially funded through $75 a month student sponsorships, the academy serves the educational needs of 300, K-12 students and has changed the trajectory of these students’ futures.

The Young family celebrates breaking ground for Young Living’s new headquarters.

The Foundation supports the communities where Young Living sources essential oils. Projects have taken them to Uganda with Sole Hope to scrub and remove small parasites causing dangerous and even deadly foot infections. They’ve also made shoes for villagers as a proactive measure. They partnered with Healing Faith Uganda to purchase mosquito nets, organize service trips and help test for malaria. Elsewhere in Africa, they doubled the efforts of African Hearts, a transitional home for abandoned children offering shelter, food, social services and quality education, purchased land and built an additional school for 200 children, ages 3-5.

Perhaps most memorable was Gary’s 2016 trip to Nepal, nine months after devastating earthquakes and aftershocks left 1.2 million homeless. Standing among ruins in Yarsa distributing blankets, Gary looked upon the flimsy tents, lean-tos and tin sheds and knew they were no match for the coming winter. People—little children—were dying of exposure. Why had help not arrived?

Working with permission of Nepal’s vice president, Gary sliced bureaucratic red tape and set about saving lives. His problem-solving mind saw a simple, South African brick-making machine used on Young Living’s Ecuadorian farm as a solution. Dirt mixed with small amounts of cement made bricks. Bricks could save lives in Nepal.

The Young Living Foundation ordered a complete, automated block factory, hired an engineer, architect and project manager and sent them for training. They taught the Nepalese to rebuild devastated villages, and then to manufacture and sell construction blocks, which created long-term economic value.

Gary mobilized Young Living’s Members for muscle and funding and counted rebuilding Yarsa’s homes and school a favorite memory. “Hundreds of our Members gave freely of their time and money to travel such long distances, to sleep in tents, and to work along with these people who lost everything and desperately needed help,” he said.

“We consider ourselves the Young Living family and when members from around the world work together on a specific service project, at winter harvest, or spring planting, there is a bond created that uplifts and warms the heart and brings a joy that fills the soul,” Gary said.

Instinctive Success

Sales under $800 a day didn’t meet the bills, but vision and an “inner knowing” drove Gary in Young Living’s early days. He made grand predictions and Mary would chuckle. “But as the years went on, I came to understand that no matter what he said he was going to accomplish, he always accomplished it,” she said.

D. Gary Young worked closely with the people of Nepal to help communities in need in 2016 after the country’s devastating earthquake months before.

Before the paint was even dry on their first headquarters, Gary drew up plans for their next. He was confident Young Living would someday live up to his dreams, confident it would outpace a laundry list of direct selling giants. Mary laughed again and asked how he could be so sure. “I just know,” Gary responded.

Perhaps only Gary could see the company’s future success because only he knew for certain how to harness his maverick style, his ability to outwork everyone from dawn until long after the sun went down, and his drive to help others. Gary saw it clearly. Gary made it happen.

In 2014, Young Living’s explosive growth outpaced its infrastructure. They invested heavily across the board and slowed opening new markets. By 2015, Young Living achieved $1 billion in annual sales and repeated it the next three years, placing it among the world’s largest direct selling companies. Revenue growth of 800 percent the past five years culminated in 2017 sales of $1.5 billion.
Today, the company reports 3,000 global employees working in 13 offices, representing 22 markets. It ship products to 133 countries. Young Living operates one of the most technologically advanced essential oil distilleries in North America, as well as 16 corporate and partner farms in the U.S., Ecuador, Canada, France, Oman and others. Since inception, they’ve welcomed some 4 million Members.

“Gary’s entire MO was to help people improve lives in every possible way. Every decision he made was for the benefit of his employees and Members around the world. Gary’s philosophy was infused into the daily operations of our company at every level, which I believe is a key part of the ‘YL Magic’ that sets us apart in this industry,” Turner said. “Each of us, from the executive level on down, has taken Gary’s beliefs to heart, which ensures that his legacy is secure and Young Living will never deviate from its core principles.”

Purchase the June 2018 issue in which this article appeared.

Purchase the June 2018 issue in which this article appeared.

DSN Welcomes Executives and Guests to its Global 100 Evening of Celebration

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In this issue:

The DSN Global 100 Celebration recognizes the direct selling channel’s proud history of providing individuals from all walks of life unparalleled opportunities for entrepreneurship and personal development.

This annual event also showcases the impact and growth potential of the $182.6 billion global direct sales channel. Worldwide, more than 107 million people are involved with direct selling, according to the World Federation of Direct Selling Associations.

During this year’s ninth annual celebration, held May 2 at the Renaissance Dallas at Plano Legacy West Hotel, Direct Selling News unveiled its exclusive ranking of the top revenue-generating companies in direct selling based on prior year revenue. Hosts Lauren Lawley Head, Senior Vice President and General Manager for SUCCESS; and John Fleming, former publisher of DSN, hosted more than 200 executives from throughout the United States as well as Canada, India, China, Malaysia, Germany and New Zealand, among others.

“The identification of companies to include on the list is the culmination of months of research and the cooperation of many individuals across the world,” said Lawley Head. “The Global 100 ranking has become a benchmark for the channel and a valuable resource for the academic community.”

John Fleming

Former DSN publisher John Fleming addresses the crowd.

“We’re building businesses at a great moment in time,” said Fleming. “Never has the support and technology and the focus on real customer acquisition been greater. Never have the masses in mature economies throughout the world been more interested in some form of entrepreneurship—a method of business that allows for flexibility and freedom to work when one would like to without time constraints. Research has long stated that we are headed toward an economic landscape where the independent contractor will make up more than 50 percent of the labor force that supplies products and services. SUCCESS Partners has long identified this new economy as the YouEconomy. Others refer to it as the sharing economy or the gig economy; however, the point is that this research and its forecast favors direct selling companies.”

Dallas violinist Dean Raskin

Dallas violinist Dean Raskin.

For the sixth consecutive year, Ada, Michigan-based Amway claimed the top spot as the No. 1 direct seller in the world, with $8.60 billon in revenue in 2017. This global giant maintains a large portfolio of top-selling brands including Nutrilite vitamin, mineral and dietary supplements, as well as Artistry skin care and color cosmetics and XL Energy Drink. Amway does business in over 100 markets through more than 3 million independent Amway business owners.

“We’re so proud to be part of an industry that supports and empowers an invigorating lifestyle for people who want to work to live, not live to work. This industry is so special, and we look forward to continue supporting and inspiring the next generation of entrepreneurs,” said Kim Drabik, manager of industry and shareholder relations, who accepted the award on behalf of Amway.

London, U.K.-based Avon Products once again took the No. 2 spot on this year’s DSN Global 100 list, with $5.70 billion in revenue in 2017. “Direct selling can’t be more important than it is today,” said Jan Zijderveld, Avon’s new CEO, who was traveling and shared his thoughts in a video message. “We now have about 6 million microentrepreneurs around the world. When you empower women, the whole society becomes better, more prosperous and more balanced. That’s something the direct selling industry and especially Avon does really well. It’s really something to be proud of.”

Special Guests

DSN welcomed very special guests to the dinner, including our own John Fleming and attendees from all over the United States along with representatives from Immunotec in Canada, PM-International from Germany, DXN Holdings from Malaysia, Vestige Marketing from India and New Image Group from New Zealand. Also in attendance were members of China-based Global Direct Selling Research Institute, Brian Cai and Dale Sun. This organization has provided tremendous assistance to DSN’s Global 100 research efforts in recent years.

DSN Global 100

The Global 100 have plenty to celebrate this year:

  • Amway’s Kim Drabik accepts the company’s award for its No. 1 ranking on the Global 100.

    Collectively, the Global 100 achieved more than $85.2 billion in net sales in 2017, up from $82 billion in 2016. And among those companies are 14 that grew by $100 million or more in the past year.

  • In 2017, a record 24 Global 100 companies achieved more than $1 billion in net sales. Those 24 companies generated $59.6 billion for the year—approximately one-third of all global sales from the channel.
  • The Top 10 companies achieved $40.6 billion in revenue last year.
  • Mid-market companies—those between $300 million and $1 billion—are represented by 28 companies in this year’s ranking. Three companies are within striking distance to $1 billion; nine are in the $600-million-to-$700-million range; and another six already are at the half-billion-dollar mark.
  • By region, there were 43 companies from North America in the Global 100; five from South America; six from Europe/Africa; and 46 from Asia/Asia-Pacific. A total of 18 countries were represented on the list—Brazil, Canada, China, Colombia, Germany, India, Japan, Luxembourg, Malaysia, New Zealand, Peru, Russia, Singapore, South Korea, Switzerland, Thailand, the United Kingdom and the United States.
  • Companies appearing in the ranking for the first time included Coway from South Korea (No. 11); Hualin from China (No. 37); Golden Days from China (No. 42); MONAT Global from the United States (No. 52); Best World International Limited from Singapore (No. 61); Alpha from China (No. 62); Prüvit from the United States (No. 67); Norland from China (No. 68); Green Leaf from China (No. 70); Kangli from China (No. 80); Vida Divina from the United States (No. 85); Usborne Books & More from the United States (No. 96); and Xyngular from the United States (No. 99).
  • Companies returning to the ranking are Rodan + Fields (No. 16) and Juice Plus (No. 32) from the United States; Amore Pacific (No. 35) and LG Household & Healthcare (No. 54) from South Korea; Apollo from China (No. 53); and Cosway from Malaysia (No. 79).

The Bravo Awards

The Bravo Awards recognize excellence in business.

The Bravo Awards recognize excellence in business.

Each year, the DSN Global 100 celebration recognizes a direct selling executive whose exceptional leadership qualities have propelled his or her company to extraordinary new heights with the Bravo Leadership Award. This year’s recipient was also DSN’s Global 100 keynote speaker for 2018, SeneGence Founder and CEO Joni Rogers-Kante, whose incredible story has inspired entrepreneurs throughout the world.

Rogers-Kante began her career in direct sales with Mary Kay, where she developed a love for the channel and its ability to provide tools for women to support themselves while raising their self-esteem. A newly single mother, with little income and an uncertain future, she spent the next four years working on her dream of owning her own business. With hard work, persistence and faith, she eventually opened SeneGence. Her company has become an international leader in the cosmetics industry, best known for its long-lasting lip color products. The continued growth of SeneGence is fueled in large part by Rogers-Kante’s vision to help empower women worldwide.

She spoke of the “Amazon effect” that has forced a lot of brick and mortar retail outlets to reduce staff and/or close up shop altogether in recent years. But “the online buying experience is not the ultimate answer,” she added. “People still want to see and feel before they purchase. It’s our industry, our products, our opportunities, and our ability to provide people with an infrastructure they need to write their own destinies without fear or risk—that’s what sets us apart. Amazing, energetic, creative people who so badly want to provide a prosperous future for their families will come to our companies not only for our products, but because other options are limited to them. Now their future is in their control—not the control of companies who can lay them off at any minute.

 

“Independent distributors can now bring back the concept of small town family-owned businesses to any town, any city or any country they choose to through the direct selling channel,” she said. “We have at this time in history an extraordinary opportunity to create a major shift in the way products and services are purchased through a voluntary salesforce that is coming available. My story started with one, but it’s about everyone who provides support and services to this industry as our efforts reverberate throughout the world and touch others’ lives. Our industry is the industry of the future.”

This year, Direct Selling News introduced a new Bravo award: the Bravo Legacy Award, honoring an individual who has made extraordinary professional contributions to the direct selling community that will be felt for generations to come. It’s extremely fitting that D. Gary Young, founder of Young Living, was the first recipient of the Bravo Legacy Award. His dedication to quality and commitment to excellence built Young Living exponentially and helped the company surpass $1.5 billion in sales last year and $1 billion the previous two years, with revenue growing 800 percent over the past five years. Young Living is now one of the largest direct sales companies operating in the United States.

Gary Young, who passed away on May 12 soon after the Global 100 Celebration, wasn’t able to attend the event, but his wife and business partner, Mary, traveled to Dallas to accept the award on Gary’s behalf.

 

“It’s a bittersweet moment,” Mary said. “In my life, I know of no one who deserves more of this kind of recognition for what he has given to the world—he literally gave his life for what millions of people now have in Young Living. His goal was to help people in whatever capacity they needed and to see people become better than what they thought they could be—and to see happiness and joy come into their lives.”

Todd Eliason, DSN’s new publisher and editor in chief, reveals insights from the Global 100 ranking.

Miami-based company MONAT received the third award, Bravo Growth Award, for increasing its annual sales an astounding 667 percent from 2016 to 2017. MONAT took a decidedly different approach in 2014 when it launched as the first company focused on developing anti-aging products specifically for hair care. The company now has more than 150,000 Market Partners in the United States, Canada, and most recently, the United Kingdom. President Stuart MacMillan and Co-Founder and CEO Rayner Urdaneta were in the United Kingdom to celebrate the company’s official launch and were unable to attend the DSN Global 100 Ceremony. However, Chief Marketing Officer Linda Padilla, Director Market Partner Experience Jason Russell, and three of MONAT’s original employees were in attendance to accept the prestigious award on behalf of the MONAT leadership team, the entire Urdaneta family and its Market Partners.

Sponsorships

SUCCESS Partners was again the lead sponsor of the DSN Global 100 Celebration. The following companies also sponsored the event:

Platinum Supplier Sponsors: Avalara, Exigo, Hyperwallet, IMPACT This Day, InfoTrax and Landmark Global.
Platinum Table Sponsors: Prüvit, SeneGence, Total Life Changes and Young Living.
Gold Table Sponsors: AdvoCare, Ambit Energy, b:hip Global, Isagenix, Jeunesse, Mannatech, MONAT, Plexus, PM-International, Stream, USANA and Zurvita. DSN

Purchase the June 2018 issue in which this article appeared.

Purchase the June 2018 issue in which this article appeared.

Frequently Asked Questions about the Global 100 Ranking – 2018

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In this issue:

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.

Click here to view this year’s list

Purchase the June 2018 issue in which this article appeared.

Purchase the June 2018 issue in which this article appeared.

Partners in Self-Regulation for all of Direct Selling

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In this issue:

Since 1971, the Council for Better Business Bureaus Inc. (CBBB) has administered the self-regulatory programs that operate under the umbrella of the Advertising Self-Regulatory Council (ASRC), including the National Advertising Division (NAD), Children’s Advertising Review Unit (CARU), the Council for Responsible Nutrition’s dietary supplement review program, the Interest-Based Advertising Accountability Program and the Electronic Retailing Self-Regulation Program (ERSP).

The U.S. Direct Selling Association (DSA) has a long and proud history of encouraging self-regulation of industry practices. Its comprehensive Code of Ethics was adopted in 1970, and the DSA Code Administrator administers it.

In December 2017 the FTC’s Acting Chairwoman Maureen Ohlhausen appeared before the DSA and challenged it to adopt a bolder self-regulatory posture. It was shortly after that when DSA began working with the CBBB to launch a new initiative to strengthen the direct selling industry’s self-regulatory programs.

The Acting FTC Chairwoman said that this new and more aggressive approach to self-regulation would benefit both DSA’s consumers and member companies by providing a more accountable and fair marketplace with lower compliance and regulatory costs than would be true under government regulation. There are also benefits to the government by allowing it to focus its limited resources on the most egregious practices and industry members.

We know these benefits because they have been the result of the programs we have developed for so many other industry groups. Each of these programs was adopted by leading industry groups faced with increased scrutiny by media, advocates, and the government. The advertising industry, the infomercial industry, the dietary supplement industry and the online behavioral advertising industry decided to step forward and take control of their own practices by adopting self-regulatory programs built around a robust set of proven standards:

Purchase the June 2018 issue in which this article appeared.

Purchase the June 2018 issue in which this article appeared.

  • First, it is imperative that self-regulatory programs provide a fair and meaningful standard of review. The work at NAD, CARU, and ERSP centers on delivering industry members guidance on whether their practices meet legal and industry standards.
  • The second critical component is independence. Program decisions are reached by expert attorney staff who evaluates advertising claims independent of any outside influence or consideration other than the party or parties’ evidence.
  • Transparency is a critical element of these successful self-regulatory endeavors. All case decisions are announced and made available for the guidance of the industry. This transparency allows the public, advocates and the government to see the work, read the analyses and judge the program for themselves.
  • CBBB self-regulatory programs are based on accountability. At the close of a NAD, CARU or ERSP inquiry, for example, advertisers are asked to provide a statement that they will comply with the recommendations, if any, included in the decision. If the advertiser declines to commit to the recommendations or is later found to be non-compliant, the matter will be referred publicly to the appropriate governmental agency.
  • Finally, the decisions published by these programs apply to all industry members, not just members of supporting trade associations or businesses that agree to follow them. The reputation of an industry for truth and fairness is established by the industry as a whole, not just individual members.

Effective self-regulation demonstrates an industry’s commitment to marketplace behavior that benefits consumers and businesses. As Chairwoman Ohlhausen emphasized in her remarks, effective self-regulation helps everybody. The CBBB is delighted to be working with DSA to develop the framework for this exciting program.

C. Lee Peeler, Esq., a 33-year veteran of the Federal Trade Commission, is the President and CEO of the Advertising Self-Regulatory Council and EVP of the Council of Better Business Bureaus.

 

5 Best Practices for Making It Work in the Global Market

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  1. Find the local direct selling association. “The national DSA will have detailed knowledge of how the market works and can inform companies which legal regulations apply,” says Katarina Molin, executive director at Seldia, the European Direct Selling Association.
  2. Hire native speakers. Someone who knows the language from the inside will help you avoid faux pas, says 4Life Co-Founder Bianca Lisonbee, recalling that a pronunciation of an abbreviation the company once put on an international label was unintentionally off color. Molin agrees: “It’s a worthwhile investment to have a local manager who speaks the local language and who understands the key do’s and don’ts about the specific business culture,” she says. And even if you’re expanding to a market where consumers and potential distributors speak your language, “the tone and style of messaging can be very different in different countries,” Molin adds. So don’t just copy and paste website content.
  3. Do your homework. Study other companies’ successes and failures and learn from experts on the ground in the country you’re targeting—before you start doing any business there. “The temptation is to go ahead without checking boxes of the regulatory agencies,” for example, says 4Life Co-Founder David Lisonbee. “Many companies have jumped the gun… and then that creates negativity about the industry.”
  4. Expect complications—sometimes serious ones—and roll with them. “It doesn’t seem to matter what market we’re adding,” says Youngevity CEO Steve Wallach. “There’s always something going on—whether it’s a natural disaster or geopolitical turmoil. That goes with the territory of international expansion.”Your company may even be able to become part of the solution. When Hurricane Maria devastated Puerto Rico in 2017, for example, 4Life leased a fleet of private planes and helicopters to transport relief supplies and more than 70,000 pounds of food to the country, where it had been in business since the early 2000s and already had distribution warehouses.
  5. Don’t mess it up. eBay is probably an exception to this rule, as it managed to find its footing in China after initially failing. Usually, you get one shot, direct selling executives say. “If you don’t do it right the first time, you probably won’t have another opportunity,” says Arbonne CEO Kay Zanotti, adding that it’s critical that top management is part of any global expansion. “I’ve learned the value of being personally involved and committed to our new market launches,” she says, “A firm commitment at the highest level not only sets an example, it’s essential to international success.”Also, be measured in your ambitions, adds Ambit Energy Co-Founder and CEO Jere Thompson. “So often, the inclination is to land grab,” he says. “But you go into too many markets at once and you don’t have the oversight that’s necessary, you suddenly no longer have dry powder to address challenges or your people get burnt out from doing too many things at once.” ‘recruit, recruit, recruit.’ ” However, those companies that place high priority on leading with product (retailing) and retention strategies are much better positioned to experience long-term sustainable growth.
Purchase the June 2018 Issue in which this article appeared.

Purchase the June 2018 issue in which this article appeared.

U.S. Direct Selling Experiences Slight Decline in Sales, Representatives in 2017

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According to the recently released “Growth and Outlook Report: U.S. Direct Selling in 2017” by the Direct Selling Association (DSA), 2017 saw slight decreases in sales and involvement in direct selling in the United States, the largest direct selling market in the world.

The DSA, the national trade association for companies that offer entrepreneurial opportunities to independent sellers to market and sell products and services, reported that retail sales in the U.S. in 2017 were $34.9 billion, down 1.8 percent from 2016, and that 18.6 million people were involved in direct selling, which represents a 9 percent decrease year over year. Participation in the channel varied from those who joined direct selling companies as discount customers to those who are pursuing a business on a part-time or full-time basis.

Retail Sales

Estimated retail sales for 2017 were $34.9 billion, down slightly from 2016’s $35.54 billion. This marks the second year in a row that sales have declined. Sales had climbed each year from 2011 to 2015, which had an all-time high of $36.12 billion in sales.

The top states with direct selling activity continued to be Texas, California, New York, Florida and Illinois, which, collectively, accounted for nearly 45 percent of all U.S. sales in 2016 with $16.1 billion.

Wellness products remained the most popular product category in the U.S. in 2017, accounting for 33.8 percent of sales, followed by Services (22.1%), Home & Family Care/Durables (16.8%), Beauty & Personal Care (16.5%), Clothing & Accessories (8.2%) and Leisure/Educational (2.6%).

Direct Selling Population

After a record 20.5 million Americans involved in direct selling in 2016, the DSA reported 18.6 million for 2017. Of those, 9.6 million were discount customers, 7.6 million part-time business builders and 1.4 million full-time business builders. These statistics do show growth in the number of Americans starting home-based businesses: In 2017, 1.4 million Americans had full-time businesses compared to 0.8 million in 2016, and 7.6 million Americans were involved in part-time businesses in 2017 compared to 4.5 million in 2016.

The direct selling channel, known for its flexible entrepreneurial opportunities for all ages, reflected that in the statistics that showed 36.9 percent of direct sellers in 2017 were Millennials; 34 percent, Gen Xers; and 26.4 percent, Baby Boomers.

By gender, 73.5 percent of direct sellers in the United States in 2017 were women and 26.5 percent men. After a 3 percent drop from 2014 to 2015, the percentage of men joining the channel has increased each of the last two years, with a 15 percent increase from 2015 to 2016 and another .5 percent increase from 2016 to 2017.

Ethnic and racial demographics for 2017 show that Americans involved in direct selling were 80 percent non-Hispanic and 20 percent Hispanic. Of the non-Hispanic direct sellers, 85 percent were White/Caucasian, 8 percent African American, 1 percent American Indian or Native Alaskan and 1 percent Native Hawaiian or Pacific Islander. These numbers closely reflect the fabric of America: the U.S. population is 82 percent non-Hispanic and 18 percent Hispanic. Of the non-Hispanic population, 77 percent is White/Caucasian, 13 percent African American, 6 percent Asian, 1 percent American Indian or Native Alaskan and 1 percent Native Hawaiian or Pacific Islander.

For more insights and statistic on the U.S. direct selling channel, visit www.dsa.org.

Direct Selling Association Announces 2018 DSA Award Winners, Top 20

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Photo: DSA President and CEO, Joseph N. Mariano with 2018 Hall of Fame honoree Jeffrey Reigle, President and Chief Executive Officer, Regal Ware Inc.

The U.S. Direct Selling Association (DSA), the national trade association for companies that offer entrepreneurial opportunities to independent sellers to market and sell products and services, announced the winners of the prestigious 2018 DSA Awards program during a gala event at the DSA Annual Meeting in San Diego.

DSA Hall of Fame

The DSA Hall of Fame celebrates the contribution of visionaries whose work has helped chart the course for direct selling’s future success. Jeffrey Reigle, president and chief executive officer of Regal Ware, Inc., is the 2018 DSA Hall of Fame honoree.

“The integrity, dedication and performance Jeff has demonstrated in running his company are the same attributes he has brought to his many years of leadership in the Direct Selling Association,” explained Joseph N. Mariano, president of DSA. “We are proud to welcome him into the ranks of direct selling’s most extraordinary leaders.”

DSA Awards

DSA Awards recognize the outstanding programs DSA member companies have implemented. The 2018 DSA Awards category winners are:

DSA Top 20

DSA also announced the 2018 Top 20 member companies, recognizing those with the top net sales in the United States for 2017:

“We applaud these companies both for the products and opportunities they offer millions of Americans and for the significant contributions they make to the economy,” said Mariano. 

DSEF Circle of Honor and Educator of the Year

The Direct Selling Education Foundation (DSEF) also announced the recipients of its two highest honors during the DSA gala. The DSEF Circle of Honor recognizes industry leaders, academics and consumer advocates who made extraordinary contributions to the Direct Selling Education Foundation through personal efforts.  Dave Wentz, outgoing DSEF chairman, is the 2018 inductee into the DSEF Circle of Honor.

“We are excited to add Dave to DSEF’s Circle of Honor to celebrate his long history of supporting and contributing to the work and success of the Foundation,” said Gary Huggins, DSEF executive director. “Dave has also been a driving force in developing and implementing a bold new vision for the Foundation to mainstream direct selling by partnering with academics to produce industry validating research and reach tens of thousands of students every year with educational content on the channel.”

The DSEF Educator of the Year award celebrates the significant contributions and achievements of its valued academic partners. The recipient of the 2018 DSEF Academic of the Year honor is Dr. Elizabeth Davis, dean of the School of Management, University of San Francisco, and DSEF Academic Fellow.

“Dean Davis has made tremendous contributions to DSEF’s work to partner with university professors throughout the country to achieve our goal of reaching more than 60,000 students per year through DSEF events, curriculum and content,” Huggins said. “She has been a highly valued strategic advisor to the Foundation through her service on the board as well as a founding member of the Foundation’s Academic Advisory Council.”

2017 Statistics

During the Annual Meeting, DSA announced that in 2017, 18.6 million Americans were involved in some capacity in direct selling in every state, congressional district and community across the United States. The channel generated more than $34.9 billion in retail sales.

Direct Selling Industry Leaders Gather in San Diego for DSA Annual Meeting

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The Direct Selling Association (DSA) Annual Meeting’s general sessions kicked off today with a focus on sharing best practices for the direct selling industry and exploring new ways to continue developing “America’s Original Entrepreneurs.” The event will run through tomorrow at the Marriott Marquis San Diego Marina in San Diego.

“Direct selling is poised to be the next retail channel of choice for many consumers, and the DSA annual meeting provides direct selling leaders the opportunity to share information about industry best practices, important advocacy initiatives and the coming implementation of the Association’s business ethics program,” said Joseph N. Mariano, president and chief executive officer of the Direct Selling Association.

The meeting will also focus on consumer perceptions and awareness of direct selling as well as the future launch of the enhanced self-regulation for the direct selling industry.  In addition, DSA will unveil its annual market-sizing (Growth & Outlook) survey results, and DSA will present current trends on how Americans like to shop and earn and the implications for direct selling.

DSA Chairman of the Board and Amway Chief Sales Officer John Parker said, “The DSA has a long history of setting, maintaining, evolving and enforcing high standards for ethics and self-regulation. The marketplace has changed, and the time is now for the industry to innovate and develop a new model for ensuring we continue to raise the bar on the protection of consumers.”

New York Times best-selling author of Better and Faster and CEO of TrendHunter.com, Jeremy Gutsche, will provide insight on growth and innovation as the featured speaker on “Disruption and Creating an Adaptable Culture.” Direct selling industry leadership providing keynotes and/or leading panels, such as:

U.S. Congressional keynote speakers are Congressman Tony Cardenas (D-CA) and Congressman John Moolenaar (R-MI).

Special events at the Annual Meeting include the DSA Industry Awards Gala with the announcement of the DSA Hall of Fame, as well as he celebration of the Direct Selling Education Foundation (DSEF) Academic of the Year and Circle of Honor inductees.

The full meeting and conference schedule can be viewed here.

A Top Consumer Trend for 2018: Adaptive Entrepreneurs

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Euromonitor International’s 2017 Global Consumer Trends Survey shows that nearly 50 percent of respondents across all generations aspire to be self-employed, showing a growing trend towards this adaptive entrepreneurial lifestyle.

Consumers are increasingly seeking flexibility in their lifestyles and are prepared to take risks. Millennials especially have an entrepreneurial nature, shifting away from the traditional 9-to-5 career towards one that affords more freedom.

Rejection of traditional working patterns

Adaptive Entrepreneurs point to several factors in their rejection of traditional jobs and companies. For instance, wages are stagnant, increasing by 1 percent or less in many Western European economies such as the US, Germany, the UK and Japan between 2011 and 2016.

The shift in priorities of Adaptive Entrepreneurs is directly linked to a change in values. In 2018, these consumers will be attracted towards alternatives that allow more flexible, adaptable and personalized experiences, and not just potential financial gain. They want a lifestyle they can build themselves and align with their personal interests and passions. The Euromonitor survey saw a marked delay in larger life goals such as owning a home or having children.

The role of the internet for Adaptive Entrepreneurs

Macroeconomic factors and lifestyle shifts are pushing Adaptive Entrepreneurs to rethink and look for alternative ways to work and earn a living. The biggest driver has been the proliferation of the internet as a flexible platform to sell, communicate, review and network without borders or boundaries.

While start-ups hold substantial risk, the upsides are attractive to Adaptive Entrepreneurs, who are disillusioned with the traditional economic model. Their online lifestyles mean they are knowledgeable and savvy, well-connected and technically confident. The tech industry, grown to be dominated globally by Apple, Google and Amazon, is the guiding star of the Adaptive Entrepreneur.

Adaptable consumers, adaptable brands

Risk-seeking entrepreneurs will not be attracted to the same brands or marketing techniques that dominated in the past. They will favor products enhancing their adaptable work and personal lives.

One example of a service catering to entrepreneurial consumers is Remote Year, a company providing access to work and travel—an enabler for breaking out of traditional 9-to-5 office jobs and travelling the world. Participants must already have a flexible job arrangement, such as their own business. The growth in the popularity of Remote Year and others, such as Hacker’s Paradise and We Roam, throughout 2017, is creating “digital nomads”—independent entrepreneurs looking for flexibility.

Traditional businesses leveraging historical prestige will find their marketing push towards this disruptive generation fall flat in 2018. Adaptive Entrepreneurs are not brand-defined—they want to take risks and remain distinctly independent.

WFDSA Report: New Global Records for 2017 Retail Sales, Representatives

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The World Federation of Direct Selling Associations (WFDSA), the leading international non-governmental organization representing direct selling industry worldwide as a federation of national Direct Selling Associations, yesterday released business results for 2017.

According to WFDSA:

  • Global estimated retail sales for 2017 were $189.6 billion, a 1.6% increase over 2016.
  • Compound annual growth rate for the period from 2014 through 2017 was 3.7%, showing sustained growth over time.
  • The global force of independent direct selling representatives reached nearly 117 million, up 2.6% over 2016.

Both the sales and representative figures set new global records, further evidence of the popularity of direct selling as a convenient way for customers to shop, and for direct selling representatives to earn additional income.

Herbalife Nutrition Partners with American Red Cross on #MissingType Campaign

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In its ongoing support of the American Red Cross, and to help bring awareness for the need of blood donors, Los Angeles-based Herbalife Nutrition recently announced its support for the American Red Cross #MissingType campaign.

Through July 3, Herbalife Nutrition will join the Red Cross and other organizations, celebrities and influencers to remove the letters representing the main blood groups–– A, B and O––from its logo and public-facing messaging to illustrate the critical role blood donations play in patient care. The company will also help raise awareness through its social media channels, and among its employees, independent distributors and customers.

“For more than 20-years, Herbalife Nutrition continues to proudly and actively support the American Red Cross with local, national and global disaster relief, emergency preparedness efforts, local events and blood drives, fostering a partnership built on the shared principles and values of helping others,” said Dr. John Agwunobi, co-president and chief health and nutrition officer at Herbalife Nutrition.

In addition to Dr. Kristy Applehans, MS, NMD and senior director of global post-market medical surveillance at Herbalife Nutrition serving as a member of the American Red Cross Los Angeles Regional Board of Directors, the company provides an annual $500,000 in-kind donation of Protein Deluxe Bars to 120 Red Cross blood donation service centers across the U.S. The company’s independent distributors and employees generously also donate to support U.S. and international relief efforts, most recently in support of Hurricane Harvey victims.

“We are so grateful that Herbalife Nutrition has joined the Missing Types campaign to raise visibility for this critical need and to help ensure hospital patients receive lifesaving blood,” said Neal Litvack, chief marketing officer, Red Cross. “We could not fulfill our mission without the tremendous support from volunteer blood donors and partners like Herbalife Nutrition. Together, we can reverse the trend before it’s too late for the many patients who are counting on us.”

Nu Skin’s 15th Annual Force for Good Day Celebrates Global Humanitarian Efforts

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Provo, Utah-based Nu Skin Enterprises, Inc. recently celebrated its 15th annual Force for Good Day by participating in humanitarian projects in more than 20 countries, including local community projects focused on improving the lives of tens of thousands of children.

At Nu Skin’s global headquarters, more than 1,500 Nu Skin corporate employees teamed up with United Way of Utah County, Provo, Nebo and Alpine School Districts, and Provo Parks and Recreation to paint, clean and beautify eight local elementary schools and six parks throughout Utah County. In keeping with the Nu Skin Force for Good Foundation’s mission to help children in need, employees and their family members performed meaningful service for thousands of children.

One of the eight elementary schools that Nu Skin helped to beautify was the Amelia Earhart Elementary School. Nu Skin employees dug out the large playground area and filled it in with fresh wood chips. They also helped to beautify city parks and trailheads to give back to Provo City, neighboring businesses and the Provo community. Employees planted shrubbery, weeded and added wood chips in the neighborhood parks including Memorial Parks, and cleared and built up trails including Rock Canyon Trailhead.

“Since the company’s founding, our mission has been to be a force for good throughout the world,” said Ritch Wood, chief executive officer. “On Force for Good Day we bring employees and sales leaders together to focus on improving the lives of children in the communities where we live and work.”

Global Force for Good Day projects throughout the month of June will include:

  • EMEA – Employees throughout EMEA will compete against each other to raise money through different sports activities to support their favorite causes. In addition, employees will donate clothing, toys and food to an orphanage.
  • Japan – Employees in Japan will create more than 2,000 stationery sets as part of the Kits for Kids Project and deliver them to the children at elementary schools affected by natural disasters.
  • Korea – Korean employees will assemble 2,000 feminine hygiene kits for underprivileged teenage girls.
  • Philippines – Employees in the Philippines will assemble and donate 200 school bags filled with school supplies to children in need.
  • Greater China – Sales leaders and staff throughout Greater China will collect “Gifts of Love” for children including books, toys and stationery. The gifts will be given to various charity partners who support children in need.

The Nu Skin Force for Good Foundation provides grants that improve the lives of children by offering hope for a life free from disease, illiteracy and poverty. It began as a campaign in 1996 and was formally organized as a nonprofit foundation two years later. The Foundation is funded by Nu Skin distributor and employee donations and from 25 cents of the sale of each Nu Skin Epoch product. Nu Skin covers all administrative and overhead costs, allowing for 100 percent of donations to be used for humanitarian and charitable causes. The Nu Skin Force for Good Foundation is a registered 501(c)(3) nonprofit organization in the United States.