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December 2012

December 1, 2012 by DSN Staff Leave a Comment

Arbonne International

Michael D’ArminioMichael D’Arminio

Arbonne International LLC announced the appointment of Michael D’Arminio as Chief Creative Officer. D’Arminio, who was most recently Chief Creative Officer at philosophy, will lead the creative, marketing and product development teams.

With more than 18 years of experience as a skincare marketing executive, D’Arminio began his career in global advertising and worked at Ogilvy and Mather and Donna Karan International. More recently, he was Vice President of Global Marketing and Creative for Unilever Cosmetics International, Coty Prestige and L’Oreal.

Founded in Switzerland in 1975 and now headquartered in Irvine, Calif., Arbonne International LLC creates personal-care and wellness products that are crafted with premium botanical ingredients and innovative scientific discovery. Arbonne products are available at arbonne.com or through an extensive network of Arbonne independent consultants in the United States, Canada, Australia and the United Kingdom.


Herbalife Ltd.

Florisa BarqueraFlorisa Barquera

Herbalife Ltd. announced the appointment of Florisa Barquera, M.D., an expert in nutrition and the issues related to obesity and nutritional disorders, to its Nutrition Advisory Board.

The Nutrition Advisory Board is comprised of experts from around the world in the fields of nutrition and health who inform, educate and train Herbalife independent distributors on the principles of nutrition, physical activity and healthy lifestyle.

Barquera is a member of the Mexican Academy for Obesity and has collaborated in several studies conducted by the Instituto Nacional de Salud Publica into the impact of poor nutrition on the population of Mexico. She is also a member of the Academic Development Committee at Universidad Anáhuac, Mexico City. She has authored and co-authored a number of articles and books on the subject of obesity and is regularly used by the media to provide comment on, and insight to, the nutrition situation in Mexico.

Herbalife Ltd. is a global nutrition company that sells weight-management, nutritional and personal-care products intended to support a healthy lifestyle. Herbalife products are sold in more than 80 countries to and through a network of 2.7 million independent distributors.


LifeVantage Corp.

Dr. Darlene R. WalleyDr. Darlene R. Walley

LifeVantage Corp., a leader in Nrf2 science and the maker of Protandim®, the Nrf2 Synergizer® patented dietary supplement, announced Darlene R. Walley, Ph.D., will serve as the company’s new Chief Science Officer.

Dr. Walley will directly oversee the expansion of the company’s research and development as it seeks to expand its offering of scientifically validated research-backed products. Prior to joining LifeVantage, Dr. Walley was Founder and President of DRW Consulting, a firm specializing in assisting large and small companies in bringing new products to market. Her clients spanned the nutraceutical, pharmaceutical and biotechnology industries. In addition, Dr. Walley has led research and development teams at Procter & Gamble, as Senior Director of Research and Development at Church & Dwight, and as Vice President of Research and Development at Gillette.

In connection with Dr. Walley’s appointment, the company also announced that Dr. Joe McCord will continue to work with the company to champion third-party peer-reviewed studies of the company’s flagship product Protandim and to educate independent distributors on the advancement of Nrf2 science. Dr. McCord will remain a key member of the company’s Scientific Advisory Board, which will be led by Dr. Walley.

LifeVantage Corp., a science based nutraceutical company, is dedicated to visionary science that looks to transform wellness and anti-aging internally and externally with products that dramatically reduce oxidative stress at the cellular level. The company was founded in 2003 and is headquartered in Salt Lake City.


Neways

Chris CrumpChris Crump

Neways announced the appointment of Chris Crump as the company’s new Chief Administrative Officer. With this change, all back-office functions within Neways report directly to Crump, including legal, regulatory, human resources, quality, operations and information technology.

As CAO, Crump will review and develop companywide administrative policies, negotiate new and existing contracts, and help communicate Neways’ strategic development plans to key stakeholders. Prior to this appointment, Crump was serving Neways as Vice President, General Counsel.

Founded in 1987, Neways is a company that sells safe, effective nutritional and personal-care products through 300,000 Neways distributors in 30 countries.


Tastefully Simple

Sue RuschSue Rusch

Tastefully Simple announced that Sue Rusch has joined the company as the Senior Director of Executive Development. In this role, Rusch will coach and develop top-level independent consultants, lead the coaching team and serve as an advisor to Tastefully Simple’s vision team.

Rusch has over 25 years of direct sales experience. Early in her career, she developed and led a $19 million direct sales team. Rusch was the Vice President/General Manager for Big Yellow Box by Crayola®, and most recently a speaker, consultant, coach and author through Sue Rusch and Associates LLC. She’s earned the National Speaker’s Association’s highest designation, Certified Speaking Professional, and served the National Speakers Association Minnesota as former president and member of the board of directors.

Tastefully Simple is a national home tasting party company featuring easy-to-prepare foods and gifts. The company’s unique, high-quality products are offered through independent business consultants across the United States.


ViSalus

ViSalus announced that Internet entrepreneur Rich Riley was elected to its board of directors. Riley joins the ViSalus board with over 13 years of experience at Yahoo! Inc., where he was the Executive Vice President of the Americas Region. During his time at Yahoo!, Riley held several positions and was responsible for the successful turnaround of Europe when he managed the Europe/Middle East/Africa region, where he oversaw sales, marketing, editorial, content and business development. In 2006 he was a Yahoo! Superstar Award Winner, which is a global award given to the highest-performing Yahoo! employees.

Riley previously was the co-founder and managing member of an Internet startup company that developed and patented what is today the Yahoo! Toolbar and which was acquired by Yahoo! in 1999.

Riley currently serves on the Entrepreneurial Advisory Board at the Wharton School of the University of Pennsylvania, where he graduated with a bachelor’s in economics. He is also a member of the Young Presidents Organization.

Founded in 2005 with headquarters in Los Angeles and Troy, Mich., ViSalus is the company behind the Body by Vi™ Challenge, a 90-day health transformation platform. ViSalus is majority-owned by Blyth Inc.


International Association of Working Mothers

Pat DavisPat Davis

The International Association of Working Mothers (tiawm™) has appointed Pat Davis as the newest member of its board of directors. Davis is the President and Founder of Network Marketing Tutor Inc., based in Las Vegas, and formerly President and CEO of Passion Parties Inc.

Davis joins the tiawm™ board of directors at a time when working mothers represent one of the fastest-growing segments of the economy in business, executive leadership and economic power. Davis is a recognized expert in the direct sales industry. As President and CEO of Passion Parties, she was instrumental in a 12-times growth, reinvention and turnaround for the company.

The International Association of Working Mothers is a charitable, tax-exempt, 501(c)(3) organization dedicated to making a significant difference in building and sustaining healthy communities by unlocking the potential of working mothers through advocacy and education.

Filed Under: Daily News

Amway Planning Huge Growth in India

November 28, 2012 by DSN Staff Leave a Comment

AmwayThe Economic Times (India) reported that Amway, India’s largest direct selling firm, has announced its intention of reaching a billion dollars in the Indian market by 2020. William Pinckney, Amway India’s Managing Director and CEO, said the company’s plans to build a manufacturing plant in India won’t displace the seven contract manufacturers currently in use. The production output of the contractors and the new plant will meet demand within India and also for Amway’s global operations. In addition to the new plant, Amway has plans to staff a new R&D center in India and will hire 25-30 research scientists.

Amway represents about 44 percent of the direct selling market in India, which is reportedly on track to grow 20 percent in 2012-2013. 

To read the full article in The Economic Times, click here.

Filed Under: Daily News

Direct Selling Companies Donate Nearly $17 Million to TODAY Show Toy and Gift Drive

November 20, 2012 by DSN Staff Leave a Comment

The Direct Selling Association helped kick off the 19th Annual TODAY Show Holiday Toy and Gift Drive Nov. 19 by presenting the direct selling industry’s donation live in Rockefeller Plaza in New York City.

Twenty-one direct selling companies donated a total of nearly $17 million in products and cash to the Toy Drive. Of the 21 participating companies, at least 10 will be featured in their own spots on the TODAY Show during the holiday season. In its nine years of participation, DSA member companies have donated more than $100 million in products, services and cash to the Toy Drive.

Participating companies donated items from books, stuffed animals and fashion accessories to clothing and toiletries for children and families across the country.

“The TODAY Show Holiday Gift Drive is just one example each year of how direct selling serves as a force for good in our communities, across the country and throughout the world,” said Amy Robinson, DSA’s Chief Marketing Officer. “Every day, direct sellers help others achieve their goals through the products and opportunities they offer, but their involvement in charitable and philanthropic activities reinforces the positive impact direct selling has on millions of lives each year.”

The TODAY Show Toy Drive is a project of the Today Show Charitable Foundation, Inc., a 501(c)3 non-profit organization. Donations are matched with the needs of more than 200 organizations with which the Today Show Charitable Foundation works. As part of this year’s Toy Drive, DSA member companies will send items to dozens of organizations in states from California to New York.

The following direct selling companies donated products to this year’s Toy Drive:

  • 4Life (www.4life.com)
  • Amway (ww.amway.com)
  • Arbonne (www.arbonne.com)
  • Avon (www.avon.com)
  • Blessings Unlimited (www.myblessingsunlimited.net)
  • CUTCO (www.cutco.com)
  • DeTech (www.detech.com)
  • Essential Bodywear (www.essentialbodywear.com)
  • Initials, Inc. (www.initials-inc.com)
  • lia sophia (www.liasophia.com)
  • Mary Kay Inc. (www.marykay.com)
  • PartyLite (www.partylite.com)
  • Pink Papaya (www.pinkpapayaparties.com)
  • SeneGence (www.senegence.com)
  • Shaklee (www.shaklee.com)
  • Signature HomeStyles (www.signaturehomestyles.com)
  • Southwestern Advantage (www.southwestern.com)
  • Stampin’ Up! (www.stampinup.com)
  • Team National (www.bign.com)
  • Thirty-One Gifts (www.thirtyonegifts.com)
  • Vantel Pearls (www.vantelpearls.com)

For more information on direct selling, DSA and its Code of Ethics, visit the DSA website at www.dsa.org.

To view DSA presenting the donation on the TODAY Show, click here.

Filed Under: Daily News Tagged With: Shaklee

Solavei Launches Mobile Phone Service

November 20, 2012 by DSN Staff Leave a Comment

Solavei

Launched on Sept. 21, Solavei members are taking advantage of the only mobile phone service offering a $49 per month unlimited voice, text and data plan, along with the ability to earn recurring monthly income by signing up other members.

Rather than spending millions of dollars advertising to get its message out and using retail stores to distribute its services, Solavei, in strategic partnership with T-Mobile, relies on its members to share the service with their friends and family and directly compensates them for their efforts. The more than 65,000 members using Solavei’s contract-free mobile service are essentially serving as moving points of distribution, adding new customers by sharing through word-of-mouth and personal social media connections. “We created Solavei and our social commerce platform to give people the opportunity to earn income by sharing a service they are already using every day,” said Ryan Wuerch, Founder and CEO of Solavei. “With more than 300 million mobile phone subscribers in the U.S., it’s time to shift the billions of dollars the large wireless carriers spend on advertising to the greatest advertiser in the world—people.”

Members who choose to share the Solavei Mobile Service with others through its social commerce platform can use the money to offset their monthly bill and even have the opportunity to generate recurring monthly income. Solavei offers a highly efficient and scalable means to both consume and distribute mobile service.

For more information, go to www.Solavei.com.

Filed Under: Daily News

Vollara Introduces Spin on Party Plan

November 14, 2012 by DSN Staff Leave a Comment

Vollara

Spearheaded by Vollara’s Chairman and CEO, Joe Urso, the company has introduced a new program called GTO, or Green Technology Open House, which is a high-touch, relational way to encourage personal communication and good stewardship through healthy living.

The Vollara business model has typically been a direct sales, person-to-person business. The introduction of GTO creates a home-based atmosphere similar to a party plan model, whereby independent business owners walk guests through a scripted demonstration of Vollara’s technology products in a real live setting where there is nothing to buy and nothing to join. The only request that is made is to become an Authorized Field Tester. A series of steps are given to the GTO attendee so they can put the technology through a 3-5-day workout. After this whole home cleansing, the company found that people have responded with strong interest in hosting a GTO or owning the technology.

Vice President of Sales and Health Science Troy Sanford says, “Our message is really resonating with the people who attend the GTO. They discover new ways to live healthier, greener lives. Having fun by ‘WOWing’ people with pure living products and earning great money is a recipe for viral success.”

More information on this new program and other Vollara programs and products can be found on their website at www.Vollara.com.

Filed Under: Daily News

USANA COO Among Top in U.S.

November 6, 2012 by DSN Staff Leave a Comment

USANA

Besides running a growing direct sales company, USANA COO Roy Truett has something else to celebrate. ExecRank released their report of the Top 100 COOs in 2012 and Truett was honored as No. 19!

According to ExecRank, “COOs were ranked according to our patent-pending proprietary COO Ranking Algorithm that calculates points for 24 key categories, in addition to the insights and feedback from evaluation committees featuring some of the world’s most renowned business leaders. Like all of our position specific ranking algorithms, the COO Ranking Algorithm serves as an objective standard for executive performance and is designed to produce results that act as leading indicators for future executive and team performance.”

Truett said, “It is a tremendous honor to be featured among some of the top COOs in the country and I appreciate the opportunity to represent our profession (on ExecRank.com).”

The entire report with complete rankings can be found here.

Filed Under: Daily News

Make Your Vote Count on Election Day

November 1, 2012 by DSN Staff Leave a Comment


Click here to order the Direct Selling News issue in which this article appeared.


You’ve likely seen a lot of political ads this election season, certainly with a lot of promises and probably with a lot of half-truths and misrepresentations, too. But for direct sellers, there is only one message that counts. Will this candidate understand and support the entrepreneurship, customer service, great products and opportunity that direct sellers bring to their communities and the country?

You know, of course, that we will be voting for a new president on Nov. 6; significantly, there are also 33 senators, 435 congressmen and many state legislators who will be up for election. These men and women will confront not only critical national and state issues like the federal budget and debt, security and terrorism, and foreign policy, but also matters of utmost importance to direct selling—taxation, independent contractor status, consumer protection matters, pyramid schemes, international trade, employment law, privacy, business opportunities and many more.

The Direct Selling Association (DSA) has a comprehensive strategy to ensure that these policymakers and lawmakers are aware of direct sellers, their interests and concerns. (For those of you who’d like the details of how the Association comprehensively advocates 365 days a year on behalf of direct sellers in Congress, state capitals, and city council halls, drop me a note.) But it is equally important that, as citizens and direct sellers, direct selling executives are aware of legislators who have demonstrated a knowledge of and support for direct sellers. Thus, we have published the first Direct Selling Association Voter’s Guide. This state-by-state breakdown of nearly 100 elected officials includes descriptions of the legislators, their districts, the substantive areas in which they have been involved with direct selling, as well as a general business assessment of the legislator’s record from the U.S. Chamber of Commerce (of which DSA is a member).

We’ve considered a number of issues as we identified these candidates. Some of them include:

  • Did the lawmaker support direct sellers in having the FTC amend the recently promulgated business opportunity rule?
  • Has the lawmaker sponsored legislation supported by DSA?
  • Has the lawmaker or candidate ever been a direct seller?
  • Has the legislator been supportive of independent contractor status?
  • Does the legislator or candidate have knowledge of or a relationship with a DSA member company?

Direct sellers can and should have an impact every Election Day. We estimate that there are as many as 40,000 individual direct sellers in each congressional district. Even a few of those direct seller votes could make the difference in determining who serves in Congress or in a state legislature and who does not. It is our hope that direct sellers will become a visible and appreciated force in each and every election, and that executives and individual direct sellers alike use the tools DSA is committed to providing to help voters make informed electoral choices every November.

Take a look at the DSA Voter’s Guide on our website at www.dsa.org and let us know what you think. If you have any questions or comments about the candidates or their positions on direct selling, please let us know. And please feel free to share any information you may have about specific candidates for future editions of the DSA Voter’s Guide.


Joseph N. MarianoJoseph N. Mariano is President of the U.S. Direct Selling Association.

Filed Under: Daily News

Executive Connection with Michael Ellison, CEO and Founder, TriVita

November 1, 2012 by DSN Staff Leave a Comment

Trivita Founder and CEO Michael Ellison with his wife, Susan.
Trivita Founder and CEO Michael Ellison with his wife, Susan.

In this month’s Executive Connection, Direct Selling News Publisher and Editor in Chief John Fleming speaks with Michael Ellison, CEO and Founder of TriVita, about leadership, staying mission focused and building a foundation that will sustain his company.

DSN: What is the one thing you enjoy most about being the CEO of TriVita?

ME: Building a mission-driven company and seeing that mission fulfilled in the lives of our customers. That’s my No. 1 passion and joy.

DSN: What has been your proudest accomplishment?

ME: Developing a business model that supports the mission by using the reach of media and the power of one to one. We call it cooperative marketing. I believe that is my proudest accomplishment. People told me you can’t do it. We knew it would be challenging to do, and we’ve done it. It has turned into our economic engine.

DSN: What do you tell TriVita’s distributors to lead and inspire them?

ME: I teach universal laws that empower them to believe in fulfilling their life purpose. I don’t believe in incentives, and I’m not big on just motivating people. I want them to have understanding and wisdom from universal laws. For example: the Law of Reciprocity. In our context it means that if you serve mankind with a product or service of value, then mankind will gladly compensate you for it.

DSN: What is your vision for TriVita?

ME: Seeing our mission fulfilled worldwide.

DSN: What are you most excited about as Amazon Herbs Company becomes part of TriVita?

ME: John Easterling and Olivia [Newton-John, his wife] have mutual missions, visions and values with us in TriVita. If that weren’t there, nothing else would matter. It would be challenging. That foundation makes everything possible.

DSN: Is there one basic principle which has governed your leadership at TriVita?

ME: Stay true to the reason we founded the company: the mission. Don’t allow dysfunctional leadership to develop in the corporate staff or the field, where they become more important than the mission.

DSN: What direct selling company or leader do you especially admire?

ME: I admire many company leaders that have mission-driven visions. Medifast, Amway and USANA are a few, but there are many.

DSN: In your years in business, what lesson have you learned that has proved to be especially useful?

ME: I’ve learned to stay true to the mission and constantly strive to do it better, rather than being distracted by the views and opinions and successes of others. By doing that, we’ve constantly improved TriVita.

DSN: What’s at the top of your “bucket list”?

ME: To embed the mission of TriVita deep within the corporate and field leadership so it will sustain the growth and profitability of TriVita for generations in the future. That’s what I’m focused on every single day.

Filed Under: Daily News

November 2012

November 1, 2012 by DSN Staff Leave a Comment

ViSalus

Todd Goergen
Todd Goergen
Tyler P. Schuessler
Tyler P. Schuessler

ViSalus announced the appointment of Todd Goergen as Chief Strategy Officer. Goergen has served as Chairman of the ViSalus Board of Directors since Ropart Asset Management (RAM)—of which he is Managing Partner—provided the original investment capital for ViSalus in 2006.

Goergen has been Managing Partner of RAM, a private equity firm that invests directly in small to midsize companies, since 2001. He was an Analyst/Associate in Mergers and Acquisitions at Donaldson, Lufkin & Jenrette from 1994 to 1999.

ViSalus also announced the appointment of Tyler P. Schuessler as Chief Administrative Officer. Schuessler will join ViSalus from her position as Vice President, Organizational Development and Investor Relations at Blyth Inc., where she reports to the Chairman and CEO and is a member of the Office of the Chairman.

Schuessler has worked at Blyth for the past 12 years with responsibility for global human resources, investor relations and corporate communications. She has supported ViSalus’ human resources function since Blyth entered into an agreement to acquire shares of ViSalus in 2008. Prior to this position Schuessler served at Blyth in roles of increasing responsibility since 2000.

Both Goergen and Schuessler are members of ViSalus’ senior executive team and report directly to Ryan Blair, Co-Founder and CEO of ViSalus.

Founded in 2005 with headquarters in Los Angeles and Troy, Mich., ViSalus is the company behind the Body by Vi™ Challenge, a 90-day health transformation platform. ViSalus is majority-owned by Blyth Inc.


Avon Products Inc.

Jeff Benjamin
Jeff Benjamin
Charles H. Noski
Charles H. Noski

Avon Products Inc. announced the appointment of Jeff Benjamin as Senior Vice President and General Counsel. Benjamin will report to Sheri McCoy, Avon’s CEO, and join the company’s Executive Committee.

In a career spanning more than 40 years prior to his retirement from Novartis Corp. at year-end 2011, Benjamin developed expertise in litigation, corporate transactions, antitrust, environmental regulation, equal employment opportunity, product liability, and ethics and compliance. Throughout his career at Novartis (formerly known as Ciba-Geigy Corp.), Benjamin served in a variety of General Counseling positions.

Avon also announced that its board of directors has elected Charles H. Noski to the board, effective immediately. Noski’s election increases Avon’s board to 12 directors.

Noski served as Vice Chairman of Bank of America Corp. from June 2011 to September 2012, following his role as Executive Vice President and Chief Financial Officer of that company from May 2010 to June 2011. Prior to that, Noski served as Corporate Vice President and Chief Financial Officer of Northrop Grumman Corp., as well as a director of that company.

Avon, the company for women, is a leading global beauty company, with over $11 billion in annual revenue. As the world’s largest direct seller, Avon markets to women in more than 100 countries through over 6 million active independent Avon Sales Representatives.


XANGO

XANGO LLC announced several new hires and promotions in line with expansion that has it now doing business in 42 countries.

Jason Pierce
Jason Pierce
Yoko Little
Yoko Little
Brian Gallacher
Brian Gallacher
Jina Anson
Jina Anson

Jason Pierce has been named Vice President of International Development. Pierce has been with XANGO since 2004. After spending the past two years working closely with XANGO’s Europe/CIS (Russia, Ukraine and Kazakhstan)/Africa/Oceania management team to build its business infrastructure, Pierce has returned to company headquarters in Utah to oversee the company’s international expansion. In this role he will work closely to liaison with international regional directors and the company’s board of directors to execute a strategy for expansion in key markets.

Yoko Little has been promoted to Senior Director, Global Product Marketing. Little has been with XANGO for five years, during which time she has brought her experience in product and brand marketing to oversee numerous product launches, marketing and promotions on a global scale. In her position Little oversees a team of directors and brand managers in executing a global strategy. Little has 15 years of experience in product marketing, development and international business with 10 years of experience as a brand manager.

Janay Standifird, a licensed CPA, has been promoted to Corporate Controller, overseeing all accounting functions for XANGO’s global operations. Standifird has been with XANGO since 2007, during which she has overseen accounting for various functions and business units for the company prior to earning her current position.

Brian Gallacher, a veteran of network marketing with more than seven years at XANGO, has been promoted to the position of Director, North and South Americas Development. In this position Gallacher will focus on supporting marketing and operational functions for these markets, which make up XANGO’s highest-revenue region of the world. Gallacher’s background includes having helped XANGO open more than two-thirds of the countries in which it currently operates.

Jina Anson has been promoted to Director of Nutrition Product Management. In this role she will lead marketing, development and formulations for the company’s expanding nutritional product line. Anson joined XANGO in 2009 as a brand manager over nutrition products, and since then has worked on multiple product launches. Prior to joining XANGO, Anson excelled as a product manager within the network marketing industry for 10 years.

A global nutrition company, XANGO LLC was the first company to market a premium mangosteen beverage, XANGO® Juice, to consumers worldwide. XANGO is privately owned and powered by a global network of more than 1 million independent distributors in the U.S. and 40 international markets.


RBC Life Sciences Inc.

Cindy L. Tysinger
Cindy L. Tysinger

RBC Life Sciences Inc. announced that Cindy L. Tysinger has been appointed as a member of the company’s board of directors. Tysinger is CEO and founder of GSAT Inc. (GSATi), a provider of business and technology services to global clients. Tysinger founded GSATi in 2008.

Prior to founding her company, Tysinger had a 12-year association with a multinational direct sales company engaged in the distribution of nutritional products, rising up to Chief Information Officer and Senior Vice President of Information Technology.

Tysinger was appointed to fill an open seat on the company’s board of directors. Her initial term extends until the company’s annual meeting of shareholders in 2014.

Through wholly owned subsidiaries, RBC Life Sciences develops, markets and distributes high-quality nutritional supplements and personal care products under its RBC Life brand to a growing population of consumers seeking wellness and a healthy lifestyle.

Filed Under: Daily News

Financial News, November 2012

November 1, 2012 by DSN Staff Leave a Comment

AL International

AL International (JCOF—OTC.BB), a global direct marketer of lifestyle and nutritional products and gourmet fortified coffee, released second quarter 2012 financial results. The company reported a 121 percent increase in revenues for the quarter, recording net sales of $18.94 million, compared to $8.56 million for the same quarter in 2011.

Gross profits increased to $10.75 million in Q1 2012, compared to $5.29 million for the same period in 2011. First quarter operating expenses increased to $10.74 million, versus $5.28 million for the same period in 2011. AL International recorded income from operations of $5,000 for Q2 2012, compared to $8,000 in 2011. The company reported a net loss of $261,000 with $472,000 in EBITDA in the second quarter, versus a net loss of $96,000 with $175,000 in EBITDA for the same quarter for 2011.

In other company news, AL International announced the successful completion of the audit of its financial statements for the two years ended Dec. 31, 2011 and 2010. The audit was performed by an independent CPA firm registered with the PCAOB (Public Company Accounting Oversight Board).

The audited financial statements include the operating results and financial position of the company and its wholly owned subsidiaries AL Global Corp., CLR Roasters LLC, Financial Destination Inc., FDI Management Inc., MoneyTrax LLC, Youngevity Australia Pty. Ltd. and Youngevity NZ Ltd. The audit also covers the company’s non-controlling interest in AL Corporation Holding Pte. Ltd. and DrinkAct Southeast Asia Inc.

As of Dec. 31, 2011, the company’s audited Consolidated Balance Sheet reported total stockholders’ equity of approximately $9.08 million, an increase of approximately $2.01 million as compared to the company’s previously announced unaudited statements.

AL International Inc. is an innovative, multidimensional company that offers a wide range of consumer products and services, primarily through person-to-person selling relationships that comprise a “network of networks.” AL International was formed after the merger of Youngevity Essential Life Sciences and Javalution Coffee Company in the summer of 2011.


Just Energy Group Inc.

Just Energy Group Inc. (JE—NYSE and JE—TSX) reports first quarter results for the three months ended June 30, 2012.

The company forecasted higher published guidance for gross margin and Adjusted EBITDA growth for fiscal 2013 than what was achieved for fiscal 2012, and the first quarter evidenced this resurgence in the company’s growth.

Gross margin was $114.3 million, up 21 percent (19 percent per share).

Adjusted EBITDA was $42.3 million, up 13 percent (11 percent per share), reflecting earnings before marketing expenditures to add new gross margin.

Funds from Operations was $2.1 million, versus $24.9 million in Q1, fiscal 2012, as all cash from operations was used to fund higher than expected customer additions and faster than expected growth of the Momentis network marketing division. Adjusted Funds from Operations was $29.2 million.

First quarter results are ahead of the published annual guidance of 10 percent to 12 percent growth in gross margin (21 percent to date) and 8 percent to 10 percent growth in Adjusted EBITDA (13 percent to date).

At the same time the company’s core business was growing at a rapid rate, a number of investments in new growth channels were made during the quarter. The most significant of these was the investment in the Momentis network marketing division. A year ago, Momentis had 5,000 independent representatives. At June 30, 2012, the total had reached 66,000, up 18,200 in the past three months.

Just Energy Group Inc. also filed notice with the Toronto Stock Exchange and the New York Stock Exchange announcing its October dividend. A dividend of CAN$0.10333/common share (CAN$1.24 annually) was payable Oct. 31, 2012, to shareholders of record at the close of business on Oct. 15, 2012. This dividend is designated as an “eligible dividend” for Canadian income tax purposes.

Just Energy also reports that at Sept. 30, 2012, the conversion price for each CAN$1,000 of its outstanding 6 percent convertible unsecured subordinated debenture issued on Oct. 2, 2007, has been adjusted in accordance with the Trust Indenture dated Oct. 2, 2007, as supplemented from time to time, to CAN$27.82 convertible into 35.95 common shares of Just Energy Group Inc.

Established in 1997, Just Energy is primarily a competitive retailer of natural gas and electricity. It is the parent company of direct seller Momentis.


LifeVantage Corp.

LifeVantage Corp. (LFVN—NASDAQ), a science-based nutraceutical company and maker of patented dietary supplement Protandim®, the Nrf2 Synergizer®, reported financial results for the fourth quarter ended June 30, 2012.

For the fourth fiscal quarter ended June 30, 2012, the company reported record net revenue of $44.6 million, compared to $15.0 million for the same period in fiscal 2011, an increase of 197 percent. On a sequential quarter basis, net revenue increased 23 percent from the $36.2 million reported for the company’s 2012 third fiscal quarter ended March 31, 2012.

Gross profit for the fourth fiscal quarter ended June 30, 2012, increased to $38.2 million, compared to $12.9 million for the same period last year, delivering a gross margin of 85.6 percent, compared to 85.9 percent for the prior year period.

Operating expenses for the fiscal year 2012 fourth quarter increased to $30.8 million from $11.0 million for the prior year period, but decreased as a percent of revenue to 69.1 percent for the fiscal year 2012 fourth quarter, compared to 72.9 percent of revenue for the same period last year. On a sequential quarter basis, operating expenses as a percentage of revenue increased slightly from 68.5 percent in the third fiscal quarter.

Operating income improved to $7.3 million for the fourth fiscal quarter, compared to $2.0 million in the same period last year and $6.4 million in the third fiscal quarter. This was the company’s eighth consecutive quarter of achieving operating income. Operating income margin was 16.5 percent in the fourth fiscal quarter, compared to 13.0 percent in the same period last year and 17.7 percent in the third fiscal quarter.

Net Income for the fourth quarter of fiscal year 2012 was $4.8 million, or 4 cents per diluted share. This compares to a net loss in the fourth quarter of fiscal year 2011 of $47.2 million, or 56 cents per diluted share.

The company also announced that its common stock has been approved for listing on The Nasdaq Capital Market. Shares of LifeVantage’s common stock commenced trading on the Nasdaq Capital Market under its current ticker symbol “LFVN,” at market opening on Sept. 12, 2012.

Prior to the listing of its common stock on the Nasdaq Capital Market, LifeVantage’s common stock was traded on the OTC Bulletin Board.

LifeVantage is a leader in Nrf2 science and sells wellness and anti-aging products to reduce oxidative stress at the cellular level. The company was founded in 2003 and is headquartered in Salt Lake City.


RBC Life Sciences Inc.

RBC Life Sciences Inc. (RBCL—OTC.BB) products, reported consolidated net sales of $6.5 million for the quarter ended June 30, 2012, compared to $7.5 million for the second quarter of 2011. For the quarter, the company reported net earnings of $23,120, or zero cents per share, compared to net earnings of $17,030, or zero cents per share, for the same quarter in 2011.

Through wholly owned subsidiaries, RBC Life Sciences develops, markets and distributes high-quality nutritional supplements and personal care products under its RBC Life brand to a growing population of consumers seeking wellness and a healthy lifestyle.


Tupperware Brands Corp.

Tupperware Brands Corp. (TUP—NYSE) announced that its board of directors declared the company’s regular quarterly dividend of 36 cents per share, payable on Oct. 5, 2012, to shareholders of record as of Sept. 19, 2012.

Tupperware Brands Corp. is a portfolio of global direct selling companies, selling innovative, premium products across multiple brands and categories through an independent salesforce of 2.7 million.


Direct Selling News has accumulated this information from public sources, including press releases and SEC filings. The information is presumed accurate and reliable. However, it is not an endorsement of any investment opportunity. Proper and considerable due diligence should be completed before making any investment.

Filed Under: Financial

Vitamins Celebrate 100 Years!

November 1, 2012 by DSN Staff Leave a Comment


Click here to order the Direct Selling News issue in which this article appeared.



A recent Nutrition Business Journal report indicated vitamin sales in the direct selling channel grew about 10 percent to $1.6 billion in 2011, accounting for about 35 percent of all supplement sales.


According to a May 2012 McKinsey & Company consumer shopper and insight report, the functional nutrition category—including vitamin nutrition as supplements and in fortified foods and beverages—is a $225–275 billion industry.

What’s more, a recent Nutrition Business Journal report indicated vitamin sales in the direct selling channel grew about 10 percent to $1.6 billion in 2011, accounting for about 35 percent of all supplement sales, which represents a huge market share. And condition-specific vitamin supplements are helping to lead the way. With one baby boomer turning 60 years old every 7.5 seconds, maintaining brain health has become extremely top of mind. B vitamins as well as other ingredients such as DHA omega-3 are just some of the nutrients used to support brain health. (NBJ, Volume XVII | No. 4 | April 2012).

Casimir Funk
Casimir Funk

The history of vitamins dates back to 1912 when the Polish-American biochemist Casimir Funk isolated the first vitamin (B1 from rice bran. At that time, European rice hulling machines were brought to Asia to process rice. However, the hulling process stripped the rice of vital nutritional elements. As a consequence, new health problems began emerging among people that relied on de-hulled rice as a staple food.

Funk realized that a compound inside rice bran was essential. He gave the newly discovered substance the name vitamine—a combination of vita (Latin for “life”) and amine (nitrogen compound).

For 100 years the word vitamin has been an umbrella term for a group of essential micronutrients that play a range of important roles in our bodies. Most vitamins must be obtained from the diet, classifying them as “essential.” When intake is inadequate, vitamin deficiency disorders occur. Vitamins are present in food in minute quantities compared to the macronutrients protein, carbohydrates and fat.

While the benefits of each vitamin remain consistent, the delivery methods are evolving, creating more and more opportunities for direct sellers. Innovation paves the way to make it easier and more convenient for families to get the recommended daily amounts of vitamins. There are new delivery applications, including:

  • vegetarian softgels
  • sprinkle packs
  • gels
  • effervescents

VitaminsVitamins can even be disguised in traditionally indulgent foods such as chocolates. For instance, there are chocolate truffles on the market fortified with folic acid (one of the B vitamins) for pregnant women. So, while not your typical delivery system for vitamins, fortified foods such as chocolates can help to increase consumer compliance and improve nutrient intake.

Consumers also want assurance that the supplements or fortified foods and beverages they buy are safe and effective and composed of ingredients that are sustainably sourced. With such high expectations, direct selling companies provide a credible competitive advantage and should look for innovative supplier partners that can develop new applications to help boost consumer compliance while delivering high-quality and traceable ingredients. Working with an ingredient supplier/manufacturer that is knowledgeable in the product development process adds value to the partnership, and most important, to the end product.


Consumers want assurance that the supplements or fortified foods and beverages they buy are safe and effective.


Direct selling companies considering capturing a share of this market should use the following checklist when partnering with an ingredient supplier to ensure development of a quality product:

» Traceability: It’s important to understand where the ingredients you purchase come from. Not all ingredients are produced with the same quality controls in place.
» Bioavailability: Perform bioavailability studies or make sure the ingredient supplier can provide you with bioavailability studies on their ingredients. This will ensure that the ingredients can be efficiently absorbed by the body.
» Technical Assistance and Scientific Support: Many ingredient suppliers have in-house technical and scientific support teams that are accessible to its customers. It’s important to inquire about technical assistance and scientific support so that you get the full benefits of your partnership.
» Regulatory Knowledge: This area is critical and essential. Have a dedicated team focused on staying up to date on the regulatory environment.
» Education, Marketing and Communications Support: Develop educational and other marketing material that clearly articulates the health benefits of your products.

As we celebrate a century of vitamins, we are cognizant of the tremendous scientific accomplishments that helped us get to where we are today in a relatively short period of time, but we also need to be motivated to increase awareness of the importance of vitamin intake on a global level. Nutritional supplements have certainly become a major category of products sold through the direct selling channel, which provides the opportunity to tell the story behind the products. The outlook for the future is very promising!


Michael McBurney, Ph.D. Michael McBurney, Ph.D., is Head of Scientific Affairs, DSM Nutritional Products—a global health and nutrition company, driving science, innovation, and supply of vitamin, omega-3 fats and nutrients throughout the world. DSM Nutritional Products features a dedicated supplements lab as well as dairy, bread and beverage labs. DSM has experienced marketing, scientific affairs and regulatory teams who are available to assist companies with label claims and offer insight into the global regulatory status of ingredients, as needed.

Filed Under: Working Smart

Exclusive Profile: Origami Owl

November 1, 2012 by DSN Staff Leave a Comment


Click here to order the Direct Selling News issue in which this article appeared.


Isabella
Isabella “Bella” Weems, Founder

Driven by a Dream

Two years ago, 14-year-old Isabella “Bella” Weems told her parents she wanted a car for her 16th birthday. Her parents made a deal with her. If she wanted to create a business and earn the money, they would match her investment. With $350 in babysitting earnings and $350 from her parents, she invested in some clear lockets. She called them Living Lockets. Customers could customize by choosing charms to place inside the lockets.

Weems named her business Origami Owl and got to work designing and selling lockets and sharing her goal with others. She hoped to earn enough to buy an old truck—$3,000 to $6,000. But it quickly became apparent that she could earn much more. In no time, she was making thousands of dollars doing home jewelry parties and setting up booths at events, where she often outsold all other vendors.

In November 2010, she and her mother decided to take a big risk. They rented a kiosk in their Chandler, Ariz., mall from Black Friday through the Christmas holiday for $7,000 per month. In five days, they had made a healthy profit—enough to lease the space for another six months. By Christmas, they had made a five-figure profit. They ended up leasing the kiosk for a year.

Rapid Growth

Origami Owl’s Co-Founder (and Bella’s mother) Chrissy Weems soon felt the need to seek help. She enlisted her sister Jessica Reinhart to handle Origami Owl’s marketing and her brother-in-law Jeff Reinhart as Chief Operating Officer.

Although the young company had a retail location and website, customers continually asked for more. They asked, “How can we sell your products?” and “When is Origami Owl coming to our area?”

The team considered franchising. But ultimately they decided franchising didn’t line up with Origami Owl’s mission: to motivate and inspire other women to reach their own goals and dreams.


“Origami Owl was all about Bella reaching her goal and seeing her dream come true. We wanted to help others do the same.”
—Jessica Reinhart, Chief Marketing Officer


“The biggest deciding factor for us didn’t have anything to do with dollars and cents,” says Jessica Reinhart, Chief Marketing Officer. “Origami Owl was all about Bella reaching her goal and seeing her dream come true. We wanted to help others do the same. If we opened up retail locations, we were simply providing people with mall jobs.”

The Weemses and Reinharts decided that if they were going to put their whole lives into Origami Owl, they wanted the company to be something they could take pride in. They determined the direct marketing model best met Origami Owl’s mission and vision. So in January 2012 they launched Origami Owl as a direct selling company.

Where does the name Origami Owl come from?

Founder Bella Weems has always loved origami. She’s had it hanging from her ceiling since she was a little girl. It’s a perfect representation of the lockets. Each person folds in their own way, so all have unique characteristics. That’s the signature of Origami Owl jewelry. No two are exactly alike.

Owls represent wisdom, strength and courage. When they put the name Origami Owl together, Bella and her mom, Co-Founder Chrissy Weems, loved the way it sounded. They loved the meaning even more.

Keeping the Balance

In just 52 days, 1,000 Independent Origami Owl Designers signed up. Because of high sales volume, the executive team made the decision to create a wait list for new designers. “At the time we decided to create a wait list, we were having to backorder products,” Jessica Reinhart says. “We knew that could become a vicious cycle.”

The executive team made this tough call because they believed it was in the best interest of their designers. The wait list has allowed growth to take place as the company is ready. Today Origami Owl has about 4,500 independent designers. Each week, the company invites a limited number of people off of the wait list. Yet the list continues to grow.

The product line has grown as well. In November, Origami Owl is launching their Simplicity Collection, which includes an assortment of fine pewter tags with initials, words of empowerment and natural stone elements. Each piece is handcrafted in the United States. Like the original Living Lockets, all of the jewelry can be customized.

Origami Owl’s executives haven’t forgotten the company is the brainchild of its young founder, Bella. So when she and her team created their direct sales company, they wanted to include young people with an entrepreneurial spirit as part of their salesforce. Teens as young as 14 can become independent designers as long as a parent or guardian signs up with them.

The executive team believes its unique salesforce of mother/daughter teams is a defining aspect of Origami Owl. On a daily basis, they hear stories of how working the business is uniting families and helping shape kids into leaders.

“During a time when most teens are like oil and water with their parents, Origami Owl is bringing them together,” Jessica Reinhart says. “They’re learning invaluable skills that life doesn’t usually throw at you when you’re 14, like managing money and inventory. They’re developing personal skills. They’re learning how to make other people feel important.”

Finding Her Future

Since July 2011 Origami Owl has grown from five employees to a current total of 130. They’ve gone from a small office space to a large building with two warehouses in the same time.

“We’ve grown really fast,” Bella Weems says. “At times keeping up on a day-to-day basis has been challenging.”

When she started the business, Weems never could have imagined the impact that her jewelry would have on others. The stories she hears inspire her and keep her grounded. She’s particularly moved by hearing what the necklaces mean to women in the military or those who have lost a loved one. “They have things that remind them of their loved one around their neck every day, which is really special,” she says.

Lockets

“I’d like to inspire women of all ages. No matter what I do, I want to make a difference in people’s lives.”
—Isabella “Bella” Weems, Founder


Weems plans to go to college and get a business degree so that she can one day run the company. She is currently interning for two months in each division of Origami Owl. On most days, Weems spends three to four hours at the office after school.

Following her dream has required sacrifices. Weems recently decided not to try out for the school play, though she loves drama and singing. She wants to spend her free time at Origami Owl’s corporate headquarters.

When she looks to the future, her first wish is to see Origami Owl become a household name. And she hopes to become a motivational speaker someday. “I’d like to inspire women of all ages. No matter what I do, I want to make a difference in people’s lives,” Weems says.

She and the executive team soon plan to launch the O2 Foundation. The foundation will have a focus on single mothers with teens, with scholarship opportunities based on leadership and entrepreneurship. They’re also vetting national charitable causes. “I passionately believe in paying it forward, especially since I’ve been so blessed,” Weems says.

Inspiring Others

The executives at Origami Owl believe there’s plenty of opportunity for other young entrepreneurs. But they warn that it’s not easy. “It has to be something that they’re passionate about. I think that success has so much to do with intention. Our success as a company was founded upon Bella’s very pure intention going into this,” Jessica Reinhart says.

Weems agrees. “In the beginning, I wasn’t quite sure if I should or shouldn’t start a company. But then my mom and I took a leap of faith and look where I ended up. If you have a dream, follow your dream and make it a reality.”

One day last June, Weems’ dream became a reality. At a company event, independent designers wrote their dreams on balloons, then went outside and released them into the sky. At the moment they ascended, Weems’ dad drove up in a brand-new white jeep—her dream birthday gift that had become so much more.

“To be able to see that moment was pretty spectacular,” says Yvette Torres-Dickson, Vice President of Culture and Communications. “That’s why we’re all here.”

Filed Under: Feature Articles

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