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DSA Annual Meeting Closes with Historic Moment

June 7, 2012 by DSN Staff Leave a Comment

Dick and Doug DeVos Inducted into DSA Hall of Fame; Amway Co-Founder Rich DeVos Presented with Lifetime Achievement Award
Dick and Doug DeVos Inducted into DSA Hall of Fame; Amway Co-Founder Rich DeVos Presented with Lifetime Achievement Award


A record number of attendees—estimated to be more than 1,200—journeyed to the Gaylord Texan in Grapevine, Texas, to participate in this year’s DSA Annual Meeting, held June 4–5.

The opening general session featured former President George W. Bush, who offered a very candid and specific explanation of the role leadership plays in decision making. Amway President Doug DeVos facilitated the session, resulting in audience members witnessing a very up close and personal conversation between the former President and the widely respected Amway leader.

In the second general session, DSA President Joseph Mariano conducted a very interactive panel discussion with industry CEOs, including John Addison, Primerica; Carl Daikeler, Beachbody; Doug DeVos, Amway; David Holl, Mary Kay; Cindy Monroe, Thirty-One Gifts; Orville Thompson, Scentsy; and Alessandro Carlucci, Natura, who currently serves as Chairman of the World Federation of Direct Selling Associations (WFDSA). The session revealed the mindset of these leaders and their visions for how direct selling will continue to grow in its impact on the peoples and economies of the world.

The annual meeting featured content-loaded sessions and workshops that provided both new and seasoned direct sellers with stimulating information and ideas as well as new and best practices. Attendees were particularly interested in technology sessions, with any session containing the word social in its title resulting in standing room only crowds. However, while technology has changed the way many elements of direct selling are approached and executed, workshop leaders and presenters reminded attendees that the basic fundamentals of direct selling have not changed; in some cases, they are simply approached very differently.

On Tuesday evening, the DSA held a formal banquet during which awards and recognition were bestowed upon individuals who had made significant contributions to the industry. Jim Northrop, Principal of Winfield Consulting, and Sarah Baker Andrus, Director of External Relations and Academic Programs at CUTCO/Vector Marketing, both received the DSEF Circle of Honor Award.

The evening closed with two generations of DeVos leaders being recognized with the industry’s highest honors. 

Dick and Doug DeVos, who have both served as President of Amway and Chairman of the DSA, were inducted into the Direct Selling Association’s Hall of Fame. What made the moment special was the presentation of the awards by their father, Amway Co-Founder Rich DeVos, who had been inducted into the Hall of Fame in 1979.

It was a most historic moment when Rich DeVos was escorted to the stage. Audience members stood and broke into a thunderous ovation that continued for minutes. An industry icon was in the house; a consummate agent of change was about to speak. As expected, Rich DeVos did not simply present the awards to his two sons, but he also related the story of the industry, of Amway and, of course, of how his sons had guided his company to new heights through global expansion. It was a moment to remember—a very historic moment in the evolution of direct selling that will not soon be forgotten.

After the presentation of the Hall of Fame awards, DSA honored Rich DeVos with the Lifetime Achievement Award, only the second time the prestigious recognition has been bestowed on a direct seller. DeVos was recognized for his key role in strengthening direct selling and increasing its acceptance in the United States and throughout the world.

To view the Amway press release, click here.

Filed Under: Daily News

DSA Releases Annual Growth & Outlook Survey

June 5, 2012 by DSN Staff Leave a Comment

DSAThe United States Direct Selling Association (DSA) released the topline results of its Annual Growth & Outlook Survey, which shows U.S. direct sales totaled $29.87 billion in 2011, a 4.6 percent year-over-year increase from $28.56 billion in 2010.

“There is good news coming from the direct selling segment,” said DSA President Joseph Mariano. “Despite the economic climate, direct selling continues to be a source of income and support for independent consultants across the U.S.”

The U.S. direct selling market grew faster than the overall U.S. economy, which grew 3.9 percent as measured by gross domestic product (GDP). Nearly half of U.S. direct selling companies experienced sales growth and another 14 percent remained flat. Smaller direct selling companies (those with annual retail sales under $3 million) fared best with 66.7 percent showing growth, and an average retail sales increase of about 30 percent.

“Growing a small business when the economy is struggling is a tall order,” said Mariano. “As an industry that celebrates entrepreneurship, the achievements made in 2011, particularly by small direct selling companies, is remarkable.”

DSA released the findings of its 2011 Growth & Outlook Survey during a joint announcement with the World Federation of Direct Selling Associations at the DSA Annual Meeting in Grapevine, Texas.

View the release: http://www.dsa.org/press/press_releases/?fa=view&docID=5007

View the fact sheet: http://www.dsa.org/research/industry-statistics/11gofactsheet.pdf

Filed Under: Daily News

2012 DSN Global 100: The Top Direct Selling Companies in the World

June 2, 2012 by DSN Staff Writer Leave a Comment

Click here to go to the 2013 DSN Global 100


Table of Contents

Intro • Global Outlook • Why the Global 100? • The 2012 DSN Global 100: The Top 10 • The 2012 DSN Global 100: 11-100 •        Topping the Charts • DSN Global 100 • The $100 Million Club • Celebrating the DSN Global 100

Bravo Awards
Bravo Humanitarian Award: Nu Skin • Bravo Growth Award: ViSalus • Bravo Leadership Award: Doug DeVos


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


Direct Selling: The Rules of Perspective

Painting a picture of the global direct selling industry really depends on perspective.

by J.M. Emmert

Created from a lateral view—that is, outside the industry—it is generally painted with broad brush strokes as a business landscape populated by small- and medium-sized companies vying for consumer acceptance, a sector sometimes reacted to with less-than-positive perceptions. Those looking in from the outside often miss the success of the publicly traded direct selling companies that have averaged triple-digit percent increases in stock price over the last three years, as well as the privately held multinationals that continue to show year-to-year sales growth.

DSN June IssueBut produced from a centered view—one from within the industry—it is a vibrant and thriving channel, full of infinite possibilities, an agent of social change, a pathway to economic and personal freedom, and a harbinger of better, prosperous times to come. Included in this picture are the faces of 87 million people worldwide who have started their own businesses.

Any work of art, and any business model, is open to interpretation. And that’s the challenge facing the direct selling industry: how to change the perception of an industry that is often ignored by big business, big investors and big chunks of the labor force—an industry that in 2011 contributed more than $132 billion to the global economy.

The Power of Observation

Direct selling is a bit like Eugène Delacroix’s Liberty Leading the People at The Louvre: It’s there, but everyone is more interested in Leonardo da Vinci’s Mona Lisa. Those with little knowledge or understanding of art—and little time to dawdle—hurry down the traditional path to the recognized masterwork. If only they paused and reflected, they would see freedom in the revolutionary ideas that are changing the business landscape.

Any work of art, and any business model, is open to interpretation. And that’s the challenge facing the direct selling industry.

The fact is: Direct selling is leading people out of the grips of economic depression and back into prosperity. Sales growth for the Top 10 companies in this year’s DSN Global 100 list came in at a median 26.8 percent, the high at 60 percent (Peru’s Belcorp). American companies Amway and Herbalife had increases of 30 percent and 52 percent, respectively. Even Avon, which had its share of problems this year, reported a 9.7 increase.

Globally, two direct selling markets—South Africa and Peru—surpassed the billion-dollar barrier in 2012, joining 19 other countries from all four major regions of the world.

Still, the industry receives minimal recognition from the government—in fact, the U.S. Labor Department does not even include entrepreneurs in its statistics—and is most often overlooked by jobless workers eager to reenter the mainstream labor force.



A Window on the World

In 1413 Filippi Brunelleschi set the art world on its head when he created a painting from a window on the world. People were used to seeing only one perspective; Brunelleschi offered another, one that reinforced the notion that all reality converges and intersects at some end point. In other words, the picture changed, depending on your point of view.

While his work focused attention on the religious and intellectual issues of the time, the analogy is relevant for today’s time and place, where the No. 1 discussion among nations is the economy, and jobs in particular.

In April, the U.S. Department of Labor released its latest figures, and the picture wasn’t pretty. U.S. job growth slumped for the second straight month. Only 115,000 jobs were added in April—39,000 fewer than the previous month of March. America had 13.7 million jobless workers.

Optimism over a .1 drop in the unemployment rate for April (from the previous 8.2 percent) was short-lived when it was discovered the drop was due to an estimated 342,000 Americans dropping out of the job market in April alone. The bad news continued: The share of working-age Americans working or actively seeking employment reached its lowest level since 1981. The share of men in the labor force fell to the lowest figure since the Labor Department began collecting data in 1948—70 percent. There was a drop in young people in the labor force as well.


“We must find ways to change the public’s mindset about what ‘opportunity’ means and become part of the national solution.”
—Amy Robinson, Senior Vice President and Chief Marketing Officer, U.S. DSA


However, in the midst of these economic woes, not once did the perspective shift to the industry that is a true job creator: the direct selling industry. As Amy Robinson, Senior Vice President and Chief Marketing Officer of the U.S. Direct Selling Association notes, “Direct selling is exactly what helps [workers] bridge the gap or even becomes their primary source of income. We must find ways to change the public’s mindset about what ‘opportunity’ means and become part of the national solution.”

A Fresh Point of View

So, while the industry plays a large role on the worldwide stage, it remains largely unnoticed. There exists that need to shift perspective, to show where those lines of reality intersect and converge in relation to economic and social change happening in the world. And where is that? It is at the nexus point, the place where the most extraordinary ideas are born. And what industry lies on that point? Yes, direct selling.


You will find the most innovative ideas that have transformed and transported people from all corners of the world in those small, medium and large companies that comprise the industry.


You will find the most innovative ideas that have transformed and transported people from all corners of the world in those small, medium and large companies that comprise the industry.

Social entrepreneurship is flourishing, which allows independent business owners to earn income while embracing their desire for social responsibility. Direct selling is one of the most generous industries by nature, contributing over $400 million annually to feed malnourished children, provide disaster relief, and support local, national and international organizations and associations.

The industry is full of innovative products and services that uplift, enrich and protect precious resources, enabling entrepreneurs to successfully duplicate repeatable results and share their knowledge and wisdom with others who want to share in the opportunities presented.

Forward-thinking ideas like social and challenge marketing engage a new generation that craves a relationship with the global community while relishing the flexibility and control for their personal and professional lives.
The Eye of the Beholder

In Brunelleschi’s painting, the rules of perspective allowed the viewer to be a participant in the process of perception. The eye of the beholder became the center of the visible world, a world that exists to be experienced by people just discovering their power to experience it.

From a direct selling point of view, the rules of perspective allow the entrepreneur to be a participant in creating their new reality as an independent business owner. That is true opportunity.

Click here to go to the 2013 DSN Global 100


Table of Contents

Intro • Global Outlook • Why the Global 100? • The 2012 DSN Global 100: The Top 10 • The 2012 DSN Global 100: 11-100 •        Topping the Charts • DSN Global 100 • The $100 Million Club • Celebrating the DSN Global 100

Bravo Awards
Bravo Humanitarian Award: Nu Skin • Bravo Growth Award: ViSalus • Bravo Leadership Award: Doug DeVos


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


The Global Outlook for Direct Selling

by J.M. Emmert

The following report on the global outlook for direct selling is supplemented by 2010 statistics from the World Federation of Direct Selling Associations (WFDSA) Global Statistical Report, which was published in November 2011, as well as Direct Selling News’ “Direct Selling’s Billion Dollar Markets,” published in April 2012.

The direct selling industry is alive and thriving. Many of the top direct selling companies in the world enjoyed increases in worldwide sales in 2011, and forecasts for the rest of 2012 and beyond offer promising outlooks.

Avon, the No. 1 direct seller in the world, reported strong performances in several key markets, including Mexico, which reported double-digit growth. In fact, 83 percent of Avon’s consolidated revenue for 2011 was derived from operations outside the United States.

Amway reported that eight of its top nine markets—China, India, Korea, Malaysia, Russia, Thailand, Taiwan and Ukraine—reported strong sales increases in 2011. China, India, Korea, Taiwan, Turkey, Vietnam and the Latin American region all posted double-digit increases in 2011. Only Japan, which dealt with the after-effects of the March 2011 earthquake and tsunami, recorded flat sales.

Herbalife, which has a presence in 79 countries, reported that 80 percent of its 2011 net sales—that is, $2.8 billion—was generated outside the United States. Mexico had a 30.8 percent increase; South and Central America, a 42 percent increase; EMEA (Europe, the Middle East and Africa), a 16.6 percent increase; Asia-Pacific, a 37.3 percent increase, and China a 14.3 percent increase.

USANA, which distributes and sells its product in 15 markets, saw an increase in 2011 net sales in its Asia-Pacific region, which included Hong Kong and the emerging markets China, the Philippines and South Korea. Net sales in Hong Kong increased 29.0 percent; in China, 208.9 percent; in the Philippines, 138.9 percent; and in South Korea, 62.9 percent.

The following provides an overview of direct selling’s four major regions—Asia-Pacific, North America, Latin America and Europe/Africa—with 2010 published statistics and outlooks for 2012–2013.


Global Outlook


Legend:
DSASignifies that a DSA Office has been established in that country or region.


North America

  • Percent of total global sales: 24%
  • Percent of total global sellers: 19%
  • Billion-Dollar Markets: United States and Canada
Latin America

  • Percent of total global sales: 18%
  • Percent of total global sellers: 17%
  • Billion-Dollar Markets: Brazil, Mexico, Argentina, Colombia, Venezuela, Peru
Europe/Africa

  • Percent of total global sales: 16%
  • Percent of total global sellers: 10%
  • Billion-Dollar Markets: Germany, Russia, Italy, France, United Kingdom, South Africa
Asia-Pacific

  • Percent of total global sales: 42%
  • Percent of total global sellers: 53%
  • Billion-Dollar Markets: Japan, China, South Korea, Malaysia, Taiwan, Thailand, Australia

Billion-Dollar Markets
(2010 Sales)

1. U.S.: $28.6B
2. Japan: $22.7B
3. China: $12.5B
4. Brazil: $10.8B
5. South Korea: $8.9B
6. Mexico: $5.6B
7. Germany: $3.8B

8. Russia: $3.3B
9. Italy: $3.2B
10. France: $2.4B
11. Canada: $2.1B
12. Malaysia: $2.1B
13. Taiwan: $1.9B
14. Thailand: $1.9B

15. U.K.: $1.8B
16. Colombia: $1.7B
17. Australia: $1.5B
18. Argentina: $1.4B
19. Venezuela: $1.2B
20. South Africa: $1.1B
21. Peru: $1.05B


Global Direct Sales Breakdown by Product Category


Map

Asia-Pacific

In 2010, the Asia-Pacific region had $55.6 billion in retail sales, with Japan accounting for nearly 40 percent of all sales with $22.7 billion. Other top markets in the region included China ($12.5 billion), South Korea ($8.8 billion), Malaysia ($2.1 billion), and Taiwan and Thailand, each with $1.9 billion.

The Asia-Pacific region accounted for 42 percent of global sales for the direct selling industry in 2010. Three countries—Japan, China and South Korea—accounted for one-third of the $132 billion in global retail sales. According to the WFDSA, the Asia-Pacific salesforce of 47.3 million people represented 54 percent of the total global salesforce of 87.7 million.

Forecasts call for the region to continue to experience significant growth in the coming years, bolstered by the strong presence of established companies, and supported by direct selling companies and DSAs that have worked to create appropriate policies, put controls and ethical standards in place and foster government understanding of the industry. Additionally, a very strong work ethic exists in Asia, with a great entrepreneurial spirit among its people who desire to own their own businesses.

Grant Pace, Co-Founder of Joy Life International, which launched in China in 2009, says, “Asia will continue to grow dramatically, and I expect we will see existing companies grow significantly, even in markets where they have a strong presence now.”

In Australia, the No. 16 market in the world as ranked by DSN, more than 70 direct selling companies offer a wide range of products to Australian consumers. Sixty percent of the companies are small- or medium-sized enterprises and 40 percent are controlled by foreign interests. It is estimated that almost half a million Australians are engaged in the direct selling industry.

“Direct selling has a bright future in Australia, particularly in the personal-care and complementary health-care markets,” says John Holloway, Executive Director of the Direct Selling Association of Australia. “And why shouldn’t it, with its quality products, evolving business models, distributors with the product knowledge, trust and service often lacking in mainstream retail, and its appetite for social media, the natural networking tool? The imagination and commitment that has established our industry will assure its future.”

North America

In 2010, North America accounted for $30.6 billion in retail sales. The United States accounted for $28.6 billion while Canada reported $2.1 billion.

The Unites States retained its position as the largest direct selling market in the world, accounting for 22 percent of global direct sales for 2010.

To the north, Ross Creber, President of the Direct Sellers Association of Canada, says the Canadian market continues to be a very receptive market for direct selling. Creber notes that there exists a high degree of consumer acceptance for direct selling among the Canadian population, even as the channel remains somewhat underpenetrated in terms of percent of retail sales.

“While retail sales of our members in 2010 declined 6 percent, more than CAN$1.3 billion was reported, and the number of independent sales consultants (ISCs) increased by 12 percent,” says Creber. “The industry represents 16 percent of non-store retail sales in Canada, and it continues to make significant economic and social contributions to Canadians and the nation by injecting billions of dollars in sales into the marketplace, contributing millions in taxes that impact education, health services and community growth, and donating millions to charities.”

Latin America

In 2010, Latin America accounted for $23.7 billion in sales. Brazil led the way with $10.8 billion, followed by Mexico ($5.6 billion), Colombia ($1.7 billion), Argentina ($1.4 billion), Venezuela ($1.2 billion) and Peru ($1.05 billion).

Brazil continues to be the dominant market in Latin America, with nearly double its closest competitor, Mexico. According to the consulting firm A. T. Kearney, Brazil is experiencing a growth rate of 7 percent to 8 percent per year, with sales growing four times faster than the 2 percent annual growth rate in the United States. The country has traditionally been a large consumer of personal-care and beauty products, and projections are for that consumption to outpace developed markets, including the United States, in the next five years.

Peru, which joined the DSN billion-dollar markets list this year, experienced significant growth in 2011 despite the country’s economic woes. According to CAPEVEDI (Camara Peruana de Venta Directa), the Peruvian Chamber of Direct Selling, direct selling continued to expand not only in the capital city of Lima, but also in the provinces, which represent 47 percent of independent entrepreneurs. The country, which experienced its strongest growth between 2004 and 2009—with an average rate of 24 percent per year—is now generating income for more than 350,000 independent entrepreneurs, more than 90 percent of whom are women.

“The future perspective in Peru looks favorable because [direct selling] allows thousands of Peruvians to generate their own businesses,” says Cinthia Ramirez Santillana, Administrator of CAPEVEDI. In fact, CAPEVEDI estimates that in 2021 the per capita income will be around US$12,000, growing 42 percent compared to 2011, and thus generating more income that will contribute to reducing poverty in the country.

Europe/Africa

In 2010, the Europe/Africa region accounted for $22 billion in retail sales. Germany led the way with $3.8 billion, followed by Russia ($3.3 billion), Italy ($3.2 billion), France ($2.4 billion) and the UK ($1.8 billion).

Maurits Bruggink, Executive Director of Seldia (the European Direct Selling Association), believes that the direct selling sector will continue to show positive growth throughout Europa in 2012. “Some markets will show more than average growth, notably in Central and Eastern Europe, Russia, Ukraine, the Baltics and Poland. Turkey, which generally challenges the definition BRICS (emerging markets Brazil, Russia, India, China and South Africa), will also continue its performance with double-digit growth figures.”

According to Bruggink, the growth in these emerging markets is explained by four factors: a strong demand for Western (branded) products—in particular, cosmetics and household products; a strong general economic development with increased consumer spending; a spirit for entrepreneurship and creation of personal wealth; and moderate regulation compared to more mature markets.

“Markets in Western and Southern Europe will show single-digit growth, although some markets are affected by the financial and economic crisis,” says Bruggink. “Germany remains the largest direct selling market and will benefit from the general economic upturn.”

While there is also an optimistic outlook for France and the Scandinavian countries, which benefit from increased government recognition and support, the outlook for Italy, the second-largest direct selling market in the European Union, remains uncertain due to the unknown effects of the financial crisis on this heavily indebted, but also heavily industrialized, country.

In the UK, Paul Southworth, Director-General of the UK Direct Selling Association, says the recent resurgence of direct selling can be attributed in part to the voluntary code of practice under which the industry is regulated: that is, capping the entry cost for those signing up for direct selling companies. In addition, the industry is gaining upside from new business models and social media as well as an influx of men into the traditionally female-dominated channel; in 2011, there was 26 percent more men involved in direct selling than in 2010.

South Africa, which landed on the DSN billion-dollar markets list at No. 20, will continue to offer opportunities for the unemployed, which currently sits at nearly 25 percent of the population. According to Richard Clarke, Chairman of the DSA South Africa, “Direct selling is a huge industry around the world, the growth of which is outstripping economic growth in most countries, and has yet to reach its full potential in South Africa. The opportunities are, therefore, enormous.”

Global Industry Research Update

The newly formed research team created by the World Federation of Direct Selling Associations has taken on the very ambitious task of making global direct selling statistics available to the world. The work and output of this group is essential to a better understanding of the direct selling channel globally. Quotes from a few key members of the team reflect the bold new agenda:

“The research team is making solid progress toward achieving our 2012 objectives:

  • Standardizing the process of global statistical data collection, thus bringing a higher level of credibility to the direct selling industry, and enhancing industry government affairs and media relations efforts.
  • Sizing the entire direct selling industry, both member and non-member companies.
  • Improving timing of research results, with an announcement in early June at the WFDSA CEO Council Meeting & Board Meeting.”
    —Judy Jones, Amway/Global Research Sub-committee Chair

    “Credible research is so important! It can be used to guide strategy development at the industry level and for all member companies. The large companies generally have the resources to do their own research. But DSAs globally and the WFDSA provide this amazing research service that can greatly help the medium- and small-sized companies develop their long-term thinking. This, in turn, helps all companies.”
    —JJ LeBlanc, Mary Kay Cosmetics

    “Early figures have shown there has been year-over-year growth. We’re excited about using the data to drive insights and action, including telling the great story of direct selling to audiences globally.”
    —Tamuna Gabilaia, WFDSA Executive Director


Marilynn Hood contributed to this report.

Click here to go to the 2013 DSN Global 100


Table of Contents

Intro • Global Outlook • Why the Global 100? • The 2012 DSN Global 100: The Top 10 • The 2012 DSN Global 100: 11-100 •        Topping the Charts • DSN Global 100 • The $100 Million Club • Celebrating the DSN Global 100

Bravo Awards
Bravo Humanitarian Award: Nu Skin • Bravo Growth Award: ViSalus • Bravo Leadership Award: Doug DeVos


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


Why the Global 100?

The DSN Global 100: Offering Perspective

Since 2004 Direct Selling News has been dedicated to telling stories focused on relating the opportunities direct sellers provide to millions of independent business owners around the world, showcasing the products and services that have helped change the lives of consumers everywhere and profiling the enormous heart of industry members who reach out to assist those in need.

So it seemed only fitting for DSN to further recognize the industry by compiling a comprehensive list, starting in 2010, of the top direct selling companies in the world. It was a huge undertaking—and one not without inherent difficulties, as most direct selling companies are privately owned—but the end result provided more than a mere ranking based on sales achievement.

The DSN Global 100 list offers a unique perspective on the global impact of the industry on economic and social realms. It provides a range of mutual learning not only for industry members but also for researchers, investors and—most important—those seeking opportunities within the industry.

DSN’s reputation for positive and honest reporting is the foundation of its brand, and that is what has led to its relationships with two of the most influential media publications in the country—The Wall Street Journal and USA Today. Those associations are in part derived from what the DSN Global 100 provides: credibility and consumer confidence.

DSN Global 100

About the Ranking

We believe all companies appreciate a fair ranking and this will always be our commitment. For the 2012 DSN Global 100 ranking, we adjusted our approach to support transparency and verify authenticity. We wanted to ensure that all companies adhered to a standard that fully allowed an accurate view of the entire industry. Hence, two major changes were initiated.

The RCF. The Revenue Certification Form, or RCF, was implemented to ensure that the net sales figure submitted by a company was authenticated by the CEO as well as a certifier. In our research, we identified well over 100 companies that would qualify for the ranking; however, with the new standard in place, we applied a ranking only to companies submitting an RCF. There were an additional 40 companies that we identified as achieving in excess of $100 million in 2011; those companies are identified in the $100 Million Club list.

Why did we implement the RCF? We believe any company that performs in a manner warranting identification and recognition as one of the Top 100 companies in the world would proudly share its numbers in a manner deemed fair to all. We also believe that an industry that desires to enhance its image and receive more respect for what it does must reveal itself through its data, and not just its story. In our opinion, the term privately held should not always mean don’t tell.

VAT. The Global 100 data requested was for net sales revenue before commissions and without value-added tax (VAT). The VAT, from our perspective—derived from many discussions with executives from around the world—is certainly an integral part of a salesperson’s life; however, it is not a part of corporate revenue. Since VAT varies, it seemed quite unfair to use it. VAT can be as high as 25 percent, and to add such a number would truly distort the sales performance.

In our attempt to produce a fair ranking, the VAT is deducted, thereby focusing all numbers on the revenue associated directly with products and services sold. Revenue reported from U.S.-based companies does not include sales tax or VAT from global operations.

The 2012 DSN Global 100

The following pages of this issue provide snapshots and detailed profiles of the top direct selling companies in the world, as compiled by DSN, for 2011. We thank all the companies that willingly participated in our survey as well as our dedicated team of researchers who helped us present to you the remarkable achievements of direct sellers around the world.

Why the Global 100


Credibility. The power to inspire belief.

“We are grateful that DSN compiles this important list. Complete transparency in direct selling is important to the growth of our industry as a whole. We ask our sales field to be open, honest and transparent, so it is important that companies lead by example and do the same.”
—Angela Loehr Chrysler, CEO, Team National

“As we build up the stature and credibility of the direct selling industry, it is important that companies present accurate and credible disclosures. By elevating our level of transparency with respect to sales and commission levels, we will enjoy a higher level of credibility and, consequently, be better positioned to demonstrate the great social and economic impact direct selling provides to nations, communities and families.”
—Truman Hunt, CEO, Nu Skin Enterprises

“The DSN Global 100 ranking is an extremely important recognition of the direct selling industry on a global level. It contributes differentiation, reputation, testimony and visibility. It helps the public to evaluate the originality and sincerity of any direct selling company to refrain from fraudulent practice.”
—Tan Hiyin Tiong, General Manager,  DXN Holdings Berhad

Consumer confidence. The ability to instill faith.

“If there is an industry that is truly recession proof, it is direct selling. For us at Eureka Forbes India, it is a moment of pride to be in the DSN Global 100. DSN is extremely important to the direct selling industry worldwide since it is one of the very few sources that keep us connected with the rest and the best in the business.”
—Marzin R. Shroff, CEO, Direct Sales & Senior Vice President, Marketing,  Eureka Forbes Ltd.

“To be recognized in the DSN Global 100 is a huge accolade for Kleeneze, particularly considering it’s a multibillion-dollar industry. It gives us further credibility and an ongoing confirmation that we’re doing the right thing and constantly growing alongside the giants in direct selling. The commercial transparency the DSN Global 100 provides to the world is paramount in any industry, not just for pride and involvement within our member companies, but to show the world we are serious contenders in helping restore confidence in the global economy.”
—Michael Khatkar, Director of Network Development, Kleeneze Ltd.


Click here to go to the 2013 DSN Global 100


Table of Contents

Intro • Global Outlook • Why the Global 100? • The 2012 DSN Global 100: The Top 10 • The 2012 DSN Global 100: 11-100 •        Topping the Charts • DSN Global 100 • The $100 Million Club • Celebrating the DSN Global 100

Bravo Awards
Bravo Humanitarian Award: Nu Skin • Bravo Growth Award: ViSalus • Bravo Leadership Award: Doug DeVos


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


The 2012 DSN Global 100: The Top 10

Net Sales Growth (2009-2011)


SNAPSHOT

    • Total net sales: $63 billion
    • Total Top 10 net sales: $42.6 billion
    • Total salespeople: 39.2 million
    • Countries represented: 16

(Brazil, Canada, China, Germany, India, Japan, Luxembourg, Malaysia, New Zealand, Peru, Russia, South Korea, Switzerland, Thailand, the United Kingdom and the United States)

Companies by region:

  • North America— 49
  • South America— 3
  • Asia-Pacific— 22
  • Europe/Africa— 8

 


 


 


 


 


 


 


 


 


 


 

USD Net Sales (Billions)

2009

2010

2011

3-Yr Period


1

Avon

Avon

USA

$10.3

$10.9

$11.3

5.8%

3.7%

9.7%

2

Amway

Amway

USA

$8.4

$9.2

$10.9

9.5%

18.5%

30%

3

Herbalife

Herbalife

USA

$2.3

$2.7

$3.5

17%

30%

52%

4

Natura

Natura

Brazil

$2.4

$3.0

$3.01

 

25%

.3%

25%

5

Vorwerk

Vorwerk

Germany

Not available

$2.9

$3.0

3%

3%*

6

Mary Kay

Mary Kay

USA

$2.5

$2.5

$2.9

0%

16%

16%

7

Tupperware

Tupperware

USA

$2.1

$2.3

$2.6

9.5%

13%

24%

8

Oriflame

Oriflame

Luxembourg

$1.8

$2.2

$2.1

22%

-5%

17%

9

Nu Skin

Nu Skin

USA

$1.3

$1.5

$1.7

15%

13%

31%

10

Belcorp

Belcorp

Peru

$1.0

$1.3

$1.6

30%

23%

60%

* Denotes two-year net sales growth period

 

Click here to go to the 2013 DSN Global 100


Table of Contents

Intro • Global Outlook • Why the Global 100? • The 2012 DSN Global 100: The Top 10 • The 2012 DSN Global 100: 11-100 •        Topping the Charts • DSN Global 100 • The $100 Million Club • Celebrating the DSN Global 100

Bravo Awards
Bravo Humanitarian Award: Nu Skin • Bravo Growth Award: ViSalus • Bravo Leadership Award: Doug DeVos


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


The 2012 DSN Global 100

Net Sales Growth (2009-2011)

 

Ranking

Company

2011 Net Sales

Country


11

Primerica, Inc.

$1.1B

USA

12

Ignite Inc.

$861M

USA

13

Telecom Plus

$731M

United Kingdom

14

Yanbal International

$720M

Peru

15

Ambit Energy, L.P.

$664M

USA

16

AMOREPACIFIC

$600M

South Korea

17

USANA Health Sciences

$582M

USA

18

New Era

$555M

Japan

19

ACN Inc.

$550M

USA

20

Scentsy

$537M

USA

21

Shaklee Corp.

$515M

USA

22

The Pampered Chef Ltd.

$500M

USA

22

PartyLite (Blyth)

$500M

USA

24

Thirty-One Gifts LLC

$482M

USA

25

Market America Inc.

$462M

USA

26

Menard Japan Cosmetics

$434M

Japan

27

Cosway

$433M

Malaysia

28

DXN Holdings Berhad

$420M

Malaysia

29

For Days

$400M

Japan

30

KK ASSURAN

$370M

Japan

30

Better Way Co. Ltd.

$370M

Japan

32

Nature’s Sunshine Products Inc.

$368M

USA

33

WIV Wein International AG

$365M

Germany

34

Arbonne International LLC

$353M

USA

34

Southwestern

$353M

USA

36

Neways Inc.

$349M

USA

37

Noevir Holdings Co., Ltd.

$345M

Japan

38

Pro-Health

$329M

China

39

LR Health & Beauty Systems

$320M

Germany

40

Eureka Forbes Ltd.

$313M

India

41

Vivint, Inc.

$290M

USA/Canada

42

Charle Corp. Ltd.

$288M

Japan

43

Pure Inc.

$278M

Japan

44

Isagenix International

$262M

USA

45

4Life Research L.C.

$250M

USA

46

PM-International AG

$232M

Germany

47

ViSalus (Blyth)

$231M

USA

48

Team National Inc.

$230M

USA

49

JapanLife Co. Ltd.

$215M

Japan

50

Viridian Energy

$205M

USA

51

Mannatech Inc.

$201M

USA

52

Faberlic

$200M

Russia

53

BearCere’Ju Co. Ltd.

$198M

Japan

54

Take Shape for Life (Medifast)

$185M

USA

55

Apollo

$170M

China

56

Giffarine Skyline Unity Co.

$169M

Thailand

57

Longrich

$167M

China

58

GNLD

$165M

USA

59

Nikken Global Inc.

$149M

USA

60

Enagic USA, Inc.

$147M

USA

61

Sportron

$139M

USA

62

AdvoCare International, LP

$138M

USA

62

Univera

$138M

USA

64

ARSOA HONSHA Corp.

$125M

Japan

65

North American Power

$124M

USA

66

Hindustan Unilever Ltd.

$120M

India

67

Tastefully Simple Inc.

$110M

USA

67

Fortune Hi-Tech Marketing

$110M

USA

69

The Maira Co. Ltd.

$108M

Japan

70

Princess House, Inc.

$102M

USA

70

TriVita

$102M

USA

72

Creative Memories

$100M

USA

73

Organo Gold

$94M

USA

74

World Ventures Holdings LLC

$91M

USA

75

Vemma Nutrition Co.

$90M

USA

76

Kleeneze, Ltd.

$86M

United Kingdom

77

5LINX Enterprises, Inc.

$81M

USA

78

New Image Group

$75M

New Zealand

79

Relìv International Inc.

$74M

USA

79

bHIP Global, Inc.

$74M

USA

81

LifeVantage Corp.

$70M

USA

82

Jeunesse Global

$65M

USA

Click here to go to the 2013 DSN Global 100


Table of Contents

Intro • Global Outlook • Why the Global 100? • The 2011 DSN Global 100: The Top 10 • The 2011 DSN Global 100: 11-100 •        Topping the Charts • DSN Global 100 • The $100 Million Club • Celebrating the DSN Global 100

Bravo Awards
Bravo Humanitarian Award: Nu Skin • Bravo Growth Award: ViSalus • Bravo Leadership Award: Doug DeVos


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


Topping the Charts

(based on certified data submitted for 2011)


Top American Companies

  1. Avon
  2. Amway
  3. Herbalife
  4. Mary Kay
  5. Tupperware

Top European Companies

  1. Vorwerk (Germany)
  2. Oriflame (Luxembourg)
  3. Telecom Plus (United Kingdom)
  4. WIV Wein International (Germany)
  5. LR Health & Beauty Systems (Germany)

Top Asia-Pacific Companies

  1. AMOREPACIFIC (South Korea)
  2. New Era (Japan)
  3. Menard Japan Cosmetics (Japan)
  4. Cosway (Malaysia)
  5. DXN Holdings Berhad (Malaysia)

Top South American Companies

  1. Natura (Brazil)
  2. Belcorp (Peru)
  3. Yanbal International (Peru)

Top Public Companies

  1. Avon
  2. Herbalife
  3. Natura
  4. Tupperware
  5. Oriflame

Top Party Plan Companies

  1. Mary Kay
  2. Tupperware
  3. Belcorp
  4. The Pampered Chef
  5. PartyLite

Top Dollar Growth*

  1. Amway—$1.7 Billion
  2. Herbalife—$800 Million
  3. Avon—$400 Million
  4. Mary Kay—$400 Million
  5. Tupperware—$300 Million
  6. Belcorp—$300 Million
  • Thirty-One Gifts—$382 Million
    Thirty-One’s 2011 revenue qualified the company to appear on this Top Dollar Growth List at the No. 5 position. DSN regrets the oversight.

 

Outstanding Growth Percentage

  • ViSalus—579%
  • Thirty-One Gifts—382%
  • Viridian Energy—300%
  • Organo Gold—200%
  • LifeVantage—200%
  • Ambit Energy—60%
  • AdvoCare International—55%

*Based on comparison of verified 2010 data and certified 2011 data. Companies that did not appear on the 2010 ranking are not included here.


Product Catorgies

Top Beauty/Personal Care Products

  1. Avon
  2. Amway
  3. Natura
  4. Mary Kay
  5. Oriflame

Top Jewelry/Accessories

  1. Avon (Silpada Designs)
  2. Thirty-One Gifts

Top Health & Wellness

  1. Amway (NUTRILITE)
  2. Herbalife
  3. Nu Skin
  4. USANA
  5. Shaklee Corp.

Top Service Companies

  1. Primerica (Financial)
  2. Ignite (Energy)
  3. Telecom Plus (UK) (Telecommunications)
  4. Ambit Energy (Energy)
  5. ACN (Telecommunications)

Click here to go to the 2013 DSN Global 100


Table of Contents

Intro • Global Outlook • Why the Global 100? • The 2012 DSN Global 100: The Top 10 • The 2012 DSN Global 100: 11-100 •        Topping the Charts • DSN Global 100 • The $100 Million Club • Celebrating the DSN Global 100

Bravo Awards
Bravo Humanitarian Award: Nu Skin • Bravo Growth Award: ViSalus • Bravo Leadership Award: Doug DeVos


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


1. Avon Products, Inc.

2011 Net Sales: $11.3 billion
Country: USA

Avon is the founder of modern direct selling and the acknowledged world leader in cosmetics, fragrances and toiletries. Avon’s well-known product lines include Avon Color, Anew, Skin So Soft™, Advance Techniques Hair Care and Avon Naturals and mark™.

2010 Rank: 1
2010 Net Sales: $10.9 billion
Sales Method: Person-to-person
Compensation Structure: Single-level and multi-level
Products: Beauty, fashion jewelry, apparel
Markets: 100
Salespeople: 6.5 million
Employees: 42,000
Headquarters: New York, N.Y.
Executive: Sheri McCoy
Year Founded: 1886
Stock Symbol: AVP—NYSE
www.avon.com

2. Amway

2011 Net Sales: $10.9 billion
Country: USA

Amway offers consumer products and business opportunities in more than 80 countries and territories worldwide through more than 3 million distributors. Top-selling brands for Amway are NUTRILITE vitamin, mineral and dietary supplements, ARTISTRY skin care and color cosmetics, and eSpring water treatment systems. Alticor is the parent company of Amway.

2010 Rank: 2
2010 Net Sales: $9.2 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics, personal care, food and beverage, home care, wellness
Markets: 80
Salespeople: 3 million
Employees: 20,000
Headquarters: Ada, Mich.
Executives: Steve Van Andel and Doug DeVos
Year Founded: 1959
www.amway.com

3. Herbalife Ltd.

2011 Net Sales: $3.5 billion
Country: USA

Herbalife is a global nutrition company that sells nutritional supplements and weight-management and personal-care products. Its products have been developed by scientists, physicians and nutrition experts, including Nobel laureate in medicine Louis Ignarro, Ph.D.

2010 Rank: 5
2010 Net Sales: $2.7 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics and personal care
Markets: 79
Salespeople: 2.7 million
Employees: 5,000
Headquarters: Los Angeles, Calif.
Executive: Michael O. Johnson
Year Founded: 1980
Stock Symbol: HLF—NYSE
www.herbalife.com

4. Natura Cosmeticos SA

2011 Net Sales: $3.01 billion
Country: Brazil

Natura is a direct sales company in the cosmetics, personal hygiene and perfumery sector, committed to the quality of relationships, innovation and constant improvement of its products and services based on a sustainable development model of business.

2010 Rank: 3
2010 Net Sales: $3 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics and personal care
Markets: 7
Salespeople: 1.4 million
Employees: 6,800
Headquarters: São Paulo, Brazil
Executive: Alessandro G. Carlucci
Year Founded: 1969
Stock Symbol: NATU3.SA—São Paolo
www.natura.net

5. Vorwerk & Co. KG

2011 Net Sales: $3.0 billion
Country: Germany

Vorwerk is a 129-year-old, family-owned, German-based company that has been focusing on the direct sales channel since 1930. Products include household appliances as well as high-quality cosmetics. Vorwerk & Co. KG is a global group that includes JAFRA Cosmetics, which reported sales volume of nearly $600 million (USD).

2010 Rank: 4
2010 Net Sales: $2.9 billion
Sales Method: Person-to-person and party plan
Compensation Structure: Multi-level
Products: Cosmetics, household appliances, home care
Markets: 76
Salespeople: 600,000
Employees: 23,000
Headquarters: Wuppertal, Germany
Executives: Walter Muyres and Reiner Strecker
Year Founded: 1883
www.vorwerk.com

6. Mary Kay Inc.

2011 Net Sales: $2.9 billion
Country: USA

Mary Kay was founded in 1963 by Mary Kay Ash with the goal of helping women achieve personal growth and financial success. The company’s skincare and color cosmetics products are sold in more than 35 countries around the world.

2010 Rank: 6
2010 Net Sales: $2.5 billion
Sales Method: Person-to-person
Compensation Structure: Single-level
Products: Cosmetics and personal care
Markets: 35
Salespeople: 2.4 million
Employees: 5,000
Headquarters: Addison, Texas
Executive: David Holl
Year Founded: 1963
www.marykay.com

7. Tupperware Brands Corp.

2011 Net Sales: $2.6 billion
Country: USA

Tupperware is a global direct seller of innovative, premium products across multiple brands and categories through an independent salesforce. Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home as well as beauty and personal-care products.

2010 Rank: 7
2010 Net Sales: $2.3 billion
Sales Method: Person-to-person and party plan
Compensation Structure: Single-level and multi-level
Products: Storage and serving products; beauty, personal care
Markets: 100
Salespeople: 2.6 million
Employees: 13,500
Headquarters: Orlando, Fla.
Executive: Rick Goings
Year Founded: 1946
Stock Symbol: TUP—NYSE
www.tupperware.com

8. Oriflame Cosmetics SA

2011 Net Sales: $2.1 billion
Country: Luxembourg

Oriflame is one of the fastest-growing beauty companies in the world. The company operates in 67 countries and is the market leader in more than half. Although it has no U.S. presence, Oriflame has a presence in Mexico, Central America, South America, Europe, Asia and Africa.

2010 Rank: 8
2010 Net Sales: $2.2 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Beauty
Markets: 67
Salespeople: 3.6 million
Employees: 7,900
Headquarters: Luxembourg, Luxembourg
Executive: Magnus Brännström
Year Founded:1967
Stock Symbol: ORI-SDB.ST—Stockholm
www.oriflame.com

9. Nu Skin Enterprises, Inc.

2011 Net Sales: $1.7 billion
Country: USA

Nu Skin demonstrates its tradition of innovation through its comprehensive anti-aging product portfolio, independent business opportunity and corporate social responsibility initiatives. The company’s scientific leadership in both skin care and nutrition has established it as a premier anti-aging company, evidenced in its unique ageLOC® science that addresses aging at its source.

2010 Rank: 10
2010 Net Sales: $1.5 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics and personal care
Markets: 52
Salespeople: 855,000
Employees: 3,500
Headquarters: Provo, Utah
Executive: Truman Hunt
Year Founded: 1984
Stock Symbol: NUS—NYSE
www.nuskin.com

10. Belcorp

2011 Net Sales: $1.6 billion
Country: Peru

Belcorp boasts a rich heritage and product portfolio. The company helps put women in touch with their ideal of beauty and self-fulfillment by empowering and strengthening women to change their lives. Belcorp’s Beauty Consultants offer beauty and lifestyle products through three distinctive brands: L’bel, Èsika and Cyzone.

2010 Rank: 11
2010 Net Sales: $1.3 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics and personal care
Markets: 16
Salespeople: 938,000
Employees: 8,695
Headquarters: Lima, Peru
Executive: Eduardo Belmont
Year Founded: 1968
www.belcorp.biz

11. Primerica Financial Services Inc.

2011 Net Sales: $1.1 billion
Country: USA

Primerica provides financial products and services, including term life insurance, mutual funds, variable annuities, loans, long-term care insurance and legal services to 6 million clients, primarily middle-class individuals and families.

2010 Rank: 11
2010 Net Sales: $1.3 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Financial services
Markets: 5
Salespeople: 90,000
Employees: 2,000
Headquarters: Duluth, Ga.
Executives: John Addison and Rick Williams
Year Founded: 1977
Stock Symbol: PRI—NYSE
www.primerica.com

12. Ignite Inc.

2011 Net Sales: $861 million
Country: USA

Ignite is the marketing subsidiary of Stream Energy, an energy provider based in Dallas that provides service to hundreds of thousands of customers. The firm has generated more than $4 billion in total revenues since its founding, and has received numerous honors and accolades in its brief history.

2010 Rank: 14
2010 Net Sales: $902 million
Sales Method: Person-to-person
Compensation Structure: Single-level
Products: Electricity and natural gas
Markets: 1
Salespeople: 225,626
Employees: 274
Headquarters: Dallas, Texas
Executive: Rob Snyder
Year Founded: 2004
www.igniteinc.com

13. Telecom Plus

2011 Net Sales: $731 million
Country: United Kingdom

Operating as the Utility Warehouse Discount Club, Telecom Plus provides landline phone, broadband, mobile phone, gas and electricity products and services to over 350,000 customers across the UK, as well as offering club members a range of opportunities to save money on household expenses.

2010 Rank: 17
2010 Net Sales: $600 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Landline phones, broadband, mobile phones, gas, electricity, cashback card
Markets: 1
Salespeople: 35,000
Employees: 550
Headquarters: London, UK
Executive: Andrew Lindsay
Year Founded: 1998
Stock Symbol: TEP—LONDON
www.utilitywarehouse.co.uk

14. Yanbal International

2011 Net Sales: $720 million
Country: Peru

Yanbal International was founded in Peru and sells skin care, cosmetics, personal-care products, fragrances and custom jewelry through its catalogs and beauty consultants.

2010 Rank: 17
2010 Net Sales: $600 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Skin care, personal care, cosmetics, jewelry, fragrances
Markets: 8
Salespeople: 350,000
Employees: 5,300
Headquarters: Lima, Peru
Executive: Janine Belmont Dauelsberg
Year Founded: 1967
www.yanbal.com

15. Ambit Energy, L.P.

2011 Net Sales: $664 million
Country: USA

Ambit Energy is a Dallas-based energy provider of electrical and natural gas services in deregulated markets across the United States, including regions of Texas, Illinois, New York, Pennsylvania, New Jersey and Maryland.

2010 Rank: 31
2010 Net Sales: $415 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Energy
Markets: 1
Salespeople: 140,000
Employees: 445
Headquarters: Dallas, Texas
Executive: Jere W. Thompson, Jr.
Year Founded: 2006
ww2.ambitenergy.com

16. AMOREPACIFIC

2011 Net Sales: $600 million
Country: South Korea

AMOREPACIFIC combines Asian culture and Western technologies in perfect harmony. From its first hit brand ABC Pomade to its unparalleled oriental medicine-based Sulwhasoo and AMOREPACIFIC, a global brand that captures the essence of Asian values, AMOREPACIFIC’s spirit of challenge and creativity has reshaped Asia’s beauty.

2010 Rank: 22
2010 Net Sales: $539 million
Sales Method: Person-to-person
Compensation Structure: Not available
Products: Cosmetics, personal care, wellness, beverage
Markets: 3
Salespeople: Not available
Employees: Not available
Headquarters: Seoul, South Korea
Executive: Kyung-Bae Suh
Year Founded: 1945
Stock Symbol: 090430 (Korea Stock Exchange)
www.amorepacific.com

17. USANA Health Sciences Inc.

2011 Net Sales: $582 million
Country: USA

USANA Health Sciences develops and provides the highest-quality, science-based health products, distributed internationally through network marketing, creating a rewarding, financial opportunity for independent Associates, shareholders and employees.

2010 Rank: 24
2010 Net Sales: $517 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Wellness
Markets: 18
Salespeople: 222,000
Employees: 632
Headquarters: Salt Lake City, Utah
Executive: David Wentz
Year Founded: 1992
Stock Symbol: USNA—NASDAQ
www.usana.com

18. New Era Health Industry Group, Co., Ltd. (Zhong Jian)

2011 Net Sales: $555 million
Country: China

New Era is dedicated to the research and development of health foods, nutrition foods, cosmetics and chemical commodities. The company partners with many research institutions at home and abroad.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Single-level
Products: Cosmetics, healthcare, cleaning
Markets: 14
Salespeople: Not available
Employees: 1,000
Headquarters: Beijing, China
Year Founded: 1995
www.intgz.com/en

19. ACN, Inc.

2011 Net Sales: $550 million
Country: USA

ACN is the world’s largest direct seller of telecommunications and essential services for residential and business customers, offering home phone service, high-speed Internet, wireless, mobile applications, television, home security and automation, computer support and energy.

2010 Rank: 20
2010 Net Sales: $553 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Telecommunications and energy
Markets: 23
Salespeople: 200,000
Employees: 1,300
Headquarters: Concord, N.C.
Executives: Robert Stevanovski, Greg Provenzano, Tony Cupisz and Mike Cupisz
Year Founded: 1993
www.acninc.com

20. Scentsy

2011 Net Sales: $537 million
Country: USA

Scentsy Group is a rapidly growing, international party-plan company dedicated to creating a social shopping experience that gives Consultants and customers variety, value and a level of personalization they can’t find anywhere else. Scentsy Group owns the fragrance brand, Scentsy; the fondue brand, Velata; and the company has plans to launch more brands in the future.

2010 Rank: 33
2010 Net Sales: $382 million
Sales Method: Party plan
Compensation Structure: Multi-level
Products: Cosmetics, personal care, food and beverage, home décor, kitchenware
Markets: 5
Salespeople: 170,000
Employees: 1,000
Headquarters: Meridian, Idaho
Executives: Orville and Heidi Thompson
Year Founded: 2004
www.scentsy.net

21. Shaklee Corp.

2011 Net Sales: $515 million
Country: USA

Shaklee manufactures its products and distributes them through its website and more than 750,000 representatives in North America and Asia. The company is known for its green products and social responsibility efforts.

2010 Rank: 25
2010 Net Sales: $500 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Nutritional supplements, skin care, weight management, green cleaners
Markets: 8
Salespeople: 1.25 million
Employees: 750
Headquarters: Pleasanton, Calif.
Executive: Roger Barnett
Year Founded: 1956
www.shaklee.com

22. The Pampered Chef Ltd.

2011 Net Sales: $500 million
Country: USA

The Pampered Chef sells more than 300 gourmet kitchen tools, cookware, cookbooks and foodstuffs. Founded in 1980, Pampered Chef was acquired by Berkshire Hathaway, the conglomerate controlled by billionaire Warren Buffett, in 2002.

2010 Rank: 25
2010 Net Sales: $500 million
Sales Method: Party plan
Compensation Structure: Multi-level
Products: High-end tools for cooking and entertaining
Markets: 5
Salespeople: 65,000
Employees: 800
Headquarters: Addison, Ill.
Executive: Marla Gottschalk
Year Founded: 1980
Stock Symbol: BRK-A—NYSE
www.pamperedchef.com

22. PartyLite (Blyth)

2011 Net Sales: $500 million
Country: USA

Started by entrepreneur Mabel Baker with her single line of bayberry candles, PartyLite is now the world’s largest direct seller of candles and home fragrance products. The company was acquired by Blyth, Inc. in 1990.

2010 Rank: 21
2010 Net Sales: $545 million
Sales Method: Party plan
Compensation Structure: Multi-level
Products: Candles, candle warmers, flameless fragrance, home accents, personal care, food
Markets: 18
Salespeople: 62,932
Employees: 1,056
Headquarters: Plymouth, Mass.
Executive: Robert B. Goergen Jr.
Year Founded: 1973
Stock Symbol: BTH—NYSE
www.partylite.com

24. Thirty-One Gifts LLC

2011 Net Sales: $482 million
Country: USA

Founded upon the principles of Proverbs 31, Thirty-One Gifts offers handbags, fashion accessories, totes and organization solutions. The company celebrates, encourages and rewards women by offering quality products and an outstanding opportunity to become successful business owners.

2010 Rank: 83
2010 Net Sales: $100 million
Sales Method: Party plan
Compensation Structure: Not available
Products: Clothing and accessories, home care
Markets: 1
Salespeople: 71,400
Employees: 1,891
Headquarters: Johnstown, Ohio
Executive: Cindy Monroe
Year Founded: 2003
www.thirtyonegifts.com

25. Market America Inc.

2011 Net Sales: $462 million
Country: USA

Market America is a product brokerage and Internet marketing company that specializes in one-to-one marketing. The company has generated over $3.8 billion in accumulated retail sales through its international operations in the United States, Canada, Taiwan, Hong Kong, Australia and the Philippines.

2010 Rank: 30
2010 Net Sales: $416 million
Sales Method: Person-to-person
Compensation Structure: Single-level
Products: Health and nutrition, anti-aging, cosmetics, personal care, weight management, financial services, home and garden, pet care, telecommunications, Internet, auto care
Markets: 6
Salespeople: 180,000
Employees: 650
Headquarters: Greensboro, N.C.
Executive: JR Ridinger
Year Founded: 1992
www.marketamerica.com

26. Menard Japan Cosmetics

2011 Net Sales: $434 million
Country: Japan

Menard Cosmetics was started after World War II amidst an increasing need for beauty among women with the desire to assist each individual customer to enhance their beauty and to contribute to the community and society through cosmetics. Menard Cosmetics is one of the biggest cosmetic brands in Japan and plays a remarkable role in the market in terms of their prestigious products and high-quality customer services.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Skin care, makeup, body care, fragrances
Markets: 28
Salespeople: Not available
Employees: Not available
Headquarters: Nagoya, Aichi Prefecture, Japan
Year Founded: 1959
www.menard-cosmetic.com

27. Cosway Corp. Ltd.

2011 Net Sales: $433 million
Country: Malaysia

Cosway is a subsidiary of Berjaya Group, a multinational conglomerate known for diversification. Manufacturers, researchers and suppliers from all over the world work with Cosway to provide an ever-growing range of top-quality products.

2010 Rank: 44
2010 Net Sales: $298 million
Sales Method: Person-to-person
Compensation Structure: Not available
Products: Supplements, skin care, personal care, cosmetics, household products, car care, food and beverage, clothing
Markets: 11
Salespeople: Not available
Employees: 1,500
Headquarters: Kuala Lumpur, Malaysia
Executive: Chuah Choong Heong
Year Founded: 1979
Stock Symbol: 288—HKG
www.cosway.com.my

28. DXN Holdings Berhad

2011 Net Sales: $420 million
Country: Malaysia

DXN cultivates, manufactures and markets health food supplements. Based in Malaysia with worldwide operation, the company is well-known for its Ganoderma business. Its product lines include dietary supplements, food and beverages, personal-care products, skin care and cosmetics, household products and water treatment systems.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Food and beverage, home décor, kitchenware, home care
Markets: 157
Salespeople: 5 million
Employees: 1,150
Headquarters: Kedah, Malaysia
Executive: Dato´ Dr. Lim Siow Jin
Year Founded: 1995
www.dxn2u.com

29. For Days Co., Ltd.

2011 Net Sales: $400 million
Country: Japan

For Days sells nutritional products that focus on beneficial nucleic acids through scientific research and development and testing as well as cosmetics.

2010 Rank: 36
2010 Net Sales: $350 million
Sales Method: Person-to-person
Compensation Structure: Not available
Products: Cosmetics, food and beverage, wellness
Markets: 1
Salespeople: 260,000
Employees: 203
Headquarters: Tokyo, Japan
Executive: Keiko Wada
Year Founded: 1997
www.fordaysusa.com

30 . KK ASSURAN

2011 Net Sales: $370 million
Country: Japan

Selling exclusively in Japan, KK ASSURAN’s products address skincare issues for the Japanese population. The company relies on traditional person-to-person contact for sales.

2010 Rank: 40
2010 Net Sales: $333 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Skin care
Markets: 1
Salespeople: 500,000
Employees: 410
Headquarters: Fukuoka, Japan
Year Founded: 1994

30. Better Way Co., Ltd.

2011 Net Sales: $370 million
Country: Thailand

Better Way was founded by Dr. Amornthep Deerojanawong and Boonyakiat Chokeatana. The company launched its Mistine brand in 1991 and since 1997 has been the leader in the Thai direct selling cosmetics market.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics
Markets: Not available
Salespeople: 860,000
Employees: Not available
Headquarters: Bangkok, Thailand
Executive: Danai Derojanawong
Year Founded: 1988
www.mistine.co.th

32. Nature’s Sunshine Products, Inc.

2011 Net Sales: $368 million
Country: USA

When Nature’s Sunshine began almost 40 years ago, it offered encapsulated herbs to customers. Today, the company’s product line includes a large selection of herbal, vitamin, mineral and nutritional supplements as well as skincare products.

2010 Rank: 37
2010 Net Sales: $349 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Skin care, personal care, cosmetics, wellness
Markets: 45
Salespeople: 668,000
Employees: 1,003
Headquarters: Provo, Utah
Executive: Michael Dean
Year Founded: 1972
Stock Symbol: NATR—NASDAQ
www.naturessunshine.com

33. WIV Wein International AG

2011 Net Sales: $365 million
Country: Germany

WIV Wein is a direct seller of wine. The company provides at-home wine tastings for customers and has its own estates/cellars and forms partnerships with top-quality wineries. Its largest markets are Germany, France, Great Britain, Japan and Italy.

2010 Rank: 32
2010 Net Sales: $385 million
Sales Method: Person-to-person
Compensation Structure: Not available
Products: Wines
Markets: 23
Salespeople: 4,000
Employees: 1,511
Headquarters: Burg Layen, Germany
Executives: Andreas Pieroth, Dr. Johannes Pieroth, David Samuel
Year Founded: 1960
www.wiv-ag.com

34. Arbonne International, LLC

2011 Net Sales: $353 million
Country: USA

At Arbonne, beauty begins with premium botanical ingredients, an integrative approach to beauty and an unwavering commitment to pure, safe and beneficial products. Arbonne creates personal-care and wellness products that preserve and enhance the skin, body and mind.

2010 Rank: 35
2010 Net Sales: $357 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Anti-aging, skin care, body care, cosmetics, health and wellness
Markets: 4
Salespeople: 550,298+
Employees: 595
Headquarters: Irvine, Calif.
Executive: Kay Napier
Year Founded: 1980
www.arbonne.com

34. Southwestern/Great American, Inc.

2011 Net Sales: $353 million
Country: USA

Southwestern is a direct seller and publisher with 12 divisions including the core company, Southwestern Advantage, which helps college students run their own business during their summer break to offset their educational expenses.

2010 Rank: 39
2010 Net Sales: $337 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Family-oriented educational reference books and software
Markets: 3
Salespeople: 2,800
Employees: 1,199
Headquarters: Nashville, Tenn.
Executive: Henry Bedford
Year Founded: 1855
www.southwestern.com

36. Neways, Inc.

2011 Net Sales: $349 million
Country: USA

Neways designs, manufactures and distributes approximately 300 personal-care items, including cosmetics and hair-care products, aromatherapy items and nutritional supplements.

2010 Rank: 47
2010 Net Sales: $250 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics, personal care, home care, wellness
Markets: 37
Salespeople: 300,000
Employees: 700
Headquarters: Springville, Utah
Executive: Scott St. Clair
Year Founded: 1987
www.neways.com

37. Noevir Holdings Co., Ltd.

2011 Net Sales: $345 million
Country: Japan

Noevir develops, produces and sells a versatile collection of products under well-regarded brand names, including Noevir high-performance functional counseling skincare products and hypoallergenic cosmetics as well as health food.

2010 Rank: 38
2010 Net Sales: $345 million
Sales Method: Person-to-person
Compensation Structure: Single-level
Products: Skin care, body care, nutritional supplements, cosmetics
Markets: 8
Salespeople: 180,000
Employees: 1,017
Headquarters: Tokyo, Japan
Executive: Takashi Okura
Year Founded: 1964
Stock Symbol: 4928—TYO
www.noevirholdings.co.jp

38. Pro-Health (China) Co., Ltd (Bao Jian)

2011 Net Sales: $329 million
Country: China

Pro-Health is a Hong Kong invested company mainly engaged in the research and development, production and marketing of health-care and wellness products.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Health food, skin care
Markets: Not available
Salespeople: 30,000
Employees: 500
Headquarters: Beijing, China
Executive: Wu Xuecheng
Year Founded: 2007
www.baojian.com

39. LR Health & Beauty Systems

2011 Net Sales: $320 million
Country: Germany

LR Health & Beauty Systems attributes its success to four distinctive key factors: top products with German quality standards, portfolio of celebrities, unique marketing plan and car concept.

2010 Rank: 41
2010 Net Sales: $307 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics, personal care, supplements, jewelry
Markets: 32
Salespeople: 300,000
Employees: 940
Headquarters: Nordrhein-Westfalen, Germany
Executive: Dr. Jens M. Abend
Year Founded: 1985
www.lrworld.com

40. Eureka Forbes Limited

2011 Net Sales: $313 million
Country: India

Eureka Forbes Limited, a pioneer and leader in vacuum cleaners, water purification solutions, air purification systems and electronic security solutions, is India’s leading health and hygiene company. For over 30 years it has successfully created happy, healthy, safe and pollution-free environments based on trust and lasting relationships with over 10 million customers. Eureka Forbes is part of Shapoorji Pallonji Group.

2010 Rank: 45
2010 Net Sales: $300 million
Sales Method: Person-to-person
Compensation Structure: 60% fixed / 40% variable
Products: Vacuum cleaners, water purifiers, air purifiers, electronic security solutions
Markets: 36
Salespeople: 7,500
Employees: 10,000
Headquarters: Mumbai, India
Executive: Suresh L. Goklaney
Year Founded: 1982
www.eurekaforbes.com

41. Vivint, Inc.

2011 Net Sales: $290 million
Country: USA

Vivint is one of the largest home automation companies in North America. Operating from offices throughout the United States and Canada, the company retains more than 5,000 employees and services close to 570,000 customers.

2010 Rank: 49
2010 Net Sales: $245 million
Sales Method: Person-to-person
Compensation Structure: Not available
Products: Home automation, energy management, residential security
Markets: Not available
Salespeople: Not available
Employees: 6,250
Headquarters: Provo, Utah
Executive: Todd Pedersen
Year Founded: 1999
www.vivint.com

42. Charle Corp. Ltd.

2011 Net Sales: $288 million
Country: Japan

Charle Corp. Ltd. is a Japan-based company principally engaged in the wholesale of women’s undergarments. The company sells its products through distributors in a home party setting.

2010 Rank: 50
2010 Net Sales: $240 million
Sales Method: Party plan
Compensation Structure: Not available
Products: Women’s lingerie, cosmetics
Markets: 35
Salespeople: Not available
Employees: 367
Headquarters: Hyogo, Japan
Year Founded: 1993
Stock Symbol: 288—HKG
www.charle.co.jp

43. Pure, Inc.

2011 Net Sales: $278 million
Country: Japan

Pure is a 24-year-old company that offers a variety of products, including energy drinks, soups, vinegars, and food as well as household items and health equipment.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Not available
Products: Health food supplements, food and beverage, cosmetics, household goods, wellness
Markets: 1
Salespeople: Not available
Employees: 1,488
Headquarters: Nagoya, Japan
Executive: Sadao Suzuki
Year Founded: 1988
www.kk-pure.co.jp

44. Isagenix International

2011 Net Sales: $262 million
Country: USA

Isagenix earned a spot on Inc. magazine’s list of fastest-growing companies in the United States for three straight years.

2010 Rank: 46
2010 Net Sales: $256 million
Sales Method: Person-to-person
Compensation Structure: Binary multi-level
Products: Nutritional cleansing and replenishing products, skin care, anti-aging, weight management
Markets: 8
Salespeople: 25,000
Employees: 300
Headquarters: Chandler, Ariz.
Executive: Jim Coover
Year Founded: 2002
www.isagenix.com

45. 4Life Research L.C.

2011 Net Sales: $250 million
Country: USA

Launched by Founder and Co-Founder David & Bianca Lisonbee, 4Life® has offices on five continents to serve a global network of independent distributors through science, success and service. Since 1998, the company has grown significantly every year. Foundation 4Life conducts charitable work in more than 20 countries.

2010 Rank: 62
2010 Net Sales: $200 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Immune support, general wellness
Markets: 22
Salespeople: Not available
Employees: 600
Headquarters: Salt Lake City, Utah
Executive: Steve Tew
Year Founded: 1998
www.4life.com

46. PM-International AG

2011 Net Sales: $232 million
Country: Germany

PM-International’s core focus on efficient nutrition transport has been rewarded by it being named one of Germany’s Top 100 innovative companies 10 times in a row. Its commitment to ethics has led to an extremely high reputation both in the industry and among the general public.

2010 Rank: 57
2010 Net Sales: $217 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Premium nutritional supplements for health/fitness/wellness, skin care, weight management, functional food, novel food, water purification
Markets: 35
Salespeople: 150,000
Employees: 151
Headquarters: Speyer, Rheinland-Pfalz, Germany
Executive: Rolf Sorg
Year Founded: 1993
www.pm-international.com

47. ViSalus (Blyth)

2011 Net Sales: $231 million
Country: USA

ViSalus is the company that markets the Body by Vi Challenge, the No. 1 personal weight-loss and fitness platform in North America.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Wellness
Markets: 2
Salespeople: Not Available
Employees: 300
Headquarters: Troy, Mich.
Executives: Ryan Blair, Nick Sarnicola, Blake Mallen
Year Founded: 2005
www.visalus.com

48. Team National, Inc.

2011 Net Sales: $230 million
Country: USA

Team National provides membership savings with a wide variety of products and services in over 20 different industries. Its offerings include home and office furniture, custom jewelry, supplements and business solutions.

2010 Rank: 59
2010 Net Sales: $210 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Home care, jewelry, supplements
Markets: 1
Salespeople: 308,000
Employees: 48
Headquarters: Davie, Fla.
Executive: Angela Loehr Chrysler
Year Founded: 1997
www.bign.com

49. JapanLife Co. Ltd.

2011 Net Sales: $215 million
Country: Japan

JapanLife Co. is part of the Matrix World Division Group. Its products focus on the relief of stress, anxiety and aging concerns and include magnetic therapy devices in the home as well as beauty-care products and dietary supplements.

2010 Rank: 73
2010 Net Sales: $144 million
Sales Method: Not available
Compensation Structure: Not available
Products: Magnetic therapy devices, skin care, cosmetics, dietary supplements
Markets: Not available
Salespeople: 300
Employees: 467
Headquarters: Tokyo, Japan
Year Founded: 1975
www.japanlife-net.co.jp

50. Viridian Energy

2011 Net Sales: $205 million
Country: USA

Viridian Energy was founded in 2009 in the Northeast and continues to expand rapidly. Viridian offers its associates the opportunity to build a sustainable business and make an impact on the environment simply by helping customers choose affordable green energy for their home or business.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Energy
Markets: 1
Salespeople: 20,145
Employees: 65
Headquarters: Norwalk, Conn.
Executive: Michael Fallquist
Year Founded: 2009
www.viridian.com

 

Click here to go to the 2013 DSN Global 100


Table of Contents

Intro • Global Outlook • Why the Global 100? • The 2012 DSN Global 100: The Top 10 • The 2012 DSN Global 100: 11-100 •        Topping the Charts • DSN Global 100 • The $100 Million Club • Celebrating the DSN Global 100

Bravo Awards
Bravo Humanitarian Award: Nu Skin • Bravo Growth Award: ViSalus • Bravo Leadership Award: Doug DeVos


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


51. Mannatech, Inc.

2011 Net Sales: $201 million
Country: USA

Mannatech is a provider of nutritional supplements and skincare products based on Real Food Technology® solutions. Its flagship product is Ambrotose® complex.

2010 Rank: 55
2010 Net Sales: $228 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Dietary supplements, weight and fitness, skin care
Markets: 22
Salespeople: 370,000
Employees: 392
Headquarters: Coppell, Texas
Executive: Robert Sinnott
Year Founded: 1994
Stock Symbol: MTEX—NASDAQ
www.mannatech.com

52. Faberlic

2011 Net Sales: $200 million
Country: Russia

Faberlic is Russia’s largest homegrown direct seller, with a wide product range and operations primarily in the former Soviet Union and Eastern Europe. The company has more than 350 products and is particularly strong in skin care.

2010 Rank: 53
2010 Net Sales: $236 million
Sales Method: Not available
Compensation Structure: Not available
Products: Cosmetics
Markets: 18
Salespeople: 700,000
Employees: Not available
Headquarters: Moscow, Russia
Executives: Alexy Nechaev and Alexander Davankov
Year Founded: 1997
www.faberlic.ru

53. BearCere’Ju Co. Ltd.

2011 Net Sales: $198 million
Country: Japan

Also known as Berusere – ju, this company uses herbals and aromatherapy along with cellular technology to rejuvenate and beautify without artificial or engineered additives.

2010 Rank: 69
2010 Net Sales: $160 million
Sales Method: Not available
Compensation Structure: Not available
Products: Cosmetics, personal care, health and wellness
Markets: 3
Salespeople: 250,000
Employees: Not available
Headquarters: Tokyo, Japan
Year Founded: 1992
www.bearcereju.co.jp

54. Take Shape for Life (Medifast)

2011 Net Sales: $185 million
Country: USA

Take Shape for Life is a healthy-lifestyle company that aims to help its customers achieve healthier weights, minds and finances. It is a wholly owned subsidiary of publicly traded Medifast Inc.

2010 Rank: 69
2010 Net Sales: $160 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Weight-loss coaching and supporting products
Markets: 1
Salespeople: Not available
Employees: Not available
Headquarters: Owings Mills, Md.
Executive: Michael McDevitt
Year Founded: 1980
Stock Symbol: MED—NYSE
www.tsfl.com

55. Apollo (Taiyang Shen)

2011 Net Sales: $170 million
Country: China

Apollo, known as Taiyang Shen, is a health-drink company located in China’s Guangdong province.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Single-level
Products: Nutritional drinks
Markets: 1
Salespeople: Not available
Employees: Not available
Headquarters: Guangdong Province, China
Year Founded: 1988

56. Giffarine Skyline Unity Co.

2011 Net Sales: $169 million
Country: Thailand

Giffarine, begun in 1966 by a team of Thai medical doctors and pharmacists, offers a wide range of cosmetics, body treatment products, household utensils, diet supplements and food products.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics, skin care, food and beverage, supplements, household products
Markets: 33
Salespeople: Not available
Employees: Not available
Headquarters: Bangkok, Thailand
Year Founded: 1996
www.giffarinethailand.com

57. Longrich (Jiangsu Longliqi)

2011 Net Sales: $167 million
Country: China

Longrich is a well-known mainland China manufacturer of cosmetics, personal-care products and health and wellness products.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Multi-level and single-level
Products: Beauty, cosmetics, wellness
Markets: 2
Salespeople: Not available
Employees: 200
Headquarters: Changshu, China
Year Founded: 1985
www.longliqi.com

58. GNLD (Golden Neo-Life Diamite International)

2011 Net Sales: $165 million
Country: USA

GNLD was founded in 1958 to supply products that bridge the gap between the food supply and the body’s nutritional requirements.

2010 Rank: 66
2010 Net Sales: $175 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Wellness, home care, personal care, skin care, water treatment systems
Markets: 50
Salespeople: 240,000
Employees: 1,600
Headquarters: Fremont, Calif.
Executive: Roget Uys
Year Founded: 1958
www.gnld.com

59. Nikken Global Inc.

2011 Net Sales: $149 million
Country: USA

Nikken sells magnetic therapeutic mattress toppers, pillows, sleep masks, support wraps, shoe inserts, air and water filtration systems, and jewelry through its global distribution network.

2010 Rank: 59
2010 Net Sales: $210 million
Sales Method: Stair-step breakaway
Compensation Structure: Multi-level
Products: Organic nutrition/skin care, environmental, rest/rejuvenation
Markets: 35
Salespeople: 212,000
Employees: 478
Headquarters: Irvine, Calif.
Executive: Kurt H. Fulle
Year Founded: 1975
www.nikken.com

60. Enagic USA, Inc.

2011 Net Sales: $147 million
Country: USA

Enagic has been the leading manufacturer of alkaline ionizers and water filtration machines. Kangen Water® machines are used in hundreds of thousands of homes worldwide to transform tap water into pure, healthy alkaline drinking water.

2010 Rank: 76
2010 Net Sales: $129 million
Sales Method: Person-to-person
Compensation Structure: Not available
Products: Alkaline water filtration systems
Markets: Not available
Salespeople: 100,000
Employees: 100
Headquarters: Torrance, Calif.
Executive: Hironari Ohshiro
Year Founded: 2003
www.enagic.com

61. Sportron

2011 Net Sales: $139 million
Country: USA

Sportron was founded to help consumers manage their health. Sportron uses FoodMatrix nutrients and herbs to support the body’s needs.

2010 Rank: 72
2010 Net Sales: $148 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Nutritional and dietary supplements
Markets: 40
Salespeople: 300,000
Employees: 140
Headquarters: Melissa, Texas
Executive: Keith J. Harding
Year Founded: 1992
www.sportron.com

62. AdvoCare International, LP

2011 Net Sales: $138 million
Country: USA

AdvoCare is a premier health and wellness company offering world-class energy, weight-loss, nutrition and sports performance products.

2010 Rank: 91
2010 Net Sales: $89 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Wellness
Markets: 1
Salespeople: 145,700
Employees: 105
Headquarters: Carrollton, Texas
Executive: Richard Wright
Year Founded: 1992
www.advocare.com

62. Univera

2011 Net Sales: $138 million
Country: USA

Univera is the premier natural products company offering vitality, prosperity and purpose to people around the world.

2010 Rank: 68
2010 Net Sales: $164 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics, personal care, wellness
Markets: 3
Salespeople: 45,000
Employees: 160
Headquarters: Korea
Executive: Bill Lee
Year Founded: 1976
us.univera.com

64. ARSOA HONSHA Corp.

2011 Net Sales: $125 million
Country: Japan

ARSOA HONSHA products are developed around the company’s own philosophy and three pillars of good health: heart, body and skin. Natural ingredients are a prime focus.

2010 Rank: 80
2010 Net Sales: $111 million
Sales Method: Not available
Compensation Structure: Not available
Products: Cosmetics, nutritional supplements
Markets: 3
Salespeople: Not available
Employees: 290
Headquarters: Yamanashi, Japan
Year Founded: 1998
www.arsoa.co.jp

65. North American Power

2011 Net Sales: $124 million
Country: USA

North American Power is one of the nation’s fastest-growing energy suppliers, recently earning a spot on FORBES list of America’s Most Promising Companies. The company also has a commitment to philanthropy, sustainability and economic independence.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Energy
Markets: 1
Salespeople: 11,587
Employees: 50
Headquarters: South Norwalk, Conn.
Executive: Kerry Breitbart
Year Founded: 2009
www.napower.com

66. Hindustan Unilever Ltd.

2011 Net Sales: $120 million
Country: India

Hindustan Unilever Limited, which is owned by the British-Dutch company Unilever, is the largest consumer goods company in India, with its top seller Aviance beauty solutions.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Not available
Products: Food and beverage, personal care, cleaning agents
Markets: 1
Salespeople: Not available
Employees: 16,500
Headquarters: Mumbai, India
Executive: Nitin Paranjpe
Year Founded: 1932
Stock Symbol: 500696–BSE
www.hul.co.in

67. Tastefully Simple Inc.

2011 Net Sales: $110 million
Country: USA

Tastefully Simple offers “the food you love, the time you deserve” with over 60 easy-to-prepare foods and gifts. Products are available primarily at home taste-testing parties through consultants who offer samples, recipes, entertaining tips and more.

2010 Rank: 77
2010 Net Sales: $125 million
Sales Method: Party plan
Compensation Structure: Multi-level
Products: Specialty food items and gifts
Markets: 1
Salespeople: 28,000
Employees: 343
Headquarters: Alexandria, Minn.
Executive: Jill Blashack Strahan
Year Founded: 1995
www.tastefullysimple.com

67. Fortune Hi-Tech Marketing, Inc. (FHTM)

2011 Net Sales: $110 million
Country: USA

FHTM is a privately held direct selling company offering consumers a diverse lineup of products and services, including energy, satellite TV, nutritionals, personal-care items, contact lenses, security services, wireless phone service and more through a network of independent representatives.

2010 Rank: 92
2010 Net Sales: $82 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Health and beauty, services, entertainment and communications
Markets: 3
Salespeople: 93,000
Employees: 80
Headquarters: Lexington, Ky.
Executive: Paul Orberson
Year Founded: 2001
www.fhtm.net

69. The Maira Co. Ltd.

2011 Net Sales: $108 million
Country: Japan

The Maira Co. emphasizes herbs and non-surgical rejuvenation. Japanese consumers can find the company’s beauty, bath and health products through independent distributors.

2010 Rank: 88
2010 Net Sales: $96 million
Sales Method: Not available
Compensation Structure: Not available
Products: Cosmetics, skin care, bath equipment, dietary supplements
Markets: Not available
Salespeople: Not available
Employees: Not available
Headquarters: Tokyo, Japan
Year Founded: 1991
www.the-maira.co.jp

70. Princess House, Inc.

2011 Net Sales: $102 million
Country: USA

Princess House is a premier direct selling company dedicated to empowering people to start flexible, home-based businesses through the sale of superior-quality cookware products.

2010 Rank: 89
2010 Net Sales: $94 million
Sales Method: Party Plan
Compensation Structure: Multi-level
Products: Home décor, kitchenware, appliances
Markets: 1
Salespeople: 25,145
Employees: 225
Headquarters: Taunton, Mass.
Executive: Connie Tang
Year Founded: 1963
www.princesshouse.com

70. TriVita

2011 Net Sales: $102 million
Country: USA

TriVita offers a wide range of high-quality nutritional and dietary supplements made with the most premium natural ingredients. Its proprietary formulas include products for weight loss, healthy aging and targeted nutritional solutions.

2010 Rank: 92
2010 Net Sales: $80 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Wellness and dietary supplements
Markets: 12
Salespeople: Not available
Employees: 200
Headquarters: Scottsdale, Ariz.
Executive: Michael Ellison
Year Founded: 1999
www.trivita.com

72. Creative Memories

2011 Net Sales: $100 million
Country: USA

Creative Memories is part of The Antioch Company, specializing in making and selling products for scrapbooking and photo needs, including photo albums, decorative embellishments, custom display frames and digital scrapbooking supplies.

2010 Rank: 79
2010 Net Sales: $113 million
Sales Method: Party plan
Compensation Structure: Multi-level
Products: Photo albums, scrapbooking materials, digital photo books, photo-organization software
Markets: 7
Salespeople: 29,000
Employees: 364
Headquarters: St. Cloud, Minn.
Executive: Chris Veit
Year Founded: 1987
www.creativememories.com

73. Organo Gold International

2011 Net Sales: $94 million
Country: Canada

Organo Gold is a direct selling company with the focus of improving people’s health and wealth and bringing more balance into their lives through the power of 100 percent Organic Ganoderma.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Food and beverage, personal care, cosmetics, wellness
Markets: 15
Salespeople: 100,000
Employees: 70
Headquarters: Richmond, British Columbia
Executive: Bernardo Chua
Year Founded: 2008
www.organogold.com

74. WorldVentures Holdings LLC

2011 Net Sales: $91 million
Country: USA

WorldVentures markets travel-related products through the Internet and personal contact. In 2009, WorldVentures expanded into several global markets.

2010 Rank: 90
2010 Net Sales: $90 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Travel packages
Markets: Not available
Salespeople: Not available
Employees: 100
Headquarters: Plano, Texas
Executives: Mike Azcue and Wayne Nugent
Year Founded: 2005
www.worldventures.com

75. Vemma Nutrition Co.

2011 Net Sales: $90 million
Country: USA

Vemma specializes in ultra-premium liquid nutrition. The company markets nutritional supplements that are clinically studied and designed to provide unique delivery methods for today’s active families and athletes.

2010 Rank: 89
2010 Net Sales: $92 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Wellness, food and beverage
Markets: 50
Salespeople: 246,800
Employees: 168
Headquarters: Scottsdale, Ariz.
Executive: BK Boreyko
Year Founded: 2004
www.vemma.com

76. Kleeneze, Ltd.

2011 Net Sales: $86 million
Country: United Kingdom

Kleeneze was established in 1923 and is the UK’s original home shopping company. The company’s products are sold through the highly successful catalogues that are distributed by independent Kleeneze distributors in the UK, Ireland, The Netherlands and Germany.

2010 Rank: 82
2010 Net Sales: $102 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Household, health care, beauty
Markets: 4
Salespeople: 11,872
Employees: 225
Headquarters: Accrington, Lancashire, UK
Executive: Jamie Stewart
Year Founded: 1923
www.kleeneze.co.uk

77. 5LINX Enterprises Inc.

2011 Net Sales: $81 million
Country: USA

5LINX offers essential products and services people use every day. The company distributes its products and services through a network of dedicated independent marketing representatives who provide customers with the latest in telecommunications products, energy (gas and electric) and many other products and services for the home and business.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Telecommunications, energy, text marketing
Markets: 2
Salespeople: 85,000
Employees: 275
Headquarters: Rochester, N.Y.
Executive: Craig Jerabeck
Year Founded: 2001
www.5linx.com

78. New Image Group

2011 Net Sales: $75 million
Country: New Zealand

New Image offers an innovative and highly effective business model that takes colostrum and turns it into health giving products that are sold throughout Asia, Australia and New Zealand.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Colostrum-based nutrition, beauty, home care, environmental, weight loss
Markets: 11
Salespeople: 100,000
Employees: 140
Headquarters: Auckland, New Zealand
Executive: Graeme Clegg
Year Founded: 1984
Stock Symbol: NEW—NZX
www.newimagegroup.co.nz

79. Relìv International Inc.

2011 Net Sales: $74 million
Country: USA

Relìv International makes nutritional supplements that address essential nutrition, weight-loss, athletic performance, digestive health, women’s health, anti-aging, energy and mental focus. The company also markets premium personal-care products through its Relivables line.

2010 Rank: 92
2010 Net Sales: $80 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Health and wellness
Markets: 15
Salespeople: 60,740
Employees: 240
Headquarters: Chesterfield, Mo.
Executive: Robert L. Montgomery
Year Founded: 1988
Stock Symbol: RELV—NASDAQ
www.reliv.com

79. bHIP Global, Inc.

2011 Net Sales: $74 million
Country: USA

bHIP Global is an international network marketing and distribution company that offers its proprietary product, AIO Premium Cellular Health, as well as other products containing the revolutionary patented ingredient AC-11®.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics, personal care, food and beverage
Markets: 33
Salespeople: 78,276
Employees: 86
Headquarters: Melissa, Texas
Executive: Terry LaCore
Year Founded: 2007
www.bhipglobal.com

81. LifeVantage Corp.

2011 Net Sales: $70 million
Country: USA

LifeVantage is a leader in the fight against oxidative stress by focusing primarily on Nrf2 activation. LifeVantage offers science-based, research-backed products and a business opportunity and is committed to bringing a better quality of life to the world.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Wellness
Markets: 3
Salespeople: Not available
Employees: 130
Headquarters: Salt Lake City, Utah
Executive: Douglas C. Robinson
Year Founded: 2003
Stock Symbol: LFVN.OB—OTC BB
www.lifevantage.com

82. Jeunesse Global

2011 Net Sales: $65 million
Country: USA

Jeunesse Global enhances the health and vitality of people around the world by offering cutting-edge products and financial stability through a “new economy” business platform.

2010 Rank: N/A
2010 Net Sales: N/A
Sales Method: Person-to-person
Compensation Structure: Single-level
Products: Cosmetics, personal care
Markets: 80
Salespeople: 92,000
Employees: 125
Headquarters: Altamonte Springs, Fla.
Executive: Wendy Lewis
Year Founded: 2009
www.jeunesseglobal.com


Note: 2010 ranking and net sales numbers are not provided for companies that were not profiled in last year’s Global 100 list.

Click here to go to the 2013 DSN Global 100


Table of Contents

Intro • Global Outlook • Why the Global 100? • The 2012 DSN Global 100: The Top 10 • The 2012 DSN Global 100: 11-100 •        Topping the Charts • DSN Global 100 • The $100 Million Club • Celebrating the DSN Global 100

Bravo Awards
Bravo Humanitarian Award: Nu Skin • Bravo Growth Award: ViSalus • Bravo Leadership Award: Doug DeVos


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


The $100M Club

Verifiable data was not available for the following direct selling companies, which Direct Selling News believes achieved in excess of $100 million in global wholesale revenue for 2011.


Aerus Holdings Inc. LLC

USA

Lux International

Switzerland

Ardyss International

USA

Melaleuca Inc.

USA

Bofrost

Germany

Miki Corp.

Japan

Cambridge Weight Plan

United Kingdom

MonaVie LLC

USA

CUTCO Cutlery (Vector Marketing)

USA

Naturally Plus Co. Ltd.

Japan

Deesse

Switzerland

NSA Juice Plus+

USA

Diana Co. Ltd.

Japan

Omnilife

Mexico

Eismann

Germany

Pola Inc.

Japan

ERINA Co., Inc.

Japan

Premier Designs

USA

Forever Living Products

USA

Stampin’ Up!

USA

Four Leaf Japan Co./Forifu Japan

Japan

Stella & Dot

USA

Infinitus

China

Sunrider

USA

Jewels by Park Lane

USA

SwissJust

Switzerland

Kirby Company

USA

Tahitian Noni International

USA

K-Link

Malaysia

Tiens/Tianshi

China

Koyo-sha

Japan

Unicity Networks International

USA

LegalShield

USA

Winalite

China

LG Household & Health Care

South Korea

XANGO

USA

lia sophia

USA

Yakult Honsha Co. Ltd.

Japan

Longaberger Co.

USA

Yofoto

China

 

Click here to go to the 2013 DSN Global 100


Table of Contents

Intro • Global Outlook • Why the Global 100? • The 2012 DSN Global 100: The Top 10 • The 2012 DSN Global 100: 11-100 •        Topping the Charts • DSN Global 100 • The $100 Million Club • Celebrating the DSN Global 100

Bravo Awards
Bravo Humanitarian Award: Nu Skin • Bravo Growth Award: ViSalus • Bravo Leadership Award: Doug DeVos


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


Celebrating the DSN Global 100

On April 16, Direct Selling News held its third annual DSN Global 100 Celebration to recognize the top direct selling companies in the world. The event, held at the Hyatt Regency in Dallas, was hosted by DSN Publisher and Editor in Chief John Fleming with Master of Ceremonies Brian Connolly, DSA Hall of Famer and former Executive Vice President of Avon Products Inc. as well as former President of Avon North America.

More than 350 executives from national and international direct selling companies attended, including those representing so many of the more than 70 product and service categories—everything from health and beauty items, legal and financial services to energy, cookware, apparel and accessories, coffee and more. International executives from some of the top companies traveled from countries such as Canada, the United Kingdom, Sweden, Norway and Switzerland, to name a few.

Top executives in attendance included Avon Group Vice President Tom Kelly, Amway Regional President Asia-Pacific Jim Payne and Chief Sales Officer John Parker, Oriflame CEO Magnus Brännström, Primerica Co-CEOs John Addison and Rick Williams, USANA CEO Dave Wentz, PartyLite Worldwide President Robert Goergen Jr., ACN President Greg Provenzano and Chairman Robert Stevanovski, Scentsy Founders Orville and Heidi Thompson, Herbalife Vice President of Worldwide Corporate Communications George Fisher, Mary Kay Vice President of Government Relations and Compliance Kerry Tassopoulos, Organo Gold Vice President of Sales Holton Buggs, Princess House President and CEO Connie Tang, Co-Founder of Stream Energy (parent company of Ignite) Rob Snyder, It Works! Global CEO Mark Pentecost, and WorldVentures Co-Founder and Chief Visionary Officer Wayne Nugent, as well as a host of other executives who enjoyed a memorable evening of celebration.

Hometown team Mannatech would certainly have taken honors for most attendance by one company, with 30 executives present. And ViSalus came in second with 14 in attendance, not including five from majority shareholder Blyth. Amway came in third with 13 executives.

Special guest speakers included Doug DeVos, President of Amway, and Joseph Mariano, President of the U.S. DSA, who told Fleming that the DSN Global 100 event was “a real exhibition of a conversation and collaboration among all of you that really serves the interest of the industry.” Ross Creber, President of the DSA of Canada, and Charlie Orr, Executive Director of the Direct Selling Education Foundation, were also in attendance.

In his address, DeVos said, “It’s a joy to be in this industry and to be with all of you. Every time we have a chance to come to an event like this, it’s a reunion—it’s being with friends, it’s being together with people who share a common passion about helping other people.” DeVos also acknowledged that direct selling is a “people business” and that “if our businesses keep our priorities straight, we’ll focus on the people and use the money to serve and support the people. Make it personal. These are friends; these are relationships that endure. That’s what is important.”


Host John Fleming, DSN Publisher and Editor in Chief.Host John Fleming, DSN Publisher and Editor in Chief.


The DSN Global 100

Special guest speaker Amway President Doug DeVos.
Special guest speaker Amway President Doug DeVos.
Executive attendees share their enthusiasm for the DSN Global 100 event.Executive attendees share their enthusiasm for the DSN Global 100 event.
Emcee Brian Connolly, former President of Avon North America.Emcee Brian Connolly, former President of Avon North America.

The highlight of the night was the introduction of the DSN Global 100. Sixteen countries were represented in the ranking—Brazil, Canada, China, Germany, India, Japan, Luxembourg, Malaysia, New Zealand, Peru, Russia, South Korea, Switzerland, Thailand, the United Kingdom and the United States.

In all, the DSN Global 100 companies achieved over $63 billion in net sales in 2011 through more than 40 million sales consultants worldwide.

The Top 10 companies, which generated $42.6 billion in net sales alone for 2011, were Avon (1), Amway (2), Herbalife (3), Natura (4), Vorwerk (5), Mary Kay (6), Tupperware (7), Oriflame (8), Nu Skin (9) and Belcorp (10).

Avon’s Tom Kelly—who was recently named President and COO of the company’s subsidiary, Silpada Designs—accepted for the No. 1 direct seller. “This means an awful lot to us. We’ve certainly had our fair share of news out there in recent days, and clearly we know the competition is out there.”

The Bravo Awards

During the celebration, DSN also presented its Bravo Awards for excellence.

Nu Skin was honored with the Humanitarian Award for its Nourish the Children initiative, which provides the company’s nutritional supplement VitaMeal to starving children around the world. Greg Darlington, Vice President of Marketing, accepted the award.

“I’d like to thank Direct Selling News for bestowing this great honor upon our company. The Nourish the Children initiative was founded in the roots of a statement from one of our founders, Blake Roney, who said in the late ’80s that our company needed to be a force for good in the world—that we weren’t just about amazing products and a great compensation plan or business opportunity, but that we needed to have a unique and uplifting and enriching culture,” said Darlington. “We created that [culture], and in 2002, out of that vision we created this Nourish the Children program, which through our partnership with our distributor leaders, and through their social connections and social entrepreneurship, we have since donated 250 million meals to malnourished and hungry children around the world. Blake Roney said it best: ‘This Nourish the Children initiative is 5 percent of what we do, but it’s 95 percent of who we are.’ On behalf of Nu Skin, its founders and our amazing distributor force, thank you very much.”

ViSalus, which received the DSN Turnaround Award in 2011, was honored with this year’s Growth Award for its nearly 600 percent growth over the past 12 months—from $34 million in 2010 to $231 million in 2011. Founders Ryan Blair, Blake Mallen and Nick Sarnicola accepted the award.

“Three years ago we didn’t make the top [DSN Global] 100 list and we were indeed a company that was about to go out of this business,” said Blair. “I share that with you because some of you are making critical decisions right now and some of you are going to experience a reality walking out of this event. You make a decision to change the way you operate your business and to build your business, and hopefully get an award like this.”

Doug DeVos was honored with the Leadership Award for the record sales growth Amway has achieved since he assumed the presidency in 2002.

“This is a tremendous honor. Anytime there is any level of recognition—like the other honorees have had in this industry—it’s special,” said DeVos. “My colleagues, friends and fellow leaders are all part of this industry, and as I look around and see Stan, Joey, Charlie, Brian, John and Tom, and so many others who have just been great leaders in this industry, I’m honored to be part of it. I’m humbled to be with you, to be able to be your friend, to be able to learn from you and to be part of an industry that is very special. I am grateful for all our team’s tremendous leadership throughout our organization, and I am grateful to be a part of this.”

Connolly closed the evening with his vision of the celebration. “I see this moment as us all traveling together, and I see life as simply being about faith, hope and love,” he said. “Faith is for all the people who have come before us; it’s about the past. Hope is about the future for our children, and for the women and men who are looking to [you] to have a better life for their families. And love is about this moment, about loving your people into the action that allows them to be everything they hope to be in their biggest and greatest dreams. You are the leaders and the privileged caretakers of millions of dreams of families all over the world.”

The DSN Global 100 Celebration was sponsored by Jenkon, InfoTrax and VideoPlus. The ranking of the top companies will also appear in a June supplement to The Wall Street Journal.

Filed Under: Cover Stories Tagged With: Organo Gold, Shaklee

Letter from John Fleming, June 2012

June 2, 2012 by DSN Staff Leave a Comment

John Fleming​The June issue of Direct Selling News is always special. For months we work on identifying the top 100 companies in the world. Then the writing process begins. Our objective: Publish an authentic ranking and tell the stories behind the numbers. The ranking helps all to better understand how companies have performed in relationship to one another at a specific moment in time, and what the combined economic impact is on our global community. Behind the numbers are the many stories of people from all walks of life who are benefiting from the products and services sold by independent business owners. Other stories behind the numbers are those of companies who have weathered the storms of a turbulent economy, risen above the challenges and are the role models, the leaders, the stars that all would want to be like—inspiring us in our belief that “good things are just ahead.” 

On April 16 we announced the DSN Global 100 at our annual awards banquet, which included distinguished industry leaders and executives from many different companies, some located abroad. We also awarded our 2011 Bravo Awards in three categories: Humanitarian, Growth and Leadership. We think you will enjoy reading the highlights of everything that happened and more about the honorees who received our three special awards. Most importantly, we extend our appreciation and gratitude to all who joined us that evening.

Because we introduced a new certification process for a company to be ranked in our DSN Global 100 for 2011, you will note that our list this year does not rank a total of 100 companies. However, the total wholesale revenue before commissions are paid and without value-added tax still exceeded $63 billion, which is just $3 billion shy of what we reported for 100 companies in 2010. The industry appears to be vibrant and well positioned for the times. The use of the word “social” in the direct selling business process has been a natural choice. People are being attracted to the business model for many reasons, but it is obvious that technology coupled with innovation is actually making it easier for customers to benefit and business builders to build. 

While we remain optimistic about the future and inspired by the great results achieved by so many companies, challenges will always be very close because there are still so many who do not understand how and why the direct selling channel of distribution works. A recent question and subsequent conversation—during a company conference call with an analyst and shareholders—about what percentage of the direct sales organization is simply purchasing for personal use versus selling to customers outside of the company obviously impacted the stock value of some prominent publicly traded direct selling companies. DSA has argued consistently for many years that the purchase of products or services by distributors for their own use is a common and legitimate aspect of direct selling and not a fraudulent or illegal activity. In fact, what would you think of a Ford sales person who drove home in a Chevy? Personally, none of us would think too highly of any direct seller who was not their own best customer. In fact, it is one of the strongest assets of a direct selling company and one of the primary reasons for joining: the opportunity to purchase what you want and like at wholesale prices.

As this publication goes to press, so does the next Direct Selling News supplement to be distributed in The Wall Street Journal on Friday, June 8 to all U.S. subscribers. We do this because we cannot turn on our television sets and expect to hear about the positive contributions being made by direct selling companies to the people of a nation that thirst for a glimmer of hope, the satisfaction gained when experiencing a product or service that someone personally introduced, or the opportunity to learn a new skill and build an asset of their own—a direct selling business. 

Our staff is delighted that we were able to partner with enough companies to make possible both the USA Today and The Wall Street Journal supplements. Our sincere appreciation goes out to all of you! The challenge of enhancing/changing public perception is a never-ending one but one that has already begun in many ways. While some want the public to hang on to misperceptions and a stereotypical view of direct sellers, today’s direct sellers and networkers are doing it quite differently and even more personably than ever before. 

To those of you who read this publication to keep up with what is happening within the industry, we encourage you to review every page of this issue. Yes, we do tell stories but we tell the stories that need to be told and, every now and then, we provide through our stories some education and information that you might not find in the regular distribution of the local newspaper or the evening news. We do believe this is a time to proudly advocate the attributes of direct selling!

As always, it was a joy to see this issue come together as well as the WSJ supplement.

Until next month …

John Fleming
Publisher and Editor in Chief

Filed Under: From the Publisher

June 2012 — Direct Selling’s Efficiency as a Business Method—An Analyst’s Perspective

June 2, 2012 by DSN Staff Leave a Comment


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


The direct selling channel enjoys many attributes that often allow it to be a superior method of retailing products and services. Some of the benefits are obvious for retailing, such as the use of parties and testimonials by dedicated distributors, or distribution where traditional retail distribution is limited. While it is often simple to see how direct selling can be more effective, its superior efficiency is often overlooked. This business model is one of the most efficient distribution models available to consumer product companies, both from the standpoint of capital investment and people infrastructure.

Figure 1: Financial Model Comparisons in Beauty and Skin Care
Chart
Source: Canaccord Genuity research and Capital IQ


Figure 2: Financial Model Comparisons in Nutrition
Chart
Source: Canaccord Genuity research and Capital IQ


Generally, a direct seller requires lower levels of fixed capital invested in retail stores and distribution infrastructure given that products are almost universally shipped by common carrier to consumers’ or distributors’ homes. The direct-to-consumer model inherently yields higher margins that are deployed into a commission structure that provides a business model for distributors. Additionally, the lack of an employed salesforce—given that distributors are generally independent contractors—leads to a more scalable platform that requires less investment in salary and benefits as the business grows. Finally, the centralized distribution and independent salesforce provide for more rapid and efficient international expansion. In the peer comparisons highlighted here, the average direct seller generates over 70 percent of sales internationally vs. the average traditional retailer generating less than 5 percent of sales internationally. Only the larger multinational brands generate a meaningful percentage of sales internationally. While many consumer companies will consider which selling method is effective first and foremost, the efficiency of the model can generate superior returns on investment. These higher returns on investment are increasingly becoming clear to investors. To illustrate, the following charts compare the gross margin, return on equity and capital expenditures as a percentage of sales of select direct sellers vs. traditional retailers/brands. Only data from publicly traded companies was compared to ensure integrity of the data, and the comparisons have been grouped into two sectors.


This business model is one of the most efficient distribution models available to consumer product companies.


First, we compare the metrics of direct sellers of beauty and skin care, Avon Products and Nu Skin Enterprises, against traditional beauty and skin care companies, Ulta Salon, Elizabeth Arden and Estee Lauder (see Figure 1). The comparisons are quite clear, with the direct sellers generating higher product margins (gross margin) and higher returns on equity (the most important characteristic), and requiring lower capital investment as a percentage of sales.

Second, we compare the metrics of direct sellers of nutrition products, Herbalife and USANA Health Sciences, against traditional retailers of nutrition products, GNC and Vitamin Shoppe (see Figure 2). The margin and return on equity disparities are quite significant, while the capital investments are more comparable, as GNC has limited store growth investment at its mature state, but the modest difference of 2.2 percent vs. 2.5 percent is still measurable.

Successful companies in the channel should generate a higher free cash flow yield given the limited need for fixed capital investment, the higher margin potential as well as what is generally a more attractive working capital model given centralized distribution. With centralized distribution, inventory should turn faster and thus working capital should be more efficient. The attractive financial model characteristics inherent in direct selling have attracted greater investor interest over the last decade. This is clear in the successful stock performance of several multibillion-dollar publicly traded companies. However, private equity investment has also been on the rise over the last decade, and it appears that interest is at an all-time high. Whether it is investment in the growth stage of private companies or leveraged buyouts of publicly traded direct sellers, the attractive financial model is the key differentiator. Given the efficiency and cash flow, these companies can tolerate a higher level of debt leverage, further providing more attractive equity returns for private equity investors.

As the industry continues to grow (over $30 billion annually in the United States and $132 billion annually worldwide), we expect broader investor interest could lead to higher market valuations and thus greater potential returns to investors.


Scott Van WinkleScott Van Winkle is a Managing Director of Equity Research at Canaccord Genuity, the global capital markets division of Canaccord Financial. Canaccord Genuity offers institutional and corporate clients idea-driven investment banking, research, sales and trading services from 16 offices worldwide. Van Winkle, based in Boston, has followed the direct selling channel since 1997.


Disclaimer: Canaccord Genuity has published research recommendations on Herbalife, Nu Skin Enterprises and USANA Health Sciences and makes a market in shares of Herbalife, Nu Skin Enterprises and USANA Health Sciences. Canaccord Genuity has provided non-investment banking securities-related services to Nu Skin Enterprises in the last 12 months. Past performance is not indicative of future results and these comments are not a recommendation to buy or sell the specific securities discussed.

Filed Under: Financial

Nu Skin: Bravo Humanitarian Award

June 2, 2012 by DSN Staff Writer Leave a Comment


Table of Contents

Intro • Global Outlook • Why the Global 100? • The 2011 DSN Global 100: The Top 10 • The 2011 DSN Global 100: 11-100 •        Topping the Charts • DSN Global 100 • The $100 Million Club • Celebrating the DSN Global 100

Bravo Awards
Bravo Humanitarian Award: Nu Skin • Bravo Growth Award: ViSalus • Bravo Leadership Award: Doug DeVos


Greg Darlington, Vice President of Marketing for Nu Skin, accepts the Bravo Humanitarian Award at the DSN Global 100 Celebration held in April.


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


Nu Skin

Seven-year-old Alinafe Billiat lives in the village of Chibimphi in Malawi with her two siblings, Michael and Charity. Both of their parents are deceased.

Eleven-year-old Xie Rongxue is from China. Her family makes the equivalent of US$75 a year.

Tupiza, a seven-year-old boy from Bolivia, lost his father a few years ago. Now he works in the mines to help support his family.

Bravo Humanitarian AwardWhat these children have in common is hunger, a constant ache in their bellies brought on by malnutrition. And they are not alone. There are tens of millions of children around the world today who are underfed. On average, 26,000 of those children under the age of five die daily.

However, hope lives for these children. Since 2002, Nu Skin Enterprises, the Provo, Utah-based global nutritional company, has made its mission to provide the world’s malnourished children with the nutritious food they desperately need. Alinafe, Xie and Tupiza are just three of the millions of children touched by the company’s social entrepreneurship initiative that has, to date, donated more than 257 million meals to hungry children everywhere.

The Bravo Award

For the real and tangible difference Nu Skin and its distributors, employees and customers have made and continue to make in the lives of malnourished children throughout the world, Direct Selling News presented the company with the 2011 Bravo Humanitarian Award.

“It is an honor to be recognized by Direct Selling News and to receive the Bravo Humanitarian Award,” says Truman Hunt, CEO of Nu Skin. “This industry has such a capacity for doing good throughout the world and we are pleased to be able to unite the Nu Skin family of distributors, customers and employees in innovative efforts that multiply our ability to nourish and uplift children around the world.”

Social Entrepreneurship: Nourish the Children

The direct selling industry is an industry that is generous by nature, and nowhere is that more evident than at Nu Skin. In 2002, Nu Skin initiated a new program focused directly on malnourished children: the Nourish the Children initiative. The initiative provided another way for Nu Skin to fulfill its mission to be a force for good throughout the world.

The for-profit program began as a social enterprise in which Nu Skin distributors became social entrepreneurs by including the Nourish the Children initiative as part of their business model. As distributors incorporated VitaMeal®—Nu Skin’s nutritious food supplement—into their business, they not only helped their businesses grow, but they also made a real and tangible difference in the lives of malnourished children throughout the world.

Through the initiative, Nourish the Children creates consistent and increasing food donations by offering an incentive to buy, donate and promote VitaMeal. In the first quarter of 2012, 27,429 of Nu Skin’s 842,079 active distributors participated in Nourish the Children. In addition, the company contributed one package of food—enough to feed a child for a month—for every eight packages of food purchased.

“We are fortunate to be a part of something so much bigger than ourselves,” says Steven J. Lund, Founder and Vice Chairman of Nu Skin Enterprises. “Malnutrition is rampant in many parts of the world and we are actively fighting it. We are providing hope and eliminating hunger with every bag of VitaMeal we distribute. There is so much more to be done, but with the help of the Nu Skin family of distributors, we are feeding hundreds of thousands of children each day.”

VitaMeal: “The Miracle Food”

A malnourished child suffers from vitamin and mineral deficiencies, which can affect brain, bone and immune system development. Typically, it is a vicious cycle—bouts of infection and diarrhea followed by even more severe malnutrition.

Nu Skin’s VitaMeal helps break this cycle by providing a highly dense, nutritious product—specially formulated for malnourished children—that is more easily digestible. Nu Skin’s extensive knowledge in nutrition—through the company’s nutritional division, Pharmanex—and work with experts in third-world countries, has developed a meal that is a balance of carbohydrates, protein, fat, and fiber, and provides essential fatty acids required for normal brain development, skin health and immune defense; electrolytes necessary for maintaining normal fluid balance and muscle function; and 25 essential vitamins and minerals, including vitamin A, for normal sight and immune functions, as well as nutrients for normal growth and skeletal development.

While VitaMeal is very important in providing nourishment for children, the meals donated through Nourish the Children also create additional opportunities to assist those in need through education, jobs and teaching self-sufficiency.

In addition to orphanages, VitaMeal is also served in schools, encouraging children to attend and benefit from education. Some clinics even use it to encourage pregnant women to attend AIDS prevention classes.

VitaMeal, through the Nourish the Children initiative, is also helping to boost local economies. The VitaMeal plants in Malawi and China help reduce transportation costs and assist in supporting local economies.

Additionally, portions of the proceeds from VitaMeal purchases are donated to the Nu Skin Force for Good Foundation where the money is used in part to fund agricultural education at Mtalimanja Village in Malawi.

A Force for Good


Nu Skin has contributed more than $41 million to life-changing projects benefitting children and families in 52 markets worldwide through its non-profit organization, the Nu Skin Force for Good Foundation.


In addition to its Nourish the Children initiative, Nu Skin has also contributed more than $41 million to life-changing projects benefitting children and families in 52 markets worldwide through its non-profit organization, the Nu Skin Force for Good Foundation.

In 2011, its 15th year of operation, the Foundation contributed $18,808,146 to educational, health, economic, disaster relief and community programs throughout the world. 

Why such a commitment to corporate social responsibility? It was the desire of Co-Founder Blake Roney that Nu Skin be more than a company with great products and opportunities—that it be a force for good in the world.

“People typically become a direct seller to improve their life and the lives of others,” says Kara Schneck, Director of Communications for Nu Skin. “That desire is an important driver of their business success, as well as their passion for making a difference in the world. Additionally, the direct selling model brings together dedicated and passionate people, providing a vehicle for them to unite around a good cause. We are proud to be part of an industry that empowers people to make a difference in the world in such meaningful and tangible ways.”

Improving the Lives of Children

In 2011, Nu Skin’s family of distributors and customers purchased and donated more than 40 million units of VitaMeal for malnourished children in 19 countries.


“The driving force behind Nu Skin has always been, and will always be, improving people’s lives.”
—Steven J. Lund, Founder and Vice Chairman, Nu Skin Enterprises


Many of these children are orphans whose lives have changed dramatically for the better. Thanks to the generosity of Nu Skin’s distributors, employees and other supporters, today more than 50,000 children are fed each day in Malawi alone. 

“The driving force behind Nu Skin has always been, and will always be, improving people’s lives,” says Lund. “This is the Nu Skin culture, and it is evident in everything we do, everything we are, and everything we strive to become.”

It’s evident, too, in the children like Alinafe who receive the nourishment to grow up healthy and happy. She says, “May the good Lord bless all the people who are working so hard in order to feed us.”

Filed Under: Feature Articles

ViSalus: Bravo Growth Award

June 2, 2012 by DSN Staff Writer Leave a Comment


Table of Contents

Intro • Global Outlook • Why the Global 100? • The 2011 DSN Global 100: The Top 10 • The 2011 DSN Global 100: 11-100 •        Topping the Charts • DSN Global 100 • The $100 Million Club • Celebrating the DSN Global 100

Bravo Awards
Bravo Humanitarian Award: Nu Skin • Bravo Growth Award: ViSalus • Bravo Leadership Award: Doug DeVos


ViSalus Co-founders Ryan Blair, Nick Sarnicola and Blake Mallen, along with Blyth’s Robert Goergen Jr. and Todd Goergen, accept the Bravo Growth Award at the DSN Global 100 Celebration held in April.


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


ViSalus

In April 2011, ViSalus received Direct Selling News’ Bravo Turnaround Award for revitalizing a company that many in the direct selling industry thought was about to disappear. When co-founders Ryan Blair, Nick Sarnicola and Blake Mallen took to the stage that night to accept the award, many in the audience had the feeling that the turnaround would not be the end of the ViSalus story—only the beginning.

And were they ever right.


Bravo Growth Award 2011 ViSalusThe ultra-premium lifestyle company delivering cutting-edge products through the Body by Vi™ 90-Day Challenge had a remarkable 579 percent increase over prior-year earnings, going from $34 million in net sales in 2010 to $231 million in 2011.

And just last month, ViSalus announced that first-quarter sales for 2012 were $136.7 million, an increase of $116.7 million over the prior-year period. In addition, the company reported 92,000 independent Promoters for the first quarter, compared to 16,000 for the same period in 2011.

So how did they do it? It could be boiled down to this: Some people see problems and others find solutions. Blair, Sarnicola and Mallen learned from the mistakes made during the first five years of business and, urged on by the economic downturn, set their sights on a solution for their struggling company.

According to Mallen, who serves as ViSalus’ Chief Marketing Officer, the remarkable turnaround and growing success can be attributed to staying focused on a simple and social selling method revolving around the Body by Vi Challenge.

The Bravo Growth Award


“It took a whole lot of us to get where we are, and I can tell you we’re just getting started.”
—Ryan Blair, Co-Founder and CEO


It is for the company’s incredible growth during 2011 that Direct Selling News presented ViSalus with the 2011 Bravo Growth Award this year.

“We are very humbled and grateful,” says CEO Blair. “It’s been a lot of hard work, and we couldn’t have done it without our teams, without the Goergen family [owners of majority shareholder Blyth] and without the Promoters in our field. It took a whole lot of us to get where we are, and I can tell you we’re just getting started.”

Life, Health, Prosperity

ViSalus was originally launched in 2005 with the intent to build a health-based business that would stand the test of time. Known then as ViSalus Sciences, the company’s mission was to improve the lives of people through network marketing, premium wellness products and a global community culture—that is, Life, Health and Prosperity. The company name represents those goals: Vi being the Latin root for “Life” and Salus representing “Health” and “Prosperity.”

ViSalus Growth Timeline
Life. ViSalus enhances the lives of its members, called Promoters, through incentives and reward programs designed to create new experiences, build relationships and create lasting memories. Life is a series of moments, and ViSalus takes pride in making those moments special for those on The Challenge. Whether it’s a dream vacation or just a timeless Sunday with the family, life experiences are enjoyed in abundance throughout the community.

Health. The fight to improve world health and combat obesity is core to the ViSalus mission. The company offers a line of innovative wellness products—developed by a world-class Scientific Advisory Board and backed by some of the most advanced scientific technology available—to help customers lose weight, get in shape and achieve their fitness goals.

Prosperity. ViSalus is about people, and about people helping people. The company provides its entrepreneurial opportunity to anyone, regardless of experience level or educational background, who desires to grow and fulfill their financial potential. The business model upon which ViSalus is based also allows those passionate about sharing their beliefs to give back and make an impact on others.

The Challenge

The Body by Vi Challenge, which was launched in 2009, is a lifestyle transformation platform that helps the average person transform his or her body over a 90-day period. Participants can take advantage of ViSalus’ health products—the low-calorie, high-nutrition Vi-Shape meal replacement shakes are the company’s core products—as well as support tools to assist them in their goals.

The company’s products are sold in five Challenge Kits, designed to support a range of weight-loss and fitness goals. Success can be had by people of all ages who are focused on creating and maintaining individually defined healthy lifestyles.

The Balance Kit helps maintain a daily balanced nutrition. The Shape Kit helps customers lose weight or build lean muscle more quickly. The Core Kit fuels performance. The Transformation Kit, which is the No. 1 Challenge kit used by Body by Vi Champions, helps transform the body the quickest. And the newest addition to the product line, the Fit Kit, is geared for athletes and those leading more active lifestyles.

To say that the Body by Vi Challenge has been wildly successful would be an understatement. In the three years since it was introduced, more than 100 million shakes have been served and millions upon millions of pounds have been lost by customers.


“In March alone we had 158,000 people join, to give you an idea of the trajectory we are on.”
—Blake Mallen, Co-Founder and Chief Marketing Officer


“We had 575,000 people join the Challenge in 2011, and that has risen dramatically already in 2012,” Mallen says. “In March alone we had 158,000 people join, to give you an idea of the trajectory we are on. We hit the 1 millionth customer mark [in April]—it took us seven years to get there—and in all likelihood we’ll add another million customers over the next six months.”

So what is the key to success? Promoters do not focus on “selling” the ViSalus products. Instead, they help people set and achieve Challenge goals, using the products to support that success. Just as thousands of bodies have been transformed through Body by Vi, the old method of selling has been transformed into a new social selling method that asks “Are you up for The Challenge?”

Today, ViSalus is the No. 1 weight-loss and fitness challenge platform in North America.

Making the Connection


Body by Vi™ Challenge

  • Every second 7 people drink a ViSalus shake.
  • Every 20 seconds someone joins the Body by Vi Challenge.
  • Every minute 12 people visit the ViSalus website.
  • Every minute 6 people Google “ViSalus.”
  • Every minute someone “likes” ViSalus on Facebook.

While the Body by Vi Challenge is the engine that drives ViSalus’ sales, the company’s success is not simply about a product. It is about connecting, communicating, relationships and people. And ViSalus is connecting more effectively, more efficiently and more effortlessly than ever before.

ViSalus champions personal victories and entrepreneurship through a social marketing model and global community culture.

“We have a different perspective and we are definitely taking a different approach to what has been done within the direct selling channel,” Mallen says. “We come from more of a Gen X and Gen Y perspective, heavily integrated into social media and technology trends.”

ViSalus has spent a lot of time and energy—and money—on social media, technology and web initiatives. In 2008, the company launched Vi-Net, an exclusive online community for people who share a passion for health and fitness. With Vi-Net, ViSalus put the power to market the Challenge into the hands of its Promoters, enabling them to instantly connect with like-minded individuals and access social tools.


“We have a different perspective and we are definitely taking a different approach to what has been done within the direct selling channel.”
—Blake Mallen


Vi-Net Mobile, which was launched in the first quarter of 2011, is an application that enables anyone with a smartphone to fully access all business management, social networking and order processing tools.

Of course, ViSalus also has a strong presence on all the popular social media networks, including Facebook, Twitter, YouTube, LinkedIn, Google+ and Pinterest.

“Social media amplifies our organization,” Mallen says. “Any conversation gets multiplied or amplified by the consumer, for better or worse. So if there are people talking negatively about your product or service, it’s going to impact you negatively. In our case, we’ve had a lot of great results because of our social message and, yes, social media in general has a lot to do with that reach. People are enjoying their results and are sharing it with friends on Facebook and their followers on Twitter.”

In January, ViSalus spent $825,000 for two web domains to help speed up the viral nature of the Body by Vi Challenge. The purchases of challenge.com for $500,000 and vi.com for $325,000 represented the second- and third-highest reported domain purchases in 2012.


“With the acquisition of vi.com, we have gained a simple, multilingual brand architecture that will enable us to become a global household name.”
—Ryan Blair


Blair says the acquisitions were part of ViSalus’ plan to invest aggressively in the challenge marketing space the company had created. “We now own the word ‘challenge’ online with the purchase of challenge.com. With the acquisition of vi.com, we have gained a simple, multilingual brand architecture that will enable us to become a global household name,” he says.

Partnering with Blyth

The different selling approach and technology savvy of ViSalus’ founders is what drew the attention of Blyth Inc. In October 2008, Blyth, a Greenwich, Conn.-based multi-channel company that operates primarily in the home fragrance and decorative accessories industry, signed an agreement to purchase ViSalus in a four-phase acquisition plan. Blyth, which is the parent company of another direct seller, PartyLite, believed that ViSalus had the right people in place to catch up and possibly surpass all of the other Blyth companies.

This past January the third phase of the agreement was completed. Blair, Mallen and Sarnicola will continue on in their current positions after the acquisition is completed.

“We have a great working relationship with Blyth,” Mallen says. “They are amazing strategic partners and we are excited about the future.”

That future includes the company’s March to a Billion. The phenomenal sales growth has invigorated everyone at ViSalus, and Blair, Mallen and Sarnicola have the entire field setting their sights on a new goal: to be the first product-based company in direct selling history to reach a $1 billion revenue run rate purely in North America.

“To my knowledge it has never been done by any company in any category,” Mallen says. “We think we can hit a $1 billion run rate purely in the U.S. and Canada. We believe it’s possible.”

One gets the feeling that they just might be right.

Filed Under: Feature Articles Tagged With: ViSalus

Amway: Bravo Leadership Award

June 2, 2012 by DSN Staff Writer Leave a Comment


Table of Contents

Intro • Global Outlook • Why the Global 100? • The 2011 DSN Global 100: The Top 10 • The 2011 DSN Global 100: 11-100 •        Topping the Charts • DSN Global 100 • The $100 Million Club • Celebrating the DSN Global 100

Bravo Awards
Bravo Humanitarian Award: Nu Skin • Bravo Growth Award: ViSalus • Bravo Leadership Award: Doug DeVos


Doug DeVos, President of Amway, accepts the Bravo Leadership Award at the DSN Global 100 Celebration held in April.


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


Amway

Amway President Doug DeVos likes to tell the story of the time his father, Rich, met with the Prime Minister of Malaysia after the company opened its overseas offices there. In the midst of a discussion of business and economics, the Prime Minister related the struggles his country was experiencing. Prices for Malaysia’s natural resources—copper, tin and oil—were being depressed in the global marketplace and it was negatively impacting the country’s economy. Times were tough. Then he laughed and said to the elder DeVos, “But it sounds like your business is going well. What’s the secret?”

And Rich DeVos, who had co-founded Amway Corporation in 1959 with Jay Van Andel,  turned to the Prime Minister and said, “Well, Mr. Prime Minister, it’s simple. You may think the greatest natural resources of Malaysia are copper, tin and oil, but we believe the greatest natural resources of Malaysia are the people of Malaysia. And our business focuses on people.”

As the leader of the second-largest direct seller in the world, Doug DeVos has stayed true to the principles his father set forth that day: People are the foundation of any enterprise. And through his decade of stewardship, he has strengthened and built upon a family legacy that embraces the ideas, hopes and aspirations of today’s more than 3 million Amway independent business owners around the globe.

The Bravo Leadership Award

Amway: Bravo Leadership AwardIt is for this unwavering commitment to the people of Amway and his leadership role within the direct selling industry on the local, national and international levels, that Direct Selling News presented DeVos with the 2011 Bravo Leadership Award.

“Any time you’re recognized in your industry by your peers, it’s a tremendous honor,” says DeVos. “You want to be part of the team. So this is kind of like my teammates having a vote and saying ‘thanks’ in a very special way.” 

It’s All about Teamwork

Since assuming the presidency in 2002, DeVos has led the company to record sales growth, including $10.9 billion in 2011. Of course, he would be the first to tell you that he did not do it alone. DeVos is quick to credit his partner, Amway Chairman and Co-CEO Steve Van Andel, the eldest son of Jay, for the valuable knowledge he has imparted during his tenure.

“We have different styles and that is part of the strength of our relationship,” says DeVos. “But the real strength comes as a result of common values and appreciation for our heritage. We also believe in the business. We start with the same foundation and appreciate each other. We work through things differently but start at the same place. And we talk and listen. It’s a give and take, a collaboration. This doesn’t mean we don’t disagree. But a disagreement doesn’t end the conversation. It might end it for a while, but we keep talking, especially if we really feel strongly about something. And we keep at it until we agree.”


Doug DeVos is quick to credit his partner, Amway Chairman and Co-CEO Steve Van Andel, for the valuable knowledge he has imparted during his tenure.


That reliance on teamwork harkens back to DeVos’ days at Purdue University, where he played quarterback for the Boilermakers. After practices the offensive and defensive teams would break up for different meetings. His first season there, the team was not doing very well. The offense was doing great—it was the No. 1-rated offense in the Big 10 when measured in yards gained—but the defense was definitely not the No. 1 with regard to stopping points scored against them.

“We spent a lot of our time patting ourselves on the back and blaming the defense,” says DeVos. “But it didn’t change our record. We were looking at a measure that we liked, but at the end of the day not the one that was most important. Yards gained is an interesting statistic, but it’s points scored that win and lose games.”

It was then that DeVos learned how important teamwork was to any success. “On a team, every once in a while you do something well. But when you screw something up, you have someone there to back you up. It’s nice to have that level of support.”

The same principles hold true for a company. “When there are a lot of people involved, it takes a lot of people to make something happen. And what you see on the field is generally only a very small representation of all the preparation, practice and activity that has taken place to get to a certain point. When you look around Amway, when you walk through the factories, look at distribution, the R&D, the distributors and every part of the organization, there are some interesting parallels to what it’s like being a player on a team sport.”

Belief in Others, Belief in the Business

Teamwork goes hand in hand with believing in others. And Amway’s success, says DeVos, is the result of its people—the employees, distributors and customers. They all bring a variety of skills, talents and passions to the business that he and Van Andel try to let them unleash.


“At Amway we are really happy to look back at our foundation—not just our history but also our heritage—and be proud of it.”
—Doug DeVos, President


“At Amway we are really happy to look back at our foundation—not just our history but also our heritage—and be proud of it,” says DeVos. “Our heritage is why we got started; it’s the mission. Dad and Jay fought for free enterprise, having a business of your own, our cause and the Founder’s Fundamentals of freedom, family, hope and reward, and our values. They also had a lot of genuine love and concern for each individual in this business. It wasn’t all about the money. They were driven by a desire to help people do more, be more.”

The other piece of creating a successful business is believing in the business. In 1999, the transition from first to second generation really took place. Doug’s brother Dick and Steve Van Andel created a foundation for change. And then one day a few years later, after he had succeeded his brother, Doug and Van Andel both received a forecast report that neither liked.

“So I was walking over to his office at the same time he was walking over to mine and we both agreed we could do better than what the report predicted,” says DeVos. “We weren’t reaching our potential. We believed in the business and we knew we could be better. We knew we could do more and we knew that in that process he and I would have to change. We would have to be willing to do things differently and think differently. And people throughout the organization did the same thing. Everyone believed in the business and our potential. We have been very fortunate, but we also know that every once in a while we’ll have to refresh and discuss what we’re missing.”

That belief in the business helped grow Amway into one of the world’s largest international enterprises. And the key to penetrating foreign markets and positioning the Amway brand? It was accomplished through two very adventurous guys—founders Rich DeVos and Jay Van Andel.

“Everywhere they went in the world they wondered how they could bring the business there,” DeVos says. “Then in the ‘80s and ‘90s, Dick made a big push to enter new markets and the key was making sure our distributors went with us. When the whole international sponsoring plan was created and put in place, the people in these countries were the key to penetration.”

Those people helped solidly position the Amway brand. “We told the Amway story, but they took it and made it their own,” says DeVos. “Today in Russia, we’re a Russian company. In India we’re an Indian company. We happen to have a headquarters in America, but we try to be honorable guests in any market where we do business and adapt to the local needs of any market.”

The Hallmarks of Leadership

The willingness to change is one of the hallmarks of DeVos’ leadership style. Another is the belief that two heads are better than one, which was born of the partnership he witnessed between his father and Jay Van Andel.

“Dad was always comfortable with getting advice. He never felt that he had all the answers. He and Jay were always able to come together to find solutions. They didn’t find it was worth their time to assign blame when problems or challenges arose. Dad would say that 90 percent of an issue is figuring out what the problem is. And once it’s boiled down, the solutions become easier to find. Dad and Jay were always very focused and optimistic that a solution could be found. And those are a couple of things I’ve learned from them and their leadership styles.”

And it is what he hopes to impart to young entrepreneurs looking to join the industry. “If you’re a young person and you want to develop your business skills, direct selling enables you to see people lead and handle problems on a regular basis,” says DeVos. “It’s an incredible opportunity to learn skills you’ll use throughout your life. It’s a great industry to connect you to a mentor, a leader, a person that’s actually doing it. It’s so much more than an apprenticeship. You’re not just learning a trade, you’re learning life skills and business skills and seeing someone who genuinely cares about you as a person. Everyone is incentivized to help other people.”

In addition to partnership and the ability to change, DeVos also sees integrity, personal worth, personal responsibility and achievement as attributes of a good leader.

“Integrity—you have to be who you are on the outside just like who you are on the inside. Personal worth—you have to believe in people. Personal responsibility—you’ve got to be accountable to yourself; it’s up to you to do things. And achievement—you have to celebrate and want to be better.”


In addition to partnership and the ability to change, Doug DeVos also sees integrity, personal worth, personal responsibility and achievement as attributes of a good leader.


And one last attribute is one his dad and Jay believed in: good stewardship. “Being mindful of the fact that we’re only here for a period of time, that all this stuff in this world is temporary,” says DeVos. “There’s value in the people you meet and the relationships that you have. So we need to be good stewards of our resources and business.”

A Love for the Business

DeVos will admit that growing up as the youngest son of Rich DeVos he didn’t really believe he had a choice to do anything other than join his family’s company. However, after graduating from Purdue, he had an interesting experience with a family friend that truly held him to account for his future.

“If you are going to get into this business because it’s easy, then stop right now,” the friend told him. “With your last name being DeVos, you’ve got a shot at getting a job at Amway. But if that’s just what you’re going to do, save everyone the trouble. If you’re going to get into this business because you love it, then dive in with both feet.”

And DeVos has done just that—dive in with both feet. In addition to his duties at Amway, DeVos serves on numerous business and civic organizations at the international, national and local levels. He is a vocal advocate of direct selling and the economic and personal freedom the free enterprise system provides to progress-seeking individuals.

“What I love about the direct selling industry are the founders, operators and professionals that have taken on this commitment to work collaboratively to improve the overall industry so we’ll have more opportunities as direct selling companies,” he says. “That’s a great attitude and pretty rare.”

It is his mission to share the belief and confidence that direct sellers have—the anticipation for the future and the confidence in what the future will bring—with millions more around the globe.

And as he leads his company into the future, DeVos remains forever committed to Amway’s greatest resources: its people.

“While we’ve had a very successful history, it’s important for us as an organization to build on our history—not go back to it, not to lament that it’s history—but to take it and use it and say, ‘We’re going to build on it and make it even better.’ ”

Filed Under: Feature Articles

UK Sees 120% Rise in Party Sales

June 2, 2012 by DSN Staff Leave a Comment

The UK Direct Selling Association reports that “party” sales have surged 120 percent in the past few years—from £177 million in 2009 to £290 million.

From Jamie Oliver’s antipasti platters to Stella & Dot beads and trendy Swedish clothing brand Me&I, thousands of parties are going on around the country every night of the week, generating annual sales of £400 million.

“The rise in popularity of party-based selling is connected to the current economic climate,” says DSA Director General Paul Southworth, who says 20,000 people have joined the industry’s sales force since 2009. “Whereas people might have gone out for dinner or drinks before the recession, direct-selling parties are a cheaper night in socialising with friends and family.”

The UK, which recently reported unemployment at 4.16 million, has seen a growing number of men and those over the age of 50 turn to direct selling companies such as Kleeneze, The Pampered Chef, Silpada, Best in Glass and Barefoot Books to supplement their incomes.

To view the full article, click here.

Filed Under: Daily News

VideoPlus University and SUCCESS University: Prosperity Is Back!

June 2, 2012 by DSN Staff Leave a Comment


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


The industry’s most unique events, VideoPlus University and SUCCESS University, attracted more than 500 executives to 2012 Right Ideas Right Now, two full days of sharing and learning in downtown Dallas April 16-17. The event—this is the 10th year for VPU and the second year for SU—was offered to executives at no charge and provided a new format, with 18-minute “power talks” presented by more than 28 speakers. Darren Hardy, Publisher and Editorial Director of SUCCESS, served as emcee for the events, which were supported by electronic polling to get immediate feedback on each speaker as well as on issues the audience thought important. In one poll, 49 percent of the audience thought image was still one of the most important issues in the industry. The industry also celebrated the Direct Selling News Global 100 with an Awards Ceremony and dinner during the evening of the first day.

Stuart Johnson, CEO of VideoPlus and SUCCESS, welcomes executives to the event.
Stuart Johnson, CEO of VideoPlus and SUCCESS, welcomes executives to the event.


Stuart Johnson set the tone of optimism that was evident throughout the two days. As CEO of VideoPlus and SUCCESS his observation of the industry has been from a unique vantage point of having worked with many companies over a 25-year span. “I believe we’re a leading indicator for the economy,” he said. “The cloud of hopelessness has lifted. People are getting their hope and confidence back. And people are beginning to hope again in starting their own businesses. [I believe now] we’re a leading indicator, and that we’re leading this recovery.”

The first quarter results many companies posted would certainly support that statement. Johnson also pointed out that while traditional businesses are scrambling to master the “social” trend that is all the rage, they are simply doing what direct sellers have been doing all along. “This industry is the original social business model; we were social before social was cool”—connecting people, building relationships and promoting both products and hope through personal communication.

Speaker after speaker representing companies that are experiencing the best of times shared their stories and their insights with attendees. These included Organo Gold’s Vice President of Sales Holton Buggs, Beachbody CEO Carl Daikeler, USANA CEO David Wentz, and Rob Snyder, the Co-Founder of Stream Energy (parent company of Ignite), who said it was the relationships of representatives with customers, coupled with the savings those customers find, that helped build Ignite’s success in five states to over $900 million.

SUCCESS University was a day full of truly uplifting messages. Darren Hardy, Publisher and Editorial Director of SUCCESS magazine, opened the SUCCESS University portion of the conference with a statistic that put personal development in perspective.

“In the direct selling industry, there is an attrition rate of 70-80 percent. Smallpox’s mortality rate was only 20-60 percent.”

Although humorous, he made the point that personal development is the antidote to the negative viewpoints and input distributors face every day.


Darren Hardy, Publisher and Editorial Director of SUCCESS.
Darren Hardy, Publisher and Editorial Director of SUCCESS.
Gloria Mayfield Banks, National Sales Director for Mary Kay.
Gloria Mayfield Banks, National Sales Director for Mary Kay.
Mark Pentecost, CEO of It Works! Global.
Mark Pentecost, CEO of It Works! Global.


The industry, he asserted, is different from most others because it requires self-confidence. When people don’t buy a home or a car, it’s clearly because it wasn’t right for them. But, he continued, when the product is an opportunity, the rejection is more personal. And the personal rejection means that 70-80 percent of people will quit before they start.

Solutions to the above-mentioned challenge were shared by the speakers of the day. These included Jeff Olson, CEO of Nerium and author of The Slight Edge; Angela Chrysler, President and CEO of Team National; one of the event’s most enthusiastic speakers, Magnus Brännström, President and CEO of Luxembourg’s Oriflame; Dr. Martin Seligman, President of the American Psychological Association and considered the father of Positive Psychology; Heidi Thompson, President of Scentsy; and Denis Waitley, one of the pillars of the personal-development community, who took the SUCCESS University stage to a standing ovation.

One speaker on the program represented a perspective from the field sales organization. Quite simply Gloria Mayfield Banks, Mary Kay National Sales Director “Extraordinaire,” rocked the house! Banks was the reminder to all of what every direct selling company does: grow people! People from all walks of life truly have an opportunity to live and work in accordance to their values and time and grow to become as successful as their minds allow. Banks served to represent an entire industry in a marvelous manner for all the executives who attended.


Gloria Mayfield Banks, National Sales Director for Mary Kay, was the reminder to all of what every direct selling company does: grow people!


To summarize the importance and value of VPU and SU, Mark Pentecost, CEO of It Works! Global, served as an example of what the event has become to industry leaders who attend. He had received an invitation to VideoPlus University for years. Finally, in 2011, he told Kerri Scarbrough of Video Plus, “I don’t know if we can afford to go.” He was shocked to learn that the ticket price to hear specific how-tos and how-not-tos from this gathering of the industry’s top corporate leaders was absolutely free.

Deciding that the caliber of the speakers—and the fact that they were going to be sharing information he was unlikely to hear anywhere else—was worth the investment of a plane ticket and hotel room, Pentecost agreed to attend.

As he sat among his peers at the 2011 VideoPlus University, his company’s revenue was right at $1.8 million a month, with a goal of $3 million for the upcoming month.

Returning home reinvigorated and inspired by the speakers, he and his team determined that they wouldn’t wait for chance; they would choose success. They asked themselves, “What can we do to be bold and take a stance?” Then they became unified on a single vision and made a plan to reach it. Next, they branded the plan, “2012 One Team. One Mission: $100 Million.” They launched that plan in January 2012.

A year after being inspired by his first VPU conference, and just three months into the resulting plan, the company is up from $1.8 to $15 million a month.

Pentecost’s top tips on creating a plan for success include:

  • Be an innovator, willing to take risks.
  • Don’t just be better, be different.
  • Let tools tell your story.
  • Make a plan.
  • Brand your plan.
  • Stay the course.

And of course, attend VPU: The ticket isn’t just free, it’s priceless.

Filed Under: Daily News Tagged With: Organo Gold

Amway Invests $180M to Meet NUTRLITE Demand

June 1, 2012 by DSN Staff Leave a Comment

AmwayAmway is investing nearly $180 million to significantly expand U.S. manufacturing and processing capacity to meet growing global demand for its top-selling NUTRILITE™ brand of vitamin, mineral and dietary supplements.

The investment includes a new $81 million nutrition plant at the company’s Spaulding Avenue site in Ada, Michigan, near Amway World Headquarters. The new plant is expected to create 200 jobs over the next three years.

The Michigan Economic Development Corporation (MEDC) approved a $1.6 million Michigan Business Development Program incentive from the Michigan Strategic Fund (MSF) to support construction of the nutrition products manufacturing facility for Access Business Group LLC, an affiliate of Amway.

The incentive played a key role for Amway in selecting Michigan over competing sites in other states. Amway, MEDC and The Right Place worked together to bring the project to Michigan.

“NUTRILITE is integral to the future of Amway as the world’s number one selling vitamins and dietary supplements brand,” said Amway Chairman Steve Van Andel and President Doug DeVos in a joint statement. “By bringing a second nutrition product manufacturing plant to our home market of Michigan, we are helping our distributors meet the growing customer demand for our NUTRILITE brand products. We are pleased to work in partnership with the MEDC and The Right Place in bringing this investment to West Michigan. This type of collaboration is critical in driving long-term business growth across the state.”

To view the full article, click here.

Filed Under: Daily News

LR Health & Beauty, Bruce Willis Extend Contract

May 30, 2012 by DSN Staff Leave a Comment

LR​German cosmetics manufacturer LR Health & Beauty Systems, based in Westphalia, announced that it has extended its perfume marketing contract with Hollywood superstar Bruce Willis for another three years.

Launched in June 2010, the cosmetic range with the unrivalled “fragrance hero” has been extremely successful from the onset. LR sold over 150,000 products in the first few months following the launch. Now the exclusive marketing contract between the global player from Germany and the famous American action hero has been prematurely extended until 2016.

“I am aware that the Bruce Willis brand is in good hands with LR,” said Willis. “The team is extremely professional: Made in Germany, one could say! They put their heart and soul into our joint development projects. Last but not least, the involvement of my wife Emma has made the partnership with LR almost a ‘family business.’ I look forward to our further collaboration in the coming years.”

Dr. Jens Abend, CEO of LR Health & Beauty Systems, elaborated on his company’s commitment: “For us, working together with top-class celebrities is a decisive factor of the company. Top quality together with international and uncompromising standards is of paramount importance to us. As one of the leading European suppliers of top-quality health and beauty products in direct sales, our partnership with world star Bruce Willis represents a milestone in the international business of star fragrances and cosmetics.  This has been recognized by several nominations and awards. Moreover, the existing range has already been extended after a short time by the new and successful women’s fragrance ‘Lovingly’ by Bruce Willis. Therefore, the extension for the contract is all the more important. We are very delighted.”

For more information on LR Health & Beauty Systems, visit www.lrworld.com/en.

Filed Under: Daily News Tagged With: LR Health & Beauty

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