Direct Selling Industry in Wall Street Journal

1
The UlTi maTe

Social BuSineSS Model
A Special Supplement to The Wall Street Journal by Direct Selling News
In 2010, direct selling
companies generated over
$125 billion in revenue in
150countries through more
than 75 million men and
women who are changing
lives servingothers.This is
the story of direct selling.
Why Now
Is Prime
Time for
Direct
Selling
From March 2009
to May 2011, the
top 7 publicly
traded direct
selling companies
averaged a 268
percent increase in
stock price.
INSIDE: DSN Global 100 Listing of the Top Direct Selling Companies in the World
2
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ServingtheDirectSellingandNetworkMarketingExecutiveSince2004
ASUCCESSPartnerCompany
Contents
COVER STORY
4
The Ultimate Social
Business Model
byKatherinePonder
Directsellingistheoriginalsocial
networkingbusinessandnow
isprimetimefordirect sellers.
8
Solution to a Shrinking Job
Market
byJ.M.Emmert
World-renownedeconomist,
professorandbest-selling
authorPaulZanePilzeroffersa
perspectiveonthedirectselling
industrysroleintodays economy.
FINANCE
10
Making Dollars
andSense
byEmmaJohnson
Directsellingmakesalotof
sense,notonlyfortheindividuals
worldwidewhomakealiving
sellingproductsfromtheirhome-
basedbusinesses,butalsofor
savvyinvestorstheworldover.
11
Top Publicly Held Direct
Sellers Achieve Record
Sales and Proftability
byTimBlackwell
Morethanhalfofthetop12public
companiesthatselldirecthave
outperformedtheaveragestock
returnbyimpressivemargins
sincethemarketdippedtoitslow
inearly2009.
13
Jefferies Report
byDouglasM.Lane
Thedirectsellingmodelis
uniquelywell-positionedinthe
currentinvestmentenvironment.
INTERNATIONAL
14
A Truly Global Channel
byKatherinePonder
Directsellingisaglobal
phenomenon.Therearenow20
countriesthatarebillion-dollar
marketsfordirectselling.
TECHNOLOGY
18
Speed, Power, Reach
byTeresaDay
Technologicaladvancesinmobile
devicesandapps,aswellas
insocialmediatools,serveto
increasethespeed,powerand
reachofwhatsalreadyutilizedin
thedirectsellingmodel.
INDUSTRY
22
Megawatt Returns
forEnergy Providers
byJenniferL.Mills
Deregulationinseveralstates
hasopenedupcompetitionfor
theretailportionoftheenergy
business.Andthatswheredirect
salescompaniesarestepping
inandchangingthe game.
24
Of the People, by the
People, for the People
byTeresaDay
Thebusinessmodelthrives
whenthosewhoparticipatebuild
businessesandsharewithothers
howthey,too,candothesame
thing,creatingapositivesocial
andeconomicimpactonfamilies
andcommunities.
27
The Heart of Direct
Selling: The Home
byBarbaraSeale&John Fleming
Whatstheidealhome-based
business?Morethan15million
Americansthinkitsdirectselling.
Theyrepresentthehundredsof
U.S.directsellingbusinesses,
creatingasignifcantsocialand
economic impact.
29
Direct Selling News
byDSNStaff
Whetherprovidingreaderswith
valuableinformation,offeringa
forumforexecutivestoshare
ideasorproflingcompanies,
DSNisthejournalisticresource
coveringthedirectsellingwayof
doingbusiness.
31
DSNGlobal 100
byDSNStaff
DirectSellingNewspresents
itsGlobal100,theonly
comprehensivelistofthetop
100 revenue-grossingdirect
sellingcompaniesintheworld
for 2010.
As the trade publication for our vibrant industry, each month we bring you the latest news and information
about the companies and the people who lead them.
For more information, email advertising@directsellingnews.com or call 940-497-9775 | www.directsellingnews.com | 800-279-5249
Serving the Direct Selling and Network Marketing Executive
Reach the Industry
Through our multiple advertising platforms, we are
the best way to build name and brand recognition
and to market your products and services directly
to decision-makers.
Learn the Industry
Subscribe to Direct Selling News,
a trade publication for industry
executives and decision-makers.
Founder&CEO
Stuart P. Johnson
PublisherandEditorinChief
John Fleming
jfeming@directsellingnews.com
ManagingEditor
Judith emmert
editor@directsellingnews.com
Editors
Jennifer l. Mills
Teresa day
CreativeDirector
carl Waters
ProductionManager
alan dwelle
ProductionArtist
Karla M. Garcia
CopyEditor
Peter Tepp
Contributors
Tim Blackwell
emma Johnson
douglas lane
Katherine Ponder
Barbara Seale
AdvertisingManager
Jerry Reagan
jreagan@directsellingnews.com
Operations
Steve norton
Direct Selling News
200SwisherRoadLakeDallas, Texas75065
Phone: 800-279-5249Fax: 940-497-9988
www.directsellingnews.com
2011DirectSellingNews.Allrightsreserved.
4
Direct selling is the original social
networking business. Long before
we even knew what a computer was,
people were getting together for fun,
socializing and shopping. Add in
technological power and globalization,
and youve got a winning formula.
Model Advantages
Whether a company is working
in a mature market or an emerging
one, the direct selling model
has many advantages. In mature
markets, the existing infrastructure
and high technology saturation
makeinteracting with customers
extremely easy. Advancements in
mobile devices and apps, as well as
in social media tools, simply increase
the reach of this socially driven
model. Far-fung friends and family
are now easily included in a tight
circle, and new friends across the
nation and world are made through
commoninterests.
In an emerging market such
asChina, having scores of
salespeopleworking directly with
friends and family to make the
personal pitch just reaches back in
time. Te direct selling model is over
150 years old; it has never needed
technology to be successful. A social
network and a good product is all that
is necessary. Additionally, the social
connections put you far ahead of
the competitors who either cant get
product on the shelves or are pushed
into obscurity. And those competitors
dont have a constant line straight to
their customers to gauge demand
andfeedback.
Products and services delivered
directly to customers through
personalized presentations that are
ofen educational, entertaining and
certainly social have enabled direct
selling to thrive for decades even
through recessions, including this
latest one. Te efect holds true no
matter what the category as direct
selling companies represent virtually
all goods and services customers
want and need. Te DSN Global
100 list of the top revenue-grossing
direct selling companies in the world
represents $66 billion in revenue for
2010, proof that this social business
model has economic power.
Te products and services sold
by these companies range across
such diverse categories as cosmetics,
fnancial planning services, home
decorating, home improvement and
solutions, energy services, personal-
care, health and wellness, apparel and
accessories, legal services and fne
wines. Each company on the list had
to have reached $80 million in 2010
revenue just to be listed.
Analysts have noticed some of
the advantages of direct selling.
Doug Lane is Managing Director
at Jeferies, a full-service securities
and investment banking frm that
was recently ranked No. 1 in U.S.
stock picking by the Financial Times
/ StarMine Research Analysis. He
thinks that direct selling companies
are successful because they have
strong top-line growth driven by
outsized exposure to the rapidly
growing emerging markets;
relatively high gross margins to
bufer against the recent dramatic
rise in commodity cost infation;
and ownership of the distribution
channel and the tendency towards
premium priced products that enable
the direct sellers pricing power over
traditional retail. Lane goes on to
explain that direct selling companies
ofen have under-leveraged balance
sheets and large free cash fows,
which tend to put the direct selling
business model on particularly strong
fnancialfooting.
Jim Cramer, host of investment
show Mad Money, has caught on
as well. Te direct selling model is
going great guns, he said, noting it
could be the best way to sell goods in
the TirdWorld.
The Ultimate Social Business Model
by Katherine Ponder
continued on page 6
Cover Story
5
This is the company
that puts mascara on lashes and food on tables,
that fights wrinkles with one hand and Breast Cancer
with the other. That knows the value of a perfect lip,
but still opens its mouth and speaks out against
Domestic Violence and for womens financial independence.
This is the company that not only brings beauty to doors,
but also opens them. The company that supports 6.5 million
Representatives in over 100 countries. This is Avon.
The company that for 125 years has stood for beauty,
innovation, optimism and above all for women.
avoncompany.com
6
Attracting Attention
andInvestors
Within the DSN Global 100 list, thetop 10
companies contributed $39billion to the global
economy in 2010. Te company at the top of
this listAvon, the 125-year old brand known
in virtually every household, which generated
$10.9 billion of that numberis publicly held,
as are fve additional companies on the top
10 list. Amway, privately held and another
household name, secured the No. 2 spot on the
list at $9.2 billion in sales. Other familiar names
on the top 10 list include Herbalife (public),
Mary Kay (private) and Tupperware (public).
Vorwerk (private) is a household name in
Europe and is the parent company of United
States company JAFRA. Te list rounds out
with additional companies Natura (public),
Orifame (public), Forever Living Products
(private) and Nu Skin (public).
Clearly, the economic impact of direct selling
companies for the United States and for the
world simply cannot be overlooked or swept
under the rug. Scott Van Winkle, CFA, is a
Research Analyst at Canaccord Genuity, known
for serving institutional and corporate clients
through investment banking, research, sales
and trading services. Van Winkle covers direct
sellers Herbalife, Nu Skin Enterprises, USANA
Health Sciences and Medifast. He says, I think
there is fnally broad confdence in the direct
selling model in the private equity community.
Interest overall does appear to be growing.
Financial advisors and investors both are
seeing direct selling companies with new eyes,
focusing on the efcient business model, rapid
growth, and generally low on-going capital
investment afer the initial surge. Van Winkle
says, I dont go a week now without getting a
phone call from a private equity frm looking
at a direct selling asset, and that was just
nonexistent 5 years ago.
It appears that wise investors are getting
in now. Sequoia Capital investors bought
into jewelry and accessories direct seller
Prime Time for Direct Selling
continued from page 4
Te direct selling industrys
top seven public companies,
based on Direct SellingNews
Global 100 ranking,
accounted for $23.9 billion
in revenue for 2010.
Avon Products Inc.
Country:USA
2010Rank:1
2010Revenue:$10.9billion
Avonisthefounderofmoderndirect
sellingandtheacknowledgedworld
leaderincosmetics,fragrancesand
toiletries.Avonswell-knownproduct
linesincludeAvonColor,Anew,SkinSo
Soft,AdvanceTechniquesHairCare,
AvonNaturalsandmark.
Markets:100+
Distributors:6.5million
Employees:42,000
Headquarters:NewYork,N.Y.
CEO:AndreaJung
YearFounded:1886
StockSymbol:AVPNYSE
Natura Cosmeticos SA
Country:Brazil
2010Rank:3
2010Revenue:$3billion
Naturaisacosmeticsgiantwith
morethan900products.The
companyoperatesinArgentina,
Chile,Peru,Mexico,France,
VenezuelaandColombia.Corporate
socialresponsibilityisoneofits
core emphases.
Markets:7
Distributors:1million
Employees:5,000+
Headquarters:SoPaulo,Brazil
CEO:AlessandroG.Carlucci
YearFounded:1969
StockSymbol:NATU3.SASoPaulo
Herbalife Ltd.
Country:USA
2010Rank:5
Herbalifesellsnutritionalsupplements
andweight-managementandpersonal-
careproducts.Itsproductshavebeen
developedbyscientists,physicians
andnutritionexperts,including
NobellaureateinmedicineLouis
Ignarro, Ph.D.
Markets:75
Employees:4,300
Headquarters:LosAngeles,Calif.
CEO:MichaelO.Johnson
YearFounded:1980
StockSymbol:HLFNYSE
Public
Companies:
The Big 7
7
Stella & Dot for $37 million (10 percent of
ownership) last January, certain that it had
pursued a winner. Sequoia Capital is a Silicon
Valley venture capitalization frm that is estimated
to control as much as 14 percent of the value
on NASDAQ.Sequoia rarely sees a business
built so strong, with such little capital, says
Sequoiapartner Alfred Lin, who more recently
added: We wanted to become business partners
with Stella & Dot because it was a great business
run by a very special founder and entrepreneur,
Jessica Herrin.
Blyth, Inc. also found value in direct sellers
PartyLite and ViSalus. PartyLite was doing
$7 million in sales when Blyth acquired it
in 1990, andits over $500 million in annual
revenue today, recounts Robert B. Goergen Jr.,
President of Blyth.ViSalus, a relatively young
company, is currently experiencing rapid sales
growth. We embrace a portfolio approach, with
non-competitive products and companies in
diferentstages of development across multiple
geographies. Indeed, PartyLite sells premium
candles and home fragrance products, and
ViSalussells weight management and health
products. Blyths strategy for investing in various
direct selling companies has proven very
successfulfor them.
Traditionally, private equity frms make
a material investment into a business and
within 5years either take it public or sell it.
Investmentindirect selling companies has brought
about a new exit strategy for some private equity
frms, according to Van Winkle. He says, Weve
seen direct selling companies turn around and
takeouttheir private equity investors with cash
fow. Tats a whole newmodel for private equity
that the assettheyve acquired could ultimately
buyitselfout.
Van Winkle and others know the time is right.
Many of the innovative investors are reaping
rewards for acting upon their confdence in
the direct selling industry. Others are just now
seeingthe value, but the opportunity is still available
to be part of this successful sales model.
Tupperware Brands Corp.
Country:USA
2010Rank:7
Tupperwareisaglobaldirectsellerof
innovativepremiumproducts,including
design-centricpreparation,storageand
servingsolutionsforthekitchenandhome
throughtheTupperwarebrand,andbeauty
andpersonal-careproductsthroughArmand
Dupree,AvroyShlain,BeautiControl,Fuller,
NaturCare,NutrimeticsandNuvo.
Markets:Nearly100
Employees:13,500
Headquarters:Orlando,Fla.
CEO:RickGoings
YearFounded:1946
StockSymbol:TUPNYSE
Orifame Cosmetics S.A.
Country:Sweden
2010Rank:8
Orifameisabeautycompanyoffering
cosmetics,fragrancesandpersonal-care,
skin-care,hair-careandwellnessproducts.
Thecompanyoperatesin62countriesandis
themarketleaderinmorethanhalf.Orifame
hasapresenceinMexico,CentralAmerica,
SouthAmerica,Europe,AsiaandAfrica.
Markets:62
Employees:8,000
Headquarters:Luxembourg,Luxembourg
CEO:MagnusBrnnstrm
YearFounded:1967
StockSymbol:ORI-SDBStockholm
Nu Skin Enterprises Inc.
Country:USA
2010Rank:10
NuSkinEnterprisesInc.isaglobaldirect
sellingcompanyoperatingin48international
marketsthroughouttheAmericas,Europe
andtheAsia-Pacifcregion.Goingfarbeyond
cosmetics,toiletriesandfragrances,NuSkin
sellsmorethan200productsthroughthree
distinctbrands:NuSkin,Pharmanexand
Big Planet.
Markets:51
Distributors:800,000
Employees:1,200
Headquarters:Provo,Utah
CEO:TrumanHunt
YearFounded:1984
StockSymbol:NUSNYSE
Primerica Inc.
Country:USA
2010Rank:11
Primericaprovidesfnancialproductsand
services,includingtermlifeinsurance,mutual
funds,variableannuities,loans,long-term
careinsuranceandlegalservicesto6million
clients,primarilymiddle-classindividuals
and families.
Markets:5
Distributors:100,000
Employees:2,000
Headquarters:Duluth,Ga.
CEOs:JohnAddisonandRickWilliams
YearFounded:1977
StockSymbol:PRINYSE
From March 2009 to May 2011, the top 7 publicly traded direct selling companies
averaged a 268 percent increase in stock price. DSN
8
Solution to a Shrinking
Job Market
P
rofessorPaulZanePilzerhaskeptawatchfuleyeonthedirectselling
industryformorethan30years.Inthe1990s,therenownedeconomist
whoservedintwoWhiteHouseadministrationspredictedthatnetwork
marketerswouldhelpmakethethen-emerging$200-billionhealthandwellness
channelthenexttrillion-dollarindustry.Thesuccessofcompaniessuchas
Herbalife,Medifast,Monavie,Amway,NuSkin,USANAandBlytharehelpingto
confrmPilzerstheory.
Asthecurrenteconomiccrisiscontinuestotakeatollonpeoplearound
theworldandunemploymentratessteadilyrise,directsellingmaybethe
answertoashrinkingjobmarket.Pilzerwarnsthattoomanypeopletodaysee
unemploymentaspartoftheeconomiccyclethatwhentheeconomyrecovers,
employmentwillnaturallygoup.
However,unemploymentisnotamacro-economicproblem,hesays.Itisa
micro-economicissue,typicallyrelatedtoaskilldefciencyonanindividuallevel.
Thequestionliesnotineconomicrecoverybutemploymentrecovery,says
Pilzer,whohaswrittenninebestsellers.Wehaveamassivesocialproblem.
Whatarewegoingtodowith30millionpeoplewhoarenowpermanently
unemployed?TheNo.1socialneedintheUnitedStatesrightnowhasnothingto
dowiththeeconomy.
Therealchallengeistoreplacelostjobswithnewearningsopportunitiesand
providemuch-neededtraining.ThejobsthatbabyboomersandGenXerstrained
foryearsagohavedisappeared.Technologyhasreplacedmillionsofworkersand
demandednewskillsthattoomanyolderAmericansjustdont have.
Insteadoffocusingonnewmethodsoftraining,ourpoliticiansandnews
mediaarelookingatunemploymentandtheeconomicrecoveryaslinkedand
theyarenotbecausemostoftheunemployedpeopletodayareskills-defcient.
Iftheyareover50yearsold,theyprobablydonttouch-typeore-mail,andthat
doesntworkintodayseconomy.
Sowhathappenstothosedisplacedworkers?Directsellingmayhave
theanswer.Thedirectsellingbusinessmodelhasalwayshadacompetitive
advantageinthetrainingthatitoffers,bothinbusinessandpersonalskills.It
allowspeopletoberetrainedwhiletheypursuesomethingnew.Itgivespeople
anopportunitywhennooneelsewill.
Thebiggestneedineverysectoroftheeconomy,saysPilzer,isintellectual
distributionthedisseminationofinformationaboutproductsandservices.We
haveahugebacklogofbetterproductsandservicesthatpeoplearentbuying
becausetheydontknowaboutthem.Directsellingisthemosteffcientmethod
forthedistributionofintellectualinformationthatwillimproveyourlife.Itisthe
idealmodelthatallowsanyonetoreachout.
Directsellingofferspeopletheskillsandtoolstocreatenewincome
opportunitiestoventureoutontheirownasentrepreneursandgrowin
confdenceversusbeingconsumedbythefearassociatedwithashrinkingjob
market.Technologyisavailabletoeveryoneathomeandisevenbetterthan
whatyoucangetinalargecompany,saysPilzer.Whenweexaminethe
workplace,weoftenfndoutdatedcomputersanddatamanagementsystems.
However,thebesttoolsandsupportneededtorunahome-basedbusinessare
nowavailabletoindividualsatanaffordablecost.Thismakesahome-based
businessandadirectsellingopportunity,inparticularveryappealing.
by J.M. emmert
an inTeRvieW WiTh Paul Zane PilZeR
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10
J
eferies analyst Doug Lane has long been a
champion of the sector, which relies on its
salespeople to market the product, mostly
to their local community. Lane has told
investors that the modelalso referred
to as network marketingcontinued to thrive
throughout the recession in part because it ofers
the unemployed an easy, low-risk way to be in
business for themselves, and that it also capitalizes
on the fact that consumers prefer to buy products
from people they know and like.
Te direct selling business model is also proving
to be a bonanza in developing countries. Growth
potential is huge because as these economies
expand, their appetites for consumer goods grow
and previously underemployed womenwho
have historically been the foundation of many
direct sales organizationsare prospering, thanks
to newfound economic opportunities. Te most
recent fgures show that within the $125 billion
global direct sales industry, a mere $28.3 billion
came from the United States, while $49 billion
came from the Asia-Pacifc region, and Latin
American sales reached $18 billion. Te sectors
growth leaders were also in the developing world;
India joined the list of billion-dollar nations,
generating $1.06 billion in revenue for 2009. China
saw 2009 sales increase nearly $3 billion, and
Russia, though it experienced a somewhat modest
gain of $200 million, still moved up to No. 9 in the
DSN ranking of the top billion-dollar markets in
the world, with $3.06 billion in 2009 sales.
One reason investors love these companies
is that they have low overhead. Tere are few
retail expenses, since the products are sold out
of salespeoples homes, and
marketing and advertising
expenditures are minimal. It
turns out [direct selling] may
be the best way to sell goods in
the developing world, where
people listen to testimonials
not advertisements and retail
salespeople, Jim Cramer told
his audience.
Other leading investors
are nabbing opportunities
to proftfrom network
marketing.Warren Bufett
has been a proponent of the
model since scooping up
Te Pampered Chef in 2002,
callingit one of the best
investments hed ever made; he
subsequently invested in seven
more direct sales companies.
Even British mogul Richard Branson launched
a direct sales cosmetics frmnow called Vie at
Homewhich he sold to direct sales investor
Helmut Spikker lastyear.
In 2002, private equity frm Whitney & Co.
invested $700 million in supplement giant
Herbalife. Te investment made by Sequoia
Capital into Stella & Dot in January of this year is
certainly an example of how investors are looking
diferently at direct selling companies and their
leadership. Also earlier this year, Pre-Paid Legal
Services agreed to sell to private equity frm
MidOcean Partners for $650 million in cash; the
deal is expected to close by the time we go to press.
One of the most eye-opening events for investors
was last years IPO of direct sales fnancial services
company Primerica. Its impressive opening-day
performance on April 1, 2010, lef investorswho
were oversubscribed by 21 timesconfdent about
Primericas competitive advantage in the insurance
and asset-management industry. Primerica closed
at $19.65 the frst day30 percent more than its
initial public ofering price of $15afer its market
debut. Its strong performance made it one of the
top-performing IPOs for the year.
Afer years of skepticism, the investment
community is fnally waking up to the viability of
direct selling as a good investment opportunity,
says Lane. Teyve become true believers.
Mad Money market guru Jim Cramer recently
told his CNBC viewers: Direct selling has never
gotten its due from Wall Street. Its time we
recognize that the direct sales model works,
and it works well. There is little question why
fnancial notables like Cramer, Warren Buffett,
Ray Chambers and Suze Orman have touted
businesses based on direct selling.
After years of skepticism, the
investment community isfnally waking
up to the viability of direct selling as a
good investment opportunity.
Doug Lane
Making Dollars and Sense by emma Johnson
11
S
incethemarketcrashonMarch9,
2009,themajorindiceshavesteadily
reboundedwith95percentgrowth,
butsomedirectsellingcompaniesare
experiencingenviablepriceincreasesonAmerican
andforeignexchanges.Manyofthetopdirect
sellingcompanieshaveachievedrecordsales
andproftabilityandmostappeartohave
lastingfscalmomentuminanimproving
economy.Stockpercentagegrowthfor
HerbalifeLtd.(HLFNYSE),Tupperware
BrandsCorp.(TUPNYSE),NuSkin
Enterprises(NUSNYSE)andMedifastInc.
(MEDNYSE)soaredashighasthreeto
seventimestheaveragegainoftheS&P
500andDowJonesIndustrialAverageby
earlyMay 2011.
Herbalifesharesclimbed764percent
from$12.28to$106.15beforethe
companysboardofdirectorsapproved
atwo-for-onesplitinMay.Furthermore,
thecompanyraiseditsdividendby60
percent,representinga20-cents-per-share
post-splitquarterlydividend.Theglobal
nutritionalcompanyssalesincreased
17.3percentfrom$2.3billionin2009to
$2.7billionin2010,withnetincomeof
$297million.Herbalifetoppedthatwitharecord
frstquarter2011,whichincludesa28.5percent
increaseinsalesand$26.8millionimprovement
onadjustednet income.
Atthecompanysfrst-quarterconferencecall,
ChairmanandCEOMichaelO.Johnsonattributed
thecompanysgrowthtoanimproveddistributor
retentionrateof48.9percent,up20.7percent
from2002.Inanefforttobroadenfutureearnings,
heannouncedthereleaseofthecompanysnew
Herbalife24sportsproductline,whichisdesigned
tomeethigh-endnutritionalneedsforathletes.
TwoyearsagoTupperwaresstockhovered
around$11.00pershare,butan8percentincrease
inannualsalesto$2.3billionin2010,plusa15
percentimprovementtothebottomlinehelpedlift
thesharepriceabove$64a457percentgain.
Theglobaldirectsellerofstorageandserving
solutionsaswellasbeautyandpersonal-care
productsexperienceddouble-digitsalesincreases
inthefrstquarter2011fromitsemerging
marketsinBrazil,India,Indonesia,Malaysia/
Singapore,thePhilippines,TurkeyandVenezuela.
Tupperwaresadjusteddilutedshareearningsfor
thefrstquarterofthisyearwere14centsbetter
thanforthesameperiodin2010,includinga
positiveforeigncurrencyimpactof4 cents.
NuSkinsstockhasshotup364percent
from$8.04persharetomorethan$37after
recordsalesandproftsin 2010.Thecompany
increased revenue15percentover2009to
$1.5 billion,culminatingthreeconsecutive
years of record-breakingrevenue.Thefourth
quarterwasthecompanysfrstever$400 million
revenuequarter,markingearly
achievementofafve-yearplanthatbegan
in2007todoubleNuSkinsearningsto
$2 pershareofstock.The companyis
now planningtodoubleits earningsto$4
pershareby2015.
Medifastsstockhasbeenonits
ownfast-tracktothetop,soaringfrom
$4.42 asharetwoyearsagoto$20.39
inearlyMay.Astreakof45consecutive
proftablequartershasstrengthenedthe
sellerofweightandhealthmanagement
consumables;thecompanyhadrecord
revenuesof$257.6millionandimproved
proftsby73percentlastyear.Medifast,
theparentcompanyofTakeShapefor
Life,wasnamedNo.1onAmericas100
BestSmallCompanieslistbyForbes
magazinefor2010.
ThestockperformancesofBlyth
Inc.,Natura/Brazil,USANAHealthSciences,
Avon and NaturesSunshineallexceededS&P
500and DowJonesaveragesforthepast
two years.
Salesincreases,netincomeimprovements
andgainsforthetoppubliclyhelddirectselling
companiesmaybeanindicationofpromising
growthforanentireindustry,especiallyfor
thosewhoincludeemergingmarketsintheir
strategic plan.
Top Publicly Held Direct Sellers Achieve
RecordSales and Proftability
Thetwo-yearreboundinthestockmarkethasmanyinvestorssmilingagain,
especiallythosewhohaveputtheirmoneyindirectsellingcompanies.Manyofthetop
12publiccompaniesthatselldirecthaveoutperformedtheaveragestockreturnby
impressivemarginssincethemarketdippedtoitslowinearly2009.
by Tim Blackwell
12
coMPany SyMBol
PRice
3/9/2009
PRice
5/9/2011
PeRcenT
incReaSe
herbalife ltd. HLF $12.28 $106.15* 764%
Tupperware Brands corp. TUP $11.61 $64.77 457%
nu Skin enterprises NUS $8.04 $37.31 364%
Medifast inc./Take Shape for life MED $4.42 $20.39 361%
Blyth inc. BTH $16.12 $44.48 175%
natures Sunshine NATR $5.26
$11.59 120%
natura cosmeticos (Brazil) NATU3 $19.85 $43.00 116%
uSana health Sciences inc. USNA $19.09 $37.71 97%
avon Products inc. AVP $15.20 $29.15 91%
orifame (Sweden) ORI-SDB $216.00 $360.00 66%
Telecom Plus Plc (uK) TEP $330.25 $475.25 43%
Primerica inc. PRI $19.65
$22.30 13%
Marketcapabove$100million.
*Stockspliton5/18/2011at$103.86.Pricerefectedinchartispresplit.
Basedon13-monthperiodfrominitialpublicofferingonApril1,2010.
PercentincreaserefectsstartdateofJuly1,2009.
Top Publicly held direct Selling companies
Stock Performance 20092011

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13
The direct selling business model is one that can
level the playing feld and close the gap between
the haves and have-nots.
Ray chaMBeRS, Entrepreneur, Philanthropist
andHumanitarian

The partnership with Avon is a logical and natural
extension of everything I believe in. I am confdent
we can make a huge difference toward the goal
of empowering women and helping them achieve
their fnancial hopes anddreams.
SuZe oRMan, Internationally Acclaimed Personal
FinanceExpert
Direct selling is actually one of the oldest, most
respected business models in the world and has
stood the test of time.
donald TRuMP, Billionaire Businessman
One reason I have such strong respect for
network marketing is that it is a genuine equal-
opportunity business. Network marketing casts a
very wide net. When you look closely at the more
than 60 million people worldwide who are engaged
in the business, youll fnd people of every color
and creed, every age group, and every level of
background, experience andskill.
RoBeRT T. KiyoSaKi, author of Rich Dad Poor Dad and
TheBusiness of the 21stCentury
What is the one bright spot on the entire horizon
that would give someone an opportunity to be
retrained to learn new skills? Direct selling.
Paul Zane PilZeR, World-Renowned Economist and
Best- Selling Author of The Next Millionaires
The rapid growth dynamics both in terms of
consumers purchasing products and associates
participating as direct sellers is driving strong
interest from private equity groups and strategic
acquirers in direct selling companies.
loRin deMoRdaunT, Managing Director, McColl Partners
Network marketing has come of age.
Its undeniable that it has become a way to
entrepreneurship and independence for millions
ofpeople.
STePhen covey, Author of The Seven Habits of Highly
Effective People
This country was founded on entrepreneurialism
and we are returning to it. The future of
employment is self-employment. Direct selling is
one of the few business opportunities that offers
average people, with above average ambition to
achieve an above average lifestyle, peace of mind
and fnancialsecurity.
daRRen haRdy, Publisher of SUCCESS Magazine
Strong top-line growth driven by
outsized exposure to the rapidly
growing emerging markets
AvonProducts,Herbalife,NuSkin
EnterprisesandTupperwareBrands
all derivemorethan75percent
oftheir revenuesfromoutsidethe
UnitedStates,withparticularlystrong
presences in theemergingmarkets
ofLatin America,EasternEuropeand
Asia.We thinkAvonisstrategicallywell
positionedwithitsiconicglobalbrand
and byhavingapproximately70percentof
itsproftscomefromtheattractiveemerging
marketsofLatinAmericaandEastern
Europe,wheretheCosmetics,Fragrances
andToiletries(CFT)industryis growing
atabove-averageratesanddirectselling
hasbeengainingmarketshare.Organic
salesgrowth,strippingaway theimpactof
foreigncurrencytranslationandacquisition,
hasbeenespeciallystrongforHerbalife,
USANAandNuSkin.Inthefrstquarter
2011,Herbalifewasupnearly25percent.
USANAhasgrownlocalcurrencysaleson
averageinthelowteensdatingbacktothe
frstquarter2010,andNuSkinalsogrew
doubledigitsthroughout2010.Conversely,
ourlargertraditionalpackagedgoods
companieshavestruggledtogeneratemore
thanlowsingle-digitorganicgrowthof late.
Relatively high gross margins to
buffer against the recent dramatic
rise in commodity cost infation
Whileinputcostinfationhasbeenfrontof
mindformanyinvestorsoflate,ourdirect
sellingcompanieshaveactuallybeen
deliveringgrossmarginexpansion.Infact,
USANAhashadfatorhighergrossmargins
sevenquartersinarow,whileNuSkinhas
sixinarowandHerbalifefour.Conversely,
ourtraditionalpackagedgoodscoveragehas
averagedgrossmargincontractionthepast
three quarters.
ownership of the distribution
channel and the tendency toward
premium-priced products
Thisgivesthedirectsellerspricingpower
thattendstobemoreofastruggleformost
traditionalpackage-goodscompaniesthat
havetosellthroughbig-boxretailers.
under-leveraged balance sheets and
large free cash fows
Bothtendtoputthedirectsellingbusiness
modelonparticularlystrongfnancialfooting.
Notably,Herbalife,NuSkin,Tupperwareand
USANAhaveadoptedamoreaggressive
approachtodividendincreasesand/orshare
repurchases,suchthattheircashreturned
toshareholdersisonparwithorbetter
thanmostoftheirpeersinthetraditional
packagedgoods universe.
Jefferies Report
Direct Selling
WellPositioned
Thekeyattributesthatwebelieveuniquely
beneftdirectsellersinthecurrentinvestment
environment are:
by douglas M. lane
Douglas M. Lane is Managing Director of Equity Research for Jeferies & Company, Inc.
14
3. Brazil$13.5 billion
Te national DSA, Associacao
Brasileira de Empresas de Vendas
Diretas (ABEVD), remains bullish
on its members performance.
Te ABEVD, which has 48 direct
sellingmembers, reported a sales
increase of 18.4 percent from 2008
to 2009. In a year of adversity for
most sectors of the economy, the
direct sales opportunity generated
income for 2.3 million people.
4. China$10.9 billion
China continues to be a tantalizing
yet elusive market for direct
selling companies. Its sales in the
industry grew by almost $3 billion
between 2008 and 2009, proving
that companies are operating
successfully within its borders.
Many are founded in China; yet for
multinational companies, the market
remains a challenge. All eyes are on
the explosive growth in China, with
analysts taking bets on when it will
surpass the United States and Japan.
A Truly Global Channel
Te following is a special report from Direct Selling News. Te article, which is based on statistics
reported by the World Federation of Direct Selling Associations (WFDSA), interviews with local
Direct Selling Associations (DSAs) and third-party reporting, tells the story of the cumulative
impact of the direct selling way of doing business in key markets around the world.
by Katherine Ponder
1. United States$28.3 billion
With $28.3 billion in sales for
2009, U.S. direct selling was down
almost 4.4percent from 2008. U.S.
direct sales declined, but retailing
as a wholedeclined 7.3 percent over
the same period. Looking forward
to2011, analysts expect that those
who enteredthe direct selling
arena asa way to make up for lost
income will remain active even as
the economy recovers. Tat trend
willlikely lead tohigher sales for
theyear.
2. Japan$22.4 billion
Direct selling in Japan has
literallyhad its ups and downs
in recent years. Between 2006
(the previous reported timeframe
from WFDSA) and 2009, it lost
approximately $400 million in
sales.When youre the No. 2 nation
in theindustry, this looks relatively
small. But Japans economic
recessionhas been every bit as bad
as that in the United States, and
economic problemsbegan long
before2007.
Figures are year-end results for 2009; 2010 full data not yet available.
15
5. South Korea$7.84 billion
South Korea moved up one notch in
our international rankings by gaining
$840 million in sales in 2009, accordingto
WFDSA. Te industry hasapproximately
4 million distributors and 64 members
in the Korean DSA. Research shows that
one-sixth of the population has been
involved with direct selling at some
point in their lives.Indications for 2010
fnal sales fgures are thatSouth Korea
will hit $9 billion. Te 2011 forecast for
the industry is to parallel the national
economy by growing 4to 5percent.
6. Mexico$4.83 billion
Mexico rose one place in our annual list
by gaining approximately $430 million in
sales from 2008 to 2009. It was an increase
made even more remarkable because it
came during troubled economictimes.
TeAsociacion Mexicana de Ventas
Directas estimates that the 39 member
companies account for 85 percent of
the industrys sales in the country, with
growth of almost 6 percent from 2008
to2009.
7. Germany$3.76 billion
Germany is the largest direct selling
market in Europe. It has an afuent and
technologically advanced economya
large proportion of which is over 50
with high-disposal incomeand high
unemployment. Direct sellers in Germany
are 67 percent women, and 84 percent
sell through a personal sales method.
Te Bundesverband Direktvertrieb
Deutschland e.V, the oldest direct selling
agency in Germany, estimated turnover
of member companies fell slowly by 1.3
percent; however, in general the state of
direct selling in Germany is good, and
businesses are optimistic about the future.
Germany is by far still No. 1 in Europe
and in the top 10 world markets.
Its small, frivolous and delightfully chic. And yet, since 1967, it
has transformed the lives of millions through a unique business
concept: Make Money Today And Fulfl Your Dreams Tomorrow.

At Orifame, fulflling dreams is our heart and soul. Our mission
is simple: empower people to realise their full potential, fulfl
their dreams and lead a richer, more meaningful life. By selling
our beauty products, our 3.6 million consultants, in more than 60
countries, have the freedom to set their own targets, income and
working hours. There are no limits.

What we offer with a single lipstick can start out as a fun hobby
and develop into something truly great. Its your choice.
Never underestimate the power of a lipstick.
Not just a pretty face.
Market
estimated
2009 Sales
(uS$ in
billions)
2008 Sales
(uS$ in
billions)
no. Salespeople
(2009)
no. Salespeople
(2008)
1. united States 28.3 29.6 16,100,000 15,100,000
2. Japan
22.4 22.8
2,700,000 2,700,000
3. Brazil
13.5 10.0 2,377,336 2,028,098
4. china
10.9 8.00 notavailable notavailable
5. South Korea
7.84 7.00 3,987,933 3,089,158
6. Mexico
4.83 4.40 2,000,000 1,900,000
7. Germany
3.76 9.00
notavailable notavailable
8. italy
3.36 3.36 390,955 366,000
9. Russia
3.06 2.87 4,995,508 4,413,918
10. France
2.41 2.40
265,000 242,000
11. united Kingdom
2.1 3.56
400,000 419,500
12. Taiwan
1.7 1.64 4,442,000 4,111,000
13. Thailand
1.56 1.59 10,000,000 5,400,000
14. canada
1.3 1.18 644,455 608,000
15. colombia
1.26 1.50 900,000 867,000
16. australia
1.25 .844 500,000

17. argentina
1.15 1.17 731,122 714,000
18. Malaysia
1.13 1.03
4,000,000 4,000,000
19. venezuela
1.12 .887
565,000

20. india
1.06 .586 2,012,940

NOTE:AllfguresobtainedbytheWFDSA.
*Notrankedinour2010listashavingmorethanUS$1billioninsales.2006fgures2007fgures
Direct Sellings Billion-Dollar Markets
16
8. Italy$3.36 billion
Italy moved up in global rankings with an increase
of $3.36 million in sales while many nations
dropped. Te salesforce also grew, adding more
than30,000 people to the rolls. Both increases are in
stark contrast to thenational economy, which had
increasing unemployment and a 5 percent decrease
in economic growth for 2009.
9. Russia$3.06 billion
Russia increased its sales by $190 million,
earningit an advancement of one spot in the
rankings. Te falling U.S. dollar against the Russian
ruble made this change more pronounced, but
the industry showed its muscle by increasing even
as the national economy sufered through the
economiccrisis.
10. France$2.41 billion
Frances international rankings brought it up one
level as well, from No. 11 previously. French direct
sales stayed in the same $2.4 billion range from
2007(the last period reported through WFDSA)
to 2009, leaving it a winner for keeping up its pace
yearover year.
11. United Kingdom$2.1 billion
Our annual rankings saw the United Kingdom fall
from the No. 8 spot last year. WFDSA sales statistics
for the country show a decrease of more than half,
from $3.6 billion in 2007 (rankings last year were
based on 2007 data, as it was the last information
reported to the WFDSA) to $1.4 billion in 2009.
However, there seems to be a renewed optimism in
the United Kingdom, with people and businesses
stepping up to seize the opportunities that everyone
feels sure are coming.
12. Taiwan$1.7 billion
Taiwan moved up one spot by gaining $60
million in sales over the course of 2009. Tis was
great news for the country, marking a 9.2 percent
increase and the end of a three-year slide in sales.
Te Taiwan ROC Direct Selling Association notes
that distributor numbers were also up, increasing
8percent to 4.4million.
13. Thailand$1.56 billion
Despite having $30 million less in sales,
Tailandstill moved up two spaces on our
international list. Tese fgures include sales of
bothTai Direct Selling Association members and
non-members as well. Tere are 10 million people
selling through 590 companies, of which 29 are
TDSA members. Te Tai DSA believes that the
2010 fgures will show almost 12 million distributors
and a strong increase of 15 to 20 percentin
salesnumbers.
14. Canada$1.3 billion
World economic troubles challenged Canada
as well as much of the rest of the international
community. Sales declined 3.5 percent during 2009
as the recession took its toll. Ofcial numbers from
the Direct Sellers Association of Canada put 2009
sales at $1.3 billion, and estimates for 2010 numbers
show that the direct selling industry in Canada will
decrease 6.2 percent to $1.23 billion in 2011.
15. Colombia$1.26 billion
Colombias sales were down slightly from $1.5
billion in 2008, but it kept its spot on our list. Te
beauty and personal-care segments have dominated
this market. While the national economy grew only
0.8 percent in 2009, the beauty and personal-care
market grew 6 percent. Skin care registered nearly
double-digit growth, with anti-aging products
leading the way.
16. Australia$1.25 billion
Australia is new to the list this year. Te $1.25
billion is a substantialincrease over its $844 million
reported in 2008. Sales for 2010 are expected to
be strong but not huge. However, direct selling is
performing better than the rest of the retail world in
Australia. Salesforce numbers are also expected to
increase slightly, and leading categories continue to
be health care and personal goods.
17. Argentina$1.15 billion
Te industry in Argentina decreased enough to
bring them down one notch in our annual rankings.
Sales decreased nationallyby $20 million. Tis
is hardly surprising, considering that Argentina
had its own share of economic problems even
beforetheworldwide recession.
18. Malaysia$1.13 billion
Te direct selling industry in Malaysia is steadily
growing, enjoying the benefts of more companies
launching within its borders. Te Direct Selling
Association of Malaysia boasts 57 members and 4
million salesforce members.
19. Venezuela$1.12 billion
A newcomer to the $1 billion list, Venezuelais
counting its successes. From 2006 (the latest
numbers for WFDSA last year) to 2009, its collective
direct sales totals rose by more than $200 million.
20. India$1.06 billion
New to the list this year, Indias sales nearly doubled
from 2008 to 2009. Figures for 2010 are expectedto
show a 20 to 30 percent growth, according to Chavi
Hemanth, Secretary General of the Indian Direct
Selling Association. Forecasts call for the industry to
be at $1.5 million by 20122013.
A Main Street
Company
for Main Street
North America
Founded in 1977, Primerica is the
largest independent nancial services
marketing organization in North America.
The company, headquartered in Duluth,
GA, is a public company listed on the New
York Stock Exchange, trading under the
symbol PRI.
For more than 34 years, Primerica
has helped families get properly protect-
ed, debt free and nancially independent.
The Primerica business opportunity gives
people from all walks of life a chance to
live their dreams.
Primerica at a glance:
More than 4.3 million lives insured
through our life companies
More than 2 million clients maintain
investment accounts with us
Our clients have $35 billion in assets
under management through us
An average of $2.6 million in benet
claims paid every day
Greater than $656 billion life insur-
ance in force
www.primerica.com
17
We Mean
BUSINESS.
www.USANA.com
18
S
martphones, tablets, apps and social
networking tools have no doubt changed
the way the world connects. To direct
sellers, who have always shared their goods
and services with their social network
and the new customers and friends they have met
through existing ones, the rest of the world have
fnally caught up.
Radio reached an audience of 50 million in
38years. Television reached the same number
inonly13 years. Te Internet reached 50 million
inonly four years, iPods had 50 million users in
lessthan three years and Facebook had them
in only two. MySpace has over 200 million
registered users; Facebook added that many
users last year alone. In 1992, there were
an estimated 1 million Internet-capable
devices in use, and today that number
exceeds 1 billion. Simply put, current
technological advances in mobile devices
and apps, as well as in social media tools,
serve to increase the speed, power and
reach of whats already a competitive
advantage in the direct sellingmodel.
Prior to these tech advances in connecting
people, direct sellers were limited to physical
placesliterally going door-to-door, the party
at someones home, the meeting room at the local
hotel. Now, business can be conducted anywhere
and everywhere. Conversations about purchasing
product can be turned into a buying experience at
an accelerated level with a mobile device and an
appropriate app.
IT vendors are making quantum leaps in the
development of apps for the independent business
owner (IBOs) in direct selling for all aspects
of the business. IBOs can access their team
information and sign up new business owners on
the spot, wherever they happen to meet. Short,
interactive opportunity presentations, created
specifcally for smartphones and tablets, enable
independent business owners to hold a meeting
over cofee or anywhere people can engage in a
3-minuteconversation.
Stuart Johnson, Founder and CEO of
VideoPlus, which specializes in the refnement
and transmission of direct selling companies core
messages, says, Te fundamentals of the direct
selling model havent really changed in decades,
but the delivery of the message has changed
dramatically. In todays technologically driven
world, we can provide a focused, simple,
authentic and transparent message in less
than three minutes, and in some cases, in just
60seconds.
All of the current technologies allow
independent business owners to meet their
customers wherever their habits take them
and to integrate into that behavior. With
individuals busier than ever and used to having
access to information, as well as the ability to
connect using their mobile devices, meeting people
where they are is a critical component of any
businesstransaction.
Direct sellers have historically held a competitive edge over traditional retailers of goods and
services because of their skills in connecting with people, their personal ethics in business
dealings and in the automatic trust and respect generated when dealing with word-of-mouth
advertising through networking. After all, direct selling is the ultimate social business model,
and technology is now redefning perceptions of what thats all about.
Speed, Power, Reach
by Teresa day
continued on page 20
How Direct Sellers
Are Leveraging New
Technology
19
Obesity epidemic creates epic opportunity!!
One of the fastest-growing co. in direct
selling.
A solution to the recession?!
A new social business model?!
Hey, u heard about ViSalus?
6 yr old co. w/ 50% of top producers
under 40 yrs old. 3000% growth in last
18 months!
40,000 new customers a mo. 3000 incentive bmw's
on streets.
Co is giving away over $10M/year in
free product, prizes & vacations!
40,000 a month?
Heard what?
Edits Messages
TY!!!
Get the free report
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20
Mannatech
Pioneers
of Glyconutrition with
45 Global Patents
The Creators
of Real Food Technology
Solutions
15 Years
of Unmatched Product
Innovation
Social Entrepreneurs
A new breed of direct seller
committed to ending global
malnutrition
We Just Want to
Change the World
Mannatech.com
NASDAQ: MTEX
Direct sellers wont be lef behind in the
technology race, and some companies are at the
very forefront.
Nu Skin, XANGO, Amway, Herbalife,
Primerica, MonaVie, lia sophia and ACN are just
a few of the direct selling companies to align the
power of apps on smartphones and tablets with
the company goals of recruitment, retention and
sales. Te investment is paying of in a big way.
Anything that supports the story [of Nu
Skin] is a strong ROI for us, says Nu Skin
Vice President of Business Technology Andrea
Hayhurst. Tese kinds of tools enable this
mass of communicators [independent business
owners] to tell our story much more efectively.
Primerica, a fnancial services company,
provides term
life insurance
as one of its
products.
In the past,
enrollment
for a new
customer
was a lengthy
paper process
with a waiting
period for
receiving
acceptance or
rejection, with
additional
waiting for
the rep to get
paid. Today,
a Primerica
representative
with a tablet
can present to
a customer,
apply for the
policy, get
it approved,
bind it, deliver
it and get paid the commission in minutes.
Primericas incorporation of hardware and
sofware apps into the daily experience of the
representative illustrates the boost of power that
technology adds to personal relationships.
Technology is also expanding the reach
ofpersonal relationships. All people belong
tosocial networks of some sort; most people
arepart of several social networks. People
connect with others for many reasons,
whether itis for friendship, shared activities
orbackgrounds, common causes or belief
systems, just to name a few. Technology
has notatall changed the fact that people
connect to one another. It has, however,
dramatically changed the scope and reach of
those connections, using the Internet to shrink
vast distances and connect friends without
geographic constraint.
Today, 50 percent of the worlds population
isunder 30, and 96 percent of them are
estimatedto have joined a social media
network.But this trend does not stop with
theyounger generation. Te fastest-growing
segment of Facebook users is females 55 to 65.
Clearly, social media represents a permanent
shif in the way people communicate and form
relationships. It has also created a permanent
shifin the way companies approachtheir
customers. Johnson says, Business is
happeningon
socialnetworks.
Social networking
leads to social
connecting, which
leads to social
sharing. Groupon,
LivingSocial and
others are not
selling socially
they are sharing
socially andthat
leads torevenue
generation.
ViSalusSciences, a
weight-management
direct selling
company, has
incorporated
social sharing as a
strategic part of their
marketing approach.
Te company
created a laser-
focused message
with their Body
by Vi Challenge
and utilized social
networks to spread that message to reach new
audiences. CEO Ryan Blair says, We have a
simple, focused, authentic story that our fans are
excited about and because of that, we add over
1,000 new customers per day to ourcompany.
Additional advancements over the coming year
are sure to further contribute to the speed, power
and reach of the direct seller, creating even more
opportunity for connecting with new customers.
Tis combination of the successful distribution
model of direct selling with the explosive
growth in communications technology can only
continue to play to the strengths of the direct
sellingindustry.
Direct selling is the ultimate social
business model, and technology
is redefining perceptions of what
thats all about.
21
Source: Direct Selling News Global 100
FOR ADDI TI ONAL I NFORMATI ON PLEASE CONTACT YOUR LOCAL I GNI TE I NDEPENDENT ASSOCI ATE
SM
Turning Energy Into Income
22
HELP US
sustain the continuing
provision of the life-changing
SUCCESS for Teens program to
our youth.
www.SUCCESSFoundation.org.
Eight great life skills and
character-development
principles are reaching
thousands of our nations
teens through dedicated,
passionate educators and
youth mentors.
The SUCCESS Foundation
recognizes the spirit of community and generosity of direct selling companies

supporting the distribution of 2 million SUCCESS for Teens
programs through
schools and youth organizations.
ACN
CieAura
Oxyfresh
MonaVie
Numis Network
Symmetry
Southwestern
Pre-Paid Legal
Vemma
ViSalus
Team National
Little Things Matter
Attitude Is Everything
Use the Moment
Habits Are Powerful
Youre Always
Learning
Theres No Such
Thing As Failure
Everything Starts
with Small Steps
You Can Make Your
Dreams Come True
Megawatt Returns for Energy Providers
e
nergy deregulation could lead companies to take
any route when selling the essential services of gas
and electricity, but by using the direct selling channel
of distribution there is already a natural ft. independent
business owners (iBos) are actually customers themselves.
They also have a built-in market for services and products
because everyone uses energy. The opportunity to possibly
save money as a customer and earn money by educating
others on their energy options is unique.
by Jennifer l. Mills
With companies such as Ignite, ACN, Ambit
and Telecom Plus as industry standouts, energy
may be going the same successful route that the
telecommunications industry did in the 1980s when
the AT&T monopoly was split and competition
entered the industry. Advocates of deregulation also
say advances in technology and price competition
would bring thevalue directly toconsumers with
lower prices.
Ignite, the wholly owned subsidiary of Stream
Energy, is the recognized market leader in the
industry, but a company that almost didnt happen.
We were two years into the deregulation of the
industry and I was only hearing it for the frst time,
says Rob Snyder, Co-Founder and Chairman of
Stream Energy. I had no idea Texas had deregulated
its electricity market. Trough his research on the
topic he found out that a number of companies were
ofering electricity at 20 percent less than what he was
paying for the service. With that seed of opportunity
planted, he was spurred to launch Stream/Ignite.
Many other founders of these retail energy
providers similarly had no direct sales and network
marketing knowledge, so they brought in experts.
Tis made good business sense as a model when
looking at the education needed to sell the service
as well as the relationship necessary to gain trust
fromcustomers.
Chris Chambless, Co-Founder and Chief
Marketing Ofcer of Ambit Energya retail energy
company that drew attention when it was named Inc.
500s fastest-growing company last yearsaw the
signifcance of following such a business model.
I think there is some degree of education
needed, especially in some of these markets
where deregulation is afairly new phenomenon,
Chambless says. A lot of people have just been
conditioned not to have a choice. You have an
opportunity in a direct sales model to go out
andeducatepeople.
23

Te x a s Ut a h Uni t e d Ki ng d om Po l a nd
800-752-2030
www.videoplus.com
Partnering with many of the most successful companies
25 years as the world leader in business and
communication tools for the direct selling industry
Doug Witt, Managing Director
ofMarketing for Ignite, says the major
growth in retail energy is alsodue to
it being an appealing product that
ofers independent distributors a
recognizable opportunity. Since it is
not only a service, but an essential
service, it then becomes more
abouteducation and less about selling.
With energy, they instantly see an
opportunity, Witt says. We fnd we
attract a lot of people who have never
been in network marketing.
In 2005, Ignites frst year, the
company announced $70 million in
gross revenue delivering service in its
home state of Texas. In 2010 revenue
had exceeded $900 million. By the end
of this year Ignite anticipates meeting
the billion-dollar mark, with services
already in Georgia, Pennsylvania
andMaryland.
Ambit, which launched in 2006 and
provides service to Texas, New York,
Illinois, Maryland and Pennsylvania,
saw revenue increase from $325
million in 2009 to $415 million in
2010. We added more customers than
in the previous two years combined,
Chambless says of 2010. He adds
that he expects the company to post
revenue in the neighborhood of $700
million in 2011, and we are fairly
confdent that we will go over a billion
in 2012.
ACN was the frst direct sales
company to step into the energy sales
arena 10 years ago when California
attempted energy deregulation, but
exited when the states process failed,
according to Robert Stevanovski, Co-
Founder and Chairman of ACN. Te
company has since focused on mobile
and video phones, satellite TV and
home security, providing service in 23
markets with revenue of $553 million
in 2010.
But ACN is now back in energy sales,
having launched energy servicesin
Canada in 2010 and re-launched in the
U.S. market this spring with services
in New York, Pennsylvania and
Maryland. Itplans to open 11 other
markets later thisyear.
Overseas, Telecom Plus PLC,which
operates the Utility WarehouseDiscount
Club in the United Kingdom, has
also enjoyed recognizable growth
since it was founded in 1997. With
2010 revenues of $600 million,
TelecomPlus provides more than
350,000 customersthroughout the
United Kingdom with landline phone,
broadband, mobile phone, and gas and
electricityservices andproducts.
Not all U.S. states are open to
deregulating energy and allowing
competition for sales, but for those
which are, the direct selling model of
business provides athree-waywinfor
customers, independentbusiness
owners andenergy providers.
We fnd we attract a
lot of people who have
never been in network
marketing.
Doug Witt, Managing Director
ofMarketing, Ignite
24
Of the People, by the People, for the People
Of the People
Te Economic Policy Institute estimates 4.4
unemployed workers are available for every job
opening. Tis number does not take into account the
estimated 2.3 million sidelined workerspeople
who have lost jobs recently but are not yet trying to
re-enter the workforcemaking the ratio between
job openings and available workers evenhigher.
In the midst of multiple opinions about causes
and cures for our current economic state, the
activity surrounding small-business ownership
appears to be increasing. Direct selling companies
such as Scentsy, Herbalife and ViSalus Sciences have
processed more applications to start businesses than
ever. In fact, just among the top 20 revenue-grossing
companiesthere are an estimated 2,000 U.S.
companies using the direct selling business model
more than 500,000 new applications are processed
inany givenmonth.
Yet the numbers of individuals starting their
own direct selling businesses are not counted in
the Department of Labors statistics, nor are they
recognized by most economists as signifcant
indicators for the economy. With collective
gross revenues of U.S. direct selling companies
topping $28 billion annually, it might be a
statisticworthconsidering.
By the People
In direct selling, individuals market and sell
products and services directly to the consumer,
either through individual contact or group selling,
such as the in-home party. Individuals own their
own businesses but still have the support of a parent
company. Te direct selling model has similarities
to the franchising model, another type of popular
business ownership. Unlike the franchisee, however,
the direct seller is an independent contractor with
complete control over building and conducting
the business. Most direct selling companies
advocate a robust ethical code and encourage
adherence to ensureoptimal relationships among
fellowcontractors (business owners) andconsumers.
Te direct selling industry is very democratic,
inviting all segments of the population to participate
in business ownership, regardless of income,
education or assets. Te age range of direct sellers
mirrors the age range of adults: 18 to 65+, with some
surveys indicating up to 22 percent of direct sellers
are over 55 years old. Te product categories are just
as diverse, including nearly every product or service
imaginable, from energy to fnancial planning,
from health and wellness to beauty, from home
improvement to self-improvement.
For the People
Direct selling is also an extraordinarily philanthropic
industry, with nearly every company, regardless of
size, participating in some kind of charitable endeavor,
whether it is setting up its own foundation, partnering
with humanitarian organizations, or regularly
supporting existing charities. Companies such as
Amway, Nu Skin, Herbalife, Shaklee, Te Pampered
Chef, Tahitian Noni and XANGO also are among
frst responders to help when disaster strikes, here
in the United States and across the world, ofering
millions of dollars in reconstruction eforts, products,
and even basics such as food and blankets to afected
people. Amways generosity is rooted in the belief of
its founders and owners that we need to share our
resources with the communities where we do business,
says the companys president, Doug DeVos.
Participating in the generosity of the industry
provides another compelling reason that people want
to sign on with direct selling companies. According
to USANAs Chief Marketing Ofcer Kevin Guest, the
industry attracts people who want to make the world
a better place. Our entire business is about helping
others, he says. It seems only natural to me that
altruism would spill over into other aspects of their
lives as well. USANA partners with Te Childrens
Fund, delivering food and vitamins to children across
the globe, and even making it possible for employees
and associates to volunteer in other countries.
Direct selling company CEOs are also known for
their personal philanthropy in support of many causes
around the world. A recent example of this giving spirit
can be found in Andrea Jung, CEO of Avon, who gifed
her entire long-term bonus of $5,362,500 to the Avon
Foundation for Women, which has raised more than
$800 million to support womens issues such as breast
cancer awareness and ending domestic violence.
Direct selling: of the people, by the people, and
most defnitely, for the people.
by Teresa day
More than 12 million jobs have been eliminated from the U.S. economy since December 2007,
and according to the Brookings Institute, it could take 12 years to re-create whats been lost.
Many individuals are looking to the direct selling model for a different answer.
25
The age range
of direct sellers
mirrors the age
range of adults: 18
to 65+, with some
surveys indicating
up to 22 percent
of direct sellers are
over 55 years old.
26
success.com/symposium
NOVEMBER 5-6
TH
, 2011
Long Beach Convention Center
Long Beach, California
Get the Competitive Advantage
in Business and in Life
Tickets open to independent business
owners, entrepreneurial enthusiasts
and leaders worldwide soon.
HOSTED BY
DARREN HARDY
Publisher, SUCCESS Magazine
Scentsy, Inc.
Founded in 2004 in an ocean shipping container on
a sheep farm, this Idaho-based company was named
the fastest-growing, privately-held consumer products
company in the United States in 2010 by Inc. Magazine.
With only $60,000 in paid-in capital, Scentsys business
success has defied the worst economic downturn
since the Great Depression.
Since 2008:
750 new employees
113,000 new small business owners
$6 million in charitable contributions
6 million new customers
$80 million paid in taxes
$352 million paid to families across
North America
Follow Scentsy at scentsy.com or on Facebook.
Includes Scentsy payroll, benefts, commissions, royalties, and shareholder distributions.
Entrepreneurship
is the answer.
Direct Selling works.
27
W
hats the ideal home-based
business? More than 16
millionAmericans think its
directselling.
Tey represent one of the hundreds of U.S.
direct selling businesses, and together they
generated $28.3 billion in annual sales last year.
While a few direct sellers work at their businesses
full time, about 90 percent work part time to
supplement their income. Some 80 percent of
direct sellers are women, and almost all say they
appreciate the schedule fexibility and low cost of
starting their business. Customized technology
lets them make their business portable and
convenient. Tey can show high-quality products
or share their business opportunity at a home
party, but its just as easy to do at a cofee shop
orrestaurant.
Direct selling companies, sometimes referred
to as network marketing companies, are gaining
the attention of some of the worlds foremost
fnancial experts, including Suze Orman, noted
author, television personality and consultant to
Avon Products Inc.; Robert Kiyosaki, best-selling
author of the Rich Dad Poor Dad series, who has
sold more books on fnancial guidance than any
author in history; and David Bach, New York
Times best-selling author, to name just a few. All
have responded positively to the signifcance of
the direct selling business model.
Te beauty of the direct selling business
opportunity is that its all done for you, Bach says.
Tere isnt any real startup time. You dont have
to create a business plan. You dont have to create
a product. Te only thing you need to do is fnd a
reputable companyone that you can trustthat
ofers a product or service that you believe in and
can get passionate about.
A Growing Trend
What is most appealing about becoming a
directseller is that anyone can do it. Todays
technology ofers many viable options for
working from home, not to mention the comfort
and enjoyment of not having to go to a place
of employment at a certain time each day. Te
essential activities related to building the business
are usually conducted in the home. Te party
plan approach to selling is found to be very easy
to learnand to enjoy. Meeting prospective
customersand potential direct sellers at a cofee
shop is far more relaxing than the traditional
business conference room.
As the ultimate equal-opportunity solution,
a direct selling home-based business may
represent the purest form of equality through free
enterprise. Tats one of the most striking aspects
of direct selling as a business model: It involves
men and women from all walks of life, all ages,
and all racial, ethnic and socioeconomic groups.
According to the Direct Selling Association,
the industrys trade organization, 24 percent
of direct sellers have a high school diploma or
less education; however, 35 percent are college
graduates and 1 in 12 has a postgraduate degree.
Tese statistics are expected to possibly change
dramatically as technology redefnes the way
direct sellers conduct their businesses and
more and more Americans look for easier ways
to attempt entrepreneurship by starting their
ownbusiness.
The Primary Beneft:
WorkLifeBalance
A home-based business is a valuable asset
when it is developed successfully. Since there
is no commute to work, ones business can be
managed to accommodate ones working hours,
family life and personal interests. Tis is one of the
primary benefts that have historically attracted
women to the business model. Today, there are
millions of men and women who seek a business
opportunity that ofers the ultimate worklife
balancingpotential.
Around the world, millions of families use
earnings from their direct selling businesses to
make their monthly car or mortgage payments,
take family vacations, send their children to
private schools or purchase a few luxuries. For
these individuals, the money earned each month,
regardless of the amount, makes a big diference.
And the big beneft? Its that they are doing it on
their terms and in accordance to the time they are
willing to invest.
The Beneft of Owning Your
OwnBusiness
Some direct sellers and network marketers (all
are independent business owners) choose to view
their business as an opportunity with unlimited
earning potential. Tey realize they can increase
their chances of achieving fnancial freedom by
building a strong business. Tis requires time and
energy to attract customers, sell their products
and build a sales organization of others who
by Barbara Seale
& John Fleming
The Heart of Direct Selling: The Home
28
are recruited, coached and supported in their eforts to also build
successful businesses. By treating the opportunity as a true business,
these direct sellers have the potential to earn signifcant profts from
their investment of time.
The Beneft of Personal Development
Personal development is a phrase ofen used when direct selling
companies describe the benefts associated with the training they ofer.
Direct sellers tend to rave about the support they receive regardless of
whether they are in the business for a new lifetime career or just a few
months to earn some needed extra income. Some have been known
to report that as a result of the training ofered by the direct selling
company they choseusually ofered free or at minimal costthey
were able to step out of their comfort zones, engage in conversations
more efectively, speak in front of groups of people, manage time and
moneymore efectively and, ultimately,enrich their lives through
theexperience.
The Ideal Business
While every company has its unique traits, the entire direct selling
way of doing business sharescommon threads of empowering men
and women to dream, to reach beyond what theythought to be
possible, and to be supported in a verystrong manner. Direct selling
is a great example of how the free enterprise system can be engaged
without thetraditional risks associated with a brick-and-mortar
businessmodel.
Top 5 Reasons for Considering
aDirect Selling Business
Be Your Own BossYouareincompletecontrolofhowyouinvestyourtime
andhowyougoaboutbuildingyourbusiness.
Save Time and MoneyAsanindependentbusinessowner,youpurchase
theproductsyouloveatdiscountsandyouoperateallactivitiesfromyourhome.
Expand Your Circle of FriendsDirectsellingbusinessopportunities
arebasedonbuildingrelationships.Whenbuildingadirectsellingbusiness,
customersandotherteammembersappeartoquicklybecomeimportantand
rewardingaspectstooneslife.
Be Recognized and Rewarded for AchievementItsnoteveryday
thatanadultreceivespraiseforaneffortwelldone,butdirectsellingcompanies
recognizeandrewardtheirindependentbusinessownersthroughbonuses,trips
andprizes.Thisisanessentialcomponenttothebusinessmodel.
Build IncomeThedirectsellingcompensationmodelofferedbymost
companiesallowsthebuildingoforganizationsthathavethepotentialtocreate
incomesbeyondthoseearnedfromthepersonalselling/servicingeffortsofthe
directseller.
www.partylite.com
The number one
direct seller of
premium candles
and home-fragrance
products in the world.
United States | Australia | Austria | Canada | Czech Republic | Denmark | Finland | France | Germany | Italy | Mexico | Norway | Poland | Slovakia | Switzerland | United Kingdom
29
D
irect Selling News, the
trade publication for the
direct selling and network
marketing executive, is the
only publication of its kind
dedicated to reporting the
news as it happens in the direct selling industry.
Each month, DSN demonstrates its partnership
with direct selling companies by telling their
remarkable stories and examining the issues
important to the industry atlarge.
From providing its readers with the
latest industry news to profling mature
companies and startups,
DSN seeksto educate,
inform andinspire.
Straightforward
and Authentic
Whether providing
readers with valuable
information about
compensation plans
and growth strategies,
ofering a forum
for direct selling
executives and suppliers to share
their ideas or profling direct selling
startups in Young Company Focus, DSN
strives to deliver information that can help direct
sellers be more successful. Direct Selling News
has proven to be a great partner for SwissJust,
says Jacques Mizrahi, CEO of SwissJust. Tey
are a true partner because we have helped
them with their stories, and they have helped
us enormously in our path from a startup to
continuous growth.
Companies also frequently use DSN articles
to support their strategies and growth. From
posting articles on their websites to sending
e-mail blasts to their salesforce, to including
article reprints in their starter kits, the
companies DSN covers say the editorial stafs
reporting helps them generate excitement among
the public, their customers and their sales
organizations and, in some cases, helps increase
recruiting eforts.
Relevance and Education
DSN provides its readers with much more
than industry news and company profles. Te
publications Working Smart section covers the
tactics and strategies that enable companies to
meet industry challenges, improve efciencies
and achieve business objectives. Tis section
not only gives direct selling company executives
and suppliers the opportunity to share their
knowledge with others in the industry by
contributing articles, but it also provides direct
selling companies with information and insight
that can directly afect their businesses.
USANA President Dave Wentz says he and
his company learn much about the day-to-day
issues faced by companies from Working Smart
articles. I have been consistently impressed by
the management strategies and marketing tactics
shared in these regular sections, and Ihave
frequently used them to promote discussion
andstrategic planning in my staf
meetings, hesays.
Insightful and
Perceptive

DSNs New
Perspectives section
ofers commentary
on contemporary
issues from
respected direct
selling executives,
business professors
and industry
consultants. Its
monthly Top Desk
essay is contributed by a direct selling CEO
or presidentand addresses such important topics
as leadership and ethics. Personally, Ive had the
opportunity to share my thoughts in such areas
as ethics and integrity with our entire industry,
saysHerbalife Chairman and CEO Michael O.
Johnson. Its gratifying to know that such a
venueexists, where matters that are especially
important to allofus aregiven anopen forum
fordiscussion.
Direct Selling News is read not only by
direct selling executives and suppliers but
also by members of the academic community,
who use the publication to educate their
students and thecommunity at large about
this industry. What makes direct selling
Direct Selling News
Serving the Direct Selling and Network Marketing Executive
by DSN Staff
From providing its
readers with the latest
industry news to profiling
mature companies and
startups, DSN seeks
to educate, inform
and inspire.
30
fun to teach is that when someone enrolls in a
direct selling opportunity, they are buying into
a proven business model, with a proven frm,
with provenproducts and identifed markets,
says LarryChonko, Ph.D.,Tomas McMahon
Professorof BusinessEthicsat the University
ofTexas at Arlington. Te entrepreneur,
insteadofhaving to start a businessfrom
the ground foor, must engage in aserious
evaluationof the strategies and tactics ofthe
direct selling company and his/her prospective
ft with that company. Most studentswill be
employed by companies with existing plans and
structures. Te evaluative process of choosing
a direct sellingcompany is onethat provides
a transferrable learning foundation for what
students are most likely to experience as an
employee or future businessowner.
Global in Scope
DSN also aims to provide its U.S. readers with
comprehensive information about direct selling
inother parts of the world.
Direct selling executives in Europe are so
interested to hear whats happening across
their region, says Kathy Slater, a DSN editor.
Tey tell me that DSN provides them with
valuable, accurate information about diferent
companies, cultures and business legislation.
Readers have alsosaid that DSN is at the heart
ofbringing together direct selling companies
andassociationswithin the industry, by
ensuringthey all have a voice and a recognizable
face, brought to life within one reputable
independent source.
A Journalistic Resource
Direct Selling News is committed to
keeping direct selling company executives
abreast of the latest news and trends around
the world; profling individual member
companies, theiraccomplishments and their
eforts to give back; providing a forum for
sharing ideasand industrybest practices;
and acting asan advocatefor industry
ethics and integrity.Temonthly print
publicationisfordirect sellingexecutives
anddecision-makers.
The DSN Global 100An Industry Event
D
irectSellingNewscelebrateditssecondannual
DSNGlobal100listwithanawardsbanqueton
April27.Theevent,whichrecognizedthetop100
revenue-grossingdirectsellingcompaniesintheworldfor
2010,wasattendedbynearly300membersofthedirect
sellingindustry,representingmorethan140 companies.
BrianConnolly,formerPresidentofAvonNorthAmerica
andExecutiveVicePresidentofAvonProductsInc.,
emceedtheevent.JohnFleming,PublisherandEditorin
ChiefofDirectSellingNews,presentedtheawardstothe
top10companies.
Theeveningopenedwiththepresentationofthe
DSN BravoAwardsforoutstandingachievement
Turnaround,GrowthandLeadership.Thefrstaward
went tothecompanythatexperiencedthebest
turnaroundovertheprevious12months,whichwas
ViSalusSciences.Thehealthtransformationcompany
focusedits2010effortsonmarketingitsBodybyVi
Challengeandgrewtoanestimated$10millionin
monthlysales.
Co-foundersRyanBlair,NickSarnicolaand
BlakeMallenacceptedtheaward,alongwithTodd
Goergen, whosefamilyownsBlyth,theparent
company of ViSalus.
Startingacompanyisabouttheups,thedowns
andcelebratingsuccessesalongtheway,Blairsays.
WinningtheTurnaroundAwardduringtheworst
economictimeofrecenthistorywasatestamentto
the hardworkofourdistributors,thepowerofourBody
by Vimessaging,ourproductsandourcompplan.
ThesecondBravoAwardwenttothecompanywith
thehighestgrowthrateovertheprioryear.Thewinner
wasStella&Dot,whichsawsalesof$33millionin2009
increaseto$104millionin2010,agrowthof215percent.
ThejewelrycompanymadenewsinFebruarywhenthe
infuentialventure-capitalfrmSequoiaCapitalinvested
$37millionfor10percentoftheownership.
Theaward,presentedby2009winnersOrville
and HeidiThompsonofScentsy,wasaccepted
byMike Lohner,ChairmanofStella&Dot.Coco
Chanel said thatgirlsshouldbetwothings:classyand
fabulous.Ithinkweredoingourparttohelpthatbea
truism,says Lohner.
ThefnalBravoAwardwenttotheleadershipteam
of ACN:GregProvenzano,RobertStevanovski,Mike
Cupisz andTonyCupisz.Provenzanoacceptedthe
LeadershipAward,whichwaspresentedby2009
winner JohnAddison,Co-CEOofPrimerica.
Giventhehighcaliberofpeoplewhoareheretonight,
itsasurpriseandanhonortobeabletoaccept this
awardonbehalfofallofACN,Provenzanosays.We
appreciatebeinginbusinesswithyou.Its a greatindustry.
Letscontinuetodogreatthings together.
AfterthepresentationoftheBravoAwards,DSN
unveileditsGlobal100for2010.TomKelly,SeniorVice
PresidentofGlobalDirectSellingforAvon,acceptedthe
awardforNo.1directsellingcompanyintheworld.We
strivetobethebest.Tonight,toberecognizedasthebest
ofthebestinyoureyesisabighonorandmeansalotto
us,saysKelly.
TomKelly,SeniorVicePresidentforGlobal
DirectSellingforAvon,acceptstheawardfor
No.1directsellerintheworld.
ViSalusSciencesCo-FoundersRyanBlair,Nick
SarnicolaandBlakeMallenandteamaccept
theBravoTurnaroundAward.
ACNCo-FounderGregProvenzanoaccepts
the BravoLeadershipAwardfrom2009winner
JohnAddisonofPrimerica.
MikeLohner,ChairmanofStella&Dotaccepts
theBravoGrowthAwardfrom2009winners
HeidiandOrvilleThompsonofScentsy.
31
When we published the DSN Global
100 ranking last year, it was the first
time in the history of the industry that
a comprehensive list of the top 100
direct selling companies (by revenue)
was researched andpresented.
1 Avon Products, Inc.
2010Revenue: $10.9billion
Country: USA
Avonisthefounderofmoderndirectsellingand
theacknowledgedworldleaderincosmetics,
fragrancesandtoiletries.Avonswell-known
productlinesincludeAvonColor,Anew,Skin
SoSoft
,AdvanceTechniquesHairCare,Avon
Naturalsandmark
.
2009Rank: 1
MarketingStyle: Person-to-person
CompensationPlan: Single-levelandmulti-level
Products: Beauty,fashionjewelryand apparel
Markets: 100+
Distributors: 6.5million
Employees: 42,000
Headquarters: NewYork,N.Y.
Executive: AndreaJung
YearFounded: 1886
StockSymbol: AVPNYSE
2 Amway
Country: USA
Amway,underparentcompanyAlticor,offers
Artistrycosmeticsandskin-careproducts,
Nutrilitenutritionalproductsandloyalty-inducing
household products.
2009Rank: 2
CompensationPlan: Multi-level
Products: Nutrition,beauty,personal-careand
home-careproducts
Markets: 80+
Distributors: 3million
Employees: 14,000+
Headquarters: Ada,Mich.
Executives: SteveVanAndel
and Doug DeVos
YearFounded: 1959
3 Natura Cosmeticos SA
2010Revenue: $3billion
Country: Brazil
Naturaisacosmeticsgiantwithmorethan900
products.ThecompanyoperatesinArgentina,
Chile,Peru,Mexico,France,Venezuelaand
Colombia.Corporatesocialresponsibilityisone
of itscore emphases.
2009Rank: 5
MarketingStyle: Person-to-personandretail
CompensationPlan: Bi-level
Products: Personal-careproductsand fragrances
Markets: 7
Employees: 5,000+
Headquarters: SoPaulo,Brazil
Executive: AlessandroG.Carlucci
YearFounded: 1969
StockSymbol: NATU3.SASoPaulo
4 Vorwerk & Co. KG
Country: Germany
Vorwerkisafamily-ownedcompanythathasbeen
focusingonthedirectsellingchannelsince1930.
Productsincludehouseholdappliancesandhigh-
qualitycosmetics.Vorwerkisaglobalgroupthat
includesJAFRACosmetics,whichreportedsales
volumeofmorethan$600millionin2010.
2009Rank: 3
MarketingStyle: Person-to-personand
party plan
(JAFRA Cosmetics)
Products: Cosmeticsandhomeappliances
Markets: 61
Distributors: 600,000
Employees: 23,000
Headquarters: Wuppertal,Germany
Executives: WalterMuyresandReiner Strecker
YearFounded: 1883
DSNGlobal100
by DSN Staff
32
5 Herbalife Ltd.
Country: USA
Herbalifesellsnutritionalsupplementsand
weight-managementandpersonal-careproducts.
Itsproductshavebeendevelopedbyscientists,
physiciansandnutritionexperts,includingNobel
laureateinmedicineLouisIgnarro,Ph.D.
2009Rank: 6
Products: Nutritionalsupplements;health/fitness,
wellness,skin-andhair-care;andweight-
managementproducts
Markets: 75
Employees: 4,300
Headquarters: LosAngeles,Calif.
Executive: MichaelO.Johnson
YearFounded: 1980
StockSymbol: HLFNYSE
6 Mary Kay Inc.
Country: USA
MaryKaywasfoundedbyMaryKayAshwiththe
goalofhelpingwomenachievepersonalgrowthand
financialsuccess.Thecompanysskin-careand
colorcosmeticsproductsaresoldinmorethan35
countriesaroundtheworld.
2009Rank: 4
MarketingStyle: Person-to-personandpartyplan
Products: Skin-careproductsand
color cosmetics
Markets: 35+
Employees: 5,000
Headquarters: Addison,Texas
Executive: DavidHoll
YearFounded: 1963
7 Tupperware Brands Corp.
Country: USA
Tupperwareisaglobaldirectsellerofinnovative,
premiumproductsthroughanindependent
salesforce.Productbrandsandcategoriesinclude
design-centricpreparation,storageandserving
solutionsforthekitchenandhome,andbeauty-
and personal-careproducts.
2009Rank: 8
MarketingStyle: Person-to-personandparty plan
Products: Storageandservingproducts;beauty-
andpersonal-careproducts
Markets: Nearly100
Employees: 13,500
Headquarters: Orlando,Fla.
Executive: RickGoings
YearFounded: 1946
StockSymbol: TUPNYSE
8 Orifame Cosmetics S.A.
Country: Sweden
Oriflameisoneofthefastest-growingbeauty
companiesintheworld.Thecompanyoperatesin
62countriesandisthemarketleaderinmorethan
half.AlthoughithasnoU.S.presence,Oriflame
hasapresenceinMexico,CentralAmerica,South
America,Europe,AsiaandAfrica.
2009Rank: 9
Products: Beautyproducts
Markets: 62
Employees: 8,000
Headquarters: Luxembourg,Luxembourg
Executive: MagnusBrnnstrm
YearFounded: 1967
StockSymbol: ORI-SDBStockholm
13 Miki Corporation
2010Revenue: $927million
Country: Japan
MikiCorporationbeganasatextileimporterand
seller.Today,itisamultimillion-dollarsellerof
supplementsmadefrompruneextractsaswellas
householdcleaners,personal-careitemsandmuch
more.ThecompanyhassalesagentsinJapan,
TaiwanandMalaysia.
2009Rank: 14
MarketingStyle: Notavailable
CompensationPlan: Notavailable
Products: Foods,cosmeticsand
household products
Markets: 3
Distributors: Notavailable
Employees: 270
Headquarters: Osaka,Japan
Executive: ToshikazuKadota
YearFounded: 1964
14 Ignite Inc.
Country: USA
IgniteInc.wasfoundedin2004byparentcompany
StreamEnergytomeetthechangingneedsof
consumers.Withenergyservicederegulation,more
choicesexistforconsumersandentrepreneurs,and
Igniteseekstomeettheneedsofboth.
2009Rank: 16
Products: Electricityandnaturalgas
Markets: 1
Employees: 262
Headquarters: Dallas,Texas
Executive: RobSnyder
YearFounded: 2004
15 Melaleuca Inc.
Country: USA
Melaleucasellsmorethan350products,including
personal-careitems,cosmetics,householdcleaning
suppliesandvitaminstoconsumersthrough
anetworkofsalesrepresentatives,catalogs
and websites.
2009Rank: 15
CompensationPlan: Single-level
Products: Personal-careproducts,cosmetics,
cleaningsuppliesandvitamins
Markets: 18
Employees: 1,200
Headquarters: IdahoFalls,Idaho
Executive: FrankVandersloot
YearFounded: 1985
15 Omnilife
Country: Mexico
FoundedbyJorgeVegaraMadrigal,Omnilife
ManufacturaS.A.deC.V.isownedbyultimateparent
companyGrupoOmnilifeS.A.deC.V.Thecompany
hasindependentconsultantsin23marketsinSouth
America,NorthAmerica,CentralAmerica,Asia
and Europe.
2009Rank: 18
Products: Nutritionalsupplements,weight-
managementandbeautyproducts,beverages,
cosmeticsand fragrances
Markets: 23
Employees: 3,500
Headquarters: Zapopan,Mexico
Executive: JorgeV.Madrigal
YearFounded: 1992
33
9 Forever Living Products
Country: USA
ForeverLivingistheworldslargestgrower,
manufactureranddistributorofaloevera,andthis
inspiresthemtomakeenvironmentalresponsibility
apriority.Thecompanyoffersacompleteline
ofaloeveradrinks,skin-careproductsand
cosmetics,aswellasafulllineofnutritional
supplementsandproductsfrom beehives.
2009Rank: 10
Products: Aloeveradrinks,skin-careproducts
andcosmetics,nutritionalsupplements
Markets: 142
Employees: 9.3million
Headquarters: Scottsdale,Ariz.
Executive: RexMaughan
YearFounded: 1978
10 Nu Skin Enterprises, Inc.
Country: USA
NuSkinEnterprisesInc.isaglobaldirect
sellingcompanyoperatingin48international
marketsthroughouttheAmericas,Europe
andtheAsia-Pacificregion.Goingfarbeyond
cosmetics,toiletries andfragrances,NuSkinsells
morethan200productsthroughthreedistinct
brands: Nu Skin,PharmanexandBigPlanet.
2009Rank: 11
Products: Personal-careand
nutritional products
Markets: 51
Employees: 1,200
Headquarters: Provo,Utah
Executive: TrumanHunt
YearFounded: 1984
StockSymbol: NUSNYSE
11 Belcorp/LBelParis
Country: Peru
Belcorpfocusesonwomen,notonlythroughits
businessmodelbutalsothroughitsproducts.Over
840,000independentbeautyconsultantsoffer
theLBel,sikaandCyzonebeautyandlifestyle
brands.Asof2011,Belcorphasapresencein15
countriesand18LatinAmericanspecialtystores.
2009Rank: 13
2009Revenue: $1billion
MarketingStyle: Person-to-personand
party plan
Products: Skin-care,fragrance,makeup,body-
care,hair-care
Markets: 15
Employees: 8,000+
Headquarters: Lima,Peru
Executive: EduardoBelmont
YearFounded: 1967
11 Primerica Inc.
Country: USA
Primericaprovidesfinancialproductsandservices,
includingtermlifeinsurance,mutualfunds,
variableannuities,loans,long-termcareinsurance
andlegalservicesto6millionclients,primarily
middle-classindividualsandfamilies.
2009Rank: 7
Products: Financialservices
Markets: 5
Employees: 2,000
Headquarters: Duluth,Ga.
Executives: JohnAddisonandRickWilliams
YearFounded: 1977
StockSymbol: PRINYSE
17 MonaVie LLC
Country: USA
MonaViesnutritionalbeverageswith
correspondinggelformulationsfeatureablend
ofaaiberryandothernutrient-densefruits.The
companysphilanthropicaimistoimprovethelives
ofpeoplelivinginpovertyinBrazil.
2009Rank: 17
Products: Foodsandnutritionalproducts
Markets: 12
Employees: 450
Headquarters: SouthJordan,Utah
Executives: DallinA.LarsenandHenry Marsh
YearFounded: 2005
17 Telecom Plus
Country: UnitedKingdom
OperatingastheUtilityWarehouseDiscount
Club,TelecomPlusprovideslandlinephone,
broadband,mobilephone,gasandelectricity
productsandservicestoover350,000customers
acrosstheUK,aswellasofferingclubmembers
arangeofopportunitiesto savemoneyon
household expenses.
2009Rank: 33
Products: Landlinephones,broadband,mobile
phones,gas, electricity
Markets: 1
Employees: 500
Headquarters: London,UK
Executive: AndrewLindsay
YearFounded: 1998
StockSymbol: TEPLONDON
17 Yanbal International/Unique
Country: Peru
YanbalInternationalwasfoundedinPeruandsells
skin-care,cosmetics,personal-careproducts,
fragrancesandjewelrythrough itscatalogsand
beautyconsultants.
2009Rank: 26
MarketingStyle: Partyplan
Products: Skin-careproducts,personal-care
products,cosmetics, jewelryandfragrances
Markets: 8
Employees: 4,800
Headquarters: Lima,Peru
Executive: JanineBelmont
YearFounded: 1967
20 ACN
Country: USA
ACNisthelargestdirectsellerofhomeand
telecommunicationsservicesintheworld,
offeringlocalandlongdistancephoneservice,
digitalphoneservicewithvideophones,Internet,
wireless,satelliteTV,homesecurity,computer
supportandenergyservices.
2009Rank: 21
Products: Telecommunications,homeservices
andbusinessservices
Markets: 23
Employees: 1,300
Headquarters: Concord,N.C.
Executives: RobertStevanovski,Greg
Provenzano,TonyCupiszandMikeCupisz
YearFounded: 1993
34
21 PartyLite (Blyth)
Country: USA
StartedbyentrepreneurMabelBakerwithhersinglelineofbayberry
candles,PartyLiteisnowtheworldslargestdirectsellerofcandles
andhomefragranceproducts.ThecompanywasacquiredbyBlyth,
Inc.in1990.
2009Rank: 19
2009Revenue: $621.6million
Products: Candles,candlewarmers,flamelessfragrance,home
accents,personal-careproductsandfood products
Markets: 18
Employees: 1,249
Headquarters: Plymouth,Mass.
Executive: AnneButler
YearFounded: 1973
StockSymbol: BTHNYSE
22 Amore Pacifc
Country: SouthKorea
AmorePacificisanoldfavoriteinSouthKorea,anditsproducts
cannowbefoundonSephorashelvesintheUnitedStates.The
companysproductsuseAsianbotanicalsandnanotechnologyto
deliverskin-careandpersonal-careitems.
2009Rank: 27
MarketingStyle: Directselling/retail stores
Products: Cosmetics,personal-care,healthproductsandtea
products
Markets: 3
Employees: Notavailable
Headquarters: Seoul,SouthKorea
Executive: Kyung-BaeSuh
YearFounded: 1945
StockSymbol: 090430(KoreaStock Exchange)
23 LG Household & Health Care
Country: SouthKorea
LGHousehold&HealthCareisanestablishedleaderintheKorean
householdgoodsandcosmeticsindustries.Itshouseholdgoods
includeoralcareproducts,skin-careandhair-careproducts,laundry
productsandpaperproducts.
2009Rank: 23
MarketingStyle: Notavailable
Products: Cosmeticsandhouseholdproducts
Markets: 5
Employees: 2,745
Headquarters: Seoul,SouthKorea
Executive: SukCha
YearFounded: 1947
StockSymbol: 051900SEO
24 USANA Health Sciences Inc.
Country: USA
USANAHealthSciencesdevelopsand
manufactureshigh-qualitynutritionalsupplements,
healthyweight-managementproductsand
personal-careproducts,whicharemarketedby
independentassociatesin15international markets.
2009Rank: 31
2009Revenue: $436.9million
Products: Nutritionalsupplements,personal-
care,energyandweight-managementproducts
Markets: 15
Employees: 1,240
Headquarters: SaltLakeCity,Utah
Executive: DavidWentz
YearFounded: 1992
StockSymbol: USNANASDAQ
25 Shaklee Corp.
Country: USA
Foundedin1956,Shakleemanufacturesproducts
anddistributesthemthroughitswebsiteandmore
than750,000representativesinNorthAmerica
andAsia.Thecompanyisknownforitsgreen
productsandsocialresponsibilityefforts.
2009Rank: 24
(alsoretailin Singapore)
Products: Nutritionalsupplements,skin-care,
weightmanagement,greencleaners
Markets: 8
Employees: 750
Headquarters: Pleasanton,Calif.
Executive: RogerBarnett
YearFounded: 1956
25 The Pampered Chef Ltd.
Country: USA
ThePamperedChefsellsmorethan300
gourmetkitchentools,cookware,cookbooksand
foodstuffs.Foundedin1980,PamperedChefwas
acquiredbyBerkshireHathaway,theconglomerate
controlledbybillionaireWarrenBuffett,in2002.
2009Rank: 24
Products: High-endtoolsforcooking
and entertaining
Markets: 5
Employees: 800
Headquarters: Addison,Ill.
Executive: MarlaGottschalk
YearFounded: 1980
StockSymbol: BRK-ANYSE
25 Tiens/Tianshi
Country: China
InChina,Tienssellsitsproductsthrough
some 100 branchofficesandchainstoresof
affiliateTianshiEngineering.OutsideofChina,
it sellsproductsthroughindependentdistributors
throughsubsidiaryTianshiInternationaland
majority-ownedTiensBiotechGroupUSAInc.
2009Rank: 47
MarketingStyle: Person-to-personandretail
CompensationPlan: Uni-levelandbreakaway
Products: Wellnessproducts,
dietary supplements
Markets: 110
Employees: 2,827
Headquarters: Tianjin,China
Executive: LiJinyuan
YearFounded: 1990
StockSymbol: TBVAMEX
35
Clinically proven Medifast Meals
Lose up to 2 to 5 lbs a week, quickly and safely
Recommended by over 20,000 doctors since 1980
Achieving Optimal Health is Now Possible
Optimal Health is a whole new approach to well-being that is based on creating health
with the Take Shape For Life Program.
Who We Are
Take Shape For Life is the direct sales, and largest, division
of Medifast, Inc. (NYSE: MED), a solid 30 year old company
recently named #1 Small Company in America by
Forbes Magazine. Recognized in the top 100 direct sales
companies in the world
, Take Shape For Life is a physician-

led business model based around Health Coaches who are
trained and educated to support Clients on the Medifast 5
& 1 Plan with encouragement, education and mentoring.
What makes Take Shape For Life so diferent is that Health
Coaches dont sell products or services, they simply share
the program and then help guide their Clients.
A Great Opportunity
With obesity in the United States
reaching epidemic proportions, Take
Shape For Life ofers an amazing
business opportunity to become a
Health Coach and join like-minded
individuals with the common goal of
paying it forward and getting America
healthy. We are a health network of
coaches who live and teach the Trilogy
of Optimal Health: Healthy Body,
Healthy Mind, and Healthy Finances.
If you could choose
Optimal Health,would you?
Three unique components (a Health Coach, the Medifast 5 & 1 Plan, and the Habits of Health
System) create the foundation of long-term support that guides Clients along their journey. As a
Client youll learn to make the choices that can help you take charge of your health for the long
term. Reaching a healthy weight is just the beginning Take Shape For Life ofers much more.
*Results not typical. Typical weight loss on the Medifast 5 & 1 Plan is up to 2 to 5 lbs per week.
Take Shape For Life (Medifast) is ranked No. 69 on the 2010 Direct Selling News Global 100 list. This list identifes the Top 100 Direct Selling Companies in the World.
Discover more about Take Shape For Life
at www.TSFL.com.
Te company would like to thank all of our Health Coaches
for everything they do to get America healthy!
Before
Client and Health Coach
Nancy lost 135 lbs
*
and
has kept it of for 8 years!
Most people say they get their
life back, but now I have a life
Ive never experienced before.
36
28
Pre-Paid Legal Services, Inc.
Country: USA
29
Tahitian Noni International, Inc.
Country: USA
30
Market America Inc.
Country: USA
31
Ambit Energy, L.P.
Country: USA
32
WIV Wein Intl AG
Country: Germany
33
Scentsy
Country: USA
34
Pola Inc.
Country: Japan
35
Arbonne International Inc.
Country: USA
36
FORDAYS Co. Ltd.
Country: Japan
37
Natures Sunshine Products Inc.
Country: USA
38
NOEVIR Co., Ltd.
Country: Japan
39
Southwestern
Country: USA
40
KK ASSURAN
Country: Japan
41
LR Health & Beauty Systems
Country: Germany
42
Aerus Holdings Inc. LLC
Country: USA
42
Sunrider
Country: USA
44
Cosway
Country: Malaysia
45
Eureka Forbes Ltd.
Country: India
46
Isagenix International
Country: USA
47
Neways, Inc.
Country: USA
47
XANGO, LLC
Country: USA
49
Vivint, Inc.
Country: USA/Canada
50
Charle Corp. Ltd.
Country: Japan
50
KOYO-SHA
Country: Japan
50
Naturally Plus Co. Ltd.
Country: Japan
53
Faberlic
Country: Russia
54
Lux International
Country: Switzerland
55
Mannatech, Inc.
Country: USA
56
Four Leaf Japan Co./Forifu Japan
Country: Japan
57
PM-International AG
Country: Germany
58
ERINA Co., Inc.
Country: Japan
59
Nikken Global Inc.
Country: USA
59
Team National
Country: USA
61
Diana Co. Ltd.
Country: Japan
62
CUTCO Corp./Vector Marketing
Country: USA
62
Longaberger Co.
Country: USA
62
Stampin Up!
Country: USA
62
4Life Research L.C.
Country: USA
66
GNLD
Country: USA
67
Family Heritage Life
Country: USA
68
Univera
Country: USA
69
BearCereJu Co. Ltd.
Country: Japan
69
Take Shape for Life (Medifast)
Country: USA
71
Jewels by Park Lane Inc.
Country: USA
72
Sportron
Country: USA
73
Japanlife Co. Ltd.
Country: Japan
74
Chandeal Co. Ltd.
Country: Japan
75
Deesse
Country: Switzerland
76
Enagic USA, Inc.
Country: USA
77
Tastefully Simple Inc.
Country: USA
78
Keller Williams Realty Inc.
Country: USA
79
Creative Memories
Country: USA
continued on page 38
37
on
23 countries4 continentsand growing | acninc.com | 866-244-5936
IF ITS ON, YOU GET PAID
Its happening right now in millions of homes around the world
Just imagine if you got paid because someone did any of those things. Thats ACN the
worlds largest direct seller of telecommunications and essential home services!

Start your own home-based business with ACN, marketing the services people
simply cant live without!
Someone is
MAKING a phone call...
TURNING on a light
SENDING a text message
SURFING the internet
WATCHING TV
COOKING breakfast.
38
80
ARSOA HONSHA Corp.
Country: Japan
81
Stella & Dot
Country: USA
82
Kleeneze
Country: UnitedKingdom
83
Kirby Company
Country: USA
83
lia sophia
Country: USA
83
Premier Designs
Country: USA
83
Thirty-One Gifts
Country: USA
83
Unicity Networks International
Country: USA
88
The Maira Co. Ltd.
Country: Japan
89
Vemma Nutrition Co.
Country: USA
90
WorldVentures
Country: USA
91
AdvoCare
Country: USA
92
Agel Enterprises
Country: USA
92
Fortune Hi-Tech Marketing
Country: USA
92
FreeLife International
Country: USA
92
Passion Parties
Country: USA
92
Pure Romance
Country: USA
92
Regal Ware
Country: USA
92
Relv International Inc.
Country: USA
92
TriVita
Country: USA
92
World Financial Group
Country: USA
DirectSellingNewsis now
available as aniPad application.
You can download thisFREE app
at http://bit.ly/dsnipad.
39
Title:
Space/Color:
Bleed:
Trim:
Live:
Media:
Creative Director:
Art Director:
Copywriter:
Print Producer:
Project Manager:
Acct. Mgr.:
Keyliner:
Billing #: ALTQUX P06986 Supplier#:
Element79 200 E. Randolph 33rd Floor Chicago, L 60601 www.element79.com
"What difference does it make?
FP 4/C bleed
Non Bleed
9.75"w X 9.875"h
Direct Selling News
D. Straus
D. Straus
J. Frosolone
J. Niccum
D. Tropp
S. Dunn
L. Ruedger_3/8/11_5
ALTQUX11022
Amway
Job#: IN12439_11022.indd
Client: element79
Desc: Amway Nutrilite
Live:
Trim: 9.75" x 9.875"
Bleed:
Proof#: 1
CSR: Tom Clyne
Operator: LT
Prev Op:
Mac: caps513
Prev Mac:
Date: 05/25/2011_08:42 PM
what
difference
does it
make?
2011 Amway
When it comes to health supplements, its a fair question. And it deserves answers.
Amway makes Nutrilite vitamins with healthy plant nutrients from our
own organic farms. And that makes a very positive difference.
To learn more or nd an Amway Independent Business Owner, call 800-950-7732
or visit Amway.com/positive.
40

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What are some of the key statistics mentioned about direct selling?

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1

The UlTi maTe

Stock Performance 20092011

recognizes the spirit of community and generosity of direct selling companies

, Take Shape For Life is a physician-

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