2017 Best Places to Work in Direct Selling

by Courtney Roush

4 Signs
4 Signs

Click here to order the April 2017 issue in which this article appeared or click here to download it to your mobile device.


“Most people think trust is earned. Here, trust is granted. We wouldn’t have hired you if we didn’t trust you.”

These very words are spoken by Xyngular CEO Russ Fletcher to new hires during the company’s new employee orientation sessions, presented by the four members of its executive team. At Xyngular, one of this year’s Best Places to Work in Direct Selling (see special award supplement included with issue), that statement sets the tone for what’s to come: a culture and a host of perks and benefits that convey an implicit message of trust, a key component of employee engagement. So what kind of impact does it have when an executive not only takes the time to personally welcome a new employee, but also makes a declaration of trust right out of the gate? For starters, a 97.7 percent employee retention rate.

Employee engagement: It’s both a simple concept and a complex dynamic. On the surface, employee engagement refers to satisfaction and happiness, but it is so much more than that. It’s a science that puts hard data around “soft” variables like emotional investment and intent to stay. Examine any high-growth company, and you can count on finding employees who believe their opinions are heard, who know specifically how their jobs contribute to the company’s objectives, who have access to professional development opportunities, and who feel valued by leadership. All too often, a company first learns of an employee’s disengagement with a resignation letter. Earlier intervention through better onboarding, mentoring, professional and personal development, recognition and occasional, but regular, touchpoints with senior leadership could have made a difference.

Engagement is a critical topic because, according to our third-party vendor and research partner Quantum Workplace, which conducted surveys and compiled findings for the 2017 Best Places to Work in Direct Selling contest, those perceptions are directly tied to a company’s bottom line.

For more than 10 years, Quantum Workplace has been conducting in-depth surveys with organizations throughout the world. Along the way, a consistent theme has emerged from their findings: Companies with higher employee engagement see better retention, better productivity, better profits. Based on that knowledge, Quantum, through its in-depth research, has revealed some of the primary drivers of engagement, along with factors that can diminish it.

When we speak of employee engagement within direct selling companies, the contributors and detractors really don’t differ from the business world at large. However, it’s important to note the effect of employee engagement on our ultimate customer: the independent salesforce members we serve. It stands to reason that happier employees mean a happier independent salesforce.

The continued growth of the direct selling channel has created an exciting climate in which talented candidates have …

Click here to read the rest of the article at Direct Selling News.

 

 

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The Social Age

by Andrea Tortora

Click here to order the January 2016 issue in which this article appeared or click here to download it to your mobile device.


The Social Age is here. If you’re not taking full advantage of the tools and technologies that social platforms have to offer, you and your company are likely to be left behind as the competition leaps ahead. Now well into its infancy, the Social Age is and will be making a tremendous impact on the sales industry, especially within the world of direct selling. The changes already cannot be ignored.

Technology drives everything—recruitment, retention and revenue—for most companies. Those businesses that realize what they can achieve when all of their internal, back office, social media, field tools and software systems work together are equipped to innovate and leverage essential data that will let them thrive in the future.

Facebook, Twitter, LinkedIn, YouTube, Pinterest and Instagram are potent tools that companies and consultants are learning to use as they build connections with customers and grow sales. Other apps such as Periscope and Google Hangout are gaining traction, too. Yet many executives and companies are slow to embrace these advances. A study from CEO.com and Domo finds that 68 percent of Fortune 500 CEOs have no social media presence. Among the 30 percent who do, they only use one social channel. Here LinkedIn was the chosen platform.

In contrast to that study, it does appear that C-level executives within direct selling are more plugged in to the benefits of these engagement tools. A recent study conducted among members by the U.S. Direct Selling Association (DSA), titled The 2015 Managing Your Company’s Web Presence and Technology Systems Survey, indicates that nearly six in 10 companies surveyed report that one or more of their chief-level executives have company-associated social media accounts that they actively engage in
(57 percent).

Additionally, over half of those also indicate that the chief executives create the content for those accounts. At Scentsy, the Idaho-based wickless candle company, it’s common for an executive to personally respond to field achievements or post in conversations on Facebook, the social media platform most used by Scentsy Consultants.

Rick Stambaugh, Chief Information Officer at Utah-based company USANA, refers to the focus of today as “Digital Humanism.” He says, “The consumer-driven Internet of things has many components, but the most prominent one is social.”

As direct sellers work toward more fully embracing the Social Age and everything that comes with it, a few things are clear…

Click here to read the full article in Direct Selling News.

The Future of Direct Selling in the U.S.

by Andrea Tortora

Click here to order the October 2015 issue in which this article appeared or click here to download it to your mobile device.


Direct selling in the United States is undergoing a transformation fueled by innovative approaches rooted in classic business practices. The power generators leading the way for direct selling as a channel of distribution can be found in what Direct Selling News has identified as the upper middle market: those companies with annual sales roughly between $300 million and $1 billion.

Because most direct selling companies are privately held and many decline to disclose their financial results, it is difficult to create a definitive list. Our research honed in on a group of more than 30 U.S.-based companies, most of which are experiencing significant growth. Some of them are on the cusp of reaching $300 million, and some likely have recently passed the $1 billion mark. But together they are critical to direct selling’s competitiveness and future. They tend to be among the fastest growing when it comes to revenue, and they account for a large slice of the job creation pie.

An in-depth analysis of this group reveals a high level of consistency when it comes to executing on key common strengths. The ability of these companies to focus in on products, customers, serving their salesforce and creating a culture that reinforces a sense of family put them on track to shape the future of direct selling in the U.S.

Companies emphasize each area in different ways, but in general these leaders:

  • Harness data. The upper middle market knows how to mine the data it has to gain insights that lead to more and better sales. Executives train leaders and consultants to use data to open doors that might otherwise remain closed.
  • Stay true to classic business practices. Technology and social media do not replace person-to-person interactions, they complement them. Upper mid-market firms build relationships with customers that maintain the consultant-client affiliation but also allow the customer to have a connection with the company itself.
  • Use compensation plans that span all levels of engagement. To cultivate trust and long-term relationships, comp plans are created to appeal to new customers, product enthusiasts, fierce advocates and influencers—all the way up to the entrepreneur who is all in. Payments also follow a more modern schedule.
  • Foster an entrepreneurial spirit. Consultants are allowed and encouraged to go far with personal marketing (think YouTube videos) while maintaining brand identity. Companies deliver superior and frequent training and messaging to make this happen.
  • Maintain a laser-focus on selling. The sale of a product, a group experience or an opportunity all lead to more sales, which generate positive results.

No matter the specific approach, one thing all upper middle market companies excel at is …

Click here to read the full article at Direct Selling News.

 

 

Nerium Soars to #12 on Inc. 500|5000 List

Today, Inc. magazine announced its 34th annual Inc. 500|5000 List, and the exclusive ranking once again features several direct selling brands. The Inc. 5000 is a list of America’s fastest-growing private companies, with the Inc. 500 representing a special ranking of companies in the top 10 percent.

Eight direct selling companies are included in this year’s list, and they represent a wide variety of categories: consumer products, health, travel & hospitality and energy. The growth increase spans an even greater range from a very respectable 125 percent (Beachbody) to a whopping 16,617 percent (Nerium). Nerium has only been in business since August 2011, making this percentage growth number even more impressive.

Limited to U.S.-based, privately held companies, the Inc. 5000 measures revenue growth from 2011–2014.

The top 500 companies on the list will be featured in the September issue of Inc.

To view the entire list, please visit www.inc.com/inc5000.

12 Nerium International 16,617% $403M Consumer Products & Services
132 Plexus Worldwide 2,833% $310.4M Health
442  It Works! 1,060% $538M Consumer Products & Services
564 Jeunesse 811% $419.2M Consumer Products & Services
915 WorldVentures 491% $315.5M Travel & Hospitality
2210 Isagnenix 177% $725M Health
2814 Ambit Energy 128% $1.5B Energy
2864 Beachbody 125% $938.9M Health

2015 DSN North America 50 List


The DSN North America 50DSN Announces the 2015 North America 50!

This marks the sixth year for the Global 100 list of top direct selling companies in the world, and we would not be Direct Selling News if we did not continually strive to raise the bar.

That is why we are pleased to share with you a new component of the project this year: The North America 50. As a subset of the Global 100, this list draws attention to the most significant players in one of the world’s largest direct selling markets.

As DSN embarks on the annual research for the Global 100, we continue to refine the process as we identify the largest companies and acknowledge their achievements while bringing attention to the magnitude of the direct selling industry as a whole. Within that context, the impact that North American companies have on the global marketplace as well as on those that buy and sell through this channel cannot be overstated.

The following contains the North America 50 ranking for the 2015 DSN Global 100 (based on 2014 revenues). Both lists will be published in the June issue of Direct Selling News.


2015 Rank

Company Name

2014 Revenue

1 Amway $10.80B
2 Avon $8.9B
3 Herbalife $5.0B
4 Mary Kay $4.0B
5 Tupperware $2.60B
6 Nu Skin $2.57B
7 Ambit Energy $1.50B
8 Primerica $1.34B
9 Stream Energy $918M
10 Shaklee $844M

Click here to see the rest of the DSN North America 50 List.

It Works! Founders Donate $3 Million to Michigan State Athletics

Photo: An artist’s rendering of planned updates to MSU’s Alfred Berkowitz Basketball Complex.


It Works! may have relocated its corporate headquarters from Michigan to Florida, but Founders Mark and Cindy Pentecost are still Spartans fans. Michigan State University has announced that a $3 million gift from the couple will fund improvements to its men’s basketball program.

The donation contributes to MSU’s ongoing Empower Extraordinary campaign, which launched publicly in October 2014. Set to conclude in 2018, the campaign aims to raise $1.5 billion for the university. The Pentecosts support Empower Extraordinary alongside more than 30 other leaders and volunteers on the Athletic Director’s Campaign Leadership Council.

Mark Pentecost, It Works! President and CEO, grew up among Spartans fans in MSU’s hometown of East Lansing. As a former basketball coach, he has also witnessed firsthand how athletics can impact an individual’s life. The Pentecosts’ gift will help MSU extend that impact with updates to the men’s basketball offices and practice facilities at its Alfred Berkowitz Basketball Complex. The donation also establishes an endowment for further facility improvements in the future.

“Prior to entering the direct selling industry, I was a teacher and high school basketball coach trying to help kids accomplish their goals. I still feel like I get to be a coach every day, but now on a larger scale with thousands of It Works! team members around the world,” Mark Pentecost told DSN. “Giving back to the student athletes at MSU is something we’ve always wanted to do, and we hope it’ll help them continue to perform at the highest level and reach their dreams.”

Who Will Summit Next?: Reaching $1 Billion

by J.M. Emmert

“Life’s a bit like mountaineering,” said Sir Edmund Hillary. “Never look down.”

It’s what direct sellers do, too—never look down. The direct selling industry is an industry comprising people who seek to achieve things never thought possible, scaling new heights, whether reaching inside oneself to achieve personal goals or driving a company toward what is considered the Mount Everest in direct selling, the $1 billion summit.

But like Hillary, only a few direct selling companies have managed to reach that elite status. In the 159-year history of direct selling in the United States, Avon was the first to achieve the feat in 1972. Amway followed in 1980. In 1996, Mary Kay Inc. and Tupperware both reached $1 billion. In 2004, Nu Skin and Herbalife joined the group. But another nine years passed before the next company, Ambit Energy, reached $1 billion in sales. Many companies are turned back in their efforts to reach that summit. But why? What makes it so difficult?

The simple answer is that growing a company to such an extraordinary level brings with it new challenges, and, like experienced climbers, extraordinary companies know to stop when the footing gets treacherous, even if the summit is close. Because it is an industry focused on people, direct selling companies understand that the welfare of the entire team is more important than putting up numbers. One tragic misstep and the whole team could come tumbling down.

Orville Thompson, CEO of Scentsy and a former chairman of the U.S. Direct Selling Association, once analogized direct selling and the quest to reach $1 billion to scaling Borah Peak in Idaho. At 12,668 feet, Borah Peak, or Mount Borah, is the highest mountain in the state and among the 100 highest summits in the Rocky Mountains. The most popular route to the top of Borah Peak follows the southwest ridge, ascending 5,262 vertical feet from the trailhead in a little more than 3.5 miles. Just prior to reaching the top, climbers encounter Chicken Out Ridge, a thin ridge of rock with steep slopes so intimidating that many abort their summit attempt.

For those chasing after the $1 billion summit in direct selling, the biggest challenge, says Thompson, is simply finding the right path to follow, those “smooth areas worn down by countless others who have blazed trails.” When they reach that direct selling version of Chicken Out Ridge, they must “challenge their skills and test their fears” in the face of new obstacles.

Despite the risks, more companies than ever appear to be chasing the summit. Direct Selling News research has identified 13 U.S. companies with net sales at or approaching the $500 million to $1 billion range and experiencing strong growth. Having as many companies on their way to the $1 billion summit as there are currently at the peak is a testament to the strength of the channel. Here is a closer look at the contenders:

On the Summit Push

ACN
In 2011 ACN posted $550 million in sales, down from the previous year’s $553 million. However, the company came back strong the past two years, achieving $582 million in 2012—a 5.8 percent increase—and $700 million in 2013—a 20.2 percent increase. This June, the telecommunications and essential services company launched in Mexico, the seventh-largest direct selling country and the company’s 24th market.

Stream Energy/Ignite
Stream Energy/Ignite has been camped near the billion-dollar summit for the past four years, breaking the $900 million ceiling in 2010. After two years of down sales, the company came back strong in 2013 with $27 million over the previous year—a 3.2 percent increase—putting it at $867 million. The company has seen continued growth, particularly in Hispanic markets, and has significant expectations for company growth across the board in 2014 and beyond as it diversifies its service offerings, allowing it to sell nationwide.

Thirty-One Gifts
Of the 13 companies, only Thirty-One Gifts uses the party plan method of selling, joining Mary Kay and Tupperware as the only companies in the Top 17 of the Global 100 ranking that employ this sales approach. What makes that especially interesting is that, according to the U.S. Direct Selling Association, the party plan method of selling has decreased 4 percent in each of the past two years, going from a high of 31 percent in 2011 to just 23 percent in 2013. The person-to-person method, on the other hand, accounted for two-thirds of sales in 2013, according to the DSA.

Thirty-One also has made one of the fastest ascents in recent years. The company posted sales of $100 million in 2010 and then climbed to $482 million in 2011, a 382 percent increase. Sales continued to rise in 2012—a 48.9 percent increase to $718 million. In 2013, Thirty-One achieved a 6.2 percent increase, ending the year at $763 million. Its four-year growth rate: 663 percent.

USANA
USANA, which surpassed $100 million in its first six years, has been the steadiest climber in the group over the past few years. It has maintained an average of $67 million in sales growth annually for the past three years—ranging from a 10.6 percent to 12.5 percent increase—to bring it to $718 million. The company reported $182.4 million in sales for the first quarter of 2014, a 7.9 percent increase over the prior year; second quarter results saw a 0.4 percent decrease, with $188.3 million compared to $189.1 million in 2013; and the third quarter saw record sales of $191.9 million, a 10.5 percent increase over the prior-year period of $173.7 million. For the first half of 2014, USANA generated sales and customer growth in nearly every market in which it operates. Strong growth was seen particularly in Mainland China, the Philippines, Singapore and Mexico.

Expectations are that the wellness industry in particular will continue to thrive in the coming years. In a Sept. 29 article on the health and wellness industry’s global performance, Euromonitor International reported that the United States was leading all countries in 2014 with more than $160 billion in sales. The global industry is expected to reach $1 trillion by … Click here to read the rest of the story

It Works! Brings ‘That Crazy Wrap Thing’ to New Zealand

It Works! has officially opened for business in New Zealand, the 19th market to offer the company’s skincare and nutrition products.

Fast-growing It Works! is recruiting New Zealand “wrapreneurs”—named after the brand’s signature tightening and toning wrap—to join its 90,000 active distributors around the world. The company has already expanded into neighboring Australia, Canada and select areas of Europe.

“We’re eager to welcome New Zealanders to our team and help spread black, green and bling across the world,” It Works! CEO Mark Pentecost said in a nod to the company’s signature colors.

The 13-year-old brand has generated three-year growth of 1,565 percent, earning it the No. 290 ranking on this year’s Inc. 500 list. Earlier this year, It Works! relocated to a new $10-million global headquarters in Palmetto, Florida. The waterfront property contains space for the company to increase its 100-member corporate team by half.

90 Days of Direct Selling – Day 36

DSN_90Days_Email_Signature

It Works!

ItWorks

2013 Net Sales: $456 million

Country: USA

It Works! is a consumer-lifestyle company known for its one-of-a-kind It Works! Wrap as well as its business opportunity to get out of debt. It Works! offers four lines of products: Body, Skin, Greens and Lifestyle.

 

2012 Rank: 56
2012 Net Sales: $200 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics, personal care, wellness
Markets: 16
Salespeople: 333,000
Employees: 95
Headquarters: Bradenton, Florida
Executive: Mark Pentecost
Year Founded: 2001
Website: http://www.myitworks.com

Fast Growth Propels Direct Selling Brands onto Inc. 500

Inc. magazine has announced its 2014 Inc. 500|5000, and the exclusive ranking once again features several direct selling brands. The Inc. 5000 is a list of America’s fastest-growing private companies, with the Inc. 500 representing a special ranking of companies in the top 10 percent.

Limited to U.S.-based, privately held companies, the Inc. 5000 measures revenue growth from 2010–2013. This year’s list includes direct sellers Plexus Worldwide (No. 8); Jeunesse Global (No. 258); It Works! (No. 290);North American Power (No. 476); Ambit Energy (No. 2074);WorldVentures (No. 2333); Viridian Energy (No. 2381); 5LINX (No. 2916);YOR Health (No. 3528) and Isagenix (No. 3764). The full Inc. 500 list will appear in the September 2014 issue of Inc. magazine.

Plexus Worldwide, the highest ranking direct seller on the list, got its start eight years ago in Scottsdale, Arizona, and has since expanded into Canada and Australia. With a strong focus on weight-loss and pain-relief products, Plexus is the No. 2 health company in this year’s ranking. The direct seller generated 16,458 percent growth over three years, closing out 2013 with $159.8 million in revenue.

“At Plexus, our mission is to enhance the health, wealth and happiness of our Ambassadors and employees. And we’re seeing that happening across the country,” Plexus CMO Alex Clark shared in a recent feature for DSN. “Eventually we’ll see it happen across the world. I anticipate being here for a long time because what Plexus has is a true partnership between its executives and Ambassadors.”

Based in Altamonte Springs, Florida, Jeunesse Global recorded 1,788 percent growth over the past three years. Jeunesse has expanded aggressively into 92 markets since launching in 2009. The company’s personal-care and nutrition products generated sales of $224 million in 2013.

With three-year growth of 1,565 percent, It Works! ranked No. 290 in its fourth consecutive year on the Inc. 5000. The company generated revenue of $456.2 million in 2013 and recently upsized its corporate headquarters to a new facility in Bradenton, Florida. It Works! markets a line of health and wellness products anchored by its Ultimate Body Applicator, a 45-minute tightening and toning wrap.

In 2011, Forbes named North American Power to its list of America’s Most Promising Companies. The U.S. energy provider has lived up to its promise with 991 percent growth over the past three years. North American Power’s retail electricity and natural gas services generated $263.2 million in revenue last year.