This weeks Breaking MLM News, is the latest Top 100 Global Direct Selling Companies released by Direct Selling News at their Global Celebration in Dallas.
After being contacted by dozens of iWowWe reps, I went and took a look at this company. It is not everyday you see a company move from direct selling vender, to a full blown network marketing company. Well what caught my eye was their passion for the U.S. Military and their families. What this video.
Direct Selling News, the leading trade publication for the direct selling industry, announced the 2011 DSN Global 100, the magazine’s annual ranking of the top revenue-generating direct selling companies in the world. The final list will be published in the June issue of Direct Selling News.
The Top 10 companies, which generated more than $42 billion in net sales for 2011, were: Avon (1), Amway (2), Herbalife (3), Natura (4), Vorwerk (5), Mary Kay (6), Tupperware (7), Oriflame (8), Nu Skin (9) and Belcorp (10).
Sixteen countries were represented in the Global 100 ranking—Brazil, Canada, China, Germany, India, Japan, Malaysia, New Zealand, Peru, Russia, South Korea, Sweden, Switzerland, Thailand, United Kingdom and the United States. In all, the DSN Global 100 companies achieved over $63 billion in net sales in 2011 through more than 40 million sales consultants. – Source – Direct Selling News
DALLAS, Texas, Apr. 20 – /EWire/ —
Stream Energy continues its reign as the world’s largest network marketer of energy, with the announcement that the firm’s marketing arm Ignite ranks 12th internationally on the recent list of the Top 100 Direct Selling Companies in the World as published in Direct Selling News.
The company moved up two spots from last year’s ranking of 14th. In 2009, the firm had achieved a ranking of 16th.
“It is immensely gratifying to once again claim the top spot among energy network marketing firms in the world,” said Stream Energy Chairman Rob Snyder. “Among the top 12 network marketing firms across all industries, Stream Energy is not only by far the youngest, but we are also the only firm whose success has been created solely based on sales in the domestic U.S. marketplace.”
“It is a testament to the power of this concept, that in the roughly seven years since our firm’s launch we are on our way to $5 billion in total sales. It is directly attributable to our industry-leading focus on helping entrepreneurs of all walks of life participate in energy deregulation in a manner previously not available to them,” Snyder added.
Stream Energy, an energy provider based in Dallas, provides service to customers in five states. The firm has generated billions in total revenues, and it has been highly esteemed in JD Power and Associates consumer surveys regarding both residential and commercial energy service.
About Stream Energy
Since Rob Snyder, Pierre Koshakji and Stream Energy secured a Texas retail electric provider license in early 2005, the privately held company has become the longest-tenured network marketing energy company and one of the fastest-growing companies in American business history. The company expanded from an initial Texas operational base into the Georgia natural gas market in 2008; the Pennsylvania electricity market in 2010; and the Maryland and New Jersey electricity markets in 2011. Stream Energy provides a full-service approach to customer relationships, supported by the firm’s network marketing arm, Ignite. Stream Energy has won Awards of Excellence from the prestigious Platts Global Energy Awards, and Ignite is consistently ranked among the top direct selling companies in the world.
For more information:
Paul Thies, 214-800-4409
Source – www.streamenergy.net
Mississippi Governor Enacts DSA-Supported Legislation
DSA’s government relations professionals achieved a proactive legislative win this week when Mississippi Governor Phil Bryant signed into law legislation including the DSA model direct seller definition for unemployment compensation purposes. Such proactive legislation is part of the Association’s ongoing strategy to see the passage of such legislation in all jurisdictions. The language clarifies existing law to make the independent contractor status of direct sellers as clear as possible.
This new law brings Mississippi in line with the majority of other states and federal law, which treats direct sellers as statutory non-employees. The language was added to federal law via the Tax Code in 1982 when the U.S. Congress passed, and President Reagan signed, the Tax Equity and Fiscal Responsibility Act. The independent contractor status of direct sellers has long been recognized as a basic tenet of the direct sales channel. This new law establishes three conditions which, if satisfied, qualify a direct seller as an independent contractor for unemployment compensation purposes.
DSA and its member companies have been working on this proposal in Mississippi for two years. Earlier in 2012, Anne Crews (Mary Kay), Bryan Harrison (Amway) and Susan Eerdmans (Avon) traveled to Jackson, Miss., in support of this effort. At that time, the delegation spoke with approximately 20 legislators including the Speaker of the House and the President Pro-Tem of the Senate. They also met with the chairmen of the committees of jurisdiction in Mississippi’s House and Senate, as well as with Dale Smith, CFO of the Mississippi Department of Employment Security. DSA staff later spoke with Governor Bryant about the bill while he was visiting Washington, D.C.
DSA’s government relations staff very much appreciates the support of their primary sponsors, Senator Merle Flowers and Representative C. Scott Bounds, for their support of this important effort. Source – Direct Selling Association
Editor’s note: Jeremy Liew is a managing director at Lightspeed Venture Partners. Follow him on Twitter @jeremysliew.
The April 5 edition of The Wall Street Journal had two articles about direct selling. One notes that the key driver of Coty’s takeover attempt of Avon is the ability to move additional product through Avon’s dominant direct sales channel in Brazil.
Avon’s door-to-door sales force in Brazil has given it a leading role in the country. Rivals who sell through traditional stores — such as L’Oréal and Procter & Gamble — have struggled for as much traction.
Coty Chairman Bart Becht said in an interview he would like to use Avon’s direct-sales channel to push his company’s lower-end, mass-market brands such as Adidas and Playboy colognes. The company’s main business is designer and celebrity fragrances.
“A key win for Coty is to get into Brazil,” Mr. Becht said. “Door-to-door is a key way of getting into the market.”
The second article is about Tupperware’s direct sales efforts in Latin America, also with a focus on cosmetics.
Tupperware Brands Corp., the maker of plastic food containers, has a surprising path to sales in Latin America: perfume and skin cream.
After realizing about a decade ago that consumers in the region spent more than 20 times on beauty products than they did on containers for leftovers, Tupperware altered its strategy.
In 2005, it bought six beauty brands, spending $557 million. Since then, the beauty business has quietly grown to account for 26% of Tupperware’s total revenue.
In 2011, Tupperware’s revenue totaled $2.6 billion. Sales for South America increased 50%, largely driven by Brazil. And about half of Tupperware’s $711 million in sales in Latin America came from the beauty products category.
As my partner Bipul Sinha noted in a post last year, direct selling is one of the most interesting opportunities in commerce in the time of social. Direct selling is being invigorated right now, not just in Latin America, but also in the US, due to three key reasons.
The first is the economy. In this slow economy, people are more willing to supplement their income (and seek alternative career paths) than they have been over the last few decades. Direct sales is one of the most attractive and accessible ways for people to supplement their income. The last golden age of direct sales was during a period when women had few traditional career path options. As more women found success in the mainstream economy, the labor pool available to direct sales diminished. In this slow recovery, with unemployment still high, more people are willing to explore direct sales.
The second is the birth of social media. Twitter, Facebook, Pinterest and even email help all of us maintain our weak social ties as well as our strong ones. According to the Washington Post:
The average Facebook user has 245 friends. But the average friend on Facebook has 359 friends. …
One thing to note ahead of the Timeline switch: Users can reach an average of 150,000 other people through friends of friends,
When you add Twitter and Facebook, that is a tremendous reach for an average person. Direct selling is all about selling through your network – friends and friends of friends. The social networks make this whole network far more visible, and accessible, than ever before.
The third reason is tablets and the internet. These devices, combined with lightweight SaaS ERP, CRM and SFA software, dramatically improve the productivity of direct sales reps. In the old days, a direct sales rep would call on the people that they remembered to call on, host a party when they got around to it, and had to have physical samples, or page through catalogues, to show what they had in stock. They took orders on handwritten forms and faxed them in to the main office. And making repeat sales meant going back to each customer in person.
Today, a sales rep can get prompted on their iPad with who they should be calling on. Perhaps because the prospect has shown a propensity to “like” other similar products, perhaps because they clicked through on a FB post, or perhaps because it’s been two months since they last bought something. They can manage their activity to industry best practices, making sure that they are splitting their time appropriately between calling on new customers and servicing existing ones. They have an infinite catalogue, with video and color photos from multiple angles for each item, available on their tablets. They can take orders on the spot, swiping a credit card through a dongle. And happy customers can self-serve and place new orders directly on a website, without the sales rep having to go back to see them in person. This is a massive increase in productivity.
We’re starting to see a new generation of direct selling companies emerge, including companies like Thirty One Gifts, Stella and Dot, Chloe and Isabel, Gigi Hill, Miche Bags. and J Hilburn. At Lightspeed, we’re tremendously excited about the opportunity to build very big commerce companies in this space.
What next generation direct selling companies have I missed from this list?