MLM Weekly News: Network Marketing Financials Are Steady And Companies Are Ready For The Holiday Season

Direct Sellers Look Forward to a Prosperous Holiday Season, Minus Traditional Advertising 

According to the National Retail Federation, holiday sales across all industries have increased by an average of 3.3 percent for the last 10 years. And, for some retailers, the holiday season can represent as much as 20-40 percent of annual sales.

Direct Selling Assocation

Given how much holiday sales impact a company’s full-year earnings, countless retailers carry out extensive holiday advertising campaigns across both traditional and social media platforms.

But, what does that mean for direct sellers who rely on word-of-mouth marketing and grassroots promotions efforts rather than full-scale advertising campaigns during the holidays?

 

Network Marketing Pros In The News

Naveen Anand has been promoted to Global Marketing Director of Core Nutrition for Amway.

Bart Dangerfield is now Vice President of Marketing at RBC Life.

Ken McDonald and Tom Zimmer, both industry veterans, have joined Univera’sBoard of Directors.

Direct Selling Companies In The News

ACN recently donated $25,000 to the Cats Care Foundation at the Cats Care 2013 My Hero Gala. Proceeds from the My Hero Gala support two important organizations: the Novant Health Community Care Cruiser, which delivers quality healthcare to youth in underserved communities across the Charlotte area, and Cats Care Foundation, with its commitment to education, wellness and the fight against hunger.

Amway employees have built reading corners for 12 Grand Rapids elementary schools as part of the Heart of West Michigan United Way Schools of Hope program. The structures, which are made of oak and have cushions and bookcases attached on each side, will be delivered shortly. This initiative is taking place in conjunction with United Way’s Schools of Hope in-school tutoring program, which pairs trained volunteer tutors with struggling readers in first through third grades.

In other company news, Amway announced it will be donating $100,000 in cash and product to support relief and recovery efforts in the Philippines following Typhoon Haiyan. Amway distributors and employees will provide the support in partnership with local non-government organizations and relief agencies, especially those that focus on children, in alignment with their One by One Campaign for Children.

LifeVantage recently announced its first-quarter 2014 financial results. For the first fiscal quarter ended Sept. 30, 2013, the company reported net revenue of $51.3 million, compared to $52.9 million for the same period in fiscal 2013. Revenue for the quarter was negatively impacted 7.4 percent by foreign currency fluctuation. Gross profit for the first fiscal quarter ended Sept. 30, 2013, was $43.5 million, compared to $45.1 million for the same period last year, delivering a gross margin of 84.8 percent, compared to 85.2 percent in the prior-year period. View the full press release online.

Mannatech reported net sales for the third quarter of 2013 were $44.4 million, an increase of 3.3 percent as compared to $43 million in the third quarter of 2012 and a net loss of $800,000 for the third quarter ending Sept. 30, 2013, as compared to a net income of $2.2 million for the third quarter of 2012.

Net sales for Asia/Pacific increased 23.6 percent to $22 million, as compared to $17.8 million in the third quarter 2012, due to an increase in the number of active associates and an increase in the revenue generated per active associate and member. Net sales for

North America declined 9.7 percent to $18.7 million as compared to $20.7 million in the third quarter of 2012. The decline in revenue is due to the net sales deferral of $1.2 million for the loyalty program implemented in the third quarter of 2013 and a net reduction in active members and associates. Net sales for Europe, the Middle East and Africa declined 17.8 percent to $3.7 million as compared to $4.5 million in the third quarter of 2012. This decline was primarily due to a decrease in the average revenue per associate and member.

Recruiting increased 4.4 percent in the third quarter of 2013 as compared to the third quarter of 2012. The number of new independent associates and members for the third quarter of 2013 was approximately 28,800, as compared to 27,600 during the same period in 2012. The total number of independent associates and members based on a 12-month trailing period was approximately 239,000 as of Sept. 30, 2013, as compared to 233,000 as of Sept. 30, 2012. View the full press release online.

Nu Skin won the Gold Award in the Golden Bridge Awards in the category “Best Overall Company of the Year.” The honor was based on Nu Skin’s business performance and overall growth. The Golden Bridge Awards are an annual industry and peers recognition program honoring best companies of all types and sizes in North America, Europe, the Middle-East, Africa, Asia-Pacific and Latin America. Nu Skin’s executive management team was named Management Team of the Year by the Consumer World Awards. The award recognized the achievements the company has made in recent years in revenue growth and innovation. The Consumer World Awards also honored the ageLOC product brand as one of the 100 Best New Consumer Products and Services from around the world.

Origami Owl co-sponsored Big Machine Label Group’s Country Music Awards (CMAs) after-party in Nashville, Tenn. Attendees were invited to make a personal locket for themselves and one for the kids at nearby Vanderbilt Children’s Hospital. Party attendees included Tim McGraw, Taylor Swift, Rascal Flatts, The Band Perry, Keith Urban and Lucy Hale. Origami Owl founder Bella Weems presented Kara Adams, Chair of Vanderbilt Children’s Hospital Family Advisory Council, with 250 Living Locket® necklaces for the kids.

Talk Fusion and SPCA Florida, the state’s leading animal welfare agency based in Lakeland, are partnering to establish an emergency shelter to assist with Hillsborough County’s stray dogs.

Thirty-One Gifts has announced Ronald McDonald House Charities (RMHC) as its national philanthropy partner. Through their Thirty-One Gives philanthropy initiative, the organization will provide financial support, product donation and sales consultant volunteer involvement. Thirty-One’s support includes a $450,000 monetary donation over three years and 150,000 welcome bags for families staying at all Ronald McDonald Houses in the U.S. The company will also introduce a new product in their spring 2014 line that will provide a portion of the proceeds from each unit sold to RMHC.

USANA True Health Foundation has pledged to donate $20,000 to International Relief Teams, a non-profit international humanitarian organization, to aid victims of Typhoon Haiyan. The money will serve 15,000 people for one week.

Youngevity International recently announced fiscal results for the third quarter of 2013. For the three months ended Sept. 30, 2013, Youngevity’s revenue increased three percent to $21.2 million, compared to $20.6 million for the same period in fiscal 2012. The increase in revenue is attributed primarily to revenues of $500,000 from Heritage Makers, Inc., acquired on Aug. 14, 2013.

Youngevity’s gross profit for the three months ended Sept. 30, 2013, increased approximately 3.2 percent to $12.9 million, compared to $12.5 million recorded in the same period last year. The increase in gross profit as a percentage of revenues in the direct selling segment was primarily due to improved efficiencies in fulfillment costs and the economies of scale as a result of the increase in revenues. For the three months ended Sept. 30, 2013, net income was $516,000 as compared to $236,000 for the three months ended Sept. 30, 2012. The increase of $280,000 was attributable to the increase in income before income taxes of $366,000, offset by an increase in income tax provision of $86,000.

For the nine months ended Sept. 30, 2013, the company’s revenue increased 12.8 percent to $62.9 million as compared to $55.8 million for the same period in fiscal 2012. The increase in revenue is attributed primarily to the increase in the company’s product offerings and the number of distributors and customers resulting from its acquisitions during 2012, revenues from Heritage Makers, Inc., acquired on Aug. 14, 2013, and the organic growth of the CLR Roasters private label business. For the nine months ended Sept. 30, 2013, gross profit increased approximately 16.9 percent to $38 million as compared to $32.5 million for the nine months ended Sept. 30, 2012. View the full press release online.

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals