Global Direct Selling Industry in 2015


Few weeks ago the WFDSA (World Federation of Direct Selling Associations) announced 2015 figures it had gathered from local organizations. Before that, we had Direct Selling News magazine’s company-specific sales volumes.

Both reports contain interesting statistics, especially from a comparative point of view. Let’s take a look at these numbers.

Regions and Countries


Q&A with Angela Cretu, Avon’s Group VP Africa & Middle East and GM Turkey

Angela Cretu, Avon VP, Answers Questions From World Of Direct Selling


Angela Cretu graduated from the university in Bucharest, Romania in 1997 and from the London Business School in 2007. In November 1998, she began her career at Avon Romania as Sales Manager. In 2007, Angela became Avon’s Vice President South East Europe & Romania, leading a group of 10 countries. She, then moved to Avon headquarters in New York, as the Global Vice President of Business Model Innovation. She is currently Avon’s Group Vice President Africa & Middle East and GM for Turkey.

It has been more than two years now since we had a Q&A with you following your appointment to Turkey. What were the major challenges in your two years at Avon Turkey and in Turkey, in general?  

Our focus was to understand the dynamic in the market and to engage all necessary resources to strengthen Avon’s position as iconic beauty brand and women empowering movement in Turkey. The main challenge was to drive the transformation in a macro environment that became pretty volatile last year but with our solid experience in this area and staying true to our vision we went through it successfully.


Cost Structures and Profitabilities, Q1 2016

What Does The Q1 Reports Show Us About The Profitability Of Network Marketing?

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Sponsored by:

It has always been interesting to see how direct selling companies compare on various grounds. Where they spend their money and at the end of the day, how much money they generate for their investors absolutely rank among the most interesting ones.

In this article, we will be briefly reviewing 11 direct sellers with varying sizes of business and with different product portfolios. These are Avon, Herbalife, Mannatech, Natura, Nature’s Sunshine Products, NHT Global, Nu Skin, Oriflame, Tupperware, USANA and Youngevity. This review will be based on their 2016 first quarter figures.


The First Quarter in Giants’ Figures

1st Qt Numbers Are In For Public Direct Selling Companies


Sponsored by:

Following the end of the first quarter, the time has come to briefly review the performances of the largest direct sellers. Normally, this analysis has been covering Avon, Herbalife, Natura, Nu Skin, Oriflame and Tupperware. However, Oriflame’s report would come after mid-May so I have decided skip it this time.

Again, the focus in this review will be on these companies’ revenue growth performances. As you see below, Herbalife and Natura posted positive figures whereas Avon, Nu Skin and Tupperware’s growth figures were negative.


World Of Direct Selling Q & A with Angela Cretu, Avon’s Group VP Eastern Europe and GM Turkey

angela.cretuThis week we are having a Q&A with Angela Cretu. Angela graduated from the university in Bucharest, Romania in 1997 and from the London Business School in 2005. In November 1998, she began her career at Avon Romania as Sales Manager. In 2007, Angela became Avon’s Vice President SEE & Romania, leading a group of 10 countries. She, then moved to Avon headquarters in New York, as the Global Vice President of Business Model Innovation. In 2011, Angela was appointed to the position of Group Vice President Avon Eastern Europe and GM Russia. In February 2014, she moved to Istanbul with the role of Group Vice President Eastern Europe and GM Turkey.

First, congratulations for your new post in Turkey! How do you see the Turkish direct selling market in general? What opportunities and what threats, if there are any, do you observe?

Thank you so much! My early insights in the Turkey consumer profile are showing a very distinct need for personal service, instant gratification and emotional connection with the brand. These together with all the demographic, economic and social data are telling me that direct selling model fits extremely well the market shopping profile and I am very excited by its current penetration and future potential.

At your most recent post, you were managing Avon’s operations in Russia, together with the Eastern Europe Group. If you compare the Russian and the Turkish direct selling markets, where do they differ from and where do they resemble each other?

They are similar more on beauty consumption profile than in direct selling behavior. Culturally the countries are pretty different especially in the areas of community affiliation, people-to-people connection and social habits.

I find Turkish people very family and community-oriented, curious, sociable, entrepreneurial and easy to connect with. In Russia, they equally have very strong values especially related to the family but one needs to gain their full trust and respect before getting into their circles.

These aspects are generally differentiating the direct selling impact and potential. Even so, direct selling in Russia accounts for 22% of total industry and it keeps its relevance unchanged over the last years, despite retail aggressive expansion. In Turkey, I have seen very strong numbers like 750K sales force count growing every year, which means to me that the channel is very solid.

Economically, all emerging economies have somewhat been shaken due to the changes in the policies in the US. On top of this, Turkey has its own economic problems. How do you think all these would impact the direct selling industry in Turkey?

Let’s start with consumer journey during economic turmoil: consumers’ confidence declines, their spare time is shrinking, discretionary spending is suffering, and they need reassurance that their most precious resources, money and time, are secured during turbulent times.

Now, let’s get back to direct selling industry: we do offer personal service protecting their time and we do offer great value for the products they purchase helping their family budgets.

If it is to continue with women empowerment mission that direct selling offers, in the difficult times the relevancy of our channel would be even higher, as it directly offsets the unemployment impact and overall the declining income of small entrepreneurs.

We all know Avon is not having one of its magnificent periods globally. Within this context, how do you compare Avon’s performance in Turkey with other markets?

avonAvon is an iconic brand with a heritage of almost 130 years. 6 million representatives around the world are more than motivating for all of us to tackle all our recent global challenges and step by step restore Avon to its rightful position as an iconic beauty brand with products that consumers love and demand, reinforce our global leadership in direct sales, and continue to fulfill our mission of empowering women. Avon Turkey has very strong brand health indicators in terms of consumer awareness and penetration compared with other players in the market but also compared with other countries in the Avon portfolio.

Any major areas that you plan to tackle before others in Turkey?

We are looking to boost customers and representatives transactions with a compelling omnichannel shopping experience through improved portfolio of innovation and competitive commercial activation. We do look to evolve our position as a beauty social shopping channel and we aim to transform Avon in a compelling choice for “her” in the modern age.

Thank you so much, Angela. Would you like to add anything before we conclude?

I am very happy to see that there is a very active community of experts in the direct selling industry. And I congratulate you for your impressive activity and very good support for all direct sellers.


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MLM News: DSA Defines Direct Selling, Vemma HIt $100 Million In Six Months, Blythe The Most Hated Stock, Youngevity Owns Top Selling USA Coffee Brands


The news in and around the Direct Sales aka Network Marketing World is roaring right now from Wall Street to Main Street. So what is it, that has everyone talking? I think it is the fact, that from regulators to critics, people are starting to recognize legit network marketing companies from illegal ponzi and pyramid money schemes.  This new awareness is opening the doors for investors all the way down to brand new independent professionals getting involved in direct sales in one form or another.

BK Boreyko, Co-founder and CEO of VEMMA, home of the Young Peoples Revolution shot me over the numbers for the first half of 2013…

Starting in January – $14 million, February – $15 million, March – $18 million, April – $19.1 Million, May – $19.3 million, and June – $18.1 million. That’s a total over 103 million dollars! And I might also add that in June VEMMA acquired over 24K new customers and Brand Partners!



Youngevity International (YGYI) Coffee Division Announces Agreement with Marketing Management Inc.

San Diego, CA – July 8, 2013 – CLR Roasters, a wholly owned subsidiary of Youngevity International Inc. (OTCQX: YGYI) (, announced today that it has signed an agreement with Marketing Management Inc’s (MMI) subsidiary brokerage firm Market Solution Inc. (MSI), to represent CLR Roaster’s Café La Rica Espresso and Josie’s Java House ground coffee brands on a nationwide sales campaign.

Café La Rica holds the third place in sales per unit through Walmart stores with a recent increase of 46%. Over the past 52 weeks, Café La Rica has seen a sales increase of over 300% through Winn-Dixie stores. Café La Rica has also been authorized for sale in 318 Publix Super Market locations in Florida.

Josie’s Java House is a boutique styled ground coffee that comes in a variety of blends and flavors. In 2014, the Josie’s Java House line is to be expanded to include Hazelnut Cream through Walmart.

Café La Rica and Josie’s Java House coffees have full distribution through Sedano’s Supermarkets, the largest Hispanic Supermarket chain in the country. As well as being distributed by Associated Grocers, which services 450 independent stores throughout the state of Florida. Discount Drug Mart has added the Josie’s coffee line and Café La Rica Espresso to all 72 of their stores in Ohio with repeat orders. (Read the full Press Release)

CVSL And Tomboy Tools Sign Letter Of Intent   MarketWatch


CVSL And Tomboy Tools Sign Letter Of Intent


DALLAS and DENVER, July 12, 2013 /PRNewswire via COMTEX/ — Tomboy Tools, Inc., an Entrepreneur Magazine “Top 100 Brilliant Company,” and CVSL Inc. [stock symbol: CVSL] announced today that they have signed a letter of intent for Tomboy Tools to become part of CVSL’s family of direct selling companies. (Read Full Press Release)


Blyth Inc. Is NYSE’s Most Hated Stock: Should It Be Your Most Loved?

If short interest as a percent of equity float is an indicator of popularity, Blyth Inc. (BTH) is the most hated stock on the NYSE. However, an in-depth look into the company reveals some key factors that may create an extremely positive risk reward. The market is currently offering shares at unsustainably low valuation, four times management’s 2013 cash flow guidance. Pessimism toward the company is extreme with 75% of the current float short. Management is aggressively repurchasing shares of the company. 14% of the equity float has been repurchased in the last three quarters at higher stock prices than today. The company has repositioned its balance sheet resulting in nearly five years prior to its senior notes maturing. The company’s largest business segment and the focus of the short sellers, appears to be turning a corner. Now may be the perfect time to become a contrarian and invest in Blyth Inc. (Read The Full Report)


Government guidelines soon to differentiate genuine, ponzi schemes

To make a clear distinction between genuine direct-selling companies and fraudulent ponzi schemes, the government will soon put in place a set of ‘model guidelines’ to be followed by different states in such cases.

“These guidelines are close to being finalised by the Consumer Affairs Ministry and the Corporate Affairs Ministry has given its suggestions and other inputs in this regard,” union minister Sachin Pilot said.

“There was a meeting of consumers affairs secretary,corporate affairs secretary, myself and other stakeholders on the issue. Once we put these standard guidelines in place, the ambiguities about genuine companies and fraudulent schemes would go away,” the corporate affairs minister told PTI in an interview here. (Read Full Report Here)

Direct Selling

Direct selling is a business model that offers entrepreneurial opportunities to individuals as independent contractors to market and/or sell products and services, typically outside of a fixed retail establishment, through one-to-one selling, in-home product demonstrations or online. Compensation is ultimately based on sales and may be earned based on personal sales and/or the sales of others in their sales organizations.

Direct sellers may be called distributors, representatives, consultants or various other titles. They may participate in various ways, including selling the products themselves or through their sales organizations, providing training and leadership to their sales organizations, referring customers to the company and purchasing products and services for personal use.

Direct Selling Assocation


Network Marketing Pros In The News

Doug DeVos and Steve Van Andel (Amway) have been named Business Persons of the Year by the Economic Club of Grand Rapids. They were honored at a dinner at DeVos Place that was headlined by Hillary Clinton, former secretary of state, U.S. senator and first lady. Steve was also named Chairman of the Board of the U.S. Chamber of Commerce this week, where he will serve a one-year term.

Kirsten Aguilar (Vice President of Marketing) and Leslie Boyd-Bradley (Director of Distributor Development) have been named to SeneGence’s non-profit organization, the Make Sense Foundation.

Diahanna Brown, Vice President, Worldwide Events and Promotions for Herbalife, was awarded the Humanitarian of the Year Award by Union Rescue Mission in Los Angeles.

Steve Hastings has been appointed Executive Vice President of Sales & Marketing for RelivBrett Hastings has been appointed Senior Vice President and Chief Operating Officer.

Juliet Morgan has been appointed Chief Marketing Officer at foru international.

Mark Patterson has been promoted to Executive Vice President of Vemma.

Andre Peterson, former Director of Global Public Relations of Morinda Bioactives, passed away in his home on June 1, 2013. Andre had been with Morinda Bioactives for 12 years, having also worked at WordPerfect and Managed Wealth Financial.

Monica Wood is now Vice President of Consumer and Distributor Insights forHerbalife.

Network Marketing Companies In The News

The 11th Annual American Business Awards, aka the Stevie Awards, were presented to honorees during a gala banquet on June 17, 2013 in Chicago. The second round of winners will be announced on Sept. 16, 2013 in San Francisco. DSA congratulates the following direct selling companies for their achievements.


  • Bronze Stevie Award—ACN’s 20th Anniversary Celebration—Best Tradeshow or Convention
  • Bronze Stevie Award—ACN Celebrates 20 Year Anniversary—Motivational Video


  • Bronze Stevie Award—Isagenix Celebration 2012—Live Event
  • Bronze Stevie Award—IsaDerby—Best Internal Recognition/Motivational Event
  • Bronze Stevie Award—Experience Isagenix—PR Video
  • Bronze Stevie Award—Company of the Year—Health Products & Services

Pending member North American Power

  • Gold Stevie Award—Management Team of the Year—Consumer Services Industries

Rodan + Fields Dermatologists

  • Gold Stevie Award—Company of the Year—Consumer Products—Durables

Stream Energy

  • Silver Stevie Award—Paul Thies, Senior Director of Communications—Communications Professional of the Year


  • Gold Stevie Award—Management Team of the Year—Consumer Products Industries
  • Silver Stevie Award—Communications or PR Campaign/Program of the Year—Social Media Focused
  • Silver Stevie Award—Dan Macuga, Chief Communications Officer—Communications, Investor Relations or PR Executive of the Year
  • Silver Stevie Award—Human Resources Department of the Year—Health Products and Services
  • Silver Stevie Award—USANA Corporate Rebrand—Brand Executive of the Year—Health Products & Services and Pharmaceuticals
  • Bronze Stevie Award—Ashley Collins, Executive Director of PR and Social Media—Communications, Investor Relations or PR Executive of the Year
  • Bronze Stevie Award—Dave Wentz, CEO—Executive of the Year—Health Products & Services
  • Bronze Stevie Award—USANA 2012 International Convention—Best Tradeshow or Convention
  • Bronze Stevie Award—Doug Braun, Chief Marketing Officer—Marketing Executive of the Year


  • Silver Stevie Award—BK Boreyko, Founder and CEO—Executive of the Year—Health Products & Services
  • Bronze Stevie Award—Vemma Revolution Convention—Best Tradeshow or Convention
  • Bronze Stevie Award—Vemma Achieve Film Series—Motivational Video
  • Bronze Stevie Award—This is Vemma! Welcome to the Revolution—PR Video
  • Bronze Stevie Award—Verve Bold Launch—Marketing Campaign of the Year—Health Products & Services

AL International, parent company of non-member Youngevity, has changed its name to Youngevity International, Inc., and will trade under the stock ticker “YGYI.”

Amway is teaming up with KaBOOM! to build a new playground at the Indian Trails Camp in Tallmadge Township, Mich. The camp provides camping experiences for children and adults with disabilities.

Avon’s beauty and fashion boutique brand, mark, has named actress and singerLucy Hale a Beauty Ambassador. In the role, Hale will appear in mark Magalogs, as well as on mark and Avon digital platforms. She will also be the spokesperson for the m.powerment by mark campaign, the brand’s philanthropic effort dedicated to breaking the cycle of dating abuse and partner violence against young women.

Creative Memories recently announced that plans for layoffs, detailed in an April 16, 2013, notice, will no longer be happening. “We have been and will continue to make changes, but at this time we aren’t expecting any layoffs of that magnitude [163]. We want the business to go forward and we need people to do that,” said Chris Veit, CEO.

CUTCO/Vector Marketing recently presented Linda Price, Ph.D., department head and Underwood Family Professor of Marketing in the Eller College of Management at the University of Arizona, with its CUTCO/Vector Distinguished Marketing Award for Lifetime Contributions to Marketing Scholarship, endowed by Vector Marketing Corporation.

Herbalife was presented with an award for its corporate social responsibility by Global Views magazine in Taiwan. The award, in the “Care for the Community” category, was in recognition of Herbalife’s commitment to helping the development of youth baseball in Taiwan.

Immunotec has released its second quarter 2013 financial results. Total revenue for the three-month period reached $12.6 million, an increase of 10.6 percent as compared to the same period in the previous year. Total revenue in the six-month period reached $24.8 million, an increase of 10.4 percent as compared to the same period in the previous year. Network sales in the three-month period reached $11.2 million, an increase of nine percent as compared to the same period in the previous year. Network sales in the six-month period reached $22.4 million, an increase of 10.7 percent as compared to the same period in the previous year. View the full press release online.

Mannatech recently announced the launch of its Give for Real℠ program. This unique, donation-through-consumption initiative is designed to help consumers and social entrepreneurs meet the needs of malnourished children around the world. For every purchase on an automatic order containing certain products, a donation of PhytoMatrix® bulk dietary supplement is provided through MannaRelief to children in need worldwide. MannaRelief is an independent, nonprofit organization.

Mary Kay donated $326,400 to the China Women’s Development Foundation to fund a micro-credit project for women in southwest China’s Chongqing Municipality. The funds will go toward helping poverty-stricken women start their own businesses.

In additional company news, Mary Kay has partnered with Jordyn Wieber, the reigning Olympic gold medal gymnast, to raise awareness of teen dating abuse as the official spokesperson of Mary Kay’s “Don’t Look Away” campaign to help prevent and end dating abuse.

Nu Skin will be opening its Innovation Center in October in Provo, Utah. The facility includes two restaurants (both open to the public), a water feature in the 18,000-square-foot, four-story atrium, walking and hanging gardens, a state-of-the-art fitness facility and a two-story glass pavilion with mountain vista views.

Pending member Origami Owl has made the following staff appointments:

  • Robin Crossman is now the company’s Chief Executive Officer
  • Deb Bursley is Senior Vice President, Marketing and Communications
  • Kym Gonzales is Vice President, New Market Development
  • Pam Mercado is Vice President, Sales Strategy and Incentives
  • Tracey Vlahos is Executive Director, Field Sales Development

PartyLite is a recipient of Manufacturing Executive’s 2013 Manufacturing Leadership 100 Award. The company’s winning project in the Global Value Chain category highlights its successful program to optimize its supply chain through the use of Logility Voyager Solutions™. The Manufacturing Leadership 100 Awards (ML100), presented by Manufacturing Executive, honor manufacturing companies and individual manufacturing leaders who help shape the future of global manufacturing.

In additional company news, PartyLite sponsored and participated in the Relay for Life of Greater Plymouth (Mass.) recently. The event is an annual fundraiser for the American Cancer Society.

Primerica held its 2013 conference last week at the Georgia Dome. Approximately 35,000 distributors attended the event.

Scentsy recently donated $123,000 to the Special Olympics International. Orville and Heidi Thompson presented the check to representatives from Special Olympics International and member Lauren Schmellick, an Idaho contestant in the 2011 Special Olympics Summer World Games in Athens, Greece, during a ceremony. The money was raised through the sales of its fall and winter special release candle, “Champion.”

Distributors who attended Talk Fusion’s “Believe” corporate event, held recently in Russia, raised a total of $80,000 to benefit Rusfond USA to pay for three surgeries for a Ukrainian toddler suffering from spina bifida.

WineShop At Home has moved into a new 20,000-square-foot facility in Napa Valley, Calif., at the Gateway Business Park.

WorldVentures has launched a Trust Council to measure, audit, counsel and advocate company practices and behaviors in the field and at the corporate office. The council includes corporate executives as well as independent representatives.




MLM Weekly News Report: Covering The Network Marketing Community For The Week of August 24th 2012

mlm news

This week’s MLM News Report covers some great info from Vemma, MonaVie, ViTel, Ocean Avenue, and many of the top 500 and 5000 companies of the Inc. Magazine’s fastest growing companies.

Beachside CEO

BK Boreyko founder of VEMMA emailed me this week to ask me if I knew what $5.5 Million dollars looks like?

ViTel Wireless Touring The Nation Laning In Atlanta The First Week of Septermber 2012

Vitel Wireless Atlanta Promo from Rick James Stapp on Vimeo.


Direct Selling clearly on the rise in Poland
The direct sales market in Poland increased by 1.3% year on year in 2011 to €585.4m. Cosmetics and personal care products accounted for 69% of the revenues of companies affiliated in the Direct Selling Association of Poland (PSSB). The year before this category held 70% while a European Union average in 2010 stood at 38%. The second largest value share in the Polish direct sales market had household appliances, which generated 13.4% of the overall direct retail sales in the country, marking a 3.4% increase year on year. OTC medicines and dietary supplements accounting for 11.6% of direct sales in Poland in 2011 and growing at 3.1% on a yearly basis. Approximately 870,000 individuals were involved in direct sales in Poland last year, of which 88% are women.

Companies operating on the market employed about 1,497 people, and 96% of the revenues came from person to person sales. Companies on the direct sales market include Amway, Avon Cosmetics, Forever Living Products, Herbalife, Mary Kay Cosmetics and Oriflame. Poland is the fifth largest direct sales market in Europe after France (€3.7bn), Germany (€2.7bn), Italy (€2.4bn), and Great Britain (€1.4bn).

Direct Selling Assocation

Inc. Magazine announced its list of the top 500 and 5,000 fastest-growing companies. Direct selling companies included in the top 500 list were Stella & Dot (no. 57) and non-member J.Hilburn (no. 221). Companies included in the top 5,000 were Scentsy (no. 516), non-member It Works! Global (no. 662), YOR Health (no. 1220), Ambit Energy (no. 1305), Initials (no. 1555), non-member Acuity (no. 2020), 5LINX Enterprises (no. 2900), Supplier member FONA International (no. 4031), Symmetry (no. 4121) and Isagenix International (no. 4951).

The 2012 International Business Awards, a.k.a. the Stevie Awards, were announced this week. Winners will be celebrated and presented with their awards at a banquet in South Korea this October. DSA congratulates the following direct selling companies for their achievements:

Subscriber member ARIIX: Bronze Stevie Award –
Company of the Year – Health Products & Services and Pharmaceuticals
Morinda Bioactives: Bronze Stevie Award – Best New Product or Service of the Year – Consumer Products
Nu Skin U.S.: Bronze Stevie Award – Management Team of the Year

Nu Skin Korea/North Asia:
Gold Stevie Award – Company of the Year – Health Products & Services and Pharmaceuticals
Gold Stevie Award – Fastest-Growing Company of the Year in Asia (China, Japan and Korea)
Silver Stevie Award – Executive of the Year – Health Products & Services: Luke Yoo, CEO

Non-member The Learning Annex: Gold Stevie Award – Executive of the Year – Internet/New Media: David Galvan, CEO
Bronze Stevie Award – Management Team of the Year
Bronze Stevie Award – Customer Service Department of the Year – All Other Industries

AdvoCare recently held a Success School Conference in Fort Worth, Texas, during which independent distributors collected more than 1,400 backpacks and raised more than $27,000, all of which will benefit Operation Homefront, an organization that provides emergency financial and other assistance to families of service members and wounded warriors. This is the third year AdvoCare has stepped forward to help Operation Homefront. The company is on target to surpass its Platinum-level commitment of $250,000.

Pending member AnyArt recently launched the Canvas for a Cause program, whereby each independent distributor, in cooperation with their home party hostess, can select from a list of charities the one they would like a percentage of their parties’ sales to benefit. Guests are made of aware of such charitable donations through the invitations and reminders for the party.

Avon has announced that Paula Abdul will be a spokeswoman for their accessories collection, “Forever” selected by Paula Abdul.

Natural Health Trends, parent company of NHT Global, announced its financial earnings through June 30, 2012. The company reported first-half sales of $20.1 million, up 62 percent over the $12.4 million of a year ago. In the second quarter, sales, at $11 million, were up 52 percent over a year ago. View the full press release online.

Oriflame of Sweden has reported its financial earnings for the second quarter of 2012. For the three months ended on June 30, 2012, local currency sales increased by 1 percent and Euro sales were up by 2 percent to €373.6 million. Average size of the salesforce decreased by 5 percent to 3.6 million. Oriflame consultants and closing salesforce was down by 6 percent. For the past six months that ended on June 30, 2012, local currency sales increased by 2 percent and Euro sales were up by 1 percent to €769.3 million. View the full press release online.