I received this new as it was released to the public through the PR Wires and thought… “These boys are putting their money where mouths are! In a world where network marketing founders are selling out, merging with foreign companies, or going out of business, Blair, Sarnicola and Mallen seem to be taking a stand to follow through on the promises they have made to the ViSalus employees, promoters, and customers over the years.
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!
San Diego, CA – July 8, 2013 – CLR Roasters, a wholly owned subsidiary of Youngevity International Inc. (OTCQX: YGYI) (www.YGYI.com), 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
OPENS DOOR TO HOME IMPROVEMENT AND HOME SECURITY MARKETS
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)
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)
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 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.
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 Reliv; Brett 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
- Gold Stevie Award—Company of the Year—Consumer Products—Durables
- 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 . 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.
This week I share about a new format I will be using in reporting the news in 2013, and some of fantastic news on the financial health of the direct selling industry and the network marketing community that makes it what it is.
Direct Selling Companies You May Not Have Heard Of!
Awbrey Smith started this company out of her home in 2011. With little to go on besides a crazy idea and “dream” of what she wanted to accomplish for women all over the country, 2CP has grown by leaps and bounds since it’s opening. According to Awbrey, the success of 2CP lies within her amazing team (listed below) and the consultants and customers who make each day an exciting one! Work is no longer what she has to do to help pay the family bills, it is now a growing change that Awbrey is helping make in women’s lives all over.
We have been helping women build businesses for over 20 years.
Cookie Lee jewelry is delivered directly to customers through shows, fundraisers and personal shopping. Our ever-growing base of independent Consultants operates throughout the United States.
A HISTORY OF SWEET SUCCESS!
DOVE CHOCOLATE DISCOVERIES™ launched in February 2007 as one of the latest ventures from Mars, Incorporated. Now, a global leader in chocolate, Mars roots goes back to the kitchen. In the 1880’S, when Frank Mars was a young boy, his mother taught him to hand-dip chocolate. With his wife, Ethel, Frank started a home candy-making business in Tacoma, Washington, that eventually grew into Mars, Inc., a world-wide industry leader in chocolate confections. Going back to its direct-selling heritage, Mars created DOVE CHOCOLATE DISCOVERIES™. Since then, the Chocolatier sales force has taken off. There are now Chocolatiers in 48 states.
With over 100 years of candy-making experience behind us, DOVE CHOCOLATE DISCOVERIES™ is dedicated to creating the ultimate chocolate experience – in the comfort of your own home, providing an opportunity to share some sweet moments with family and friends. Plus, as a Chocolatier, you’re walking in the door with respect and recognition. What could be sweeter than that!
The lia sophia Story
Jewelry has been a passion in the Kiam family for decades. In fact, lia sophiaisn’t the only jewelry company that family patriarch and entrepreneur Victor Kiam and his wife, Ellen, were a part of. They learned a great deal about the business from the Friendship Collection, which they started as a mom-and-pop enterprise in their apartment decades earlier. By the 1970s, it had grown into the United States’ largest importer of jewelry, antiques and artifacts from China. Even early on, their instincts were good. (Read On)
We had a question in early 2010- what would happen if women were able to earn some extra money selling designer jeans at a discount? Well, based on the success we have had so far, the answer is pretty clear. Vault Denim is a direct sales company that is a little different than others. Our consultants don’t have to spend money to purchase their own inventory- we provide it. Customers don’t place orders at home parties and then wait for products to be shipped- they wear their new jeans home. And because we sell the same jeans found in department stores for up to 50% less, people are lining up to host parties and become a part of this fast-growing, exciting company.
Leslie Montie never dreamed she would become the founder of a company that helps families enjoy great tasting, nutritious meals in minutes.
When Leslie discovered that her two young children had medical conditions requiring special dietary restrictions, she began her search for healthy alternatives. “It was amazing how this impacted our entire family.” recalls Leslie. â€œI needed to come up with meals that my children would not react to, yet still enjoy. And since I was a full-time working mom, they had to be easy to make.” (Read On)
At Willow House, our mantra is Simply Good Design — and it permeates everything we do.
Our in-house designers strive to create high-quality products with impeccable design and effortless style, from the sparkling luxury of our designer Jewelry by Sara Blaine to our line of exclusive home décor and American artisan pieces.
More than simply “on trend,” our exclusive home décor and jewelry collections are thoughtfully designed to be timeless. They’re pieces that you’ll enjoy wearing and decorating with season after season.
But Simply Good Design runs deeper than our look — it’s in the very soul of our company. You see, Willow House offers our family of Consultants two strong divisions to grow their own small business — Jewelry by Sara Blaine and Style for Home. We empower our Consultants with the tools needed to succeed in this ever-growing industry.
Willow House is the most compelling home-based business opportunity in America. Through e-commerce, savvy social media marketing and our on-trend blog, Plate & Pattern, we help our Consultants connect with their customers in new, exciting, and profitable ways.
Network Marketing Company News
AdvoCare will continue its partnership and primary sponsorship of Austin Dillon’s No. 3 AdvoCare Chevrolet for the 2013 NASCAR Nationwide Series season. This follows the company’s sponsorship of Dillon and the No. 3 car for 20 races in the 2012 NASCAR Nationwide Series season.
Berkshire Hathaway, parent company of Kirby, The Pampered Chef and World Book, announced its financial results for the third quarter of 2012. The conglomerate reported that its third-quarter profit rose as strength in the railroad and utility businesses, as well as investment gains, offset weaker results in its insurance units. Berkshire said its cash holdings grew to $47.78 billion, up $10 billion from the start of the year. View the full press release online.
Blyth, parent company of PartyLite and ViSalus, reported earnings for the third quarter of 2012. Net sales for the three months ended Sept. 30, 2012, increased 40 percent to $268.8 million versus $191.5 million for the comparable prior-year period, primarily due to the 132 percent year-over-year sales growth at ViSalus. International sales for Blyth represented 25 percent of third-quarter sales this year, compared to 34 percent last year, driven by ViSalus’ strong domestic sales growth. View the full press release online.
Fuller Brush recently celebrated its 106th anniversary.
Mannatech has reported net income of $2.2 million for the third quarter ending Sept. 30, 2012, compared to a net loss of $3.7 million for the third quarter of 2011. In achieving net income of $2.2 million for the third quarter of 2012, non-cash items impacting profitability included a reduction in a previously recognized deferred tax asset valuation allowance of approximately $1 million, a release of reserves related to transaction taxes of $800,000 due to the expiration of statutes of limitations, and income from foreign currency exchange rate fluctuations of $500,000. Third-quarter operating profitability and net income adjusted for the non-cash items listed above was near even as the company moves closer to its goal of profitability.
Net sales for the third quarter of 2012 were $43 million, a decrease of 14.8 percent, compared to $50.5 million in the third quarter of 2011. Net sales for the U.S. and Canada declined 16.3 percent to $20.5 million, compared to $24.5 million in the third quarter of 2011. International net sales of $22.5 million decreased 13.5 percent, compared to $26 million in the third quarter of 2011. View the full press release online.
Medifast, parent company of Take Shape for Life, announced its financial earnings for the third quarter of 2012. Net revenue increased 20 percent to $91 million from net revenue of $76.1 million in the third quarter of the prior year. Each of the company’s three primary distribution channels, Take Shape for Life, Direct Response Marketing and Medifast Weight Control Centers and Wholesale Physicians, contributed to this year-over-year revenue increase. Revenue in the direct sales channel, Take Shape for Life, increased 20 percent to $55.6 million in the third quarter of 2012 compared to $46.4 million in the same period last year. Growth in revenue for Take Shape for Life was driven by increased customer product sales as a result of an increase in the number of active health coaches and an increase in the monthly revenue per health coach. The company ended the third quarter with approximately 10,800 active health coaches and the average revenue per health coach per month for the quarter increased 3 percent to $1,634 compared to $1,585 in the third quarter of 2011. View the full press release online.
Nature’s Sunshine Products recently reported its third-quarter financial results. Net sales were $91.2 million, compared with $91.1 million in the same quarter a year ago, an increase of 0.1 percent; however, net sales increased 2.1 percent in local currencies. As of Sept. 30, 2012, active managers worldwide were 28,700, an increase of 1.8 percent from Sept. 30, 2011, while active distributors and customers worldwide were 656,800, a decrease of 3.7 percent from the end of the quarter a year ago. Operating income was $8.7 million, compared with an operating loss of $5.1 million and pro forma operating income from continuing operations of $9.6 million (excluding contract termination costs) in the same quarter a year ago, a decrease of 9.7 percent year-over-year. For the first nine months of the year, net sales were $277.1 million, compared with $275.8 million in the same period a year ago, an increase of 0.5 percent; however, net sales increased 2 percent in local currencies.
Net income was $20.9 million, compared with net income of $10 million and pro forma net income of $19 million (excluding contract termination costs) in the same period a year ago, an increase of 9.9 percent year-over-year. In the U.S., net sales were $33.7 million, compared with $33.5 million in the same quarter a year ago, an increase of 0.5 percent. Net sales for core products increased by 1 percent, but were partially offset by the discontinuance of non-core products. Active managers within NSP U.S. totaled approximately 5,300 and 5,600 at Sept. 30, 2012 and 2011, respectively. Active distributors and customers within NSP U.S. totaled approximately 191,500 and 210,300 at Sept. 30, 2012 and 2011, respectively.
Synergy WorldWide, a wholly owned subsidiary of Nature’s Sunshine Products, Inc., reported net sales of $26.3 million, compared with $24.5 million in the same quarter a year ago, an increase of 7.1 percent. In local currencies, net sales increased 13.1 percent compared to the same quarter a year ago. Active managers within Synergy Worldwide totaled approximately 3,200 and 2,600 at Sept. 30, 2012 and 2011, respectively. Active distributors and customers within Synergy Worldwide totaled approximately 89,100 and 85,000 at Sept. 30, 2012 and 2011, respectively. View the full press release online.
Primerica announced its financial results for the third quarter of 2012. Total revenues were $299.1 million in the third quarter of 2012 and net income was $45.6 million. Operating revenues increased by 7 percent to $295.2 million in the third quarter of 2012, compared with $276 million in the third quarter of 2011. Net operating income grew by 21 percent to $45.1 million in the third quarter of 2012, compared with $37.3 million in the third quarter of 2011. The size of the company’s life-licensed insurance salesforce was 91,506 at Sept. 30, 2012, up modestly from 90,868 at June 30, 2012.
There was downward pressure on recruiting in the second and third quarters as the company placed more focus on licensing initiatives, which improved the percentage of new recruits obtaining a license in those quarters. Lower sequential recruiting levels in the second quarter and a 3 percent decline in recruiting in the third quarter from the second quarter translated into 12 percent fewer new life licenses in the third quarter than in the second quarter of 2012. On a year-over-year basis, the life-licensed salesforce was down slightly from 91,970 at Sept. 30, 2011. Coming off the unusually high post-convention recruiting surge in 2011, recruiting declined 43 percent to 47,639, and new life licenses declined 17 percent to 8,613 compared with the third quarter of 2011. View the full press release online.
Stella & Dot won the Retail Innovation award for the 16th annual Accessories Council Excellence Awards. The company was also listed as No. 11 on the “100 Fastest Growing Private Companies in the Bay Area” list, published in the San Francisco Business Times.
Stream Energy is working to assist low-income families this winter with a donation to the Fuel Fund of Maryland. The donation will help families in distress with their heating and energy needs. The company has provided electricity services to customers in Maryland since 2011.
Direct Selling on Wall Street: Despite Challenges, Companies Post Record Q3 2012 Results
As the United States continues to emerge from the effects of the global recession, direct selling companies are seeking—and, in many instances, capitalizing on—opportunities for growth and expansion in the U.S. and abroad.
Herbalife reported record third-quarter net sales of $1 billion, a 14 percent increase year over year; and Nu Skin announced record third-quarter results with revenue of $526.2 million, a 23 percent improvement over the prior-year period. Additionally, USANA’s net sales for the third-quarter 2012 increased by 15.1 percent to $165.2 million.
Although such results are not representative of the entire industry, they are indicative of the steady growth various companies across the channel have experienced in recent months.
“We truly believe, as direct sellers, we’re at the right place at the right time,” said DSA President Joe Mariano. “We’re an industry that clearly thrives on better service, consumer education and opportunities that aren’t necessarily available to the rest of the market. We’re centered on the fact that people trust what we do and share a passion for what we do and that’s something unique.”
In many ways, this uniqueness that defines the direct sales channel proffers an advantage as companies look to enter the public market.
“As more and more direct selling companies continue to do well in the public market, that will be great for the overall industry and attract more investors,” said Rodney Clark, Managing Director and Co-Head of U.S. Consumer Investment Banking with supplier member Canaccord Genuity Inc. “The model has worked extremely well and growth is strong. As direct selling companies mature, they have to find ways to continue their growth, whether it’s through new products or distribution or expansion to new markets.”
While financial gain is most commonly viewed as the distinct advantage to going public, for many companies—particularly direct selling companies—another key benefit is an increased public awareness of the company as well as the business model itself.
“There is somewhat of an education element present in that people who don’t know much about the direct selling model might have picked up on the bad case studies that are out there and based their opinions on those instances,” Rodney said. “The direct selling industry is going to have to distance itself from those cases over time. It’s very similar to what’s happened in the nutrition industry. There was once a lot of turmoil but, in that industry, we’ve seen a lot of strategic big deals. Just like the nutrition industry, as direct selling gains traction, investors will become more astute to the fact that this is a highly productive channel.”
Even when negative coverage of the direct sales channel is not making front-page news, broad-sweeping generalizations, however inaccurate they might be, pose challenges to direct selling companies looking to break into the public market.
“The industry has had some challenges in the public’s eyes so valuations aren’t very rich right now,” Rodney said. “It’s been a little challenging for direct sellers to attract new investors because there’s been a spotlight on the industry and there hasn’t always been a positive tone in some of the coverage that’s out there. But, what companies are showing coming out of the recession is that many are getting the right products and services into distributors’ hands and are seeing strong growth. These business models are fantastic and if you’ve got the right products in the right hands and distributors who are excited and engaged, you can post positive results.”
As direct selling companies new to the public sector face a number of challenges including legal and accounting fees, Securities and Exchange Commission reporting requirements and pressure to increase earnings, it is important to recognize that the greatest challenges are often those that companies face internally.
“Abstracting from the direct selling industry and looking at the broader market, any company can face challenges in the spotlight, but that doesn’t necessarily mean that the rest of the industry isn’t doing well or shouldn’t be viewed favorably,” Rodney said. “The challenges could be company-specific, such as management issues. Overall, the industry is a strong industry and for the companies that are well-managed and on trend, they’re firing on all cylinders in the public market and even experiencing a great deal of international growth.”
Last week I started to receive emails and calls about the fact Moody’s was wary of IPO plan for FVA Ventures Inc. aka ViSalus Sciences. I held off on reporting until we had heard from Blyth on this matter. Today they did hold an emergency Investor’s Conference Call to help clear up what was taking place.
For those who are interested to better understand the original filing you can review it at the SEC website by clicking here.
Blyth, Inc. Subsidiary, ViSalus, Withdraws Initial Public Offering
GREENWICH, Conn., Sept. 26, 2012 /PRNewswire/ — ViSalus, a subsidiary of Blyth, Inc. (NYSE:BTH), today withdrew its initial public offering due to uncertain market conditions. ViSalus has achieved Net Sales growth in excess of 450% in the first half of 2012; however, management believes that current market conditions are not conducive to recognizing this level of achievement. As such, Blyth management supports fully this decision.
Commenting on the ViSalus decision, Robert B. Goergen, Chairman & CEO of Blyth noted, “we are extremely confident in the long-term growth prospects of ViSalus. Over the past year, Ryan Blair, ViSalus’ CEO, has worked with ViSalus’ other Founders to put in place a first class management team and the processes and programs necessary to bring ViSalus to the next level of achievement. We look forward to working with the ViSalus team to continue to build long-term value for Blyth’s shareholders.”
Blyth, Inc., headquartered in Greenwich, CT, USA, is a direct to consumer business focused on direct selling and direct marketing channels. We design and market home fragrance products and decorative accessories, as well as weight management products, nutritional supplements and energy drink mixes. These products are sold through Direct Selling from the home party plan method and network marketing. The Company also designs and markets household convenience items and personalized gifts through the catalog/internet channel, as well as tabletop lighting and chafing fuel for the foodservice trade. The Company manufactures most of its candles and chafing fuel and sources nearly all of its other products. Its products are sold direct to the consumer under the PartyLite®, Two Sisters Gourmet by PartyLite® and ViSalus Sciences® brands, to consumers in the catalog/Internet channel under the As We Change®, Miles Kimball®, Exposures®, Walter Drake® and Easy Comforts®, and to the Foodservice industry under the Sterno®, Ambria® and HandyFuel® brands. In Europe, Blyth’s products are also sold under the PartyLite brand.
Blyth, Inc. may be found on the Internet at www.blyth.com.
SOURCE Blyth, Inc.
Herb Greenberg of CNBC, who is a skeptic of Direct Selling talked today about both Herbalife and the ViSalus IPO. Although, I do not agree with Mr. Greenberg’s overall opinion of Direct Selling, I do believe him to provide some valuable information from time to time.
In reviewing the Blyth most current Form 10-Q we can see some exciting information on the company. Although attrition of promoters (distributors) is higher, than most would like to admit, the revenues are continuing to rise which seems to say, that ViSalus customers are staying on the products, even after the promoters leave the company.
Here are some highlights from the Form 10-Q. You can click the link above to read the full document.
In August 2008, the Company signed a definitive agreement to purchase ViSalus, a direct seller of weight management products, nutritional supplements and energy drinks, through a series of investments.
In October 2008, the Company completed its initial investment and acquired a 43.6% equity interest in ViSalus for $13.0 million in cash and incurred acquisition costs of $1.0 million for a total cash acquisition cost of $14.0 million.
In April 2011, the Company completed the second phase of its acquisition of ViSalus for approximately $2.5 million, increasing its ownership to 57.5%.
In January 2012, the Company completed the third phase of its acquisition of ViSalus and increased its ownership to 72.7% for approximately $22.5 million in cash and the issuance of 681,324 unregistered shares of the Company’s common stock valued at $14.6 million, of which 340,662 shares may not be sold or transferred prior to January 12, 2014. Due to the restrictions on transfer, the common stock was issued at a discount to its trading price. The payments in the third closing were based upon an estimate of the 2011 EBITDA pursuant to the formula in the original purchase agreement, and were subsequently adjusted in April 2012 for the difference between the actual 2011 EBITDA and the estimate used in the third closing. The Company paid an additional $6.2 million in April 2012 after final determination of the actual 2011 EBITDA, bringing the total third phase acquisition cost to $43.3 million.
The Company intends to and may be required to purchase the remaining interest in ViSalus to increase its ownership to 100%. The fourth phase and final purchase of ViSalus is conditioned upon ViSalus meeting its original purchase agreement’s 2012 operating target. The Company has the option, but is not required, to acquire the remaining interest in ViSalus if it does not meet this operating target. However, as of June 30, 2012, the operating target for 2012 requiring the additional purchase is anticipated to be met. If ViSalus meets its current projected 2012 EBITDA forecast, the total expected redemption cost of the fourth and final phase will be approximately $271 million to be paid in 2013. The purchase price of the additional investment is equal to a multiple of ViSalus’s EBITDA, exclusive of certain unusual items. The payment, if any, may be funded in part using existing cash balances from both domestic and international sources, expected future cash flows from operations and the issuance of common stock and may require the Company to obtain additional sources of external financing.
Blyth designs and markets home fragrance products and decorative accessories, as well as weight management products, nutritional supplements and energy drinks. The Company’s products include an extensive array of decorative and functional household products such as candles, accessories, seasonal decorations, household convenience items and personalized gifts, meal replacement shakes, vitamins and energy mixes, as well as products for the foodservice trade. The Company’s products can be found throughout North America, Europe and Australia. Our financial results are reported in three segments: the Direct Selling segment, the Catalog & Internet segment and the Wholesale segment.
Within the Direct Selling segment, we design, manufacture or source, market and distribute an extensive line of products including scented candles, candle-related accessories and other fragranced products under the PartyLite ® brand. PartyLite also offers gourmet foods under the Two Sisters Gourmet by PartyLite brand name. PartyLite brand products are sold in North America, Europe and Australia. We also operate ViSalus Sciences ® , which is focused on selling meal replacement shakes, nutritional supplements, nutritional cookies and energy drinks. Products in this segment are sold through networks of independent sales Consultants and Promoters. ViSalus brand products are sold in North America. The Company has aggregated these two businesses to form the Direct Selling segment based upon similarities in distribution channels, customers, operating metrics and management oversight.
Net sales for the six months ended June 30, 2012 increased $235.3 million, or 63% to $607.9 million, from $372.6 million in the comparable prior year period due to strong sales growth in the direct selling segment.
Net sales for the three months ended June 30, 2012 increased $133.3 million, or 70% to $324.8 million, from $191.5 million in the comparable prior year period due to strong sales growth in the direct selling segment.
Net Sales – Direct Selling Segment
Net sales in the Direct Selling segment for the six months ended June 30, 2012 increased $243.7 million, or 90%, to $514.7 million from $271.0 million in the comparable prior year period. ViSalus’ Net sales increased $266.4 million, or 440% to $327.0 million from $60.6 million last year. This growth is a result of an increase in the number of promoters to over 114,000 as of June 30, 2012 from over 28,000 in the comparable prior year period.
PartyLite’s Net sales decreased $25.6 million, to $188.2 million from $213.8 million last year. Net sales of PartyLite Europe and Canada were negatively impacted by foreign exchange rate fluctuations, therefore, excluding the impact of foreign currency, sales in PartyLite Europe and Canada declined 8% and 12%, respectively. Net sales for PartyLite U.S., Europe and Canada declined on a U.S. dollar basis by 9%, 14% and 15%, respectively, primarily due to lower active independent consultants, as well as fewer shows, resulting in less opportunity to promote our products and recruit new consultants.
Net sales in the Direct Selling segment for the three months ended June 30, 2012 increased $137.4 million, or 98%, to $278.3 million from $140.9 million in the comparable prior year period. ViSalus’ Net sales increased $149.8 million, or 369% to $190.4 million from $40.6 million last year. As mentioned above, this growth is a result of an increase in promoters over last year, as well as increased demand for its products due to a growing customer base.
PartyLite’s Net sales decreased $13.3 million, or 13%, to $86.8 million from $100.1 million last year. Net sales of PartyLite Europe and Canada were negatively impacted by foreign exchange rate fluctuations, therefore, excluding the impact of foreign currency sales in PartyLite Europe and Canada declined 6% and 10%, respectively. Net sales for PartyLite U.S., Europe and Canada declined on a U.S. dollar basis by 11%, 16% and 14%, respectively, primarily due to lower active independent consultants, as well as fewer shows, resulting in less opportunity to promote our products and recruit new consultants.
Blyth, Inc. Announces Filing of Registration Statement for Initial Public Offering of ViSalus
Blyth to Continue to Own More Than 50% of ViSalus
GREENWICH, Conn., Aug. 16, 2012 /PRNewswire/ — Blyth, Inc. (NYSE: BTH) today announced that ViSalus has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission for a potential initial public offering (“IPO”) of its Class A common stock. The registration statement has been filed by FVA Ventures, Inc., which will be renamed ViSalus, Inc. in connection with the IPO. ViSalus is a direct-to-consumer, personal health product company offering a suite of branded weight-management products, nutritional supplements and energy drinks to customers in the United States and Canada through a network marketing model, which is a form of direct selling.
Following the IPO, Blyth will continue to own over 50% of ViSalus’ common stock. The number of shares to be offered and the price range for the offering have not yet been determined. A portion of the shares to be offered in the IPO will be issued and sold by ViSalus, and a portion will be sold by certain stockholders of ViSalus.
MLM News Report covers Youngevity, 21Ten, MLM distributor complaince, the MLM energy sector, a distributor position for sale at Gana Excel and much more for the week fo January 6th, 2012!
Weekly MLM News Sponsor: 21Ten – Rip. Shake. Live
It’s time to go cruising Steve and Amy Machado, because you two just advanced to Master and reserved your seat on the Life Shotz Caribbean Cruise!
Janine Avila also has much to say about Steve and Amy advancing:
“Every once and awhile, you get to work with a dream couple. That is what it has been like working with Steve and Amy. They are enthusiastic, coachable, smart, funny, credible, appreciative and gutsy. I was told by both of them when they enrolled, they would see how it goes as long as I didn’t ask them to speak in front of a group. Today, they speak in front of the room often and with a powerful grace.” Read The Full Story!
These days, it takes more than sparklers and kazoo-playing monkeys to attract customers to your business. Luckily, 21TEN has Melissa Gulbranson on their team. With 10-plus years in the network marketing industry, she’s the brains behind the 21TEN’s strategic marketing and branding campaigns for both corporate and Distributor initiatives.
The millennials—the first generation to come of age in the 21st century—are also known as Generation Y, or simply Gen Y, because they follow on the heels of Generation X. Whatever you call them, they now comprise the entire 18- to 32-year-old young professional demographic.
This group is easily the most important marketing concern to come along in decades, and by 2017 their spending is expected to surpass that of the boomers. As Jason Dorsey, The Gen Y Guy® speaker and consultant, points out concerning his generation, “We are the opportunity!”
Entrepreneurs tend to emerge more from the ranks of the young than from those who are older, and with good reason. There’s all that vim and vigor of youth. They typically don’t have much wealth, and many haven’t yet started their families. That means most of them don’t have much to lose, and even if they do, so what? They have the rest of their lives ahead of them.
Generation Y’s streak of entrepreneurial tendencies runs even wider and deeper than that of previous generations. The relative peace and prosperity of the economic times in which they were raised has allowed education and technology to flourish. Rather than their parents having to struggle to survive, as was the case for several of the previous generations, Gen Y has been raised in households that, by and large, have been afforded the opportunity to thrive.
So how has Gen Y been generating its own employment? Freelancing or contract work has appealed to some, allowing them to be in control of their own work schedule. Gen Yers have also started new businesses at a much higher rate than that of any previous generation. And why not? Their entrepreneurial tendencies are strong, and with brains in their heads and their parents still paying for the shoes on their feet, they have the confidence to strike out on their own. Read The Full Article!
From the Direct Selling Association
Robert Goergen, Jr., has been appointed President, Direct Selling Group, and President, PartyLite Worldwide. Robert succeeds Anne Butler, who will assume the new role of Senior Advisor, Direct Selling Operations and Business Development.
Scott Halverson has been appointed Vice President of Marketing and Business Strategy for Lifemax.
Dr. Joel D. Wallach, founder of non-member Youngevity, is the 2011 recipient of the Klaus Schwarz Commemorative Medal. This award, sponsored by the International Association of Bioinorganic Scientists, recognizes the work of pioneers in the field of trace element research. (Read More)
New Beauty magazine released its second-annual 2011 New Beauty Choice Awards. Nu Skin’s ageLOC Future Serum was named “The Best Anti-Wrinkle Serum” and Proactiv, a three-step anti-acne product from Rodan + Fields Dermatologists, was named “The Best Overall Acne Fighter”. New Beauty magazine recognizes the best products in the health and beauty industry and winners are determined by the votes of thousands of New Beauty magazine readers, as well as top beauty experts and the editors of New Beauty.
Neways has officially launched its new Korean office, showroom, products and business opportunity. The company is also moving forward with preparations to open in Thailand later this year.
Nu Skin has broken ground on its new Greater China Innovation Park in Shanghai, China. The approximately $50 million, state-of-the-art complex will serve as the headquarters for the Greater China region and feature anti-aging research and development laboratories, as well as manufacturing facilities, meeting spaces and green areas.
Primerica announced it will host approximately 5,000 of its current and prospective independent representatives at the Metro Toronto Convention Center this weekend. This meeting will be the first of six events across Canada in 2012.
Scentsy’s Charitable Cause Program recently donated stuffed animals to pediatric patients at Marian Medical Center in Santa Maria, Calif., in an effort to provide the children with a brighter Christmas. The company’s Charitable Cause Program selects two charitable causes each year to support and sells a Scentsy product to benefit them.
Shure Pets has suspended its direct selling business. The company will continue to process orders and arrange for shipment through the end of January 2012.
U Design Jewelry is teaming up with the Super Basket of Hope program and the 2012 Super Bowl by donating 7,000 “Hope Necklaces.” The necklaces will be included in baskets given to critically ill children and families at hospitals in each of America’s 32 NFL cities, and are delivered by NFL team players, coaches, alumni and other regional volunteers.
USANA recently announced Olympic Pro Snowboarder Lindsey Jacobellis and Alpine Skier Nolan Kasper as its newest brand ambassadors. Both athletes are members of the U.S. Ski and Snowboard Association (USSA), with which USANA announced a partnership last year. As brand ambassadors, Jacobellis and Kasper will represent the company publicly and help educate consumers about the value and importance of using supplements that are safe, effective and manufactured to the highest quality.
XANGO recently partnered with Operation Smile Foundation to provide 100 free surgeries to correct the cleft lips and palates of children in the Tak Mae Sot district of Thailand. The young patients were the children of farmers who grow mangosteen, the source of XANGO’s success.