Cost Structures and Profitabilities, Q1 2016

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

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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.

#WorldOfDirectSelling

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

news

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

 

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) (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   MarketWatch

 

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)

Blyth

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)

HindustanTimes

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.

ACN

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

Isagenix

  • 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

USANA

  • 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

Vemma

  • 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.

 

 

 

Weekly MLM News Report: Network Marketing Quarterly Financials & New Direct Sales Companies

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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.

Beachside CEO

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.

Boisset Wines

To learn more about Boisset Wines click here!

Cookie Lee

OUR BUSINESS
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.

Dove Choclate Discoveries

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!

Lia Sophia

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)

Our Story

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.

Wild Tree

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. “I 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)

Willow House

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

Source: Direct Selling Association

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.

Of those companies to post strong results for third quarter 2012, HerbalifeNu Skin andUSANA were among those publicly traded direct selling companies to report record-breaking figures.

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.”

 

 

 

MLM Weekly News: Ocean Avenue Pre-Launch, Zeek Rewards Investigated, MLM Goes To Olympics New DSA Companies

mlm news

This has been an active week in the network marketing community. From TXU Energy, ArtNEXT, Jamberry Nail and The Traveling Vineyard submitting applications for membership to the DSA, to Ocean Avenue hitting pre-launch, to Zeek Rewards being investigated to the powerful news MLM is well represented in the 2012 London Olympics.

Home Business Radio Network Economic Freedom Contest

This week I covered the pre-launch of Ocean Avenue. The founders of this company will be unveiled this next week in a live interview right hear at MLM Help Desk.

Zeek Rewards News

The North Carolina DOJ made it public this week they were investigating Rex Venture Group, LLC, the parent company of Zeek Rewards. I feel this could be the best thing to happen to the affiliates of Zeek Rewards so once and for all they can get some of the questions answered, and if there are any changes that need to be made, the company can change them ASAP.

Source: Direct Selling Association Weekly Newsletter

Going for the Gold: Direct Selling Companies Make an Impact at the 2012 Olympic Games

As nearly 4 billion people across the globe have tuned in to watch their favorite athletes shine on the biggest stage in sports, the direct selling industry has yet again illustrated how the sales channel continues to empower men and women everywhere to achieve their dreams.

While Avon is recognized around the world for its firm commitment to women’s empowerment, few are aware of the company’s direct role in the incorporation of a key event at the Games—the women’s Olympic marathon.

In addition to Avon’s contributions to the Olympic Games, nutritional and science-based direct selling companies like USANA have made their mark on the global stage by maintaining partnerships with a number of elite athletes. This year alone, more than 60 Team USANA athletes traveled to London to compete in the Summer Games.

“The athletes who compete in the Olympics represent the best of the best,” said Ashley Collins, Executive Director of Marketing, Public Relations and Social Media for USANA. “Their health and wellness are vital to their success, so they have to choose their supplements very carefully.

“There are currently more than 600 product-sponsored Olympic and professional athletes that make up Team USANA,” she continued. “The fact that they are product-sponsored is significant—it means these are not fiscal sponsorships. We provide them only with supplements and health products and our athletes understand the value in that. Improving their health and performance is ultimately what the partnership is about.” (Read the whole article here)

Travel Vineyard

Cheers! My name is Rick Libby and I am the founder, Chief Grape Stomper and Head Cheerleader for The Traveling Vineyard.

In 2001, we created The Traveling Vineyard as a unique in-home Wine Tasting concept similar to a Tupperware party or Pampered Chef show.

The difference? Well… tasting wine is a lot more fun and everybody likes to have a home wine tasting!
We recognized that it ís hard to know if you like a wine unless you try it first. So we bring the wines into your home where you, your friends and family can discover new varietals in a relaxed, pressure-free environment.

We held our first in-home tasting in Tampa, Florida in November of 2001 and have been on a roll ever since. Our wine tastings are conducted by our Independent Wine Consultants who love wine, love to educate and inform and love the fun, friendships, flexibility, financial reward and fulfillment that they derive from their role as Independent Traveling Vineyard Consultants.

Jamberry Nails started with three sisters.
We created Jamberry Nails to provide a simple way to brighten your day. We constantly get letters and feedback from customers letting us know how much they love the product and how many compliments they get day after day. We know you’ll love the product too and feel great wearing your Nail Shields.

You’ll also love Jamberry Nails because of how easily they can be applied and how many different looks you can achieve by mixing and matching. Our Nail Shields will give you that high-end salon look in the convenience of your own home.
We are passionate about making a great product and keeping up with the latest trends in our designs. If you have any feedback for our company we would love to hear it.

Thanks for shopping at Jamberry Nails!
The Jamberry Sisters

TXU Energy

TXU Energy powers the lives of more Texans than any other electricity provider, making us the #1 choice for electricity in Texas.

We offer competitive market benefits by providing a variety of Texas power plans, low prices and innovative products and services to support your everyday needs.

With TXU Energy you’ll find:

Power with straightforward pricing that you can depend on.
A broad selection of plans to fit your Texas home and business needs.
Features like cash back loyalty rewards, price protection, recurring payment and more.
Renewable energy options that support Texas wind farms.
Energy-saving products to help you manage and reduce your bills.
Innovative budgeting and account management tools.
Bill payment assistance programs to help those in need.
24/7 dependable customer service.

Direct Selling Assocation

Avon was listed as number 37 on Interbrand and Deloitte’s 2012 list of Best Global Green Brands. The 50 brands were evaluated based on their performance and the public’s perception of their green credentials.

Berkshire Hathaway, parent company to The Kirby Company, The Pampered Chef and World Book, recently released its earnings report for the second quarter of 2012. Berkshire said it generated $3.1 billion net income, down from last year’s second-quarter net income of $3.4 billion. Berkshire’s revenue grew slightly to $38.5 billion from $38.3 billion. The company reported a 37 percent increase in its operating profit, reporting $3.7 billion in operating earnings, up from $2.7 billion last year. Berkshire recorded a $693 million loss on its derivative contracts in this year’s second quarter. (Read Full Press Release)

Blyth, parent company to PartyLite Gifts and non-member ViSalus, recently reported its second-quarter financial earnings for 2012. Net sales for the three months ended June 30, 2012, increased 70 percent to $324.8 million, versus $191.5 million for the comparable prior-year period, primarily due to significant year-over-year sales growth at ViSalus. International sales for Blyth represented 20 percent of second-quarter sales this year, compared to 39 percent last year, driven by ViSalus’ strong domestic sales growth. In the direct selling segment, second-quarter net sales increased 98 percent to $278.3 million versus $140.9 million for the same period last year due to significant sales growth at ViSalus. (Read Full Press Release)

Flavon Max, with offices in several European countries, is now operating in the U.S.

ForeverGreen is expanding its operations to the Russian market.

Mannatech reported its second-quarter 2012 financial earnings with a net loss of $2.4 million for the second quarter ending June 30, 2012, compared to a net loss of $5.2 million for the second quarter of 2011. Net sales for the second quarter of 2012 were $43.6 million, a decrease of 15.1 percent, compared to $51.3 million in the second quarter of 2011. Read the Full Report Here

Mary Kay recently celebrated the 43rd anniversary of its pink Cadillac recognition program.

RBC Life Sciences recently released its financial earnings for the second quarter of 2012. The company reported consolidated net sales of $6.5 million for the quarter ended June 30, 2012, compared to $7.5 million for the second quarter of 2011. For the quarter, the company reported net earnings of $23,120 compared to net earnings of $17,030 for the same quarter in 2011. Read the Full Report Here

Thirty-One Gifts announced it is looking to hire up to 60 new full-time employees to work in its Springfield, Ohio, facility.

USANA was named one of the “Best Places to Work” by Outside magazine for its fourth consecutive year. The company was ranked number 23 out of 100 companies across the U.S. Outside’s “Best Places to Work” project celebrates the innovative companies setting a new standard for a healthy work-life balance.

MLM News Report: Live From The Youngevity 15 Year 90 For Life Celebration Covering Current News & Info In Network Marketing

mlm news

MLM News Report

Covering Zeek Rewards, Herbalife, Team Nation, and USANA

Herbalife India recently won the Industry Recognition Award for its contribution to the industry sector of Nutraceuticals and Nutritionals at the Nutra India Summit 2012. The Nutra India Summit is India’s biggest event for the nutraceutical industry in the country and is in its seventh year.

Mannatech recently reported financial earnings for the fourth quarter and year of 2011. The company reported a net loss of $7 million for the fourth quarter ending Dec. 31, 2011, compared to a net loss of $2.7 million for the fourth quarter of 2010. Included in the fourth-quarter results was a $2.6 million settlement in the previously disclosed lawsuit with a supplier related to contractual purchase commitments. Fourth-quarter net sales for 2011 were $47.9 million, a decrease of 12.8 percent compared to $54.9 million in the fourth quarter of 2010. Net sales for the U.S. and Canada declined 14.6 percent to $23.5 million, compared to $27.5 million in the fourth quarter of 2010. International net sales of $24.4 million decreased 10.9 percent compared to $27.4 million in the fourth quarter of 2010. Annual net sales for 2011 were $200.7 million, down 12 percent from $228.1 million for the full-year 2010. The company reported a net loss for the full year of $20.7 million, compared to the full-year net loss of $10.6 million in 2010. Total independent associates and members based on a 12-month trailing period was approximately 372,000 as of Dec. 31, 2011, compared to 403,000 as of Dec. 31, 2010. New independent associates and members for the full-year 2011 were 77,000 compared to 89,000 in 2010. View the full press release online.

Team National recently held its Fuel Your Fire Convention in Kansas City, Mo., where thousands of independent marketing directors celebrated the company’s 15th anniversary. Best-selling author Les Brown and Team National’s President & CEO Angela Loehr Chrysler both shared their insights with the guests. New products such as the TN Success Shake were on display and Team National Business Owners were on hand with their own booths.

USANA recently announced the official opening of its France and Belgium markets. The company’s newest office will reside on the Champs-Elysees in Paris and will initially offer seven nutritional supplements and eight skin care products. Following on the heels of the France and Belgium opening, residents of Germany, Austria, Spain, Italy, Luxembourg and Ireland will be able to purchase USANA’s high-quality products for personal use as preferred customers.

In other company news, USANA is extending its sponsorship of the ROUSH’s Performance Road Racing Team. The company’s logo will now be represented on the red No. 61 Mustang driven by Jack Roush, Jr., and his co-driver, Billy Johnson.