neil offen president dsa president dsa direct selling industry “the people business”
TRANSCRIPT
Neil OffenNeil Offen
PresidentDSA
PresidentDSA
DIRECT SELLING INDUSTRYDIRECT SELLING INDUSTRY
“ The People Business”“ The People Business”
DIRECT SELLING INDUSTRYDIRECT SELLING INDUSTRY• 48,000,000 Sales People Globally• 48,000,000 Sales People Globally
• 475,000 New Distributors Weekly• 475,000 New Distributors Weekly
• $90 Billion Global Retail Sales• $90 Billion Global Retail Sales
DIRECT SELLING GROWTHDIRECT SELLING GROWTH
•New Markets•New Markets
Vietnam Kazakhastan
Brunei Morocco
Vietnam Kazakhastan
Brunei Morocco
DIRECT SELLING GROWTHDIRECT SELLING GROWTH•New Direct Selling Associations•New Direct Selling Associations
Estonia RomaniaLatvia MontenegroLithuania Macedonia
Croatia
Estonia RomaniaLatvia MontenegroLithuania Macedonia
Croatia
DIRECT SELLING GROWTHDIRECT SELLING GROWTH
• Improved Performance in Argentina and Japan• Improved Performance in Argentina and Japan
• Record Growth in the United States• Record Growth in the United States
DIRECT SELLING NEWSDIRECT SELLING NEWS
• Vorwerk Purchases JAFRA Cosmetics• Vorwerk Purchases JAFRA Cosmetics
• Activated Holdings to Purchase Shaklee• Activated Holdings to Purchase Shaklee
• Swedish-based Oriflame Goes Public• Swedish-based Oriflame Goes Public
DIRECT SELLING NEWSDIRECT SELLING NEWS• Golden Pride, Achievers Unlimited & ChangesInternational Merge To Form Goldshield Elite• Golden Pride, Achievers Unlimited & ChangesInternational Merge To Form Goldshield Elite
• Avon Net Sales Grow More than $600 MillionStock Price Cracks $80 on NYSE• Avon Net Sales Grow More than $600 MillionStock Price Cracks $80 on NYSE
• Stock Prices Climb at Mannatech, NuSkin,USANA, & Reliv Int.• Stock Prices Climb at Mannatech, NuSkin,USANA, & Reliv Int.
DIRECT SELLING NEWSDIRECT SELLING NEWS•Notable Success Stories•Notable Success Stories
Southern Living AT HOMESouthern Living AT HOME
Creative MemoriesCreative Memories
Primerica Financial ServicesPrimerica Financial Services
DIRECT SELLING NEWSDIRECT SELLING NEWS•Notable Success Stories•Notable Success Stories
Binney & Smith At HomeBinney & Smith At Home
The Kirby CompanyThe Kirby Company
The Pampered ChefThe Pampered Chef
DIRECT SELLING NEWSDIRECT SELLING NEWS•New Subscriber Members•New Subscriber Members
Lillian VernonLillian Vernon
Milliken & Company (Sylvan Chemical)Milliken & Company (Sylvan Chemical)
Rona Barrett Lavender CompanyRona Barrett Lavender CompanyTruGreen ChemlawnTruGreen Chemlawn
DIRECT SELLING NEWSDIRECT SELLING NEWS
P & G Schwann’sNestle Unilever
Penguin Books
P & G Schwann’sNestle Unilever
Penguin Books
•Exploring Direct Sales•Exploring Direct Sales
DIRECT SELLING NEWSDIRECT SELLING NEWS•Start-Ups Rising•1200 Possible DSA Recruits•79 New DSA Members in 2003•59 New DSA Members in 2004
•Start-Ups Rising•1200 Possible DSA Recruits•79 New DSA Members in 2003•59 New DSA Members in 2004
DIRECT SELLING NEWSDIRECT SELLING NEWS•162 Active Members•61 Pending Members•67 Subscriber Members
•162 Active Members•61 Pending Members•67 Subscriber Members
DIRECT SELLING NEWSDIRECT SELLING NEWS• 290 Total Members• 290 Total Members• 200 Supplier Members • Grand Total 490 Members
• 200 Supplier Members • Grand Total 490 Members
DIRECT SELLING TRENDSDIRECT SELLING TRENDS
International Expansion Stimulates Growth
International Expansion Stimulates Growth
DIRECT SELLING TRENDSDIRECT SELLING TRENDS
Creation of Professional Societies for Career
Sales People
Creation of Professional Societies for Career
Sales People
DIRECT SELLING TRENDSDIRECT SELLING TRENDS
Providing Pension Plans & Major Medical CoverageProviding Pension Plans
& Major Medical Coverage
DIRECT SELLING TRENDSDIRECT SELLING TRENDS Changing the Status of First Level Recruits to “Preferred Customer”
Changing the Status of First Level Recruits to “Preferred Customer”
DIRECT SELLING TRENDSDIRECT SELLING TRENDSFastest Growing Segments of the
Salesforce are Persons Over 65 Yearsof Age, African Americans, Hispanic
Americans and Asian Americans
Fastest Growing Segments of the Salesforce are Persons Over 65 Yearsof Age, African Americans, Hispanic
Americans and Asian Americans
DIRECT SELLING TRENDSDIRECT SELLING TRENDS
Elimination of New AbusesElimination of New Abuses
DIRECT SELLING FACTSDIRECT SELLING FACTS• Mean Income: $14,500
• Median Income: $2,500
• 2002 7.5% Worked 40 Hours
• Mean Income: $14,500
• Median Income: $2,500
• 2002 7.5% Worked 40 Hours
DIRECT SELLING FACTSDIRECT SELLING FACTS• 25% of Full-Time Sales People Grossed $100,000
• 50% Work Less Than 10 Hours Per Week
• 25% of Full-Time Sales People Grossed $100,000
• 50% Work Less Than 10 Hours Per Week
DIRECT SELLING FACTSDIRECT SELLING FACTS• 40% Work Less Than 5 Hours Per Week
• Career Ranks Are Growing
• 40% Work Less Than 5 Hours Per Week
• Career Ranks Are Growing
DIRECT SELLING TRENDSDIRECT SELLING TRENDS
More Firms Outside the Industry Are Using Direct Sales as
a Distribution Channel
More Firms Outside the Industry Are Using Direct Sales as
a Distribution Channel
DIRECT SELLING TRENDSDIRECT SELLING TRENDS
More Government RegulationMore Government Regulation
DIRECT SELLING ISSUESDIRECT SELLING ISSUES
9 Countries Considering Bans onDirect Sales of Food Supplements
and Nutritional Products
9 Countries Considering Bans onDirect Sales of Food Supplements
and Nutritional Products
DIRECT SELLING ISSUESDIRECT SELLING ISSUES
Crackdown on Distributor ProducedSales/Training Aids Sold
to Downlines
Crackdown on Distributor ProducedSales/Training Aids Sold
to Downlines
DIRECT SELLING TRENDSDIRECT SELLING TRENDS
Impact of TerrorismImpact of Terrorism
DIRECT SELLING TRENDSDIRECT SELLING TRENDS
Positive Impact of TechnologyPositive Impact of Technology
DIRECT SELLING FACTSDIRECT SELLING FACTS
• Consumer Ordering Over Net Has Increased
• 7% of Sales are From Customer Direct to Company
• Consumer Ordering Over Net Has Increased
• 7% of Sales are From Customer Direct to Company
DIRECT SELLING FACTSDIRECT SELLING FACTS
Cross-Border Sponsoring Continuing to Grow
Cross-Border Sponsoring Continuing to Grow
DIRECT SELLING FACTSDIRECT SELLING FACTS
Image and Reputation Will BeEnhanced and Improved
Image and Reputation Will BeEnhanced and Improved