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DSN Global 100: The 2012 List & Full DSN June Issue Now Available

June 3, 2013

Nutrition Companies Surviving or Thriving In Direct Sales?

This month, June, the DSN released their full issue dedicated to the Top100 Direct Sales Companies.  I’ve got the “Top100” on this site, but it’s the only one (that I could find) with the last four years’ revenue numbers compiled, 2009-2012.

Some great quotes and highlights from the first story:

  • Of the 7 billion people on the planet, a little over 1 percent are direct sellers.  Just 1 percent. At first, that doesn’t sound like much. However, 1 percent actually equals over 91.5 million people worldwide who have embraced the entrepreneurial spirit by choosing to become small-business owners.
  • Seventeen companies with less than 10 years in the business made their way into the DSN Global 100 list for 2012, accounting for $5.3 billion of the $72 billion the listed companies achieved in 2012. Six of those 17 companies are less than 5 years old, proving that economic uncertainty cannot keep the entrepreneurial spirit down.
  • Nearly four-fifths of the DSN Global 100 data is derived from privately held companies.

There are all kinds of good stories in the June DSN issue – I pulled some interesting stats about the nutrition/wellness companies from it. This is more evidence of the potential of the nutrition market in direct sales:

  • 3 of the top 10, #1 Amway & #3 Herbalife & #8 Nu Skin, get well over 50% of their revenue from nutrition/wellness products.
  • Probably 2 or 3 of the other 7 (6 of the top 10 are cosmetics, and Tupperware is the other) get a huge amount of their revenue from nutrition.
  • Avon & Mary Kay don’t do nutrition, but not sure about the percentages for Vorwerk, Oriflame, and Belcorp (all located outside of the USA).
  • 25 of the next 50, and more than half of the top 100, derive the majority of their revenue from nutrition/wellness products.

In that first story, the graph halfway down the page shows the fastest growing direct sales companies:  the top 4 are nutrition companies!  The 5th is coffee.  Here’s the list:

  1. ViSalus: 170.1%
  2. LifeVantage: 167.1%
  3. Jeunesse Global: 93.8%
  4. AdvoCare: 84.8%
  5. Organo Gold: 80.9%
  6. Faberlic: 65.0%
  7. WorldVentures: 57.1%
  8. Thirty-One Gifts: 49.0%
  9. WIV Wein: 47.7%
  10. Princess House: 45.1%

So anyone who says “People are tired of nutrition/wellness companies” or “No one’s going to do autoship anymore,” blah, blah, blah, are spitting in the hurricane wind of facts stating otherwise, both historically and currently.

The other wild card to consider is the average per-person income generated by different companies:  the highest incomes are far and away from nutrition and personal care companies, NOT from tech companies.  That’s easily verified by looking at the top earners on the list (subscription required).  It’s also obvious when a company is competing in a commodity market, where price is the key factor, not product quality or uniqueness.  An electricity or wireless bill produces a high revenue figure, but a small percentage of that is paid back to the rep force.

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