Percent of Sales by Major Product Group

2009                   2010                   2011

Home & family care/home durables                      23.9                    24.4                    22.6

Wellness (weight loss products, vitamins, etc.)   22.8                    23.0                    24.1

Personal care                                                                21.3                    19.4                    18.2

Services (travel, real estate, etc.) & other               18.4                    19.2                    20.7

Clothing & accessories                                              10.3                    11.0                    12.3

Leisure/education                                                     3.3                      3.0                      2.1

Percent of Sales by Sales Strategy

2009                   2010                   2011

Individual/person-to-person                                 64.3                    63.5                    64.9

Party plan/group selling                                         25.4                    27.9                   30.9

Continue reading »

Giant corporations have marketed some of their own products and services through network marketing. For many corporations who observed some of the earlier successes of this alternative channel of distribution, a number of conclusions were reached.

1.   It was a great way to introduce brand new products.

2.   It seemed to work well for products that needed demonstration or testimonial.

3.   It was a great way to reward the consumer for sharing excitement about products.

4.   This method could result in rapid penetration of the market.

5.   In that commissions were only paid on the movement of product, and massive and costly advertising campaigns could be avoided, it seemed efficient and economical.

6. In recent years, corporations expanded offerings far beyond home and personal care products to offer consumer services such as telecommunications, prepaid legal representation, financial products and consumer member benefits packages that offer customers significant savings across the board.

Continue reading »

Picture this – one sales call from you triggers sales presentations to 10,000 customers. Can it happen? Yes. How?

Network marketers should not overlook a golden opportunity to promote sales through nonprofit or charitable organizations. The distributor makes money and so does the organization.

The network marketing industry has become attracted to nonprofit organizations (NPO), their members and friends as a vast potential source of distributors. Handled correctly, the benefits of a networker’s involvement with an NPO are mutual and substantial. The tax-exempt organization receives a source of funds that are necessary to carry out its functions and to support the causes that are deemed worthy enough for tax-exempt status. The network marketing company gains access to a potentially large and motivated customer base.

In recent years, nonprofit organizations have played a growing role in network marketing sales. Overnight, the membership of a charitable organization may become an instant sales organization of hundreds of thousands. The charitable organization raises these funds for worthy causes and a network marketing company finds a new market for its products, all in all, a very sound match.

Continue reading »

The Consumer is King…or Queen

In Canada, they call it the Direct Selling Rule. In the U.K., they call it the Doorstep Selling Rule. Consumers have a right to cancel face-to-face transactions. In the U.S., rules regarding face-to-face selling are taken with equal seriousness. Networkers and direct selling companies must contend with an oddly named rule, the FTC Cooling Off Rule, every time they pull out a retail sales form. Why all this legal language, and who started it after all?

Although we have seen the last vestiges of the door-to-door salesperson, the direct selling industry was built on models such as “ding-dong Avon calling” or the Fuller Brush Man. Today, no one is home during the day, and it is very difficult to make this art form successful. That is not to say that the face-to-face connection is gone. It is just that it may occur in home parties, in home presentations, around the office lunchroom table, or over coffee at Starbucks.

Continue reading »

An Emerging Giant – What is the Difference Between Direct Selling and Network Marketing?

Network marketing – also called multilevel marketing (MLM), person-to-person marketing, and one-on-one marketing – is a form of direct selling. You may already know about direct selling.  Avon, Tupperware, Mary Kay, Fuller Brush… these are just some of the direct selling companies that have been household names for decades. Since the 1980’s, new network marketing giants have emerged, including Nikken, Herbalife, NuSkin, Maleleuca, and Prime America.

Direct selling companies market goods and services through networks of thousands of independent distributors. These distributors either buy products from their companies and then resell them to consumers, or they sell products on behalf of their companies for a commission on retail sales.

Network marketing gives direct selling a new spin. In both types of companies, distributors make money by selling products directly to consumers. But in network marketing companies, distributors can also make money by building their own sales organizations and receiving commissions or bonuses on the sales generated by the distributors in the organizations. The term “multilevel marketing” springs from the fact that distributors receive commissions on multiple levels of their organizations. Most direct selling companies today are structured this way.

Continue reading »

Why Millions of People Are Getting Involved

Although network marketing isn’t for everybody, millions of people from all walks of life consider it to be the right opportunity at the right time. The fact is, becoming an independent distributor can fill important needs and fit within the time and money limitations many people face.

Practically No Investment Necessary

Most companies require only the purchase of a modestly-priced startup kit ($25 to $100) to join.

The Chance to Own a Business

Because network marketing can easily be done part-time, and worked around a full-time job, it gives people who work for someone else the chance to own their own businesses and jump into the world of entrepreneurship without the major economic and time investments that traditional business models require. In this world, they are rewarded for risk-taking, and have control over their working environments.

Earn Additional Income and Potential Tax Benefits

Continue reading »

Direct Selling News has published the top direct selling companies in the world. Here is a list of the highest-selling top 20 companies, located in the United States, exceeding 100 million dollars in net sales.

Avon Products

$11.3 billion

Amway

$10.9 billion

Herbalife Ltd.

$3.5 billion

Mary Kay, Inc.

$2.9 billion

Tupperware Brands Corp.

$2.6 billion

Nu Skin Enterprises, Inc.

$1.7 billion

Primerica Financial Services, Inc.

$1.1 billion

Continue reading »

Just as explorer Ponce de Leon searched for the elusive Fountain of Youth, network marketing companies and distributors search for the magic factor that ensures success in recruiting and sales. Is it the compensation plan? The payout? The capitalization? Celebrity endorsement? The sizzle product? Flashy marketing materials online and offline? Famous owners?

Well, as it turns out, in study after study, all of the above factors can be very important. Companies that demonstrate these assets may very well have short-term success and occasionally long-term success. However, industry experts and observers have long since concluded that the essential ingredients – the magic formula for success – are passion and bonding. Without these essential ingredients, a direct selling opportunity can be good, but not great.

Passion and Bonding: The Absolute Essentials

Continue reading »

So, What Attracts People to Network Marketing?

Although network marketing isn’t for everybody, millions of people from all walks of life consider it to be the right opportunity at the right time. The fact is, becoming an independent distributor can fill important needs and fit within the time and money limitations that many people face.

Virtually No Investment Required

Most companies require only the purchase of a modestly-priced sales kit ($25 to $100) to get started, which is much more economical than starting a traditional home business, which could cost hundreds of thousands of dollars.

The Chance to Own a Business

Because network marketing can easily be done part-time, and worked around a full-time job, it gives people who work for someone else the chance to own their own businesses and experience the world of entrepreneurship. In this world, they are rewarded for risk-taking, and have control over their working environments.

Continue reading »

Picture this – one sales call from you triggers sales presentations to 10,000 customers.  Can it happen? Yes. But how?

Network marketers should not overlook a golden opportunity to promote sales through nonprofit or charitable organizations. The distributor makes money and so does the organization.

The network marketing industry has become attracted to nonprofit organizations (NPO), their members and friends as a vast potential source of distributors. Handled correctly, the benefits of a networker’s involvement with an NPO are mutual and substantial. The tax-exempt organization receives a source of funds that are necessary to carry out its functions and to support the causes that are deemed worthy enough for tax-exempt status. The network marketing company gains access to a potentially large and motivated customer base.

Continue reading »

Tagged with: