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How the Top Direct Sells Marketing Companies Rank
Tired of hearing about the global economics? Here’s the good news. Among the many industries falling by the wayside, the direct selling industry is charting a strong and steady course around the world. So strong and steady that we thought it would be interesting to see how the industry’s top companies-those with annual billings of more than US $1 billion – were faring, despite all the doom and gloom reported by the media. We decided to call this very exclusive group of industry leaders the billion dollar club. Although each company has a healthy respect for today’s global economic challenges, each is experiencing continued growth and success. Most of the executives we spoke to believe the current financial crises are responsible, at least in part, for the direct selling industry’s current solvency and success.
And now, we’d like to invite you to peek inside the companies that comprise the direct selling industry’s own billion dollar club.
1. Avon Products Inc. $10.9 Billion
Avon markets to women in more than 100 countries through 5.5 million independent sales representatives.
2. Amway Corporation $8.2 Billion
“Amway’s rapid expansion around the world and the acceptance of the direct selling business model by countries such as Russia, India, Ukraine and others, has blunted the impact of the economic downturn on our company,” says Amway Chairman Steve Van Andel.
3. Vorwerk & Co. KG $3.5 Billion
Founded in 1883 as a carpet company, Wuppertal, German-based private firm Vorwerk & Co. KG has been selling quality products—from household appliances to cosmetics—through the direct sales channel since 1930.
4. Herbalife Ltd. $2.4 Billion
Los Angeles-based public company Herbalife (HFL—NYSE) sells its products through more than 1.9 million independent distributors who conduct business worldwide.
5. Mary Kay Inc. $2.4 Billion
From its humble beginnings in a 500-square-foot Dallas storefront, Mary Kay Inc. has grown into one of the largest direct sellers of skin care and color cosmetics in the world, with a global independent sales force exceeding 1.8 million.
6. Primerica Financial Services Inc. $2.3 Billion
Based in Duluth, Ga., private firm Primerica Financial Services—a subsidiary of public parent company Citi (C—NYSE)—boasts the largest salesforce in the financial services industry. There are approximately 100,000 licensed, independent Primerica representatives across the United States (including Puerto Rico), Canada and Spain.
7. Tupperware Brands Corporation $2.21 Billion
Publicly traded Tupperware Brands Corporation (TUP—NYSE), based in Orlando, Fla., sells storage and serving products through Tupperware, and beauty and personal care products through Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo and Swissgarde.
8. Forever Living Products International Inc. $2.1 Billion
Private firm Forever Living Products, based in Scottsdale, Ariz., sells aloe vera drinks and aloe verabased aromatherapy products, cosmetics, dietary and nutritional supplements, lotion, soap and tooth gel products in some 135 markets.
9. Oriflame Cosmetics $1.68 Billion
Swedish company Oriflame offers high-quality skin care, fragrances, color cosmetics, toiletries and accessories. Oriflame has grown rapidly, recently opening two markets—Iran and China.
10. Natura Cosmeticos SA $1.52 Billion
São Paulo, Brazil-based firm Natura Cosmeticos SA is traded on the São Paulo Stock Exchange (NATU3). Natura operates in the Chile, Peru, Argentina, Mexico, Colombia and Venezuela. It manufactures deodorants, sunscreens, lotions, creams, lipsticks and perfumes.
11. Nu Skin Enterprises Inc. $1.23 Billion
Provo, Utah-based publicly traded company Nu Skin Enterprises Inc. (NUS—NYSE) markets personal care products under the Nu Skin® brand; science-based nutritional supplements under the Pharmanex® brand; and technology-based products and services under the Big Planet® brand.
The Billion Dollar Bonus
Although we did not include Keller Williams Realty in the official Billion Dollar
Club, the company deserves to be mentioned in this story. Though Keller Williams’ corporate office reports annual revenue of $119 million in 2007, the company’s 70,000 agents generated $3 billion in transaction commissions. The corporate office paid $40 million to its agents based on a seven-level profit-sharing plan.
With its multilevel compensation and recruitment model, Keller Williams
Realty may just be the direct selling industry’s best-kept secret. It has become one of the largest and fastest-growing real estate franchise systems throughout North America.
Honorable Mentions
Although these companies did not qualify for membership in the billion-dollar club, their annual sales and dynamic growth indicate they will soon join.
Melaleuca Inc. $859 Million
Based in Idaho Falls, Idaho, private company Melaleuca was founded in 1985 to market a tea-tree oil formulation called melaleuca oil. The company sells personal care products,
cosmetics, household-cleaning supplies and vitamins. Melaleuca began with seven people; it now employs more than 2,400.
Dallas-based private company Ignite is a subsidiary of electricity and natural gas provider Stream Energy. When Texas’s electricity market was deregulated in
2001, Stream Energy saw an opportunity. It chose direct selling as its marketing method, and Ignite was born in 2005. Already, the company is predicting more than $800 million in revenue for 2008.
About the Author
Networkmarketer – Amazing new energy company sweeping across the country. Ground Floor Opportunity, Paid weekly, Coded Comp Plan, Residual Income. Work from home.
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