subject: How the Top Direct Sells Marketing Companies Rank [print this page] Author: Ernest Polk Author: Ernest Polk
Tired of hearing about the global economics? Heres 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 industrys 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 todays 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 industrys current solvency and success. And now, wed like to invite you to peek inside the companies that comprise the direct selling industrys 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 Amways 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 productsfrom household appliances to cosmeticsthrough the direct sales channel since 1930. 4. Herbalife Ltd. $2.4 Billion Los Angeles-based public company Herbalife (HFLNYSE) 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 Servicesa subsidiary of public parent company Citi (CNYSE)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 (TUPNYSE), 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 marketsIran and China. 10. Natura Cosmeticos SA $1.52 Billion So Paulo, Brazil-based firm Natura Cosmeticos SA is traded on the So 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. (NUSNYSE) 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 companys 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 industrys 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. Ignite $800+ Million Dallas-based private company Ignite is a subsidiary of electricity and natural gas provider Stream Energy. When Texass 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:
