“Coming together, we are set to unleash an unparalleled synergy, combining our unique strengths to foster growth and opportunities, not only across Korea but throughout Asia,” said Robert Stevanovski, ACN Chairman and Co-Founder. “Our journey with our respected counterparts has been rooted in mutual admiration and a deep, personal connection spanning more than two decades. This is more than a business transaction; it’s a fusion of visions, paving the way for our employees, independent salespeople, and all stakeholders to thrive in an exciting, expansive new era.”

ACN Korea is known as a “Top 20” company in its sector. With this acquisition, both companies will reside under the Neora brand and will work together to create a platform for entrepreneurial growth in direct sales in Asia Pacific.

“I am thrilled to welcome ACN Korea into the Neora family,” said Jeff Olson, Neora Founder and CEO. “The ACN team has built an impressive legacy, and our shared commitment of ‘Making People Better’ aligns perfectly with our global mission. I eagerly anticipate the Emerge Event on February 17, where we can get to know each other better and share our vision for the future. Together, we are poised to build a transformative legacy in the Korean market.”

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Founded | 1993

Headquarters | Concord, NC

Top Executives:
Robert Stevanovski, Chairperson & Co-Founder
Greg Provenzano, President & Co-Founder

Products | Essential Services

Entrepreneurs are like magnets. They find each other, recognizing that same spark and vision. So, a group of entrepreneurs talking through new ideas is really nothing out of the ordinary—that is, until inspiration strikes and something entirely new is born. For the four founders of ACN, this lightning bolt moment changed everything and launched a business that shows no signs of slowing down, three decades later.

New Season, Same Values

Greg Provenzano, Robert Stevanovski, Tony Cupisz and Mike Cupisz dreamed up ACN at that fateful meeting 30 years ago. They all came to the table with significant direct sales experience, so they knew what they loved about the industry and what their previous opportunities were lacking. And, most importantly, they also knew what their dream company would stand for.

“In 30 years, our core values: integrity, commitment to giving back, Independent Business Owners and customers above all—these have stayed the same,” Greg said. “But we’ve adapted and updated our products as needed and remained open to pursue other offerings.”

“When we met in 1992, we searched for an opportunity that we could put our faith and trust in,” Robert added. In the fall of 1992, we had the crazy idea to start our own company. We decided early on to always find ways to give back and do things the right way.”

Today ACN operates with Independent Business Owners (IBOs) in 27 countries. While ACN began as a provider of long-distance telephone service, the company has evolved tremendously and now offers a range of residential and business services covering 12 categories, including mobile phone service, energy, internet, credit card processing, health care and travel.

“We started with long-distance service, yet we remained open and very flexible in our mindset to pursue other services that would create long-term residual income for our IBOs and provide real value for our customers,” Greg shared. “We knew if we created the right environment and platform, we would attract the right kind of people. People who were looking for an opportunity and wanted to do something special for themselves and their families.”

ACN’s residential services include travel, mobile, identity theft protection, gas and electricity, health care, internet, television and security and automation. Business services include gas and electricity, internet, health care, payment processing and security and automation.

Each service category is represented by a brand or several brands. For example, ACN recently introduced Impact Health Sharing, an affordable healthcare program that offers customers an alternative to health insurance. Another recent addition at ACN is Truvvi Lifestyle, a members-only subscription that offers travel benefits and discounted rates.

“Our menu of services has never been better, especially with our recent additions of Impact Health Sharing and Truvvi Lifestyle,” Greg said. “I believe that we can build billions of dollars of revenue with these two services alone. And the timing of our opportunity has never been better.”

An Unparalleled Opportunity

As the direct selling industry evolves, finding new competition outside of the industry in nearly every product category, the ACN business model stands apart from the crowd. Customers across the world use key essential services everyday—from the energy they use in their homes to the wireless and security systems that protect them and beyond. While other direct selling companies are researching new product possibilities and new ways to keep their customers engaged, ACN taps into those key services customers are using already.

“There are a lot of good opportunities in direct selling, but we don’t rely on discretionary income. Our offering is mostly services that are necessities,” Robert shared. “Our income opportunity allows for residual income on everyday name brand products and services. We don’t have to change buying habits.”

ACN is service-focused so there is no inventory for IBOs to purchases. ACN provides a personalized website, training & marketing tools, business tracking powered by the Salesforce Platform, IBO & Customer Support, ACN Perks and ACN Loyalty rewards.

All IBOs can access the company’s extensive training and support system including an opportunity for specialized leadership training with the Co-Founders. From online training to local, regional and international training events and ongoing personal development, IBOs have everything they need to grow readily accessible to them.

“We are always looking for unique and innovative ways to support and connect with our IBOs,” Greg shared. “We’re offering a hybrid approach of Zoom and live meetings; increasing the number of in-person events; and doing social media training as another tool in their toolbox to help the IBOs attract others to themselves. We remain relevant by staying in tune with our leaders and what they want and need to grow their businesses.”

When the four founders met to dream up their ideal direct selling organization, they each came with deep experience that would shape ACN for the better. They knew they wanted the IBO experience to be seamless, supported and successful—so they created a family atmosphere that is results focused and rich with rewards and recognition.

“Since the very beginning we have always put the success of our IBOs above the success of the company,” Greg said. “I believe that when you have a higher purpose with the right intentions and focus, great things will happen for the company. And that is exactly what happened at ACN. Thirty years later, and we are more relevant today than at any point in our company’s history.”

Cheers to the Next 30 Years

ACN has much to celebrate, as it enters a new decade of serving IBOs, through steadfast leadership and ongoing expansion. In the last several years, ACN has grown through the acquisition of two companies: Kynect and Team National. Both companies’ essential service offerings fit perfectly into ACN’s portfolio, creating value for existing ACN IBOs as well as those IBOs that transitioned from Kynect and Team National.

“Both are service based companies, with similar core values,” Robert shared. “So, it was an easy transition for both companies, as both have high expectations and a family environment. It’s been great to add them to the team as IBOs and in the corporate office.”

ACN’s founders, corporate team members and IBOs are eagerly looking to the next 30 years, as they continue to grow together through serving their customers’ essential needs.

“We’re excited about continuing to help others,” Greg said. “The recent addition of services like Impact Health Sharing and Truvvi Lifestyle makes us very bullish about the future.”

From the May 2023 issue of Direct Selling News magazine.

The post ACN: 30 Years Is Just the Beginning first appeared on Direct Selling News.

The two companies will begin merging effective immediately to expand ACN’s global reach and create a smooth transition process for both companies’ independent distributors.

“We are very excited to continue the legacy Kynect has created,” said ACN Co-Founder Robert Stevanovski.

ACN will retain Kynect CEO Bouncer Shiro, a founding board member, on staff during and beyond the transition period.

“I am beyond honored to have been part of Kynect for the last 16 years,” Schiro said. “Together, we’ve changed countless lives and truly made a difference in this world. Words can’t describe my gratitude for the corporate staff’s endless contributions and belief in our movement.”

The companies point to a set of “shared values” and a comparable business model and product offering as the catalyst for the purchase agreement.

“Ultimately, this agreement is about enhancing the opportunity for our Kynect army and ACN’s Independent Business Owners,” said Kynect founder Rob Snyder. “We here at Kynect have built a culture that puts people and personal connections above all else. It’s no coincidence that we’ve entrusted ACN to carry that torch in partnership with our Independent Associates as they embark on this new journey.”

The post ACN Acquires Energy and Essential Services Provider Kynect Ltd. first appeared on Direct Selling News.

The Customer Centric Recognition (CCR) Program celebrates companies that are leading the way toward a sustainable, customer-centric future for the industry. Qualifying companies utilize business models that boast high customer-to-distributor ratios and prioritize customer sales.

The CCR Program is based solely on a company’s customer-to-distributor ratio taking into consideration the following definitions:

• Distributor—someone who DOES have a distributor agreement in place
• Customer—someone who DOES NOT have a distributor agreement in place
• Active is defined as each customer and distributor must have made a product purchase during the last six months. Active customer and distributor counts are limited to those in the U.S. and Canada.

Companies must have been in business for at least one year and have a minimum of $5 million in annual revenue. Qualifying companies must attain: 5:1 up to 10:1 for Gold status and 10:1 or more for Platinum status.

Direct selling companies with a strong retail base of satisfied customers are experiencing impressive growth and deserve recognition and acknowledgment for their efforts.  Being customer-centric equals success for everyone—distributors, direct selling companies and the channel as a whole.

DSN CCR Program acknowledges the following companies that have submitted their CCR application and been approved:

Companies who wish to learn more or submit a CCR Program Application can go to www.directsellingnews.com/ccr/or contact editor@directsellingnews.com.

The post DSN Announced the First Customer-Centric Recognized Company List first appeared on Direct Selling News.

Officers and directors of the association are recognized leaders who have earned the respect of their colleagues and the public and are committed to lead and direct the affairs of the association. The board officers will each serve one-year terms in their elected positions, and directors will each serve three-year terms.

“DSA is so fortunate to work with a talented and dedicated slate of directors and officers,” said Joseph N. Mariano, DSA president. “We are forever grateful for the time and effort the Board spends helping to shape the future of direct selling for our members.”

Board Members

·       Chairman: Ryan Napierski, President, Nu Skin Enterprises

·       Vice Chairman: Dr. Traci Lynn Burton, Founder & Chief Executive Officer, Traci Lynn Inc.

·       Vice Chairman: Connie Tang, President & Chief Executive Officer, Princess House, Inc.

·       Treasurer: David Merriman, Executive Vice President, ACN, Inc.

·       Immediate Past Chairman: John Parker, Chief Sales Officer, Amway

·       Past Chairman: David Holl, President & Chief Executive Officer, Mary Kay Inc.

Directors (for terms expiring in 2022)

·       Dan Chard, Chief Executive Officer, Medifast – OPTAVIA

·       Heather Chastain, President US and Canada, Shaklee Corporation

·       Erik Johnson, Chairman & Chief Executive Officer, Hy Cite Enterprises, LLC

·       Pamela Jones Harbour, Senior Vice President and Legal Officer, Global Member Compliance and Privacy, Herbalife Nutrition

·       Dan Moore, Southwestern Advantage

·       Brett “Ben” Rogers, Executive Vice President and General Counsel, Primerica, Inc.

·       Joni Rogers-Kante, Founder and Chief Executive Officer, SeneGence International

·       Mark Stastny, Chief Marketing Officer, Scentsy, Inc.

Continuing Directors

·       Ursula Dudley Oglesby, Dudley Beauty Corp. LLC (2020)

·       Aaron Eddington, Melaleuca, Inc. (2020)

·       Steve Fisher, Stream Gas & Electric, Ltd. DBA Stream (2021)

·       Kevin Guest, USANA Health Sciences, Inc. (2021)

·       Darren Jensen, LifeVantage Corporation (2021)

·       Danny Lee, 4Life Research (2020)

·       Aidan O’Hare, Forever Living Products (2020)

·       Paul Vidovich, Rexair LLC (2021)

·       Steve Wallach, Youngevity International, Inc. (2021)

The post U.S. DSA Announces 2019 Officers, Directors first appeared on Direct Selling News.

We can shrink from these challenges, or we can evolve. We can be resilient, innovative and bold. This will require new thinking and tough decisions, but it will position us to be even stronger. As the 2019 Global 100 list celebrates its tenth birthday, Direct Selling News examines how the industry has changed and what the landscape looks like as we head into the third decade of the 21st century as independent distributors.

First, the numbers

Collectively, the companies in the DSN Global 100 achieved $75.6 billion for 2018. Aggregate sales for the top 10 global companies on DSN’s Global 100 list were $40.8 billion in 2018. Twenty of the Global 100 grew by $100 million or more in the past year—including list toppers Infinitus, Natura, Herbalife Nutrition, Coway and Nu Skin. Newcomers O’Boticario and Atomy debuted at $1.22 billion and $1.5 billion, respectively. There are 23 mid-market companies—those between $300 million and $1 billion on this year’s ranking. Five companies are above $700 million, and another five above the half-billion-dollar mark.

“There are 23 mid-market companies—those between $300 million and $1 billion on this year’s ranking. Five companies are above $700 million, and another five above the half-billion-dollar mark.”

Eighteen companies are making their first appearance on the Global 100 list, including companies from Brazil, Korea, Taiwan, Germany, Malaysia, Japan and Sweden. The biggest gaps on the 2019 list, though, come from the absence of 25 of the 26 China-based companies that made the list last year and some U.S.-based companies—such as Mary Kay, Isagenix, AdvoCare and Juice Plus—that chose not to report their financials.

In response to some unsubstantiated product claims, the Chinese government in January launched a 100-day review of all health and wellness direct selling companies operating in China, the industry’s second-largest market. Because of the increased scrutiny, most Chinese companies were unwilling to disclose their financial information to the magazine. This left room for 18 newcomers to the list and seven companies returning to the list after an absence.

“Direct selling companies are spending millions to improve their online shopping portals, partly in response to the Amazon effect and partly because of regulatory pressure to distinguish more clearly between customers and distributors.”

The economic and regulatory conditions in a global marketplace always fluctuate, and sometimes companies will decide to keep a lower profile, which is why it’s noteworthy that this year’s list includes 13 private companies that have reported their numbers to the Global 100 every year since it began in 2009. Public companies don’t have a choice about whether to share financials, but closely held companies do, and their transparency allows the Global 100 to present as clear a picture of the industry as possible.

Times, they are a changin’

The direct selling business and consumer habits have changed significantly over the last decade.

From a broad, cultural perspective, people now consider their involvement in a direct selling company in much the same way they consider any job. “The direct selling space is evolving from the days when it was sort of a niche way to do business,” says securities analyst Doug Lane. “Given advancements in technology and social selling, direct selling  is becoming more mainstream.”

But nothing has changed in our industry more than the prevalence of technology. In the last 10 years ecommerce and social media—mainly Amazon and Facebook—have transformed the way people learn about and purchase products.

In 2009, there were 360 million active Facebook users worldwide. Now there are 2.38 billion—and a huge number of them turn to social media for brand guidance. And Forbes reports that 70 percent of Americans with annual incomes of $150,000 or more have Amazon Prime memberships, which give people unlimited free shipping (now in one day) of more than 100 million items.

Overall e-commerce sales in the United States reached $517 billion last year, 14 percent of all U.S. retail sales, according to analysis of U.S. Commerce Department data. Amazon sales alone were $141 billion of that total—accounting for nearly one-third of ecommerce revenue.

Direct selling companies are spending millions to improve their online shopping portals, partly in response to the Amazon effect and partly because of regulatory pressure to distinguish more clearly between customers and distributors. Direct sellers have to offer customers a way to buy product without signing up to become a distributor, and creating direct online ordering systems is the easiest way to do that. Such changes come more quickly for smaller, newer companies, Lane says. But the larger the business, the more legacy systems and mindsets there are to move. “That makes it a big challenge,” he says. “But that’s what leadership has to do.”

Some direct selling companies are meeting this challenge head-on, responding with complete digital transformations of customer and distributor experiences, says Bob Bass, Lead Strategic Insights Analyst for Amway, which tops the Global 100 list for the seventh consecutive year, with $8.8 billion in revenue. “Changes I’m seeing are monumental, from the way companies support distributors to the emerging use of augmented reality.”

Augmented reality is fueling a trend called “experiential retail,” which is, ironically, drawing customers back to brick-and-mortar stores. For example, Pottery Barn allows in-store customers to place virtual furniture in digital versions of their homes. Nordstrom shoppers can select clothing via a mobile app and the store will have the items waiting for them in a dressing room when they arrive. French beauty products retailer L’Occitane lets customers take a cyber hot air balloon ride through the French countryside while they get a hand massage with real hand cream.

“Customers and distributors want to be reached in ways that are most meaningful to them. Everything from attracting, developing and retaining more young leaders to honing in on what is marketed to different segments, so that your approaches are much more personal and relevant.” – Bob Bass, Lead Strategic Insights Analyst for Amway

If some of these experiences feel familiar, they should—they’re a next-gen version of what network marketing has been doing through the party plan model for decades: letting people try and build a connection with a brand before they buy. This trend reinforces the core of our model while showing us how to enhance that model at the same time.

Beauty and wellness products are prime for augmented reality, says a recent market study—so as the direct selling channel’s largest category, these products give the industry an opportunity to use the tool on a broad scale. Amway’s already on board. Last spring, it partnered with a Silicon Valley company to implement the YouCam Makeup app, which makes personalized skin care commendations and lets customers put virtual Artistry brand makeup on their selfies.

With YouCam, Amway seems to be proving that even massive companies can be technologically agile, if they’re committed. Amway Chief Sales Officer John Parker says it’s all about a forward-thinking mindset. “We encourage our employees to stay hungry and focused on what is still possible rather than what we have already achieved,” he says. “As an industry we embrace what’s great about our channel—the combination of digital and social relationships with the delivery of live interactions and experiences distributors and customers will never forget.”

Getting personal

As consumers become more sophisticated about how and where they buy, they’ve also become more particular about how they want companies to market to them. “Customers and distributors want to be reached in ways that are most meaningful to them,” Bass says. “This means everything from attracting, developing and retaining more young leaders to honing in on what is marketed to different segments, so that your approaches are much more personal and relevant.”

Noah Westerlund, Senior Vice President of Business Development for SUCCESS Partners, says this personal approach starts with making sure the audience you want and the audience you have are the same. “Be realistic about what your company provides, and do some audience research to find out if it’s what your intended targets really want,” he says. “Maybe you have a product that has always appealed to Baby Boomers but you keep pushing your teams to recruit and sell to Millennials.” If you’re losing or can’t gain momentum, a misalignment between your message and target customers may be partly why.

Parker says Amway’s strategy for keeping its momentum for so many years is to keep its ear close to the field. “We continually focus on listening to our Amway Business Owners, who are out there every day working with customers and new people in the business,” he says. “Like them, we know the importance of hard work, trying new approaches, studying others’ successes and failures and planning our next move, even when business is at its strongest.”

New frontiers

One ingredient and one concept that have burst into the marketplace in the last few years are putting our industry in an interesting juxtaposition: One is opening doors to astronomical sales, while the other is reminding us not to take our position for granted.

Let’s talk about hemp first. Products with cannabidiol (CBD)—a non-THC product derived from the cannabis plant—are becoming wildly popular for direct selling. DSN estimates that direct selling’s CBD revenue reached $300 million in 2018, will hit $600 million this year and will generate $1 billion next year.

At least 40 companies on this year’s Global 100 list sell products with CBD, and they’re seeing huge numbers. Four of them alone—including Las Vegas-base My Daily Choice/Hempworx and San Diego-based Kannaway accounted for $400 million of overall CBD sales last year. Sales at My Daily Choice/Hempworx increased from $10 million in 2017 to $100 million in 2018, a 900 percent growth rate.

While CBD has become the hot new category inside the industry, income opportunities with ride-share providers, on-demand errand services and private home rental companies are changing the game outside our industry, which used to have a lock on the “gig” idea.

According to a recent McKinsey Global report, more than 160 million people in Europe and the United States are earning money using cars, houses and time they already own. This is more than three times the 18.6 million U.S. direct sellers—4.1 million of whom are discount buyers or have no plans to sell the products and nine million of whom have gone inactive.

The lure of gigs is strong because they usually require little capital or training. You don’t need sales skills to be an Uber driver. You wake up, turn on your phone and customers fall out of the sky.

“If you’re losing or can’t gain momentum, a misalignment between your message and target customers may be partly why.” – Noah Westerlund, Senior Vice President of Business Development for SUCCESS Partners

Direct selling experts say that the industry can be competitive by appealing to people’s desire to work for more than just a paycheck. People want to be part of something with a greater purpose—they also will gravitate toward opportunities that provide support and ongoing training so that they can improve personally and professionally.

But we can’t keep doing everything the way we’ve always done it. For example, gig work pays on the spot and that’s a huge deal to its workforce. Direct sellers have to find ways of paying more quickly.

NuSkin, number seven on this year’s list with $2.68 billion in sales, introduced a new compensation strategy in late 2017 to allow for quicker payouts. Through NuSkin’s “Velocity” pay plan distributors can earn retail sharing bonuses daily when someone buys a product via their mobile app. “We found there was a fairly large group of people building a Nu Skin business because they needed income today, not six weeks, or even a week from now,” NuSkin President Ryan Napierski said at the 2019 Companies in Focus.

And about those customers “falling out of the sky?” Direct selling also needs to refine its process of distributing leads to field teams, Westerlund says. “That’s how we become an end-to-end solution that’s competitive with gig economy opportunities.”

Being better

How do we maintain traction where we have it and regain it where we might have slipped?

We always need to recognize and build on what makes us unique—our high-quality research-based products, the opportunity we give people to change their lives in small and big ways and our deep commitment to the communities in which we do business.

It’s also critical for companies to acknowledge and correct for their blind spots and missteps, and that means doing a better job on compliance, income claims and product claims. Bass agrees. Transparency is everything in this industry, he says.

In January, the U.S. Direct Selling Association launched the Direct Selling Self-Regulatory Council to hold the industry even more accountable to ethical business practices. Administered by the Council of Better Business Bureaus, the SRC will monitor the marketplace for questionable activity, investigate consumer complaints and report potentially noncompliant companies to the appropriate government agencies.

“We know that direct selling has sometimes suffered from perceived problems, occasional bad actors and others who pretend to be legitimate,” said DSA President and CEO Joseph Mariano. “We have decided to address these issues directly, by holding companies to the highest standards with an effective third-party regimen.”

Says Bass, “It’s in our collective interest to call each other out and hold each other accountable for deceptive and dishonest speech.”

In addition to staying mindful of industry-specific changes, it’s important to note that the economy is likely nearing the end of a decades-long expansion cycle. It’s too soon to know how much of a slowdown we’ll experience, but slowdowns are inevitable. And maybe a more moderate pace is exactly what everyone needs to catch their breath and make plans for the next race.

$100 million+ non-reporting companies

In addition to the Chinese companies not reporting this year, several $100 million plus companies previously represented on our Global 100 list chose not to report their 2018 data.

The post A Lifetime Of Change In One Decade first appeared on Direct Selling News.

Events will always be a driving force for growth and belief building. While the benefits of training motivation and culture are at the core of events, they generate some impressive, tangible growth numbers. Some companies are augmenting live events with some of the latest technology and social media platforms to create a unique and inclusive experience.

Events are Crucial to Enrolling

According to LifeVantage CEO Darren Jensen in his recent article titled, The Social Proof Principle: Does Attending Events Matter?, “Event attendees are 2,241 percent more likely to enroll somebody than their non-event-attending counterparts.” He also states that those who attended at least one major event per year earn an average of 119 percent more.

“Seasoned industry veterans understand the power behind events,” Jensen says. “We keep on coming back because we derive value from them. We continue to invest personal money to attend them because, either we enjoy the experience, or it helps our businesses in some tangible way. Events remind distributors that they are necessary while helping them feel connected to a larger purpose.”

Pick up the printed issue in which this article is found.

Technology Changing Event Landscape

ACN will enter its 26th year in business in 2019, and still hosts four major corporate events throughout the year. The largest event is in February, and each one builds to the next. Different locations are selected for each and announced during or right after the current event. The company recently held a live event with some of its top leaders that was also broadcast via YouTube Live for any of its Independent Business Owners to view, creating an atmosphere where everyone felt as if they were in the same room. “All of our leaders truly believe that our events are non-negotiable,” says Katie Mapel, ACN Director of Marketing Communications.

Ambit Energy holds two major corporate events per year for its Independent Consultants. Ambition, historically held Labor Day weekend in Dallas, is the company’s major annual convention. The first event each year, called Simulcast, acts as a one-day yearly kickoff held in January. For 2019, there are two live locations (Texas and Connecticut). It’s a mix of training, motivation, plus a time for announcements and goals for the year. For the first time, an after-party will be held near the live locations to help bolster excitement, culture and networking.

The event is also simulcast (hence the name) online for consultants who cannot attend a live location. Groups of consultants around the country hold watch parties, which Ambit corporate staff members have been known to “crash” with prizes. Attendees, whether live or online, are eligible for special bonus promotions following Simulcast.

The post The Events Horizon first appeared on Direct Selling News.

Childhood hunger is an epidemic, with approximately 17 million children in North America not knowing where their next meal will come from. With ACN’s Project Feeding Kids Program, every time someone signs up for an ACN service, one meal is provided. Every time a customer pays their bill for a select service, such as Flash Wireless, another meal is provided. The program began in 2015, and since that time, ACN has provided over 2 million meals, with plans to donate 1.65 million more meals to Feeding America and 150,000 meals to Food Banks Canada before March 2018.

“Since ACN began in 1993, it’s been our hope to leave the communities in which we live, work and play a little better than we found them,” said ACN President Greg Provenzano. “ACN supports a long and ever-growing list of organizations on a global scale, with our effort concentrated on those directly impacting children. We believe that when you impact the life of a child, you do more than just change their day—you change their life. Providing hope to the next generation—that’s the legacy we hope to leave.”

According to Feeding America, one in eight people in the United States struggles with hunger. More than 46 million people turn to Feeding America each year for extra support, with 72 percent of those households served living at or below the poverty level. One in six children do not know where they will get their next meal. More than 5 million senior citizens currently face hunger, often having to choose between groceries or medical care. The Feeding America network includes 200 food banks and 60,000 food pantries. Of all donations raised, 98 percent go directly into programs serving people in need. For more information on Feeding America, click here.

Food Banks Canada represents the food bank community in Canada, including the network of Provincial Associations, affiliate food banks and food agencies that work at the community level to relieve hunger. The network assists over 850,000 Canadians each month. For more information on Food Banks Canada, click here.

Founded in 1993, ACN is the world’s largest direct seller of telecommunications, energy and other essential services for residential and business customers. The company operates in 25 countries throughout North America, Europe, Asia and the Pacific.

The post ACN Making a Difference through Project Feeding Kids first appeared on Direct Selling News.

It’s what direct sellers do, too—never look down. The direct selling industry is an industry comprising people who seek to achieve things never thought possible, scaling new heights, whether reaching inside oneself to achieve personal goals or driving a company toward what is considered the Mount Everest in direct selling, the $1 billion summit.

But like Hillary, only a few direct selling companies have managed to reach that elite status. In the 159-year history of direct selling in the United States, Avon was the first to achieve the feat in 1972. Amway followed in 1980. In 1996, Mary Kay Inc. and Tupperware both reached $1 billion. In 2004, Nu Skin and Herbalife joined the group. But another nine years passed before the next company, Ambit Energy, reached $1 billion in sales. Many companies are turned back in their efforts to reach that summit. But why? What makes it so difficult?

The simple answer is that growing a company to such an extraordinary level brings with it new challenges, and, like experienced climbers, extraordinary companies know to stop when the footing gets treacherous, even if the summit is close. Because it is an industry focused on people, direct selling companies understand that the welfare of the entire team is more important than putting up numbers. One tragic misstep and the whole team could come tumbling down.

Orville Thompson, CEO of Scentsy and a former chairman of the U.S. Direct Selling Association, once analogized direct selling and the quest to reach $1 billion to scaling Borah Peak in Idaho. At 12,668 feet, Borah Peak, or Mount Borah, is the highest mountain in the state and among the 100 highest summits in the Rocky Mountains. The most popular route to the top of Borah Peak follows the southwest ridge, ascending 5,262 vertical feet from the trailhead in a little more than 3.5 miles. Just prior to reaching the top, climbers encounter Chicken Out Ridge, a thin ridge of rock with steep slopes so intimidating that many abort their summit attempt.

For those chasing after the $1 billion summit in direct selling, the biggest challenge, says Thompson, is simply finding the right path to follow, those “smooth areas worn down by countless others who have blazed trails.” When they reach that direct selling version of Chicken Out Ridge, they must “challenge their skills and test their fears” in the face of new obstacles.

Despite the risks, more companies than ever appear to be chasing the summit. Direct Selling News research has identified 13 U.S. companies with net sales at or approaching the $500 million to $1 billion range and experiencing strong growth. Having as many companies on their way to the $1 billion summit as there are currently at the peak is a testament to the strength of the channel. Here is a closer look at the contenders:

On the Summit Push

ACN
In 2011 ACN posted $550 million in sales, down from the previous year’s $553 million. However, the company came back strong the past two years, achieving $582 million in 2012—a 5.8 percent increase—and $700 million in 2013—a 20.2 percent increase. This June, the telecommunications and essential services company launched in Mexico, the seventh-largest direct selling country and the company’s 24th market.

Stream Energy/Ignite
Stream Energy/Ignite has been camped near the billion-dollar summit for the past four years, breaking the $900 million ceiling in 2010. After two years of down sales, the company came back strong in 2013 with $27 million over the previous year—a 3.2 percent increase—putting it at $867 million. The company has seen continued growth, particularly in Hispanic markets, and has significant expectations for company growth across the board in 2014 and beyond as it diversifies its service offerings, allowing it to sell nationwide.

Thirty-One Gifts
Of the 13 companies, only Thirty-One Gifts uses the party plan method of selling, joining Mary Kay and Tupperware as the only companies in the Top 17 of the Global 100 ranking that employ this sales approach. What makes that especially interesting is that, according to the U.S. Direct Selling Association, the party plan method of selling has decreased 4 percent in each of the past two years, going from a high of 31 percent in 2011 to just 23 percent in 2013. The person-to-person method, on the other hand, accounted for two-thirds of sales in 2013, according to the DSA.

Thirty-One also has made one of the fastest ascents in recent years. The company posted sales of $100 million in 2010 and then climbed to $482 million in 2011, a 382 percent increase. Sales continued to rise in 2012—a 48.9 percent increase to $718 million. In 2013, Thirty-One achieved a 6.2 percent increase, ending the year at $763 million. Its four-year growth rate: 663 percent.

USANA
USANA, which surpassed $100 million in its first six years, has been the steadiest climber in the group over the past few years. It has maintained an average of $67 million in sales growth annually for the past three years—ranging from a 10.6 percent to 12.5 percent increase—to bring it to $718 million. The company reported $182.4 million in sales for the first quarter of 2014, a 7.9 percent increase over the prior year; second quarter results saw a 0.4 percent decrease, with $188.3 million compared to $189.1 million in 2013; and the third quarter saw record sales of $191.9 million, a 10.5 percent increase over the prior-year period of $173.7 million. For the first half of 2014, USANA generated sales and customer growth in nearly every market in which it operates. Strong growth was seen particularly in Mainland China, the Philippines, Singapore and Mexico.

Expectations are that the wellness industry in particular will continue to thrive in the coming years. In a Sept. 29 article on the health and wellness industry’s global performance, Euromonitor International reported that the United States was leading all countries in 2014 with more than $160 billion in sales. The global industry is expected to reach $1 trillion by 2017, fueled by the general population’s preference for healthier products.

Rapid Ascent

AdvoCare
Four years ago, Plano, Texas-based AdvoCare had $89 million in sales and placed No. 91 on the DSN Global 100 ranking for 2010. This year it landed at No. 26 in the ranking, due to $460 million in sales for 2013. The wellness company has achieved tremendous growth over the past three years: a 55 percent increase in 2011 to $138 million; an 84.7 percent increase in 2012 to $255 million; and an 80.3 percent increase in 2013 to $460 million.

doTERRA
An essential oils company that has not previously participated in the Global 100 list, doTERRA International LLC provided a window into its growth when it received state economic development incentives at the time it decided to locate its global headquarters in Pleasant Grove, Utah, last year. The company pledged that the $60 million headquarters would bring $83 million in estimated new state tax revenue and 330 new full-time employees to the community over the next 10 years. Founded in 2008, doTERRA says it has more than 1 million independent consultants, which it calls Wellness Advocates.

Isagenix
Isagenix, which had a modest increase of 2.3 percent in 2011, has seen increases of 27.4 percent and 34.1 percent in the past two years, putting it at $448 million for 2013. Co-Founder and Executive Vice President Kathy Coover estimates that the company will achieve $720 million in 2014 and $1 billion the following year. “It will happen in 2015; we are tracking on that right now,” she says. “We have a goal to hit $1 billion in 2015. We really don’t think of it as a money goal; we think of it as how many lives we’re going to change. That’s what we equate dollars to, lives being changed.”

It Works!
It Works! placed in the Top 30 for the 2013 Global 100 ranking, achieving a 128 percent increase from 2012 to 2013. Over the three-year period, the company grew by 1,565 percent, going from $27.4 million in 2010 to $456 million in 2013. Founder and CEO Mark Pentecost predicts that 2014 will be the company’s strongest year yet for sales, continuing the streak of 14 consecutive years of growth.

Team Beachbody
Team Beachbody first landed on the DSN Global 100 ranking with net sales of $218 million for 2012. Last year the wellness company achieved a 50.5 percent increase over the prior year, achieving $328 million in sales.

Climbing Strong

Arbonne
After a slight decrease in sales in 2011, Arbonne has responded over the past two years with increases of 6.7 percent and 9.5 percent, placing it at $413 million. In 2014 the company is experiencing growth across all of its product categories in existing and new offerings. “All Arbonne markets have been growing double digits for the past six months, including the U.S. market,” says CEO Kay Napier. “We expect to approach, if not achieve, $500 million for our Arbonne business this year, which has been a key goal of ours for the last five years—and then on to $1 billion!”

Market America
Founded in 1992 in Greensboro, North Carolina, Market America has achieved steady increases of $46 million, $43 million and $42 million over the past three years, respectively, including 2012 when it surpassed $500 million in sales. The product brokerage and Internet marketing company grew from $416 million in 2010 to $462 million in 2011, an 11 percent increase; achieved $505 million in 2012, a 9.3 percent increase; and posted $547 million in sales in 2013, an 8.3 percent increase. At its August annual convention, the company announced it was expanding its Emerging Markets Program to enable the purchase of its products by customers throughout the world, and thus help it springboard into new territories. The program is currently available in nine markets, including New Zealand, Spain, Panama, Singapore and Jamaica.

Shaklee
Shaklee had hovered around the $500 million level for a few years before posting $515 million in 2012, and then jumping $135 million in 2012, landing at $650 million.

Young Living
Lehi, Utah-based Young Living, which celebrated its 20th anniversary this year, has achieved steady growth since its founding. However, over the past few years the essential oils company has really taken off, achieving triple-digit growth that has continued into 2014. “Today we are at 165 percent growth, which as you can imagine, is like a comet taking off,” says Jared Turner, Chief Sales & Marketing Officer.”

Maintaining Focus

So how do companies in that $500 million to $1 billion range prepare to take their organizations to the next level? Maintaining focus, even during expansion, is critical.

For Cindy Monroe, CEO of Thirty-One Gifts, keeping her company on track requires three things: staying focused, staying on purpose and staying authentic. “Focus can be tough for entrepreneurs especially. Our creative desire to find bigger and better ideas creates a perfect environment for distraction if not kept in check,” she says. “We believe that by being purposeful and minimizing distractions, we can maintain focus on the things that make the most impact and keep us on track toward a bright future.”

To further the vision of Founder Dr. Myron Wentz, who dreamed of a world free from pain and suffering, USANA has established core values that are centered on producing the highest-quality, science-based nutritional and personal-care products in the world.

“Our vision and core values are part of our DNA, so staying true to them has not really been a challenge,” says President Kevin Guest. “That’s not to say, however, that there have not been challenges as we have grown. As we knock on the door of $1 billion, most of our challenges have related to becoming a $1 billion organization before we actually hit that level of sales. This means that we need to think, act and behave like a $1 billion organization before we can become one. Our customer base has also become much more diverse and international as we have grown, so we have had to navigate how to best serve the wants and needs of a more diverse audience. Focus is another area we have had to keep under control during growth. It’s easy to get distracted by every new opportunity you learn of, but you never achieve your goals if you let that happen.”

According to Turner, Young Living’s executive team has really bridged the gap between the vision of the founder, Gary Young, and what the field is doing. “They have really aligned the purpose of the company and the ‘why’ of the company with the ‘why’ of the field in terms of education, and that has really resonated with our people,” he says. “The ethos of our company is quality.”

ACN Co-Founders Greg Provenzano, Robert Stevanovski, Mike Cupisz and Tony Cupisz have kept their commitment to the company’s independent business owners by continuing to put the needs of the company above their own personal needs. Their growth plans have always been based on stability and longevity. Sound business practices plus integrity, they believe, equate to strength and size.

“While our core values have remained the same, we continue to reinvent ourselves as a company,” says Provenzano, whose company now serves 23 countries on four continents. “We are always reviewing our product line and our business support, asking ourselves how we can make our product offerings and the opportunity for our IBOs even better.”

Pentecost of It Works! acknowledges that keeping a growing team focused on the big picture and maintaining a company’s culture is a top challenge for any growing company. “Distractions are constant and never-ending,” he says. “‘We can do anything, but we can’t do everything’ is a message we live by here at corporate. We’ve learned at times that saying ‘no’ is not a consequence but a necessity.”

Investing in Infrastructure

While maintaining focus is critical to growth so, too, is ensuring that a solid infrastructure is in place to support any growth or expansion. Even companies with tremendous momentum can be stopped dead in their tracks when considering what further growth entails: Do we have enough inventory to keep up with demand? Is there enough warehouse space for our products? Do we have the support staff to meet increased orders? Are we providing our consultants and independent business owners with the tools they need to succeed during this substantial growth period?

The companies driving toward $1 billion are cognizant of these possible stumbling blocks and have taken steps to ensure the growing process comes with as little pain as possible.

At its 2014 International Convention in August, USANA launched an all-new digital marketing suite for its worldwide Associate base. “The all-new tool suite consists of a back-office Hub, personal websites, and advanced communication and marketing tools, all of which significantly enhance our Associates’ ability to manage, promote and build their USANA business in today’s demanding eBusiness environment,” Guest says. “These new tools were designed to simplify conducting a USANA business, enhance communications and provide an online atmosphere that is personal to the Associate and highly engaging for the customer.”

At Young Living, accelerated growth over the last two years has caused the company to address several issues with infrastructure, including information technology, operations, warehousing and shipping. “Our warehouse is meant for $200 million to $300 million worth of product sales a year, and now we are far surpassing that, so we have decided to triple the size of our warehouse,” Turner says. “We are at capacity with pick lines, manufacturing lines and packing stations, so we are adding a new mezzanine level to double the number of packing stations.”

Young Living is now running two shifts a day, seven days a week, to keep up with orders. In addition to investing in its IT teams, the company is working with outsource partners to accommodate the growth. Turner says Young Living’s more than 720,000 active members have been patient and kind throughout the process. “The infrastructure can strengthen, not constrain, commission payout, so it has been great for everyone. We turned a corner with all our infrastructure improvements, and we’ll be able to sustain the growth into the future.”

At Stream Energy, CEO and President Mark Schiro and his team have been making improvements to IT, customer service and marketing to handle its growth. “Our goal at Stream is to create a world-class organization,” Schiro says. “We’ve organized ourselves in such a way to support this growth, and we look forward to becoming a world-class company on both an internal and external level.”

Arbonne will launch a totally new web-based platform early next year that will position the company for more growth and facilitate international expansion. “Our biggest challenge is replicating the incredible culture and brand we have with Arbonne,” Napier says. “I know we will succeed, but it will take careful consideration and strong execution.”

Acquiring and Onboarding Talent

According to Malcolm Gladwell, author of The Tipping Point, a person can only realistically develop relationships with a maximum of 150 people. That’s why in the direct selling industry, says Scentsy’s Thompson, a company must have the executive team in place to maintain its influence with the downline. The goal is to scale effectively, always growing leaders to match the growth of the company.

Earlier this year USANA promoted three Asia-Pacific vice presidents to executive vice president status in a strategic effort to give more representation from its A-P markets in the company’s Executive (Chief Officer) Meetings. It also put into action leadership and strategic planning training as well as sessions for the executive staff to strengthen the team as a whole. “There have been skill-specific trainings added, such as negotiation strategy,” Guest says. “In addition, tied to the executives’ compensation is a mandate that they all must participate in leadership trainings and seminars year-round.”

It Works! increased its corporate staff by 60 percent in 2014. “When we say ‘One Team,’ it’s not a marketing campaign, it’s a mission,” Pentecost says.

Isagenix’s Coover realized the need to adjust her company’s corporate team by bringing on experienced executives to manage the exponential growth. “We really set ourselves up for success when we brought in some heavyweights. It got to the point where Jim and I said, ‘This is beyond us; we need help.’ So we brought in three people from ConAgra that have run multibillion-dollar companies. They have the strength and experience to run this, and they have great teams.”

At Arbonne, Napier brought in Joe Wojcik, an industry veteran who has experience in expanding businesses both in direct selling and outside the industry. Wojcik will serve as Senior Vice President of International, focusing on the company’s ongoing development of foreign markets. Improvements in technology infrastructure at Arbonne during the past few years also are starting to show, with earnings growth ahead of revenue growth, says Napier.

Finding the Right New Markets

There is a common belief that to grow one must expand into new markets. Yet it’s interesting to note that of the 13 companies driving toward $1 billion, seven companies—Stream Energy/Ignite, Shaklee, Market America, Thirty-One Gifts, AdvoCare, Team Beachbody and Arbonne—are currently in less than 10 markets.

Stream Energy, which does business in the U.S. market only, will be undergoing a significant expansion in early 2015 when it introduces a premium nationwide product offering, Stream Mobile Services. “We have partnered with two of the top four mobile carriers in the U.S. to build our very own Stream branded mobile service,” Schiro says. “Stream will be aggressively expanding into new markets as we roll out mobile services nationwide.”

USANA, which is in 19 markets, has a careful approach for international expansion. Typically, the company creates a solid foundation in one market over an 18-month period before venturing on to another. The expansion into France and Belgium in 2012 was actually initiated by the company’s Associates, who requested the new territories due to the tremendous success in Quebec, which is one of the company’s largest markets. Because the company’s nutritional supplements have a loyal customer base, USANA now has 265,000 active Associates in North America, Europe and the Asia-Pacific region.

“International expansion, product innovation and enhanced technology are all important aspects of USANA’s growth strategy,” Guest says. “The key aspect of our strategy, however, is generating customer growth. In 2013 we made several enhancements to our product pricing structure and our Associate compensation plan in an effort to promote customer engagement, success and loyalty with USANA. These enhancements have been successful and generated meaningful customer growth for USANA over the last 12 months.”

At ACN, any expansion discussions have always been met with caution and restraint. “We want to ensure that when we launch a country, not only is ACN ready and positioned with the right products and services, but also that the market is ready for ACN,” Provenzano notes. “We see no need in launching a new country unless we are 100 percent confident that the launch, and more importantly our business operations for the long-term, will be a success—and timing plays an incredible part in determining that success.”

That approach seems to be working. The last market ACN entered, Korea, has made the company a powerhouse in the Asia-Pacific arena. Next up for the company is Latin America, where Provenzano believes there are limitless opportunities.

At Isagenix, which is in 12 markets, Australia recently surpassed Canada as the company’s second-largest market, up 350 percent in new enrollments and sales. “It’s not going to stop,” Coover says. “The U.S. is still our biggest market and was up 50 percent over last year.”

Arbonne launched in Poland on Oct. 1, and the reception the company received has left Napier and the executive team with high hopes for future expansion plans. The company expects to open its first market in Asia within the next two years.

Young Living has expanded into several foreign markets over the past few years. The company recently held a grand opening in Malaysia, bringing the number of Asia-Pacific markets to five (the others are Australia, Singapore, Hong Kong and Japan). The company is also established in Canada, Mexico, Ecuador, Peru, the U.K., Sweden, Germany and Austria. Every market is reporting high double-digit or triple-digit growth for 2014.

Because It’s There

Over the next few years, several companies will face the challenges and opportunities brought on by the desire to grow their companies, and perhaps, one day, join the $1 Billion Club.

In that quest to reach the top, what remains the most important part of the journey is staying true to the core values of the company, maintaining that integrity that reflects on the reputations, businesses and families of customers and independent business owners.

Never looking down is easy enough to do. Looking up and seeing the possibilities to achieve the seemingly impossible and how it affects millions takes careful planning.

The post Who Will Summit Next?: Reaching $1 Billion first appeared on Direct Selling News.