On DSN’s 20th anniversary, we asked industry leaders and legends to share how past evolutions and current opportunities are shaping the future of the industry.

In 2004, Stuart Johnson, now CEO of Direct Selling Partners, Direct Selling News (DSN) and NOW Tech, held a clear vision: to create a monthly publication that offered timely and useful information to direct selling executives. Today, that vision has expanded beyond a print publication to include podcasts, workshops, executive forums and informative in-person events featuring the biggest names in the industry. The format and appearance of the magazine has changed throughout the years, but the original foundation of Johnson’s vision remains unchanged.

As we celebrate 20 years of innovations and insights, we take a look back on a few of DSN’s most important milestones. But even before DSN’s debut in 2004, Founder and CEO Stuart Johnson had an illustrious career influencing the channel. He founded VideoDirect in 1987, which ultimately became VideoPlus and then SUCCESS Partners. He launched SUCCESS Partners University, an education conference for direct selling corporate executives in 2002.

DSN, now in its twentieth year of publication, continues to be the go-to resource for well-researched global industry news, expert insights and interviews with the founders and executive leaders behind the channel’s legacy companies and rising stars.

Deborah K. Heisz, now Neora Co-CEO, and John Fleming, a DSN Legend and former Avon executive, were two of the original staff members tasked with assembling the publication’s flagship print issues.

“At the time, there was no real periodical resource for legitimate news and information for people who were leading and operating direct selling companies,” Heisz said. “People were hungry for a trade journal they could rely on, and we received feedback from dozens—if not hundreds—of executives and owners across the industry letting us know we had truly filled a need.”

From a simple eight-page newsletter to the robust, global magazine it is today, DSN remains committed to supporting, informing, connecting and challenging direct selling executives across the US and around the world.

“I planned to stay for two to three years, but I remained Publisher and Editor in Chief for nine,” Fleming said. “We started by building something relevant and, in many ways, it has become far more relevant than we ever envisioned.”

Twenty Years of Industry-Changing Trends

The past two decades have been host to some of the most dramatic shifts in the channel, including the proliferation of the internet; the broad adoption of mobile devices; and pandemic-induced social distancing that forever changed the way shoppers buy products and interact with brands. With each paradigm shift, the direct selling industry learned to evolve and adapt.

We asked these executives: In the last 20 years, what changes have had the greatest impact on the industry?

“The vast majority of companies started in the industry by sharing products at home parties. Now, we’re sharing the opportunity virtually and across the globe without concern for physical barriers. Digital platforms forced all of us to adjust, while opening up a world of opportunity.”—Mark Pentecost / It Works! Founder and Chairman

“The operating landscape has permanently changed. Millennials want their own gig, but the average direct-to-consumer venture lacks the ability to scale up the way a direct selling company can with sales organizations.”—Rick Goings / DSN Legend, Chairman Emeritus and former CEO of Tupperware Brands

“Twenty years ago, signups and applications required a stack of paper. Today, it’s all done digitally. Technology has enabled much more efficient point-of-sale transactions and created the ability to connect and communicate with more people.”—John Addison / Addison Leadership Group; Board Member for Primerica, LegalShield; Senior Advisor to Utility Warehouse

“The digital revolution of the early 2000s felt, at the time, like a once-in-a-lifetime revolution, but it proved to be just the beginning of an avalanche of technology and business models that would profoundly change the world around us. Through all of these changes–the rise of social media, gig platforms and AI, and the challenges of the pandemic—we have demonstrated that, as a channel, we can adapt and evolve quickly.—John Parker / Amway Chief Sales Officer

“Technology has been the biggest gamechanger for us. I believe you have to have a robust strategy in both automation and face-to-face interactions for success in today’s marketplace. It is a delicate balance. Simplicity and speed can be the difference between success and failure.”—Kevin Guest / USANA Executive Chairman

The Next 20 Years

Lessons from the past 20 years have illustrated that change is not only inevitable; it is a critical part of healthy evolution. It was by welcoming social media, ecommerce and a digital-first footprint that the industry was prepared to not only survive but thrive during the pandemic. And as industry leaders look to the horizon, it will be that same bold approach and nimble, open mindset that will prepare the next generation of direct sellers for success.

We asked these executives: What actions should leaders be taking now to prepare for the future?

“We need to remember what got us here. We have always been an industry that focuses on building people, and then those people go on to build our business. We can ensure our future success by remembering that the most valuable asset any direct selling company has is our loyal, hardworking distributor field!—Rudy Revak / DSN Legend, Founder of Symmetry and Xyngular

“As technology continues to create opportunities and disruptions, I believe the future of direct selling will have to be centered around community and the social dynamic in our businesses. Great products, compelling income opportunities, competitive customer and representative experiences will continue to be basic requirements, but the community and social experiences we offer can be real differentiators.—John Parker / Amway Chief Sales Officer

“We empower women and others to work a meaningful business in pockets of their day. That’s the best part of direct selling. That’s how we win. We must continue to create and emphasize this opportunity—the side hustle is always in style.—Sarah Shadonix / Scout & Cellar Founder and CEO

“Leaders in the channel should plan for growth. Those who stay current by investing in the technologies of today and tomorrow—including new ways to purchase, improve speed to customer and product value—will thrive.—Joni Rogers-Kante / SeneGence Founder and CEO

“Direct selling will continue to thrive where the exchange of value is ongoing and supportive—like in following a nutrition or fitness plan—because of the importance of accountability to achieve success, but we need to acknowledge that affiliate marketing will replace network marketing where the relationship is purely transactional.—Carl Daikeler / BODi CEO

“Personalization and integration of AI in customer service are trends that we find exciting and that we are integrating into our strategy. Direct selling is also very unique; we never work solely online or offline. The future is hybrid, and we are relying on hybrid solutions in our strategy and development to be active pioneers in our industry.—Rolf Sorg / PM-International Founder and CEO

Creating a Lasting Impact

DSN has always strived to stay on the cutting edge of direct selling trends, news and thought leadership through its educational initiatives and events. We asked these executives: How has DSN’s coverage and perspective impacted your businesses over the past two decades?

“DSN has challenged the way I think about our business and the future of our channel. It helps me sift through the hype and understand the real innovations and opportunities that will shape our future. I am so grateful for the connections and insights that DSN has brought to me and our industry.”—John Parker / Amway Chief Sales Officer

“What DSN provides is something critical for the industry: a collegial way to share best practices with one another. One of the great things about the direct selling industry is people’s willingness to share both their successes and failures. DSN gives executives a way to learn and grow their businesses.—John Addison / Addison Leadership Group CEO; Board Member for Primerica, LegalShield; Senior Advisor to Utility Warehouse

“DSN is a powerful source of knowledge, allowing companies to learn from each other and grow. DSN has always offered great insights and innovative ideas. When there can be criticism of our industry, it’s important to have a platform like DSN to speak of the positive impact we’re having around the world.—Mark Pentecost / It Works! Founder and Chairman

“DSN is an important forum for keeping abreast to fast changing forces and how others are approaching and adapting to remain vital and resilient.—Rick Goings / DSN Legend, Chairman Emeritus and former CEO of Tupperware Brands

“The DSN articles and DSU events have been an amazing asset to the corporate leaders of this channel. They both create opportunities to gain valuable information, ideas and strategies, and they give guidance during changing and challenging times.—Rudy Revak / DSN Legend, Founder of Symmetry and Xyngular

“DSN continues to be an important voice and resource for steering the direction of this method of sales and marketing. It’s easy for institutions and regulators to lose sight of the individuals who legitimately use direct selling as their livelihood. DSN helps us all remember who is most important in this industry, and it’s not the company—it’s the distributors and customers.—Carl Daikeler / BODi CEO

“When DSN started, I remember thinking: ‘Finally! One place to get timely, reliable and insightful information on other direct sellers.’ Before DSN, people had to constantly scan multiple sources. It was very easy to miss company announcements and releases because so many direct sellers were private or just starting out.—David Holl / Mary Kay Chairman and former CEO

“DSN is my ‘go-to manual’ when I have questions; seek insight; look for surveys; or simply look for inspiration when I need it. I never throw away a publication, as I know I’ll need to refer to it one way or another. It helps me stay informed and current with what is going on in our channel.”—Joni Rogers-Kante / SeneGence Founder and CEO

“The community gains so much strength when we all work together, and DSN makes that happen. They are invaluable to the ongoing growth and professionalism of this industry, and I am so grateful for their work.”—Michele Gay / LimeLife by Alcone
Co-Founder & Chairwoman

“The coverage of the direct selling landscape in DSN is like no other, providing a clear and nuanced view into an industry that thrives on personal connections and innovative strategies. The articles are a testament to the precise research and commitment to detail that the team embodies, making Direct Selling News an invaluable resource for anyone involved in or interested in the dynamic world of direct sales. It’s journalism that not only informs but enriches and compliments the conversation around this unique sector of commerce.—Rolf Sorg / PM-International Founder & CEO

Building a Legacy Meant to Last

Reflecting on the past 20 years, the DSN team continues to build and plan for an even brighter future with more events, global coverage, expanding platforms and an unflinching grasp of Johnson’s original vision. The next 20 years will expand on that relevancy and commitment, providing more insights, developing broader resources and presenting more opportunities to support the executives working diligently to strengthen and scale the one-of-a-kind entrepreneurial possibilities found within the direct selling channel. 

From the January/February 2024 issue of Direct Selling News magazine.

The post Cheers to 20! first appeared on Direct Selling News.

USANA Chief Financial Officer Doug Hekking was honored by Utah Business Magazine CXO with the CXO of the Year Award. This award is given to C-suite executives who are “changing the way they do business for the better.” Hekking was chosen for this recognition because of “his steady financial oversight and insightful leadership on behalf of the publicly traded company.” 

Hekking joined USANA in 1992, when the company was founded. 

“I’ve spent three decades working with Doug and can’t think of anyone who deserves this award more,” said Kevin Guest, USANA Chairman and CEO. “Doug is a brilliant leader and financial strategist, and he brings an incomparable work ethic and commitment to integrity. He’s played an invaluable role in protecting the financial health of USANA and ensuring the long-term success of all our stakeholders as a publicly traded company.” 

The post USANA CFO Wins Chief Executive of the Year Award  first appeared on Direct Selling News.

“This is the third year we’ve compiled a sustainability report, and I am so pleased to see how much our company has improved in our key target areas year over year,” said Kevin Guest, USANA chairman and CEO. “We believe our commitment to sustainability not only sets us apart from our competitors, it also ultimately supports our vision of creating the healthiest family on earth.” 

The post USANA 2022 Sustainability Report Shows ESG Progress  first appeared on Direct Selling News.

The USANA 2022 sustainability report highlights the company’s recent Environmental, Social, and Governance (ESG) achievements, including: 

• Achieved 85% engagement in global employee surveys 
• 350+ employees completed USANA’s career mentorship program 
• 50% of the company’s energy use at its Salt Lake campus came from solar arrays and the purchase of renewable energy certificates
• 20% reduction in waste sent to landfills 
• Saved the equivalent of 435,266 supplement bottles worth of plastic annually after moving to smaller bottles for 10 products 
• Over 12.9 million meals provided through the USANA Foundation 
• 100% of employees received current Good Manufacturing Practices training 
• Created supplier code of conduct as part of our responsible sourcing efforts 
• Invested $11.6 million in research and development 

“This is the third year we’ve compiled a sustainability report, and I am so pleased to see how much our company has improved in our key target areas year over year,” says Kevin Guest, USANA chairman and CEO. “We believe our commitment to sustainability not only sets us apart from our competitors, it also ultimately supports our vision of creating the healthiest family on earth.”

The post USANA’s Commitment to People, Planet & Products  first appeared on Direct Selling News.

First quarter diluted EPS was $0.95, compared to $1.15 during the same period of 2022 and $0.66 during the fourth quarter of 2022. 

“USANA’s solid first quarter performance was driven by several initiatives that helped stabilize active customer counts and contribute to sequential quarter net sales growth,” said Kevin Guest, Chief Executive Officer and Chairman of the Board. “Our results during the first few weeks of the quarter benefitted from increased demand for several of our health products in China following the government’s shift in COVID policy. In addition, our announcement of product price increases in several markets stimulated product purchasing ahead of those increases.” 

Asia Pacific continued to be the strongest market for USANA, with net sales of $200 million and 386,000 customers. Within this region, Greater China posted $124 million in net sales, a 5% sequential increase, but a 7% decline from the same period last year. The Americas and Europe posted $49 million in net sales, a 9% sequential increase, with 105,000 active customers. 

“We continue to make progress on several key strategic initiatives for 2023, most of which are aimed at increasing the active customer base and positioning USANA for long-term sustainable growth,” Guest said. “Key among these initiatives is the return to live sales meetings and events where possible. The in-person meetings and events held during and following the first quarter were targeted at engaging and further incenting our sales force and the feedback from these events has been encouraging. We remain optimistic that our overall strategy for the year will support customer engagement and stimulate positive momentum in our business.” 

USANA is now revising the lower end of its net sales and earnings per share guidance for fiscal 2023 as a result of first quarter performance, with a consolidated net sales outlook of $875-$950 million and a diluted EPS of $2.40-$3.30. 

The company ended the quarter with $295 million in cash and cash equivalents and no debt. 

The post USANA Announces Q1 Net Sales of $248 Million  first appeared on Direct Selling News.

Asia Pacific continues to be a strong region for the company with $183 million in Q4 net sales and 384,000 active customers. The Americas and Europe represented $45 million in Q4 net sales with 106,000 active customers. 

Fiscal 2022 diluted EPS was $3.59, down from $5.73 in 2021. Overall, USANA generated $104 million of operating cash flow in 2022 and ended the year with $288 million in cash and cash equivalents with zero debt. 

“While 2022 presented a challenging operating environment for both USANA and our industry, we remained focused on executing our long-term growth strategy,” said Kevin Guest, Chief Executive Officer and Chairman of the Board. “In 2022, we made progress in several areas that position USANA for future growth. These areas include digital commerce initiatives to support our business, new market expansion, the launch of our affiliate program in select markets, and the completion of two acquisitions. These activities further our efforts to differentiate and diversify our business while contributing to shareholder returns.” 

The company reaffirmed its fiscal 2023 net sales and diluted EPS outlook of $850 million-$950 million and $2.35-$3.30 respectively.

The post USANA Reports 16% Dip in Net Sales in Fiscal 2022  first appeared on Direct Selling News.

Rise Bar manufactures high-quality protein bars with clean and simple ingredients while Oola is an emerging direct selling company that focuses on helping customers design a personal development framework that creates balance, growth and purpose. 

Rise Bar and Oola will remain independent, but USANA will offer its assets and resources to help the companies grow, while also leveraging the existing companies’ experiences and technologies to advance its core USANA business. 

“The acquisition of these emerging companies is part of USANA’s long-term growth strategy,” said Kevin Guest, USANA Chief Executive Officer and Chairman of the Board. “We are committed to improving the health and wellness of individuals around the world. While USANA is a leader in many aspects, we recognize that we can accelerate this effort and reach more individuals through strategic acquisitions that align with our corporate values and mission. Both Rise Bar and Oola are innovators in the health and wellness industry. We believe we can utilize this innovation to expand our reach, product development, customer experience, and operational results. Going forward, we will continue to pursue accretive business development opportunities to advance our long-term growth strategy.” 

The post USANA Acquires Oola and Rise Bar  first appeared on Direct Selling News.

Asia Pacific led the company’s regional net sales with $183 million and 362,000 active customers, down 17% and 18% respectively from the same period in 2021. 

USANA ended the third quarter with $247 million in cash and cash equivalents and no debt. 

“The challenging operating environment in Asia Pacific and the strengthening U.S. dollar negatively affected our operating results in the third quarter,” said Kevin Guest, USANA Chief Executive Officer and Chairman of the Board. “COVID-related disruptions and challenging economic conditions resulting from those disruptions negatively impacted our results in several key Asia Pacific markets where city-wide lockdowns and other COVID restrictions persisted. This difficult operating environment has impacted our entire industry. While we remain committed to our long-term business strategy, our team is evaluating and executing several short-term initiatives to regain momentum in our business. These initiatives include new and modified incentives in various markets and regions to make our overall incentive offering more rewarding and attractive to our sales force. They also include more targeted, relevant in-person communications amongst our management team and associate leaders, as well as accelerating our return to live sales force meetings and events in markets where that is possible. In that regard, in August we held a successful 30th Anniversary Global Convention in Salt Lake City. The four-day event attracted 4,000 in-person and more than 50,000 virtual attendees. In-person gatherings of this nature, as well as smaller more targeted gatherings, have been, and will continue to be, invaluable in generating momentum for our business. Finally, we continued to make progress on our digital strategy during the quarter by improving our consumer online shopping experience and will continue to execute our digital strategy going forward.” 

The company has revised its fiscal 2022 full-year outlook to include consolidated net sales of $955 million-$975 million and a diluted EPS of $3.15-$3.40. 

The post USANA Reports $233 Million in Q3 Net Sales  first appeared on Direct Selling News.

Founded | 1992

Headquarters | Salt Lake City, UT

Top Executives:
Kevin Guest, Chairman and CEO
Jim Brown, President

Product Category | Health and Wellness

For more than 30 years, CEO Kevin Guest has had a front row seat for USANA’s steady growth and commitment to innovation. As he and the company celebrate three decades in business, the team is more excited about what lies ahead for USANA, the possibilities on the horizon and a growing global presence.

Discipline and Direction

Exceedingly few companies have the privilege of celebrating 30 years in business, as average company lifespans have been consistently shrinking. With sexy startups and technology darlings dominating the headlines, it’s easy to forget that consistency is often the most important factor in the success or failure of a business. And it’s anything but boring.

“I think one of the hallmarks to our success for the past 30 years is discipline,” Kevin Guest, Chairman and CEO shared. “What I’m most excited about is that the base that we have to jump off from for the next 30 years is extremely solid. We have a great balance sheet. We have no debt. We have all the things in place along with a great product offering.”

The company’s consistency also shines in their commitment to the same core values for three decades.

“In our 30-year history, our core values have never changed,” said President Jim Brown. “Excellence, community, health and integrity have always been the guiding principles for our company. We have also seen our USANA family grow significantly around the world the past 30 years, but the family feel has always stayed the same.”

USANA currently operates in 24 international markets with over 900 corporate employees in the United States and 1,952 employees abroad. The company serves over 560,000 active customers, comprised of USANA Associates and Preferred Customers.

Transparency and Trust

As USANA rounds the corner on three decades in the industry, the company is focused on three key areas: product innovation, strategic relationships and international expansion.

While the company has launched well over a hundred products and product updates in their three decades in business, USANA’s dedication to impeccably high standards has never wavered. Dr. Myron Wentz, microbiologist and USANA’s founder, chose to set standards he hoped the rest of the direct sales industry would follow when he laid the groundwork for the science company.

“Because of Dr. Wentz’s background, he was used to creating products that were in the pharmaceutical realm and had to be accepted by hospitals and doctors,” Kevin explained. “Thirty years ago, he set out to make sure that our vitamins were produced under the same standards, which back then was unheard of. Even today, it’s not widely done. We’re an FDA-registered facility, which we’re not required to be creating nutritional supplements. That has filtered its way through all three decades. We’ve really, really tried to hold our reputation up like that as we go through the years.”

Though no new products are scheduled to launch in the immediate future, USANA’s Research and Development team is hard at work developing new ways to maintain health through enhancements to the existing product lines and new innovations outside of traditional oral supplements.

“My hope is that we’ll find new ways to deliver nutrition outside of a pill,” Kevin shared. “That’s something we’re talking a lot about, something that we would love to work on. We’re seeing other innovations happen. We have yet to see a different delivery system that can offer the same amount of dosage that we want to deliver as it relates to nutritional supplements. That’s just the hope of mine that we’ll see coming in the future. The other thing that really has our attention are wearables to help monitor our fitness outside of what we’re consuming, so we can keep track and use technology to help us be healthier by being more aware.”

Innovations outside the company’s product offerings are also in development, including new opportunities for USANA’s Associates in the field.

“The next few months to close out 2022 will feature some big changes but will also be a time of development and getting things ready for 2023,” Jim shared.

“First off, we are launching a new business opportunity later this year that will be huge for the company and will give Associates and customers alike a new way of selling.”

As USANA pursues new and innovative ways of maintaining healthy lives and healthy businesses, the team is actively pursuing relationships that will help the company achieve its long-term goals.

“We’re going to continue to pursue strategic relationships,” Kevin explained. “Whether that’s through business acquisition or through relationships where we can be part owners in companies that could help us increase our core competencies; help us enter a different marketplace; or help us bring some innovation. Those are probably the key areas that we’re looking for in a strategic relationship. But we’re aggressively moving forward in those areas as well as the company.”

Expectations and Expansion

While so much has remained constant throughout USANA’s history, one important shift for the company has been to make the consumer the starting point for decisions regarding Associate incentives and promotions. As in every direct sales company, the success of USANA’s field team is paramount to the success of the company. But by focusing on the consumer, understanding their expectations and the value the product represents to them, USANA is more powerfully equipping their Associates.

“Thinking about the consumer first and working backwards is a completely different approach than we’ve done in 30 years in our business,” Kevin said. “It all comes down to, what is your value proposition to the person that’s consuming your product? You have to meet their expectations, or you lose them and they’re no longer your customer. If we could start there, I think it increases the value proposition, and we’re more likely to fulfill our product promise and beat their expectation from a value proposition so that they will continue to reorder from us.”

As USANA works backwards from consumer motivations to Associate business support, incentives and promotions, the team has noticed how differently those expectations are amongst the 24 global markets they serve. And they’re planning to notice even more differences as USANA enters new markets in the coming years. Following their tried-and-true, disciplined approach to expansion, Kevin and the team are confident in their next steps abroad.

“You’ll see many companies that are 30 years old that are in four times the countries that we’re in,” he explained. “We’ve decided that we’re going to move to new countries as we become profitable in the countries we’re in without spreading our resources too thin. Then we can give our all to the areas we’ve committed to. Something you’ll see in the future is that we’re going to continue to expand internationally and grow internationally. We haven’t opened a new market in quite some time, but we believe as a company we’re ready to move in that direction. International expansion will be something we can look forward to in the future.”

With as much to look forward to as they have to celebrate, USANA is ready to pursue the next three decades with the same discipline, integrity and innovation that has served them well all these years.

From the October 2022 issue of Direct Selling News magazine.

The post USANA: Cheers to 30 years! first appeared on Direct Selling News.

This motivational movement includes inspiring videos from USANA-sponsored athletes and influencers, as well as a special-edition Start Something! HealthPak that lets USANA customers display their goals on social media using #StartSomething. 

“The past couple of years have been extremely hard for the whole world, and it feels like everyone has been stuck in park,” said Kevin Guest, USANA Chairman and CEO. “USANA is a company dedicated to health and wellness. And to begin or reignite our health journeys, we need to be present in today, put our lives in drive, and start. We want everyone to embrace the power they have to own their life and shape their future story. We truly can’t wait to see what people accomplish when they #StartSomething.” 

As part of its own call to action, USANA reached its humanitarian goal of funding 30,000 Garden Towers, a self-sustaining method for planting multiple food crops that utilize large mesh bags filled with soil. These Garden Towers make farming accessible to families living in impoverished regions and require little to no access to land. Each Garden Tower needs less than 13 gallons of water per week, but can hold up to 120 plants. 

“I am so proud of USANA for embracing our goal to fund 30,000 Garden Towers by our 30^th Anniversary Global Convention last week,” Guest said. “USANA is making a difference through its Garden Towers project. A donation of $20 covers the cost of the fabric, soil, seeds, and training on how to care for them. I am so grateful to everyone who helped give 30,000 Garden Towers to those in need.” 

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