Neil Offen President DSA President DSA DIRECT SELLING INDUSTRY “The People Business”
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Transcript of Neil Offen President DSA President DSA DIRECT SELLING INDUSTRY “The People Business”
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Neil OffenNeil Offen
PresidentDSA
PresidentDSA
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DIRECT SELLING INDUSTRYDIRECT SELLING INDUSTRY
“ The People Business”“ The People Business”
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DIRECT SELLING INDUSTRYDIRECT SELLING INDUSTRY• 48,000,000 Sales People Globally• 48,000,000 Sales People Globally
• 475,000 New Distributors Weekly• 475,000 New Distributors Weekly
• $90 Billion Global Retail Sales• $90 Billion Global Retail Sales
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DIRECT SELLING GROWTHDIRECT SELLING GROWTH
•New Markets•New Markets
Vietnam Kazakhastan
Brunei Morocco
Vietnam Kazakhastan
Brunei Morocco
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DIRECT SELLING GROWTHDIRECT SELLING GROWTH•New Direct Selling Associations•New Direct Selling Associations
Estonia RomaniaLatvia MontenegroLithuania Macedonia
Croatia
Estonia RomaniaLatvia MontenegroLithuania Macedonia
Croatia
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DIRECT SELLING GROWTHDIRECT SELLING GROWTH
• Improved Performance in Argentina and Japan• Improved Performance in Argentina and Japan
• Record Growth in the United States• Record Growth in the United States
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DIRECT SELLING NEWSDIRECT SELLING NEWS
• Vorwerk Purchases JAFRA Cosmetics• Vorwerk Purchases JAFRA Cosmetics
• Activated Holdings to Purchase Shaklee• Activated Holdings to Purchase Shaklee
• Swedish-based Oriflame Goes Public• Swedish-based Oriflame Goes Public
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DIRECT SELLING NEWSDIRECT SELLING NEWS• Golden Pride, Achievers Unlimited & ChangesInternational Merge To Form Goldshield Elite• Golden Pride, Achievers Unlimited & ChangesInternational Merge To Form Goldshield Elite
• Avon Net Sales Grow More than $600 MillionStock Price Cracks $80 on NYSE• Avon Net Sales Grow More than $600 MillionStock Price Cracks $80 on NYSE
• Stock Prices Climb at Mannatech, NuSkin,USANA, & Reliv Int.• Stock Prices Climb at Mannatech, NuSkin,USANA, & Reliv Int.
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DIRECT SELLING NEWSDIRECT SELLING NEWS•Notable Success Stories•Notable Success Stories
Southern Living AT HOMESouthern Living AT HOME
Creative MemoriesCreative Memories
Primerica Financial ServicesPrimerica Financial Services
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DIRECT SELLING NEWSDIRECT SELLING NEWS•Notable Success Stories•Notable Success Stories
Binney & Smith At HomeBinney & Smith At Home
The Kirby CompanyThe Kirby Company
The Pampered ChefThe Pampered Chef
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DIRECT SELLING NEWSDIRECT SELLING NEWS•New Subscriber Members•New Subscriber Members
Lillian VernonLillian Vernon
Milliken & Company (Sylvan Chemical)Milliken & Company (Sylvan Chemical)
Rona Barrett Lavender CompanyRona Barrett Lavender CompanyTruGreen ChemlawnTruGreen Chemlawn
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DIRECT SELLING NEWSDIRECT SELLING NEWS
P & G Schwann’sNestle Unilever
Penguin Books
P & G Schwann’sNestle Unilever
Penguin Books
•Exploring Direct Sales•Exploring Direct Sales
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DIRECT SELLING NEWSDIRECT SELLING NEWS•Start-Ups Rising•1200 Possible DSA Recruits•79 New DSA Members in 2003•59 New DSA Members in 2004
•Start-Ups Rising•1200 Possible DSA Recruits•79 New DSA Members in 2003•59 New DSA Members in 2004
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DIRECT SELLING NEWSDIRECT SELLING NEWS•162 Active Members•61 Pending Members•67 Subscriber Members
•162 Active Members•61 Pending Members•67 Subscriber Members
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DIRECT SELLING NEWSDIRECT SELLING NEWS• 290 Total Members• 290 Total Members• 200 Supplier Members • Grand Total 490 Members
• 200 Supplier Members • Grand Total 490 Members
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DIRECT SELLING TRENDSDIRECT SELLING TRENDS
International Expansion Stimulates Growth
International Expansion Stimulates Growth
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DIRECT SELLING TRENDSDIRECT SELLING TRENDS
Creation of Professional Societies for Career
Sales People
Creation of Professional Societies for Career
Sales People
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DIRECT SELLING TRENDSDIRECT SELLING TRENDS
Providing Pension Plans & Major Medical CoverageProviding Pension Plans
& Major Medical Coverage
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DIRECT SELLING TRENDSDIRECT SELLING TRENDS Changing the Status of First Level Recruits to “Preferred Customer”
Changing the Status of First Level Recruits to “Preferred Customer”
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DIRECT SELLING TRENDSDIRECT SELLING TRENDSFastest Growing Segments of the
Salesforce are Persons Over 65 Yearsof Age, African Americans, Hispanic
Americans and Asian Americans
Fastest Growing Segments of the Salesforce are Persons Over 65 Yearsof Age, African Americans, Hispanic
Americans and Asian Americans
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DIRECT SELLING TRENDSDIRECT SELLING TRENDS
Elimination of New AbusesElimination of New Abuses
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DIRECT SELLING FACTSDIRECT SELLING FACTS• Mean Income: $14,500
• Median Income: $2,500
• 2002 7.5% Worked 40 Hours
• Mean Income: $14,500
• Median Income: $2,500
• 2002 7.5% Worked 40 Hours
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DIRECT SELLING FACTSDIRECT SELLING FACTS• 25% of Full-Time Sales People Grossed $100,000
• 50% Work Less Than 10 Hours Per Week
• 25% of Full-Time Sales People Grossed $100,000
• 50% Work Less Than 10 Hours Per Week
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DIRECT SELLING FACTSDIRECT SELLING FACTS• 40% Work Less Than 5 Hours Per Week
• Career Ranks Are Growing
• 40% Work Less Than 5 Hours Per Week
• Career Ranks Are Growing
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DIRECT SELLING TRENDSDIRECT SELLING TRENDS
More Firms Outside the Industry Are Using Direct Sales as
a Distribution Channel
More Firms Outside the Industry Are Using Direct Sales as
a Distribution Channel
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DIRECT SELLING TRENDSDIRECT SELLING TRENDS
More Government RegulationMore Government Regulation
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DIRECT SELLING ISSUESDIRECT SELLING ISSUES
9 Countries Considering Bans onDirect Sales of Food Supplements
and Nutritional Products
9 Countries Considering Bans onDirect Sales of Food Supplements
and Nutritional Products
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DIRECT SELLING ISSUESDIRECT SELLING ISSUES
Crackdown on Distributor ProducedSales/Training Aids Sold
to Downlines
Crackdown on Distributor ProducedSales/Training Aids Sold
to Downlines
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DIRECT SELLING TRENDSDIRECT SELLING TRENDS
Impact of TerrorismImpact of Terrorism
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DIRECT SELLING TRENDSDIRECT SELLING TRENDS
Positive Impact of TechnologyPositive Impact of Technology
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DIRECT SELLING FACTSDIRECT SELLING FACTS
• Consumer Ordering Over Net Has Increased
• 7% of Sales are From Customer Direct to Company
• Consumer Ordering Over Net Has Increased
• 7% of Sales are From Customer Direct to Company
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DIRECT SELLING FACTSDIRECT SELLING FACTS
Cross-Border Sponsoring Continuing to Grow
Cross-Border Sponsoring Continuing to Grow
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DIRECT SELLING FACTSDIRECT SELLING FACTS
Image and Reputation Will BeEnhanced and Improved
Image and Reputation Will BeEnhanced and Improved
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