Neil Offen President DSA President DSA DIRECT SELLING INDUSTRY “The People Business”

Neil OffenNeil Offen

PresidentDSA

PresidentDSA

DIRECT SELLING INDUSTRYDIRECT SELLING INDUSTRY

“ The People Business”“ The People Business”

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

DIRECT SELLING GROWTHDIRECT SELLING GROWTH

•New Markets•New Markets

Vietnam Kazakhastan

Brunei Morocco

Vietnam Kazakhastan

Brunei Morocco

DIRECT SELLING GROWTHDIRECT SELLING GROWTH•New Direct Selling Associations•New Direct Selling Associations

Estonia RomaniaLatvia MontenegroLithuania Macedonia

Croatia

Estonia RomaniaLatvia MontenegroLithuania Macedonia

Croatia

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

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

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.

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

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

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

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

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

DIRECT SELLING NEWSDIRECT SELLING NEWS•162 Active Members•61 Pending Members•67 Subscriber Members

•162 Active Members•61 Pending Members•67 Subscriber Members

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

DIRECT SELLING TRENDSDIRECT SELLING TRENDS

International Expansion Stimulates Growth

International Expansion Stimulates Growth


Creation of Professional Societies for Career

Sales People

Creation of Professional Societies for Career

Sales People


Providing Pension Plans & Major Medical CoverageProviding Pension Plans

& Major Medical Coverage

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”

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


Elimination of New AbusesElimination of New Abuses

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

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


DIRECT SELLING FACTSDIRECT SELLING FACTS• 40% Work Less Than 5 Hours Per Week

• Career Ranks Are Growing


• Career Ranks Are Growing


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


More Government RegulationMore Government Regulation

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

DIRECT SELLING ISSUESDIRECT SELLING ISSUES

Crackdown on Distributor ProducedSales/Training Aids Sold

to Downlines

Crackdown on Distributor ProducedSales/Training Aids Sold

to Downlines


Impact of TerrorismImpact of Terrorism


Positive Impact of TechnologyPositive Impact of Technology

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


Cross-Border Sponsoring Continuing to Grow

Cross-Border Sponsoring Continuing to Grow


Image and Reputation Will BeEnhanced and Improved

Image and Reputation Will BeEnhanced and Improved

Documents

Neil Offen President DSA President DSA DIRECT SELLING INDUSTRY “The People Business”