This week’s featured article is a brief compilation of industry news of significance from 2019. As you scroll down, I am sure you will agree with me that it was most certainly another exciting year for the industry with all the positives and the negatives.

I have also included articles from The World of Direct Selling that attracted much interest last year.

> Herbalife CEO Richard Goudis Resigns Over Comments He Made Before Taking the Job
> New Avon Names Laurie Ann Goldman CEO
> Stella & Dot to Exit European Market
> China Launches Campaign to Regulate Health Product Market
> Nerium Gets New Name
> Jeunesse Posts Record Year with $1.46B in Annual Sales
> Mary Kay Celebrates 50 Years of an American Icon – the Mary Kay Pink Cadillac
> LuLaRoe Founders Accused of Hiding Millions to Avoid Creditors

Most-Read Article in January on The World of Direct Selling:
What Direct Sellers Can Learn from the Corporate Training Industry (Vince Han)

> Amway Reports Sales of $8.8 Billion USD in 2018
> USANA Posts Another Sales Increase as China’s Direct Selling Clampdown Looms
> Avon Sees Revenues Decrease in Q4, Full Year 2018
> Herbalife Neared $5 billion Mark in 2018; Waits for Other Shoe to Drop in Goudis/China Probe
> Medifast Announces 87% Revenue Increase in Q4 and 66% for the Full Year
> Nu Skin Expands to Peru
> Skin Care Billionaires Rodan and Fields Return to the Teen Acne Market

Most-Read Article in February on The World of Direct Selling:
The 7 Giants’ 2018 Growth Review (Hakki Ozmorali)

> Fact or Fiction? Let’s Set the Record Straight – US DSA President
> Brazil’s Natura and Avon Confirm Deal Talks
> Nature’s Sunshine Reports $365 Million Sales for 2018, Up 7%
> Tupperware Parties: Suburban Women’s Plastic Path to Empowerment
> Two Mary Kay Executives Make Black Enterprise’s 2019 Most Powerful Women List
> Why Direct Sales Appeals to So Many Moms

Most-Read Article in March on The World of Direct Selling:
Common Pitfalls that Prevent Profitability in Direct Selling Start Ups (Dan Murphy)

> DSN Announces the 2019 Global 100
> Young Living Celebrates 25 Years of Global Growth
> Amway Disrupts Its Own Beauty Business, Launching 50 New Mobile Apps
> More Than 100 LuLaRoe Sellers Have Filed for Bankruptcy
> How Blake Mallen Capitalized on the Gig Economy Before It Was a Thing
> Brazilian Cosmetics Giant in ‘Advanced Talks’ with Avon
> Mary Kay Recognized by Forbes as One of America’s Best Midsize Employers 2019

Most-Read Article in April on The World of Direct Selling:
Marketing’s New Role to Keep A Direct Selling Company Relevant (Jonas Hedberg)

> Oriflame’s Co-Founder Jonas af Jochnick Has Suddenly Passed Away
> Nu Skin Named the World’s #1 At-Home Beauty Device System Brand by Euromonitor
> Tupperware Names CEO Tricia Stitzel Chairman of the Board
> AdvoCare Business Changing
> Founding Family Offers to Buy Out Oriflame
> It’s Official: Natura Buys Avon

Most-Read Article in May on The World of Direct Selling:
AdvoCare Abandons MLM: Uncertainty Returns to Direct Selling (Jeff Babener)

> WFDSA Announces Record-setting 2018 Direct Selling Business Results
> LG to Acquire New Avon North America
> US DSA Announces 2019 Awards Winners and Highest Performing Companies
> Natura’s Avon Acquisition Creates the First Latin American Beauty Powerhouse
> Retail Was Never in Our Plan and It Won’t Happen in Future Also: Frederic Widell, Oriflame VP
> Kirsten Dunst Is Making a Show About a Cult-Like MLM Company
> Amway, the Family Business that Became Global (Google-Translated Text)

Most-Read Article in June on The World of Direct Selling:
2019: The Year Direct Selling As We Know It Changed Forever (Brett Duncan)

> Happi Magazine Announces Top 50 Household and Personal Products Companies
> Canada DSA’s Recipients of the 2019 DSA Awards
> Amway Sues Sellers for Trademark Infringement, Faulty Product Distribution
> As India Hicks Closes Her Luxury Label, Is This the End of Tupperware-Party Shopping?
> USANA: China’s 100-Day Crackdown Has Damaged Consumer Confidence; Sales Drop by 15%
> Mary Kay Champions Business Excellence, Ethics and Social Responsibility, Reaps Rewards in Europe
> Nature’s Sunshine Announces New Global Leadership Structure and Appointments
> Pampered Chef Succeeds in Trademark Infringement Battle

Most-Read Article in July on The World of Direct Selling:
Five Ways the Direct Selling Industry Can Achieve Sustained Growth (Ben Gamse)

> New Amway CEO Shares Digital Vision
> doTERRA CIO Todd Thompson: Social Selling Is Taking off
> Executive Changes at Scentsy
> LG Closes $125M Acquisition of New Avon
> Coty and Younique to Part and Focus on the Development of Their Respective Strengths
> US Direct Selling Association CBD Memo: Ingestible CBD-Infused Products Violate DSA Code of Ethics
> “Tupperware-Style” Retail Makes a Comeback with 27% Growth in UK

Most-Read Article in August on The World of Direct Selling:
Why Are They Leaving Our Company? (Hakki Ozmorali)

> DSA Canada Responds to Globe & Mail Article
> Natura Lands in Asia and Starts Operations in Malaysia
> Tracy Britt Cool to Leave Pampered Chef to Start New Venture
> Rodan + Fields to Launch in Japan
> WorldVentures Expands to Brazil
> Nature’s Sunshine Announces Entry into CBD Market
> MONAT Expands into Europe with Its Launch in Ireland and Poland
> Amazon Challenges Amway, Modicare and Oriflame Ruling in Supreme Court

Most-Read Article in September on The World of Direct Selling:
Natura and Avon: Will This Acquisition Work for Both Sides? (Hakki Ozmorali)

> AdvoCare Will Pay $150 Million To Settle FTC Charges
> FTC v. AdvoCare: Enforcement Action Demonstrates Importance of Compliance Programs
> Uber Is Launching a New App That Matches Freelance Workers with Businesses
> Herbalife Announces CEO Succession Plan
> How Mary Kay China Is Trying to Stay Relevant with Younger Beauty consumers
> Beautycounter Appoints COO and CCO
> Origami Owl CEO Chrissy Weems Explores the Roots of a Successful Business
> USANA Announces Appointment Promotion of Walter Noot to Chief Operating Officer
> Oriflame to Focus on Wellness, Position as Healthy Lifestyle Brand: CEO Magnus Brannstrom

Most-Read Article in October on The World of Direct Selling:
FTC vs. AdvoCare: A Teachable Moment for Direct Selling (Jeff Babener)

> Neora Files Suit Challenging FTC’s Attempt to Change Direct Selling Laws
> Herbalife, Younique, LuLaRoe And Other MLMs Suddenly Under Fire
> LuLaRoe: From Startup to Over $1 Billion in Less Than 4 Years. Lessons and Growing Pains
> Tupperware Appoints Chris O’Leary Interim CEO
> U.S. Charges Two Former Herbalife Executives in China over Bribery Scheme
> UK DSA Announces 2019 Star Award Winners
> Jeunesse Enters Global Essential Oils Market

Most-Read Article in November on The World of Direct Selling:
AdvoCare, Neora, an Ever More Aggressive FTC! What Now? (Alan Luce)

> Kyani Founders Identified as Victims in Plane Crash
> Former New Avon CEO: Company Reneged on $1M Severance
> USANA Announces Retirement of Founder and Chairman, Myron W. Wentz
> Why Market America Is a Legitimate and Thriving Business
> US DSA  2019 Sales and Marketing Conference Reveals New Data on Direct Selling and Independent Work
> The 10 Beauty Brands That Defined the 2010s

Most-Read Article in December on The World of Direct Selling:
5 Keys to Communications Confidence in 2020 (Crayton Webb)

…..

Hakki Ozmorali is the Principal of WDS Consultancy, a management consulting firm in Canada specialized in providing services to direct selling firms. WDS Consultancy is a Supplier Member of the Canada DSA. It is also the publisher of The World of Direct Selling, global industry’s leading weekly online publication since 2010. Hakki is an experienced professional with a strong background in direct sales. His work experiences in direct selling include Country and Regional Manager roles at various multinationals. You can contact Hakki here.

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The post A Year in Review: 2019 in the News appeared first on The World of Direct Selling.

Could you tell us about your education?

Recently my education comes from the on-going learning from my drive-time university. I am a podcast junkie and love to learn by listening. Formally, I graduated with a Bachelors of Art degree from Brigham Young University and with a Masters of Business Administration from the Harvard Business School.

What was your childhood dream?

I grew up convinced I would play basketball in the NBA, but my father’s genes didn’t manifest quickly enough and at 4’10” in 8^th grade, I started dreaming about being a pilot instead. That dream hasn’t been realized yet, but at times I feel like I spend enough time on Delta Airlines that they should make me an honorary pilot.

What were your past experiences before your current role at Origami Owl?

At one point, my life seemed more like a maze, but even the experiences that once seemed like detours have combined to prepare me for my current role at the Origami Owl Family of Brands.

Among those previous experiences: I had the opportunity to be tutored by Melaleuca Founder and CEO Frank VanderSloot, to learn consumer packaged goods at PepsiCo’s Frito-Lay division, to spend time in two early internet start-ups, to be introduced to international direct selling at USANA Health Sciences, to lead a few small start-ups and open my own fast casual restaurants as part of the emerging Costa Vida franchise, to learn from the world’s best direct marketer Carl Diakeler at Beachbody and to be introduced to party-plan direct selling at Jewel Kade.

What do you attribute your career success to most?

Any success I have had in my career is a result of the importance of strong work ethic taught to me by my grandparents and my parents. My mom made sure I had a paper route before I was ten and shortly after I turned ten my grandfather introduced me to a produce grocer who, on his recommendation, hired me to pack groceries and stock shelves. My dad found plenty of yard work for me and made it easy for me to opt to be a custodian through high-school.

Professionally, I’ve had a charmed career and had the good fortune to be mentored from some outstanding bosses and colleagues. I previously mentioned Frank VanderSloot and Carl Diakeler, but I’ve also had the chance to be mentored by Chris Neugent the President and CEO of Post Consumer Brands, and Kevin Guest the CEO of USANA, and so many other super smart leaders.

If I’m good at anything, it is listening and repackaging other’s suggestions and ideas in a way that makes sense for a specific set of circumstances. That’s why today I surround myself with professionals who are smart, patient and willing to challenge me.

What has been your most inspiring moment?

When you read my career experiences they seem linear and it reads (as it should) as though everything was simple and steady. The truth is that life is full of challenges and some dark moments. My wife Erin has been through all of those with me and my most inspiring moment is actually a series of small moments when she inspired me to keep moving forward.

Your hobbies?

I love to work in my yard. Nothing makes me happier than iTunes and my John Deere tractor, which is pretty much a lawn mower, or my ear plugs and my chainsaw.

How would you describe being a direct selling executive to an outsider?

My work is part counselor, part cheerleader and then I’m an executive with any time remaining in my day. I love the fact that our organization is among the flattest on earth – I can be in a board meeting and texting with a new customer within minutes of each other.

What is your biggest achievement at Origami Owl?

To date, it was helping the founders regain control of the company after a period of cultural uncertainty during which they were partially owned by a private equity firm. I expect the next great milestone will occur later this year when we celebrate the successful launch of Willing Beauty, a better-for-you beauty brand with heart.

And your biggest challenge at a direct selling company executive role?

The biggest challenge was adapting Beachbody’s amazing television direct response model to make it fit a successful social selling model.

What would be your best advice to those who are thinking of joining a direct sales company at a corporate position?

Trust the field. The seeds of success are in the hands of your field, your job is to figure out how to create the right environment for those seeds to flourish.
 

The post Executive Q&A: Brett Blake, CEO of Origami Owl appeared first on The World of Direct Selling.

This is a compilation of pieces from last year that I personally have found more memorable or inspiring than the others. I have also added to this, a few articles from The World of Direct Selling website that attracted much interest.

January

* How and Why Amway’s DeVos Family Gives Away Billions
* Morinda Celebrates 20^th Year in Business and Second Era of Growth
* Layoffs, Lawsuits at Once-Hot Direct-Sales Firm ViSalus
* Ava Anderson Non-Toxic to Reopen as New Company Without Founder or Her Family
* Melaleuca Marks Three Decades in Business

February

* Amway’s 2015 Revenues Fall to Lowest Level in 5 Years
* Direct Selling Dominates the Aromatherapy and Essential Oils Market
* Stream Announces New President and CEO
* Avon Reports 20% Sales Decline in 2015 Q4
* 70 Years of Tupperware
* Mannatech Enters South America with Launch of Colombia Operations
* Nu Skin Settles Class Action Suit, Pays $47 Million
* Herbalife in Talks with FTC to Resolve Probe

March

* Avon and Cerberus Capital Announce Close of Strategic Partnership Transaction
* Young Living Appoints New Chief Operating Officer
* Isagenix Launches New World Headquarters
* Medifast Management Changes Run Deeper Than CEO Sheetz
* Oriflame Says Could Expand to U.S and Brazil
* Travis Ogden Appointed Isagenix President & COO
* Amway Maps Growth Strategy in India
* Ackman Doesn’t See ‘Slap on the Wrist’ for Herbalife
* Social Selling Moves Online

April

* Mannatech Reveals New Company Brand
* Herbalife Attacks New Documentary, Saying It Takes Ackman’s Side
* Mary Kay Empowered Women Using a Bit of a Pyramid Scheme
* Avon’s North America Unit Has a New Boss
* If You Think She Looks Like An Avon Lady, You’re Half Right
* Natura Opens First Own Shop in Sao Paulo

May

* Pyramid Schemes in 10 Questions
* Avon Loss Widens on Dollar and Restructuring Costs
* Stella & Dot CEO on Creating “Flexible” Business for Women
* Successes of South Africa DSA and the University of Johannesburg
* Vorwerk Group Reports 23.9% Sales Increase in 2015
* Amway’s Chief Sales Officer John Parker Talks About the ‘Gig Economy’
* Herbalife Buys Its Headquarters for Close to $30 Million
* How Tonia Janshan Built Steeped Tea Into a Huge Retail Empire
* Silpada Exec: Insurmountable Revenue Declines Doomed Company
* Interview with Sue Liddie, CIO of Avon
* ‘Damsel in Defense’ Gives Women Tools to Protect Themselves

June

* Rodan + Fields: How Two Dermatologists Built a Billion Dollar Brand in Their Spare Time
* Direct Selling’s Economic Footprint Continues to Expand in United States
* Clear Definition on Pyramid Schemes Will Prevent Fraud, Protect Consumers
* Nu Skin Receives $210 Million Investment From China
* The Evolution of Direct Sales
* Avon Will Go Ahead With Move to the U.K. Despite Brexit Vote
* Unemployment India’s Biggest Concern, Direct Selling at Rescue
* HAPPY Parties Are the New Tupperware Parties, but for Cannabis
* Consumer Groups, Direct Selling Industry Debate ‘Anti-Pyramid’ Legislation
* The Brutal Truth About Those Pyramid Schemes

July

* Brownie Wise: The Life of the (Tupperware) Party
* Global Direct Selling Industry in 2015
* Longaberger Empties Famous Basket Building
* Medifast Named to Forbes 100 Most Trustworthy Companies in America List
* Herbalife Settles Pyramid Scheme Case with Regulator; in Blow to Pershing’s Ackman
* Mary Kay Breaks Ground Soon on New R&D Site
* Customer Acquisition With Stella & Dot CEO Jessica Herrin
* Beauty Takes a Beating at Tupperware
* Direct Selling Gigs: How Much Can You Make Being Your Own Boss?
* FTC v. Herbalife Settlement: First Take

August

* How Selling Cutco Knives as a Teen Inspired This Entrepreneur’s Direct Selling Empire
* Giants’ Growth Performances at Mid-Year
* Cloud-Centric Management Lifts Rodan + Fields Towards $1B Revenue
* FTC v. Herbalife: Post-Settlement Legal Guidance for the Direct Selling Industry
* Amway China: Rebirth of a Sales Firm
* Troubles Mount for Longaberger, Its Parent Company
* The Avon Lady Goes Digital: The Original Network Gets a 21st Century Facelift

September

* One of the Fastest-Growing Clothing Companies Making Some Millennial Moms Rich
* Martin Kohler Named New President of PartyLite Worldwide
* Follow the Profit: How Mormon Culture Made Utah a Hotbed for Multi-Level Marketers
* Think the Direct Sales Model Is Dead? Think Again
* LR Health & Beauty CEO Dr. Thomas Stoffmehl Seldia’s New Chairman
* Inside Wall Street’s Greatest Feud: Icahn vs. Ackman
* Nerium Names Deborah K. Heisz President and COO
* Nu Skin Settles SEC Probe into Charitable Contribution in China
* Understanding Pyramid Schemes, Ponzi Schemes, and Network Marketing
* Tupperware Appoints Tricia Steitzel President and COO
* Amway President: ‘Why Co-Leadership Actually Works’
* How ‘America’s Next Top Model’ Made Tyra Banks a Better Businesswoman
* Origami Owl Acquires New York-Based Beauty Company willa

October

* Medifast Announces Appointment of Direct Selling Industry Veteran as CEO
* Oriflame: Back on Track Again?
* Jamberry Nails Names Elizabeth Thibaudeau Chief Executive Officer
* Avon Begins Expansion into Heath & Wellness with New Hire
* 30,000 Attend to doTERRA’s Convention: The Highest in Utah’s History
* Real Beauty, Mary Kay Style: Mary Kay’s New Ad Campaign
* Silpada Designs Acquired by Berkshire Hathaway Entity
* Natura Cosmeticos Picks New CEO to Replace Lima
* Belcorp Among Fortune’s 25 Best Global Companies to Work For
* Stream Announces Chairman Transition
* The Wave is Upon Us: Big Changes for Direct Selling

November

* Getting to Know About Natura
* Why Herbalife CEO’s Departure Is a Body Blow to the Company
* Arbonne Expands into Asia with Opening of Taiwan
* Mannatech Prepares for China Entry with New E-Commerce Strategy
* Trump Picks Betsy DeVos, Daughter-in-Law of Amway Co-Founder, for Education Secretary
* USANA Announces CEO Transition Plan and Appoints Kevin Guest CEO
* It’s Time for Network Marketing to Ditch the Mercedes-Benz
* The Rise of the Entrepreneur

December

* Oriflame to Bet Big on Skincare, Wellness in New Strategic Push
* Could ‘Facebook Live’ Change the Game?
* Nu Skin Announces Senior Management Transition Plan: Truman Hunt Leaves After 14 Years
* Avon Headquarters Leaves the US
* Vemma Settles Ongoing Litigation with FTC over Pyramid Charges
* Fact-Checking the FTC’s New Legal Guidance
* Carl Icahn To Be Trump’s Advisor on Regulatory Overhaul
* ViSalus Announces CEO Transition
* First of Many: Natura Opens First US Store in New York
* How Rick Goings Went from Dirt Poor to the CEO of a $2 Billion Company

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The post A Look Back at 2016 in the News appeared first on The World of Direct Selling.

This is a compilation of news pieces from last year that I personally have found more memorable than the others. I have also included few articles from The World of Direct Selling blog that had attracted much interest.

January

Avon Leaves Seldia, Joins Direct Selling Europe

Ackman Renews Attacks on Herbalife, Says It Will Be Gone Within A Year

Some Do It the Right Way in Turkey

Ben Woodward Appointed as President at Nikken

Mary Kay Reports Double-Digit Growth in 2014

February

Amway’s Sales Fell 8% in 2014

CVSL to Acquire UK-Based Kleeneze

2014 by the Numbers

Rodan + Fields Up for Sale?

Facing Wall Street Challenges, Herbalife Takes Battle to Sacramento

March

Winning the People Wars: How the Smartest Direct Selling Companies Are Doing

FBI Probes Ackman Fund for Herbalife Manipulation

Natura Among World’s Most Ethical Companies 2015

Ding Dong! Avon Kicked Out of S&P 500 After 50 Years

Mary Kay Sues Online Coupon Site for Trademark Infringement

Jeunesse Global Completes Acquisition of MonaVie

Mompreneur Spotlight: Founder of Stella & Dot, Jessica Herrin

April

Driving a Pink Cadillac… or Driving for Uber?

Direct Selling News Announces 2015 Global 100

Omni-Channel Is the New Buzzword for Marketers

Brand Finance: The Most Valuable Brands of 2015

Tupperware CEO Rick Goings: Leading an International Brand

May

Nu Skin Banks on Upcoming Launches

How Well Did They Do in Q1?

Tami Longaberger Resigns as Company CEO

From Doorstep to Digital: Direct Selling’s Evolution

U.S. DSA Appoints Mary Kay CEO David B. Holl as Chairman

Three Startups That Want to Steal Avon’s Look

June

Xango Names New President

U.S. DSA Strengthens Its Self-Regulatory Framework

BurnLounge Ruling in FTC Case Seen as Good for Herbalife

Amway Opens New $81 Million Nutrition Manufacturing Facility

WFDSA Reports 2014 Statistics

Origami Owl Appoints Brett Blake as New CEO

What Avon Can Learn from Direct-Selling Fashion Company Cabi

Young Living Essential Oils Announces New CEO

Lia Sophia Jewelry Faces Class Action

July

Avon Sells Liz Earle

Meet the Woman Transforming Lives – One Necklace at a Time

Austria Could Face EU Court Action for Direct Selling Ban

Judge Dismisses ‘Pyramid Scheme’ Lawsuit Versus Herbalife, CEO

LR Health & Beauty Systems Appoints Dr. Thomas Stoffmell as New CEO

Rodan + Fields CEO Lori Bush on Technology and Independent Work

August

Primerica Among America’s 50 Most Trustworthy Financial Companies

USANA Appoints Dave Wentz and Kevin Guest as Co-Chief Executive Officers

Expanding Door-to-Door Sales in the Developing World

Mid-Year Growth Figures

Inc. 5000 2015 Includes Direct Selling Companies

The Future of Direct Selling: Doug DeVos

FTC Acts to Halt Vemma as Alleged Pyramid Scheme

Thirty-One Gifts Homegrown Idea Goes Worldwide

The Carlyle Group Announces Agreement to Acquire Blyth Inc. for $98 Million

September

The Siege of Herbalife

Fortune: Most Powerful Women 2015 (incl. Avon’s Sheri McCoy)

Judge Forbids Vemma to Resume Normal Operations, Appoints a Monitor

Tyra Banks to Enter Direct-Selling Beauty Field

In 100 Words: What Should the Others Do?

Top 10 Brands Synonymous With Their Product

October

Retail Company Tweaks the Direct Sales Model to Become Successful

Tami Longaberger Sues Former Company

5Linx Names New CEO

Seldia Announces Katarina Molin as Executive Director

Amway in 2014 at A Glance

Direct Sales is Growing – Also in The Number of Consultants in Germany (Google-Translated Text)

Blyth Names Slatkin CEO

Belcorp Among 2015 World’s Best Multinational Workplaces

Pharaonic Creations: Multi-Level Marketing in America

Is Social Media a Pyramid Scheme Enabler?

New Economic Analysis Affirms That Purchasing Products for Personal Use Is Acceptable in Direct Selling

Battling Bullying One Bracelet at a Time

November

Ryan Blair’s Journey from Juvenile Delinquent to Multimillionaire Entrepreneur

Youngevity Names Dave Briskie as New Corporate President

Meet the Direct Selling Caucus in the U.S. Congress

Mary Kay Wins in Three Categories in #beauty20 Awards

Beware of Billionaire Hedge Fund Managers Preaching Morality

A Glance at the Third Quarter

Solavei Shuts Down Due to ‘Competitive Landscape’

Private Equity in Direct Selling

Herbalife, CEO Prevail in ‘Pyramid Scheme’ Lawsuit

Mary Kay Announces New $100M Manufacturing Facility to Be Built in Lewisville

Swell of Tupperware-Type Parties Overwhelms City Dwellers

Will Social Selling Work in Fashion?

December

Oriflame Announces New Organization

Nu Skin Reiterates 2015 Outlook and Announces Projected 2016 Revenue

Are Direct Selling Companies the Next Targets for Independent Misclassification Claims?

Turnaround for Avon: In Sight at Last?

Rodan + Fields Announces Retirement of CEO Lori Bush

India Direct Selling Sector Set to Grow 8-Fold in 10 Years

Tupperware Isn’t Just Popular in the U.S.

I hope to be able to share with you only the positive news this year. Once again, best wishes for 2016!

The post 2015: A Year in The News appeared first on The World of Direct Selling.

When investing, usually the investor sets an objective and a time frame to achieve it. As soon as that objective has been met, investor sells its stake and “exits”.

Obviously, outside investors pick the industries and companies to invest from those that are promising to them. Let’s see then, how attractive the direct selling industry has been to these investors. We will briefly review this week, some of the prominent examples from the industry.

5LINX

Founded in 2000, 5LINX is a direct-sells three main categories of products: Home essentials like telecommunications and energy, wellness products, and business services such as mobile marketing and payment processing. As of end-2014, 5LINX reported $109 million sales.

In 2006, Trillium Group and the New York State Common Retirement Fund made a $1.7 million investment in 5LINX. Eight years after this in 2014, New York State Comptroller’s Office reported this investment had generated a $6.7 million return – close to four times the original investment.

Arbonne

In 2004, Harvest Partners purchased NPG, Arbonne’s parent company. Things did not go so well, though. Arbonne’s holding company and all its subsidiaries filed for bankruptcy in 2009. The company’s board made the decision to restructure the debt to equity and allowed the company’s lenders to become the owners. The company officially declared bankruptcy in January 2010. But in several weeks, Arbonne emerged from bankruptcy. Arbonne announced in early 2011 that its parent company NPG had been named the winner of the “Corporate Turnaround of the Year” award by the M&A Advisor magazine.

Having survived this turmoil, Arbonne stands now as the world’s 36th largest direct seller with 2014 sales of $486 million in the Direct Selling News Global 100 list.

Blyth

Blyth is known as the parent company of PartyLite that also owned the majority of the shares in ViSalus between 2012-2014. In August 2015, The Carlyle Group announced it would acquire Blyth for $98 million. The price paid for shares represented a premium of approximately 105% percent over the closing price of Blyth common stock at that date.

CAbi

“CAbi” stands for “Carol Anderson by Invitation”. It was founded in 2001 as a clothing direct seller. CAbi was bought in 2012 from its founders by the private equity firms Irving Place Capital and J.H. Whitney.

With its more than 3,000 “Stylists”, company’s revenue exceeds $250 million.

CVSL

CVSL is definitely a unique case in the global direct selling industry. The company defines itself as “a unique portfolio of direct-to-consumer companies, led by an experienced management team, engaged in a long-term process of acquiring companies in this sector and maximizing returns for shareholders.”

CVSL is led by John P. Rochon, a well-known figure in the industry. So far, the company has invested in the direct sellers Agel, Betterware, Kleeneze, Longaberger, Paperly, Tomboy Tools, Uppercase Living, and Your Inspiration at Home.

CVSL is a public company whose shares are being traded on the New York Stock Exchange.

LegalShield (formerly Pre-Paid Legal Services)

LegalShield was founded in 1969 by Harland Stonecipher under the name of Pre-Paid Legal Services. As its name implies, the company sells legal service plans to individuals and businesses.

MidOcean Partners, a private investment firm acquired the company in 2011 through a cash transaction valued at approximately $650 million.

LR Health & Beauty Systems

Called “LR” in short, this is a well-known Germany-based direct selling company. It was founded in 1985 by two entreprenuers, Helmut Spikker and Achim Hickmann.

In 2004, Apax Partners invested in LR and then gradually acquired a majority share. Apax Partners is a leading private equity investment group, with the funds under the advice of Apax Partners exceeding $35 billion around the world.

Apax Partners said in 2012, it had agreed to sell its stake at LR to a private equity consortium of Bregal Capital and Quadriga Capital.

LR’s 2014 revenue exceeded $300 million.

Oriflame

Oriflame was founded in Sweden in 1967 by the brothers Jonas af Jochnick and Robert af Jochnick and their friend Bengt Hellsten.

While its shares were being traded on the London Stock Exchange, Industri Kapital, a leading European private equity firm bought 45% of Oriflame’s shares in 1999. With this transaction, Oriflame was delisted from the stock exchange, too. Industri Kapital’s this transaction valued Oriflame at approximately 450 million Euros at that time.

In line with the initial plans, the management listed the company on the Stockholm Stock Exchange through an IPO (“Initial Public Offering”) in 2004. Following this, Industri Kapital started selling its shares on the stock exchange and exited by selling its remaining 4.5% stake in August 2006.

Origami Owl

Origami Owl is a custom jewelry direct seller founded by a teenager, Bella Weems and her family in 2010. Two years later in 2012, company’s revenue exceeded $24 million. Origami Owl’s 2014 sales was $250 million.

In October 2014, Origami Owl received $43 million from Gauge Capital. Satori Capital had also invested in Origami Owl an amount not disclosed.

Pampered Chef

Pampered Chef is probably the most publicized of these examples due to its investor’s very high profile.

In 2003, Warren Buffet’s company Berkshire Hathaway which owns stakes in big names like American Express and Coca-Cola, announced it would buy Pampered Chef, few days after Buffett reviewed its financials. At that time, Warren Buffet said, “We are extremely excited by Pampered Chef. Doris Christopher has created from scratch an absolutely wonderful business.”

Doris Christopher founded Pampered Chef in 1980 to direct-sell kitchen tools by borrowing $3,000 on a life insurance policy. By 2001, company’s annual sales reached $740 million.

In late 2014, Warren Buffet appointed his aide Tracy Britt Cool as the CEO of Pampered Chef. At the age of 30, Cool was known to be one of Buffett’s most trusted advisers,

Pippa&Jean

Pippa&Jean is a German direct sales company selling accessories. The company received investments from Holtzbrinck Ventures, Klingel Gruppe, SevenVentures, and Vorwerk Direct Selling Ventures.

Stella & Dot

This company was founded by Jessica Herrin and Blythe Harris in 2007. In 2010, Sequoai Capital, that was said to control nearly 14% of Nasdaq, invested $37 million in Stella & Dot. With this, Sequoia owned 10% of the company, valuing Stella & Dot $370 million. Before this, the company had also raised about $5 million from Radar Partners

Stella & Dot’s sales in 2009 was $33 million. It more than tripled in 2010 reaching $104 million. This became $220 million in 2013.

It is true that capital raised from private equity companies helps businesses a lot. However, raising capital from institutional investors is not an easy task. The future of the industry, founders’ success till then and their visions, all play a part in attracting investors’ initial interest. Shortly after these though, comes their search for professionalism within the company, including of the founders’ and top management’s. It’s always worth remembering that only those that pass all these tests can win that valuable financial support.

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