This is a yearly program and it consists of four, $4,000 scholarships. Nominations are open to Canadian students in all years of post-secondary study with ties to the direct selling industry. Nominees must be children or grandchildren of active independent sales consultants (ISCs) of DSA Canada member companies, active ISCs themselves, or children of DSA Canada member company employees.

“We are excited to present these scholarships to such a talented group of outstanding students,” said Peter Maddox, DSA President. “Direct selling has played such a significant role in their personal growth and development. It is such an honour to give back through our Scholarship Program and to continue to promote entrepreneurship in Canada.”

The four recipients of the 2023 DSA Canada Scholarships, and their associated DSA Canada member companies, are:

• Maja Zbogar, Western University, Cutco/Vector Marketing Canada
• Mattie Cull, Memorial University of Newfoundland, Pampered Chef Canada
• Angel Ferguson, Lawrence College, Arbonne International Canada
• Tiffany Levers, Douglas College, Mary Kay Cosmetics

Since its inception, the DSA Canada’s Scholarship Program has awarded over $132,000 in  grants to post- secondary students across Canada to help them advance their education. The program also helps to raise awareness of the direct selling business model, both with students and academia. It receives support from the Direct Selling Education Foundation (DSEF); a not-for-profit organization established by DSA Canada in 1994. The DSEF promotes public awareness of the direct selling industry in Canada and serves the public interest through educational programs and research into direct sales and micro- enterprise.

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The Entrepreneur Challenge is a contest with the goal of encouraging entrepreneurial thinking, tasked teams of post-secondary Canadian students to imagine a unique product and outline an innovative sales plan utilizing the fast-growing direct-to-consumer channel.

As part of their successful submission, Fatima Sumar and Lovepreet Mahli presented their concept of the GreyGon Nutritional Supplement. The product, proposed to be distributed using social media and by utilizing influencers and affiliate marketing, featured a daily nutritional supplement that can reverse the signs of aging and greying hair, strengthening follicles, thickening growth and adding a natural glow to the user’s hair.

The Challenge judging panel members praised the product concept and awareness of the direct-to-consumer distribution method. They also loved Team GreyGon’s vision of targeting an aging demographic that is looking for cost-effective, easy-to-use solutions to maintain a youthful appearance. All while being savvy to the power of social media and trusted personal recommendations have on building effective consumer relationships.

Team GreyGon won $2,500 and a product bundle from supporting and sponsoring organizations. The 2022 Challenge was sponsored by SeneGence, Mary Kay, USANA, MONAT, Amway, and Gowling WLG.

“Interest in entrepreneurship among the Gen Z and Millennial demographic is growing, and the Challenge helps all post-secondary students – not just those enrolled in business programs – practice and explore the principles of entrepreneurship,” stated Peter Maddox, President of DSA Canada and Entrepreneur Challenge organizer.

“Our hope is that this contest will continue to serve as an easy and effective lesson planning tool for academics across Canada to promote entrepreneurial education to their students,” added Peter Maddox.

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This week’s article is a compilation of 2022’s significant direct selling industry news from all over the world. It was most certainly a difficult year for all players. Yet we know there were positives alongside all the negatives. Also included, you will find selected articles we published last year that stood out according to readers’ responses.

> CEO Ryan Napierski Shares Nu Skin’s 2022 Strategy
> Mary Kay Celebrates 2021 Year-End Highlights
> How Albania Became a Pyramid Scheme
> IDShield Named Among Best Identity Theft Protection Services of 2022
> Kannaway Opens Office and Warehouse in Poland
> COVID-19 Behaviors and the Impact on Beauty
> Sunrider International Celebrates 40 Years
> Betterware to Acquire JAFRA’s Operations in Mexico and the U.S.
> 2021: Another Record Year for PM-International
> Beautycounter Appoints Marc Ray as New CEO

Most-Read Article in January on The World of Direct Selling:
The Case for an LMS – McKinley Oswald

> Amway Co-Chair Doug DeVos Building Up His Own Family Office
> Nu Skin Reports $2.7 Billion Sales in 2021
> FTC Takes Action to Combat Bogus Money-Making Claims in the U.S.
> Primerica Reports Fourth Quarter 2021 Results
> Regal Ware Expands Leadership Team With Three Executive Hires
> Herbalife’s Net Sales $5.8 Billion in 2021
> Mary Kay Names Nathan Moore President, Global Sales and Marketing
> Tupperware Announces $1.6 Billion Sales in 2021
> Oriflame’s 2021 Revenue Down 12%
> Medifast Reports $1.5 Billion Revenue in 2021, an Increase of 63%

Most-Read Article in February on The World of Direct Selling:
6 Common Reasons Behind Direct Sales Start-Up Failures – Hakki Ozmorali

> Kendra Scott Launches Direct-Selling Platform For Women Entrepreneurs
> doTERRA and University of Mississippi Partner to Advance Essential Oil Research
> Melaleuca Announces New President
> SeneGence Taps Anita Krpata as New Chief Commercial Officer
> Natura &Co Q4 2021: Income More Than Triples, Despite Sales Dip
> Young Living Names Ben Riley as New Acting President
> DSSRC Recommends Mary Kay Discontinue Certain Earnings Claims
> India to Be Herbalife Nutrition’s Largest Market Globally: CEO
> Young Living Appoints Lyndi Smith as Chief Marketing Officer
> Natura &Co Opens Joint Offices in Chile for Its Natura, Avon and The Body Shop Brands

Most-Read Article in March on The World of Direct Selling:
2021 Results: Brakes on Growth in the Fourth Quarter – Hakki Ozmorali

> Arbonne Appoints Jorden Bell as new Chief Marketing Officer
> Betterware Completes Acquisition of JAFRA’s Operations in Mexico and the U.S.
> Fitch Downgrades Oriflame to ‘B’; Outlook Negative
> Nature’s Sunshine Celebrates 50^th Anniversary
> Fitch Affirms Natura &Co’s Rating at ‘BB’; Outlook Remains Positive
> IDLife Announces Josh Paine as New CEO
> Amway’s Global Sales Reach $8.9 Billion in 2021, Up 4%  
> Nu Skin’s Ryan Napierski on Taking the Company Into the Digital Age
> LR Group Sales in 2021 Increased by 4.0% to EUR 296.2 Million
> Amway: “We Stand Behind Our Business in India”

Most-Read Article in April on The World of Direct Selling:
How To Start Thinking Differently About Compensation Plans in 2022 – Brett Duncan

> FTC Sends $149 Million in Refunds to People Harmed in Alleged AdvoCare Scheme
> Herbalife Nutrition Announces First Quarter 2022 Results
> Natura Resumes Growth in Brazil and Further Improvement in Avon Fundamentals in Q1
> Tupperware Reports First Quarter 2022 Financial Results
> Medifast Announces Q1 2022 Financial Results
> Kyäni Makes Announcements About Leadership
> Tupperware’s Party of One: Direct Selling Brand Seeking Turnaround
> Vorwerk Group Reports Record Sales of 3.4 Billion Euros in 2021
> Management Today Awards CEO Angela Cretu Trailblazer of the Year
> New doTERRA Product Center to Serve Thousands in Hawaii

Most-Read Article in May on The World of Direct Selling:
Power Skills for Powerful Onboarding – Lauren Mason Carris

> US Direct Selling Association Releases 2021 Industry Statistics
> Tupperware Enters into Definitive Agreement to Sell its Nutrimetics Business
> NewAge Announces Review of Strategic Alternatives
> Hinode Seeks to Increase Global Footprint and to Sell in 30 Countries by 2030
> Brazil’s Natura Announces Restructuring Plan and New CEO
> Melaleuca Promotes Frank VanderSloot to Executive Chairman, Jerry Felton to CEO
> WFDSA Shares 2021 Global Industry Statistics
> doTERRA Commences Operations in Chile
> Direct Seller Nu Skin Pivoting to ‘Social Commerce’
> Beautycounter CEO: “Even in a Recession, We Have a Lot of Growth Opportunities”

Most-Read Article in June on The World of Direct Selling:
Increase Sales by Improving Your Company’s Google Results – Don Sorensen

> Direct Selling in Europe: 2021 Industry Statistics
> New Image Acquires Nutrimetics From Tupperware Brands
> doTERRA Continues Growth with Expansion into India
> Avon CMO: “You Need a Unique Value Proposition to Transform as a Brand”
> Ryan Napierski of Nu Skin on The Future of Retail Over the Next Few Years
> Nature’s Sunshine’s US Manufacturing Facility Now Using 100% Renewable Energy
> The Beauty Metaverse: We Are at the Beginning of Something That Is Huge
> AVEDISCO (Italy DSA) Releases Sales Force Statistics by Regions
> Canada DSA Announces 2022 Award Winners
> In Its 108th Year, Kirby Rolls Out Direct Selling to Consumer on Its Website

Most-Read Article in July on The World of Direct Selling:
15 Principles for Developing Your Independent Salesforce – Brett Duncan

> Herbalife Exceeds Q2 2022 Expectations and Reaffirms Full Year 2022 Guidance
> Nu Skin Reports Second Quarter Financial Results
> Tupperware’s Q2 Revenue Decreases 18%
> Oriflame Reports 14% Sales Decline in the Second Quarter
> Herbalife to Invest $400 Million in Key Digital Transformation Growth Initiative
> Natura &Co’s Sales Stabilized in Q2, Profitability Is Impacted by Cost Pressure
> Young Living Launches Strategic Restructuring, Suspends Operations in Brazil
> Juice Plus+ Announces Biggest Rebrand Since It Was Launched in 1993
> Direct Selling and the Big Impact It Has on the Utah Economy
> NewAge Files for Bankruptcy

Most-Read Article in August on The World of Direct Selling:
Direct Selling in Q2: Confronted With Challenges – Hakki Ozmorali

> Market America Co-Founder J.R. Ridinger Dead at 63
> Natura Not Considering a Spin-off of Aesop or the Sale of The Body Shop
> Saladmaster Announces European Expansion, Opens Warehouse in Netherlands
> Avon Survey: Cost-of-Living Crisis Leads 80% of Women to Seek Side Hustle
> Amare Global Announces Acquisition of Kyäni, Inc.
> Is Livestream Commerce About to Break Through?
> Redefining Anti-Aging Skincare: Interview with Lori Bush, Founder of Solvasa
> Tupperware Announces Settlement of SEC Investigation for House of Fuller Business
> Shaklee Enters New Category with Launch of Anti-Aging Body Care Line
> 10 Top Retail Trends to Watch

Most-Read Article in September on The World of Direct Selling:
3 Ways Integrated Data Fuels Direct Selling Success – Daryl Wurzbacher

> Tupperware, the 76-Year-Old Staple of Door-to-Door Sales Is Now Selling at Target
> Plexus Worldwide Announces the Appointment of Gene Tipps as Chief Executive Officer
> Natura & Co. Considers IPO for Aesop, Its Beauty & Wellness Brand
> Thirty-One Gifts Founder Cindy Monroe Releases Her First Book, “More Than a Bag”
> The Body Shop CEO: “They Say Retail Is Dead. But We’re Social Creatures”
> Modere Named to Newsweek’s Top 100 Most Loved Workplaces for 2022
> 15,000 Participants Attend QNET’s Annual Convention
> Metaverse, a Year After the Hype: To Jump in or to Wait and See
> Herbalife Nutrition Announces Leadership Change
> TikTok Set to Launch Live Shopping in the U.S.

Most-Read Article in October on The World of Direct Selling:
The Pillars of Success in Direct Selling – Hakki Ozmorali

> Third Generation to Lead Mary Kay as Ryan Rogers Named Next CEO
> Karalee Mora Appointed as JAFRA USA’s New CEO
> Avon to Build New Research & Development Operations in Brazil and Poland
> Medifast Named to the 2022 FORTUNE 100 Fastest-Growing Companies List
> Natura &Co Results Show The Body Shop Challenges Remain
> Tupperware Reports 20% Decline in Sales in Q3
> WFDSA Launches Website for 2023 World Congress in Dubai
> Monat Expands Into Color Cosmetics
> US Direct Selling Association Announces DSA Digital Marketing Awards
> Oriflame Launches Operations in Germany

Most-Read Article in November on The World of Direct Selling:
The Table Stakes for Success as a Direct Selling Company – Jeff Dahl

> Amway Launches Singapore Business Innovation Hub
> Natura &Co Could Sell Stake in Aesop to CVC Capital, L’Occitane or Shiseido
> Infinitus Celebrates 30^th Anniversary, Launches New Brand ‘Oriherb’
> DSA Canada’s 2022 Year in Review
> Avon Hit With $52.1M Verdict for Asbestos-Contaminated Talc
> Utah Companies Are Trying to Pull Out of China
> US DSA: Proposed Rulemaking Creates Confusing Standards for Millions of Direct Sellers
> Amway Announces Peter Strydom as New Chief Marketing Officer
> Herbalife CEO Michael O. Johnson Agrees to “$1” Salary and Removing “Interim” Title
> Mary Kay Announces Awards, Milestones, and Accomplishments From Full-Year 2022

Most-Read Article in December on The World of Direct Selling:
Canada Remains Steady in a Sea of Uncertainty – Peter Maddox

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Written by  Peter Maddox, President of the Direct Sellers Association of Canada. Peter has extensive experience in the association world and the marketing industry. Over his career, he has managed government relations, regulatory affairs, member engagement, communications and business development. Originally from Australia, Peter has an MBA from Chifley Business School and a Marketing Degree from the University of Tasmania.

Canada Remains Steady in a Sea of Uncertainty

The Direct Sellers Association of Canada (DSA Canada) recently released the results of its 2022 Socio-Economic Impact Study (SEIS), which looks at both the macroeconomic impact of the direct selling industry across the country, as well as important social drivers that create success for individual companies and independent sales consultants (ISCs).

Conducted every three years, and verified with independent oversight from Nathan Associates, the study is based on 2021 direct selling company data and information collected in 2022 from ISCs.

The study helps to show that Canada remains a vibrant marketplace, one blessed with strong consumer confidence and business stability. Despite the unexpected turmoil of the past few years, 2021 sales in the channel have remained steady when compared to 2020, and all things considered, ISC numbers have held up well. With this in mind, it is going to be very interesting to see where these numbers go in the next couple of years, as economic pressures such as inflation, low unemployment, high-interest rates, etc., come into play.

Through conversations with direct selling companies operating in Canada, as well as respected industry watchers, it is clear they remain confident that this channel and country will ride the waves better than many others, despite current economic uncertainty.

Now, to the numbers.

Net Sales

Across the entire industry, total Canadian net sales in 2021 for all direct selling companies came in at $4.20 billion; which was slightly higher than the $4.15 billion reported in 2020, and 33% higher than $3.5 billion in 2018. Additionally, the average net sales of a direct selling company in Canada in 2021 was just over $28 million.

Although net sales figures for the two COVID years (2020 and 2021) grew incrementally by 1.2%, it is important to note that they were significantly stronger than previous years, for reasons that have been discussed ad infinitum – including a move to shopping from home, consumers investing in health-related products and ISCs committing more time to their businesses.

When exploring how sales were procured, the 2022 survey also provided insights into the following:

• Preferred Customers
  • In 2021, 52% of companies surveyed offered a preferred customer program. For these companies, sales made via this program constituted 36.7% of their total net sales.
  • On average, individual companies with a preferred customer program in Canada had 27,085 customers participating in their program.
  • Looking back to responses from the 2019 and 2016 surveys, preferred customer programs continue to hold steady, with limited participant or sales growth. They appear to be plateauing.
• Autoship Programs
  • 62% of companies surveyed had an Autoship program. Out of these companies, 24.2% of their 2021 net sales were generated through this program.
• Total Customers
  • On average, surveyed companies reported having 101,727 total individual customers in the Canadian market.

Independent Sales Consultants (ISCs)

There were a total 1.37 million active ISCs in Canada, up from 1.16 million in 2018, but down ever so slightly from 1.38 million in 2020. Out of the 2021 figure, 83% were women.

• Geography
  • As in previous studies, the percentage of total ISCs in each of Canada’s provinces and territories matched closely with the percentage of the total population in each region. Ontario, Quebec and British Columbia remain the provinces with the highest number of participants.
• Time Spent on the Opportunity
  • In 2021, 7% of ISCs surveyed considered themselves to be working full-time on the opportunity, meaning they spent 30+ hours a week on their direct selling business.
  • 27% spent less than 5 hours a week on their business, while the remaining 66% committed 5-30 hours weekly to direct selling.
• Top Skills
  • Surveyed ISCs stated that the top three skills they had learned through direct selling were: (1) self-esteem and confidence, (2) social media and digital skills, and (3) sales and marketing skills.

Economic Impacts and Contributions of Direct Sales

An important part of the study, particularly as a tool for government and media outreach, is the calculation of how direct selling contributes to the prosperity of the overall Canadian economy. Evidence of the industry’s strength and importance to the Canadian economy provides positive content to be shared by DSA Canada and its member companies when advocating for the industry.

What do we mean by economic impact? It is the overall financial effect of salaries, commissions and spending that are a result of the activities of direct selling companies and ISCs, and the businesses they interact with economically.

• The total economic impact of direct selling in Canada in 2021, including direct, indirect and induced effects, was $8.735 billion.
• A key part of this was the total commissions paid out to ISCs in Canada, which stood at $1.57 billion.
• Furthermore, the estimated total 2021 taxes paid in Canada as a result of direct selling activity was $1.47 billion.

Through the economic and tax activity it creates, the direct selling industry contributes to societal investments in education, health care and other crucial infrastructure initiatives. These contributions are an important aspect of the industry, which is often overlooked but should be highlighted and communicated to all Canadians.

Use of the Report

As part of its ongoing meetings with government officials from across the country, DSA Canada is utilizing this report to provide education on the industry and to promote its advocacy goals. Likewise, members are encouraged to meet with local officials to talk about their impact on the community.

As part of their DSA Canada membership, member companies have access to further data and insights from the Socio-Economic Impact Study, beyond that which is available to the public. Many are choosing to use this demographic and economic data to assist with their strategic planning for the Canadian market.

What’s Ahead?

While there are challenges in 2022, and more on the horizon, the fundamentals of Canadian direct selling remain strong. Regulatory certainty, strong relationships between DSA Canada and key external stakeholders, and positive consumer confidence indicators point to a relatively soft landing for business in 2023.

As always, direct selling is an industry that favors companies with great products, a compelling entrepreneurial opportunity and deep relationships with the communities they serve. Companies with these traits and a strong commitment to Canada will continue to thrive in this market.

The DSA Canada Socio-Economic Impact Study report can be viewed here.

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The Awards honour and recognize individuals and organizations for their outstanding contributions to the direct selling industry in Canada.
“Our 2022 award recipients are extraordinary representatives of Canada’s direct selling industry,” said Peter Maddox, President of the DSA. “Through their continued dedication and passion, they help to enrich the lives of many Canadians, and we are inspired by their many accomplishments.”

The DSA Canada Award winners for 2022 include:

• IVAN P. PHELAN AWARD – Darren Sketchley, President, FORMCOR.
As the industry’s highest personal recognition, the Ivan P. Phelan Award was presented to Darren Sketchley, who has made a significant contribution to the advancement of the direct selling industry in Canada, through his service, hard work and passion.

• INDUSTRY INNOVATION AWARD – Pampered Chef for Table – a digital platform that enables Pampered Chef consultants to hold customized virtual parties that deliver a unique and engaging experience. This award recognizes the implementation of a program or service unique to the Canadian direct-selling industry by a DSA member company.

• MAKING A DIFFERENCE AWARD – Tocara’s Annual Debbie Breast Cancer Campaign raises funds for the Breast Cancer Society of Canada. Since 2018, Tocara and its consultants have raised over $250,000 to help support the eradication of breast cancer. This award honours companies whose charitable and community service efforts have made a profound difference in the lives of Canadians.

• PARTNERSHIP IN PROGRESS AWARD – Diversified Productions. This award was presented to supplier member company Diversified Productions, which provide excellent service to numerous active member companies, making a measurable impact and contribution to their businesses.

• DISTINGUISHED SERVICE AWARD – Gina Bresciani, Director – Operations and Customer Service, USANA Health Sciences and Colt Passey, Executive Vice President of Business Development, Nexio for their continued support of DSA Canada and its mission. This award recognizes a DSA Canada Board of Directors or committee members for their participation and leadership

Click here for more information on each award winner.

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Members of the Direct Sellers Association of Canada board were thrilled to spend some important and constructive time in Ottawa, Canada’s capital.

The first day, a board meeting was followed by a well-attended government reception. Next day saw teams of DSA Canada representatives fan out across Ottawa, to discuss direct selling with Members of Parliament (MPs) and other important stakeholders.

For many parliamentarians and government officials, theses were their first in-person events for some time, which made DSA Canada’s visit even more memorable.

A total of sixteen meetings were held with representatives of all major parties, as well as with staff from important agencies, including the Competition Bureau. The focus of all meetings was on promoting the important economic and social role that the direct selling industry plays in Canada.

Among the topics discussed were:

• The importance of upholding the independent contractor status of direct selling consultants, to ensure their ability to pursue meaningful earnings opportunities.
• The need for a national regulatory framework that provides a balance between entrepreneurial encouragement and consumer confidence.
• Ensuring ongoing recognition of the important role that direct selling does and can play in empowering and training key demographic groups, including women, immigrants and seniors.

Over its history, DSA Canada has placed a focus on meeting with elected officials, at events such as this event in Ottawa. “Days like these are important,” said DSA Canada President Peter Maddox, “they help support future collaboration and lead to year-round opportunities to engage and consult on a range of important topics.”

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Country Overview

Canada is the second largest country in the world by area, but the 39^th  largest by population, with around 38.5 million people. While this means that the population density for the entire country is quite low, the reality is that most Canadians live in densely populated areas located close to the U.S. border.

Included in these areas are the major cities of:

• Toronto – 6.5 million residents
• Montreal – 4.4 million
• Vancouver – 2.7 million
• Calgary – 1.6 million
• Edmonton – 1.5 million
• Ottawa – 1.5 million (the national capital)

The country is divided into 10 provinces and 3 territories, which each have a significant amount of legislative and regulatory authority.

Language

Canada has two official languages, French and English.

English is the primary language for 75% of the Canadian population. French is the dominant language in the province of Quebec, with a large minority in the province of New Brunswick also speaking it as their primary language. Small populations of French speakers are found across the country.

Heritage

With population growth since settlement being driven by immigration, 21% of Canada’s residents are born overseas, with a further 20% having immigrant parents. It is estimated that over 250 ethnic origins or ancestries are represented in the Canadian population.

Around 5% of Canada’s population are Indigenous, consisting of the First Nations, Métis and Inuit peoples.

Transportation

Getting people and goods around Canada involves covering vast distances. However, transport links in Canada are good, with efficient road, rail, air, bus and ferry networks connecting towns and cities across the country.

Canada’s transportation networks are highly integrated with those in the U.S. As a result, transportation in a north-south direction (U.S. to Canada & Canada to the U.S.), can sometimes be more economical than cross Canada shipping (East-West), due to the proximity of large populations.

An Economy Open to Opportunities

In 2021, the Direct Sellers Association of Canada (DSA Canada) completed a consumer research that looked at the openness of Canadians to income opportunities outside traditional employment relationships. It found that almost one-third of the 18+ population had participated in some form of side hustle in the past 12 months and that another 25% were considering such an opportunity in the coming year.

While unemployment remains low, the impact of high inflation and the COVID pandemic have created a desire for new income opportunities, such as app-based gigs, freelance work and direct selling.

In the research by DSA Canada, 72% of people questioned had a positive (38%) or neutral (34%) impression of direct selling.

Direct Selling Market

Given the close geographic and cultural relationship between the U.S. and Canada, it is no surprise that many U.S.-based direct selling companies have a long and established presence north of the border. Canada is often the first expansion market for businesses from the U.S., as well as being a stepping-stone into North America for overseas-based operations.

Important players in the Canadian direct selling space include Amway, Avon, Mary Kay, USANA, Pampered Chef, Arbonne, Monat and Scentsy. There are also many Canadian-based companies, as well as market participants from Europe and Asia. These companies cover a broad range of popular product categories, including cosmetics, health supplements, housewares and jewellery.

In Canada, direct selling retail sales for 2020 were US$3.09 billion, ranking 13^th globally. In the same year, there were 1.39 million Canadians participating in direct selling, with nearly 50% of them living in large urban areas.

Direct Sales Regulation & Legislation

Direct selling activity in Canada is governed by individual provinces and territories, as well as by federal legislation. Regulation of direct selling, particularly multi-level marketing (MLM), has a greater level of complexity when compared to many other markets, and for this reason it is important for companies entering the Canadian market to be well-prepared before launching.

Federally, direct selling is impacted by the Canadian Competition Act, which establishes requirements and restrictions related to the operation of a multi-level marketing plan versus a prohibited scheme of pyramid selling. The Competition Act is enforced and administered by the Competition Bureau of Canada.

Requirements vary across the individual provinces and territories for direct sellers, but some jurisdictions require a combination of business registration and licensing, surety bonds and licensing of individual consultants. Furthermore, in providing business licenses to direct selling companies, some provinces require a positive opinion from the Competition Bureau, which provides assurance that their business plan follows the requirements of the Competition Act and does not include any elements of a pyramid scheme. A positive opinion is binding on the Competition Commissioner, therefore providing ongoing certainty and confidence to the direct seller.

Product Regulation

Direct sellers that o­ffer consumer goods must consider federal legislation that applies to their products. Categorization of products does not always align with that in other jurisdictions, including the United States, so it is important to review the relevant product legislation and confirm applicable requirements and restrictions.

In particular, products such as cosmetics and dietary supplements (commonly known as “natural health products” in Canada) are governed by regulations overseen by Health Canada. These regulations can include requirements for product licensing, site/establishment licensing and good manufacturing practices

There are also specific regulatory requirements for drugs, foods and other product categories. Across all products, language regulations can create a need for bilingual packaging and marketing due to the fact that Canada has two official languages.

Tips for Success

Canada is a strong direct selling market, which continues to offer considerable room for expansion and growth. The economy is healthy and, most importantly, the people are hungry for entrepreneurial opportunities.

Historically, companies entering Canada with an appealing value proposition will have a good chance of success, both over the short and long term. Certainty in the market is provided by a strong regulatory framework, political stability, and a robust financial and logistics infrastructure.

Some of the reasons that direct selling companies succeed in the Canadian market include:

• Pre-planning: As the old saying goes, “If you fail to prepare, you are preparing to fail”. Companies that find success usually work to tick off all the regulatory and compliance boxes before launch.
• Seek expertise: Canada has a strong community of suppliers with country-specific direct selling knowledge, across legal, logistics, technology, payments, meetings and more.
• Boots on the ground: Having staff, real estate and events in Canada shows your commitment to the market, which is appealing to potential consultants and customers.
• Localize: Things that work in the U.S. (or elsewhere) may not work in the Canadian market. Plan product offerings, pricing, packaging, marketing and outreach specifically with Canadians in mind.
• Joining the Canadian direct selling community: DSA Canada membership provides instant legitimacy, a community of mentors and access to exclusive market intel.

…

Written by Peter Maddox, President of the Direct Sellers Association of Canada. Peter has served as the President of DSA Canada since 2018. As President, he is passionate about promoting the growing positive impact that direct selling has on Canadian individuals and communities, as well as ensuring that the Association remains an influential representative of its member companies. His role at DSA involves managing files as diverse as strategic planning, government relations, regulatory affairs, media relations, member engagement and being the public face of the organization.

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The Canadian Academic Entrepreneur Challenge announced the winning teams of its inaugural contest.

A team of post-secondary students representing Trinity-Western University in Langley, British Columbia, won the top $2,500 prize, for their “wellness rings and comprehensive direct-to-consumer distribution strategy”.

The Entrepreneur Challenge is a contest aiming at encouraging entrepreneurial thinking of post-secondary Canadian students to imagine a unique product and outline an innovative sales plan, utilizing the fast-growing direct-to-consumer channel.

Graham Zastre, Marissa LaVasseur and Connor Byrne, students in Trinity-Western’s Business Program, presented their concept of Apeiro jewelry. The product range, proposed to be marketed using social media and by utilizing influencers. It featured rings made of silver and terracotta that absorb and release essential oils for their wearers.

Judging panel member Tracie Kenzora, General Manager of USANA Canada, praised the group’s product concept and awareness of the direct-to-consumer distribution method. Kenzora said that “the judges loved team Apeiro’s vision of combining on-trend elements of jewelry, health and wellness, and appreciated the fact that they pinpointed direct-to-consumer as an effective way to build meaningful customer relationships.”

As reward for their success, Team Apeiro wins $2,500, as well as the opportunity to present to and meet industry executives from the direct selling channel.

The judges also recognized New Brunswick students Minh Nguyen of the University of New Brunswick and Thao Pham of St. Thomas University, who received an honorable mention for their remote worker app Plansy. Both teams will be rewarded with a product bundle from supporting and sponsoring organizations.

“We wish to thank all teams who made submissions in this year’s event, as well as academics who supported the goal of promoting entrepreneurial education,” stated Peter Maddox, President of DSA Canada and Entrepreneur Challenge organizer.

The second annual Canadian Academic Entrepreneur Challenge is set to launch in September 2022.

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This week’s article is a collection of 2021’s significant direct sales news. It was most certainly a tough year for all industry players. Yet we know there were positives alongside with all the negatives. Also included, you will find selected articles from The World of Direct Selling that stood out last year according to readers’ responses.

> Avon in North America Gets a New Name: The Avon Company
> Nu Skin Reports 16.5 Tons of Paper and 21 Tons of Plastic Savings in 2020
> How Pampered Chef Revolutionized Home Cooking
> Herbalife and LA Galaxy Unveil First-Ever Major League Soccer AR Fan Experience
> How the Pandemic Stoked a Backlash to Multilevel Marketing
> Rodan + Fields Ups Commitment to Refillable, Reusable, and Recyclable Packaging
> Scentsy CEOs Are Leaving for London. Here’s What They’re Doing
> Avon Partners with Fuse to Drive Sales with Active Learning
> Is Personal Selling Dead? The Rise of Virtual Selling

Most-Read Article in January on The World of Direct Selling:
Five Pillars of a Successful Direct Sales Company – Hakki Ozmorali

> Amway Reports $8.5 Billion Sales in 2020, Up 2% from 2019
> LifeVantage Announces Appointment of Chief Executive Officer
> Nu Skin Reports Fourth-Quarter Revenue Growth of 28%
> USANA’s Digital Improvements Bear Fruit with 14.5% Sales Rise in Forth Quarter of 2020
> Jeunesse Achieves $8 Billion in Cumulative Worldwide Sales
> Leggings Company LuLaRoe Settles Pyramid Scheme Allegations
> Herbalife Reports Record-Breaking 2020 Net Sales with 14% Growth versus Prior Year
> Medifast Reports $935 Million Revenue in 2020, Up 31% from 2019
> Nu Skin Announces CEO Transition
> Oriflame’s Sales Decline by 8% in 2020 to €1.157 Billion

Most-Read Article in February on The World of Direct Selling:
3 Reasons Social Media Should Become the Lifeblood of Your Company in 2021 – Max Pecherskyi

> Natura &Co Outperforms the Global Market in Q4 2020
> Tupperware Announces 17% Sales Increase in the Fourth Quarter
> Juice Plus+ Names Former Coca-Cola Exec Its First Female CEO
> Amway to Cut 6% of Global Workforce, More Than 800 Jobs at Headquarters
> Rodan + Fields Promotes Dimitri Haloulos to CEO
> Inside Farmasi’s U.S. Expansion
> Avon to Launch in Kenya
> Melaleuca Awards Its Employees $2.2 Million in Longevity Bonuses

Most-Read Article in March on The World of Direct Selling:
2020 in Five Major Companies’ Figures and Charts – Hakki Ozmorali

> Why COVID-19 Could Be Pushing More People to Multi-Level Marketing Companies
> Virtually Beautiful: Mary Kay’s Digital Showroom Is a 360-Degree, 3D Beauty Experience
> The Carlyle Group Acquires Major Stake at Beautycounter, Valuing Company at $1 Billion
> Natura &Co Expects US$8.5-$8.8 Billion Consolidated Revenue in 2023
> Tupperware Launches Its Innovative Channel “Homeshop” in India
> Euromonitor: Herbalife Is World’s #1 Weight Management and Wellbeing Brand
> Tyler Whitehead Is the New CEO of Arbonne
> LR Health & Beauty’s 2020 Revenue Rises by 27% to EUR 285 Million
> Young Living Study Shows Pandemic Heightened Importance on Wellness
> The Avon Company Sets Digital Retail Ambitions on Livestream Shopping

Most-Read Article in April on The World of Direct Selling:
Celebrities in Direct Selling – Hakki Ozmorali

> Tupperware’s Turnaround Plan Well Underway with Sales Growth of 22%
> Medifast Announces 91% Sales Increase in Q1
> Natura &Co: Digital Social Selling and Ecommerce Drive Revenue Growth in Q1
> Arbonne Elevates Customer Experience with New Mobile-First Website Redesign
> Multilevel Marketers in Health and Wellness Continue Their Streak
> U.S. Direct Selling Industry Study Reveals 13.9% Growth in 2020
> The Vorwerk Group Reports 8.6% Sales Growth in 2020, Reaches EUR 3.2 Billion
> The Lessons Avon Learned from Joining TikTok

Most-Read Article in May on The World of Direct Selling:
Working Through a World of Misinformation – Alan Luce (1945 – 2021)

> ACN Reaches Agreement to Acquire Kynect (formerly Stream)
> Now Worth $1 Billion, Beautycounter Aims to Take Big Leap
> doTERRA Expands in Southeast Asia with Thailand Opening
> Door to Door, But Digital: Avon CEO on How a Historic Firm Gets with the Times
> Natura &Co Launches Investment Firm, Fable
> German Direct Seller LR Health & Beauty Readies Asia Foray – from Korea
> Tupperware-Style Retail in UK Smashes GBP1 Billion in 2020
> TINA.Org Lobbies FTC to Use Penalty Offense Authority Against Direct Sellers

Most-Read Article in June on The World of Direct Selling:
New Data Reveals Canadian Direct Selling Grew Significantly in 2020 – Peter Maddox

> WFDSA Announces 2020 Global Direct Selling Statistics
> L’Occitane’s Direct Selling Business LimeLife Is Its Fastest-Growing Brand
> More Trouble for Embattled Rodan + Fields: Its Insurer Is Suing
> Market America | SHOP.COM Partners with Verb to Launch SHOP LIVE
> Direct Sales Industry Legend Alan Luce Passed Away at the Age of 75
> Camelle Kent Named Chief Executive Officer of Thirty-One Gifts
> Longaberger Gathering Celebrates Brand’s Relaunch
> PM-International Expands into the United Kingdom

Most-Read Article in July on The World of Direct Selling:
Fulfilling Your Orders Should Be Like Turning the Light On – Doug Finnie

> Herbalife Reports $1.6 Billion Sales, Double-Digit Growth for Fourth Straight Quarter
> Francois Renard Joins Amway as Chief Marketing Officer
> Natura &Co Reports 36% Sales Growth in the Second Quarter
> Rodan + Fields Welcomes New Chief Global Sales Officer and Chief Marketing Officer
> Amazon Unveils Trailer for ‘LuLaRich’, Investigative Docuseries About LuLaRoe
> Rex Maughan, Founder of Forever Living Products Passes Away
> How Dan Chard Healed Medifast, the Company That Helps Thousands Feel Better
> Neora Celebrates A Decade of Making People Better

Most-Read Article in August on The World of Direct Selling:
5 Tips to Improve Productivity and Retention – Daryl Wurzbacher

> Amare Global Announces Jared Turner as CEO
> Belcorp Digitally Transforms their Consumer Shopping Experience
> Pampered Chef Launches ‘Table’, a First-of-Its-Kind Virtual Party Platform
> Beauty Brands Opt for Multipart Livestreaming
> Turkish Direct Seller Farmasi Introduces Sleek Makeover with Plans for North America
> Avon Revamps Digital Sales Model as Clicks Replace Calls
> L’Occitane Launches Social Selling Platform “MyL’Occitane”
> Tupperware to Set Up 1,000 Retail Stores in India in Five Years
> U.S. Direct Selling Association Issues Statement on “LuLaRich”

Most-Read Article in September on The World of Direct Selling:
3 Easy Ways Every Direct Seller Can Start Cranking Out More Videos​ – Clark Diemer

> Avon Opens First Flagship Store in China
> FTC Puts Hundreds of Businesses on Notice
> Natura &Co: Environmental and Social Impact “The Next Chapter” for Cosmetics
> People, Culture and Their Safety Is of Prime Importance to Oriflame
> Is Younique Going Out of Business? Not Yet, Despite Challenges
> Tupperware Sells Its House of Fuller Beauty Business in Mexico
> Is Direct Selling the Answer to Women Empowerment in Africa?
> Plexus Promotes Gene Tipps to President of Global Operations
> Mary Kay Rolls Out Beauty App for Skin Care, Makeup, Fragrance and More
> To Be More Sustainable, Beauty’s Biggest Companies Are Teaming Up

Most-Read Article in October on The World of Direct Selling:
Trust and Communication: The Foundation of Success in Direct Sales – Brett Duncan

> US Direct Selling Association Announces 2021 Award Winners and 25 Largest Companies
> Herbalife’s Strong Q3 Results Good Sign for Continued Demand for Supplements
> Amelia Warren, Epicure’s CEO Named One of Canada’s Top 40 Under 40 for 2021
> PM-International Announces Plans for Launches in Americas, Asia and Africa
> ASEA Announces Changes to Its Exective Team
> Seldia (The European Direct Selling Association) Elects New President and  Directors
> Longaberger Is Transforming Itself into the Largest Marketplace for Artisans
> India’s Direct Selling Market and the Pandemic: What Lies Ahead?

Most-Read Article in November on The World of Direct Selling:
Direct Sellers – How Much Did They Earn Last Year? – Hakki Ozmorali

> Amway CEO Milind Pant: “Online Is the Best Thing That Happened to Our Industry”
> Newsweek: Tupperware Is One of America’s Most Responsible Companies
> Medifast Named to FORTUNE’s Fastest-Growing Companies List for a Third Straight Year
> Nature’s Sunshine Co-Founder Gene Hughes Passes Away at the Age of 91
> CEO of QNET: People Defaming QNET Have Not Investigated the Realities
> Cosmetify’s Hottest Beauty Brands of 2021 Ranking
> Scentsy Hits $1 Billion Revenue in 2021
> doTERRA CEO David Stirling Steps Down, Corey Lindley Appointed as Successor

Most-Read Article in December on The World of Direct Selling:
Need to Pivot to a Customer Focus? Here’s How – Nancy Tobler

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The post News Round-Up of 2021 appeared first on The World of Direct Selling.

I wanted to find out how some of the prominent figures of the global direct sales industry view next year:

“What will be the most important issue, whether it be an opportunity or a threat, in the direct selling industry that will need a closer focus Next Year?”, I asked.

Their responses constituted a two-part article and I shared the first group’s comments in the first part. This week’s article comprises seven different insights. Feel free to add your comments at the end.

Dan Jensen, Compensation Plan Specialist, Founder of Dan Jensen Consulting, 

“Things that do not change will remain the same… Never before in our industry has the need for improvement been so intense as we are forced to question traditional thinking. 2022 will be a wonderful year to think out of the box and ‘up our game’. I see a greater emphasis on customer acquisition, customer centered pricing strategies, more companies leading with unique product stories and fewer leading primarily with opportunity. These strategies are driving growth today and will continue to do so. Social media technologies and adoption will continue to improve. It will be a great year for our amazing industry.”

Robert Kreklewetz, Founding Partner of Millar Kreklewetz

“As we break out of the COVID haze that has slowed most of our economy and lives, our biggest threat will be intransigence. That is, a collective refusal to breakout of COVID-thinking (and frankly, COVID-panic). For many – and particularly in government – COVID has become a convenient excuse for restricting individual freedoms! But there is no reason now for border restrictions. And little reason for shutting down businesses, or reducing capacities. (For pro-vaxers, the COVID vaccines work! For anti-vaxers, they are unnecessary!) Either way, let’s get moving and get open! If we can bust out of the COVID-panic and get back to ‘life before COVID’, the sky is the limit for everyone, and for direct selling specifically!”

Brent Kugler, Partner at Scheef & Stone, LLP

“Companies in the U.S. face new regulatory uncertainty in 2022. After the Supreme Court’s unanimous decision in AMG Capital Management, the FTC adopted a new strategy utilizing the Penalty Enforcement Authority. In October 2021, FTC sent identical ‘notice of penalty offense’ letters to hundreds of MLM companies. These letters rely on decades-old FTC determinations of what constitutes an unfair or deceptive practice and are a statutory prerequisite to FTC seeking civil penalties of up to $43K per violation. Notably, the letters do not identify any specific conduct by a recipient company that the FTC views as illegal. This new strategy is problematic because it does not provide fair notice of alleged violations or due process before subjecting a company to significant civil penalties. It remains to be seen to what extent the FTC will rely on this new strategy but one thing is clear: The U.S. regulatory environment remains hostile towards the MLM industry.”

Peter Maddox, President of the Direct Sellers Association of Canada

“I see two important and related issues that will be central to the channel in 2022. Firstly, direct selling will continue to be an increasingly technology-driven business. The companies that will have the most success in 2022 and beyond are those that find optimal ways to marry the latest technology with direct selling’s unique feature, personal relationships. Related to this, a second major trend is the challenge of managing the exponential growth of messages that technology creates. With growing scrutiny from regulators and media, it is incredibly important that sales consultants, companies, suppliers and industry groups, like the DSA, work together to tell the true and positive story of the channel, no exaggeration necessary.”

Kevin Thompson, Partner and Co-Founder of Thompson Burton

“In 2022, we are going to see the Federal Trade Commission re-engage with the industry and test out its new toy. They recently resurrected the ‘Penalty Offense Authority’ that they intend on using to punish companies that they believe deliver false and misleading income claims to the public. Since we have yet to see the FTC use this approach, it’s largely unknown what these enforcement actions will look like. We are going to learn a lot more in 2022. Companies, sensing the change in the tide, will take compliance monitoring more seriously.”

Terrel Transtrum, President and Founder of ServiceQuest

“The supreme opportunity in the coming year will be found in the fundamental purpose of business: To create and keep a customer (Peter Drucker, 1909-2005). With the customer at the center of the direct sales model, distributors are more successful in finding and keeping customers, regulators move to greener pastures, and shareholder value skyrockets. The customer service imperative is next year’s frontier to conquer.”

Daryl Wurzbacher, CEO of ByDesign Technologies

“Data from Forbes shows 40% of employees from large companies would rather quit than return to the office and lose their flexibility. As the appeal of Direct Selling expands with affiliate and influencer marketing models, it’s going to be even more critical to focus on providing a truly turn-key experience for this new audience. In the past, highly motivated reps sought and secured their own tools for live video, social selling, and in-person selling. To win with this expanding audience, Corporate will need to identify the tools that make sense for their specific culture and product; and integrate them to make it easy to use for new inexperienced reps to sell products to anyone anywhere.”

We send our appreciation to everyone who contributed to this two-part article.

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The post In 100 Words: Looking Ahead to 2022 (Part 2) appeared first on The World of Direct Selling.

The Awards honour and recognize individuals and organizations for their outstanding contributions to the direct selling industry in Canada.

“Each individual and organization that received an award in 2021 is a fantastic representative of Canada’s direct selling industry,” said Peter Maddox, President of the DSA. “They help to enrich the lives of many Canadians through their dedication and passion, and we are inspired by their many accomplishments.”

The DSA Canada Award winners for 2021 include:

IVAN P. PHELAN AWARD: Tracie Kenzora, General Manager, USANA Canada
As the industry’s highest personal recognition, the Ivan P. Phelan Award was presented to Tracy Kenzora, who has made a significant contribution to the advancement of the direct selling industry in Canada, through her service, hard work and passion.

MARK OF DISTINCTION AWARD: Kristen McBride, Independent Sales Director, Mary Kay, and Seta Der Artinian and Hubert Krause, Executive Diamond Directors, USANA
This award recognizes independent sales consultants (ISCs) who have made a profound difference in the community by helping others and positively impacting society.

COMMUNITY SPIRIT AWARD: Courtney Waterfall, Stylist, She’s Got Leggz
This award honours an independent sales consultant (ISC) whose charitable efforts have made a difference in the lives of others.

INDUSTRY INNOVATION AWARD – Mary Kay (for Suite 13)
This award recognizes the implementation of a program or service unique to the Canadian direct-selling industry by a DSA member company.

MAKING A DIFFERENCE AWARD: Flourish Arbonne Foundation
This award honours companies whose charitable and community service efforts have made a profound difference in the lives of Canadians.

PARTNERSHIP IN PROGRESS AWARD: PayQuicker
This award was presented to supplier member company PayQuicker, who provide excellent service to numerous active member companies, making a measurable impact and contribution to their businesses.

DSEF CIRCLE OF DISTINCTION AWARD: Darren Sketchley, President, FORMCOR
This award recognizes Darren Sketchley as an individual who has devoted significant years of service, and has made considerable contributions to the Direct Selling Education Foundation (DSEF) and the direct selling industry.

DISTINGUISHED SERVICE AWARD: Lynda Rose, General Manager, Mary Kay
This award recognizes a DSA Canada Board of Director or committee member for their participation and leadership. Lynda Rose is a worthy recipient.

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The post 2021 DSA Canada Award Winners Announced appeared first on The World of Direct Selling.

New Data Reveals Canadian Direct Selling Grew Significantly in 2020 

The recent release of Canadian industry statistics for 2020 has brought good news. What a difference 15 months makes!

In March last year, there were so many unanswered questions about the direct selling industry and the world in general. So, to be at a point in mid-2021, where we are able to publish data showing record Canadian sales growth in 2020, seems a little surreal. In fact, retail sales for direct selling companies in 2020 were up 26% over 2019 numbers, which in retrospect is hard to believe.

In mid-March of 2020, international flights were grinding to a halt, the NBA had just cancelled games, and governments were scrambling to understand what was happening and how to deal with it. Similarly, the challenges for direct sellers seemed equally large and potentially existential. Among the questions many of our members asked were:

• Will my distribution center be allowed to stay open?
• Will my consultants be interested in moving to fully online selling?
• Will I be able to source raw materials from overseas?
• Without incentive trips and conferences, how will we connect with and reward people?
• Will consultants be drawn to government support programs, instead of entrepreneurial activities?
• Will my staff do any work at home?

And most importantly:

• Will my company even be able to keep its doors open for the next six or twelve months?

As the President of DSA Canada, I heard all of these questions and didn’t necessarily have all the answers. But through the hard work of our members, many calls with government officials, support from industry suppliers, and some aspects of the pandemic that actually favoured our business model, we have arrived at today.

So, here are some of our topline numbers from our 2020 industry survey:

• Retail sales grew 26% over 2019, to C$4.15 billion. 2020 was the largest ever year, in dollar value, for direct sellers in this country. This growth is significant, and also compares favourably with growth in other direct selling markets.

• The number of Canadians signed up as independent sales consultants rose to 1.39 million, up 20% over 2019. This total number is comprised of 5% full-time business builders (or those working 30 or more hours per week), 70% part-time business builders (or those working less than 30 hours per week or more) and 25% other independent representatives (or those who are not active).

• The percentage of the independent sales force in Canada who are women rose by 2%, to 84% overall. A small rise, but significant. Perhaps this is a sign of the “she-cession” that has been discussed as one of the pandemic impacts. Hopefully, it is also a part of the “she-covery”, which is helping to lead us out of our challenges.

It is also interesting to consider one other part of the industry that is evolving at this point, that being the existence of preferred customer programs. As of this survey, just over half of DSA member organisations, or 53%, have a preferred customer program, and this accounts for 11% of their sales. This will likely be an area where we continue to see growth in future years.

Why did sales spike like this? I have a few thoughts:

• Consumers wanting to shop safely from home; to buy products that were important to them during a pandemic (such as healthcare products and kitchenware); and to support the entrepreneurial business of their families, friends and social circle;

• People looking for additional earnings opportunities; perhaps rethinking their careers; and spending more time working on their existing direct selling business; and

• Direct selling companies having effective and established digital platforms for carrying out commerce (or at least being able to speed up an existing digital transition)

I recognize that not all companies experienced the same level of growth and many did struggle with significant pandemic-related challenges, but overall, the industry had a phenomenal year. The next question many of our members are asking is, can these sales numbers be maintained and can industry participants continue to post year-over-year growth? I know that this is something that direct selling companies are working on right now, by building connections with newer independent consultants, altering product selections to suit our new reality, finding innovative ways to recognize success and by diving headlong into the new digital reality.

DSA Canada will continue to work with members and stakeholders to set the table for success. We encourage all direct selling companies to participate fully in industry research efforts, as with verifiable numbers comes advocacy power.

I can’t wait until this time next year, when we release our 2021 numbers. Then we will have an even better understanding of how this crazy time in our lives has impacted direct selling in Canada.

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The post New Data Reveals Canadian Direct Selling Grew Significantly in 2020 appeared first on The World of Direct Selling.