The Amazing World of Direct Selling Terrel Transtrum ServiceQuest.

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Presentation transcript:

The Amazing World of Direct Selling Terrel Transtrum ServiceQuest

Direct Selling’s Billion Dollar Markets

Direct Selling’s Billion Dollar Companies (Top Ten)

Top 100

Top 5 Markets Percent of Global Market 1. U.S.  20% 2. Japan  16% 3. China  11% 4. Korea  8% 5. Brazil  8%

USA

A Tale of 3 Companies Melaleuca o Launched 1983 o 2013 Revenues: $1.3 billion o Personal care, home care, nutrition o 10 Years to $200 million o 25 Years to $1 billion Revenue (in Millions)

A Tale of 3 Companies Thirty-One Gifts o Launched 2004 o 2013 Revenues: $763 million (3 Years to $200 million) o Women’s Accessories Revenue (in Millions)

A Tale of 3 Companies Nerium o Launched 2011 o 2013 Revenues: $219 million (2 Years to $200 million) o Anti-aging facial formula (1 product) Revenue (in Millions)

Pathway to $1 Billion

Why does Direct Selling work? Great model for owners o Reasonable cost of startup / margins o Cash production / No receivables o Relationships and social networks o Marketing and distribution channels o Consumption and Capitalism Great model for distributors / entrepreneurs o Leveraged startup versus potential o Desire for gain, autonomy, flexibility, income o High potential + Tax benefits o Entrepreneurial spirit within o Higher needs (recognition, belonging)