On DSN’s 20th anniversary, we asked industry leaders and legends to share how past evolutions and current opportunities are shaping the future of the industry.

In 2004, Stuart Johnson, now CEO of Direct Selling Partners, Direct Selling News (DSN) and NOW Tech, held a clear vision: to create a monthly publication that offered timely and useful information to direct selling executives. Today, that vision has expanded beyond a print publication to include podcasts, workshops, executive forums and informative in-person events featuring the biggest names in the industry. The format and appearance of the magazine has changed throughout the years, but the original foundation of Johnson’s vision remains unchanged.

As we celebrate 20 years of innovations and insights, we take a look back on a few of DSN’s most important milestones. But even before DSN’s debut in 2004, Founder and CEO Stuart Johnson had an illustrious career influencing the channel. He founded VideoDirect in 1987, which ultimately became VideoPlus and then SUCCESS Partners. He launched SUCCESS Partners University, an education conference for direct selling corporate executives in 2002.

DSN, now in its twentieth year of publication, continues to be the go-to resource for well-researched global industry news, expert insights and interviews with the founders and executive leaders behind the channel’s legacy companies and rising stars.

Deborah K. Heisz, now Neora Co-CEO, and John Fleming, a DSN Legend and former Avon executive, were two of the original staff members tasked with assembling the publication’s flagship print issues.

“At the time, there was no real periodical resource for legitimate news and information for people who were leading and operating direct selling companies,” Heisz said. “People were hungry for a trade journal they could rely on, and we received feedback from dozens—if not hundreds—of executives and owners across the industry letting us know we had truly filled a need.”

From a simple eight-page newsletter to the robust, global magazine it is today, DSN remains committed to supporting, informing, connecting and challenging direct selling executives across the US and around the world.

“I planned to stay for two to three years, but I remained Publisher and Editor in Chief for nine,” Fleming said. “We started by building something relevant and, in many ways, it has become far more relevant than we ever envisioned.”

Twenty Years of Industry-Changing Trends

The past two decades have been host to some of the most dramatic shifts in the channel, including the proliferation of the internet; the broad adoption of mobile devices; and pandemic-induced social distancing that forever changed the way shoppers buy products and interact with brands. With each paradigm shift, the direct selling industry learned to evolve and adapt.

We asked these executives: In the last 20 years, what changes have had the greatest impact on the industry?

“The vast majority of companies started in the industry by sharing products at home parties. Now, we’re sharing the opportunity virtually and across the globe without concern for physical barriers. Digital platforms forced all of us to adjust, while opening up a world of opportunity.”—Mark Pentecost / It Works! Founder and Chairman

“The operating landscape has permanently changed. Millennials want their own gig, but the average direct-to-consumer venture lacks the ability to scale up the way a direct selling company can with sales organizations.”—Rick Goings / DSN Legend, Chairman Emeritus and former CEO of Tupperware Brands

“Twenty years ago, signups and applications required a stack of paper. Today, it’s all done digitally. Technology has enabled much more efficient point-of-sale transactions and created the ability to connect and communicate with more people.”—John Addison / Addison Leadership Group; Board Member for Primerica, LegalShield; Senior Advisor to Utility Warehouse

“The digital revolution of the early 2000s felt, at the time, like a once-in-a-lifetime revolution, but it proved to be just the beginning of an avalanche of technology and business models that would profoundly change the world around us. Through all of these changes–the rise of social media, gig platforms and AI, and the challenges of the pandemic—we have demonstrated that, as a channel, we can adapt and evolve quickly.—John Parker / Amway Chief Sales Officer

“Technology has been the biggest gamechanger for us. I believe you have to have a robust strategy in both automation and face-to-face interactions for success in today’s marketplace. It is a delicate balance. Simplicity and speed can be the difference between success and failure.”—Kevin Guest / USANA Executive Chairman

The Next 20 Years

Lessons from the past 20 years have illustrated that change is not only inevitable; it is a critical part of healthy evolution. It was by welcoming social media, ecommerce and a digital-first footprint that the industry was prepared to not only survive but thrive during the pandemic. And as industry leaders look to the horizon, it will be that same bold approach and nimble, open mindset that will prepare the next generation of direct sellers for success.

We asked these executives: What actions should leaders be taking now to prepare for the future?

“We need to remember what got us here. We have always been an industry that focuses on building people, and then those people go on to build our business. We can ensure our future success by remembering that the most valuable asset any direct selling company has is our loyal, hardworking distributor field!—Rudy Revak / DSN Legend, Founder of Symmetry and Xyngular

“As technology continues to create opportunities and disruptions, I believe the future of direct selling will have to be centered around community and the social dynamic in our businesses. Great products, compelling income opportunities, competitive customer and representative experiences will continue to be basic requirements, but the community and social experiences we offer can be real differentiators.—John Parker / Amway Chief Sales Officer

“We empower women and others to work a meaningful business in pockets of their day. That’s the best part of direct selling. That’s how we win. We must continue to create and emphasize this opportunity—the side hustle is always in style.—Sarah Shadonix / Scout & Cellar Founder and CEO

“Leaders in the channel should plan for growth. Those who stay current by investing in the technologies of today and tomorrow—including new ways to purchase, improve speed to customer and product value—will thrive.—Joni Rogers-Kante / SeneGence Founder and CEO

“Direct selling will continue to thrive where the exchange of value is ongoing and supportive—like in following a nutrition or fitness plan—because of the importance of accountability to achieve success, but we need to acknowledge that affiliate marketing will replace network marketing where the relationship is purely transactional.—Carl Daikeler / BODi CEO

“Personalization and integration of AI in customer service are trends that we find exciting and that we are integrating into our strategy. Direct selling is also very unique; we never work solely online or offline. The future is hybrid, and we are relying on hybrid solutions in our strategy and development to be active pioneers in our industry.—Rolf Sorg / PM-International Founder and CEO

Creating a Lasting Impact

DSN has always strived to stay on the cutting edge of direct selling trends, news and thought leadership through its educational initiatives and events. We asked these executives: How has DSN’s coverage and perspective impacted your businesses over the past two decades?

“DSN has challenged the way I think about our business and the future of our channel. It helps me sift through the hype and understand the real innovations and opportunities that will shape our future. I am so grateful for the connections and insights that DSN has brought to me and our industry.”—John Parker / Amway Chief Sales Officer

“What DSN provides is something critical for the industry: a collegial way to share best practices with one another. One of the great things about the direct selling industry is people’s willingness to share both their successes and failures. DSN gives executives a way to learn and grow their businesses.—John Addison / Addison Leadership Group CEO; Board Member for Primerica, LegalShield; Senior Advisor to Utility Warehouse

“DSN is a powerful source of knowledge, allowing companies to learn from each other and grow. DSN has always offered great insights and innovative ideas. When there can be criticism of our industry, it’s important to have a platform like DSN to speak of the positive impact we’re having around the world.—Mark Pentecost / It Works! Founder and Chairman

“DSN is an important forum for keeping abreast to fast changing forces and how others are approaching and adapting to remain vital and resilient.—Rick Goings / DSN Legend, Chairman Emeritus and former CEO of Tupperware Brands

“The DSN articles and DSU events have been an amazing asset to the corporate leaders of this channel. They both create opportunities to gain valuable information, ideas and strategies, and they give guidance during changing and challenging times.—Rudy Revak / DSN Legend, Founder of Symmetry and Xyngular

“DSN continues to be an important voice and resource for steering the direction of this method of sales and marketing. It’s easy for institutions and regulators to lose sight of the individuals who legitimately use direct selling as their livelihood. DSN helps us all remember who is most important in this industry, and it’s not the company—it’s the distributors and customers.—Carl Daikeler / BODi CEO

“When DSN started, I remember thinking: ‘Finally! One place to get timely, reliable and insightful information on other direct sellers.’ Before DSN, people had to constantly scan multiple sources. It was very easy to miss company announcements and releases because so many direct sellers were private or just starting out.—David Holl / Mary Kay Chairman and former CEO

“DSN is my ‘go-to manual’ when I have questions; seek insight; look for surveys; or simply look for inspiration when I need it. I never throw away a publication, as I know I’ll need to refer to it one way or another. It helps me stay informed and current with what is going on in our channel.”—Joni Rogers-Kante / SeneGence Founder and CEO

“The community gains so much strength when we all work together, and DSN makes that happen. They are invaluable to the ongoing growth and professionalism of this industry, and I am so grateful for their work.”—Michele Gay / LimeLife by Alcone
Co-Founder & Chairwoman

“The coverage of the direct selling landscape in DSN is like no other, providing a clear and nuanced view into an industry that thrives on personal connections and innovative strategies. The articles are a testament to the precise research and commitment to detail that the team embodies, making Direct Selling News an invaluable resource for anyone involved in or interested in the dynamic world of direct sales. It’s journalism that not only informs but enriches and compliments the conversation around this unique sector of commerce.—Rolf Sorg / PM-International Founder & CEO

Building a Legacy Meant to Last

Reflecting on the past 20 years, the DSN team continues to build and plan for an even brighter future with more events, global coverage, expanding platforms and an unflinching grasp of Johnson’s original vision. The next 20 years will expand on that relevancy and commitment, providing more insights, developing broader resources and presenting more opportunities to support the executives working diligently to strengthen and scale the one-of-a-kind entrepreneurial possibilities found within the direct selling channel. 

From the January/February 2024 issue of Direct Selling News magazine.

The post Cheers to 20! first appeared on Direct Selling News.

Business as usual was forever changed in 2020. The pandemic, with its supply chain nightmares, quiet quitting epidemic and what felt like endless uncertainties, shifted many workplace paradigms seemingly overnight. In the three years since, it has been common for even the most well-known brands to flounder amid the challenging economic environment.

But these circumstances have also revealed rising stars and leaders within the direct selling industry. These top brands proved through their pioneering and strategic responses how to build and maintain momentum in the midst of circumstances that no executive had ever faced before, and their examples will now play an influential role in the decisions that shape the industry moving forward.

DSN looked at the approaches, behaviors and trajectories of 17 companies (including four publicly traded ones) within the channel who experienced three consecutive years of revenue increases—from 2020 to 2022—through the pandemic and beyond, to discover what the industry can learn from these trailblazers.

Pandemic Puppies and Other Unique Growth Opportunities

The pandemic was a boon for some industries, like suppliers of hand sanitizers and disinfectants but a dramatic bust for others, like hospitality providers. For direct selling companies who built momentum during this time, discovering the unique needs created by living life in a pandemic, and then wielding the pre-existing advantages of the direct selling model, was a major force for maintaining stability and capitalizing on untapped revenue potential.

“For many businesses, the effects of COVID were headwinds that shut them out of business,” said Roger Morgan, pawTree Chief Executive Officer. “For pawTree, the effects of COVID were tailwinds. There were definitely a lot of people who got new puppies, but people were also home more, spending time with their pets and being more attentive to the issues that our products could address. On top of that, we had already moved away from in-person events as our predominant way of sharing and selling, so our field had the tools and habits they needed in place. And one of our greatest tailwinds was that we are an online-sales-only company. That was a well-established trend before COVID, so when people shied away from retail and buying off of physical shelves, we weren’t negatively impacted by that weakened distribution channel.”

Building Trust through Transparency

Uncertainty was the predominant theme in the early months of the pandemic. Where to source materials to maintain inventory; how to navigate international COVID regulations; and when it would be wise to come back to the office were all questions without clear answers in the beginning. Distributors and customers alike needed to be presented with a clear vision for what life could be like on the other side of these extraordinary obstacles, while also receiving assurance that their company had their best interests at heart.

For Amare Global, leaning into compassion and kindness was the first step to creating a safe environment for its team members and has also played a key role in integrating Kyäni, which it acquired in September 2022, into its legacy of bringing mental wellness to the world.

“Our company name and primary core value is love,” said Jared Turner, Amare Global Chief Executive Officer. “At Amare, we want our corporate employees and field organizations to feel loved, inspired and valued. We are focused on operationalizing love throughout our organization to create a community and culture of belonging and support.”

Without a lengthy shared history to fall back on, reassuring the field and customers was even more challenging for young companies, but BELLAME saw it as an opportunity and a way to build transparency and trust from the ground up.

“When COVID hit, we were only 19 months old, so we were still new to our industry, our vendors and our field,” said Melissa Thompson, BELLAME Founder and Chief Executive Officer. “The biggest corporations were closing their doors all around us, so we had a lot to prove. The challenge of uncertainty, however, became an optimal opportunity to build trust within all facets of our business. Transparency became the antidote to it all. From transportation delays to global supply chain issues, we were completely open at every turn. Doing so allowed us to build trust, which has brought amazing opportunities our way.”

Transparency and a continual feedback cycle have been essential components of inGroup’s phenomenal growth. As Chief Operating Officer Anthony Varvaro explained, “Our year-over-year growth is due to a subscription model that has a high perceived and real value to our Members. Our existing Members continue their memberships and new Members continually join. We continually refine the membership and partnership opportunities and incorporate feedback that we take in from our Members and Partners to give more value and more earning opportunities, resulting both top-line and bottom-line growth.”

Building trust with customers has helped Utility Warehouse experience exponential revenue increases, the company ranked #10 on the DSN Global 100 list this year.

“Our partners are growing more and more confident in what we are offering and they are recommending UW to their friends and families in increasing numbers,” said Stuart Burnett, Utility Warehouse Co-CEO. “By doing so, they are earning meaningful additional incomes that are helping them meet the growing pressures on their personal finances.”

Learning to Love Remote Work Culture

Remote work seemed like a fantasy for employees and a nightmare for employers pre-2020. Today, office culture has shifted. Forced closures and social distancing measures gave executives a crash course in remote management, but those who rose to the top learned to not only accept, but also embrace and expand upon this new reality.

“Although our corporate team works remotely from across the globe, I feel more connected with them than I did when I had teams report to an office daily,” Thompson said. “It is amazing how efficient and productive our workflow has become.”

Surprisingly, distance has drawn the leaders of these growing companies closer. Morgan says the efficacy and happiness of his pawTree team can’t be attributed to one specific action, but rather a wide range of efforts to make sure they are appreciated and well-equipped. They’ve been innovative and thoughtful in their approach including inviting the management team to participate in incentive trips; giving raises to make sure team members are appropriately compensated; and ensuring a good awareness of the division of responsibilities across departments.

Digital-First Is Key

It can be easy to forget what it was like in 2020, before a pandemic-induced virtual world took over the sales and marketing approach for most companies. The brands who stood out among their peers were those that were already leaning heavily into creating a digital experience for their customers and distributors.

“Our brand was born through an audience of online followers long before anyone knew we were creating a single product,” Thompson said. “When the pandemic locked us all into a purely digital world in 2020, it was a space that we were quite comfortable inside. Having custom built our own digital platform, commission engine and back office, we were able to put our energy and resources into creating sophisticated marketing tools that made sharing our brand easy.”

Consumers and distributors have accepted the use of digital tools and an online-only business model at a rapidly accelerated pace since 2020. The companies that saw revenue momentum used this opportunity to not only double down on their existing digital infrastructure, but also scale new innovations, like PM-International, who implemented PM DirectCash, which pays online sales income immediately to distributors; and FASTer Way to Fat Loss and eXp Realty, both of whom tapped into powerful lead generators.

“eXp Realty is building on the momentum of the past several years by ensuring we always remain on the cutting-edge of technology so we can continue to deliver on our agent value proposition,” said Michael Valdes, eXp Realty Chief Growth Officer. “We have a robust set of resources that help drive agent success at each step of the real estate journey while simplifying their business with our future-focused technology. Today, eXp continues to be an attractive model for leading teams and independent brokerages because we solve for their pain points. And we offer better compensation options, including our competitive split, cap and equity opportunities.”

The Rise of the Enhanced Affiliate Model

Looking to the future, many of these leading companies are deciding how they can prepare now for the next big wave of change that waits on the horizon. For pawTree, that means taking a fresh look at its own mode of operation and considering ways it can outsmart competitors from outside of the industry that are eager to encroach on its market share.

“Complacency is the kiss of death,” Morgan said. “You’re always tweaking and turning dials, continuing to stay in a state of hunger for learning and understanding the consumer and the seller. All of that has pointed us to an affiliate sales program, which we’ll be launching in the next year.”

Switching to an affiliate-based model has become a pattern that many industry powerhouses have already begun to adopt. For them, it’s a way to give field leaders the marketing campaigns and tools that provide the financial benefits of a network marketing opportunity without sacrificing the community of support that the channel is known for.

“This affiliate model movement sparked with the onset of the pandemic. However, it has continued to evolve and gain momentum over the past three years,” Thompson said. “Pioneering a new business model is an ever-evolving movement—one that we believe will not only maintain our momentum in the years to come, but that of our entire industry.”

And at FASTer Way to Fat Loss, Founder and CEO Amanda Tress credits the affiliate model with her company’s continued success. And that success is impressive. Q1 2023 was the company’s best since launching in January of 2016, and March was their biggest month ever—they paid 46 percent more in commissions to affiliates in March than they did in the previous month of February.

FASTer Way offers two tracks in their affiliate program: Certified Coaches and Ambassadors. The Ambassadors are primarily bloggers and social media influencers who simply refer the program to their followers and receive a one-time commission for their efforts. Certified Coaches go through an in-depth FASTer Way certification course that equips them to run their own FASTer Way businesses, accompanying their clients throughout their journey. They therefore have multiple opportunities to earn on each client.

Whatever path an affiliate chooses, Tress recognizes the importance of nurturing the relationship. “Right after launch I was so focused on the products and the client experience, I realized I had been neglecting our Ambassadors and Certified Coaches. The strength of that relationship is key. We are always looking into ideas for incentives and trips and retreats because they are such an important component of our mutual continued success.”

Preparing for the Next Big Thing

The last three years have been a lesson in flexibility. The companies that have continued to succeed have proven how to stay true to the industry’s DNA, while being willing to explore new and innovative ways to serve their customers and distributors. No matter the compensation plan or sales model, this blending of the old with the new has served as a way for brands to stay nimble and relevant as well as served as guardrails for those at the helm who have masterfully led their companies to growth during a season of aggressive change.

“Digitization will bring many simplifications and savings in handling day-to-day business and will make it possible to reach masses of people and work without limits,” said Wolfgang Klaer, PM-International General Manager International Sales and Support. “But virtual customer assistance can never and will never take the place of a direct customer contact. Direct sales is a person-to-person business. This will always remain the case, and it should.”

The Secret Sauce

Eleven industry thought leaders share their go-to revenue growth strategies.

“We’ve placed a substantial focus on driving stability in customer retention rates, and with customer satisfaction metrics at all-time highs, we’ve seen retention return to and hold at normal levels. We continue to take steps to mitigate cost pressures, drive efficiency and build financial resilience into our model. We’re already seeing some of the impact of that work begin to play out, and while it will take some time to work through our business cadence, we remain highly confident in both the long-term efficacy of our model and our prospects for stable and sustainable growth.” —Dan Chard, Medifast Chairman & Chief Executive Officer

“I think this comes down to investment and innovation—in product development and how we connect with people; the quality and surety in our supply chain; and great analytics to support decision making. A key part of our success is our commitment to and involvement with up-to-date health and nutrition research. This provides a solid foundation for our new product development and ensures that we are producing the highest quality health and nutritional products available in the world today.
—Graeme Clegg / New Image Chairman & Founder

“It was precisely in the pandemic that the strength of PM-International was revealed. While other companies suffered major setbacks or even had to close their doors, PM-International quickly adapted and played to its own strengths: the ability to make quick decisions as a family-owned company; enough financial cushion to easily buy up necessary raw materials; and an innovative nature which helped us adapt our communication tools at lightning speed.” —Wolfgang Klaer, PM-International General Manager International Sales and Support

“One of the questions we ask ourselves is ‘If you were going to launch a company to compete with your own brand, knowing what you know, what would you do?’ If you’re not willing to act on that answer and make exciting changes that might rock the boat, someone else will.” —Roger Morgan, pawTree Chief Executive Officer

“Our growth didn’t come without challenges. We were able to prosper virtually when we were talking about our products and services, but we struggled to build relationships virtually. For us, returning to live events has brought a lot of energy and enthusiasm to the field and has been key to our continued growth.” —Don Thompson, Legal Shield President, Network Division

“Our innovative products and incredible earnings opportunity are beyond valuable, however, the key to our continued growth is rooted in the behavior of servant leadership. Even in our highly digital world, we are focused on serving our Brand Partners and building relationships. I personally host a Skype Chat, 7 days a week, with my top 65 leaders and sellers. Unscripted, regular live zooms for constant communication, transparency and collaboration. Without a doubt this is what fuels our growth.” —Melissa Thompson, BELLAME Beauty Inc. Chief Executive Officer and Founder

“The key drivers for our momentum since 2020 have been to prioritize and focus on as many interpersonal touchpoints as possible. We encouraged small gatherings and culture building events just to get people together. We rolled out our first in-person ACTIVZ Academies and ACTIVZ schools throughout our largest market, Mexico, which had a remarkable spill-over affect into our secondary markets. Focusing on building strong relationships throughout the field and especially with mid-level leaders on up, we’ve greatly benefitted from the unity that’s been created which is now taking our company into momentum.” —Ryan Thompson, Activz President and Co-Founder

“Amare is a true pioneer of the mental wellness movement, and we have an excellent team that is committed to providing clinically researched products that encourage a baseline of both physical and mental wellness and resilience. We are seeing the marketplace respond by rewarding the company with triple-digit growth. We operate in 50 countries worldwide, and believe people everywhere are seeking the solutions we offer. We have a goal of reaching one million homes within the next five years and are well on our way to achieving this milestone.” —Jared Turner, Amare Global Chief Executive Officer

“Our secret sauce is really our agent-centric model, which was designed to withstand varying market conditions. This uniquely positions us to continue investing in our future and iterating on our industry-leading agent value proposition. From the beginning, we have always believed that when you put the agent first, the rest will follow. And in our case, it truly has. It is why we continue to thrive when many of our competitors are not.” — Michael Valdes, eXp Realty Chief Growth Officer

“I would have to say our business model is our secret sauce. The model is continually adjusting itself to market conditions and provides the perfect balance of recurring and new revenue to guide it through all market conditions. It’s the business model that ensured inGroup made it through the COVID years with constant sales and has allowed it to leverage the recovery at a phenomenal rate. —Anthony Varvaro / InGroup Chief Operating Officer

“Our success in 2022 reflected the value of guidance that our sales force brings to middle-income families and the important role they play in encouraging clients to take action. For three consecutive years, Primerica has issued more than $100 billion in term life insurance face amount. And while inflation and market volatility created headwinds, our representatives successfully helped their clients invest $10 Billion in 2022 toward their future financial goals.” — Glenn Williams, Primerica Chief Executive Officer

Content updated from the July/August 2023 issue of Direct Selling News magazine.

The post Industry Superstars: 3 Consecutive Years of Growth first appeared on Direct Selling News.

I mean, how can you have a culture when you just got started?

Imagine two conversations. Both from people starting new companies.

In the first conversation, the new owner/leader was heard saying:

“After we launch, we will grow faster than any company in history. I expect us to be the next BILLION DOLLAR company.”

The second conversation went a bit differently.

“I know what our products have done for my family, and I want a lot more people to have that same experience. And I know we can extend that into helping communities where children are hungry.”

Both companies are the exact same age. Brand new companies. Great products. Similar compensation plan. Funded well.

Based on what you have read so far, is there any doubt that they have different cultures? Would you be attracted to one over the other?

The truth is, I’ve heard both of the previous statements uttered from new company leaders while doing the legwork to get up and running.

I’m sad to report that the next BILLION DOLLAR company didn’t make it past their first year.

The second company? Still around, nearly 15 years later.

But, you may ask, do those statements cause the death of the company or was the company just one of the normal percentage of casualties. Face it, most companies do not make it for a variety of reasons.

Of course, even the second, more altruistic group wants to make money. But money is a result of doing something bigger. Something more important.

Clearly, the second one had a vision to make an impact that went far beyond their own success. It’s a great example of why creating compelling Vision, Mission and Values statements are not just for established companies.

Knowing Who You Are

I believe that a strong set of statements provides the guideposts to help a young company become one of those “established” companies that we all look up to. They are the foundation to a culture that attracts and keeps people excited to do something special.

For example, Amway still abides by what they call their “Founders’ Fundamentals.”

FREEDOM, FAMILY, HOPE, REWARD.

Those four principles guided Amway through their early days and still guide them today. I suspect that, during the toughest times and the most critical moments where big decisions were made, they leaned on those principles to make the best decisions possible. Now, generations later, those words are still at the forefront of who they are.

There is amazing power in knowing what matters most and focusing on delivering on those elements.

Imagine the extraordinary challenges that Herbalife has faced over the last 40 years. And, they have come out of each major obstacle to become bigger and better than before. Yet, through it all, their core mission hasn’t changed. In short, their mission is “To change people’s lives through high-quality nutrition and a business opportunity.”

Why does all of this matter?

To some people, this all feels like fluffy words and phrases that make people feel better. Maybe it’s just an item on the launch list: “YES, we have vision, mission and values statements. Put it in the employee manual (when we have one), and let’s get to work.” Check!

Built to Last

The real question is whether you are using those words to build something special. Something that will stand the test of time. A company that people believe in and want to be a part of. A company we will write about 10-20+ years from now.

Do your products align with your purpose? For example, if your big mission in life is to provide a way for more people to live a healthy life, you wouldn’t be in the tobacco business—even if the profit potential was enormous.

Are you attracting and keeping people that love what you stand for?

Are your processes and systems designed to help you deliver on your promise?

I remember sitting in a room with a brand-new executive team and discussing their new company. Frankly, they had a terrible idea for a product/service to offer. They had a bad idea for how to market it. And although they came to us for help, we didn’t have a clue how to tell the story.

But, what they did have was a reason for existing that was HUGE and powerful. It meant something to these people. They wanted to make an impact that went far beyond the product or marketing idea.

As the meeting ended, we agreed they had challenges to overcome before we could help them. But, my colleague and I agreed that there was something about them that felt right. They were starting a business for a reason that most people don’t.

It was real.

It was honest.

Using their guiding principles, they went back to the drawing board and began to build a company with products that aligned with their mission. They changed their compensation idea and began to build a story that felt as honest as they were.

Bingo—they were on to something. They “got it” and were building something special.

Amazingly, here we are, nearly 15 years later, and the company is still around, doing what they promised. The same three core principles that forced them to reimagine the company before it began are still proudly posted on their website and discussed in every meeting they have with their field leaders. They also talk openly about them in meetings with their team at the home office.

They have an amazing, loyal staff that loves and supports the beliefs of the company.

They ARE their values.

They LIVE their founding principles.

Has it been easy? No way. But, when tough decisions were made, I know for a fact that they lean on their founding principles as guideposts.

The Right People, The Right Values

The principles that guide your company and leadership should either attract or discourage people to work with you. The old adage is to hire for culture/attitude and train for the job, and it actually works. I like to screen people to see if they are a “culture fit” above all. Of course, that person has to have a basic set of applicable skills and knowledge for the job. But someone who is overly trained and supremely qualified but DOES NOT FIT into your culture or doesn’t believe in your core principles may be the worst possible type of team member.

However, when you get it right and the person you hire “buys-in” to your principles and values, it is amazing. Those people stand out and help attract others who also “buy-in.” Momentum happens from the inside out. The field begins to see and understand who you are as a company. Those people who believe in you and your principles and values have a far greater chance of staying and succeeding with your company.

Like many of you, I could not work with people that don’t exhibit and live a set of principles that align with mine. And it doesn’t take long to know.

It’s the same when hiring someone to be on your staff. Be open about your guiding principles. Engage in discussions during the hiring process and try to ascertain their “fit” into the culture you are building. I have cut off an interview with a candidate within the first 5-10 minutes when it has become clear that we are not on the same page. I’ve apologized for seemingly wasting their time with an interview but also said that I didn’t want to waste any more of their time when it is already clear that this isn’t a good fit for them or the company.

The right fit is amazing. The wrong fit occupies way too much costly time and energy.

The culture of a company revolves around the core beliefs and principles that guide decisions throughout the organization.

Your Secret Weapon

If we look back at some of the most successful companies in our space, they have stayed true to their initial principles over their long history. What if Amway, Herbalife, Primerica or Mary Kay had changed their mind about who they are and what matters most to them? What would they be now? How big would they be? Would they still be around?

Fortunately for all of us in the channel, we will never have to answer those questions. They built their companies and made many leadership transitions and changes. And—through it all—stayed true to their vision, mission and values. They lead with sound principles and pass those on to new generations as they have grown.

More importantly, the values they represent and exhibit attract people who are attracted to them. It’s a powerful cycle and allows people to grow and even create a way for powerful succession planning.

Young companies are often strained to just get up and running and don’t often spend time defining these elements. “I will get to it later.”

After working with hundreds of companies, I’m convinced in the superpower that is a company’s values and core principles. It helps create a culture—from the beginning—that helps overcome obstacles and propels growth and success. It requires effort. It requires discipline. It requires hiring and firing to create a team with real alignment.

It’s hard. It takes soul-searching.

But, the effort is worth it.

Paul Adams has been involved in the direct selling channel for more than 30 years. Over the decades, he has worked with hundreds of companies and been a trusted advisor in boardrooms with countless executive teams. From corporate giants to pre-startup, Paul has helped companies invent, reinvent and solidify their messaging, strategy and execution.

The post Culture: The Superpower of Truly Great Companies first appeared on Direct Selling News.

If a founder’s belief in a hero product starts a company on its journey toward the billion-dollar mark, then it’s stellar decision-making and a determined field that can propel them into momentum and triple digit multimillion-dollar status.

But scaling to a billion or more? What does it take to get there? Is it possible to suss out common denominators that give rise to the birth of a legacy company? What has to change along the way? What doesn’t?

There are a several billion-dollar domestic companies in the channel: Ambit, Amway, doTERRA, eXp Realty, Forever Living, Herbalife, Melaleuca, Medifast, Nu Skin, Primerica, Rodan + Fields, Scentsy, Tupperware, USANA and Young Living. These questions were top of mind when DSN reached out to a select list of these billion-dollar companies.

The idea was to make a common denominator checklist of sorts, gleaned from their responses to questions about their approach to business. We asked about manufacturing, information technology, environmental, social and governance initiatives, in-house research and development and the like. Do they consider themselves customer-centric? What do they gain from segmentation?

No small surprise—billion-dollar companies have plenty of tangibles in common. After all, these companies are headed by industry leaders, the likes of which identify and promote best practices throughout the broader direct selling industry.

No company—billion dollar or otherwise—uses the identical building blocks in precisely the same manner. Here, we aim to highlight the benefits, as these companies see it, to consistently apply best practices in order to meet their corporate goals.

We also consider the less tangible and harder to measure corporate and leadership characteristics that billion-dollar companies share and why these attitudes and behaviors are vital for those companies who someday want to claim that billion-dollar status themselves.

What Makes a Billion Dollar Company?

It took two decades or more from their founding for several of the participating billion-dollar companies to reach the illusive billion dollars in sales. Scentsy, a newcomer to the list in 2021, found their stride in just 17 (discover more about their journey on page 60). But Rodan + Fields met the mark in an astonishing eight years, simultaneously becoming the number one premium skin care brand in the United States in 2016.

No doubt, industry best practices applied over the years pushed them all toward their goals and continue to inform the strategic thinking that keeps them growing. But what else came into play to get them to a billion? We asked Heather Chastain, Founder and CEO of the direct selling consultancy Bridgehead Collective, just that.

“You don’t see timid companies reach that level. You see bold companies, who take calculated risk, thoughtful risk, mission-minded risk, but risk nonetheless,” Chastain, who has worked in the C-Suite of companies like Shaklee, Arbonne, Celebrating Home and BeautiControl, shared.

There’s an immense amount of patience and foresight necessary to scale a direct selling business. It also takes corporate recognition that what earned them their current status may not be what ultimately gets them across the billion-dollar threshold.

As Chastain explained, “Too many companies that I see, their pitfall is they stay insular. They think, ‘This is what got us here and it will get us to the next level.’” Chastain helps companies think through marrying innovation and strategy by opening up and engaging management teams to embrace strategic thinking as a daily activity as opposed to a one-time event.

Companies, large and small, can weave this kind of day-to-day strategic thinking into their commitment to and application of industry best practices. Billion-dollar companies long ago began this process and have reaped the advantages.

So, what are these best practices and how do billion-dollar companies put them to work?

Customer Centricity

Billion-dollar companies put customers at the center, whether that’s improving the shopping experience; better understanding wants, needs, goals and motivations; or maximizing data and analytics to help customers make informed choices and their distributors deliver products that excite and satisfy. They understand if they do not put the customer first, the customer will simply find a company that does.

“We have a Customer Experience (CX) office led by the C-Suite of the company that manages and socializes customer journeys across our personas, to prioritize and address the top needs of the customer according to the data the team gathers,” explained Ruth Todd, Senior Vice President and Chief Reputation Officer at Nu Skin.

That CX team prompts collaboration across Nu Skin’s departments and markets to deliver key customer experiences that drive attraction, connection and retention. Customer need and experience is paramount at every touchpoint, as it helps affiliates attract new customers and grow their customer base.

Global Responsibility

Environmental, social and governance (ESG) initiatives resonate with customers as well, but that’s not the only reason billion-dollar companies embark upon them. Doing good is good for business, and it also helps secure the direct selling business model in the marketplace.

People, planet and product—those are the areas of ESG focus for billion-dollar companies, who wrap sustainability, charitable giving and social impact into their business strategies and create governance committees at both the board level and internally to assure efforts remain aligned with company core values, vision and goals.

“We make no distinction between our Global Responsibility and operating our business: Both are reflected in our long-term growth strategies and our day-to-day activities. We are committed to creating positive impacts for our independent distributors, employees, communities and the planet, while driving sustainable business growth,” Herbalife CFO Alex Amezquita said.

The initiatives are plentiful and varied. USANA, in addition to their efforts to create more sustainable products and packaging, has undertaken a large-scale information initiative to help employees learn how to make the company a more inclusive, equitable and sustainable workplace.

Nu Skin works closely with supply chains, product and facilities teams to do their part to protect the environment, while supplying VitaMeal to the world’s neediest through charity partners. “By working closely with experts on the ground, we have a clearer picture of how we can best help and know that we are making the greatest impact,” explained Todd.

So engrained is giving in Scentsy’s culture that since 2010, the Scentsy Family Foundation has donated more than $14.3 million to more than 175 global and local charities that their communities most value.

At Rodan + Fields, the company’s charitable arm, Prescription for Change has invested more than $15 million in programs for 1.5 million young people to give them the skills they need to thrive in school, work and life.

“Our community of distributors and home office team members are passionate about doing good and giving back. I’m constantly inspired by the various ways they demonstrate our purpose to be life changing by making a positive impact,” said Jessica Raefield, Chief Human Resources Officer.

“We also launched an ESG effort in 2019, as well as formulating 2025 Do Good goals that focus energy on the environmental and social commitments most material to stakeholders and their core business strategy,” shared Raefield.

Segmentation

Member/Customer segmentation offers clear differentiation between people who want to purchase retail products or to build a sales organization and those who simply want discounts on products for their own consumption. Billion-dollar companies embrace segmentation because it creates the most accurate picture of customer activity, intent and goals, while also improving the company’s ability to communicate and market effectively.

Detailed customer segmentation can be used throughout product and program design and development so that a company is crystal clear on a product’s unique value proposition for a target audience. It also informs the creation of compensation plans for companies like Scentsy, who do not attract large numbers of preferred customers. Scentsy distributors, for example, are not compensated on a “wholesale/retail” pricing structure, but rather a commission structure with the opportunity for bonus overrides.

Information Technology

Extensive in-house IT teams, who are called upon to manage diverse components that make up a company’s overall IT infrastructure, are a hallmark of billion-dollar companies. Because these departments have a deep understanding of the company’s values and its business operations, they are often the most effective way to reach IT goals. In-house teams support customization, help develop right-sized efforts and maintain focus. However, to prioritize and meet business needs, some companies reach to trusted IT partners for outside thinking and specialized expertise.

Manufacturing

All of our respondents exercise at least some autonomy over the manufacture of their products, either through company-owned and operated manufacturing facilities or those owned by strategic investment arms. Some companies report an estimated 60/40 split between in-house manufacturing and outsourcing. Often the question of in-house manufacturing depends upon the product and where it is sold.

“Manufacturing on-site allows us to remove as many unknown variables as possible, which leads to higher quality products. When we are able to oversee virtually every aspect of product manufacturing, we can more easily spot any quality issues and what is causing those issues,” President Jim Brown says of USANA’s well-equipped in-house processes.

Herbalife—who maintains two manufacturing sites in the U.S., three abroad and eight quality control labs—began expanding self-manufacturing investments in 2010. According to COO Mark Schissel, investments in research, technology, science, manufacturing facilities and other areas allowed Herbalife to weather many supply chain disruptions and has given the company the ability to develop better and safer products that build consumer trust.

It’s a worthwhile investment according to many billion-dollar companies. Just last year Amway announced an investment of more than $50 million over the next five years in the company’s Ada, Michigan-based manufacturing capabilities and footprint.

And at Young Living it’s an integral part of the company’s commitment to quality that began with founder D. Gary Young and continues until today. Young always wanted to know where essential oils came from; how the plants were grown and harvested; how the they were extracted; and how they were stored. The company has continued that philosophy by investing in their own farms and developing sourcing and compliance programs that give them an extensive knowledge of their global essential oil supply chain.

Regional Distribution Centers

To better serve a quickly expanding customer base, many of these five billion-dollar companies utilize regional distribution centers. RDCs streamline global shipping, delivery and order fulfillment processes. Herbalife opened its third U.S. regional distribution center in Hagerstown, Maryland in September last year. Nu Skin utilizes distribution centers and warehouses in many markets, with principal facilities in Provo, Utah and mainland China. By April 2022, Scentsy will have three North American distribution centers.

Research and Development

Billion-dollar companies maintain a collaborative research and development (R&D) philosophy that combines in-house capabilities ranging from staffs of 75 in-house scientists, as is the case with Nu Skin, to co-development research and clinical testing third-party partnerships managed by in-house teams.

“Rodan + Fields develops innovative products and proprietary technologies with expertise from many professionals including esteemed doctors, PhDs, R&D experts and strategic partnerships, as well as insight from our very own brand founders, who are esteemed practicing dermatologists themselves,” shared Dr. Sumita Butani, Senior Vice President of R&D and Innovation. “Our breakthrough products begin in a world-class laboratory in Berkeley, California where our team of scientists collaborate.”

Amway shares a similar philosophy. “We have a global Innovation and Science team of 800 full-time explorers, engineers, formulators, scientists and other experts who pour their hearts and minds into every product we create,” explained John Parker, Chief Sales Officer and Regional President, West. “Having Innovation and Science as a force internally helps us guarantee scientific excellence at each and every step of the way.”

While the activities associated with in-house R&D vary greatly from company to company depending upon their product category, the over-arching effect of in-house teams proves advantageous. They can enhance vertical focus and consumer-driven responses; strengthen resource oversight and control; and reduce time-to-market.

Young Living has an in-house Research and Development department lead by Dr. HK Lin. The greatest advantage to the company is the ability to create an environment to foster the next generation of research and development leaders who will carry out the company’s vision well into the future.

“With in-house R&D, it provides us with a tighter connection to product development for greater innovation and speed to market. As we listen to our customers, we are able to focus on unique research for developing products that meet their needs, and it gives us the ability to test and gain even more understanding after products launch for ongoing enhancements,” Todd explained.

Brown agreed, “Having our R&D team in-house is a great benefit to the company because they understand the full impact of our mission and what we are trying to deliver with our products.”

Public or Private—The Great Debate

Amongst the twelve companies we considered, there is an almost even split between public and private. It’s not surprising because there is no right or wrong answer to whether or not going public is the best course of action. Each path has potential benefits and pitfalls.

Private companies face less scrutiny from shareholders and don’t have to release quarterly and annual reports like public companies do. And the process of going public is also lengthy and costly.

But there are considerable benefits to becoming a public company as well. It can mean a huge influx of critically needed cash for a growing company trying to take the next step, which can be used for strategic investments in vital areas such as supply chain, technology and international expansion to name just a few.

Leadership—More Than Checking Off Best Practices

It turns out, best practices, while extremely valuable and essential, are the easiest billion-dollar commonalities to quantify, assess and talk about. They more or less fit nicely onto a checklist, but they represent a fraction of what goes into building a billion-dollar direct selling company.

Even if a company applies them in the most advantageous ways, there’s no guarantee they will reach the proverbial pinnacle they are seeking. So what else is in play inside direct selling’s most successful companies? What can aspiring companies and their leadership teams learn from those already on the list?

Billion-dollar companies have three commonalities that make a huge difference in their eventual rise: A consistent and relentless focus on their mission; seemingly unending commitment; and managerial courage.

“The companies that get to that billion-dollar level often have founders and management teams that walk the walk. They are genuinely invested in the mission of their companies beyond the confines of a job. For them, it’s not a job. It’s a purpose,” Chastain said.

These leaders excel at sharing that mission and engaging and enlisting their fields and employees in the mission on a regular basis and absolutely not deviating from that mission even when things get challenging.

On-going commitment, even when it’s challenging to stick with an annual or a three-year or five-year strategic plan means these companies are not concentrating on short-term results or quick fixes. They are focused on the long-term objectives and have discipline throughout their organizations.

And that takes managerial courage. Chastain encouraged companies to “Take big steps; make bold changes when the market calls for it and when the field calls for it.”

“Our leadership recognizes the need to be agile and always innovating, backed by the ability to make the necessary decisions for the long-term success of the company,” Todd said.

How those decisions get made is infinitely more complex as a company scales toward a billion dollars in sales. Eighty percent of companies in the $500 million range discover in an honest assessment that a CEO or Founder is holding on too tight to too many decisions.

“To scale, everything can’t continue to come through one single point of contact. That means hands-on Founders, who have grown their businesses to say the $500 million mark, need to make space in the spotlight for others in the organization; relinquish some control; and delegate to trusted hires,” Chastain explained.

The organizational structure of the company itself matters little. In fact, billion-dollar companies can have country managers or presidents, global entities or everything can be run through corporate. But the one thing that billion-dollar companies do have in common is autonomy for their department heads, however that’s defined internally.

They are trusted and granted latitude to work autonomously. Not carte blanche, but with enough autonomy to effect change in their function. They are trusted, respected leaders who are expected to understand the mission; understand where the company is headed; understand the strategic plan; but they can go execute somewhat freely to deliver what they’ve been hired to deliver.

But often, companies pushing toward billion-dollar sales goals don’t recognize what’s holding them back. What’s lacking is new energy and a fresh perspective.

That can come in the form of a couple new hires or outside consultancies, but the time to search for help is when things are going well. The time to plan for the next wave of growth is during the current wave of growth.

“That’s where we can get true radical change,” Chastain said.

Although there is nothing cookie cutter about these companies, you can see from this checklist that there are a few traits and commonalities they share. Their product lines and origin stories vary widely, but there are many similarities in their business philosophies—we’ve compiled them here.

Headquarters |
Ada, Michigan

Founded |
1959

Product Category |
Health and wellness

Hero Product |
Nutrilite (accounts for more than half of global sales)

Founders |
Richard DeVos and Jay Van Andel

Current Leadership |
CEO Milind Pant

Hit Billion-Dollar Status |
1980

Privately held

International Markets |
More than 100 countries and territories worldwide

COMMONALITIES:

• Identifies as Customer Centric
• In-house Research and Development
• In-house Manufacturing: Combination
• ESG Initiatives

Headquarters |
Los Angeles, California

Founded |
1980

Product Category |
Weight management, sports nutrition, health and wellness

Hero Product |
#1 brand meal replacement and protein supplements in world

Founder |
Mark Hughes

Current Leadership |
Chairman and CEO John Agwunobi

Hit Billion-Dollar Status |
2001

Public (HLF: NYSE)

International Markets |
95

COMMONALITIES:

• Utilizes segmentation: In nearly all key markets
• Identifies as Customer Centric
• In-house Research and Development: Combination
• In-house Manufacturing: 65% of product
• Utilizes Regional Distribution Centers
• ESG Initiatives

Headquarters |
Provo, Utah

Founded |
1984

Product Category |
Beauty and wellness

Hero Product |
60/40 split in favor of personal care products

Founders |
Blake Roney, Sandie Tillotson, Steve Lund

Current Leadership |
President and CEO Ryan Napierski

Hit Billion-Dollar Status |
Fiscal year 2004

Public (NUS: NYSE)

International Markets |
approximately 50

COMMONALITIES:

• Utilizes segmentation: Outside Mainland China
• Identifies as Customer Centric
• In-house Research and Development
• In-house Manufacturing: In Mainland China; Trusted third-parties elsewhere
• In-house IT: Combination
• Utilizes Regional Distribution Centers
• ESG Initiatives
• Transparent Communications Priority

Headquarters |
San Francisco, California

Founded |
2002 (retail), 2008 (direct selling)

Product Category |
Skin care

Hero Product |
Rodan + Fields Core Regimens

Founders |
Dr. Katie Rodan and Dr. Kathy Fields

Current Leadership |
CEO and President Dimitri Haloulos

Hit Billion-Dollar Status |
2016

Privately held

International Markets |
4

COMMONALITIES:

• Identifies as Customer Centric
• In-house Research and Development
• In-house IT: Combination
• ESG Initiatives

Headquarters |
Meridian, Idaho

Founded |
2004

Product Category |
Home durable and consumable within home fragrance space

Hero Product |
Scentsy Warmers and Fragranced Wax

Founders |
Heidi and Orville Thompson

Current Leadership |
Dan Orchard, President and Interim CEO

Hit Billion-Dollar Status |
Fiscal year 2021

Privately Held

International Markets |
5

COMMONALITIES:

• Utilizes segmentation: To provide crystal clear value proposition for target audience
• Identifies as Customer Centric
• In-house Research and Development: In-house works in tandem with outside partners
• In-house Manufacturing: For fragrance; not for hard goods.
• Utilizes Regional Distribution Centers
• In-house IT
• ESG Initiatives
• Transparent Communications Priority

Headquarters |
Salt Lake City, Utah

Founded |
1992

Product Category |
Nutritional supplements, skin care, lifestyle, weight management

Hero Product | USANA CellSentials

Founder |
Dr. Myron Wentz

Current Leadership |
CEO and Chairman Kevin Guest

Hit Billion-Dollar Status |
Fiscal year 2016

Public (USNA: NYSE)

International Markets |
24

COMMONALITIES:

• Utilizes segmentation
• Identifies as Customer Centric
• In-house Research and Development
• In-house Manufacturing: 65% of product
• Utilizes Regional Distribution Centers
• In-house IT
• ESG Initiatives: Employee and associate/customer
• Transparent Communications Priority

Headquarters |
Lehi, Utah

Founded |
1994

Product Category |
Essential oils and essential oil-infused products

Hero Product |
Ningxia, Thieves, Lavender

Founder |
D. Gary Young

Current Leadership |
Mary Young

Hit Billion-Dollar Status |
2015

Privately Held

International Markets |
Service and ship globally with markets in North and South America, Europe, Asia and Africa

COMMONALITIES:

• Identifies as Customer Centric
• In-house Research and Development
• In-house Manufacturing
• ESG Initiatives

From the March 2022 issue of Direct Selling News magazine.

The post The Making of a Billion Dollar Company first appeared on Direct Selling News.

COVID continued to impact Primerica’s Term Life segment favorably. Over 75,000 new term life insurance policies were issued during the fourth quarter and after peaking, still remain 5% above pre-pandemic levels. When compared to full year 2020, the Term Life segment operating income was up 11% before income taxes. This strong segment increased the company’s pre-tax operating income by $24 million.  

“Results in our term life insurance and investment businesses were strong, reflecting clients’ continued priority for protection products and investing for the future,” said Glenn Williams, Chief Executive Officer. “Performance in our newly added Senior Health segment was weaker than expected reflecting meaningful headwinds around policy churn and contract acquisition costs. These factors, among others, led to the goodwill impairment recognized in the segment this period.” 

The company’s life insurance licensed sales force was down from the previous year, with 129,515 at the end of 2021, compared to 134,907 at the end of 2020. However, the company believes that adjusting for COVID-related temporary measures, that number has remained relatively unchanged. Pandemic-related pressures resulted in a 23% decrease in licensure during the fourth quarter of 2021. 

Favorable equity markets and investor confidence positively impacted the Investment and Savings Products category. Investment product sales exceeded $3 billion, a 46% increase from last year’s quarter, and net client inflows were almost twice as high as the previous year’s quarter. Client asset values were up almost 20% at the end of the year from 2020, totaling $97.3 billion. 

During the fourth quarter, $19 million of the authorized $50 million of additional authorized repurchase of the company’s common stock was deployed. The total amount authorized through the end of 2022 now amounts to $325 million. The board of directors also approved a 17% increase in dividends for stockholders, or $0.55 per share, which will be payable on March 14, 2022 to stockholders of record on February 22, 2022. 

The post Primerica Announces $724.1 Million in Total Revenue During Q4 2021 first appeared on Direct Selling News.

The company saw strong momentum in investment and savings product sales, which increased 52%, with client asset values climbing to $92 billion, a continuation of record levels. Term life net premiums grew 12% while adjusted direct premiums grew 13%. 

“Primerica continues to adapt to the changing business environment and consumer sentiment,” said Glenn Williams, Chief Executive Officer. “Our Investment and Savings business is experiencing strong growth as we meet clients’ desire to save for their futures. Client demand for life insurance protection is moving closer to pre-pandemic levels. These complementary dynamics of our model are driving strong financial results and making Primerica an attractive business opportunity for entrepreneurs. Our strategic acquisition of e-TeleQuote adds a new dynamic to our business which meets the needs of additional clients, improves the opportunity for our field force and creates upside for stockholders.” 

At the end of the quarter, invested assets and cash on hand totaled $192 million. The Board of Directors has also approved a dividend of $0.47 per share, payable on December 14, 2021 to stockholders of record on November 22, 2021. 

The post Primerica Reports Q3 Revenue first appeared on Direct Selling News.

“Every day, thousands of Primerica representatives educate families on the necessity of preparing for the unexpected and protecting their loved ones through term life insurance,” said Glenn Williams, Primerica Chief Executive Officer. “Each year, that preparedness helps some of those very same families make it through the worst times of their lives after the death of a family member. For more than four decades, Primerica has remained committed to providing exemplary customer service and quality products. We are pleased to be recognized by Forbes for our efforts, and we look forward to serving many more families in the years to come.”

Forbes utilized data from a Statista survey of more than 16,000 customers to determine their rankings. Through this survey as well as searches of publicly available information, Forbes gathered feedback about company performance, customer service quality, financial advice, transparency, value and benefit.

The post Primerica Named in Forbes’ List of America’s Best Insurance Companies for 2022 first appeared on Direct Selling News.

Additional key findings from this survey include:

• Concern about paying for food and groceries has grown from 12% to 17% in the past year
• An increase in the cost of goods and services was noticed almost unanimously by participants, including gas (94%), home prices (92%), groceries (91%), restaurants and bars (84%), health care (80%), entertainment (75%), taxes (73%) and childcare (73%)
• 53% of respondents have life insurance, and of those who do not, 10% say they are now more interested in purchasing a policy because of Covid-19
• 65% say their income is falling behind the cost of living
• 18% anticipate having a better financial situation one year from now
• 22% are saving enough for a comfortable retirement
• 63% say it will be difficult to save for the future
• 65% say their personal finances are in good shape

“We’re encouraged that most middle-income families are optimistic about their financial situations, although they are feeling the pressure of rising inflation,” said Glenn J. Williams, CEO of Primerica. “We also see that more than half of these families are taking responsibility to improve their financial situation by saving for the future and protecting their families with life insurance, and even more families are considering taking similar actions. These steps are especially important today, as people are reporting increased prices on everything from gas to eating out to going to the movies.”

The post Primerica Financial Security Survey Shows Most Middle-Income Families’ Earnings Not Keeping Up with Cost of Living first appeared on Direct Selling News.

“Sales results in our core businesses remain very strong,” said Glenn Williams, Chief Executive Officer. “We are encouraged by our continued momentum and remain focused on growing our sales force as the licensing process starts to normalize and new recruits resume their pre-COVID activities.”

Primerica customers showed a strong demand for future and retirement planning products and the investment products sales for the quarter reflected that, surpassing $3 billion, a record-breaking number for the company. 

Sales commissions and operating expenses increased $9.2 million, $2.1 million of which accounts for expenses related to the company’s acquisition of e-TeleQuote. As of the end of June, the company’s cash on hand and invested assets totaled $666 million. Immediately following the funding of the acquisition, that number stood at $169.1 million. 

Term Life Insurance also showed strong revenues, increasing 17% year-over-year to $383.5 million. Excess mortality, in part due to COVID-related deaths, resulted in elevated death claims within the Term Life segment.

The company has declared a dividend of $0.47 per share, which will be payable on September 14, 2021.

The post Primerica Second Quarter Revenues Surpass $650 Million first appeared on Direct Selling News.

The implied equity value of this acquisition agreement is $450 million, with an enterprise value of $600 million. Primerica will purchase the remaining 20% stake in the company over the next four years.

“The synergies created by this acquisition will allow Primerica’s life insurance-licensed independent sales representatives to serve clients’ financial needs more fully throughout their lifecycle,” said Glenn Williams, Primerica Chief Executive Officer. “e-TeleQuote’s specialized technology platform and dynamic sales centers align perfectly with Primerica’s powerful distribution capabilities, allowing us to deliver additional value to our clients, sales representatives, employees, and stockholders.”

e-TeleQuote offers products from a broad selection of carriers, like United Healthcare and Humana, and offers 2,700 Medicare Advantage plans, as well as a growing Medicare supplement business with four carriers.

“The pairing of our two organizations is a great opportunity for all parties involved,” said Anthony P. Solazzo, CEO and Founder of e-TeleQuote. “For many, health insurance is a complicated subject, especially when it comes to Medicare. We believe we can help Primerica’s clients understand the Medicare landscape more easily. Our licensed insurance agents use a carrier agnostic approach to helping beneficiaries select the right Medicare plan for them.”

The post Primerica Finalizes Acquisition of e-TeleQuote first appeared on Direct Selling News.