the amazing world of direct selling terrel transtrum servicequest
TRANSCRIPT
The Amazing World of Direct Selling
Terrel Transtrum
ServiceQuest
Direct Selling’sBillion DollarMarkets
2012 2013
Direct Selling’sBillion DollarCompanies(Top Ten)
Top 100
Top 100
Top 100
Top 100
Top 100
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
Melaleucao Launched 1983o 2013 Revenues: $1.3 billiono Personal care, home care,
nutritiono 10 Years to $200 milliono 25 Years to $1 billion
Revenue(in Millions)
A Tale of 3 Companies
Thirty-One Giftso Launched 2004o 2013 Revenues: $763 million (3 Years to $200 million)o Women’s Accessories
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
Revenue(in Millions)
A Tale of 3 Companies
Neriumo Launched 2011o 2013 Revenues: $219 million (2 Years to $200 million)o Anti-aging facial formula (1 product)
2011 2012 2013$0
$50
$100
$150
$200
$250
Revenue(in Millions)
Pathway to $1 Billion
Why does Direct Selling work?
• Great model for ownerso Reasonable cost of startup / marginso Cash production / No receivableso Relationships and social networkso Marketing and distribution channelso Consumption and Capitalism
• Great model for distributors / entrepreneurso Leveraged startup versus potentialo Desire for gain, autonomy, flexibility, incomeo High potential + Tax benefitso Entrepreneurial spirit withino Higher needs (recognition, belonging)