On the Summit Push
In 2011 ACN posted $550 million in sales, down from the previous year’s $553 million. However, the company came back strong the past two years, achieving $582 million in 2012—a 5.8 percent increase—and $700 million in 2013—a 20.2 percent increase. This June, the telecommunications and essential services company launched in Mexico, the seventh-largest direct selling country and the company’s 24th market.
Stream Energy/Ignite has been camped near the billion-dollar summit for the past four years, breaking the $900 million ceiling in 2010. After two years of down sales, the company came back strong in 2013 with $27 million over the previous year—a 3.2 percent increase—putting it at $867 million. The company has seen continued growth, particularly in Hispanic markets, and has significant expectations for company growth across the board in 2014 and beyond as it diversifies its service offerings, allowing it to sell nationwide.
Of the 13 companies, only Thirty-One Gifts uses the party plan method of selling, joining Mary Kay and Tupperware as the only companies in the Top 17 of the Global 100 ranking that employ this sales approach. What makes that especially interesting is that, according to the U.S. Direct Selling Association, the party plan method of selling has decreased 4 percent in each of the past two years, going from a high of 31 percent in 2011 to just 23 percent in 2013. The person-to-person method, on the other hand, accounted for two-thirds of sales in 2013, according to the DSA.
USANA, which surpassed $100 million in its first six years, has been the steadiest climber in the group over the past few years. It has maintained an average of $67 million in sales growth annually for the past three years—ranging from a 10.6 percent to 12.5 percent increase—to bring it to $718 million. The company reported $182.4 million in sales for the first quarter of 2014, a 7.9 percent increase over the prior year; second quarter results saw a 0.4 percent decrease, with $188.3 million compared to $189.1 million in 2013; and the third quarter saw record sales of $191.9 million, a 10.5 percent increase over the prior-year period of $173.7 million. For the first half of 2014, USANA generated sales and customer growth in nearly every market in which it operates. Strong growth was seen particularly in Mainland China, the Philippines, Singapore and Mexico.
Four years ago, Plano, Texas-based AdvoCare had $89 million in sales and placed No. 91 on the DSN Global 100 ranking for 2010. This year it landed at No. 26 in the ranking, due to $460 million in sales for 2013. The wellness company has achieved tremendous growth over the past three years: a 55 percent increase in 2011 to $138 million; an 84.7 percent increase in 2012 to $255 million; and an 80.3 percent increase in 2013 to $460 million.
An essential oils company that has not previously participated in the Global 100 list, doTERRA International LLC provided a window into its growth when it received state economic development incentives at the time it decided to locate its global headquarters in Pleasant Grove, Utah, last year. The company pledged that the $60 million headquarters would bring $83 million in estimated new state tax revenue and 330 new full-time employees to the community over the next 10 years. Founded in 2008, doTERRA says it has more than 1 million independent consultants, which it calls Wellness Advocates.
Isagenix, which had a modest increase of 2.3 percent in 2011, has seen increases of 27.4 percent and 34.1 percent in the past two years, putting it at $448 million for 2013. Co-Founder and Executive Vice President Kathy Coover estimates that the company will achieve $720 million in 2014 and $1 billion the following year. “It will happen in 2015; we are tracking on that right now,” she says. “We have a goal to hit $1 billion in 2015. We really don’t think of it as a money goal; we think of it as how many lives we’re going to change. That’s what we equate dollars to, lives being changed.”
It Works! placed in the Top 30 for the 2013 Global 100 ranking, achieving a 128 percent increase from 2012 to 2013. Over the three-year period, the company grew by 1,565 percent, going from $27.4 million in 2010 to $456 million in 2013. Founder and CEO Mark Pentecost predicts that 2014 will be the company’s strongest year yet for sales, continuing the streak of 14 consecutive years of growth.
Team Beachbody first landed on the DSN Global 100 ranking with net sales of $218 million for 2012. Last year the wellness company achieved a 50.5 percent increase over the prior year, achieving $328 million in sales.
After a slight decrease in sales in 2011, Arbonne has responded over the past two years with increases of 6.7 percent and 9.5 percent, placing it at $413 million. In 2014 the company is experiencing growth across all of its product categories in existing and new offerings. “All Arbonne markets have been growing double digits for the past six months, including the U.S. market,” says CEO Kay Napier. “We expect to approach, if not achieve, $500 million for our Arbonne business this year, which has been a key goal of ours for the last five years—and then on to $1 billion!”
Founded in 1992 in Greensboro, North Carolina, Market America has achieved steady increases of $46 million, $43 million and $42 million over the past three years, respectively, including 2012 when it surpassed $500 million in sales. The product brokerage and Internet marketing company grew from $416 million in 2010 to $462 million in 2011, an 11 percent increase; achieved $505 million in 2012, a 9.3 percent increase; and posted $547 million in sales in 2013, an 8.3 percent increase. At its August annual convention, the company announced it was expanding its Emerging Markets Program to enable the purchase of its products by customers throughout the world, and thus help it springboard into new territories. The program is currently available in nine markets, including New Zealand, Spain, Panama, Singapore and Jamaica.
Shaklee had hovered around the $500 million level for a few years before posting $515 million in 2012, and then jumping $135 million in 2012, landing at $650 million.
Lehi, Utah-based Young Living, which celebrated its 20th anniversary this year, has achieved steady growth since its founding. However, over the past few years the essential oils company has really taken off, achieving triple-digit growth that has continued into 2014. “Today we are at 165 percent growth, which as you can imagine, is like a comet taking off,” says Jared Turner, Chief Sales & Marketing Officer.”
So how do companies in that $500 million to $1 billion range prepare to take their organizations to the next level? Maintaining focus, even during expansion, is critical.
Investing in Infrastructure
Acquiring and Onboarding Talent
Finding the Right New Markets
Because It’s There
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