Over the years, we can see that companies are growing more and more. Companies are beginning to use newer and newer forms of sales and promotion.
A lot of concerns are selling their products through other companies or shops. This method of selles is very effective, but the prices are always much higher than normal. Reason for this appearance is very simple. Interceder shops take extra money from each transaction.
Some companies have responded to the expectations consumers and started using a new sales method called direct selling.
1. What is direct selling?
Direct selling is a method of vending products directly to the consumer in a non-retail environment. The company has appropriately specialized sales representatives who sell at home, at work or elsewhere than in a shop. This system significantly reduces the number of intermediaries involved in the distribution of products. The whole chain of intermediaries is shortened to a company and its sales representative.
1.1 Why Direct Selling is becoming so popular?
- Products are much cheaper
- Many allowances for regular customers
- Faster delivery of orders
- The work of a sales representative is very comfortable and well paid, so there are more and more people willing to work in this position
1.2 Is direct selling profitable?
Yes! Many companies like Avon, Oriflame, or Amway use direct selling and expand very well. They earn money in millions of dollars. These companies are so interesting that I will discuss the most profitable direct sales companies.
2. Best direct sales companies
Avon is one of the most successful direct sales companies which handle manufacturing and distributing cosmetics. The company operates in 135 countries around the world, but the highest profits are achieved from the Eastern countries – Russia and China.
Products are sold in the direct sales system with multi-level marketing – vending of products are handled by pre-trained consultants who offer products of this company at various meetings or events. Avon has over 6,000,000 salespeople what makes it one of the top direct selling companies in the world.
Country of origin: New York, USA
Founder: David H. McConnell
Managing Director: Jan Zijderveld
Revenue: $ 5,500,000,000
2.2 Mary Kay
The Mary Kay for a reason is on second place. It is selling products like Avon applying direct sales and the company also makes a lot of money – 3,320,000,000 dollars in 2018. A number of consultants is also is very high – 3,500,000 salespeople.
Mary Kay sales products mainly for women (they also offer several products for men, but not in as large a quantity as women’s products). It offers high-quality makeup and skincare cosmetics. Products prices are higher than Avon what makes this company much glamorous. For sure Mary Kay company is one of top 10 direct sales companies.
Country of origin: Addison, USA
Founder: Mary Kay Ash
Managing Director: David Holl
Launched: September 13, 1963
Revenue: $ 3,320,000,000
Amway is a world leader in healthy living and beauty. Amway is a direct marketing company that earns huge amounts of money.
The company was founded in 1959 by Richard DeVos, Jay Van Andel in Michigan in the USA. Over the years, the company has expanded in leaps and bounds because of its high standard business policies. The direct communication method with customers and quality product have made that the company has grown very well, earning $8,8 billion in 2018!
Amway sells healthy food products and cosmetic products. It offers for example coffee, olive oil, balsamic vinegar, but also various hair shampoos and perfumes. Each of these products shall be sold by a sales representative.
Country of origin: Ada Michigan, USA
Founder: Richard DeVos, Jay Van Andel
Managing Director: Milind Pant
Launched: November 9th, 1959
Industry: Healthy food, Cosmetics
Revenue: $ 8,800,000,000
Next company on our direct selling company list is Vorwerk. It was founded in 1883 by Adolf Vorwerk and Carl Vorwerk in Germany. Nowadays, the company has more than 600,000 resellers in more than 70 countries around the world.
Vorwerk sells electronics mainly for home-usage. The offer includes various types of vacuum cleaners, kitchen robots but also cosmetics. Sales of these products usually are undergone at homes and special events. Sell from home companies are very effective. One of the most popular Vorwerk products is Thermomix, which sales in 2018 generated $ 1,100,000,000!
Country of origin: Wuppertal, Germany
Founder: Adolf Vorwerk, Carl Vorwerk
Managing Director: Reiner Strecker, Frank van Oers, Rainer Christian Genes
Industry: Household appliances, fitted kitchens, cosmetics
Revenue: $ 3,500,000,000
Herbalife is a direct selling company which is engaged to fight the world’s biggest health threat – lousy nutrition. The main task of the company is to provide everyone with a simple and comfortable way to live a healthy life through its amazing products.
Founded in 1980 by Mark R. Hughes in Los Angeles, USA. Herbalife offers high quality, scientifically advanced products that provide an easy way to control weight and a healthy lifestyle. Their offer includes nutritious cocktails, vitamins and other dietary supplements with a health effect.
Country of origin: Los Angeles, USA
Founder: Mark R. Hughes
Managing Director: Michael O. Johnson
Launched: February 1980
Industry: Healthy food, Fitness
Revenue: $ 4,430,000,000
Oriflame was launched in 1967 by Jonas Af Jochnick, Robert Af Jochnick and Bengt Hellsten in Schaffhausen, Switzerland. The mechanic of this business is very similar to Avon.
Oriflame was set up to create high-quality natural cosmetics that will be sold through a direct selling system. Today, Oriflame is one of the fastest-growing cosmetic companies in the world with a turnover in excess of billions of dollars per year. They offer anti-wrinkle creams, perfumes, conditioners and hair shampoos and more.
Country of origin: Schaffhausen, Switzerland
Founder: Jonas Af Jochnick, Robert Af Jochnick, Bengt Hellsten
Managing Director: Magnus Brännström
Launched: 1967Industry: Cosmetics
Revenue: $ 1,300,000,000
2.7 Natura & CO
A lot of reports indicate that company Natura & CO is the best direct selling company.
Natura & CO was founded in 1969 by Antonio Luiz Seabra in São Paulo, Brazil. The company operates from its headquarters in Cajamar, serving seventy countries.
The DSA top 100 (Direct Selling News) reports that Natura is the seventh most income company in the world and the first in Brazil. Another success of the company can be to obtain B Corp certification because of its reliable products and achievements.
Natura & CO offers natural body oils, anti-wrinkle creams, hair shampoos, anti-wrinkle creams and more. How you can see Natura is one of the top-selling companies which is very similar to Avon – also offers cosmetics.
Country of origin: São Paulo, Brazil
Founder: Antonio Luiz Seabra
Managing Director: João Paulo Ferreira
Revenue: $ 10,900,000,000
2.8 Nu Skin
Nu Skin creates products that allow millions of people around the world to find their way to a beautiful and long term future. The company was founded in 1984 by Blake Roney, Steve Lund, Sandie N. Tillotson and Nedra Roney in Provo, USA.
Nu Skin is one of the best direct sales companies. Report from 2017 informs us that the company has 1,200,000 resellers in 54 countries what earned 2,25 billion dollars.
Nu Skin offers cosmetics for skin rejuvenation – various types of gels, creams and peelings – that are bought and used by people all over the world.
Country of origin: Provo, USA
Founder: Blake Roney, Steve Lund, Sandie N. Tillotson, Nedra Roney
Managing Director: Ritch N Wood
Revenue: $ 2,250,000,000
The last company on our direct selling companies list is Tupperware.
Tupperware is a direct selling company which produces plastic kitchen accessories, like plastic packages, water containers, thermoses, and many creative kitchen gadgets. Their products are characterized by the high quality of workmanship and functionality.
Tupperware was launched in 1948 by Earl Tupper in Leominster, Massachusetts. During the 70 years, the company has grown very well. Nowadays, Tupperware has more than 2.9 million sales forces that work independently in nearly one hundred countries. At the moment the business earns 2,260,000 dollars yearly what makes it one of the most successful direct sales companies.
Country of origin: Leominster, Massachusetts, USA
Founder: Earl Tupper
Managing Director: Patricia A. Stitzel
Industry: Plastic kitchen accessories
Revenue: $ 2,260,000,000
As we can see direct selling can bring companies a really huge amount of money. Over the years and the development of the Internet, direct selling may have lost some of its effectiveness, but as can be seen from the above examples, the effects are still satisfactory. An interesting observation will be the fact that a large part of companies using direct selling to sell cosmetics. Maybe people prefer to see this type of product live? Perhaps. . .
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