Direct selling industry is undergoing monumental changes in the recent years than it had in the past decade. The year 2024 witnessed new companies entering the direct selling market and more popular ones quitting the channel. The previous year had been one of mixed results with social commerce, affiliate marketing and direct-to-consumer models posing as fierce competition to the direct selling model.
Existing direct selling giants invested on blending in the changes into their growth strategies while many others preferred to switch the direct selling model to other trending marketing concepts.
Rays of hope and growth still lingered in the industry with many international expansions creating significant market impact. The 2024 Economic Impact Report by the Direct Selling Education Foundation (DSEF) highlights the economic impact of the industry in the US direct selling economy. The total contribution of the industry was a 34% increase of $111.4 billion in 2022 to $83.1 billion in 2016.
“The impact of the channel continues to grow as people engage with direct selling companies to earn supplemental income, pursue entrepreneurial opportunities and enjoy great products and service. The channel is definitely hidden in plain view.”
- Joe Mariano, President of Direct Selling Association and DSEF
This article intends to present a comprehensive overview of the direct selling industry including achievements, setbacks, innovations and events in 2024.
The switching trend
Many direct selling companies were seen switching their marketing model from direct selling to direct-to-consumer while many others reaffirmed their commitment to the model. Popular direct selling companies like Rodan + Fields, Seint, PartyLite and BODi (formerly Beachbody) are departing from direct selling and resorting to direct-to-consumer and affiliate marketing models.
Meanwhile, many other leading direct selling companies have expressed their confidence and commitment in the multi-level marketing model. Here are a few statements from the C-level Executives of these companies.
The assurance and hope in these words reflect the growth potential of the direct selling model and the ingrained values of community building, personal development and leadership.
Awards and recognitions
The direct selling industry in 2024 witnessed brands recognized for their commitment and dedication to growth and expansion. Veterans and newbies took center stage with their share of innovation and excellence.
The awardees and their achievements in direct selling 2024
Coway was honored with five awards at the International Design Excellence Awards (IDEA) 2024 event conducted every year by the Industrial Designers Society of America (IDSA). The awards are a recognition to their excellent product designs and innovation.
Mary Kay was recognized by Euromonitor International as the #1 Direct Selling Brand of Skin Care and Color Cosmetics in the World. Mary Kay was also recognized as the #1 Brand of Facial Make-Up and Lip Products in Latin America, the #1 Color Cosmetics Brand in Mexico, and the #1 Skin Care Brand in Kazakhstan.
Partner.Co bagged numerous awards at the Globee Awards 2024. The company was also awarded in the Gold and Platinum categories by Viddy Awards. Partner.Co was also recognized as the Management Team of the Year by International Business Awards, a division of the Stevie Awards. They also received nine recognitions in the MarCom awards event in Gold and Platinum categories. These awards recognized Partner.Co for its leadership, innovation and commitment to the community.
4Life won an award in the Food & Beverage category at the Grand Globee Awards from among 30,000 evaluations and 1,100 international nominations.
Usana was named as the Top #1 Combination Dietary and Calcium Supplements Brand in Malaysia by Euromonitor International.
DSA US Awards 2024
Direct Selling Association in the US honored the contributions of direct selling companies and individuals across various business and industry aspects in the DSA Awards 2024.
The award categories and awardees are as listed below:
jBloom and Nu Skin shared the award for product innovation.
Somnvie and Plexus were recognized in the Vision for Tomorrow category.
Herbalife and Young Living received appreciation for Sales and Marketing Campaigns.
Neora was awarded in the Excellence in Business category.
Dan Jensen Consulting and Foley and Lardner LLP received the award in the Partnership category.
Pampered Chef was recognized in the Technology Innovation category.
DSA Canada ISC Awards
Direct Sellers Association of Canada recognized the commitment and achievements of Independent Sales Consultants (ISC) in the country at the prestigious ISC Awards event.
Here are the categories and the awardees:
Natalie Foeller, Plexus Canada won the Mark of Distinction Award.
Karine Guillemette of Mary Kay Cosmetics received Rising Star Award.
Community Spirit Award was given to Jessica Odar, MONAT Global Canada.
Alana Leiva of Cutco/Vector Marketing Canada was recognized as the Direct Seller of the Year.
DSN Bravo Awards
Bravo awards, known as “The Oscars of Direct Selling” honored various personalities, companies and products for their excellence across different categories.
Foley & Lardner Law Firm received the Bravo Supplier Award for its contribution to the growth of the direct selling channel.
Mary Kay received the Global Good Award for its philanthropic efforts.
Scout & Cellar was the recipient of Bravo Innovator Award for its innovations with emerging technologies.
Red Aspen, Neora and Hy Cite collectively received the Bravo Impact Award for their unique approach to growth, innovation and excellence.
LifeWave was honored with the domestic Bravo Growth Award for achieving the highest year-over-year revenue growth on the Global 100 List.
PM-International and Utility Warehouse shared Bravo International Growth Awards.
Nathan Moore, President of Global Sales and Marketing of Mary Kay received the Bravo Excellence Award.
Bravo Leadership Awards were shared by Jeff Olson, Founder and CEO of Neora and Glenn Sanford, Founder and CEO of eXp World Holdings.
JR Ridinger, Founder of Market America was honored with Bravo Legacy Award.
Bravo Lifetime Achievement Award honored Jerry Brassfield, Founder and Chairman of NeoLife.
Bravo Lifetime Achievement Award was given to Rick Goings, Chairman Emeritus, Tupperware Brands.
Technology and product innovations
AI stood as the leader of innovations with companies experimenting in full length with its potential. However, creativity did stand out with product innovations that effectively addressed the needs of the customers.
PermaLinx by jBloom
The creative jewelry idea by jBloom is a color-guaranteed steel chain without a clasp. The chain is created without using a welding machine.
RenuSpa iO by Nu Skin
Nu Skin introduced a wellness device, which is a self-care system that is designed to rejuvenate the user’s body with adaptive microcurrent technology that adapt itself to the skin conditions.
Belcorp’s Jessica
Belcorp integrated AI in its chat support to enhance distributor and customer experience. Belcorp’s AI chatbot, Jessica, handles product training for distributors and delivers product updates and offers for its customers.
eXp Realty and eXpcon
eXp Realty in its eXpcon Hackathon utilized OpenAI’s advanced API and enterprise ChatGPT platform along with eXp API with simulated data to address the challenges faced by eXp Realty agents in terms of brokerage and other problems prevalent in the industry.
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Research and studies
Many interesting and insightful studies were conducted within the industry and related to it that provide valuable insights and trends. These research efforts offer companies with deeper insights into customer trends and behavior and the need for a change in distributor approaches.
Herbalife’s study on Asia Pacific entrepreneurialism
Herbalife surveyed 8000 individuals across 11 countries and markets. The study found out that aspiring entrepreneurs in Asia Pacific are optimistic about new business opportunities. Here are a few insights from the study.
Health and wellness category appealed for both business and purchase.
51% respondents plan to spend more on health and wellness products.
20% aspiring entrepreneurs found the category fit for business.
Food and beverage ranked highest (44%) as a market for starting a small business.
Gen Z and Millennials has the strongest interest in entrepreneurship.
Indonesia ranked highest (91%) in favoring direct selling.
LegalShield’s Consumer Stress Legal Index (CSLI)
The Consumer Stress Legal Index (CSLI) shows that consumers are experiencing financial stress, and the rate is at an all time high since November 2020. The data is based on 35 million consumer requests for legal aid.
The study found out that Millennials and Gen Z are the most financially stressed group. The results of the study are in sharp contrast with the economic indicators that signal strong GDP growth.
American Marketing Association’s new study
The AMA pointed out the importance of influencer marketing in acquiring customers. The study cites that 80% of companies in the US employ influencers for marketing with considerable follower base.
The study also observed that nano influencers with lesser follower base are as efficient in selling as macro influencers. AMA opined that nano influencer has a “more intimate connection” with their followers than the macro influencers.
AMA noted that revenue for macro influencers may be six times higher than nano influencers, but the costs are also 18 times higher. Hence it would be more advisable for companies to partner with nano influencers than macro influencers for the cost and impact involved.
The study points out the need to include influencer partnerships in direct sales marketing strategies.
Mary Kay skin research
The research team at Mary Kay presented two research studies at the 2024 Society of Investigative Dermatology (SID) in Dallas, Texas. The research on the impact of air pollution on skin has been conducted through several academic collaborations since 2016.
The findings of the study revealed that antioxidant treatment can reduce the visible effects of pollution and aging on human skin. The research also highlighted the innovative technology of computational tools in accurately predicting the safety and possible reactions of human skin to various cosmetic products and treatments.
New strategies
Success in 2024 was characterized by the adoption of new and impactful business strategies. Many companies realigned their compensation plans and many others changed their business model to include direct-to-consumer trends in their business, all in the hope of improving their bottom line.
Natura announced their transition from direct selling model in Mexico to a franchisee business model.
Tastefully Simple is also leaving their existing multi-level marketing model to a simpler model through which TS ambassadors will focus on selling products not building teams.
BODi is changing their business model from MLM to a single-level affiliate program to reduce costs and expand their distribution channels. The company also launched subscription-free fitness and nutrition programs for its customers. Beachbody started a new retail shareholder rewards program, “Invest in Your BODi”, exclusively for verified BODi shareholders. Under the new loyalty program, shareholders will have access to a tiered perks program and BODi’s premium products.
LifeVantage Corporation has remodeled their Evolve compensation plan with a “Sharing Bonus” which will reward consultants with a 10% commission when a new consultant or their customer in their network makes a purchase in the same month of joining.
Oriflame partnered with Active Ants to automate their order fulfillment process with a robot-operated warehouse. The brand expects to boost its order accuracy by 99.9% and 50% improved processing speed.
Saladmaster Japan opened a Tokyo Kitchen Studio for its dealers to meet and collaborate. The Studio will also conduct interactive cooking shows by experienced Cooking Coaches, training sessions by experts and educational events with Saladmaster products.
The Avon Company introduced a five-level commission structure to increase the earning opportunities of its Ambassadors and create new growth opportunities for the business.
Seint has moved their business model from direct selling to an enhanced affiliate marketing model. Through the new business model Seint Artists will receive commissions only on product sales not on recruiting.
PartyLite has switched from their Party Plan model to direct-to-consumer model with a view to better serve their customers. The company also rolled out a Brand Ambassador program to support PartyLite Affiliates.
PM-International opened its sixth storefront in Italy for its customers to directly experience and purchase its products. The store will also act as a meeting point for distributors and customers to establish a unique buying experience.
Rodan + Fields simplified their business model from multi-level structure to a new affiliate program. The company abandoned the recruitment model to reward its affiliates for product sales.
Regulations and policies
Just as every other year, direct selling industry witnessed some interesting lawsuits and policy changes. Regulatory scrutinies and policy reinforcements were as strong as every other year with FTC and other regulatory bodies getting a strong hold on the industry.
The FTC regulations
Noncompete rule: The FTC’s rule banning noncompete clauses suffered serious backlashes from corporations who stated that the agreements are necessary. FTC considers noncompete as an “exploitative practice” that prevents individuals from switching jobs. A US District Judge, Ada Brown, issued an injunction to the ban stating that FTC does not have the authority to rule making.
FTC’s letter to DSA: The letter sent to the DSA by Lois Greisman, Associate Director, FTC points out to a 2004 letter which defines how a company is considered a pyramid scheme. The 2004 letter which suggests “a primary source test” based on sales of products is incorrect. The Federal Trade Commission cited Koscot and Vemma trials and said that it now focuses on the compensation structure of the company on whether it rewards distributors for recruitment or product sales.
FTC’s letter to DSSRC: In an official letter to the Direct Selling Self-Regulatory Council, FTC expressed concerns over the program’s guidance on income disclosure statements. It mandated that all costs incurred in the selling process must be tracked even if the sellers run their own business.
Click to cancel rule: Under the new rule FTC aims to protect consumer rights to cancel subscriptions with just a click. Click to cancel rule requires sellers to obtain consent from customers for negative option features before charging them.
Major rebranding in the UK DSA
The Direct Selling Association of the United Kingdom has announced its rebranding decision on including D2C retailers and affiliate marketing in the UK. This is in addition to the existing 50 direct selling member companies with half a million independent direct sellers. The new strategy comes as an effort to capitalize on the benefits of direct-to-consumer and affiliate marketing models.
Reversal of the Chevron decision
The Supreme court annulled the 1984 Chevron decision which gave regulatory agencies broad regulatory power. The decision weakens the authority of several regulatory agencies across the US to reinforce regulations without the Congress rulings.
Industry events
Direct sales events and celebrations in 2024 were tied to evolving trends in leadership, social selling and distributor sales training. These events portray the responsibility and commitment of the companies and the Direct Selling Association in supporting their distributors and delivering value to customers.
Annual Legal & Regulatory Conference by DSA
The Direct Selling Association in the US hosted a Legal & Regulatory conference with industry leaders, policy makers and consumer advocates to analyze the regulatory trends in the industry. The event also addressed topics on compliance, data privacy, and compensation structures. Speakers from Department of Labor, FTC and other industry personalities attended the event.
Free training by UK DSA Social Selling Academy
The UK Direct Selling Association runs a Social Selling Academy to train and educate people to run their own direct selling or direct-to-consumer business through online platforms and mobile app. The free training program hosts over 1000 direct sellers and independent sales representatives. Besides social selling, the academy educates people on DSA codes, advertising best practices and seller responsibilities.
Record-breaking group workout by Herbalife
Herbalife recently set a Guinness World Record by clubbing over 4900 Herbalife distributors and fitness enthusiasts in a global workout session on YouTube. The event set a new Guinness World Records title for the largest high-intensity interval training class (multiple venues). Participants from France, Romania and China joined the live event. Herbalife made the event more meaningful by using it to raise funds for its Family Foundation’s Casa Herbalife Program.
The leadership event by PM-International
The Leadership event 2024 took place in Berlin, Germany and included more than 2,200 leaders from across the globe. The event centered around PM-International's future product innovations and growth strategies.
Great direct selling milestones
Direct selling companies celebrated their legacy of innovation, success and resilience in the industry. The decades-long sustenance of these direct selling legends is something we must appreciate for many of them have travelled through the history of direct selling.
Direct Sellers Association of Canada celebrated 70 years of leadership and commitment to the direct selling industry. The event was hosted at the Sandman Signature Toronto Airport Hotel on the 4th of December 2024.
Mary Kay celebrated their 60th anniversary by planting 60 trees emphasizing their long-term commitment to the society and the environment.
Young Living celebrated their 30th anniversary at the YL30 International Grand Convention. The event also witnessed new product rollouts and workshops.
New Image International celebrated their legacy of 40 years in the industry at the Ellerslie Event Center in Auckland, New Zealand.
USANA Kids Eat, the charity foundation by USANA celebrated their 5th anniversary by providing food kits to children who rely on school meals to combat hunger.
It is undoubtedly their commitment to innovation, ethical business practices and adaptability to changing trends that have brought them a long way and let’s celebrate with them the legacy they are leaving behind for others to follow.
Growth and expansion
The growth and expansion scene in 2024 saw many companies expanding their reach across geographies and technology. New entrants and strategic investments also reveal the growth of the industry and its potential to accommodate new ideas and innovations.
Global expansions
Direct selling industry sees the emergence of a new brand, Shoply.com, launched by Terry Lacore founder and CEO of LACORE Enterprises.
Lorde + Belle expands its brand presence in Canada, UK and Mexico.
Farmasi has officially started its operations in the United Kingdom. The company has also announced its plans to expand to France and Italy.
Shaklee has expanded to Australia with Melissa Seitz as the General Manager.
New Image International has expanded its operations to Republic of Korea with its premium New Zealand-made health and beauty products to Korean consumers.
Greenway Global with a current presence in 63 countries has announced its official launch in Peru with an aim to contributing to the Latin American direct selling market.
Modere started operations in Poland with a daily commission payment and a compensation plan that rewards distributors for product sales and team building in the Polish market.
Mannatech announced its next ASEAN expansion to Thailand and expects the market to be a “bridgehead for pioneering the Southeast Asian market”.
Mary Kay is now open to the Kyrgystan market with its operations initially managed from its office in Kazakhstan.
Urban Retreat has announced its expansion to Australia. The brand has already established itself in the US, Canada and European markets.
Growth leadership
Zinzino announced a 26% increase in their revenue from January-November compared to the same period in 2023.
Amway has made multimillion dollar investment in India for setting up R&D labs across the country.
PM-International has invested $22 million for its expansion in the direct selling industry of the Americas. The company is also planning to expand to Peru and Colombia along with various markets in Europe and Asia Pacific.
The Beachbody Company Inc. has been selected as the official wellness supporter of the American Diabetes Association (ADA). The organizations will combinedly work to improve the health of 136 million Americans living with diabetes or prediabetes.
Mergers and acquisitions
In 2024, direct selling industry witnessed several key mergers and acquisitions characterized by brand expansions and strategic partnerships. Let us take a look at some of the most crucial acquisitions and partnerships.
USANA announced the acquisition of Hiya Health Products LLC to expand its reach in children’s health through Hiya’s subscription model.
jBloom acquired Plunder Design and ensured a smooth transition for its customers and consultants.
Neora announced its acquisition of ACN Korea as a part of its expansion into the Asia Pacific market.
Awakend and Q Sciences established a strategic partnership with a global presence in over 27 markets.
Vida Divina purchased the Radien brand combining the products of the two companies for a unified vision.
The leading direct selling technology company Fluid acquired the mobile app company NOW Tech to create innovative solutions for the industry.
Stemtech merges with VIÁGO to offer increased opportunities for customers and stakeholders.
Full Glass Wine acquires Scout & Cellar and Splash Wines in a back-to-back acquisition process.
Sustainability initiatives and CSR
Direct selling businesses continue to emphasize their commitment on social responsibility and sustainable practices through various programs and initiatives. Whether giving out to the community or contributing to the well-being of the planet, the dedication of these businesses truly deserves recognition.
PM-International through its charitable foundation, PM We Care, donated €2,376,000 to World Vision to help underprivileged children.
dōTERRA partnered with Save the Children and distributed 59,175 kits to counter the distress caused by Hurricane Helene. The dōTERRA Healing Hands Foundation also raised $100,000 to construct a school in India.
The Mary Kay Ash Foundation came forward to support cancer research and domestic violence shelters with $2.4 million.
The Herbalife Family Foundation, the charity organization run by Herbalife granted $5 million to 164 nonprofit organizations around the world to support underserved communities.
Plexus Worldwide contributed $137,000 to support children’s cardiac care at Phoenix Children’s Center for Heart Care.
USANA Health Sciences partnered with Food Bank Australia and made $100,000 in donation to support the nutrition needs of underprivileged Australians.
LifeWave further demonstrated their commitment to the planet by donating $100,000 to support ocean clean up activities.
Hall of fame
Direct selling industry in 2024 celebrated the achievements of the most influential and outstanding leaders. The recognitions come as an applaud to the contributions they have made to the growth and success of the companies and the industry in general. These direct selling visionaries have illustrated exceptional leadership and commitment to create success for themselves and for those around them.
Mark Peterson, Chief Marketing Officer of Partner.Co was recognized as the Marketing Executive of the Year at the American Business Awards.
Bianca Lisonbee, Founder of 4Life was named the Philanthropist of the Year at the 2024 Globee Awards for International Business.
Darren Zobrist, CEO of Partner.Co was honored with Executive of the Year award at the Globee International Business Awards.
Angela (Angie) Thompson acquired Zilis and has been officially announced as the CEO of the company.
The downturns
Alongside success and growth, the direct selling industry also had to witness mass layoffs and shutdowns. Many popular direct selling companies announced shut down of operations and many chose to leave the direct selling model altogether for newer alternatives.
Tupperware was greatly impacted by the macroeconomic conditions and was forced to file a bankruptcy in September 2024. Further in December 2024, it announced the complete closure of its Orlando headquarters and laid off 145 employees. The company also closed its operations in Vietnam in December.
Thirty-One Gifts has shut down their business and left the direct selling scene by the end of 2024.
Avon Products Inc. has also initiated its Chapter 11 proceedings due to increasing financial challenges.
The Body Shop has shut down its direct selling operations in the UK and Australia.
Conclusion
The challenges and opportunities in the channel, right now, are something that we should adapt and practice. This will determine our resilience and relevance in the future of the industry. To reinstate our relevance, we must remain open to the changes and accept the trends as it arises.
Personalization and customization will be the key to grow, expand and establish authentic relationships with customers. With direct-to-consumer switch on the rise within the direct selling industry, businesses must capitalize on the established benefits of both models—personal and relationship building aspects of direct selling and behavioral and transactional aspects of direct-to-consumer.
Companies intelligent enough to take on this approach will transcend the boundaries of success and growth in the future.
Source/References: Direct Selling News, DSA, WFDSA
Disclaimer: Epixel neither promotes nor supports any of the companies mentioned in this article nor their products or services. The facts published here are represented as reported in the direct selling industry. The facts don't reflect our priorities. The article was compiled based on available resources and does not represent special mentions or priorities to organizations, persons, or products.
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