The Top 5 Network Marketing/Direct Sales Companies in Sales

Direct Selling News, published by John Fleming, an icon in the industry of direct selling/network marketing, recently published its “Global 100” list for 2009.  The list, which ranks the top-grossing companies that distribute via direct sales/network marketing, identifies such metrics as number of distributors, compensation plan and sales performance.

Using data from Lexis Nexis, Hoovers, Dun & Bradstreet, professional researchers, Standard & Poor’s, personal interviews, corporate websites and others, Direct Selling News made every attempt to verify their research before ranking the companies.

 According to the report, the top 5 companies, based on wholesale revenues in U.S. dollars, were:

5. Natura Cosmeticos, SA

 Sales:  $2.4 billion

Markets: Personal care products and fragrances

Distributors:  1 million +

Employees: 5,000+

Marketing Style: Person-to-person and retail

Comp plan:  Bi-level

Based in Sao Paulo, Brazil, this company was founded in 1969 and offers more than 900 products.

4. Mary Kay, Inc.

 Sales:  $2.5 billion

Markets: Skin care products and color cosmetics

Distributors:  2 million

Employees: 5,000

Marketing Style: Person-to-person and party plan

Comp plan:  Single and multi-level

Founded by Mary Kay Ash of Texas in 1963 after another man was, once again, promoted over her (at twice the salary).

3. Vorwerk & Co. KG

Sales:  $3.58 billion

Markets: Cosmetics and home appliances

Distributors:  530,000

Employees: 23,000

Marketing Style: Direct sales

Comp plan:  Multi-level

Founded in 1883 as a carpet-factory by Carol and Adolph Vorwerk in Germany.

 2. Amway

 Sales:  $8.4 billion

Markets: personal-care, beauty-care and home-care products

Distributors:  3 million +

Employees:  13,000+

Marketing Style: Person-to-person

Comp plan:  Multi-level

Founded in 1959 by Jay Van Andel and Rich DeVos in West Michicgan.  They launched their business selling NUTRILITE® Dietary Supplements door to door.   Amway’s parent company is Alticor.

 1.  Avon

 Sales: $10.3 billion Markets: beauty products, jewelry and apparel

Distributors:  6.2 million

Employees:  42,000

Comp plan:  Single and multi-level

The company was founded in 1886 as the California Perfume Company by David McConnell, who was just 28 at the time. The company was renamed after the river, Avon, which runs through Stratford-On-Avon, William Shakespeare’s home town in the English Midlands.