Agenda: • Welcome • Building an Association that is a

Force for Good • 2014 Growth & Outlook Report • Q&A

Dial-in: 1-800-394-6604 Password: 864342

DSALive! Webinar

August 12, 2014 www.dsa.org/dsalive

Enhance the POWER of direct selling

to be a FORCE FOR GOOD

U.S. DIRECT SELLING ASSOCIATION INITIATIVES 2014-2015

How we will accomplish the objective?

Who will lead the charge?

What will each committee deliver?

• Design and execute a focused plan to secure bi-partisan political support for direct selling

• Implement plan to pass federal direct selling legislation

Gov’t Relations Committee Michael Lunceford

By securing vital political influence

THE ONE THING WE WILL ACCOMPLISH

Enhance the power of direct selling

to be a force for good

U.S. DSA DIRECT SELLING PAC

RECOGNITION LEVEL MEMBER COMPANIES SUPPLIER MEMBERS

A-PAC

B-PAC

C-PAC

$20,000/year

$10,000/year

$5,000/year

$10,000/year

$5,000/year

$1,000/year

ANNUAL POLITICAL MUSCLE GOAL = $1,000,000

How we will accomplish the objective?

Who will lead the charge?

What will each committee deliver?

• Design and execute a focused plan to secure bi-partisan political support for direct selling

• Implement plan to pass federal direct selling legislation

• Refine a focused message for a targeted audience

• Determine the means of message dissemination (including leveraging sales force and social media)

• Lead debate on critical issues, e.g., - How does DSA best promote

image enhancement? - Roles of DSA and DSEF in

promoting direct selling • Emerge with objectives and plan

Gov’t Relations Committee Michael Lunceford

Communications Committee Mark Stastny

Strategic Planning Committee Marjorie Fine

By securing vital political influence

By effectively communicating the positive impact of direct selling

By defining DSA’s role in Industry critical issues

THE ONE THING WE WILL ACCOMPLISH

Enhance the power of direct selling

to be a force for good

U.S. DIRECT SELLING ASSOCIATION INITIATIVES 2014-2015

DSA Chairman Truman Hunt’s Vision

Bring policymakers to your facilities to better understand direct selling

Promote the Direct Selling Proclamation and encourage your field members to sign it

Send your field salesforce members to DSA’s 2014 Direct Selling Summit on Capitol Hill

Encourage your field members to share their political connections with you – and with DSA

Engaging in and supporting DSA’s new political action effort, Direct Selling Empowers Americans

Message from Joe Mariano, President, DSA

• Welcome to the 2014 Growth & Outlook Report!

• This survey sizes the direct selling market in the U.S.,

determines year-over-year growth rates, and it allows us to present benchmarks for you and your company to measure your performance against the industry.

• Timely statistical data is crucial in our efforts to promote and grow the industry.

• This survey will enhance our intelligence and enable us to more

accurately report industry statistics to our constituencies.

• Thank you for your support and participation!

DSA 2014 Growth & Outlook Report

2014 Growth & Outlook Report • Top-line results • Industry dynamics and trends

deep dive • Your Questions

Presenter:

Jeff Morris, Director, Forecasting and Financial Analysis at The Pampered Chef & Industry Research Committee Chairman

Globally, the industry is also experiencing record growth

Of the top 10 direct selling countries,

China seeing the strongest

growth with 23.3% CAGR = $27.3B. Set to pass the U.S.

United States, 18%

China, 15%

Japan, 10%

Korea, 8% Brazil, 8%

Germany, 5%

Mexico, 5%

France, 3%

Malaysia, 3%

Russia, 2%

Other, 23%

www.wfdsa.org

Global Industry: $178.5 billion; Up 8.1% in Constant 2013 US$

Even with industry challenges, 2013 was our best year ever

$29.6 $28.3 $28.6

$29.9 $31.6

$32.7

2008 2009 2010 2011 2012 2013

Estimated Retail Sales ($U.S. billions)

4.6% CAGR

3.3%YOY

Home & family care/ home durables

19.6%

Wellness 28.5% Personal care

16.3%

Services & other 22.9%

Clothing & accessories

10.8%

Leisure & educational

1.9%

The industry sells a diverse set of products & services, which is evolving to match consumer needs

Personal health and wellness product market will reach $8 billion by 2018 Energy deregulation strongly contributing to services growth

The industry sells a diverse set of products & services, which is evolving to match consumer needs

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Home &family

care/homedurables

WellnessPersonal care

Services &other

Personal Care Services &other

Clothing &accessories

Leisure &educational

2009 2010 2011 2012 2013

The number of direct sales representatives reached a new high in 2013

15.1

16.1 15.8

15.6 15.9

16.8

2008 2009 2010 2011 2012 2013

13.8% of households

Salesforce demographics

13.6% 17.6% 18.2% 21.9% 23.4% 25.8%

86.4% 82.4% 81.8% 78.1% 76.6% 74.2%

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011 2012 2013

Male Female

23%

23%

25%

21%

9%

18-34

35-44

45-54

55-64

65 or older

Mean: 46.3

Age

~1/2

3/4

With current representatives motivations are diverse - both tangible and emotional

48%

46%

38%

23%

54%

34%

23%

57%

44%

Long-term supplemental income

Short-term supplemental income

The harder I work, the more income I can make

Direct selling is a career for me

It gives me flexibility

To meet new people/expand my social circle

I get recognition for accomplishments

I get the products at a discount

I like to tell people about the product

Motivations to BECOME a Direct Seller

Entrepreneurial Motivations

Lifestyle Motivations

Product Lovers

All their motivations (except short-term income) become stronger

48%

46%

38%

23%

54%

34%

23%

57%

44%

62%

34%

59%

41%

65%

52%

46%

62%

64%

Long-term supplemental income

Short-term supplemental income

The harder I work, the more income I can make

Direct selling is a career for me

It gives me flexibility

To meet new people/expand my social circle

I get recognition for accomplishments

I get the products at a discount

I like to tell people about the product

Motivations to BECOME a Direct SellerMotivations to CONTINUE as a Direct Seller

Entrepreneurial Motivations

Lifestyle Motivations

Product Lovers

DSA expects continued growth at 3-5% for the next five years

3.3%

growth for 2013

3-5% growth

expected annually

Any questions?

More Questions? Contact Us

DSA: Joe Mariano, President Phone: (202) 416-6419 Email: jmariano@dsa.org Ben Gamse, Market Research Manager Phone: (202) 416-6443 Email: bgamse@dsa.org