“Direct sales is not a business model that can be carried on for a long time.” This is a quite widely accepted belief, isn’t it? Consequently, it creates hesitancies in both investors who consider investing in this industry and in individuals who think about starting a direct selling business.
While there are no meaningful statistics proving direct selling companies have shorter life spans than, for instance, technology start-ups, many people still believe and support this narrative.
On the other hand, we know that there are strong examples within the direct sales industry that indicate this claim does not have a strong ground at all.
Vorwerk
One of these examples is Europe’s largest direct sales company, Vorwerk. Vorwerk celebrated its 140th anniversary last March. Yes, it was founded back in 1883! Carl Vorwerk founded Vorwerk & Co. as a small carpet factory. By 1909, Vorwerk had already become a familiar brand beyond its region and the company was growing rapidly.
In 1929, “Kobold”, Vorwerk’s innovative vacuum cleaner became something of a small revolution: A handy, but a very effective appliance. However, customers could not appreciate the advantages of it merely seeing it at retail stores. A revolutionary idea saved the day, namely the introduction of direct sales in Germany.
Today, the holding company’s office is in Wuppertal, Germany. Vorwerk’s core business includes both the production and sale of household products, namely Thermomix kitchen appliance, and Kobold vacuum cleaner. Vorwerk generated consolidated sales of €3.4 billion in 2021 and now operates in over 60 countries.
Avon
Another well-known example is obviously, Avon. While selling books door-to-door in the U.S. in the late 1800s, David H. McConnell started carrying free perfumes which he made himself. He used these as “door-openers” to increase sales. Soon he realized many of his clients were stay-at-home ladies and were far more interested in perfumes than the books. This led him to establish California Perfume Company (CPC) in 1886, the foundations of today’s Avon.
With all its ups and downs, the evolution of Avon’s business over the last 100+ years has been nothing but admirable. David H. McConnell’s company has grown from a fragrance-selling micro-business to a global beauty corporation and has helped pave the way for women to set up their own full-time or part-time businesses.
Amway
Amway was founded in 1959 by two life-long friends, Rich DeVos and Jay Van Andel in their basements. The word “Amway” was an abbreviation for the “American Way”.
They had known each other from high school years when they decided to join 
forces to set up their own business. However, Amway was not their first business venture that they started. The two friends went into various businesses: They had a flight school, opened a drive-in restaurant, and bought a sailing vessel to launch a sea-going business.
Amway’s first international expansion was into Canada in 1962 that was followed by many others in time. Amway has been the world’s largest direct sales company since 2012. The company reported $8.1 billion global sales for 2022.
Mary Kay
While her husband was in the army in the World War II, Mary Kay Ash sold books door-to-door. Then Ash joined a company to quit later in 1962, when a man she had trained was promoted instead of her with twice her salary.
After retiring, her first idea was to write a book to assist women in their male-dominated corporate careers. But this turned into a business plan to set up her own company, Mary Kay Cosmetics with an initial investment of $5,000. The company started with nine sales consultants in 1963.
Mary Kay shortly became a success in the beauty industry. At the heart of everything, there was Mary Kay Ash’s enthusiasm. Her business approaches attracted a lot of interest and were admired by many.
Mary Kay products are sold in more than 35 markets worldwide. The company’s global independent sales force exceeds 3 million and sales of products $3 billion.
And Others…
There are clearly a number of prominent players in the industry that have been in business for decades. Earl Tupper, for instance, established Tupperware in 1946. The same year, Saladmaster was also born. AMC International was founded in 1963. Europe’s cosmetics direct seller Oriflame is turning 56 and Avon’s current owner Natura is celebrating its 54th anniversary this year. Nature’s Sunshine, PartyLite and Arbonne have all been around since the ’70s. And last but not least, Herbalife started in 1980, and is 43 years old now…
I heard somebody asking, “But what about Tupperware?”. Tupperware is currently not in good shape, for sure. Maybe it will survive, maybe not. However, we’re having this conversation 77 years after it started business!
To conclude, these companies mentioned here and many others are still alive and kicking! So, when somebody says direct selling as a business model has a short life span by nature, it is worth remembering these facts.
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Hakki Ozmorali is the Founder of WDS Consultancy, a management consulting and online publishing firm in Canada, specialized in providing services to direct selling firms. WDS Consultancy is the publisher of The World of Direct Selling, global industry’s leading weekly online publication since 2010. Hakki Ozmorali is an experienced professional with a strong background in direct sales. His work experiences in direct selling include Country and Regional Manager roles at various multinationals. You can contact Hakki here.
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