Best Direct-Selling Companies in the Philippines?

There are many ways we can employ to be able to start a direct-selling business. For example, we need to be affiliated with a direct-selling company, then organize our sales agents or dealers. Negatively, only a very few can survive in a year's time in this trade. Employment is always more attractive to many than dwelling on a commission-based livelihood. After a year, however, only a few will decide to quit. Beyond the 5th year of operation, no single direct seller will ever return to employment again.

Why Direct Selling?

One issue we need to resolve is "Why direct selling when we can start a drug or grocery business?" My answer is that direct selling is simply the best option for those who don't have a huge starting capital to start a second-to-mall business. I'm saying "second-to-mall," for ordinary grocery or food business (I mean "ordinary," not the million-size 7-Eleven or the McDonalds!) can never beat a successful direct selling business regarding profitability and growth potential. By direct selling, I mean, the most favorite choices which are (1) the traditional credit-extension model, and (2) the real MLM (Multi-Level Marketing).

There's a saying that "a stream cannot rise above its source." To succeed, one must answer first the question: Why do this kind of business, when you can do something else? True, direct selling is tough business more so if it is also a credit-extension thing. You can do the cash-based direct selling, but it is not the one we are exploring here. Rather, it is the credit-extension-based, the less capital intensive direct selling. It is, in my opinion, a good business, because it is the direction non-mall business are now following; of course, excluding the recent trend, which is Internet marketing. (Caution: Never decide to go into direct selling business if it is not in your blood! You are sure to fail if you're only half-convinced.)

Note that by direct selling as mentioned above, we are not discussing here the classic MLM model. I will cover the MLM platform on another page. Our recommendation for the best MLM is Atomy. If you are not yet connected with Amway, AIM Global, GNLD, Forever Living, Usana, etc., then Atomy is the next best to do in life for the MLM direct selling platform.

What are the Common Examples of Direct Selling?

Anything you will sell to the prospect personally is termed as direct selling business. Somehow, we have direct-selling experience somewhere. Direct Selling is now defined differently than before since MLM (Multi-Level Marketing) is also considered as a branch of direct selling. One author ventured to claim that in Japan, around 70% of products is sold via the MLM scheme.

The Problem with Pure MLM

The MLM scheme was pioneered by GNLD, Amway, Shaklee, among others over 60 years ago. Perhaps there are other much older MLM companies not mentioned here, which can be searched easily through the  Interwebs. These companies just mentioned lasted all these years because of their quality products and their quite demanding points-based discount method. Personally, I am not very enthusiastic with the native MLM unless it is Atomy. The MLM fork known as the "binary" marketing plan is worse than the native MLM regarding lifespan. Most "binary" companies die early, perhaps because of the pyramiding-blood in them. I wouldn't recommend those second to fly-by-night business groups that are "binary" in their marketing plan. They are a waste of your time. The reinvented binary setup is Atomy, and we are recommending it sincerely.

The Best Direct Selling Options

The best (non-MLM) direct selling option is known as the traditional one. Avon Cosmetics, Inc.* is one of the pioneers in this trade, being over 130 years (in 2016) already in the market. (Note that Avon is now considered a semi-MLM just like the others for the leveraged income possibility injected into the compensation plan).

In the Philippines, Natasha is simply the most popular around five years ago. Tupperware Brands and Avon Cosmetics are now competing in the hearts of the ordinary dealers aside from Natasha and MSE. There are hundreds of traditional direct selling companies in the market today that we can choose from.

Here's my biased list of top best companies (at least in the Philippines) according to income potential and sustainability (please, it's just my poor opinion, not verified by the professional institutions): My top one is Natasha, second is Avon or Tupperware Brands. For the third one you may choose from among the existing ones, which are: MSE, Personal Collection, Sundance, Beautiful Horizon, Ever Bilena, etc.)

Why Natasha and Avon or Tupperware Brands?

I wrote elsewhere that Natasha is best since its discount system is based on gross; while Avon is second best since it converted itself into a multi-level-marketing company just like Natasha. In the case of Tupperware Brands, its latest marketing setup is now gaining acceptance also. I hold on to this argument since the based-on-gross discount system is unheard of as far as I know (that is, before the advent of Natasha!) in this industry. The usual rebate-setup that's used by Avon ever since is best described as the diminishing discount method, which means that the deeper the recruit generation, the lesser the discount. The supremacy of both Avon and Tupperware Brands, however, is that even though they are not giving a commission based on the gross amount, they are giving rebates not just on two levels (namely, the ranking leader and the ordinary retailer.) In Avon (also in Tupperware Brands), for example, the lowest retailer, the average, and ranking manager, the supervisory rank as well as the director level--all these levels have rebates in the marketing plan!

Now why rate Avon or Tupperware Brands as just second to Natasha? My answer (in 2011, the very first time I wrote this article) is better understood if given in the form of an analogy: Many will decide to leave Avon for Natasha than the otherwise. As of this updated post, however, both Avon and Tupperware are gaining strength if measured based on customer transactions daily on their respective branches. Personal Collection is also one player that is considered dominant in the industry.

Best Direct-Selling Companies in the Philippines?

Now why Avon and Tupperware Brands as second best? Simple, we are talking about a lifetime direct-selling business here, and no one can beat Avon's track record of persistent leadership for over 130 years. The same is true with Tupperware that is over 70 years old already. Truth to tell, Avon/Tupperware "veterans" will never carry Natasha, for reasons of "company stability" and the multi-national-company impression. (I don't buy this company stability issue personally at any rate!) Natasha is a billion-peso company and is now having, on its record, over 20 years of industry leadership; but Avon's 130 years (and Tupperware's 70 years) is always something in most direct sellers' mindset.

Update on the Best Direct-Selling Companies in the Philippines?

Just recently, almost all traditional credit extension direct sales have reinvented themselves. The popular Natasha and MSE have gone into massive recruitment revising the Pareto Rule in the process. The Rookie Program in Natasha seems brought in to lessen the impact of the expensive semi-MLM attached to the Compensation Plan. The MSE, on the other hand, has shifted to a more relaxed sales requirement to get the rank (Natasha is employing the same strategy on the Fashion Pro quota). Somehow the leveraged income potential (MSE also having a little MLM flavor) of the recruiters is reduced, thus giving way to the seasoned direct sellers to also consider joining with the other players in the industry.

Speaking of marketing improvement as of this updated post, the Tupperware Brands seems leading the trade based on the argument also employed by Avon that they are giving more regarding rebates to the high ranking agents.

Read: Reversing the Pareto Principle in Direct Selling

What about Sundance, MSE, F/X, Ever Bilena, Personal Collection, Beautiful Horizon Incorporated (BHI)? Well, if you have the capability, never forget to carry them all since your dealers would demand that these brands be made available to them also. At the end of the day, however, one will notice that based on the sales of the different product catalogs (of Natasha, MSE, Ever Belina, etc.) placed together in one sales office, the most saleable are only around three. In our simple observation, the catalogs of Natasha, Avon, Tupperware, MSE, Personal Collection are the ones moving fast.

Personal Collection is considered one of the leaders in home care products in the Philippines. Sensing the market, almost all players are now carrying the home care category.

* Note: Stanhome closed shop in the Philippines already sometime in 2013 and Splash Direct Sales, in 2017; while Avon Cosmetics was also reported to have been experiencing severe financial turbulence after over a hundred years as queen in the direct selling industry. From the Internet, we recently learned that Avon was slowly getting out of the woods.--Updated post: 10/12/2015; 02/04/2017