CONFIDENTIAL
This is the Direct Selling Association’s annual Growth & Outlook Survey questionnaire. The survey is open to any company that distributes consumer products or services in the U.S. through direct selling, network and/or multilevel marketing.

DSA's 2008
Direct Selling Growth & Outlook
Survey Questionnaire

Response Deadline is extended to Monday, April 27, 2009.

All data are for calendar 2008 unless otherwise stated. If precise data are not available, please provide your best estimates. Rounded numbers are acceptable.

Section A - Sales Data

1. What were your company's net sales of consumer products and services in the United States that were generated via direct selling for the following calendar years? Please express your net sales net of direct sellers' profit and retail commission.

Exclude (1) the sales of sales aids and materials to your direct sellers/distributors, (2) shipping revenue, and (3) revenue from retail customers purchasing directly from your company where no direct seller/distributor was compensated, and (4) sales and use taxes.

a. 2007 $

b. 2008 $

2. Please provide your best estimates of the wholesale value of your net sales provided in question 1. The wholesale value should be net of any cash or non-cash compensation (e.g., commissions, overrides, bonuses, trips, cars) paid out to direct sellers.

a. 2007 $

b. 2008 $

3. Please provide your best estimates of the value of your net sales provided in question 1 at suggested retail price. In other words, what would have been the retail sales dollars had all the products/services sold at retail at the suggested retail price?

a. 2007 $

b. 2008 $

4. Please provide your best estimates of the total actual dollars paid by the ultimate consumers (i.e., end users) for the consumer products and services that are accounted for by your net sales provided in question 1. For products and services consumed by a direct seller, the value of the product/service is the dollars paid by the direct seller to your company.

a. 2007 $

b. 2008 $

5. What percentages of your 2008 net sales dollars (as provided in question 1b) were accounted for by face-to-face (in-person) selling in the following places or by remote selling via the following media or by autoshipments:

Face-to-Face Selling

Question Text

a.% In the home (including self-consumption by direct sellers)

b.% In the work place (such as an office or factory)

c.% At a fair, shopping mall, or other temporary location

d.% Other locations

(please describe)

e.% Subtotal: face-to-face selling

Remote Selling

f.% Phone

g.% Internet (World Wide Web, e-mail)

h.% Other

(please describe)

i.% Subtotal: remote selling

Autoshipments

j.% Autoshipments by your company to retail customers of your direct sellers

100% Total (2008 net sales dollars = 100%)

6. What percentages of your 2008 U.S. net sales dollars (as provided in question 1b) were accounted for by each of the following products/services? If a product or service of your company is not listed, please describe it in "Other" and provide the percentage; we will classify it into a product/service category.

1. Clothing & Accessories

a.% Clothing

b.% Lingerie/sleepwear

c.% Shoes

d.% Jewelry

e.% Fashion accessories

f.% Subtotal Category 1

2. Personal Care

a.% Cosmetics

b.% Skin care

c.% Fragrances

d.% Hair care

e.% Nail care

f.% Toiletries/daily care/oral care

3. Home & Family Care

a.% Home care/cleaning products

b.% Animal & pet care products

c.% Auto care products

d.% Gourmet foods & beverages

e.% Subtotal Category 3

4. Home Durables

a.% Cookware

b.% Cutlery

c.% Crystal/china

d.% House/kitchen wares

e.% Tableware

f.% Christmas decorations

g.% Gifts & decorative collectibles/accessories

h.% Gardening

i.% Furniture/furnishings

j.% Art/framing

k.% Home appliances

l.% Air filters/air filtration systems

m.% Water treatment systems/filters

n.% Vacuum cleaners

o.% Bedding & linens

p.% Subtotal Category 4

5. Wellness Products

a.% Weight mgmt products/programs (wgt mgt supplements, meal replacement bars & drinks)

b.% Nutritional supplements (vitamins, minerals, dietary supplements, herbals & specialty)

c.% Sports/energy & body-building (body-bldg supplements, energy bars, sports & protein drinks)

d.% Health foods & beverages

e.% Children's supplements

f.% Exercise equipment

g.% Health/nutrition/fitness instructional materials

h.% Subtotal Category 5

6. Leisure/Educational Products

a.% Books

b.% CDs/cassettes/videos/DVDs

c.% Encyclopedias

d.% Educational publications

e.% Computer software

f.% Non-decorative collectibles

g.% Crafts

h.% Toys & games

i.% Scrap booking/photo albums/photography

j.% Sporting goods

k.% Subtotal Category 6

7. Services

a.% Financial services

b.% Telecomm/long-distance srvcs

c.% Legal services

d.% Internet services (e.g., ISP, Web site design, e-mail services)

e.% Group buying clubs/services

f.% Travel services

g.% Subtotal Category 7

8. Other Products & Services

a.% Other product/service 1

(please describe)

b.% Other product/service 2

(please describe)

c.% Subtotal Category 8

100% Total (2008 net sales dollars = 100%)

7. What percentages of your 2008 U.S. net sales dollars (as provided in question 1b) were accounted for by sales that took place in the following nine U.S. Census divisions:

a.% New England (CT MA ME NH RI VT)

b.% Middle Atlantic (NJ NY PA)

c.% South Atlantic (DC DE FL GA MD NC SC VA WV)

d.% East North Central (IL IN MI OH WI)

e.% East South Central (AL KY MS TN)

f.% West North Central (IA KS MN MO ND NE SD)

g.% West South Central (AR LA OK TX)

h.% Mountain (AZ CO ID MT NM NV UT WY)

i.% Pacific (AK CA HI OR WA)

100% Total (2008 net sales dollars = 100%)

8. What percentages of your 2008 U.S. net sales dollars (as provided in question 1b) were derived from:

a.% Individual/person-to-person/door-to-door selling

b.% Party plan selling/group selling/classes

c.% Retail customers placing orders directly with your company where direct sellers are compensated

d.% Autoshipments to retail customers of your direct sellers

e.% Personal consumption by direct sellers and their families

f.% Other

(please describe)

100% Total (2008 net sales dollars = 100%)

Section B - Salesforce Data

9.-12. Please provide your best estimates of the numbers of direct sellers or of distributorships for the following items below. Indicate below what type of numbers you are reporting (i.e., direct sellers or distributorships).

a. Direct sellers (individuals)
b. Distributorships (may consist of one or more persons)

Number eligible to submit an order on January 1, 2007

Plus: number recruited/added during 2007

Less: number dropped during 2007

Equals: number eligible to submit an order on Dec. 31, 2007/Jan 1, 2008

Plus: number recruited/added during 2008

Less: number dropped during 2008

Equals: number eligible to order on December 31, 2008

13. Using the same types of numbers as above (i.e., direct sellers or distributorships), provide your best estimates of the numbers that actually submitted orders for consumer products and services (excluding start-up kits and sales aids/materials) for the following calendar years.

a. 2007 #

b. 2008 #

14. Using the same types of numbers as above (i.e., direct sellers or distributorships), provide your best estimates of the numbers that received bonuses or other cash compensation from your company during the following calendar years.

a. 2007 #

b. 2008 #

On average, at any given point in time in 2008, what percentages of your direct sellers that were eligible to submit an order fell into the following categories. Please provide your best estimates.

15. What percentages were:

a.% Non-Purchasers (those inactive per your company's definition, or, if your company does not distinguish between active and inactive direct sellers, those that have not ordered in the past 90 days)

b.% Personal users/discount buyers (purchase products primarily for themselves or their family/household use)

c.% Product retailers (primarily sell products to others)

d.% Business builders (recruit others, sell products, build downline)

100%

16. What percentage worked:

a.% Full-time (30 hours per week or more)

b.% Part-time (zero hours to less than 30 hours per week)

100%

17. What percentage were in:

a.% One-person distributorships

b.% Two-person distributorships (count as 2 people)

c.% Multi-person distributorships (count a 3-person team as 3 people, 4-person team as 4 people, etc.)

100%

18. What percentage were:

a.% Female

b.% Male

100%

Section C - Company Profile Data

19. Does your company offer a plan that compensates participants not only for their own sales, but also for the sales of their recruits and the sales of the recruits of those recruits?

Yes
No

20. In what month and year did your firm first start direct selling in the United States?

Month
Year

21. What is your predominant sales strategy?

a. Individual/person-to-person/door-to-door
b. Party plan selling/group selling/classes

Section D - Corporate Outlook

22. In your opinion, what trends have developed or what changes have occurred in the U.S direct selling industry over the past three to five years?

23. What trends or changes do you anticipate in the U.S. direct selling industry over the next three to five years? For example, in your opinion, how will the current recession affect the industry over the next three to five years, in terms of selling strategies, the types of people attracted to the industry, the industry mix of premium versus value products, how technology is employed by direct sellers, and so forth?

Please note here any comments you may have about your answers or about the survey in general.

Please provide the following contact information:

Your Name
Your Title
Your E-Mail Address
Your Direct Dial Phone Number

Questions? Please contact Paul Bourquin of Nathan Associates at (703) 516-7776 or at pbourquin@nathaninc.com .

Survey results will be made available in July 2009 at no charge to companies that submit a substantially complete questionnaire. Companies that do not participate may purchase the survey report in July 2010. Individual company responses are not available to anyone under any circumstances and the results report will contain data reported in the aggregate only.

Please indicate below the person to whom any questions should be directed and two persons to whom the survey results should be sent.

Company

Address

Person to whom any questions should be directed:

Name & Title

Phone

Two persons to whom you'd like us to send the survey results via email:

Name/Title/Email

Before submitting this form, please print it by selecting the "Print" menu on your browser. This is to ensure that you have a record of your responses.

Thank you for participating!

For questions/comments, please contact:
Paul Bourquin, Managing Economist
Nathan Associates Inc.
2101 Wilson Blvd., Suite 1200
Arlington Virginia 22201
Phone: (703) 516-7700
Fax: (703) 351-6162
E-mail: pbourquin@nathaninc.com
Web site: www.nathaninc.com

To confirm that this is a DSA-sponsored research initiative, please contact DSA’s Eileen O’Neill, VP, Research Services, or Jenette Axelrod, Research Assistant, at (202) 452-8866.