Long Post for Investors (redflix S3E10)
This is my last part about Direct Sales which I put in the board info section yesterday for those that found it.
As always, these are just one shareholder's views. Do your own DD and don't get it off a message board.
Q: How many companies in the direct selling space?
A: There are over 10,000+ Direct Selling companies worldwide
Q: How much do they make?
A: About 30 make more than $1B in revenue. Over 100 make over $100M. The top 200 total over $100B.
Q: How many direct sales companies are customers of VERB?
A: VERB currently has approximately 93 clients in the network marketing and affiliate marketing sector, which include Young Living Essential Oils, Isagenix International, Vasayo, Nu Skin, Nerium, Forever Living, Seacret Spa among many others.
Q: You listed less than a dozen, who are the 80+ others?
A: That list was from the April prospectus where the company can't list all of them. There are 30 listed on the VERB's Sound Concept site as well. Keep in mind some of the largest companies in the world will not allow a supplier to publish their name.
Q: Are any of these companies larger ones that I would know?
A: Nu Skin, as an example, is a company from Provo Utah with $2.68 billion in 2018 revenue up 18% last year. Nu Skin is also traded on the New York Stock Exchange under the symbol "NUS." More information is available at nuskin.com.
Q: How many customers does a company like Nu Skin have?
A: In Asia/Pacific alone they had 1,244,000 customers. Other markets were not published.
Q: How many employees and sales associates does Nu Skin have?
A: As of December 31, 2018, Nu Skin had approximately 4,900 full- and part-time employees worldwide. According to wikipedia, 1.2 million independent distributors
Q: Could many of those independent distributors from Nu Skin be VERB subscribers one day? That would be a lot of users just from one company.
A: Potentially. The Direct Sales space is huge, dominiated by some very large companies like Nu Skin
Q: What about the smaller companies? You mentioned 10,000+
A: VERB's customer Valentus is a good example of a small company starting out in 2014 selling coffee. Today they have sales of $50M which is no longer small. BTW, Valentus is Latin for Pevail
Q: Do all those small companies become big companies?
A: No, like many industries, the larger companies acquire good small companies with great products and a strong customer base
Q: I am interesting some extra coin. How much can you make?
A: The average Top Earner in Direct Selling is earning approxiately $20,000 per month / $240,000 per year based on 8,000+ ranks and 500+ distributors are making $1+ million a year. You'll will also see spouses teaming up to successfully make significant money.
Q: Wow, I had no idea. I realize that might be years off and a lot of hard work, but how does someone get started?
A: For Example, to be a distributor at one company, you purchase one of the five (5) product packages. Product packages along with a $20 distributor sign-up fee:
Basic Pack – $59.95 | Starter Pack – $129.95 | Advanced Pack – $199.95 | Lifestyle Pack – $499.95 | Business Builder Pack – $499.95
With 25% of the company’s overall profits paid out weekly to its distributors. Start-up bonuses can go as much as $100 and their legacy coded bonuses cap out at $100, too, in higher rankings. Team commissions can go as high as $100,000 *per week* with matching bonuses of 20% starting at the 7th rank. 1% of the company’s total global volume is shared amongst the enrollment pool and they also offer vehicle bonuses of $400 to $3000 per month based on performance. There are 7 levels of commission based on ranking: Silver, Gold, Platinum, Ruby, Emerald, Diamond, Double Diamond, Triple Diamond, Blue Diamond, Royal Diamond, Black Diamond, Crown Diamond, and lastly, Crown Ambassador.
With each level you achieve, so too does your income.
Q: Why doesn't the company just give me the product for free and I'll sell it. I don't have $20 to sign up or $59 to buy a basic package?
A: So you have skin in the game and incentive. If they gave you the product for free, how would they ever ensure you wouldn't just keep it and do nothing? Many of these companies also give you the ability to give away free samples with a small shipping charge. That is one of the best features of the VERB app.
Q: All interesting stuff, but back to VERB. How do they sell their products and make money?
A: Thought you'd never ask. This is where it's gets really, really interesting. VERB sells the solution to Direct Sales organizations. There is likely a one-time fee for setup and then ongoing cost. Some companies will set a base ongoing charge plus $X per user, where others might just bake it into a minimum number of user charge plus $X for over that number. There could be other companies that mandate, everyone needs to have app to cut a volume subscription deal.
Q: Got it, but those sound like 3 common models. What's so interesting about VERB's sales methodology?
A: Think about how a direct sales company sells. It's on a number of different levels and everyone benefits. Everybody who is selling at a direct sales company will make money.
VERB sells the app to a direct sales company who in some cases (i.e. Stream Energy), is selling the value proposition to their first line, who then are selling it to their downline. The direct sales company is possibly making money from selling the app AND they are VERB's extended sales team. Who better to sell an app then insiders of a company and there is a lot of incentive.
Q: Brilliant! Would this work for other markets?
A: In the industry, it's typically called a reseller, but in the case of direct sales, they have a double incentive with the second one being increased product sales through the use of cutting edge technology. This is a very different than the deals with Oracle, Adobe, etc.
Q: If VERB sells the app for say $10/mo to a direct sales organization to pick a number, if they in turn are reselling it internally, doesn't that cut into VERB's margins?
A: Not if VERB's customers are selling for $24.95 or $49.95
Q: I think I am catching on. It's almost like VERB is using the direct sales model to sell their app. But there are 10,000+ direct sales companies. Wouldn't VERB have to, at the very least, sell to all of them to be successful?
A: No. Half the Direct Sales market is owned by 200 companies. Many of the independent distributor work for those 200 companies. Of the almost 100 clients VERB has, for the ones you can see, take a look how many are in the top 200.
Q: Got it. Dominate the top 100 or 200 Direct Sales companies. So if one of those customers has 5000 users today and a total of 50,000 associates, even within that company, you could have 1000% growth?
A: Good math and guess who is likely doing the selling within the company for you. Hint: It's not VERB
https://www.businessforhome.org/
This is my last part about Direct Sales which I put in the board info section yesterday for those that found it.
As always, these are just one shareholder's views. Do your own DD and don't get it off a message board.
Q: How many companies in the direct selling space?
A: There are over 10,000+ Direct Selling companies worldwide
Q: How much do they make?
A: About 30 make more than $1B in revenue. Over 100 make over $100M. The top 200 total over $100B.
Q: How many direct sales companies are customers of VERB?
A: VERB currently has approximately 93 clients in the network marketing and affiliate marketing sector, which include Young Living Essential Oils, Isagenix International, Vasayo, Nu Skin, Nerium, Forever Living, Seacret Spa among many others.
Q: You listed less than a dozen, who are the 80+ others?
A: That list was from the April prospectus where the company can't list all of them. There are 30 listed on the VERB's Sound Concept site as well. Keep in mind some of the largest companies in the world will not allow a supplier to publish their name.
Q: Are any of these companies larger ones that I would know?
A: Nu Skin, as an example, is a company from Provo Utah with $2.68 billion in 2018 revenue up 18% last year. Nu Skin is also traded on the New York Stock Exchange under the symbol "NUS." More information is available at nuskin.com.
Q: How many customers does a company like Nu Skin have?
A: In Asia/Pacific alone they had 1,244,000 customers. Other markets were not published.
Q: How many employees and sales associates does Nu Skin have?
A: As of December 31, 2018, Nu Skin had approximately 4,900 full- and part-time employees worldwide. According to wikipedia, 1.2 million independent distributors
Q: Could many of those independent distributors from Nu Skin be VERB subscribers one day? That would be a lot of users just from one company.
A: Potentially. The Direct Sales space is huge, dominiated by some very large companies like Nu Skin
Q: What about the smaller companies? You mentioned 10,000+
A: VERB's customer Valentus is a good example of a small company starting out in 2014 selling coffee. Today they have sales of $50M which is no longer small. BTW, Valentus is Latin for Pevail
Q: Do all those small companies become big companies?
A: No, like many industries, the larger companies acquire good small companies with great products and a strong customer base
Q: I am interesting some extra coin. How much can you make?
A: The average Top Earner in Direct Selling is earning approxiately $20,000 per month / $240,000 per year based on 8,000+ ranks and 500+ distributors are making $1+ million a year. You'll will also see spouses teaming up to successfully make significant money.
Q: Wow, I had no idea. I realize that might be years off and a lot of hard work, but how does someone get started?
A: For Example, to be a distributor at one company, you purchase one of the five (5) product packages. Product packages along with a $20 distributor sign-up fee:
Basic Pack – $59.95 | Starter Pack – $129.95 | Advanced Pack – $199.95 | Lifestyle Pack – $499.95 | Business Builder Pack – $499.95
With 25% of the company’s overall profits paid out weekly to its distributors. Start-up bonuses can go as much as $100 and their legacy coded bonuses cap out at $100, too, in higher rankings. Team commissions can go as high as $100,000 *per week* with matching bonuses of 20% starting at the 7th rank. 1% of the company’s total global volume is shared amongst the enrollment pool and they also offer vehicle bonuses of $400 to $3000 per month based on performance. There are 7 levels of commission based on ranking: Silver, Gold, Platinum, Ruby, Emerald, Diamond, Double Diamond, Triple Diamond, Blue Diamond, Royal Diamond, Black Diamond, Crown Diamond, and lastly, Crown Ambassador.
With each level you achieve, so too does your income.
Q: Why doesn't the company just give me the product for free and I'll sell it. I don't have $20 to sign up or $59 to buy a basic package?
A: So you have skin in the game and incentive. If they gave you the product for free, how would they ever ensure you wouldn't just keep it and do nothing? Many of these companies also give you the ability to give away free samples with a small shipping charge. That is one of the best features of the VERB app.
Q: All interesting stuff, but back to VERB. How do they sell their products and make money?
A: Thought you'd never ask. This is where it's gets really, really interesting. VERB sells the solution to Direct Sales organizations. There is likely a one-time fee for setup and then ongoing cost. Some companies will set a base ongoing charge plus $X per user, where others might just bake it into a minimum number of user charge plus $X for over that number. There could be other companies that mandate, everyone needs to have app to cut a volume subscription deal.
Q: Got it, but those sound like 3 common models. What's so interesting about VERB's sales methodology?
A: Think about how a direct sales company sells. It's on a number of different levels and everyone benefits. Everybody who is selling at a direct sales company will make money.
VERB sells the app to a direct sales company who in some cases (i.e. Stream Energy), is selling the value proposition to their first line, who then are selling it to their downline. The direct sales company is possibly making money from selling the app AND they are VERB's extended sales team. Who better to sell an app then insiders of a company and there is a lot of incentive.
Q: Brilliant! Would this work for other markets?
A: In the industry, it's typically called a reseller, but in the case of direct sales, they have a double incentive with the second one being increased product sales through the use of cutting edge technology. This is a very different than the deals with Oracle, Adobe, etc.
Q: If VERB sells the app for say $10/mo to a direct sales organization to pick a number, if they in turn are reselling it internally, doesn't that cut into VERB's margins?
A: Not if VERB's customers are selling for $24.95 or $49.95
Q: I think I am catching on. It's almost like VERB is using the direct sales model to sell their app. But there are 10,000+ direct sales companies. Wouldn't VERB have to, at the very least, sell to all of them to be successful?
A: No. Half the Direct Sales market is owned by 200 companies. Many of the independent distributor work for those 200 companies. Of the almost 100 clients VERB has, for the ones you can see, take a look how many are in the top 200.
Q: Got it. Dominate the top 100 or 200 Direct Sales companies. So if one of those customers has 5000 users today and a total of 50,000 associates, even within that company, you could have 1000% growth?
A: Good math and guess who is likely doing the selling within the company for you. Hint: It's not VERB
https://www.businessforhome.org/
24
