Direct Selling Association 0912 Boardbook

AGENDA DSA BOARD OF DIRECTORS
Gaylord National Hotel and Convention Center, National Harbor, Md.

September 11, 2012 9:00 a.m. Noon
Item
1.
Discussant
Page
Call to Order/Welcome
Introduction of Board Members
Brett R. Chapman
2.
Chairmans Goals & Vision
Brett R. Chapman
3.
Approval of Minutes*
Brett R. Chapman
4.
Announcement and Appointment of

Executive Committee*
Brett R. Chapman
5.
Treasurers Report*
William R. Dangl
13
6.
Communications ReportERA/Image
Enhancement Update
Amy Robinson/
Scott Monroe
33
7.
Code Administrators Report
Jared O. Blum
8.
Management Report
Joseph Mariano/
Adolfo Franco
9.
Direct Selling Education Foundation
John Parker/
Charles Orr
10.
Committee and Council Reports
Committee Chairs
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Orville Thompson
Lori Bush
Pam Dean
Laura Beitler
Bryan Harrison
JJ LeBlanc
John Venardos
Renee Cogdell Lewis
Michelle Jones
Jerry Kelly
Annual Meeting Committee

Awards Committee
Education Committee
Ethics & Self-Regulation Comm.
Government Relations Committee
Industry Research Committee
International Council
Lawyers Council
Member Services Committee
Nominating Committee
1
53
30
32
34
35
36
39
41
44
46
k.
l.
m.
11.
Strategic Planning Committee

Supplier Advisory Committee
Diversity Task Force
Executive SessionMembership
Development*
a.
b.
c.
Marjorie L. Fine
Edward A. Dion, Jr.
Leo Williams
48
50
51
Adolfo Franco
14
Review of Procedures
Presentation of Direct Selling company applicants
Presentation of Supplier company applicants
12.
New Business
Brett R. Chapman
13.
Adjournment
Brett R. Chapman
*May Require Board Action
MINUTES
EXECUTIVE COMMITTEE
DIRECT SELLING ASSOCIATION
---oOo--A meeting of the Direct Selling Association Executive Committee was held on Saturday, June 2,
2012, at The Gaylord Texan in Grapevine, Texas.
Attending:
Mr. Jerry Kelly (Silpada Designs) Chairman
Ms. Anne Butler (PartyLite Gifts, Inc.)
Mr. Brett R. Chapman (Herbalife)
Mr. Matt Dorny (Nu Skin Enterprises)
Ms. Marjorie Fine (Shaklee Corporation)
Mr. Thomas F. Kelly (Silpada Designs)
Mr. Michael L. Lunceford (Mary Kay Inc.)
Mr. Daniel L. Murphy (Selkirk & Sutherland Group, LLC)
Mr. Orville Thompson (Scentsy, Inc.)
Staff and Counsel:
Mr. Joseph N. Mariano President (Direct Selling Association)
Mr. Adolfo A. Franco Executive Vice President (Direct Selling Association)
Ms. Deborah T. Ashford General Counsel (Hogan Lovells US LLP)
Chairman Kelly called the meeting to order at 11 a.m. and welcomed members of the
Committee.
Approval of Minutes
Upon a motion properly made and seconded, the minutes of the March 16, 2012, Executive
Committee meeting were approved as presented.
Treasurers Report
Mr. Murphy gave the Treasurers Report as follows. The 2012 revenues are over budget and the
expenses are under budget to date. The investment advisor has been successfully changed to
UBS from the two previous managers. This change has resulted in cost savings because fees are
now 55 basis points. UBS will be adding investments in Equity Traded Funds. Mr. Murphy then
reviewed the Investment Policy, including the 60/40 allocation between equities and fixed
income investments. The new policy sets ranges that better utilize funds because advisors are not
bound by set amounts that might disadvantage returns because of the necessity of selling in a bad
market to meet set percentage allocations.
Upon a motion properly made and seconded, the revised Investment Policy was approved.
Upon a motion properly made and seconded, the Treasurers report was approved as
presented.
Nominating Committee Report
Chairman Marjorie Fine reported on behalf of the Nominating Committee. Tom Kelly has joined
Silpada and will no longer serve on the Board. Avons Rich Makover will replace Mr. Kelly.
President Joseph Mariano then reviewed the slate of officers and nominees to the Board of
Directors.
Upon a motion properly made and seconded, the following slate was approved as
presented.
Officers:
Chairman: Brett R. Chapman (Herbalife)
Vice Chairman: Orville Thompson (Scentsy, Inc.)
Vice Chairman: Truman Hunt (Nu Skin Enterprises)
Treasurer: William R. Dangl (Amway)
Immediate Past Chairman: Jerry Kelly (Silpada Designs)
Past Chairman: Marjorie L. Fine (Shaklee Corporation)
Directors:
Traci Lynn Burton (Traci Lynn Fashion Jewelry)
Joan Hartel Cabral (Vantel Pearls in the Oyster)
Cari Christopher (Signature HomeStyles)
Richard Jutkins (Stampin Up!)
Friedrich Kroos (JAFRA Cosmetics International, Inc.)
Richard Makover (Avon Products, Inc.)
Cindy Monroe (Thirty-One Gifts)
Peter Schneider (Primerica, Inc.)
Management Report
Executive Vice President Adolfo Franco reported a dues uptick, and indicated that there is good
reason to meet or exceed the $4.3 million 2012 dues budget goal. President Joseph Mariano
reported that he and Mr. Franco continue to meet regularly with possible new member
companies. A discussion followed on how to attract new member companies. Mr. Mariano
reported that staff are focusing on programs that appeal to senior management, such as the
Annual Meeting CEO track and the General Counsel Retreat that was held in February 2012. He
also noted that competition in the meeting space is increasing.
Mr. Mariano encouraged members of the Committee to attend the Investors Forum at the Annual
Meeting, at which new industry data will be presented.
Mr. Mariano then reported that DSA and DSEF have been discussing working together to cobrand the Hartford Insurance affinity program.
Upon a motion properly made and seconded, the Committee approved the Hartford
Insurance co-branding program and authorized Mr. Mariano and Mr. Franco to pursue an
agreement with Hartford and with DSEF, in consultation with legal counsel.
Having no further business, the Committee meeting was adjourned.
Respectfully submitted,
________________
Adolfo Franco
Secretary
MINUTES
BOARD OF DIRECTORS
DIRECT SELLING ASSOCIATION
---oOo--A meeting of the Direct Selling Association Board of Directors was held on Saturday, June 2,
2012, at the Gaylord Texan in Grapevine, Texas.
Attending:
Officers:
Mr. Jerry Kelly Chairman (Silpada Designs)
Ms. Anne Butler Vice Chairman (PartyLite Gifts, Inc.)
Mr. Brett R. Chapman Vice Chairman (Herbalife)
Ms. Marjorie L. Fine Immediate Past Chairman (Shaklee Corporation)
Mr. Thomas Kelly Past Chairman (Silpada Designs)
Mr. Daniel L. Murphy Treasurer (Selkirk & Sutherland Group, LLC)
Mr. Joseph Mariano President (Direct Selling Association)
Mr. Adolfo Franco Secretary (Direct Selling Association)
Directors:
Ms. Laura M. Beitler (Mary Kay Inc.)
Mr. Richard B. Brooke (Oxyfresh.com/21Ten Inc.)
Ms. Lori Bush (Rodan + Fields Dermatologists)
Ms. Heather Chastain (Celebrating Home)
Ms. Angela Loehr Chrysler (Team National)
Ms. Renee Cogdell Lewis (lia sophia)
Ms. Pam Dean (Avalla)
Mr. Matt Dorny (Nu Skin Enterprises)
Mr. Timothy A. Horner (Premier Designs, Inc.)
Mr. Michael J. Iacono (Iacono Production Services, Inc.)
Ms. Judith N. Jones (Amway)
Ms. Catherine R. Landman (The Pampered Chef)
Mr. Michael L. Lunceford (Mary Kay Inc.)
Mr. Scott Monroe (Thirty-One Gifts)
Ms. Kay Napier (Arbonne International, LLC)
Mr. Ryan Nelson (Melaleuca, Inc.)
Mr. Mike Nichols (The Kirby Company)
Ms. Joani M. Nielson (Tastefully Simple, Inc.)
Mr. Jeffrey Reigle (Regal Ware, Inc.)
Mr. Rudy Revak (Symmetry Corporation)
Mr. Jeff Stroud (Private Quarters)
Ms. Connie Tang (Princess House, Inc.)
Mr. Orville Thompson (Scentsy, Inc.)

Mr. Joseph P. Urso (Aerus LLC-Vollara, LLC)
Mr. David A. Wentz (USANA Health Sciences, Inc.)
Gen. Leo V. Williams (Take Shape for Life, Inc.-Medifast)
Guests:
Ms. Anne Aldrich (Artemis Strategy Group)
Ms. Traci Lynn Burton (Traci Lynn Fashion Jewelry)
Ms. Cari Christopher (Signature HomeStyles)
Ms. Stacey Clark (Soul Purpose Lifestyle, Inc.)
Mr. Mike Costache (Genius Giver, Inc.)
Ms. Brenda Cude (University of Georgia)
Ms. Susan Eerdmans (Avon Products, Inc.)
Mr. John T. Fleming (Direct Selling News)
Mr. J. Stanley Fredrick (Mannatech, Inc.)
Ms. Katherine Gardner (VideoPlus, L.P.)
Ms. Joan A. Hartel Cabral (Vantel Pearls in the Oyster)
Mr. Harry W. Hersey, III (Garden State Nutritionals, Inc.)
Mr. Stuart Johnson (VideoPlus, L.P.)
Mr. Richard Jutkins (Stampin Up!)
Mr. Alan D. Kennedy (Mannatech, Inc.)
Mr. Friedrich Kroos (JAFRA Cosmetics International, Inc.)
Ms. Michelle Larter (IMN)
Ms. JJ LeBlanc (Mary Kay Inc.)
Mr. Richard Makover (Avon Products, Inc.)
Mr. Solomon McCluster (IDSTC)
Ms. Josephine Mills (Avon Products, Inc.)
Ms. Cindy Monroe (Thirty-One Gifts)
Mr. Nathan Moore (Mary Kay Inc.)
Mr. James A. Northrop (Winfield Consulting)
Ms. Julie Paashe (Artemis Strategy Group)
Mr. John Parks (John A. Parks Co., Inc.)
Mr. Andre Peterson (Morinda Bioactives)
Mr. Brad Reichard (FOCUS Communications LLC)
Mr. Robert David Roach, Jr. (The Hartford)
Mr. James Stitt (CUTCO/Vector Marketing Corporation)
Mr. S. Kerry Tassopoulos (Mary Kay Inc.)
Ms. Michelle Wilson (XANGO LLC)
Staff and Counsel:
Ms. Deborah T. Ashford (DSA General Counsel, Hogan Lovells US LLP)
Ms. Melissa K. Brunton (Senior Vice President, Education & Meeting Services)
Ms. Nancy M. Burke (Director, Membership)
Ms. Robin B. Diamond (DSEF Program Director)
Ms. Jennifer Dunleavey (Director, Finance & Operations)

Ms. Tamuna Gabilaia (WFDSA Executive Director)
Ms. Karen E. T. Garrett (Director, Marketing & Publication Services)
Mr. Jeff Hanscom (Attorney & Government Relations Manager)
Ms. Valerie Hayes (Senior Director, Global Regulatory Affairs)
Ms. Nancy Laichas (DSEF Director, Marketing & Communications)
Mr. Charlie Orr (DSEF Executive Director)
Ms. Marcia Davis Rhinehart (Director, Executive Office & Board Activities)
Ms. Amy M. Robinson (Chief Marketing Officer & Senior Vice President)
Ms. Jenifer Van Nortwick (Global Regulatory Affairs Assistant)
Mr. John W. Webb (Associate Legal Counsel & Senior Director, Government Relations)
Ms. Alyssa Wolice (Marketing & Communications Specialist)
Chairman Kelly called the meeting to order at 1:10 p.m.
Approval of Minutes
Upon a motion made by Chairman Kelly and properly seconded, the minutes of the March
16, 2012, Board meeting were approved as presented.
Treasurers Report and Description of Audit
Mr. Daniel Murphy presented the Treasurers Report and reported that after approval by the
Board of Directors at the March 16, 2012, Board meeting, the Associations investments were
transferred from several investment firms to UBS Financial Services. As a result, the Association
has generated savings in fees.
Mr. Murphy noted the Associations operating expenses are running below budget and revenue
has increased. However, Mr. Murphy noted that Annual Meeting and seminar revenue has yet to
be factored in.
Mr. Murphy recommended minor changes to the Associations investment policies to provide
better flexibility.
Upon a motion properly made and seconded, the changes to the Associations investment
policy were adopted.
Management Report
The Chairman asked Messrs. Joseph Mariano and Adolfo Franco to present the management
report. Mr. Franco stated the Association is in a better financial position than it was in 2011 and
as of May 2012, is projected to meet its $4.3 million dues revenue goal.
Mr. Franco stated the Executive Committee approved a shared DSA/DSEF affinity program with
The Hartford Insurance Company, offering member company salesforce members home and
automobile insurance. The Association will continue to explore affinity programs in an effort to
raise revenue.
Mr. Franco discussed the Associations California Direct Selling Day, which took place in
Sacramento, Calif., on May 2, 2012. Mr. Franco reported the event as a success and thanked
Government Relations Committee Chairman Suzanne Loomis for leading the delegation of DSA
member executives. A successful fundraiser was also held for Assemblywoman Toni Atkins (DSan Diego) in Sacramento and a total of $7,500 was raised for her re-election campaign.
Assemblywoman Atkins is among the Democratic members of the California legislature whom
DSA is cultivating as a champion for the industry.
Chairman Marjorie Fine presented the Nominating Committee report. Ms. Fine recommended
the Board approve the DSA slate of nominees to the Direct Selling Education Foundation
(DSEF) Board of Directors for terms expiring in 2015, and the slate of nominees for DSA
Officers for One-Year Terms and Directors for Terms Expiring in 2015.
Upon a motion properly made and seconded, the Nominating Committee proposals were
approved as follows:
DSA Nominees to the DSEF Board of Directors for terms expiring in 2015:
Sarah Baker Andrus (CUTCO/Vector Marketing Corporation)
Daniel Moore (Southwestern Advantage)
Connie Tang (Princess House, Inc.)
Orville Thompson (Scentsy, Inc.)
John Wadsworth (Morinda Bioactives)
Officers for One-Year Terms:
Brett Chapman (Herbalife) Chairman
Orville Thompson (Scentsy, Inc.) Vice Chairman
Truman Hunt (Nu Skin Enterprises) Vice Chairman
William R. Dangl (Amway) Treasurer
Jerry Kelly (Silpada Designs) Immediate Past Chairman
Marjorie Fine (Shaklee Corporation) Past Chairman
Directors for Terms Expiring in 2015:
Traci Lynn Burton Traci Lynn Fashion Jewelry
Joan Hartel Cabral Vantel Pearls in the Oyster
Cari Christopher Signature HomeStyles
Richard Jutkins Stampin Up!
Friedrich Kroos JAFRA Cosmetics International, Inc.
Richard Makover Avon Products, Inc.
Cindy Monroe Thirty-One Gifts
Peter Schneider Primerica, Inc.
Direct Selling Education Foundation

DSEF Chairman Tom Kelly and DSEF Executive Director Charles Orr presented the DSEF
report. Mr. Orr stated that fundraising efforts have improved compared to 2011.
Mr. Orr urged members to participate in the DSEF walkathon taking place during the DSA
Annual Meeting to raise money for DSEF and the Network for Teaching Entrepreneurship
(NFTE). Mr. Orr also thanked Chairman Tom Kelly for his service and reported that John Parker
(Amway) would be assuming the chairmanship of DSEF for the term 2012-2013.
Chairman Anne Butler presented the Annual Meeting Committee report. Ms. Butler announced
that the DSA Annual Meeting had a record number of attendees at nearly 1,200 registrants and
urged Board members to support Supplier members by attending Supplier events during the
Annual Meeting. Ms. Butler thanked the companies that contributed to the Annual Meeting
through the Associations sponsorship program, as well as participating as speakers in
workshops and general sessions. Ms. Butler also thanked the Nominating Committee, DSEF,
DSA Senior Vice President of Education and Meeting Services Melissa Brunton, Michael Iacono
of Iacono Production Services, Inc. and DSA President Joseph Mariano for their hard work and
efforts.
Ms. Butler also announced the 2013 Annual Meeting will be held June 9-11, in Phoenix, Ariz., at
the JW Marriott Desert Ridge & Spa, and the 2014 Annual Meeting will be held at the Peabody
Orlando in Orlando, Fla., June 1-3, 2014.
Awards Committee
Chairman Lori Bush reported on the Awards Committee undertook a major overhaul of the DSA
awards program. Participation in awards activities was beyond what was anticipated. The
Awards Committee had a goal of 50 submissions but exceeded this objective by receiving 125
submissions. Ms. Bush also thanked DSA Chief Marketing Officer and Senior Vice President
Amy Robinson for her efforts.
Communications Committee
Chairman Scott Monroe asked DSA Chief Marketing Officer and Senior Vice President Amy
Robinson to present an update on the New ERA Pilot Marketing Campaign. Ms. Robinson stated
the New ERA campaign was extended two weeks longer than originally intended to adjust the
messaging and campaign website. As a result, company outcomes were still being accumulated
and a full report and recommendations for future activity will be made at the September 2012
board meeting.
10
Ethics and Self-Regulation Committee

Chairman Laura Beitler reported that participation in the Code of Ethics Communication
Initiative continues to increase and she is pleased to see more DSA member companies applying
for recognition.
Education Committee
Chairman Pam Dean reported the Womens Leadership Retreat will take place Sept. 11-12,
2012, at the Gaylord National in National Harbor, Md. The Leadership Retreat is scheduled to
coincide with the Sept. 10-11, 2012, DSA/DSEF Board of Directors dinner and meeting, as well
as Direct Selling Day on Capitol Hill.
Chairman Suzanne Loomis and Mr. Franco reported DSAs Direct Selling Day on Capitol Hill
will take place on Sept. 12, 2012, following the DSA/DSEF Board meetings. Mr. Franco also
encouraged Board members to fill out the DSA Political Action Committee Solicitation Release
forms and urged members to donate to the DSAPAC.
Chairman Judy Jones reported that the Industry Research Committee saw a vast increase in
company submissions for the Growth and Outlook Survey since the March 2012 Board meeting
with 94 submissions and praised member companies for their participation. Ms. Jones also
thanked DSA President Joseph Mariano and Chief Marketing Officer and Senior Vice President
Amy Robinson for following up with DSA member companies after the March Board meeting.
These DSA figures have been submitted to the WFDSA for the annual global statistical survey.
Ms. Jones also reported that DSA has retained the services of Artemis Strategy Group to provide
assistance and support in assembling research data about the direct selling industry.
Chairman Ryan Nelson reported that India has presented substantial regulatory challenges and
that representatives from various DSA member companies have visited India recently in an effort
to represent the industry and promote direct selling as a legitimate business model. Mr. Nelson
also reported that a full update would be given at the upcoming International Council meeting on
the European Union and how a new directive could change how direct selling is regulated abroad
over the next few years.
Lawyers Council
Chairman Renee Cogdell Lewis provided an update on pending patent infringement litigation
and reported that Reshare filed a lawsuit against Amway, the latest of numerous suits against
direct selling companies. Ms. Cogdell Lewis also reported BurnLounge received a $17 million
11
judgment against them. BurnLounge was deemed to have engaged in deceptive advertising and a
reference was made in the decision that questions the legitimacy of internal consumption. The
Lawyers Council will monitor BurnLounges appeals and consider options for the Association.
In Chairman Aaron Garritys absence, Chairman Kelly referred members to the Member
Services Committee Board report.
Mr. Stroud introduced members of the Artemis Strategy Group who have been retained by DSA
to assist in research activities on direct selling. The Artemis executives led an interactive
discussion on changes in direct selling industry and better ways to define direct sellers. The
observations and recommendations of the Board members made during the interactive session
will be considered by the Strategic Planning Committee as it continues its review of better
communicating the essence and definition of direct selling to prospects, media, policymakers and
the general public.
Chairman Michael Iacono reported 17 new Supplier members had been added to the
Associations Supplier member roster and thanked DSA Speaker & Supplier Membership
Coordinator Sonya Cooper-Turner for her dedication and hard work on behalf of the Supplier
community.
Diversity & Empowerment Task Force
Chairman Leo Williams announced he would be retiring from Take Shape for Life, Inc.-Medifast
and consequently will be unable to continue to serve on the Associations Board of Directors, as
outlined in the DSA Board bylaws. At the request of Chairman Kelly and DSA President
Mariano, Mr. Williams agreed to continue to serve as Chairman of the Diversity &
Empowerment Task Force.
Chairman Kelly adjourned the meeting at 2:45 p.m.
Respectfully submitted,
________________
Adolfo A. Franco
Secretary
12
I.
Finance Committee
Report to the Board of Directors, September 11, 2012
(As of August 6, 2012)
II.
Action Items for the Board
III.
Committee Actions
IV.
None.
None.
Accomplishments/Future Activities Planned/FYI since June 2012
The income statement through July 31, 2012, is attached.
The 2012 Annual Meeting exceeded budgeted income. Final expenses are to be
determined. Management anticipates the meeting will generate net positive revenue.
As of July 31, 2012, the Association has received active dues income of more than
$4.2 million. Management currently anticipates active dues income will meet budget.
Total year-to-date expenses are lower than they were in 2011 for this period as
management continues to closely monitor and reduce expenses as much as possible.
In August, DSA staff met with executives of the Credit Union National Association
(CUNA) to discuss non-dues revenue opportunities.
Approved By:
William R. Dangl
Treasurer & Chairman, Finance Committee
13
Direct Selling Association

Statement of Financial Position
as of July 31, 2012
2012
2011
ASSETS
Current Assets
Cash
Investments
Accounts Receivable-General
Accounts Receivable-DSEF
Accounts Receivable-WFDSA
Interest Receivable
Prepaid Expense
Total Current Assets
Fixed Assets
Furniture and Equipment
Less Accumulated Depreciation
Total Fixed Assets
Travel Advances
Security Deposit
TOTAL ASSETS
$321,132
$335,283
5,507,864
4,755,939
170,921
709,385
10,175
71,213
7,164
281
1,584
3,355
66,508
86,256
------------------------------------ -----------------------------------6,085,348
5,961,712
979,951
901,015
(860,451)
(792,451)
------------------------------------ -----------------------------------119,500
108,564
3,000
44,436
44,436
------------------------------------ -----------------------------------$6,252,284
$6,114,712
========================= =========================
LIABILITIES AND NET ASSETS

Liabilities
Accounts Payable
Accrued Expenses
Metrocheck Payable
Deferred Income
Accrued Annual Leave
Accrued Pension Cost
Deferred Rent
Deferred Compensation Liability
Security Deposit Held
Total Liabilities
$4,234
$7,839
4,443
(14,080)
(10,741)
64,997
99,283
83,477
109,583
214,105
143,953
297,857
367,196
57,153
8,141
8,141
------------------------------------ -----------------------------------658,731
786,850
-------------------------------------------------------------------------------------------
Net Assets
Unrestricted Net Assets
Temporarily Restricted Net Assets
Total Net Assets
TOTAL LIABILITIES AND NET ASSETS
5,209,403
5,327,862
384,150
------------------------------------ -----------------------------------5,593,553
5,327,862
------------------------------------ -----------------------------------$6,252,284
$6,114,712
========================= =========================
See Accountant's Compilation Report

Statement of Activities
For the Seven Periods Ended July 31, 2012
Budget
Total
7/31/12
7/31/12 vs.
7/31/11
7/31/11
7/31/12 vs
Budget
UNRESTRICTED
Revenue
Dues Active
Dues Suppliers
Annual Meeting
Interest
Member Sales
Seminars
Miscellaneous Income
Salesforce Support
4,300,000 $
360,000
1,300,000
30,000
80,000
300,000
10,000
60,000
4,220,002 $
369,033
1,387,309
55,120
13,610
69,215
23,723
41,468
4,275,096 $
361,432
1,260,046
15,772
58,154
67,018
20,892
33,945
( 55,094 ) $
7,601
127,263
39,348
(44,544)
2,197
2,831
7,523
( 79,998 )
9,033
87,309
25,120
(66,390)
(230,785)
13,723
(18,532)
-------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Total Revenue
6,440,000
6,179,480
6,092,355
87,125
(260,520)
2,254,000
142,000
341,000
130,000
70,000
170,000
75,000
60,000
97,000
210,000
60,000
130,000
1,150,961
77,049
182,536
86,918
22,774
127,598
43,032
28,201
66,901
136,183
35,144
168,627
1,473,493
83,226
227,125
94,193
29,113
10,253
40,421
33,817
66,743
87,520
32,833
106,398
(322,532)
(6,177)
(44,589)
(7,275)
(6,339)
117,345
2,611
(5,616)
158
48,663
2,311
62,229
(1,103,039)
(64,951)
(158,464)
(43,082)
(47,226)
(42,402)
(31,968)
(31,799)
(30,099)
(73,817)
(24,856)
38,627
129,876
92,741
37,135
100,668
Expense
Personnel
Retirement
Employee Insurance
Employee Taxes
Meetings
Travel/Entertainment
Postage/Shipping
Telephone/Fax
Printing
Government Relations
Dues, Subscriptions, Training
Office Expenses
Credit Card Processing/Bank Fees
Legal
Other Professional
Research
Public Relations
Rent
Leasing/Maintenance
Taxes/Insurance
Depreciation/Amortization
Annual Meeting
Seminars
Offset by Affiliaties
Total Expense
155,000
71,165
31,290
39,875
(83,835)
287,000
190,603
158,291
32,312
(96,397)
280,000
92,226
48,648
43,578
(187,774)
150,000
67,566
125,735
(58,169)
(82,434)
566,000
289,983
303,983
(14,000)
(276,017)
100,000
54,161
42,833
11,328
(45,839)
45,000
12,980
12,939
41
(32,020)
62,000
39,969
61,400
(21,431)
(22,031)
865,000
714,322
657,904
56,418
(150,678)
201,000
33,351
17,231
16,120
(167,649)
(40,000)
(39,500)
(39,500)
500
---------------------- ---------------------- ---------------------- ---------------------- ---------------------6,410,000
3,652,750
3,745,389
(92,639)
(2,757,250)
Change in Net Assets from Operations
30,000
Realized gain/(loss) on Investments

Unrealized gain/(loss) on Investments
2,526,730
2,346,966
179,764
2,496,730
222,568
(96,529)
124,447
(65,356)
98,121
(31,173)
222,568
(96,529)
-------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Change in Unrestricted Net Assets

TEMPORARILY RESTRICTED
New Era Funds Beginning Balance
New Era Funds Revenue
New Era Funds Expenses
Change in Temporarily Restricted Net Assets
New Era Funds Ending Balance
30,000
2,652,769
2,406,057
246,712
2,622,769
585,686
585,686
585,686
2,600
555,000
(552,400)
2,600
(204,137)
(204,137)
(204,137)
---------------------- ---------------------- ---------------------- ---------------------- ---------------------0
(201,537)
555,000
(756,537)
(201,537)
384,149
555,000
(170,851)
384,149
-------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Change in Net Assets
30,000
2,451,232
2,961,057
( 509,825 ) $
2,421,232
=============== =============== =============== =============== ===============
See Accountant's Compilation Report
PRESENTATION SCHEDULE OF
PENDING ACTIVE MEMBER COMPANIES TO THE
DIRECT SELLING ASSOCIATION BOARD OF DIRECTORS
These pending active member companies will be presented to the Board of Directors upon
investigation with Attorneys General offices and pertinent Better Business Bureaus, as well as
review by DSA legal staff of all requested documents, contracts and marketing plan materials.
September 2012
Greenfoot Global
Jusuru International, Inc.
K&K Designs
Stream Energy
Dropped, unpaid dues
December 2012
anyArt, Inc.
Ava Anderson Non-Toxic
Biltmore Inspirations
Celebrating Grace LLC
CieAura, LLC
Compelling Creations, Inc.
FM Group USA
Georgi Gemma Direct
HealthNation
Krysalis Fit
Lindt Chocolate RSVP
Racco Cosmetics
Syntek Global, Inc.
Union Springs Wellness

Dropped, decided not to renew at this time
March 2013
Amega Worldwide Inc.
Ampegy
Bamboopink
Jillian Chase
MonaVie LLC
NYR Organic
Organo Gold International Inc.
Vemma Nutrition Company
WowWe, Inc.
Out of business
June 2013
Delivery.com
LegalShield
14
September 2013
Boresha International, Inc.
Vault Denim
Zija International
2012/2013
Alive Worldwide, Inc.
Allasta
Americraft Cookware
AmyKate Miniature Gardens
ArtNest, Inc.
Bandals International, Inc.
Bellaroma
Beyond Organic
BonLook
Chick Boss, LLC
Country Gourmet Home
Dardis Clothiers
Eclipse Candle Company
Global Vision Network, LLC
Independence Energy Alliance LLC
iScentU
Jamberry Nails
Jewel Kade
Kilambe Coffee
LIVV! Accents
My Lazy Daisy, LLC
Noonday Collection
NRG Worldwide, LLC
Omnilife USA, Inc.
Origami Owl
Perfectly Posh
Pink Zebra @ Home, LLC
Rocky & Bella, LLC (Formerly Natural Wellbeing)
Rosemary Grove, Naturally You
Ruby Ribbon, Inc.
Scent-Lit
SnackHealthy
Temptu
Tobe Entertainment
Utoria, LLC
WakeUpNow, Inc.
Subscriber Status
Ainsworth Pet Nutrition
Alue Optics
15
Dropped, decided not to renew
Dropped, out of business
ARIIX
Aromatic Planet
Ava Gray
Beget, Inc.
Connection Benefit Group
Counter Brands
Devine Beauty
E3 Corporation
Family Vacation Network
For Days USA
GeniusGiver, Inc.
Giffarine Sales USA
Hapacus, LLC
Harmony Green America, Inc.
(Aloe Laboratories, Inc.)
IAT
Implicit Bioscience Inc.
Insight Venture Partners


Dropped, not pursuing direct selling

Dropped, not pursing membership at
this time
Interush Inc.
Living Fresh Collection, LLC
Manda Mudd
Maple Lilly LLC
Office Candy
Queen Street America LLC
TXU Energy
Secret Blessings
Syndero
Time Savor Solutions
Veto Naturals
Virtual Celebration
VitaChef
Vivri, LLC
Yves Rocher

Global Associate Members

Clientele Limited
ENERGETIX Wellness GmbH
Oriflame Cosmetics
Epicure Selections
16

PENDING MEMBER PROFILE FORM
For Presentation to the DSA Board of Directors
COMPANY
Jusuru International, Inc.

1668 South Lewis Street
Anaheim, CA 92805
Phone: (888) 862-3968 Fax: (714) 678-1998
Website: www.jusuru.com
PRODUCTS/SERVICES
Primary products/services
Retail price range
Sellers initial cost
Nutritional Supplements
$49.95 - $69.95
$39.95 startup kit, $140.00 suggested supply of product
SALES
Number of salespeople
Primary sales approach
Compensation structure
4,266
Person-to-Person
Multilevel
OPERATIONS
Year company founded

Year direct selling began
2009
2009
Publicly or privately held
Private
Name of individual owner(s) Asma Ishaq

or parent corporation
Number of employees
PERSONNEL
Chief Executive Officer

Asma Ishaq, President
DSA Executive Contact/title Asma Ishaq, President
Top three executives in firm/titles
1. Asma Ishaq, President

2. David Grijalva, VP, Operations
3. David Ciemny, VP, Business Development
17
COMPANY DESCRIPTION
Jusuru International is a values-driven company, committed to delivering the most advanced

nutritional supplements, made with the highest quality ingredients and meticulous care.
Value #1: Safe and Effective Products
The first of our values is that every product we make must be not only safe, but also effective.
Our flagship product, Jusuru Life Blend, meets the most stringent criteria of Current Good
Manufacturing Practices (cGMP) and embodies this value by helping our customers and
representatives to live healthy, active lives with a product backed by scientific research and
safety studies.
Value #2: The Strength of Leadership
The second of our values is embodied in the leadership team we have assembled. Our senior
corporate managers were carefully selected for their personal integrity and their mastery of the
skills needed to create a dynamic organization. The executive team members support our
expanding network of independent representatives with decades of experience in health, science
and business management. Each of our corporate executives is committed to delivering guidance
and practical help with an exhilarating passion for sharing their Jusuru journey. Our passion is
contagious; it rubs off on our entire network of independent representatives.
Value # 3: The Spirit of Free Enterprise
If we start with a product so effective that it practically sells itself and we develop a management
team with integrity, experience and impeccable credentials, then it should be possible to support
a growing network of independent representativeseach working diligently to promote his or
her own business. This is precisely what is happening with Jusuru. Many of our customers, after
trying the product themselves, are motivated to share its benefits with their friends, neighbors
and others. There is nothing as contagious in the marketplace as a product that really works
because nothing succeeds like success.
Whether their motive is helping others, promoting health and wellness, or financial freedom,
people are discovering that Jusuru can offer a world of possibilities.
(Description taken from company website.)
18

COMPANY
K&K Designs
3903 Deep Rock Road
Richmond, VA 23233
Phone: (804) 346-1961 Fax: (804) 968-4734
Website: www.k-kdesigns.com
PRODUCTS/SERVICES
Retail price range
Art/Framing, Hope Accessories/Dcor

$10.00 - $100.00
$99.00, $170.00 or $250.00
SALES
38
Party Plan
Multilevel
OPERATIONS

2010
2010
Private
Name of individual owner(s) Kristin Melton and Katy Cohen

Number of employees
PERSONNEL

Katy Cohen
DSA Executive Contact/title Katy Cohen, Co-Owner
Top two executives in firm/titles
1. Katy Cohen, Co-Owner

2. Kristin Melton, Co-Owner
19
COMPANY DESCRIPTION
K&K Designs, founded in 2010 by two life-long friends, is a unique party plan company
featuring vinyl wall art specializing in personalization of gifts, home and childrens dcor.
Katy Cohen, Founder and Co-Owner of K&K Designs, had a vinyl Merry Christmas
transferred on one of her walls in her kitchen over the holidays a few years back. At her yearly
New Years Eve party she got such rave reviews it hit her like a lightning bolt. Boy if I could
personalize the vinyl with names and initials, and make this sort of thing for everyone, what fun
that would be.
Kristin Melton, Co-Owner of K&K Designs and mother of four, agreed. Personal designs in
various colors at great prices appeal to those who have Rodeo Drive tastes on a Target budget.
The companys vinyl wall art paired with great dcor items makes lasting impressionsthere is
something for everyone and the affordability is just the icing on the cake.
At K&K Designs, the executives take their mission seriously: to create unique and quality home
personalization at reasonable prices, while providing their Konsultants un-matched
opportunities for financial independence and an unsurpassed work-life balance. They live and
breathe by it.
Most of us want to make money for our families but want time to share the fruits of our labor.
Its just that simple. Make money. Be with family. Having a good balance of both equates to a
happy life. Thats it: HAPPY LIFE! Providing the most unique vinyl designs at great prices is
the first step the company created to help others achieve that Happy Life success.
20

COMPANY
Stream Gas & Electric, Ltd. DBA Stream Energy

(formerly Ignite, Inc.)
1950 Stemmons Freeway, Suite 3061
Dallas, TX 75207
Phone: (214) 800-4409
Website: www.igniteinc.com
PRODUCTS/SERVICES
Retail price range
Electricity and Natural Gas

Varies
$329.00
SALES
235,000+
Person-to-Person
Multilevel
OPERATIONS

2005
2005
Private
Name of individual owner(s) Stream Gas & Electric, Ltd.

Number of employees
300+
PERSONNEL

DSA Executive Contact/title
Robert Snyder
Vanessa Rush, General Counsel
Top two executives in firm/titles
1. Robert Snyder, President and Chairman

2. Mark Schiro, Vice President
21
COMPANY DESCRIPTION
Our Vision:
Energy deregulation in Georgia, Maryland, Pennsylvania and Texas means opportunity. And
since energy is a $500 billion industry, that opportunity is substantial. Today, in fact, people just
like you are getting paid on other peoples energy bills. Stream Energy enables you to start your
own business, tap into the lucrative energy market and, best of all, keep it simple.
Your Business:
Have you ever wanted to be your own boss and set your own schedule? You can. Its tough to
create real wealth working for others. However, conventional business ownership is cumbersome
and expensive. Stream Energy eliminates those obstacles, enabling you to start your own
business right now. Whether you are looking to develop a second income, make a monthly car
payment or create financial freedom, Stream Energy is the perfect opportunity for you.
Energy:
No one needs to be sold on energy. Its a life-essential service that makes up a good portion of
every familys budget. And now since energy deregulation allows people a choice, theyve opted
for an electricity and gas company that can deliver efficient service and competitive rates. We
offer a team of Ignite Independent Associates who serve as personal points of contact to
customers. Customers receive great energy service at a great price and you profit. Its warm, its
personal and its win-win.
Simplicity:
Stream Energy involves a simple, yet powerful, concept. Enroll a few customers and help others
do the same. You get paid for helping people save money and make money. In fact, you can earn
both immediate and long-term residual income. Someone has always gotten paid on other
peoples energy bills. With Stream Energy making it possible, why shouldnt that someone be
you? Energy deregulation in Georgia, Maryland, Pennsylvania and Texas will only happen once,
take advantage of it!
22
Pending Suppliers Being Presented to the

Board of Directors in September 2012
1. Exigo Office
2. Indianapolis Convention & Visitors Association
3. Jet Creations Inc.
4. Leader Promotions
5. Mondo Direct
6. Porter Wright Morris & Arthur LLP
7. Robinson Pharma, Inc.
8. Staging Solutions, Inc.
9. The Connection
10. UBS Institutional Consulting
11. Ultimate Coach University
12. Vouchfor! Inc.
23
Indianapolis Convention & Visitors

Association
200 South Capitol Avenue
Suite 300
Indianapolis, IN 46225
Phone: (317) 262-8226
Fax: (317) 262-8250
Website: www.visitindy.com
Exigo Office
8130 John W. Carpenter Freeway
Dallas, TX 75247
Phone: (949) 300-9933
Website: www.exigo.com
Executive Contact: Ed Jarrin
KEY FACTS
Number of Employees: 18
Year Founded: 2001
Executive Contact: Nicole Perry

KEY FACTS
Year Founded: 1923
PRODUCTS/SERVICES
Computers/Computer Systems, Database
Management, Genealogy/Compensation
Management Systems, Internet Services,
Software
PRODUCTS/SERVICES
Convention/Visitors Bureaus
COMPANY PROFILE (PROVIDED
BY THE APPLICANT)
As the Indianapolis Convention &
Visitors Association (ICVA to our
friends), its our job to promote the city
of Indianapolis, and that job has never
been easier, more energizing or more
rewarding than it is right now. As an
unprecedented level of cooperation
between business and government boosts
Indianapolis to a completely new level,
were reveling in the opportunity to
show our city off.

BY THE APPLICANT)
Exigo Office is an enterprise-level
software platform that powers our clients
operating internationally in more than 60
countries. Exigos technology is one of a
kind, offering its clients open
architecture and open source code.
Integration and interoperability with all
third party systems are welcome.
24
Jet Creations Inc.

6060 Farrington Avenue
Alexandria, VA 22304
Phone: (703) 823-6225
Fax: (703) 823-6730
Website: www.jetcreations.com
Leader Promotions
790 East Johnstown Road
Gahanna, OH 43230
Phone: (614) 416-6536
Fax: (614) 416-6566
Website: www.leaderpromos.com
Executive Contact: Jason Tseng
Executive Contact: Susan Barger
KEY FACTS
Year Founded: 1997
KEY FACTS
Year Founded: 1995
PRODUCTS/SERVICES
Manufacturing, Product Development,
Cosmetics/Skincare/Personal Care
Products, Household Items
PRODUCTS/SERVICES
Ad Specialties, Awards/Plaques/
Trophies, Jewelry/Gifts, Logowear,
Premiums/Incentives

BY THE APPLICANT)
We have become one of the top
manufacturers of inflatable products in
the world. We expanded our product line
recently and introduced negative ion
items to our selection. We have done
work for thousands of clients worldwide
and take pride in our reputation for
quality and customer satisfaction. Were
constantly improving our products
through diligent and extensive research,
and always use the latest technology to
ensure the highest quality.

BY THE APPLICANT)
Leader Promotions specializes in
promotional marketing exclusively for
direct selling companies. We are a onestop-shop for awards, trip incentives and
amenities, tradeshow giveaways,
consultant and customer gifts and online
supply store management. From
traditional promotional products to
custom designed items, we have it all.
25
Mondo Direct
6A Glen Street, Suite 607
Milsons Point
Sydney, Australia 2061
Phone: (61) 9460-0033
Fax: (61) 8622-7700
Website: www.mondodirect.com.au
Porter Wright Morris & Arthur LLP

41 South High Street
Suite 2800
Columbus, OH 43215-6194
Phone: (614) 227-2192
Fax: (614) 227-2100
Website: www.porterwright.com
Executive Contact: Heather Rickard
Executive Contact: Donna Ruscitti
KEY FACTS
Year Founded: 1998
KEY FACTS
Year Founded: 1846
PRODUCTS/SERVICES
Incorporation Service, Legal
Representation, Patents and Trademarks
PRODUCTS/SERVICES
Executive Recruitment, International
Market Consultants, Management
Consultants, Training Consultants,
Speakers

BY THE APPLICANT)
Porter Wright Morris & Arthur LLP is a
nationally recognized law firm that
traces its origins back to 1846. With
offices in Cincinnati, Cleveland,
Columbus and Dayton, Ohio; Naples,
Florida; and Washington, D.C., Porter
Wright provides counsel to a worldwide
base of clients.

BY THE APPLICANT)
Mondo Direct is one of Australias
leading specialized executive
recruitment firms for the direct selling,
direct marketing and franchise industries
in Australia. We specialize in providing
executive search and recruitment
services, consultants and contractors,
coaches and mentoring, training and
developmentplus professional
speakersto these dynamic sectors. We
support these sectors in achieving
success through their peoplebuilding
robust teams of talent. We operate
consultancies in Sydney, Melbourne and
Adelaide, as well as national and
international affiliates in the U.S., U.K.,
Europe, New Zealand and Asia.
26
Robinson Pharma, Inc.

3330 South Harbor Blvd.
Santa Ana, CA 92704
Phone: (714) 241-0235
Fax: (714) 751-6066
Website: www.robinsonpharma.com
Staging Solutions, Inc.

1520 Rutland
Houston, TX 77008
Phone: (713) 545-9079
Fax: (615) 807-3048
Website: www.stagingsolutions.com
Executive Contact: Tuong Nguyen
Executive Contact: Sallynda Montz
KEY FACTS
Year Founded: 1989
KEY FACTS
Year Founded: 1993
PRODUCTS/SERVICES
Nutritional Products
PRODUCTS/SERVICES
Production Services, Audio Services,
Video Services

BY THE APPLICANT)
We manufacture products that support
wellness and health. We are the most
extensively certified manufacturer of
nutraceutical and pharmaceutical
products in America and the largest
capacity manufacturer of softgels in
America.

BY THE APPLICANT)
Staging Solutions is an event design,
production management and
video/media production company. We
specialize in producing corporate
meetings of all sizes around the world.
Our headquarters are based in Houston
and we have offices in Las Vegas and
Hawaii. We have been in business for 15
years and work with Fortune 500
companies.
27
The Connection
11351 Rupp Drive
Burnsville, MN 55337
Phone: (952) 948-5335
Fax: (952) 948-5498
Website: www.the-connection.com
UBS Institutional Consulting

1501 K Street, NW, Suite 1100
Washington, DC 20005
Phone: (202) 585-5348
Fax: (855) 235-4793
Website: www.ubs.com
Executive Contact: Erin Brooks
Executive Contact: Sandra

Cunningham, CFP, CIMA
KEY FACTS
Year Founded: 1981
KEY FACTS
Number of Employees: 63,500
Year Founded: 1854
PRODUCTS/SERVICES
Call Center, Interactive Voice Response,
Teleservices, Web Chat Services
PRODUCTS/SERVICES
Insurance
BY THE APPLICANT)
UBS draws on its 150-year heritage to
serve private, institutional and corporate
clients worldwide, as well as retail
clients in Switzerland. We combine our
wealth management, investment banking
and asset management businesses with
our Swiss operations to deliver superior
financial solutions. Headquartered in
Zurich and Basel, UBS is a global firm
providing financial services to private,
corporate and institutional clients.

BY THE APPLICANT)
The Connection is an award-winning,
U.S.-based outsourced contact center
service provider. The Connection
provides extensive customer service,
technical support and sales specializing
in inbound and outbound teleservices,
email response, live web chat and
interactive voice response (IVR)
services. With multiple contact centers
located throughout the nation, The
Connection provides uninterrupted 24-7
support 365 days each year. The
Connection has provided contact center
support since 1981.
28
Vouchfor! Inc.
100 Highland Road
Roseneath, Canada K0K2X0
Phone: (416) 919-3199
Website: www.vouchfor.com
Ultimate Coach University

1325 River Oaks Drive
Flower Mound, TX 75028
Phone: (972) 874-8070
Website:
www.ultimatecoachuniversity.com
Executive Contact: John Stewart

Executive Contact: Dr. Neil Phillips
KEY FACTS
Year Founded: 2010
KEY FACTS
Year Founded: 2011
PRODUCTS/SERVICES
Incentive/Recognition Consultants,
Internet Marketing/Social Media
Services, Distribution Services/Shipping,
Database Management, Internet
Services, Software
PRODUCTS/SERVICES
Business Consultants, Management
Consultants, Training Consultants,
Speakers, Training Materials
BY THE APPLICANT)
Ultimate Coach University is not just
another training company. As a fullservice coach training university, one of
our majors is in direct sales coaching.
Graduates learn best practices in
coaching, prospecting, recruiting, selling
and leadership development, as well as
the core competencies of coaching:
listening, powerful questions, designing
actions and gaining commitment. Past
students include company founders,
regional sales managers, department
directors, field development managers
and independent distributors. We also
offer a full range of customized
communication, leadership and coaching
workshops for companies that want to
create a coaching culture. Faculty
members are credentialed coaches and
have more than 100 years of direct
selling experience.
COMPANY PROFILE (TAKEN

FROM APPLICANT WEBSITE)
Vouchfor! is an exciting social referral
platform, delivered as Software-as-aService (SaaS), that utilizes a patentpending, structured, online referrals
engine that tracks, monitors and issues
unique vouchers to users who adopt and
use our platform. We draw from past
experiences building some of the largest
referral reward websites.
29
I.

II.
III.
None.
Committee Actions
The following members will serve on the 2012-2013 committee:

o
o
o
o
o
o
o
o
o
o
o
Mr. Orville Thompson, CEO, Scentsy, Inc.

Mr. Brett R. Chapman, General Counsel, Herbalife
Ms. Cari Christopher, President, Signature HomeStyles
Ms. Pam Dean, CEO, Avalla
Mr. Edward A. Dion Jr., President, E.A. Dion, Inc.
Ms. Joan Hartel Cabral, President & Owner, Vantel Pearls in the Oyster
Mr. Truman Hunt, President & CEO, Nu Skin Enterprises
Mr. Jerry Kelly, Chairman, Silpada Designs
Mr. Scott Monroe, Chief Brand Officer, Thirty-One Gifts
Ms. Heidi Thompson, President, Scentsy, Inc.
Mr. David Wentz, CEO, USANA Health Sciences, Inc.
The Committee requests assistance from the Board of Directors and members to
ensure the 2013 Annual Meeting is a success. The Committee asks that members
consider offering support in the following ways:
o Personal and corporate team attendance
o Suggestion on subjects/issues about which you would like to learn
o Participation as speakers and facilitators at workshops
The sponsorship program is in full swing. The Committee asks members to select
from the list provided at the Board of Directors meeting. The Committee notes that
member participation is greatly appreciated and helps keep the registration rates from
increasing.
The Committee requests that Committee chairs schedule their respective Committee
meetings that will be held in conjunction with the 2013 Annual Meeting as soon as
possible so they can be included on the schedule of events for Sunday, June 9, 2013,
and that they begin after the DSEF charitable event concludes at Noon. The
30
Committee also asks that special requests please be submitted before the December
2012 Board of Directors meeting.
IV.
Plans are underway for DSAs 2013 Annual Meeting, which will be held June 9-11,
2013, at the JW Marriott Desert Ridge in Phoenix, Ariz.
The Committee held its first planning meeting on Aug. 28, 2013, at the JW Marriott
Desert Ridge in Phoenix, Ariz. Subsequent meetings will be held in conjunction with
the December 2012 and March 2013 DSA/DSEF Board of Directors meetings.
Approved By:
Orville Thompson
Chairman, Annual Meeting Committee
31
I.
Awards Committee
II.
III.
IV.
None.
Committee Actions
Invitations have been extended and accepted for the 2012/2013 Committee.
The next Committee conference call has been scheduled for Sept. 6, 2012.
Highlights of 2012 ETHOS Awards program are attached.
The Committee Charter has been revised (see attached).
Opportunities for adjustment and enhancements are to be reviewed during the Sept. 6,
2012, Committee meeting.
Approved By:
Lori Bush
Chairman, Awards Committee
32
DSA Awards Committee Charter

(ETHOS Awards)
Revised August 2012
Purpose
The DSA Awards Committee exists to create and oversee programs to recognize member
companies that exemplify the values of the Direct Selling Association and the direct selling
industry and enhance the industrys public perception in the United States.
Key values embodied in the awards program:
Direct selling provides an equal-opportunity career path

Direct selling supports personal development and a sense of connectedness
Direct selling brings product advancement/innovation to the marketplace
DSA member companies keep the customers best interests at the heart of their
businesses and demonstrate commitment to the DSA Code of Ethics.
The Awards Committee is governed by the DSA Board of Directors and provides guidance and
oversight to DSA staff members. The committee is comprised of 6-8 executive-level managers in
the areas of salesforce development, marketing, public relations, technology, or
general/executive management from DSA member companies and one executive-level manager
from a DSA Supplier member company. The committee chairman is appointed on an annual
basis by the DSA Chairman of the Board. The committee meets telephonically at least four times
per year and may, on occasion, hold in-person meetings.
Committee Members Roles and Responsibilities:
Recommend and approve DSA Member and Supplier slate of ETHOS Awards
Recommend and approve Vision for Tomorrow program and other relevant recognition
programs
Select and approve slate of judges
Provide guidance for awards rules and processes, including judging criteria
Provide guidance and input for awards program-related communications
ETHOS Awards Judging:
Judges may be selected from DSA membership companies or from relevant adjacency
specialties
No more that 50 percent of the judging panel may be Awards Committee members
Judges may not judge any award for which their company is entered
Number of judges may vary based on slate of awards and anticipated number of
submissions
2012 ETHOS AWARDS

Recap prepared by Amy Robinson
Received a record number of entries: 125

Record number of companies that submitted an entry: 54
Successfully created the ETHOS Awards brandthe top seven Google search results (as well
as 12 of the top 17 results) for ETHOS Awards link to DSA or a winning company.
Achieved significant online reachthere are more than 53,000 mentions of the DSA ETHOS
Awards online made through websites, blog posts, Facebook pages, press releases or other
electronic means.
Provided companies with multiple opportunities for recognition and coverage through workshop
presentations (internal) and press release distribution (external).
Extended the ETHOS brand to multiple websites by offering use of the ETHOS logo to winning
companies:
o Here is an example of how Mary Kay used the logo: http://beta.marykay.com/erinlynch/enUS/TipsAndTrends/MakeoverAndBeautyTools/Pages/The-Look-Makeover-App.aspx
o It even had global reach: http://www.xango.com.tw/misc/ethos-tw
o It was used in a company newsletter:
http://www.imakenews.com/paperly/index000596479_13.cfm?x=blfjGRK,brcHTMTH
Quotes gathered in the course of writing the follow-up articles on the 2012 award winners:
We were honored to receive the 2012 ETHOS Award and believe it provides an opportunity to
raise awareness about the reality of hunger in this country and how people can help through our
Round-Up from the Heart program. We are celebrating the award with our customers, consultants
and co-workers in the home office. We hope the recognition for this years campaign will help
create excitement for the launch of our next Round-Up from the Heart campaign in September.
Rochelle Mangold, Dir., Corporate Communications, The Pampered Chef (Vision for
Tomorrow category winner; sub-category winner for Vision for Tomorrow: Philanthropy)
We have been honored and humbled by every award we have received from the DSA, and we
consistently mention those awards in our news releases, on our websites and in our marketing
materials. We do this because an award from the DSA is an indicator of quality work and the ethical
standards to which we hold ourselves. Exposure from the 2012 ETHOS Award for Excellence in
Salesforce Development has helped us reinforce the quality of the Scentsy opportunity, as well as
our commitment to delivering the best possible Consultant experience. John Curtis, VP, Brand
& Communications, Scentsy (Excellence in Salesforce Development category winner and subcategory winner for Salesforce Development: Business Training)
[The Association] has done a fantastic job of promoting DSAs new ETHOS Awards, from
communications to participate prior to the Annual Meeting to press thats gone out following the
award announcements. Now its 4Lifes job as an award recipient to properly couch the significance
of this distinction for our distributors in the field. We do this, and will continue to do so, by
engaging our distributors with the news. Lesley Dunn, VP, Events & Recognition, 4Life
Research (sub-category winner of Excellence in Salesforce Development: Recognition)
I.
II.
III.
None.
Committee Actions
In response to attacks on the direct selling business model by mainstream and

financial media the Communications Committee, in concert with the Industry
Research Committee, created a response plan. As of August 29 this plan is still under
review and execution of the plan is expected to commence prior to the board meeting.
The plan includes a variety of tactics to counter negative information with a higher
volume of positive information. Additionally there are specific tactics designed to
reach the financial community to include investors, analysts and media.
IV.
A full report on the 12-week pilot national marketing campaign will be presented to
the Board of Directors at the September meeting. Top-level findings include a high
level of response to the messaging, but a very low level of interaction/conversion
after initial engagement with the messaging. The report given during the Board
meeting will include detailed information about the results of the program as well as
suggestions for using the insights gained from the test.
Approved By:
Scott Monroe
Chairman, Communications Committee
33
I.
Education Committee
II.
III.
Committee Actions
IV.
None.
The following members will serve on the 2012-2013 Committee:

o Paula Antonini, Antonini & Associates
o Dr. Traci Lynn Burton, Founder & CEO, Traci Lynn Fashion Jewelry
o Gabrielle DeSantis, CEO & Co-Founder, GiGi Hill, LLC
o Stuart Johnson, President, VideoPlus, L.P.
o Calvin Jolley, VP, Communications, 4Life Research, LLC
o Cindy Monroe, Founder & CEO, Thirty-One Gifts
o Joe Urso, Chairman & CEO, Aerus/Vollara, LLC
DSAs Global Regulatory Summit combines legal, international and tax topics, as did
last years Looking Forward Conference. Attendance will be upwards of 160 direct
selling executives and vendors. The business exposition will feature five vendor
companies. The Committee encourages Board members to participate on Monday
evening, Oct. 8, 2012, in our Road Warriors Reception at the Mayflower in
Washington, D.C., where DSA will honor a group of global regulatory professionals
who have spent the majority of their time on the road fighting for direct selling in
state capitals across the country. A pre-summit webinar has also been held in
conjunction with this summit on Sept. 5, 2012, discussing current regulatory
challenges facing the sales channel and recent growth statistics.
The program for the Communications and Marketing Conference, taking place Dec.
5-7, 2012, is being planned to provide direct selling executives with the skills and
strategies to make their communications and public relations efforts work together to
advance their companies success. Those new to direct selling can take advantage of
DSAs Smart Start pre-conference workshop. This Conference is conveniently
scheduled in conjunction with the Dec. 4-5, 2012, DSA/DSEF Board meetings, so
Board members can take full advantage of this programming for you and your
management team.
Approved By:
Pam Dean
Chairperson, Education Committee
34
I.
Ethics and Self-Regulation Committee

II.
III.
None.
Committee Actions
On July 26, 2012, the Ethics Committee held a teleconference to discuss the issue of
initial start-up fees charged by member companies. These are fees that are not part of
a start-up kit. The reimbursement of fees is not specifically covered by the DSA Code
of Ethics 90 percent buyback rule as it was intended to prevent inventory loading.
Accordingly, the buyback rule only covers inventory and sales kits and other
materials if their purchase is required or commissionable. However, several states
specifically require the repayment of fees under their buyback provisions.
Due to the fact that some DSA member companies require substantial start-up fees
up to $300the Committee decided to review this matter. The DSA Code
Administrator, Jared Blum, opined that language in the Code gives some level of
flexibility to the Code Administrator with regard to the reimbursement of fees. The
Committee requested that amendatory Code language on this matter be drafted for
further consideration by the Committee.
IV.
On future teleconferences, the Committee will evaluate the status of the Code
Communications Initiative and determine if any changes to the program are
warranted. As soon as the program details are finalized for the 2013 initiative,
information and applications will be publicized to the DSA membership.
A Code Responsibility Officers teleconference is being planned and will be scheduled

in either late October or November.
The Committee anticipates having its next teleconference in September 2012.
Approved By:
Laura Beitler
Chairman, Ethics and Self-Regulation Committee
35
I.

II.
III.
Committee Actions
IV.
None.
None.
Washington, D.C., Direct Selling Day: DSA will host a Direct Selling Day in
Washington, D.C., on Sept. 12, 2012. At the time of this writing, 37 executive
members were registered to participate in the event.
Champion of Free Enterprise Award: In conjunction with the ice cream social
hosted on Direct Selling Day, DSA will recognize Congressman Pete Sessions (RTX) and present him with the Champion of Free Enterprise Award. The purpose of
the award is to recognize Members of Congress who support direct sellers, attract the
attention of Congress and the media, garner support for future DSA government
relations initiatives and promote a positive message about direct selling.
Congressman Sessions has supported legislation favorable to the industry, signed a
letter to the Federal Trade Commission in support of the business opportunity
comments filed by DSA, serves as Vice Chairman of the House Rules Committee and
is slated to be the next Chairman of the Rules Committee.
Candidate Advertising Expenditures: A new initiative undertaken this year by

DSA is to support candidates by placing ads in their jurisdiction. The goals in
providing this kind of support are to gain the attention of the candidate in order to
cultivate a champion for the direct selling industry, to promote the direct selling
industry and impact the outcome of the race.
The two candidates DSA will support in this manner are Congressman Fred Upton
(R-MI) and Senator Robert Menendez (D-NJ). The ads in support of Congressman
Upton ran during the month of July leading up to the Aug. 7, 2012, Michigan
primary. Newspaper ads were published in the Grand Rapids Business Journal and
the Kalamazoo Gazette. DSA also had two billboards and a radio ad during multiple
36
time slots. In addition, DSA created a website in support of Congressman Upton

www.dsa.org/upton. Congressman Upton won the Republican primary and will face
Democratic candidate Mike OBrien in the November election. Congressman Upton
took note of the ads and very appreciative of the industrys support.
The ads in support of Senator Menendez will run in October leading up to the
November election.
DSA Champions of Direct Selling Website: DSA has a legislative recognition site
entitled Champions of Direct Selling, which lists federal and state legislators who
have been supportive of the industryhttp://legislativerecognition.dsa.org. The site is
linked on the DSA website and available for the public to view.
Federal Issues: Fair Playing Field Act of 2012The Fair Playing Field Act of
2012, introduced on March 1, 2012, as companion House and Senate bills (S.
2145/H. 4123) by Senator John Kerry (D-MA) and Representative Jim McDermott
(D-WA), would amend the Internal Revenue Code by striking section 530 and
permitting the Treasury Department to issue guidance clarifying the employment
status of individuals for purposes of employment taxes, but would prevent retroactive
assessments with respect to such clarifications. In short, the Fair Playing Field Act
of 2012 would eliminate the continued use of the Section 530 safe harbor to classify
workers as independent contractors. While this does not affect the direct seller
independent contractor protections of Section 3508, it is still of great concern to the
broader independent contractor community. The Act will also require businesses who
use independent contractors on a regular and ongoing basis to provide the
independent contractors with a written statement informing them of their federal tax
obligations, notifying them of the employment law protections that do not apply to
them and informing them how to seek a determination of their status from the IRS.
Senator Tom Harkin (D-IA) also introduced the Rebuild America Act (S. 2252).
Included within the bill is the Fair Playing Field Act of 2012.
While none of the bills has received consideration or been scheduled for a hearing,
DSA continues to see this type of legislation being introduced. DSA brought the bills
to the attention of DSAs Independent Contractor Task Force, and the Task Force
approved a strategy suggested by DSA of monitor-plus, which includes closely
monitoring the bills, while at the same time actively reaching out to Members of
Congress and highlighting the damaging impact eliminating Section 530 would have
on jobs.
State Issues: DSA is currently tracking 113 bills in 31 states. None of the legislation
DSA is tracking has passed since the June Board meeting as most states are not in
session during the summer months.
37
DSA Political Action Committee Report: As of Aug. 20, 2012, the DSAPAC
balance was $30,687.36. Since the last Board report, the DSAPAC has made $1,000
contributions to Dave Camp for Congress (R-MI) and Lee Terry for Congress (RNE). DSA anticipates drawing down a substantial amount of the PAC fund in the next
60 days.
Approved by:
Bryan Harrison
Chairman, Government Relations Committee
38
I.

II.
III.
Committee Actions
IV.
None.
None.
U.S. Direct Selling in 2011 Growth & Outlook Survey: U.S. direct sales were up in
2011 by 4.6 percent from USD $28.56 billion to $29.87 billion at estimated retail.
Salesforce size decreased slightly (1.3 percent) to 15.6 million sellers from 15.8
million in 2010.
o The final report will be published in September with a new, more visual and
context-rich report. Members can easily see the comparisons to the economic,
retail, demographic and past industry trends with narratives and graphics.
o Survey participation was up 28 percent with 93 companies participating,
providing a more complete view of industry performance.
o The survey due date for submission was advanced to align with the WFDSA
global research efforts and provide a complete update to the DSA Board in
time for the 2012 Annual Meeting.
DataTracker: Results for the second quarter of 2012 were published on Aug. 13,
2012, showing sales up 4 percent vs. the same period last year and year-to-date, and
new recruits down 1.2 percent in Q2, but up 3.6 percent year-to-date.
U.S. DSA Annual Meeting:

o The Committee provided a follow-up conference session titled Using
Todays Trends to Attract Entrepreneurs to the well-received 2011 The
Future of Direct Selling session. Leading global research firm GfK Roper
gave a detailed update and implications on the consumers most important to
the future of our industry.
A New Generational Landscape: MillennialsLeveraging trend,
will examine key non-life stage differences by Gen Y, Gen X and
Boomers
39
Differences within a Generation: Women vs. MenExamined key

differences of Gen Y men and women today (and how their gender
roles are different today than previous generations)
A New Multi-Cultural LandscapeExamined key differences of
rising minority groupsspecifically Hispanics, Asians and African
Americans
o More than 60 attendees then broke into groups to further discuss, share current
and future plans to address the opportunities of these potential direct sellers
and end-customers.
o To determine the Industry Research Committees (IRC) future research
efforts, a two-hour session was held with selected leaders from across our
membership. Their recommendations and feedback on current industry trends,
challenges and research needs were gathered and prioritized. These findings
were incorporated into the IRCs new research plan (see below).
DSA cross-committee (IRC & Communications) discussions were held and continue
on the industry issue of internal consumption and productivity based on the type of
direct seller. At this time, research needs to support this topic are still being
considered.
Collaboration with World Federation of DSAs: Outgoing Committee Chair Judy

Jones (Amway) continued chairmanship of the WFDSA team responsible for
organizing and vetting the Annual Global Statistical Survey. The goals for 2012 that
were achieved include continued improvement of standardization, providing results
earlier and improving data quality. WFDSA has also created a sub-committee of
research industry leaders to work on draft definitions for direct sellers by type in
relations to the survey. Both Judy Jones and JJ LeBlanc, current Committee Chair, are
members of the committee. Recommended definitions are targeted for delivery to the
WFDSA Operating Group this fall.
The Committees new research partner, Artemis Strategy Group, developed an IRC
Research Plan for 2012 and beyond. The summary of this outlay will be provided to
the DSA Board prior to the December 2012 meeting.
The Committee will be seeking new members for 2012-2013 to replace outgoing
members.
The search for a new DSA Research Manager continues.
Approved By:
JJ LeBlanc
Chairman, Industry Research Committee
40
I.
Report to the Board of Directors, June 2, 2012
(As of April 30, 2012)
II.
III.
Council Actions
IV.
None.
Continue to monitor international regulatory matters of interest to direct sellers.
Accomplishments/Future Activities Planned/FYI since March 2012
India: Chairman John Venardos (Herbalife) reported DSA has been working with the
India Direct Selling Agency (IDSA) and the World Federation of Direct Selling
Associations (WFDSA) to create a better understanding within India on multi-level
marketing and direct selling to distinguish these forms of commerce from the Prize
Chits Act of 1978. Chairman Venardos asked the WFDSA to provide input as
appropriate to the IDSA concerning a draft white paper being written by a leading
Indian economist in collaboration with the Federation of Indian Chambers of
Commerce and Industry (FICCI) that will be presented to key government officials.
As of August 31, we understand the Indian Inter-Ministerial Committee (IMC)
chaired by Secretary Consumer Affairs may be ready with recommended
"Guidelines" (it rejected the option of a "Direct Selling Act"). The Department of
Financial Services is to be responsible for formulating the guidelines. The guidelines
are to be drafted in consultation with other departments that may include the Law
Ministry and Securities Exchange Board of India (SEBI). We expect the guidelines
will be more comprehensive than the State of Kerala guidelines (IMC felt that Kerala
guidelines could be misused by pyramid schemes). International regulations including
those of US, Canada, EU, Thailand and Malaysia are being reviewed to identify best
practices in MLM/direct selling regulation. The guidelines will provide for a central
agency, possibly the Central Economic Intelligence Bureau (CEIB), to monitor
violations and suggest legal action to state authorities. The IMC felt that the state
agencies may not have the necessary expertise to check sophisticated pyramid
schemes and a central agency may be better equipped to do so. While registering
themselves as companies with Registrar of Companies, Direct selling/MLM
companies will additionally be required to provide information on their business
model and marketing plan. The matter of web based pyramid schemes was also
41
discussed by IMC and the Ministry of Information Technology is likely to be asked to

suggest how such websites could be screened and blocked. With a new Secretary
Consumer Affairs having taken over today, the report will be finalized after he
approves of it.
Richard Holwill (Amway) reported there appears to be confusion with the Hindi
translation of MLM as officials interpret the term level to mean a money making
scheme and the term may need to be abandoned altogether. Mr. Holwill reported
companies need to demonstrate that their business model provides personal flexibility
for independent contractors and offers genuine economic benefits. The best course of
action would be a substantial educational effort for both federal and state officials.
Chairman Venardos requested that DSA work in conjunction with the WFDSA
working group on India so that key companies operating in India can reach a
consensus on the best way to address legislative issues as an industry.
Bangladesh: Chairman Venardos expressed concern over the pending Direct Selling
Act of 2011 about which WFDSA expressed concerns and submitted formal
comments. The Act restricts direct selling and prohibits certain products such as
nutritionals from being sold through the direct selling channel. Adolfo Franco (DSA)
stated DSA would follow up with Bangladeshi officials in Washington, DC.
Europe: Maurits Bruggink (SELDIA) reported the XANGO antitrust matter in Italy
has been resolved and that the company has adjusted its compensation model to be in
line with what is required by the Italian government. XANGO had used the same
compensation plan the company uses elsewhere in Europe. Mr. Bruggink noted the
law is not harmonized in Europe and European Union law is left up to each national
governments discretion as to how it is interpreted and enforced.
As a result of the Euro crisis, Ukraine, Hungary and Romania are considering
deeming direct sellers employees in an effort to increase tax revenue. SELDIA will
work with European Union officials to draft a formal text that will explain why direct
sellers are independent entrepreneurs.
Russia is set to become a member of the World Trade Organization in August 2012
and subsequently will need to modify its nutritional supplements laws that are now
only sold through pharmacies.
French Polynesia: Chairman Venardos reported employees from Herbalife had met
with government officials to gain a better understanding of multi-level marketing in
light of a proposed direct selling law that might be detrimental to direct selling.
Chairman Venardos noted that while French Polynesia is governed by French laws,
they have the ability to implement laws specific to the islands.
Russian Federation: Russia officially joined the WTO August 22nd. Russias WTO
GATS commitments trump its national laws, and this is specified in the WTO
42
agreement. Therefore, Russia should be committed to provide for direct selling of

supplements as of August 22nd.
WFDSA Ethics Update: Joe Mariano (DSA) reported Code Administrators from
Latin America met in Lima, Peru recently to discuss key ethics issues and the role of
Code Administrators. The seminar highlighted the success the Peruvian Chamber of
Direct Selling (CAPEVEDI) had with its Code recognition program. Mr. Mariano
praised the Latin American sector for its advancement and elevation of ethical
standards.
Trans-Pacific Partnership Agreement Proposed Direct Sales/MLM Language:
Attached is model language Chairman Venardos has proposed as regards direct
sales/MLM that could be included in the pending Trans-Pacific Partnership
Agreement and other Services Negotiations such as the Plurilateral WTO Services
Negotiations. By way of background, US Trade Representative officials highlighted
the Express Delivery annexes of the Korea and Colombia Free Trade Agreements
(FTAs) as an possible model for the direct selling industry in future bilateral,
plurilateral and multilateral services agreements. USTR notes that the annex provides
definition and clarity to the express delivery sector, making explicit the market access
and national treatment commitments that are generally applicable to all non-limited
sectors. The express delivery sector has its own unique circumstances with the
prevalence of state-owned postal monopolies, which bring competition-related issues
into the mix, but USTR felt that the direct selling/MLS industry might have similar
issues that are not otherwise accounted for in the traditional market access
definitions. For example, the right to provide compensation/bonuses to independent
distributors would be something that could be clarified in a services annex. We seek
endorsement of this or modified language by the DSA board so that the DSAs
collective position can be shared with the USTR. Note: with regard to the WTO
services plurilateral, the next major event should be a hearing of the House Ways and
Means Committee on the topic, which has been rescheduled for September 20th.
WFDSA Update
WFDSA Executive Director Tamuna Gabilaia reported the Global Regulatory Affairs
Committee agreed to issue a Global Industry Threat Report that will be distributed to
member DSAs and will also be posted on the website.
Mr. Mariano noted as a part of the industry image enhancement program, the US
DSAs Board of Directors and Strategic Planning Committee are trying to synthesize
what direct selling should be defined as and asked for input from Council members
and WFDSA.
Approved By:
John Venardos
Chairman, International Council
43
ANNEX [ ] DIRECT SALES

1.
For purposes of this agreement, Direct Sales means the sale of a consumer product or
service, person-to-person, away from a fixed retail location, through independent sales
representatives who are also referred to as independent distributors. Direct selling company
distributors are independent contractors rather than employees whose compensation is based on
the distributors individual product sales. The direct selling company sells products or services at
wholesale price to its distributors, who in turn sell the products or services to end consumers.
2.
The Parties confirm their desire to maintain at least the level of market openness for
direct sales that is in existence on the date this Agreement is signed. If a Party considers that the
other Party is not maintaining such level of access, it may request consultations. The other Party
shall afford adequate opportunity for consultations and, to the extent possible, shall provide
information in response to inquiries regarding the level of access and any related matter.
3.
Each Party ensures there will be no limitations on market access or national treatment on
direct sales, specifically wholesale or retail trade services away from a fixed location. Each Party
will develop regulations, consistent with their Schedule of Specific Commitments and its
obligations under this Agreement, on sales away from a fixed location.
4.
Each Party confirms its intention to permit direct selling be made by properly trained and
certified individual commission agents away from a fixed location for which remuneration is
received both for sales efforts and for sales support services that result in additional sales by
other contracted distributors. Compensation can be based on the amount of product sales
generated directly and indirectly by contractors and not on a fixed hourly rate.
5.
For transparency purposes, services commitments on direct sales include sales of
registered food/nutritional supplements, including those in tablet, powder or capsule form.
44
I.
Lawyers Council
II.
III.
Committee Actions
IV.
None.
None.

The Lawyers Council held an in-person meeting on June 3, 2012, and discussed the
following issues:
FTC v. BurnLounge: DSA staff provided a detailed analysis of the recent United
States District Court for the Central District of California decision in the BurnLounge
case, as well as the upcoming appeal of the decision by BurnLounge to United States
Court of Appeals for the 9th Circuit. The final judgment issued by the court found
BurnLounge to be an illegal pyramid scheme by applying the erroneous definition
from the Omnitrition case of 1996. In the Omnitrition case, the United States Court of
Appeals for the 9th Circuit, in dicta, stated that sales to members of a companys
salesforce are not legitimate retail sales for purposes of determining whether or not
the marketing plan is legal or illegal. The Lawyers Council discussed the issues raised
in BurnLounge and possible next steps the industry can or should take, including the
possibility of filing an Amicus brief during the appeal. DSA staff will continue to
monitor both the BurnLounge case as appeals progress, as well as any related
developments from the FTC.
The Lawyers Council/Privacy Working Group held a teleconference on July 27,
2012, and discussed the following issues:
Introduction of the Group: The working group will be creating guidelines for
addressing privacy requirements for distribution to independent salespeople, as well
as a Best Practices guide that can be circulated to member companies. Patrice
Ettinger (Avon Products, Inc.) was introduced as the Chairwoman of the working
group. The group discussed the end of 2012 as the timeline for creating guidelines
that can be circulated to all member companies.
44
Personally Identifiable Information: The working group discussed personally

identifiable information (PII) and how companies are handling this information. The
group agreed that it would work to draft guidelines that can be used by the industry
pertaining to appropriate handling of PII.
Security Breach: The working group discussed security breaches and how to work
with both distributors and regulators if a breach occurs. Various member companies
discussed policies that are currently in place or ones that are in the process of being
revised in order to deal with possible security breaches. The handling of a security
breach will be included in the guidelines to be drafted by the working group. The
group agreed that guidelines will be drafted for both the companies and the
independent salesforce.
CAN-SPAM Compliance: The working group briefly discussed the CAN-SPAM

Act and compliance with the Act. While this was not the focus of the groups initial
discussion, it was agreed that it will be an area the working group continues to
examine in the future.
Approved By:
Renee Cogdell Lewis
Chairman, Lawyers Council
45
I.

II.
III.
None.
Committee Actions
The Member Services Committee met in person on June 3, 2012, and via
teleconference on Aug. 16, 2012. The Committees goal is for DSA affinity partners
to bring in additional revenue of $100,000 by the end of 2012 by providing value with
the Associations exclusive offerings. The Association is constantly looking to
expand the list of benefits and services it offers to member companies. This summer
several new programs have launched:
o Online Career Center: If your company is looking to hire new talent, be sure to
check out DSAs Career Center, where you can purchase job listing packages that
not only allow you to post your job for all interested parties to see, but also give
you access to the resumes available. Hiring those with direct selling experience
has never been easier or more affordable. http://careercenter.dsa.org
o FedEx Service Discounts: DSA members can take advantage of substantial
savings with both shipping and freight. For companies that already have a
program in place for their corporate needs, this discount program can be used by
the field as an added benefit http://www.dsa.org/fedex
o Expanded Insurance Options:
PRO Insurance Managers has worked with DSA for years to offer health
and liability insurance to the field. Not only has PRO enhanced their
liability offerings, but the company is also now offering a term life
insurance program as well. If you want to make sure your distributors are
taken care of under any circumstances, be sure to explore
www.pro4.usa/dsa.asp.
DSA and DSEF have signed an agreement to offer The Hartfords Auto
and Home Insurance programs marketed by John A. Parks Co. For the first
time, this will be a shared affinity program between the association and
46
DSEF. The Hartfords technology for this program should be ready to be

implemented by December 2012.
IV. Accomplishments/Future Activities Planned/FYI since June 2012
The Committee heard a presentation for the Marriott Rewards Affinity program
during its September 2012 call. This program would offer the best rates available to
the public through DSAs website with DSA receiving a 2-5 percent commission on
completed transactions. The Committee will continue to review this option, as well as
offerings from other chains. Also to be explored: discounts to help with other day-today operations such as savings from Paychex, QuickBooks and Office Max, as well
as credit card processing services.
Approved By:
Michelle Jones
Chairman, Member Services Committee
47
I.

II.
III.
Committee Actions
IV.
None.
The following members will serve on the 2012-2013 committee:

o Marjorie Fine (Shaklee Corp.) Chairman
o Brett Chapman (Herbalife)
o Heather Chastain (Arbonne International, LLC)
o Angela Loehr Chrysler (Team National)
o Michaela Clary (Avon Products, Inc.)
o Michael Fallquist (Viridian Network, LLC)
o Kevin Fournier (FreeLife International)
o Leslie Gallacher (XANGO LLC)
o Jerry Kelly (Silpada Designs)
o Michael Lunceford (Mary Kay Inc.)
o Ryan Nelson (Melaleuca, Inc.)
o Luke Nieuwenhuis (Amway)
o Jim Northrop (Winfield Consulting)
o Charles Orr (DSEF)
o Jeffrey Reigle (Regal Ware, Inc.)
o Rudy Revak (Symmetry Corp.)
o Orville Thompson (Scentsy, Inc.)
o Joe Urso (Aerus/Vollara, LLC)
o Frank VanderSloot (Melaleuca, Inc.)
o David Wentz (USANA Health Sciences, Inc.)
As of this writing, the Committee is preparing for an in-person meeting to take place
on Sept. 10, 2012, to follow up on the discussion session held during the June 2012
Board of Directors meeting. Anne Aldrich, Artemis Strategy Group, will facilitate
this discussion.
48
A future Committee meeting is being planned for December 2012, in advance of the
DSA/DSEF Board of Directors meeting to be held at the Terranea Resort outside Los
Angeles.
The Committee trusts these interactive sessions will help frame the next iteration of
the Associations Strategic Plan, due to be reworked by 2015.
Approved By:
Marjorie Fine
Chairman, Strategic Planning Committee
49
I.

II.
III.
Committee Actions
IV.
Twelve pending Suppliers have applied for membership and are being presented to
the Board for approval.
DSA currently has 250 Supplier member companies. The addition of the pending 12
members up for review will bring the total number to 262 Supplier member
companies.
DSA is finalizing plans for the 2013 Annual Meeting exhibit hall.
The Supplier Advisory Committee held seven meetings via conference call for
Supplier members. Quarterly conference calls provide Suppliers with pertinent
information and offer them the opportunity to be more connected with the
Association and each other. Additionally, there are other calls provided to keep
Supplier members informed about plans for the exhibit hall at the Annual Meeting.
The campaign to increase the number of Supplier companies that contribute to DSEF
continues.
Approved By:
Edward A. Dion, Jr.
Chairman, Supplier Advisory Committee
50
I.
Diversity & Empowerment Task Force

II.
III.
None.
Committee Actions
On July 10, 2012, the Task Force Working Group Chairs met at Avon Headquarters
in New York City to advance work on developing and confirming the Associations
Diversity & Empowerment plans and goals, which align with DSA Strategic Plan
2015. Areas of focus include: enhancing the industrys image, increasing the
industrys share of the consumer product and services market, and providing guidance
to DSA committees and member firms. Members in attendance were:
o Leo Williams (Take Shape for Life, Inc.-Medifast) Chairman
o Diahanna Brown (Herbalife)
o Laura Chacon-Garbato (Herbalife)
o Leslie Mays (Avon Products, Inc.)
o Jeff Reigle (Regal Ware, Inc.)
o Nadine Thompson (Soul Purpose Lifestyle, Inc.)
The productive, day-long meeting resulted in the following outcomes:

o Development of a strategic framework addressing both short-term and longrange actions
o Confirmation of clear objectives (listed below)
o Identified process and timeframe for engaging subcommittees
The Task Force leaders also discussed and identified key enablers to advance and sustain
plan progress through including ongoing best practices research, data gathering with/on
member companies, and establishment of supporting structure and roles.
Strategic objectives:
o Increase member companies share of consumer product & service markets by
assisting in recruitment of new salesforce members and customers from
untapped or underserved constituencies
o Elevate member companies image and credibility across a broader consumer
base
o Provide guidance and tools for advancing diversity in DSA committees and
member firms
51
IV.
Task Force leaders convened their respective subcommittees between Aug. 2-10,
2012, to prioritize and confirm actions and tactics that will have the greatest impact
and notes were circulated and discussed on a follow-up call with leaders on Aug. 13,
2012, to identify any emergent themes and next steps to finalizing the plan.
Output of all subcommittees will be further refined at another in-person meeting in

late September 2012.
Drafted plan with all inputs will be prepared and finalized by Task Force leaders by
mid-October 2012.
Recommended DSA Diversity & Empowerment strategy and resource requirements

will be presented for DSA Board review and approval at the December 2012 Board of
Directors meeting
Approved By:
Leo Williams
Chairman, Diversity & Empowerment Task Force
52
August 20, 2012
TO:
DSA Board of Directors
FROM:
Charles L. Orr, DSEF Executive Director

Bettie Smith, DSEF Senior Program Director (Consumer & Ethics Initiatives)
Robin Diamond, DSEF Program Director (Education & Womens Leadership Initiatives)
Nancy Laichas, DSEF Marketing & Communications Director
Tamara Ingram, DSEF Program Manager
RE:
DSEF Activities Update
Since the Direct Selling Associations Annual Meeting in June, 2012, DSEF's activities have included:
Preparing for a Fall 2012 launch of the Direct Selling Entrepreneur Program, our community
college curriculum developed in partnership with the National Association for Community
College Entrepreneurship
Maintaining high traffic levels with the Council of Better Business Bureau's online ethics
program
Continuing the steady organic growth of DSEF's Small Business Owner outreach via our social
media platform.
DSEFs report to DSA includes more details about the above, along with other Foundation efforts. Our
current programs underscore the value of our ongoing work with partners to stand for consumers and
champion ethical entrepreneurship, earning trust and appreciation in the marketplace.
EDUCATION INITIATIVE
Chair: S. Kerry Tassopoulos (Mary Kay Inc.)
DSEF Staff Liaison: Robin Diamond
DSEF Experts Bring Value to DSA at Association Conferences and Meetings
DSEF will leverage the unique expertise of its affiliated academics and women entrepreneurs in the
following upcoming DSA meetings and conferences:
The DSA Womens Leadership Retreat September 11-12, 2012
Innovation Leadership Workshop facilitated by Karen Maples
Karen Maples is the founder of Myutiqan innovation-strategy firm established in 2004 that ignites
significant growth through the implementation of bold ideas. Recognized as an accomplished strategy
expert, Karen helps companies build innovation capacity for long-term viability and growth. Her client
list spans a diverse number of industries including technology, cyber security, manufacturing,
construction, geospatial analytics and professional services in the United States and in Europe, North
53
Africa and Brazil. Karen is a founder of the Northern Virginia Chapter of the National Association of
Women Business Owners and a national founding partner of Women Impacting Public Policy. In 2010,
Enterprising Women Magazine recognized her as one of the top women entrepreneurs in North America.
The DSA Global Regulatory Summit October 8-9, 2012
Fostering Ethical Practices among Distributors Workshop panelists include Linda Ferrell, Ph.D.,
and O.C. Ferrell, Ph.D.
Dr. Linda Ferrell is Professor of Marketing and Bill Daniels Professor of Business Ethics at the
University of New Mexico. Her research interests include: marketing and society, social responsibility,
sustainability issues, and business ethics education. She has published in the Journal of the Academy of
Marketing Science, Journal of Public Policy & Marketing, AMS Review, Journal of Business Research,
Journal of Personal Selling & Sales Management, Journal of Macromarketing, Journal of Business
Ethics, Journal of Teaching Business Ethics, European Journal of Marketing, Case Research Journal and
is the co-author of Business Ethics: Ethical Decision Making and Cases (8th edition), Business and
Society (4th edition), and Business in a Changing World (8th edition).
Dr. O.C. Ferrell is a Professor of Marketing and Creative Enterprise Scholar at the University of New
Mexico. In 2005-2006, he was the first Bill Daniels Distinguished Professor of Business Ethics at the
University of Wyoming while in charge of a state-wide business ethics initiative. Ferrell has co-authored
17 books and more than 75 articles and is the editor of www.e-businessethics.com. His academic
research focuses on ethical decision making, stakeholder relationships and social responsibility. Ferrell, a
featured speaker for trade and education groups, has been interviewed by USA Today and the NBC Today
Show.
The DSA Communications & Marketing Conference December 5-7, 2012
Using Avatars and Virtual Worlds Workshop
Back by popular demand following a packed DSA Annual Meeting workshop on the subject, Dr. Mike
Solomon of St. Josephs University and Dr. Greg Marshall of Rollins College will update their research
findings on how direct selling companies can use virtual worlds and avatars for such activities as training
and marketing to increase sales, educating and motivating distributors, collecting customer insights for
new product development, and promoting new products to consumers.
Greg W. Marshall is the Charles Harwood Professor of Marketing and Strategy at the Crummer Graduate
School of Business at Rollins College and for three years served as Vice President for Strategic Marketing
for Rollins. He served on the DSEF board of Directors for nine years and chaired the foundations
Education Committee and Research Task Force.
Michael R. Solomon, Ph.D. is Professor of Marketing and Director of the Center for Consumer Research.
Prof. Solomon's primary research interests include consumer behavior and lifestyle issues, branding
strategy, the symbolic aspects of products, the psychology of fashion, decoration, and image, services
marketing and the development of visually-oriented online research methodologies.
Global Academic Research Review and Archives Update
DSEF is working with Dr. Vicky Crittenden, professor of marketing at Boston College, President of the
Academy of Marketing Sciences and editor of the AMS Review, to collect global academic research on the
direct selling industry from the past decade and catalog it for the DSEF research archives. The updated
and current research papers will be available to DSEF contributors, free-of-charge.
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Academic and Direct Selling Company Engagement

In the 2011 Edelmans Trust Barometer in its 11th year, people ranked academics as the most trustworthy
source of information about a company with an approval rating of 70 percent.
This fall, DSEF will conduct a survey of DSA member executives to determine their company and
individual involvement with colleges and university and/or individual academics and scholars. The
foundation will survey for activities that include, alumni support, lecturing or guest speaking on college
or university campuses, working with academics in a consulting capacity on company-related business,
participating in academic or student organizations, hosting academic visitors, contributing to executive
education, or participating in academic research or developing case studies. DSEF also is interested in
understanding and overcoming the barriers that prevent companies from academic engagement by
determining the reasons lack of time, resources, commitment or interest.
Stakeholder Development
DSEF will sponsor and Robin will represent the foundation at the Society for Marketing Advances annual
conference during its 50th Anniversary in Orlando, from October 30 to November 3rd. The Society for
Marketing Advances (SMA), a premier marketing association, holds an annual conference that brings
together marketing educators from the United States and 34 other nations.
WOMENS LEADERSHIP & ENTREPRENEURSHIP INITIATIVE

Chair: Sarah Baker Andrus (Dove Chocolates Discoveries)
DSEF Staff Liaison: Robin Diamond
Direct Selling Entrepreneur Program
This September, DSEF will roll out and launch the Direct Selling Entrepreneur program, a 30-hour, 10
module non-credit course developed by the foundation in partnership with the National Association for
Community College Entrepreneurship.
This comprehensive, entrepreneurship curriculum, developed with academic integrity and rigor, has
everything a student needs to launch, manage, and grow a venture available from a direct selling
company. The purpose of this course is to instruct and demystify the components of small business
management for direct sellers who are embracing an entrepreneurship education to strengthen their
businesses and as a way of thinking about themselves in many aspects of their lives. While the course has
a significant focus on standard teaching components of entrepreneurship, it also focuses on ethics and the
DSA Code of Ethics in particular.
Among the highlights of the roll out this fall, Doris Christopher (The Pampered Chef) and Sarah Baker
Andrus (Dove Chocolate Discoveries) will keynote a general session presentation on the industry, the
curriculum, and a company founders view of ethics and entrepreneurshipat the NACCE Annual
Conference to an audience of more than 300 community college presidents, instructors and foundation
leaders on October 9 in Chicago. The curriculum team will follow the general session event later that day
with a workshop showcasing the curriculums unique features and methodology to instructors who are
interested in have their colleges offer the course.
DSEF will present important components and the highlights of the program to the DSEF Board of
Directors at its September meeting. The presentation will include the following information: the value
proposition for the industry and the community colleges; the opening class of early-adapter colleges;
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pricing structures and revenue model; marketing and media; and opportunities for direct selling
companies to participate and sponsor a community college.
The Council on Womens Leadership at the Meridian International Center
As a founding member and Chair of Communications for the Council on Womens Leadership at the
Meridian International Center, Robin participated in a number of activities that support the councils
mission to connect and educate members of the diplomatic community with women leaders from diverse
fields to accelerate womens leadership, empowerment and entrepreneurship. The activities include the
following:
Council chairs met with Ambassador Ritva Koukku-Ronde of Finland at the Finnish Embassy on
May 8, 2012.
Program hosted by the State Departments Office of Global Womens Issues and Meridians
International Visitor Leadership Program for 35 women participating in the Womens
Entrepreneurship Program from Latin America and the Caribbean, May 14, 2012.
Program hosted by Meridian International Center with the U.S. Department of State welcoming
62 Young African Entrepreneurs as part of the President's Young African Leaders Initiative, with
remarks by The Honorable Tara D. Sonenshine, Under Secretary for Public Diplomacy and
Public Affairs, U.S. Department of State, June 18, 2012.
Council strategic planning meeting, July 12, 2012.
Program hosted by Meridian for a multi-regional delegation of 21 women journalists,
entrepreneurs, and members of government ministries from Albania, Bahrain, China, Croatia,
Dominican Republic, Haiti, Eritrea, Laos, Lebanon, Mexico, Pakistan, Peru, Saudi Arabia,
Serbia, Tajikistan, Tunisia, Vietnam and the West Bank, August 7, 2012.
Robin represented DSEF at the annual conference of Women Impacting Public Policy in Washington,
D.C., July 18-19, a national nonpartisan public policy organization that advocates for women and
minorities in business in the legislative processes, creating economic opportunities and alliances to other
small business organizations. Conference speakers included, Senator Mary Landrieu, Chair, Senate Small
Business & Entrepreneurship Committee (D-LA); Senator Kay Hagan (D-NC); Representative Mick
Mulvaney (R-SC-5th); Tina Tchen, Assistant to the President and Chief of Staff to the First Lady;
Executive Director of the White House Council on Women and Girls; Don Graves, Executive Director,
President's Council on Jobs and Competitiveness; Deputy Assistant Secretary for Small Business,
Community Development and Housing Policy; and Reid Wilson, Editor-in-Chief, National Journal
Hotline.
ETHICAL LEADERSHIP INITIATIVE

Chair: Catherine R. Landman (The Pampered Chef)
DSEF Staff Liaison: Bettie L. Smith
DSEF Video on Pyramid Schemes & Related Issues
Michael L. Lunceford (Mary Kay Inc.), Cathy R. Landman (The Pampered Chef), Bob Luebbers (Iacono
Productions), and DSEF staff met via teleconference recently to discuss the production of a new video
that will address the publics misperception about direct selling, pyramid schemes and related issues.
With an increase in media scrutiny about the industry, the timing for such a video is just right. Bob
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describes the project as follows: The intent is to clearly identify direct selling as a valid, viable and legal
business model that is actually growing in popularity around the world. The direct selling business model
is not a pyramid scheme; but pyramid schemes often masquerade as direct selling companies. And, the
industry has suffered because of it. Consequently, it is critical to launch an on-going communication
initiative that enhances the publics understanding of direct selling; establishes the industrys high ethical
standards; confirms the legality and legitimacy of the direct selling model; clearly distinguishes it from
pyramid schemes; and identifies the characteristics and warning signs that a business opportunity might
actually be a pyramid scheme.
DSEF staff and Mr. Luebbers will reach out to select executives for their input on the project over the
next few weeks. The video will be available through DSEF, and will also be put in rotation with the
Foundations videos and TIPS on the Council of Better Business (CBBB) website
http://www.bbb.org/us/DSEF-tips/ . Contact DSEFs Bettie Smith, bsmith@dsef.org or 202-416 6421 for
additional information.
Council of Better Business Bureaus (CBBB)
DSEF and the Council of Better Business Bureaus (CBBB) partnership to promote ethics and trust in the
marketplace continues to reflect above-average results as shown from the latest tracking analytics below.
A key goal of the partnership is to provide accurate, timely, and relevant information on diverse consumer
and business issues that include the direct selling method of distribution. CBBBs Jim Guthrie, Senior
Consultant, Advertising & Marketing, reports that the Foundations video, Direct Selling Industry
Making the World a Better Place, continues to appeal to individuals seeking information about direct
selling products, and individuals interested in becoming a direct seller. In addition, increased rotation for
DSEFs Ethics Videos and TIPS on direct selling on the CBBBs site http://www.bbb.org/us/DSEF-tips/
have generated new highs in video page traffic and quality viewing results.
Highlights from the latest tracking report for the period June 23 to July 22 reveals:
To date, there have been 28,121,535 DSEF video and TIPS page views!
Video page views were 870,588 74% above the monthly goal of 500,000 page views.
There were 2,607 video views, which are 72% higher than the 22 month average.
Clicks and click through rates were 1,467 on DSEFs logo from the videos. This is more than
double the 22 month average.
The 1,369 TIPS page views are almost even with the 22 month average. Consumers who clicked
on the TIPS were looking for more information about direct selling. And, the most frequently
viewed TIPS were, What to expect if youre considering direct selling, Are you considering a
Direct Selling Opportunity, and How to respond to online consumer complaints. These three
tips accounted for over half of the specific page views.
There were 181 page views of the blog spots. The highest rating blogs involved multi-level
marketing, and how to start your own business.
As stated in earlier reports, the positive performance of the CBBB/DSEF partnership is a result of timely
and balanced messaging that: (1) encourages customers to purchase through a better understanding of the
direct selling method, and (2) encourages prospective direct sellers to learn more about direct selling.
Finally, DSEF staff met recently with Mr. Guthrie and CBBBs Beverly Baskin, Senior Vice President,
Chief Mission Officer, to discuss plans for a series of visits by Charlie Orr to promote the CBBB/DSEF
Ethics & Trust Partnership to select Better Business Bureaus around the country.
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Business for Responsibility (BSR) Conference
Fast Forward, is the theme of the Business for Responsibility (BSR) 20th Annual Conference that will
be held October 23-26, 2012, in New York City. Featured speakers include: Anne-Marie Slaughter,
Professor of Politics & International Affairs, Princeton University, Jose Ramos-Horta, Nobel Peace Prize
Laureate and Former President, Democratic Republic of Timor-Leste, and Marc Bolland, Chief
Executive, Marks and Spencer. Over 1,000 participants from business, academe, government and nongovernment organizations worldwide will participate in the conference that will focus on helping
businesses fast forward their organizations towards a fair and sustainable world.
Workshop session topics include: Women Entrepreneurs and the Scaling Dilemma, Tackling Bribery
and Corruption Risks in Global Supply Chains, Humanizing the Inclusive Economy, Environmental,
Social, and Corporate Governance (ESG) Investments in Emerging Markets, and The Search for
Sustainable Products: Collaboration and Competition. DSEFs Bettie Smith will participate in the
conference.
BSR works with a global network of more than 250 member companies that come together to develop
sustainable business strategies and solutions through consulting, research, and cross-sector collaboration.
For additional information on the conference visit BSRs site https://www.bsr.org/en/bsr-conference.
CONSUMER INITIATIVE
Chair: Kara Schneck (Nu Skin Enterprises)
Co-Chair: Brenda Cude, Ph.D. (University of Georgia)
DSEF Staff Liaison: Bettie L. Smith
DSEF and California Consumer Affairs Association (CCAA) Workshop for Military Service
Members and Families
California Consumer Affairs Associations (CCAA) 37th Annual Conference http://calcaa.org/ will be
held at California State University-Long Beach on October 29-30, 2012 in Los Angeles, CA. Featured
speakers include Andre Birotte, U.S. Attorney, Central District of California, Tony West, Associate
Attorney General, Dr. Kenneth Millar, Dean, College of Health & Human Services, California State
University, Long Beach and Anne Crews, Vice President, Government Relations, Mary Kay Inc.
Participants from various military branches, the Federal Trade Commission, federal, state and local
government agencies, academics, non-profit, and religious organizations will discuss a range of topics
that include consumer privacy, immigration fraud, health care, debt collection and affinity crimes.
DSEF is sponsoring a special workshop on Frauds and Issues Targeting Military Personnel, that will
focus on consumer protection needs and emerging issues confronting military service members and their
families. Moderated by Bruce Riordan, Special Counsel, U.S. Attorney, Central District of California, the
workshop will provide an opportunity for participants to identify the needs, gaps and opportunities at the
macro and micro levels. Speakers (subject to change) include: Brigadier General Matthew P. Beevers,
California National Guard, Roland A. Arteaga, Defense Credit Union Council, Brenda Linnington,
Council of Better Business Bureau, and Colonel Joseph Smith, County of Los Angeles, Department of
Veteran Affairs, Edwin Cho, Regional Director, Consumer Financial Protection Bureau, and Cynthia
Schlesinger, Veterans Administration.
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Established in 1974, the California Consumer Affairs Association is an organization of federal, state and
local government and community-based organizations whose primary mission is consumer protection.
CCAA provides a platform for consumer protection agencies and organizations to work together on
strategies that includes advocating for legislation, public policy, and best practices to enhance consumer
protection.
Additional information relating to the conference will be given by Mr. Reyes at the September board
meeting.
Credit Union National Association (CUNA) Financial Education Tools
Two new financial education videos, Protect Yourself from Social Media Scams, and Protect Your
Identity When Using Social Media developed by CUNA is available for download on DSEFs You Tube
Channel, http://www.dsef.org/what-we-do/consumer-initiative/credit-union-national-associationcuna/videos/. Consumers will find important tips on protecting their personal and business information,
how to identify common scams, and how to select strong passwords to prevent hackers from accessing
their online accounts. A key goal of the DSEF and CUNA partnership is to develop resources and tools
that will help consumers, and small business owners, make smart financial decisions. DSEF encourages
DSA members to share the CUNA financial education videos and other resources with their sales force,
employees and family members.
CUNA, http://www/cuna.org/cuna/, is the premier national trade association serving 90% of Americas
8,500 credit unions, which are owned by over 90 million consumer members. The not-for-profit trade
group is governed by volunteer directors who are elected by their credit union peers. CUNA provides
many services to credit unions, including representation, information, public relations, continuing
professional education, and business development.
MONEY WI$E Women Get Smart Teleseminar Series
Over the next three months, DSEFs popular Money Wi$e Women (MWW) Get Smart Teleseminars will
focus on the following topics: Budgeting for the Right Brainers, From Bath to Business: The Good, Bad
& Sudsy of Accidental Entrepreneurship, and Bridging the Financial Gender Gap. Hosted by Marcia
Brixey, President of MWW, the monthly Teleseminars empower listeners to learn, at their own pace, how
to manage their personal, financial and professional lives. To date, there are over 1,330 registered
participants from 20 countries that include Australia, Canada, Japan, Guatemala, Ireland, Philippines,
Poland, Russia, United Arab, Israel, Magnesia, Maharashtra and the U.S. Participants must register to
access the Teleseminars at http://www.moneywisewomengetsmart.com/
MARKETING & COMMUNICATIONS

Chair: Brett Duncan (Mannatech, Inc.)
DSEF Staff Liaison: Nancy Laichas
DSEF Communications Committee
As a follow-up to the joint DSEF/DSA Communications Committee meeting held June 3, 2012, in
Grapevine, TX, the DSEF Communications Committee met via teleconference on August 16, 2012.
Attendees included:
Committee Chair Brett Duncan, Mannatech
Nancy Laichas, DSEF
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Charlie Orr, DSEF

Kelly Harte, Avon
Calvin Jolley, 4Life
Paul Adams, VideoPlus
Molly Cox, DSA
Brad Reichard, Focus Communications
Items discussed included:
Crisis Communications Planning
Possible situations:
1) External (similar to current industry attack)
a. Foundation cannot defend industry; not aggressive
b. Put together a list of bios of stakeholders and advocates thats ready for reporters
c. What is our statement, response when we receive these requests (esp. from reporters)?
d. Primary point: Education. Particularly the difference between legitimate businesses and
illegal pyramid schemes.
e. Clarify the publics perception
f. Our primary asset are our relationships; leverage our third-party endorsements
g. Leverage our programs and offer angles to reporters in certain niches just to get more
h. ACTIONACTION: Create a list of resources to deliver to media as needed.
2) Internal
a. Crises involving employees, stakeholder or programs
Action Steps:
1) Nancy and Brad to organize a simple process document and distribute to committee so we can get our
plan in writing and work from there
2) Create a list of resources to deliver to media as needed
Joint DSEF/DSA Communications Meeting
Review of meeting discussion
1) How can we complement each other?
2) How can we leverage our activities?
3) How can we clarify our roles so it benefits everyone?
4) How should companies be leveraging what we offer?
a) This became a big discussion point and seemed to be one of the biggest takeaways for the two
groups as far as how to best work together.
b) Do companies dont know how to fully leverage what DSA and DSEF offer?
c) DSAs Dashboard was well-received and can serve as a model for DSEF to create a simple
awareness campaign that lets companies know of all the resources and advantages that come from
available from DSEF
Action Steps:
1) Molly to send Dashboards to meeting attendees
2) Committee to develop overview of DSEF resources and how companies can use them (internally,
with their field, with the public)
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Discussion of Possible New Tagline: Standing Up for Consumers, Championing Ethical

Entrepreneurship
1) Nancy explained that this tagline idea came out participating in a six-week Message Focus Workshop
to develop tagline ideas that met the following criteria:
a) Must convey your nonprofits impact or value
b) Must be broadly and easily accessible and memorable, avoiding jargon and acronyms
c) Must be specific to your organization, not easily used by another nonprofit
d) Must be eight words or less, which is all you have of your audiences attention.
e) Should make an emotional connection
f) Should capture the spirit or promise of your organization or program
g) Should clearly complement and/or clarify your organizations or programs name without
duplicating it
h) Should take a tone that will connect with your audiences, while being true to your organizational
self
i) Should be authentic
2) At its core, DSEF is about consumers and ethical entrepreneurship: all programs can fall under one of
these two categories
3) Paul Adams said he loves leading to consumers, but the tagline feels cumbersome. It captures the
essence, but words may be a tad long.
4) Possible variation: Standing Up for Consumers and Ethical Entrepreneurship
5) Charlie noted that this tagline captures what public service means today.
Action steps:
1) Hold further discussion with DSEF staff
2) If appropriate, present to Board for discussion in September
Discussion of Possible DSEF Image Campaign, "Got It."
1) Expanding on an idea that Paul Adams suggested after a recent Development Committee call, Nancy
presented the following:
Refocusing the Industrys Perception of the DSEFs Work, Impact and Value:
Got It Image Building Campaign
During 2012, DSEF has worked to create broader awareness of the resources and programs it
makes available for the public and the direct selling industry. By enumerating the output of the
Foundations broad range of programs, DSEF is finding new ways to explain how the
organizations work helps create a market climate of trust.
Feedback about these recent effortsnewsletters, infographics, social media, videos, GoldMail
and increasingly honed messageshas been positive. Yet, the perception that DSEF has spread
itself thin across a range of initiatives persists. The Foundations historic communications
structurerepresented through four focal points of consumer advocacy, ethical leadership,
womens entrepreneurship and academic engagementlends credibility to this perception. The
story of the Foundations positive impactexplaining how DSEF not only champions ethical
entrepreneurship, but also stands up for consumersremains largely untold.
To begin addressing these misperceptions, the Got It campaign would be developed as an
image-building initiative that asks thought leaders of all stripesbusiness ethicists,
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entrepreneurial academics, consumer advocates, etc. to describe the moment they came to
understand direct sellingthe moment they got it.
Leaders would be featured in video, social media and print advertising content, as well as through
a comprehensive media relations initiative, briefly describing the way in which a specific DSEF
program provoked their eureka moment. Tapping a wide-range of known, credible, third-party
stakeholders, the image campaign will build awareness of the difference that the Foundations
work has made for key thought leaders.
With this positive impact clearly stated, the case can begin to be made that the Foundations work
standing up for consumers and championing ethical entrepreneurship helps create a more positive
market climate for the direct selling industry as a whole.
The committee offered the following feedback:
1) Addresses Whats In It for Me?
2) Humanizes what we do, puts it in people terms
3) Thirty-second video spots of stakeholders talking about Got It moment
4) Focus first on reaching industry executives, then beyond
5) At some point, everyone has their got it moment.
6) Illustrate the transition from working with one of those companies and those people to getting
passionate about the possibilities of the industry and what we provide; point out what you thought
when you didnt get it
Action Step:
1) Nancy to determine the next steps including identify video subjects, planning campaign elements and
launch, developing budget, identifying resources (funding, in-kind donations)
Social Media & Website
Of the top ten most visited pages from July 18-August 16, seven are blog posts. Popular topics include,
How to Find Customers, Socialize to Increase Business and Why Are Customers Attracted to
You?
From July 18-August 16, 70% of traffic came from referral sources with Facebook referring nearly 50%
of total visits for that period. Top referring sources are:
1)
2)
3)
4)
5)
6)
7)
Facebook
BBB.org
Kirby.com
Bign.com (Team National)
Acnintegrity.com
Createyourfuture.princesshouse.com
Youravon.com
Date Range
DSEF.org Website Analytics

Unique Visitors
4/16/11-5/16/11:
2159
5/17/11-6/16/11:
3374 *Social Media launch + New site launch
6/17/11-7/17-11:
3020
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7/18/11-8/17/11:
8/17/11-9/16/11:
9/16/11-10/16/11:
10/16/11-11/16/11:
11/16/11-12/16/11:
12/16/11-1/16/11:
1/16/12-2/17/12:
2/16/12-3/17/12
3/17/12-4/17-12
4/18/12-5/17/12
5/18/12-6/17/12
6/18/12-7/17/12
7/18-8/15/12
3708
4321
4892
6176
5184
5631
7294
8021
8548
9,090
10,086
8,232
8,373
Facebook
1) As of 8/17/12 our Facebook page has 8,696 fans that represent an active, growing community that
routinely shares and comments on posted resources. A recent comment from a fan from the
Philippines: Thank you DSEF, as a Mompreneur I learned so much from your e-book. I will surely
apply to my business God bless all of you and please keep on posting tips and inspiring blogs.
2) Our weekly total reach has grown from 20,518 for the week ending 7/21/12 to 166,432 for the week
ending 8/11/12 (see Facebook Ad Campaign)
Facebook Ad Campaign
1) DSEF launched a Facebook Campaign (see attached preliminary results) for the month of August
with a budget of $50 per day. The main themes for advertising include:
a) Lets Get Real Campaign: Effort = Results. You can succeed if you work hard, learn, work smart
and keep improving. You can find a good business and build a business. DSEF provides tools to
help you do it.
b) PT business reduces money stress theme is that this can create part time income to help with the
family budget. DSEF provides tools to help you build a part time business.
c) Work HardBe Flexible. If youre willing to work hard, you can build a business around your
schedule. DSEF has tools that can help.
2) All ads are tied to DSEF e-books. For the first half of the month we are linking the Business
Owners Roadmap to Success e-book and the second half of the month we link to the Creating
Your Success Mindset ebook.
BlogWeek Ending 7/3012
1) Achieve What You Want was the most popular content on the site, with 274 views. Other popular
posts include Why Are Customers Attracted to You (244 views) and How to Stand Out from your
Competition. (173 views.)
2) Facebook was the top referrer to the blog, sending 1,028 visitors this week (followed by Twitter (251)
and ACN (34)
Pinterest
1) There are 187 people following all of the DSEFs Pinterest boards.
2) 167 are following the About Direct Selling board, 145 are following the What We Do board, 155
are following the Ethics in Business board, 153 are following the Entrepreneurship board, 147
are following the Consumer Protection board, 151 are following the Personal Finance board, 144
are following the Strategic Partners board, 144 are following the DSEF Supporters board, and
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143 are following the Executive Spotlight board. Weve also added an Inspiration board that has
145 followers.
3) There are 31 Likes and 3 comments on DSEF content.
4) DSEF content has been repinned 138 times. Our most popular pins, 9 Ways to Use Pinterest for Your
Small Business, and the What is Direct Selling Video, were each repinned 8 times.
Twitter
1) Twitter followers increased to 1728.
2) There were 59 mentions of the DSEF this week.
3) DSEF is on 37 Twitter users lists.
4) DSEF Klout score is 44.
YouTube
1) There are 22 videos one our YouTube channel
2) Total video views as of 8/17/12: 32,765
3) Subscribers to the YouTube channel are up to 210
4) What is Direct Selling? is the most popular video with 14,668 views, followed We Can Make a Better
World with 4,931 views
E-Book
1) In mid-June, DSEF launched abfree, downloadable e-book compilation of blog posts on our Facebook
Page: Business Owners Roadmap to Success
2) Total e-book tab views are 4,931
3) A second e-book, Creating Your Success Mindset, will be launched in late August. Topics include:
a) Planning to Succeed in Business
b) Prepare for success. Define your WHY.
c) Tune out negativity. Commit to listening to your positive self-talk.
d) Make a plan.
e) Accountability.
f) Use visualizations.
g) Make a plan for when you fall.
h) Focus on excellence rather than perfection.
Newsletter
1) DSEF monthly newsletter launched in April and is sent to a list of 4,099 DSA member executives and
suppliers
a) The July newsletter had 22% open rate of and a 2.8% click-through rate
2) An RSS-driven monthly newsletter launched in July and is sent to those who sign up for our
newsletter via our website (currently 820 subscribers)
a) The July RSS-driven newsletter had a 32.1% open rate and a 9.1% open rate
3) The average nonprofit open rate is 21.5% and average click-through rate is 3.2%
Program Marketing
Direct Selling Entrepreneur Program (DSEP)
1) DSEF is finalizing the design, proofreading and printing of the DSEP curriculum
2) In preparation for the fall launch, DSEF has developed a comprehensive marketing plan and
including:
a) Program brochure
b) Webinar PowerPoint presentation
c) DSN article by Charlie Orr (August issue)
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d)
e)
f)
g)
h)
DSEF newsletter feature (August)

Pitching strategy for Community College Week, the community college trade publication
FAQ
Messaging strategy & talking points
Developing social media strategy
Credit Union National Association (CUNA)

DSEF promotes CUNA resources through a variety of channels:
1) A dedicated web page housing all resources: videos, PowerPoint presentations, blog posts and
personal finance articles: http://www.dsef.org/what-we-do/consumer-initiative/credit-union-nationalassociation-cuna/
2) Weekly Facebook posts
3) DSEFs YouTube Channel
4) Newsletter articles: http://www.dsef.org/2012/04/25/scam-alert-how-to-safeguard-your-business/
5) Web and newsletter banner:
Council of Better Business Bureaus (CBBB)

DSEF promotes DSEF/CBBB resources through a variety of channels:
1) Weekly Blog post exchange with CBBB
2) Weekly Facebook posts
3) Newsletter articles: http://www.dsef.org/2012/04/25/dsef-supplied-content-enriching-cbbbconsumers/
Network for Teaching Entrepreneurship
On Oct. 11, 2012, Director of Marketing & Communications Nancy Laichas and Executive Director
Charlie Orr will serve as semi-final judges for NFTEs National Challenge in New York and attend the
finals that evening. Program Manager Tamara Ingram will attend all events to help evaluate future
partnership opportunities with NFTE. Connie Tang, DSEF Board Member and President & CEO of
Princess House will serves as a judge for the finals.
NFTEs mission is to provide programs that inspire young people from low-income communities to stay
in school, to recognize business opportunities and to plan for successful futures. The National Challenge
brings regional business plan competition winners to New York to present their business plans to a
65
distinguished panel of judges. The first place winner will receive $25,000 plus an additional $5,000
Coleman Entrepreneurial Scholarship, sponsored by GlobalHue.
Seldia 2012 Round Table on the Future of Direct Selling

Executive Director Charlie Orr, Director of Marketing & Communications Nancy Laichas and Seldia
Executive Director Maurits Bruggink held a call in July to discuss distributing and promoting DSEF and
its resources in Europe. Seldia included an article about DSEFs e-book in their July newsletter as a first
step, and a second call is planned for early September.
To further the partnership, Charlie Orr and Nancy Laichas and Executive Director will attend Seldias
(the European Direct Selling Association) Annual Roundtable on the Future of Direct Selling on Oct. 2-3
in Milan. Charlie will speak at the event and an announcement of Seldia/DSEF collaboration is tentatively
planned.
DEVELOPMENT
Chair: W. Alan Luce (Luce & Associates)
DSEF Staff Liaison: Nancy Laichas
As of August 20, 2012, contributions and pledges to DSEFs 2012 Operating Fund totals $730,412 and
represent 97 percent of the budget goal of $750,000 established by the Finance Committee and approved
by the Board of Directors. DSEF thanks all contributors for their generous support.
Fundraising
Since June, DSEF launched a fundraising appeal email from outgoing Chairman Tom Kelly (Silpada
Designs to follow up on the spring direct mail campaign. The appeal recognized contributors to date,
included examples of and links to DSEF resources and passed the torch ) to incoming Chairman John
Parker (Amway). The email was sent to the DSA member company executives on July 11 and achieved a
24% open rate.
Development Call
Mr. Luce hosted a webinar on August 6, 2012, with the goal of brainstorming new fundraising
techniques. Participating in the call with Mr. Luce were DSEF staff, Charlie Orr, Tamara Ingram and
Nancy Laichas; Kerry Tassopoulos, Mary Kay; Angela Chrysler, Team National; and Paul Adams,
VideoPlus.
Several ideas were discussed on the call including:
Begin solicitation before November for the next year

Involve more CEOs and DSEF Board Members in fundraising for a peer-to-peer approach
Board members reach out to local companies to teach them about DSEF
Reception for non-contributors during the DSA Communications & Marketing Conference
Film executives explaining why they contribute to DSEF
Introduce new Supplier contribution recognition levels
66
DSEF staff and the Development Committee will follow up on the ideas presented.
Pack a Present Toy Drive
DSEF will hold its 3rd Annual Pack a Present Toy Drive during DSAs Be Connected Conference,
December 5-7, 2012, at Terranea- LA's Oceanfront Resort. Toys will be collected throughout the
conference and will end with a pancake breakfast with Santa for area children. Additional details will be
forthcoming.
As a reminder, DSEFs Board meeting (Monday, September 10, at 4:00 p.m.) is always open and we
welcome your attendance. Its just another way to capture the spirit of DSEF. Please email Tamara
Ingram at tingram@dsef.org if you plan to attend. Hope to see you there.
67
New Perspectives
DSA News
Changing the Game:
by line
Community Colleges Embrace DSEFs Direct Selling

Entrepreneur Program
by Charlie Orr
Imagine members of your field organization sitting in a college classroom learning the entrepreneurial
skills that are both universal to small-business owners and specific to direct sellingskills that
complement and strengthen the excellent training programs your companies have in place to teach
your field about your unique cultures, products and business opportunities.
ound too good to be true?

This fall, the scenario above
will play out in community
collegeclassrooms across the country
astheDirect Selling Education
Foundation launches its Direct
Selling Entrepreneur Program, a
30-hour, 10-module, non-credit
course that introduces direct sellers
to the fundamentalcomponents of
small businessmanagement and
entrepreneurship, including marketing,
finance, legal issues, planning, ethical
business practicesall skills crucial
to thesuccess of any direct selling
smallbusiness.
The countrys 16 million direct sellers
come to the industry with a wide range
of experiences and goals. The creation
of a dedicated curriculum aimed at this
broad range of independent business
ownersfrom those who are new to the
industry to those with years of direct sales
experiencewill give them the confidence
in their ability to succeed as direct selling
professionals while they put what they
learned intoaction.
While course participants may enter
thinking of themselves as direct sellers,
they complete the course as small-business
owners capable of incorporating solid
entrepreneurial skills to maximize the full
range of opportunities offered by the world
of direct selling.
Its a game changer.
The Direct Selling Entrepreneur
Program curriculum is the result of
72
Direct Selling News
| August 2012
more than two years of hard work and

the dedication of a talented group of
individuals. DSEF Program Director
Robin Diamond assembled an incredible
team of staff, industry executives,
curriculum experts and other volunteers
to take this program from a kernel of an
idea to a successful pilot phase, and now
anational rollout.
At DSEF, one of the ways we stand
up for consumers and champion ethical
entrepreneurship on behalf of the
industry is by nurturing relationships
with consumer advocates, educators
and students, public policy officials,
and members of the small business and
entrepreneurship communities.
Program is a testament to that work and
demonstrates how a conversation we have
today might result in a groundbreaking
partnership and program tomorrow.
This project would never have gotten
off the ground without DSEFs years
of relationship-building and trusted
programming. These cumulative efforts
resulted in a partnership with the National
Association of Community Colleges
for Entrepreneurship (NACCE), an
organization that helps community
colleges nationwide link their traditional
role of workforce development
withentrepreneurship.
Program is also a testament to you: the
industry executives and companies that
fund the foundations critical efforts
through voluntary financial contributions.

Without your support, none of our work
would be possible.
All of us at the foundation extend a
special thank-you to Jerry and Bonnie
Kelly of Silpada Designs. Their belief
in the potential of the Direct Selling
Entrepreneur Program and their
generousfinancial support gave us the
resources to accelerate the curriculum
development and ensure the end result
isworld-class.
When I think about DSEFs mission
to engage and educate the public on the ways
direct selling empowers individuals, supports
communities and strengthens economies
worldwide, I cant help but be struck by
how the Direct Selling Entrepreneur
Program so beautifully aligns with every
word. Through this program, DSEF is not
only educating direct sellers, but raising
awareness about the entire industry and
its role in shaping people, communities
andeconomies.
The Direct Selling Entrepreneur Program
will roll out in a dozen community colleges
beginning in September and will reach
even more communities in 2013.
For more information, contact Director
of Marketing & Communication Nancy
Laichas at nlaichas@dsef.org. To help
fund the Direct Selling Entrepreneur
Programand other DSEF initiatives, visit
www.dsef.org to make a contribution. DSN
Charlie Orr is Executive Director of the
Direct Selling EducationFoundation.
Facebook Ad Campaign Results

8-18-9
Contributions sustain the DSEFs mission to serve the public interest by advancing the direct selling industrys
support of consumer rights and protection, education about the industry, ethical leadership, and individual
economic empowerment. For information about the DSEF or to provide your support, please visit www.dsef.org.
2012 Annual Fund Corporate Contributors
December 1, 2011 November 30, 2012 (reflects contributions and pledges received as of August 20, 2012)
PATRONS
($40,000 - $74,999)
DONORS
($5,000 - $14,999)
*Amway
Avon Products, Inc.
*Herbalife
*Mary Kay Inc.
*Scentsy, Inc.
CONTRIBUTORS
($1,000 - $4,999)
Advocare International, LP
Aerus, LLC/Vollara
Arbonne International, LLC
Beachbody LLC
Direct Selling News (In-Kind)
*GNLD International
Hy Cite Corporation
Immunotec, Inc.
lia sophia
*Morinda Bioactives
Natures Sunshine
Products, Inc. +
*Oxyfresh.com/21Ten Inc.
Princess House, Inc.
*Reliv International, Inc.
Rodan + Fields Dermatologists
Shaklee Corporation
Stampin Up!
Tastefully Simple
*Team National
Thirty-One Gifts, Inc. +
Union Springs Wellness +
SPONSORS
($25,000 - $39,999)
*Nu Skin Enterprises
*The Pampered Chef
*Premier Designs, Inc.
*Primerica, Inc.
SUPPORTERS
($15,000 - $24,999)
*4Life Research, LLC
*ACN, Inc.
*CUTCO/Vector Marketing
Corporation
*The Scott Fetzer Foundation
Silpada Designs
*USANA Health Sciences, Inc.
5LINX Enterprises, Inc +

*Agel Enterprises, LLC
Associated Luxury Hotels
International (In-Kind)
Bartha Events, Productions
& Staging
Celebrating Home
Cosmo International
Fragrances
Gold Canyon
GoldMail, Inc.
The Hartford
Jenkon
John A. Parks Co. Inc.
LBri Pure N Natural
Mannatech, Inc.
Numis Network +
PartyLite Gifts, Inc.
Pro Insurance Managers, Inc.
*Rena Ware International, Inc.
Sabika, Inc. +
Signature HomeStyles
Smart Office Solutions, Inc.

*Talk Fusion
Tony Jeary International
VideoPlus, L.P. (In-Kind)
*Wildtree Herbs, Inc. +
*YOR Health +
FRIENDS
($100 - $999)
All Dazzle
Avalla
Babener & Associates
ByDesign Technologies
Carico International
Celadon Road
Clever Container +
Crowley Collaborative
Dan Jensen Consulting
DSX Group
E.A. Dion, Inc.
FOCUS Communications LLC
Garden State Nutritionals, Inc.
Grimes & Reese
GSATi
Hepfer & Associates
*HomeTec
Iacono Production
Services, Inc.
iCentris, Inc.
IDSTC
IMPACT This Day
InfoTrax Systems
Initial Outfitters
Litle & Co.
Luce & Associates
MaCher, Inc.
Maddy Moo Creations
Multi Image Group
Nehra & Waak, Attorneys At Law
Next Wave
*Phoenix Trading +
*Pink Papaya, LLC
ProPay Inc.
Rastelli Direct +
Roam Data
Savvy Network Marketing
Women.com
Simply Said, LLC
Sylvina Consulting
Thatcher Technology Group

The Tammy Stanley Sales
Refinery (In-Kind)
Traci Lynn Fashion Jewelry +
Vantel Pearls (In-Kind)
Vemma +
Votre Vu
Wakefield Global
WineShop At Home (In-Kind)
Winfield Consulting
Zoom.7, Inc.
Bold Capital Campaign

Contributor
*
Fair Share (Active
Member Companies Only)
+
First Time Contributor
(Active Member
Companies Only)
Red Ribbon Contributor

(Supplier Member
Companies Only)

EIA Sponsor/Participant
2012 Annual Fund Individual Contributors
December 1, 2011 November 30, 2012 (reflects contributions and pledges received as of August 20, 2012)
FOUNDATION CIRCLE
($25,000+)
CHAIRMANS CIRCLE
($10,000 to $24,999)
Doris K. Christopher
PRESIDENTS CIRCLE
($5,000 to $9,999)
Christina Gold
Scott & Cindy Monroe
Charles L. Orr
Heidi Thompson
Orville Thompson
DIRECTORS CIRCLE
($2,500 to $4,999)
Jim Northrop
Jim & Carol Stitt
EXECUTIVES CIRCLE
($1,000 to $2,499)
Joey Carter
Jane Edwards Creed
Marjorie Fine
Stan & Judy Fredrick
Robert Henry
Stuart Johnson
Thomas F. Kelly
W. Alan & Carolyn Luce
Joesph N. Mariano
Nathan P. Moore
John & Karen Whelpley
LEADERSHIP CIRCLE
($500 to $999)
Deborah T. Ashford
Anne Butler
Brett Duncan
John T. Fleming
John & Jennifer Fong
Landen Fredricks
Nancy J. Laichas
Betty Palm
Patricia L. Pearcy
Jeff & Jean Reigle
Connie Tang
Kevin Young
BUILDERS CIRCLE
(up to $499)
Karen Altman
Carlyle Ashcroft
Mel Atwood
2012 Contribution & Pledge Form
Sherry Atwood
Daniel Audet
Steve Baden
Armando BerronesFerrino
Doug Braun
Richard Brooke
Traci Lynn Burton
Lori Bush
Joan Hartel Cabral
Trey Campbell
Heather Chastain
Cari Christopher
Angela Loehr Chrysler
Chip Cornwell
Kimberly Cornwell
Mike Costache
Sandra Cunningham
Elad Daniel
Joao De Arruda Pires
Pam Dean
Joseph DiCiacco
Rachel Elliott
Linda Ferrell, Ph.D.
O.C. Ferrell, Ph.D.
George Fischer
Kevin Fournier
Adolfo Franco
Rex Gailbraith
Katharine Gardner
Laurie Granger
Kelly Harte
Joseph Hawkins
Cindy Hoddeson
Calvin Jolley
Skylla Jones
Jerry Kelly
John Killacky
Catherine R. Landman
Tod Lane
Dan Lewis
Stuart MacMillan
Dan Macuga
Michele McDonough
Tom McGurran
Jaroslaw Mulewicz
Dan Murphy
Mike Nichols
Joani Nielson
Francisco Ortega
John A. Parks
Andre Peterson
Harriet Porter
Rudy Revak
Heather Rickard
Robert David Roach, Jr.
Amy Robinson
Peta Russell
Kara Schneck
Sue Schroeder
Richard Schubkegel
Stuart Smith
S. Kerry Tassopoulos
Chuck Thompson
Heather VanBlarcom
Robert Watson
David Wentz
Peter Wojewnik
Mail in your contribution using one of the forms below, or donate online at www.dsef.org
DSA/DSEF ACTIVE OR SUPPLIER MEMBER CORPORATE SUPPORTER

Benefactors ($75,000)
Patrons ($40,000 to $74,999)
Sponsors ($25,000 to $39,999)

Supporters ($15,000 to $24,999)
Donors ($5,000 to 14,999)

Contributors ($1,000 to $4,999)
Friends ($100 to $999)

Send invoice for $____________
Enclosed is my check in the

amount of $________________
DSA/DSEF INDIVIDUAL SUPPORTER

Foundation Circle ($25,000)
Chairmans Circle
($10,000 to $24,999)
Presidents Circle
($5,000 to $9,999)
Directors Circle
($2,500 to $4,999)
Executives Circle
($1,000 to $2,499)
Leadership Circle ($500 to $999)
Builders Circle (up to $499)
Send invoice for $____________________

Enclosed is my check in the amount of
$________________________________
Name: _______________________________________________________________________ Company: __________________________________________________________________

Address: _________________________________________________ City: ___________________________________________ State: ____________ ZIP: ____________________________
Phone: ____________________________________________ Fax: _______________________________________________ E-mail: ____________________________________________
Please charge my
Visa
MC
AMEX in the amount of $________________ Credit Card Number: ___________________________________________ Exp: _________________
Name on Card: _______________________________________________________ Signature: ______________________________________________________ Date: _________________
Please make checks payable to: The Direct Selling Education Foundation, 1667 K Street, NW, Suite 1100, Washington, DC 20006. Phone: (202) 452-8866 Fax: (202) 452-9015. The Direct Selling
Education is a not-for-profit 501(c)(3) organization. All contributions are voluntary, and are tax deductible as a charitable donation. The value of goods and services received in
exchange for this contribution is $0.00.
DSA BOARD OF DIRECTORS

(Date in parentheses denotes term end date)
*Executive Committee Member
Chairman
Mr. Brett R. Chapman*
General Counsel
Herbalife
800 West Olympic Boulevard
Suite 406
Los Angeles, CA 90015
Phone: (213) 745-0484
Fax: (213) 765-9808
brettc@herbalife.com
Vice Chairman
Mr. Truman Hunt*
President & Chief Executive
Officer
Nu Skin Enterprises
75 West Center Street
Provo, UT 84601-4432
Phone: (801) 345-5000
Fax: (801) 345-5999
thunt@nuskin.com
Vice Chairman
Mr. Orville Thompson*
Scentsy, Inc.
2701 East Pine Street
Meridian, ID 83642
Phone: (208) 855-0617 ext. 5599
Fax: (208) 888-4306
orville@scentsy.com
Treasurer
Mr. William R. Dangl*
DirectorPortfolio Financial Support
Amway
7575 Fulton Street East
77-3G
Ada, MI 49355-0001
Phone: (616) 787-6374
Fax: (616) 787-1949
bill.dangl@amway.com
Immediate Past Chairman
Mr. Jerry Kelly*
Chairman
Silpada Designs
11550 Renner Boulevard
Lenexa, KS 66219-9600
Phone: (913) 851-7757 ext. 1001
Fax: (913) 851-3541
jerry.kelly@silpada.com
Past Chairman
Ms. Marjorie L. Fine*
Executive Vice President &
General Counsel
Shaklee Corporation
Hacienda Campus
4747 Willow Road
Pleasanton, CA 94588-2740
Phone: (925) 924-2586
Fax: (925) 924-2155
mfine@shaklee.com
President
Mr. Joseph N. Mariano*
President
1667 K Street, NW
Suite 1100
Phone: (202) 416-6419
Fax: (202) 452-9010
jmariano@dsa.org
Secretary
Mr. Adolfo Franco*
Executive Vice President
1667 K Street, NW
Suite 1100
Phone: (202) 416-6416
Fax: (202) 452-9010
afranco@dsa.org
Directors
Dr. Traci Lynn Burton (2015)
Founder & Chief Executive Officer
Traci Lynn Fashion Jewelry
151 Edgemoor Road
Wilmington, DE 19809
Phone: (302) 762-3321
Fax: (302) 762-7417
traci@tracilynnjewelry.com
Mrs. Heather Chastain (2014)
Senior Vice President & Chief Sales
Officer
9400 Jeronimo Road
Irvine, CA 92618-1907
Phone: (949) 770-2610
Fax: (949) 460-1390
hchastain@arbonne.com
68
Ms. Cari Christopher (2015)

President
Signature HomeStyles
3945 Swenson Avenue
St. Charles, IL 60174
Phone: (630) 980-5452
Fax: (847) 980-5453
caric@signaturehomestyles.com
Mrs. Angela Loehr Chrysler (2014)
President & Chief Executive Officer
Team National
8210 West State Road 84
Davie, FL 33324
Phone: (954) 584-2151 ext. 230
Fax: (954) 584-2747
achrysler@bign.com
Mr. Matt Dorny (2013)
Vice President, General Counsel
Nu Skin Enterprises
75 West Center Street
Provo, UT 84601-4432
Phone: (801) 345-1000
Fax: (801) 345-2850
madorny@nuskin.com
Ms. Joan Hartel Cabral (2015)
President & Owner
Vantel Pearls in the Oyster
65 Green Street
Foxboro, MA 02035-2865
Phone: (508) 698-2220
Fax: (508) 698-3964
joan@vantelpearls.com
Mr. Timothy A. Horner (2013)
President
Premier Designs, Inc.
1551 Corporate Drive
Irving, TX 75038-2404
Phone: (972) 550-0955 ext. 1027
Fax: (972) 714-0817
thorner@premierdesigns.com
Mr. Richard Jutkins (2015)
President
Stampin Up!
12907 South 3600 West
Riverton, UT 84065-6972
Phone: (801) 257-5400
Fax: (801) 257-5401
rjutkins@stampinup.com
Mr. Friedrich Kroos (2015)

JAFRA Cosmetics International, Inc.
2451 Townsgate Road
Westlake Village, CA 91361-2506
Phone: (805) 449-3045
Fax: (805) 449-3270
friedrich_kroos@jafra.com
Mr. Mike Nichols (2013)

President, Business Operations
The Kirby Company
1920 West 114 Street
Cleveland, OH 44102-2391
Phone: (216) 529-6240
Fax: (216) 228-9231
mnichols@kirbywhq.com
Mr. Richard H. Wright (2014)

AdvoCare International, LP
2801 Summit Avenue
Plano, TX 75074
Phone: (972) 665-5880
Fax: (972) 665-5226
rwright@advocare.com
Mr. Michael L. Lunceford (2013)*

Senior Vice President, Government
Relations
Mary Kay Inc.
16251 Dallas Parkway
Addison, TX 75001
Phone: (972) 687-5734
Fax: (972) 687-1613
michael.lunceford@mkcorp.com
Ms. Joani M. Nielson (2014)

Founding Partner & Chief Operating
Officer
Tastefully Simple, Inc.
1920 Turning Leaf Lane, SW
Alexandria, MN 56308-4505
Phone: (320) 763-1521
Fax: (320) 763-1589
joani.nielson@tastefullysimple.com
Mr. Richard Makover (2015)

Vice President, US Sales
Development & Operations
Avon Products, Inc.
777 3rd Avenue
7th Floor
New York, NY 10017
Phone: (212) 282-7992
Fax: (646) 829-1024
richard.makover@avon.com
Mr. John P. Parker (2013)

Chief Sales Officer
Amway
77-3G
Ada, MI 49355-0001
Phone: (616) 787-4623
Fax: (616) 787-5624
john.parker@amway.com
Counsel
Ms. Deborah T. Ashford
General Counsel, Direct Selling
Association & DSEF
Hogan Lovells US LLP
555 13th Street, NW
Columbia Square
Washington, DC 20004-1109
Phone: (202) 637-8646
Fax: (202) 637-5910
deborah.ashford@hoganlovells.com
Mr. David R. Merriman (2013)

Global Executive Vice President
ACN, Inc.
1000 Progress Place
Concord, NC 28025
Phone: (704) 260-3336
Fax: (704) 260-3640
dmerrima@acninc.com
Ms. Cindy Monroe (2015)
Founder & Chief Executive Officer
Thirty-One Gifts
231 Commerce Boulevard
Johnstown, OH 43031
Phone: (740) 966-3800
Fax: (740) 967-9906
cindy@thirtyonegifts.com
Ms. Kay Napier (2013)
9400 Jeronimo Road
Irvine, CA 92618-1907
Phone: (949) 460-1223
Fax: (949) 460-1073
knapier@arbonne.com
Mr. Peter W. Schneider, Esq. (2015)

General Counsel
Primerica, Inc.
3120 Breckenridge Boulevard
Duluth, GA 30099-0001
Phone: (770) 381-1000
Fax: (770) 564-6126
peter.schneider@primerica.com
Ms. Connie Tang (2013)
Princess House, Inc.
470 Myles Standish Boulevard
Taunton, MA 02780-7324
Phone: (508) 880-1371
Fax: (508) 880-1323
ctang@princesshouse.com
Mr. David A. Wentz (2014)
USANA Health Sciences, Inc.
3838 West Parkway Boulevard
Salt Lake City, UT 84120-6336
Phone: (801) 954-7701
Fax: (801) 956-9488
dave.wentz@us.usana.com
69

Mr. Orville Thompson
Scentsy, Inc.
2701 East Pine Street
Meridian, ID 83642
Phone: (208) 855-0617 ext. 5599
Fax: (208) 888-4306
orville@scentsy.com
Awards Committee
Ms. Lori Bush
President & General Manager
Rodan + Fields Dermatologists
111 Maiden Lane
Suite 400
San Francisco, CA 94108
Phone: (415) 273-8005
Fax: (415) 273-8036
lbush@rodanandfields.com
Mr. Scott Monroe
Chief Brand Officer
Thirty-One Gifts
3425 Morse Crossing
Columbus, OH 43219
Phone: (614) 414-4300
Fax: (740) 967-9910
scott@thirtyonegifts.com
Education Committee
Ms. Pam Dean
Avalla
433 Northpark Central
Houston, TX 77073
Phone: (713) 300-3022
Fax: (713) 300-1860
pam.dean@avalla.com

Mr. Bryan Harrison
Corporate Government Affairs
Amway
Ada, MI 49355-5875
Phone: (616) 787-5633
Fax: (616) 787-5624
bryan.harrison@amway.com

Ms. Michelle Jones
Executive Vice President
Take Shape for Life, Inc.-Medifast
11445 Cronhill Drive
Owings Mills, MD 21117
Phone: (443) 379-5085
Fax: (410) 581-2137
mjones@tsfl.com
Ethics and Self-Regulation

Committee
Ms. Laura M. Beitler
Vice President & Associate General
Counsel
Mary Kay Inc.
PO Box 799045
Dallas, TX 75379-9045
Phone: (972) 687-5771
Fax: (972) 687-1604
laura.beitler@mkcorp.com

Ms. JJ LeBlanc
SI Analyst
Mary Kay Inc.
16251 Dallas Parkway
Addison, TX 75001
Phone: (972) 687-5358
Fax: (972) 687-1607
jj.leblanc@mkcorp.com
Mr. Jerry Kelly
Chairman
Silpada Designs
11550 Renner Boulevard
Lenexa, KS 66219-9600
Phone: (913) 851-7757 ext. 1001
Fax: (913) 851-3541
jerry.kelly@silpada.com
Mr. John Venardos
Senior Vice President, Worldwide
Regulatory, Government &
Industry Affairs
Herbalife
990 West 190th Street
Suite 650
Torrance, CA 90502
Phone: (310) 851-2346
Fax: (310) 767-3316
johnv@herbalife.com

Ms. Marjorie L. Fine
Executive Vice President &
General Counsel
Shaklee Corporation
Hacienda Campus
4747 Willow Road
Pleasanton, CA 94588-2740
Phone: (925) 924-2586
Fax: (925) 924-2155
mfine@shaklee.com
Lawyers Council
Ms. Renee Cogdell Lewis
General Counsel
lia sophia
1235 North Mittel Boulevard
Wood Dale, IL 60191
Phone: (630) 860-3323 ext. 1027
Fax: (630) 860-7204
reneel@liasophia.com

Mr. Edward A. Dion, Jr.
President
E.A. Dion, Inc.
33 Franklin McKay Road
PO Box 2098
Attleboro, MA 02703-4625
Phone: (800) 445-1007 ext. 115
Fax: (508) 222-8418
ted@eadion.com
Executive Committee
Mr. Brett R. Chapman
General Counsel
Herbalife
800 West Olympic Boulevard
Suite 406
Los Angeles, CA 90015
Phone: (213) 745-0484
Fax: (213) 765-9808
brettc@herbalife.com
Finance Committee
Mr. William R. Dangl
DirectorPortfolio Financial Support
Amway
77-3G
Ada, MI 49355-0001
Phone: (616) 787-6374
Fax: (616) 787-1949
bill.dangl@amway.com
70

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Direct Selling Association 0912 Boardbook

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AGENDA DSA BOARD OF DIRECTORS

Gaylord National Hotel and Convention Center, National Harbor, Md.

Chairmans Goals & Vision

Announcement and Appointment of

Code Administrators Report

Direct Selling Education Foundation

Committee and Council Reports

Annual Meeting Committee

Strategic Planning Committee

*May Require Board Action

Mr. Orville Thompson (Scentsy, Inc.)

Ms. Jennifer Dunleavey (Director, Finance & Operations)

Direct Selling Education Foundation

Ethics and Self-Regulation Committee

Action Items for the Board

Accomplishments/Future Activities Planned/FYI since June 2012

The income statement through July 31, 2012, is attached.

Direct Selling Association

LIABILITIES AND NET ASSETS

TOTAL LIABILITIES AND NET ASSETS

See Accountant's Compilation Report

Direct Selling Association

-------------------------- -------------------------- -------------------------- -------------------------- --------------------------

Change in Net Assets from Operations

Realized gain/(loss) on Investments

-------------------------- -------------------------- -------------------------- -------------------------- --------------------------

Change in Unrestricted Net Assets

Change in Net Assets

=============== =============== =============== =============== ===============

See Accountant's Compilation Report

Dropped, unpaid dues

Dropped, unpaid dues

Dropped, decided not to renew at this time

Dropped, decided not to renew

Dropped, out of business

Dropped, unpaid dues

Dropped, unpaid dues

Dropped, not pursuing direct selling

Dropped, unpaid dues

Dropped, unpaid dues

Dropped, unpaid dues

Global Associate Members

Direct Selling Association

Jusuru International, Inc.

Year company founded

Publicly or privately held

Name of individual owner(s) Asma Ishaq

Chief Executive Officer

1. Asma Ishaq, President

Jusuru International is a values-driven company, committed to delivering the most advanced

Direct Selling Association

Art/Framing, Hope Accessories/Dcor

Year company founded

Publicly or privately held

Name of individual owner(s) Kristin Melton and Katy Cohen

Chief Executive Officer

1. Katy Cohen, Co-Owner

Direct Selling Association

Stream Gas & Electric, Ltd. DBA Stream Energy

Electricity and Natural Gas

Year company founded

Publicly or privately held

Name of individual owner(s) Stream Gas & Electric, Ltd.

Chief Executive Officer