Typical Network Marketing Growth Patterns

(Like Mary Kay, Discovery Toys, or Tupperware.)

According to Richard Poe, author of Wave 3: The New Era in Network Marketing, there are four distinct growth phase that typically occur in successful network marketing companies.

  1. Formulation:This is the first two years when start-up is
    happening. Ninety percent of network marketing companies fail during this period.
  2. Concentration: At this stage the company enjoys $3-$50 million in annual sales. This is the “growing pains” stage, when the company has to
    adapt to rapid growth and change in order to service its swelling customer
    base and sales force.
  3. Momentum: This is when the company’s annual sales explode as geometric growth kicks in. Typically, sales jump from about $50 million to $500 million annually in about five years. At this stage, the
    product becomes a household word, sales people rush to join the company and make very good money. Those who were fully established in the company at the onset of the momentum can make fortunes overnight.
  4. Stability: Now the company continues to grow, though less
    spectacularly. The product line is often diversified to try to create a new wave of momentum.

“…the phase with the most rapid growth is the momentum phase – which occurs after the company has exceeded $50 million in sales. This is the moment when exponential growth kicks in,when fortunes can be
made by those lucky few who got into the company before it went into momentum.”

-Richard Poe, Wave 3: The New Era in Network Marketing

Usborne Books is Now Approaching The Onset of Momentum

UBAM started in 1989 in the United States. In 1992, there were only 320 consultants. UBAM currently has approximately 8,000 active consultants, 265 supervisors &
21 Executive Supervisors and 8 Directors.

July 1993Publishers Weekly quoted “According to
EDC’s annual report, the fastest growing segment at EDC last year
was the home party plan division which saw sales increase 99%…”

September 1993Special Investment Situations quotes “The Home Party Plan Division doubled revenues during FY93… makes EDC the only multilevel direct selling company in the U.S. to offer primarily nonfiction educational books for children & has received enthusiastic response in all fifty states.”

February 1994OTC Growth Stock Watch:Net sales for the Home Business Division were 95% over the same period last yr. This division continues to add new consultants as the popularity of selling books in the home increases.”

February 1995Tulsa World: “Through at home
demonstrations, representatives should generate $3.5 million in sales for ‘94, more than doubling the previous year’s $1.3 million. …The Home Party Plan is the fastest growing of the company’s 3 divisions. …is far from reaching market saturation… The financial incentive can be substantial for those who hustle. Last month 3 of the company’s at home marketers were paid more than $5,000 for their efforts…

August 1995Tulsa World – Top 25 Investment Guide: “Finger sandwiches and coffee aren’t the key to Educational Development Corp.’s success. The key is the book-selling parties in which the refreshments are served. EDC’s multilevel marketing division is growing 180% a year “

November 1995Forbes – The Best Small Companies in
America:
EDC was recognized as one of the best!

January 1996Investors Business Daily: “Randall
White’s company is hardly a household name. But a lot of parents in a lot of households have reason to be pleased with White and his firm, Educational Development Corp.. EDC has tapped a market of parents eager to see their children’s talents and interests blossom from behind books rather than in front of TV & video game screens. Earnings …have surged in each of the last 3 yrs.

May 1996Business Week, Hot Growth Companies – The 100 Best Small Corporations: EDC was listed.

August 1996Tulsa World – Top 25 Investment Guide: EDC was listed as #3. “The company continues to grow at a 50% compounded rate and increase its multi-level sales force…[and] volume …”

September/October 1997Wealth Building Magazine – 142 Proven Direct Sales Firm: “This list represents some of the most solid companies in this fast growing – and stable – industry.”

November 1997Forbes – The 200 Best Small Companies in America: EDC was listed for the 2nd time!

February 2001UBAH Newsletter as reported by Randall White, CEO: “…UBAH sales were up 19% for the quarter ended November 30, 2000 and up 29% for December 2000 compared to last Dec.”

May 7, 2003Yahoo Finance – Educational Development Corporation (NASDAQ: EDUC) reported today that net sales for the month of April 2003 were $2.6 million, the largest April in the Company’s history. The Home Business Division has recorded sales increases every month since July 2001, a string of 34 consecutive months.

July 2003
Fortune
Magazine
– EDC, our Home Office with the U.S. marketing
rights for Usborne Books, is ranked #48 in the Top 100 of America’s
Fastest Growing Small Companies

Usborne Opportunity Comparison

Company

Year Started

Annual Sales in ’02

Size of Sales Force in ‘02

Tupperware 50+ years old $268.4
million
136,000
active sales people in the U.S.A.
Mary Kay 1963 1.2 billion

950,000
reps in U.S.

13,000 Sales Directors

170 Nat’l Directors

Pampered Chef 1980 $740+ million 71,000+
Partylite Gifts 1973 mid 80’s peaked at 4 million, 88 dipped 25%

33,000+
in U.S.

over 100 Reg. Vice Presidents

Educational Development Corporation Announced Record Third Quarter Fiscal 2010 Results

EDUC reported record sales and earnings for the quarter ended November 30, 2009 with net revenue of $10,016,400 compared to $9,388,200 and net earnings of $925,100 compared to $649,500 for the same period last year.

Usborne Books at Home is a basement-level opportunity.

Compared with other older, larger companies, we’ve only
just begun.

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