Jan/Feb 2023 Direct Selling News

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DSN DIRECT SELLING NEWS VOLUME 19 / ISSUE 1 JANUARY/FEBRUARY 2023 MAKE YOURSELF MORE MARKETABLE / THE SKILLS EVERY EXEC NEEDS FIGHTING FIELD FATIGUE / KEEP YOUR FIELD ENGAGED AND IN TOUCH WIN THE LOYALTY GAME / DTC STRATEGIES THAT WORK NU SKIN / TRANSFORMATION THROUGH DISRUPTION HOW SOME OF THE SMARTEST COMPANIES IN THE CHANNEL STAY NIMBLE, FRESH AND RELEVANT. PAVING THEIR OWN WAY

The Best of Both Worlds

With the acquisition of DirectScale, we strengthened our position as the global leader in retention, data, incentive, and commission management solutions for the Direct Selling industry. Contact us today to boost your company revenue in 2023.

To find out more visit www.exigo.com/contact

Power ful. Elegant . Proven. Direct Selling Technology / 214.367.9933 / Exigo.com

The DSN Global Celebration has become one of DSN’s signature events, and it’s where the much-anticipated Global 100 List is unveiled each year along with several awards recognizing outstanding achievements of the channel’s elite companies and executives. The Oscars of Direct Selling! THE INDUSTRY AWARDS EVENT OF THE YEAR JOIN US FOR 14TH ANNUAL DSN GLOBAL CELEBRATION TUESDAY, APRIL 18, 2023 TO ATTEND IN PERSON VISIT DSU2023.COM OR SCAN THE CODE

HOSTS

Tuesday, April 18, 2023

Omni Frisco Hotel / Frisco, TX

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In-Person attendance is reserved for active corporate executives and event sponsors, requires registration and takes place at the Omni Frisco Hotel in Frisco, Texas. Tickets are $149 per person for the in-person event. DSN Supporters and event sponsors receive complimentary access.

The live stream is free and open to everyone, including your field, and will be available on directsellingnews.com. Join us for the unveiling of the Global 100 List and several more awards and recognition.

Additional awards and recognition include:

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F AST er Way to Fat Loss
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KODY BATEMAN FOUNDER & CHIEF VISIONARY OFFICER Promptings
6 DIRECT SELLING NEWS | JANUARY / FEBRUARY 2023 CONTENTS JANUARY / FEBRUARY 2023 92 56 IN EVERY ISSUE 8 AD INDEX // 11 FROM THE PUBLISHER // 13 INDUSTRY NEWS // 32 THE DSN GUIDE // 40 FORWARD THINKING // 111 DSA MESSAGE // 112 SUPPLIER DIRECTORY // 56 FEATURES Top Skills Every DS Executive Needs
Leveraging the Gig Economy
Fighting Field Fatigue
Winning the Loyalty Game
Nu Skin Transformation through Disruption
98 78 DEPARTMENTS FOR YOU / FOR YOUR FIELD / Your Essential Monthly Motivation
ICONIC INSIGHTS / Cindy Monroe: About the Power of Community
SMART / The Importance of Site Visits
SMART / Four Easy Ways to Engage & Inform
92 48 88 80 106 102
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DSN DIRECT SELLING NEWS FOUNDER AND CEO Stuart P. Johnson CHIEF BRAND OFFICER Shelley Rojas PUBLISHER Patricia White STRATEGIC ADVISOR Heather Chastain EDITOR Lisa Robertson editor@directsellingnews.com NEWS EDITOR Sarah Paulk pr@directsellingnews.com CREATIVE DIRECTOR Susan Douglass ART DIRECTORS Greg Luther Jenny Paredes PRODUCTION MANAGER Virginia Le PRODUCTION ARTIST Megan Knoebel Ascencio COPY EDITOR Peter Tepp BUSINESS DEVELOPMENT MANAGER Jerilyn Taylor advertising@directsellingnews.com PROGRAMS AND SUBSCRIPTION MANAGER Nancy Ratcliff support@directsellingnews.com CONTENT CONTRIBUTORS Paul Adams Cindy Monroe Heather Chastain Hannah Sigari Philip Cochrane Amanda Tress John Fleming Ian Wisbey Gordon Hester Patrick Wright CONTRIBUTORS Beth Douglass Silcox Sarah Paulk Paula Felps Lisa Robertson Chelsea Hughes Jenny Vetter David Lee TO ADVERTISE: advertising@directsellingnews.com TO SUBMIT EDITORIAL COMMENT: editor@directsellingnews.com TO SUBMIT PRESS RELEASES: pr@directsellingnews.com TO SUBSCRIBE: subscribe@directsellingnews.com DIRECT SELLING NEWS USPS 23713 • ISSN 15546470 Serving the Direct Selling and Network Marketing Executive Since 2004 A Direct Selling Partners Company DSN DIRECT SELLING NEWS COVER STORY PAVING THEIR OWN WAY How some of the smartest companies in the channel stay nimble, fresh and relevant.
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There is POWER in Partnership >

What

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ELEGATING time-intensive business functions to highly skilled suppliers provides the breathing room to focus on unique skill gaps, like training team members on best practices, getting up to speed with new technology or customer service response that many organizations overlook.

For your convenience, we have compiled a list of our display advertisers. When contacting these companies or those in our Supplier Directory (starting on page 112), please let all of our valued advertisers know that you saw them in DSN.

Through my decades of experience

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8 DIRECT SELLING NEWS | JANUARY / FEBRUARY 2023
part of your business would benefit by bringing in a supplier to help your team be more efficient? “

Exigo 214-367-9933 / EXIGO.COM INSIDE FRONT COVER

Metrics Global 702-757-9600 / METRICSGLOBAL.COM PAGE 23

Kelley Drye 212-808-7800 / KELLEYDRYE.COM PAGE 35

Momentum Factor 512.690.2134 / MOMOFACTOR.COM PAGE 1

Direct Scale 801-701-3285 / DIRECTSCALE.COM PAGE 25

NOW TECH 310-428-9936 / NOW-TECH.COM PAGES 10, 55, 116

Squire 801-225-6900 / SQUIRE.COM/NETSUITE PAGE 63

Thatcher Technology Group 630-696-4545 / THATCHERTECH.COM PAGE 29

Direct Selling Association 202-452-8866 / DSA.ORG PAGE 110

Katapult 407-915-9060 / KATAPULTEVENTS.COM PAGE 18

The RESULTS Center 817-430-9422 / INFO@TONYJEARY.COM PAGE 31

Nexio 877-551-5504 / NEXIOHUB.COM INSIDE BACK COVER

Flight Commerce 813-277-0625 / FLIGHTCOMMERCE.COM PAGE 19

Lawrence B. Steinberg 213-891-5610 / WWW.BUCHALTER.COM PAGE 34

Infotrax 801-431-4900 / INFOTRAXSYS.COM BACK COVER

Integrishield 885-429-1131 / INTEGRISHIELD.COM PAGE 21

Winston & Strawn LLP JSANDERS@WINSTON.COM / KEASH@WINSTON.COM PAGE 34

Learn More

New year. New voices. New ideas.

WELCOME TO 2023! One of my resolutions this year is to continue DSN’s mission of bringing you the news, trends and solutions you need to always stay informed and one step ahead. I hope you find this issue to be a great example of that!

We’ve expanded this edition into a Jan/Feb combination, so that we could bring you more coverage surrounding this month’s theme: the challenges and opportunities facing the channel. Last month we took a look back at 2022 and offered some predictions about what we think will be shaping the channel in the year to come. This month, we take the next step, bringing you new perspectives and wisdom from four executives at four companies we feel are finding big wins in a tough business environment. Read about and be inspired by AdvoCare, FASTer Way to Fat Loss, PM-International and newcomer to the channel Qyral.

This month also marks the debut of a new feature in each issue of DSN called The Guide (see page 32). In it, we provide a curated essential reference list of vendors and suppliers servicing the direct selling industry. Look for The Guide in each issue to find the perfect partner for all your new initiatives.

In this issue, we have reached out to experts to bring insights to you and your companies. Many people look to update

their résumé or look for their next career move at the beginning of the year; our feature, The Top Skills Every Direct Selling Executive Needs, offers great advice from recruiters on how to best market yourself for today’s direct selling landscape. Learn from DSN Legend John Fleming, on Leveraging the Gig Economy. We also have insights from the relevant and revelatory Paul Adams on keeping your field motivated and successful in Fighting Field Fatigue. There is an amazing company feature on Nu Skin—a company known for its innovation, perseverance and forwardthinking culture.

DSN remains your daily resource for global news impacting the direct selling channel. Sign up for the weekly dashboard email which delivers a week’s worth of news in a quick 15-minute read each Sunday. You can also sign up for free VIP Text Alerts, where you’ll always get the channel’s top stories first and fast. And we invite you to attend the Spring in-person events in April. The Annual Global Celebration & Awards is on April 18, and DSU April 19 and 20, in Frisco, Texas. Register and learn more at DSU2023.com.

All the best,

| Publisher |
@directsellingnews @DSNUpdate Follow our LinkedIn Page Text us 1+ (214) 239-3043 / FROM THE PUBLISHER / directsellingnews.com 11 PREMIER SUPPLIER PARTNERS: THANK YOU PLATINUM SUPPORTERS: PREMIER SUPPLIER PARTNER 2023
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DSN SHARES A COMMON GOAL WITH THE SUPPLIER COMMUNITY—to serve and support the growth and evolution of direct selling companies. Our mission is to serve, educate and edify the channel with daily breaking global news, emerging trends and powerful stories, made possible through the generosity and support of our Premier Supplier Partners. Thank you for your dedication to the direct
channel!
The Month in News Affecting Our Channel 14 / Anniversaries 16 / Expansions 19 / Top 5 News Watch 20 / Insights 26 / Executive Announcements 32 / DSN Guide 36 / CCR Program / INDUSTRY NEWS /
14 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 2023 will be a milestone year for many direct selling companies! Congratulations and thank you for so many years of excellence and innovation in the channel—we can’t wait to see what you’ll do next! Happy Anniversary!
directsellingnews.com 15 VORWERK MARY KAY BELCORP L'BEL ALOETTE COSMETICS FOREVER LIVING PRODUCTS HINODE RELIV INTERNATIONAL STAMPIN' UP ACN CAPTIAN TORTUE JIMON MANNATECH PM-INTERNATIONAL YOUNG LIVING ESSENTIAL OILS ADVOCARE PURE ROMANCE 4LIFE RESEARCH BEMER QNET L'BRI PURE N NATURAL 140 60 55 55 45 45 35 35 35 30 30 30 30 30 30 30 30 25 25 25 25 LIFEVANTAGE LYONESS RESGREEN INTERNATIONAL STELLA & DOT THE LIMU COMPANY ESSENTIAL BODYWEAR THIRTY-ONE CHEWS-4-HEALTH, INC. DOTERRA NORLAND NUX GROUP ORGANO GOLD ZILIS ZURVITA AZULI SKYE PLEXUS BEAUTYCOUNTER JUICEFRESH SEINT TRANONT 20 20 20 20 20 20 20 15 15 15 15 15 15 15 15 15 10 10 10 10 COMPANY YRS COMPANY YRS

RECENT EXPANSIONS

FARMASI LAUNCHES IN THE DOMINICAN REPUBLIC

Farmasi announced its grand opening in the Dominican Republic, debuting a marketspecific website—farmasi.do—as well as dedicated social media pages on Facebook, Instagram and YouTube.

The company pointed to the market expansion as an important part of its strategic development of brand awareness throughout the Americas.

Farmasi is now sold in 33 countries worldwide.

DOMINICAN REPUBLIC

16 DIRECT SELLING NEWS | JANUARY / FEBRUARY 2023
/ INDUSTRY NEWS / EXPANSIONS

EXP REALTY LAUNCHES IN POLAND

eXp Realty, a subsidiary of eXp World Holdings, announced the launch of its operations in Poland. With this expansion, the company now operates in 23 markets with more than 86,000 agents around the world.

Dorota Chomuntowska will lead the company’s brokerage operations in Poland.

“Poland’s rapid growth and continued resilience in the real estate market along with its rich and multi-cultural history, speaks to the attractiveness of its property sector for both foreign and domestic investments and strategically complements our existing European presence,” said Michael Valdes, Chief Growth Officer. “We are changing the way real estate is done around the world and are excited to empower agents in Poland with our unique model built for success.”

AVON PRODUCTS INC. TO RELOCATE

R&D OPERATIONS TO BRAZIL AND POLAND

Avon Products Inc., part of the Natura &Co. family, will be closing its Research & Development operations in Suffern, New York.

In its place, the company will be establishing R&D processes in Brazil and Poland as part of its strategy to deliver seamless supply chain capabilities for its Natura in Brazil operations and connect with key markets where representatives and consumers already reside.

“For 136 years, breakthrough innovation has been at the core of the Avon brand with our proprietary technology and award winning, affordable beauty products,” said Angela Cretu, Avon Chief Executive Officer. “We believe this evolution of our R&D operations will give us access to a wider ecosystem of partners to drive our innovation pipeline. We’re incredibly proud of our Suffern team and grateful for the strong innovation foundation that we will build on.”

directsellingnews.com 17
BRAZIL POLAND POLAND
HAPPY NEW YEAR Erik Johnson | Partner & President | erik@katapultevents.com CALL NOW: 407-915-9060 | KATAPULTEVENTS.COM Give us a call today DON’T LET THE BALL DROP ON YOUR 2023 EVENTS JOIN OUR GROWING LIST OF PARTNERS IN DIRECT SALES: HAPPY NEW YEAR Erik Johnson | Partner & President | erik@katapultevents.com CALL NOW: 407-915-9060 | KATAPULTEVENTS.COM Give us a call today DON’T LET THE BALL DROP ON YOUR 2023 EVENTS JOIN OUR GROWING LIST OF PARTNERS IN DIRECT SALES:
directsellingnews.com 19 n USANA Acquires Oola and Rise Bar n Avon Brings Augmented Reality to Makeup Shopping Experience n Natura &Co Posts $1.69 Billion in Q3 2022 Net Revenue n Coway Builds Solar Power Plant in South Korea n Telecom Plus Sees 51.5 % Revenue Jump HEADLINES > 5

INSIGHTS

For the full articles, visit directsellingnews.com/ category/news/

TikTok Quietly Launches TikTok Shop in U.S.

TIKTOK SHOP, TIKTOK’S eCOMMERCE PLATFORM, is now live in the US for a select group of companies. A soft launch, TikTok Shop isn’t rolling out widely just yet. The company has opened its application process to business owners interested in selling on the app, but is currently only available to merchant corporations with a special “invite-only” access code. Companies who are accepted will pay a 5 percent commission on every sale.

This launch comes on the heels of a restructuring of the company’s US operations, in what some analysts believe is a move to drive more revenue from gaming and live shopping and lessen its dependence on advertising.

Even though TikTok is one of the fastest growing social media apps in the US, with 94 million users, the future of social media eCommerce shopping in the US is still uncertain. TikTok Shop is already available in the UK and parts of Asia, but fell flat in Europe after it failed to meet expected targets, saw poor sales and was dropped by important influencers. In a statement, an unnamed TikTok employee attributed the live shopping service’s poor performance to a market that “just isn’t there yet” and described general consumer awareness and adoption as “low and nascent.” DSN

20 DIRECT SELLING NEWS | JANUARY / FEBRUARY 2023
/ INDUSTRY NEWS / INSIGHTS
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FTC Expands its Scope of “Unfair Methods of Competition”

THE FEDERAL TRADE COMMISSION (FTC) released a new Policy Statement that widens what the commission considers “unfair methods of competition” under Section 5 of the FTC Act. This new statement is intended to increase enforcement of policing unfair practices, but some legal analysts see it as a way for the commission to decide on what constitutes “unfair” regardless of whether the conduct violates the Sherman and Clayton Acts (antitrust laws).

The new Policy Statement said unfair conduct would be weighed according to a sliding scale and established what the FTC now considers “unfair methods of competition,” saying:

n The conduct must be a method of competition that seeks to gain advantage while avoiding competing on the merits and reduces competition in the market.

n The conduct may be coercive, exploitative, collusive, abusive, deceptive, predatory or involve the use of economic power of a similar nature.

n The conduct must tend to negatively affect competitive conditions by reducing competition between rivals, limiting choice or harming consumers.

In a statement, the FTC described previous policies as restricting its oversight to a narrower set of circumstances, “making it harder for the agency to challenge the full array of anticompetitive behavior in the market.” This new expansion will allow the agency to exercise its “full statutory authority” against companies the FTC deems to be in violation.

The Policy Statement was issued on a 3-1 vote of the commissioners. Dissenting commissioner Christine Wilson criticized the policy as too broad in its reach. DSN

22 DIRECT SELLING NEWS | JANUARY / FEBRUARY 2023 / INDUSTRY NEWS / INSIGHTS

Joni Rogers-Kante credits her commitment to consistency, devotion to family, and abiding faith to achieving success as a business and family woman. Joni has paved a path toward a life of abundance, and she devotes her life to empower others to find theirs, too.

For Joni, her company Senegence stands for more than its cutting-edge and highly desirable beauty products. Its causedriven purpose is to promote more women

in business and care for communities in need through its nonprofit. Not only has

Joni built a rewarding global business, she is also changing lives closer to home.

Joni passionately protects rights of independent entrepreneurs in the direct selling industry and works to improve the economic lifeblood in her home state of Oklahoma.

Joni believes accomplishment is unique for everyone, and we are all here with

our own important purpose. She says a fulfilling life is made with the four E’s: Earn, Evaluate, Evolve, and Explore. When we value and respect each other, we will all move forward together.

We are proud to partner with Joni and those like her who consistently prove that hard work and courage are rewarded with limitless possibilities. After all, people are our greatest strength.

Las Vegas Salt Lake City Singapore Dublin Mexico City JONI ROGERS-KANTE SENEGENCE REAL PEOPLE. REAL STORIES.

Is Your Company Doing Enough to Support Employees?

EMPLOYEES

ARE WORKING IN UNSETTLING

TIMES. Inflation is outpacing wage increases and the cost of living is skyrocketing. Financial insecurity is now a real concern for all generations as Gen Z strives to fund the basics of the American Dream— like owning a home and accumulating savings—and Baby Boomers see their retirement savings dwindle. This concern isn’t just about compensation, although the data indicates that wages are an important factor for employee retention. A new study by Talent LMS and Tapcheck looked into financial programs in the workplace and revealed that employees are also hungry for financial advice, guidance and resources to help them navigate the rising cost of living, finding that 78 percent of employees say they want support from their employers when it comes to financial well-being.

A meager 5 percent of employees believe they have met their financial goals, and the other 95 percent point to inflation (62 percent) and insufficient income (48 percent) as the barriers holding them back. Financial wellness training, which survey respondents described as retirement planning, investment programs and emergency savings, not only improved employee satisfaction, a majority (68 percent) of employees said they would also be more likely to stay longer in their current role if these benefits were offered.

Money and the education surrounding its use deeply impact employees. Across generations, money-related issues were the driving factor in mental health struggles for respondents, with Millennials being hit hardest at 66 percent. DSN

24 DIRECT SELLING NEWS | JANUARY / FEBRUARY 2023 / INDUSTRY NEWS / INSIGHTS

SO THIS JUST HAPPENED

The direct-selling software game has changed forever.

DirectScale is now an Exigo company, and we’re just getting started. We enthusiastically add our leadership, products, and clients to Exigo and solidify our joint position as the global leader in retention, data, incentive, and commission management solutions for the Direct Selling industry.

Our current and future clients will be expertly supported on their journey to realize their business goals and revenue potential like never before.

Scan, text or click today to see how we will help you run, know and grow your business in 2022 and beyond.

Text: (435) 222-2558 | directscale.com/DSN

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

For the full articles, visit directsellingnews.com/ category/news/

EXECUTIVE ANNOUNCEMENTS

LegalShield announced that Warren Schlichting has been named Chief Executive Officer by the company’s board of directors. Schlichting is a Harvard University graduate and former President of Sling TV.

At LegalShield, Schlichting will work to expand the company’s financial and operational goals, advance the company’s branding and marketing efforts, and oversee product enhancements, philanthropy, social responsibility and the overall company culture.

“Warren is joining the PPLSI family at such a transformative time,” said Stefan Pepe, LegalShield board member and interim CEO. “His diverse and impressive background makes him the perfect leader to take the organization, products and services to the next level.”

EXp Realty has promoted Leo Pareja to the role of Chief Strategy Officer. Pareja joined eXp Realty in June 2022 as President of Affiliated Services, where he oversaw the company’s products and services, led the launch of a new buyer and seller referral division and guided a refresh of the company’s eXp Solutions platform.

“Leo is a true visionary who has already left a tangible mark on our agent community with new initiatives like Revenos, which has reimagined referrals and lead-generation for eXp Realty,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings. “I am confident that in his new role, Leo will expand eXp Realty’s competitive advantage with new and groundbreaking initiatives.”

Herbalife Nutrition announced the departure of Dr. John Agwunobi, naming current board member and former Chairman and Chief Executive Officer Michael O. Johnson as the company’s Chairman and Interim CEO.

Johnson has more than four decades of experience leading multinational companies, and has been a part of the Herbalife leadership team for almost 20 years.

Herbalife stated it will name a new CEO in 2023.

26 DIRECT SELLING NEWS | JANUARY / FEBRUARY 2023
/ INDUSTRY NEWS / EXECUTIVE ANNOUNCEMENTS
MICHAEL O. JOHNSON CHAIRMAN AND INTERIM CEO / HERBALIFE NUTRITION WARREN LEO

KANNAWAY EXPANDS LEADERSHIP TEAM

Kannaway announced it is expanding its executive leadership team with two strategic hires, appointing Mike Randolph as Executive Vice President and Mike Kolinski as Vice President of Information Technology.

Randolph brings more than three decades of industry experience and will oversee Kannaway’s internal and external communication, customer service and compliance.

“Even if you knew what you were looking for, you could search your entire life and not find a company like Kannaway, with its remarkable founders, captivating story, and its outstanding corporate and field leadership teams,” Randolph said.

Kolinski has 25 years of industry experience and has worked in both sales and customer support roles. In this new role, he will manage backoffice infrastructure for the company, with a heightened focus on sales and commissions systems.

“Expanding a cannabis company throughout the world can be complex,” said a Kannaway representative in a statement. “For that reason, the number one value at our company is clarity. I’m confident that both Mr. Randolph and Mr. Kolinski will help us in our efforts to simplify and make more clear our efforts and message as we push to drive positive global change.”

PROMOTIONS

4Life has promoted Jessica Sorbonne to the role of Vice President of Editorial. Sorbonne joined 4Life in 2018 as a copywriter. In her new role, Sorbonne will oversee a team of copywriters, editors and translators and lead editorial touchpoints.

4Life has promoted Laura Bernier to the role of Vice President of Events. Bernier joined 4Life in 2011, working in the customer service department. In this role, Bernier will manage 4Life incentives and corporate events, IT collaboration with event management and

4Life conventions

They have also announced that Veronica Zavala has been promoted to the role of Vice President of Accounting. Zavala joined the company in 2010 as an accounting assistant in the Quito, Ecuador office.

directsellingnews.com 27
4LIFE ANNOUNCES NEW EXECUTIVE

Betterware de Mexico, which recently acquired JAFRA, announced it has appointed Karalee Mora to the role of Chief Executive Officer of JAFRA USA.

Mora has worked in the direct selling industry and in several senior executive positions for the last 18 years. The company stated that it expects Mora’s leadership will be instrumental in delivering breakeven results by mid-2023 and improved third quarter profitability by 2023.

“Karalee is the right leader for JAFRA USA, given she possesses extensive knowledge of the direct selling industry,” said Luis G. Campos, Executive Chairman of the Board. “We look forward to benefit from her leadership and knowledge, which we expect to position JAFRA USA for strong growth.”

Sisel International has promoted Milo Acosta to the role of Global Sales Director. Acosta joined Sisel six years ago and began working directly with the U.S. and Canada markets. Since then, Acosta has become known within the company as an executive who helps the field and corporate team develop a winning formula that creates record sales.

“We are confident that Milo’s strengths will be instrumental in his new international role, overseeing Sisel’s growing global markets” said Tom Mower Jr., Sisel Co-Founder and President.

“Milo will be executing the strategic plans needed to achieve continued financial growth, sales targets, and what’s most important to him—developing long-lasting distributor and customer relationships.”

Tupperware announced the promotion of Hector Lezama to Chief Commercial Officer. Lezama joined the company in 2020 as Senior Vice President of Expansion and Turnaround Markets.

Lezama is a seasoned executive with experience leading business and brand transformations and guiding American brands into markets within Mexico and Latin America.

In this new role, Lezama will oversee Tupperware’s efforts to achieve sustainable growth and profitability and will be responsible for guiding all of the company’s commercial activities around the world.

28 DIRECT SELLING NEWS | JANUARY / FEBRUARY 2023 / INDUSTRY NEWS / EXECUTIVE ANNOUNCEMENTS

Zrii, LLC announced that Kevin Larson has returned to his previous role of Senior Director of Marketing after working for another direct selling organization. As Senior Director of Marketing, Larson will be responsible for company events, recognition, incentives, public relations and communications.

“I’m excited to be back and working with a brand as powerful and compelling as Zrii,” Larson said. “It’s fantastic to see new Independent Executives and corporate leadership who have joined us because of the great opportunity this company offers. I look forward to furthering Zrii’s platform for prosperity—not only for current Independent Executives, but also for those who have yet to join the Zrii family. I also look forward to seeing everyone at convention.”

Betterware de Mexico has appointed Alejandro Ulloa as the company’s new Chief Financial Officer. Carlos Doormann, who has served as the CFO for the past year, will transition into the role of Corporate Chief Investor Relations and Strategy Projects.

Ulloa has experience working in C-suite level roles for multinational finance companies and holds an MBA from Yale University and an Executive Diploma in Real Estate Management from Harvard University.

“We are pleased to welcome Alejandro Ulloa to the Betterware family as Chief Financial Officer,” said Luis G. Campos, Executive Chairman of the Board. “Alejandro’s significant experience in finance and banking is expected to be highly valuable to Betterware Group, as we execute our operational and financial strategies that we expect to position our company for long-term, profitable growth. I also want to thank Carlos for his contributions as Chief Financial Officer and expect to continue to benefit from his business acumen in his new role.” DSN

30 DIRECT SELLING NEWS | JANUARY / FEBRUARY 2023 / INDUSTRY NEWS / EXECUTIVE ANNOUNCEMENTS

HE CHANNEL IS EVOLVING RAPIDLY—companies and executives must stay ahead of emerging trends and technologies to build for the future. But it can be time - consuming and hard to find the right suppliers to partner with.

That’s why we’ve developed The Guide by DSN. In each issue of DSN, The Guide includes curated lists by category of expertise and service. These suppliers currently serve the channel—they understand the unique challenges and opportunities that come with direct selling and can help you implement your intiatives.

32 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 > / INDUSTRY NEWS / THE GUIDE BY DSN
T
"ANGIE'S LIST" STYLE RESOURCE TO HELP YOU FIND STRATEGIC BUSINESS PARTNERS SPECIALIZING IN DIRECT SELLING. THE GUIDE
2023 ISSUE CATEGORY MARCH BRANDING, MANUFACTURING, PACKAGING APRIL COMMISSION PAYMENT SERVICES MAY DESTINATION AND TRAVEL SOLUTIONS JUNE DISTRIBUTION, FULFILLMENT AND LOGISTICS JULY/AUGUST SOFTWARE, TECHNOLOGY AND SOCIAL MEDIA SOLUTIONS SEPTEMBER EVENT PRODUCTION OCTOBER INCENTIVES AND RECOGNITION NOVEMBER CREDIT CARD AND PAYMENT PROCESSING SOLUTIONS DECEMBER CONSULTING AND EXECUTIVE SEARCH
AN
NEW IN 2023:

LEGAL & TAX

COMPANY

WEBSITE

Buchalter Los Angeles, CA buchalter.com

Foley & Lardner, LLP Dallas, Texas foley.com

Gowling WLG Ottawa, Ontario gowlingwlg.com

Kelley Drye Washington, DC

kelleydrye.com/Our-Practices/ Regulatory-GovernmentRelations/Direct-Sales

Kirton McConkie Salt Lake City, UT kmclaw.com

Millar Kreklewetz, LLP Toronto, Canada taxandtradelaw.com

Reese Poyfair Richards Cottonwood Heights, UT mlmlaw.com

Scheef & Stone, LLP Dallas, Texas solidcounsel.com

Sovos Wilmington, MA sovos.com

Thompson Burton Franklin, TN thompsonburton.com

Winston & Strawn Dallas, Texas winston.com

ADDITIONAL CONTACT INFORMATION

Larry Steinberg 213-891-0700 Lsteinberg@buchalter.com

John E. Villafranco / Donnelly L. McDowell (202) 342-8423 / (202) 342-8645 jvillafranco@kelleydrye.com / dmcdowell@kelleydrye.com

John Sanders / Katrina Eash 214-453-6462 jsanders@winston.com / keash@winston.com

directsellingnews.com 33
Would you like to be included in The Guide by DSN? Contact
for more information. Companies featured in The Guide have been in business for a minimum of two years and are verified to be working with direct selling companies. Companies appearing in The Guide are not endorsed by DSN. The Guide is provided strictly as a resource. It is each company's responsibility to verify and investigate providers and services. DSN DIRECT SELLING NEWS
Jerilyn Taylor (jtaylor@directsellingnews.com)
{ } THIS ISSUE’S FEATURED CATEGORY
34 DIRECT SELLING NEWS | JANUARY / FEBRUARY 2023 Winston & Straw n LLP is proud to support DSN Winston Partners John Sanders and Katrina Eash’s practice focuses on representing direct sales organizations in a wide range of disputes and consulting matters. PA R TNE R Dallas jsanders@winston com K ATRINA G . E A S H PA R TNE R Dallas keash@winston com
directsellingnews.com 35 > The DSN GUIDE Connects Your Business with Direct Selling Companies Today’s direct selling executives look to THE GUIDE to find the right partner for their projects. Whether you offer incentives, event production, payment processing or logistic services, make sure the top companies in the channel know who you are, what you do and how you can help them! LET'S TALK! To find out how your company can appear in The Guide, contact Jerilyn Taylor at jtaylor@directsellingnews.com.

The CCR Program is based solely on a company’s customer-to-distributor ratio taking into consideration the following definitions:

n Distributor—someone who DOES have a distributor agreement in place

n Customer—someone who DOES NOT have a distributor agreement in place

n Active is defined as each customer and distributor must have made a product purchase during the last six months. Active customer and distributor counts are limited to those in the U.S. and Canada.

Companies must have been in business for at least one year and have a minimum of $5 million in annual revenue. Qualifying companies must attain: 5:1 up to 10:1 for Gold status and 10:1 or more for Platinum status.

BE CUSTOMERCENTRIC RECOGNIZED.

DSN’s Customer-Centric Recognition (CCR) Program celebrates companies that are leading the way toward a customer-centric future for the industry. Qualifying companies utilize business models that boast high customer-to-distributor ratios and prioritize customer sales.

Companies who wish to learn more or submit a CCR Program Application can go to www.directsellingnews.com/ccr/ or contact editor@directsellingnews.com

36 DIRECT SELLING NEWS | JANUARY / FEBRUARY 2023 / INDUSTRY NEWS / CUSTOMER-CENTRIC RECOGNITION
DSN DIRECT SELLING NEWS CCR GOLD C USTO M E R - C E NTRI C R E C O G N I Z E D CCR PLA TINUM C USTO M E R - C E NTRI C R E C O G N I Z E D
directsellingnews.com 37
D
order to
ACN IT WORKS! LE-VEL NU SKIN PRÜVIT SCENTSY USBORNE BOOKS GOLD / 5:1 up to 10:1 PLATINUM / 10:1 and above MONAT GLOBAL PERFECTLY POSH
IRECT SELLING COMPANIES with a strong retail base of satisfied customers are experiencing impressive growth and deserve recognition and acknowledgment for their efforts. With evolving consumer expectations and regulatory scrutiny, customer- centric equals success for everyone—distributors, direct selling companies and the channel as a whole. The DSN Customer-Centric Recognition Program acknowledges these companies.
In
protect the integrity of the CCR Program for all participants, DSN reserves the right to suspend or discontinue CCR Program recognition of any company undergoing published legal actions or regulatory disputes (including any settlements of such).

GROW & EVOLVE WITH THE CHANNEL: DSN’S SUPPORTER PROGRAM

INTRODUCING A NEW SUPPORT LEVEL: ADVOCATE

E BELIEVE DIRECT SELLING’S SUPERPOWER IS ITS SPIRIT OF SHARING AND SUPPORT. When one company succeeds, the entire channel benefits. It’s with that sensibility in mind that we developed the DSN Supporter Program in 2022 and welcomed 34 participants. And it’s with that same spirit that we introduce a new, entry‑level option of support for 2023, the Advocate Level.

BECOMING AN ADVOCATE IS A SIMPLE WAY TO:

ADVOCATES RECEIVE: n Logo acknowledgement and placement in all of DSN’s event promotions (print, online and in-person), website and additional recognition visibility. n Three complimentary tickets to the annual DSN Global Celebration & Awards event held each spring.
n
n
n
Help edify leaders and influencers in our channel;
Share and celebrate the stories that need to be told; and
Recognize companies achieving success with integrity. W

WHEN YOU BECOME A SUPPORTER OF DSN AT THE PATRON LEVEL AND ABOVE, you not only empower us to provide the global news, podcasts and recognition that help keep you informed, engaged and one step ahead, but you unlock invaluable perks, insightful educational content and unlimited access to exclusive research commissioned and sanctioned by DSN.

Platinum, Gold & Patron level exclusive: n DSU On-Demand Library—a Masterclass for direct selling n 150+ TED-style lessons

DSN has outdone themselves with the new DSU On‑Demand Library! Helping our organization grow at every level is a core pillar of ours, and the DSU content helps us enhance our efforts in an innovative way. —MARK STASTNY / CMO, SCENTSY

TO LEARN MORE about exclusive DSN Supporter Program Benefits and how you can become a part of the DSN family of Supporters, visit directsellingnews.com/achievements/membership/ or contact membership@directsellingnews.com

The news you need. The name you trust.

In order to protect the integrity of the Support Program for all participants, DSN reserves the right to deny, suspend or discontinue Support benefits to any company undergoing published legal actions or regulatory disputes (including any settlements of such).

THANK YOU TO OUR DSN SUPPORTERS!
DSN DIRECT SELLING NEWS

HATSAPP IS officially launching its Communities feature evolving the chat app experience for larger groups. The launch comes after months of testing in 15 countries and will roll out worldwide over the next few months on Android and iOS.

Communities is designed for larger structured discussion groups for a total of 5,000 members per Community. Features include admin controls, multiple sub-groups, an announcement group for the entire Community, 32-person voice and video calls, large file sharing (up to 2 GB), emoji reactions and in- group polls. Sub-groups allow members to follow and chat about topics that pertain to them and avoid irrelevant messages. As with regular WhatsApp groups, the app features end-to-end encryption.

40 DIRECT SELLING NEWS | JANUARY / FEBRUARY 2023 FORWARD THINKING / COMMUNITY ENGAGEMENT
W
India 390 M Brazil 148 M Indonesia 112 M United States 98 M Philippines 88 M Mexico 77 M WHATSAPP USERS BY COUNTRY WhatsApp Communities could be a terrific direct selling culture-building tool.
Engagement
Community
n Operate groups under one umbrella n Send updates to the entire community n Organize small discussion groups n Powerful admin tools including: 4Sending announcements to everyone 4Controlling groups that can be included COMMUNITIES FEATURES AT A GLANCE

“Communities like neighborhoods, parents at a school and workplaces can now connect multiple groups together under one umbrella to organize group conversations on WhatsApp,” said a statement from the app.

“WhatsApp Communities are meant to be used by members who may already be connected

in the real world,” explained a TechCrunch review. “Unlike on Facebook, WhatsApp is phone number-based, meaning people joining these discussion groups already have some familiarity with one another, as they may have exchanged phone numbers or at least have shared their number with a group admin.”

directsellingnews.com 41

FOR DIRECT SELLERS, Communities could be a terrific tool for communicating with and developing their teams or even customers.

So, what’s the difference between Facebook Groups and WhatsApp Communities?

Communities are hidden and require an invitation to join. Admins can add or delete members to groups and send out invite links. The one announcement group sends important alerts for all members.

For direct sellers, Communities could be a terrific tool for communicating with and developing their teams or even customers. It can be used to:

n Welcome new distributors and walk them through the first action steps

n Recognize accomplishments and praise n Run promotions n Upload training or marketing files n Share tips and testimonials n Answer questions about company updates and products

n Create an engaging culture of communication and action

WhatsApp is the third-most popular social app behind Facebook and YouTube with roughly 2.4 billion monthly users. DSN

42 DIRECT SELLING NEWS | JANUARY / FEBRUARY 2023 FORWARD THINKING / COMMUNITY ENGAGEMENT

ICONIC INSIGHTS

The ICONIC INSIGHTS podcast goes one‑on‑one with some of the world’s best‑ known authors, speakers and emerging voices sharing their unique insights on entrepreneurship. Join host and social-selling thought leader Heather Chastain once a month for a candid conversation about doing your own thing – what works, what doesn’t and what’s next. Each episode will give you concrete takeaways and actionable advice to help you improve your entrepreneurial mindset, performance, and leadership.

SUBSCRIBE TODAY to learn from guests Rita Davenport, John C. Maxwell, Suze Orman, Jason Dorsey, Les Brown, Kindra Hall and more!

DSN’S NEWEST PODCAST:
SUBSCRIBE TODAY!
HOSTED BY HEATHER CHASTAIN

Philanthropy’s Evolving Landscape

These new approaches to giving are reshaping corporate philanthropy.

GIVING BACK is a staple for most direct selling cultures, but technology and societal changes are reshaping what philanthropy efforts look like for companies wanting to make a positive impact. According to communications consulting company Porter Novelli, more than 70 percent of employees demand social responsibility from companies, and more than 93 percent believe that organizations must lead with purpose. Here are five popular philanthropy ideas direct selling companies can implement for both their corporate teams and distributor field.

1/ MATCHING DONATIONS

Matching donations, especially during special promotions or mini-campaigns, can greatly encourage engagement. According to a corporate giving report by Double the Donation, 84 percent of employees are more likely to donate if a match is offered. One third of employees say they are likely to give more if their donations are matched by the employer. It also found that of the companies who incorporate donation matching, 94 percent do so at a 1:1 ratio. Matching illustrates a commitment to social improvement and helps increase morale and employee retention

PHILANTHROPY IDEAS

44 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 FORWARD THINKING / PHILANTHROPY’S EVOLVING LANDSCAPE
5

2/ PEER-TO-PEER FUNDRAISING

Allow employees or distributors to create their own philanthropy or fundraising campaigns for causes they care about. These can change over time and allow people to mobilize based on evolving needs and opportunities. “They’ll become more passionate about the campaign and encourage individuals outside of the workplace to get involved. At the same time, they’ll feel like they are part of something bigger,” says Goodworld. A peer-to-peer approach is synergistic with the direct selling model and can help companies expand their reach and engage larger communities.

directsellingnews.com 45
One third of employees say they are likely to give more if their donations are matched by the employer.

WHERE GIVING IS

GOING

FIVE PHILANTHROPY TRENDS

TO WATCH.

1 / STRONG DEMAND FOR CAMPAIGNS

Organizations that postponed campaigns in 2020 and 2021 are ramping them back up. New facilities, new programs and larger donations will be encouraged.

2 / SHORTER STRATEGIC PLANS

Partly due to the COVID pandemic, organizations are adopting strategic plans with shorter timelines. Shorter timelines mean more opportunities for engagement through urgency.

3 / CORPORATE ENGAGEMENT

Younger Americans are more cause-focused and are more likely to do business with companies that align with their values.

4 / FUNDRAISING RATIOS

Giving USA suggests an expense ratio of 85 percent and fundraising costs that equate to between 5 to 10 cents of every dollar raised.

5 / MORE OPTIONS TO PARTICIPATE

While most direct selling company philanthropy efforts focus on participation and events, smaller events spread throughout the year allow more people to be involved.

3/ UP FOR AUCTION

Auctions can be a great way to get more people involved in philanthropy campaigns, especially for people who aren’t moved by simply giving money. Auctions can be much more engaging and are a great way to grow your brand. In-person or online auctions can include product packages, vacation experiences, concert or sports tickets or any items that match your company culture. Host a sneak peek of the best items in the auction and be sure to communicate what the proceeds will be used for.

46 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 FORWARD THINKING / PHILANTHROPY’S EVOLVING LANDSCAPE
SOURCE: GIVING USA

consumers

4/ GIVECARDS

GiveCards, offered by Goodworld, are a democratized approach and work like gift cards with a pre-set budget. Recipients can redeem the cards by donating the pre-loaded monetary value to a charity or non-profit. These cards can be awarded to corporate employees or field distributors on anniversaries, when they reach a promotion or milestone or when they accomplish monthly goals. Goodworld says these GiveCards produce engagement rates that are three times higher than normal company giving campaigns

5/ CUSTOMER LOYALTY PROGRAMS

Involve customers in your philanthropy efforts. Customer loyalty programs are becoming more popular among direct selling companies helping to increase customer engagement. Social impact loyalty programs take that to another level by incorporating social causes. Customers can round up the amount of their purchase or cash in their rewards points to donate to a cause. According to Goodworld, 57 percent of customers say they are willing to donate to a social cause when prompted by a brand. More than 87 percent of consumers support

about.

directsellingnews.com 47
DSN % 74% 51% WON’T WORK FOR A COMPANY THAT DOESN’T HAVE STRONG SOCIAL AND ENVIRONMENTAL COMMITMENTS. SAY THEIR JOB IS MORE FULFILLING WHEN THEY ARE PROVIDED OPPORTUNITIES TO MAKE A POSITIVE IMPACT AT WORK. 55% WOULD RATHER WORK FOR A SOCIALLY RESPONSIBLE ORGANIZATION, EVEN IF IT MEANT HAVING A LOWER INCOME.
CONE COMMUNICATIONS EMPLOYEE ENGAGEMENT STUDY FOUND THAT OF THESE EMPLOYEES % GIVING STATS
companies that advocate for issues they care
A
%
More than 87 percent of
support companies that advocate for issues they care about.
48 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 FEATURE / TOP SKILLS EVERY DIRECT SELLING EXECUT IVE NEEDS
directsellingnews.com 49
Every Direct Selling Executive
The Top Skills
Needs WHAT’S RELEVANT, WHAT’S MARKETABLE AND WHAT’S COMPLICATED.

HARD SKILLS—THE NUTS AND BOLTS, platforms and apps, methodologies and strategies on every executive’s CV—may change slightly from year to year, but the overarching categories of data and tech have remained constant since digital technology became the standard-bearer for corporate growth.

Perpetual evolution in these areas press the most marketable executives forward in their skill sets to keep pace with what’s necessary to grow businesses, and at the same time increase the relevance of companies and the likelihood they can attract and retain valuable employees.

The need to interpret and analyze data and implement growth strategies that harness the most current technologies, cuts across industry disciplines. It’s no longer the exclusive purview of the Chief Information Officer. In fact, it bleeds into every executive role and can affect the softer, nuanced skills and decision making of corporate leaders who want to build solid and successful teams.

50 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023
We’re sitting in the middle of a major shift in how we may be doing business going forward. The channel is grappling with change at a fundamental level.
FEATURE / TOP SKILLS EVERY DIRECT SELLING EXECUTIVE NE EDS
GARDNER / principal, GardnerCo LLC dba C3 Executive Search

“Every good executive needs to be data-oriented and understand finance related to overall business structure—the ‘where’s and ‘why’s of how monies are assigned,” said Kate Gardner, principal, GardnerCo LLC dba C3 Executive Search.

That’s because companies are being driven to do things differently, whether it’s due to COVID, compliance issues leading them to more customercentric business strategies, remote work expectations, mergers or downsizing. Change has come to the entire channel, and it’s complicated.

“We’re sitting in the middle of a major shift in how we may be doing business going forward. The channel is grappling with change at a fundamental level, from current complexities to digital and regulatory driven opportunities,” Gardner explained.

To lead through these challenging and changing times, executives involved in planning and growth strategy certainly need to be data-oriented, analytical, understand business drivers and apply all this to finance. But it’s tempting to get lost in those hard skills and quantifiable data, relying so heavily on them you lose sight of the person that “got” that number or “is” that number.

People are going through a lot of challenges coming out of COVID. With all the life-impacting adjustments to work and personal lives made over

THREE KEY TAKEAWAYS

1

/ COVID HAS BEEN A PERMANENT GAMECHANGER

Employees are facing more challenges, and to maintain staff retention, empathy is more important than ever before.

2 / ADAPTABILITY AND FLEXIBILITY ARE PARAMOUNT TO SUCCESS

Executives and corporations need to learn how to pivot quickly and embrace new methodologies and ideas.

3 / REMOTE WORK IS NOT A TREND—IT’S THE NEW NORMAL

Remain pragmatic and set clear goals to make sure productivity doesn’t suffer and culture doesn’t decline.

the past few years, psychological and mental health challenges have surfaced. People have changed.

As a result, anyone in organizational leadership needs to have more empathy than they did before. They need to be able to communicate and lead with more nuance than was once required of them, Sean Eggert, CEO, Hanna Shea Consulting, said.

“You can carry on with business as usual, but you’re going to be losing executives left and right and constantly replacing people. Take time to get to know your team and make them feel supported. Right now, more than ever, it’s about building really strong community,” Eggert said.

directsellingnews.com 51

Fast Adapting Mavericks

Hard work is second nature to the direct selling industry. When executives rise from the sales field, particularly, they bring with them an “eat what you kill” work ethic that drives them to adapt quickly. This maverick characteristic pushes them to do everything in their power to figure out an angle to improve, to increase numbers, to do things better.

As an industry recruiter, Eggert sees the frustration of these executive mavericks, who are extremely tech savvy, excel on social media and possess incredible communications skills but work for companies that lag behind.

COVID accelerated corporate adaptation, forcing policy and business strategy changes, software platform improvements and even complete re-creations. Larger companies with more resistant field organizations felt greater pain, than did smaller ones whose fields had looser ties to existing methods and platforms. It’s a change some executive candidates tell Eggert was overdue.

After outpacing their companies in adaptability, these executives desire organizations that embrace change and technology more readily; therefore, allowing them to refine their skills, grow individually and implement new strategies on behalf of their new employers.

When an executive is ready for more and could step up within a company, often they are disillusioned because no career advancement path exists. A quick look at the company hierarchy tells the story. These executives simply have no place to go but out.

“We’ve had a tendency, because we’ve had so many great years of growth in our channel, to add willy-nilly without giving consideration to an actual org structure,” Gardner said. “HR is always good at and trained to identify and help organize the structure internally, so they have the right people onboard for today and a year from now, presuming they need these levels they are aspiring to.”

But too often, HR isn’t part of strategic growth planning. Gardner believes there’s a lot to be gained in studying this internal people component from both the corporate and individual perspectives.

52 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 FEATURE / TOP SKILLS EVERY DIRECT SELLING EXECUTIVE NEEDS
Take time to get to know your team and make them feel supported. Right now, more than ever, it’s about building really strong community.
—SEAN EGGERT / CEO, Hanna Shea Consulting

Simplify Your CV

Don’t be clever with formatting. Use a basic, fundamental CV. List hard skills including all digital apps you’ve worked with, then provide balance with an executive summary that briefly tells your story. Use language to convey softer skills like communication and empathetic leadership. Skip personal pronouns and use “we” instead.

Moving Up or Moving Out?

Leveling out at the same title for multiple years with numerous companies is a red flag. Maybe personal reasons kept you in place or you just love the job, but recruiters want to see your track record. Be prepared with data to prove you’ve still got the goods.

Personal Social Media Branding

Create a personal brand on social media that can sell you to an employer. Recruiters use social media as a first-look at job candidates. Make sure your branding is authentic and represents who you are, but remains professional.

Brush Up on Zoom

Not every candidate has the perfect lighting for a virtual interview, but putting some thought into background, camera angles, volume levels and personal appearance goes a long way in showing HR that your basic tech skills are current and effective digital communication is within your wheelhouse.

Put Value Front and Center

An interview is not the time to be humble. Be really clear on what value you add to an organization and present evidence to back it up. Give your teams credit where credit is due to illustrate your contributions equally.

Empathetic Leadership

Conveying softer skills like this often comes down to relationship building and conveying everyday, conversational examples of how those relationships with a team, a company or even the industry live on. Do you still get together for dinner? Are you godparent to one of their kids? Tell them, because this is where integrity and character come in. Lasting relationships are the byproduct of empathetic leadership.

Do You Have Any Questions?

Grab that interview moment and make it your own. Script questions for the interviewer that allow you to convey pieces of your experience and skill set that reinforce your fit for the organization. It takes forethought and planning to create “impromptu” situations like this, but they provide opportunity for deeper conversation that could land you the job.

The Remote Work Elephant in the Room

The willingness to contribute more than is expected shows initiative and is a given at the executive level. But remote work is a new kind of flexibility to consider in a job search. Some companies take a hard line on full-time, in-office workers. Others sit solidly in the work-from-home camp. And then there are the hybrids: three days in office and two days remote; one week in the office and three weeks remote. There’s no standard and little agreement. Research. Set priorities. And apply accordingly.

Remote Work Downside

Take into account that present and visible employees have an advantage to moving up and being promoted within many companies. Combat that with innovation, intentional actions and strong communication to engage your team, build a community where one might not exist, and increase the mindshare with the CEO or other executives who could determine advancement within an organization.

Be the Best Fit

Executive recruiters work with HR departments to search for the best job candidates. Through written responses and less formal interviews, recruiters glean information from potential candidates and dig for characteristics, leadership styles and experiences that can make all the difference in a new hire “fit.”

directsellingnews.com 53
ADVICE FROM EXECUTIVE
LOOKING FOR A NEW POSITION? SHOWCASE YOUR SKILLSET WITH THESE SIMPLE STEPS
RECRUITERS

Remote Work Debate

Nowhere is the people component more obvious than the debate surrounding remote work. What began as a whisper pre-COVID with Millennials and Gen Xers is a post-pandemic phenomenon no longer unique to that demographic.

“They are searching for the Holy Grail of work/ life balance. With COVID leading to remote work and having had a taste of that and the freedom that it provides, they have no interest in returning to an office environment,” said Debbie Squire, President, IMPACT This Day.

“There’s no magic bullet with remote work. It becomes part of our culture moving forward and each company’s work/life balance culture is going to be different from another, for all the legitimate reasons based upon who that company is and who leads them,” Gardner said.

“It just makes sense in an executive’s mind to let them do what they do from wherever they want to do it, as long as the job is being done to meet expectations or beyond,” Eggert said.

After all, it is a “trust but verify situation,” according to Eggert.

Some newer and mid-sized companies operate entirely remote and as a result, expectations are clear from the beginning for everyone at every level including the CEO. “It all comes down to solid reporting and communications, whether you are the CEO reporting to the Founder or the Director reporting to the VP,” Eggert said.

The contentious nature of remote work has some executives driving a proverbial stake into the ground refusing to relocate or come into the office fulltime, while some companies take a hard line citing sacrifices in culture and questioning productivity.

“Executives need to be more pragmatic, particularly when leading their teams. One example would be looking at employee output versus hours worked. I am hearing from more of my clients that they see productivity levels dropping and they are poising themselves to be more rigid in respect to remote work,” Squire said.

Eggert doesn’t buy into the idea that remote work is somehow adversely affecting productivity. With set expectations for every hired position, a set of achievements and clear goals, it’s not hard to measure a person’s productivity whether they are in or out of the office.

“It’s always about reporting, and it’s about data. The fact that people were forced to work from home during COVID and now are demanding that ability— at least in a hybrid—I think helps because it comes down to data. There’s a lot more rigidity, in terms of reporting and communication. In all honesty, it is a great thing, as compared to when we were all in the office and maybe there wasn’t that same requirement,” Eggert said.

Hardworking professional executives want to be able to report in each week about what they’ve accomplished. Push back shouldn’t exist because they should relish the idea of communicating and be good at it. It’s expected of them because it is what they expect from their teams.

Perhaps, it is in the data where executive job candidates and direct selling companies can find common ground on the remote work issue and exercise the empathetic leadership traits that lead to effective collaboration and a win for the individuals, the companies and the industry. DSN

54 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 FEATURE / TOP SKILLS EVERY DIRECT SELLING EXECUTIVE NEEDS

Leveraging Economy t he Gig

56 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023
FEATURE / LEVERAGING THE GIG ECONOMY

Workers are exiting corporate America. There are reasons. The Great Resignation of October 2021 got our attention. Will direct selling companies make the adjustments needed to gain more share of a growing pool of gig seekers interested in flexibility and freedom in how work can be accomplished?

directsellingnews.com 57

THIS COULD be the year that direct selling becomes recognized as the Ultimate Gig.

NEW OPPORTUNITIES DO NOT GUARANTEE NEW

POSSIBILITIES. Through my research and study, it has become apparent that the basic profile of society—relative to the distribution of wealth— remains about the same. This is a jarring truth to accept when considering that there are far more opportunities available to the average worker than there were two decades ago.

For the new year to be full of possibilities, opportunities must be chosen, embraced and— most importantly—leveraged. More than 60 million Americans have learned how to leverage their underutilized assets and talents to become active participants in the gig economy. Freelancers, independent contractors and micro-entrepreneurs have discovered how they are uniquely positioned to tap into income-earning possibilities that not only offer financial benefits, but also improve their overall quality of life.

58 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 FEATURE / LEVERAGING THE GIG ECONOMY

THREE KEY TAKEAWAYS

1 / THE GREAT RESIGNATION HAS CHANGED THE WORKFORCE

AS WE KNOW IT

Each of the generations from Gen Z to Boomers are looking for multiple income streams with a flexible schedule.

2 / BY 2040, 95% OF THE GLOBAL RETAIL MARKET WILL HAPPEN ONLINE

This permanent paradigm shift will be a boon for online influencers with their personalized marketing approach.

3 / TRADITIONAL FORMS OF DIRECT SELLING ARE OFTEN UNNECESSARILY COMPLEX

Product training and compensation plans can be simple and streamlined to attract a new generation of those seeking to leverage underutilized assets on one or multiple platforms. Your success is built on their success.

How do direct selling companies attract talent from those interested in flexibility and freedom in how they work which are attributes that have fueled the growth of the gig economy? My research illustrated that six percent of workers participating in the gig economy were doing so as direct sellers. Why is that number so low? When we conducted additional primary research in October of 2021 the percentage of gig economy participants was down to four percent. What changes are needed in order to better attract the talent that is flooding the gig economy?

A New Way to Work

The Great Resignation we recently experienced left a lasting impression on the workforce as we know it. Traditional forms of work are an essential thread in the fabric of society, but a growing number of workers—not only the youngest generations, but also displaced Gen X employees and retirees witnessing their retirements dwindling—are discovering that there are opportunities for multiple streams of income and flexibility that can’t be found in a nine-to-five setting.

directsellingnews.com 59
33.8% 11.8% < $10,000 $10,000-$100,000 $100,000-$1M
> $1M GLOBAL WEALTH DISTRIBUTION IN
53.2%
1.2%
2021:

Approximately 50 percent of traditional workplaces adjusted their work models to appeal to this hunger for flexibility through the designing of hybrid work models or customizable work hours.

Work from home is no longer a temporary adjustment to a pandemic. It has become a new norm in many cases. Brian Chesky, founder and CEO of Airbnb recently announced the importance he now places on flexibility. His company wants to attract the most talented into its ranks and the most talented may not always be living, or even want to live, in close proximity to the geography which his offices currently reside.

Shopify Founder and CEO Tobi Lutke announced in 2020 that he predicted the office-centric era to be ending and therefore, Shopify employees would not return to an office-centric environment. Shopify, one of the most valuable companies in Canada, allowed most employees to work remotely permanently. In March of 2022, Goldman Sachs CEO David Solomon insisted that all employees return to regular work hours five days a week. It is reported that barely 50 percent showed up!

Those who have leaned into the gig economy, however, find income earning opportunities that are built on more simplistic models. Gig opportunities are typically easy to understand, quick to engage with and don’t require consuming interviews to get started. Pay is prompt and performance based. Gig workers basically hire themselves so they become their own boss as the work is always flexible and dependent upon how and when they would like to work, not a predesigned schedule. The manner in which the work can be done is not dictated by the gig providing company.

Utilizing Leverage

Creating multiple streams of income in a world where inflation is outpacing the average wage increase by three or four times is becoming a possibility, not simply a dream. Through the concept of leverage, workers can learn how to better utilize their underutilized assets to develop these new income possibilities. Underutilized assets can be physical, like a car or extra bedroom, while others relate to time, knowledge, skills, experience or even personality traits.

60 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 FEATURE / LEVERAGING THE GIG ECONOMY
SHIFTING
INFLATION IS OUTPACING WORKER WAGE INCREASES BY 48 % OF BUSINESSES HIRE FREELANCERS. 52 % OF WORKERS PLANNING TO QUIT THEIR JOB ADMIT TO CONSIDERING A FREELANCE CAREER INSTEAD. 69 % OF GIG WORKERS WORK MULTIPLE GIGS. MORE AMERICANS QUIT THEIR JOBS DURING THE GREAT RESIGNATION THAN AT ANY OTHER TIME IN HISTORY. 3-4x
A
JOB MARKET

DON’T MISS YOUR OPPORTUNITY

to appear in a new resource by DSN, The Guide.

The Guide—featured in each issue of DSN—is a curated “Angie’s List” to help executive decision makers find strategic business partners specializing in direct selling.

The Guide focuses on a specific category of expertise and service in each issue.

REQUIREMENTS:

Suppliers featured must currently serve the direct selling channel and have a minimum two years of direct selling experience.

To ensure your company is included in an upcoming issue of The Guide, contact Jerilyn Taylor at jtaylor@directsellingnews.com.

Inclusion on the list is free of charge, and supplier companies can boost visibility by advertising in the issue your category is featured.

2023 ISSUE CATEGORY MARCH BRANDING, MANUFACTURING, PACKAGING APRIL COMMISSION PAYMENT SERVICES MAY DESTINATION AND TRAVEL SOLUTIONS JUNE DISTRIBUTION, FULFILLMENT AND LOGISTICS JULY/AUGUST SOFTWARE, TECHNOLOGY AND SOCIAL MEDIA SOLUTIONS SEPTEMBER EVENT PRODUCTION OCTOBER INCENTIVES AND RECOGNITION NOVEMBER CREDIT CARD AND PAYMENT PROCESSING SOLUTIONS DECEMBER CONSULTING AND EXECUTIVE SEARCH >
ATTENTION SUPPLIER COMPANIES: THE GUIDE? ARE YOU ON

But assets alone do not a possibility make. Simplicity makes it easy to embrace a new opportunity because it aligns well with the assets you currently possess or minimizes the complexity of a new venture. Where simplicity removes barriers, flexibility removes limitations. Finally, the freedom to choose is the lever which removes restraints. Freedom of choice is not automatic, but rather must be a deliberately chosen path. Freedom of choice now allows the employee to become their own employer, choosing their work terms, their earning potential and their tasks.

The Duo of Direct Selling and Personalized eCommerce

The pandemic accelerated consumer adoption of eCommerce, and the growth now looks to be exponential. By 2040, it is expected that 95 percent of the global retail market will be happening online. This is a generational change, meaning it’s unlikely to be easily reversed.

This paradigm shift has been a boon for online influencers. The personalized marketing touch provided by affiliates can lend incredible benefit and credibility to the big-name brands they partner with. Much like affiliate marketers, direct sellers can earn commissions on the purchases made by customers as a result of their influence. In many cases, direct sellers also benefit when they sponsor others who also influence purchases made by more customers.

Unlike eCommerce offered by the company solely, direct sellers, as intermediaries, can add personality, personal and persuasive attention and follow-up which demonstrates a customer focus. The result: more personalized eCommerce enhanced by more personal relationships, increasing the probability of repeat purchasing and growth through a network of customers. There are no boundaries, limitations or geographical constraints because the direct seller is the intermediary. The company fulfills all of the business-related infrastructure needed to serve

and other business partners.

62 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 FEATURE / LEVERAGING THE GIG ECONOMY
GIG WORKERS AT A GLANCE 17 % FREELANCE PROFESSIONALS 4 % DIRECT SELLERS 71 % WORK <8 HOURS PER WEEK 85 % EXPECT TO EARN <$1,000 PER MONTH 84 % WORK <4 DAYS PER WEEK 9 % EXPECT TO EARN >$2,000 PER MONTH 81 % HIGHLY SATISFIED WITH EXPERIENCE
customers

A Generational Shift Toward eCommerce

% OF CONSUMERS WHO PREFER SHOPPING ONLINE OVER TRADITIONAL RETAIL, BY GENERATION

The cultural shift that makes online sellers a trusted source and name brands adopting affiliate marketing programs means direct selling, as a channel of distribution which engages people as the intermediary, is in the perfect position for success. Direct selling can be a more preferred choice for those seeking ways to leverage their underutilized assets while seeking new income possibilities. However, direct selling opportunities are often muddled with unnecessarily complex product trainings and confusing compensation models.

The direct sales method can be as simple as find a product you love, share it with others and allow the company to ship directly to customers on behalf of the direct seller who influenced the transaction. Values such as flexibility and freedom of choice should always be honored. Hierarchy, deadlines (if any) and imposed requirements to participate might be reconsidered to become more competitive with the many choices made available by a gig economy that is forecasted to continue to grow at an impressive CAGR of 16.18 percent through 2027.

The New Ultimate Gig

The emergence and success of the gig economy is proof of concept that the marketplace is ready for and receptive to flexibility and freedom in how work can be accomplished. Choices are now abundant, and 2023 represents a year when direct selling companies have the opportunity to flawlessly execute on the shifting views surrounding work that we’ve seen widely accepted over the last two years.

I lead Squire’s sales tax team, keeping direct-selling companies compliant with state and local tax laws. Our industry-specific approach includes nexus determination and tackling the challenges of sales tax calculations, registrations, filings, and related issues, such as exemption certificate management. I’m an expert in multi-state sales and use tax issues.

USAGE OF TAGLINED LOGO S

One-tagline

This could be the year that direct selling becomes recognized as the Ultimate Gig! DSN

The tagline "AUDIT.TAX.AD VISORY" o n ly accompanies the logo in c i r cumstances where context requires c larification about what Sq uire can do for current and potential customers (the audience).

For example, Squire.com and its subsequent web pages featu r e the onet agline version (HIGHER P E RSPECTIVE ONLY) of the Sq uire logo because the subpage content t hroughout the site provides adequate c o ntext to visitors.

JOHN FLEMING is the author of Ultimate Gig: Flexibility, Freedom & Rewards which provides an in-depth glimpse of the future of work and how the gig economy has fueled the growth and appeal of flexible work opportunities. John is principal of Ideas and Design Group, LLC and in both the DSA Hall of Fame and DSEF Circle of Honor. John is also a recipient of the DSN Bravo Lifetime Achievement Award. John has recently released LEVERAGE, a free eBook download.

Secondary-tagline

On the other hand, if the team attends a national financial trade show where S q uire should differentiate itself from a n eighboring financial software c o mpany, then trade show banners n eed to include the tagline, “Audit- TaxA dvisory.”

Treat the secondary tagline like it’s part

directsellingnews.com 63
SHARA SUMNALL SALES TAX SPECIALIST AUDIT
· TAX ADVISORY
version of full color logo
LEARN MORE SQUIRE.COM ( 801 ) 225-6900 Get a sales
your
2022_DSN_Shara_QuoteAd.indd 1 3/7/22 3:48 PM >
version of full color logo One-tagline version of white logo
tax expert on
team
67% OF
56%
GEN
41%
MILLENNIALS
OF
X
OF BABY BOOMERS

PAVING THEIR

www.directsellingnews.com 65
RELEVANT.
HOW SOME OF THE SMARTEST COMPANIES IN THE CHANNEL STAY NIMBLE, FRESH AND
OWN WAY

PEOPLE ARE TALKING.

IN C-SUITES AND IN TEAM ZOOM CALLS

THROUGHOUT THE INDUSTRY, there is a common refrain—the channel is changing, sometimes in uncomfortable and unfamiliar ways. From how and how often distributors are paid, to eCommerce selling strategies, affiliate programs, the rise of social selling and influencers, generational shifts in the field and the home office and so much more, direct selling continues to redefine itself and its future.

In December’s Year in Review, we outlined several of the ongoing challenges facing the channel. Now, as we go forward into the new year, we are resolving to help provide channel leadership with the solutions, perspectives and fresh takes required to always stay one step ahead.

The concerns being raised are nothing new. Across the channel, for many sales are flat or down. Distributors are demotivated. Training and compensation models are confusing and lag behind other “gig” opportunities. Ongoing economic and supply chain challenges hamper customer retention and satisfaction.

P
COVER STORY / PAVING THEIR OWN WAY

To many, we are a channel in search of relevancy in a world where other side hustles are plentiful, popular and uncomplicated.

Direct selling has always prided itself on being an opportunity for everyone. A vehicle that allows people from all walks of life to regain a sense of personal and financial freedom. That message hasn’t changed—but the methodology continues to.

As we head into 2023, we wanted to check in with the companies in the channel that are navigating these challenges with steadiness, innovation, commitment and passion. On the following pages, you’ll hear from four executives as they explain in their own words the “secret sauce” to their companies’ successes in this rapidly shifting environment.

AdvoCare’s CEO Patrick Wright shares his company’s story of reinvention and redemption coming out of its struggle with the Federal Trade Commission and the revamping of its compensation structure.

ON THE FOLLOWING PAGES, you’ll hear from four executives as they explain in their own words the “secret sauce” to their companies’ successes in this rapidly shifting environment.

Gordon Hester from PM-International explains how the company’s history of consistent growth propelled them to new levels of success while other companies have struggled to grow or even maintain sales.

Amanda Tress, Founder and CEO of FASTer Way to Fat Loss, explains how their groundbreaking single‑level affiliate plan and compensation structure have attracted a new breed of entrepreneur to direct selling.

And Qyral’s Founder and CEO Hanieh Sigari shares how approaching direct selling with a disruptive mindset and a willingness to challenge conventional wisdom has put this young company on a course for success.

We think you’ll find each of their stories relatable and relevant, whether you are a well established company looking to modernize or a startup looking for stability.

Without a doubt, these are turbulent times. But DSN believes that out of that turmoil can come triumph as the channel creates a new, prosperous and modern reality based on sustainability, simplicity and customer centric ideologies.

www.directsellingnews.com 67

COURAGE OVER CAUTION

WWE’LL CELEBRATE OUR 30TH ANNIVERSARY IN FEBRUARY. That alone is not something many direct sellers or others can say. We’ve had so many amazing years and are planning for decades into the future. We had a chance to choose courage over fear—and we jumped at it.

I joined the company in 2008, during what was truly a golden age for AdvoCare. Our brand presence was everywhere: the NFL, NASCAR, Major League Soccer, TV advertising, College Football. We were quickly becoming a household name.

And then, in 2019, we announced—what appeared suddenly to the public—that we had entered into a settlement with the Federal Trade Commission (FTC), and we would be abandoning the multi-level aspect of our business.

To those outside a small group of the AdvoCare team, it seemed like the settlement occurred out of the blue, but that couldn’t be further from reality. We battled for over three years—privately, because we had to. We dedicated tens of millions of dollars in legal fees, millions on consultants and experts and comp plan analysis—doing whatever we could to satisfy the FTC’s demands. So, when we announced we were abandoning our multi-level model, people wondered why we didn’t fight.

But we did fight. We fought vehemently for many years. We chose to make the strategic decision to completely remove multi-level from our marketing plan because, in the end, it was the best for us. Single

68 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 COVER STORY / PAVING THEIR OWN WAY
TOP EXECUTIVE / PATRICK WRIGHT, CEO FOUNDED / 1993 CATEGORY / HEALTH AND WELLNESS CREATING OPPORTUNITY: Reimagining the business from top to bottom. AdvoCare
ADVOCARE TOOK MONUMENTAL STEPS TO MAINTAIN ITS CORE CULTURE AND COMMITMENT TO QUALITY.

level was our only option—which meant putting the true popularity of our products and the loyalty of our customers to the test. We were able to see that AdvoCare could survive and thrive based solely on the merits of our products, our culture and our loyal distributors and customers who love the products.

I took a leap of faith with my amazing team and the decision was made on my third day as CEO to move forward with the single-level model. While this was not the third day on the job I’d ever envisioned, it was the best chance to save the company, move forward and continue to make an impact five, 10, 15 years down the road.

Many tough days followed that announcement. We got down to business with restructuring, layoffs and tightening in every single way—just to survive. We were in an unprecedented place. While affiliate models existed, there had never been a multi-level company with overrides and leadership bonuses that had transitioned to a single level

CHOOSING COURAGE was our only option—we knew our products and customer loyalty were the key to our success and went headfirst into that direction with new freedom.

compensation plan. There’s no map for companies, direct selling or otherwise, that have successfully achieved what we have. I am holding tight to the team I have because we’re unique in what we’re building, and I am forever grateful for how we’ve respectfully maintained our culture while making monumental change.

Making those announcements, sharing those changes—it was by far one of the most challenging times of my life. I knew we had to keep moving forward, and I felt a deep need to protect the business in any way that I could. Not protecting our loyal employees and distributors that still wanted to share our products was not an option I was willing to compromise on

NEW FOCUS. NEW INITIATIVES. NEW OPPORTUNITIES.

I remember sitting in my office late one night, struggling with the enormity of the challenges we faced, when in a moment of clarity, I recalled what Marcus Aurelius once said, “What is in the way becomes the way.” It gave me a shift in mindset. Rather than worry about what we could no longer do, we began to shift our focus to the things we could do now that we couldn’t do before.

We started to ask ourselves: What if all that mattered was producing great products and making it easy to buy them? What if we didn’t have to launch a new product every six months at convention? What can we do differently? How can we change?

www.directsellingnews.com 69

Our focus became simple: how do we become the best company for our 200,000 Preferred Customers? We took a deep dive into how to create excitement and consistency in ordering our products. We asked ourselves: What’s the company with the most user-friendly website out there? How does it work? How do we make ordering and trying our products easier?

We knew we needed to learn more. We set out to figure out who does “customer experience” the best, and how we could improve on it. We didn’t have the limitations of before, and neither did our distributors. How could we leverage that? We found that many of our distributors wanted to stay. They liked just selling products. They didn’t want to recruit. They wanted to sell and enjoy the products.

I thought about all the times I had stood on stage at convention and said, “This business is really for

that mom that wants to make a couple hundred extra bucks a month.” I had said it, but had my actions really reflected that? Or had I been too focused on making our leaders happy?

If, as a company, we hadn’t focused on the mom making $100 before, we now had to not only focus on her—we had to make sure she could now make $200 for selling the exact same amount. That was our goal: Double the amount small distributors made and make the compensation plan 100 percent about them.

KEEPING IT SIMPLE AND STREAMLINED

Our first step was to simplify the checkout process on our website. In the past, there was a lengthy process for cold leads who came to the site to buy product. They had to click, register, become a customer—they couldn’t make a purchase without jumping through several hoops.

I know I wouldn’t do all that just to buy a product online. If I have to create an account, I’m out. If I need to do more than two clicks, I’m done. Shouldn’t we treat our customers with the same respect?

So, we changed our approach. Two clicks to check out. That’s it, and it works amazingly well. We added Apple Pay and guest checkout. We knew this approach would set off alarm bells for

70 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 COVER STORY / PAVING THEIR OWN WAY

the field—and it did. But we asked them to trust us. We explained that if we sell more, you are going to make more—but you have to trust us.

Entering your ZIP code, finding a local distributor, offering personalized coaching—all those clicks that people had to go through—we got rid of it. We don’t ask customers for anything. What we discovered was—with that simple change—the conversion rate increased almost 10 times. And we passed the resulting commissions to the distributor on the back end.

We’ve built up a lot of trust and good will with our field with this maverick approach. We knew we had amazing products. We were going to build on that asset, hold on to our image and branding—and then we were going to try a bunch of things. Some would work. Some wouldn’t. But we would keep going.

We had a fail-fast mindset, and that made all the difference. Everything didn’t require a six-month development program. Launch it. See how it goes. If it doesn’t work, pivot. We began to take that mentality around everything that we did. We built a very simple compensation plan. I know how long it takes some companies to explain their comp plans. I used to be the same. I can now explain AdvoCare’s comp plan in about 15 seconds.

Our compensation plan is simple.

n Commissions on the sale of products (20-40%)

n Additional bonuses for total new customer orders and total customer orders

n Special monthly incentive rewards

n Annual incentive trip

We found that our distributors love these fun incentives, and they chase after opportunities. Whether it’s cash or AirPods or sunglasses they wouldn’t splurge on themselves, we tried it all to see what had the most traction. We poured everything into finding out what the field would and wouldn’t engage with.

At the same time—and this is very important—we began to recognize that in this new model, our field are hobbyists. They’re having fun, they’re sharing and they’re earning a little bit of extra money every month. So, we’re giving them opportunities to earn more than they used to, while honoring their level of commitment..

KEY LESSONS LEARNED

The reality is, with everything we’ve done; all the changes we’ve made; all the focus we’ve put in— there were two important lessons. And if you want to boil down the AdvoCare experience, the lessons are really simple and straightforward.

If you do what’s best for the customer, if your focus is 100 percent on that and you don’t get swayed by outside forces—things will work out. But the customer truly must be number one. And we have to challenge our pre-existing beliefs in order to keep that ideal in mind. Challenge your own thinking: Why is our website like this? Why do we market this product this way? What could we do or try differently? If the way something works isn’t the best thing for the customer—challenge it. You may not make every change, but you might make one that will make all the difference.

And the second lesson is a direct result of the first. Your leaders and your field will trust you more than you might expect. They will buy in more than you think. Will there be detractors? Always. But when you show them that doing the right thing for the customer and the right thing for the brand is ultimately the right thing for the field—they will respond favorably.

My hope is that you never have to face what we did. But the biggest takeaway from this for me has been that that you can never go wrong when you focus fully on the customer experience. If you have great products, and you work to truly make the customer experienced great—you, AND your field, will have success.

DOING THE RIGHT THING for the customer and the right thing for the brand is ultimately the right thing for the field.

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STAYING IN A CONSTANT STATE OF GROWTH

PM-INTERNATIONAL HAS SET A HIGH STANDARD FOR PROLONGED, STEADY SUCCESS.

TTHE DIRECT SELLING BUSINESS in the US is going through a challenging transitional period. We are seeing an increasing number of companies struggle to evolve so they can remain competitive in a rapidly changing world. At the same time, we are dealing with high inflation, continued supply chain challenges, rising operational costs, reputation challenges and increased competition for consumers and new entrepreneurs.

Despite all these challenges, PM-International has achieved a constant state of growth for 29 straight years. PM has been awarded the DSN Bravo International Growth Award for two consecutive years and is on track to earn this award for an unprecedented third year.

I have been in this industry for almost 35 years and recently joined PM as their General Manager of Sales for the US and Canada. Like many, I was also curious how PM could maintain a constant state of growth since inception to the massive growth experienced over the last three years. A total of $2.38 billion in annual sales was reached in 2021. Below are my initial conclusions relating to the “PM Success Formula.”

ULTIMATE DECISION MAKER

In my many years working in direct selling and with many great leaders, the CEO and Founder of PM-International, Rolf Sorg, is the most talented leader I have ever worked with. Experience has taught me that the success or failure of any

72 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 COVER STORY / PAVING THEIR OWN WAY
EXECUTIVES /
FOUNDER AND
MANAGER SALES, US AND CANADA FOUNDED / 1993 CATEGORY / SUPPLEMENTS AND COSMETICS
Maintaining consistent, steady growth for three decades. PMInternational
TOP
ROLF SORG,
CEO GORDON HESTER, GENERAL
CREATING OPPORTUNITY:

company will come down to how the leader runs it. Rolf has developed a time-tested cultural and business blueprint. The success formula has its foundations based on the following principles.

1 / High-Performance Culture

The company is managed with the mindset of giving your best every single day with a heavy focus on the key metrics that drive revenue. The company is data-driven and operates in a very “people-centric” way. There is very little tolerance for the three things that can stand in the way of success: entitlement, division and drama.

2 / Heart and Pride

One core value of PM-International is “heart and pride.” It refers to making your business a matter of the heart, sharing your genuine excitement with others and appealing to their pride. Rolf understood early on that the word “deserve” includes the word “serve” and established a culture based on a shared and deep commitment to living the PM mission.

3 / Conservative Financial Management

PM remains a debt-free company with a very high EBITDA. This allows us to invest back profits into ensuring the business stays competitive. In today’s marketplace, the costs of operations and innovation continue to increase. If a company does not have the resources to invest in growth, that can be a big obstacle to surviving challenging times. As a family-run company, swift decision making keeps PM-International one step ahead.

4 / World Class Products

To build a stable and long-lasting industry-leading company, you need to have products that create a loyal customer base. PM stands for “Premium” from beginning to end. Our products are exclusive and supported by 70+ international patents. It is why PM has sold over 800 million products since inception 29 years ago.

5 / Customer Focus

We have seen a shift in moving from an opportunitycentric approach to more of a customer-centric approach. Since the company’s inception, PM has been a step beyond the concept of customer-centric to the standard of being customer obsessed. In PM, the opportunity component of the business has created a passionate active distributor base focused on building a growing loyal customer base.

6 / Maintaining Field Trust

For any successful direct selling or network marketing company, the field is the primary driver of sales. The key is to keep them in a constant state of engagement. Any legacy company will tell you that is a difficult challenge as new distributors tend to leave quickly, and leaders tend to drift away from production over time. As the industry shifts to more of an omnichannel focus, it is essential to consider the impact on the field. As I look at the companies struggling to be successful today, the common challenge they have is that they have lost the trust of their field. This often tends to be a consequence of declining sales and commissions. The longer this occurs, the harder it is to right the ship. A big reason PM has experienced 29 straight years of growth is that they have never lost field trust or momentum.

A DNA OF INNOVATION

Companies must remain willing and able to make changes to ensure they stay competitive in the marketplace. I often refer to this as having a “DNA of Innovation.” The principles that drive that at PM are: n Taking risks n Staying out of the comfort zone n Learning from failures n Scaling quickly through systemization n Managing change effectively

While other companies have different visions and strategies than PM, there are some lessons on keeping consistent growth that can have value for any company. Many of our success principles are timeless and have been practiced since PM started 29 years ago. Change is the only constant in life, so adjusting to an ever-changing marketplace is the key for any company to ensure they remain relevant and competitive.

IF A COMPANY does not have the resources to invest in growth, that can be a big obstacle to surviving challenging times.

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FASTer Way to Fat Loss

BUILDING A BETTER MODEL

FASTER WAY TO FAT LOSS LIFTS MICRO - INFLUENCERS TO NEW HEIGHTS OF SUCCESS.

WWHEN YOU START OUT in this channel, it’s impossible to predict what those first years will bring. You anticipate that there will be challenges. Unanticipated problems. Unexpected roadblocks. And, of course, you hope that there will be some successes in there, too. But, in the beginning, you just don’t know what you don’t know.

I founded FASTer Way to Fat Loss in January of 2016 with 11 clients, and I am blown away that since that time we have empowered over 252,000 people to transform their lives. Along the way, we have received many accolades—including making the Inc. 500 list four years running.

But it hasn’t always been that way. In May of 2018, I received devastating news. That spring had been a really exciting time. Our certification program was accredited with the biggest organizations in the wellness industry, and we were forming an amazing group of Certified Coaches to help us expand.

But that all changed when our top Certified Coach—someone who had earned over $500,000 in her first year with us; someone I had spent days, weeks and months of time mentoring—decided to start her own business leveraging the strategies, training and tools we had provided.

I felt so many emotions in that moment: sadness, betrayal, confusion. It’s tough when someone you have poured so much time, energy and resources into chooses to leave when you’ve worked so hard to help them to succeed.

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TOP EXECUTIVE / AMANDA TRESS, FOUNDER AND CEO FOUNDED / 2016 CATEGORY / VIRTUAL FITNESS AND NUTRITION CREATING OPPORTUNITY: Transforming a setback into a success story.

TIME TO PIVOT

It was this season, this situation, this pain that prompted me to consider whether or not there could be an additional strategy that would allow me to expand the business beyond just relying on our Certified Coach community, which led me to develop a one-tier micro-influencer marketing model.

Our client journey is very simple. We incorporate intermittent fasting, carb cycling, tracking micros, whole food nutrition and 30-minute workouts. In our new client six-week program, you pay $200 and learn all these strategies to kickstart your wellness journey then transfer to the VIP program where you gain access to even more resources and the opportunity to become a micro-influencer.

You can choose one of two tracks: become a Brand Ambassador for free or a Certified Coach for $5,000. We absolutely love our Certified Coaches and have an incredible community of wellness professionals. We also really appreciate our Ambassadors. When an Ambassador spreads the word about the FASTer Way to Fat Loss, they receive a one-time $50 commission on our six-week program. They often represent multiple brands in addition to ours and use our strategies and marketing to quickly and exponentially increase their followers.

Micro-influencers represent the present and the future. Social media platforms favor them in newsfeeds. You might have noticed this recently— perhaps you follow some big brands on Instagram or Facebook, but you aren’t seeing them in your newsfeed as much as you used to.

What you are seeing more of are smaller content creators. In the past three months alone, we’ve had many Ambassadors or Coaches grow from hundreds of followers to 150,000 followers. We empower our micro-influencers—whether Ambassadors or Coaches—to generate highly qualified leads, and then we do quite a bit of hard work to help convert those leads into paying customers. We give them social media content. We share marketing tips. We have lead generation campaigns that our micro-influencers love to promote.

Recently, we did a Gut and Butt Five Day Challenge. We told our micro-influencers to promote the challenge, which cost $20 in order to receive a 50 percent commission. In these micro-commitment campaigns, we’ve had up to a 27 percent conversion rate. You are simply not going to experience those percentages with paid advertising.

ONE AND DONE

The reason I call this a one-tier model is because not only do we have Ambassadors who work directly with the corporate team to send clients to the six-week program, we also empower our Coaches to bring on their own Brand Ambassadors within their organization.

The Brand Ambassador receives a one-time commission. And frankly—that’s all they care about. They do not worry about recurring or passive revenue. They simply want to share something they love for that one-time commission.

I know it can be intimidating to consider a new model. I reside in Tampa Bay, and we recently had a hurricane come through. I was preparing to evacuate with five kids—it was stressful to say the least. But I had the privilege of preparation. We’ve all seen the reality of where the channel is headed. What used to work no longer resonates. But each of us currently has the privilege of preparation. I encourage you to turn your pain points into purpose as you consider new strategies.

MICROINFLUENCERS represent the present and the future.

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THE PERKS OF BEING A NEWCOMER

HAVING AN OUTSIDER’S VIEW FUELS QYRAL’S SUCCESS.

WWHEN I FOUNDED QYRAL, I had certain ambitions in mind. I’d already built businesses in healthcare and eCommerce, and I knew exactly what I wanted to achieve. I wanted to create something cutting-edge; make a difference; give back to others; and provide a path to success for as many people as possible.

The more I looked into the history of direct sales, the more convinced I became that this channel was prime for disruption and was the obvious solution to empower, educate and elevate others. But I couldn’t ignore the downsides. Coming from the cutthroat world of eCommerce, where everybody is in a race to out-innovate, the technologies and methodologies of direct sales felt old and antiquated. I wanted to try something new, but every idea I suggested was shot down by industry experts.

We already tried. It doesn’t work. You can’t do that.

BREAKING THE MOLD

As a biochemist and entrepreneur, I’m both analytical and creative when it comes to running my business—I don’t like to be told that I can’t do something. Qyral is already the culmination of so many firsts. The first personalized skincare in the social selling space. The first to adjust pH and concentration. The first to partner with telehealth medicine to offer prescription-grade, custom-compounded formulations direct to consumers. But what good was all that innovation if it was trapped in tired, underperforming methodologies?

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TOP EXECUTIVE / HANIEH
FOUNDER AND CEO FOUNDED / 2021 CATEGORY / PERSONALIZED SKINCARE CREATING OPPORTUNITY: Finding inspiration in surprising places.
SIGARI,
Qyral

Disruption happens constantly. You either stay agile enough to innovate or get slow enough to be made obsolete.

Direct selling has been around since the 1930s because it works. I believe that. But when I explored standard training tools for distributors, I felt like so much was missing. New technologies are released all the time. Old ones are constantly evolving. The way we harness these technologies has to evolve, too.

When you’re enmeshed in an industry, it’s sometimes hard to take that step back. So many direct selling companies are founded and led by amazing people who’ve been involved in the business most of their careers. That experience and insight cannot be underestimated, but I believe it also creates blind spots. If you’ve risen through the ranks as a distributor before starting your own business, why wouldn’t you duplicate the sales methods that worked for you?

What I’ve seen is that traditional methods become less effective over time. Layer in regulation, and it starts getting more convoluted. Knowing when and how to innovate is a challenge for every company, but it’s especially difficult when leadership is used to doing things a particular way.

In sales, there will always be rock stars—outliers with natural talent and charisma who can sell water to a fish. I made a conscious decision not to focus on those unicorns. I wanted to help as many people as possible, and that meant creating a system that could be used by anyone.

I found inspiration from franchises. You don’t need to be a rock star to run a successful McDonald’s or Dunkin’ Donuts—those companies have developed sequential, duplicable systems anyone can follow. That’s what I wanted to create. I’d much rather find a hundred coachable people with drive and commitment than sign up a million distributors who barely scrape a profit.

INSIGHT OVER HINDSIGHT

One of the best ways to tap into innovative ideas is to look at newcomers to the industry. Mega corporations struggle to pivot and produce something new. eCommerce killed department stores. Netflix put Blockbuster out of business. Expedia did away with the travel agent. Disruption happens constantly. You either stay agile enough to innovate or get slow enough to be made obsolete.

In Qyral’s early days, I wanted to develop a strategy for selling on third-party marketplaces like Amazon. I was immediately told I couldn’t—selling directly to consumers would alienate distributors and damage the brand. I listened to that advice—and I regret it.

Direct selling brands have to have stores on these marketplaces. Otherwise distributors do it themselves, undercutting retail prices and damaging the integrity of the company and opportunity.

As a consumer, why would I buy through a distributor when I can order on Amazon? As a distributor, why would I concentrate on building a local network when I can list my products on the world’s biggest marketplace?

When established businesses fail to innovate, newcomers don’t hesitate. Distributors saw the potential and immediately filled that gap, leaving companies scrambling to keep up. With hindsight, it was obvious. But industry wisdom was still hung up on old, obsolete business models.

The startup phase is exciting—you’re full of ideas and eager to reinvent how the business works. Most of us lose touch with that as we become embedded in the systems we once wanted to revolutionize.

Direct selling’s superpower is its ability to tap into a steady stream of newcomer insight and innovation. Listen to your distributors—watch what they’re doing on the front lines. You’ll uncover incredible ideas that could empower your field and enrich your company culture. DSN

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For You

Thirty-One Gifts is one of the largest direct North America with over $5 billion in total sales. And now, founder Cindy Monroe shares her secrets to success in this, her first book. Delving into the origins of the business, as well as its ups and downs over the years, Monroe intended for this book to help other business executives and entrepreneurs discover nuggets of inspiration—as well as pitfalls to avoid.

Collaborate Like an Orchestra Conductor

In this fascinating analogy to organizational leadership, orchestra conductor Troy Peters discusses lessons learned from his vocation and how they can help leaders operate and collaborate more effectively. Peters illustrates these lessons with a small group of live musicians who react to various styles of conducting. In this entertaining TEDx Talk, Peters points out key takeaways about leadership and attempts to unleash the maximum potential of each musician on stage—while helping you do the same.

WEBSITE / CEOWORLD

If you aren’t already following CEOWORLD Magazine online, you’re missing out! The website is chock-full of free news, articles and updates that are written specifically for the C-suite, senior executives and other high net-worth individuals. With topics ranging from business to politics, finance to economics and travel to lifestyle, your world is covered in this carefully curated website.

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For Your Field

PODCAST / The Sales Gravy Podcast

As the author of 15 of the most popular books ever written about sales, Jeb Blount also boasts the number one downloaded sales podcast on iTunes. Blount believes that “sales professionals are the elite athletes of the business world” and trains them accordingly. With practical topics like “Why Emotional Intelligence Matters for Sales Leaders,” The Sales Gravy Podcast teaches listeners how to open more doors, close bigger deals and generally master the art of the sale.

SOCIAL MEDIA INFLUENCER / @TheKetoDadLife

Want your field to become experts in social selling? Check out Nick Martinez—an ideal case study on the subject. Martinez joined Prüvit as an independent distributor in 2015. Looking to boost sales, he launched The Keto Dad page on Facebook. Building an online presence as The Keto Dad provided Martinez with a platform to stand out, publish his own content and sell Prüvit products alongside his personal brand. Encourage your field to learn from the master on all things social: strategy, content, brand awareness and sales.

AUDIO BOOK / Mindset:

It is said that “mindset is everything.” Worldrenowned psychologist Carol S. Dweck, Ph.D., categorically proves that to be true in her updated classic, Mindset: The New Psychology of Success. In it, Dr. Dweck illustrates how whether we have a fixed mindset or a growth mindset can determine how successful we become. In this edition, new insights are offered into her now widely accepted concepts. DSN

The New Psychology of Success
Embedding purpose into your business will help it to stand out and align it with customers who have the same values.
—RICHARD BRANSON
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FIGHTING FIELD FATIGUE

As the demographics of those working in the channel continues to shift, how can we keep our field engaged, in touch, enthusiastic and—most importantly— successful?

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What now? Let’s recap.

just a “business as usual” year for all of us. Cruising along, feeling ok about ourselves and tweaking the normal stuff in order to try and grow our businesses.

Then, 2020 happened. March of the year brought panic and uncertainty. How could we ever survive what was happening to us? We questioned everything. Working remotely? All of us? Are you crazy?

But, within a month or so, a funny thing happened. Many of our companies took off. We saw growth we never expected and some of us had never experienced before. It was amazing! Zoom became normal. Supply chain issues happened. But, yet, we thrived. Facebook Live, Instagram, TikTok, WeChat, etc. were all made supremely relevant and part of daily life. We all learned how to connect with people via video, or we thought we did. We learned how to share ideas. We said “you’re on mute” over and over and over again.

Then, while we were patting ourselves on the back and thinking we were smart, mid-2021 happened. The world began to open up. What worked in 2020 was no longer working. But, what worked in 2019 wasn’t working either.

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THE COMPETITION for ways to make money from their home or from their phones has grown dramatically.
2019 was

Reset. Rethink. Revamp. 2022 has been the great reset for many of our companies. Watching the financial reports can be depressing. I know of some companies who doubled (or more) in revenue in 2020 only to see all of that growth (and more) go away by early 2022.

From a corporate perspective, you had to face some major questions and make big decisions. You had to figure out what THIS field wanted. Which version of the business were you going to focus on? Pre-2020, post-2020 or both? Or—should you take the opportunity to make major changes and adjust to this “new world” we are all living in?

Think about it, you sat around conference rooms and never-ending Zoom calls trying to make big decisions that would impact—potentially—thousands of lives.

For our distributors, 2019 was normal, too. They were living life and making enough money and loving your products. Some were satisfied; some were not. But, it was normal. 2020 saw some of these same folks sharing your products and making

THREE KEY TAKEAWAYS

1 / PEOPLE WHO CAME INTO THE CHANNEL DURING THE PANDEMIC NEED HELP

As the world returns to normal, they haven’t learned how to talk to people face to face. They only understand the online portion of the business.

2 / AFFILIATE MODELS OPEN THE OPPORTUNITY TO MORE PEOPLE

Many people that love your products might loathe the idea of building a team. Providing a way for them to earn extra money with your company brings them in.

3 / KEEP IT SIMPLE, STREAMLINED AND STRAIGHTFORWARD

Overly complicated comp plans and business models breed confusion, frustration and a lack of trust in the products, the company and the channel.

more money than they ever dreamed. They were working from home in their pajamas. Some not even leaving their homes. But, they worked. They used the same technologies you did. Often, they did it better and more effectively. In many cases, we learned from them.

By summer of 2021, lives had been changed forever and, by and large, they were done with being on Zoom all day and night. They were tired of being at home. They were ready to go places, do things and live their life in person, in the moment with their family and friends. They were going to hug people, travel, go to restaurants, concerts and sporting events—enjoy a life they had not had in 18 months or more. Their businesses were put on hold. They were over “the hustle” and wanted to enjoy things again.

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Adjusting to a New Normal in Real Time

And, now all those people who came into our businesses in 2020-2021 have no idea how to do the businesses in this more normal world. They didn’t learn how to talk to people about the products face to face. We have often said that “how people are brought in is how they will bring people in”…but they were brought in during a pandemic. How do they adjust to face to face?

Those lives you are impacting—they don’t have conference rooms to sit around in and make big decisions. They don’t have a board of directors to lean on and a support staff or consultants whose job is to research best practices and build new tools and systems. They have families and jobs. They are volunteers who just went through the same ups and downs you did.

On top of that, the competition for ways to make money from their home or from their phones has grown dramatically. Amazon reseller? Great. Easy. How many influencers do you know? Think about it, it wasn’t that long ago that there was no such a thing as “influencers.”

If they have a car and a couple of hours, Uber and Lyft make it simple. Use your phone and drive. The customers are there already. Etsy, Airbnb and so many other options exist, and many of them are currently easier to understand and do.

Through all of that, we still have a large group of people who love our products and our business and many of you are still thriving. Some are just surviving this transition but others are doing just fine.

Ahead of the Learning Curve

After 40+ years in the workforce and over 30 years in this industry, I can say that I’ve learned more in the past three years than at any other time in my life. I’ve watched leaders emerge from the corporate ranks and shine in the face of adversity and change. Others went the other way and didn’t seize the moment. The ones who shined the brightest became beacons of hope and masterful communicators. They provided comfort and motivation to people who were looking for both. The leaders communicated and helped people feel connected, both in the corporate office and in the field. My admiration for those leaders grew exponentially. The world and our industry need more of them.

Today, we find ourselves in a unique place. The old ways are still here and working for some. We also know that people are looking for something that feels right to them. A product and company they trust, even if they don’t want to be overly involved. If they choose to be involved, it’s on their terms and their time now.

More importantly, they want to trust whatever it is they buy and/or share with friends. Often, they may not see themselves as new “business owners,”

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but they do see themselves as someone who would like to make a few extra dollars. I have found some companies who have emphasized to “start your own business” but are now finding an increasing group of people that are interested in being “affiliates” or “influencers.” And, in doing so, make extra money. It’s a slight mental adjustment, but it seems important to note the difference in outlook and perspective.

A New Model for A New Era

At the recent DSA conference in Provo, there was a fairly large group of company leaders who discussed their interest in adding some sort of affiliate model, designed to attract folks who don’t have an interest in joining a direct selling company. A couple of execs at the table have already implemented an affiliate model with their companies. It seems that, to many prospects, the idea of joining a company is not interesting but sharing the product with friends online or in person sounds pretty good.

In the beginning, they may not have an interest in achieving things like “rank advancements” that we have traditionally built our businesses with. However, they like the idea of getting a friend to purchase product and making 20-30-40 percent on the sale.

That makes sense. They can explain it.

But, show them a stairstep breakaway, and their eyes glaze over. That kind of misunderstanding creates some sort of mistrust. It just doesn’t make sense to them. Far too often, direct selling is not simple.

I have had one company executive recently tell me that, in an effort to reengage some of their legacy people, they showed how to share products and make a few dollars. No need to worry about all the other levels in the comp plan—just share and make money. It is easy to show and attract others. You would have thought their field “saw the light.”

You see, over the years, their people were brought in under the premise that success happened by reaching XYZ level in the comp plan, and the way to do that was by recruiting others to reach that same level. That wasn’t working well before 2020 and sure isn’t working now. Sadly, they were not told that getting and keeping customers would also get them there. It’s slower, but it’s also more reliable. Their data shows that new distributors come and go at an embarrassingly fast rate but happy customers stay around a long time. Once their distributors understood that, it changed the game for them.

They are now engaged in product distribution and relieved that the pressure to be on full-time recruiting mode is behind them. Some even said it was refreshing—as if a weight was lifted off their shoulders.

They love the product. They hate recruiting. Yes, they still recruit but they now “Retail to Recruit,” talking with happy customers about how they can benefit by sharing the products, too. It makes sense. It’s simple. It’s organic.

Simple is Hard. But Simple is Successful.

I’m completely fascinated at what the next few years looks like for our industry. The sense I’m getting from a number of executives is the absolute need to simplify. Take away all the elements that cause confusion and—as a result—a lack of trust.

I don’t know that we will all get to the point that our compensation plan can be explained on the front of a 5”x7” piece of paper or short and sweet on a web page—but wouldn’t it be wonderful if we could? Imagine that every person who sees our business understands it quickly and easily. What would that do for your business? For your training? For the trust you are always trying to build?

I’ve said it before, and I will probably say it forever, Simple is Hard, but it’s definitely worth it. People believe what they understand. It’s our job to be great communicators and make more people understand. That principle guided us through the last few years and the ones who get it right will be the real winners of the future. DSN

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PAUL ADAMS has been involved in the direct selling channel for more than 30 years. Over the decades, he has worked with hundreds of companies and been a trusted advisor in boardrooms with countless executive teams. From corporate giants to pre-startup, Paul has helped companies invent, reinvent and solidify their messaging, strategy and execution.

15K+ Unique Downloads and Still Growing Strong

THE DIRECT APPROACH WITH WAYNE MOOREHEAD — CANDID AND INSIGHTFUL CONVERSATIONS ABOUT TODAY’S EVOLVING CHANNEL.

SINCE LAUNCHING in June 2021, The Direct Approach has been providing direct selling executives an in-depth look at the biggest challenges facing the channel—and unique solutions for tackling them.

Wayne and the rest of the DSN Family would like to thank our growing audience and the 40+ executives and guests for their candor and participation.

MEET THE HOST Wayne Moorehead has deep experience in marketing and brand strategy. He has applied his expertise and passion to help companies (from startups to Fortune 100) define, communicate and activate their brands. Wayne’s rare blend of experience and success has shaped his philosophy on effective growth strategies, and he believes the future of the channel will blend the best of direct selling with the best of direct-to-consumer.

[ EPISODE 40 ]

The Power of Collaboration with Garrett McGrath, President of the Association of Network Marketing Professionals

WITH A CAREER in direct selling that spans more than 30 years, Garrett’s a respected leader with a profound understanding of the channel and its needs. He has built field organizations of more than 150,000 distributors in 21 countries and most recently served as CEO and President of a publicly traded network market company.

Wayne and Garrett discuss collaborating with field leaders, creating bespoke onboarding experiences, customer community groups and how to plug into what’s working in social media right now.

[ EPISODE 41 ]

Embracing the Power of Digital Marketing with Amanda Tress, Founder and CEO of The FASTer Way to Fat Loss

AS A CERTIFIED nutrition coach, personal trainer and strength and conditioning coach, Amanda created her own nutrition and fitness strategies and applied her digital marketing background to build a cutting-edge company. Since 2016, her company, an innovative tiered affiliate model, has served more than 250,000 online clients and has landed on the Inc 500 list for four consecutive years.

Amanda shares some of her digital marketing roadmap and strategies in this episode. This is a must-listen if you’re looking to take advantage of the current digital landscape.

[ EPISODE 42 ]

The Opportunities of Disruption with Blake Mallen, President of Prüvit

WITH MORE than 20 years of business and leadership experience, Blake is no stranger to building billion-dollar healthy lifestyle brands. His insights have led to him being featured in many mainstream publications, on nationally syndicated podcasts and on the TED Talk stage.

Blake talks about the changes and opportunities that he sees in the current environment—and what the channel should be doing about them. Don’t miss this forward-looking episode with the insights you need for the new year.

NEVER MISS AN EPISODE —2023 will be another year of insights, tips, takeaways and action items provided by some of the most notable names in the channel. If it’s impacting direct selling, Wayne and his guests will be talking about it on The Direct Approach. New episodes drop every other Thursday—make sure to subscribe!

Subscribe to The Direct Approach today.

Here’s a snapshot look at a few recent episodes!
88 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 FEATURE / WINNING THE LOYALTY GAME CAN’T-MISS DTC STRATEGIES TO BUILD STRONG CUSTOMER RELATIONSHIPS. WINNING THE LOYALTY GAME

Black Rifle Coffee’s coffee match quiz asks visitors about their type of coffee maker; what they put in their coffee; how they like their coffee to taste; if they like light or dark roasts; and how much caffeine they prefer.

TTHE DIRECT-TO-CONSUMER (DTC) BUSINESS

MODEL has evolved to be so much more than selling straight to the customer. Today’s strategies are about building genuine relationships and offering customers more opportunities to connect to their favorite brands.

The DTC model is reshaping the channel with an increased focus on customer gathering, generating helpful content and building a community. And it’s easier than ever with today’s online platforms. “Today’s customers want to connect with brands in a variety of ways,” says an article by eCommerce company Skubana. “If a brand isn’t exactly where customers expect to find them, they’re going to miss out on establishing meaningful relationships.”

Here are a few effective DTC strategies that translate perfectly to the direct selling model.

Give, Give, Give

The DTC channel is so much more than selling, it’s also about communicating directly to customers by educating, offering value, entertaining and problem solving. Building an audience that truly wants to interact with the brand and purchase products is the goal. Customers love to feel as if they are part of building the brand, a core component of the direct selling industry.

This can take place on social media channels, your website, through branded swag, educational emails and live workshops. It’s about giving your customers more than you ask from them and more than they expect. It’s also the underlying theme for the following strategies.

Dynamic Knowledge Hubs

Building a customer base without traditional distribution channels or retail fronts means more efforts toward solving your customers’ problems and answering their questions. Robust online knowledge hubs create a better user experience and make customers feel special. We aren’t talking about a wordy FAQ section— knowledge hubs feature blogs, how-to articles or videos, product tips, recipes, customer-generated content, message boards, searchable help content and more. It’s an interactive place where customers can learn and communicate.

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Knowledge hubs also help reduce customer support traffic. On-page targeted content such as blogs and articles boost SEO rankings and increase relevancy for inquiring potential customers. Don’t think of your website as just an online storefront. Think of it as a community-building hub.

Customized Shopping Experience

Customers want to feel catered to, so providing an overall customized experience can set you apart. DTC companies incorporate strategies such as letting customers build their own product packs and combinations, product match quizzes, branded swag, showing photos of products used in different contexts and the ability to filter online shopping experiences by flavor, color, price, seasonal trends, personal goals and more.

Online product quizzes help reduce drop-off rates, capture visitor contact info and offer product suggestions with a “this can be yours” message. Black Rifle Coffee’s coffee match quiz asks visitors about their type of coffee maker; what they put in their coffee; how they like their coffee to taste; if they like light or dark roasts; and how much caffeine they prefer. Specific roasts are suggested based on their preferences, and many product images are paired with the company’s popular branded swag.

Similarly, Spongelle’s fragrance quiz helps visitors decide the types of fragrances they prefer; the level of exfoliation they need; and how they will use the company’s buffer sponge for their skin. During the quiz, visitors have the option of entering their email for a 25 percent off code.

Flexible payment options are another hot trend to combat customers abandoning their online shopping cart. According to eCommerce company Skubana, roughly 70 percent of online shoppers do not complete their transaction. Buy now/pay later options, installment payments, cryptocurrency options, services such as PayPal and subscription options are popular strategies. According to a study by PipeCandy, by 2023, 75 percent of DTC businesses will offer subscriptions for their customers.

WE’RE LIVE!

SIX REASONS WHY LIVE SELLING WORKS.

1 / ACCESSIBILITY

Going live to your audience is just a few taps away on your mobile phone.

2 / CONVENIENCE

Selling online through live video can happen any time. No store hours, no crowds, no middlemen.

3 / ENTERTAINMENT

Engage and create a fun experience—make it an online party.

4 / RELATABILITY

Genuineness comes through in a live experience.

5

/ COMMUNITY

Sharing stories gives your customers the feeling they are helping to build the brand.

6 / FOMO

Because live selling involves customer interaction, it can create a sense of urgency when customers watch others take action in real time.

Personalization

Building on a customized shopping experience, overall personalization is sharply on the rise. In fact, customers are coming to expect it. A 2022 Salesforce survey found that 73 percent of shoppers expect brands to understand their unique needs and expectations. According to McKinsey & Company, 71 percent of consumers expect companies to deliver personalized interactions. Personalization can range from personalized products, packaging, messaging, loyalty programs, customers surveys, member communities and more.

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Customized packaging can include personal messages, customer names, unique designs or special offer inserts such as birthday discounts. “Customized packaging helps you add a personalized touch which enables you to make an emotional connection with your customer. This leads to brand loyalty and eventually higher revenues,” explained Katana ERP.

Evolving loyalty programs allow customers to track progress and achieve rewards in a gamified experience. Members often have exclusive access to online events, discounts or new product launches. This also helps build a strong brand community customers want to be part of. An Insider Intelligence survey revealed that 88 percent of shoppers feel the experience a brand provides is just as important as its product.

Live Selling

Online live selling has become an increasingly popular way for DTC brands to create a more intimate selling experience with customers. According to Influencer Marketing Hub, live shopping sales may make up 20 percent of all eCommerce sales by 2026, and the livestream eCommerce market is predicted to reach $35 billion in 2024 (three times greater than in 2021). A Statista study found that the average number of people who purchased through live stream commerce rose by 76 percent (compared to pre-pandemic levels).

Facebook, Instagram, TikTok and YouTube all have popular live formats, and chat apps such as WhatsApp are rolling out large group formats that feature video calls. Platforms such as NTWRK and TalkShopLive are specifically designed for video shopping. Live selling allows brands to reach more people at once and meet customer needs. Tommy Hilfiger broadcasted a live selling event in China to 14 million viewers, and it sold out 1,300 hoodies in less than three minutes.

Planned campaigns are important for successful live selling events. The key components include: a relatable influencer, entertainment components, flash sales, product demonstrations and helpful DIY tips. “Fill your calendar with content ideas for each live stream, focusing on themes, products and conversations you’ll have with your audience,” Influencer Marketing Hub recommends. “The more entertaining and engaging your shopping experience, the more likely people will watch.” DSN

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73 %
OF SHOPPERS EXPECT BRANDS TO UNDERSTAND THEIR UNIQUE NEEDS AND EXPECTATIONS.
92 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 COMPANY SPOTLIGHT / NU SKIN

Nu Skin: Transformation Through Disruption

THE DIRECT SALES INDUSTRY has always been evolving, working to serve customers wherever and however they shop, but the pandemic-driven shift to even more online commerce hasn’t been easy for every network marketing company.

While some leaders have clung to “business as usual,” making moderate strides in their online channels, Nu Skin CEO Ryan Napierski believes that this disruption is exactly what the industry needs to thrive.

FOUNDED: 1984

HEADQUARTERS: Provo, UT

TOP EXECUTIVE: Ryan Napierski, CEO

PRODUCTS: Beauty and Personal Care

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NU SKIN /

Heritage vs. Legacy

Nu Skin has been a cornerstone of the beauty and personal care space within the direct sales industry since its inception in 1984. Ahead of its time, the company was founded on the philosophy, “All of the Good, None of the Bad,” striving to offer personal care products with simple, effective ingredients. Nu Skin began expanding outside the United States in 1990 and over the next 32 years grew to serve nearly 50 international markets. After launching its campaign to grow internationally, the company went public in 1996. Nu Skin CEO Ryan Napierski has been with the company in various positions all around the world since 1995, leading nearly three decades of growth and change. His approach to the company’s past, present and future is viewed through two lenses—heritage and legacy

“I always talk about brands having legacy and heritage,” he explained. “We want to keep the heritage, but we want to ditch the legacy in a way. If we talk about the heritage, the things that won’t change, include the mission of our company to be a global force for good by empowering people to improve lives through the products we sell; the opportunity that we provide; and the culture that we have. From the mission perspective, we believe that what we have as a company and frankly as an industry is more relevant today than it ever has been.”

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The question for us is whether we have a clear vision for what we are becoming, rather than focus on what we became.
CEO

Under Napierski’s leadership, Nu Skin is preserving the “heritage” elements of the brand the original mission, product philosophy, business opportunity and purpose-driven culture but it’s taking a hard look at any “legacy” aspects that no longer serve the company’s vision.

“Regarding our legacy, we need to be very, very real,” Napierski shared. “We’ve been on this path for about five or six years now, looking ourselves in the mirror and finding historic legacy practices that gave our industry a bad reputation. When we sit around the table together (with CEOs from the largest direct sellers in the industry), we feel that we’re in our own management meeting. That says a lot for the industry in terms of how we all view the value proposition of direct selling and the value we create for consumers of our products. The feeling of consultants, distributors, independent business owners alike is that we’re all—at least at a macro level—aligned to that kind of purpose driven force for good nature. Those are the things that we’ll pull to the future with us.”

As Nu Skin approaches its 40th anniversary, the company has more than 240,000 global affiliates sharing the company’s lines of beauty, skincare and wellness products, in addition to its award-winning beauty devices.

A Nu Vision

Evolving a deeply rooted business into a new season of growth and success requires a solid strategy. Napierski and his team at Nu Skin are pursuing a transformational plan, Nu Vision 2025

“Nu Vision 2025 is all about how we are repositioning a 38-year-old direct selling company that has some really great capabilities to be even more relevant in the future than it is today, or it was even in the past,” he explained. “Our vision statement has transitioned from becoming the world’s leading direct sales company to becoming the world’s leading integrated beauty and wellness company powered by our dynamic affiliate opportunity platform. That vision statement is critical because as a publicly traded company, we’ve historically been known for our go-to-market channel, which is direct selling rather, than for the products and value that we offer to our customers that is provided by that channel. We felt it really critical to clarify that our vision statement is around the product value we provide to our customers.”

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This roadmap centers around three strategic imperatives:

< EmpowerMe, the company’s personalized beauty and wellness strategy that leverages Nu Skin’s smart and connected devices to gain better consumer insight to create more personalized solutions.

< Affiliate-Powered Social Commerce, an evolved direct selling channel that now includes global affiliate sales.

< A Complete Digital Ecosystem that supports how Nu Skin serves customers and affiliates through technology, including two new apps—one for customers and another for affiliates.

Nu Vision 2025 captures how the company is not only responding but engaging the disruption facing the direct selling industry and preparing for the uncertainty that lies ahead.

“I’m probably most excited about the fact that our industry is in pretty severe disruption,” he shared. “Disruption provides opportunity that static or a stasis environment doesn’t provide. At the same time, there’s anxiety associated with that because disruption can also be a detriment to a business. But I think for companies that have a real strong vision for the future for what we want to become to add greater value to the customers we serve, which are consumers of our products and affiliates that want to build their own beauty and wellness business then the disruption’s exciting because it gives us an opportunity that we wouldn’t otherwise have.”

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Disruption’s exciting because it gives us an opportunity that we wouldn’t otherwise have.
—RYAN NAPIERSKI / CEO

Integrated Beauty and Wellness

The direct sales industry is marked by its personal approach to serving customers, which is why industry leaders feel confident direct sales will continue to grow, even if growth looks like evolution. Direct sellers are no longer competing with their industry peers, but the marketplace at large, which gives the industry an even bigger opportunity to shine.

Nu Skin is intent on outshining all its competitors through integrated beauty and wellness, which has several meanings for the company: the integration of product lines that serve both the inside and outside of the body; integrating input and output as it relates to collecting impactful data from Nu Skin’s connected devices; and integrating the affiliate and customer experience.

“In our unique business, we have affiliates connected to each one of our customers,” Napierski explained. “While consumers may be buying on a website, they are buying at the recommendation of an affiliate and then our own apps help them learn and navigate their own journeys moving forward. That’s a real advantage of direct selling—unlike other beauty brands or wellness brands that are sitting on a store shelf, people can have a direct coach or consultant helping them to understand their specific beauty and wellness needs.”

With a multi-year roadmap of connected devices coming out, new products in development and a solid vision for the future of the company and industry at large, Nu Skin is creating a new legacy.

“I always tell my kids that anxiety and excitement are kind of the same emotion, just perceived differently,” Napierski shared. “I hope companies really view disruption as an opportunity. Yeah, there’s a little anxiety associated, but there’s a lot of excitement if we frame it correctly.” DSN

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Heather Chastain Talks with Cindy Monroe about the Power of Community.

To watch or listen to the entire interview, visit DirectSellingNews.com.

ICONIC INSIGHTS PODCAST / CINDY MONROE
CHASTAIN DSN ICONIC INSIGHTS with HEATHER CHASTAIN
HEATHER

IN THE LATEST EPISODE of Iconic Insights, host Heather Chastain visits with Cindy Monroe, founder of Thirty-One Gifts and author of More Than a Bag: Celebrating the First 20 Years of the Thirty-One Story.

In 2003, Cindy Monroe founded Thirty-One Gifts from her basement. The faith-based company—whose name was inspired by Proverbs 31—offers a unique variety of handbags, totes, duffle bags and more.

The company quickly found success, and in 2014 the Women Presidents’ Organization named it the fastest-growing woman-owned company in the world. Since then, Monroe has continued growing the direct selling company, leading with her values of faith, family and her passion for changing the lives of female entrepreneurs. Along the way, she has been recognized on lists such as Forbes magazine’s Self-Made Women to Watch and Columbus Business First’s 40 under 40 and Fast 50. She has twice been named one of the Most Influential Women in Direct Selling and serves on the board of directors for the Direct Selling Association.

Most recently, she shared her story with the release of her book, More Than a Bag: Celebrating the First 20 Years of the Thirty-One Story. In this interview, Cindy and Heather talk about how her passion for helping other women drove the company’s success, the value of building a strong community and what she would do if she was starting her business today

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It was never about the numbers or the scaling of it for me. It was a true passion for me— helping these families and women
CINDY MONROE

HEATHER CHASTAIN: You have a very unique perspective from most of our guests because you not only have led a business of entrepreneurs, but you’re an entrepreneur yourself. Will you give us just a little bit of background into your journey and what inspired you to start your own business?

CINDY MONROE: Well, I started out as a direct seller and loved that, and I think I kind of got the bug and a little bit of confidence from that experience. Then I definitely started seeing the opportunity within the product element of gift boutiques popping up everywhere and personalized gifts and solutions that we use every single day and how could we shop together. So that was where the idea came from.

I held the first parties. I recruited our first consultants. We held sales meetings in my dining room. It was definitely from the basement days of getting orders out the door and then going out and doing a party that night. That experience definitely helped me learn that you have to follow your passions, and be committed and that it does not happen overnight.

HEATHER: When you first set out on that, did you envision what it would become? Was that your goal or how were you thinking about it to start with?

CINDY: I did not think about it much bigger than what I had. I had imagined working as a sales rep for a company. I felt like, maybe I could build this to a hundred people or 300 people. I just never imagined that it would grow to become the company that it is today. I feel so blessed that I’ve been able to experience so much of that growth and its impact on families.

I never imagined that it would have become what it is, and a household name and to be able to help families with that extra income and the flexibility and the communities and friendships that they have.

It was never about the numbers or the scaling of it for me. It was a true passion for me—helping these families and women.

HEATHER: Would you talk a little bit about how you established that strong community and how important that was? What are some of the things that you did to establish and maintain that— because I think that’s something that people would find helpful?

CINDY: I think that the community piece of it is what sets us apart from any big box or online brand. It gets deeper into our emotions, into our relationships and into the actual needs that we have. I don’t think we always recognize the needs that we have intrinsically to be a part of a community or to have those relationships. So that’s my thinking on why it’s so important. And there is not a lot in our world right now that can go deep as a relationship can.

100 DIRECT SELLING NEWS | JANUARY/FEBRUARY 2023 ICONIC INSIGHTS PODCAST / CINDY MONROE

Read more about Cindy’s book on page 78.

HEATHER: I could not agree with you more, and I think that piece—the extrinsic—is the earn $20 for every $100 purchase. That’s extrinsically motivating stuff. It’s important [because] people aren’t going to do it without the prize, the income, the thing. But what keeps them going day in, day out, week in, week out, hanging with it and striving for more is that intrinsic.

CINDY: That intrinsic is what inspires people. That’s what inspires people to go to book, sell and sponsor. And if that intrinsic is missing and we’re just throwing out incentives and programs, then we’re going to struggle to get that momentum.

HEATHER: We all agree, so how do you do it?

CINDY: Whenever we were first starting out, it was smaller. It’s much easier to do something whenever you are on a small scale because you know their phone number, you know their kids’ names, what city they live in or you’ve met them at their sales meeting or whatnot. And there again, that’s why direct sales has worked; because we allowed our leaders to know those kids’ names, their cell phone numbers, what town they live in, what their mascots are, their high school or whatever else.

So I think that what helps build that community is making sure that we are connecting and not just selling. We did that through connecting, and I was the one that was connecting with our first leaders and connecting with them at our first events.

I think a huge part that so many of our companies do is recognition. When you recognize somebody publicly, you are building a culture of lifting other people up. Communities build whenever you’re serving other people, and you’re loving on other people, and whenever you can celebrate each other. I don’t care if it’s over a Zoom call, a monthly meeting, your big annual event or if you’re at your incentive trip. When you can celebrate each other, there is something positive and intrinsic about how that makes someone feel, and they want to be a part of that community. They want to feel celebrated—not competed against, not pushed away or looked down on.

HEATHER: If you were to start a company today, what business model would you go with?

CINDY: I totally would start a party plan company. I think that I would do it more modern today. We have to have something more intrinsic to feel confident about why we are purchasing from this amazing salesperson. We know her “why”.

There is something special and you and I have experienced it in our own female groups that we have in the industry. I really think that’s the differentiator. We have to figure out how we make it more simple and what the tools are that can support pulling people together. We still have a human need to interact with other people. I think that there are ways that we want to purchase together—that is why the industry has worked for so many years—and we still want to purchase together, but I think that we’re a little bit behind on figuring out the solution of how we do it in our modern-day world. DSN

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The Importance of a Site Visit

This blueprint helps you cover all the bases before your next big event.

AS MUCH AS the direct selling industry is in a state of change, some things are truly timeless. The importance of gathering in person is an integral part of the culture of practically every company in the channel. Making sure your event— whether it is an exotic incentive trip, regional conference or global convention—runs smoothly and creates indelible memories should be a top priority.

Once your company decides to launch your next event, a site visit can be a very helpful next step in the event planning process. A site visit not only allows you to choose the best location for the trip but also to find the right hotel to meet the demographic needs of your attendees.

Timing and Value

Depending on the timing of your event, this process can be done in one visit. Quite often in the direct sales industry, companies will decide on a location and hotel before even visiting—which is fine as long as you are working with an experienced incentive travel and event company that has actually been there and understands the wants and needs of your company and can help you navigate the inevitable bumps in the road you will encounter. If you are planning to go for a follow-up visit after the hotel contract is signed, make sure you include as least three free nights in the negotiation for that final site visit.

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A SITE VISIT not only allows you to choose the best location for the trip but also to find the right hotel.

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FAMILIARIZATION

TRIPS ARE THE BEST WAY to confidently determine the optimal location for your big event—nothing compares to actually experiencing the destination and resorts firsthand.

What is a FAM Trip?

A FAM trip stands for “familiarization trip” and is a benefit of being in the direct sales industry. FAMs are sponsored by travel suppliers, hotels, cruise lines, resorts, third-party travel companies and tourism boards. FAM trips are exclusive experiential trips for direct sales executives, incentive travel, conference or conventions decision makers, directors of events, event personnel and thirdparty travel companies.

Familiarization Trips are the best way to confidently determine the optimal location for your big event—nothing compares to actually experiencing the destination and resorts firsthand. Essentially a FAM trip takes you backstage to experience a location in hopes you return with your company travel incentive, conference or convention. A personal experience is better than any review you could ever read. Experience it, then book it.

TRAVEL LIKE A PRO: THE “DO”S AND “DON’T”S OF FAM TRIPS

Have a good time but remember what you’re there for.

Know as much as possible about the location and hotel products ahead of time. That way, it will make more sense and mean more when you experience it. Plus, you’ll be able to get additional information that could be valuable to you or your future event.

Arrive a few minutes early. Punctuality is important so no other FAM attendees are waiting for you. In your room, requests or complaints about air conditioning, plumbing, etc., should be directed to the appropriate personnel in a diplomatic way, respecting the partnership between you and FAM sponsors.

Use good sense with the people you meet.

You can tell people that you’re a part of the travel industry—but don’t let other guests know that you’re on a FAM trip. Be sociable but always use discretion.

Engage in the kind of travel experience that your attendees will experience. Get an education but think from the standpoint of your potential event attendees.

Take the time to say “thank you.”

Everyone appreciates gratitude when they’ve gone out of their way. Rarely will things be 100 percent to your liking, but it has still been a new travel experience for you. Remember to acknowledge the vendor’s generosity through a verbal “thank you” to staff and crew who have served you well. Don’t forget to thank your housekeeping staff with tips.

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Four Important “Do”s for Your Site Visit

1/ SPEND AT LEAST ONE NIGHT IN EACH OF YOUR TOP CHOICE HOTELS.

You will get a much better feel for the overall hotel experience as a guest than you would on a daytime walk through.

2/ DO A DETAILED WALK THROUGH.

Include each potential event venue, your meeting agenda and on-site activities. This is the perfect time to run a test trial of your event.

3/ LOOK INTO OFF-SITE VENUES FOR AN EXCLUSIVE VIP DINNER.

The right location is key for a successful VIP dinner, so spend time checking out several options, testing their menus, listening to musicians and meeting with the decor team.

4/ TRIAL THE ENTIRE INCENTIVE TRIP FROM START TO FINISH.

If golf is important for this trip, test out the transfer to the course, the greeting, club rentals and cart setup. If you are planning a dine-around, test the food quality and service at each of the restaurants. The more partners and vendors you are able to meet while in town, the better you are in the long run. A thorough site visit to trial an upcoming event can take 3-4 days to narrow down what feels right for your group. You’ll know it when you experience it—trust your gut!

Limit the Surprises

The value and prestige of incentive trips can’t be underestimated—your distributors work hard to earn it and understandably have high expectations for a one-of-a-kind experience. One of the most important things about planning and executing a successful incentive trip is mitigating potential surprises. A detailed and thorough site visit is your best bet to crafting a memorable event for you and for your distributors. Be fully prepared by walking through the entire trip to know where problems could arise and put a plan in place to solve them. DSN

PHILIP COCHRANE has been in the direct selling industry for over 20 years and is the Co - Founder and President of iCentiviz. iCentiviz delivers over 100 years of combined industry experiences with a deep-rooted passion in assisting and supporting direct selling companies’ growth through their travel incentives, conferences and conventions.

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Four Easy Ways to Engage, Inform and Educate Potential Clients

Are

ESTABLISHING A NEED is critical for vendors in the direct selling industry. Potential customers frequently put up their defenses, thinking they don’t need your solution. Maybe their assumptions are due to a misunderstanding or a fear of the unknown. This is where the education of your prospective audience comes in. This process builds value, relationships and—most importantly—TRUST.

Having spent many years in sales, especially in the direct selling industry, I’ve learned that trust and relationships are imperative. I’ve worked with many companies who have never considered using our technology. However, once I have been able to explain its value, they become far more receptive to the message.

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4
WAYS
value your company offers?
you effectively communicating the

SEEING A PROSPECT as a person—not just a number—is a crucial step in developing TRUST.

To be effective in your pitch, you must believe in the solution you are providing. Which is why— as the EVP of Sales at Fortress Trust—I can be wholeheartedly excited and enthusiastic about what we have to offer. I believe and trust in the solution we can provide and the value it offers to the channel. My team’s successful approach has seen:

n An increase in the recruitment of consultants, with a reduction in turnover rates.

n An increase in the lifetime revenue for consultants as well as the parent company.

n An increase in community engagement & social selling.

n The creation of new revenue streams for consultants and the parent company.

Here are four of my best tips for making the same thing happen at your company.

1/ BE FRIENDLY, BE MEMORABLE AND PROVIDE VALUE

When meeting a prospective customer, the goal is to build a relationship with that individual. Ask non-work-related questions and—more importantly—listen, reflect and understand. Invest the time in getting to know them as a whole person. Seeing a prospect as a person—not just a number— is a crucial step in developing TRUST.

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2/ DEBUNK COMMON MYTHS

The chances are, potential customers need some clarification about what you’re selling. For example, Fortress Trust uses Web3 blockchain technology. However, the lack of regulation in the industry has led to some high-profile disasters, most recently FTX and Celsius, where customers have lost their money for good.

The lack of governance and protection for customers against fraudsters potentially driven by greed is a major pain point. However, our company is different—we operate by legal rules that are different from crypto exchanges. It’s important that we clearly and effectively communicate that to our prospects to alleviate any hesitations they might have.

Fortress Trust is a fully regulated company in the United States, overseen by a former banking commissioner, legal experts and trusted custodians. Crypto exchanges currently do not have similar regulation laws. Companies like ours are bound under more intense laws and scrutiny about how we use customers’ funds, similar to the banking industry. When speaking with prospects, we are responsible for ensuring they understand these important differences and regulations and how they can provide crucial peace of mind, eliminating any barriers to purchase.

3/ USE PERSONALIZATION TO YOUR ADVANTAGE

When trying to reach a potential customer, it’s useful to think about ways to make each person feel unique and special. For example, it may be helpful to come up with several use cases of your product that are directly relevant to a prospect’s needs. It’s also advisable to go the extra mile and dig up relevant use cases for your prospective customer.

Preparing unique and engaging sales discussions in advance ensures that your potential customers understand your product and its value. After spending the extra time personalizing a pitch to each potential customer, conversions and drive sales will increase. Customers need and want to feel special. Take steps to ensure that they can recognize that you truly see them and understand their problems and how you can help them. For example, establish a higher return on investment (ROI) than the investment required in your product/solution.

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4/ BECOME AN EVENTS HOST OR PARTICIPANT

When selling a product or service, getting customers emotionally involved is important. A great way to generate excitement is by hosting or attending an event, conference or webinar. These sorts of discussions can be informational and celebratory. Events may discuss future trends, exciting innovations or how to create interesting collaborations in any industry space. A networking environment creates a great space for promoting your product or service. You’ll generate excitement about your business and attract potential customers by meeting sales prospects in an environment that welcomes those kinds of interactions.

Your target market likely attends many conferences, events and webinars. Every industry has its own specialty of meeting places where they can coordinate the best ideas and connect with others. For example, Fortress Trust found great success when we assisted with hosting a VIP after-hours event at Money 2020 in Las Vegas with 450 attendees via an NFT (Non-Fungible Token) invite only. This generated many new sales leads for us as well as substantial data on the attendees. Therefore, it’s important to always appreciate the power of a good event to drum up business.

The

Power of Trust

Trust is essential in any relationship. When you’re able to educate your potential customers about why your product is valuable and how it can benefit them, you’re much more likely to build trust with them. Remember that what potential customers really want is information. By educating your potential customers about how you can help with their specific problems, you’re showing that you understand their needs. Only after you’ve taken the time to educate them should you attempt to make a sale.

Focusing on education first will make you much more likely to gain their trust and close more sales. So, next time you’re approaching a potential customer, keep education at the forefront of your mind, and you’ll be sure to find success. DSN

IAN WISBEY is the Executive Vice President of Sales at Fortress Trust with 25+ years of experience in proven sales and customer engagement. Fortress Trust is an industry leader in compliant financial infrastructure and easy ePayments.

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When you’re able to educate your potential customers about why your product is valuable and how it can benefit them, you’re much more likely to build trust with them.

Education in 2023: Back to Basics

ANEW YEAR IS A FRESH START.

As we learned at Vision 2022, DSA’s Sales and Marketing Conference, direct selling companies are preparing strategies that promise growth and innovation. DSA members are at the forefront of creating transformational eCommerce experiences while maintaining the core values of relationship-based businesses. Many of the most innovative programs were highlighted during the Digital Awards ceremony.

As I think about what’s next for education in 2023, I marvel at how many of the most eyeopening insights emerge from the one-on-one roundtable sessions, virtual and in-person retreats and DSA events. So many have shared how the lessons from these conversations will have a positive effect on their 2023 plans. We certainly heard executives consistently describe a post-pandemic economic normalization that’s akin to the retraction being felt across so many U.S. industries.

But leaders also shared how the Great Recession has revealed new growth possibilities and DSA’s 2022 Growth & Outlook Survey supports these impressions.

Together with Americans’ 70 percent favorable or neutral view of the channel, a broad desire exists for the modest supplemental income opportunities and the increased flexibility that direct selling offers. Talent acquisition and building strategies for expanding our salesforces were repeatedly cited as priorities. Clearly, DSA’s data reveals fertile ground from which to grow.

As DSA shapes its educational initiatives for the coming year, we are heading “back to basics.” Content will build upon members’ investment in their brands, products and research to

Senior Vice President , Education & Meeting Services, DSA

attract a new generation of direct sellers to our modernized channel.

Case studies featuring the channel’s commitment to customer-centricity with a “distributor-first” focus will be presented, and we will also create forums for conversations that seek new ways to safeguard our businesses as issues such as the Business Opportunity Rule, earnings claims guardrails and independent contractor status gain increased prominence among regulatory officials.

To kick off 2023’s learning, the DSA General Counsel and Compliance Officer Retreats are scheduled for January 31–February 1 at Arbonne International’s headquarters in Irvine, CA. We have already received a strong response for speakers and topics for DSA ENGAGE 2023 to be held in Scottsdale, AZ on June 14–16.

In response to popular demand, the virtual DSA Social Media Day will be held once per quarter in 2023, with registration fees waived for all DSA member company executives. The first will be held on everyone’s new luckiest day, Friday, January 13. The Direct Selling Certification Program (DSCP) will continue in 2023, especially since the 300+ 2020 class who were among the channel’s first to go through the program are due to renew their professional certification. Of course, DSA will continue to offer installations of the DSA ENGAGE Webinar Series to share research and other insights among channel executives.

2023 DSA Legal & Regulatory Conference is scheduled for September 21-22 in Washington, DC, and VISION 2024 Sales & Marketing Conference dates will be announced in the coming weeks.

We are looking forward to engaging with you during the coming year! DSN

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#COMMUNITY #STRONGERTOGETHER

SUPPLIER DIRECTORY

SQUIRE

1329 South 800 East Orem, Utah 84097 801-515-0977 squire.com

For nearly 50 years, Squire & Company has provided financial excellence and NetSuite expertise for clients in the Direct Selling industry. We offer personal service, responsiveness, and expertise in all areas.

PAYQUICKER

400 Linden Oaks, Suite 320 Rochester, NY 14625 844-258-3006 payquicker.com

PayQuicker is the leading global payout provider to direct selling organizations. Instantly make secure and compliant payouts to your field in local currency across the globe with our award-winning solution that provides the largest selection of flexible and modern spend options.

MINER GROUP LLC

11905 Sara Road Laredo TX, 78045 956-712-8842 minergroup.net

Miner Group LLC offers solutions for the Mexican Market! For over 30 years, we have helped companies expand to or optimize their operations in Mexico. We offer product and ingredient evaluations, customs clearance, regulatory compliance, label translations, and logistic services for the Mexican market.

I-PAYOUT

540 NE 4th Street

Fort Lauderdale, FL 33301 866-218-4668 discover@i-payout.com i-payout.com

Since 2007 i-payout has been the leading payment choice for pay out and pay in solutions. We pride ourselves on exceptional service paired with integrated and customized solutions.

CP & KRELL GROUP

Keller, TX 817-697-4321 cpkrell.com

Landing a more sophisticated brand of talent takes a more sophisticated recruiting partner.

Bringing 25 years of Direct Sales executivelevel experience from around the world and with a Team speaking 5 languages we know what it looks like to have success in a diverse and international environment. Our goal is to become an extension of your brand.

COMPLETE MERCHANT SOLUTIONS

727 North 1550 East 3rd Floor, Orem, UT 84097 877-267-4324 cmsonline.com

Complete Merchant Solutions (CMS) is a full-service US merchant account provider representing multiple banks. CMS safely and securely supports many types of payment processing for direct selling companies.

LACORE PAYMENT

TECHNOLOGIES

900 Wilmeth Road, McKinney Texas 75069 Info@lacoretechnologies.com lacorepayments.com

LaCore Payment Technologies is a payment platform designed to support direct selling companies globally. Our services include: Global connectivity to 150 countries in 50 currencies, including direct connectivity to most alternative payment types, secure tokenization, customized fraud solutions, including our proprietary Fraudhawk™, advanced reporting tools, and online dispute management.

STRATEGIC CHOICE PARTNERS

2201 Long Prairie Road, Ste. 107-316 Flower Mound, TX 75022 407-891-9265 strategicchoicepartners.com

SCP offers the most holistic consulting services specific to direct selling companies today. We’ve worked with more than 70 companies over the last three years alone, and served more than 250 years collectively in the industry.

METRICS GLOBAL, INC

1160 N. Town Center Drive, Ste. 100 Las Vegas, NV 89144 702-757-9600 metricsglobal.com

We are the industry’s leading payments partner, long-established advocate, and problem-solver. Our unified commerce & payments platform will connect you to a global marketplace, enable your international expansion strategy, and fuel your exponential growth plans. Let us show you how.

Contact Us: info@metricsglobal.com

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PAYMENT SERVICES COMMISSION PAYMENT SERVICES
CLEARANCE, EXPORTS, LOGISTICS ACCOUNTING SOFTWARE/SERVICES CONSULTANTS/MANAGEMENT CREDIT CARD/PAYMENT PROCESSING
COMMISSION
CUSTOMS

NEXIO

727 N 1550 E, 3rd Floor Orem, UT 84097 1-877-551-5504 nexiohub.com

Nexio manages the chaos of payments offering:

• Faster roll out for distributors or partners

• Simplifies payment processing for corporations

Nexio does this by being integrated with the majority of back-office software solutions in the Direct Sales Industry.

DELIVERZEN FULFILLMENT

1551 Corporate Drive Irving, Texas 75038 214-233-6790 deliverzen.com

Deliverzen’s mission is to provide the best service in the order fulfillment industry.

KATAPULT EVENTS

5840 Red Bug Lake Rd, Ste. 140 Winter Springs, FL 32708 407-915-9060 katapultevents.com

Fresh. Exciting. Bold. Your field deserves the best and we help you deliver. Out-of-the-box creative production with experienced show management. We execute on budget and make you look AMAZING!

AMWARE FULFILLMENT

4505 Newpoint Place Lawrenceville, GA 30043 866-888-2999 Sales@amwarelogistics.com amwarelogistics.com

Handle fulfillment for many direct sellers. DSA member with 15 fulfillment centers, nationwide, for 1–2 day ground delivery to 95% of U.S. population. Offer comprehensive B2C fulfillment services, including complex kitting, plus discounted parcel shipping based on our large volume of freight.

GLOBAL ACCESS

2889 Ashton Blvd, Ste. 350 Salt Lake City, UT 84070 877-811-8108 globalaccess.com

International expansion expertise and technology and logistics solutions that grow clients’ businesses and brands around the world.

MULTI IMAGE GROUP

1701 Clint Moore Road Boca Raton, FL 33487 800-523-2682 mig.cc

Founded in 1979, Multi Image Group (MIG) is a women-owned, family-run creative event production company fueled by innovators, strategists, and technologists who craft custom live, hybrid & virtual experiences for some of the world’s biggest brands.

CANADA CARTAGE LOGISTICS SOLUTIONS

1615 Clark Blvd. Brampton, Ontario L6T 4W1 905-564-2115 x2 canadacartage.com/direct-selling

CCLS is your gateway to turn-key e-commerce sales and distribution in Canada. With fulfillment centers across Canada, our pick, pack and ship options, and real-time inventory visibility, we will help your business grow. We are NHP Site Compliant, Health Canada licensed, and GMP Compliant.

LACORE LOGISTICS

900 Wilmeth Road, McKinney Texas 75069 214-817-4802 lacorelogistics.com

LaCore Logistics provides distribution and order fulfillment services. Our highly automated distribution center provides both domestic and international direct-to-consumer shipping solutions. We offer omni-channel fulfillment solutions ranging from marketplace fulfillment for leading marketplaces to businessto-business fulfillment for leading retailers.

HANNA SHEA

844-344-7177 hannashea.com

Since 2007, Hanna Shea Executive Search has been the go-to search firm in support of the direct selling industry. Hanna Shea finds top talent for companies in need of building or improving an executive leadership team for organizational success.

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CREDIT CARD/PAYMENT PROCESSING
DISTRIBUTION/FULFILLMENT/LOGISTICS
RECRUITMENT DISTRIBUTION/FULFILLMENT/LOGISTICS
EVENT PRODUCTION EXECUTIVE

SUPPLIER DIRECTORY

CUSTOM TRAVEL SOLUTIONS

27 S Main St #17

Travelers Rest, SC 29690 864-990-3074 customtravelsolutions.com

Recruit and retain the right people for your organization — We are the world’s largest “white label” travel club builder.

E.A. DION, INC.

33 Franklin McKay Road Attleboro, MA 02703 800-445-1007 eadion.com

Dion’s jewelry solutions are perfect for career path, sales & recruiting, corporate anniversaries and incentive travel recognition awards.

ROYAL CARIBBEAN INTERNATIONAL

1080 Caribbean Way Miami, FL 33132

Royal Caribbean International’s Corporate Sales Team 800-345-7225 (SELECT 2, THEN 1) royalcaribbeanincentives.com

ICONIC SHIPS. EPIC ADVENTURES. ULTIMATE EVENTS.

Royal Caribbean® transforms events into the ultimate productivity paradise. Impress your attendees with epic venues, vibrant restaurants, onboard thrills and beautiful destinations.

INGREDIENTS AND MANUFACTURING

FUTURECEUTICALS

2692 N. State Route 1-17, Momence, IL 60954 888-452-6853 futureceuticals.com

Fruit, vegetable, and grain-based solutions backed with evidence-based, marketable claims.

BYDESIGN TECHNOLOGIES

9503 Princess Palm Avenue Tampa, FL 33619 813-253-2235 bydesign.com

Award-winning social commerce software for affiliate, influencer, MLM, party plan, and social retail companies. Our turnkey back-office solutions include Wayroo, delivering advanced commerce, comment selling, and payment solutions.

MOMENTUM FACTOR

4801 Spicewood Springs Road, Ste. 250, Austin, TX 78759 512.690.2134 momofactor.com

SOFTWARE/TECHNOLOGY SOLUTIONS LEGAL AND COMPLIANCE

Momentum Factor is a leading digital risk management firm specializing in online compliance monitoring and global online reputation management services for the direct selling industry. Our passion and mission are to protect companies from the brand and regulatory risks associated with online and social media technologies.

DIRECTSCALE

1510 N. State St. Orem, Utah 84057 801-701-3285 directscale.com

The most customizable enterprise SaaS platform for managing all aspects of your direct selling, affiliate and influencer marketing business. Edit your comp plan and test it against your live data! From startup to billion dollar company, it automatically scales to meet your needs so you never have to upgrade again.

NOW TECH

5717 Legacy Drive, Suite 250, Plano, TX 75024 310-428-9936 now-tech.com

The most comprehensive and powerful business management solution for direct sellers. We put more than 35 years of industry experience into creating strategies and tools to consistently grow your business. Contact us for a demo today.

EXIGO

1600 Viceroy Dr., Suite 125 Dallas, TX 75235 214-367-9933 exigo.com

The global leader in cloud-based Platformas-a-Service (PaaS) for direct selling companies. An open framework for billiondollar giants to startup companies. Exigo supports MLM, Party Plan and Affiliate models, operating in single global markets.

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FLIGHT COMMERCE

1208 E. Kennedy Blvd., Ste. 222 Tampa, FL 33602 813-277-0625 flightcommerce.com

Global Operations Management Software. Advanced Comp Plan Programming. Sales Force Backoffice & Automation. Web Site Design & Replication.

THATCHER TECHNOLOGY GROUP, LLC

55 Shuman Blvd., Ste. 350 Naperville, IL 60563 866-698-3848 thatchertech.com

Thatcher Technology Group provides Sales Force, Compensation and Incentive Management Software for the Direct Selling Industry.

XIRECT SOFTWARE SOLUTIONS

686 E 110 S Unit 104 American Fork, UT 84003 385-448-1800 xirect.com

Scalable software from startup to enterprise. Your delivery expert in Commissions Calc / Consulting, Replicating Websites, E-Commerce, Reporting, Promotions, Localization, Multi-Currency, and more- The Perfect Cloud-based Direct Selling Software Partner!

INFOTRAX SYSTEMS

1875 S. State Street, Ste. 3000 Orem, UT 84097 801-431-4900 infotraxsys.com

Software & SaaS solutions for startup, emerging, and global direct selling companies. See our ad on the back cover.

JENKON

915 Broadway Street, Ste. 400 Vancouver, WA 98660 360-256-4400 jenkon.com

From Startup to Enterprise, Jenkon provides Direct Selling companies an award-winning, scalable platform unifying the future of direct selling: Openness, connectivity, omni-channel and conversational marketing.

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SOFTWARE/TECHNOLOGY SOLUTIONS Celebrity Cruises 800-722-5934 / CELEBRITYCORPORATEKIT.COM “ DSN has been an incredible partner for us in matching our award winning incentive and meeting opportunities onboard our ships to their talented readers. Direct Selling companies have been finding us for individual incentive awards, group travel and full ship charters due to the great exposure we get from  DSN. —RON GULASKEY / AVP, Global Corporate, Incentive & Charter Sales, Celebrity Cruises SOFTWARE/TECHNOLOGY SOLUTIONS SOFTWARE/TECHNOLOGY SOLUTIONS
Make a Difference in Your Distributors’ First 60 Days by Enabling Integrated Success Systems • Influence Distributor behavior with ‘MyDay’ journeys for customer and distributor acquisition, training, rank advancement, and more! • Strengthen the connection to your field with a direct and instant line of communication via alerts, email blasts, drip funnels, and text. • Empower your Distributors with NOW Commerce tools that accelerate sales and acquire new customers and convert them to ambassadors. Learn more! | www.now-tech.com | info@now-tech.com
PLUG INTO THE POWER OF CHOICE POWER OF CHOICE Take control of your payments strategy Orchestrate payouts to your distributors Optimize your transactions to grow your revenue Maintain flexibility in the ever-changing world of payments Curate your custom direct sales payment strategy Simplifying, optimizing, and scaling our business and yours. Nexio was purpose-built to solve the payment problems direct sellers face. Our unified platform simplifies the complexity of the payments industry and helps you design forward-thinking strategies. We’re excited to announce we are consolidating brands with our parent company, Complete Merchant Solutions (CMS). Consolidating our services under the Nexio brand enables us to simplify processes and optimize the services we provide. nex.io/power

WE’RE LEVELING UP.

Big things are happening at InfoTrax. Let us show you what class leading Commissions integrated with the best in Ecommerce can do for you. What will you accomplish in 2023?

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