W
DSN
DIRECT SELLING NEWS
VOLUME 18 / ISSUE 3
THE
MAKING OF A
BILLION DOLLAR
COMPANY NEXT GEN LEADERSHIP /
HIRE AND RETAIN THE BEST OF GEN Z EMPOWERING WOMEN /
BUILDING ENTREPRENEURIAL OPPORTUNITIES SCENTSY / BILLION DOLLAR
SUCCESS STORY BELLAME / LUXURY BRAND,
LUXURY EXPERIENCE
MARCH 2022
IC
ON
G IN HY LO S RE RIA IG CO M G AY H NI FI T TI EL S O N DB M AN AT K TE S / RS
IC
LISTEN TO THIS. THREE DIFFERENT PODCASTS, EACH DESIGNED FOR THE DIRECT SELLING CHANNEL.
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ICONIC I N S I G H T S with HEATHER CHASTAIN
BIWEEKLY Timely insights and relevant takeaways from executives for executives to help grow and evolve your businesses
SPECIAL EDITIONS Deep dives into the biggest issues and opportunities surrounding the channel
MONTHLY Candid conversations with some of the world’s best-known authors, speakers and innovators sharing their unique insights on entrepreneurship
SU B SCRIB E TO ALL THRE E !
NEW FOR
2022
C O N T E N T S M A R C H
F E AT U R E S
Hire, Build and Retain the Next Generation of Executives B Y J A S O N D O R S E Y
Welcome to the Billion Dollar Club, Scentsy! B Y S A R A H PAU L K
Empowering Women, Enriching Lives B Y L I S A R O B E R T S O N
40
2 0 2 2
66
60 66
SPOTLIGHT
Bellame:
Luxury Brand. Luxury Customer Experience
74
B Y B E T H D O U G L A S S S I LC O X
74
DEPARTMENTS
82
WORKING SM ART /
The Top Six Home Office Recruiting Trends
B Y
88
C A R LO S P E R E Z
ICONIC INSIGHTS /
Gloria Mayfield Banks: Why Recognition Matters
B Y
PAU L A F E L P S
I N EV ERY ISSU E 6 AD INDEX // 9 FROM THE PUBLISHER // 11 INDUSTRY NEWS // 30 FORWARD THINKING // 95 DSA MESSAGE // 96 SUPPLIER DIRECTORY //
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Stuart P. Johnson PUBLISHER
Shelley Rojas EDITOR
COVER STORY
46
THE MAKING OF A BILLION DOLLAR COMPANY
Lisa Robertson editor@directsellingnews.com NE WS EDITOR
Sarah Paulk pr@directsellingnews.com C R E AT I V E D I R E C T O R
Susan Douglass ART DIREC TORS
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Virginia Le COPY EDITOR
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Jerilyn Taylor advertising@directsellingnews.com CONTENT CONTRIBUTORS
Jason Dorsey Joseph N. Mariano Gloria Mayfield Banks
Common practices. Managerial courage. Calculated risk.
Carlos Perez Patricia White
CONTRIBUTORS
Beth Douglass Silcox Paula Felps David Lee
Sarah Paulk Lisa Robertson
CORRECTION
In our January issue, we incorrectly identified Lenny Crotty as an employee of Metrics Global in our Supplier Directory. We sincerely regret the error.
BY BETH DOUGL ASS SILCOX
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Breaking the Billion Dollar Barrier THAT’S THE DREAM FOR SO MANY COMPANIES—direct sellers included. And that’s why this month we decided to take an in-depth look at what it takes to reach that enviable milestone. There are over a dozen companies in direct selling that have reached billion-dollar status—we wanted to know what they had in common and if there were lessons to be learned from their journeys we could share with our readers. We found some pretty surprising (and also not-sosurprising) commonalities in their cultures, operations and structures. I think this is a story every executive in the channel can benefit from—I hope you enjoy it. I also think you’ll find Jason Dorsey’s article on how to hire and attract the next generation of direct selling executives to be full of insights and easy action items as well. Jason is THE expert on generational differences and dynamics. I always find myself nodding my head and taking pages of notes whenever I hear him speak or read his work. I am excited to share he will be a keynote speaker at Direct Selling University April 20 and 21—registration for this free hybrid event is open now at dsu2022.com. In honor of International Women’s Day happening March 8, we examine how direct selling companies are helping aspiring female entrepreneurs around the
world and here at home build a better life. We also take a closer look at newcomer to the billion-dollar club, Scentsy, and check in on Bellame as they share their story of a startup who didn’t just survive but thrived during the pandemic. And check out the excerpt from our second Iconic Insights podcast hosted by social selling thought leader Heather Chastain! Each month, Heather engages with the world’s finest authors, speakers and innovators, exploring how their unique points of view relate to direct selling. This month she chats with Gloria Mayfield Banks on the importance of recognition. Make sure to check out the full episode—as well as the rest of our podcasts at directsellingnews.com or wherever you find your favorite podcasts! As always, DSN strives to be your daily resource for global news impacting the direct selling channel. If you haven’t yet, make sure to 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 text alerts by becoming a member of our VIP community where you’ll always get our top stories first and fast. All the best,
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The Month in News Affecting Our Channel 12 / Expansions 14 / Book of the Month 14 / Digital Momentum 16 / Events 18 / Insights 21 / Top 5 22 / Executive Announcements 28 / CCR Program
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E X P A N S I O N S
R ECENT E XPAN S I O N S EXP REALTY LAUNCHES IN THE DOMINICAN REPUBLIC, GREECE & NEW ZEALAND “We’ve continued to expand globally at a steadfast pace,” said Michael Valdes, President of eXp Global. “There continues to be high demand for what eXp brings to the international real estate market. With the addition of the Dominican Republic, Greece and New Zealand, we continue to solidify our strategic footprint across the EMEA, CALA and APAC regions. The Dominican Republic has, in the last three decades, experienced a period of remarkable economic growth, leading all countries in the Caribbean and Latin America region. Greece is a vibrant market with strong economic projections driven by tourism, excellent foreign investment opportunities and the Greece 2.0 recovery fund. The country is a key component to our growth on the continent, joining the UK, France, Portugal, Italy, Spain and Germany.”
BETTERWARE DE MEXICO EXPANDS NORTH AMERICAN PRESENCE THROUGH ACQUISITION Betterware de Mexico signed a $255 million agreement to acquire 100 percent of JAFRA’s operations within the U.S. and Mexico. Betterware de Mexico stated that this acquisition is expected to add more than $46 million of EBITDA, even before cost synergies, and that JAFRA’s existing EBITDA alone is more than enough to cover the interest expense of the acquisition. “We are excited to announce the acquisition of JAFRA and believe it represents a perfect strategic fit for Betterware,” said Luis G. Campos, Executive Chairman of Betterware’s board. “This acquisition will expand our growth potential as we extend our geographic reach to include North America, strengthen our positioning in Mexico and expand our categories served to include beauty and personal care products.”
JUICE PLUS+ LAUNCHES OPERATIONS IN PORTUGAL Juice Plus+ announced it has opened operations in Portugal and, with this launch, now has a presence in 27 markets globally, serving 200,000 independent sales partners and 1.2 million customers. “Customer expectations during these past two years have changed, evolved and changed again,” said Mattias Mildenborn, Vice President, EMEA Sales Juice Plus+. “Relationships used to be important but today it’s everything; we see how our unique model has never been more relevant. We know that self-employed workers and entrepreneurs already represent around a sixth of the overall working population in Portugal, so we are excited to present a unique new option for them. All you need is a passion for healthy living.”
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D I G I TA L MOMENTUM INDEX TOP 10 OVERALL WEB TRAFFIC FOR 2021 declined as most direct selling companies saw distributor and recruiting interest stabilize after the impact of 2020’s global shutdown. But on social media, the industry made great gains. We’d like to recognize and congratulate the top 10 domestic companies for 2021 from our Digital Momentum Index, which ranks the top direct selling companies by social media and online presence. This annual ranking is a compilation of all four quarters. You can review the full list and see both the domestic and international rankings and analysis at directsellingnews.com.
Book of the Month NEVER EVER GIVE UP
AUTHOR: STAN FREDRICK
DOMESTIC
TOP 10
FOR
2021
1 OPTAVIA 2 SCENTSY 3 COLORSTREET 4 BEACHBODY 5 BEAUTYCOUNTER 6 JAFRA 7 EXP REALTY 8 MODERE 9 RED ASPEN 10 JEUNESSE GLOBAL
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EVER EVER GIVE UP is an inspiring rags‑to‑riches story that gives readers life lessons, philosophies and strategies developed by DSN Legend Stan Fredrick. In this autobiographical memoir, Fredrick reveals how perseverance creates luck; how a short-term goal fuels long-term ones; and how maintaining a servant’s heart contributes to success. This fast, engaging and fun read belongs on the night stand of executives and distributors alike! Fredrick currently serves as Chairman of the Board of Mannatech. He and his wife Judy have five children and 12 grandchildren.
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E V E N T S
EVENTS Plexus offered training workshops on best practices for business growth.
Plexus Worldwide
I
N A HYBRID VERSION of its annual Super Saturday event, Plexus offered training workshops on best practices for business growth, and company founders Tarl Robinson and Alec Clark cast vision for the new year. “Super Saturday is one of my favorite events of the year, as it not only inspires our brand ambassadors but also helps teach attendees how they can grow their businesses and introduce Plexus products to potential customers,” said Alec Clark, President and Founder of Plexus. “It doesn’t matter if the participant is a new brand ambassador or longstanding one, the training reinforces best practices for success and social selling strategies, helping attendees reach new milestones and achieve their personal business goals.”
Vasayo
V
ASAYO’S JANUARY 2022 convention, meant to take place in-person in Dallas, Texas, became a virtual and on‑demand event due to the ongoing complications brought about by the COVID-19 pandemic. The event, themed “Tell Your Story,” empowered representatives to share their own stories as they influence the lives of others Leaning into this theme, the company unveiled a new documentary entitled “Servant Hearts,” which was developed by the company’s philanthropic organization Vasayo’s Hearts & Hands foundation. The film portrays how the foundation’s creation of 110 water wells in Africa has provided clean water to 400,000 people and shared plans to continue supporting hundreds of thousands more people with these ongoing efforts.
PM-International
P
M-INTERNATIONAL AG announced record revenue at its Kick-OFF Europe Event. Surpassing $2 billion in sales for the first time; annual revenue for the company in 2021 increased more than 35 percent over the previous year, posting $2.35 billion. The company also announced record growth within the German market, where the company was founded, with more than 35 percent growth in 2021 compared to 2020. “It took us 26 years to break the billion mark and two years later we exceeded the second billion,” said PM-International Founder and CEO Rolf Sorg. “This year, we are on course for the third billion. My goal is that we celebrate it together at our 30th anniversary in 2023.” The company also presented planned expansions for 2022, sharing that it anticipates opening nine new markets— including China, Indonesia, Hungary, Portugal and Colombia—as well as broadening its footprint on the African continent and investing in its American infrastructure. “We have made 2021 the most successful financial year in our history,” said Patrick Bacher, PM-International’s Chief Sales Officer. “Now we have to implement our motivation and plans for 2022 in order to set the course for an even more successful financial year!”
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I N S I G H T S
For the full articles, visit directsellingnews.com/ category/news/
INSIGHTS 2021: A Look Back and a Look Ahead BY STUART JOHNSON
45%
45%
D I R EC T S EL L I N G
80 RESPONSES OF
CO M PA N I ES
100-COMPANY DATA SET
2 02 1 R E V E N U E
WITH OVER $50M DOMESTIC REVENUE
P E R FO R M A N C E
10%
I
36
8
36
UP
FLAT
DOWN
think we can all agree that 2021 was a challenging year. And now as we look ahead to 2022 and beyond, I wanted to share a brief overview of some of the trends that shaped 2021 and will continue to influence the channel in the months and years to come.
Success Stories
Let’s begin with results from our 2021 growth survey. We sought information from a data set of 100 companies, each with at least $50 Million in domestic revenue. With this version of the survey, we had data points from 80 companies to build our analysis. We all remember the staggering growth in 2020 and determining how much was a COVID bump and how much was a sustainable change in the growth pattern for many companies. Analyzing the data from 80 companies—the data speaks for itself: 36 companies (45%) grew revenue in 2021 over 2020 8 companies (10%) were flat n 36 companies (45%) declined from 2020 to 2021 n n
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As we all know, 2020 was a bit of an anomaly with record-shattering growth stemming from the pandemic. And although growth in 2021 did not keep pace with 2020’s record-breaking year, the channel did grow domestically. While we await the final numbers, I can share that DSA is forecasting 4-7 percent growth domestically. That makes 2021 another record year for direct selling in the U.S. There are some amazing growth stories within the channel that I am excited to share: eXp Realty’s revenue DOUBLED to more than $3.7 Billion for 2021 n PM-International grew over $600 Million to $2.35 Billion revenue for 2021 n OPTAVIA also grew over $600 Million in 2021, reaching over $1.5 Billion and becoming a new member of the Billion Dollar Club n Scentsy joined the Billion Dollar Club, growing more than $100 Million in 2021, after growing $400 Million in 2020 n Betterware de Mexico has grown from $150 Million in 2019 to more than $500 Million in 2021 n Herbalife grew more than $300 Million in 2021 n
Additionally, younger companies including Red Aspen, Body Shop at Home and QuiAri have enjoyed tremendous growth in 2021 and look to continue their momentum in 2022. The easiest way to summarize 2021’s growth trend is that it was a tale of two stories. The first half of the year enjoyed growth, fueled in part by the ongoing pandemic environment and stimulus payments. That growth slowed dramatically in the second half of the year, primarily in companies that failed to capitalize on the COVID-related growth and mistook it for foundational growth. It was also affected by people vacationing much more and stimulus payments going away. December was particularly troublesome for some companies due to the holiday season and the unexpected massive surge in Omicron COVID cases.
Our biggest challenge as a channel remains pivoting from post-pandemic growth due to captive audiences to more sustainable, long-term growth strategies. Our biggest opportunity is in recognizing the need for low-barrier, part-time income is greater than ever before, and we need to double down on that messaging with selling systems for micro-entrepreneurs. DSN
Stuart Johnson has served the direct selling industry for 36 years and is the sole Founder and CEO of Direct Selling News.
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NEWS W AT C H
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HEADLINES > n
DSA Announces Support of FTC’s Efforts to Stop False COVID-19 Product Claims
n
USANA Net Sales for Fiscal 2021 Reach $1.186 Billion
eXp Realty Agents Surpass 75,000
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SUPPORT ANY SIZE COMPANY ANYWHERE IN THE WORLD
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For the full articles, visit directsellingnews.com/ category/news/
EXECUTIVE ANNOUNCEMENTS
Kelly Rich
Anddrew Tan
ASEA Supports Distributor Growth Strategy with Executive Hires ASEA welcomes Kelly Rich as Senior Vice President of Global Sales and Anddrew Tan as General Manager for Malaysia and Singapore. With these executive additions, the company plans to increase its ability to support, partner with and grow its associate field base. “Adding to a diverse and dynamic sales organization, Kelly and Anddrew bring us additional expertise for a changing sales landscape,” said ASEA Chief Revenue Officer Jörg Höche. “They will support our strategic sales vision, implement key strategic company goals and initiatives and align our internal sales teams to position ASEA for continued growth. We are thrilled to welcome them both.” Rich joins the company with more than two decades of experience working within the health and wellness industry and was named Female Executive of the Year at the 2021 Stevie Awards. In her new role with ASEA, Rich will collaborate with the company’s leadership team to create, direct and implement region-specific strategies to achieve the company’s overall vision. Tan brings almost two decades of direct sales experience in Southeast Asia that spans sales, marketing, operations, logistics, general finance and communications. Tan will now oversee the Malaysia and Singapore offices and field associate base, as well as serve as a liaison between the corporate team and the Malaysia and Singapore markets.
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Dana Long Chief Marketing Officer, Ruby Ribbon Ruby Ribbon announced Dana Long has been appointed Chief Marketing Officer. “Dana brings a wealth of global brand and digital marketing expertise that is strategic to the company, as we continue to lead in our rapidly evolving channel,” said Ruby Ribbon CEO Clint McKinlay. “Her career-long commitment to creating empowering growth and income opportunities for women serves as an encouraging reminder to our stylist network that their own success is always achievable.”
Dr. Lili Yang
Deborah Dixon
Kelly Bellerose
Health Science Advisory Board, 4Life Dr. Lili Yang has been named the newest member of the 4Life Health Science Advisory Board (HSAB). A professor of the Department of Nutrition at Sun Yat Sen University (SYSU), Dr. Yang has conducted research at five different universities, published 35 research papers and presented at 13 scientific conferences. Dr. Yang has received numerous honors and awards and is a board member for a number of organizations in the nutrition and medicinal categories. “Dr. Yang is well-suited to help support 4Life Research in continuing to create cutting-edge and superbly researched products,” said Chief Science Officer David Vollmer.
Senior Vice President of Marketing Communications, 4Life 4Life announced that Deborah Dixon, previously Vice President of Marketing Communications, has been promoted to Senior Vice President of Marketing Communications. Dixon will continue to oversee department and field communications, strategic planning and execution of MarCom plans and content owner collaborations. “I’ve worked closely with Deborah for more than ten years,” said 4Life President and CEO Danny Lee. “She approaches every assignment with passion and a commitment to excellence. Her proficiencies aren’t limited to a single category and she continues to prove herself in the world of operations and creativity. It’s great to watch her advance in her career.”
Senior Vice President of Marketing, 4Life 4Life announced it has promoted Kelly Bellerose, formerly Vice President of Marketing, to Senior Vice President of Marketing. Bellerose will continue to lead the company’s product marketing, graphic design, creative writing and video teams. “Kelly is driven, creative and well versed in the disciplines of marketing and management,” said 4Life President and CEO Danny Lee. “She is an inspirational leader and team player. It’s great to announce her as our most recent Senior Vice President.” Bellerose joined 4Life nine years ago and has two decades of experience in the direct selling industry.
inCruises Strengthens Executive Team in Preparation for Growth inCruises International, which celebrates its sixth anniversary this year, announced transitions within its chief executive team as the company prepares for future growth and development: • Kenneth Hernández has been promoted to Chief Technology Officer and has led the company’s technological platforms since its launch. • Anthony Varvaro has been promoted to Chief Financial Officer after leading vital advancement initiatives for the company during the last two years. • Steve Skidgel has been promoted to Chief Commercial Officer. Skidgel joined the company in February 2020 and has been an integral factor in the company’s growth. • Doug Corrigan joins the company as Chief Marketing Officer and brings almost two decades of direct sales industry experience. Hernández, Varvaro, Skidgel and Corrigan now join Chief Legal Officer Bruce Murdock on the inCruises Chief Executive Committee, which is led by Co-CEOs Michael Hutchison and Frank Codina. w w w. d i r e c t s e l l i n g n e w s . c o m 2 3
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E X E C U T I V E
A N N O U N C E M E N T S
Taylor Worre Vice President of Field Development, The Happy Co. The Happy Co. announced that experienced network marketer Taylor Worre will become the company’s new Vice President of Field Development. “With his lifetime of insights, relationships, connections and experiences, Taylor Worre could choose to work and partner with any team–any company–within the network marketing industry,” said Garrett McGrath, CEO of The Happy Co. “Everyone at The Happy Co. couldn’t be happier that he chose us and the worthy work we’re all doing here together that’s making a life-changing difference for so many people around the world.”
Vallen Blackburn Nature’s Sunshine, Vice President and General Manager of Latin America Nature’s Sunshine continues its strategy to drive success within the Latin American market with the promotion of Vallen Blackburn to the role of Vice President and General Manager of Latin America. The company’s Latin American business saw an 18 percent increase over the previous year in local currency. “It is a great time to be a part of the Latin American business,” Blackburn said. “I’m excited to continue executing our transformation strategies to realize the potential we have in this critical region.”
Jeanne Rawdin Global Communications Manager, Kannaway Kannaway, a direct selling subsidiary of Medical Marijuana, Inc., recently hired Jeanne Rawdin to take on the role of Global Communications Manager. Rawdin has previously worked as an on-air reporter, a media advisor and founded her own content production company, Epic Storytelling. Rawdin brings valuable experience in broadcast journalism, marketing, communications and producing to this new role. “We are confident that Jeanne has the skills and expertise to help us improve our internal and external communication and reach more customers this year,” said Kannaway CEO Blake Schroeder.
Simon Bowler UK DSA, Chair The UK Direct Selling Association announced Simon Bowler will become the new Chair of the Board. Bowler succeeds Andy Smith, who served in the role for nine years. Smith will remain on the board. Bowler is currently the Vice President, Global Partner Relations at Juice Plus+. “Direct-to-consumer is the channel to watch in the retail world at the moment, offering greater relevance to a new generation of consumers who are looking for hyper-personalized shopping experiences,” Bowler said. “I am greatly looking forward to working with the DSA team and with member companies.” DSN 2 4 D I R E C T
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Distributor—someone who
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7 Hot Video Marketing Trends for 2022 BY DAVID LEE
Advertisers know the importance of capturing someone’s attention within the first five seconds of a video, which is typically the window of time people decide whether or not to continue watching. Today, people are consuming more and more content that’s 15 to 30 seconds or less. The ability to quickly scroll through these types of videos also keeps users engaged and helps them find the creators and brands they want to follow.
V
IDEO CONTINUES TO DOMINATE ONLINE SOCIAL CONTENT, and the way people consume video is rapidly evolving. Adapting to ever-changing trends is key to growing your brand and building culture with the distributor field and customers. Cisco said that video streaming was on pace to account for 82 percent of total web traffic by 2022. These seven rising trends, relevant to the direct selling industry, are changing the way people consume online content and how they interact with brands.
1/ SHORT IS SWEETER
Cielo 24 predicted that Instagram Reels could overtake TikTok in 2022, noting that Reels receive 22 percent more engagement than regular video content. “Brands that capitalize on this trend will win in 2022,” the article explained. Either way, it certainly signals a sharp rise in short video format. This also reflects the effectiveness of authentic content people trust versus overly produced video that can come across as too “salesy.”
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2/ VERTICAL VIDEOS ARE BECOMING THE NORM
The rise of TikTok, Instagram Reels, Facebook Stories and YouTube Shorts—all vertical formats—have helped change the way many people consume online video content. More than 80 percent of all online videos are viewed with a smartphone, and according to MOVR’s Mobile Overview Report, people hold their phones vertically about 94 percent of the time. AdNews found that 70 percent of millennials don’t flip their mobile devices horizontally when watching videos on mobile. It’s no surprise that vertical video orientation is so sharply on the rise. According to Yans Media, vertical videos have nearly 14 times more visibility on Facebook, and 90 percent more visibility compared to a post with an image. Vertical Snapchat videos are watched to the end nine times more often than horizontal ones. And 90 percent of vertical videos have a higher watch completion rate compared to horizontal counterparts.
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Vertical videos have nearly 14 times more visibility on Facebook, and 90 percent more visibility compared to a post with an image. —YA N S M E D I A
3/ MICRO-INFLUENCERS MIGHT BE THE
SWEET SPOT It wasn’t that long ago that “influencer” meant famous online personalities with hundreds of thousands of loyal followers. Today, brands are discovering that micro-influencers (those with around 10,000 to 50,000 followers) can deliver significantly high engagement rates. Companies partner with these influencers to create authentic content, and short videos can be an effective way to grow the brand and reach niche audiences. This is great news for the direct selling industry that relies on an army of independent contractors to make connections and grow the brand.
A Morning Consult study found that 88 percent of people say it’s important for influencers to be authentic and genuinely care about their interests. Social Bakers reports that micro-influencers deliver a 60 percent increased engagement rate compared to macro-influencers (more than 50,000 followers). According to Forbes, “We have found [microinfluencers] have stronger relationships built on expertise and trust with their followers. A microinfluencer serves more niche audiences and can be beneficial to a brand because they provide access to a small subset of a targeted demographic interested in your business.” w w w. d i r e c t s e l l i n g n e w s . c o m 3 1
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4/ CAPTION IT
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92 percent of viewers watch videos without sound. The key is to add captions. —CIELO24
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Even though video is the hottest online content trend, silent video can still be effective. But the key is to add captions. Cielo24 revealed that 92 percent of viewers watch videos without sound. Creators are now using creative captions with different colors, sizes and animation to grab attention. “Try watching your videos without audio to see if they still make sense without that context,” an article on Sculpt.com suggested. “If they don’t, you likely won’t achieve the same amazing results made possible with good video marketing.” Captioning videos can also help in search engine rankings. For example, when uploading a video on Facebook or YouTube the captions are indexed and used for keywords.
5/ IT’S STORY TIME
Telling compelling stories is still a highly effective marketing strategy, and doing it in video format is the best way to connect to an audience. Social media stories (i.e. Instagram Stories and Facebook Stories) typically string together short video clips and images to create a sequence that only lasts for 24 hours. The limited nature helps drive engagement and in-the-moment interest. Hootsuite shared Instagram Stories has 500 million daily users, with an 80 percent year‑over-year increase in the creation of video posts. Social Insider aliased more than 960,000 Instagram Stories and found that posting up
Telling compelling stories is still a highly effective marketing strategy, and doing it in video format is the best way to connect to an audience.
to five stories per day ensures a retention rate (impressions of the last story divided by the impressions of the first story) of more than 70 percent. Also, major brands doubled their Instagram Story usage from 2020 to 2021. As an example, brands between 10-50K followers have an average posting of 15‑16 Instagram stories per month. Tyler Lessard, the VP of Marketing at Vidyard, shares his four E’s of video storytelling: n Engage:
Driving the viewer to like, comment and share
QUICK SOCIA L VIDE O RATIO GUIDE 16:9 – Full La ndscap e/Horiz 1:2 – N ontal ews Fe ed (Fa c ebook 1:1 – S ) quare 4:5 – V ertical (Instag ram an Facebo d ok) 2:3 – V ertical (Faceb ook On 9:16 – ly) Full Po rtrait/ Vertica l Facebo ok and Instag 4:5 as ram fe pect ra eds: tio, or 1 : 1 Facebo ok and Instag Full scr ram St een 9: ories: 16 ratio , or 4:5 Video carous el form at: 1:1 r atio
n Emotional:
Invoking an emotional response (happy, sad, shocked, etc.)
n Educate:
Providing value to the viewer and helping them process and retain the content
n Empathize: Developing
trust with the viewer through human empathy
6/ COLLABORATE LIVE
Live video collaboration can be a terrific way to reach new audiences and create dynamic interaction with viewers. Live videos also create more authenticity and tend to capture viewer attention three times longer than recorded video. Many social platforms allow accounts to bring viewers on live video to chat or ask questions. Collaborations can include third-party industry trainers or speakers to create engaging and educational events from different voices and perspectives. Live collaborations are great for product demonstrations incorporating different people and different ideas, and you can even give away products or prizes live during the video to encourage engagement.
7/ GO BEHIND THE SCENES
One of the most unique aspects of building a direct selling business is the collaboration between corporate and the distributor field. Pulling back the curtain on operations, product development, philanthropy efforts and field training can be a great way to build culture, attract customers and increase retention. Distributors love to feel included in the overall brand development, and customers love to feel connected to brands they buy from. These videos are also great for providing updates and exciting announcements. Even showing off some of the challenges and vulnerabilities goes a long way in humanizing a company. Incorporating the highestlevel corporate executives even on seemingly smaller issues makes distributors feel important and shows a genuine partnership. DSN w w w. d i r e c t s e l l i n g n e w s . c o m 3 3
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KINDRA HALL
Emcee, Author, Speaker & SUCCESS Chief Storytelling Officer Kindra Hall is the go-to expert for storytelling in business and beyond. She is a soughtafter keynote speaker trusted by global brands to deliver messages that inspire teams and individuals to better communicate the value of their company, their products and their individuality through strategic storytelling. She is the best-selling author of Stories that Stick. Her highly anticipated second book, Choose Your Story, Change Your Life released January 2022. Kindra is the Chief Storytelling Officer at Success Magazine where she shares inspiring, often untold, stories of high achievers in print and on the podcast Success Stories with Kindra Hall.
KEYNOTE
JASON DORSEY
Center for Generational Kinetics, President | Gen Z & Millennials Speaker, Expert & Researcher Jason and his wife, Denise, founded the Center for Generational Kinetics in 2011 that has become the leader in generational research and solutions. With an emphasis on Millennials and Gen Z, the Center is the go-to resource for businesses who are looking to crack the code about the mindset, worldview, and behavior of generations from Baby Boomers to Gen Z. The Center’s research on generations provides powerful and predictive clues that help people and businesses successfully connect, build trust and drive influence.
KEYNOTE & HOST
STUART JOHNSON
Founder & CEO, DSN, NOW Technologies and Direct Selling Partners Stuart has served the direct selling industry for 35+ years as the sole Founder and CEO of Direct Selling Partners (formerly SUCCESS Partners), Direct Selling News and NOW Technologies. His passion for the channel encompasses a broader commitment to build and connect the direct selling community through exclusive industry events such as Direct Selling University and the annual DSN Global Celebration. DIRECT SELLING PARTNERS
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SHELLEY ROJAS Shelley is an experienced multi-medium creative,
Tuesday, April 19, from 7 PM to 10 PM (CT). In-Person attendance is reserved for active corporate
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With 20 years of cross-
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sales, marketing, technology, manufacturing, operations and C-Suite challenges as well as a strong collaborative and relational style of leadership to the table. Heather has
Additional awards and recognition include: •
Bravo Leadership Award
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Lifetime Achievement Award
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Bravo Global Good Award for Meaningful Global Responsibility
held executive roles at Shaklee, Arbonne International, Celebrating Home and
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Customer-Centric Recognition
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HOW TO HIRE, BUILD & RETAIN THE NEXT GENERATION OF DIRECT SELLING EXECUTIVES INVESTING IN EMERGING PROFESSIONAL VOICES NOW IS THE KEY TO FUTURE SUCCESS. BY JASON DORSEY
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This group career shift means we are seeing the
T
most competitive hiring landscape ever.
HERE ARE TWO KEY Q U E S T I O N S that every direct selling
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There is a war on talent out there, so it’s imperative that companies create an environment where people want to work from Day One.
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company should be asking right now: How do we bring new people into the industry? And how do we keep the talent we already have? The past two years have been called the Great Resignation, but I think we should reframe that as the Great Realignment. People have experienced a traumatic, generation-defining pandemic. Most aren’t quitting because they don’t want a job, they’re just switching away from jobs that are no longer the right fit for them. This group career shift means we are seeing the most competitive hiring landscape ever, and one that our data shows requires a different approach than it did before. Young professional applicants don’t just want to get paid well, they also want more scheduling freedom; the space to be creative; better integration of technology; and more emphasis on social causes that matter. What worked for one generation may not be what the next one is looking for. This is a season of values clarification for workers, and it can be an enormous opportunity for us to recruit and invest in the right team members—but only if we’re willing to smartly adapt.
4
4 TIPS Sell the Sizzle and Find Fit Fast
We rigorously tested job descriptions and found that younger generations often don’t read to the bottom of the job description, they often skim the first paragraph to see if it catches their attention and, if not, move on to the next job opening. Capturing attention and interest has to happen in the first paragraph of the job description. Sell the sizzle upfront by placing scheduling flexibility, salary, benefits and social causes in the very first paragraph. When posting that job description, find out where your ideal candidates are and then meet them there. That might mean advertising on Indeed or Ladders; promoting the job opening via professional or college alumni associations; or recognizing that the right hire may not be from within the industry or even very knowledgeable about the industry. Once you find a potential hire, speed is essential. Video interviews are now often viewed as the norm, so don’t get mired in scheduling conflicts while you wait for an in-person meeting. The sooner you can have a conversation, the sooner you can talk with the candidate and determine whether you are the right fit for going further into the recruiting process.
Winning the War on Talent
Something new and pervasive that we’ve found to be true at every level of employment, including leadership positions, is the problem of ghosting. This means that someone is hired for a job, accepts the job, but then they don’t report for their first day of work. We’ve seen this happen from leadership roles to frontline team members. No industry or position seems immune. Ghosting puts tremendous strain on an organization because they’ve gone through the process of preparing for the candidate and adding their talent to the team, yet they no-show or cancel at the last minute. All of this is hard on the team and company doing the hiring.
To Keep Younger Executives Engaged
1 / Communication is critical. The younger a
person, the more frequently they may want to
connect with bosses and colleagues. This doesn’t mean an overwhelming amount of information but rather short messages that drive tangible
engagement, such as a group text or a thread
on Slack. This is even more relevant for hybrid or remote workers.
2 / Assign projects, not just responsibility. Younger people are project- and outcome-driven. Give them the opportunity to show you what they can do.
3 / Create more multigenerational teams. Working with new and different generations keeps people interested and adds valuable diversity of thought.
4 / Highlight progress when you can’t deliver promotions. Younger generations have a higher expectation for frequency of promotions, yet many companies can’t promote quickly. In fact, our research shows that younger adults might even think that if they’re not getting promoted, they’re not moving forward. If you can’t deliver promotions, instead take the time to highlight how that young professional is learning and growing in different, valuable ways between their annual review or raise. w w w. d i r e c t s e l l i n g n e w s . c o m 4 3
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How to Future-Proof Your Business
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Adding younger generations
HROUGH OUR RESEARCH AT THE CENTER FOR GENERATIONAL KINETICS, we’ve proven that generational insights—especially when considered within geographical context—are powerful and predictive clues to faster connect, build trust and drive influence. Understanding generations provides a tremendous head start for leaders in understanding as well as creating empathy for and appreciation of seeing the world through a segment of the population’s eyes. All of us want to feel loved, included, valued and to believe that our work matters, but how we go about pursuing those outcomes can be different, particularly when it comes to different generations and communication, learning, incentives, events and training. Understanding these cross-generational strengths, differences and opportunities can help us future‑proof our businesses. And if we don’t adapt to younger generations, someone else will—full stop.
3
3 HARD TRUTHS ABOUT ATTRACTING MILLENNIALS & GEN Z: 1 / “Mobile first” is no longer good enough, you have to be mobile only. If distributors have to leave their smartphone to complete any task that is part of their business—run an e-commerce store, enroll someone—you’ve just lost a huge number of people.
2 / One-size-fits-all doesn’t work with younger generations;
and, frankly, older generations don’t like it either. Creating deeper personalization that is predictive and knows what customers and distributors need, when they need it, is key. No one should have to go to a big arena rally to learn how to be successful. Great training should be on-demand.
3 / Younger generations expect to be able to earn things
faster. Gen Z and Millennials need to feel like they’re moving forward and don’t automatically connect building loyalty with a willingness to wait a long time for rewards. To them, loyalty should be rewarded even if it’s only their first purchase!
For more insights from Jason Dorsey, listen to his full interview on The Direct Approach podcast.
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of talent to executive meetings and including their voices is the key way to harness that unique viewpoint.
The best solution that we’ve found to combat this problem is text message onboarding. Yes, text message onboarding. Texting the new hire all the way through to their first day, our insights show, drives an increase in the number of people who actually show up for the job. There are a variety of services, like Enboarder, that can automate this for companies at scale; measure the results; and continually provide the insights that leaders need—all by text. This approach can also be wielded to provide a highly personalized welcome that drives engagement on Day One. By automated text, leaders can discover a new employee’s personal preferences and then create a custom welcome experience, like having their favorite snack waiting on their desk when they arrive, or inviting them to lunch with the executive team at the local eatery they said they loved. It might also be sending them a personalized Welcome Package if they’re starting virtually that still makes them feel like part of the team. It’s these sort of “wow” experiences that we want to try to create, particularly as we recruit different generations of executives. These added layers of interaction aren’t something companies have had to focus on before but are now well worth the effort and minimal cost. There is a war on talent out there, so it’s imperative that companies create an environment where people want to work from Day One.
The next generation has a different relationship with technology; a different approach to problem solving; and a different set of social causes and missions that our research has shown is also relevant to other generations. Adding younger generations of talent to executive meetings and including their voices is the key way to harness that unique viewpoint.
Succession Planning Is Key
Empower and Equip
Hiring the right person is not the finish line. In fact, it’s a real risk to companies to not develop people once they are under your company umbrella. We’re big advocates for giving talent their own professional development budget—even if it’s only $100 per year—and empowering them to decide what online courses, training, learning experiences or books they’d like to use to advance their skills, talent and mindset. Beyond that, establishing an actual talent development program is essential. This can be as informal as a quarterly sit-down in a small group with a senior executive that allows young professionals the space to have engaged and constructive conversations or as formal as regular projects that pair junior executives with senior executives to solve a challenge. This crossgenerational format provides a great opportunity for senior staff to identify and engage their next level of talent, while infusing initiatives with the innovation and values that more diversity in age, generation and life stage can provide.
If a company’s entire executive team is within a generation of the CEO, when that person retires, much of the talent around them might be poised to leave, too. Stability is found in making sure the next generation of leaders are not only ready to go but excited to grow the organization. Promoting and preparing younger professional voices is one of the most important ways a company can future-proof itself. Succession planning may not be a hot topic at a leadership or strategy meeting, but it’s absolutely essential for long-term organizational stability, innovation and growth. Ask yourself, when your key leadership retires, will there be an enthusiastic and equipped group of younger executives ready to lead? DSN
JASON DORSEY has become the world’s foremost expert on generational research. He has appeared on 200+ television shows and has headlined events worldwide, sharing his global view of generational differences and helping separate generation myth from truth through data.
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O F
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D O L L A R
C O M PA N Y
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MAKING OF A
BILLION DOLLAR
COMPANY COMMON PRACTICES. MANAGERIAL COURAGE. CALCULATED RISK.
BY BETH DOUGL ASS SILCOX
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A FOUNDER’S BELIEF IN A HERO PRODUCT STARTS A COMPANY ON ITS JOURNEY TOWARD THE BILLION-DOLLAR MARK, THEN IT’S STELLAR DECISION-MAKING AND A DETERMINED FIELD THAT CAN PROPEL THEM INTO MOMENTUM AND TRIPLE DIGIT MULTIMILLIONDOLLAR STATUS. But scaling to a billion or more? What does it take to get there? Is it possible to suss out common denominators that give rise to the birth of a legacy company? What has to change along the way? What doesn’t? There are a several billion-dollar domestic companies in the channel: Ambit, Amway, doTerra, eXp Realty, Forever Living, Herbalife, Melaleuca, Medifast, Nu Skin, Primerica, Rodan + Fields, Scentsy, Tupperware, USANA and Young Living. These questions were top of mind when DSN reached out to a select list of these billion-dollar companies. The idea was to make a common denominator checklist of sorts, gleaned from their responses to questions about their approach to business. We asked about manufacturing, information technology, environmental, social and governance initiatives,
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in-house research and development and the like. Do they consider themselves customer-centric? What do they gain from segmentation? No small surprise—billion-dollar companies have plenty of tangibles in common. After all, these companies are headed by industry leaders, the likes of which identify and promote best practices throughout the broader direct selling industry. No company—billion dollar or otherwise—uses the identical building blocks in precisely the same manner. Here, we aim to highlight the benefits, as these companies see it, to consistently apply best practices in order to meet their corporate goals. We also consider the less tangible and harder to measure corporate and leadership characteristics that billion-dollar companies share and why these attitudes and behaviors are vital for those companies who someday want to claim that billiondollar status themselves.
What Makes a Billion Dollar Company?
It took two decades or more from their founding for several of the participating billion-dollar companies to reach the illusive billion dollars in sales. Scentsy, a newcomer to the list in 2021, found their stride in just 17 (discover more about their journey on page 60). But Rodan + Fields met the mark in an astonishing eight years, simultaneously becoming the number one premium skin care brand in the United States in 2016. No doubt, industry best practices applied over the years pushed them all toward their goals and continue to inform the strategic thinking that keeps them growing. But what else came into play to get them to a billion? We asked Heather Chastain, Founder and CEO of the direct selling consultancy Bridgehead Collective, just that.
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do not put the customer first, the customer will
— H E AT H E R C H A S TA I N / B r i d g e h e a d C o l l e c t i v e
“You don’t see timid companies reach that level. You see bold companies, who take calculated risk, thoughtful risk, mission-minded risk, but risk nonetheless,” Chastain, who has worked in the C-Suite of companies like Shaklee, Arbonne, Celebrating Home and BeautiControl, shared. There’s an immense amount of patience and foresight necessary to scale a direct selling business. It also takes corporate recognition that what earned them their current status may not be what ultimately gets them across the billion-dollar threshold. As Chastain explained, “Too many companies that I see, their pitfall is they stay insular. They think, ‘This is what got us here and it will get us to the next level.’” Chastain helps companies think through marrying innovation and strategy by opening up and engaging management teams to embrace strategic thinking as a daily activity as opposed to a one-time event. Companies, large and small, can weave this kind of day-to-day strategic thinking into their commitment to and application of industry best practices. Billion-dollar companies long ago began this process and have reaped the advantages. So, what are these best practices and how do billion-dollar companies put them to work? SELLING NEWS
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Billion-dollar companies understand if they
You don’t see timid companies that reach that level. You see bold companies, who take calculated risk, thoughtful risk, mission-minded risk.
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simply find a company that does.
Customer Centricity
Billion-dollar companies put customers at the center, whether that’s improving the shopping experience; better understanding wants, needs, goals and motivations; or maximizing data and analytics to help customers make informed choices and their distributors deliver products that excite and satisfy. They understand if they do not put the customer first, the customer will simply find a company that does. “We have a Customer Experience (CX) office led by the C-Suite of the company that manages and socializes customer journeys across our personas, to prioritize and address the top needs of the customer according to the data the team gathers,” explained Ruth Todd, Senior Vice President and Chief Reputation Officer at Nu Skin. That CX team prompts collaboration across Nu Skin’s departments and markets to deliver key customer experiences that drive attraction, connection and retention. Customer need and experience is paramount at every touchpoint, as it helps affiliates attract new customers and grow their customer base.
Global Responsibility
Environmental, social and governance (ESG) initiatives resonate with customers as well, but that’s not the only reason billion-dollar companies embark upon them. Doing good is good for business, and it also helps secure the direct selling business model in the marketplace.
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People, planet and product—those are the areas of ESG focus for billion-dollar companies, who wrap sustainability, charitable giving and social impact into their business strategies and create governance committees at both the board level and internally to assure efforts remain aligned with company core values, vision and goals. “We make no distinction between our Global Responsibility and operating our business: Both are reflected in our long-term growth strategies and our USAGE OF day-to-day activities. We are committed to TAGLINED creating LOGOS positive impacts for our independent distributors, The tagline "AUDIT.TAX.ADVISORY" employees, communities and the planet, while driving only accompanies the logo in circumstances where context requires sustainable business growth,” Herbalife CFO Alex clarification about what Squire can do for current and potential customers Amezquita said. (the audience). The initiatives are plentiful and varied. USANA, in For example, Squire.com and its subsequent pages feature the oneaddition to their efforts to create moreweb sustainable tagline version (HIGHER PERSPECTIVE ONLY) of the Squire products and packaging, has undertaken a large-scale logo because the subpage content information initiative to help employees howadequate to throughout thelearn site provides context to visitors. make the company a more inclusive, equitable and On the other hand, if the team attends sustainable workplace. a national financial trade show where Squire should differentiate itself from a neighboring financial software company, then trade show banners need to include the tagline, “Audit-TaxAdvisory.”
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Manufacturing on-site allows us to remove as many unknown variables as possible, which leads to higher quality products. — J I M B R O W N / U S A NA P r e s i d e n t
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Nu Skin works closely with supply chains, product and facilities teams to do their part to protect the environment, while supplying VitaMeal to the world’s neediest through charity partners. “By working closely with experts on the ground, we have a clearer picture of how we can best help and know that we are making the greatest impact,” explained Todd. So engrained is giving in Scentsy’s culture that since 2010, the Scentsy Family Foundation has donated more than $14.3 million to more than 175 global and local charities that their communities most value. At Rodan + Fields, the company’s charitable arm, Prescription for Change has invested more than $15 million in programs for 1.5 million young people to give them the skills they need to thrive in school, work and life. “Our community of distributors and home office team members are passionate about doing good and giving back. I’m constantly inspired by the various ways they demonstrate our purpose to be life changing by making a positive impact,” said Jessica Raefield, Chief Human Resources Officer. “We also launched an ESG effort in 2019, as well as formulating 2025 Do Good goals that focus energy on the environmental and social commitments most material to stakeholders and their core business strategy,” shared Raefield.
Manufacturing
Segmentation
Member/Customer segmentation offers clear differentiation between people who want to purchase retail products or to build a sales organization and those who simply want discounts on products for their own consumption. Billion‑dollar companies embrace segmentation because it creates the most accurate picture of customer activity, intent and goals, while also improving the company’s ability to communicate and market effectively. Detailed customer segmentation can be used throughout product and program design and development so that a company is crystal clear on a product’s unique value proposition for a target audience. It also informs the creation of compensation plans for companies like Scentsy, who do not attract large numbers of preferred customers. Scentsy distributors, for example, are not compensated on a “wholesale/retail” pricing structure, but rather a commission structure with the opportunity for bonus overrides.
Information Technology
Extensive in-house IT teams, who are called upon to manage diverse components that make up a company’s overall IT infrastructure, are a hallmark of billion-dollar companies. Because these departments have a deep understanding of the company’s values and its business operations, they are often the most effective way to reach IT goals. In-house teams support customization, help develop right-sized efforts and maintain focus. However, to prioritize and meet business needs, some companies reach to trusted IT partners for outside thinking and specialized expertise.
All of our respondents exercise at least some autonomy over the manufacture of their products, either through company-owned and operated manufacturing facilities or those owned by strategic investment arms. Some companies report an estimated 60/40 split between in-house manufacturing and outsourcing. Often the question of in-house manufacturing depends upon the product and where it is sold. “Manufacturing on-site allows us to remove as many unknown variables as possible, which leads to higher quality products. When we are able to oversee virtually every aspect of product manufacturing, we can more easily spot any quality issues and what is causing those issues,” President Jim Brown says of USANA’s wellequipped in-house processes. Herbalife—who maintains two manufacturing sites in the U.S., three abroad and eight quality control labs— began expanding self-manufacturing investments in 2010. According to COO Mark Schissel, investments in research, technology, science, manufacturing facilities and other areas allowed Herbalife to weather many supply chain disruptions and has given the company the ability to develop better and safer products that build consumer trust. It’s a worthwhile investment according to many billion-dollar companies. Just last year Amway announced an investment of more than $50 million over the next five years in the company’s Ada, Michigan-based manufacturing capabilities and footprint. And at Young Living it’s an integral part of the company’s commitment to quality that began with founder D. Gary Young and continues until today. Young always wanted to know where essential oils came from; how the plants were grown and harvested; how the they were extracted; and how they were stored. The company has continued that philosophy by investing in their own farms and developing sourcing and compliance programs that give them an extensive knowledge of their global essential oil supply chain.
Regional Distribution Centers
To better serve a quickly expanding customer base, many of these five billion-dollar companies utilize regional distribution centers. RDCs streamline global shipping, delivery and order fulfillment processes. Herbalife opened its third U.S. regional distribution center in Hagerstown, Maryland in September last w w w. d i r e c t s e l l i n g n e w s . c o m 5 3
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year. Nu Skin utilizes distribution centers and warehouses in many markets, with principal facilities in Provo, Utah and mainland China. By April 2022, Scentsy will have three North American distribution centers.
Research and Development
Billion-dollar companies maintain a collaborative research and development (R&D) philosophy that combines in-house capabilities ranging from staffs of 75 in-house scientists, as is the case with Nu Skin, to co-development research and clinical testing third-party partnerships managed by in-house teams. “Rodan + Fields develops innovative products and proprietary technologies with expertise from many professionals including esteemed doctors, PhDs, R&D experts and strategic partnerships, as well as insight from our very own brand founders, who are esteemed practicing dermatologists themselves,” shared Dr. Sumita Butani, Senior Vice President of R&D and Innovation. “Our breakthrough products begin in a world-class laboratory in Berkeley, California where our team of scientists collaborate.”
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Amway shares a similar philosophy. “We have a global Innovation and Science team of 800 full‑time explorers, engineers, formulators, scientists and other experts who pour their hearts and minds into every product we create,” explained John Parker, Chief Sales Officer and Regional President, West. “Having Innovation and Science as a force internally helps us guarantee scientific excellence at each and every step of the way.” While the activities associated with in-house R&D vary greatly from company to company depending upon their product category, the over-arching effect of in-house teams proves advantageous. They can enhance vertical focus and consumerdriven responses; strengthen resource oversight and control; and reduce time‑to-market. Young Living has an in-house Research and Development department lead by Dr. HK Lin. The greatest advantage to the company is the ability to create an environment to foster the next generation of research and development leaders who will carry out the company’s vision well into the future. “With in-house R&D, it provides us with a tighter connection to product development for greater
“
Extensive in-house IT teams, who are called upon to manage diverse components that make up a company’s overall IT infrastructure, are a hallmark of billion‑dollar companies.
innovation and speed to market. As we listen to our customers, we are able to focus on unique research for developing products that meet their needs, and it gives us the ability to test and gain even more understanding after products launch for ongoing enhancements,” Todd explained. Brown agreed, “Having our R&D team in-house is a great benefit to the company because they understand the full impact of our mission and what we are trying to deliver with our products.”
Public or Private—The Great Debate
Amongst the twelve companies we considered, there is an almost even split between public and private. It’s not surprising because there is no right or wrong answer to whether or not going public is the best course of action. Each path has potential benefits and pitfalls. Private companies face less scrutiny from shareholders and don’t have to release quarterly and annual reports like public companies do. And the process of going public is also lengthy and costly.
But there are considerable benefits to becoming a public company as well. It can mean a huge influx of critically needed cash for a growing company trying to take the next step, which can be used for strategic investments in vital areas such as supply chain, technology and international expansion to name just a few.
Leadership—More Than Checking Off Best Practices
It turns out, best practices, while extremely valuable and essential, are the easiest billion-dollar commonalities to quantify, assess and talk about. They more or less fit nicely onto a checklist, but they represent a fraction of what goes into building a billion-dollar direct selling company. Even if a company applies them in the most advantageous ways, there’s no guarantee they will reach the proverbial pinnacle they are seeking. So what else is in play inside direct selling’s most successful companies? What can aspiring companies and their leadership teams learn from those already on the list? Billion-dollar companies have three commonalities that make a huge difference in their eventual rise: A consistent and relentless focus on their mission; seemingly unending commitment; and managerial courage. “The companies that get to that billion-dollar level often have founders and management teams that walk the walk. They are genuinely invested in the mission of their companies beyond the confines of a job. For them, it’s not a job. It’s a purpose,” Chastain said. These leaders excel at sharing that mission and engaging and enlisting their fields and employees in the mission on a regular basis and absolutely not deviating from that mission even when things get challenging. On-going commitment, even when it’s challenging to stick with an annual or a three-year or five-year strategic plan means these companies are not concentrating on short-term results or quick fixes. They are focused on the long-term objectives and have discipline throughout their organizations. And that takes managerial courage. Chastain encouraged companies to “Take big steps; make bold changes when the market calls for it and when the field calls for it.” (Continued on page 58) w w w. d i r e c t s e l l i n g n e w s . c o m 5 5
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Amway
Herbalife
HEADQUARTERS:
HEADQUARTERS:
Ada, Michigan FOUNDED:
1959
P R O D U C T C AT E G O RY:
Health and wellness H E R O P R O D U C T:
Nutrilite (accounts for more than half of global sales)
ALTHOUGH THERE IS NOTHING cookie cutter
Los Angeles, California FOUNDED:
Nu Skin Enterprises HEADQUARTERS:
Provo, Utah FOUNDED:
1980
1984
P R O D U C T C AT E G O RY:
P R O D U C T C AT E G O RY:
Weight management, sports nutrition, health and wellness H E R O P R O D U C T:
Beauty and wellness H E R O P R O D U C T:
60/40 split in favor of personal care products
#1 brand meal replacement and protein supplements in world
Blake Roney, Sandie Tillotson, Steve Lund
CURRENT LEADERSHIP:
FOUNDER:
CEO Milind Pant
Mark Hughes
CURRENT LEADERSHIP:
HIT BILLION-DOLLAR
CURRENT LEADERSHIP:
FOUNDERS:
President and CEO Ryan Napierski
1980
S TAT U S :
Chairman and CEO John Agwunobi
HIT BILLION-DOLLAR
P R I V AT E LY H E L D
HIT BILLION-DOLLAR
Fiscal year 2004
I NTE R N ATI O N A L M A R K E T S :
S TATU S :
2001
PUBLIC
More than 100 countries and territories worldwide
about these companies, you
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Richard DeVos and Jay Van Andel
FOUNDERS:
Billion Dollar Companies at a Glance
D O L L A R
can see from this checklist
PUBLIC
(HLF: NYSE)
S TATU S :
(NUS: NYSE)
I NTE R N ATI O N A L M A R K E T S :
approximately 50
I NTE R N ATI O N A L M A R K E T S :
95
that there are a few traits and commonalities they COMMONALITIES:
share. Their product lines and origin stories vary
n
widely, but there are many
n
similarities in their business philosophies—we’ve
n
compiled them here.
n
Identifies as Customer Centric In-house Research and Development In-house Manufacturing: Combination
COMMONALITIES: n
n
n
ESG Initiatives n
n
n
Utilizes segmentation: In nearly all key markets Identifies as Customer Centric In-house Research and Development: Combination In-house Manufacturing: 65% of product Utilizes Regional Distribution Centers ESG Initiatives
COMMONALITIES: n
n
n
n
n n
n
Utilizes segmentation: Outside Mainland China Identifies as Customer Centric In-house Research and Development In-house Manufacturing: In Mainland China; Trusted third‑parties elsewhere In-house IT: Combination Utilizes Regional Distribution Centers ESG Initiatives
n Transparent
Communications Priority
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Rodan + Fields
Scentsy
USANA Health Sciences
HEADQUARTERS:
HEADQUARTERS:
Meridian, Idaho
HEADQUARTERS:
Salt Lake City, Utah
Lehi, Utah
FOUNDED:
FOUNDED:
FOUNDED:
FOUNDED:
P R O D U C T C AT E G O RY:
P R O D U C T C AT E G O RY:
San Francisco, California 2002 (retail) 2008 (direct selling) P R O D U C T C AT E G O RY:
Skin care
H E R O P R O D U C T:
Rodan + Fields Core Regimens
FOUNDERS:
2004
Home durable and consumable within home fragrance space
Nutritional supplements, skin care, lifestyle, weight management
H E R O P R O D U C T:
H E R O P R O D U C T:
Scentsy Warmers and Fragranced Wax
Dr. Katie Rodan and Dr. Kathy Fields
Heidi and Orville Thompson
CURRENT LEADERSHIP:
CURRENT LEADERSHIP:
CEO and President Dimitri Haloulos
FOUNDERS:
Dan Orchard, President and Interim CEO
HIT BILLION-DOLLAR
HIT BILLION-DOLLAR
S TAT U S :
S TAT U S :
2016
1992
Fiscal year 2021
USANA CellSentials
FOUNDER:
Dr. Myron Wentz
CURRENT LEADERSHIP:
Young Living HEADQUARTERS:
1994
P R O D U C T C AT E G O RY:
Essential oils and essential oil-infused products H E R O P R O D U C T:
Ningxia, Thieves, Lavender
FOUNDER:
D. Gary Young
CURRENT LEADERSHIP:
Mary Young
CEO and Chairman Kevin Guest
HIT BILLION-DOLLAR
HIT BILLION-DOLLAR
2015
S TATU S :
P R I V AT E LY H E L D
Fiscal year 2016 PUBLIC
S TATU S :
I NTE R N ATI O N A L M A R K E T S :
P R I V AT E LY H E L D
P R I V AT E LY H E L D
(USNA: NYSE)
I NTE R N ATI O N A L M A R K E T S :
I NTE R N ATI O N A L M A R K E T S :
I NTE R N ATI O N A L M A R K E T S :
24
Service and ship globally with markets in North and South America, Europe, Asia and Africa
COMMONALITIES:
COMMONALITIES:
COMMONALITIES:
COMMONALITIES:
4
n
n
Identifies as Customer Centric
5
n
In-house Research and Development
n
In-house IT: Combination
n
ESG Initiatives
n
n
n
n
Utilizes segmentation: To provide crystal clear value proposition for target audience
n n
Identifies as Customer Centric
n
In-house Research and Development: In-house works in tandem with outside partners
n
In-house Manufacturing: For fragrance; not for hard goods. Utilizes Regional Distribution Centers
n
In-house IT
n
ESG Initiatives
n
n n
Utilizes segmentation
n
Identifies as Customer Centric
n
In-house Research and Development
n
In-house Manufacturing
n
ESG Initiatives
In-house Manufacturing: 65% of product
Identifies as Customer Centric In-house Research and Development
Utilizes Regional Distribution Centers In-house IT ESG Initiatives: Employee and associate/customer
n Transparent
Communications Priority
n Transparent
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Too many companies that I see, their pitfall is they stay insular. They think this is what got us here, and it will get us to the next level. — H E AT H E R C H A S TA I N / B r i d g e h e a d C o l l e c t i v e
(Continued from page 55) “Our leadership recognizes the need to be agile and always innovating, backed by the ability to make the necessary decisions for the long-term success of the company,” Todd said. How those decisions get made is infinitely more complex as a company scales toward a billion dollars in sales. Eighty percent of companies in the $500 million range discover in an honest assessment that a CEO or Founder is holding on too tight to too many decisions.
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“To scale, everything can’t continue to come through one single point of contact. That means hands-on Founders, who have grown their businesses to say the $500 million mark, need to make space in the spotlight for others in the organization; relinquish some control; and delegate to trusted hires,” Chastain explained. The organizational structure of the company itself matters little. In fact, billion-dollar companies can have country managers or presidents, global entities or everything can be run through corporate. But the one thing that billion-dollar companies do have in common is autonomy for their department heads, however that’s defined internally. They are trusted and granted latitude to work autonomously. Not carte blanche, but with enough autonomy to effect change in their function. They are trusted, respected leaders who are expected to understand the mission; understand where the company is headed; understand the strategic plan; but they can go execute somewhat freely to deliver what they’ve been hired to deliver. But often, companies pushing toward billiondollar sales goals don’t recognize what’s holding them back. What’s lacking is new energy and a fresh perspective. That can come in the form of a couple new hires or outside consultancies, but the time to search for help is when things are going well. The time to plan for the next wave of growth is during the current wave of growth. “That’s where we can get true radical change,” Chastain said. DSN
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C LU B ,
S C E N T SY !
WELCOME TO THE
BILLION DOLLAR CLUB, SCENTSY! SC E N T SY CAP TIVATED CANDLE LOVE RS WIT H IT S FLAME LES S WA X WARM ER S, BU T IT WAS FOUNDE RS H E ID I & ORV ILLE THO M P SON ’S SERVA N T LE AD E R MIND S E T T H AT CRE AT E D A B I L L I ON- D O LLAR ENTERP RIS E .
BY SARAH PAULK
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D
EFY THE ODDS AND SURVIVE. That was the theme of Scentsy’s earliest days, President and Interim CEO Dan Orchard said. When the company launched in 2004, its founders and co-owners Heidi and Orville Thompson deeply believed in the value of their products—but they were also deeply in debt. A formal bank loan was out of the question, so the couple turned to family and close friends and, with the help of their first independent Scentsy consultants, opened shop from a worn, metal shipping container in the middle of a rural Idaho sheep farm. The company operated like a humble startup that required an “all hands-on deck” commitment. Scentsy consultants worked alongside the small home office team, making sacrifices, collaborating and pitching in when needed, and revenue began to build. Results were modest but encouraging in that first year but a foundational element had been clearly defined for the company. The culture would be interdependent, meaning consultants and home office would rely on each other, and the motto “contribute more than you take” would become a company mantra. Two years later, revenue topped $2 million. “Necessity is the mother of invention, and this was certainly true of Scentsy in the early days,” Orchard said. “While direct selling was entirely new to them, Heidi and Orville saw potential in the power of independent Scentsy consultants personally connecting with their customers and sharing products they had come to love.”
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Hypergrowth Phase 1
Scentsy’s simple concept of flameless, scented wax warmers captivated a unique corner of the fragrance market and quickly gained traction and attention. Customers were drawn to the stylish wax warmers, which also functioned as home décor accessories, and the safer, cleaner option for home fragrance that erased the mess of drippy, sooty, smoky wicked candles. As with every business venture, timing is everything. And Scentsy’s timing was perfect. “Scentsy started to grow when many people were experiencing a financial downturn due to the 2008 economic recession,” Orchard said. “Many households were looking for an additional source of income, and from a customer perspective, even though people were perhaps feeling pinched financially, many were still willing to purchase products that beautifully scented their homes.” Revenue topped $10 million in year three, and the company expanded organically first through local communities, then across the Midwest, to the U.S. coasts and internationally. Scentsy was now in hypergrowth.
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2015 GROWTH IS MODEST BUT CONSISTENT, AND REVENUE BEGINS TO INCREASE AGAIN
Scaling with Simplicity and Generosity
Over the next five years, the company’s revenue would increase by two to five times year-over-year, growing from almost $12 million in 2007 to $560 million in 2012. Scaling systems and operations during this time became the company’s greatest challenge, and company executives and managers were often reassigned to projects that had nothing to do with their official job titles to keep up with the rapid growth. In spite of its enormous operations and systems, Heidi and Orville preserved their entrepreneurial startup approach, maintaining that systems, processes and resources could never be an obstacle for Scentsy consultants interested in building a business. Investments in IT addressed back-office software limitations and internal teams were assembled to develop critical marketing tools and event capabilities for consultants. “When it comes to growing systems and resources, it’s important to keep the business in alignment with the company’s values and culture,” Orchard said. “Scentsy’s approach to scaling our business, especially in the early years, worked extremely well for us because it aligns so well with our core values of Authenticity, Simplicity and Generosity.”
2013 GROWTH STALLS AND THE COMPANY EXPERIENCES A PERIOD OF CORRECTION. REVENUE DECLINES TO $482 MILLION
2014 SCENTSY FINDS THE “BOTTOM” OF THIS CORRECTION PERIOD AND REVENUE TOTALS $419 MILLION
2012 SCENTSY REVENUE REACHES $560 MILLION
2007 SCENTSY HITS THE $10 MILLION MARK, SPARKING THE COMPANY’S FIRST HYPERGROWTH PHASE
2004
2006 REVENUE CLIMBS TO $2.1 MILLION
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Too Big, Too Fast
Hypergrowth, even when executed well, has consequences, and Scentsy found itself in a holding pattern in 2013 and 2014. Revenue stalled or fell during this time as a result of what Orville described as “growing faster than we probably should.” The organization watched as revenue dipped from $560 million in 2012, to $482 million in 2013, and then $419 million in 2014. “For companies that don’t learn to expect and even anticipate it, a dip or decline can be extremely traumatic,” Orchard said. “In Scentsy’s case, Heidi and Orville knew that at some point Scentsy’s period of hypergrowth would end, a correction would come to help us find our natural market value, and then we could set the company on a future trajectory of more modest and healthy growth.” Although it may have been anticipated, these years were not worry-free. Scentsy shifted its efforts to broaden its product line, enter new markets, and initiate key product licensing partnerships to stimulate growth. All the while, Heidi and Orville focused on their role as a stabilizing force for the home office and consultant teams, focusing on the company’s values and keeping the organization aligned with the basics that sparked their initial success. Their efforts resulted in the return of revenue growth in 2015. It was modest but consistent, and over the next four years the company retraced its steps upward, slowly regaining ground. By 2019, revenue totaled $471 million. And then the world shifted.
$1 Billion and Beyond
The year 2020 brought an entirely new set of challenges. Amid the chaos of a global pandemic, shutdowns and supply chain disruptions, Heidi and Orville chose two priorities: Employees needed to be kept safe to allow the
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company to continue to operate, and consultants needed to be in the know. Honest and frequent communication with consultant leaders was a top priority. In response to the company’s transparency, consultants formed a series of grassroots campaigns that helped teams shift their businesses to a remote, digital approach. Consultant engagement increased and customers who found themselves stuck at home for long periods of time began investing in more home fragrance, cleaning and laundry products. The pandemic’s impact ramped up and so did revenue, climbing to $897 million by the end of 2020. Hypergrowth Phase 2 had begun, but Scentsy’s leadership was concerned that its systems, capabilities and product availability were holding consultants back from their full potential. This massive 80 percent jump in revenue forced Scentsy to reevaluate its internal manufacturing process and work with external partners to purchase raw materials. It was a timely lesson that equipped the company for the logistical delays that continue to plague manufacturing and prepared it for two memorable milestones in 2021: The celebration of Scentsy’s one-millionth cumulative consultant and the achievement of $1 billion in revenue.
More than Money
Reaching the billion-dollar mark has created indisputable momentum for the company, but amid the celebration, the leadership is also aware that the coming years will be logistically complex, with an ongoing pandemic, rising inflation and continued uncertainty. “Our approach is to have rigid flexibility,” Orchard said. “We are aiming to be rigid in our planning processes so that we can be agile and flexible when obstacles and challenges come our way.” Lessons learned in the past two years have also helped the company double-down on its core competencies and construct a management plan for riding the waves of extreme growth without hindering its own future success. “While this is certainly an amazing accomplishment for our company, it’s not something that defines us,” Orchard said. “It’s something we can look back on to see how far we have come and something that will help inform our future successes. Our revenue and profits are lag indicators that tell us what’s working well for our consultants and their customers–it’s not a primary driver for why we do what we do. But there is so much more we want to accomplish and recognize—things that to us are more important than revenue. And we’re very much looking forward to what’s coming next.” DSN
L AST YEAR’S BEST PL ACES TO WORK
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DIRECT SELLING IS THE ORIGINAL PEOPLE BUSINESS. Measuring field engagement is critical to any company’s success, but the field is only part of the people equation. Once again, Direct Selling News has partnered with HR technology company Quantum Workplace to celebrate the important role direct selling companies play as employers in the marketplace and to identify the best of the best when it comes to creating engaging work environments. The Best Places to Work in Direct Selling will be featured in a special publication distributed in our April 2022 edition.
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EMPOWERING WOMEN, ENRICHING LIVES DIRECT SELLING COMPANIES PROVIDE HOPE, OPPORTUNITY AND FREEDOM TO WOMEN AROUND THE WORLD AND AROUND THE CORNER.
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BY LISA ROBERTSON
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The Young Living Foundation works with several women-led businesses across the globe, including the Mabira Collective in Lugazi, Uganda who handcraft beautiful jewelry.
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NTERNATIONAL WOMEN’S DAY (IWD) is a global celebration
of the social, economic, cultural and political achievements of women held every March 8. The day also marks a call to action for accelerating women’s equality.
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MPOWERING WOMEN IS AT THE HEART OF IWD—IT’S ALSO AT THE HEART OF DIRECT SELLING, so to celebrate this year’s event, we are taking a look at some of the companies within the channel that use their philanthropic efforts to provide economic support and practical training to help women and girls around the world explore their entrepreneurial dreams and create stable, sustainable lives for themselves and their future. The greatest impact any company can have in advancing women’s economic empowerment is through its core business operations. But they can also make a substantial contribution through their philanthropy programs that enable women and girls to grow as leaders and achieve financial independence. Key areas of philanthropic focus for many companies include initiatives to improve women’s access to education, training, skills development, financial literacy and programs that proactively support women’s health, safety and wellness. It’s a guiding, foundational pillar of the philanthropic endeavors of many companies within the channel, including Young Living, LimeLife by Alcone and Thirty-One Gifts. And it should come as no surprise that each of these companies are led by a female CEO. There has long been a tradition of women helping women in direct selling through philanthropic missions of aiding domestic violence victims, combating food insecurity and funding women’s cancer research among many other worthwhile pursuits. But the companies we are examining today focus—at least in part—on helping women achieve their entrepreneurial dreams with tangible, comprehensive help ranging from funding and training to research and advocacy. They are helping women around the world develop the skills, connections and access they need to secure a brighter future for themselves and their families.
Helping Global Artists
Young Living invests in programs that help female artisans living in challenging socioeconomic conditions build marketable skills; start small businesses; and secure fair wages and ethical work with capacitybuilding grants. They then connect these companies with the Young Living global marketplace through monthly promotional offers. The program not only helps these talented artists sell their goods but also showcases their talents to a global audience. The Young Living Foundation is working with several women-led businesses across the globe, and one of them is a female artisan group called Mabira Collective located in Lugazi, Uganda who handcraft beautiful jewelry. In addition to fair pay, women in the Mabira Collective program receive benefits like school-fee sponsorship for their children and medical benefits as well as training in small business development, literacy and health. They can also receive paid maternity leave, on-site childcare, work-from-home options and opportunities to advance into management positions. Free Women, a U.S.-based group, empowers female artisans with financial independence. Free Women employs women from Afghanistan and other conflict regions who have fled oppression and abusive environments to relocate to Salt Lake City, Utah. As refugees, these women work hard to provide for their children. A series of grants and orders from the Young Living Foundation helped Free Women acquire much-needed work space and equipment to improve their ability to earn an income and obtain job security to become truly free. Research has shown that providing women in economically disadvantaged communities with living wages empowers them to be a financial force of change in both their immediate families and their communities. By achieving the goals of full employment, which include work security, food security, healthcare, childcare and shelter, they’re able to break the generational cycle of poverty. w w w. d i r e c t s e l l i n g n e w s . c o m 6 9
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On the distributor side, once they hit specific benchmarks and rank, LimeLife rewards them with a share in a bonus pool tied to the performance of the fund. As the fund grows, their gifted investment grows as well. Distributors can help promote the selected small businesses through their social media channels to help them gain exposure and continue to grow. It helps the distributors—micro-entrepreneurs in their own right—to make an important shift in mindset: To think like investors focused on their financial future. Qualifying distributors are given their first $5,000 in returns as a pre-distribution. LimeLife CEO Michele Gay explained the strategy. “I encourage them to put it in the stock market or in something that has long-term growth. I’m trying to show them that direct sales is a compounding business, and you can take your earnings from that and further compound it in the financial institutions that we’re so blessed to have access to.” The company has granted funding to three small businesses to date, with plans to add a fourth to the mix in the coming year. To be considered for funding, the businesses selected for the portfolio must meet three or more of the following criteria:
LimeLife provides equity capital to emerging female‑led business like invisaWear which creates
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Funding Females’ Futures
At LimeLife by Alcone, their efforts to help aspiring entrepreneurs are two pronged, simultaneously providing equity capital, coaching and resources to up-and-coming female entrepreneurs while rewarding high performing distributors with an investment opportunity through The Fempire Fund. The fund’s $2 million in capital comes from a contribution from their parent company, L’Occitane en Provence. This capital is then distributed to the selected small businesses. Candidates go through an extensive interview and vetting process (including a panel with selected LimeLife distributors). SELLING NEWS
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Owned and led by a woman Products or services provided by the business help to elevate women’s confidence or women’s income earning potential
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Has a sustainable competitive advantage
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Owner has a compelling story and synergies with LimeLife’s distributor network
The current recipients offer powerful stories of female empowerment, innovative products and are led by women with compelling stories and a contagious passion. Slick Chicks is a female founded and run company that designs accessible undergarments and apparel for people with disabilities, limited mobility, chronic pain, the aging population and people with various
Thirty-One Gifts understands that helping further the cause of female empowerment can (and should) start at a young age.
physical challenges or post-operative needs. Another recipient is invisaWear which creates smart jewelry and accessories with safety tech hidden inside—two clicks alert loved ones and police that the wearer needs help. Finally, The Most develops tech-enabled appliances and products for textured haircare; the company has identified the biggest pain points in natural, textured hair styling and designs tools and appliances that make the process of product application easy.
Helping Girls Shine
Thirty-One Gifts understands that helping further the cause of female empowerment can (and should) start at a young age. That’s why a portion of their charitable efforts revolve around empowering young girls and teens with self‑confidence, leadership skills and peer mentorship. Girls’ self-esteem peaks at age 9, and the company felt compelled to do something about this ongoing confidence crisis. They launched Thirty-One Gives in February of 2012 as a partnership between their distributors, customers and employees to support nonprofit organizations aligned to their mission of helping girls build the confidence and self-esteem needed to live a purposeful life. One such organization is Girl Talk. Girl Talk began in 2002 when one high school girl identified a problem and decided to make a difference. Haley Kilpatrick founded the first Girl Talk Chapter to help her younger sister through the challenging years of middle school. And those years can truly be challenging. Between the ages of 8-14, girls’ confidence levels drop by 31 percent; only 21 percent of girls believe they have the qualities to be a good leader, and between the ages of 12-13, the percentage of girls who say they are not allowed to fail increases by a staggering 150 percent.
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INSPIRING TRAILBLAZERS, R I S K TA K E R S & L E A D E R S DIRECT SELLING HAS ALWAYS BEEN A VIABLE, POPULAR CAREER AND GIG CHOICE FOR WOMEN OF ALL AGES. In fact, a 2020 report from statista.com stated that about 75 percent of distributors are female. It just makes
STUDENTS WHO regularly meet with their mentors are
52% less
likely than their peers to skip a day of school and
37% less likely to
skip a class.
sense: The winning combination of flexibility, community, financial opportunity and personal growth has provided real meaning, direction and impact to generations of women. But direct selling’s opportunity extends far beyond
distributors. From the call center to the C-suite, women are finding meaningful careers in the corporate office of direct selling companies around the globe. We’ve assembled a list of some of the most impressive and impactful CEOs in direct selling—and they all just happen to be women.
Girl Talk provides a safe place for girls to learn and grow and teaches them key components of leadership. Topics covered include stress management, perfectionism, social media, anxiety and financial literacy. For the younger girls, this allows them to develop confidence; transition from middle school to high school more easily; have fun; and gain tools to overcome the everyday obstacles that often seem so daunting at this vulnerable age. The high schoolers can also develop confidence, refine leadership skills, focus on community service and have scholarship opportunities. And it’s making a difference. Students who regularly meet with their mentors are 52 percent less likely than their peers to skip a day of school and 37 percent less likely to skip a class. There are over 485 chapters of Girl Talk in 10 countries and 48 U.S. states serving 70,000 girls. While it’s important to celebrate and acknowledge the achievements of women on International Women’s Day, it’s clear that there is much to celebrate every day when it comes to direct selling’s ongoing ability and effectiveness at empowering women of all ages. DSN
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MELISSA THOMPSON / Bellame CHANIDA PURANAPUTRA / ByDzyne AMELIA WARREN / Epicure WENDY LEWIS / Jeunesse NANCY BOGART / Jordan Essentials STUART KRONAUGE / Juice Plus+ MICHELE GAY / LimeLife by Alcone ASMA ISHAQ / Modere KENDRA BRASSFIELD / NeoLife DEBORAH K. HEISZ / Neora KRIS ADAMS / Norwex MISTY KIRBY / Paparazzi LYNNE COTÉ / Princess House MALOU CALUZA / QNET JESSE MCKINNEY / Red Aspen HEIDI THOMPSON / Scentsy SARAH SHADONIX / Scout & Cellar CARA BROOK / Seint JONI ROGERS-KANTE / SeneGence PATTY PEARCY / Simply Fun LORI BUSH / Solvasa JILL BLASHACK STRAHAN / Tastefully Simple CAMELLE KENT / Thirty-One Gifts JANE EDWARDS CREED / WineShop at Home MARY YOUNG / Young Living ERIN BRADLEY / ZYIA Active
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Bellame: Luxury Brand, Luxury Customer Experience Startup Crosses the Cumulative $20 Million Threshold. BY BETH DOUGL ASS SILCOX
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ATHERED AROUND A TABLE in Napa with a bottle of wine, her husband, mom and step-
father, Melissa Thompson dreamed out loud.
FOUNDED:
She recalled “It was like being a kid with a
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HEADQUARTERS:
I’d love to do.”
Fort Worth, TX TOP EXECUTIVES:
Melissa and Scott Thompson PRODUCTS:
Beauty, Nutrition, Personal Care
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We are the only tribe or brand in direct selling to be truly created by an audience before we had a customer or a partner. — M E L I S SA T H O M P S O N
With little kids in the 1990s, Melissa fell in love with direct selling. Her career came of age at Avon with John Fleming as her boss and she learned from the finest at Belcorp, Shaklee and Stella and Dot. Husband, Scott, who owns a successful, Inc. 500-listed tech company, called her Goldilocks because she sat in all the chairs, but kept searching for better—new and creative ways of doing the job. By the time they’d sipped Napa Valley’s finest dry, Melissa’s daydream had garnered a life of its own and in that intimate setting Bellame was born.
Getting Started in Earnest
As the couple blended their worlds of business expertise, hers in social selling and his in tech— specifically, internet marketing—their aim was a slow grow giving Scott the time he needed to run his company and some leisure travel time together. But they would soon find, Bellame wouldn’t wait.
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The success of Melissa’s initial Facebook blog foreshadowed how ready the world was for a brand like Bellame. She put herself out there talking about being a mom to three kids, entrepreneurship, life and beauty without any of today’s social media polish. “I asked moms and people in the industry what they loved about social selling, what they didn’t love about it. I asked raw questions. ‘Consumers, what do you love about your personal care products?’ I really just wanted to know,” she said. In the months after, Melissa attracted 100,000 followers and built a perfect Bellame blueprint with their commentary. “It was a beautiful thing. I like to say, ‘I didn’t create Bellame. It was a group of people.’ We are the only tribe or brand in direct selling to be truly created by an audience before we had a customer or a partner,” she explained. Scott educated himself about direct selling’s legal and operational aspects, while Melissa searched for product formulators who could deliver luxury, not a “me too” product line. Lab after lab, jar after jar gave way to some funny misunderstandings. FYI: Glowing skin does not equate to glitter as an ingredient!
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“You know when it’s your own money and your own life savings, you’re just very careful with how you spend everything,” Melissa said. It took nine months to develop Bellame’s core four skin care products including a luxurious, bamboo washcloth with which they soft launched in March 2018. “Just like we do today, it was all very raw and real,” she remembered. They expected to grow to 500 partners and had high hopes for 1,000 before the end of 2018, but lightning struck when one of Melissa’s videos went viral. They hard launched in August with only part of their digital platform ready and by October sold out of product. At year’s end, Bellame had 7,500 partners.
Tipping Direct Selling’s Status Quo
In the 3 ½ years since, Bellame has attracted 25,000 partners by focusing on what people want from products, policies and their company as a whole. They’ve questioned direct selling’s status quo, normalized transparency, instituted easy two-way field communication, shed negativity associated with potentially being scammed and—above all else—embraced the positivity superb customer experience generates. Today, Bellame lists more than 150 SKUs, each created with input and names chosen by the field. At any time, Melissa can Skype chat with her top three leadership groups. “If something is wrong or something happens, I know about it within seconds. I believe the partners feel truly part of building this brand,” she said.
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They judge everything not just by the field’s desire for it, but also for how it rates on the luxury meter including customer service. As such, Bellame’s customer service is fashioned after non-industry experts like StitchFix and Apple. She’s also strayed from direct selling’s conventional wisdom about auto replenishment and compensation plans, opting instead to focus on providing stellar customer experience and rewards for new users and an ever-growing affiliate generation. She asked, why must customers wait 60 days before getting an auto replenishment perk? “We don’t live in that kind of world anymore. We live in an ‘I want it now and I want my reward now’ world. We live in the Amazon world, where you can just click something and get it delivered and return it with ease.” So Bellame tips the status quo and allows auto replenishment with no wait time for rewards. Cancel the next day, Melissa doesn’t care. She figures being scammed shouldn’t be the biggest worry. The real loss is that someone won’t try Bellame at all. Not only does Bellame’s auto replenish allow customers to cancel at any time, but they also even email customers five days ahead to make changes or cancel with just a click. They offer a full 45- day money back guarantee and yet Bellame has “ridiculously low” return rates, Melissa shared.
We make it easy for our customers–it’s always about the experience. — M E L I S SA T H O M P S O N
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Startup During Pandemic
“We make it very easy on our customers because it’s always about the experience. But also from a financial standpoint, I realize now more than ever that it costs a lot more to do a lot of those things that safeguard or protect you against people who do it for the wrong reasons than it does to just provide the customer with the best experience from the beginning.” Bellame’s new compensation plan also reflects her willingness to modernize industry tradition for today’s field. Giant pie-in the-sky rewards for top levels never sat well with Melissa, especially without adequately compensating the teams below them. “Something that always stuck with me was what I learned back in the day from the building blocks of the original Avon: The representative is the heart of the brand,” she said. Often, representatives aren’t the demographic companies reach with their compensation plan designs. But Bellame is different. It’s built for that affiliate generation and new user. “Sure, you have to reward your top leaders, but I think the meat of where your money goes really needs to be that section in the middle—the worker bees—the people coming in and building because that’s going to help your top leaders, just like really good customer service is going to help your partners. It all connects together,” Melissa explained.
Pandemic challenges may have hit a bit harder for startups like Bellame. For instance, the morning they lost shipping capabilities due to essential worker designations. “I wanted to cry because this was people’s livelihoods,” she said. Fortunately, what they perceived as an indefinite halt came back online thanks to rules clarifications hours later. But in some ways, being an agile startup was a blessing, and she is certain that Bellame’s technology struggles in 2018 were too. Some wives get flowers from their husbands, But not Melissa. “I got a tech team of ten to build our very own proprietary platform and back office.” It wasn’t quite complete at launch, which required work-arounds; a great deal of math manually calculating compensation; and some tears. But all that stress was worth it because during the pandemic, it saved Bellame. They were able to make changes on the fly, stretch incentives and even devise a Buy One, Give One campaign that allowed people to sign up and gift the business to someone else. Because they own their own platform, Bellame didn’t have to fret about larger companies ahead of them in customer service lines or mounting user fees. “It would have killed us had we not had our own platform,” Melissa said. Instead, Bellame comes out of these pandemic times running a 50 percent December increase over last year. In fact, they just crossed the $20 million threshold for total company sales since launch. “It’s been amazing. I thought COVID would put an end to us, but every time there is an obstacle I continue to be amazed,” she said. Bellame isn’t trying to be the biggest company right now, but they’ve set sights on building a legacy brand. They launched a new collagen product, as well as nutrition and baby lines. A cause marketing campaign associated with Bellame Baby’s popular bamboo wash cloths and towels is underway to benefit Children’s Hospitals charities. Amid all of it, this 51-year-old Latina is proud to be building her company and brand in a way that shows it is more than just a corporation. At Bellame, Brand Partners see themselves and feel proud that together they have put $12 million of “milk on the table” as Melissa passionately calls it—real money for real people, and an opportunity to make a beautiful difference in the lives of so many. DSN w w w. d i r e c t s e l l i n g n e w s . c o m 79
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HE LAST TWO YEARS have changed everything. From conflict and civil unrest to the global pandemic, restrictions on businesses and supply chain problems, the global workplace looks vastly different than it did in early 2020. Shifts in our work environments and the hiring landscape are happening at lightning speed, and it’s important for your organization to shift as well. In order to obtain and retain the best people for your company, be mindful of these six recruiting and hiring trends.
1 / There Are Not Enough Employees to Fill Demand
According to a 2022 Cappfinity survey, there are currently over 11 million job openings in the United States. U.S. Department of Labor data shows that more than 4.5 million people left their jobs in November 2021, up from 4.2 million the previous month. These are the highest numbers in over 20 years. In fact, the talent shortage is so widespread that it has been called “The Great Resignation.” Workers are taking advantage of the intense competition and using it as an opportunity to seek better pay, hours and benefits. At the same time, Robert Half research shows that two in three U.S. companies plan to expand their teams in the first half of 2022. How is your company competing? What are jobseekers looking for?
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55% are increasing salaries 50% are offering remote options and evaluating candidates outside their geographical area
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31% are loosening education, skills or experience requirements
These options give today’s professionals more negotiating power, so employers “must move quickly and create a positive candidate experience from the initial contact to the job offer,” explained Robert Half Senior Executive Director, Paul McDonald. This is a good time to implement remote-friendly recruiting strategies to gain an advantage when competing for top talent. Research shows that more than half of professionals are interested in fully remote positions, so make the process remotefriendly from Day One. If you’re looking to expand beyond your traditional geographical area, it’s crucial to partner with a staffing firm like CP & Krell Group, which has a global footprint. Firms like this can leverage their extensive talent network to save you time and money. .
2 / Culture Is a Priority for Employees
A company’s culture and core values are more important than ever. The Cappfinity survey shows that 80 percent of job seekers want to understand a company’s culture before they accept an offer. Revisit your company’s core values and analyze how the culture of your company is being demonstrated by employees and leaders alike. Imbue the interview process with references to and examples of your company’s culture; be bold and share with candidates the ways you implement your core values in the workplace. Today’s employees focus on ideals like teamwork, togetherness and collaboration and look to company leadership to exemplify these values in obvious ways. This is a new era of hiring that requires a candidate-first approach. w w w. d i r e c t s e l l i n g n e w s . c o m 8 3
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Be bold and share with candidates the ways you implement your core values in the workplace.
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Successful companies in the 2020s are engaging their users in new ways. Add value to your organization by adding talented team members who understand how to be successful in an omnichannel environment. An omnichannel approach engages users, customers and teams by giving access to products, offers and support services across all channels, platforms and devices. Companies like Disney, Sephora and Starbucks market, sell and interact with their customers not only in retail spaces but through apps and websites, designing an interactive customer experience no matter how the customer reaches out. Each channel is connected, with real-time updates, allowing for seamless transitions. Instead of offering support only through your website, for example, are you reaching your customers through Facebook messenger, live chat features on your app or via email? When you hire talent familiar with these methods, you’ll increase your reach, your profits and your customer satisfaction. .
4 / Drug Test Regulations Are Changing
With global talent shortages reaching a 15-year high, many companies have recognized that some things need to change. For many, that means eliminating barriers to hiring, such as educational requirements or marijuana drug tests. The Great Resignation has become an advantage for workers but has left many employers in a difficult position. Crippling staff shortages mean companies may need to reconsider their drug use policies. Of course, not all employers are willing to make these changes, and there are valid reasons to be concerned about lowering these standards. How will this affect job performance, safety and liability? What is the potential for impairment? Many states have changed their legislation regarding marijuana use, so it’s important to stay current on the laws in your state as well as in other states or countries where you may have applicants or employees.
5 / Diversity Is No Longer a Novelty in the Business World
In a 2019 survey, 71 percent of employees in the U.S., U.K., Germany and France said their companies employed a diverse workforce. This statistic leaves plenty of room for improvement, but the trend toward embracing diversity and inclusion will continue to impact global recruiting practices in the years ahead. People from different backgrounds and cultures bring new perspectives to the company, and research shows that diverse teams are better at solving complex problems; have more innovative ideas; and make better decisions. A global survey of employees in 2020 found that 90 percent of employees who work for a “diverse” company report higher levels of happiness, inclusion and trust. If your team feels a little too homogenous, it’s time to widen your net. It’s important to recruit and develop inclusive leaders at every level of your company. By leveraging recruiting firms with a global reach, such as CP & Krell Group, you’ll have access to candidates from around the world who are ahead of the curve on innovation but also represent a wide array of viewpoints, cultures and experience. .
6 / Remote Work Is Here to Stay
Who would have ever thought that we would spend so much time talking to each other through our computers? Just a couple of years ago, this type of work was definitely not the norm, but it looks as though at least a hybrid of in-person and remote work is here to stay. More than one-third of companies say they are willing to hire remote workers from anywhere in the world, and 60 percent of applicants are seeking flexibility in when and where they work. In 2022, offering choices that allow employees to maintain their work/life balance is more important than ever. This is a good time to evaluate the types of benefits or perks that make your company special. Present remote opportunities and the culture of collaboration that exists at your company when interviewing and meeting with candidates. If your company is looking to expand your team this year, keep these six recruiting trends in mind and take some time to look at the ways your company is perceived, presented and promoted to potential employees. By seeking out the best talent; focusing on culture and diversity; providing omnichannel experiences (and finding team members who understand their importance); keeping new regulations in mind; and offering flexibility with remote work, you can overcome the shifts in the global workplace. DSN
With nearly 25 years of experience in executive corporate roles for iconic direct sales companies, CARLOS PEREZ, Managing Partner of The CP & KRELL Group, leverages his unparalleled insight to connect the best and most relevant professionals with your organization. The CP & KRELL Group is a Global Executive Search firm and an affiliate of MRINetwork.
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DSN’S NEWEST PODCAST:
ICONIC INSIGHTS HOSTED BY HEATHER CHASTAIN
The ICONIC INSIGHTS podcast goes one-on-one with some of the world’s best-known authors, speakers and innovators 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 T O D AY !
SUBSCRIBE TODAY to learn from guests John C. Maxwell, Suze Orman, Jay Shetty, Les Brown, Gloria Mayfield Banks, Kindra Hall and more!
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ICONIC I N S I G H T S with HEATHER CHASTAIN H E AT H E R C H A S TA I N
Heather Chastain Talks with Gloria Mayfield
Banks about the Power of Recognition and the Rise of Entrepreneurism. BY PAUL A FELPS
To watch or listen to the entire interview, visit DirectSellingNews.com.
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ACH MONTH ON DSN’S NEWEST PODCAST, ICONIC INSIGHTS, social‑selling thought leader Heather Chastain talks with one of the leading minds in today’s business world. This month, Heather talks with global speaker, coach and author Gloria Mayfield Banks, who last year retired from a record‑breaking 33‑year career with Mary Kay, where she was the company’s top earner. Gloria had already earned her MBA from Harvard Business School and was a highly paid executive when a friend invited her to attend a Mary Kay meeting. That evening changed the trajectory not only of her life, but the lives of countless people she has mentored, coached and inspired over the years. She explains that while she got into direct selling because she wanted to increase her income, she fell in love with it because of the recognition. HEATHER CHASTAIN: That’s so important to hear. We say all the time that people stay for recognition; how important recognition is; and what a value that brings.
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Teach people how to treat you so that you can manage your time and they can manage theirs.
GLORIA MAYFIELD BANKS: It made a major difference for me. You don’t necessarily realize it at the time, but when you look back, I tell people, “I had no clue I needed friends.” I was so head-down in my career and head-down in providing for my family. I wasn’t thinking about w w w. d i r e c t s e l l i n g n e w s . c o m 8 9
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having friends. I wasn’t thinking about a positive environment. I wasn’t thinking about role models. But the recognition piqued my interest so hard, and then the competition made me personally grow. That was where the personal growth, the desire for personal growth, was sparked over and over and over again. HEATHER: And you rose to the top—you were number one. GLORIA: Right. There were 3.5 million women in Mary Kay in over 40 countries, and I rose to number one, especially in the North America market, which at the time was the biggest market for us. And our markets work together, so the recognition that I would receive at home, I also received internationally, so it was big. HEATHER: It gave you that visibility to a bigger stage. And that all led you to writing your book, Quantum Leaps: 10 Steps to Help You Soar. I love that you wrote it through the lens of a direct selling leader, an entrepreneur. If you look at it and you read it with an idea of sort of a broader umbrella— anybody who’s trying to succeed, quite frankly, running your own business or being an executive in a business—there’s a lot of commonalities around those things.
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GLORIA: We need to understand that direct selling really is entrepreneurship. I’ve done a lot training with women that work within companies and men that work within companies that want to take their life and their career to a higher level. It has a great umbrella, but you’re right. Because my lens after 33 years was in the lens of direct selling, but it started in a baseline of entrepreneurship. HEATHER: Those things that led to your success— there’s a timelessness to many of them, but what, in your point of view, has changed the most in the last four or five years? And I’m not even really talking COVID stuff. That’s some of it, of course, because that changed our environment, but what is, in your mind, the thing that’s changing the most? GLORIA: No I go to the area that I call Gloria STEM Program: I call it skill management, time management, emotional management and money management. Those four things to me are really powerful when people have to change or when people get frustrated. I tell leaders all the time, “If someone walks in your office and they’re frustrated, you stop and you ask them, ‘Which category does this fall under? Are you lacking in your skill? Are you lacking in the ability to manage your time effectively? Is it
emotional? Are you being emotional, or is it the emotional management of others that you have to master? Or is it your financial situation? Which one of those is it?’” I think that what has happened in our current situation, even over the last three years—and then bam, you put COVID on top of that—is people’s ability to acknowledge their frustration; acknowledge that they have to be different strategically; and embrace the opportunity for strategy instead of saying that it is a dredge-like, “Ugh, I hate to change.” It’s like, “Woo, I get to change!”
GLORIA’S BOOK, Quantum Leaps: 10 Steps to Help you Soar, offers stories and advice to give you security and belief that you can achieve more. To learn more about Gloria and her book, visit gloriamayfieldbanks.com.
HEATHER: I would imagine there’s a series of questions you could probably ask even without being quite so overt to suss it out. “Is this a skilled challenge that I need to address?” And that will change how I’m working with you versus time, versus financial, versus emotional. w w w. d i r e c t s e l l i n g n e w s . c o m 9 1
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GLORIA: It helps them identify, not just that they’re frustrated, but why they’re frustrated, and there’s something that can be done about their frustration. One of the things that we always work to master is retention. How do I hold this person to the next point, to the next mountain to climb, to the next level of frustration or disappointment that they have to go through? To me, it narrows down to an understanding, an understanding of acknowledgement and an understanding that there’s something I can do about it.. HEATHER: When you’ve done those coachings with team members or when you train people to do that, do you train them to just ask it that overtly to just say, “Hey, I think about my own frustration and what I’ve learned over the years is that it usually applies to one of these things… Let’s talk about them.” Is that the words you would use? GLORIA: I do. I go right for it. And the clarity helps them quickly. In this industry, because it’s so much personal development, frustration can come out of so many areas. They have nowhere else to go but to themselves, because they don’t get to blame a boss; they don’t get to blame a coworker. They have to take control over themselves.
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It really does make a difference that they can say, “Oh, this is a skill that I need to have. I’m being emotional right now.” But it’s not just being emotional. It’s justified emotions. HEATHER: What do you think has changed? Because one of the things that I’ve really noticed is just that nature of what defines a quality relationship has changed so much. GLORIA: I was going to say the same thing. I want to talk about this, Heather, because this is close to my heart. The way that we communicate has changed. The degree of expectation of our communication has changed, especially for the leaders out there, because they feel like they have to be on 24/7. And if they’re not careful, they’re not there for their family. They’re not present to their mate. They’re not present to the parents that they’re working with. This is a theme that I’ve said all the time: Teach people how to treat you. Teach people how to treat you so that you can manage your time and they can manage theirs. One of the things that affects people from thinking that they are going to want to stay, or want to lead, or want to grow is, “What’s my responsibility going to be and how much do I have to be invested in other people’s lives?” Not their business— their lives.
HEATHER: What do you think is next for entrepreneurship in general? Where do you see us going? GLORIA: This has been one of the most incredible times for people to evaluate what they’re willing to do and what they’re not willing to put up with anymore. The direct selling industry has an opportunity, and entrepreneurs have an opportunity right now to define what the future looks like. We’re always defining it, but right now…just look at driving down the street. Who wants to deal with traffic? All these things have made a difference. How people work, especially in the gig economy, because now they can work it as their full-time job if they want to. They can smell, touch, feel entrepreneurship, and then they can grow it. We are at such a pivotal time and people like to shop differently. It has changed so much the way we do things. So now, entrepreneurship is huge. And the number of people that are going into entrepreneurship is huge. There are so many places where you can personally find out your superpower. You don’t have to be great at everything; you just have to be great at something good. DSN
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Entrepreneurs have an opportunity right now to define what the future looks like.
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YES! Registration is now open for our upcoming events. Make the most of your membership in 2022. Visit DSA.org to learn more and register today.
MAR C H 11 V I RT UA L
Direct Selling Compliance Professional
DSCP-CP 2022
CERTIFICATION PROGRAM
A P R I L 1 9, 2 1, 2 6 & 28 V I RT UA L
J U NE 5–7 BOCA RATON , FL
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Carrying Direct Selling’s Message Beyond Our Community
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S DIRECT SELLERS, we need to recognize that achieving difficult tasks requires many hands collaborating to help make lighter work out of an otherwise heavy load. Certainly, celebrating our individual company achievements contributes to a stronger direct selling channel. But as we vigorously reach out to one another to share our accomplishments, the message of our values and our commitment to forging a new, modernized direct selling far too infrequently reaches beyond our channel. If we are to have the desired impact of demystifying our business model—as has been discussed within industry circles for years— talking about ourselves amongst ourselves isn’t enough. True advocacy is more than recognizing our achievements and sharing our successes with each other. Carrying the message of our accomplishments to the legislators and regulators who impact our channel is the activity that makes a real difference for direct selling. Advocating on behalf of the channel, together with the help of DSA member companies, is a constant battle in which DSA engages on the industry’s behalf. In addition to DSA’s regular communication with Commissioners and senior staff of the Federal Trade Commission, promoting the business to legislators on Capitol Hill, state legislators and state Attorneys General is vital to advocacy that makes a difference. The impact of letting legislators know about direct selling’s commitment to self-regulation and targeted enforcement was evident during a United States Senate Commerce Subcommittee hearing last month. United States Senator Marsha Blackburn (R-TN) expressed her support
JOSEPH N. MARIANO is the President of the U.S. Direct Selling Association and the Direct Selling Education Foundation.
for the Direct Selling Self-Regulatory Council, and Senator Mike Lee’s (R-UT) questioning was consistent with DSA’s position that the Federal Trade Commission should have authority to collect monetary damages under Section 13(b) but with sufficient guardrails for American businesses. Advocacy is best when companies are a part of conversations with elected and government leaders. In fact, during the past two years, DSA has held roughly a dozen women’s entrepreneurship roundtables and town halls with the great assistance of company executives and salesforce members. These intimate conversations, created through DSA’s relationships with elected officials’ offices, have a significant impact because of their ability to carry the authentic, genuine and unimpeachable stories of individuals engaged in our channel. We all know that our business has its skeptics, and none of us can hide or ignore that fact. That is why DSA works every day to create opportunities for these most influential audiences to hear the most accurate representation of our business model. Our channel builds trust with these allies because DSA builds relationships with these leaders. When we invite officials into our circle, DSA amplifies our members’ good work and commitment to upholding the highest consumer protection standards. I ask all participants in the channel to visit DSA. org to learn more about the robust advocacy initiatives in which DSA is engaged every day and every week of every year. More importantly, if you can serve as another set of hands to lighten the load of these efforts, I invite you to do so. DSN w w w. d i r e c t s e l l i n g n e w s . c o m 9 5
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.
INTERNATIONAL PAYOUT SYSTEMS INC. 540 NE 4th St. Fort Lauderdale, FL 33301 866-218-4668 www.i-payout.com
Upgrade to the most customizable payment solution available. Expand your global footprint to over 180 countries and have more than 20 payout and pay-in options for your participants. And, we really can customize our solution to fit your needs exactly—and help you grow.
PAYQUICKER 400 Linden Oaks, Suite 320 Rochester, NY 14625 844-258-3006 www.payquicker.com Instantly make secure and compliant global payouts to your distributors in local currency with PayQuicker’s fully customizable, client-branded solution. We offer secured bank accounts with prepaid debit cards, virtual cards and more—all through a single point of integration.
1160 N. Town Center Drive, Ste. 100 Las Vegas, NV 89144 702-757-9600 www.metricsglobal.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.
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.
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2201 Long Prairie Road, Ste. 107-316 Flower Mound, TX 75022 407-891-9265 https://strategicchoicepartners.com/
MARCH 2022
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.
METRICS GLOBAL, INC
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.
SELLING NEWS
727 North 1550 East 3rd Floor, Orem, UT 84097 877-267-4324 www.cmsonline.com
Keller, TX 817-697-4321 www.cpkrell.com
STRATEGIC CHOICE PARTNERS
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COMPLETE MERCHANT SOLUTIONS
CP & KRELL GROUP
LACORE PAYMENT TECHNOLOGIES
900 Wilmeth Road, McKinney Texas 75069 Info@lacoretechnologies.com www.lacorepayments.com/
C R E D I T C A R D/ PAY M E N T P R O C E S S I N G
1329 South 800 East Orem, Utah 84097 801-515-0977 www.squire.com
C O M M I S S I O N PAY M E N T S E R V I C E S
SQUIRE
C O N S U LTA N T S /M A N A G E M E N T
C O M M I S S I O N PAY M E N T S E R V I C E S
A C C O U N T I N G S O F T WA R E /S E R V I C E S
SUPPLIER DIRECTORY
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
NEXIO 727 N 1550 E, 3rd Floor Orem, UT 84097 1-877-551-5504 www.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.
CANADA CARTAGE LOGISTICS SOLUTIONS
900 Wilmeth Road, McKinney Texas 75069 214-817-4802 www.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.
Single Source Solutions, Order to Delivery B2C Solutions, On-Time Order Fulfillment, Real-Time Inventory Visibility, NHP Site Compliant, SOP/GMP Compliant, and locations across Canada.
1551 Corporate Drive Irving, Texas 75038 214-233-6790 www.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 www.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!
EVENT PRODUCTION
International expansion expertise and technology and logistics solutions that grow clients’ businesses and brands around the world.
LACORE LOGISTICS
1615 Clark Blvd. Brampton, Ontario L6T 4W1 905-564-2115 x2 www.canadacartage.com/logistics
DELIVERZEN FULFILLMENT
2889 Ashton Blvd, Ste. 350 Salt Lake City, UT 84070 877-811-8108 www.globalaccess.com
E X E C U T I V E R E C R U I TM E N T
Handle fulfillment for 14 direct sellers. DSA member with 15 fulfillment centers, nationwide, for 1–2 day delivery to 95% of the US. Offer comprehensive B2C fulfillment services, including complex kitting, plus discounted parcel shipping based on our large volume of freight.
GLOBAL ACCESS
INCENTIVES/RECOGNITION
4505 Newpoint Place Lawrenceville, GA 30043 866-888-2999 Sales@AmwareLogistics.com www.AmwareLogistics.com
D I S T R I B U T I O N / F U L F I L L M E N T/ LO G I S T I C S
AMWARE FULFILLMENT
EVENT PRODUCTION
D I S T R I B U T I O N / F U L F I L L M E N T/ LO G I S T I C S
TO BE INCLUDED IN THE SUPPLIER DIRECTORY, EMAIL ADVERTISING@DIRECTSELLINGNEWS.COM
MULTI IMAGE GROUP 1701 Clint Moore Road Boca Raton, FL 33487 800-523-2682 www.mig.cc Established 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 virtual, hybrid, and in-person live experiences for some of the world’s biggest brands.
HANNA SHEA 1835 W Chandler Blvd 103, Chandler, AZ 85224 844-344-7177 www.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.
CUSTOM TRAVEL SOLUTIONS 27 S Main St #17 Travelers Rest, SC 29690 864-990-3074 www.CustomTravelSolutions.com Recruit and retain the right people for your organization — We are the world’s largest “white label” travel club builder.
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Dion’s jewelry solutions are perfect for career path, sales & recruiting, corporate anniversaries and incentive travel recognition awards.
ROYAL CARIBBEAN INTERNATIONAL
5800 Democracy Drive, Suite 100 Plano, TX 75024 310-428-9936 www.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 www.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.
BYDESIGN TECHNOLOGIES
INFOTRAX SYSTEMS
9503 Princess Palm Avenue Tampa, FL 33619 813-253-2235 www.bydesign.com
1875 S. State Street, Ste. 3000 Orem, UT 84097 801-431-4900 www.infotraxsys.com
Award winning SaaS solutions including Geneology Management & Commissions, Inventory, Replicated Websites, Premier Rep Tools, Branded Mobile App, Virtual Parties, E-vites, Hostess Rewards, Bookings, Social Sharing, Promotions, & Shopping.
Software & SaaS solutions for startup, emerging, and global direct selling companies. See our ad on the back cover.
MOMENTUM FACTOR
DIRECTSCALE
4801 Spicewood Springs Road, Ste. 250, Austin, TX 78759 512.690.2134 www.momofactor.com
1510 N. State St. Orem, Utah 84057 801-701-3285 www.directscale.com
INTERNATIONAL DIRECT SELLING TECHNOLOGY CORP.
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.
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.
1080 Caribbean Way Miami, FL 33132 Royal Caribbean International’s Corporate Sales Team 800-345-7225 (SELECT 2, THEN 1) www.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.
LEGAL AND COMPLIANCE
NOW TECH
S O F T WA R E / T E C H N O LO GY S O LU T I O N S
33 Franklin McKay Road Attleboro, MA 02703 800-445-1007 www.eadion.com
M A R K E T I N G/ B R A N D I N G
E.A. DION, INC.
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S O F T WA R E / T E C H N O LO GY S O LU T I O N S
INCENTIVES/RECOGNITION
SUPPLIER DIRECTORY
1208 E. Kennedy Blvd., Ste. 222 Tampa, FL 33602 813-277-0625 www.idstc.com
Global Operations Management Software. Advanced Comp Plan Programming. Sales Force Backoffice & Automation. Web Site Design & Replication.
S O F T WA R E / T E C H N O LO GY S O LU T I O N S
TO BE INCLUDED IN THE SUPPLIER DIRECTORY, EMAIL ADVERTISING@DIRECTSELLINGNEWS.COM
JENKON 915 Broadway Street, Ste. 400 Vancouver, WA 98660 360-256-4400 www.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.
THATCHER TECHNOLOGY GROUP, LLC 55 Shuman Blvd., Ste. 350 Naperville, IL 60563 866-698-3848 www.thatchertech.com
Thatcher Technology Group provides Sales Force, Compensation and Incentive Management Software for the Direct Selling Industry.
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Direct Selling News 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,
XIRECT SOFTWARE SOLUTIONS
686 E 110 S Unit 104 American Fork, UT 84003 385-448-1800 www.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!
group travel and full ship charters due to the great exposure we get from DSN. —RON GU L ASK EY / AV P, G l o b a l C o r p o r a t e , I n c e n t ive & C h a r t e r S a l e s , Celebrity Cruises
Celebrity Cruises
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GET RESULTS Clients following our proven digital Direct Selling methods are experiencing: 26% 16% 29% 34%
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310-428-9936 info@now-tech.com NOW-Tech.com
