May 2022 Direct Selling News by directsellingnews

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DIRECT SELLING NEWS

VOLUME 18 / ISSUE 5

ER KIN S I O DR G F ST A H H T O A S RY LL TE / LL IN G

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SHELF HOW DIRECT

MISSION, VISION & VALUES / ARE YOURS ALIGNED? OMNICHANNEL STRATEGIES / WHY RETAIL IS EXPLORING DIRECT SELLING IT WORKS! / EVOLUTION OF A DREAM LIMELIFE BY ALCONE / FEMALE FINANCIAL EMPOWERMENT

SELLING’S LEADING BRANDS STACK UP AGAINST RETAIL

LISTEN TO THIS. THREE DIFFERENT PODCASTS, EACH DESIGNED FOR THE DIRECT SELLING CHANNEL.

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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

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MONTHLY Candid conversations with some of the world’s best-known authors, speakers and innovators sharing their unique insights on entrepreneurship

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F E AT U R E S

Aligning Your Vision, Mission and Values B Y PAU L A D A M S

Why Retail’s Biggest Brands are Exploring Direct Selling B Y S T U A R T J O H N S O N

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SPOTLIGHTS

It Works!:

The Evolution of a Dream

B Y C H E L S E A H U G H E S

LimeLife by Alcone:

Female Financial Empowerment B Y S A R A H PAU L K

68 74 DEPARTMENTS

F O R YO U / F O R YO U R F I E L D /

Your Essential Monthly Motivation

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CHELSE A HUGHES

ICONIC INSIGHTS /

Kindra Hall: The Power of Storytelling

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PAU L A F E L P S

I N EV ERY ISSU E 6 AD INDEX // 9 FROM THE PUBLISHER // 11 INDUSTRY NEWS // 32 FORWARD THINKING // 87 DSA MESSAGE // 88 SUPPLIER DIRECTORY //

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COVER STORY

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PROGR A MS AND SUBSCRIPTION M ANAGER

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How direct selling’s leading brands are competing (and winning) against traditional retailers in several key categories. BY LISA ROBERTSON

CONTENT CONTRIBUTORS

Paul Adams Kindra Hall Stuart Johnson Contributors Paula Felps Chelsea Hughes David Lee

Sarah Paulk Lisa Robertson

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Direct Selling’s Products Take Center Stage IT’S BEEN QUITE A MONTH FOR THE DIRECT SELLING NEWS TEAM. As this issue goes to print, we have just hosted so many of you both online and in person at the 13th Annual DSN Global Celebration and Direct Selling University events. It was an amazing week of fellowship, education, recognition and fun. We’ll give you an in-depth recap in next month’s issue, but for now I can only say that I am excited for the future of the channel and inspired by those of you who lead it! This month’s cover story celebrates some of the channel’s “top shelf” products. Consumerdriven crave-worthy products haven’t always been something people associate with our channel, but thankfully that is changing. Several direct selling companies are creating products that are competing (and often winning) the battle for market share against traditional retail companies. We take a look at who, how and why the shift is taking place. Paul Adams contributes a thoughtful piece this month on how to align your vision, mission and values (and the importance of each), and DSN Founder and CEO Stuart Johnson shares his insights on companies inside and outside the channel with impactful omnichannel approaches. There are two can’t-miss company spotlights in this issue as well. It Works! reflects on the past two decades and looks to their future. And LimeLife by Alcone, in business since 2015, shares their new,

disruptive approach to compensation plans and incentives. We’ve also included an excerpt from this month’s Iconic Insights podcast where our host Heather Chastain interviews the always charming and inspiring Kindra Hall on the power of storytelling—especially the stories we tell ourselves. 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! At DSN, we always want 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 free text alerts by becoming a member of our VIP Community where you’ll always get our top stories first and fast. It was a pleasure and privilege to see so many of you in person at Direct Selling University and the DSN Global Celebration. There is absolutely no substitute for the synergy, connection and momentum that happens when this group gathers in person. And thank you to the thousands that joined us around the world to watch virtually. We’re already planning our next hybrid DSU event—we can’t wait to do it all again this fall. Stay tuned! All the best,

Shelley Rojas | Publisher & Chief Brand Officer | srojas@directsellingnews.com @directsellingnews

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70 percent of Gen Z Workers Are Looking for a Side Hustle in 2022

he youngest generation of workers have experienced a work-life balance transformation in the years since the pandemic entered the scene. In Microsoft’s 2022 Work Trend Index, a study that analyzed trillions of productivity signals in Microsoft 365, labor trends on LinkedIn and a survey of 31,000 people in 31 countries, employees shared how the role of work in their lives has shifted. The results highlight these dramatic changes, including the enforcement of hybrid work boundaries, the heightened need for supportive management and what employees now say make a job “worth it.” The Great Resignation brought a pattern of job switching that seems far from over. In 2020, 17 percent of employees quit their jobs, a number that continued to swell to 18 percent in 2021. In the year ahead, more than half of Gen Z and Millennials (52 percent) said they may change employers. This is a strikingly higher number than Gen X and Boomers, of whom only 35 percent report considering a job change. For the youngest employees, the study reveals that

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“flexibility, mobility and entrepreneurial freedom are non-negotiable.” Among the Gen Z demographic, the study showed: • 52 percent of hybrid employees are moving to a new location because remote work allows them the flexibility • If “flexibility” is listed in a job posting, they are 77 percent more likely to engage • 58 percent are considering a job change in the coming year • Many are considering a shift in the structure of their work—58 percent to hybrid work and 56 percent to remote work While many are switching employers, Gen Z and Millennials are not limiting themselves to a traditional day job. A majority of both generations are hungry for creative opportunities, with 70 percent of Gen Z and 67 percent of Millennials reporting they are considering earning additional income through a side hustle or business opportunity in 2022. DSN

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Looking to Hire Gen Z? TikTok Might Be the New LinkedIn

embers of Gen Z have faced an unusual hiring landscape. They’ve been challenged with launching careers in the midst of a global pandemic, which ushered in remote work and hiring freezes, then watched as the Great Resignation left a wake of job openings. This recent shift has tilted the hiring leverage in favor of job hunters, especially those with a unique or creative portfolio. And yet, finding just the right opportunity can be challenging when you’re standing at the starting line with little experience and few professional connections. Enter: TikTok. With more than one billion active global users, TikTok is rich in the priceless currency of attention. While it’s predominantly a hangout for Gen Z, older generations, specifically Millennials, have begun migrating towards it. It’s a connector to short sound bites of entertainment and information, but more than that, it’s becoming a networking goldmine. On TikTok’s individualized FYP, a curated landing page that showcases videos selected by the app’s algorithm, users are introduced to faces and ideas that they aren’t following, but might be interested in discovering. It’s through this avenue that many Gen Z job hunters have found success finding work that aligns with their goals or passions. Through uploaded video résumés, aspiring employees share their portfolios in ways that range from traditional résumés posted with onscreen text to cinematic

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explanations complete with themed costumes and soundtracks. This video résumé approach is something TikTok has formally pursued as well, with the launch of a pilot version of TikTok Résumés last year. Powerhouse brands like Target and Chipotle teamed up with the feature to allow entry-level job applicants to apply directly through the social platform. And yes, many Gen Z TikTok users have created eye-catching video résumés that snagged them jobs by putting them in front of brands, celebrities or hiring managers that they would not have otherwise met. But interestingly, even TikTok Résumés expected applicants to provide a link to their LinkedIn profile. It’s a trend to watch, for sure, but it’s important to remember that the lion’s share of the hiring process—even that which

is initiated on TikTok—is still happening on LinkedIn. There are significant concerns to factor into the video résumé process as well, including unconscious bias that might filter out talented people based on snap judgements and broader concerns about social platform algorithms that could introduce bias through deciding which clips have the opportunity to go viral. For Gen Z job hunters eager to impress Millennial, Gen X or even Baby Boomer hiring managers, following a more traditional route, which now includes LinkedIn, appears to remain king. But hiring managers would be wise to consider diving into TikTok Résumés and TikTok hashtags (like #TikTokRésumés, #CareerTok and #HireMe) as an opportunity to discover a potential star employee. DSN

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Study Finds Small Business Owners Are Happier than the Average American

ntrepreneurs are just happier, according to Guidant Financial’s 2022 Small Business Trends report. The past two years and counting have been inordinately challenging for small business owners, but even amid these struggles, an overwhelming majority of these entrepreneurs (74.8 percent) reported being somewhat or very happy. When Guidant Financial compared these numbers to other happiness scales, the results portray business owners as happier than the average American. There are still challenges ahead for these independent business leaders, not the least of which will be a continued lack of candidates in the workforce in the wake of the Great Resignation. In fact, 70 percent of participants described the

recruitment and retention of employees as one of their top three challenges. Most small business owners are combating this struggle by increasing compensation for new hires (63 percent), and 33 percent are making significant efforts to retain current employees. While they haven’t been spared from employee turnover and an absence of talent, small business owners have certainly driven the economy during this challenging season. Guidant Financial found that small businesses provide 46 percent of private workforce employment, describing them as “the backbone of the COVID recovery,” and cited that less than a quarter of small businesses had furloughed or laid off employees. DSN

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EXECUTIVE ANNOUNCEMENTS

Robert “Bo” Short

Christopher Beck

Clayton Jones

Chief Executive Officer, Vyvo The board of directors for Helo Corp., which wholly owns the direct selling subsidiary Vyvo Inc., announced that it has appointed Robert “Bo” Short as the new chief executive officer of Vyvo Inc. “I am delighted to welcome Bo Short to Vyvo,” said Helo Corp. Chief Executive Officer Seán McVeigh. “He brings to this team the undisputed success of a team builder; the insights and understanding of a company owner; and the much sought-after skills of an exceptional business leader. We recognize Bo’s experience, and we are excited to work with Bo as he leads our U.S. launch and subsequent global expansion.”

Chief Technology Officer, Modere Modere announced that Christopher Beck will join the company’s executive team as Chief Technology Officer (CTO), and will lead tech-enabled customer experiences across all of the company’s channels. “As an omnichannel consumer brand, we know IT is critical to delivering our customers a seamless experience across channels,” said Modere CEO Asma Ishaq. “We are excited to welcome Christopher to the Modere team as we continue executing our strategic growth plan, meeting our customers where they are and further strengthening our market leadership. His breadth of knowledge, experience, creativity and team-building expertise will ensure that we continue to provide an unparalleled customer experience in delivering on our mission to improve wellbeing one household at a time.”

Chief Legal Officer, Helo Corp. Helo Corp., the parent company for direct selling brand Vyvo, announced it has appointed Clayton Jones to its executive team as Chief Legal Officer. Jones practiced corporate and securities law, including mergers and acquisitions, before stepping into executive and general counsel positions within the direct selling industry and beyond. “We are delighted to welcome Clayton to our executive team,” said Seán McVeigh, Helo’s Chief Executive Officer. “He brings significant insights and experience, including with other leading technology and wellness companies. We are confident that Clayton will further strengthen our executive team as we work to grow our business globally.”

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Julia Ku

Dana Fortune

Michael O. Johnson

Vice President of Asia, ASEA ASEA welcomed Julia Ku as its new Vice President of Asia. Ku will now focus on driving sales and field initiatives in Hong Kong, Malaysia, Singapore and Taiwan, and lead strategy development for gaining wider market availability for ASEA products throughout Asia. ASEA described Ku as “uniquely qualified for this role” because of her more than two decades of experience in the direct selling industry, her previous executive roles overseeing offices in China and her leadership style. Ku is knowledgeable in sales strategy, incentive program development and execution and training. “We are pleased to welcome Julia Ku as our vice president of Asia,” said Kelly Rich, ASEA Senior Vice President of Global Sales. “Julia is an energetic and forward-thinking communicator who inspires trust, confidence and respect. We are responding quickly to the needs of our customers and associates in Asia and around the world, and we are confident Julia will continue growing sales while implementing key strategic company goals and initiatives.”

Vice President of Marketing and Sales Initiatives, 4Life 4Life has promoted Dana Fortune to the role of Vice President of Marketing and Sales Initiatives. At 29, Fortune is now the company’s youngest vice president and represents a new generation of 4Life corporate leaders. “Dana arrived at 4Life, put herself to work and focused on a discipline that is crucial for our competitive edge,” said 4Life President and CEO Danny Lee. “It is a pleasure to work with her. Last year, she represented the company on two industry education panels: the WFDSA Virtual World Congress and the in-person Direct Selling Association’s annual conference in New Orleans. I’m confident that she and her team will continue to produce great work. She is an excellent communicator, team player and embodies the intellectual and emotional intelligence that engenders confidence and trust in others.”

Board of Directors, Herbalife Herbalife Nutrition Ltd announced Michael O. Johnson as a nominee for Herbalife Nutrition’s Board of Directors. Johnson served as Herbalife CEO from 2003-2017, Chairman from 2007-2020, interim CEO from 20192020 and continues to be a longstanding investor in the company. He is a seasoned industry veteran with experience in corporate leadership. Johnson’s nomination is part of the company’s strategy to build a board of directors with diverse skillsets and viewpoints. With this appointment plus three others appointed in March 2021, the Board will now include 10 directors, five of whom are members of diverse communities.

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Terry White

Lyndi Smith

Jorden Bell

Senior Vice President, Saladmaster Saladmaster, a direct selling brand under the Regal Ware company umbrella, announced it has named Terry White as the new Senior Vice President of its Asia Pacific Region. White has worked in a number of executive roles at other well-known companies within the direct selling industry and holds a Bachelor of Science in Biochemistry, Physics and Japanese. In this new role, White will acquire new business openings in the Asia Pacific region to support Regal Ware’s vision and direction, while supporting customer needs. “We are delighted to welcome Terry to the Saladmaster team,” said Liliana Arce, Saladmaster Vice President and General Manager. “His understanding of the region alongside his direct sales knowledge will help kick start a new chapter of growth for our iconic brand.”

Chief Marketing Officer, Young Living Young Living announced that Lyndi Smith will now lead the company’s marketing team as Chief Marketing Officer. Smith joined the company in 2001 and held a number of roles, including serving as Senior Vice President of Global Marketing for the company, before leaving in 2021. Smith returns to help the company develop its global communications, content marketing and events, as well as executing marketing strategies to support the Young Living brand, its goals and revenue growth. “We are excited to welcome Lyndi back to Young Living as a part of our creative marketing team,” said Mary Young, Young Living Chief Executive Officer. “Lyndi is well integrated into our culture and has a sound understanding of our legacy and brand. She has always been a fundamental part of our success.”

Chief Marketing Officer, Arbonne Arbonne has appointed Jorden Bell as its new Chief Marketing Officer. Bell brings more than 15 years of leadership and strategic branding experience to this new role, including an executive role with a fashion and lifestyle brand within the direct selling industry. Bell will now lead Arbonne’s creative strategy development as well as the company’s approach to long-term creative and marketing expansion opportunities for consultants and brand ambassadors on both the global and digital markets. “I am thrilled to be joining Arbonne as Chief Marketing Officer,” Bell said. “It is an exciting time to work within beauty and wellness. I am honored to have the opportunity to partner with such a strong leadership team and to help grow the mission of helping people flourish with healthy living.”

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Telecom Plus Announces Board of Director Changes London-based Telecom Plus announced changes to its boardroom, citing the need to redress “the historical imbalance in the proportion of independent non-executive directors.” Effective July 2022, the following changes will take place:. Charles Wigoder will become Non-Executive Chairman Melvin Lawson will retire from the Board n Julian Schild will retire from the Board n n

“Following 23 years in a full-time leadership role at Telecom Plus, I am delighted to be handing over all executive responsibilities to Andrew and Stuart as co-CEOs, whilst remaining as Chairman of a business which has been, and will remain, an important part of my life,” said Chairman Charles Wigoder. “I am confident their combined strength and experience will enable the business to capitalize on the recent paradigm shift we have seen in the energy markets, and take full advantage of the exciting growth opportunities ahead. Melvin and Julian have each made significant contributions to the success of the business over the past decade and more, and will leave with our sincere thanks.” These changes follow the appointment of Stuart Burnett as co-CEO in November of 2021.

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Josh Paine President & Chief Executive Officer, IDLife IDLife, LLC announced that Josh Paine has been named President and Chief Executive Officer. Logan Stout, IDLife Founder and Chairman, spent four years searching for the right executive to fill this role, specifically someone who exhibited the company’s core values, with operational and financial expertise. After announcing the new appointment, he described Paine as “exactly what I prayed for.” Paine’s career experience includes being credited with scaling six notable companies and building profitable organizations on a global scale through “conscious capitalism.” He will now assume responsibility for the company’s day-to-day leadership and will facilitate and implement strategic organizational decisions. Logan Stout will continue as Founder and Chairman of the Board of Directors. “One of my passions as a leader is to build the processes necessary to unlock a company’s full potential,” Paine said. “IDLife is poised for massive growth and scale. We already have groundbreaking products, now it’s time to marry them with proven processes. I’m so excited about the opportunity to collaborate with this team and help IDLife fulfill its purpose, helping more people do life better in all areas of their life.”

Celine Del Genes Board of Directors, Herbalife Herbalife Nutrition has named Celine Del Genes as a nominee for its board of directors. Del Genes is currently the Global General Manager of Specialist Sports at adidas AG, and also has extensive experience in global product launches. “With more than 20 years of global experience at adidas, Celine would bring significant business leadership, especially in the areas of marketing and sports,” said John Agwunobi, Herbalife Nutrition Chairman and CEO. “Her full range of skills will complement those of our existing board members, and I know she will be an invaluable asset as we continue elevating and growing our business.” With the nomination of Del Genes, the Herbalife Board will now include 11 directors, six of whom are members of diverse communities. DSN

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

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LE-VEL

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USBORNE BOOKS I n o rd e r t o p ro t e c t t h e i n t e g ri t y o f t h e C C R P ro g ra m f o r a l l p a r t i c i p a n t s , D S N re s e r v e s t h e ri g h t t o s u s p e n d o r d i s c o n t i n u e C C R P ro g ra m re c o g n i t i o n o f a n y c o m p a n y u n d e rg o i n g p u b l i s h e d l e g a l a c t i o n s o r re g u l a t o r y d i s p u t e s (i n c l u d i n g a n y s e t t l e m e n t s o f s u c h) . 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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Lessons Learned from Old School Marketing

Four effective traditional marketing trends direct selling companies should consider.

BY DAVID LEE

HILE THE CORE of the direct selling industry will always be the field of independent sales and marketing distributors, leveraging traditional marketing channels can still be effective ways to build a brand, increase name recognition, foster community partnerships and generate excitement and engagement throughout distributor field. These four traditional marketing channels aren’t meant to replace digital trends, and some are compatible with digital platforms.

1/ BUILD THE BRAND WITH BILLBOARDS

Billboards? What is this, the ’50s? The way billboards are used today can still resemble outdoor advertising of decades past, but evolving technologies allow this once-old strategy to match today’s customer experience. According to WARC Data’s Global Ad Trends for 2021, global outdoor ad spending rose by 25.8 percent in the second quarter of 2021, which was the strongest growth recorded since 2016. Out-of-home advertising (OOH) broadly encompasses channels such as billboards, car and building wraps, kiosks, public transit placement and many others. Statista reports that billboards have the highest reach amongst OOH advertising types in the U.S. In 2020, there was a total 343,106 billboards in the U.S., and grew to almost 351,000 in 2021. Statista also projected that OOH advertising would hit $10.7 billion by the end of 2021.

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LESSONS

LEARNED

G LOBA L OU TDOOR A D SPEN DI N G ROSE BY

25.8% I N THE SECON D Q UA RTER OF 20 21 , THE STRON G EST G ROW TH RECORDED SI N CE 20 1 6.

“The 24/7 exposure and the inability to be ‘turned off’ similarly to an online ad makes [billboards] incredibly useful,” states BMediaGroup. “It continues to be an effective way of spreading brand awareness to a large public and reaching new audiences in a short amount of time.” Digital billboards have changed the game. Large text with a captivating image were the norm for traditional billboards. Digital offers bright colors, high-resolution and animated graphics and sometimes even sound. The ability to run several ads on the same screen has driven down cost. Many billboard messages seek to drive people online or encourage them to use hashtags. This continues the experience and encourages interaction. QR codes have made a massive comeback, especially with smartphones and tablets now

having built-in QR readers. It’s another terrific way to create engagement and customer interaction. BMediaGroup predicts some billboards in the near future will have cameras to maximize interaction. The rise of augmented reality could continue to evolve the effectiveness and creativity of billboard marketing. Le-Vel has utilized billboards several times to promote the THRIVE lifestyle and products. The goal was to build the brand, pique curiosity and generate activity. Distributors were encouraged to take pictures of billboards and post photos on social media with the hashtag #LVBillboardBlitz and came with the opportunity to win free products. Prüvit held a scavenger hunt for its “BETTER Weekend” celebration in Times Square that featured video messages on multiple digital boards in the famous high-traffic area. 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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M A R K E T I N G

A DVA N TAG ES O F T RA DI T I O NAL MAR KETI NG

SOURCE: MEDIAONE.COM

1/ Extremely Targeted and Focused 2/ Familiar and Established 3/ Can Be Distributed Anywhere 4/ Flexible and Easy to Implement 5/ Perceived as More Credible by Consumers 6/ Works Across Channels 7/ Commands Attention

2/ SPORTS TEAM AND ATHLETE SPONSORSHIPS Team and athlete sponsorships or endorsement deals have been around for a long time. NASCAR lives off it. Many elite athletes earn more income from sponsorships than from their contracted salaries. Sponsoring a sports team doesn’t just involve putting a logo on an outfield wall of a baseball field. Sponsoring a giveaway, owning a suite in a stadium, sponsoring a special contest during a game or even getting products inside a stadium are all possibilities. And it doesn’t have to be on a huge scale. Partnering with local college or minor league teams can help build your brand. Vida Divina, a wellness direct selling company based in California, is a sponsor of the NHL’s Anaheim Ducks. The local community aspect of the partnership is a great tie-in. The company has sponsored bobblehead nights as a gift to fans.

Athletes have become social media influencers, leveraging their loyal followers to promote brands and products they trust. Younger people tend to associate themselves with individual athletes more than teams. Changes to collegiate NIL (name, image and likeness) rules and state laws open the door for partnerships with current college athletes. Some top-tier college athletes are earning more than $1 million per year in sponsorship or ambassador deals, many with major national brands.

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E-sports has emerged as a major player on the digital scene. Sponsored teams and entire leagues have generated tens of millions in prize money. “The next generation of consumers see E-sports as part of their daily lives,” says an article from Hatch Communications. “They grew up with gaming omnipresent on their phones, tablets and consoles and therefore are easily accessible to brands via channels not traditionally seen as an area for sponsorship.”

3/ PRINT MATERIALS FOR EFFECTIVE

TAKE‑HOME While digital communication has dominated direct sales promotion trends in audience-building, marketing and even recruiting, print marketing materials can still be effective. Promotional cards or flyers, brochures, step-by-step product instruction cards and magazines can be hyper-focused takehome tools. Being physical, they don’t turn off or end like some digital content that can be difficult to access after the first exposure. Marketing research institute Marketing Sherpa says that 82 percent of internet users in the United States trust print advertising more than digital marketing. Print marketing doesn’t burden audiences with multiple messages and information all at once, which can be a downfall of digital channels. With

82%

OF I N TERN ET U SERS I N THE U N I TED STATES TRU ST P R INT A DVERTI SI N G M ORE THAN DI G I TA L M A RKETI N G .

4/ LONG-FORM CONTENT

in-person presentations, meetings and conventions returning after a hiatus during the COVID pandemic, print marketing is making a comeback. Materials can integrate with digital, driving people online to targeted videos, enrollment pages or to request product samples. Current print technologies such as spot UV, foiling, embossing and debossing can create a unique experience for targeted audiences. Including print marketing with product shipments can encourage re-orders, auto-shipments and help distributors increase retention. They can offer value-added info such as product recipes, health tips and promote current contests or special deals.

Short video clips such as Instagram Reels, TikTok videos and Facebook Stories are perhaps the hottest effective digital marketing trend. While they are a fun and creative way to build audiences, long-form content is still effective. Some of the most popular podcasts in the world have episodes that last more than an hour. In late 2021, Medium.com found that the average length of a podcast episode was 38 minutes and 10 seconds. The average length of a YouTube video is more than 11 minutes. Hubspot reports that the ideal length of a blog post for 2022 is 2,100 words. Longer-form content allows brands to connect more with audiences and build stronger relationships. Some direct selling companies are combining weekly (or even daily) training sessions with storytelling, testimonials and distributor experiences to create a talk show-like experience that members tune in to and interact with. This can also be a terrific opportunity to pull the curtain back on the innerworkings of the corporate team and product development. Quality and unique ingredients are hallmarks of the direct selling industry. It can be easy to slip into the complicated science and formulation when it comes to marketing products. Incorporating third‑party doctors and nutritionists can provide terrific information—especially on longer live video chats— but can overwhelm audiences. Even in such cases, focusing on what the products do and the results they offer tend to connect more with the audience. DSN d i r e c t s e l l i n g n e w s . c o m 3 5

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YO U R

V I S I O N ,

M I S S I O N

VA LU E S

ALIGNING YOUR

V I S I O N, MISSION VA L U E S

& MAKE SURE THEY

REFLECT YOUR COMPANY AND YOUR CULTURE

BY PAUL ADAMS

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M I S S I O N

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WHO ARE YOU?

I T S O U N D S L I K E A S I L LY Q U E S T I O N .

O R T H E B EG I N N I N G O F A N AW K WA R D INTRODUCTION.

HEN I ASK THE QUESTION to a group of executives, I’m asking about who they are as a company. What do you stand for? How do you act? What expectations do you have for each other and the team around you? But, the answers I get are—normally—about the products, the opportunity or the way you want people in the field to think of the company. Recently, I’ve worked with a few companies who like to talk about their culture and how special it is. They are convinced that folks in the field love “The Culture” of the company. “They believe in us.” “They trust us.” But, after conducting interviews with some of the folks in the field, it becomes clear that the feeling of the culture is superficial. Maybe even wishful. They seem to play nice together but, often, there is frustration. They don’t understand why things are the way they are. They don’t believe their concerns are being heard or addressed. They seem to really like the people inside the company but want more from them.

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THREE KEY T A K E A W AY S

1 / THE DIFFERENCE BETWEEN YOUR VISION AND YOUR MISSION

Vision is the big, seemingly unattainable goal that the company hopes to achieve. Mission is “HOW’ a company will strive to achieve its Vision.

2 / WHAT ARE VALUE STATEMENTS AND WHY ARE THEY IMPORTANT

These are a small collection of ideas and beliefs about your company. They help determine what to say “YES” to and what to say “NO” to. They start with “We believe” and are non-negotiable!

3 / HOW CAN YOU FIND TALENT THAT REFLECTS YOUR VISION, MISSION AND VALUES

And, inside the company, they don’t understand why the field is the way they are. “They keep asking for more.” They “don’t understand how hard it is” to change the things they keep wanting addressed. “They always expect more from us.” Sound familiar? Yet, the corporate executives are still bragging about how great their culture is. Something doesn’t make sense. There is a disconnect. A big one. This disconnect starts inside the company. The company owns it. The leadership on the corporate team created it. Or—at the very least—allowed it to occur and hasn’t done enough to correct it. I believe strongly in the power of a company’s Vision, Mission and Values to begin the alignment process and get everyone working together.

Use these statements as a sorting tool to find the right people. They also should measure contributions during annual reviews that are based on the vision, mission and values.

The Vision, Mission and Values are, or should be, more than words on paper. When properly executed and ingrained, they are visible in the actions and words of the people leading the company. Unfortunately, many leaders hand off the process of developing the Vision, Mission and Values to the marketing team. At some point, they get written in a company handbook and put in big bold letters on the walls in the office—as if to say, “See, we have our Vision, Mission and Values….” Ugh!

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First, let’s establish what these terms mean and how they work together to make a company stand out from the crowd. Although there are a few ways of thinking of the definitions, I’m a simple guy, and we use the following to help guide the discussions with executive teams. VISION— the big, seemingly unattainable goal that the company hopes to achieve. It is a statement with power. It is aspirational—a cause worth fighting for. MISSION—to oversimplify it, think of it as “HOW’ a company will strive to achieve its Vision. For example, Tesla’s Vision—To accelerate the world’s transition to sustainable energy. Tesla’s Mission—To create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles. The Vision statement says nothing about cars or batteries. It is the impact they hope to make on a grander scale. The Mission brings those into play as a way to accomplish the vision. Nike, another global giant, takes the same approach. Nike’s Vision—Bring inspiration and innovation to every athlete* in the world. *if you have a body, you are an athlete. Nike’s Mission—Create groundbreaking sports innovations, make our products sustainably, build a creative and diverse global team and make a positive impact in communities where we live and work.

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The Vision is not about shoes, clothing or basketballs. It’s bigger than that. It’s not about Michael Jordan. It’s about YOU. I could go on and on with fantastic examples of Vision and Mission statements, but you get the idea. Too often, executive teams intertwine the two statements and, instead of creating clarity, they cause confusion. Keep them clear, separate and precise. Lastly, we need to get our Values statements defined. These are a small collection of non-negotiable ideas and beliefs to express what is valued and how the company treats people that come into contact with it. These are super-important. They help determine what opportunities to say “YES” to and, just as importantly, what to say “NO” to. A very common way to view them is a collection of statements that begin with “We believe….”. They should say the Values you believe in so that you can do the things in the Mission while striving toward the Vision. I encourage teams to determine about five statements that, if read together, someone would clearly know what matters to you and your company. It’s easy to come up with a dozen, it’s difficult to narrow down your focus to five. But, that clarity matters.

“

I also encourage teams to avoid things that should be table stakes. Words like “integrity” and “honesty” come to mind. As a human, shouldn’t those be expected? Let’s just all commit to do our best to not be working with or hiring folks who are lacking in those areas. Agree? If we mess up and they make it into the company, fix it. FAST! Caution --- if you’re willing to accept a deviation from the Values you publish, you will be causing massive damage to your culture. As we said, these are NON-NEGOTIABLE. These explain who you are. Recently, I worked with an executive team to evaluate their existing and proposed Vision, Mission and Values. Once we got past the eye-rolls from the team that clearly said “Here we go again,” the team became focused on the real meaning of the words. It didn’t happen immediately and we didn’t rush the process. But, over the course of six to eight weeks, we spent about 15-20 hours working together to form a few important sentences. They toiled over EVERY word and phrase. Then, we all took time to digest them before we debated more. If we had completed the process in one meeting, I feel very confident in saying there would have been a lot of tweaking after the fact. And there would have been minimal buy-in from the team. In the end, every sentence needed to mean something and be worth fighting for. After all, the executives needed to be able to stand in front of their teams and tell them they believed in the statements and would be reinforcing the Vision, Mission and Values on a daily basis. They needed to own the words and defend them. They focused on a few key beliefs that felt important to who they are. Topics like “family,” “wellness,” “servant leadership,” “philanthropy,” “empowerment” and “personal growth” kept popping up as key feelings that they felt were non-negotiable.

The Vision, Mission and Values are, or should be, more than words on paper. When properly executed and ingrained, they are visible in the actions and words of the people leading the company.

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“

Think of the Vision, Mission and Values as the guardrails for your business. If you know what matters most and what is non‑negotiable, you can easily say no to ideas that don’t fit. There was healthy debate and disagreement that led to greater understanding of themselves and each other. Frankly, it was amazing. After crafting the words and sentences together, their end result was absolutely the best representation I had ever seen or heard of that company. Over the next four weeks, they went on to share and discuss all of this with their entire corporate teams. Small groups who could gain a clear understanding of the process and why the words came to life. It was a chance to gain buy-in and set expectations at every level of the company. Then, starting with top leaders, it was all rolled out to the field. But, why does this matter? Think of the Vision, Mission and Values as the guardrails for your business. If you know what matters most and what is non-negotiable, you can easily say no to ideas that don’t fit. More importantly, you can say yes and run faster inside the lane you’ve created for yourself when everyone knows what matters most. It’s not all rosy and happy. It takes work and difficult decisions. In order for this all to come to life and have meaning, leadership has to hire people based on the fact that they will fit into the definitions created. Make it clear of the expectation. Your HR team has to use the statements as a sorting tool to find the right people for your company. They also should measure contributions during annual reviews that are based on the vision, mission and values. Some people will love it. Others won’t. And, that’s ok. You can’t appeal to everyone. In fact, once you define and live the beliefs, you will find prospects and folks in the field who gravitate

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to you as well. That’s what we want. People who know and like us for who we are. We cannot morph to be something for one group and something different for another. If you are trying to appeal to everyone, you will appeal to no one. Let’s just find the folks who want to be with us because of who we are. On the flipside: You must be willing to FIRE when someone clearly doesn’t fit or believe in the company and its values. I’ve seen it too often where one person is kept on the team because they are a mid- or even high-level contributor but does not fit into the values the company espouses. This can be devastating to the rest of the team. If you—the executive team—allow this to occur, your credibility is dissolved quickly. But, if you are willing to take the steps to correct it, you can recover. We all make mistakes. How we handle them is everything. Sometimes, addition by subtraction is the right answer. If you have a great Vision, Mission and Values and live them every day—Congratulations! There are many who do. When I walk into some companies around our industry, it doesn’t take long to “feel” whether it is real or not. However, if you are struggling to build the culture you’re looking for, I would encourage you to truly evaluate whether or not you are living up to the words on paper you created when you started the company. It’s ok to make a change. What’s not ok is to let it ride and expect things to change on their own. DSN PAUL ADAMS has been involved in the direct selling channel for more than 30 years. Over the decades, he has worked with hundreds of companies and been a trusted advisor in boardrooms with countless executive teams. From corporate giants to pre-startup, Paul has helped companies invent, reinvent and solidify their messaging, strategy and execution.

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BY LISA ROBERTSON

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SHELF HOW DIRECT SELLING’S LEADING BRANDS ARE COMPETING (AND WINNING) AGAINST TRADITIONAL RETAILERS IN SEVERAL KEY CATEGORIES.

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W SLOW LY, SU R E LY A ND W IT H INT E N T I O N A ND P U R P OSE , DIR ECT S E LLI N G C OMPA NIES A R E E A R NING T H E IR S P OT S AS T R U E “CAT EG ORY K I N GS .”

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E ALL KNOW IT—EVEN IF WE DON’T TALK ABOUT IT VERY MUCH. There’s a lingering negative perception about direct selling. The idea that people buy direct selling products because they want to help out their niece, encourage a neighbor or maybe just support a friend’s entrepreneurial dreams. Unfortunately, this stigma is something the channel has earned over the years. In the past, the key elements of customer-driven, crave‑worthy products simply weren’t a priority for some companies in the channel. Efficacy was an afterthought. Exclusivity didn’t matter much. And strategic omnichannel marketing campaigns weren’t even topics of discussion. Thankfully, direct sellers have made impressive strides in recent years, and some companies are truly changing the narrative by taking ownership and course correcting toward more customer centricity, better efficacy and next-level customer experience initiatives.

THREE KEY T A K E A W AY S

1 / DIRECT SELLING’S REPUTATION IS IMPROVING

As the quality of products in the channel improves, so does direct selling’s reputation. Slowly, surely and with intention and purpose, direct selling companies are earning their spots as true category kings, winning the war on customer loyalty and market share in many retail categories. So...who are the companies that have earned their rightful spot alongside more traditional, upper-echelon retail brands? What sets them apart? And how are they competing and winning against brands with more traditional retail business models?

T H E C AT EG O RY K I N G S BEAUTY DEVICES

NU SKIN

COSMETICS

AMWAY [ARTISTRY]

COSMETICS

MARY KAY

COSMETICS

NATURA &CO

ESSENTIAL OILS

DOTERRA

ESSENTIAL OILS

YOUNG LIVING

EXOGENOUS KETONES HOME FRAGRANCE

PRÜVIT SCENTSY

PREMIUM HAIRCARE

MONAT

PREMIUM SKINCARE

RODAN + FIELDS

SUPPLEMENTS WEIGHT LOSS

AMWAY [NUTRILITE] HERBALIFE

The companies earning this designation take a holistic, comprehensive approach to improving their brand’s reach, their customers’ experience and their overall reputation. They are focusing on exclusive products and proprietary

2 / DISTRIBUTOR ADVOCACY AND ENTHUSIASM HAVE TREMENDOUS POWER

Their organic product recommendations— increasingly achieved through social media—can grow a brand’s reach and influence.

3 / CRAFTING YOUR BRAND AS A LIFESTYLE HAS TWO KEY BENEFITS

It makes the transition from customer to distributor more authentic and it can encourage customers to try a full range of products in your assortment.

ingredients; quality sourcing; in-depth research and development; and innovative approaches to social selling. They are effectively flipping the script on outdated perceptions about the channel, the products it produces and the overall customer experience. Another important commonality is the size of these companies; many of them reached at least $1 billion in annual revenue in 2021 and have an impressive global footprint. Is being a global billion dollar company required to be a category king? No. But name recognition, proprietary ingredients and science, overall sales and longevity all are important parts of the equation. Ben Riley, Acting President of Young Living, shared the impact of their global presence. “In the past two years, we have shipped nearly 37.5 million orders across 141 unique countries and have positively impacted billions of lives around the world. Each year we strive to create meaningful impact globally while building our portfolio of health and wellness products.” d i r e c t s e l l i n g n e w s . c o m 47

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Products to Be Proud Of

The main driver of the renewal and renaissance direct selling companies are experiencing is the increased legitimacy of the products that they offer. The top companies are going “all-in” on product efficacy and innovation, crafting comprehensive yet focused product assortments. This intense focus on improving the efficacy of these products has taken many forms. From enhanced research and development to the use of patented exclusive formulations and proprietary ingredients to careful sourcing of pure, rare, natural ingredients to a combination of all three, these are products customers actively seek out and truly believe in. According to Elana Gold, Chief Marketing Officer at Rodan + Fields, “We have a world-class laboratory where our team of scientists work together to develop breakthrough products. And we tap into a global network of scientists to scour the earth for the right ingredients and technologies. This ensures everything we create is based on proven science and clinically validated.”

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Healthy Products = Healthy Sales

Health and wellness in general, and supplements in particular, have long been standouts in the direct selling space. So, it should come as no surprise that several category kings comfortably occupy this market. The legacy brand Nutrilite accounts for over half of Amway’s sales and continues to grow. Euromonitor ranked Nutrilite as the world’s number one vitamin and dietary supplement brand in 2020. Amway’s Chief Marketing Officer François Renard, shares that Nutrilite’s overall philosophy is simple: plant, grow, thrive. “From the 6,000 acres of certified organic Amway-owned farms as well as botanicals sourced from partner farms located on every continent except Antarctica, Nutrilite is commited to bringing the earth’s finest nutrients and health and wellness solutions to customers around the world. We extract the best from nature to provide vitamin, mineral and dietary supplements designed to fill nutritional gaps in our customers’ diets.” Another health and wellness company dominating in their category is Prüvit. Prüvit owns nine patents

in the ketones space and is the largest distributor of exogenous ketones in the world. Their flagship product, KETO/OS NAT is the world’s preeminent pure therapeutic ketone. But Prüvit is looking to go beyond supplements to become a more comprehensive part of their customers’ health regimen. They are achieving this by addressing evolving customer preferences head on. As Co-Founder and CEO Brian Underwood explained, “We recently launched into the food delivery category with Prüvit Meals and Snacks. So regardless of diet, whether the customer is full keto, carb conscious, Paleo, Mediterranean or something else, there is a plan that will work for them.” This innovative approach allows Prüvit to seamlessly provide more offerings, convenience and solutions to their customers’ lives.

T H E M A I N D R I VE R O F T H E R E N E WA L A N D R E N A I S SA N C E D I R EC T S E LLI N G C O M PA N I ES A RE E XP E R I E N C I N G I S T H E I N C R E AS E D LEGI T I M AC Y O F T H E P R O D U C T S T H AT T H E Y O F F E R .

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THERE ARE SEV E R A L DIR ECT SE L L ING BEAUTY BRAN DS TH AT H AV E CA RV E D OU T IM P RESSIVE NIC H ES FOR T H E M SE LV ES BASED ON LONG E V IT Y, NA M E R ECOGN ITION AN D CU STOM E R LOYA LT Y.

Another company making a strong impression in the health and wellness space is Herbalife. The global nutrition company was named “The World’s Number One Health Shake” and “The Number One Brand in Active and Life Style Nutrition” by Euromonitor. The company also retains its top rank in the world in four other Euromonitor categories, including weight management and wellbeing; weight management; meal replacements; and meal replacement and protein supplements combined.

Building Better Beauty Brands

Retail beauty brands have long set the standard for global dominance with powerhouse conglomerates owning significant chunks of market share. But there are several direct selling beauty brands that have carved out impressive niches for themselves based on longevity, name recognition and customer loyalty. One such brand is Artistry from Amway. This comprehensive line of skincare, cosmetics, fragrance and bodycare relies heavily on its research and development efforts to promote the brand’s efficacy. Botanicals, ongoing research and personalization options give the brand a unique, compelling story for consumers to respond to and engage with. Artistry has scanned and analyzed over 32,000 faces from all over the world to truly identify the skin concerns and needs of all people. The products are clean, vegan and backed by traceable proof that the products are pure and the formulas safe and effective.

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“We pride ourselves in using the latest cutting‑edge research paired with plant-based nutrients in our skincare and makeup solutions,” said Renard. “We know where products come from and how they are made. We obsess over quality, relentlessly checking at every step from raw ingredients to finished product.” Perhaps no other name is more synonymous with direct selling and beauty than Mary Kay. The company will mark its 60th anniversary next year and has been known for innovative high-quality products since its launch in 1963. The company reports that they see remarkable loyalty across their skincare, bodycare and color cosmetics lines. The company equips its sales force with cutting edge products and tools and a flexible business opportunity that fits a variety of lifestyles. Best-selling products include their TimeWise skincare line, Ultimate Mascara and Oil-Free Eye Makeup Remover, and they continue to enhance their line with regular product launches across all categories.

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Nathan Moore, President of Global Sales and Marketing at Mary Kay attributes their longevity and reach to trust. “People know they can trust us. Trust our products; trust our opportunity; trust our commitment to safety and research and to giving back. And with that trust we feel a true and deep responsibility. Our legacy guides us and we continue to be creative, innovative and disruptive.”

Premium Beauty

Cosmetics isn’t the only beauty category that direct selling shines in. Both MONAT and Rodan + Fields have achieved remarkable dominance as premium haircare and skincare brands respectively. And “premium” is an important distinction for each. Euromonitor has recognized both companies as leaders in these categories. “We have always benchmarked our products alongside other professional and salon brands. This means innovative ingredients and formulas and a high attention to quality,” shared Stuart MacMillan, President of MONAT. “When we launched, no one was talking about anti-aging for the hair—and certainly not in the direct selling space. Most people that come to us have seen the effects of aging on their hair: pollutants, bleaching, coloring and excessive heat. Our products not only help with those challenges but also help create a healthy scalp environment.” MONAT’s hero product, Rejuveniqe Oil is by far their best seller. In fact, 2.3 bottles of Rejuveniqe are purchased every minute around the globe. And it often serves as a gateway product for MONAT’s typical customer (their largest demographic is women ages 25-35) who then choose to adopt the company’s shampoos and conditioners into their daily beauty routine.

Rodan + Field’s hero product line is Regimens, and over the last 5 years, Rodan + Fields has, on average, sold a Regimen every four minutes. Gold attributes this to providing innovation that truly works and delivers visible results. Regimens address core skin conditions and reflect a large percentage of the company’s sales. The line features groundbreaking technology and serves as the centerpiece of the brand, addressing primary skin concerns such as aging, dullness and discoloration, dryness and sensitivity and acne. “Innnovation is in our DNA and is at the core of everything we do,” shared Gold, Chief Marketing Officer. “Our goal is always to make the most clinically efficacious formulas we can. Each and every step of skincare from cleansing to renewal to hydration to targeted treatments and environmental protection is optimized for peak performance.”

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A not-to-be-overlooked component of the emergence of direct selling brands is the undeniable power of a passionate, motivated distributor base.

Happy at Home

The concept of your home being a haven has never been more relevant than it has been the past two years. As the world shut down and billions around the globe stayed inside their homes, they looked for ways to make that space cozier, healthier and happier—a true respite from the harsh realities found outside their front door. Enter direct selling companies like Young Living and Scentsy—two billion-dollar companies perfectly poised to provide the products people were looking for in this unique moment in time.

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Young Living, a pioneer in the field of essential oils for nearly 30 years, shared that one of their top-selling “hero” products in essential oils is their Thieves home line. This line strongly resonates with their key demographic of mothers 25-45 looking to improve the health and wellbeing of their families without harsh chemicals. With products in the line ranging from waterless hand sanitizer, household cleaner, toothpaste and laundry soap, the Thieves essential oil blend finds its way into practically every room of customers’ homes. As Lyndi Smith, Chief Marketing Officer at Young Living shared, “Customers and distributors alike enjoy the warm spicy scent and many benefits of Thieves throughout their home, and with the Thieves home line, they can have it.” Scentsy has also become a category king, specifically in home fragrance. While Scentsy’s customers come from all walks of life, their biggest target market is moms with small children. “They’re drawn to Scentsy because of our unique, exclusive fragrances and superior quality products,” explained Lacy Hanson, Vice President of Consultant Sales and Product Development. “We develop such a wide range of fragrance products—from home fragrance to cleaning products to scented products for children and pets—that there is sure to be something for everyone.”

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The Ultimate Differentiator

A not-to-be-overlooked component of the emergence of direct selling brands is the undeniable power of a passionate, motivated distributor base. Their advocacy for the products and organic product recommendations—increasingly achieved through social media—have tremendous power to grow a brand’s reach and influence. As brands continue to use social media and influencers to bring new customers into the fold, the most successful brands craft a cohesive, intuitive USAGE OF TAGLINED customer experience. LOGOS It’s certainly true at Scentsy. “Our primary competition is in The tagline "AUDIT.TAX.ADVISORY" only accompanies the logo in the retail sector due to the immediate access to the product circumstances where context requires clarification about what Squire can do after purchase, as well as the ability to smell and experience for current and potential customers (the audience). the products in person before purchasing, ” explained Hansen. For example, Squire.com its their “However, the relationships our Consultants buildand with subsequent web pages feature the onetagline version (HIGHER customers continue to ultimately win the purchase every time. PERSPECTIVE ONLY) of the Squire logo because the subpage content Scentsy Consultants offer personalization and customization throughout the site provides adequate context to visitors. to a shopping experience you can’t find at Amazon or Wal-Mart.” On the other hand, if the team attends 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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The leading direct selling companies are producing high-quality products that people want at a competitive price. Gold agreed, “Rodan + Fields Consultants provide high-touch personalized service. It’s easy and convenient to connect with a Consultant via text, phone or video chat. And they have incredible digital tools to help customers find the best skincare products for their needs.” As Ryan Napierski, CEO of Nu Skin recently told North American CEO, “Social media platforms are becoming more than just social platforms, they are becoming commercial platforms with the rise of influencer and affiliate markets. Nu Skin has been doing influencer marketing for more than 30 years, just in an analog form. We have always believed in the power of word-of-mouth marketing going all the way back to the beginning of the company.”

Part of a Lifestyle

This sense of community and shared enthusiasm and authenticity lends itself to customers making these products part of their lifestyle in a bigger, more overt way. They become true brand advocates, sharing their product experiences and interacting with the brand online and becoming part of a bigger movement. This often leads to customers making the organic transition to distributor. “It’s common for customers to be so excited about their experience that they start sharing it with others,” said Underwood. “It makes becoming a Prüvit Promoter where they can earn free products, cash and other rewards for referrals a very authentic next step.” “MONAT has an amazing global network of over 400,000 Market Partners getting the message out about our revolutionary products,” added MacMillan. “Many of our current distributors started as customers.” Napierski agreed, “By taking advantage of the macro trend in influencer and affiliate marketing, as well as the shift from retail commerce to e-commerce and now to now social commerce, we believe that our go-to-market strategy becomes significantly more powerful.”

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This “brand-as-lifestyle” trend has another powerful benefit: customers incorporating more of the companies’ products into their routine. “We find that it doesn’t take long for customers and Brand Partners to start branching out,” shared Smith. “In fact, by month three, on average 60 percent of Young Living’s new 2021 enrollments had tried three or more products. By month six, that number increased to 77 percent!” Brand synergies play a key role at Amway as well. “We recently launched Skin Nutrition, a clean, traceable and vegan skincare line that works like supplements for the skin,” shared Renard. “The products are infused with Nutralite-grown botanicals. This crossover introduces Artistry customers to Nutrilite and Nutrilite customers to Artistry.” And at Scentsy, they utilize licensing agreements and corporate alliances with global giants like Disney, Star Wars, Marvel, Warner Brothers and the NFL and NHL to expand their reach to new, loyal audiences as well as establish credibility with a broader audience.

Sitting on the Top Shelf

Whether their dominance is best evidenced through sales figures, name recognition, longevity or a combination of all three, the leading direct selling companies are producing high-quality products that people want at a competitive price and with measurable results. It’s no surprise that each of these companies embody the tenets that direct selling was founded upon. As Ryan Rogers, Chief Investment Officer at Mary Kay explained, “We remain committed to my grandmother Mary Kay Ash’s guiding principles: live by the Golden Rule; give and expect nothing in return; and make everyone feel important. For nearly 60 years, these have been the moral compasses of our company. To remain commited to these values while leading the industry as a global company in nearly 40 countries is a really incredible thing. And we are really proud of it.” DSN

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Why Some of Retail’s Biggest Brands Are Exploring Direct Selling A SMART, STRATEGIC OMNICHANNEL APPROACH IS FUELING GROWTH.

BY STUART JOHNSON

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N THIS MONTH’S COVER

STORY, we took a deep dive into how direct selling companies have become true category kings—competing with and even surpassing retail brands that occupy the same space through product innovation, proprietary ingredients, nimbleness and incomparable customer service. And we aren’t the only ones who’ve noticed. Retail giants are now looking to direct selling models to enhance their brand presence and scope.

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DSN FOUNDER AND CEO STUART JOHNSON EXPLAINS THE STRATEGIES BEHIND THE TREND AND SHARES HIS THOUGHTS ON THE TOP COMPANIES INSIDE AND OUTSIDE THE CHANNEL WHOSE OMNICHANNEL APPROACHES ARE FACILITATING GROWTH AND BRAND DOMINANCE THROUGH SUPPLEMENTAL BRAND ENHANCEMENTS, SOCIAL SELLING INITIATIVES AND STRATEGIC MERGERS AND ACQUISITIONS.

Building Bigger Brands

The direct selling model is becoming more deeply ingrained within larger retail brands, especially in the beauty and cosmetics segments. This trend goes beyond online direct-to-consumer sales done by a retail company. It involves either the development of a supplemental direct/social selling brand within the parent company or the acquisition of a direct/social selling brand into a larger conglomerate. The benefits are clear and go both ways. Direct selling has robust social selling platforms that the parent company can leverage as well as presence in new markets. And the established retail brand lends credibility and exposure to the direct selling enterprise. Although this trend isn’t new, it is growing and shaping the scope and focus of the industry. Traditional retail brands are acquiring or merging with direct selling standouts to create even bigger international beauty brands. And these brands dominate across all categories: direct to consumer, retail, e-commerce and social selling.

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There are several very well‑known companies and celebrities launching social selling initiatives this year, each with the potential to change and shape the future of the channel.

THREE KEY T A K E A W AY S

1 / THERE IS A NEW FACE TO DIRECT SELLING

Unexpected retail brands are making forays into direct selling while existing brands are finding new ways to engage and recruit through social media.

2 / 2021 SAW AN INCREASE IN MERGERS AND ACQUISITIONS

The trend is expected to continue into 2022 and beyond.

New Ways to Engage and Empower Entrepreneurs

There are several very well-known companies and celebrities launching social selling initiatives this year, each with the potential to change and shape the future of the channel. One recently announced example is Kendra Scott, a multichannel retail jewelry and accessories brand starting a direct/ social selling division. This 20-year-old brand was founded in 2002 and boasts $360 million in annual sales. Its entry into the social selling space, Direct Retail by Kendra Scott, shows tremendous potential. It borrows from traditional direct selling, but stretches the concept in new ways to help build the brand’s presence incrementally. Participants purchase a moderately priced starter kit that includes product samples; are given a user-specific URL; and receive a 20-35 percent commission on all sales. The company has strategically launched Direct Retail in markets where Kendra Scott has low penetration and no current plans to open a brick-and-mortar location—including Tacoma, Washington; Toledo, Ohio; St Louis, Missouri; and Laredo, Texas. The “win-win” potential is high. The brand gains traction within underserved markets, and the entrepreneurs not only have a highly respected brand to partner with, but the flexibility of setting their own schedule and pace.

3 / DIRECT SELLERS CONTINUE TO INNOVATE CUSTOMER ACQUISITION STRATEGIES

Social selling capabilities empower distributors to share products more effectively.

Additionally, Total Life Changes recently introduced a Product Influencer Program that’s very reminiscent of affiliate marketing. It allows customers that enjoy and believe in the products but don’t want to become distributors in the traditional sense to use their influence to encourage others to buy the products via social media, earning $20 for every product purchase. Best of all, Product Influencers get paid the next day after a qualifying sale. Another aspect unique to direct selling is its ability to capitalize on social media impulse purchases. Companies that have benefited from creating a perfect storm of low price point (under $50); dynamic, innovative products; and a simple, streamlined purchasing process via social media include Younique’s lash product; Nu Skin’s toothpaste; Colorstreet’s nail products; Paparazzi jewelry; and SeneGence LipSense. d i r e c t s e l l i n g n e w s . c o m 6 1

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TWO LESSONS FOR DIRECT SELLING FROM DIRECT-TO-CONSUMER BRANDS A RECENT ARTICLE IN THE HARVARD BUSINESS REVIEW TOOK A DEEP DIVE INTO HOW DIRECT-TO-CONSUMER BRANDS CAN CONTINUE TO GROW. DIRECT SELLING CAN TAKE A

PAGE OUT OF THEIR PLAYBOOK BY KEEPING THESE GUIDING PRINCIPLES IN MIND.

ACCOMPANY THE CUSTOMER BEYOND THE INITIAL TRANSACTION.

DTC brands can travel with their customers all along the decision journey, following through on product use and experience after a sale. Because DTC companies don’t rely on middleman retailers, they have access to customer information, allowing them to conduct direct conversations with customers. Founded in 2012, Peloton has transformed its business model to follow DTC sales of hardware, mainly its $2,500 exercise bikes, by offering annual subscriptions costing roughly $500 for access to exercise classes via livestream and on demand. The company’s model revolves around the notion of “consumption by a community.” Direct sellers, like DTC brands, have the benefit of being in direct communication with their customers as they consider, evaluate, choose and

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experience products. As a result, these brands sit on troves of information about shopping and usage preferences—data that traditional retailers can’t touch. Brands should actively use the resulting insights to spur innovation; build community; strengthen the value proposition; and deliver satisfaction at every possible touchpoint.

CAREFULLY CONSIDER PRODUCT LINE EXTENSIONS

Warby Parker introduced nationwide product sampling in 2010 with a program called Home Try On. Customers chose five pairs of eyeglass frames online that were then delivered for inspection, free of charge. Customers chose the frames they wanted to buy and uploaded a prescription. Because Warby Parker maintained close relationships with its customers, it learned that people with complex prescriptions preferred to shop

for glasses in person. The same was true for customers who preferred a wider selection of frames. That provided a good rationale for shifting to an omnichannel strategy, and after three years of selling exclusively online, Warby Parker opened its first brick-and-mortar locations. The company extended its inventory to include moreexpensive progressive lenses, blue-light-filtering lenses and light-responsive lenses. It also launched a line of contact lenses, supplementing its product line without weakening its core value proposition. There is a real lesson here for direct sellers. Product line extensions can build loyalty, increase order sizes and keep customers coming back for more. But often, brands make them without first ensuring that the additions make sense for their brand. Random product extensions risk coming across as inauthentic to customers and distributors. Make sure that any add-ons still reflect the products and branding that made you successful. DSN

“

I expect more consolidation in the channel this year as companies look for more stability and market share in an increasingly volatile environment.

These social media “selling systems” and others like them have successfully acquired tens of millions of customers in direct/social selling—this strategy has really developed over the last five years. Other direct sellers are introducing similar programs and encouraging existing distributors to use this exciting social selling system as well.

Beautiful—and Strategic—Partnerships One of the top stories coming out of 2021 that I anticipate continuing into 2022 is the increase in strategic mergers and acquisitions. This is happening at companies of all sizes, and I expect more consolidation in the channel this year as companies look for more stability and market share in an increasingly volatile environment. Rumors of pending deals are plentiful, and one thing seems certain—this is a trend that will continue through 2022 and beyond. These partnerships and acquisitions have several strategic benefits for the companies, allowing them to expand on their strengths; address deficiencies; provide a better, more holistic customer experience; or fill in gaps in their product assortment or social selling capabilities.

Carlyle purchased majority interest in Beautycounter in April 2021 at $1 billion+ valuation. The partnership will allow Beautycounter to accelerate its strategic initiatives, including increasing brand awareness as well as bolstering the company’s integrated, omnichannel business model. Carlyle benefits as well. The investment builds on their long-term focus on partnering with founder-led brands focused on growth. Beautycounter has leveraged a wildly successful omnichannel model. Their products can be purchased in a variety of ways: through one of 65,000 consultants; directly on their website via shoppable live-streams; traditional retail options through seasonal pop-ups in Sephora; and brick‑and‑mortar locations in markets like Los Angeles, Denver and New York. Groupe Rocher, a French-based international cosmetic and beauty brand, greatly expanded its portfolio into direct selling when it acquired Arbonne in 2018. The family-owned company owns and operates retail locations throughout France but had little direct selling presence prior to acquiring Arbonne. d i r e c t s e l l i n g n e w s . c o m 6 3

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Retailers and direct sellers alike are adopting an even broader omnichannel approach. The brands share similar values and botanically-based products. Groupe Rocher understands the value of the direct selling model, and the addition of Arbonne allowed them to become a $3 billion company. L’OCCITANE en Provence is another huge beauty brand making an impression in the direct selling/social selling space. They acquired direct-selling standout LimeLife by Alcone in 2017. The brand has been providing professional makeup artists with their products since 1952 and found social selling to be a natural way to extend the brand to consumers with these influential professionals. The emphasis on social selling continued in 2020 with L’OCCITANE’S U.K. launch of DUOLAB, a social selling-based skincare startup engineered to strengthen its e-commerce sales and grow its digital presence. In June of 2021, L’OCCITANE en Provence announced plans for the company to expand its omnichannel beauty and lifestyle presence through the direct selling model once again. This was part of the company’s North American business transformation and is designed to help the company develop a more personal relationship with its customers. The result is MyL’OCCITANE, a brand-new social selling platform.

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Mergers that Maximize

In December 2021, health and wellness standout Prüvit merged its exogenous ketones business with direct-to-consumer ready-to-eat healthy meal and snack delivery company Sunbasket to supplement and complement the brand’s healthy lifestyle offering. This combination is an all-stock deal that values the new company at more than $1.3 billion. The combined company, called PSB Holdings, will focus on creating a single wellness platform combining food kits and supplements, along with an existing community of health and fitness users. The company also has plans to expand wellness offerings. It’s the kind of brand extension that not only makes sense for the company but also adds tremendous value for the customers and distributors who can now easily order and enjoy the keto‑friendly meals and snacks that enhance the Prüvit lifestyle. Nu Skin acquired Mavely, an emerging social commerce platform that streamlines customer acquisition and social selling in November. The Mavely acquisition is expected to bring new social selling capabilities to Nu Skin distributors, empowering them to help consumers more effectively discover, share and purchase products. Mavely’s proprietary technology will help Nu Skin accelerate its growth in the global social commerce market. In the coming year, Nu Skin plans to introduce new digital tools to help the company’s distributors expand their reach across social platforms. Retailers and direct sellers alike are adopting an even broader omnichannel approach through brand and product extensions, social platforms and mergers and acquisitions that round out and supplement these brands’ presence and dominance in an increasingly complex and rapidly evolving environment. DSN

STUART JOHNSON has served the direct selling industry for 36 years and is the sole Founder and CEO of Direct Selling News. 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 DSN Global Celebration. Stuart is arguably the most connected person in direct selling, building and growing a network of executives, thought leaders, strategists and innovators. His advice and counsel are sought after by leaders throughout the channel.

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reMarkable 2 reMarkable 2 is an innovative new tablet that allows you to take notes, read, review and markup documents—with a paper feel unlike any other digital device. Creating focus by eliminating the distractions of other tablets, the reMarkable 2 is billed as an unmatched writing experience that digitizes meeting notes, to-do lists or writing of any kind. It eliminates the need for printing documents, as you can open PDFs and eBooks and write directly on the page, syncing your work to the cloud. And the matte display lacks a blue backlight, making it easy on your eyes. As the world’s thinnest tablet, it’s also extremely portable. Kind of like paper—with digital superpowers that help streamline your work.

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It’s human nature to define accomplishment as sales or revenue. Yet how I would define success looking back over the past 20 years is how many lives we’ve changed. — M A R K P E N T E C O S T / Fo u n d e r & C h a i r m a n o f t h e B o a r d

Mark and his wife, Cindy, attribute their success to being others-focused, having founded It Works! as a vehicle to change lives. Throughout the tenure of their leadership, this philosophy has served them well. From bootstrapping the company in its early days to owning a private island, the Pentecosts have embodied the American Dream through their experience with It Works!. Now, after 21 years of business, the company and product line continue to evolve, but the foundation of It Works! remains the same. “I’m so proud of what we’ve built over the last 20 years, but what I’m most proud of is how many lives we’ve been able to impact in the process,” said Chief Field Officer, Kami Pentecost. “I get goosebumps when I think about how many more families will get to achieve their dreams over the next 20 years with the opportunity we’ve created.”

Humble Beginnings

Although It Works! was founded as a means to change lives, originally, the Pentecosts were the ones who needed a change. In the 1990s, Mark taught high school math and coached basketball while Cindy stayed home with the kids and ran a daycare. As a growing family living on limited income, they sought to earn an extra $500 a month to make ends meet. Direct sales provided the answer.

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Mark and Cindy joined a popular network marketing company and quickly achieved success— earning the highest rank possible. But the opportunity didn’t last. “We were fortunate enough to be Top Ten in a very successful company,” explained Mark. “But they didn’t keep up with the products, and it went away. We said if we ever do this again, we are going to own the company. We want control of our destiny.” Through their industry connections, a unique product eventually crossed their path. In 2001, armed with their famous Skinny Wrap, a body contouring wrap, and the intent of serving others, the Pentecosts launched their own family business: It Works!. But even with an effective product, the company experienced a rocky start. “People see where we are today—the office, the energy—and they don’t realize there was a time when our CFO asked how long he should allow me to keep putting money into It Works!,” Mark remembered. “But it’s hard to beat someone who never gives up.”

His tenacity paid off. Before long, the supply of Wraps couldn’t meet the demand. Mark chuckled, “We called it The Great Wrap Shortage. In business, there are always going to be ups and downs. The first 20 years wasn’t always smooth sailing. We hit obstacles, but we found a way with a great team to figure out how to get through it together and to find the ‘win’.”

Defining Success

In the years since, It Works! has expanded into four distinct product categories that provide a holistic approach to well-being—from energy and nutrition, to beauty and weight management. And through founding the It Works! Gives Back Foundation in 2014, the Pentecosts helped generate a tidal wave of philanthropic change that continues to swell. Last year, the It Works! Gives Back Foundation united with the Pentecost Foundation pledged $1 million to charity in commemoration of the company’s 20th anniversary. d i r e c t s e l l i n g n e w s . c o m 7 1

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“It’s human nature to define accomplishment as sales or revenue,” Mark observed. “Yet how I would define success looking back over the past 20 years is how many lives we’ve changed. Each team member is a life, a family. We have many multi-generational businesses within It Works!. Others have moved on but come back years later to say they were able to use our core values and principles of debt freedom to live better lives. To me, that’s success.”

Building on the Dream

Between their family-focused company culture and first-to-market product offerings, the Pentecosts laid a solid groundwork for It Works! from the beginning—a foundation on which they’ve been steadily building ever since. Looking to their next 20 years, the It Works! team is focused on growing more strategically than ever, particularly in a postpandemic market threatened by recession. Ever the optimist, Mark and his team only viewed these challenges as learning opportunities. “The pandemic forced people to evaluate who they work for, when they work and how they work,” he said. “In a person-to-person industry, the pandemic made us realize we needed to improve our training and onboarding virtually. It was tough, but it made us stronger. We already knew the importance of a mobile-first approach. The pandemic simply made us speed up those timelines.” The It Works! corporate team continues to embrace a digital approach to direct sales while promoting human connection. Developing innovative ways for the field to work their business

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from their phones remains a top priority, including the introduction of a new platform, Impact Professionals, which gives their leaders a place to learn and grow. “We equip them with tools to grow anywhere, anytime. We empower our team for social selling and influencing, because our teams are getting younger and connection happens differently now,” Mark explained. “Impact Professionals is an example of how we combine training, education from some of the finest minds in today’s world and a place for influencers to share great ideas. Change is hard, but it’s so important to evolve. The days of your grandma’s in-home living room party are over. But the fundamentals of It Works! are the same: we treat people well, and we show appreciation and recognition. It’s just a different delivery—through a mobile app or a social channel. Sometimes it’s a hybrid approach, but connection is constant.” For example, the corporate team initially planned for the 2022 It Works! Conference to remain entirely virtual. As time progressed, they realized the importance of getting leaders together in person and quickly pivoted. After the main Conference ran virtually, the team took the event on the road across seven states, meeting with thousands of team members in person—as well as over 10,000 virtually. “What we’ve done in the last few years is set ourselves up to be ahead of the trends, with products, branding, and marketing tools, to be ready for what’s next,” Kindsey Pentecost, Chief Marketing Officer, shared. “We have a dynamic team that is able to move quickly in all of our markets, here and abroad.”

President David Vanderveen agreed. “It Works! has laid a remarkable foundation for growth internationally. Navigating the pandemic gave us tremendous opportunities to improve service levels for social selling and remote training while finding new ways to work. I’m incredibly excited about what we are doing and the potential for quantum leaps that we are starting to experience in international markets.”

Committed to Winning

Intentional and International

In the early days of It Works!, resources were at a minimum and hiring competitively was difficult. As the business quickly scaled, constant product development, field training, market launches and events were the collective priorities. But Mark says one thing he’s learned from the last 21 years is the importance of slowing down enough to be intentional. “We’re now focused on building a ‘Power Team’ in every department,” he explained. “We have exceptional talent that has grown with us, and we have amazing talent that we’re bringing in. We are looking for our Corporate Team to represent our Field Team demographically. We’re thoughtfully putting together departments that are the best of the best in our industry. Our goal is to change even more lives.” The “Power Team” hiring strategy excites Mark, who believes it will help the company continue to scale with unparalleled quality, particularly as growth continues internationally. With products in multiple recession-proof categories, International

Learning from the past and evolving with the present has helped position It Works! for a bright future—but Mark of all people knows it won’t always be easy. “When you achieve some success in life, people say, ‘You’re so lucky.’ But ‘lucky’ is grit. ‘Lucky’ is heart. You have to keep pushing through the tough times to reach the other side.” For the Pentecosts, the direct sales industry provided the platform for success that they needed all those years ago. “I’m really proud of this industry,” Mark shared. “It still gives opportunity to people no matter their background, education or demographic. There isn’t a ceiling. That’s what it did for my family; we are products of this industry. We needed a vehicle that would work for us if we worked hard. To pay that forward has been a blessing, because that’s why we built It Works!—to help others.” And after more than two decades in business, It Works! is only getting started. “The world has changed, and we have felt it in every space, including our channel,” said Chief Sales Officer Meredith Tieszen. “It Works! focused the last 20 years on our culture, field leaders and providing a great opportunity. We are prepared for the next 20 years and beyond.” Always dreaming big dreams for the future, Mark agreed. “We entered 2022 with a new kind of energy and momentum, both at home in the United States and in our international markets. We learned a lot through the pandemic about how to improve our tools. We’re building our Power Team. These opportunities are only making It Works! stronger. Together, we’re more committed to winning than ever before!” DSN d i r e c t s e l l i n g n e w s . c o m 73

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LIMELIFE BY ALCONE /

Female Financial Empowerment LimeLife’s new compensation strategy helps women raise their confidence while boosting their earnings. BY SARAH PAULK

UPPORTING WOMEN MEANS more than simply providing community and friendship. Authentically helping women

means funding and laying the groundwork that creates opportunity for them to succeed, both professionally and at home.

FOUNDED:

2015 HEADQUARTERS:

New York TOP EXECUTIVES:

Michele Mallardi Gay, Co-Founder & Co-CEO Madison Mallardi, Co-Founder & Co-CEO PRODUCTS:

Cosmetics and Skincare

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Recognizing these truths, LimeLife by Alcone has been designed with female financial empowerment as its core mission. Michele Gay, the company’s Chief Executive Officer, believes that equipping women to reach their financial goals can change the world, one woman at a time. “This isn’t a vapor dream,” Gay said. “It’s very tangible, and we see it every single day.” After launching as a brand that sold lashes and theater makeup to Broadway stars in 1952, LimeLife has gone through a number of transformations, ultimately evolving into a direct selling company under Gay’s leadership, while still clinging to its professional makeup roots. Today, the growing company continues that process of transformation as it prepares for Gay’s ultimate vision: To become a billion-dollar global brand.

Elevate Your Confidence, Elevate Your Earnings

Gay’s billion-dollar vision represents more than cash flow and prestige for the company. Earnings of this caliber mean LimeLife would be generating $400 million in commissions annually for its sales field, effectively creating life-changing income for the company’s distributors (called Beauty Guides) and a significant leap toward female financial empowerment for women around the world.

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We really focused the compensation plan on significantly boosting the earnings, rewards and recognition of people as soon as they come in to let them know that it’s working. — M I C H E L E G AY / L i m e L i f e C h i e f E x e c u t i v e O f f i c e r

To bring the company closer to this goal, Gay and LimeLife’s leadership are enacting a new strategy that will push the company into its next phase of transformation, beginning with its compensation plan. Prioritizing retail sales rather than recruitment, this updated commission model removes structure and downline building as requirements for promotion. LimeLife Beauty Guides who want to build and inspire a team can do so at their own pace, but it won’t be required for them to advance in the company. The home party will continue to be a significant growth driver and integral part of the company’s approach to business building, but with this updated compensation plan, Gay is steering the company toward what she sees as the next wave of relevance in the industry. “When we first launched LimeLife, it was all about party planning,” Gay said. “So, our compensation plan was built on a party plan model. For us, though, the urgency is that we need to evolve towards the normalization of e-commerce and digitalization, or we’re going to become irrelevant.” Beauty Guides will also be earning faster with this updated plan. Rewarding product sales faster provides a stepladder that is more attainable for more people, and a method that

Gay hopes will help entrepreneurs new to the industry hang in there while their young businesses gain traction and momentum. “Direct sales earnings are a true compounding curve, but compounding is very hard for people to see and believe in,” Gay said. “In the beginning it feels like these little drops of water, but you are actually filling a swimming pool because the drops begin to replicate as they fall. We really focused the compensation plan on significantly boosting the earnings, rewards and recognition of people as soon as they come in to let them know that it’s working.”

How 2Be Free

Earnings may get the most attention, but Gay has found that recognition is an essential component of the financial empowerment equation. Only two percent of LimeLife distributors, Gay says, would describe themselves as money-centric, meaning they see their paycheck as the main pillar of what recognition means to them. For the other 98 percent, Gay has discovered that recognition also means helping women step up their confidence levels, while feeling seen and heard.

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LimeLife’s monthly sales and enrollment incentives were a big part of recognition. The company would create challenges each month for their field and reward them an incentive. Monthly incentives were usually predetermined and ordered months in advance, without an accurate way to predict how many to purchase. The system resulted in a waste of resources for the home office and incentives that didn’t always match the interests of all distributors. To provide an upgrade, Gay and her executive team created the Free2BeMe program. Rather than earning something that the distributor may or may not have wanted, they earned 2Bes. Distributors can accumulate their 2Bes and then redeem them at the Free2BeMe store for thousands of items, from gift cards and Apple products to hotel stays and flights.

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The Future of Retail Is Direct Sales

“We run reports each month, and it is so cool to see what people are redeeming,” Gay said. “Part of female financial empowerment is not wasting your money, and so the Free2BeMe store is in alignment with that. Distributors can focus on those things they really want for their lives without financial waste.” Recognition is a powerful motivator, but Gay and her team also recognize that entrepreneurial women face additional hurdles in their journey to both financial and personal freedom due to gender inequality in the workplace and at home. LimeLife Beauty Guides who want to launch their own businesses are not only juggling the demands of building and growing something from the ground up, they also likely bear a disproportionate amount of responsibility for domestic labor, familial and relational efforts and child care. Gay has witnessed how bridging this gap between a woman’s potential and her current limitations is essential for LimeLife’s entrepreneurs. By offering an ongoing monthly lifestyle bonus as well as an ongoing monthly executive assistant bonus for its highest ranks, LimeLife gives women at the top of their game the room they need to run. “If they’re playing at that level, they need someone to assist them,” Gay said.

There are more transformations ahead for the company. LimeLife’s customer appreciation program, which is currently complicated and robust, is being streamlined into a Starbucks app‑inspired system where customers will be able to manage their auto-ship subscriptions and unlock rewards. Similarly, onboarding will be streamlined to accommodate all ages, but especially the emerging generation who has a higher rate of digital adaption and expectations. All of these changes reflect a leadership team who isn’t afraid to renovate its established systems and processes and reevaluate its trajectory while still remaining true to its roots. As a longstanding traditional business that chose the direct selling industry, LimeLife’s leadership team has a unique perspective on where the future of retail is headed. Other big-name brands within the beauty industry have heavily invested in brick-andmortar infrastructure and real estate, but in the wake of the pandemic and decreased foot traffic, those companies are now scaling back to lower their overhead costs. For Gay, this moment in the market landscape has opened a new opportunity for LimeLife. “We’re coming at it from the other direction,” Gay said. “In my opinion, the scale of change looks like retail transforming into e-commerce as the primary form of shopping. I think the final stop on that journey, as far as I can see, is direct sales. In e-commerce, the number one important part of a purchasing decision is a recommendation from a trusted source or friend. And that’s what we do. Retail stores are trying to catch up, and we’re on the other end, pulling it towards us.” DSN

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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 Kindra Hall about the Power of Storytelling. BY PAUL A FELPS

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

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KINDRA HALL

N OUR NEW EPISODE OF ICONIC INSIGHTS, host Heather Chastain sits down with Kindra Hall, best-selling author and popular keynote speaker. Kindra’s work and research centers around teaching individuals and brands to harness and leverage the power of their stories. Her newest book, Choose Your Story, Change Your Life, looks at how to change our inner narrative to overcome personal and professional obstacles. In this interview, Kindra talks about how she found her calling as a storyteller, why the stories we tell ourselves are so important and how leaders can use these principles to guide and motivate their team. HEATHER CHASTAIN: Can you give everybody a little bit of your background? How did you land at this place where you end up with a title of professional storyteller? KINDRA HALL: I was one of those people who found what I was meant to do at 11 years old. To tell a story and see so clearly and powerfully the impact a story has—at the exact time where I was trying to kind of establish my voice and figure myself out—was such a gift. I’ve been telling stories ever since. I spent a lot of time telling stories for entertainment purposes and then it moved into studying stories to see why they are so powerful, until finally now, teaching people…what a difference a story can make in their business and in their own lives.

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I started seeing myself constantly as a main character. And when you do that, you start to see adversity not as the end, but as an interesting middle of a story.

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I get to choose how I see the stories that are happening in my life. I get to choose when the story ends.

HEATHER: When did you start to realize the power that has on other people, and that maybe the same psychology works when you tell your stories inwardly? How did that come to you? KINDRA: I think it was kind of progressively over time, as a person who started recognizing the power of story and was studying that and just fascinated by it. It was kind of a natural progression. When I started telling stories, I was telling other people’s stories. But the classic storytellers that I was following, what I loved about what they could do was take small personal moments and turn them into stories that they could share on stages and share outwardly. And so I was constantly—and this happened then when I was like 17, 18 years old—I had this desire to be able to do that. But I’m thinking I’m 18. I don’t have any content. I was acutely aware of things that were happening to me in my life and kept asking myself: ooh, could that be a story? Could that be a story? What happens in that moment, there’s something called main character syndrome where it’s something that you do. It’s a syndrome that describes walking around in your life, seeing yourself as the main character in the show. I started seeing myself constantly as a main character. And when you do that, you start to see adversity not as the end, but as an interesting middle of a story.

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That is really where I started to recognize, well, now I get to choose how I see the stories that are happening in my life. I get to choose when the story ends and the story I get to tell about the story that happened. HEATHER: I love that. When you view adversity as the middle of the story, not the end, I think that’s super powerful. What I realized in my life is it also changes not just how you view it, like how you feel about what’s happening to you. But it also made me more of an active participant in crafting my response and therefore the outcome. KINDRA: Absolutely. It gives you an entirely different perspective. So, for example, my first book, Stories That Stick, was a huge success for launch week. I had worked really hard, and I felt really good about it. We were on the Wall Street Journal bestseller list. We were on all these bestseller lists, but my goal was The New York Times bestseller list. Now that list is not a matter of just numbers, how many books you sell. I outsold most of the people who made it on that list that week, but a lot more goes into it. And so I missed that goal. It was a big goal. One I’d been working on, you could say for a lifetime, but certainly for the course of the launch of that book. And I don’t know if you’ve ever missed a big goal before, but it was really heartbreaking. It was really frustrating. When the list is released, you get

To find out more about Kindra’s new book, Choose Your Story, Change Your Life, check out our review on page 67.

a call from your agent saying whether or not you were on it. And my husband broke the news. I remember we were backstage. I was speaking at an event; I had just gotten off stage. He was in the green room, and he said, “Kindra, you didn’t make it.” And he was waiting for me just to cry and sob, just because we’d worked so hard, and I was exhausted. And maybe that’s what I would’ve done, except that I am now so practiced at seeing this as a middle of the story that instead I took a breath. And in the back of my mind, I remember thinking, oh, well, this is going to make the story—when I do make the list—even better. So at that moment, I responded differently. Now I will say in that moment I showed a lot of grace, and that was great.

SCAN THIS QR CODE TO PURCHASE KINDRA’S NEW BOOK.

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HEATHER: When you think about the importance of that narrative, that story, talk about it from two perspectives. We’ve talked about it a little bit from self, that you can sort of craft your own story. But talk about it from the perspective of people that work at direct selling companies, or even field leadership charged with inspiring that in others. Are there ways to think about how to get somebody to make that shift in their thinking? KINDRA: Once you read or understand this concept of oh, my entire life is shaped by the stories I’m telling myself—whether those are good stories or whether they’re bad stories, whether they’re stories that serve me or they’re stories that hold me back...Once you figure that out, it feels a lot like the passion you have for whatever your entrepreneurial endeavor is, you just want to tell everybody about it. But the thing that you can’t do then is when you hear somebody, because once you realize that this is what it all is that it’s just the stories holding people back…you cannot say to them, “You should check the story you’re telling yourself,” or “Are you sure that’s a story you should be telling yourself?” because it’s so irritating on the other side of it.

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So, what I would recommend, if you are a leader who is tasked with helping people see their own stories for what they are, is instead of focusing, perhaps on the negative stories that they’re telling themselves, instead ask them questions that will lead them to seeing the good stories. So, if there’s someone who’s like, “Well, I’ve just never been successful, why would I be successful at this,” then to say, “Did you play any sports in high school or what was your favorite hobby?” Find the thing that they were good at. And then if let’s say they were like, “Oh yeah, I was on that track team. I just loved running.” “What was one of your favorite races that you run? Do you remember one of your best track meets?” Bring them back to that story so that they can relive. Because what is that? If at a successful track meet, that is a success. And so have them relive that positive story, then it’s your job as a leader to connect the dots from that win to the win here. What did that require? That required practice, that required discipline, that track meet required pushing through when it hurt. HEATHER: So, you get them in that frame of mind of when they had the success and then help them sort of draw those parallels and apply it to the current.

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KINDRA: Yeah, to the current here. So, that’s one of the strategies in the four-part method that I lay out, the third step is choosing better stories. And one of them is redirecting, pulling a story from a different area of your life and applying it to your entrepreneurial journey. One of the problems with just how we’re programmed is—and especially as entrepreneurs, we are terrible at this—is not paying attention to our successes because we’re always focused on the next one. We’re like, well, I’ve achieved this goal, but that goal almost doesn’t even matter anymore because I have my eyes set on that goal. Goal setting is an important part of success in entrepreneurship. It’s what can drive you and give you fuel. However, if you’re never paying attention to those success stories, even the small ones, you are missing out on a huge opportunity for fuel to fix that glitch we have in our brain to think about the negative. So, let’s apply this back to your original question. If you have somebody come to you and say, “I can’t do it,” take them back to the beginning of their journey and say, “Remember when you said you couldn’t get your first products for free?” Because we forget about the small successes and one of the key things you can do as a leader is take them right back there. DSN

Goal setting is an important part of success in entrepreneurship. It’s what can drive you and give you fuel. However, if you’re never paying attention to those success stories, even the small ones, you are missing out on a huge opportunity for fuel to fix that glitch we have in our brain to think about the negative.

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JUNE 5–7 . BOCA RATON, FLORIDA

CONVERSION IMMERSION DISRUPTION & TRANSFORMATION OF DIRECT SELLING PRESENTED BY

DSA ENGAGE: Conversion Immersion will bring the future into focus. This is where we will explore the countless unknowns ahead, and seek new ways to harness the limitless opportunities we face. The event will explore the disruption and transformation of business today: the technologies that are already helping us transform our organizations, the innovations that are already emerging, and what we need to do today so that we can thrive tomorrow.

KEYNOTE SPEAKERS JONATHAN BRADSHAW Creator, Meetology ®

KINDRA HALL Best-Selling Author, Stories that Stick

DAVID MELTZER Co-Founder, Sports 1 Marketing & Television Producer

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R E G I S T E R T O D A Y AT E N G A G E . D S A . O R G

D S A

M E S S AG E

Let Your Road Lead to Boca

IFE IS A JOURNEY, and these past two years, that journey has been filled with twists and turns. And now it’s time for your road to lead back to your friends and colleagues to explore the transformation of the direct selling business model at DSA ENGAGE 2022: Conversion Immersion in Boca Raton, FL, from June 5-7, 2022. DSA ENGAGE co-chair, Joni Rogers-Kante, has emphasized that this annual meeting is where we will bring the channel’s future into focus. We’re also planning lots of fun: Bring your spouse or significant other to enjoy activities that will strengthen our bonds of fellowship. Aside from the five-star Boca Raton Resort & Club location, you can’t miss discussions about the technologies that are transforming our organizations; the innovations that are challenging what we know; and the need to adapt our knowledge to ensure our continued growth and prosperity. An exclusive DSA direct selling member CEO Retreat—a preconference event—will allow CEOs a one-on-one confidential environment for frank discussions among peers. DSA member executives will also be able to arrive early to participate in Exclusive Executive Sessions to share and learn from their peers in facilitated roundtable discussions on top-of-the-mind topics. Supplier members will gather in their own Exclusive Executive Session. Our agenda will provide main stage keynotes from keynote speakers Philippe Guerreau, President SeneGence International and Tyler

MELISSA K. BRUNTON Senior Vice President, Education & Meeting Services, DSA

#COMMUNITY #STRONGERTOGETHER

Van Whitehead, CEO, Arbonne International. These will be complemented by outside keynote speakers: • JONATHAN BRADSHAW, Founder of Meetology, will arm you with tools and psychological insights to help you connect in meaningful ways. • KINDRA HALL, the best-selling author of Stories that Stick: How Storytelling Can Captivate Customers, Influence Audiences, and Transform Your Business, will help you harness the power of your story so that you can inspire millions to achieve meaningful results. • DAVID MELTZER, Co-Founder, Sports 1 Marketing, will inspire you to work toward your daily goals to be more successful and fulfilled. • ERIC PULIER, founder of Vatom, will discuss the metaverse, NFTs and the future of the direct selling space. In addition to the three General Sessions and three Workshop Banks, the DSAPAC Golf Tournament, Bocce Ball Tournament and DSEF Boca Pool Party featuring Kevin Guest’s band, the Free Radicals are all fun-filled activities that will also support the channel. Daily sunrise strolls or yoga, the Let’s Flamingle Opening Reception & Scavenger Hunt, New Members and First Timers Orientation Reception, Supplier Partner-Sponsored After-Hours Party, SeneGence Beauty Bar and the Awards Gala & 80’s Themed Rock Concert with Kool & the Gang’s lead singer will make for exciting social and networking events. We look forward to seeing you in Florida! DSN

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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 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 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 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.

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

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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 cmsonline.com

Keller, TX 817-697-4321 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 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 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 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

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

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

1615 Clark Blvd. Brampton, Ontario L6T 4W1 905-564-2115 x2 canadacartage.com/direct-selling CCLS is your gateway to turn-key e-commerce sales and distribution in Canada. With fulfillment centers across Canada, our pick, pack and ship options, and real-time inventory visibility, we will help your business grow. We are NHP Site Compliant, Health Canada licensed, and GMP Compliant.

LaCore Logistics 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.

DELIVERZEN FULFILLMENT

KATAPULT EVENTS

1551 Corporate Drive Irving, Texas 75038 214-233-6790 deliverzen.com Deliverzen’s mission is to provide the best service in the order fulfillment industry.

5840 Red Bug Lake Rd, Ste. 140 Winter Springs, FL 32708 407-915-9060 katapultevents.com Fresh. Exciting. Bold. Your field deserves the best and we help you deliver. Out-of-the-box creative production with experienced show management. We execute on budget and make you look AMAZING!

EVENT PRODUCTION

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

E X E C U T I V E R E C R U I TM E N T

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

GLOBAL ACCESS

INCENTIVES/RECOGNITION

4505 Newpoint Place Lawrenceville, GA 30043 866-888-2999 Sales@amwarelogistics.com 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 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 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 customtravelsolutions.com Recruit and retain the right people for your organization — We are the world’s largest “white label” travel club builder.

d i r e c t s e l l i n g n e w s . c o m 8 9

ROYAL CARIBBEAN INTERNATIONAL

1080 Caribbean Way Miami, FL 33132 Royal Caribbean International’s Corporate Sales Team 800-345-7225 (SELECT 2, THEN 1) royalcaribbeanincentives.com

I N G R E D I E N T S A N D M A N U FA C T U R I N G

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.

FUTURECEUTICALS 2692 N. State Route 1-17, Momence, IL 60954 888-452-6853 futureceuticals.com Fruit, vegetable, and grain-based solutions backed with evidence-based, marketable claims.

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SELLING NEWS

M AY 2 0 2 2

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

S O F T WA R E / T E C H N O LO GY S O LU T I O N S

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

LEGAL AND COMPLIANCE

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

M A R K E T I N G/ B R A N D I N G

E.A. DION, INC.

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 DIRECTSCALE 1510 N. State St. Orem, Utah 84057 801-701-3285 directscale.com The most customizable enterprise SaaS platform for managing all aspects of your direct selling, affiliate and influencer marketing business. Edit your comp plan and test it against your live data! From startup to billion dollar company, it automatically scales to meet your needs so you never have to upgrade again.

NOW TECH

EXIGO

5800 Democracy Drive, Suite 100 Plano, TX 75024 310-428-9936 now-tech.com

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

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 bydesign.com

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

INTERNATIONAL DIRECT SELLING TECHNOLOGY CORP. 1208 E. Kennedy Blvd., Ste. 222 Tampa, FL 33602 813-277-0625 idstc.com

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

JENKON 915 Broadway Street, Ste. 400 Vancouver, WA 98660 360-256-4400 jenkon.com From Startup to Enterprise, Jenkon provides Direct Selling companies an award-winning, scalable platform unifying the future of direct selling: Openness, connectivity, omni-channel and conversational marketing.

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

XIRECT SOFTWARE SOLUTIONS

686 E 110 S Unit 104 American Fork, UT 84003 385-448-1800 xirect.com Scalable software from startup to enterprise. Your delivery expert in Commissions Calc / Consulting, Replicating Websites, E-Commerce, Reporting, Promotions, Localization, Multi-Currency, and more- The Perfect Cloud-based Direct Selling Software Partner!

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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

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

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

awards, 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

800-722-5934 / CELEBRITYCORPORATEKIT.COM d i r e c t s e l l i n g n e w s . c o m 9 1

The Experience Today’s Direct Sellers Expect, All in the Palm of Your Hand

Train, Instruct & Inform Drive Daily Activities Social Selling Promotions Recognition Promote Events Distribute Content Customer Shopping And so much more...

Proven Technology from a Trusted Partner with 35 Years of Direct Selling Experience Let’s Connect 310-428-9936 info@now-tech.com

To the person of genius who started a social selling business... Today we salute you with our payments services that can take you global... and beyond. Thank you, social selling person, wherever you are, because according to us you’ll always be our #1.

nex.io/genius