August 2022 Direct Selling News by directsellingnews

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DIRECT SELLING NEWS

VOLUME 18 / ISSUE 8

IN PO RI S W TA

IG ER DA H O VE F

AUGUST

2022

S CO OR G T/ NI TI O N

CULTURE– YOUR COMPANY'S SUPERPOWER SURVIVING (AND THRIVING) IN HYPERGROWTH MARKET AMERICA / CELEBRATING 30 YEARS

The Ones to Watch

MEE T THE YOU N G COM PA NIES THAT ARE FACING CHALLENG ES , B E ATING THE ODDS AND WINNING

Congratulations to Optavia & Plexus, our 2022 Bravo-Award winning clients! The DSN Bravo Awards are like the Oscars of Direct Selling—reserved for the best of the best! Congratulations to Optavia, winner of the Bravo Growth Award and Plexus, winner of the Bravo Impact Award.

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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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2022

C O N T E N T S A U G U S T

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F E AT U R E S

Culture—The Superpower of Truly Great Companies B Y PAU L A D A M S

Surviving (and Thriving) in Hypergrowth B Y J E S S E M C K I N N E Y

Top Lessons from DTC Referral Programs B Y L I S A R O B E R T S O N

36 58 66

SPOTLIGHT

Market America

Celebrating 30 Years

B Y J E N N Y V E T T E R

72 DEPARTMENTS

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

Your Essential Monthly Motivation

B Y

72 4 D I R E C T

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AUGUST 2022

CHELSE A HUGHES

ICONIC INSIGHTS /

Rita Davenport: The Power of Recognition B Y PAU L A F E L P S

I N EV ERY ISSU E 6 AD INDEX // 9 FROM THE PUBLISHER // 11 INDUSTRY NEWS // 30 FORWARD THINKING // 83 DSA MESSAGE // 84 SUPPLIER DIRECTORY //

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Stuart P. Johnson PUBLISHER

Shelley Rojas S T R AT E G I C A D V I S O R

COVER STORY

THE ONES TO WATCH

Heather Chastain EDITOR

Lisa Robertson editor@directsellingnews.com NE WS EDITOR

Sarah Paulk pr@directsellingnews.com C R E AT I V E D I R E C T O R

Susan Douglass ART DIREC TORS

Greg Luther Jenny Paredes

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PRODUCTION ARTIST

Megan Knoebel Ascencio COPY EDITOR

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BUSINESS DEVELOPMENT M ANAGER

Meet the Young Companies that Are Facing Challenges, Beating the Odds and Winning. BY BETH DOUGL ASS SILCOX

Jerilyn Taylor advertising@directsellingnews.com PROGR A MS AND SUBSCRIPTION M ANAGER

Nancy Ratcliff

CONTENT CONTRIBUTORS

Paul Adams Rita Davenport Jesse McKinney CONTRIBUTORS

Paula Felps Chelsea Hughes David Lee

Sarah Paulk Lisa Robertson Beth Douglass Silcox

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Success Stories that Inspire WE’VE ALL SEEN IT countless times, inside (and outside) the channel— companies that take off like a rocket ship but then struggle to maintain that momentum, unprepared and indecisive when faced with the realities of rapid growth. But then there are the companies that take off like a rocket ship and then figure out how to maintain a respectable cruising altitude. They face challenges and obstacles to be sure, but they set an ambitious trajectory to success and stay right on course. Direct selling has several of these up and comers right now—young companies with solid leadership, innovative products and serious momentum. We explore their stories in this month’s cover story. We also get practical tips on surviving and thriving in hyper growth by one of the channel’s most inspiring young Founder/CEOs, Jesse McKinney of Red Aspen, plus insights on the importance of corporate culture for young companies from renowned industry expert Paul Adams. We’ve also included an excerpt from this month’s Iconic Insights podcast where our host Heather Chastain interviews the always entertaining Rita Davenport. As well as a spotlight on Market America and a look at how DTC referral programs provide a blueprint for direct selling success.

DSN remains 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 the channel’s top stories first and fast. We invite you to make plans to join us in October for the Fall DSU executive educational event. Our second DSU of the year will be back with both inperson and virtual options available free of charge October 6 and 7, 2022 in Irving, Texas. You can register now at dsu2022.com. We also just had our first-ever DSN members-only workshop with Jason Dorsey in July. It was the kind of unique, limited-access event our member companies can utilize to grow forward. I invite you to consider becoming a member of DSN. You can read about the benefits and find out more information on page 28. All the best,

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/ INDUSTRY NEWS /

The Month in News Affecting Our Channel 12 / Events 14 / Insights 21 / Top 5 News Watch 22 / Executive Announcements 26 / CCR Program

/ INDUSTRY NEWS /

E V E N T S

EVENTS

LifeVantage Unveils TrueScience Liquid Collagen at Activate 2022

IFEVANTAGE CORPORATION ANNOUNCED THE debut of TrueScience Liquid Collagen, featuring Ruby Red Quinoa Extract and proprietary ingredients to “activate” the body’s collagen production, replenish depleting collagen levels and maintain collagen by reducing breakdown. “Collagen at LifeVantage had to be different,” said Steve Fife, LifeVantage President and CEO. “We are known for products that activate your body’s natural production of health essentials. For example, Protandim Nrf2 Synergizer supports your body’s production of powerful antioxidants. We found our answer for collagen by activating your body’s own production of this essential protein. We have seen incredible results after people have used TrueScience Liquid Collagen for only 30 days and are thrilled to unveil a revolutionary product that can help people look and feel healthy and vibrant.” The company revealed the product launch at Activate 2022, the company’s largest in-person distributor gathering since the beginning of the pandemic. More than 6,000 distributors attended in person and remotely. Also featured at the event were aligned sales incentives, updated social selling tools, distributor trainings and new company positioning.

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Plexus 2022 Ignite Convention Focuses on Strengthening Brand Ambassadors

LEXUS WORLDWIDE HOSTED ITS annual lgnite Convention in Columbus, Ohio, hosting more than 7,500 Brand Ambassadors in a three-day hybrid event that featured workshops, panels and educational presentations. The company also launched Plexus Reset, a product system designed to provide an alternative to intermittent fasting while delivering similar benefits. “We’ve been hosting Plexus conventions for more than ten years and it’s always so humbling to hear personal success stories about how Plexus products have ignited hope, health and happiness to so many,” said Alec Clark, Plexus Worldwide Founder and President. “This is why we do what we do, and why we’re committed to bringing Plexus to even more people around the world.”

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I N S I G H T S

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INSIGHTS

LegalShield Economic Stress Index Shows Increased Consumer Spending

egalShield’s Economic Stress Index from May 2022 illustrated that consumers are beginning to feel financially strained and are potentially entering a season of heightened borrowing costs and stress. A historically tight labor market has precipitated strong wage growth, with a 5.2 percent bump in average wages, but inflation has outpaced this advancement. When adjusting for inflation, wages actually declined throughout most of the last year while the cost of household staples like food, gasoline and utilities have risen sharply. These price increases have not yet produced an increase in overall consumer stress, but they have affected consumer behavior. “We’ve been keeping a close eye on how consumers are responding to the market during this tough economic time in our history and have noticed it getting worse month over month,” said Matt Layton, SVP of Data, Insights and Intelligence at LegalShield. “Americans are slowly beginning to feel the financial weight impact their daily lives, their

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financial decisions and how and where they’re going to spend their money.” Foreclosures have been easing back into pre-pandemic levels as government support programs expire, but continue to be low when compared to historic levels. While the LegalShield Foreclosure Index improved by 4.4 points in May, foreclosure starts increased 0.17 percent during the first quarter of this year. A robust labor market and increasing home prices forecast that a quick increase in foreclosure activity would be unlikely. While high demand for homes has continued to boost the housing construction market, rising mortgage rates and materials costs are expected to slow activity soon. Housing sales have also begun to slip. Sales are still expected to remain healthy, but housing affordability is a growing concern and new home sales are not expected to rebound any time this year. DSN

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Medifast Study Shows COVID-19 Pandemic Permanently Altered How U.S. Adults Prioritize their Health

edifast, the parent company for direct selling organization OPTAVIA, released the findings for their survey that explored the dieting patterns and health perspectives of more than 2,000 U.S. adults. Of participants, more than 70 percent said health was a top priority in their life, even more so than career or family. In contrast to this result, half of respondents reported that prioritizing health is a challenge, citing lack of time and few positive influences as their main obstacles. The global pandemic has also strongly impacted how U.S. adults feel about their wellbeing. The majority of participants (61 percent) said the COVID-19 pandemic permanently changed how they prioritize their health. According to the survey, nearly three in five U.S. adults have dieted at least once in their lifetime to help them feel good physically (50 percent), lose weight (48 percent), boost their energy and immune systems (47 percent) and feel good

mentally (47 percent). Only 28 percent of those dieters using a traditional diet method say it lasted, and 79 percent were likely to go back to their pervious eating behaviors after giving up. What would improve their chance for success? Two-thirds (67 percent) of participants believe their health goals would be more successful if they had support from other people who are on a similar journey to make positive lifestyle changes. “Consumers are seeking a comprehensive approach to lifestyle change that addresses the challenges of their everyday lives, and that shift in consumer desires is reflected in the recent rapid growth of our community,” said Dan Chard, Chairman and CEO of Medifast. “OPTAVIA is the solution for those who have failed on diets alone. These survey findings confirm why our innovative approach has impacted more than two million lives: There’s a clear need for simple plans and convenient products reinforced by the type of support that can help people create lifelong healthy habits.” DSN

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WFDSA Reports Global Direct Sales of $186.1 Billion in 2021

he World Federation of Direct Selling Associations (WFDSA) reported global direct sales of $186.1 billion in 2021. With the exception of China, which saw a 1.5 percent increase, worldwide retail sales increased 3.3 percent yearover-year. The direct selling global sales force saw a slight increase of 0.7 percent and now totals 128.2 million independent distributors. Within this number, 70 million are actively working to build their direct selling business as a full-time or parttime career. The COVID-19 pandemic continued to have a significant impact on the industry in 2021, including supply chain disruptions, lack of inventory and continued community restrictions and lockdowns. China’s direct selling market is still recovering from these disturbances. In spite of these challenges, direct selling was an attractive option for those who had been displaced from their jobs or resigned in favor of a position with more flexibility. Male participation in direct selling increased to 30 percent (from 26 percent in 2020) and the number of distributors participating full time increased by 12 percent. DSN

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/ INDUSTRY NEWS /

E X E C U T I V E

A N N O U N C E M E N T S

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

EXECUTIVE ANNOUNCEMENTS Jerry Felton & Frank VanderSloot

Chief Executive Officer & Executive Chairman of the Board of Directors Melaleuca announced that Frank VanderSloot, who has served as the company’s Chief Executive Officer since 1985, will now move into a role as the Executive Chairman of the Board of Directors. VanderSloot will be succeeded by Jerry Felton, who for the last decade has overseen the company’s international operations, and will now focus on the company’s corporate strategy, messaging, new product development and corporate culture. VanderSloot will continue to direct and manage the company’s marketing and legal departments. Felton will take over the responsibilities of the day-to-day operations of the $2 billion company and will report directly to VanderSloot.

Kim Drabik Board of Directors, DSEF The Direct Selling Education Foundation (DSEF) announced that Kim Drabik, Senior Director of Corporate Affairs for Plexus Worldwide, will join the DSEF Board of Directors. “Kim served as Chairman of the World Federation of Direct Selling Associations Advocacy committee from 2014 to 2020, and Plexus is proud to share a proven industry leader who is known for developing strategies and making a difference on behalf of direct selling globally through external stakeholder engagement, educational events and research,” said Tarl Robinson, CEO of Plexus Worldwide. Drabik will serve a three-year term beginning at the September 2022 meeting, and will work alongside other board members to “meet on a quarterly basis and guide the actions of the foundation to develop educational programs and content that accurately represent direct selling and its positive impact on the economy through micro entrepreneurship.”

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eXp World Holdings Announces Executive Appointments in Preparation for Growth eXp World Holdings, the holding company for eXp Realty, announced new executive hires as the company prepares for the next phase of momentum and growth. Shoeb Ansari has been named Chief Information Officer of eXp World Holdings. In this new role, Ansari will lead software engineering, product management, information technology, product launch, project management, data services and innovation. Prior to this role, Ansari was the Chief Technology Officer for a SaaS provider of property management systems. Leo Pareja is now President of Affiliated Services for eXp Realty and will oversee all of eXp Realty products and services such as mortgage, title, escrow and lead-generation platforms. Pareja has more than two decades of real estate experience and co-founded one of the largest private lending companies on the East Coast of the U.S. “We are thrilled to welcome Shoeb and Leo to our leadership team,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings. “They collectively bring substantial experience and deep skill sets that align with our key strategic initiatives, including innovation of our proprietary technologies and our affiliated services verticals.”

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/ INDUSTRY NEWS /

E X E C U T I V E

A N N O U N C E M E N T S

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

Dr. Dan Gubler Chief Scientific Officer, Vasayo Dr. Dan Gubler, Ph.D. has been named by Vasayo as Chief Scientific Officer. Dr. Gubler will now also lead the Vasayo Scientific Advisory Board. Dr. Gubler is the founder and host of “Discover with Dr. Dan: The Proactive Health Podcast,” holds a Ph.D. in organic chemistry from Colorado State University and has received numerous accolades throughout his career, including the DSA Visionary Award, the Schering-Plough Science and Innovation Award, the American Cancer Society Fellowship and the Eli Lilly Fellowship.

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/ INDUSTRY NEWS /

C U S T O M E R - C E N T R I C

ER-CE N OM T T R S

D E C O G N I Z E

CCR

G O L D

ER-CE N OM T T R S

U C

CCR

P L A T I N U M R

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

Distributor—someone who

DOES have a distributor agreement in place

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

Active is defined as each

customer and distributor must have made a product purchase during the last six months. Active customer and distributor counts are limited to those in the U.S. and Canada. Companies must have been

D E C O G N I Z E

BE CU STOM ERCENTRIC RECOGNIZED.

The CCR Program is

R E C O G N I T I O N

Direct Selling News is excited to present the Customer-Centric Recognition (CCR) Program to celebrate companies that are leading the way toward a customer-centric future for the industry. Qualifying companies utilize business models that boast high customer-to-distributor ratios and prioritize customer sales.

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

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

IRECT SELLING COMPANIES with a strong retail base of satisfied customers are experiencing impressive growth and deserve recognition and acknowledgment for

their efforts. With evolving consumer expectations and regulatory scrutiny, customer‑centric equals success for everyone—distributors, direct selling companies and the channel as a whole. The DSN Customer-Centric Recognition Program acknowledges these companies.

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Public Speaking Faces New Challenges in 2022 BY DAVID LEE

IVE GUEST SPEAKERS AND TRAINERS have long been a valuable component to direct selling industry events. More companies are making their C-level corporate leaders accessible to the field through live videos, weekly trainings and updates. As more in-person events such as annual conventions, trainings and business presentations resume, virtual events still have their place. Many companies are re-evaluating the positives and negatives of utilizing live vs. virtual speakers. Likewise, professional speakers are reassessing their strengths, weaknesses and overall strategy as they navigate in-person and virtual opportunities. Saana Azzam, a professional public speaker and founder of coaching program MENA Speakers, told Fortune magazine, “Those who have had long careers speaking onstage were not necessarily good at speaking virtually. And rookies, who were very tech‑savvy, all of a sudden did great in a virtual format. Even people with a fear of public speaking do well.”

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SPEAKERS IN VIRTUAL EVENTS can feel like the audience is “out there somewhere.” Reading a live audience and harnessing the energy of the atmosphere is a major benefit of in‑person events.

Positives of Virtual Speaking

Depending on the platform, virtual allows you to reach a larger audience. The audience doesn’t have to travel and typically can access the virtual event from anywhere and with multiple devices. Virtual events can incorporate audience participation such as feedback, a live Q&A or real-time action steps. Connecting with an audience requires slightly different strategies. For example, since there’s no stage, virtual speakers find that facial expressions are much more important, and projecting their voice isn’t necessary. Not having a live audience requires a different way to be energetic and engaging than on stage.

Negatives of Virtual Speaking

Speakers in virtual events can feel like the audience is “out there somewhere.” Reading a live audience and harnessing the energy of the atmosphere is a major benefit of in-person events. Laughs, cheers and physical participation are absent with virtual. The audience’s experience greatly changes as well, typically only seeing the speaker’s upper body as opposed to experiencing stage presence and body language. Since the audience typically has

an up‑close view of the speaker’s face, eye contact is even more important. A more communicative dialogue can be more effective and personal than delivering a prepared speech. Authenticity and unique personality are key in virtual experiences. As Azzam adds in the Fortune article, “Today’s most powerful speakers are authentic and approachable, sharing knowledge with a laid-back, conversational approach that makes the audience feel like their friends.”

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Public Speaking Challenges for 2022

LinkedIn recently published its top six public speaking challenges for 2022. Here’s a summary of what was covered:

1/ PARTICIPANT ATTENTION LEVELS ARE

DECREASING This is due to the overwhelming amount of digital information, especially since the rise of post-pandemic digital meetings. “Nature has not designed us to deal with this volume and this way of communicating,” the post mentions. More frequency of virtual meetings doesn’t equate to more effectiveness.

/ MORE SPECTATORS IN VIRTUAL CONFERENCES Virtual events allow the audience to be less engaged, sometimes to the point of turning their camera and microphone off or just walking away for a while. An Intercall study in 2020 showed that more than 65 percent of participants in online events do something else such as check emails, browse social media or even participate in another conversation.

3/ PROFESSIONAL SPEAKERS ADJUST TO SILENCE

While most people fear public speaking, professionals thrive on the energy of a live audience. The silence of virtual conferences can take speakers out of their comfort zone, and they may need to adjust their content and delivery strategy.

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4/ LOSS OF MOTIVATION AND SUPPORT

Because of the silence of virtual events, speakers can be left guessing if their message is connecting with the audience. A benefit of live audiences is realtime testing of the message. This can cause some speakers to lose motivation to adjust their delivery or overuse voice inflection and gestures.

5/ LEARNING CURVE FOR TECHNICAL CONCERNS Speakers typically don’t have to worry about the technical production of live events, but virtual events require a few concerns. Video quality and positioning, lighting, microphone quality, background noise, Internet connection and—of course—that pesky mute button can cause problems.

6/ KEEPING AUDIENCE INTEREST

Communication styles might need to adjust in a virtual setting. Offering too much information in a monologue-style delivery can bore audiences. Speakers must interact differently than they would with a live crowd. Asking them to type a number or word in the chat or comment section can help keep them engaged. Briefly bringing audience members on camera can also help to maintain engagement. DSN

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Web Browser Translation Tools Breaking Language Barriers

BY DAVID LEE

bonjour

RANSLATION TECHNOLOGY continues to evolve, improving accuracy and breaking down barriers for businesses wanting to expand into new markets. The latest technology applies to web browser translation tools, allowing website visitors to translate on-page text. Language has long been a hurdle for direct selling companies and particularly field distributors. Many corporate-provided marketing websites today include some form of translation toggle feature, but often include just one or two additional language options. In June, Firefox added Firefox Translation tool that can be added to the browser. The translation is done by the computer and not a cloud-based data like other online translation tools. This means that it actually works offline as long as a page is pulled up. For now, the tool features 12 languages. Here are a few other popular online translation tools and how they work. Of course, many of these tools require a desktop, but are user-friendly. GOOGLE TRANSLATE This is probably the most popular online translation tool available for most browsers. In the Chrome browser, an icon near the address bar indicates that you can translate the text on a page. You can add or delete languages you want to translate. S3 Translator is an add-on that maintains the

HTML formatting when selecting words to translate, which can get lost using many online translation tools. TRANSLATEPRESS This supports more than 100 languages and can translate any website by choosing the original language then selecting the target translation language. Enter the URL of the page to translate and click the “Translate” button. Then you can navigate the translated page as normal. REVERSO CONTEXT This tool allows you to select text on a page and shows the chosen target language along with synonyms of the selected text. It works for Firefox and Chrome and currently features 10 languages. REMEMBERRY This is available for Google Chrome and works by selecting a word to translate. You select the target language or translation alternative. More than 100 languages are supported. XTRANSLATE This combines Google, Yandex and Bing translators and can translate entire websites. It features more than 100 languages. Select the words you want to translate and right-click to select the language you want to translate them to. DSN d i r e c t s e l l i n g n e w s . c o m 3 5

F E AT U R E

C U LT U R E I S

YO U R

BY PAUL ADAMS

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S U P E R P O W E R

CULTURE/

THE SU PE RP OWE R OF

TRULY GRE AT COMPANIES CULTURE IS A CONVERSATION FOR BIG COMPANIES, RIGHT? I mean, how can you have a culture when you just got started? Imagine two conversations. Both from people starting new companies. In the first conversation, the new owner/leader was heard saying: “After we launch, we will grow faster than any company in history. I expect us to be the next BILLION DOLLAR company.” The second conversation went a bit differently. “I know what our products have done for my family, and I want a lot more people to have that same experience. And I know we can extend that into helping communities where children are hungry.” Both companies are the exact same age. Brand new companies. Great products. Similar compensation plan. Funded well. Based on what you have read so far, is there any doubt that they have different cultures? Would you be attracted to one over the other?

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THE TRUTH IS, I’ve heard both of the previous statements uttered from new company leaders while doing the legwork to get up and running. I’m sad to report that the next BILLION DOLLAR company didn’t make it past their first year. The second company? Still around, nearly 15 years later. But, you may ask, do those statements cause the death of the company or was the company just one of the normal percentage of casualties. Face it, most companies do not make it for a variety of reasons. Of course, even the second, more altruistic group wants to make money. But money is a result of doing something bigger. Something more important. Clearly, the second one had a vision to make an impact that went far beyond their own success. It’s a great example of why creating compelling Vision, Mission and Values statements are not just for established companies.

Knowing Who You Are

I believe that a strong set of statements provides the guideposts to help a young company become one of those “established” companies that we all look up to. They are the foundation to a culture that attracts and keeps people excited to do something special. For example, Amway still abides by what they call their “Founders’ Fundamentals.” FREEDOM, FAMILY, HOPE, REWARD. Those four principles guided Amway through their early days and still guide them today. I suspect that, during the toughest times and the most critical moments where big decisions were made, they leaned on those principles to make the best decisions possible. Now, generations later, those words are still at the forefront of who they are. There is amazing power in knowing what matters most and focusing on delivering on those elements.

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There is amazing power in knowing what matters most and focusing on delivering on those elements.

THREE KEY T A K E A W AY S

1 / YOUNG COMPANIES MUST KNOW EXACTLY WHO THEY ARE FROM THE BEGINNING

Creating strong mission, vision and values statements provide invaluable guideposts and measurements for all future endeavors.

2 / CULTURE PROVIDES A GUIDING LIGHT FOR DECISIONS

Filter product expansions and decisions through your corporate culture. Do they align with your mission and values? If not, reconsider their merit.

3 / DIRECT SELLING COMPANIES WITH LONGEVITY AND SUCCESS LEAN INTO THEIR CULTURE

Imagine the extraordinary challenges that Herbalife has faced over the last 40 years. And, they have come out of each major obstacle to become bigger and better than before. Yet, through it all, their core mission hasn’t changed. In short, their mission is “To change people’s lives through highquality nutrition and a business opportunity.” Why does all of this matter? To some people, this all feels like fluffy words and phases that make people feel better. Maybe it’s just an item on the launch list: “YES, we have vision, mission and values statements. Put it in the employee manual (when we have one), and let’s get to work.” Check!

Built to Last

The real question is whether you are using those words to build something special. Something that will stand the test of time. A company that people believe in and want to be a part of. A company we will write about 10-20+ years from now.

Those sound principles and values help steer the ship in times of transition and turmoil and propel growth and prosperity.

Do your products align with your purpose? For example, if your big mission in life is to provide a way for more people to live a healthy life, you wouldn’t be in the tobacco business—even if the profit potential was enormous. Are you attracting and keeping people that love what you stand for? Are your processes and systems designed to help you deliver on your promise? I remember sitting in a room with a brand-new executive team and discussing their new company. Frankly, they had a terrible idea for a product/ service to offer. They had a bad idea for how to market it. And although they came to us for help, we didn’t have clue how to tell the story. d i r e c t s e l l i n g n e w s . c o m 3 9

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“

The right fit is amazing. The wrong fit occupies way too much costly time and energy.

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But, what they did have was a reason for existing that was HUGE and powerful. It meant something to these people. They wanted to make an impact that went far beyond the product or marketing idea. As the meeting ended, we agreed they had challenges to overcome before we could help them. But, my colleague and I agreed that there was something about them that felt right. They were starting a business for a reason that most people don’t. It was real. It was honest. Using their guiding principles, they went back to the drawing board and began to build a company with products that aligned with their mission. They changed their compensation idea and began to build a story that felt as honest as they were. Bingo—they were on to something. They “got it” and were building something special. Amazingly, here we are, nearly 15 years later, and the company is still around, doing what they promised. The same three core principles that forced them to reimagine the company before it began are still proudly posted on their website and discussed in every meeting they have with their field leaders. They also talk openly about them in meetings with their team at the home office. They have an amazing, loyal staff that loves and supports the beliefs of the company. They ARE their values. They LIVE their founding principles. Has it been easy? No way. But, when tough decisions were made, I know for a fact that they lean on their founding principles as guideposts.

MOMENTUM HAPPENS from the inside out. The field begins to see and understand who you are as a company.

The Right People, The Right Values

The principles that guide your company and leadership should either attract or discourage people to work with you. The old adage is to hire for culture/attitude and train for the job, and it actually works. I like to screen people to see if they are a “culture fit” above all. Of course, that person has to have a basic set of applicable skills and knowledge for the job. But someone who is overly trained and supremely qualified but DOES NOT FIT into your culture or doesn’t believe in your core principles may be the worst possible type of team member. However, when you get it right and the person you hire “buys-in” to your principles and values, it is amazing. Those people stand out and help attract others who also “buy-in.” Momentum happens from the inside out. The field begins to see and understand who you are as a company. Those people who believe in you and your principles and values have a far greater chance of staying and succeeding with your company. Like many of you, I could not work with people that don’t exhibit and live a set of principles that align with mine. And it doesn’t take long to know. It’s the same when hiring someone to be on your staff. Be open about your guiding principles. Engage in discussions during the hiring process and try to ascertain their “fit” into the culture you are building. I have cut off an interview with a candidate within the first 5-10 minutes when it has become clear that we are not on the same page. I’ve apologized for seemingly wasting their time with an interview but also said that I didn’t want to waste any more of their time when it is already clear that this isn’t a good fit for them or the company. The right fit is amazing. The wrong fit occupies way too much costly time and energy. The culture of a company revolves around the core beliefs and principles that guide decisions throughout the organization.

Your Secret Weapon

If we look back at some of the most successful companies in our space, they have stayed true to their initial principles over their long history. What if Amway, Herbalife, Primerica or Mary Kay had changed their mind about who they are and what matters most to them? What would they be now? How big would they be? Would they still be around? Fortunately for all of us in the channel, we will never have to answer those questions. They built their companies and made many leadership transitions and changes. And—through it all—stayed true to their vision, mission and values. They lead with sound principles and pass those on to new generations as they have grown. More importantly, the values they represent and exhibit attract people who are attracted to them. It’s a powerful cycle and allows people to grow and even create a way for powerful succession planning. Young companies are often strained to just get up and running and don’t often spend time defining these elements. “I will get to it later.” After working with hundreds of companies, I’m convinced in the superpower that is a company’s values and core principles. It helps create a culture—from the beginning—that helps overcome obstacles and propels growth and success. It requires effort. It requires discipline. It requires hiring and firing to create a team with real alignment. It’s hard. It takes soul-searching. But, the effort is worth it. 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. d i r e c t s e l l i n g n e w s . c o m 41

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MEET THE SPEAKERS! MORE SPEAKERS TO BE ANNOUNCED!

Speaker list subject to change* T OS

N VE

STUART JOHNSON CEO DSN, NOW Technologies & Direct Selling Partners

HEATHER CHASTAIN F O U N D E R & C EO

MICHELE GAY F O U N D E R & C EO

DAN MACUGA C H I E F C O M M U N I C AT I O N S & M ARKETING OFFICER USANA

NICK MARTINEZ T h e Keto D a d Ind e p e nd e nt Pr ü v it D is t r ibuto r

GARRETT MCGRATH PRESIDENT A s so ciat io n of N et wo r k M ar ket ing Profe s s io nal s

RUDY REVAK FOUNDER & CHAIRM AN, Xy ngular | CHAIRMAN, PU R Eha ve n E s s e nt ial s

AMANDA TRESS FOUNDER & CEO

Fa s te r wa y tofa t l o s s .co m

Bridgehead Collective & Podcast Host

SHELLEY ROJAS PUBLISHER & CHIEF BR AND OFFICER D ire c t S e lling N ews

JARED TURNER C EO A m a re G l o b a l

KEVIN HARRIS C EO Tava

LimeLife by Alcone

DARNELL SELF EVP OF NET WORK & B U S I N E S S D E V E LO P M E N T Le g al S hie ld

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Marketing, Branding & Direct-to-Consumer Industry Expert | Podcast Host

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KRISTINE WIDTFELDT CEO Chalk Co ut ure

These marketing and strategic minds from Amway will share how they work collaboratively across product lines for maximum BRANDI HUYSER D I R EC TO R O F X S E N E R GY & N E X T G E N S T R AT EGY A mwa y X S

KELLI TEMPLETON CHIEF M ARKETING & E XPERIENCE OFFICER Amway

brand synergy.

Amway

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LAURA BEITLER C H I E F G LO B A L SALES OFFICER Ro d an + F ie ld s

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Heather Chastain interviews Lynne Coté and Laura Beitler on navigating your field through change.

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Stuart Johnson interviews Wayne Moorehead about his learnings and takeaways from 30+ episodes.

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C O V E R

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WATC H

THE ONES TO

WATCH

MEET THE YOUNG COMPANIES THAT ARE FACING CHALLENGES, BEATING THE ODDS AND WINNING

BY BETH DOUGL ASS SILCOX

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PPOSITE a startup’s enthusiasm and vision is hard work and a legitimate battle against failure. The odds don’t stack up in a

startup’s favor. Ten percent are gone within the first year, regardless the industry. They can operate lean or have a $100 million bankroll and an enormous support team, still 90 percent lose the fight by the five-year mark. Misreading market demand is the number one reason why.

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THREE KEY TA K E A W AY S

1 / IT STARTS WITH TRANSPARENCY

With approximately 1,100 direct selling companies operating annually in the U.S., our channel is not immune. Yet, every year brave and tenacious entrepreneurs step into the fight with unwavering vision to build brand communities that bring products to market and change lives along the way. Direct Selling News comprised a list of direct selling startup successes—statistical outliers of sorts who have seemingly beat the odds. Some of direct selling’s fastest growing startups, they are all five years old or less and have surpassed the $1 million mark in monthly sales. They include:

Sharing everything from your comp plan to product innovations encourages trust and loyalty. It also creates a sense of community and enthusiasm with your field and customers.

2 / CUSTOMER ACQUISITION IS KEY

Many companies fail before they ever truly get their feet on the ground. Building an enthusiastic customer base from the beginning offers breathing room.

3 / SURVIVING HYPERGROWTH REQUIRES A COMPANY TO DIFFERENTIATE ITSELF

BELLAME

n Chalk Couture

Color Street Green Compass n New U Life n Red Aspen n Revital U n Savvi n Scout & Cellar n Seint n Tori Belle Cosmetics n Viiva n Zyia Active n n

Note: This isn’t an exhaustive list. If you’re not on it and should be, please let us know at editor@directsellingnews.com. Leaning hard on core values, principles and mission, BELLAME, Green Compass, Red Aspen, Scout & Cellar and Tori Belle Cosmetics—participants in this story—have navigated a tough business climate amid a plethora of obstacles since they launched.

Making a lasting mark is achieved through innovation—whether it’s in compensation, product development, branding or a combination of all three.

They have utilized a business model that capitalizes on flexibility, personalized service and the raw power of personal connections to break through barriers created by the pandemic in order to grow and scale. They continue to establish themselves as next generation direct selling companies with the nimbleness necessary to survive missteps and the tenacity to fight through even the toughest of times. This is how they did it—and how you can take the lessons they’ve learned and apply it to your business, whether you are just starting out or well‑established.

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TRANSPARENCY IS A TOP PRIORITY for each of these companies and their “no secrets” philosophy sets the tone for everything else they undertake.

Prioritizing Transparency

Transparency is a top priority for each of these companies and their “no secrets” philosophy sets the tone for everything else they undertake. “Freakishly transparent” is how CEO Laura Hunter describes Tori Belle Cosmetics. As an early adopter of tech, Hunter has never missed a Thursday “live” in four years. These digital events broadcast simultaneously across Tik Tok, Instagram, YouTube and Facebook. Half product-use pro tips and half company business updates, Hunter draws no line between public and affiliate access. “We go through all the business for the week—everything. What’s in; what’s out; what the month is looking like; what the specials are going to be, and then we have a question-andanswer session. We answer questions about the company live all the time. It doesn’t faze me at all. I have nothing to hide,” Hunter shared. In fact, these digital interactions, when nurtured and harnessed correctly, can teach startups a thing or two. BELLAME Founder/CEO Melissa Thompson’s personal blog attracted 100,000 followers long before she launched the company. The transparent online relationships she had revealed what followers loved and disliked about beauty products, as well as the direct selling industry itself. That input later helped form the company’s blueprint.

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“Our Brand Partners and our customers continue to be a true part of our evolution. From product ideas to business strategies, we believe in servant leadership and that is only possible through full transparency,” she explained. Firewalls simply don’t exist for customers at Red Aspen, Green Compass or Scout & Cellar. Each company maintains open access so the public knows all there is to know about their products and brand. “At the customer level, we include a QR code on every package linking to the product’s Certificate of Analysis, a third-party lab document outlining the exact breakdown of the plant-based compounds inside. We own the entire process of creating our products from seed to bottle, and we’re proud to offer the utmost transparency and traceability,” Robert Finigan, CMO, Green Compass said. Transparency is part and parcel of Scout & Cellar’s Clean Crafted Commitment, so in February they rolled out ingredient bottle labels on their wines, also making them available online. Something unseen before for alcohol. But they don’t stop there. Scout & Cellar also issues Sip Reports— kind of a baby blockchain for wine—sharing every grape’s path to becoming clean crafted wine, as well as full nutritional information like fat, calories, protein, sugar and carbs for each bottle. “It’s not like anything else in the wine industry. No one else is doing the one-two punch of ingredient labeling and the Sip Report,” Sarah Shadonix, Founder/CEO, Scout & Cellar, explained.

WORDS OF WISDOM

FROM STARTUP SUCCESSES

WE ASKED THESE COMPANIES FOR THEIR MOST

Red Aspen takes that same transparent approach to their business opportunity. As Jesse McKinney, Red Aspen’s Co-Founder/CEO said, “Our sales structure, product information, ingredients— everything—is available to the public. This affects the field because our Brand Ambassadors can therefore be open and honest with their sphere. Transparency provides confidence in our Brand Ambassadors to represent the company and grow the community.”

PRACTICAL ADVICE. WE THINK MANY APPLY TO ALL COMPANIES IN THE CHANNEL—WHETHER THEY ARE THREE MONTHS OR THREE DECADES OLD.

Get a lot of advice.

Google everything.

Surround yourself with smart people.

Hire an in-house lawyer.

Don’t quit your day job until you have a line of sight on some revenue.

Keep trying.

Remember realistic projections are a BIG deal.

Do it right and do it legally.

Lock down your hiring process and credit cards.

Make sure your contracts are solid.

n Work

around the challenges.

Remember why you started.

Infuse distributors’ “why”s into your mission.

Seek new hires you’d be glad to have around your dinner table. Build a culture of hardy and loyal people. d i r e c t s e l l i n g n e w s . c o m 5 1

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THE ONES TO WATCH... NEXT! KEEP YOUR EYE ON THESE NEW COMPANIES, ALL LAUNCHED IN THE LAST 18 MONTHS. Qyral "Cellular Skincare, designed for you" PRODUCT CATEGORY: Anti-aging HERO PRODUCT: Accelerate—Cellular Revitalizing Serum HEADQUARTERS: Los Angeles, CA FOUNDER/CEO: Hanieah Sigari LAUNCH: February 2021 oHHo "Plants with Benefits" PRODUCT CATEGORY: CBD HERO PRODUCT: Full-spectrum CBD oil HEADQUARTERS: Bedford, NY FOUNDER/CEO: Nicola and James Stephenson &

Tim McDonald LAUNCH: 2020

Hugh & Grace "Better than clean" PRODUCT CATEGORY: Hormone-safe products HERO PRODUCT: Protecting Body Oil HEADQUARTERS: Los Angeles, CA FOUNDER/CEO: Sara & Ben Jensen LAUNCH: May 2021

Velovita "Cutting edge biohack solutions" PRODUCT CATEGORY: Nootropics and nanoceuticals HERO PRODUCT: brān HEADQUARTERS: Sunrise, FL FOUNDER/CEO: Kosta Gara and Jeff Mack LAUNCH: May 2021

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Managing Product Exclusivity

For each of the companies, product exclusivity played a role; but not necessarily in the ways one might imagine. Some companies introduced and educated the industry to new spheres of products, while others broadened expectations of luxury within well-established product categories. Some fought knock-offs while others encouraged competitors to embrace similar manufacturing commitments, almost begging them to knock them off for the benefit of the environment. Hemp products are fairly new to most consumers and within the direct selling industry. Rapid market growth is expected. However, Green Compass achieves product exclusivity thanks to their commitment to quality, testing and transparency. Continuing to invest in research and development fuels their passion for product innovation, too. For example, Green Compass produces one of the only 100 percent USDA-Certified Organic, nano‑enhanced, broad-spectrum CBD jellies on the market today. “By truly owning a vertically integrated story, we create trust with our customers by controlling every aspect of the growing, sourcing, extraction and production process—from our farms to your family,” Finigan shared.

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The best way to provide a product that cannot be replicated is by delivering one that is not just a product, but an experience created for and by the consumers who use them. — M E L I S S A T H O M P S O N / Fo u n d e r & C E O , B E L L A M E

BELLAME also embraces exclusivity. “I knew that we had to have an exclusive product experience, which was far more complex than just using the highest quality ingredients to deliver real results. From the moment of presentation to application, BELLAME products deliver a luxe and pampering experience that pleases all the senses. I have been told by multiple chemists that even billion-dollar brands do not have the layers of testing that we do. The best way to provide a product that cannot be replicated is by delivering one that is not just a product, but an experience created for and by the consumers who use them,” Thompson explained. Tori Belle’s Hunter didn’t just have an idea, she invented LashLiner in her kitchen. It was an exclusive product in every way—until it wasn’t. “They were knocking us off immediately. I cried. I threatened with lawyers. In the end the only thing you can really do—because it’s so expensive and so hard to fight—is to be better and faster and smarter. Be the original,” she said. Hunter’s strategy capitalized on LashLiner’s momentum to propel a beauty industry breakthrough—no easy feat—with Tori Belle’s full cosmetic, skincare and supplement line. They launched about 180 SKUs in under two years, which she admits was an insane pace. But those beauty products have “tooth” to them, and their magnetic lashes now comprise 60 percent of their business. Similarly, Red Aspen adopted a breakneck pace for product launches. “We design our own nails, working with artists and designers to create exclusive Nail Dashes you cannot get anywhere else. We guard ourselves against competitors with this constant new-ness and also with our weekly launches,” McKinney explained.

Shadonix has a different take on knock-offs and thinks it would be amazing if the entire world started farming and producing wine Scout & Cellar’s way. But she knows that will never happen. It’s hard and full of risk, and the commercialization of wine demands something different. So, Scout & Cellar differentiates themselves with their Clean Crafted Commitment and urges others to do the same.

Strategizing Customer Acquisition

As young companies throughout the COVID era, these startups proved themselves scrappy and agile, adopting and adapting customer acquisition strategies to combat obstacles and optimize the digital world to which their fields and consumers found themselves tied. d i r e c t s e l l i n g n e w s . c o m 5 3

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Foundationally, it takes a solid compensation plan and leadership that can motivate the field to pitch new products and acquire new customers. “We want to pay them for the behavior we want repeated,” Hunter said. Tori Belle’s comp plan pushes hard on sales. “We don’t have any kind of commissioned startup kit, and it’s very inexpensive. We charge $9 a month for their website. It’s very easy—no barrier to entry, really. And that resonated with people,” she explained. She also prioritized removing the “ick” factor associated with direct selling recruitment by complete transparency when it comes to compensation. “We make those bonuses public, and we don’t lie about them. They are attached to our comp plan, and you can see what you are going to get and how long you’re going to get it,” Hunter shared. Digital innovation strategies drive customer acquisition across the board and empower consultants. Whether it’s Green Compass’s mobile‑first website rebuild to shorten Advocate enrollment times; Red Aspen’s inventory and shipping system improvements; or Scout & Cellar’s Auto-Sip program, investments in digital technologies continue to prove successful. To reach customers in every space they live, BELLAME launched an Omni Marketing Opportunity in February and eagerly await others to break with traditional cookie cutter direct selling or network marketing models.

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“Our industry is not the same as it was when I started 27 years ago. It has changed significantly within even the past few years,” Thompson said. “We must think differently and embrace a digital, omni world. From scratch, we built our proprietary platform, complete with customer digital tools, back office and a commission engine that is ever evolving and tailored to the needs of our business. This has allowed us to not only survive a global pandemic, but thrive by providing a new experience for our customers and Brand Partners.”

Coming Through Hypergrowth

Misreading market demand kills startups, but that doesn’t always equate to too few sales. There’s great peril in hypergrowth, too. So how did these companies ward off that danger? They stayed close to their mission and vision and purpose. They renewed their commitments to their company cultures. They failed. They course-corrected and learned to navigate. And then they moved on. “I think one of the things we do really well is fail. We are really good at failing with our field and owning it when we do. That drives a lot of trust,” Shadonix said. Communicating, owning it, being transparent about what was going on and the stress on Scout & Cellar operations helped them make it through hypergrowth. In hindsight, though, Shadonix wishes they had documented opportunities for improved efficiency along the way.

“

I think one of the things we do really well is fail. We are really good at failing with our field and owning it when we do. That drives a lot of trust.

Get an Accounting & ERP integration expert on your team

— S A R A H S H A D O N I X / Fo u n d e r & C E O , S c o u t & C e l l a r

And at Tori Belle, they found a way to pivot when pressed. “If we had a product failure because we were pushing too hard too fast, we replaced it with double. And we did everything we could to keep people’s good will even though we were struggling to keep up,” Hunter remembered. Too much inventory; not enough inventory; too many new systems too soon; too few starter kits; website failures; bad hires; shipping delays; customer support clogs—you name it, hypergrowth rears its ugly head and dares startups to keep pace and survive.

USAGE OF TAGLINED LOGOS The tagline "AUDIT.TAX.ADVISORY" only accompanies the logo in circumstances where context requires clarification about what Squire can do for current and potential customers (the audience). For example, Squire.com and its subsequent web pages feature the onetagline version (HIGHER PERSPECTIVE ONLY) of the Squire logo because the subpage content throughout the site provides adequate context to visitors. 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.”

MARC ANDRUS ACCOUNTING AND ERP INTEGRATION SPECIALIST

I have twenty years of experience working with direct-selling clients to help them improve and streamline business processes. I specialize in helping clients with their accounting, benchmarking and forecasting needs, as well as integrating their disparate systems so they can all work as one. We are experienced in helping with foreign currency and exchange rates, warehouse management, and accounting for multiple subsidiaries in various countries around the globe.

LEARN MORE

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SQUIRE.COM ( 801 ) 225-6900

AUDIT · TAX · ADVISORY

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We did everything we could to keep people’s good will even though we were struggling to keep up.

— L A U R A H U N T E R / C E O , To r i B e l l e C o s m e t i c s

For BELLAME, the complexities of hypergrowth forced them to create a new space within the direct selling industry and innovate their way of doing business. They launched with just four products in 2018 and now boast more than 150 SKUs, which will grow with the planned launch of haircare and baby products. They have their eyes on global expansion after they secure a solid foundation in the U.S. Scout & Cellar is evolving from a clean crafted wine company into a clean crafted lifestyle company. Innovations into adjacent categories have included spritzers, canned wine and cider, olive oil and vinegar. They expect to launch clean crafted coffee in Q4 of this year.

Product launches for Tori Belle will slow by design, instead their focus is building affiliate residual income through an already popular subscription box program. The company is currently doing business in nine countries with expansions into others on the horizon. “We are currently building Red Aspen’s corporate headquarters, and it is being designed with growth in mind. We currently have multiple warehouses and two corporate offices. The new headquarters is intended to bring it all together and allow growth over the years to come,” McKinney shared. The Green Compass roadmap includes nine products for the back half of 2022 with a plan to continue the trend next year with targeted wellness products. They expect data-driven prospecting tools and a new brand look and feel to improve Advocate recruitment. Re-order rates, average order volumes, preferred customer subscriptions, per-Advocate sales and new customer acquisition will be areas of focus.

Bringing It All Together

Although the odds might seem to be stacked against young companies, the right attitude, right product assortment, right approach and right strategy can help those with determination and focus grow and thrive through the inevitable startup setbacks. The lessons and wins outlined in this article offer tremendous insights to companies in the channel at all stages and a blueprint for success for those about to take the plunge. DSN

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Don’t miss the Third Annual Golf Scramble! Thursday, August 25 & Friday, August 26, 2022 A FREE EVENT for all direct selling companies!

Play, relax and network with your peers from over 60 direct selling companies—it’s our way of saying thanks to our clients and the channel. Join us for golf, go karts, giveaways and so much more at the third annual golf scramble! Location: Thanksgiving Point Golf Club 3300 Club House Drive Lehi, UT 84043

Hosted by

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Surviving (and thriving) in HYPER

GROWTH WH AT R ED AS P EN H AS D IS C OV E R E D AS THE Y’V E

MOVED F R O M STA RT U P TO STA N D O U T—A N D HOW IT CAN H EL P YO U GROW AT A N Y STAG E .

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BY JESSE MCKINNEY / FOUNDER & CEO, RED ASPEN

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If something isn’t working, we don’t dwell on the investments made. We strip the idea down to find the nugget of success and keep moving.

HEN WE LAUNCHED RED ASPEN in 2017, my sister Genie Reese and my long-time friend Amanda Moore and I had to muster an immense amount of courage to get the company off the ground. There were months and months and months of sacrifices, investing not only our resources but ourselves and putting our whole hearts into this company we love. Today, with 15,000 Brand Ambassadors and Affiliates at our side, 200 branded products and hundreds of thousands of customers, our need for courage hasn’t subsided. It still takes a heaping dose of bravery every day to wake up and make the sometimes difficult decisions that are necessary to lead an effective, growing and healthy organization that prioritizes the empowerment and flourishing of women. We’ve discovered, however, that the courageous vulnerability necessary to launch a startup is always worth it when you’re building something you passionately believe in. For us, Red Aspen is our passion.

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THREE KEY T A K E A W AY S

1 / YOU MUST KNOW YOUR BUSINESS PARTNER

A partnership should never be based on expediency; you need to know your business partner on a personal level.

2 / BUILD A CULTURE OF TRANSPARENCY

Red Aspen doesn’t put anything surrounding building a business with them behind a paywall— being mysterious in business feeds skepticism.

3 / BE PREPARED TO SACRIFICE

Early Essentials

In the earliest days of Red Aspen, Amanda and I both had two small children; we were all leading busy lives; and none of us had a ton of resources to fall back on. Red Aspen was a dream we believed in, but it would be dishonest to say that building it wasn’t a challenge for us and for our families. It was during the fog of those frantically busy days when it became clear that there are two non-negotiables in startups that create success. One, you must know your business partner. This is the best startup advice I could give anyone. A partnership should never be started for the sake of having an extra pair of hands to help, solely for financial backing or because someone has a specific skillset you need. When you choose a business partner, you need to know them on a personal level, having seen them at their highs and their lows, and you must have seen firsthand how they handle conflict. I knew I could trust Genie and Amanda to make sound judgements; that I would trust them with my family; and that all three of us had what it takes to weather whatever storms we would face.

Building and growing a company requires necessary sacrifices—you must be willing to do whatever it takes to empower and support your field.

Second, you must be 200 percent committed. You hear people say that a startup is going to command all of your time and energy—and you believe them— but you don’t fully understand until you are in it. If you have one free second, you are working on that startup because something will always need your attention. We didn’t have the money to farm out any of the work or decisions. And balance was not something that existed. Balance is not even plausible in the startup world and there will be days when you feel only half as committed as you did on Day One. If you start off 100 percent committed, you will only be 50 percent committed on your worst days. You have to be as passionate at one in the morning when you’re inputting product codes as you are working on something that energizes you at ten the following morning. The sacrifice is hard, but if you’re 200 percent passionate—go for it. Anything less than 200 percent, and it’s probably not the right idea or the right time. w w w. 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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RED ASPEN PAT H T O S U C C E S S

2017

Within six weeks, the company brings in $400,000 in revenue, breaking even financially

2017

2019

New customers are drawn to the unique product offerings, and revenue reaches $6 million

2018

Jesse, Amanda and Genie bootstrap their startup dreams with their own resources. Red Aspen is born

2021

Distributors exponentially increase, reaching 12,000 individuals and product count increases to 200 options. Revenue tops $34 million

Distributors number 1,100 and the product list grows to 30 branded items, including faux luxury lashes and their signature Nail Dashes. Revenue reaches $3.6 million

2020

Revenue more than triples, totaling $20 million

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Fail Fast

There are no shortcuts to launching a startup and, in fact, there are more road blocks and obstacles than we could have even imagined. Our first and most memorable one came during our planning stages, when we had a name and a mission but no product yet. Our dream had been to launch with a nail product, but we just couldn’t get it right. We worked with a number of manufacturers and spent countless hours trying to perfect it, but we were never content with the end result. Instead, we pivoted and launched with a line of luxury faux lashes—something that no other direct selling company and very few indie companies were doing at the time—and found a niche goldmine. In retrospect, the decision to switch to lashes was an obvious one but, in the moment, walking away from all of that time and money invested in a nail product that would never go to market was painful. We debuted Nail Dashes a year later, a product that we absolutely love and one that was exponentially better than our original prototype. And that’s how we discovered the value of failing fast. Today, if something isn’t working, we don’t dwell on the investments made. We strip the idea down to find the nugget of success and keep moving.

Remove the Veil

We didn’t begin with the intention of being in the direct selling space, but once we formed our mission and vision, it was the only channel that made sense for us. Since that day, we’ve leaned into a culture of transparency. Our distributor resources and training materials, digital branding assets and an extensive collection of videos explaining how to build a Red Aspen business are all out in the open. We don’t put anything behind a paywall because being mysterious in business feeds skepticism. I’ve had distributors tell me that the reason they signed up was because they knew what they were getting into. Secrets make me nervous, and they make younger generations suspicious. We’re also learning how to better speak to our newest generation of distributors, which is why our Treehouse is in the process of getting a major upgrade. Soon, distributors will have access to an even easier way to learn about and share the business through quick Tik Tok-style videos and Instagram trainings. And—as always—all of it will be public.

Build a Legacy

The struggles we had to go through as we built Red Aspen from the ground up have made us who we are. They made us better leaders, stronger as an organization and more capable overall. Grit and determination are the keys to success for entrepreneurs, and Genie has been integral in casting that tenacious vision for us. We want to be a legacy company that people grow with their families and pass down for generations. And I know that this dream, too, will come with its own set of challenges. But Genie, Amanda and I are convinced—200 percent committed—that we are profoundly responsible for the growth opportunities presented to the women who decide to join us. Building and growing a startup and then staying to make sure it remains true to your original ideals requires a mentality that is prepared for and devoted to making the continued sacrifices necessary to empower and support the distributors who choose to walk alongside you. I’m so proud of our wins as well as the failures we’ve overcome along the way. And as we use our unique positioning in social selling to accommodate and attract the future leaders of this channel, I know that those experiences—as well as our vision founded in courage and grit—will give us the fuel necessary to inspire and ignite a renewed passion and purpose for the Red Aspen women we feel called to serve. DSN

JESSE MCKINNEY is the Founder and CEO of Red Aspen, a social selling beauty company. Their mission is to inspire women to stand up, stand out and stand together by uniting passion and purpose. Red Aspen combines e-commerce, social networks and social selling with playful, fun and imaginative products and marketing.

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D E PA R TM E N T

FO R

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ERE’S WHAT we think you (and your field) should be reading, listening to and utilizing in order to stay engaged, informed and one step ahead. BY CHELSEA HUGHES

BOOK /

The Five Dysfunctions of a Team: A Leadership Fable B Y P AT R I C K L E N C I O N I

In this New York Times best seller, author Patrick Lencioni weaves an entertaining leadership fable that aptly illustrates The Five Dysfunctions of a Team. From “Fear of Conflict” to “Lack of Commitment,” these five issues are relatable to every team, no matter how seemingly successful. Patrick offers a powerful model with actionable steps in the second half of the book. This simple yet profound read is perfect for anyone striving to lead and develop an effective team of any size.

APP /

Speechify – Audio Text Reader Created on the premise that you listen faster than you can read, the Speechify app turns articles, PDFs, digital text and physical books into audiobooks—helping you save time, retain more information and stay focused. Framed as your personal reading assistant, Speechify allows you to customize your audio experience with HD voices in 50+ languages and adjustable reading speeds. The app also seamlessly integrates with various platforms like Google Drive and Dropbox, so Speechify can help you get more done, faster!

Podcast /

The Believe! Podcast DOUG DEVOS

Renowned business leader and philanthropist Doug DeVos has spent his life encouraging people to become agents of change. As the former President and now Co-Chairman of Amway (and with nearly 60 years in and around the company), Doug has helped build the direct sales giant by empowering entrepreneurs. Doug’s lifelong passion for helping people turn beliefs into action inspired his new podcast, Believe! The podcast asks questions that Doug hopes will spark practical solutions within each listener, along with paths to action.

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“

F or Y ou6r F i e l d WORDS TO LIVE BY:

If you are not willing to learn, no one can help you. If you are determined to learn, no one can stop you.

—ZIG ZIGLAR

APP /

Givingli – Send Cards & Gifts Designed to make everyday connections with people simpler and more meaningful, Givingli is an innovative app for celebrating any occasion. Simply choose and customize a digital card from hundreds of options created by independent artists. Then add an optional gift from retailers like DoorDash and Uber. Finally, send your greeting to your recipient—all with the touch of a button. With Givingli being 100% digital, the company is proud to be both convenient and sustainable. This handy app can help you and your field leadership effortlessly recognize, encourage and reward others.

WEBSITE /

BOOK /

SPIN Selling BY NEIL RACKHAM

What makes someone a great salesperson? How can your field dramatically increase their volume? In SPIN Selling, author Neil Rackham answers these questions and much more, using the acronym “SPIN” to illustrate a unique sales strategy: Situation, Problem, Implication and Need-Payoff. The premise of this methodology is that deals are won when a salesperson truly understands the buyer’s problem—which can only be understood after asking specific questions. Share SPIN Selling with your field to help them discover their best audience and sell more strategically.

HubSpot Blogs HubSpot is a leading Customer Relationship Management (CRM) platform that helps companies market and sell more effectively. While many businesses utilize HubSpot’s paid services, a free benefit they offer is an extremely informative collection of five blogs: Marketing, Sales, Service, Website and The Hustle, which houses business insights. Readers can explore posts by topic, such as Customer Retention, Instagram Marketing and Sales Prospecting. Fans can also subscribe to the specific areas that are of most interest and have the latest news delivered to their inbox. DSN

d i r e c t s e l l i n g n e w s . c o m 6 5

FEATURE

DTC CUSTOMER REFERRAL PROGRAMS

TOP LESSONS

FOR DIRECT SELLERS

FROM DTC CUSTOMER

REFERRAL PROGRAMS IMPROVE CUSTOMER ACQUISITION AND INCREASE BRAND LOYALTY BY FOLLOWING THESE SIMPLE STRATEGIES BY LISA ROBERTSON

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FEATURE

DTC CUSTOMER REFERRAL PROGRAMS

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Use your rewards as a way to introduce new or supplemental products that work cohesively with the products your customers are already ordering.

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HE WAY WE SHOP has changed dramatically since 2020. Direct-to-consumer (DTC) brands are reconfiguring the way we purchase everything from clothes to furniture to groceries to personal care products. In fact, more than half of U.S. internet users have already purchased from a DTC personal care or beauty brand with the entire industry projected to surpass $716 billion in revenue by 2025 according to commonthreadco.com. While the pandemic accelerated this trend, it did not cause it. The emergence of DTC brands has been fueled by social media with influencer marketing and effective digital marketing strategies. A huge component of those strategies are customer referral programs. And there are many lessons for direct sellers within these programs. Direct selling is built on word-of-mouth marketing. How those referrals are made continues to evolve as face-to-face meetings take a back seat. Sampling and referrals for direct selling still has a bit of an identity crisis—the methods aren’t as simple, intuitive and prompted as they should be. But by following the blueprint established by DTC brands, companies can set a successful standard for our channel.

THREE KEY T A K E A W AY S

1 / REFERRALS ARE AN ESSENTIAL PART OF DIRECT SELLING

Word-of-mouth recommendations are foundational to the industry, but the methods have permanently evolved. The goal is for these customer-focused digital, mobile and social selling systems to be seamless and automatic. There are many benefits of successful referral programs, including: n A lower cost per customer acquisition than traditional marketing efforts; n An opportunity to organically increase brand loyalty and awareness; n A chance to establish immediate legitimacy; n Opportunities to cross-sell and up-sell. To put it plainly, referral programs are so beneficial to direct selling companies because they work. According to getambassador.com, as of 2021, 74 percent of people say word-of-mouth is a key influence on purchasing decisions, and 92 percent of 18-34-year-olds actively seek out product recommendations prior to purchase. Referrals are especially powerful for health and wellness products because people have concerns about the efficacy and quality of products they consume. Direct selling is inherently adept at leveraging word-ofmouth recommendations for products, but this also can translate to the opportunity. Crowd-source companies like Uber utilize referrals to recruit new drivers. Current drivers can refer a friend to join, and, once that friend completes a certain number of trips, both receive rewards. As traditional recruitment models in our channel continue to come under scrutiny, this option can be game changing. These programs also provide a way for companies to stand out in a crowd and reinforce their brand’s mission and message, something that’s increasingly important to consumers. According to businesswire.com, 46 percent of consumers consider a brand’s social responsibility efforts when purchasing, and generational expert Jason Dorsey reported that Gen Z is particularly motivated by social causes. At Tesla, owners can earn awards when friends and family use their referral link to order select products. The brand emphasizes their commitment to sustainable energy through the rewards they offer, providing substantial discounts off solar panels and solar roofs.

2 / REMEMBER THE FIVE FACTORS OF CUSTOMER REFERRAL SUCCCESS

Every referral program should be simple, incentivized, cost-effective, heavily promoted and measurable.

3 / ONE SIZE DOES NOT FIT ALL, YOUR REWARDS SHOULDN’T EITHER

Differentiate how you incentivize the people making the referrals and the people receiving them with offers targeted to their specific needs.

Five things every direct selling referral program must do Of course, your referral program should be as unique as your brand, but there are a few key elements that must be addressed across the board, regardless of product line, incentive plan or strategy. Here are five key elements every successful direct selling referral program needs.

1. KEEP IT SIMPLE, STRAIGHTFORWARD AND STREAMLINED A key component of a successful program is to make it frictionless and user friendly. The goal is to remove any and all barriers to making a fast, low-effort referral. One company excelling in this regard is Athletic Greens. They start the process instantly—providing an auto-populated text for referrals before customers even make a purchase. Referrers literally have to do nothing but provide an email address and click a button to share their interest with friends and family. w w w. d i r e c t s e l l i n g n e w s . c o m 6 9

FEATURE

DTC CUSTOMER REFERRAL PROGRAMS

74%

OF PEOPLE say word-of-mouth is a key influence on purchasing decisions, and

92% OF 18-34-YEAR-OLDS actively 2. INCENTIVIZE, BUT KNOW WHAT MOTIVATES YOUR CUSTOMER BASE A/B testing gave AirBnB invaluable insights after they launched their referral program. Their initial offering was a cash reward to the referrer when their friend took a trip or rented out a home. They tweaked the messaging and rewards, discovering that engagement improved when the reward went to the recipient rather than the person making the referral. Now, the offer is gifting a friend $25 off when they book with AirBnB.

3. MANAGE YOUR COSTS Giving cash rewards can be expensive— remember that there are all types of “currency” you can offer. Consider gifting under-performing SKUs or offer credits or bonus loyalty points redeemable in your online store (a simple way to drive traffic and gain revenue at the same time).

4.SPREAD THE WORD A referral program is only as good as the buzz surrounding it. Promote yours through your home page, social media platforms, email campaigns, press releases and on your app. Make referral opportunities easy and hard to miss when interacting with your brand. And don’t be afraid to do something extra special and valuable for a limited time. Pre-launch, shaving giant Harry’s offered incremental rewards to people who were willing to refer their friends through email, Facebook or Twitter. The offer was simple: refer 10 friends, earn a free razor. Refer 25 friends, earn a free premium razor. Refer 50 friends, earn free shaving for a year. The promotion lasted a week and generated 100,000 leads.

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seek out product recommendations prior to purchase.

5.TRACK AND TWEAK Many companies keep their referral programs fresh by consistently updating their rewards and offers. Experimenting with new incentives and taking a deep dive into the analytics allow them to let the program breathe and become more impactful and appealing over time. Make sure you track the effectiveness of your program by using dynamically generated links and codes. And keep track of the following key metrics: number of new members generated; number of site visitors converted; number of referrals generated and on what channels; how many new customers acquired; and cost per acquisition.

Make the Rewards Memorable

PROGRESSIVE (REFER MORE / GET MORE)

It’s clear that incentivizing customer referrals is key to making these programs successful—that’s why virtually every brand offers some sort of enticement for making or acting on a referral. It’s imperative that your rewards offer something special to distinguish them from the crowd. Consider these factors when designing your program.

It’s easy to refer one friend—harder to refer 2, 3 or

FOR THE REFERRER

500MB. They also have a handy status bar so

“Membership has its privileges” was a legendary

customers can see how much they’ve earned to

marketing campaign for American Express back in

date—instant motivation!

the ’90s. And that premise still holds true. These are your most vocal and passionate brand advocates—make sure the incentives you offer validate and reward that. Keep these four factors in mind. EXCLUSIVITY Tesla frequently tweaks its referral program, but one of the rewards it has offered in the past included entry to exclusive events or vehicle accessories that weren’t available any other way. What exclusive experience or limited-edition items can you offer to your most active referrers? If the reward is special enough, the desire to earn it could translate to a lot

10. Make sure the value of your rewards increases with the number of successful referrals and keep it as easy as possible for your advocates to track their progress. Basic Dropbox customers get 500MB of storage added to their account for each referral, up to 16 GB. The friend they referred also gets

FOR THE REFER-EE You’ve managed to get their attention with the help of their friends or family through your referral program. Now, what can you do to seal the deal and turn that lead into a loyal brand fan? Here are three guiding principles. SAMPLE There’s no better way to turn a prospect into a customer than by letting them try the product Provide single-use samples of your best sellers that offer an immediate benefit or multi-day samples for products with incremental results.

of leads.

UNOBTRUSIVE

SUPPLEMENTAL / TARGETED SAMPLES

It’s important to remember that these potential

Use your rewards as a way to introduce new or supplemental products that work cohesively with the products they are already ordering. Think an eye cream that works synergistically with a daily moisturizer or a new lipstick shade that complements their favorite nail polish or eye shadow palette. When your product samples are purposeful and tailored to the recipient, you are much more likely to increase sales.

customers didn’t seek your company or products out. Respect their time and privacy by not bombarding them with constant or complicated communications. Keep your messages short, benefit-oriented and limited in number. UNEXPECTED As a company, you should always strive to “surprise and delight.” Consider offering something unexpected, useful and branded with a customer’s

SEASONAL

first order. But make sure the item works

You don’t want referrals to be a one-and-done

synergistically with your products: a measuring tape

proposition. Encourage continual engagement by

so customers can easily follow your size guide; a

offering seasonal items as limited-time rewards. A

reusable straw for their energy drink; or stirrer for

summer-y citrus drink flavor or anything pumpkin

their coffee.

spice scented when fall rolls around helps keep your

Most companies in the channel have some sort

rewards program fresh, top-of-mind and relevant to

of referral program, but many are unremarkable,

your followers throughout the year.

underpromoted or difficult to use. Simply revamping your offers or messaging could give yours an immediate boost. DSN

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MARKET AMERICA /

Market America: E-Commerce Pioneer Celebrates 30 Years Thirty years ago, the founders

BY JENNY VETTER

of Market America had a crystal ball moment—a vision for referral tracking that could propel entrepreneurs farther than any traditional network marketing company had promised before. Today, JR and Loren Ridinger and the Market America team are once again looking to the future, eager to evolve the online marketplace they’ve been shaping for the last three decades.

FOUNDED:

1992 HEADQUARTERS:

Greensboro, NC TOP EXECUTIVE:

JR Ridinger, Founder, Chairman & CEO Loren Ridinger, Co-Founder and Senior Executive Vice President

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The Power of People

This familiar adage continues to be true—people don’t like to be sold, but they love to buy. And more accurately, people love to buy based on details they feel they can trust. One fateful date night over three decades ago, JR and Loren Ridinger decided to put this saying to the test. They’d been out to the movies in their hometown of Greensboro, North Carolina and absolutely loved the film they’d just seen. “To say that I loved the movie would be an understatement,” recounted JR. “In the theater that night, we were swept away; we found ourselves fully lost in the moment. I was so impressed with it that I ended up telling nearly everyone I knew about it. In fact, Loren and I came out of the movie impressed enough to devise an experiment based on the theory of referral tracking. “We told our friends about the movie and asked them to call us as soon as they had seen it. As a result, we got plenty of calls from not only our friends but even from people we didn’t know. As it turned out, they all liked the movie, too. After some consistent manual tracking, I discovered who the sources of the referrals were. I started thinking about the potential to automate referral tracking. Then—in 1992—we founded Market America.”

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Fast forward thirty years to Market America I SHOP.COM today: a leader in e-commerce, equipping entrepreneurs to capitalize on digital marketing and online shopping to harness that same referral power JR and Loren tested all those years ago. Market America and SHOP.COM, the company’s innovative online shopping platform, offers the best of e-commerce and a family of proprietary product lines for sellers to share as well as a convenient way to share them. Market America I SHOP.COM sellers are known as UnFranchise® Owners; these entrepreneurs operate globally through the company’s operations in the United States, Canada, Taiwan, Hong Kong, Singapore, Malaysia, Australia and the United Kingdom. The company’s global website—SHOPGlobal.com—ships to pretty much every country and territory on the planet.

“

We’re entering a brand-new phase of growth for our business as we continue to grow, adapt, evolve and lead the way in retail and one-to-one marketing. — L O R E N R I D I N G E R / C o - Fo u n d e r & S e n i o r E x e c u t i v e V i c e P r e s i d e n t o f M a r k e t A m e r i c a Wo r l d w i d e | S H O P. C O M

“Before online shopping even existed, JR created a unique business model that would allow the average person to own their own business but without the need for a physical store and all of the costs associated with maintaining a brickand-mortar business,” explained Loren. “It was like a franchise business in some ways, but in other ways, it was completely different. So, we called it the UnFranchise Business and individuals who joined the company became UnFranchise Owners. The fundamentals have stayed the same, yet with new technologies, systems, products and tools, UnFranchise Owners can now build their businesses more efficiently and effectively. We’re entering a brand-new phase of growth for our business as we continue to grow, adapt, evolve and lead the way in retail and one-to-one marketing.” In August, the company will gather at the Market America Worldwide | SHOP.COM 2022 International Convention. UnFranchise Owners from around the world will gather in Greensboro, North Carolina to connect, learn and celebrate.

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“

We’ve experienced 30 years of magic moments; 30 years of changing people’s lives; and 30 years of building legacies. — J R R I D I N G E R / Fo u n d e r, C h a i r m a n & C E O o f M a r k e t A m e r i c a Wo r l d w i d e | S H O P. C O M

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“We’re celebrating 30 years of entrepreneurial success,” JR shared. “We’re developing some exciting new initiatives, products, programs and resources to help empower our UnFranchise Owners around the world. Timing is everything for entrepreneurs and we have a strategic plan to build upon our first 30 years of success. We’ve experienced 30 years of magic moments; 30 years of changing people’s lives; and 30 years of building legacies. We are enthusiastic and committed to succeeding for the next 30 plus years.”

The Power of Technology

UnFranchise Owners, or UFOs for short, have an arsenal of tools, resources and support available to them, along with multiple ways to build businesses that serve their unique interests and goals. Market America I SHOP.COM is home to over 40 exclusive brands that the company has built and curated, ranging from health and nutrition, beauty, skincare, cosmetics and jewelry to home, auto and electronics. UFOs can share all these brands with their customers on personalized SHOP.COM sites; additionally, they can also create brand-specific sites. For example, a UFO who is passionate about health and nutrition may offer a customer shopping experience focused solely on Isotonix, Market America’s line of nutraceutical solutions. That same UFO can also maintain additional Market America brand sites, as well as a SHOP.COM site. Multiple methods to reach customers power multiple revenue streams and business building opportunities.

The same referral power that JR and Loren tested in the early 1990s runs through everything Market America I SHOP.COM does—but today, much of that power lies in social media. SHOP.COM President and COO Steve Ashley explained. “When your company’s slogan includes ‘Powered by People,’ you want to use your strength in numbers throughout all of your marketing efforts—especially when you do not have a traditional advertising strategy for mass media,” he shared. “Social media has become Market America I SHOP.COM’s most effective method of marketing. By utilizing our internal Social Media Team, our Executives and our UnFranchise Owners, we have built a social media culture that helps us drive product sales, brand awareness and brand/product visibility as well as communications for the company.”

The Power of Family

JR and Loren Ridinger were a young couple when they dreamed up Market America, inviting Loren’s brothers Marc and Steve Ashley and her sister Brandi Quinn to dream with them. They rounded out their executive team with a talented group of leaders that are still together today (except those who have passed away). Family and community continue to be foundational and driving forces within the company, woven into the fabric of the Market America culture. “We’ve always put people before profit, and

that’s reflected in our successful 30-year history and the sense of family and community we’ve built,” explained Marc Ashley, President and COO of Market America Worldwide. “Our business has always been about spreading economic opportunity and prosperity. And over the years, we’ve cultivated a company culture more similar to a family than a business. We support one another and genuinely care for each other, and I think that speaks volumes about our company culture and the people we’re blessed to work with.” As the Market America I SHOP.COM family continues to expand, the company celebrates the impact it has had around the world and the tremendous possibilities that lie ahead. “Our 30th Anniversary celebration is a testament to the belief and spirit of thousands of UnFranchise Owners across the globe,” JR shared. “We’ve been fortunate enough to help people from around the world achieve success, so really, it’s their success stories we’re celebrating. It’s also about celebrating the relationships we’ve built over the years—it’s these friendships and families that make this so much more than a business. We’ve experienced 30 years of consistent growth because of UnFranchise Owners’ success. The first 30 years was just the beginning. Through revolutionary technology and the power of people, we are creating the economy of the future.” DSN w w w. d i r e c t s e l l i n g n e w s . c o m 7 7

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DAV E N P O R T

DSN

H E AT H E R C H A S TA I N

ICONIC I N S I G H T S with HEATHER CHASTAIN

Rita Davenport Talks with Heather Chastain About The Power of Recognition. BY PAUL A FELPS

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

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R I TA D AV E N P O R T

ITA DAVENPORT IS KNOWN TO MILLIONS as an award‑winning TV producer, host, best-selling author, corporate trainer and entrepreneur. She has an exceptional understanding of the principles of success, time management, goal setting, creative thinking and building confidence, and she shares those points with equal parts humor and honesty. As President of Arbonne International from 1991 to 2011, she helped grow sales from $20 million a year to over $980 million, and today she is a soughtafter public speaker with a rare insight into the channel. In this episode of Iconic Insights, Rita and Heather discuss the importance of passion and she explains why recognition is so essential for success. HEATHER CHASTAIN: When you think about what you’ve seen over the years, what are some common elements that you see [among leaders] that have the success they’re looking for? RITA DAVENPORT: Well, I think passion, first of all, is so important. I was raised in poverty and told, “Don’t get your hopes up.” Well, I always kept my hopes up. And what I have seen about this industry that I am so impressed with is that no one has to have a Ph.D.; they don’t have to be a certain height or weight or look a certain way. It starts with people that have the desire to have more and be more, learn more and earn more so they can share more.

“

The people that win talk to the most people. Your network is your net worth.

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DAV E N P O R T

I see so much passion in this industry. But the one thing you have to have is courage. You have to be brave to be in this industry because you’re going to get so many “no”s. It’s a people business—a numbers game. The people that win talk to the most people. Your network is your net worth. And you’ve got to have a lot of recognition in your company. I like to talk to the corporate people as well as the people in the field. Everybody’s got an invisible sign, and it says, “Make me feel important.” People work harder for praises than they do for raises. I think that what I have seen in the industry is more awareness of the need for recognition. HEATHER: That’s what I love about this, and you touched on it early on, too: you don’t have to have a certain economic background or demographic, you really can come from any background, and it really democratizes the opportunity. And it’s the only channel out there that does that for entrepreneurs; there’s so many doors closed to so many people out there. RITA: I had a chance to interview Norman Vincent Peale, Earl Nightingale, these famous people who taught me that your success depends on how much you invest in yourself. You empty the coins of your purse into your mind, and your mind will feel your purse overflowing. That’s the reason listening to something like this, you will get one idea. If you get one idea that can change your business you can change your life. Number one, I want you to

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“

Everybody has greatness. The people that feel good about themselves are using their greatness and their talents. realize your greatness. God didn’t make any junk. And you’re here with a purpose—with all the necessary skills and talents to fulfill that purpose. What you got to do is believe in yourself, and you got to have a sense of humor about this business, too. HEATHER: You started off by talking about how you were told to not get your hopes up but you always got your hopes up. And just now you’re saying you have to believe, you have to have that confidence. This industry is not just about what you’re saying, but it’s about helping other people find it. Can you talk a little bit about how you help other people find that spark when they may not have it otherwise?

RITA: Well, first of all, I think people don’t join a business because of the business; they join because of the person that’s talking to them about the business. You’re selling yourself first. But I think that when you have people that don’t know their greatness, you can constantly be reminding them that you can do this. There are systems people need to follow to become more successful, like what you say to yourself. And you visualize. I love to talk about visualization and imagery, and the power of that and how it transforms your brain. Your mind is powerful, and you have to mind your mind because energy follows thought. Everybody has greatness. The people that feel good about themselves are using their greatness and their talents. HEATHER: The concept that your thought dictates your action—do you think that’s as well received by today’s generation? We’re just now tapping into Gen Zs. Do you find that’s a pretty universal thought from generation to generation to generation, or are there nuances we should be thinking about? RITA: I think it’s inherited. That’s the lesson that they’re setting, the example. I think that’s what most people desire, and I hope this continues. Never forget that this is a heart-to-heart, bellyto-belly business, no matter what. Because if you take everything away from me in the business that it offers—the trips, the income, the

recognition, all of those things—the most important thing you will get from this business is the social interaction. You have a family. I looked at this business and the people I worked with as my family. I worked with different people in different organizations in my business and people say, “You don’t get anything from helping that person.” Oh yes, the more you give, the more you get. You don’t always get from who you give to. But you help everybody and don’t separate anybody. If I can reach out to different avenues, in my business, that really does benefit. And corporate people need to feel recognized and appreciated, too. The last thing you want is any problem in corporate because that will definitely spill out. With all the technology, and I know it’s very effective and people are growing huge businesses, but what gets you there doesn’t always keep you there. You have to always be green and growing in this business. And then you’ve got to have your heart into it, believing that this can make a difference. Not just making a living for somebody, but making a difference. It’s more important now than ever because people need that hands-on recognition, like that appreciation. It is absolutely beautiful. You’ve got to do it because you’ve got to show people that you are grateful. Everybody has to have their expectations raised. And they see somebody else that can do this, they think, “well, I can do it., too” You have to have faith that you can do it. If you want it bad enough, the world steps aside for the person who knows where they’re going. DSN w w w. d i r e c t s e l l i n g n e w s . c o m 81

REGISTRATION NOW OPEN! DIRECT SELLING HILL DAY

SEPTEMBER 20–21 WASHINGTON, DC Be a part of protecting the sales channel and preserving the freedom and flexibility of the direct sellers who are America’s original entrepreneurs.

DSA LEGAL & REGULATORY SEMINAR

SEPTEMBER 21–23 WASHINGTON, DC Where DSA’s policy insights lead to practical business applications for a range of executives.

VISION 2023: SALES & MARKETING CONFERENCE

NOVEMBER 2–4 PARK CITY, UT Don’t miss out on this program’s action-packed schedule. We’ll give you the edge you need in today’s fast-paced world where markets shift and reshape at a unrelenting pace.

Visit dsa.org/events/upcoming to register today!

1667 K Street, NW, Suite 1100 | Washington, DC 20006-1660 202.452.8866 | Fax 202.452.9010 | www.dsa.org

D S A

M E S S AG E

DSA’s 2022 Advocacy Advances and What’s Next

UMMER IS OFTEN A TIME WHEN people slow down. For DSA and our advocacy efforts there is no time for a summer break or recess. The work of protecting the business model heats up like a hot summer’s day in August. The industry faced an inflection point regarding our two key issues: the salesforce’s independent contractor status and Federal Trade Commission channel oversight. The DSA team is working to build awareness among legislators and law enforcement officials about the benefits of self-regulation and the Direct Selling Self-Regulatory Council’s (DSSRC) success in protecting consumers. When the United States Department of Labor (DOL) announced plans to initiate a new rule for determining independent contractor status, it overtook a significant court victory by the Coalition of Workforce Innovation, an entity for which DSA serves as Vice-Chair. DSA had participated in forums with the Department, and we anticipate the announcement of a rule that will further narrow the criteria defining independent contractors. Although DSA’s work supporting federal and state legislation continues to clearly define direct sellers as independent contractors, the DOL’s move marks a significant development that will require extensive engagement. The Association continues to work with the Federal Trade Commission to ensure it has the power to move against the bad actors that masquerade as legitimate companies. DSA has supported legislation that, while including appropriate guardrails, grants the Federal Trade Commission the authority to collect monetary

BRIAN BENNETT

is the Senior Vice President Government Affairs and Policy, U.S. Direct Selling Association.

damages on behalf of consumers. Similar efforts have been and will continue to be successful at the state level. Over the course of a few short months, DSA undertook a Herculean effort regarding a proposed rule by the FTC that would specify the points that could—and could not—comprise any earnings claims made by companies and salesforce members. The Association formed an FTC engagement task force that dictated the strategy and approach for filing comments on the Advanced Notice of Proposed Rulemaking. The task force’s efforts will continue as the Commission determines whether to officially proceed with a rule. The DSSRC has had the good fortune to educate several states’ chief law enforcement officials about direct selling’s self-regulatory framework. It was through similar efforts DSSRC received praise from sitting U.S. Senators during a hearing of the United States Senate Commerce Committee. It is important that we continue our collaboration with legislators and regulators so that we can help shape the policies that protect consumers and allow our millions of microentrepreneurs to work their business seamlessly. We hope you are planning to bring executives and salesforce to Washington, DC on September 20-21 for Direct Selling Day on Capitol Hill to show the true impact of these businesses across the United States. Immediately following, the DSA Legal & Regulatory Seminar on September 21-23 will allow collaboration and presentations so you can integrate the latest compliance, legal, and regulatory issues into your 2023 plans and initiatives. Visit DSA.org for more details. DSN d i r e c t s e l l i n g n e w s . c o m 8 3

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.

I-PAYOUT 540 NE 4th Street Fort Lauderdale, FL 33301 866-218-4668 discover@i-payout.com i-payout.com i-payout leads the global payments industry. Since 2007, we have designed a customer journey for our clients and their payees to deliver customized, white-labeled, integrated solutions that go beyond our customers’ needs and expectations.

PAYQUICKER 400 Linden Oaks, Suite 320 Rochester, NY 14625 844-258-3006 payquicker.com PayQuicker is the leading global payout provider to direct selling organizations. Instantly make secure and compliant payouts to your field in local currency across the globe with our award-winning solution that provides the largest selection of flexible and modern spend options.

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

AUGUST 2022

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

METRICS GLOBAL, INC

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

SELLING NEWS

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

Keller, TX 817-697-4321 cpkrell.com

STRATEGIC CHOICE PARTNERS

8 4 D I R E C T

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 5

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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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.

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

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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.

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August 2022 Direct Selling News

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