STARTUP SUCCESS / NEW COMPANIES THAT HAVE CAUGHT FIRE
WHO'S GROWING & WHY / WE TAKE A DEEP DIVE INTO THE DATA
PM-INTERNATIONAL / 30 YEARS AND COUNTING
SCOUT & CELLAR / DELIVERING DELICIOUSNESS THE
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“
The Exigo commission run takes about a fifth of the amount of time that ours historically did.”
CHARLIE
From a straight ROI perspective, we're going to get a very strong ROI going with Exigo. There are no ifs, ands, or buts about it.”
STEVE
BILL JARM | PRESIDENT OF OPERATIONS, NEOLIFE “
Working with Exigo helped us put all our international regions onto one platform where we could see all the activity in near real time.”
BEN RILEY | PRESIDENT, YOUNG LIVING “ “
I have continually said over the last 10 years, one of the best decisions we ever made was partnering with Exigo right from the start. We’ve made some mistakes over the years, but our choice in software wasn’t one of them!”
LAURA BRANDT | PRESIDENT, IDLIFE
“
The goal was twofold: to eliminate technical debt and to modernize the commission system to keep pace with industry standards.”
We’re always hopeful for a technology partner that is going to be looking towards the future on what’s coming next which lets us focus on what’s coming next for our consultants.”
STEVE DEE | CIO, RODAN + FIELDS
The global leader in commissions, back o ce and eCommerce software and services. Email sales@exigo.com or scan to schedule a demo.
Tuesday, April 2
Wednesday, April 3
Thursday, April 4
IRVING CONVENTION CENTER / IRVING, TX
JOIN 600+ INDUSTRY EXECUTIVES for THE MOST EPIC INDUSTRY
EVENT OF ALL TIME— where legends unite, success shines and history is made!
VER TWO DAYS, hear from 40+ INDUSTRY EXECUTIVES representing over $50 BILLION in direct selling corporate revenue from stage!
n A Two-Day TED-Style Direct Selling Masterclass
n Access to Exclusive AI Workshop and Roundtable
n A Star-Studded Dinner, Awards Ceremony and Live Music
n Informative Discussions
n Game-Changing Insights
n Premium Networking
TACKLING TOPICS LIKE:
n AI Efficiency Maximization
n Strong and Compliant Business Practices
n Effective Affiliate Marketing and Compensation Strategies
n Engaging the Hispanic and Latino Market
n Global Expansion Strategies
n And Much More!
DSN proudly presents a powerhouse lineup of main stage speakers—subject matter experts and leading direct selling executives. These dynamic visionaries share firsthand insights, strategies and innovative approaches that are shaping the contemporary landscape of the direct selling industry.
WAYNE MOOREHEAD Marketing, Brand Strategy & Direct-to-Consumer Industry Expert | Direct Approach Podcast Host
BRIAN DILL Vice President of US Sales Norwex
SHAWN MEAIKE Founder & CEO Family First Life
HEATHER CHASTAIN Founder & CEO Bridgehead Collective
JESSE MCKINNEY Co-Founder & CEO Red Aspen
RANDY MATHEWS Sales Director PM-International
JOHN FLEMING Researcher, Author & Direct Selling Legend
STUART JOHNSON CEO, Direct Selling Partners, DSN, NOW Tech & Direct Selling Capital Advisors
MARK PENTECOST Founder & Chairman IT WORKS!
SARAH SHADONIX Founder & CEO Scout & Cellar
VANESSA GOMEZ General Manager, US. & Dominican Republic Immunotec
GARRETT MCGRATH President ANMP
AMBER OLSON ROURKE Co-Founder, CMO & CSO Neora
WILL TEMPLETON Director Global Brand, Sustainability & CSR Amway
ANTHONY VARVARO CFO & COO inGroup
KENYA VERGARA Global Marketing Director & Board Member Omnilife
BRANDON WHITE Founder & CEO | AI Expert Trevally
NICK JOHNSON Chief Field Operations Officer, Medifast Inc. & President, OPTAVIA
JOHN ADDISON Founder & CEO Addison Leadership Group
BRICK BERGESON Chief Revenue Officer Color Street
JASON DORSEY President & Lead Researcher Center for Generational Kinetics
BLAKE MALLEN Billion-Dollar Brand Builder & Community Marketing Strategist | SHIFT Podcast Host
MEREDITH BERKICH President LifeWave
Plus, hear from an unprecedented assembly of industry titans and iconic leaders in the history of the channel! Don’t miss this once in a lifetime opportunity as they generously share their unparalleled insights into the rich history of the direct selling industry and their visionary perspectives on the future.
STAN FREDRICK Chairman of the Board Mannatech
MAGNUS BRÄNNSTRÖM Former President & CEO Oriflame (Joining Virtually)
GREG PROVENZANO President & Co-Founder ACN
DOUG DEVOS Co-Chairman of the Board Amway (Joining Virtually)
RICK GOINGS Chairman Emeritus Tupperware Brands
KEVIN GUEST Executive Chairman USANA
KATHY COOVER Co-Founder Isagenix (Joining Virtually)
JERRY BRASSFIELD Direct Selling Legend, Founder & Chairman NeoLife
RUDY REVAK Founder & Chairman Xyngular, Owner & Chairman PUREhaven Essentials
JONI ROGERS-KANTE Founder & CEO SeneGence (Joining Virtually)
LARRY THOMPSON Direct Selling Legend & International Business Strategist ORVILLE & HEIDI THOMPSON Co-Founders & Co-CEOs Scentsy (Joining Virtually)
4 CEOs from young companies generating at least $1M in monthly revenue and founded within the last 5 years share empowering growth strategies.
& Direct-to-Consumer Industry
Approach Podcast Host
Don’t miss this informative panel of industry executives that will share not only the importance of building and maintaining a strong compliance strategy but also key tips on how to do it.
2 BONUS AI SESSIONS / TUESDAY EVENING APRIL 2
Complimentary access included with your DSU Registration
SPECIAL GUEST
SPECIAL GUEST
SPECIAL GUEST
IDEAL FOR CSOs, CMOs, TRAINING AND CREATIVE TEAM MEMBERS
TUESDAY, APRIL 2
6 PM - 8 PM
New AI Workshop focused on Sales, Marketing and Training hosted by Blake Mallen (Back by popular demand)
IDEAL FOR ALL COOs, CTOs, CIOs, CEOs AND OPERATIONAL TEAM MEMBERS
TUESDAY, APRIL 2
6 PM - 8 PM
New AI Operational-Focused AI Roundtable Session hosted by Heather Chastain
Speakers are subject to change.
|
WAYNE MOOREHEAD (Moderator) Marketing, Brand Strategy Expert Direct JENN ASHBY Co-Founder Savvi ASPEN EMRY Co-Founder & CEO Bravenly Global HANIEH SIGARI Founder & CEO Qyral BERNADETTE CHALA Chief Legal Officer General Counsel Arbonne HEATHER CHASTAIN (Moderator) Founder & CEO Bridgehead Collective HEATHER CHASTAIN HOST BRANDON WHITE BLAKE MALLEN HOST BRANDON WHITE ART JONAK BARB PITCOCK Founder & CEO frequense KATRINA EASH Partner Winston and Strawn Law Firm DEBORAH K. HEISZ Co-CEO Neora( TIMES LISTED IN CT )
APRIL 2
9 AM - 4 PM CEO Forum (invitation only)
5 PM – 8 PM DSU Welcome Reception
6 PM – 8 PM AI Workshop with Blake Mallen (Sales/Marketing/Training)
6 PM – 8 PM AI Roundtable with Heather Chastain (Operations/IT/Finance)
APRIL 3
9 AM – 5 PM DSU
6 PM – 12 AM Global Celebration, Dinner, Awards and Live Music
PRESENTING SPONSOR EXIGO
APRIL 4
9 AM – 1 PM DSU
For over 40 years, our legal and lobbying teams have brought extensive knowledge of the direct selling industry to every engagement and relationship, including the recent landmark case against the Federal Trade Commission (FTC) in 2023. We deliver comprehensive solutions to fit your specific needs so you can make critical business decisions with confidence.
For more information about Foley, please contact:
Ed Burbach | Partner | Austin | eburbach@foley.com
Jane Fergason | Partner | Dallas | jfergason@foley.com
We believe compliance is critical to success. Partnering with us will compliment your US and Global regulatory/compliance initiatives, so that you can focus on growing your business in the dynamic Canadian market. Our deep
Intoday’s fast-paced and compe��ve business landscape, where direct selling organiza�ons are
expanding – and in some cases, consolida�ng – their reach across the globe, efficiency and seamless opera�ons are paramount. Execu�ves understand that keeping their workforce content and mo�vated is essen�al for sustained success. Direct selling organiza�ons, in par�cular, are faced with the complexi�es of paying their independent distributors around the globe.
Payments need to be made �mely and securely through a solu�on with minimum overhead that caters to the diverse payment needs of all demographics, all while keeping in compliance with global regula�ons. Keeping the field engaged is a priority, and increasing internal efficiencies and reducing costs is key to business growth. Let’s explore ways to revolu�onize your payout strategy and elevate your business to new heights.
In the era of instant gra�fica�on, delayed payments can lead to dissa�sfac�on and disengagement among your distributors and affiliates. Your field wants to see their hard work translating into immediate rewards. With PayQuicker's instant payout solu�on, you can payout as o�en as you like – daily, weekly, monthly, or even hourly. Paying your field in real-�me not only boosts their mo�va�on and loyalty, but also enhances their overall experience with your organiza�on. With the ability to disburse funds instantly, you can keep your salesforce excited and mo�vated, fostering a culture of high-performance. Your field’s dedica�on to your organiza�on’s goals is bound to soar.
Direct selling organiza�ons thrive on their ability to connect with diverse audiences worldwide. However, managing payouts across different countries and currencies can be a daun�ng task. Tradi�onal methods o�en involve lengthy processes, high fees, and currency conversion complica�ons. PayQuicker’s advanced technology eliminates these challenges by streamlining your payouts in local currency with a global solu�on, ensuring that you receive the most cost-effec�ve channels to reduce corporate cross-border payout expenses. With our extensive global network of best-in-class providers, you can pay to 210+ countries and territories in over 40 currencies. Our intelligent payout rou�ng not only reduces inefficiencies and eliminates FX fees, but also allows you to adapt quickly to market changes and stay ahead of the compe��on.
Everyone has different preferences when it comes to receiving payments. Some might prefer bank transfers or paper checks, while others lean towards digital wallets or prepaid cards. PayQuicker offers a range of flexible payment methods, including branded debit cards, instant virtual cards, ATM cash, bank transfers, Apple/Google Pay, and more – all through our mul�lingual pla�orm. This customiza�on adds a layer of convenience and empowers your distributors to manage their finances in a way that works for them. By catering to their individual needs, you enhance their sa�sfac�on and strengthen reten�on. With PayQuicker, you're not just paying your distributors; you're providing them with a seamless financial experience.
Paying your field in real-time not only boosts their motivation and loyalty, but also enhances their overall experience with your organization.
Security and compliance are non-nego�able aspects of any financial transac�on. PayQuicker places a strong emphasis on data security and fraud preven�on, while maintaining regulatory compliance. With a pla�orm designed with bank-grade security measures, including robust encryp�on and mul�factor authen�ca�on protocols, PayQuicker ensures both your company’s and your field’s sensi�ve informa�on is secure from end to end. Reduce risk and eliminate liability with our automated KYC service that allows your distributors to easily onboard themselves to the system, relieving your team of the burden of iden�ty verifica�on and secure data collec�on. This level of protec�on not only gives your field peace of mind but also builds trust and ensures your payouts are processed smoothly without any disrup�ons.
Integra�ng and managing new solu�ons with your exis�ng business infrastructure can be a concern for business leaders. The administra�ve burden can eat into your resources and lead to opera�onal inefficiencies. That is why PayQuicker takes pride in its seamless integra�on and excep�onal customer service that provides support every step of the way, from onboarding and beyond. Our complete payment and debit card solu�on includes comprehensive program management with hassle-free deployment. Be up and running within days with a single bank applica�on and API integra�on or batch file upload op�ons. Our US and Canadian Tax Service is available to save your finance and accoun�ng teams the �me, money, and hassle of mee�ng IRS & CRA filing requirements. Your field is also taken care of with our full in-house mul�lingual support team available by phone, live chat, and email.
Our partnership with PayQuicker has allowed us to pay commission to our Presenters within three hours of making a sale, completely changing the traditional commission payment paradigm. As we continue to expand aggressively, PayQuicker has been there every step of the way. We cannot think of a better payment solutions partner than PayQuicker.
Derek Maxfield Founder & CEO, YouniqueIn a dynamic business landscape, where direct selling organiza�ons strive to outperform their compe�tors, PayQuicker's instant global payouts solu�on offers a revolu�onary way to enhance your payout process. From real-�me payouts and seamless cross-border transac�ons with enhanced security to flexible payment methods and unparalleled support, PayQuicker empowers you to provide an excep�onal experience for your payees while streamlining your opera�ons. By choosing PayQuicker, you're not just making payments - you're making a strategic investment in the growth and prosperity of your direct selling organiza�on.
Experience the future of payouts with PayQuicker. Contact us today to elevate your payout experience and drive unparalleled growth.
Visit payquicker.com to schedule a demo.
SARAH PAULK
What part of your business would benefit by bringing in outside expertise to help your team be more efficient and effective?
ELEGATING time-intensive business functions to highly skilled suppliers provides the breathing room to focus on unique skill gaps, like training team members on best practices, getting up to speed with new technology or customer service response that many organizations overlook.
For your convenience, we have compiled a list of our display advertisers. When contacting these companies or those in our Supplier Directory (starting on page 100), please let all of our valued advertisers know that you saw them in DSN .
“ OUR PARTNERSHIP with DSN has allowed Momentum Factor to continue to solidify its place as the premier compliance monitoring and brand safety service provider in the direct selling industry. They have also helped us offer our suite of services to new clientele in an ever-expanding direct sales space.
—TRAVIS WILSON / Director of Business Development, Momentum Factor
Exigo
214-367-9933 / EXIGO.COM
PAGES INSIDE FRONT COVER-1
Foley & Lardner LLP
312-832-4500 / FOLEY.COM/
PAGE 8
Scheef & Stone, LLP 214-706-4211 / SOLIDCOUNSEL.COM
PAGE 8
Miller Thomson
416-595-7930 / MILLERTHOMSON.COM
PAGE 9
PayQuicker
844-258-3006 / PAYQUICKER.COM
PAGES 10-11, 37
Association for Entrepreneurship 844-750-5927 / AFEUSA.ORG
PAGE 16
Sunwest Communications
214-373-1601 / SUNWESTPR.COM
PAGE 25
Flight Commerce 813-277-0625 / FLIGHTCOMMERCE.COM
PAGE 23
Katapult
407-915-9060 / KATAPULTEVENTS.COM
PAGE 27
Thatcher Technology Group
630-696-4545 / THATCHERTECH.COM
PAGE 29
Teqtank
844-605-9624 / TEQTANK.COM
PAGE 31
Momentum Factor
512-690-2134 / MOMOFACTOR.COM
PAGE 33
i-payout
DISCOVER@I-PAYOUT.COM / I-PAYOUT.COM
PAGE 36
Nexio
877-551-5504 / NEX.IO
PAGE 41
Quickbox
720-990-5642 / QUICKBOX.COM
PAGE 43
Squire
801-225-6900 / SQUIRE.COM/NETSUITE
PAGE 53
Metrics Global
702-757-9600 / METRICSGLOBAL.COM
PAGE 75
Direct Selling Association
202-452-8866 / DSA.ORG
PAGE 98
NOW TECH
310-428-9936 / NOW-TECH.COM
PAGE 103
InfoTrax
801-431-4900 /
INFOTRAXSYS.COM
BACK COVER
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AS I WRITE THIS LETTER, we are just days away from DSN’s 20th Anniversary Spring Event. I cannot begin to tell you how excited the entire DSN team is to bring all this work and effort to fruition. This event truly is our biggest and best ever. And we will do it again this fall. Plus, we’re highly anticipating our first-ever international event with DSU Europe in June in the United Kingdom. Even in these challenging times, there is still so much to celebrate, recognize, honor and explore in this ever-evolving channel. Thank you for being a part of the journey.
I’m very excited to share this month’s cover story, which looks at the Neora ruling and how the decision in that case provides a blueprint for other companies in the channel to follow. If you want to know how your company would stand up to similar scrutiny, you need to take a deep, dive into our checklist.
We recognize that many of you are struggling with growth. In fact, we’re estimating the channel will be down approximately 10 percent for 2023 when all the numbers are finally tallied. That being said, there are some companies who are growing forward. We examine
how and why in two separate features this month. One looking at the startups that are standing out, and another examining the companies that have grown year-over-year from 2019-2023. We believe there are key lessons and takeaways for every company in both stories. I hope you find them valuable.
Our Company Spotlights shine bright this month as we profile PM-International and Scout & Cellar. We highlight PM’s remarkable record of growth and Scout & Cellar’s innovative spirit and passion.
At DSN, we strive to be your daily resource for global news impacting the direct selling channel. Make sure to sign up for our free resources like 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 top stories first and fast!
All the best,
LIFETIME ACHIEVEMENT AWARD
16 AWARDS, LIVE MUSIC, UNPRECEDENTED ASSEMBLY OF LEGENDS & ICONS AND THE GLOBAL 100 LIST REVEAL!
LEGACY AWARD
THANK YOU TO OUR PREMIER PRESENTING SUPPLIER PARTNER!
This is DSN’s 20th Anniversary Year, and it’s also the 15th Anniversary of our Global Celebration and Awards event. If there was ever a year to pull out all the stops and throw the ultimate direct selling celebration, this is it!
This annual event unites industry leaders, innovators and visionaries from around the world with thousands of people watching the awards via virtual broadcast across the globe.
WEDNESDAY, APRIL 3
6 pm - 7 pm / Cocktail Reception
7 pm - 8 pm / Dinner
8 pm - 10:45 pm / Awards
10:45 pm - 12 am / Live Music with the Free Radicals band
Don’t miss the most epic celebration and awards event this channel has ever seen!
The Annual DSN Global Celebration: $179/per person. DSN Supporter companies receive a set number of complimentary tickets to the Global Celebration determined by support level.
The Global Awards Live Stream is free to everyone, including distributors. Streaming available on directsellingnews.com beginning at 8:00 pm (CT).
Six hours.
Sixteen awards.
One band.
Hundreds of memories.
Led by USANA’s Executive Chairman Kevin Guest, the Free Radicals are a high-energy, high-octane world-class cover band. When they take the Global Celebration stage, this group of talented musicians will next level the party and have you dancing and singing along.
This is the first time we will have live entertainment at the DSN Global Celebration, and we want you there to enjoy all the fun and part of the memories as we celebrate and honor the best of the channel.
At DSN, we take celebrations seriously! That’s why we will be presenting more awards than ever before! In addition to the annual unveiling of the Global 100 List, we’ll also be recognizing not one, but TWO Lifetime Achievement Award winners and bestowing a special Legacy Award, 13 Bravo Awards and so much more!
This is THE INDUSTRY EVENT OF THE YEAR! It’s a game-changing celebration of success, recognition, networking and unparalleled takeaways for you and your entire executive sta !
Make plans now to join us Wednesday, April 3, 6 pm – 12 am (CT) for cocktails, networking, recognition and an epic celebration of all things direct selling!
PATRICIA WHITE
Patricia, Publisher at DSN, brings a wealth of experience to her role. With six years at DSN and a background as a direct selling field distributor, she’s adept at understanding the industry from the inside out. Prior to joining DSN, Patricia spent 15 years in project management, publishing and philanthropy, honing her skills and passion for driving success. Patricia’s dedication and expertise make her a valuable asset, shaping the landscape of both publishing and direct selling with innovation and vision.
John has been one of direct selling’s most consistent and strongest advocates. His successful career as a distributor led him to a corporate role with Avon Products, Inc., followed by the distinguished title of Publisher and Editor-in-Chief of Direct Selling News for nine years. He was the first recipient of the Direct Selling News Lifetime Achievement Award. John is also the author of Ultimate Gig: Flexibility, Freedom & Rewards, which was published by Emerald Publishing and a recipient of PROSE recognition from American Publishers Association. John is principal of Ideas and Design Group, LLC, and has received both the Direct Selling Association Hall of Fame and Direct Selling Education Foundation Circle of Honor recognitions.
Our mission is to serve, educate and edify the channel with daily breaking global news, emerging trends and powerful stories, made possible through the generosity and support of our Premier Supplier Partners. Thank you for your dedication to the direct selling channel!
For information on how to become a Spring DSU Sponsor, email jtaylor@directsellingnews.com.
n Awakend and Q Science Enter into Strategic Partnership
n K larna AI Assistant Does Work Equivalent to 700 Full-Time Agents in Debut Month
n PartyLite to Transition from Direct Selling to Direct-to-Consumer Model
n Vida Divina Purchases Radien Brand
n Natura &Co Considers Independent Public Listing for Avon
PLEXUS WORLDWIDE held its annual Super Saturday event in Arizona, welcoming more than 6,000 representatives who attended both in-person and virtually. The event offered training sessions from top Plexus distributors and offered company updates from Plexus executives.
“Our vision is an expansion and impact of spreading hope, health and happiness around the globe,” said Gene Tipps, Plexus CEO. “We aspire to not only enter new markets but redefine them. Through our unwavering commitment to quality and innovation we will set new standards that will inspire others to follow.”
The event also highlighted Plexus’s philanthropic initiative, Nourish One, which has officially donated 40 million meals to date to service organizations Feeding America and Mary’s Meals.
HERBALIFE WELCOMED 1,400 distributors from across the US and Canada to its annual Future President’s Team Retreat (FPTR) at the Fountain Bleu Las Vegas. Participants engaged in trainings led by Herbalife executives and top performers.
“It gives us great pride as a company to not only help equip our independent distributors to provide the guidance, motivation and commitment to enable their customers to build healthy habits, but to be able to take that same level of commitment and make an impact worldwide with communities in need,” said Humbi Calleja, Herbalife North America Vice President and General Manager.
The event raised almost $30,000 to support Herbalife Nutrition Foundation’s philanthropic efforts to provide nutrition and education to support childhood wellness. DSN
Influencer marketing has become a necessity. The American Marketing Association (AMA) says that 80 percent of companies in the US now use influencers for marketing purposes in what has become a $17.4 Billion industry. And while influencer marketing tends to get lumped into one category regardless of follower count, a new study by the AMA is shedding light on how influencers with smaller followings, known as nanoinfluencers, can provide a competitive edge.
Nano-influencers sell products on YouTube, TikTok and Instagram just as influencers with massive followings, or macro-influencers, do. To be sure, macro-influencers reach more people, but the AMA’s data points out that the more crucial ingredient to driving profitability is engagement rather than followers.
Nano-influencers have what the AMA describes as a “more intimate connection” with their audiences
that propels them to consistently outperform macroinfluencers. Brand partnerships with nano-influencers deliver higher ROI and more authentic relationships, with the added bonus of affordability that allows for partnering with multiple nano-influencers to reach a broader audience for the same price as one cost-prohibitive macro-influencer.
When considering the reach-to-revenue journey of a sponsored post, the AMA found that revenue for macroinfluencers may be six times higher than their counterparts with smaller followings, but the costs are also 18 times higher. What’s more, nano-influencers provide a ROIS, or return on influencer spend, that is three times higher than macro-influencers.
At a glance, macro-influencers may appear to be a stronger marketing spend, but nano-influencers wield a different, more nuanced purchasing power. DSN
Every show starts with an idea and dreams to match. We specialize in taking every element of your event and bringing it to reality.
+
For the full articles, visit
KIM
Plexus Worldwide announced Kim Drabik has been named Vice President of Corporate Affairs.
“Kim’s exceptional track record in developing and executing integrated communication and government affairs strategies align perfectly with the requirements of this pivotal role,” said Chris Reid, Plexus Worldwide CLO. “Her leadership and expertise will undoubtedly elevate Plexus as a responsible and innovative company, driving us closer to our objectives.”
MONAT Global Corp has promoted Carla Hernandez to Vice President Global Marketing. Hernandez joined MONAT in 2022 as Vice President Marketing and Communications.
“The work my teams accomplish directly impacts our customers and the businesses of MONAT’s independent Market Partners around the world,” Hernandez said. “The real icing on the cake for me is the opportunity to work with an innovative brand that is equally interested in developing amazing products and talented entrepreneurs.”
4Life promoted Steve Pederson to Vice President of Supply Chain, Quality and Analytical Services. Pederson joined 4Life in 2020 and has been an integral part of improving the company’s Quality Management System, which now includes product quality, regulatory compliance, product certification criteria, quality systems implementation, vendor qualification through auditing and performance, and lab and analytical services.
Pederson is a Certified Quality Engineer, former Marine and brings two decades of experience in supplements and nutraceuticals.
Amway announced that Rajneesh Chopra has been appointed Chief Executive for its India market. Chopra brings significant executive experience within the direct selling space and a solid track record of driving transformative change in retail, direct selling, social commerce and digital transformation.
Previously, Chopra served as Vice President of Sales for Amway North America, where he was instrumental in implementing innovative strategies that solidified Amway North America’s leadership within the company. During this time, Chopra also developed high-impact training resources in partnership with the field.
GREGG RENFREW CHIEF EXECUTIVE OFFICER, BEAUTYCOUNTER
Beautycounter Founder Gregg Renfrew will return to the company as Chief Executive Officer. Renfrew, who sold the company to private equity firm Carlyle in a $1 billion deal in 2021, exited the company’s executive team in 2022 but remained on the company’s board of directors.
“Without question, Beautycounter’s greatest opportunities are ahead of us,” Renfrew said. “Consumers are demanding, now more than ever, the things that we have brought to the industry from the very beginning: transparency, health and safety for people and the environment, innovative products, an engaged community and a business that is much more than its bottom line. Who we are, and the work we do, truly matters to so many people. I’m energized to build on our history of disrupting to create a movement for change and a higher industry standard.”
AYO OLASEINDE CHAIRMAN, DIRECT SELLING ASSOCIATION UK
The Direct Selling Association of the United Kingdom (DSA UK) announced the appointment of Ayo Olaseinde to Chairman of the Board. Olaseinde has served as a DSA UK board member and is the Global President of Saladmaster.
“I am humbled to be recognized by the industry and DSA,” Olaseinde said.
“To go from my background to where I am today is a testimony of the opportunity and training within direct sales. There are no limits if you work hard, learn and apply. The only limits are the ones you put on yourself. Direct sales is a beacon of hope for the ordinary person to excel in any areas they want to. Our goal at the DSA UK is to raise the profile of direct sales, with the government and media, while setting standards.”
OLIVER DIBBLEE CHIEF GROWTH OFFICER, AMARE GLOBAL
Amare Global has appointed Oliver Dibblee to the role of Chief Growth Officer. Dibblee has more than 15 years of experience in the consumer product goods (CPG) sector where he developed an expertise in P&L management, GTM sourcing and execution, operational efficiency and strategic sales planning.
“Our company is entering a new era, and Oliver is the perfect addition to our leadership team to help guide key strategic initiatives as we continue our momentum phase,” said Jared Turner, Amare Chief Executive Officer. “His ability to execute company strategy is unparalleled, and we are very fortunate to have him on board. I am confident that Oliver will significantly contribute to our success.”
EXECUTIVE OFFICER, L’OCCITANE GROUP
L’Occitane Group announced Laurent Marteau has been named Group Chief Executive Officer. L’Occitane expanded its omnichannel strategy with an entrance into the direct selling space in 2021 and is also the parent company of direct selling organizations LimeLife and Duolab.
The newly created role of Group CEO combines the roles and responsibilities of CEO and Group Managing Director into one position, a move that the Group described as a way to sustain “the company’s transformation into a geographically balanced, multi-brand group.”
“As our group grows, we need to evolve,” said Reinold Geiger, L’Occitane Group Chair. “Laurent embodies the group’s entrepreneurial mindset and deep commitment to people and nature.”
LegalShield welcomed Robert Toevs as its Chief Communications Officer. Toevs has more than two decades of corporate communications experience in the tech, telecom and media markets. Prior to this appointment, Toevs served as a senior advisor to LegalShield’s management team.
In this new role, Toevs will help shape the narrative for both LegalShield and IDShield.
“Bob’s expertise is developing the corporate communications function into a powerful asset,” said Warren Schlichting, LegalShield Chief Executive Officer. “He brings a unique and seasoned perspective that drives revenue, elevates reputation and aligns culture. I believe his expertise can play a crucial role in enhancing our brand presence and effectively communicating with both internal and external stakeholders.”
4Life announced new General Managers for its Southeast Asia markets, including Pathamarat (Aim) Tonjunpong, who has been named General Manager of Thailand, and Kurmanto, who has been named General Manager of Indonesia. Both leaders will oversee the company’s sales and operations from their respective headquarter locations in Bangkok and Jakarta.
Aim brings corporate experience as well as field leader experience, with expertise in sales and management. Kurmanto has more than two decades of direct sales experience and specializes in the operational aspects of the business, including pricing, compensation plan strategy, product registration and licensing, logistics and leadership training.
“I’m excited to welcome these two seasoned professionals to the 4Life family,” said Dave Nash, 4Life Senior Vice President of Asian Markets. “They each bring industry knowledge and success to their new roles, as well as a desire to forward our mission of superior science, affiliate success, philanthropic service, and customer satisfaction wherever 4Life conducts business around the world.”
LifeVantage Corporation announced Dayton Judd has been named to the company’s board of directors. This appointment comes as a result of discussions with the Radoff-Sudbury Group, which owns 12.6 percent of the company’s outstanding stock, as the two entities work together to build a framework for long-term collaboration. Judd’s position is in connection with a Cooperation Agreement between the two parties.
“We welcome Dayton to the board and believe his insights and perspective will benefit the company and its shareholders,” said Steve Fife, LifeVantage President and Chief Executive Officer. “The LV360 initiatives are driving improving profitability and we remain on track to return Adjusted EBITDA margins back to double-digit levels. Coupled with our strong balance sheet, we expect to continue returning a meaningful portion of excess free cash flow to shareholders through dividends and share repurchases.”
dōTERRA announced significant changes to its executive team. Founding Executive and former President Emily Wright will now serve as Chair of the Board. Kirk Jowers has been appointed Chief Executive Officer and Murray Smith, formerly Executive Vice President of International, has been named President. These appointments follow Corey Lindley’s recent retirement from CEO.
Jowers has been a part of the dōTERRA team since 2015 and has been an instrumental part of guiding the company’s expansion and success across Europe, the Middle East and Africa. He was the first non-founder on the company’s executive committee and led the company’s international, corporate, public and government relations.
“I am truly honored to be entrusted with this position to serve dōTERRA’s incredible Wellness Advocates,” Jowers said. “I will put my whole heart into building on the foundation that the founders have laid and continuing dōTERRA’s world changing vision, mission and purpose. dōTERRA is poised for massive growth, and I can’t wait to get started.”
Wright will continue to remain active in the day-to-day operations of the company but will now focus her energy on setting growth strategies and supporting the company’s independent distributors.
“We are thrilled to welcome Kirk Jowers as our new CEO and Murray Smith as President,” Wright said. “Their combined expertise and dedication will further propel dōTERRA’s mission of helping the world heal by empowering individuals and communities worldwide through our natural wellness solutions. As we move into our next phase of massive growth, bold, capable leadership is required. We’re on our way to fulfill our mission to triple our impact by 2030 and to expand our influence for good around the globe!” DSN
JOE L. DUDLEY, SR. recently passed away. Dudley was a Direct Selling Association Hall of Fame member known for his personal mantra of “I am, I can, and I will.”
Dudley launched his direct selling career in 1957, when he invested $10 in Fuller Products to become a salesman. He met his wife Dr. Eunice M. Dudley while selling Fuller Products and the two earned their way through college selling products door to door, soon earning more per year than their business school professors. Three years later, the two began manufacturing and selling their own line of consumer goods under the Dudley Products label.
“Joe believed deeply in the free enterprise system,” said John Fleming, DSN Legend and industry veteran. “I can remember many of our early conversations. Joe was focused on what he was going to do, never on what he had already done. Joe was the gifted educator, leader, orator and coach. Eunice was always the steady operator who kept it all together as they embarked upon a lofty vision and mission.”
Dudley Beauty Corp, LLC distributed more than 400 professional and retail textured hair care and personal care cosmetics directly to cosmetologists, barbers and beauty schools across the US and internationally. Focused on serving the Black consumer, Dudley Products saw significant sales and the company was listed in the top 50 in Black Enterprise Magazine’s Top 100 BlackOwned Businesses. Dudley Hair Products was even featured in Chris Rock’s documentary “Good Hair.”
“He embraced the fundamentals of direct selling and led the building of an enterprise based upon growing and serving people,” Fleming said. “Joe leveraged his direct selling roots, acumen and vision to serve the African American community like no other I have met. He accomplished everything he set out to do.”
Dudley received a number of honors in his lifetime, including the Maya Angelou Tribute to Achievement Award; Inc. Magazine’s North Carolina Master Entrepreneur Award; President George Bush’s 467th Point of Light Award; and election to The Horatio Alger Association of Distinguished Americans DSN
A CURATED RESOURCE TO HELP YOU FIND STRATEGIC BUSINESS PARTNERS SPECIALIZING IN DIRECT SELLING.
THE CHANNEL IS EVOLVING RAPIDLY—companies and executives must stay ahead of emerging trends and technologies to build for the future. But it can be time - consuming and hard to find the right suppliers to partner with.
That’s why we’ve developed The DSN Guide. In each issue, The Guide includes curated lists by category of expertise and service. These suppliers currently serve the channel—they understand the unique challenges and opportunities that come with direct selling and can help you implement your intiatives.
personalization and building audience trust are effective strategies for companies to cut through the online marketing noise. SMS marketing continues to emerge as a powerful tool with an 84 percent global penetration of smartphone users. Americans check their phones every 10 minutes on average, making text messages a channel that demands attention. With a 98 percent open rate, SMS presents a unique opportunity for businesses to connect with their audience effectively.
An SMS sales funnel guides prospects through the buyer’s journey via text messages, ensuring a high visibility rate. More direct selling field leaders are embracing this strategy to increase interest and convert followers to customers in a cultivated way. However, according to SlickText, 61 percent of marketers still don’t use SMS marketing, and just 35 percent of brands have a formal SMS messaging strategy in place. This creates an opportunity to get a leg up on competition. Here are some of the core reasons why text marketing funnels are so relevant in today’s online atmosphere with evolving customer expectations.
In today’s diverse landscape, a universal approach falls short. Customers demand personalized engagement but not overwhelming communication. SMS sales funnels craft targeted strategies for distinct customer groups through tailored messaging that resonates.
Creating personalized messages for diverse customer groups may seem daunting, but SMS autoresponders facilitate seamless interaction, enabling automatic responses to thousands of customers. Whether it’s a welcome message; a sales follow-up; or a gratitude note, automated replies ensure swift responses for every customer.
Within an SMS sales funnel, gain clarity on customer journeys and optimal outreach times. Crafting SMS templates aligned with customer segments streamlines mass business texting. The result? Bulk messages that retain a personalized touch, enhancing efficiency.
SMS stands out as a valuable addition to your marketing toolbox. For those with multi-channel sales funnels, SMS marketing complements existing channels, providing direct customer communication to achieve your objectives.
The ultimate goal across sales channels is customer conversion. Integrating SMS into your strategy, with tailored content at different stages, paves the way for successful purchases. Understand your prospects’ journey, customize your SMS approach, and witness a transformative impact on your business.
SMS MARKETING complements existing channels, providing direct customer communication to achieve your objectives.
RELEVANT SMS MARKETING STATS FOR 2024
THE SIZE of the SMS marketing industry is expected to grow to $12.6 BILLION
(GRAND VIEW RESEARCH)
IN 2022, mobile advertising spending reached a record $327 BILLION worldwide. (STATISTA)
THE AVERAGE SMS marketing response rate is 45% (SMS LOCAL)
48% OF CUSTOMERS prefer to be contacted by businesses via text message to any other channel.
(SMS COMPARISON)
TEXT MESSAGE promotions have a click-through rate of 19%
SMS MARKETERS generate $71 for every dollar spent. (DRIPS)
23 BILLION text messages are sent a day, globally. (FORBES)
FEWER THAN 5% of SMS subscribers ever unsubscribe, while 20% of email subscribers leave each year.
(TEXT REQUEST)
6 / FOSTER DEEPER CUSTOMER ENGAGEMENT. Basic social media ads lack communication and a personal touch. Customers beyond the awareness stage seek more than just ads. Twoway text messaging bridges the gap, allowing instant and personal connections. Engage customers in a meaningful dialogue beyond the noise.
7 / INNOVATE THROUGH CONTINUOUS TESTING AND OPTIMIZATION.
The SMS sales funnel’s strength lies in adaptability. Constantly test, measure results and optimize the flow. Identify resonating messages; discover the most effective types of texts; and employ tactics that excite customers. Previous outreach data serves as a robust foundation for future SMS funnel enhancements.
8 / UTILIZING SMS AT VARIOUS FUNNEL STAGES.
Tailoring your SMS strategy to each buyer’s journey stage is pivotal for success. In the awareness stage, attract opt-ins through incentives, sign-up forms and leveraging existing email campaigns. Transition to the interest stage with welcome messages and campaigns to stay top of mind. In the decision stage, employ segmentation, drip campaigns, special offers and responsive support. The journey continues post-purchase, utilizing SMS for customer support, cross-selling, upselling, review requests and efficient customer surveys.
As the direct selling channel embraces more direct-to-consumer and affiliate strategies, implementing SMS-based sales and marketing funnels—perhaps aided by AI language models— could be an effective approach leveraging evolving customer behaviors DSN
Take control of your payments strategy
Orchestrate payouts to your distributors
Optimize your transactions to grow your revenue
Maintain flexibility in the ever-changing world of payments
Nexio was purpose-built to solve the payment problems direct sellers face. Our unified platform simplifies the complexity of the payments industry and helps you design forward-thinking strategies.
We’re excited to announce we are consolidating brands with our parent company, Complete Merchant Solutions (CMS). Consolidating our services under the Nexio brand enables us to simplify processes and optimize the services we provide.
USING VOICE COMMANDS and AI-driven voice assistants to order products, including everyday necessities, continues to become a normal customer experience. Dubbed “voice commerce,” this allows consumers to interact with retail websites, bypassing screens and keyboards for a seamless shopping experience
While voice commerce currently represents a fraction of overall ecommerce volume, its growth trajectory is undeniable. Currently, the experience is used more for searching, but ordering and even reoccurring orders are on the rise. It’s certainly a rising trend direct selling companies should explore or integrate onto a larger ecommerce strategy.
Voicebot.ai says 26 percent of voice assistant users have made a purchase using voice search, while Narvar says 43 percent of consumers use voice search to research products. According to DestinationCRM, approximately 60 percent of American online consumers use smart home voice assistants for daily or weekly shopping.
60% OF AMERICAN ONLINE CONSUMERS USE SMART HOME VOICE ASSISTANTS FOR DAILY OR WEEKLY SHOPPING.
To grasp how voice commerce operates, envision yourself using an Amazon smart speaker and Alexa to order a blue suitcase with pivot wheels small enough to take on a plane. Through a simple dialogue with Alexa, you can specify the brand, capacity and color of the product in a conversational-style experience.
Voice commerce offers streamlined transactions, enhanced customer satisfaction, personalized recommendations and upsell opportunities.
However, it also presents challenges such as technology adoption barriers, trust issues, limited network integration and vendor instability. Integration can feature conversational keywords, optimized product content and incentivized repeat orders. As voice commerce continues to gain momentum, its impact on the retail industry is poised to grow exponentially. US voice commerce was projected to reach $80 billion by 2023.
1/
Voice commerce—with its ability to identify consumer patterns through voice search—ensures a seamless and enjoyable shopping experience, connecting customers to brands they trust.
With 71 percent of consumers desiring customization, voice commerce provides online shoppers a unique and tailored experience, leveraging valuable information about individual purchase habits to enhance efficiency.
Utilizing digital payment systems and encrypted processors, voice commerce offers financial data protection, instilling confidence in customers to make secure purchases from unfamiliar online stores, while also simplifying product exploration and evaluation.
By eliminating the need for website or app navigation, voice commerce provides a convenient and enjoyable shopping experience, catering to on-the-go schedules and streamlining the order placement process. DSN
I APPRECIATE DSN’S TIRELESS WORK to report the news around directselling, but also how they share the positive stories surrounding it. DSN is a reputable and powerful voice that always strives to edify the channel and highlight the direct selling companies that are doing the right things .
— JONI ROGERS-KANTE / FOUNDER & CEO, SENEGENCE “
When one company succeeds, the entire channel benefits.
that sensibility in mind that we developed the DSN Supporter Program in 2022 and welcomed dozens of companies, representing billions in cumulative revenue, committed to helping this channel grow and enhance its relevancy.
Our mission is to serve, educate and edify the channel as the daily resource for breaking global news, emerging trends and powerful stories. With DSN, it’s easy for direct selling executives to stay informed, engaged and always one step ahead.
Your support helps DSN continue to provide relevant information, exposure, edification and education for companies and executives to help evolve the channel forward for the global community.
GENERATIONAL
ACTIONABLE INSIGHTS AND OPPORTUNITIES
FROM THE FIRST‑EVER DIRECT SELLING GENERATIONAL ENGAGEMENT STUDY.
BY HEATHER CHASTAIN
DIRECT SELLING HAS BECOME AN INCREASINGLY POPULAR AVENUE for individuals to start their own businesses and earn income. To gain a comprehensive understanding of the perceptions surrounding direct selling, the Direct Sales Generational Engagement Study was conducted by Bridgehead Collective and carried out by The Center for Generational Kinetics, led by President Jason Dorsey.
In this first-of-its-kind study, Bridgehead Collective chose to partner with the Center for Generational Kinetics, which has led more than 100 research studies in all major industries. Their seminal annual study, The State of Gen Z, formed the basis for the best-selling book, ZConomy and has been consistently featured in national and global media including The Wall Street Journal, New York Times, CNN and many more.
I set out to discover America’s perceptions of entrepreneurship, the gig economy and—more pointedly—direct selling. Statistical significance was of ultimate importance in this analysis, so the study represents a wide-sweeping sample that is reflective of America, with an equitable mix
of genders, demographics, employment status, education levels and location that allows for a 97 percent confidence level. This study aimed to explore the attitudes, motivations, limitations and beliefs about starting a business in America, as well as uncover perceptions of direct selling, recruiting strategies, onboarding methods, distributor retention and preferred payment structures.
ALL AMERICANS,
after getting paid, the single biggest motivator to stay with you is if they feel included in your community!
WE DESIGNED the study to provide actionable insights across 10 key categories:
n Perception of Industry and Channel
n Recruiting and Prospecting
n Motivations and Decision Criteria
n Onboarding and Getting Started
n Training
n Compensation and Value Proposition
n Recognition
n Incentive Trips and Events
n Retention
n Duplication and Role of Team Building
In this series, we are digging deeper into each of these categories, focusing this month on all things related to Retention.
As we shared consistently throughout this series, the news surrounding all Generations is that EACH generation is radically different in how they want to be prospected, talked to and approached about direct selling opportunities. We have highlighted that a “One Size Fits All” approach simply doesn’t work anymore, and this continues to be evident when we are digging into the topic of retention. An interesting set of facts uncovered by the study is that retention may be made up of even more elements than we may have previously thought. In particular, the research highlighted an increasingly strong correlation between recognition and retention.
Last month we focused on incentives and events and pulled out the types of incentives that really get people motivated today. But as we have shared in previous articles, Younger Millennials and Gen Z team members are highly motivated by “being seen” and they have their own ways of measuring what that means.
Retention, as you have heard me say many times, is the holy grail in this industry. Solid retention can cover a lot of ups and downs in the business and can save hundreds of thousands of dollars in promotional spend. While customer retention (and the ever-important lifetime value) is a huge piece of this, today we are focusing exclusively on distributor retention. What motivates each generation to stick with it? To keep engaged and active—even when it’s hard? Even when they are faced with rejection and criticism? Read on, my friends…
We started our study by probing around key inflection points for retention, the first one being getting over that first 3 months. We have long known that this is a critical milestone and if you don’t believe that…just look no further than the crazy number of “Fast Start” programs that cover the first three months in business.
So, building on that and hoping to inform improvements to Fast Start programs all over the nation, we started with the question, “What would absolutely convince you to stay at a direct selling business after the first three months?” Doesn’t get any more on the nose than that, does it? Here were their responses. Not surprisingly, topping the list for everyone was actually seeing some income. The bigger question is probably why only 55 percent said that was first! (insert the laughing emoji that
corresponds to your generation here). So, I think if we assume that EVERYONE wants and needs to get paid, we can learn a lot more from the subsequent responses. By the way, we will also be covering how much money is actually needed to stay.
WHAT
Getting paid and receiving money in my account
Seeing the product or service work in my own life
Feeling like I’m getting a good sense of what it takes to build the business
“Seeing the Product or Service Work in my Own Life” and “Feeling Like I Have a Good Plan in Place” are second and third motivators to stay with your business. I think we can all understand the need to feel the benefits of the products, especially in our increasingly authentic world of digital sharing and selling. But what I found super interesting is that this was one of the lowest ranked categories for Gen Z. Instead, what jumped to the top of the list for them was “Being Part of A Community of People who Support Me and Make Me Feel Included.”
Read that again. For all Americans, ages 18-24 after getting paid, the single biggest motivator to stay with you is if they feel included in your community! Number One.
Beyond interesting, that can be very instructive for us as we prioritize the ways we engage with our fields. Because—wait for it—only 19 percent of this group said they actively engage with Facebook and consider it a place to engage with like-minded people.
So, for all of us with Facebook groups as our primary means of communicating, engaging, etc., it is time to realize that’s not meeting the needs of our next generation of sellers. We have to engage with them elsewhere. In addition to content creation and brand engagement through Instagram and TikTok, please consider a stand-alone community building approach like Shout, Mighty Networks, Community or Tribe. Platforms like this can be very cost effective; easy to set up and maintain; and have significant features built in to increase engagement and sense of belonging.
Moving up the generational ladder to Younger Millennials (ages 25-34) the landscape of retention shifts again. Remember from our past articles in this series that confidence is the watchword for this generation. I recently spoke at the Direct Selling Leadership Conference in Austin and shared a story I think many of you can relate to. There’s a phrase that I believe has been attributed to every founder of every direct selling business in the ’80s and ’90s, so I’m not sure who said it first but the quote is, “All you need to do to be successful in this business is treat everyone as if they are wearing a sign around their neck that says ‘Please make me feel important.’”
The modern equivalent of that, at least for Younger Millennials, is to treat them as if they are wearing a sign that says, “Please help me feel confident.” Confidence. That’s it. This is the generation that doesn’t believe they have the skills or ability to be successful. They are craving things that make them feel confident. So, it shouldn’t be a surprise that the number one motivation for retention for this generation (after money, honey) at 72 percent is “Feeling Like I’m Getting a Good Sense of What It Takes to Build My Business.” Seventy two percent—that’s huge!
HOW MUCH MONEY MONTHLY WOULD MAKE YOU WANT TO STAY IN DIRECT SELLING?
[ BY GENERATION ]
So, how do we ensure that? Go back to some of the tips from the onboarding and getting started articles about having a clear 90-day success plan, certainly. But also…ask them! Really. They will tell you.
We are pretty good at communicating TO our new distributors and representatives. But are we good at communicating WITH them? When and how do we ever really check in with them? See how they’re doing? Ask them what they need? I know, I know, this is what we pay “uplines” for, but in today’s world we are missing out on a huge opportunity to learn and improve.
It is easier than you think to set up a quick poll or quick action text feedback for new people who have joined the business. And all you need to understand from this generation is how confident do they feel? Do they really have what they need to be successful? If not, what are they missing? I think you would be shocked at how little information and encouragement they actually receive from the company that is geared towards this type of messaging.
Here’s my challenge to everyone reading this article. As soon as you finish reading, go to gmail and set up a new email address. Then join your own company. Watch and see what you actually receive. What arrives in your inbox? What emails do you get and with what frequency? Could you be successful if that’s ALL you got? Do you feel Welcomed? Included? Celebrated? Do you even feel Acknowledged?
Then learn from that. As my eldest (a proud Gen Z) says, “Then do better.” Confidence is key.
Another big key to retention is and always has been tied to income. But—as we covered in our earlier article on compensation—the amount that makes it “worth it” to stay is very different for each generation.
$250 - $499 is the sweet spot for Younger Millennials and Gen Z while our older generations are looking for a bit more in order to stay. My advice on what to do about this? Focus everyone who wants to build on getting to the $500/month level as quickly as possible. Then build from there.
Tailor your marketing, getting started and onboarding program to that level. I know many of you target and want to get much higher, but it’s simply not realistic nor required in this world we are living in now. $500 is more than enough.
I encourage all of you to take a baseline reading for your organizations. Find out what percent of new people joining each month hit the $500 income level and—of those that do—by what month after joining? Then correlate that to your retention rates. And then money-ball in on this stat. How can you move this needle higher? What if your sales team was incentivized on just this stat? How would this change the daily activities? The success rate of new? Their retention? And then…as that develops…rank advancement, sponsoring, etc.? All retention roads lead somewhere great!
The last key area we studied with respect to retention was digging into what performance incentives would make them feel “most valued” as a distributor? For older folks, cash bonuses topped the list, coming in as the number one driver.
But again…not so much for the younger. Of course, they want to earn, but they want to be seen just as much. Recognition in front of peers and recognition at a national or international meeting are valued significantly more as performance incentives by younger generations compared to older generations. 73 percent vs. 60 percent to be precise. The “in front of peers” can be accomplished (and feels just as good) through these digital communities we have been talking about. Make sure you are really rewarding activity and engagement right along with performance. Trophy generation prevails, and a little encouragement goes a loooooong way with this crowd.
So that covers retention with three key takeaways to put into action to drive those numbers up. We often tell our fields that Customers “add” and Distributors “multiply” their business. I’m here to tell you that if that’s true…Improved Retention will provide “exponential” growth. Next month, we finish up our series with a deep dive into Leadership and Team Building. Is it really relevant anymore? Check back in to find out. DSN
WANT TO KNOW HOW ATTRACTIVE YOUR COMPANY IS TO EACH GENERATION? Scan here to schedule your Generational Attraction Assessment today, complimentary for DSN Gold and Platinum Supporters.
With 20+ years of cross-functional experience in direct selling, Heather Chastain brings a solid understanding of sales, marketing, technology, manufacturing, operations and C-Suite challenges as well as a strong collaborative and relational style of leadership to the table. Heather has held executive roles at Shaklee, Arbonne International, Celebrating Home and BeautiControl. Heather also serves as the Strategic Advisor at DSN and is the Founder & Chief Executive Officer of Bridgehead Collective.
SUCCESS REALLY LIES in what you figure out how to do once you cool off… That’s the magic of a startup!
BRETT DUNCAN / Strategic Choice Partners “
EVERY YEAR, entrepreneurs with dreams and vision set out to launch new direct selling companies, and some statistical outliers strategically beat back the headwinds.
IN THE UNITED STATES. They span the gamut from generationally successful big legacy names to mid-sized companies and then the tiniest of startups, who want to capitalize on momentum and seal their brands in direct selling history, too.
Legacy brands and mid-sized companies stand up to be counted rather easily within the industry, but it’s much harder to know exactly how many startups are on the proverbial horizon. Without much fanfare, founders sit around kitchen tables planning; tinker in labs with new product formulas; and spend countless travel days recruiting until finally they launch their entrepreneurial dreams and vision into the direct selling marketplace.
Regardless of their product categories, depth of bankroll or on-point messaging, direct selling startups—like all small businesses—face battering headwinds. But every year, some statistical outliers strategically beat back those headwinds to find their market fit, hit their margins and survive hypergrowth to begin the long-game of a mid-sized direct selling company.
Direct Selling News (DSN) comprised a list of the most successful of these fledgling companies— the ones to watch. We snapshot a few of their stories here. To qualify, each company must be five years old or younger and have verifiable monthly sales surpassing the $1 Million mark. This isn’t an exhaustive list, so if your company is not on it and should be, please reach out to editor@directsellingnews.com.
To be sure, a list like this is where every startup wants to find themselves one, two or five years from launch. But if it was easy, everyone could do it, right?
Sources of inspiration and opportunity for startups are seemingly endless in this marketplace, especially with the accelerating power of artificial intelligence in the mix. But the window for success, at least in the US market, is shortening every day because people are always looking for the next big thing.
“One of the greatest challenges for any direct sales company is, First ‘How do I get hot?.’ Second, when I become hot, ‘How long can I sustain it?.’ But inevitably, they’re going to cool off. Success really lies in what you figure out how to do once you cool off. Because you’ll either flash in the pan or you’ll actually leverage all that stuff you have very little control over and turn that into a business. That’s the magic to a start up!” Brett Duncan, partner with Strategic Choice Partners, a direct selling industry consulting firm, explained.
“One of the greatest perks you have as a startup is that you aren’t big. So, you have that moment to connect with your salesforce. Does it take time? Yes. Does it sometimes feel unproductive when you’re just having a one-on-one chat with someone early on? Yeah, it does. But planting that seed, a lot of times, bears so much fruit down the road,” Duncan said.
So, if field development and management is not in your DNA as a startup founder or executive, it’s essential to partner with someone who can step in and do that. “That’s of the utmost important,” Duncan added.
Is controlled growth possible in an industry as volatile as direct selling? That’s a matter of debate. Stories of hockey stick growth and momentum can be a magnet, but hypergrowth highs plumet leaving startups vulnerable if they’ve overcompensated. The companies that endure are the ones that have a really healthy balance in terms of expenses and investment vs. results.
And when a company starts doing well, leadership needs change. It doesn’t mean the company no longer needs what they had; it means they need a lot more. Direct selling companies often find themselves caught between the startup
1 / MANY COMPANIES HAVE LAUNCHED IN THE LAST FEW YEARS BUT SUCCESS HAS BEEN ELUSIVE DSN has identified 15 companies that are under five years old with over $1M in monthly sales. These superstars are in various categories.
2 / GETTING HOT IS EASY; STAYING HOT IS MUCH TRICKIER
Many companies start off strong but maintaining that momentum can prove to be a struggle as growing pains make scaling difficult.
3 / THE ROLE OF FOUNDER IS PIVOTAL
As young companies start to scale, the excitement can start to wane. It’s at that point that the company’s leadership needs to decide what their role will be going forward.
fun they had when every decision was filled with entrepreneurial inspiration and their need for strategic leadership as they scale.
When companies struggle, often a big part of that sits with founders who haven’t yet figured out how to think ahead in terms of leadership and hire to the challenges the company faces, while also balancing who they are. This may mean the founder’s role needs to change. Figuring this out, Duncan said, might be the biggest differentiator of all.
TECHNOLOGY IS ESSENTIAL for us to deliver value to our customers
—MICHAEL FALLQUIST / Founder & CEO MICHAEL FALLQUIST, Founderand
CEO,knows well the challenges and successes energy companies in direct selling face. There are many case studies of very successful ones including Viridian Energy, which he founded; and in January 2023, Fallquist once again stepped into the marketplace with Think+, the sales channel of retail electricity provider Think Energy. “Think+ is built to surpass all of their successes,” Fallquist said. Think+’s mission is to make clean energy simple, easy, and affordable for everyone. And in just over a year, they’ve established a strong base of over 6,500 Energy Advisors; reached their operations into every deregulated energy market in the US; expanded into every community solar market in the country; and began beta testing their proprietary Think Smart app in multiple states.
“Technology is essential for us to deliver value to our customers. Our proprietary Think Smart app empowers our customers to earn cash back by making better energy choices,” Fallquist shared.
Powered by a its technology platform, Proton, Think Smart is a smart meter integrated billing system and is proving to be a core differentiator for the company in the short- and long-term.
Think+ sets itself apart from the competition by focusing its product offerings on electricity and community solar and by leveraging tech. And in doing so, they empower customers to take control of one of the most significant of household expenses—energy.
Long-term fixed electricity rates with no early termination fees mean customers win when rates go up or down. Customers win again with community solar, which provides savings between five and 25 percent on energy costs for up to 20 years. And the Think Smart app earns customers cash back on electricity bills by empowering customers to make better daily energy choices and referring friends and family to the Free Energy Club.
“Customers can earn cash rebates for up to 100 percent of their Think Energy supply charges by referring other customers. What has made this program so successful is that we give cash rebates with as few as three customers,” Fallquist explained. As part of the program, three referrals unlock a 10 percent rebate, while 10 customers is 40 percent and 20 customers is 100 percent.
WE DO LIFE TOGETHER. We are building our lives together. No one wonders where we stand.
ASPE N EMRY / Founder & CEO
UPON THEIR LAUNCH IN LATE 2020, Bravenly Global focused on building trust belly-to-belly and heart-to-heart. They’re family owned and operated—with Founder and CEO Aspen Emry, her husband, five kids and now grandchildren pitching in and traversing the country, meeting with field leaders and training them in pursuit of their dreams through health and wellness.
Known within their field for transparency—a key factor that has earned them much trust as a startup—Bravenly consciously over communicates with their Brand Partners. “They know we face challenges head on and do not sweep things under the rug. They know that we make all things right, but that we won’t hide behind anything tough or changes that come our way,” Emry said. “We do life together. We are building our lives together. No one wonders where we stand.”
Bravenly’s low-key customer acquisition strategy relies on honest results echoed through social media, where they’ve cultivated relationships and established community. “We don’t make wild claims,” Emry said. “Our customers naturally upsell themselves.”
This year they plan to expand email marketing and provide more value-added content to their community through recipe guides and other healthy lifestyle tips that complement Bravenly product usage.
Bravenly reports consistent growth since inception three years ago and boasts a trusting partnership with manufacturers, too. “They understand our company and have been with us when we 10x our sales over the course of 100 days at one point,” Emry said.
“We have created models that help us predict hypergrowth inventory needs. And paired with our previous field experience, we have been able to go off our business intuition for some parts of growth. By strategically planning for all the what ifs and learning from our former, traditional business experience prior to founding Bravenly, we have been able to manage growth quite well,” Emry explained.
WE NEVER ENCOUNTERED a problem that didn’t have a solution, and facing challenges together only made us stronger as a team.
BOB REI NA / Founder & CEOTHE BEST WAY TO DESCRIBE QuiAri’s first years in business—founded October 2019, just months before the pandemic—is “controlled urgency.” Founder and CEO Bob Reina launched QuiAri all at once, in over 100 countries with breakthrough products derived from a newly discovered anti-aging superfruit, maqui.
WE’VE COMPRISED A LIST of some of today’s fastest growing startups in the industry. The companies listed here are all five years old or less and have surpassed the $1 Million mark in monthly sales, as verified by DSN. Keep watch on these companies because even bigger things could be coming soon.
Maqui set QuiAri apart from its product competition in the direct selling health and wellness space, but the fastest pay out compensation plan in the industry (every five minutes, globally) went to work immediately boosting promoter numbers.
“Despite opening near the beginning of the pandemic being a startup worked to our advantage. We could be nimble and adapt to challenges. We never encountered a problem that didn’t have a solution and facing challenges together only made us stronger as a team,” Reina recalled.
QuiAri established a “whatever-it-takes” culture, embodied by their equally innovative and effective IT Team, who invented global 5-Minute Pay and built all the company’s digital features based on real-time customer behaviors and localization of services.
But the company’s technological innovations also apply to product manufacturing. QuiAri replaced heat- and preservative-based ingredient processing with high-pressure processing (HPP) that preserves maximum nutrient content, taste and texture without sacrificing quality.
“We knew that once people tried our products, they would fall in love with the results and then share them with others,” Reina said.
QuiAri was recently named by DSN as one of just 23 companies with four consecutive years of growth, based in part on its product exclusivity and pay-out innovations. “Our sales did not level off after the height of the pandemic; they increased,” Reina said.
“We are just beginning to experience hypergrowth, and it is something we fully embrace. Since we have a rock-solid infrastructure and an executive team with a combined 500+ years of MLM experience, we are prepared for explosive growth and can scale up quite easily. If there happens to be an obstacle standing in our way, one of our experts already has an effective plan to remove it,” Reina concluded.
WE’VE ONLY JUST scratched the surface of what’s possible.
—H ANIEH SIGARI / Founder & CEOFOUNDER AND CEO HANIEH SIGARI envisions the democratization of medicine thanks to artificial intelligence, hyper personalization and telehealth. Her inspiration for Qyral struck in 2018, then COVID brought these theories into sharp relief as the company tested many hypotheses; found their market fit; and created an infrastructure that prioritized future growth and support. The goal? Add decades to people’s lives—and make them look and feel amazing in the process.
Qyral launched with a non-prescription grade, personalized skincare line, followed by teledermatology and prescription-grade products. Data told them to stay in the aesthetic vertical market and avoid quick expansion, but anecdotal input and Sigari’s intuition said different.
Soon, compounded GLP-1 medications aimed at weight management became part of Qyral’s mission to increase longevity. “We decided to trust our instincts and launched a waitlist that required a deposit to join. To our delight, the demand was incredible and affirmed we’d made the right decision,” she said.
Qyral offers what Sigari calls the ultimate in exclusive products, due to their hyperfocus on personalization. The company’s ambition reflects the endless possibilities that space offers: bioidentical hormone replacements therapies, peptides, nutritional supplements and more.
She believes the most successful companies know their own limitations, understand when to outsource and make customer service a top priority. For Qyral, that meant establishing partnerships with compounding pharmacies, spending two years building strategic operations capable of rapid growth, and then accelerating their telehealth model—all of which gave them the ability to scale to tens of thousands of orders per day without having to take on the capital-intensive risk of expansion.
“We’ve only just scratched the surface of what’s possible, and we won’t stop until we’ve transformed the way we all think about our health, wellness and longevity,” Sigari said. DSN
The most successful keep upright during even the toughest storms by strategically planning for them long before they are on the radar.
Brett Duncan, partner with Strategic Choice Partners, a direct selling industry consulting firm, sits down to the table with direct selling companies of all sizes to help them face challenges. Sometimes people call with just a spark of inspiration before initial business planning has even begun; others find themselves in the middle of a “holy crap” moment weeks before launch or wading through overlooked necessities years later.
Duncan’s group fields calls from businesses unfamiliar with the direct selling industry that decide they want to add a direct selling channel. This is a big hurdle to clear.
“If you haven’t led a sales force like this before, the biggest headwind is that you’re underestimating what it’s going to take in terms of both time and patience,” Duncan said. “All those dynamics, if you’re experiencing
them for the first time as an owner of a direct selling company—that’s a lot to learn. The solution is to go find someone who’s done it and bring them in. The other solution to that is: don’t do it.”
Developing and managing a direct sales field isn’t something that can be done halfway. Many companies that think they want to expand into direct selling simply aren’t committed enough to the channel. Often, they don’t really need or want to be a direct selling company. Instead, they should manufacture for a direct sales company.
In the rush to get a product to market, startups can miscalculate what it means to have a solid cost-to-retail price mark up. Regret lies in 4x or 5x. Think all of this will work out down the road? Not likely, when normal margins are 7x or 8x. “It’s really hard to fix that later,” Duncan said.
“We work with a lot of companies who realize (10 years down the road) they are paying a lot of money to a lot of people who aren’t doing anything anymore, and it’s hard to roll that back,” Duncan shared. But it can very easily be addressed by having some clear activity requirements from the beginning. As leaders develop and their business grows, expectations will be clear— then that headwind won’t come crashing in.
FROM BRETT DUNCAN / STRATEGIC CHOICE PARTNERSOnce upon a time when direct selling companies basically shipped product, mailed checks and let the field do the rest, it was possible to bootstrap a startup. That’s less plausible these days.
“It doesn’t mean you can’t, but a lot of companies go into it thinking they will just sell their way to success. Companies have to do so much more now, and that stuff costs money,” Duncan explained.
Eager to launch and get off the ground, some startups can adopt less than stellar habits when it comes to compliance, thinking they will fix it later. Sometimes it becomes a back-burner situation; more often it comes down to lack of enforcement of existing policies.
“God willing you make it to 10 or 20 years, if you haven’t been enforcing your policies, you will someday be sitting there saying, ‘We’ve got to enforce our policies!’” Duncan said.
That’s a tough, cultural ask of leaders, who are largely responsible for your company’s success. They can feel cut off at the knees if the news comes late in the game. But it’s not so tough at the beginning to safeguard a company’s future and adhere to compliance.
7 LESSONS LEARNED:
THE BLUEPRINT YOU NEED AFTER NEORA’S LANDMARK VICTORY
BY SARAH PAULK
DEBORAH K. HEISZ / Co- CEO, Neora “
WE MONITOR WHAT PEOPLE DO, and when we find them out of compliance, we don’t just send them a letter to take it down; we coach them on why it’s non-compliant and how to fix it.
much like taxes and insurance, but there is power in building a company culture that reinforces and emphasizes compliance. A healthy compliance strategy shields companies from legal and regulatory offenses; reduces the prevalence of damaging and false information online; and prevents rogue sellers.
More importantly, a company that prioritizes compliant behaviors in its corporate and field teams can’t help but steep itself in the integrity-focused behaviors that bolster consumer confidence.
“Compliance is not the enemy,” said Heather Chastain, Bridgehead Collective Founder and CEO. “When we embrace the idea of compliance, it not only protects us, it helps us build a stronger business. We need to flip the script and normalize it as a foundational business requirement. Compliance is not a separate entity to be navigated. It’s something we need to champion.”
The need for hearty and consistent compliance has never been more urgent. In analyzing Neora’s seven-year battle against the Federal Trade Commission (FTC), the company’s approach to compliance was given significant weight as one of the key factors in their victory. In fact, the judge’s ruling specifically cited what it called Neora’s “rigorous” and “robust” compliance program as a reason why the FTC’s requested injunction was not warranted.
While every legitimate direct selling company already has an active compliance department, it’s one that is often compartmentalized or buried within the legal division. To be truly effective, compliance must be a C-Suite issue that is viewed and implemented as a company-wide initiative. Achieving this culture shift starts with amassing and analyzing information and then taking a hard look at what it is saying about business structure, financial compensation, purchasing trends and customer satisfaction.
“Most direct selling companies have detailed business intelligence data, but many do not know what story the data is telling,” said Katrina Eash, Partner at the Winston and Strawn Law Firm. “For instance, does the data show that your company— like Neora—has very high end-user consumption by consumers that isn’t tied to a compensation plan? If so, you are well on your way to proving you are
1 / COMPLIANCE STARTS IN THE C-SUITE
Don’t relegate compliance to be just a legal issue. Executives must make it a priority and remain engaged and active in their company’s compliance efforts.
2 / PROTECT YOUR COMPANY WITH POLICIES AND PROCEDURES
Set clear guidelines and expectations; live them everyday; educate the field and monitor, monitor, monitor.
3 / EVERY COMPANY IS AT RISK
Whether intentional or accidental, you will have distributors who engage in noncompliant behavior. A robust monitoring system is key to mitigate your risk.
not a pyramid scheme. Likewise, most direct selling companies have compliance policies and teams to enforce those policies. But what companies often overlook is whether their compliance teams are operating effectively to monitor, identify and correct noncompliant behavior. The second step is just as vital as the first to reducing your company’s exposure.”
NO ONE WANTS TO HAVE THE FTC KNOCKING AT THEIR DOOR—it’s imperative that you be proactive. Consider building a relationship with legislators and take steps now to protect yourself later. Deborah K. Heisz, Neora’s Co-CEO shared these questions you should ask yourself today.
n DO I HAVE A ROBUST, documented, enforced compliance program?
n WOULD PEOPLE BUY MY PRODUCT if there was no compensation plan attached?
n DO I HAVE THE DATA to demonstrate real consumer demand?
n DOES MY COMPENSATION PLAN incentivize distributors selling product to end users?
n CAN I DEMONSTRATE that distributor purchases are for personal consumption?
n DOES MY COMPENSATION STRUCTURE rely on ongoing consumer purchases (not pack sales)?
n DO MY POLICIES AND PROCEDURES treat distributors like independent contractors—not agents or employees?
n DO I HAVE the data to fight?
NEORA’S ULTIMATE WIN against the FTC provided a never-before-seen roadmap for direct selling companies. Previously, all government guidance was cloaked in vague language with no clear rules for what regulators deemed compliant. And while Neora’s win does not extend protections to the entire industry, it does provide actionable precedents for leaders to emulate.
Following Neora’s legal encounter with the FTC, Direct Selling News analyzed the judge’s final ruling to discover the elements that were deemed important in a court of law. The result is a seven-part checklist that provides the keys to Neora’s decisive victory—these are the new non-negotiables for all direct selling companies seeking to operate with regulatory integrity.
1 / DRAFT CLEAR POLICIES & PROCEDURE S Distributors enter the sales field with varying degrees of knowledge about what they can and can’t say regarding product and income claims. Crafting a thorough policies and procedures document—Neora’s is a hefty 29 pages—helps set expectations for behavior both in person and online. When an infraction occurs, the established policies pave the way for resolving the issue quickly and ultimately expelling repeat offenders. For Neora, that looks like enlisting internal departments to assist distributors in developing compliant marketing resources and treating all Brand Partners equally regardless of rank.
“Our goal first is to educate, not punish,” said Deborah K. Heisz, Neora Co-Chief Executive Officer. “We monitor what people do, and when we find them out of compliance, we don’t just send them a letter to take it down; we coach them on why it’s non-compliant and how to fix it.”
Always keep records. Neora’s compliance director ended up being a witness at trial because of the company’s commitment to maintaining thorough data and reviewing it at quarterly meetings as a staple of its corporate culture. When the FTC began making claims against the company, they were ready with hard numbers on everything from customer sales to individual distributor compliance violations.
The structure of some companies make it difficult to compile this data, but strides must be made in the near future to correct that deficit.
Sales to customers that are not in any way connected to the compensation plan are crucial but not enough—companies need to be able to demonstrate this as well. Because Neora clearly delineates between its Brand Partners and customers, they had ready access to customer information when their legal battle required it and could prove that the purchases were delivered to customers’ residences. According to the ruling, Neora’s record also illustrated that a lion’s share of its sales came from existing customers—i.e., regulars who love the products—rather than through the continual enrollment of new customers. This established true market need.
“This data was critical to us in winning,” Heisz explained. “If you don’t have customer sales—and you won’t if you don’t incentivize your field to sell to customers—then you’re not going to pass the test.”
A forced purchase environment has no place in direct selling. Distributors must be allowed to earn commissions and rank up without making monthly purchases themselves. Distributors shouldn’t be required to build a team or recruit others to earn an income. Programs that reward distributors for customer sales are an essential component to a company’s overall growth.
Neora conducted a survey to determine the reasons why its consumers were buying its products, and the results were surprising. Many Brand Partners pointed to the product discounts; their love of the product; and even the community they found at Neora. Making money did not make the top of the list.
This was important during the court trial when the FTC’s expert witness claimed that all purchases made by Brand Partners had to be attributed to a desire to participate in a business opportunity. Because of Neora’s survey and its 2021 data showing that 30 percent of Brand Partners were former Preferred Customers, the judge rejected the FTC’s assumptions, saying: “We may walk away poorer than we started after a trip to the grocery store, but because we obtained valuable goods or services in return for our money, that exchange is not characterized as a loss.”
Products must be the foundation for every direct selling company moving forward, and those products need to be of high quality at a reasonable price point. The days of heavily cushioned profit margins are in the rearview mirror as Amazon and big box retailers make finding and comparing products easier and more cost-effective than ever before. It’s difficult to argue consumer demand when you are selling a product that could easily be purchased for 40 percent less elsewhere.
Products must demonstrate viable consumer demand regardless of whether they are attached to a business opportunity.
Operating in a way that eliminates hidden fees, fine print and “gotchas” must become business as usual for direct selling companies. Neora demonstrates this in several ways: a low sign-up fee; no renewal fees; and no monthly charges for access to their backoffice platform.
“Be fair and honest and don’t hit people with a hidden fee or some task they have to do to build a business,” Heisz shared. “We don’t ask Brand Partners to spend money out of their own pockets every month, and they can make money without recruiting a single person. We try to make sure our program is fair for everyone.”
IRREFUTABLE DATA and a “no-gotcha” business philosophy helped to solidify Neora’s case. Here are some of the KEY FACTORS that worked in their favor.
n Separate brand partner and customer enrollment paths
n Nearly 80% of sales to true customers
n 90% of sales are product sales for personal use
n 30% of Brand Partners were former Preferred Customers
n Only $20 to join— no monthly or renewal fees
n Money can be earned solely through selling— no recruitment required
n Direct ship to customers— no inventory required
n Qualify for commissions through sales to customers
n No need to “re-buy” or sell big packs (pack sales represented only 4% of total sales)
Once a company has established robust policies and procedures, ongoing monitoring of field representatives is essential. This can feel like a gigantic, overwhelming task given the many social platforms where noncompliant content can exist, but there are digital compliance programs that can make the process more feasible. In Neora’s case, FieldWatch, an internet-wide monitoring program that identifies potential violations and tracks repeat offenders, was a fundamental part of their victory.
And while a cursory search may lead company leaders to believe that compliance is a non-issue for them, Travis Wilson, Director of Business Development at FieldWatch, says that—in his experience—every company has violations.
“Companies without monitoring put themselves at risk,” Wilson said. “Whether it’s problematic content going out to the internet or a company culture of not policing itself, companies who aren’t working to identify and remove noncompliant content across platforms are creating an atmosphere that will almost certainly result in problems down the line.”
In its pursuit of Neora, the FTC conceded that the internet is a big place, and that it would be unreasonable for every offending post or mention of a company to be spotted and resolved. However, the commission laid out a clear expectation that companies are responsible for actively monitoring representatives who claim to be speaking on their behalf—from corporate statements to Instagram reels made by rookie distributors.
Monitoring is now a critical component of a healthy compliance program. Without it, companies are not only without defensive evidence in the case of litigation, they are unable to fully protect customers. The old school version of compliance—the one that tucked it away in the legal department as an afterthought—is inconsistent with an industry that was built to serve through effective products and attainable opportunity. It will be the companies who choose to take ownership of their compliance efforts, purchasing facts and customer protections who will now become the leaders of the future.
“Understanding the story your business intelligence data is telling and auditing your compliance function are two primary areas that direct selling companies should focus on in 2024 to build a higher integrity model that will help reduce regulatory and litigation exposure,” Eash said. “The Neora decision emphasized the importance of both in proving the legitimacy of a direct selling company.” DSN
The TOP 10 WAYS companies leave themselves open to litigation and how they can proactively protect themselves.
TO HELP LEADERS AND SALES TEAMS overcome false narratives and non-compliant habits, Heather Chastain, Founder and CEO of Bridgehead Collective, built a risk assessment test based on the precedents set in Neora’s historic win.
But while the ruling provides valuable benchmarks, it’s not a wholesale win for the channel. As she explained, “Companies should be grateful for the framework the ruling supplied, but this ruling requires that you understand your data and can stand up to the same scrutiny as Neora.”
Bridgehead Collective’s 20-part test helps leaders identify the areas that need the most improvement and—for the first time—presents a court-tested yardstick by which companies can learn how their own processes measure up.
1
2
3
4
FROM
TWO DATA-BACKED STUDIES REVEAL SURPRISING TRUTHS ABOUT THE INDUSTRY’S TRAJECTORY.
BY SARAH PAULK
TO BELIEVE that the massive growth observed in 2021 would linger for the industry in the long term. However, what many hoped would become “momentum” proved to be a short-lived spike that tapered off in 2022
To better understand the significance of this drastic revenue increase and the growth patterns that surround it, Direct Selling News (DSN) analyzed the financial trajectory of the top 100 direct selling companies in North America with at least $50 Million in annual revenue, and three international direct selling companies with at least $50 Million in North American revenue.
These data points, when observed with a wider lens, illustrated two revelations: Only 40 percent of the top 100 domestic companies reported growth between 2019 and 2023; and only 40 percent of those same companies experienced growth in the last year (2022-2023). More than half (60 percent) of the industry experienced decline in 2023, some below 2019 levels.
There continue to be a number of optimistic and bright exceptions within the direct selling industry, but the overall stagnation of the market landscape does not point to a return to pre-COVID levels as many industry leaders had hoped. Instead, these
ONLY 40% of the top 100 domestic companies reported growth between 2019 and 2023.
statistics project a ten percent industry decline from 2021 to 2023. In fact, over the last decade, the US direct selling industry has only grown four percent, from a $34.5 Billion industry in 2014 to current projections of $36.5 Billion in 2023.
There is no one silver bullet that can fortify every company, but DSN analyzed the strategies and market fluctuations that positively impacted the resilient companies residing within that positive 40 percent growth trend and considered what leaders can learn from these evolutions as they seek to capitalize on their own potential
DSN has found 22 direct selling companies who maintained year-over-year growth for four consecutive years. These standout companies— including the additional companies within the positive 40 percent growth trend—have been shining examples of how to retain growth amid some of the most tumultuous events in market history, including a global pandemic, a hiring crisis, supply chain upheaval, drastic inflation, international humanitarian emergencies and the ongoing culture challenges that a hybrid and remote work culture presents
Many of these resilient companies implemented new strategies to stay competitive, like integrating Artificial Intelligence (AI) into their customer service systems and existing digital infrastructures. But customer service is only the tip of the iceberg. Some of the resilient companies on our list are already leveraging machine learning to drive SEO results, streamline workflows and tap into powerful lead generators that speak to the consumer loyalty shift toward social commerce and influencer marketing.
1 / THE CHANGING FACE OF CUSTOMER SERVICE
At many of these companies AI has emerged as a key tool for automating customer service. This has greatly enhanced efficiencies.
2 / CHANGES AT THE TOP
Many of these outliers have had key leadership changes in the past 18 months that brought fresh perspectives and renewed energy.
3 / DIRECT-TO-CONSUMER
Amazon and other companies surged during the pandemic and direct selling companies delete have leveraged this to their advantage.
For some within this group, embracing affiliate, omnichannel or hybrid models has been the key to maintaining revenue momentum. Embedding affiliate models within a pre-existing direct selling framework has been an effective way to attract new talent without ostracizing loyal, long-term distributors. For others, combining multiple approaches, often mixing direct selling’s interpersonal sales with the impulse purchasing power of stocking in-store retail shelves, has provided what appears to be a competitive edge
ACTIVZ
Amare Global
BELLAME
Family First Life
FASTer way to Fat Loss
Green Compass
Hegemon Group
Hy Cite
inGroup
Jordan Essentials
LifeWave
pawTREE
People Helping People
PM-International
PPLSI/Legal Shield
Primerica
QuiAri
Red Aspen
Utility Warehouse
Vida Divina
World Financial Group
Zinzino
One interesting finding within the data was a pattern of change among the most senior leadership roles. Of the top 100 companies in the data set, one out of every four companies experienced a personnel switch in the role of CEO or president
These seniority changes occurred primarily in legacy companies, and although there were some leadership changes in younger companies, the data did highlight that the life cycle of a company likely had a constructive impact on healthy growth patterns. Startups and those in their earlier years of business naturally had more exponential growth, given that they are starting from the ground up, even though today’s startups are launching in an era with challenging market dynamics and a heightened regulatory climate.
OF THE TOP 100 companies in the data set, one out of every four companies experienced a personnel switch in the role of CEO or president.
Many legacy companies sought ways to infuse this startup mentality into their own processes and cultures by streamlining their organizations. These were not choices made from desperation to balance their budgets, but rather strategic and thoughtful moves to become leaner and nimbler as companies seek to grow in the coming months and years
Challenges will continue to percolate in 2024, including ongoing litigation from the Federal Trade Commission, unfavorable public perception and the recent passage of the US Department of Labor’s Employee or Independent Contractor Classifications Under the Fair Labor Standards Act, which is expected to create further limitations for millions of entrepreneurs classified as independent contractors, but industry leaders remain optimistic
Amazon and other mammoth direct-to-consumer market opportunities continue to offer alternate channels for companies and distributors to grow their footprint and brand awareness with customers; the upheaval from post-pandemic office culture is gradually finding level ground; and there are pockets within the direct selling industry that are seeing above average success.
Growth last year was elusive overall, but there are a number of opportunities for the channel to strengthen its positioning and strategies as it seeks to serve and improve the lives of distributors and customers around the world DSN
Joni Rogers-Kante credits her commitment to consistency, devotion to family, and abiding faith to achieving success as a business and family woman. Joni has paved a path toward a life of abundance, and she devotes her life to empower others to find theirs, too.
For Joni, her company SeneGence stands for more than its cutting-edge and highly desirable beauty products. Its causedriven purpose is to promote more women
in business and care for communities in need through its nonprofit. Not only has Joni built a rewarding global business, she is also changing lives closer to home. Joni passionately protects rights of independent entrepreneurs in the direct selling industry and works to improve the economic lifeblood in her home state of Oklahoma.
Joni believes accomplishment is unique for everyone, and we are all here with
our own important purpose. She says a fulfilling life is made with the four E’s: Earn, Evaluate, Evolve, and Explore. When we value and respect each other, we will all move forward together.
We are proud to partner with Joni and those like her who consistently prove that hard work and courage are rewarded with limitless possibilities. After all, people are our greatest strength.
EVERYTHING 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
When you do business in different markets, language barriers can be an uncomfortable reality. While apps like Google Translate have long helped address communication challenges, wearable tech devices have become the standard in supporting real‑time translations. Timekettle is the leading product in this category, with several classes of Bluetooth earbuds that offer two way speech translation in 40 languages and 93 accents. Powered by AI technology and connected to high‑speed servers across the world, Timekettle’s versatility and service are unparalleled.
Named “CEO of the Year” at the 2019 Business Excellence Forum, Eric Partaker has advised Fortune 50 CEOs at McKinsey & Company; helped build Skype’s multi billion dollar empire; and founded several businesses. Partaker now leverages his experience to coach other CEOs and leaders around the world. His website and social media platforms are brimming with motivational content—specifically his LinkedIn profile, which boasts detailed infographics and instructional hacks.
Save time with Compose AI—a free Chrome plug in that lets you use auto complete anywhere and vows to decrease your time spent typing. The plug in works seamlessly in the background to suggest autocompletions to your sentences as you type. As you write, Compose AI will analyze the context and your writing style to provide customized suggestions. From emails, documents, chat and social media updates, Compose AI runs in real time as you type— like your own virtual copy editor!
“The secret of change is to focus all of your energy, not on fighting the old, but on building the new. —SOCRATES
From being an intimidated college kid to becoming the first female GM of a Triple A baseball team in nearly 20 years, Emily Jaenson changed the trajectory of her life simply by building her self confidence. In her inspiring TEDx Talk, Jaenson relates her story with practical, actionable tips to help improve self confidence now. Jaenson illustrates her strategies using true stories gleaned from her career, in which she interviews other sports management executives through the lens of women leading in male dominated industries.
After seeing the ravages of war as a surgeon in Vietnam, Dr. Gordon Livingston returned home to the US and became a psychiatrist. Dr. Livingston was subjected to the school of unthinkably hard knocks, having lost two children within a 13 month period. Through his experience with grief, Dr. Livingston garnered extraordinary wisdom that he compiled in his book, Too Soon Old, Too Late Smart. In this collection of thoughtful essays covering 30 universal truths, you’ll gain guidance, insight, hope and encouragement for life’s unpredictable journey.
Using a data driven, science based approach, best selling author and sales guru Marc Wayshak teaches top selling strategies. From mindset to cold calling, managing nerves and closing deals, the Sales Insights Lab channel covers a range of topics that are essential for all salespeople, regardless of experience level. DSN
SINCE LAUNCHING in June 2021, the Direct Approach podcast has been providing direct selling executives an in-depth look at the biggest challenges facing the channel—and unique solutions for tackling them.
Wayne and the rest of the DSN family would like to thank our growing audience and the 60+ executives and guests for their candor and participation.
MEET THE HOST Wayne Moorehead has deep experience in marketing and brand strategy. He has applied his expertise and passion to help companies (from startups to Fortune 100) define, communicate and activate their brands. Wayne’s rare blend of experience and success has shaped his philosophy on effective growth strategies, and he believes the future of the channel will blend the best of direct selling with the best of direct-to-consumer.
Here’s a snapshot look at recent episodes!
[
EPISODE 71 ]
Inside a Legal Landmark with Jeff Olson and Deborah K. Heisz, CEO and Co-CEO of Neora
JEFF AND DEB share hard won lessons from their battle with the FTC and provide an overview of the genesis and outcome of the case, including key takeaways like the importance of having a compliant culture and a focus on acquiring real customers.
IN THIS EPISODE they will unlock the key to sustainable growth and profitability; explain the critical role of compliance and harness the power of leadership and community.
[ EPISODE 72 ]
Serving over Selling with Shawn Meaike, Founder & CEO of Family First Life
SHAWN MEAIKE is the trailblazing Founder and CEO of FFL. His extraordinary journey has catapulted his business from an $11M debut to an impressive 30,000 agents and $750M in annual revenue in 2023.
IN THIS EPISODE Shawn shares the ingenious strategies behind this meteoric rise and offers insights into the dynamic intersection of scaling, funding and technological innovation. This practical guidance is essential for leaders and entrepreneurs.
NEVER MISS AN EPISODE—2024 promises to be another year of insights, tips, takeaways and action items provided by some of the most notable names in the channel. If it’s impacting direct selling, Wayne and his guests will be talking about it on the Direct Approach. New episodes drop every other Thursday—make sure to subscribe!
The SHIFT podcast, hosted by Blake Mallen, sets a bold new standard for excellence in direct selling. It’s a community and platform from a trusted source where top performing distributors can share their stories to motivate and inspire micro-entrepreneurs across the globe.
The SHIFT not only helps your existing distributors grow as people, it can help you grow in numbers! We talk about what’s working today, empowering your field with the right tools and the right mindset to finally make The SHIFT!
The pod is off to a great start—and the momentum is growing! We’re giving you the power to shine a spotlight on today’s trailblazers and power players by using the QR code to nominate your top performing field leaders.
“A *MUST* podcast for any entrepreneur looking to level up in business”
“All the gas you need to set fire to your business!”
“Modern twists on traditional selling dynamics!”
“Golden nuggets of tips, strategy and encouragement!”
TOP 100 in US*
TOP 50 in Canada*
#2 in Italy*
10K+ unique downloads
14 high-impact guests and counting *in entrepreneurship podcasts.
PM-INTERNATIONAL CEO ROLF SORG DOESN’T BELIEVE IN LIMITATIONS —and he doesn’t think you should either. For the last 30 years, he’s led the company he founded with a resilience that be believes lives in all of us if you’re not willing to give up.
THIS BUSINESS MODEL was a perfect fit for my approach to things, which I still stand by today—namely: the more productive a person is, the more they should earn .
ROLF SORG / Founder & CEO
TODAY, THE COMPANY’S PORTFOLIO includes health and wellness products that address anti-aging and fitness.
ROLF SORG SHOULDN’T BE LEADING A MULTINATIONAL DIRECT SELLING COMPANY WITH REVENUE OF $3 BILLION DOLLARS. And he shouldn’t be on stage celebrating 30 years in business before an audience of thousands. He should be working in his hometown and running his family’s business. But that’s not his story. Instead of accepting the simplest path that lay ahead, he chose another—and he’s never looked back.
“I discovered direct sales when looking for a side income opportunity during my studies,” he explained. “This business model was a perfect fit for my approach to things, which I still stand by today— namely: the more productive a person is, the more they should earn.”
FOUNDED: 1993
HEADQUARTERS: Schengen, Luxembourg
TOP EXECUTIVE: Rolf Sorg / Founder & CEO
PRODUCTS: Health and Wellness
A self-proclaimed “shy guy,” his drive towards something more than the life prescribed for him propelled him past his fears. Within just a few years, he’d worked his way up to becoming the most successful distributor in the company, which presented a new inflection point, and then another.
“I made the decision to pursue direct sales full time,” he shared. “In 1993, when the company I worked with went out of business, I founded my own direct sales company, to give others the opportunities that were given to me.”
Originally a cosmetics business, PM-International quickly evolved into a health and wellness company with the launch of FitLine, initially a brand of weight management products. Today, the company’s portfolio includes health and wellness products that address anti-aging and fitness, which is shared
by a field of hundreds of thousands of distribution partners globally. These entrepreneurs arrive at the same decision point that Rolf did all those years ago, but he knows that every one of them is capable of the same success that he’s worked for as a distributor.
“Sharing my own mistakes makes it easier for people to understand and draws them closer,” Rolf shared. “If I presented myself as a hero, that’s not reality, and it’s not true. Others would get nothing out of that.”
FitLine, the product collection that launched PM-International into the health and wellness space nearly three decades ago, continues to be foundational for the company and is powered by its exclusive NTC® or Nutrient Transport Concept. It brings nutrients where they are needed, when they are needed—to the cellular level, from inside and out.
Across its portfolio, PM-International holds 70 patents for its technology and products, which are free of preservatives and only feature natural sweeteners and flavors.
“Our aim is to develop and market premium products,” Rolf shared. “We don’t compromise and only use the highest quality raw materials. In addition, all FitLine products are ‘Made in Germany’ and are produced according to the highest standards (GMP certification) for absolute quality, purity and safety. They offer maximum transparency for ambitious amateur and professional athletes alike through regular and independent testing by the Cologne List®.”
Rolf is grateful to offer the same life-changing opportunity he chose so many years ago to prospective distribution partners around the world—but this time with a company that has stood the test of time. As a global direct selling leader with 30 years of experience, consecutive growth and long-term vision, PM-International presents a low-risk, proven opportunity to aspiring entrepreneurs.
“We were founded in 1993 as a small family business and have stayed true to our values and principles through all our growth phases, and that also shapes our business today,” Rolf shared. “To us, it has always been important to create an environment of trust, respect and support. At the same time, PM-International also invests heavily in sales structures and training. We offer long-term
WE WERE FOUNDED in 1993 as a small family business and have stayed true to our values and principles .
ROLF SORG / Founder & CEO
for PM-International. Over the last thirty years, the company has launched into 45 countries with plans to expand its international reach. Its digital footprint is expanding as well, making working from anywhere easier for PM-International distribution partners.
development opportunities, fun at work and a supportive environment. The positive mindset of our distribution partners and the promotion of togetherness is certainly a unique thing and makes our ‘PM Family’ something very special.”
This family works and serves together in the corporate office, in the field and through PM-International’s charity foundation, PM We Care. With every product sold, the company’s philanthropic arm donates one hour of support— or “One Hour of Life” to children in need around the world. PM-International is the largest corporate sponsor of the children’s aid organization World Vision, with 6,000 sponsored children supported through its donations.
With three decades to celebrate and an exciting future on the horizon, Rolf and his leadership team have a strong vision for what’s to come
“We constantly learn and listen to our partners in order to create innovative digital solutions,” Rolf explained. “Whether that is our own streaming platform PM TV, our online payment solutions such as PM Direct Cash or innovations such as our FitLine app. In direct sales we never work only online or offline; the future is hybrid. We are also focusing on hybrid solutions in our strategy and development to be a pioneer in our industry.”
As he looks ahead to the next 30 years for PM-International, Rolf continues to believe in the power of direct selling, as well as the challenges that new leaders can overcome to achieve their goals—just as he did when he chose this unknown path.
“In direct sales, hard work is the base,” he explained. “Yet to stay at the top, we need a clear vision, a burning desire to keep going and passion. Remember, it’s not a bad thing to have a setback! Because every ‘no’ brings you closer to the next ‘yes!’” DSN
transparently made, clean-crafted wine to an otherwise opaque industry has evolved into so much more at Scout & Cellar. While sustainably produced wine with clearly labeled ingredients is still at the forefront of the Scout & Cellar menu, the company is bringing its Clean-Crafted Commitment™ to a range of new products designed to make life even more delicious for its growing customer base.
FOUNDED: 2017
HEADQUARTERS:
Farmers Branch, Texas
TOP EXECUTIVE:
Sarah Shadonix, Founder & CEO
PRODUCT CATEGORY:
Wine and Beverages
“WE HAVE MADE IT one of our goals to make wine really approachable and accessible to people that maybe don’t know a lot, but they want to know more.”
JENNIFER KNOTT / Chief Communications Officer
Rooted in Transparency
Just steps away from the Scout & Cellar Tasting Room, Founder and CEO Sarah Shadonix shared the 15-second bridge from the last chapter of her company’s story to the latest.
“We were a wine company doing what we were doing and doing it really well,” she explained. “And now we are a wine company that also delivers beverages and products for your kitchen, and we do it faster and better and with more deliciousness than ever before.”
Launching in 2017, Scout & Cellar disrupted both the wine and direct selling industries by producing a new kind of wine and giving entrepreneurs a new way to share it. Traditionally, wine makers don’t disclose their ingredients, which means that anything from grocery store bottles to high-dollar vintages can legally contain pesticides, chemical additives and added sugar. Scout & Cellar also looked to challenge conventional wisdom that held that wine was too complicated to sell online.
Sarah and her team challenged both notions by developing sustainably crafted, transparently labeled and independently tested wine, along with an effective way for direct sellers to share it.
From launch until early 2020, Scout & Cellar was on a strong and steady path, growing the field, releasing new and exciting wines, nurturing
relationships with vineyards and growers and dreaming about the possibilities for its CleanCrafted Commitment. The pandemic and the explosive demand for wine that it generated forced Sarah’s team into a season that was anything but steady.
“We were on a path to do something at a different pace and in a different way,” she shared. “COVID came and drove us in different directions in terms of our focus. There was just such a meaningful demand for our product that we had to invest all our energy and try to survive that growth and be there for people and for our grower partners, for our community, for our customers. It’s nice to get back to growing at the right pace and in the right way now.”
CURRENTLY, SCOUT & CELLAR is home to over 25 brands of wine and its own coffee brand, Scouting Grounds Roasting Company, with more brands of food and beverages to come.
These days, with the chaos of pandemic demand behind them, Sarah and her team are dreaming again. Scout & Cellar’s most important value proposition is its Clean-Crafted Commitment which has expanded from wine and now inspires coffee and non-alcoholic beverages with even more food and beverages to come. This proprietary standard is one of the most rigorous wine-growing standards in the industry but was designed by the company to extend beyond the vineyard. Its three key focuses are sustainable growth in healthy soil; no artificial processing aids or added sugars; and independent lab testing.
“We’re focused on delivering deliciousness,” Sarah shared. “We do that through our Clean-Crafted Commitment. We’re delivering a product that you already love, but that’s purer than you expect, because the food system that delivers it to you otherwise is broken. We’re moving into products that are part of our customer’s life already. We jumped into coffee first last year, and that’s gone great for us. Wine drinkers and coffee drinkers share a lot of similarities. You connect over a glass of wine; you connect over a cup of coffee. There’s interest in both beverages.”
Currently, Scout & Cellar is home to over 25 brands of wine and its own coffee brand, Scouting Grounds Roasting Company, with more brands of food and beverages to come.
In the coming months, Scout & Cellar will be offering olive oil and vinegar, produced with the same high standards, as new ways for consultants to connect with customers around products they already love. With over 11,000 consultants and counting, the company offers a different kind of direct sales opportunity.
“We don’t walk and talk like a traditional direct selling company, and that’s on purpose,” shared Sarah. “And we don’t walk and talk like a traditional direct-to-consumer company, nor do we walk and talk like a traditional affiliate marketing company. We play in all those spaces, so the opportunity that we create allows you to be whoever you are in this space and represent products that you love. Our opportunity is going to be different in a year than it is today because we’re always innovating and creating more ways to earn more; develop more community; and be a part of something that’s bigger than yourself. No other direct selling company has a big presence like we do in retail and is on Amazon and has a tasting room and has all these different channels. And in all those channels, we’re empowering our consultants to earn along in the journey.”
Scout & Cellar Chief Communications Officer Jennifer Knott believes that the company’s approach to wine attracts fun, energized consultants that bring fresh energy to the industry
“We have made it one of our goals to make wine really approachable and accessible to people that maybe don’t know a lot, but they want to know more,” she explained. “They want to lean in. They
WE DON’T WALK AND TALK like a traditional direct selling company, and that’s on purpose.
SARAH SHADONIX / Founder & CEO “
want to experience that, but it can be intimidating. The way we have approached our marketing and the way we speak about our wine, our tasting notes, make it accessible to people beyond the wine connoisseur, the wine collector. Our brand is fun and fresh, and we don’t take ourselves too seriously. Our consultants are very, very passionate about our product and how it brings people together. They have a lot of fun. There’s a lot of energy and entrepreneurship in our community. We have a lot of first-time direct sellers in our field, so they come at this industry and this business opportunity with really fresh perspective.”
The Scout & Cellar team meets this fresh field perspective with creativity of its own, offering new ways to delight both customers and consultants. In early 2024, the company announced its Scout Wild Ambassador Program, which allows consultants to share the Scout Wild brand of wines with their favorite restaurants and businesses, earning referral bonuses in the process.
“This is a whole ecosystem that is unique in the wine industry that we’re excited to empower our consultants to be a part of,” Sarah shared. “In the process, they’re talking about the Clean-Crafted Commitment. They may pick up a few customers, possibly a Wine Club member. It’s a way to involve our consultants to be a part of that channel.”
With the intensity of the last few years behind her, Sarah is most excited about what lies ahead for Scout & Cellar—a world of new possibilities for the company’s Clean-Crafted Commitment that make life more delicious. The latest possibility that’s come to life is a non-alcoholic wine released in January, but that’s only the start of what’s to come. In the coming months, Scout & Cellar will offer additional products from brands that are part of its
Clean-Crafted wine lifestyle in a marketplace called Clean-Crafted Selections, giving consultants a new opportunity to share fresh brand stories.
As these new products and brands expand Scout & Cellar’s brand visibility in big, new ways, Sarah and her team have rallied behind an equally big goal and are ready for what’s next.
“We’re on a mission to be a household named by 2030,” Sarah explained. “I say that to people all the time, and they’re kind of like, ‘why?’ Because when we do that, we will have changed so many people’s lives in such a positive way. Creating opportunity, whether it’s in a new employee or an employee that’s been there for six years, or a new consultant or a new customer—that is just the best part.” DSN
Why
IN AN INCREASINGLY DIGITAL WORLD, payment processes are changing. Traditional banks are no longer the only option to meet businesses’ financial needs. Global payout platforms have become a popular alternative, offering innovative, adaptive and efficient payment solutions that keep up with our fast‑paced times. This is especially true in the direct sales industry.
Direct sales companies have unique payment needs compared to other industries. They require speedy, simple international transactions on a large scale—and traditional banks don’t easily meet these needs. That’s why so many direct sales companies today have opted for more modern payment solutions.
Global payout platforms may soon become the norm for the direct sales industry. But what sets these platforms apart from traditional banks, and how do they offer a competitive edge? Let’s dive in.
INSTANT PAYOUTS have increased worker motivation by 15% and productivity by 20% in direct sales companies.
A McKinsey report projects that by 2025, global payouts could constitute up to 20 percent of direct sales companies’ total turnover, up from a mere five percent in 2010. This shift is largely attributed to the efficiency of global payout systems, which allows real time transactions worldwide.
Another driving factor behind this change is that instant global payouts offer massive benefits for direct sales. You might think those benefits are just operational (reduced burden on HR, faster onboarding, etc.), but a closer look reveals a far broader impact. According to a report by KPMG, instant payouts have increased worker motivation by 15 percent and productivity by 20 percent in direct sales companies.
Put simply, when people are paid on time, in their preferred method and currency, the quality of their work improves. That’s why modern payout methods make a difference.
A global payout platform, or mass payout platform, is a fintech operation that allows businesses to send payments in multiple methods and multiple currencies all over the world at one time. Global payouts are ideal for paying affiliates, contractors, vendors and other team members.
While you can send an international payment through a traditional bank, most banks don’t offer the speed, convenience and global access of payout platforms. Let’s break down some of those advantages in detail.
Sixty t wo percent of businesses anticipate needing real time transactions in the future. Traditional banks often take days to process international payments. Global payout platforms can leverage innovative technologies such as Global ACH and digital prepaid cards to streamline these processes, significantly reducing transfer times.
Traditional payment methods, such as international wire transfers, come with hefty fees and high exchange rates. A World Bank report revealed that the global average cost of remittances stands at 6.8 percent, with banks accounting for 10.84 percent of these transaction costs. Global payout platforms offer lower fees and competitive exchange rates. They also offer a wide range of transfer methods, so savvy businesses and distributors can cut costs wherever possible.
In the direct sales industry, global expansion is the name of the game. Modern payout platforms provide simplified access to bank networks all over the world, including areas with low banking density. This allows direct sales companies to seamlessly expand into emerging economies.
Global payout platforms are driven by innovative technology. Their services constantly evolve to fit the ever changing needs of businesses and consumers. A study by PwC found that 88 percent of consumers use at least one non b ank financial service, with 62 percent considering switching to a non b ank financial service provider if it offers enhanced convenience and cost effectiveness. As modern payment tech continues to adapt and shape demands, traditional banks have started to fall behind, while payment platforms remain on the cutting edge.
BY OFFERING a wide range of local payment options, modern payout platforms help to mitigate the risk of currency fluctuations.
The direct sales industry is going through a paradigm shift when it comes to payment options. Alongside global mass payouts, direct sales companies are increasingly choosing local payment options for their members. This reflects the understanding that catering to members’ diverse preferences and financial needs isn’t just a matter of courtesy, but a powerful driver of growth.
Here’s how local payment options, provided by custom payout platforms, offer several key advantages to direct sales companies.
Localized payment solutions, such as digital wallets, cash vouchers and transfers within local bank networks, support distributors all over the world by accommodating the payment methods they’re familiar with.
A study by Bain & Company found that companies offering localized payment options witnessed a 3 5 p ercent increase in conversion rates, suggesting that consumers prefer familiar means of payment. By making it convenient for members to conduct transactions, direct sales organizations can foster loyalty and boost distributor engagement.
With local payment options, direct sales organizations can widen their member base to include those without access to traditional banking services. Digital wallets, prepaid cards and other methods offer innovative solutions to tap into emerging markets.
According to the Global Findex Database, 1.7 Billion people worldwide remain unbanked, with many relying on alternative financial services. By accommodating these consumers, direct sales organizations stand to unlock vast new markets for expansion.
By offering a wide range of local payment options, modern payout platforms help to mitigate the risk of currency fluctuations. This adaptability helps companies ensure consistent, predictable payouts despite economic challenges.
With traditional banks, cross b order transactions can become logistical nightmares. Payout platforms that offer localized solutions facilitate smoother international transactions, simplifying global expansion in the direct sales industry.
Considering these benefits, it’s clear why many direct sales companies are choosing innovative payment platforms over traditional banks. Global payouts and local payment solutions make it easier for businesses to expand overseas. They offer faster, simpler, more efficient transfers with a wide range of flexible payment options.
The direct sales industry is in a period of transition when it comes to payments. As more companies embrace this change, there’s a good chance we’ll see a spike in the popularity of global payout platforms. DSN
The DSA ENGAGE Conference Series and Direct Selling Compliance Professional Certification Program (DSCP-CP) is redefining Executive Education for 2024: This is your exclusive ticket to forging profound connections with the channel’s pioneers.
June
Envision each conference as a dynamic platform igniting forward-thinking conversations on the future of direct selling.
Immerse yourself in these vibrant events, unfolding against inspiring backdrops that encourage dialogue and deepen a profound exploration of market-shaping issues.
Feel the energy, seize the moment—the stage is set for your unparalleled success. Let’s transform 2024 into a year of boundless possibilities and unprecedented triumphs!
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October 16–18, 2024
Fall
WHEN THE visionary leaders of the DSA moved from Winona, Minnesota, to Washington, D.C., they understood the need for a strong voice in front of the nation’s leaders. In February 2024, some 35 CEOs and other direct selling leaders affirmed our predecessors’ vision when they met at the White House to confer with Washington’s most important policymakers.
This senior DSA delegation was hosted at the White House for a DSA-organized briefing to speak to and hear from the most seniorlevel Biden Administration officials. The robust dialogue ranged from independent contractor status and regulatory overreach to overall economic conditions and trade with China. The senior officials representing the Biden Administration were:
• Michael Donilon, Senior Counselor to the President and Chief Strategist
• The Hon. Jared Bernstein, Chair of the Council of Economic Advisors
• The Hon. Stephen K. Benjamin, Assistant to the President, Senior Advisor to the President and Director of the White House Office of Public Engagement
• Brendan Kelly, Director for China Economics, National Security Council
• Rajesh D. Nayak, Assistant Secretary for Policy in the Office of the Assistant Secretary for Policy
The two-hour discussion was highlighted by CEOs’ and DSA management’s frank exchanges about direct sellers’ contributions
is the President of the U.S. Direct Selling Association and the Direct Selling Education Foundation.
to the country and how the Rule could harm our millions of salespeople. Mr. Bernstein— the Administration’s chief economic advisor— agreed to continue the discussion with the DSA.
Similarly, the CEO delegation members expressed concerns about independent regulatory agencies’ overreach. The extraordinary and valuable dialogue with the Biden Administration also included a discussion about the US-China trade relationship; related supply chain concerns; and the Biden Administration’s efforts to improve the economy.
The DSA CEO delegation also met with Congressional leaders to discuss direct selling issues. Regarding the Federal Trade Commission (FTC), Senators Marsha Blackburn, Markwayne Mullin and Mike Lee declared their intention to exercise oversight on the FTC to ensure the agency does not exceed its authority.
Members of Congress and staff representing both political parties demonstrated support for direct sellers, pledging to work with our community and the DSA to ensure clarity on independent contractor status.
It was a successful and important day as direct selling CEOs told the story of direct selling in Washington D.C. It was exactly what those who moved DSA to Washington in 1969 envisioned and what DSA is committed to doing every day. DSN
1329 South 800 East Orem, UT 84097 801-515-0977
squire.com
For nearly 50 years, Squire & Company has provided financial excellence and NetSuite expertise for clients in the Direct Selling industry. We offer personal service, responsiveness, and expertise in all areas.
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.
540 NE 4th Street Fort Lauderdale, FL 33301 discover@i-payout.com 866-218-4668
i-payout.com
Since 2007 i-payout has been the leading payment choice for pay out and pay in solutions. We pride ourselves on exceptional service paired with integrated and customized solutions.
900 Wilmeth Road McKinney, TX 75069 info@lacoretechnologies.com lacorepayments.com
LaCore Payment Technologies is a payment platform designed to support direct selling companies globally. Our services include: Global connectivity to 150 countries in 50 currencies, including direct connectivity to most alternative payment types, secure tokenization, customized fraud solutions, including our proprietary Fraudhawk™, advanced reporting tools, and online dispute management.
1160 N. Town Center Drive, Suite 100 Las Vegas, NV 89144
info@metricsglobal.com
702-757-9600
metricsglobal.com
We are the industry’s leading payments partner, long-established advocate, and problem-solver. Our unified commerce & payments platform will connect you to a global marketplace, enable your international expansion strategy, and fuel your exponential growth plans. Let us show you how.
2201 Long Prairie Road, Suite. 107-316 Flower Mound, TX 75022 407-891-9265
strategicchoicepartners.com
SCP offers the most holistic consulting services specific to direct selling companies today. We’ve worked with more than 70 companies over the last three years alone, and served more than 250 years collectively in the industry.
727 N 1550 E, 3rd Floor Orem, UT 84097 877-551-5504
nex.io
Nexio simplifies and accelerates payment processing in the Direct Sales Industry. Nexio offers swift deployment to distributors, streamlined payment operations and seamless integration with software solutions allowing you to navigate payment complexities with ease and confidence.
11905 Sara Road Laredo, TX 78045 956-712-8842
minergroup.net
Miner Group LLC offers solutions for the Mexican Market! For over 30 years, we have helped companies expand to or optimize their operations in Mexico. We offer product and ingredient evaluations, customs clearance, regulatory compliance, label translations, and logistic services for the Mexican market.
4505 Newpoint Place
Lawrenceville, GA 30043
sales@amwarelogistics.com
866-888-2999
amwarelogistics.com
Handle fulfillment for many direct sellers. DSA member with 15 fulfillment centers, nationwide, for 1–2 day ground delivery to 95% of U.S. population. Offer comprehensive B2C fulfillment services, including complex kitting, plus discounted parcel shipping based on our large volume of freight.
1615 Clark Blvd.
Brampton, ON Canada L6T 4W1 905-564-2115 x2
canadacartage.com
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.
6380 Silver Sage Dr. Park City, UT 84098 dianna@adimeetings.com
321-423-7229
adimeetings.com
ADI meetings is a women owned global corporate incentive travel, meetings, and event management company. We curate once-in-a-lifetime experiences for your attendees, connecting top achievers to your brand while understanding and meeting the needs of your industry.
900 Wilmeth Road
McKinney, TX 75069 214-817-4802
lacorelogistics.com
LaCore Logistics provides distribution and order fulfillment services. Our highly automated distribution center provides both domestic and international direct-to-consumer shipping solutions. We offer omni-channel fulfillment solutions ranging from marketplace fulfillment for leading marketplaces to businessto-business fulfillment for leading retailers.
5840 Red Bug Lake Road, Suite 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!
11551 E 45th Ave. Unit C. Denver, CO 80239 720-990-5642
quickbox.com
“Whether your products are headed direct to your end customers’ doorstep, to a big box retailer, or to an Amazon warehouse, QuickBox will help you deliver a seamless experience that keeps your customers coming back for more!”
8305 Via Vittoria Way Orlando, FL 32819
craig@directsalesexperts.com
407-489-3351
directsalesexperts.com
Direct Sales Experts is a highly confidential Global Executive Search Firm with over 50,000 top direct sales executives on file. Let us help you find A Players to grow your business.
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.
1701 Clint Moore Road Boca Raton, FL 33487 800-523-2682
mig.cc
Founded in 1979, Multi Image Group (MIG) is a women-owned, family-run creative event production company fueled by innovators, strategists, and technologists who craft custom live, hybrid & virtual experiences for some of the world’s biggest brands.
33 Franklin McKay Road Attleboro, MA 02703 800-445-1007
eadion.com
Dion’s jewelry solutions are perfect for career path, sales & recruiting, corporate anniversaries and incentive travel recognition awards.
1080 Caribbean Way Miami, FL 33132
Royal Caribbean International’s Corporate Sales Team
800-345-7225 (SELECT 2, THEN 1) royalcaribbeanincentives.com
Royal Caribbean® transforms events into the ultimate productivity paradise. Impress your attendees with epic venues, vibrant restaurants, onboard thrills and beautiful destinations.
4801 Spicewood Springs Road Suite 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.
5717 Legacy Drive, Suite 250 Plano, TX 75024
sales@now-tech.com
now-tech.com
With over 35 years of industry experience, NOW Technologies is the premier provider of mobile tech tools designed to grow revenue and recruiting for our Direct Selling clients. The NOW platform provides powerful features such as sampling, social selling solutions, smart alerts, prospecting tools, content management, and onboarding & training capabilities.
9503 Princess Palm Avenue Tampa, FL 33619
sales@bydesign.com
813-253-2235
bydesign.com
Award-winning social commerce software for affiliate, influencer, MLM, party plan, and social retail companies. Our turnkey back-office solutions include Wayroo, delivering advanced commerce, comment selling, and payment solutions.
1600 Viceroy Drive, Suite 125 Dallas, TX 75235
214-367-9933
exigo.com
The leader in commissions, back office and eCommerce software and services. The global leader in cloud-based Platform-as-aService (PaaS) for direct selling companies. An open framework for billion-dollar giants to startup companies. Exigo supports MLM, Party Plan and Affiliate models, operating in single global markets.
1208 E. Kennedy Blvd., Suite 222 Tampa, FL 33602
813-277-0625
flightcommerce.com
Global Operations Management Software. Advanced Comp Plan Programming. Sales Force Backoffice & Automation. Web Site Design & Replication.
1875 S. State Street, Suite 3000 Orem, UT 84097 801-431-4900
infotraxsys.com
Software & SaaS solutions for startup, emerging, and global direct selling companies. See our ad on the back cover.
55 Shuman Blvd., Suite 350 Naperville, IL 60563 866-698-3848
thatchertech.com
Thatcher Technology Group provides Sales Force, Compensation and Incentive Management Software for the Direct Selling Industry.
Drive Competition and Performance
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JUNE 4-6, 2024
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JUNE 4, 2024
10 AM - 4 PM / CEO Forum (invitation only)
5 PM - 8 PM / Evening Welcome Reception (open to all attendees)
JUNE 5, 2024
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5 PM - 7 PM / Evening Networking Reception (open to all attendees)
JUNE 6, 2024
9 AM - 12 PM / Half Day DSU
All times are local.
Be a part of the conversations as we discuss important topics of interest like:
n The impact of the Green Deal
n Independent contractor status and regulations
n AI: what it can do for your company plus can’t-miss legal and regulatory insights
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n Effective compensation plan strategies for today’s microentrepreneur
n And so much more!
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Speakers are subject to change.
To register and for more information, scan the code or visit DSNEvents.com
JOHN ADDISON Founder & CEO Addison Leadership Group STUART JOHNSON CEO, Direct Selling Partners, DSN, NOW Tech & Direct Selling Capital Advisors DANNY LEE CEO, 4Life & Chairman US DSA GARRETT MCGRATH President ANMP MEREDITH BERKICH President LifeWave KELLY LLOYD-SANDERSON Vice President & General Manager UK & Poland Arbonne HEATHER CHASTAIN Founder & CEO Bridgehead Collective CHRIS McDERMOTT CEO Cambridge Weight Plan ELÇIN BIRBEN Chief Sales and Marketing Officer AquaSource SUSANNAH SCHOFIELD Director General DSA UK AYO OLASEINDE President, Saladmaster & DSA UK Chairman ANDREW SMITH Sales Manager, Europe, South American, Australia and New Zealand Amway IMELDA VITAL Executive Director, AD Interim SELDIA
