VOLUME 16 / ISSUE 04
APRIL 2020
BEST PL ACES TO WORK IN DIREC T SELLING 2020
F E AT URE / AN UNDENIABLE APP-VANTAGE ARBONNE / A LEGACY EVOLVES AND CELEBRATES 40 YEARS ELEPRENEURS / YOUR DAILY DOSE OF HAPPY
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C O N T E N T S A P R I L
FE AT URES
An Undeniable App-Vantage B Y N OAH W ESTER LU N D Employees Deserve Red Carpet Treatment Too B Y B E TH D O U G L AS S S I LC O X Experiences to Remember BY H E ATH ER MARTI N
2 0 2 0
30 34 76
SPOTLIGHTS
Arbonne Celebrates 40 Years: How a Legacy Evolves B Y J EN N Y VE T TER Elepreneurs: Your Daily Dose of Happy B Y SAR AH PAU LK
42 64
34 ONE VOICE
72
84
Q&A with Jean-David Schwartz: Arbonne Flourishing and 40 Years Strong
W O R K I N G S M A R T/
Why Payout Frequency Matters B Y C RYSTAL H O LT ZEN D O R FF
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APRIL 2020
84
IN EVERY ISSUE 7 FROM THE EDITOR // 8-9 AD INDEX // 11 INDUSTRY NEWS // 26 FORWARD THINKING // 89 DSA MESSAGE // 90 VENDOR DIRECTORY //
3/23/20 12:03 PM
Serving the Direct Selling and Network Marketing Executive Since 2004 A SUCCESS Partners Company
FOUNDER AND CEO
Stuart P. Johnson PUBLISHER AND EDITOR IN CHIEF
Todd Eliason teliason@directsellingnews.com
50 COVER STORY
BES T PL ACES T O WORK IN DIREC T SELLING 2020
This year’s eleven finalists share their thoughts about the winning organizations.
MANAGING EDITOR
Patricia White C R E AT I V E D IR E C T O R
Julio Garcia SENIOR ART DIREC TOR
Susan Douglass ART DIREC TORS
Laura Castillo Jenny Paredes PRODUCTION MANAGER
Virginia Le COPY EDITOR
Peter Tepp BUSINESS DE VELOPMENT MANAGER
Melinda Bogoslavsky mbogoslavsky@directsellingnews.com CONTRIBUTORS
J.M. Emmert Megan Knoebel David Lee Heather Martin
Sarah Paulk Courtney Roush Beth Douglass Silcox Jenny Vetter
BY COURTNEY ROUSH
Direct Selling News (ISSN 15546470) is published monthly by SUCCESS Partners, 5800 Democracy Drive, Plano, TX 75024. Periodicals postage paid at Lake Dallas, TX and additional mailing offices. POSTMASTERS please send change of address to 200 Swisher Road, Lake Dallas, TX 75065. Subscription Rate: Free to direct selling and network marketing executives; all others in USA and Canada $50. Overseas subscriptions are $100. All subscriptions must be paid in U.S. dollars. ©2020 Direct Selling News All rights reserved. Material may not be reproduced in whole or in part in any form without written permission. No statement in this publication is to be construed as a recommendation to buy or sell securities or to provide investment advice. Direct Selling News 5800 Democracy Drive, Plano, Texas 75024 / Phone: 800-279-5249 www.directsellingnews.com
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FROM THE PUBLISHER Congratulations Best Places to Work Honorees!
D
IRECT SELLING has always been the original people business. Measuring field engagement is critical to any company’s success, but the field is only part of the people equation. Who makes up the backbone of this channel when it comes to engaging the sales field, fulfilling orders, planning events, manufacturing products and all of those other essential direct selling duties? It’s the corporate staff. In this month’s issue, we honor 11 companies as the Best Places to Work in Direct Selling. For this project, we once again partnered with Quantum Workplace, an HR technology company that has been collecting Best Places to Work data for more than a decade. Celebrating 5 Years of Best Places to Work DSN launched the Best Places to Work in Direct Selling program in 2016 to celebrate the important role direct selling companies play as employers in the marketplace and to identify the best of the best when it comes to creating engaging work environments. To learn more about the Best Places to Work honorees’ approach to workplace engagement, our Cover Story begins on Page 50. Company profiles also can be found in the special award supplement that came with this issue. We are also excited to bring you more great content in this issue: • Employees Deserve Red Carpet Treatment Too—Bridging the gap between HQ and the field—Pg. 34 • Elepreneurs Company Spotlight—Your Daily Dose of Happy—Pg. 64 • Q&A with Arbonne CEO Jean-David Schwartz—Arbonne celebrates their 40th year in business in 2020—Pg. 72 • Experiences to Remember—How to create direct selling experiences that boost engagement and make memories—Pg. 76 All of us here at Direct Selling News would like to take this moment to thank each of the 11 honorees of the Best Places to Work in Direct Selling for 2020. We celebrate the important role companies and their employees play in bringing out the very best in people. All the best,
TODD ELIASON | PUBLISHER AND EDITOR IN CHIEF | teliason@directsellingnews.com FOLLOW US ONLINE:
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There is POWER in Partnership > What part of your business would benefit by bringing in a supplier to help your team be more efficient?
“
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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
Our experience with Direct Selling News has been valuable and reliable. We aim to strengthen and positively impact the careers and lives of the people in the direct selling industry, and with DSN, we know we’re doing just that.
a list of our display advertisers. When contacting these companies or those in our Vendor Directory (starting on page 90), please let all of our valued advertisers know that you saw them in Direct Selling News. — GRETCHEN GROVE Head of Marketing, Hanna Shea Executive Search
Hanna Shea
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Exigo
214-3 67-9 9 3 3 / E XI G O . C O M
Inside Front Cover
PLT Health Solutions 84 4-75 8 - 4 3 25 / P LTH E ALTH . C O M PA G E 19
Socialsales.io 214- 6 5 9 -1 54 9 / S O C IALSALES . I O PA G E 61
Penny AI
7 78 -9 8 9 -54 0 5 / P EN NYAP P. C O M PA G E 1
Visible Strategic Choice Partners
8 01-973 - 0 9 8 9 / VI S I B LEC M . C O M PA G E 63
SUCCESS Partners
IDSTC
504-252-4500 / STRATEG I C CH O I CEPARTNERS . C O M PAG E 25
Direct Scale
8 01-701-3 2 8 5 / D I R EC T S CALE . C O M PA G ES 2-3
8 0 0 -75 2-2 0 3 0 / S U C C ES S PARTN ER S . C O M PA G ES 83, 87, 96
8 0 0 - 8 0 3 -7 14 4 / I D STC . C O M PA G E 71
VirBela
VI R B EL A . C O M PA G E 6
a2b Fulfillment 8 6 6 - 84 3 -3 8 27 / A2 B F. C O M PA G E 37
Squire
8 01-225 - 6 9 0 0 / S Q U I R E . C O M/N E T S U ITE PA G E 79
Progressive Laboratories 8 0 0 -5 27-9 51 2 X22 0 / P R O G R ES S IVEL AB S . C O M PA G E 10
Canada Cartage
8 0 0 -2 6 8 -222 8 / CANAD A CARTA G E . C O M PA G E 41
Metrics Global
8 8 8 - 8 91-54 4 5 / M E TR I C S G LO B AL . C O M
Directech Labs
31 0 -73 0 -1 24 6 / D I R EC TEC H L AB S . C O M PA G E 13
Inside Back Cover
Amware Fulfillment 678 -37 7- 8 5 8 5 / AM WAR ELO G I STI C S . C O M PA G E 49
Infotrax E A Dion
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IN THIS ISSUE
12
Natura Named One of Most Ethical Companies in the World
T HE MON T H IN NE W S A F F E C T IN G O UR C H A NNE L
Leading Off M A IN S T OR Y
“FULFILLING OUR V ISION…T OGE THER .” Q&A W ITH TR AV IS OGDEN
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In January you acquired Zija International. What made this a good decision for Isagenix and what does it allow you to do in 2020 and beyond?
DSA’s Ipsos Study in Entrepreneurial Opportunities
Over the last several years, we’ve considered acquiring multiple companies and taken a hard look at some, and not as hard of a look at others. Ultimately, when the Zija International opportunity came along we critically evaluated it and started our due diligence. The deeper we looked the more excited we became and decided to move forward with negotiations. There are several things that excited
Medifast Rings NSE Opening Bell
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us and certainly being able to onboard their field leaders was at the top of the list. As you know, in this channel, the most valuable asset in any network marketing company is the field leadership. As we took a look at their field leadership we were certainly impressed with the caliber of leaders they have. Next, looking at their product line, they’re primarily known for their plant-based products. Plant-based just happens to be a strategic initiative of ours right now. We just launched some new plant-based products a couple of months ago with more on the way. With the Zija
acquisition we were able to augment our line with some additional proven plantbased products. The other benefit is the geographic footprint Zija has. They are in a few markets that we are not currently in, and by combining forces we were able to accelerate Isagenix’s path to getting into some of those same markets long term. The compensation plan dynamic is probably why you don’t see a lot of mergers …
To read the full news feature, scan the QR Code, or visit http://bit.ly/DSNQR
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H E S A ID I T !
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Consumer Preferences and Retail Challenges for 2020
…we feel as a combined company we can execute at a higher level on fulfilling our vision of impacting global health, bringing people with both physical and financial pain together…
—TRAVIS OGDEN, CEO, Isagenix w w w . d i r e c t s e l l i n g n e w s . c o m 1 1
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I N D U S T R Y N E W S For full article visit
directsellingnews.com /category/news/
News in Brief
Herbalife’s Nutrition for Zero Hunger Initiative Adds New Global Partner
H
erbalife Nutrition, along with the Herbalife Nutrition Foundation (HNF), announced it has a new nonprofit partner, The Hunger Project, under its Nutrition for Zero Hunger (NFZH) initiative. “The Nutrition for Zero Hunger global initiative is our way to help eradicate hunger and give people the nutrition they need,” said Alan Hoffman, executive vice president, Global Corporate Affairs, Herbalife Nutrition. “We are proud to stand with The Hunger Project and support their global efforts.” Through this partnership, under the Nutrition for Zero Hunger initiative, Herbalife Nutrition and HNF will support The Hunger Project in its work to address the issue of global hunger, food insecurity and malnutrition. “It is deeply meaningful to work with partners who value addressing the root causes of hunger with sustainable, longterm solutions,” said Jenna Recuber, global vice president of The Hunger Project. “We are grateful that Herbalife Nutrition
is investing in people to be the authors and leaders of their own development process, so that they themselves may transform critical issues in their communities.”
Natura Named One of Most Ethical Companies in the World
N
atura has been recognized as one of the most ethical companies in the world in 2020 by the Ethisphere Institute, global leader in the definition of standards for ethical business practices. “Our vision of ethics goes beyond compliance with norms and legislation. It is a responsibility that permeates all levels of the company and our relations with different audiences,” said João Paulo Ferreira, CEO of Natura &Co Latin America. “After ten years of recognition, we reaffirm our commitment to best governance practices and integrity in our actions, agendas inherent to sustainable development.” The classification of the most ethical companies in the world is based on the Ethisphere Institute’s Ethics Quotient (EQ) structure, a quantitative methodology for measuring a company’s performance in an objective, standardized way. “I would like to congratulate everyone at Natura for achieving this recognition,” said Ethisphere Executive Director Timothy Erblich. “It is time to recognize that the organizations which adopt a long-term vision, with a purpose-driven strategy, not only exceed expectations, but also last longer.”
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Mary Kay Named Actress Monique Coleman As First-Ever Pink Changing Lives Honoree
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ary Kay Inc named Monique Coleman as the brand’s first-ever Pink Changing Lives Honoree. Mary Kay’s Pink Changing Lives program donates funds to organizations focused on supporting cancer research, helping end hunger, protecting survivors from domestic abuse, beautifying communities and many other programs empowering women and girls. In 2020, Mary Kay created the Pink Changing Lives Honoree program to celebrate influential women from around the world who change lives—and history— for the better. Long before Monique Coleman first graced the silver screen, she was a young girl with big dreams of changing the world. Coleman is an advocate for improving the social and economic
well-being of young people, most notably being appointed the first United Nations Youth Champion in 2010. “Young girls today, especially those who live in under-served communities, face unprecedented challenges, and at the same time, unparalleled opportunity,” said Coleman. “I feel the most important work I do is the work I do to help others, so I’m honored to be recognized by Mary Kay as their first-ever Pink Changing Lives Honoree. It’s my hope that organizations like Mary Kay continue to help girls around the world tap into their potential now and into the future.”
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I N D U S T R Y N E W S For full article visit
directsellingnews.com /category/news/
Forever Living to Sponsor Olympic Skeleton Racer Frimpong
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orever Living Products announced that Olympic Skeleton athlete Akwasi Frimpong will represent the company as a brand ambassador. Akwasi made history in 2018 when he became the first and only Skeleton athlete from Ghana to compete in the Winter Olympics. He will be competing in the 2022 Winter Olympic Games in Beijing, China. “We are thrilled to welcome Akwasi to the Forever family,” said Nick Woodward-Shaw, Forever Living’s executive vice president of Communications. “Not only does he embody so many values of our company and culture, but he also embodies that entrepreneurial spirit that will inspire our Forever Business Owners across many areas of their lives. Akwasi’s spirit and energy is contagious!” “I’m humbled and grateful to partner with Forever Living,” Akwasi says. “This partnership encourages me to continue working toward the 2022 Olympic Games and represent team Forever Living with pride and to continue positively inspiring the youth and all the underdogs who have big dreams.”
Medifast Rings NYSE Opening Bell
I
n celebration of its strong 2019, Medifast was honored to ring The Opening Bell® at the New York Stock Exchange (NYSE) on March 2, 2020. Medifast Chief Executive Officer Dan Chard was joined by Mike MacDonald, chairman of the Board, Dr. Wayne Scott Andersen, cofounder of OPTAVIA and Independent OPTAVIA Coach, members of the executive team and other independent OPTAVIA Coaches. “This past year marked a transformative year for Medifast,” said Chard. “We are pleased with our strong growth in revenue and active earning Coaches, which has enabled us to impact more lives than ever before. This success was powered by our OPTAVIA Coach Community, whose passion and dedication fuels clients’ success. We have more than 31,000 Coaches and are thrilled several members from that community will join us in this celebratory moment at the New York Stock Exchange.”
Youngevity Reshapes Board of Directors
T
he company stated that in order to maintain compliance with the corporate governance requirements of The Nasdaq Capital Market, and specifically Listing Rule 5605(b) which provides that a listed company’s board of directors shall be comprised of a majority of independent directors, Michelle Wallach and Richard Renton, two non-independent members of the Board of Directors of Youngevity International, Inc. (the “Company”), resigned as members of the Board of Directors of the company. Steve Wallach, CEO of Youngevity International will continue as a board member and will remain the chairman of the Board and Dave Briskie, president and CFO of Youngevity will also remain on the Board of Directors. “We very much appreciate the years of service of both Michelle Wallach and Richard Renton on the company’s Board of Directors,” said Briskie. “Michelle Wallach will remain an officer of the company and will continue to participate as a Board Member of the company’s Youngevity Be the Change Foundation and Richard Renton will continue to be a member of the company’s Sports Advisory Board as well as The Science Advisory Board.”
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DSA Commissioned Ipsos Study Shows Significant Interest in Entrepreneurial Opportunities
A
new Ipsos study conducted on behalf of the U.S. Direct Selling Association shows that a significant number of Americans are interested in pursuing entrepreneurial opportunities. The comprehensive study showed the highest interest coming from young people, and also confirmed the positive perceptions of direct selling as both an attractive entrepreneurial opportunity, as well as an ideally personalized and convenient way to “shop local.” “The Consumer Attitudes & Entrepreneurship Study revealed that 77 percent of Americans are interested in flexible, entrepreneurial opportunities, with the most interest coming from young people,” said Lisa Gudding, executive vice president at Ipsos. Among the 77 percent of Americans who expressed interest in pursuing an entrepreneurial opportunity, the greatest interest came from younger generations, with 91 percent of Gen Z’s and 88 percent of millennials interested in entrepreneurial opportunities. Interest in starting an entrepreneurial opportunity was relatively equal among men (79 percent) and women (76 percent). “Gig” work, such as a ride-sharing service, as well as becoming a direct seller, were both seen as favorable options for earning supplemental income, with 81 percent of respondents ranking gig work favorably and 79 percent ranking direct selling as an attractive option. Both entrepreneurial opportunities were seen positively for being flexible and enable the earning of supplemental income. According to the survey, perceptions toward direct selling have remained stable at about 80 percent over the last ten years, with the majority of consumers finding
value/appeal in the good feeling of supporting a small business (69 percent) and the personalized service (67 percent) that direct sellers provide. There is also a growing shift to purchasing online from direct sellers. The study showed that almost half (46 percent) of Americans would welcome contact from direct sellers regarding business opportunities on social media. “We were pleased to have Ipsos focus their market and opinion research expertise on the important areas of entrepreneurship and consumer perceptions, particularly as it relates to the direct selling channel,” said Joseph Mariano president and CEO, U.S. Direct Selling Association (DSA). “These insights help us better understand the increasing desire for entrepreneur opportunities in our rapidly evolving labor market and the unique benefits that direct selling provides to all involved.” DSN
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www.eadion.com Call 1-800-445-1007 for a distributor near you. w w w . d i r e c t s e l l i n g n e w s . c o m 15
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News Impacting Our Channel
Consumer Preferences and Retail Challenges For 2020
R
etailMeNot released the 2020 Retailer Playbook, a comprehensive guide into consumer preferences and retail marketers’ strategies for the new decade. Consumer confidence reached historic high levels in 2019, alongside rising expectations from shoppers. From shipping and rewards programs to politics and sustainability, here are the top expectations and retailer challenges for 2020: 1. Politics will impact retailer strategies, but consumers don’t care as much as retailers expect. 2. Consumers would rather get free shipping over expedited shipping, putting more pressure on retailers to offer competitive shipping deals. 3. Shoppers prefer the lowest shipping cost over an ecofriendly shipping option. 4. To avoid paying for shipping, most consumers would go instore to purchase an item. 5. Consumers expect retailers to provide expedited shipping options during the holiday season, resulting in less pressure to shop early 6. White-glove concierge service is a “nice to have” — for now. 7. Retailers are peeling back their investments in mobile and social advertising. 8. Credit card rewards are undercutting retail loyalty programs. 9. Few consumers have signed up for subscription services, despite early adoption by millennials. 10. Amazon Prime Day may be the new Black Friday, with consumers saying they found better deals in July than on the historic shopping day in November. TA K ING A S TA ND T O S TA ND OU T In response to the election year, more retailers are taking a stand on political or social issues. In fact, an overwhelming majority (90 percent) of retailers are overlooking the old taboo of remaining politically agnostic and will make some changes to how they market this year. This includes: • Being more willing (48 percent) to take a public stand on social values in 2020
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• Being more conscious (56 percent) of any political connections that can be made to what they post on social channels • Designing marketing materials (44 percent) to tie the election into what they are selling • Having a sale (43 percent) related to Election Day • Looking back at 2016 shopping trends (44 percent) to inform their strategies accordingly. Even so, only 40 percent of Americans say the election will impact the brands they shop. SHIP P ING WA RS While an election alone may not be enough to derail consumer spending, there’s another issue that might: shipping and the environment. Based on RetailMeNot research, just over half (51 percent) of Americans are willing to wait longer for ecofriendly shipping options from retailers like Amazon. But once cost becomes a factor, 70 percent prefer the lowest price over environmental impact. Regardless, 81 percent of Americans expect retailers to offer more expedited shipping options during the holidays in 2020. Exacerbating the situation, 44 percent of consumers admit they will shop later in the holiday season in 2020 because they know they can receive items faster. Procrastinators will pose a major challenge for many brands as 63 percent of retailers struggle to keep up with shipping deals offered by their competitors.
APRIL 2020
3/23/20 8:37 AM
Pivot from “Doing” to “Leading” is Critical Step for Women Entrepreneurs
W
omen entrepreneurs are a rising force in business, bringing new ideas and innovative products and services to every sector of the U.S. economy. Qurate Retail Group conducted a survey of more than 1,000 women small business owners on the factors that fuel entrepreneurial success. The survey concluded that choosing the right partnerships and people is the single most important factor in an entrepreneur’s growth as a leader, especially among companies with more than 10 employees. This finding reflects a broader pivot that women entrepreneurs make as their businesses grow: from executing against goals to building a team that can sustain long-term growth. When asked to select a quote that best captures their business experience, respondents from smaller companies focused on the idea of getting things done, while respondents from larger small businesses saw alignment with concepts of inclusivity and teamwork: • 37 percent of respondents with 1-10 employees selected this quote from Amelia Earhart: “The most difficult thing is the decision to act.” • 38 percent of respondents with 51-100 employees selected a quote from Helen Keller: “Alone we can do so little, together we can do so much.” The way entrepreneurs define a “leader” evolves as well. Among respondents with 1-10 employees, 30 percent believe they first became a leader when they made their first sale or signed their first customer. As a leader manages a larger workforce, the goalposts for what makes her feel like a boss change:
• 26 percent said they became a leader when they grew their team (11-50 employees) • 31 percent said they became a leader when they made their first deal (secured funding, established a partnership) (51- 100 employees) Women entrepreneurs also evolve their leadership style as their business passes growth milestones. At launch, the most popular leadership style is visionary (based on inspiration and trust). Once they gain experience, entrepreneurs also begin to adopt a coaching leadership style (characterized by partnership and collaboration). For respondents with 51-100 employees, the most popular leadership style flipped from visionary when they launched their business (38 percent) to coaching today (42 percent). Visionary leaders have a powerful ability to drive progress, while a coaching leader can elevate performance by quickly recognizing their team members’ strengths, weaknesses, and motivations and helping each individual improve. • Regardless of company size, 67 percent of women entrepreneurs feel it’s vital for customers to understand the origins of their brand and what their brand stands for. • For most women entrepreneurs (62 percent), corporate responsibility is a core element of their brand—i.e., being a company that acts in the best interests of all stakeholders and the environment. DSN
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I N D U S T R Y N E W S
Executive Announcements
DR. JIM LOGAN, Plexus Worldwide, Medical Advisory Board Plexus announced that NASA Chief of Flight Medicine and Chief of Medical Operations Dr. Jim Logan has joined its Medical Advisory Board. As a Medical Advisory Board member, Dr. Logan will help guide product development using his experience as a medical doctor and his passion for sharing preventative practices. “Plexus is thrilled to welcome Jim to our team because he is committed to helping people achieve a healthy lifestyle through the art of combining science-backed products with motivational strategies,” said Tarl Robinson, CEO and founder of Plexus. “His insight and passion in helping people live happier, healthier lives is already inspiring our team.” “I am excited to work with the team at Plexus to help people around the world work towards whole body wellness using a team approach that leverages the power of science to reach maximum health potential,” said Dr. Logan.
GIUSY BUONFANTINO, Amway, Chief Digital and Marketing Officer Amway announced Giusy Buonfantino as its new chief digital and marketing officer (CDMO), reporting to Chief Executive Officer Milind Pant. Buonfantino will be responsible for leading the company’s global digital and marketing organizations and designing and executing strategies to drive sustained growth across Amway’s portfolio of brands, such as Nutrilite and Artistry. She also will lead design and delivery for Amway’s online, mobile and social shopping experiences. “Giusy brings incredible experience to Amway as a marketer, digital strategist and leader,” said Pant. “Her modern approach 1 8 D I R E C T S E L L I N G N E W S |
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ERIK COOVER, Isagenix, Chief Visionary Officer Isagenix announced that Erik Coover has been appointed the new chief visionary officer. Coover was promoted earlier this year to chief visionary officer with the main focus of driving the company’s strategic vision to impact world health and free people from physical and financial pain, and in the process, create the most trusted and respected health and wellness company in the world. “Erik is a perfect fit for this position because of his visionary leadership,” said Travis Ogden, Isagenix’s chief executive officer. “He has worked his way up at Isagenix over the past decade, so he intimately understands the needs of our customers and our independent distributors. Alongside our incredible executive leadership team, Erik will help Isagenix stay steadfast in our approach as we focus on significant developments in technology and product innovation in 2020.”
to social commerce and unwavering growth mindset will drive our vision and enhance our focus on meeting customer needs with exclusive and innovative products.” “We have a strong ten-year vision for what Amway Business Owners need in order to start and build their businesses, offering on-trend products and the support of a community to their customers,” said Pant. “Giusy will help drive this vision toward reality by advancing our product innovation pipeline and creating incredible customer shopping experiences. We can’t wait to welcome her to the Amway team!”
APRIL 2020
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BEAUTY FROM WITHIN
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I N D U S T R Y N E W S
RYAN ANDERSON, Plexus Worldwide, Chief Sales Officer Plexus Worldwide announced that Ryan Anderson is joining its executive leadership team as chief sales officer. Anderson will lead business development efforts and sales growth within existing markets including the USA, Canada and Australia, as well as work in new international markets as the company expands its global presence into Mexico in 2020. “We look forward to Ryan’s new perspective on domestic and global growth as Plexus continues to grow,” said Tarl Robinson, CEO and founder of Plexus. “His passion for direct sales aligns with our One Plexus spirit and legacy mind-set.” “Health is so important to me and I enjoy the challenges of growing a sales team across international markets, which made this position with Plexus the perfect fit for me,” said Anderson.
TIMOTHY G. ROBINSON, Medifast, CFO to Step Down Medifast, Inc. announced that Timothy G. Robinson, chief financial officer, stepped down from his position at the company. Medifast Chief Executive Officer Dan Chard and the Board of Directors have retained a leading international executive search firm to help the company identify and appoint a long-term successor to Robinson. Joseph Kelleman has been appointed interim chief financial officer to lead the finance function until a permanent appointment is made. “Tim has been an important member of the team in his seven years at Medifast, and we wish him all the best in his future endeavors,” said Dan Chard. “We are at an exciting point in our company’s journey, having driven rapid growth and executing the development of an infrastructure to support significant incremental growth over the coming years. We are well positioned to build on our success in the United States and in Asia, as we move forward in our mission to offer the world lifelong transformation one healthy habit at a time.” 2 0 D I R E C T S E L L I N G N E W S |
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JOHN AGWUNOBI, Herbalife, Chairman of Board and CEO Herbalife Nutrition announced that John Agwunobi, became CEO and also assumed the role of Chairman of the Board. Michael Johnson will retire as Chairman and CEO after 17 years at the company. James Nelson, Lead Independent Director of the Board, said, “Michael Johnson has been a tremendous leader of Herbalife Nutrition, setting the course and overseeing a period of extraordinary growth marked by global expansion, significant product innovation and deep connections to distributors and customers around the world. On behalf of the entire Board, I thank Michael for being the architect of the Company’s success to date and for laying a strong foundation for continued growth under John Agwunobi’s leadership. We have complete confidence that John will continue where Michael leaves off as Chairman and CEO and are eager for him to bring his vision and unique skills to leading the Company.” Agwunobi added, “Michael’s tenure with Herbalife Nutrition has been nothing short of extraordinary, leading overall net sales growth from $1.2 billion in 2003 to $4.9 billion in 2019. We are all grateful for his dedication to the Company, our people and our mission, and we know that he will always be part of the Herbalife Nutrition family. Looking to the future, I am energized by knowing that each day we are meeting a growing need for millions of people around the globe who want to improve their nutrition and wellness. We plan on expanding our reach by working with our distributors and providing them with further opportunities to grow their business and serve even more customers.” DSN
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In Memoriam Kristine Hughes
Nature’s Sunshine Co-Founder, Passed Away
K
ristine F. Hughes, co-founder and board member of Nature’s Sunshine Products, passed away peacefully on February 23, 2020 at the age of 81, the company announced. “Loved by her immediate family and her vast Nature’s Sunshine family, Kristine will be dearly missed, and her legacy will continue to be felt across our business,” said Nature’s Sunshine Chief Executive Officer Terrence Moorehead. “She deeply loved this company, and her personal interactions with distributors and employees forged relationships around the globe.” Kristine’s passion for quality, integrity and service propelled the company from a small, family-owned business
to a multi-million-dollar global enterprise helping to share the healing power of nature with the world. She remained active with the company throughout her life, serving as an officer in the company since 1980. Kristine served as chief executive officer from 1996 to 1997 and in various capacities as a member of the board of directors for 35 years, including chairperson of the Board from 1984 to 2012 and vice chairperson of the Board from 2013 to 2019. In 1998, she was recognized by Ernst & Young as Entrepreneur of the Year. DSN
We’ll find it.
hannashea.com ¦ 844.344.7177 ¦ dsn@hannashea.com
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I N D U S T R Y N E W S
Financial Analysis Direct Selling Index Continues to Lag the Market; Top Line Deceleration Continues BY DOUGLAS LANE
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The wide outbreak of a contagion like Covid-19, where the primary preventative step is to limit social interaction, works counter to a business model like direct selling, which is almost by definition is dependent on social interaction to drive growth.
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ur Direct Selling index recovered a bit in the 2019 Q4 and ended up being down (23 percent) in 2019, which sharply trailed the strong +29 percent gains in the S&P 500 for the year. We note that we have removed Avon (AVP) and Tupperware (TUP) from our index retroactive to December 2018, given recent company-specific issues at each company, which in our view were disproportionally skewing the index. Avon stock’s outsized appreciation in 2019 was primarily driven by its anticipated sale to Natura, which was ultimately announced in late May and closed in early January 2020. Meanwhile, sharp
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declines in sales and earnings for TUP over the past 2-3 years have taken its equity market capitalization from a recent peak of approaching $4 billion in the first half of 2017 down to $130 million in February. As of early March, Tupperware’s CEO search continues. That leaves Herbalife (HLF), Medifast (MED), Nu Skin Enterprises (NUS) and USANA Health Sciences (USNA) as the remaining direct sellers with over $1 billion in equity market capitalization, which we have set as the minimum to qualify to be in the index. Three of the companies, HLF, NUS & USNA, are heavily invested in China, which undertook a
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regulatory review of direct selling nutrition companies in early 2019, which dampened sales force activity, the reverberations of which are still being felt today. Meanwhile MED, which is still entirely U.S. based, although it has opened in Hong Kong and Singapore in its first moves to expand into Asia, saw the recent rapid growth rates of its Optavia business from 2017 into early 2019 sharply decelerate in the second half of 2019, trends which are expected to carry into 2020. Therefore, not surprisingly, the earnings outlook for our index began to decline over the summer of 2019, with our index ending up in December of 2019 discounting forward 12-months earnings per share (EPS) that were (6 percent) lower than in December 2018. Meanwhile, the market, as is
usually the case, began anticipating the reduced earnings outlook earlier in the year. Starting in February, when the news of the Chinese government regulatory action became widely known, the prospective price/earnings (P/E) ratio for our index began to contract. So, after coming into 2019 with a P/E ratio of 19x, our index exited 2019 with a P/E ratio closer to 15x. You put a lower multiple on lower earnings, and that is a recipe for underperformance. On the other hand, the stock market, as measured by the S&P 500 index, gained +29 percent in 2019. Interestingly, the earnings outlook for the S&P 500 was little changed over the year, ending the year just +2 percent higher than it started. However, the P/E ratio for the S&P 500 expanded from 14x at w w w . d i r e c t s e l l i n g n e w s . c o m 2 3
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EXHIBIT 1: YEAR-OVER-YEAR ORGANIC SALES GROWTH LAST 9 QUARTERS
120% 100% 80% 60% 40% 20% 0% -20%
HLF
MED 4Q 2017
1Q 2018
NUS 2Q 2018
3Q 2018
TUP 4Q 2018
1Q 2019
USNA 2Q 2019
3Q 2019
GROUP AVG 4Q 2019
Source: Company reports, Lane Research estimates. Group Average is equal weighted. MED data is for Optavia only. TUP 2019 4Q is at the mid-point of the range pre-announced on Feb. 24.
the beginning of the year to 18x at the end as investors chased risk assets in this falling interest rate environment. The yield on the 10-year Treasury note went from 2.7 percent at the beginning of the year to 1.9 percent by the end. The Chinese government’s regulatory review, coupled with the accompanying adverse media environment, had a significant impact on HLF, NUS & USNA in 2019, companies which we believe combined account for a low-double digit percentage market share of that country’s $35.7 billion direct selling market. The three companies’ combined sales declined (22 percent) in 2019, taking over ½ billion dollars in net sales out of that market, which likely translates into over ¾ billion dollars in retail sales. Given how important the wellness category is to direct selling in China, the only question now is how much of a double-digit decline did the overall China direct selling market suffer in 2019. For all three companies combined, China went from being 28 percent of total net sales in 2018 to 23 percent of total net sales in 2019, with HLF specifically going to 15 percent from 20 percent, NUS to 30 percent from 33 percent and USNA to 44 percent from 49 percent. 2 4 D I R E C T S E L L I N G N E W S |
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C O V ID-19 OU T BRE A K , SH A RP S A L E S D E C E L E R AT I O N AT O P TAV I A P O R T E N D MORE PRESSURES ON OUR INDEX Our research report recapping last year’s stock performance, which we released in early January, was titled, “Direct Sellers Happy to Put 2019 Behind Them,” with the thought that business was beginning to improve for our more global names. Although organic sales in the Q4 continued to decelerate for the 5th straight quarter and actually turned negative on average for the five companies we track (please see Exhibit 1 above), there was some sequential improvement at HLF & USNA for the second straight quarter. Our Direct Selling stock index increased +11percent in the quarter, better than the +8.5 percent gain in the S&P 500. Currencies have stabilized, and we are actually looking to be quite benign in 2020. But no. By mid-January, word of the Covid-19 coronavirus outbreak began to spread, and the more global direct selling stocks were almost immediately hit. In addition, the deceleration in momentum at MED that we began to see in the 2019 2H decelerated further when it gave its initial 2020 forecast in February. After doubling its business year over year
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in the 2018 2H, growth rates at Optavia saw approximately +70 percent growth in the 2019 1H go to +40 percent growth in the Q3 then +20 percent growth in the Q4, with its initial outlook for 2020 slowing further to the low- to mid-single digits. This drove MED stock down (24 percent) this year through February after declining (12 percent) during 2019 as the market digested the slowing trends there. Our Direct Selling index overall declined (18 percent) in January and another (12 percent) in February to be down another (28 percent) so far in 2020, on top of the declines last year, driven by the fallout from the Covid-19 outbreak and the sharper than expected deceleration in growth at MED. Our Direct Selling index is now down (51 percent) from its most recent 2018 Q3 peak. Prospective earnings for the index are already (9 percent) lower than they were at the end of 2019, and estimates still most likely need to be adjusted further downward to account for the rapid spread of the coronavirus outside of China to Southeast Asia and Europe. The wide outbreak of a contagion like Covid-19, where the primary preventative step is to limit social interaction, works counter to a business model like direct selling, which is almost by definition is dependent on social interaction to drive growth. We would guess that those companies who are: a) less global, b) depend more on social media to drive sales growth and c) benefit from high subscription rates to mitigate turnover will be best positioned to ride out the storm. DSN
If it's Events & Incentive Travel, Karen gets it!
Karen Peterson has spent more than 30 years helping direct sales companies create amazing experiences for their Distributors. If you need help with ... • Additional onsite event planning & management
DOUGLAS M. LANE, CFA, IS A SECURITIES ANALYST WITH MORE THAN 20 YEARS OF EXPERIENCE COVERING COMPANIES THAT EMPLOY A DIRECT TO CONSUMER BUSINESS MODEL. HE LEADS A BOUTIQUE EQUITY RESEARCH FIRM, LANE RESEARCH, FOCUSING ON THOSE COMPANIES. PLEASE VISIT WWW.LANERES.COM. HE CAN BE REACHED AT DOUG@LANERES.COM AND FOLLOWED ON TWITTER AT @RESEARCH_LANE.
Disclosures: Financial Interests Neither I, Douglas M. Lane, nor a member of my household, owns any security (ies) which is/are the subject of this research report. Neither I, nor a member of my household is an officer, director, or advisory board member of the issuer(s) or has another significant affiliation with the issuer(s) that is/are the subject of this research report. I do not know or have reason to know at the time of this publication of any other material conflict of interest.
• Developing your travel incentive program • Negotiating contracts & developing RFPs • Adding some extra "oomph" to your in-house events team ... then you need Karen!
If it's direct selling, she gets it! Find out more at w w w . d i r e c t s e l l i n g n e w s . c o m 2 5 StrategicChoicePartners.com/KarenGetsIt
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F O R W A R D T H I N K I N G
COMMUNICATION
Is Your Online Marketing Pushing or Pulling? 6 Corporate Blogs Attracting Attention by Offering Value
A
TTRACTION MARKETING is a popular term these days, but the concept simply involves creating educational or entertaining content that helps generate attention to your business without being ‘salesy.’ Instead of a traditional approach that tries to push your message to an audience, attraction marketing pulls your audience to you. Online marketing guru Jeff Bullas explains it this way. “The idea is not to bang on about your merchandise or your company but to grab people’s attention on an unconscious level so that they don’t really know they’ve been converted until they take action. Basically, you are giving before you take, and putting things into the marketplace to attract people to you.” Telling compelling stories, sharing tips, answering questions and solving your target market’s specific problems are just a few examples. Corporate blogs and podcasts are effective platforms for attraction
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marketing content. Here are direct selling company blogs and how they create content to attract their specific target audience and develop their brand. BEL L A ME Blog: The BELLAME Blog BELLAME produces makeup, skincare and personal care products. A lot of content on The BELLAME Blog is tied into the BELLAME on Demand podcast. The company repurposes interviews for Motivational Monday topics, which can be turned into podcast episodes or videos for the company’s Facebook page. Even founder and CEO Melissa Thompson has penned blog posts with motivational messages. US A N A Blog: whatsupusana.com USANA posts fresh blog content roughly once per week. The main categories include Fitness, Food, Wellness and Skin Care. Healthy meal planning, stress-relieving
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Corporate blogs and podcasts are effective platforms for attraction marketing content. activities for kids, the power of gratitude and helping set fitness goals are just a few content examples. A men’s skincare gift guide features specific products but in the context of teaching men how to identify their skin type, and how to properly moisturize, tone and replenish their skin. Another post offers three key skincare tips for teens while communicating the value and benefits of some USANA products. Fitness posts, such as “7 Tips to Trick Yourself into Working Out,” help create an overall wellness culture while helping people solve a specific problem. NU SK IN Blog: The Source “The Source” is organized into five main categories: Success Drivers, Culture, Health and Fitness, Skin Care and Creating Smiles. It features social selling tips for distributors, tells customer and business success stories, and content on corporate social responsibility. Health and wellness tips often cover specific topics such as a post titled “3 Things Your Child May Be Missing From Their Diet.” These posts tie into different product categories without trying to push the actual products. Content for distributors, such as “5 Trends That Will Define the Future of Social Media,” show how Nu Skin supports the field with educational marketing and networking strategies in the Success Drivers category. The Skin Care category does feature posts on specific products, but with an educational slant helping people figure out which is best for
them. “Changing Your Skin Care Routine with the Seasons” offers tips on how to take care of your skin in different types of weather. P RÜ V I T Blog: pruvitnow.com/blog Prüvit produces ketone supplements and products supporting a ketogenic diet and lifestyle. The company’s blog doesn’t feature a specific name but lives on the corporate website. Categories include Education, Keto Lifestyle, Kids and Recipes. Illustrating one of the company’s brand messages to constantly pursue something better, a “Self Imprüvment Month” campaign featured a series of posts offering various tips on improving yourself physically, socially, professionally and emotionally. The blog features countless recipes in line with the keto diet, many of which include Prüvit products in the ingredients. They give ideas and alternatives with sugar or carb-heavy favorites. The recipes also provide distributors with content they can share to their customers and network. The Kids category focuses on kid-friendly foods and activities, giving parents ideas for healthy snack alternatives JUICE+ Blog: juiceplus.com/us/en/jpcommunity The Juice+ news and blog section (found under the Community tab) features more than 2,000 posts on everything from healthy recipes to reducing inflammation to promoting family meals to school lunch ideas. Categories include Recipes, Nourish, Relax & Mental, Prove, Move and Connect. Some posts even link to outside sources for other helpful information. Many are written by dedicated content writers covering topics they are experienced in. BE A CHB OD Y Blog: beachbodyondemand.com/blog Beachbody divides its blog content into four main categories: Wellness, Nutrition, Fitness and Recipes. Nutrition posts and topics, such as “How Much Sugar Is Hiding in Your Breakfast? More Than You Think” focus on specific issues, helping people solve specific problems. The company leverages the popularity of its celebrity trainers to develop recipes and nutritionists who helped develop the company’s nutrition and meal programs. General wellness trends are covered in posts such as “Top 10 Health and Fitness Trends for 2020” that cover sustainable packaging, CBD oil and the importance of gut health. DSN w w w . d i r e c t s e l l i n g n e w s . c o m 2 7
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F O R W A R D T H I N K I N G
EMERGING VERTICAL
Why the Men’s Personal Care Market is Booming
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HE SKINCARE and personal care market is getting a major boost from a previously overlooked target audience—men. According to Allied Market Research, the men’s personal care market is expected to hit $166 billion in 2022, with the skincare category projected to have the sharpest growth. NPD’s iGen Beauty Consumer report shows that male-targeted skincare product sales have jumped more than 7 percent from 2018 to 2019. “The modern man is taking a keen interest in caring for his skin, which is gradually losing its ‘girly’ tag,” an Entrepreneur. com article says. It highlights two main reasons for the rising trend: AWARENESS: More men value being well-groomed and draw greater self-confidence from looking good. Men are less shy about using products such as scrubs, eye serums, facial cleansers, moisturizers and bronzers, especially if they are specifically designed for men.
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Many consumers of male grooming products have realized the importance of self-image and presentation. 2 8 D I R E C T S E L L I N G N E W S |
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TECHNOLOGY INFLUENCE: Social media makes men image-conscious, and helps open up men to grooming and personal care trends. E-commerce has made it easier to access a growing line of personal care products without having to shop for them at traditional stores, which should be a favorable trend for the direct sales channel. “Many consumers of male grooming products have realized the importance of self-image and presentation,” says market research by Mordor Intelligence. “This has boosted the purchase of cosmetic products across the world. There is a great deal of innovation in this industry, which has also led to the gradual growth in the demand for cosmetic products.” Popular subscriber-based and direct-to-consumer services such as Harry’s and Dollar Shave Club have helped shift the social perception of men and personal care products. Highend designer Chanel even launched its first men’s skincare and cosmetics line, “Boy De Chanel.” Other traditional retail brands already on board include L’Óreal “Men Expert,” Neutrogena Men and Estée Lauder-owned Clinique for Men. Old Spice’s “Men Have Skin, Too” campaign, which launched in 2019, promotes products for moisturizing and exfoliating skin. Dads may even be more likely to become skincare product customers. A Mintel study surveyed roughly 1,000 male personal care users, and one-third of dads say they care about preventing the signs of aging, compared to 23 percent of men without kids. Two-thirds of men said they use facial skincare. The study notes that men ages 35 to 44 should drive the market because they are “more invested in the category and less price-sensitive than other groups.” DSN
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MUST READS RENEWAL: LEADING DIRECT SELLING TURNAROUNDS By Brett A. Blake (Brett A. Blake, 2020)
R
ENEWAL presents an inventory of the variables that executives should include in their turnaround plan. Blake wrote this book to provide as much guidance as possible to help direct selling executives lead their company during a downturn in sales and find your way back to renewed growth. Order today from Store.DirectSellingNews.com
LEAD FROM THE FUTURE: HOW TO TURN VISIONARY THINKING INTO BREAKTHROUGH GROWTH By Mark W. Johnson & Josh Suskewicz (Harvard Business Review Press, 2020)
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e all know a visionary leader when we see one. They’re bold and prophetic and, at the same time, pragmatic. They don’t just promote change—they drive it while inspiring and mobilizing others to do the same. Visionaries like Steve Jobs and Jeff Bezos possess a host of innate qualities that make them extraordinary, but what truly sets them apart is their ability to turn vision into action. In Lead from the Future, Innosight’s Mark W. Johnson and Josh Suskewicz introduce a new way of thinking and managing, called “future-back,” that enables any manager to become a practical visionary.
THAT WILL NEVER WORK: THE BIRTH OF NETFLIX AND THE AMAZING LIFE OF AN IDEA
HAVE A LISTEN
By Marc Randolph
T
here are just some books that are better listened to than read. That Will Never Work, authored and narrated by Netflix Co-Founder Marc Randolph is definitely one of them. Full of counterintuitive concepts and written in binge-worthy prose, it answers some of our most fundamental questions about taking that leap of faith in business or life. From idea generation, to team building, to knowing when it’s time to let go, That Will Never Work is not only the ultimate follow-your-dreams parable, but also one of the most dramatic and insightful entrepreneurial stories of our time. DSN w w w . d i r e c t s e l l i n g n e w s . c o m 2 9
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An Undeniable App‑vantage UN C E R TA IN T IME S P R O V ID E A UNIQ UE O P P O R T UNI T Y T O P R O V E T H AT W O R K IN G F R O M H O ME R E A L LY W O R K S !
W
By Noah Westerlund, SUCCESS Partners Senior Vice President, B u s i n e s s D eve l o p m e n t
HO COULD HAVE imagined the world we currently find ourselves in? 2020 has ushered in times of tremendous uncertainty and unease. So many feel far removed from the routine of daily life and are struggling to find balance as working from home becomes the new “normal” for millions unfamiliar with the juggling act it requires. But for our channel, a home-based opportunity has always been a big selling point. And, even in these troubling times, what is creating uncertainty and adversity for many has created opportunity and advantage for forward-thinking direct selling companies and the distributors that partner with them. WHY WORKING FROM HOME WORKS Although reporting is still anecdotal, results are encouraging. In fact, we are hearing that dozens of direct selling companies are reporting solid growth throughout the first quarter of 2020. New distributors are coming onboard and dormant distributors are becoming more engaged as service, entertainment and travel sector jobs dwindle,
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retail locations shutter and incomes in traditional channels plummet. After recent periods of stagnant growth and losses within the channel, the opportunity in this moment is real, and immediate action is imperative. Medium- and large-size direct selling companies are reporting doubledigit growth (some exceeding 20 percent in recent weeks) with the trend showing no signs of abating. What has allowed direct sellers to grow while other industries falter? There are many factors, but technology plays a pivotal role. Of course, technology purely for technology’s sake isn’t the answer—but technology with a strategic purpose, technology that removes barriers—certainly is. One critical tech tool is the right app. Direct selling apps should offer clarity and a clear path. They are simple, focused and effective. They eliminate clutter and confusion. And—in times like these—what could be more valuable? Is your current app equipped with everything your field needs to not just survive but thrive in the current environment? Here are a few key factors to consider.
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DIRECT SELLING APPS should offer clarity and a clear path. They are simple, focused and effective.
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F E A T U R E /
A N
U N D E N I A B L E
A P P - V A N T A G E
C L O SING T HE S O C I A L DIS TA NC E Personal connections and in-person contact is traditionally thought of as a key component to building a strong team and healthy customer base. But the new reality ushered in by social distancing, self-isolation and quarantines has made that a seemingly insurmountable challenge. In many ways, social media has already usurped traditional face-to-face meetings. Apps simply extend that trend, particularly as COVID-19 creates a compelling need for virtual contact. An app can provide a steady stream of branded, compliant, shareable content to distributors who desperately need it. For John Licari, Chief Operating Officer at TLC, that frequently refreshed content stream is powerful. “Social content has a short shelf life. We constantly deploy new content on the app to keep the messaging fresh and we have seen significant increase in consultant engagement with the app because of it.” TLC’s app was developed in partnership with our company, SUCCESS Partners, a boutique agency with over 30 years of experience in the direct selling channel. We provided the platform through our NOW app. It was then fully branded and customized for TLC, including a sampling system program. It’s a partnership that has alleviated multiple pain points for the company says Licari. “Growth is surging—they are on track to double or even triple sales this year.” A SUCCESS IN ANY L ANGUAGE Another feature that powerfully resonates with our NOW app clients are the multiple languages available. The UI currently supports 17 languages that automatically match the language setting of the phone, with additional languages in process. Popular social media platforms around the world like Facebook, Instagram and WeChat are also supported with one-click connection from the app interface. Jeremy Wardle, VP of Marketing at New U Life shares that once the company fully embraced what the NOW app had to offer, their results grew exponentially. “We have people in Oklahoma building in Hong Kong. Being able to eliminate the language barrier has been phenomenal,” he says. “People across all demographics are embracing the technology. It’s really simple for distributors to master it.” F E AT UR E S A ND F UNC T ION A L I T Y Moreover, apps provide a built-in system designed to help distributors succeed. It manages the discussion from contact to closure. The strongest apps handle Customer Relationship Management (CRM), enabling distributors to contact prospects and send them a relevant video or email. Automated 3 2 D I R E C T S E L L I N G N E W S |
“
The app has taken our sampling and customer acquisition systems to a completely new level. — K Y L E R PE N T E C O S T, V P of S ale s , I t Work s !
follow-ups, task reminders and scripts further “goof proof” the process to help distributors provide higher levels of personalized customer service. Personal development and training through the app helps to immediately immerse new distributors into the corporate culture. This becomes even more important as recruitment numbers continue to rise. The resources available on apps like NOW allow new distributors to engage and get active immediately. As Kyler Pentecost, VP of Sales at It Works! explains, “New distributors don’t even have to wait for their starter kit. They can send corporate-sponsored content and product samples to their prospects as soon as they download the app. The app has taken our sampling and customer acquisition systems to a completely new level.” A SAMPLE SOLUTION Apps are nothing new—practically every company has one. What every company doesn’t have is the right app. What is proving to be a true game changer is the ability to send product samples. Sampling through an app is an easy way for distributors to engage new customers and potential prospects, without personally handling the product and without leaving the safety of their home. As the industry continues to refocus on product sales over recruitment, a sampling component for apps is increasingly vital to help drive sales and customer loyalty. Industry trends show that hero products continue to define brands—becoming synonymous with the company’s culture, philosophy and positioning. An app that allows distributors a simple, straightforward and speedy way to share samples of these defining products to prospects builds enthusiasm, belief, brand loyalty and customer retention.
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SAMPLING THROUGH AN APP is an easy way for distributors to engage new customers and potential prospects, without personally handling the product and without leaving the safety of their home.
Revital U is known as the Sample-First Company. Founder and CEO Andy McWilliams explains how their app empowers that philosophy. “For us, the technology played such a major role because it was intuitive. It allowed our Brand Influencers to simply open up the app, follow the instructions—one, two, three—and they’ve got a sample going out.” The company incentivizes customer acquisition and product sales over building a large organization. The app helps them focus on building product loyalty by making sampling the first part of the process. “Our Brand Influencers pay a nominal monthly fee and receive sample credits in return. New distributors use the app to send samples and trigger automated follow ups,” Andy says. “Our philosophy is that giving feels better than selling, so more nonprofessional networkers will actually engage. We make it as simple and quick as possible.” R APID DEPLOYMENT Adding a sampling component to a new or existing app can happen quickly if companies partner with the right platform. Our NOW app is an industry leader in sampling functionality, designed to execute customer acquisition systems with speed and scale. One recent success story is It Works! The company collaborated with us to launch their sampling program in just six weeks. Since rolling out in January 2020, the company has experienced month-over-month growth in February and March. According to Kyler, an unexpected benefit has been the confidence it has given the distributors. “We knew it would
save them time and allow them to focus on building relationships, but we didn’t anticipate how much confidence it would give them,” he says. “Instead of creating their own samples and wasting time at the post office mailing them, they can do everything at home using just their smartphone. That’s a real asset for our field.” THE TIME IS NOW Many companies get lost in a digital maze, overwhelmed by expensive, ineffective dead ends and distractions that lead only to frustration. Multifunctional apps with CRM, language and sampling capabilities alleviate confusion and save time. What should you look for in an app that adds sampling to your arsenal? • Simplicity • Scalability • Speed It’s clear that it is no longer a question of whether or not you need an app with product sampling functionality. The question is what is the cost of waiting? According to Andy, “This is the future of customer acquisition. If you don’t adapt to the technology, if you don’t evolve with it…you aren’t going to survive.” Kyler agrees, “Adding the sampling component to our app has been such a positive experience. If I could give one piece of advice to anyone considering it, it would be ‘the sooner the better.’ What are you waiting for?” DSN w w w . d i r e c t s e l l i n g n e w s . c o m 3 3
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EMP L O Y EE S DE SER V E RED C A RP E T T R E AT MEN T, T OO Bridging the gap bet ween the
Field
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ORKPLACE CULTURE IS POWERFUL.
It’s comprised of intangibles mixed with deliberate actions that collectively represent the norms and mindset of a company. It’s a social construct that defines a workplace and its workers and even a brand, for better and worse. While it’s tempting to create a list of core principles, like authenticity, value, and transparency, and think that’s all there is to it, workplace culture demands more. It is multidimensional, fluid, in constant need of tending, and inextricably linked to everything a company wants to accomplish. There’s no shortage of reference material on workplace culture. It has been dissected and documented in studies that reveal common defining characteristics and distinct cultural styles. Companies integrate these into larger workplace frameworks that help them define individuals’ styles, as well as the values of leaders and employees.
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DISPARIT Y IN HOW CULTURE IS APPLIED SILENTLY SABOTAGES COMPANY INTENT.
Harvard Business Review breaks down the process of pinpointing and shaping organizational culture in “The Culture Factor,” published in Jan./Feb. 2018. Time spent with this piece followed by leadership discussion about independence and response to change can help plot a path toward a fitting cultural style: caring, purpose, learning, enjoyment, results, authority, safety, or order. But that’s only the beginning. If leadership is serious about harnessing its elusive power, culture can’t be relegated to a secondary HR function over the long term. Leadership must own it—all of it—all of the time. Yes, company leaders need to shape it and protect it. Still, to reap the rewards of positive culture,
they must also apply their values and norms evenly across the entire organization. Disparity in how culture is applied silently sabotages company intent. Perhaps nowhere in direct selling is that so evident as the cultural conflict that arises when the field tests boundaries with corporate employees. R - E - S - P - E - C -T Recognize this scenario? A top field leader tries to skirt a rule. A customer service representative does her job to uphold corporate policy with professionalism and integrity. The field leader behaves with arrogance and disrespect toward the
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It’s important to remember headquarters employees create those red carpet recognition events where corporate showers the field with praise and rewards. — S H A N E M C F E E LY, L e a d R e s e a r c h e r, Q u a n t u m W o r k p l a c e
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company employee. Dissatisfied with the interaction, the field leader complains, and the employee is admonished in some way. Flash forward to the unintended yet predictable scenario that follows: The field leader visits HQ later, where an abundance of praise is heaped on within earshot of the customer service rep, who is now keenly aware of the value inequity within the company culture. Managing this type of conflict is an art form, and it starts with equalizing value among all who contribute to the system. “If there’s not an inherent level of respect that’s consistent throughout the system, then you’re going to have conflict and situations where entitlement occurs,” says Noah Westerlund, senior vice president of business development with SUCCESS Partners. To be sure, direct selling is a field-focused industry. A field of multimillion-dollar earners is the stuff of
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dreams. But the value placed on the field should not be greater than that of the $12/hour customer service representative that keeps business moving forward every day. “No one is suggesting that everyone needs to have the same level of reward or the same access to those rewards because contributions to the system are unbalanced. Some people just contribute a whole lot more. But that doesn’t mean that there should be different levels of respect toward individuals,” Westerlund says. Customer service representatives would certainly be reprimanded for providing improper service or not adhering to company values. Yet too many times field leaders aren’t criticized or counseled for breaking the same cultural norms. Why? It’s on leadership to foster mutual respect, regardless of perceived individual contributions. It’s important to remember headquarters
employees create those red carpet recognition events where corporate showers the field with praise and rewards. The irony is not lost on employees who work tirelessly to bring the company’s vision to light, yet seldom receive thanks. RECOGNIZE Employee recognition is a critical driver to engagement. Quantum Workplace, experts in employee engagement, conducts 45 Best Places to Work surveys across the country. Their 2019 Direct Selling survey of headquarters employees of 24 nominated companies points to general trends and helps contextualize what’s going on in the industry. Quantum Workplace’s survey found that six in 10 respondents affiliated with direct selling were favorable to the survey item, “If I contribute to the organization’s success, I know I will be recognized.” That is below the national average of 75 percent. w w w . d i r e c t s e l l i n g n e w s . c o m 3 9
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Having a sense of humility and self-awareness as an executive team is critical if you want to truly understand and value your employees. — NOAH WESTERLUND, Senior Vice President Business Development, SUCCESS Partners
“One of the core needs that all employees have is to feel recognized for their work and feel they are helping the team and organization achieve its goals,” says Shane McFeely, Quantum Workplace lead researcher. “People differ in how they like to receive recognition—some like it publicly, while others prefer private recognition. Therefore, it is really an art to getting that recognition right. Managers and senior leaders have to work to individualize their recognition and ensure that it comes off authentically,” McFeely says. Just as a company creates formal recognition or compensation for the field, consider a defined and scheduled set of internal ways to recognize and value the contributions of employees. They don’t have to be compensation based—maybe it’s free healthy snacks in the break room, credit at the company store or simply showing interest in who they are and the contributions they make. There’s a great machine of people who lift the company and the C-suite through their daily actions. If those people don’t do their jobs, it doesn’t matter how awesome the CEO is or how smart or charismatic. “Having a sense of humility and self-awareness as an executive team is critical if you want to truly understand and value your employees,” Westerlund says. C OMMUNIC AT E Humility also creates space for the kind of effective leadership/employee communication necessary to build and maintain positive workplace culture. When Zappos.com CEO Tony Hsieh wanted to better communicate company culture to new hires, 4 0 D I R E C T S E L L I N G N E W S |
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he sought employee input. Brief, unedited, sometimes anonymous, but altogether personal, employee depictions of Zappos culture were compiled into a mini-book distributed to all new hires. “Every edition of our culture book includes both the good and the bad so that people reading the book can get a real sense of what our culture is like. With each new edition, it would also be a way of documenting how our culture was evolving over time,” Hsieh writes in his book, Delivering Happiness: A Path to Profits, Passion, and Purpose. Zappos’s investment in culture, along with customer service and employee training and development, played a huge role in hitting a $1 billion gross merchandise goal two years early. “Even today, our belief is that our Brand, our Culture and our Pipeline are the only competitive advantages that we will have in the long run… Everything else can and will eventually be copied,” Hsieh writes. Direct selling could take some cues from Zappos. While Quantum Workplace data shows great progress, communication challenges still exist. The industry’s best places to work lag behind the national average for employees knowing what their goals and accountability are. Yet 85 percent of employees believe they work with people committed to producing top-quality work and 83 percent gave high marks in their belief the organization will be successful in the future. Perhaps it’s time for trusted leadership to shift ever so slightly away from the field, hone in on the wants, needs and value of employees, and explore how a split focus would positively impact your workplace culture, your brand and your profits. DSN
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A Legacy Evolves: Arbonne Celebrates 40 Years Long before words like clean, natural or green were ever used to describe personal care products, Arbonne founder Petter Mørck was questioning the ingredients in skincare and driven to find safer alternatives. Today, the company he built over 40 years ago is more committed than ever to developing products using ingredients that will impact the industry for decades to come.
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JEAN-DAVID SCHWARTZ,
CEO
BY JENNY VETTER
INCE ITS INCEPTION, Arbonne has never stopped pursuing the three guiding principles that Petter Mørck established for his life’s work—creating exceptional skin and personal care products, offering meaningful financial
ARBONNE FOUNDED:
1980 HEADQUARTERS:
Irvine, CA TOP EXECUTIVES:
Jean-David Schwartz, CEO PRODUCTS:
Cosmetics, Skincare, Personal Care, Wellness
opportunities, and contributing to the improvement of the environment. As Arbonne celebrates its 40th year in business, the company is carrying Petter’s legacy into a new era, finding new ways to honor his vision. w w w . d i r e c t s e l l i n g n e w s . c o m 4 3
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Arbonne has evolved and grown in many ways, but the legacy my father put forth of kindness continues to live on through our passionate community and each product we make. —STIAN MØRCK, Arbonne Vice Present and B r a n d A m b a s s a d o r
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OWEVER, the last two years have been a time of significant change for Arbonne. Groupe Rocher acquired the company in February 2018, and a new CEO was announced in June 2018. New branding, new products, new initiatives and new strategies have been released. With so much change, it would have been easy for Arbonne to lose sight of Petter’s foundational vision for the company. But with his legacy and values woven into the company’s DNA, Arbonne’s identity has remained a constant, illuminating its next chapter. Petter’s son, VP Brand Ambassador Stian Mørck, has been with the company since 1989 and continues to see his father’s influence. “Arbonne has evolved and grown in many ways, but the legacy my father put forth of kindness continues to live on through our passionate community and each product we make,” he says. “It’s an honor to be a part of this community—they are what makes Arbonne so special.” E L E VAT I N G S TA N D A R D S “The Arbonne mission established by our founder, Petter Mørck, is still alive in everything we do,” says CEO John-David Schwartz. “His goal to create better options for people and the planet is at our very core. Today, we carry on that legacy through our portfolio of products—including skincare, nutrition, and personal care products—and are committed to putting people and the planet first.” Schwartz joins Arbonne from parent company Groupe Rocher, a French collection of beauty and well-being brands with a focus on reconnecting with people with nature. And while Arbonne is one of the Groupe Rocher’s newer brands, its impact on its parent company is already beginning to take shape.
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“We recently announced our B Corporation certification,” shares Schwartz. “Becoming a B Corp is a monumental moment and a formal step in our mission to be a purpose-driven company. As a direct result of our efforts, our parent company, Groupe Rocher, has committed to achieving B Corp certifications for their umbrella of brands by 2030.” B Corporation certification is no simple process. Certified companies must examine every aspect of their businesses to fully understand how its decisions impact all stakeholders: customers, employees, the communities they’re a part of and the
environment itself. This certification highlights Arbonne’s commitment to transparency, sustainability and corporate responsibility. But it’s simply a reflection of an even broader commitment Arbonne has to the environment. “In the coming years, our aim is to have even more sustainably sourced key ingredients in our products, a 50 percent reduction of plastic by 2025, a 50 percent reduction in greenhouse gas emissions by 2030, and to continue empowering people to live sustainable, healthy lives,” says Schwartz. w w w . d i r e c t s e l l i n g n e w s . c o m 4 5
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THIS CERTIFICATION highlights Arbonne’s commitment to transparency, sustainability and corporate responsibility.
EMPOWERING AN IN T ER N AT ION A L F IEL D While Arbonne’s story began with skincare, today the company’s collection also includes personal care products, makeup, nutrition products and essential oils, with new products in development. These new product offerings will align with Arbonne’s new holistic approach to beauty, health and well-being, called Mind. Body. Skin.™ This new approach creates an interconnectivity between the different product lines that Arbonne offers, with each line playing a role in benefiting the whole person. “These products will be game-changers and will really benefit people who are struggling with stress,” says Chief Marketing Officer Carole Diarra. “We’re rethinking our entire skincare line with a fresh new approach at the end of the year. We think our Consultants will be thrilled to share these products. Stay tuned!” With over 360,000 consultants in six countries (United States, Canada, United Kingdom, Poland, Australia and New Zealand), Arbonne has a diverse field team, actively sharing this expansive collection of products. Chief Community Officer Jennifer Orlando describes Arbonne’s global community of consultants as the “heart and soul” of the company. “They are the guiding force of our brand and have input into how we move forward,” she explains. “We continue to build a community that’s diverse, inclusive and welcoming, and I’m excited to see
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We continue to build a community that’s diverse, inclusive and welcoming, and I’m excited to see where they take us in the future. —JENNIFER ORLANDO, Arbonne Chief Community Officer
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Each person in our community brings something different, enriching the Arbonne family—allowing us to help transform lives, give back, and leave the earth better than we found it.
—Stian Mørck, Arbonne Vice Present a n d B r a n d A m b a s s a d o r
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where they take us in the future. I’m so proud to work for a company with such a rich history. Every time a product is shared with a new client, we’re passing down that history. We’re making an impact every single day just by simply sharing our love for the brand and inspiring our teams to do the same.” Arbonne’s commitment to clean ingredients and sustainability is endearing the company to a growing millennial audience, attracting both new customers and new consultants. “We know that millennials value healthy living,” says Diarra. “They’re savvy when it comes to products and willing to invest time into researching what’s in them. We’re already attracting so many young people to the Arbonne brand and business. We’re modernizing our brand, improving our products and taking actions that clearly demonstrate our commitments. Younger people will continue to be attracted to Arbonne because they align with our values.” The recent B Corporation certification will most likely appeal to this millennial audience, as will Arbonne’s new initiative to create less waste. “This year we partnered with global leader TerraCycle® to launch ArbonneCycle™, our new recycling program that provides a solution for the difficult to recycle parts of our packaging,” says Diarra. “This will ensure a cleaner, more sustainable world for future generations.”
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THE ARBONNE TEAM is thrilled to celebrate the company’s 40th anniversary, both by looking back and focusing on what’s to come.
LOOKING TO THE NEX T CHAPTER Following the monumental changes of the last two years, the Arbonne team is thrilled to celebrate the company’s 40th anniversary, both by looking back and focusing on what’s to come. “Our 40th gives us a great platform to share our history while moving passionately into the future,” says Diarra. “We continue to partner with leading medical professionals in skin and holistic wellness to keep us on the cutting edge of science and innovation. I can’t wait to see what the next 40 years will bring.”
Guided by the Mind. Body. Skin.™ approach to wellness, the team is looking forward to new product launches, new services and potentially expansion into new countries. “Seeing the culture of Arbonne continue to grow is what excites me most, says Stian. “Our community is so dynamic and continues to evolve as new clients and independent consultants join and bring their uniqueness to Arbonne. Each person in our community brings something different, enriching the Arbonne family— allowing us to help transform lives, give back, and leave the earth better than we found it.” DSN
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BEST PLACES TO WORK IN DIRECT SELLING 2020 This year’s 11 finalists share their thoughts about winning organizations
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T his y e ar ’s 11 f inalis t s shar e t heir t hough t s about winning organizations.
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THERE IS NO PROGR AM ON E AR TH THAT CAN MAK E EMPL OY EES ENGAGED IF THE CEO, SENIOR E XECUTIVES, AND CULTURE DO NO T SUPPOR T IT. — DR . TA S H A E UR IC H
W
HEN YOU WALK INTO a great place to work, you know it. There’s a buzz around the office—an energy that comes from employees who know where their organization is going, what it stands for, and how they fit into that picture. They’re given the freedom to share ideas, stretch for challenges, make mistakes and grow from those experiences. They look for opportunities to recognize each other. Their leaders have their back, and they know it. Most importantly, they take pride in where they work as a reflection of their own values. In a growing marketplace that has direct selling companies competing for top talent, strong employee engagement likely will tip the scales in your favor. It’s the driver of every great workplace, and best of all, it can be quantified. Companies can tie engagement to a variety of metrics, including turnover, sales, productivity, profitability and product quality. That’s according to “A New Era of Employee Engagement,” a report issued by Quantum Workplace, an employee engagement software company. Direct Selling News has once again partnered with Quantum Workplace to measure, analyze and, ultimately, honor the industry’s best places to work. We opened nominations August 12, 2019, and closed the survey on October 25, 2019. Eleven outstanding companies made the cut for our 2020 finalists. All 11 finalists have one very important quality in common: high rates of employee engagement.
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g
For more than a decade, Quantum Workplace has been conducting in-depth surveys with organizations throughout the world, representing nearly every industry sector, in an effort to measure employee engagement. Higher levels of engagement are linked to better employee retention, higher productivity and more profit. Organizations that know where they stand can make an effort to focus more intensively on the drivers and address the detractors of employee engagement. Quantum compared our survey with all other Best Places to Work results, then held them up against the top three overall Best Places to Work results. Finally, Quantum compared the results of this year’s direct selling surveys against last year’s. Here are some top-line takeaways from the direct selling survey analysis, courtesy of Quantum Workplace Analyst Shane McFeely, who compared the findings of the 2018-2019 survey with the findings of the 2019-2020 survey:
gEmployee Engagement—Overall employee engagement for direct selling companies increased slightly from last year with the proportion of highly engaged workers growing from 57 percent to 59 percent. However, this still lags behind the national average of 70 percent of workers who are highly engaged.
gClarity of Communication & Access to Information— Direct selling companies made progress this year in clarity of communication and access to information, which were among the challenges identified in last year’s survey.
gThree items related to communication generated
positive growth by four points apiece. The item “When the organization makes changes, I understand why” increased from 57 percent to 61 percent in favorability.
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B Despite that growth, however, our industry has room for improvement, with about 4 in 10 employees unsure about the rationale for organizational changes. “Goals and accountabilities are clear to everyone on my team” improved from 66 percent to 70 percent, and “I have the information I need to do my job well” increased from 71 percent to 75 percent. Growth this year negated the declines we saw in last year’s survey on those three items. These results show that direct selling companies are making progress in clearly communicating expectations and goals, which is a fundamental contributor to a productive and engaged workforce.
gFair Pay & Benefits—An area of opportunity identified in
both this year’s and last year’s survey was around fair pay. Only 6 in 10 direct selling employees responded favorably to the question of whether they felt they were paid fairly compared with the national average of 7 in 10 employees. Nearly 8 in 10 direct selling employees responded favorably to the statement that “the benefits offered here meet my needs and my family’s needs,” which is equivalent
W O R K
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T to the national average favorability. Together, direct selling employees’ responses to the fair pay and benefits questions suggest that, compared with the national average, our employees are satisfied with their total rewards and benefits but feel the pay is unfair.
gProfessional Growth & Career Development—One
of the items with the most significant difference between direct selling companies and the national average is related to the statement, “I see professional growth and career development opportunities for myself in this organization.” Only 61 percent of direct selling employees see opportunities for their own growth and development versus 73 percent of employees nationally. This is particularly troubling because growth and development are among the most influential drivers of employee engagement. Direct selling companies that want to make significant progress boosting employee engagement, then, would be wise to zero in on employees’ growth and professional development.
EMPLOY EE ENGAGEMENT PROFILES Quantum Workplace classifies employees in four different categories based on their respective levels of engagement:
Highly Engaged
Moderately Engaged
Barely Engaged
Disengaged
These employees are your company ambassadors. They preach organization love, go the extra mile and plan to stay. The more highly engaged employees you have, the better.
While they’re moderately connected to your workplace, something is holding them back. The good news is that you still have the chance to pull these employees back in by finding out what motivates them.
With one foot out the door, these employees are a turnover risk. They’re barely connected to the workplace, with an indifferent attitude and low motivation.
It’s time to cut these employees loose. They’re completely disconnected from the workplace, and the longer they stay, the more their negative attitude rubs off on their colleagues and hinders productivity.
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FROM 2017 T O 2019, t he number o f HIGHLY E NG A GE D E MP L O Y E E S incr e as ed b y
0.4%
w her e as t he number o f DISE NG A GE D E MP L O Y E E S decr e as ed b y
0.6%
QUANTUM WORKPL ACE ME THODOLOGY This is the fourth consecutive year that Direct Selling News has partnered with Quantum Workplace to measure, analyze and, ultimately, honor the channel’s best places to work. We opened nominations August 2018, began surveying Oct. 26 and closed the survey Dec 20. Twelve outstanding companies made the cut for our 2019 honorees. Since 2010, Quantum has surveyed more than 8,000 organizations annually representing numerous industry sectors through the Best Places to Work Program. This year marks the third year that Quantum has surveyed the direct selling industry. The Best Places to Work Program survey utilizes the same 30 questions across six categories for all participants, regardless of industry. No single question is weighted more heavily than the others, although
Quantum’s 2019 Employee Engagement Trends Report aggregated employee survey responses from more than 600,000 employees at more than 10,000 organizations throughout the United States in 2018, including direct selling companies. The report found that from 2017 to 2019, the number of highly engaged employees increased by 0.4 percentage points, whereas the number of disengaged employees decreased by 0.6 percentage points. Additionally, the survey revealed three key trends:
certain topics may be covered more frequently
Futur e outlook is a key dri ver o f engagemen t—leaders who communicate with their employees about the future are more likely to see higher rates of engagement.
questions may be standard, but the results
Engagemen t decr eases as company size incr eases . Striving to maintain a strong culture can help employees continue to feel connected to the company and understand their roles in its future success, even as the organization grows.
employees. And, as we examine the direct
1 2 3
than others. Six of the 30 questions on the survey are designed to quantify discretionary effort, intent to stay and advocacy for company. The other 24 questions measure workplace culture, identifying, for example, the kind of conditions under which employees are more likely to advocate for their employers. The are highly individual. They shed light on what each company can do to retain their valued selling channel, those results suggest some patterns within our broader industry that merit discussion.
Di ver sit y and inclusion e f f or t s ar e f alling shor t .
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C ONGR AT UL AT ION S ENGAGEMENT CONTRIBUTING FAC T ORS Among this year’s Best Places to Work in Direct Selling, we can identify beyond culture several common contributors to high employee engagement, including: uT heir values dri ve ever y decision.
Defining, communicating and acting your values are all essential to building a highly engaged workplace according to Christina Laubenthal and Jamee Kugler, co-authors of a report issued by Quantum Workplace titled “Essential Activities of Trusted Leaders: 35 Strategic Choices that Foster Employee Confidence in Leadership.” In 2019, Nu Skin clarified and codified its culture, dubbing its eight core principles, “The Nu Skin Way.” “It’s a description of our culture, both who we are today and whom we need to become. The Nu Skin Way outlines how we act and clearly defines how we can be the best we can be,” says Public Relations Manager Casey Schow. “At the core of these principles is our effort to be a force for good. We all work hard to improve the lives of everyone who touches our business. We now have a guide as we make business decisions, and can align our employee events and activities to support the culture.” “By defining and making values known, you hold yourself accountable and open yourself up for improvement and feedback,” say Laubenthal and Kugler. That’s a philosophy embraced at Team National, where “our CEO and other executives encourage us to grow daily, to question processes and improve them, and to learn new things that will help make us be greater and the company better,” says Sheena Prophete, Manager of Human Resources.
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to all of our 2020 Best Places to Work in Direct Selling Honorees!
5 -T I M E W I N N E R S
2 -T I M E W I N N E R S
Nu Skin
MONAT
Team National
Scentsy Total Life Changes
4 -T I M E W I N N E R S Jeunesse
F I R S T-T I M E W I N N E R S
LifeVantage
MODERE
Xyngular
SeneGence
3 -T I M E W I N N E R USANA
uT heir executi ves ar en ’ t siloed. Several
of this year’s finalists cited open-door policies among the qualities that make them great places to work. At USANA, “executives form bonds with employees at all levels to get a better understanding of what they do and how they can better serve them to make their jobs easier,” says Teresa Elias, Director of Brand Strategy. “Employees have more formal avenues of asking questions as well, including the company’s quarterly employee meetings at which employees are recognized for personal and professional achievements, receive updates on the company’s progress and goals, and are given opportunities to
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Direct selling companies made progress this year in clarity of communication and access to information, which were among the challenges identified in last year’s survey.
ask any question of the management team. USANA’s top priority for maintaining a great work environment is community. USANA prides itself on providing employees with an open and caring culture, supportive management and numerous opportunities to make a difference in the world. Because of this mentality, employees feel safe and comfortable at work and aren’t afraid to share their ideas with executives.” “I appreciate that I’m given the opportunity, and the freedom from leaders in the company to suggest and execute my own ideas—ideas that I think will benefit our distributors, whether it’s an idea for a new product or an enhancement to one of the processes that will help us to be more efficient. I appreciate the fact that my voice is heard, and my ideas are listened to,” says SeneGence Senior Marketing Manager Jenelle Moad. uT hey suppor t con tinuous learning.
Scentsy maintains an Employee Learning and Development team focused on creating and delivering courses to help employees achieve professional and personal success, says Tammy Maxey, Manufacturing Production Planner. “As a company, our biggest annual opportunity for personal and professional development is Scentsy Culture Day. Each year, we close our office for an entire day and invite employees to fill their schedules with training sessions on topics that interest them most—everything from project management to coping with stress—with plenty of time for relationship-building, celebration and fun. This day is ‘on-theclock’ and designed to fill our employees’ cups and motivate and inspire them to achieve their greatest potential at work and in their personal lives.” MONAT has articulated a clear Learning and Development Strategy, supported by a virtual Learning Management System to provide employees with the opportunity to develop skills to assist in their development. “Using the 70-20-10 formula of adult learning (70 percent on the job assignments, 20 percent coaching and mentoring, and 10 percent coursework and training), we’re working with our leaders to create more opportunities for social and experiential learning, aligned with the performance management process and development needs,” says Samuel Moreno, Social Media Representative. Additionally, the company’s w w w . d i r e c t s e l l i n g n e w s . c o m 5 7
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A key component of authenticity is the acknowledgment and support of its employees’ lives outside of work.
It’s worth noting that authenticity can’t be faked. Getting to know team members on an individual basis takes time, patience and effort, and there isn’t a one-size-fits-all approach you can use to break the ice with every employee. The payoff for your diligence is their engagement and their trust. uT hey inves t in their employees ’ health. Later
Manager Experience Certification supports the professional development of leaders within the organization through a two-day training course that follows MONAT’s Leadership Framework, “which means having the skills to grow the business, lead your teams, and develop yourself.” uT hey encour age authen ticit y. At Scentsy, “we
want employees to bring their whole self to work—it’s why one of our core values is authenticity. We provide a place where employees can come as they are as they learn and grow,” says Maxey. A key component of authenticity is the acknowledgment and support of its employees’ lives outside of work. The company offers flexible work schedules, a cafeteria open to the public so family members can join employees for lunch, a take-home meal program, children’s holiday parties, cooking classes and community events on its campus, along with yearly all-expenses-paid trip giveaways. 5 8 D I R E C T S E L L I N G N E W S |
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this year, USANA will open an onsite health clinic focused on providing a unique health experience, improving health outcomes and helping control medical costs. Integrated with the company’s vision “to have the healthiest family on earth,” the clinic will take a whole-health approach. Appointments will be 30 minutes long. “The goal is to improve health outcomes because employees should be able to develop a relationship with their provider,” says Elias. An onsite pharmacy will be able to dispense many prescriptions, and visits will be priced around $10—much lower than the typical clinic. Massage therapists and a chiropractor also will be on staff.
uT hey welcome change. One of MODERE’s 2020 objectives is to foster a growth mindset. “We want employees to be open to change, believe in growth and embrace training, effective communication and mentoring,” says Paralegal Lynnette Rose. “In embracing a growth mindset, we acknowledge that it’s OK to make mistakes because we’ll learn and grow from those mistakes.”
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CUSTOMERS WILL NEVER LOVE YOUR COMPANY UNTIL THE EMPLOYEES LOVE IT FIRST. —SIMON SINEK
3.5 M 3M 2.5 M 2M 1.5 M 1M
Sales@NexioHub.com | 1•866•806•3946 | NexioHub.com
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John Maxwell talks about the “25-50-25” principle of change, a concept he learned while at a leadership roundtable several years ago. “Whenever you cast vision and challenge people to cut through the tension and achieve something greater, they will tend to fall into three groups. Typically, 25 percent of the people will support you, 50 percent of the people will remain uncommitted or uncertain, and 25 percent of the people will resist. Your job as a leader is to get the people in that 50 percent group to join the 25 percent that is all in… getting people through the tension to something greater is your goal. uT hey make gr a titude par t o f the conver sa tion.
MONAT has made gratitude the foundation of its culture. The company shuts down operations for two annual events dedicated to celebrating its staff. Throughout the year, top performers are recognized for various achievements, including the Innovation Award, Rookie of the Year and Gratitude Award. MONAT’s “Show Your Gratitude” programs recognize employees each quarter who have demonstrated the company’s principles of integrity, respect and gratitude in the workplace. There’s a trick to expressing your gratitude the right way. Dr. Heidi Grant, a social psychologist, explained it in an article for Harvard Business Review. Most people get gratitude completely wrong. She said, “More often than not, human beings are bit egocentric by nature. We have a tendency to talk about ourselves even when we should be thinking and talking about others. When we get high-quality help and support, we want to talk about how it made us feel… yes, your helper wants you to be happy, but the motivation to be helpful often is tied directly to our own sense of self-worth.” Instead of expressing your thanks in terms of “You helped me finish the project,” or “You made me look good,” try “Your expertise made all the difference,” or “Your dedication was truly outstanding.”
OPPORTUNITIES FOR DIRECT SELLING Let’s return now to the key areas of opportunity for the direct selling industry: perception of fair pay, employees’ growth and development, understanding the rationale behind changes, and diversity and inclusion. Here are a few suggestions from Quantum Workplace for making improvements in those areas: Fair pay. Quantum’s 2019 Employee Engagement Trends Survey (which aggregated responses from a large cross-section 6 0 D I R E C T S E L L I N G N E W S |
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of industries including direct selling) found an engagement gap between hourly and salaried employees for the last two years. In 2018, 79.7 percent of salaried employees were highly engaged compared to 70.2 percent of hourly employees. While there were more moderately engaged hourly employees in 2018 (20.9 percent compared with 15.3 percent of salaried employees), 3.7 percent and 6.2 percent of salaried and hourly employees, respectively, were barely engaged; 1.3 percent of salaried and 2.7 percent of hourly employees were disengaged. While compensation is contributor to employee satisfaction, however, it may not be the most important one. In “A New Era for Employee Engagement,” Quantum cites research finding that only 31 percent of employees are motivated by monetary rewards; 69 percent are motivated by job satisfaction, recognition and learning opportunities; and 94 percent of employees report they would stay at a company longer if it invested in their career. Growth and Development. Quantum recommends a “fouringredient” recipe for employee growth and development: 1. L earning and developmen t oppor tunities : Give employees a variety of educational formats, including webinars, online training, manager coaching, classroom-style learning, peer coaching, and cross-training.
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31% 69% 94%
o f emplo y ee s ar e mo t i va t ed b y MONE TA R Y R E WA R D S are motivated by J OB S AT ISFA C T ION , R E C O GNI T ION and L E A R NING OP P OR T UNI T IE S o f emplo y ee s r epor t t he y W O UL D S TAY AT A C OMPA N Y L ONGE R IF I T IN V E S T E D IN T HE IR C A R E E R
Convert Your Social Fans into Paying Customers Give your sales force social selling tools to succeed
2 . Manager tr aining: 84 percent of employees have worked for a manager who was promoted for their skillset, yet lacked management skills. Training can help new managers compensate for experience and should cover how to align their team’s goals, as well as their team members’ goals, with key business objectives; how to delegate strategically and effectively; and how to deliver regular and difficult feedback. 3 . Con tinuous f eedback : Leaders should routinely solicit feedback from their team members. Employees also want feedback from their managers and peers. The annual performance review is becoming a thing of the past. Quantum’s research shows that having performance conversations monthly is the ideal cadence for engaged, productive employees, although employees most often prefer immediate feedback, even if it’s negative. For the best results, companies must create a culture of feedback—one that provides all employees with training in how to give and receive feedback— sets the tone from the top, builds and nurtures trusted relationships, sets clear expectations, and assures employees that there won’t be negative repercussions for their honesty. 4 . Authen tic r ecognition: Quantum has found that employees with moderate tenure are lower in recognition and development. Although that analysis was gathered from a cross-sample of industries, it’s applicable to direct selling companies, which rank lower than the national average in response to the statement “I see growth and professional development opportunities for myself in this organization.” Ask managers how they prefer to be recognized, and encourage them to do the same with their own team members. Be spontaneous, not scheduled, when recognizing employees. Personalize the reward to the employee’s preferences—a favorite restaurant or sports team,
Social Commerce Social Automation Social Governance Social CRM and more…
Request a Demo Today 214.659.1549 hello@socialsales.io
socialsales.io
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for example. These gestures can lead to greater rewards; in its report 2019 Performance Management Trends, Quantum Workplace names employee recognition as a top differentiator among companies. U N D E R S TA N D I N G T H E “ W H Y ” B E H I N D C H A N G E The largest opportunity to generate improved employee performance is change communication, according to 2019 Performance Management Trends. It’s probably not surprising that the survey found that companies with fewer than 250 employees had higher favorability around change communication; and more executives (91.7 percent) indicate they understand the “why” for changes than directors (83.8 percent), managers (76.6 percent), supervisors (72.5 percent) and individual contributors (68.9 percent). In an article for Harvard Business Review (“Don’t Just Tell Employees Organizational Changes Are Coming— Explain Why,” Oct. 5, 2018), Morgan Galbraith, an employee engagement and change management manager at Weber Shandwick Public Relations, shared several tips for helping employees understand change. First, leaders must inspire people by presenting a compelling vision for the future, explaining how the change will positively affect the organization long term. Second, ongoing communications keep employees informed and should be clear, consistent, candid and help employees understand what’s in it for them. Third, empower your leaders and managers to lead through change with information, resources, training and above all, confidence. Finally, find creative ways to involve employees in the change—special events, employee feedback sessions, employee-led committees, and recognition for employees who embrace those changes and inspire their peers to do the same. DIVERSIT Y AND INCLUSION Quantum’s report, Diversity + Inclusion: What It Is, Why It Matters, and How to Make It a Priority, suggests one of the reasons why diversity and inclusion are lacking at some 6 2 D I R E C T S E L L I N G N E W S |
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Inclusion is a foundation on which to build diversity; it’s a culture in which employees feel safe to express their opinions, in which they feel valued as individuals and empowered to grow and develop. companies: “Ask 10 well-informed CEOs to define diversity and inclusion, and you’ll likely hear 10 different answers.” Diversity is comprised of visible (race, physical abilities, gender, age) and invisible traits (sexual orientation, education, socioeconomic status). Inclusion is a foundation on which to build diversity; it’s a culture in which employees feel safe to express their opinions, in which they feel valued as individuals and empowered to grow and develop. Research has pointed consistently, the report says, to the benefits of diversity and inclusion on business outcomes: better recruitment and retention, better employee performance, greater innovation and creativity, improved customer service, and increased profits. Quantum’s research has shown that employees think the most work to be done, however, is around cognitive diversity—that is, differences in opinions, world views, beliefs, values, and styles of problem-solving. This goes beyond arguing politics around the water cooler and can reach into such areas as a manager who’s weeding out candidates based on where they attended college or a rigid set of requirements that don’t take into consideration other strengths. Cognitive uniformity can drive down employee engagement; “diversity of thought is often considered necessary for thriving workplace culture. People who bring different perspectives might see threats and opportunities that others may miss. This chemistry of human interaction is now seen as a critical component of innovation,” the report says. DSN
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ELEPRENEURS /
Your Daily Dose of Happy You can’t buy happiness. But can you drink it? BY SARAH PAULK
F
OR EVERY ELEPRENEURS DISTRIBUTOR, there are
KEITH HALLS,
PRESIDENT
ten customers—and it shows. “There are tons of customers who have no idea this is a direct selling company,” says Elepreneurs Chief Experience Officer Sylvia McGrath. “It’s not your typical network marketing culture.”
It’s not that Elepreneurs is operating incognito within the industry, but rather that its
unique company culture has set it apart in palpable ways. Instead of eschewing network marketing, the Elepreneurs executive team, which is led by a C-suite packed with seasoned network marketers, sought to enhance it. To do that, they turned typical sales strategies upside down and refused to rely on the event-based structure that has been industry standard for decades. Instead, they focused on something that is impossible to quantify: happiness.
ELEPRENEURS FOUNDED:
2017 HEADQUARTERS:
Plano, Texas TOP EXECUTIVES:
Keith Halls, President Garrett McGrath, Chief Impact Officer PRODUCTS:
Nutritional Supplements and Functional Beverages
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HAPPINESS IN A CUP In today’s instant gratification world, people don’t want to wait 90 days (or even 90 minutes) to feel the impact of a product. Elepreneurs says, just ask the hundreds of thousands of “Happy Coffee” customers. “Within a few sips, many people say they just feel better, happy, energize and focused,” says Sylvia. “While others say, it’s like their brain just comes to life. When new customers start feeling this good about an affordable product, oftentimes they feel compelled to tell other people about it.” That’s why Elepreneurs (whose products reside under the Elevacity product name umbrella) is growing so fast adds Sylvia, “It’s an instant-impact product that oftentimes turns into an instant-impact business.” The relatively new science of nootropics behind their customers’ favorite happy beverages is the foundation of the company’s category-creating “feel-good” products. Still, Elepreneurs Chief Impact Officer Garrett McGrath doesn’t encourage distributors to explain the science behind it. “People feel the need to get into ‘the science’ only if they cannot feel the product working,” Garrett says. “Here, we start with each person’s own experience. You simply share a sample—you don’t 6 6 D I R E C T S E L L I N G N E W S |
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There are tons of customers who have no idea this is a direct selling company…and that’s a good thing. — SY LV IA M C G R ATH , Elep r eneur s C hief E x p erienc e O f f ic er
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If you have to teach it, you have complicated it. — G A R R E T T M C G R ATH , Elep r eneur s C hief Imp ac t O f f ic er
have to be some kind of nutrition expert—and that’s refreshing to people. We’re just giving you this gift, and you get to make up your own mind about it.” HAPPINESS ON THE JOB When happiness is the end goal, work styles drastically shift. For the Elepreneurs team, that means fewer meetings, no pushy sales trainings and a ten-to-one customer to distributor ratio. And income? It’s important, but not something the company leads with. “In traditional direct sales, you go to a meeting, and probably the thing that’s emphasized most is how to make money,” says Elepreneurs President Keith Halls. “I’ve been to a lot of our meetings, and most leaders say, ‘Don’t worry about the compensation plan. It’s OK. You’ll make money when you start to share or sell the product.’ The atmosphere of the meetings is different.” That more laid-back approach had led to some pleasant surprises in the mailboxes of distributors who didn’t realize they had been selling when they were sharing. “I’ve received a few emails from people saying, ‘I’m not sure why I got a check. I’m very grateful, but it’s not mine,’” Keith says. “We realized they didn’t even know. That was comforting to me.” While most network marketing companies rush to build elaborate training portals full of scripts and tips for closing the deal, Elepreneurs relies on a high-impact, affordable product that naturally turns customers into distributors without much fanfare. That simplistic approach means sharing a cup of coffee (or sample) with a friend, and if they decide to buy, distributors tell them how they can get it for free. “We like to say—simple, simple, simple…sample, sample, sample,” Garrett says. “If you have to teach it, you have complicated it.” 6 8 D I R E C T S E L L I N G N E W S |
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H A P P INE S S AT HOME Being family-focused means actually spending time with the people you care about. To reinforce that culture, the leadership doesn’t encourage situations that separate people from their families. Weekends are considered family time, so typically no team-building sessions happen during those hours. Most meetings are done over Zoom, where it’s common to see a toddler bouncing on the lap of a co-worker or kids playing in the background. There are almost no home parties, weekly meetings or monthly gatherings. Events happen once or twice a year, and distributors are encouraged to bring their kids. Registration goody bags for the kids at an Elepreneurs event include coloring books because no one on the team wants to exclude the single parents who can’t find childcare. Not surprisingly, the company is heavily populated with young moms. “Women love this business,” Sylvia says. “They represent well over 80 percent of the company, and our Facebook page is about90 percent female. When you come to our happiness conventions, you’ll see the majority is happy women.” HAPPINESS BY THE NUMBERS Elepreneurs launched in December 2017, and by October 31, 2019, the company’s customer enrollment reached 410,000, while distributor ranks stayed in the 42,000 range—a staggering difference in an industry that is constantly striving to keep more customers than distributors engaged. At the same time, sales reached $15 million per month. Of the company’s sales, 75 percent is directly from customers; 50 percent is customer subscriptions to the company’s SmartShip, and the other 25 percent is customers paying the full retail price on a distributor’s website. The remaining 25 percent of sales is distributor consumption, implying that the percentage of sales derived from customer purchases is even higher, given the fact that many distributors buy with the intent to use their purchase as inventory to share with their customers. With $125 million in sales during the 12 months from November 1, 2018, to October 31, 2019, alone, the future looks profitable. “We also see expansion into foreign markets. That’s one of the goals we have—to reach as many people and affect as many lives for the better as we possibly can.” w w w . d i r e c t s e l l i n g n e w s . c o m 6 9
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It is exciting to see that we’re keeping our inclusive, loving, family culture while investing in putting new systems in place for our next 10x run. — G A R R E T T M C G R ATH , Elep r eneur s C hief Imp ac t O f f ic er
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HAPPINESS UNLIMITED Rapid growth and an easygoing culture don’t often lead to the same end, so the leadership admits that they are playing catch-up with their infrastructure. “Traditionally, if you look at companies that have gone on to do a billion dollars per year in sales, there is a very important inflection point when they hit between $100-125 million a year,” Garrett says. “We’ve just brought on some serious corporate firepower to get ahead of the growth curve. It is exciting to see that we’re keeping our inclusive, loving, family culture while investing in putting new systems in place for our next 10x run.” Keith Halls, as well as Garrett and Sylvia McGrath, are part of that equation, whose combined careers offer decades of network marketing experience at the highest levels. They are joined by other important names, like Elepreneurs Chief Marketing Officer Clare Holbrook, and VP of Digital Strategy David Litt, as well as the new Chief Operations Officer, Tony Chaplin who has 30 years of global experience, as they finalize the team going forward. Building the right internal system and physical assets to support them will be a challenging but important part of the company’s future success, and the company is plowing much of its money back into getting the infrastructure right. “It’s energizing, fun and exciting,” Keith says. “Are there hard days? Yes, but the good days far exceed the hard days. It’s about more than just sharing a cup of happy coffee. It’s about helping others lead happier lives.” DSN
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with Jean-David Schwartz Arbonne celebrates their 40th year in 2020. Recently, I reached out to CEO Jean-David Schwartz to get his thoughts and impressions of his first two years at Arbonne. BY TODD ELIASON
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How would you sum up your first two years as CEO? My first two years at Arbonne have been inspiring. Our community is so passionate and dedicated to our brand, and to meaningfully impact the lives of others in a very positive way. Their welcoming response to me came as a delightful surprise—it’s been a pleasure being on this journey with them. How has your company vision evolved from Day 1 on the job to today? The Arbonne DNA is steeped in the desire to create better options for people and the planet. This legacy is something that drives the Arbonne business forward and that has guided my vision from day one. Our journey to becoming a B Corporation brought about a change of mindset—one that will inform all our business practices moving forward— from the guiding principle of living wages, to the way we select vendor partners. We know it will effect change not only internally, but externally too. What does success look like for you as CEO? Success to me is marked by a flourishing community. Our mission is to empower people to flourish with sustainable healthy living. If we can do that through our offering and community then that would be success. Of course, results are important too and I’m happy to report that we’ve grown nearly 20 percent two years in a row. This growth has helped move our mission forward. How are you delivering on your goal of working to evolve and expand the Arbonne brand? We believe in a holistic approach to beauty, health and well-being, focusing on the whole person to help them flourish inside and out. As such, we are working on innovations and services that expand our current offering. When it comes to the company what are you most proud of? I’m proud of so many things at Arbonne, chief among them would be our community. We have a passionate and inspiring community—our Independent Consultants, employees and expert partners that we work closely with—make me proud every day.
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What are you planning to do in 2020 to celebrate your 40-year anniversary? We kicked off our 40th anniversary with our B Corporation certification announcement. This has been a journey for us and an achievement that we know we must work at every day to do better. We will continue the celebration throughout the year with activations, events and limitededition product.
Our mission is to empower people to flourish with sustainable healthy living. If we can do that through our offering and community — then that would be success.
What are you doing to strengthen the customer and representative experience? We are working on a new digital ecosystem that will be unveiled later this year. It’s a massive undertaking and something our team is working hard on in order to deliver a better experience to our Consultants, Preferred Clients and Clients. Better tools to help our Independent Consultants drive their business and make their communications more seamless is another area we are focused on.
Please share with us your sustainability efforts that are making a difference. As I mentioned, we recently became a B Corporation which is something that now informs all our business practices. We continually work to reduce our carbon footprint and earlier this year, we launched a recycling program in the U.S. called ArbonneCycle. Developed in partnership with TerraCycle to ensure that hard-to-recycle products are re-purposed into something brand new. Can you share how your brand focus ties into the mind, body and skin? Our philosophy embraces the connection between a healthier mind, stronger body, and more beautiful skin. We are currently innovating more products and services that align with this focus. w w w . d i r e c t s e l l i n g n e w s . c o m 7 3
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What are you doing from a training and onboarding perspective? Our Independent Consultants are our lifeline and as such, we listen to their needs and continue to work on how we onboard, train and supply them with the tools needed to be successful. In order to maintain a consistent message across all Consultants we provide our field with resources and material which enable them to thrive in their business. We ensure that all our content is localized for each country’s needs to ensure each nation’s voice is authentic while monitoring the integrity of our brand. What are you laser focused on this year? We have three key focuses this year—product, technology, and sustainability. First, we will continue to innovate—bringing to life products that are formulated with plant-based ingredients, grounded in science and clinical research with high standards of safety. From a technology standpoint, we are in the process of revamping our website for a better user experience. Lastly, we will continue to build upon our sustainability efforts—becoming more purposeful in everything we do, including championing integrity and transparency in order to become a more sustainable business. What are we doing well as a channel, and where do we need to improve from a customer acquisition standpoint? We strongly believe in this business model. As people engage more and more on social media, we see the potential to share the business opportunity. We hope that by leading the way with integrity we can help cultivate excitement for the brand and how we operate. There has been a significant shift in our Consultant demographic as we see millennial Consultants enter the field due to the social selling format. We believe this new wave of Consultants will only strengthen our business as more and more people engage online.
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a corporation. This distinct factor of bringing a human connection to business is something that makes us different and what we want to build upon. Having an authentic relationship that goes both ways is special and fits into our purpose-driven point of view.
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We will also continue to innovate and offer products and services that consider the whole person. What are you most excited about going forward? I’m most excited to see our brand continue to evolve with our newly updated mission. We believe that by filtering everything we do through the lens of our mission and values that we will change the way we are doing business and continue to innovate in order to make our mission of empowering people to flourish with sustainable healthy living truly a reality.
We have the responsibility to put people and the planet first, and to encourage our industry to do the same.
What else would you like to share about Arbonne? In current uncertain times, where we are concerned about the planet’s future, a fragmented society, and the wellbeing of our families—Arbonne is a safe and welcoming community where people are prioritized.
As corporate companies, we all have a role that goes far beyond short term results. We have the responsibility to put people and the planet first, and to encourage our industry to do the same. DSN
How do we continue to compete going forward against the likes of the gig economy and Amazon? Our business model is unique in that we have a two-sided connection between the end consumer and the Consultant versus just the consumer and 74 D I R E C T S E L L I N G N E W S |
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RE Mind RE Member RE New MEMBERSHIP 2020
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THANK YOU FOR YOUR CONTINUED MEMBERSHIP—IT’S BECAUSE OF YOU THAT WE ARE STRONGER TOGEHER By renewing your DSA membership, you gain the power of a voice dedicated to ensuring that lawmakers preserve the opportunity for independent contractors that companies like yours work so hard to create and nurture. DSA membership provides you with access to a broad collection of research, educational programming, professional development opportunities and fellowship with like-minded business leaders that is unparalleled and empowers your company to thrive in bold new ways.
DEADLINE TO RENEW EXTENDED TO APRIL 30 Renew today at DSA.org/renew
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E x periences to Remember H O W T O C R E AT E D IR E C T S E L L IN G E V E N T E X P E R IE N C E S T H AT B O O S T E N G A G E ME N T A ND M A K E ME M O R IE S .
B y H e a t h e r M a r t in
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IRECT SELLING DISTRIBUTORS don’t just go to industry conventions. They experience them. Our conventions feel more like rock concerts—roaring crowds packing stadiums, lights and video flooding the floor, music and motivational messages pumping through towering speakers. Ninety percent of companies that responded to a 2017 Direct Selling Association poll said they host an annual convention, and half said they host more than five salesforce or customer events each year. These events are our most powerful tool for connecting with and building belief among our sales teams— and staying connected is critical in a channel sustained by volunteer sales armies. It’s easy
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for them to drop us for another opportunity, whether it be a direct sales company that does a better job of engaging them or one of the gig economy hustles that have become stiff competition for us. So, just like you need to keep your training fresh to keep recruits on board, you have to make sure your events are strategic and on-trend and that they follow industry best practices. Whether they’re casual local meetups or major national conventions, the most successful direct selling events in 2020 will be distinct from anything an attendee has experienced before. They will be wellplanned, compliant, strategic experiences that immerse distributors in a company’s brand and create engaged, raving fans.
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Thinking ERP? Think Squire.
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A NetSuite implementation from Squire is unique: We take the time to understand
Giving away rewards and acknowledging achievement is just more fun with a crowd of peers cheering you on. It builds community and helps every rank feel appreciated.
your business goals and processes. Only then do we create a custom NetSuite solution that will meet your unique business needs.
NETSUITE IS THE WORLD’S MOST DEPLOYED CLOUD ERP SOLUTION
— STE PHE N JONE S, CHIEF MARKE TING OFFICER AT K ANNAWAY
Learn more at a briefing seminar at
L O C A L E V E N T S F I R S T USAGE OF TAGLINED LOGOS To generate the energy that makes an event buzz, hold a series The tagline "AUDIT.TAX.ADVISORY" of local and regional events thatonly educate distributors about accompanies the logo in circumstances where context requires your products, connect them with other distributors in their clarification about what Squire can do for with currentmessages and potential customers geographic area and inspire them from company (the audience). leaders and experiences of those who have risen in the ranks. For example, Squire.com and its subsequent web pagesMONAT feature the oneFlorida-based health and beauty company holds tagline version (HIGHER “Meet MONAT” events all overPERSPECTIVE the United States in the ONLY) of theand Squire logo because the subpage content United Kingdom that provide information onprovides the science throughout the site adequate context to visitors. behind and the ingredients in the products as well as the the other hand, if the team attends company’s culture and businessOn opportunities. a building national financial trade show where Squire should differentiate itself from a neighboring financial software company, then trade show banners need to include the tagline, “Audit-TaxAdvisory.”
One-tagline version of full color logo
Secondary-tagline version of full color logo
One-tagline version of white logo
netsuite.squire.com ( 801) 225-6900
AUDIT · TAX · ADVISORY
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Treat the secondary tagline like it’s part of the logo but secondary in focus to the logo itself.
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W h e n a p p r o v e d b y t h e c o m p a n y , any word usage, may be used with the
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s events go greener every year, things like printing less and reusing and recycling more have become standard practice. To reduce your carbon footprint even further, consider expanding your event attendance without requiring everyone to hop on the highway or a plane in the first place. Platforms like Facebook Live put people in virtual, earth-friendly seats and extend the reach of your convention message. “Every BELLAME event will be livestreamed,” says company Founder and CEO Melissa Thompson. “Not only is this the best way for our Partners who could not attend to participate, this is the best way to showcase the energy and culture of BELLAME for potential prospects.” Eliminating meat from the menu is another increasingly popular move to make events easier on the environment, according to Event Manager Blog, as are sustainable materials such as recyclable or digital signage, water stations and recyclable silverware. Says EMB, “In 2020, planners will be required to be all-in when it comes to sustainability. No half initiatives, no stopping at the basics. For an event to be called sustainable, the bar will be much higher.” 8 0 D I R E C T S E L L I N G N E W S | A P R I L 2 0 2 0
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The more people you can get engaged to download your event app, the easier it is to do push notifications about the event. —ERIK JOHNSON, President, Katapult Events
At Nu Skin’s upcoming regional event in Sydney, Australia, attendees will hear from the company’s regional president and Nu Skin’s Chief Scientific Officer/Executive Vice President of Product Development. Local and regional meetings also should give distributors the steps and motivation they need to meet business building goals that will earn them recognition at the next national or international convention. The prospect of receiving public praise from top brass can be a huge incentive for highly motivated distributors. “We try to incorporate as much recognition as possible on stage at our events,” says Stephen Jones, Chief Marketing Officer at Kannaway. “Giving away rewards and acknowledging achievement is just more fun with a crowd of peers cheering you on. It builds community and helps every rank feel appreciated.”
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T H E B I G S H O W All roads from local and regional gatherings should lead to the annual convention, where direct selling companies should shine the brightest. With savvy branding and high-end production, companies can reap the rewards from their event investment long after the stage lights go out. The convention experience begins the moment an attendee buys a convention ticket. That’s when they should be downloading your event app, says Erik Johnson, president of Orlando-based KATAPULT Events, a direct selling event production and management company. Event planners have been thinking about the convention for months, but attendees haven’t. “They booked their flight a month ago and haven’t looked at the agenda until they’ve given the kids to the babysitter and are on their way to your show,” Johnson says. “The more people you can get engaged to download your event app, the easier it is to do push notifications about the event.” As soon as distributors arrive in the event city, they should be surrounded by reminders of why they’re there. For some
companies, this means buying billboards and other signage outside the hotel and convention space, even putting chalk art on the sidewalks. “We are always thinking about the distributor’s experience,” Johnson says. “We never want them to leave the brand.” The latest trends inside event venues are all about smart technology and social media sharing, experts say. Data collection is more critical than ever for measuring an event’s success while managing attendees’ experiences. “Event stakeholders will expect event planners to use event data and attendee feedback to improve their return on investment and reach event objectives,” says an Event Manager Blog report. RFID wristbands are a great data gathering tool, Johnson says. They can provide the precise number of people who were in a room when a particular announcement was made and they can be programmed to allow an attendee last-minute access to an after-party or other experience, he adds. Also, while people are mingling and moving in between sessions, videographers and interviewers can be capturing attendees’ thoughts and w w w . d i r e c t s e l l i n g n e w s . c o m 8 1
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feelings about the event for clips that make great social media fodder during and after the convention. Speaking of social media, the more Instagrammable your event is the better. KATAPULT-produced conventions are filled with “photo booths on steroids,” as Johnson calls them. In these high-concept spaces, distributors can take selfies with colorful, oversized company-branded props and set pieces. At a recent convention for MONAT, KATAPULT built a 10-by20-foot area with a slew of empty MONAT hair care product bottles made to look like a rain shower. The general session arena is where the magic really amps up, planners say. High-tech elements such as interactive social walls that display attendees’ hash tagged social posts in real time and centrally programmable light-up wristbands adds excitement and emotional energy to the convention. The next big event tech things will be virtual and augmented reality, and some companies are already using it. For example, Canadian company ARHT Media provides hologram technology that can digitally place a speaker or performer on a stage on the other side of the planet. Tony Robbins used this technology in front of an audience in Australia a few years ago. But don’t do AR just because all of the cool kids are doing it, cautions trade magazine Event Marketer. “Consumers can see right through gimmicks these days, and if there’s no real strategy behind your use of the tech, it’s not going to resonate.”
Compliance is top of mind at BELLAME Beauty conventions, too. Every Partner who is going to present on stage receives a “Cheat Sheet of Phrases to Delete,” says CEO & Founder Melissa Thompson. “We also ask speakers to prepare and review their comments with us weeks in advance, so that rehearsals are not the first time we are hearing what they intend to share.”
M A K E I T M A T T E R Strategy and substance have to permeate the event for it to make the difference. So experts advise companies to blend celebration and education, leveraging attendees’ excitement and attention to deliver critical business information. “The biggest mistake most companies make at events is that they think they are just there to have fun,” says an It Works! executive. In fact, making friends and having fun is only part of the equation. “When people leave our events, they don’t just leave with a good feeling that they had a good time. They leave with a specific goal, a specific path, and a very simple system for how to achieve that.” At MONAT, “training and events go together,” says President Stuart MacMillan. The health and beauty company incorporates product and compliance training into its convention schedules, as well as a full day of personal development sessions with A-list motivational speakers such as former NFL quarterback Tim Tebow, storytelling expert Kindra Hall and leadership guru John Maxwell.
PROOF OF PURCHASE Lots of workplaces have quarterly staff parties, employee of the year award dinners, maybe an occasional sales training meeting at a fancy hotel. But few industries combine all of these things as often and on the same scale as the direct selling industry does. We roll out the red carpet like it’s our job— which it is. We need to recognize the work our teams have done in ways that let them know their hard work has been worth it. That means earmarking a smart but ample amount of money for all of your events and incentives (about three percent of annual revenue for all of them each year, Johnson says) so that you can incorporate the high-level features that will make the event memorable and make distributors proud to be aligned with your company. If you’ve scaffolded, strategized and funded your events well all year, by the time you fling open the doors to your national gathering, you should have a crowd of consultants who are totally captive and ready to see and hear proof that what they’ve bought into is real. DSN
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The Power of Print. [ WHAT CLIENTS ARE SAYING ]
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FOR over three years, HACKED magazine has been a key component of how Prüvit shares the keto product, mission and lifestyle with our growing community. This unique, smaller version makes it even more affordable and convenient to start the keytone conversation. It’s a powerful and popular tool. — BRIAN UNDERWOOD / PRÜVIT FOUNDER & CEO
Let’s kickstart a custom publication to help create & differentiate your content & marketing strategies. Contact us to set up a call with our team. We’ll share 15+ years of best practices along with an overview of the process and options.
LE T’S CONNEC T. REQUEST A C ALL TODAY! info@successpartners.com / 1.800.752.2030 / successpartners.com
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Why Payout Frequency Matters B Y
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T IS PROJECTED that by 2023, more than half of the domestic labor force in the United States will either be involved in some type
of gig work or have worked independently at some point in their career. In this growing gig economy, the desire for flexibility and freedom is on the rise, putting representatives, distributors and gig workers in a position to be choosy. Several factors motivate the human capital essential for direct selling businesses to thrive.
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When distributors feel that an organization has their best interests as a priority—trust forms, and their relationship with the organization feels more personal. Because of this, they perform with purpose.
Most studies seem to draw the same conclusions—the feeling of making a difference and contributing, coupled with recognition of achievement, results in a winning emotional combination that highly motivates individuals to continually sell successfully. What other factors could be contributing? We took a deeper dive to understand why some direct selling companies are successful with sales and distributor retention, and others appear to lag behind. The common denominator ended up being something painfully obvious and unexpected: payout frequency. MIL L E NNI A L S DE SIR E INS TA N T GR AT IF IC AT ION When companies adopted a shorter time frame from point of sale to payout, they yielded greater distributor retention. Why? Millennials have a different mindset than previous generations. They crave immediacy and instant gratification, which translates to getting paid and rewarded easily and quickly. With millennials taking over the workforce, direct selling businesses must move at their speed, which is why instant payments are a top 2020 trend. The shorter the time to payout, the more instant the gratification. Pair that with a wide range of spending capabilities through mobile wallets and debit cards, and distributors will want to stick by you and your brand for the long haul. There’s nothing more attractive to a potential distributor than an attentive organization who wants to take care of their field sales force. When distributors feel that an organization has their best interests as a priority—trust forms, and their relationship with the organization feels more personal. Because of this, they perform with purpose.
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P AY ME N T C Y C L E V S NE E D S C Y C L E To put it in perspective, let’s say a distributor for a direct sales company makes a huge product sale on the fourth of the month, but commissions are only paid monthly on the first of the month. The distributor will have to wait almost a month to receive and access her payout. A lot can happen in a month, like unexpected expenses or more product orders. This can leave the distributor frustrated and wishing that she had access to her earned commissions sooner. As the month goes by with no instant rewards or incentives, the distributor decides to look for another source of income and stop selling for the company altogether because the payment cycle wasn’t aligning with her needs and bill cycle. Not only do you lose a distributor and the investment of time and resources on education and training, but you have lost a future producer, team lead, influencer and motivator. Paying commissions monthly—or even weekly—could leave your distributors unmotivated and more likely to search for a more attentive organization to join. If that same company had invested in a solution that paid out in real-time, this distributor would have received a payment notification within minutes of making a sale and have immediate access to her funds. This instant gratification leads to excitement and an eagerness to plan the next big sale. And there you have it—the feeling of accomplishment, reward and recognition, wrapped up into a single instant payment notification keeping the daily motivation factor at its max.
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The Power of Print. [ WHAT CLIENTS ARE SAYING ]
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COLLABORATING with SUCCESS Partners for six consecutive years and 11 issues to date on our Essential Oils magazine is a secret weapon in our member (customer) engagement and retention strategies. We love how the magazine represents our brand and supports our product benefits and overall value proposition efforts. Working with the creative team at SUCCESS Partners is a seamless and easy experience every time. They are a true partner and experts at producing beautiful, engaging content that works. — WAY N E MO O R H E A D / YO U N G L I V I N G C M O
Let’s kickstart a custom publication to help create & differentiate your content & marketing strategies. Contact us to set up a call with our team. We’ll share 15+ years of best practices along with an overview of the process and options.
LE T’S CONNEC T. REQUEST A C ALL TODAY! info@successpartners.com / 1.800.752.2030 / successpartners.com
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E V O LV IN G F IN T E C H T R E ND S With the rapidly changing fintech trends seen today, the most successful direct sales companies have evolved from the traditional ACH payments to robust solutions that offer instant payouts. Successful companies are recognizing that freelance workers will no longer settle for waiting weeks for a check to arrive in the mail, or days for funds to arrive in their account. These top companies have shifted from paying their representatives on a monthly or weekly schedule and have increased payout frequencies to daily and even hourly, promptly after a sale is made. Each instant payment notification keeps distributors excited about selling, being paid, and being able to spend right away. Taking care of your field isn’t just about giving recognition anymore. It’s about having the most efficient systems in place to make their road to success easy to navigate and rewarding instantly.
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Taking care of your field isn’t just about giving recognition anymore. It’s about having the most efficient systems in place to make their road to success easy to navigate and rewarding— instantly.
C H O O S IN G A P AY O U T P R O V ID E R To compete in today’s growing gig economy, direct selling organizations need to pay their distributors faster. Partnering with the right payout provider is a key decision that can accelerate your direct selling business by increasing participation, retention and loyalty. When choosing a payout platform, make sure it offers services that can scale with your business to pay distributors in-country or cross-border, as frequently as you want, in realtime and with no hassles. An easy API integration will allow you to process payouts more frequently and within seconds. Continually build and promote your brand with a solution that offers your branding and logos on instant spend debit cards and user interfaces, while providing spend-back capabilities for the easy purchase of more product. Make sure your funds and your distributors’ funds and information are on a platform that is safe, secure and meets a high standard of compliance. But most importantly, make sure your payout provider is as attentive to you and your payees as you are to your sales force. DSN
CRYSTAL HOLTZENDORFF IS THE DIRECTOR OF SALES OPERATIONS AT PAYQUICKER, A GLOBAL PAYOUT PROVIDER THAT OFFERS INSTANT PAYMENT SOLUTIONS FOR DIRECT SALES COMPANIES OF ALL SIZES.
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Direct Selling SelfRegulatory Council (DSSRC): The Way Forward
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wo years ago to the date, in March 2018, I wrote about DSA’s then active development of a new self-regulatory program. The foundation of the program was rooted in strong principles shared by direct selling executives and thought leaders alike. The program’s aim was to create a robust, comprehensive, third party operation with a transparent consumer protection effort to ensure that the whole of the direct selling marketplace was held to high standards concerning income representations and product claims. Since that 2018 article, executives continued to convene and build a program rooted in FTC standards, Federal law, the DSA Code of Ethics, and the self-regulatory precedent built up through the years by the Better Business Bureaus National Programs. They developed the policies and procedures to ensure that the blueprint for this program would be robust, fair, and holistic in its aim to raise the bar for the industry. These efforts resulted in the launch of the Direct Selling Self-Regulatory Council (DSSRC) in January 2019. The DSSRC mission is to: • Enhance consumer confidence in direct selling • Offer the industry a fast and efficient forum for review of problematic sales and marketing • Demonstrate a strong commitment to self-regulation Since that time, the DSSRC, which operates independently of the Association, has undertaken an extensive review of the direct selling marketplace. Through its comprehensive
JOSEPH AQUILINA
is the VIce President, Government Affairs & Policy for the U.S. Direct Selling Association.
monitoring, the DSSRC has reviewed more than 18,500 unique URLs and reviewed more than 8,000 potential infractions. To date, the DSSRC has published thirteen case decisions and reviewed the marketing materials and social media posts of dozens of companies. Additionally, and perhaps most importantly, the DSSRC has shown transparency in its processes as well as having teeth in referring three matters of non-responsive companies to the Federal Trade Commission. The Federal Trade Commission, in turn, has lauded the creation and operation of the program and encouraged it to continue to use “transparency and teeth.” While the Association has served a role in its creation, the DSSRC is only possible because of the leadership and contributions of DSA members. These leaders’ contributions and full membership support are what will enable the DSSRC to continue its work and help our collective efforts to reposition the reputation of the direct selling channel as it pursues continual growth and progress. As the industry continues to pursue new avenues of innovation for products, customer customization, compensation plan simplification, and positioning direct selling in an increasingly competitive landscape, the DSSRC will continue to provide a complementary role in continuing to pursue high standards for business ethics in the direct selling channel. As Benjamin Franklin said, “Without continual growth and progress, such words as improvement, achievement, and success have no meaning.” DSN w w w . d i r e c t s e l l i n g n e w s . c o m 8 9
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HYPERWALLET SYSTEMS INC.
575 Market Street, Ste. 3650 San Francisco, CA 94105 877-687-4602 www.hyperwallet.com
Pay the planet with Hyperwallet. Branded commission solutions, global payout choice, distributor support tools, loyalty programs, and more.
INTERNATIONAL PAYOUT SYSTEMS INC.
540 NE 4th St. Fort Lauderdale, FL 33301 866-218-4668 i-payout.com
More payment options in 150 countries via the most flexible and customizable software solution. Unbeatable pricing.
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PROPAY INC. 3400 N. Ashton Blvd., Ste. 200 Lehi, UT 84043 888-227-9856 www.propay.com Reliable global payments. Pay distributors in USD or local currencies and accept payments from them. Bank deposits & custom debit cards.
STRATEGIC CHOICE PARTNERS
2201 Long Prairie Road, Ste. 107-316 Flower Mound, TX 75022 407-891-9265 https://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.
COMPLETE MERCHANT SOLUTIONS
727 North 1550 East 3rd Floor, Orem, UT 84097 877-267-4324 www.cmsonline.com Complete Merchant Solutions (CMS) is a full-service US merchant account provider representing multiple banks. CMS safely and securely supports many types of payment processing for direct selling companies.
C R E D I T C A R D / P AY M E N T P R O C E S S I N G
C O M M I S S I O N P AY M E N T S E R V I C E S
AccountingSuite tracks orders, inventory, and projects in the cloud. Our affordable Direct Seller Edition is perfect for individual sellers or companies may buy in bulk at a discount to include in a seller package to create another revenue stream.
C O N S U LTA N T S / M A N A G E M E N T
ACCOUNTINGSUITE 600 California Street, 12th Floor San Francisco, CA 94108 1-800-334-1099 www.accountingsuite.com
C R E D I T C A R D / P AY M E N T P R O C E S S I N G
C O M M I S S I O N P AY M E N T S E R V I C E S
A C C O U N T I N G S O F T WA R E / S E R V I C E S
Vendor Directory METRICS GLOBAL, INC 1160 N. Town Center Drive, Ste. 100 Las Vegas, NV 89144 888-891-5445 www.metricsglobal.com Grow your business globally with cash advances, mobile payments, multi-currency processing, global gateway & more. 99% client retention!
PLANET 600 Old Country Road Ste. 207 Garden City, NY 11530 561-859-0903 www.planetpayment.com A global leader in cross border and international payments with expertise serving the Direct Sales Industry. Planet supports 100+ payment methods via a single integration with the industry’s best payment acceptance solution for Greater China.
PROPAY INC. 3400 N. Ashton Blvd., Ste. 200 Lehi, UT 84043 888-227-9856 www.propay.com Global processing in 150+ international currencies. Direct JCB integration. Encryption & Tokenization. Micro merchant and mobile solutions.
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EXPERIENCE COLUMBUS 277 W. Nationwide Blvd., Ste. 125 Columbus, OH 43215 614-222-6121 www.experiencecolumbus.com
D I S T R I B U T I O N / F U L F I L L M E N T/ L O G I S T I C S
A 20,000-seat arena and 100+ unique restaurants surrounding our convention center makes Columbus feel custommade for direct selling conventions. With arts, live music and more, there’s always something to do in the capital of under-theradar cool.
Handle fulfillment for 5 of the DSA top 100 companies. DSA member with 15 fulfillment centers, nationwide, for 1-2 day delivery to 98% of the U.S. Offering discount parcel solutions, kitting, same-day shipping, and a full menu of value-added services.
D I S T R I B U T I O N / F U L F I L L M E N T/ L O G I S T I C S
World-class convention hotels in destinations around the world. Discover the magic of Disney for your meetings, events or incentives.
AMWARE FULFILLMENT 4505 Newpoint Place Lawrenceville, GA 30043 678-377-8585 Sales@AmwareLogistics.com www.AmwareLogistics.com
CANADA CARTAGE LOGISTICS SOLUTIONS
Choose Visible for efficient fulfillment processes and market-leading customer experience. Benefit from multi-carrier solutions, high-volume shipping rates, custom packaging, fulfillment, and a real-time inventory management system— with a 99.84% order accuracy rate.
Single Source Solutions, Order to Delivery B2C Solutions, On-Time Order Fulfillment, Real-Time Inventory Visibility, NHP Site Compliant, SOP/GMP Compliant, and locations across Canada.
A2B FULFILLMENT
GLOBAL ACCESS 9815 S. Monroe Street, Ste. 510 Salt Lake City, UT 84070 877-811-8108 www.globalaccess.com
Since 2001, a2b Fulfillment has been helping companies work smarter by outsourcing business support services, including order fulfillment, customer care, and valueadded solutions. Its same-day fulfillment philosophy ensures that customers aren’t waiting, and its one-call customer service resolution standard keeps them coming back.
International expansion expertise and technology and logistics solutions that grow clients’ businesses and brands around the world.
Stalco is your Canadian Distribution partner for all your requirements, including: regulatory approvals and management, importation (tracking and customs clearance), fulfillment (kitting, pick and pack, shipping), same day order processing, 2-4 day tracked delivery, and returns management.
5160 Wiley Post Way Salt Lake City, UT 84116 385-355-8840 www.visiblescm.com
1615 Clark Blvd. Brampton, Ontario L6T 4W1 905-564-2115 x2 www.canadacartage.com/logistics
150 Stewart Parkway Greensboro, GA 30642 866-843-3827 www.a2bf.com
STALCO INC. 64 Bakersfield Street Toronto Ontario M3J 2W7 647-367-2459 ext. 200 www.stalco.ca
VISIBLE SCM
E-COMMERCE FULFILLMENT
DISNEY DESTINATIONS P.O. Box 10,000 Lake Buena Vista, FL 32830-1000 321-939-7129 www.disneymeetings.com
D I S T R I B U T I O N / F U L F I L L M E N T/ L O G I S T I C S
D E S T I N AT I O N S / E V E N T V E N U E S
TO BE INCLUDED IN THE VENDOR DIRECTORY, CALL 1-800-279-5249
VERST E COMMERCE FULFILLMENT
300 Shorland Dr., Walton, KY 41094 800-978-9307 www.verstlogistics.com
Verst offers robotic picking, 99% order accuracy, 6.5+M sf scalable warehousing space, air/rail-served, 1-2 days to over 85% of the U.S. Services include pick-pack, labeling, kitting, and custom packaging. Our Business Is… An Extension of Your Business
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MULTI IMAGE GROUP 1701 Clint Moore Road Boca Raton, FL 33487 800-523-2682 www.mig.cc A full-service event production company specializing in helping DSA’s tell their stories. Creativity + Technology = Unforgettable Experiences.
INCENTIVES/RECOGNITION
As the “next generation go-to” industry leader, we artfully envision, craft and transform your story into high profile one-of-a-kind memorable experiences that motivate, educate and celebrate your audience and deliver customized results.
E VENT PRODUCTION
SOLOMON GROUP 825 Girod Street New Orleans, LA 70113 504-252-4500 www.solomongroup.com
ATLANTIS PARADISE ISLAND 1000 S. Pine Island Road Plantation, FL 33324 800-722-2449 www.AtlantisBahamas.com/meetings Create lasting memories for your top producers. Reward & WOW them with a resort experience nestled in the world’s largest open air aquarium.
SOLOMON GROUP
E.A. DION, INC.
600 N. Cassady Avenue Columbus, OH 43219 800-363-2698 www.bartha.com
825 Girod Street New Orleans, LA 70113 504-252-4500 www.solomongroup.com
33 Franklin McKay Road Attleboro, MA 02703 800-445-1007 www.eadion.com
Excite & ignite your direct sales force by using Bartha—the highest quality event production and staging company nationwide!
Solomon Group produces the key moments of now that live on as the memories of the future for the world’s most relevant, culturally significant brands and organizations.
Dion’s jewelry solutions are perfect for career path, sales & recruiting, corporate anniversaries and incentive travel recognition awards.
KATAPULT EVENTS 5840 Red Bug Lake Rd, Ste. 140 Winter Springs, FL 32708 407-915-9060 www.katapultevents.com Fresh. Exciting. Bold. Your field deserves the best and we help you deliver. Out-of-the-box creative production with experienced show management. We execute on budget and make you look AMAZING!
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HANNA SHEA 1835 W Chandler Blvd 103, Chandler, AZ 85224 844-344-7177 www.hannashea.com Since 2007, Hanna Shea Executive Search has been the go-to search firm in support of the direct selling industry. Hanna Shea finds top talent for companies in need of building or improving an executive leadership team for organizational success.
INCENTIVES/RECOGNITION
BARTHA
E XECUTIVE RECRUITMENT
E VENT PRODUCTION
E VENT MANAGEMENT
Vendor Directory
FOSSIL GROUP 901 S. Central Expressway Richardson, TX 75080 469-730-7619 www.fossil.com Fossil Group is a global watch company specializing in the innovation and design of watches, wearables, jewelry, and leather goods. Our owned brands include Fossil, Michele, Misfit, and Skagen, and licensed brands, Armani Exchange, Diesel, Emporio Armani, kate spade new york, Marc Jacobs, Michael Kors, Misfit and Tory Burch.
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MARK E TING/BR ANDING
M A NUFA C T UR ING/ P R OD . DE V E L OP ME N T
1080 Caribbean Way Miami, FL 33132 Royal Caribbean International’s Corporate Sales Team 800-529-6916 www.royalcaribbeanincentives.com ICONIC SHIPS. EPIC ADVENTURES. ULTIMATE EVENTS. Royal Caribbean® transforms events into the ultimate productivity paradise. Impress your attendees with epic venues, vibrant restaurants, onboard thrills and beautiful destinations.
PROGRESSIVE LABORATORIES
3131 Story Road W Irving, TX 75038 972-518-9660 www.progressivelabs.com 40+ years of quality manufacturing of nutritional formulas specializing in capsules and powders. FDA registered and 3rd party UL certified facility.
SMART OFFICE SOLUTIONS, INC.
217 N. Westmonte Drive, Ste. 1007 Altamonte Springs, FL 32714 800-891-8601 www.SmartOfficeSolutions.com Your mobile strategy should be as smart as the phone in your pocket. Make a powerful statement about the value of social networks and personal connections with the SmartMobile app. Transform every share, text, call, and email into a positive sales and recruiting result.
S O F T WA R E / T E C H N O L O G Y S O L U T I O N S
ROYAL CARIBBEAN INTERNATIONAL
MOBILE APPS & COMMERCE
INCENTIVES/RECOGNITION
TO BE INCLUDED IN THE VENDOR DIRECTORY, CALL 1-800-279-5249
BYDESIGN TECHNOLOGIES 9503 Princess Palm Avenue Tampa, FL 33619 813-253-2235 www.bydesign.com Award winning SaaS solutions including Geneology Management & Commissions, Inventory, Replicated Websites, Premier Rep Tools, Branded Mobile App, Virtual Parties, E-vites, Hostess Rewards, Bookings, Social Sharing, Promotions, & Shopping.
SOCIALSALES.IO
DIRECTSCALE
2024 W. 15th St., Ste. F-324 Plano, TX 75075 214-659-1549 hello@socialsales.io www.socialsales.io
350 South 400 West, Ste. 225 Lindon, UT 84042 801-701-3285 www.directscale.com
Convert your social fans into paying customers. Our global SaaS platform includes the tools your sales force needs to succeed in today’s social selling environment. Scalable to fit any sized organization from startups to large global enterprises.
Scalable software for your company and your sales force that’s delightful and easy to use.
SUCCESS PARTNERS
SUCCESS PARTNERS
DIRECTECH LABS
5800 Democracy Drive Plano, TX 75024 800-752-2030 www.successpartners.com
5800 Democracy Drive Plano, TX 75024 800-752-2030 www.successpartners.com
GROW YOUR DIRECT SALES BUSINESS. SUCCESS Partners creates strategies and solutions that enable you to strengthen your brand, motivate your distributors to action, and improve your bottom line.
GROW NOW! SUCCESS Partners’ NOW app technology makes connection, speed and scale possible regardless of location. More than ever, your field needs a simple system designed for maximum duplication that promotes customer acquisition activity.
929 Colorado Ave Santa Monica, CA 90401 310-730-1246 CustomerCare@directechlabs.com www.directechlabs.com The AI-powered messaging and analytics platform. Be a better opportunity in the gig economy. Actionable dashboards and automated opportunities that get your field and customers engaged into measurable action anywhere in the world.
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The global leader in cloud-based Platformas-a-Service (PaaS) for direct selling companies. An open framework for billiondollar giants to startup companies. Exigo supports MLM, Party Plan and Affiliate models, operating in single global markets.
JENKON 203 SE Park Plaza Drive, Ste. 250 Vancouver, WA 98684 360-256-4400 www.jenkon.com Corporate & Sales Force software for 21st century world-leaders in global direct selling. Cloud-based & on-premise solutions are available.
INFOTRAX SYSTEMS
NEXIO
1875 S. State Street, Ste. 3000 Orem, UT 84097 801-431-4900 www.infotraxsys.com
727 N 1550 E, 3rd Floor Orem, UT 84097 1-877-551-5504 www.nexiohub.com
Software & SaaS solutions for startup, emerging, and global direct selling companies. See our ad on the back cover.
Nexio manages the chaos of payments offering: • Faster roll out for distributors or partners • Simplifies payment processing for corporations
TA X S E R V I C E S
EXIGO 1600 Viceroy Dr., Suite 125 Dallas, TX 75235 214-367-9933 www.exigo.com
S O F T WA R E / T E C H N O L O G Y S O L U T I O N S
TO BE INCLUDED IN THE VENDOR DIRECTORY, CALL 1-800-279-5249
S O F T WA R E / T E C H N O L O G Y S O L U T I O N S
S O F T WA R E / T E C H N O L O G Y S O L U T I O N S
Vendor Directory
INTERNATIONAL DIRECT SELLING TECHNOLOGY CORP.
THATCHER TECHNOLOGY GROUP, LLC
1208 E. Kennedy Blvd., Ste. 222 Tampa, FL 33602 800-803-7144 www.idstc.com
55 Shuman Blvd., Ste. 350 Naperville, IL 60563 866-698-3848 www.thatchertech.com
Global Operations Management Software. Advanced Comp Plan Programming. Sales Force Backoffice & Automation. Web Site Design & Replication.
Thatcher Technology Group provides Sales Force, Compensation and Incentive Management Software for the Direct Selling Industry.
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TOOLS, RECRUITING & TR AINING
Nexio does this by being integrated with the majority of back-office software solutions in the Direct Sales Industry.
XIRECT SOFTWARE SOLUTIONS
686 E 110 S Unit 104 American Fork, UT 84003 385-448-1800 www.xirect.com Scalable software from startup to enterprise. Your delivery expert in Commissions Calc / Consulting, Replicating Websites, E-Commerce, Reporting, Promotions, Localization, Multi-Currency, and more- The Perfect Cloud-based Direct Selling Software Partner!
SOVOS 200 Ballardvale Street, 4th Floor Wilmington, MA 01887 1-800-334-1099 www.sovos.com Save time and money with a smarter tax information reporting solution. Sovos solutions keep up with regulatory changes, perform TIN verifications, and automate your organization’s entire 1099 and 1042-S federal and state reporting process.
SUCCESS PARTNERS 5800 Democracy Drive Plano, TX 75024 800-752-2030 www.successpartners.com SERVICES THAT SPARK GROWTH. From sampling and physical starter kits to digital marketing, we’ve got you covered. We serve by working alongside you to design, develop, and deliver solutions that benefit you, your distributors, and your customers.
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TEACHING TOMORROW’S BUSINESS LEADERS DSEF Fellows Make a Difference for Direct Selling More than 190 DSEF Fellows are changing the way direct selling is taught in universities across the US by using the Foundation’s teaching content, research
“The DSEF pedagogical support materials address real-world, timely marketing practices. I especially like the CUTCO/Vector ‘The Cutting Edge of Quality’ video case. It not only highlights a successful approach to disintermediation and direct selling, it reinforces the importance of sales as the sole driver of creating revenues in any firm. DR. LOU PELTON Associate Professor of Marketing University of North Texas
“As a DSEF Fellow, I was able to develop a teaching case that connected my research interest in effectuation and social entrepreneurship with the founders of Trades of Hope. As a bonus, many students were introduced to the direct selling distribution channel as an avenue for social entrepreneurship. DR. CHRISTINE MOLLENKOPF-PIGSLEY Assistant Professor & Program Director Applied Organizational Studies Minnesota State University Mankato
and case studies. Here’s what they have to say about how DSEF benefits students and direct selling.
“My students have pointedly benefited from DSEF case materials. The Big Data video is highly insightful and garners substantial discussion. The Cocoa Exchange case, particularly the related video, is wonderful for discussing corporate social responsibility, women’s empowerment and direct selling. DR. WILLIAM F. CRITTENDEN Professor, International Business and Strategy Northeastern University
1667 K Street, NW, Suite 1100, Washington, D.C. 202-452-8866 • info@dsef.org • www.dsef.org
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GROW NOW! SUCCESS Partners’ NOW app technology makes connection, speed and scale possible regardless of location.
“The sooner you can implement sampling, the better… what are you waiting for?” —Kyler Pentecost, VP of Sales, It Works!
SPEED TO MARKET It Works! Sampling: six weeks from initial discussion to launch! Are your business and field set up for success while keeping a safe distance? Does your app include a sampling system?
LET’S CONNECT. REQUEST A CALL TODAY! info@successpartners.com / 1.800.752.2030 / successpartners.com
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Costa Rica Dominica Albania Dominican Re Andorra public Bangladesh Ecuador Bhutan Austria El Salvador Brunei Azerbaijan Grenada Burma Belgium Cambodia Bosnia and Her- Guatemala Guyana China zegovina Haiti East Timor Bulgaria Honduras Fiji Croatia Jamaica India Cyprus Indonesia Czech Republic Mexico Panama Israel Denmark Paraguay Japan Estonia Peru Jordan Finland Saint Kitts & Kazakhstan France Nevis Kiribati Georgia Saint Lucia Korea, South Germany Saint Vincent & Kuwait Greece the Grenadines Kyrgyzstan Hungary Suriname Laos Iceland Trinidad & ToMalaysia Ireland bago Maldives Italy United States Marshall Islands Latvia Introducing a seamless payment platform Uruguay Micronesia Liechtenstein Algeria bridging all your sales channels! Mongolia Lithuania Angola Nauru Luxembourg Benin Nepal Macedonia Botswana New Zealand Malta Burkina Oman Moldova Cameroon Pakistan Monaco Cape Verde Maximize your global acceptance and Palau Montenegro Chad Papua New Netherlands process payments with: Comoros Guinea Norway Djibouti Unrivaled omnichannel acquiring in Philippines Poland Equatorial GuinQatar Portugal 170+ countries & 170+ currencies ea Russian Romani Eritrea Federation San Marino 140+ worldwide Alternate Ethiopia Samoa Serbia Gabon Saudi Arabia Slovakia Payment Methods & Mobile Wallets Gambia Singapore Slovenia Ghana Solomon Islands Spain Guaranteed 99% transaction Guinea Sri Lanka Sweden responses within 1 second and Kenya Syria Switzerland Tajikistan United Kingdom Lesotho 99.995% platform uptime. Liberia Thailand Vatican City Madagascar Tonga Antigua & Malawi Turkey Barbuda Mauritania Turkmenistan Argentina Mauritius Tuvalu Bahamas Morocco United Arab Barbados Mozambique Emirates Belize Namibia Uzbekistan Bolivia Niger Vanuatu Brazil Nigeria Vietnam Canada Rwanda Yemen Chile 0420_DSN_COVER.indd 3 Sao Tome & PrinColombia Afghanistan
Now the world can be yours.
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KICK UP YOUR PERFORMANCE Need an assist to reach your goals? FlexCloud has your back. Our new platform and extensive API library make it easy to connect our services to your existing sites and systems. Learn more about the power of FlexCloud at www.infotraxsys.com/products/flexcloud or contact us today and get the strength of over 20 years’ direct selling experience on your team. Learn how a better business starts here: www.info.infotraxsys.com/flexcloudwhitepaper
801.431.4900 | infotraxsys.com
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VOLUME 16 ISSUE 4
DIRECT SELLING NEWS
DirectSellingNews.com