Direct Selling News July 2020 Issue by directsellingnews

VOLUME 16 / ISSUE 07

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THE RISE OF VIR TUAL E VENT S ENGAGEMENT, PROFITABILIT Y A ND CONNEC TION LIK E NE VER BEF ORE

F E AT URE / SIX COMMON DENOMINATORS OF GROWING DIRECT SELLING COMPANIES F E AT URE / TOUGH TIMES REQUIRE TOUGHER PEOPLE LIFEVANTAGE / BIOHACKING THE FUTURE

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C O N T E N T S J U LY

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FE AT URES

Six Common Denominators of Growing Direct Selling Companies B Y B E TH D O U G L AS S S I LC O X Tough Times Require Tougher People BY H E ATH ER MARTI N

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SPOTLIGHTS

Biohacking the Future I nnovative technology and nutritional products that optimize the body’s biology. B Y B R IT TAN Y G LEN N

42 ONE VOICE

72 9 Factors to Consider W O R K I N G S M A R T/

While Choosing a Payment Processing Partner B Y S C OT T FIT ZPATR I C K

76 Win in the New Normal NE W PERSPEC TIVES/ B Y TO N Y J E ARY

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IN EVERY ISSUE 8-9 AD INDEX // 11 FROM THE EDITOR // 13 INDUSTRY NEWS // 36 FORWARD THINKING // 71 DSA MESSAGE // 82 VENDOR DIRECTORY //

Serving the Direct Selling and Network Marketing Executive Since 2004 A SUCCESS Partners Company

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Stuart P. Johnson PUBLISHER AND EDITOR IN CHIEF

Todd Eliason teliason@directsellingnews.com

COVER STORY

THE RISE OF V IR TUA L E V ENT S

In-person gatherings may be out of the question, but direct selling companies are reporting increases in engagement, profitability and connection like never before.

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 Brittany Glenn David Lee

Heather Martin Sarah Paulk Beth Douglass Silcox

BY SARAH PAULK

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FROM THE PUBLISHER Connecting in a Virtual World

S WE enter the fourth month of life altered by the coronavirus pandemic, we are beginning to see the light at the end of the tunnel that life could get back to normal soon. Businesses are slowly allowing employees the option to come back to work with social distancing protocols in place. And while it may take some time for direct selling companies to resume their in-person event schedule, there are some surprising results coming out of those companies who are holding virtual events. For an industry known for its relational appeal, eliminating the face-to-face factor should be crushing. But instead, many executives are reporting that they feel more connected to their teams than ever before and are experiencing record engagement. Check out our cover story starting on page 50. Next, with many people looking for innovative life and work solutions due to the pandemic, direct selling is in a unique position to capture this moment. Doing so depends on a company’s ability to pivot to remote customer and distributor acquisition and retention. Writer Beth Douglass Silcox shares the Six Common Denominators of Growing Direct Selling Companies starting on page 42. We are excited to feature LifeVantage as our company spotlight this month. Although they didn’t start the biohacking movement, they’re the direct selling company that has embraced it. They also want to make it as easy to build a business with LifeVantage as it is to drive for Uber. “We have to take out as much friction within our systems as possible to make it easy to do business with us,” says Darren Jensen, LifeVantage President and CEO. Their feature starts on page 60. Finally, given this crazy time we are living in, implementing a personal development program is an effective way to help team members cope with and see beyond this crisis. Starting on page 66, writer Heather Martin shares the importance of leaders who are paying attention to what their people need beyond just the technology to work from home. This means giving them opportunities and resources to build habits and adopt attitudes that will help them thrive during and after this challenging time. We are thankful for our audience of direct selling executives, supplier companies and distributors who are shining examples of what makes our channel a beacon in trying times. Thank you for your cooperation in helping us create content that not only gives you added insight but helps you do your job better. All the best,

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IN THIS ISSUE 14

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

Natura Published First Annual Report with Avon M A IN S T OR Y by Br en t K ugler

NO T B ACK ING DOW N

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Young Living Employees to Work from Home Through 2020

Tastefully Simple Celebrating Silver Anniversary

he FTC v. AdvoCare Litigation Continues in a Texas Federal Court as Two Former AdvoCare Distributors Mount Challenge to FTC’s Enforcement Authority. Largely unnoticed in the publicity surrounding the FTC v. AdvoCare lawsuit in October 2019 was the fact that two former AdvoCare distributors named in FTC’s complaint refused to settle with the FTC. In a filing that could have wide-ranging implications for the MLM industry, former AdvoCare distributors Danny and Diane McDaniel instead challenged FTC’s statutory authority to bring suit

in federal court seeking monetary relief. Shockwaves reverberated through the MLM industry after the October 2019 announcement that former MLM giant AdvoCare and former AdvoCare CEO Bryan Connolly had agreed to a lifetime ban of MLM business activity and payment of $150 million to settle FTC claims that AdvoCare operated as an illegal pyramid scheme and engaged in misleading and deceptive business practices. At the same time, the FTC also announced a settlement with former AdvoCare distributors Carlton and Lisa Hardeman

in which the Hardemans received a lifetime ban from MLM activity and were ordered to liquidate their real estate holdings to satisfy a multimillion-dollar restitution order. C OUL D E S TA BL ISH NEW PRECEDENT Rather than settle with the FTC, the McDaniels decided to fight back by challenging the FTC’s enforcement authority to sue for monetary relief. A ruling on the McDaniels’ challenge by… To read the full news feature, scan the QR Code, or visit http://bit.ly/DSNQR

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T H E Y S A ID I T !

How to be Productive When Working from Home

Rather than settle with the FTC, the McDaniels decided to fight back by challenging the FTC’s enforcement authority to sue for monetary relief.

—BRENT KUGLER, Partner at Scheef & Stone w w w . d i r e c t s e l l i n g n e w s . c o m 1 3

I N D U S T R Y N E W S For full article visit

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News in Brief

DSEF Awards 2020 Doctoral Grants

Arbonne Donates to Youth Organizations

hrough its Flourish Arbonne Foundation, Arbonne International is providing youth organizations across the United States, Canada, Australia and the United Kingdom with monetary support and essential resources to homeless youth. The Foundation has raised $196,500 in donations from the Arbonne community, which Arbonne matched to provide $393,000 in monetary grant funding through the Flourish Arbonne Foundation. Arbonne also donated 40,000 product donation packs made up of Arbonne personal care and nutrition products to these organizations. “The Arbonne community identified the need to give back in a meaningful way and rallied together to aid homeless youths,” said Fabienne Smolinski, senior vice president and chief people officer, Sustainability & Social Impact of Arbonne.

he Direct Selling Education Foundation (DSEF) has announced its 2020 Sales Doctoral Student Grant Program recipients. Molly Ahearne from the University of Georgia and Scott Hachey from the University of Hawai’i at Mānoa were awarded grants that will help Association to Advance Collegiate Schools of Business—accredited doctoral granting institutions build, recruit and retain the next generation of aspiring sales-focused faculty and scholars. “All of us at DSEF congratulate Molly and Scott,” said DSEF Executive Director Gary Huggins. “We recognize the impact the COVID-19 pandemic is having on sales programs across the country and the disruption on education broadly. We are pleased to award doctoral sales grants for a second year running.”

Dr. Fernando Jaramillo, professor and associate dean for Students and Programs, University of Texas at Arlington, and Dr. Greg W. Marshall, Charles Harwood Professor of Marketing and Strategy, Crummer Graduate School of Business at Rollins College, administered the grant program, along with Huggins and DSEF Senior Director of Academic Initiatives, Kimberly Harris Bliton. “Now more than ever, funding for innovative new research on best practices for direct selling is of the utmost importance,” said Marshall. “The DSEF Sales Grant program recognizes and rewards the best of the best of next generation sales scholars whose work can positively impact direct selling practices well into the future.”

Natura &Co Publishes First Annual Report with Avon

atura &Co Holding S.A. has published its 2019 Annual Report, reporting its financial and operational data regarding the fiscal year ended on December 31, 2019. The report was also filed with the U.S. Securities and Exchange Commission. The Form 20-F is available in English on the SEC’s website, on the Brazilian Securities Exchange Commission’s website

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and on the Natura &Co’s website. The translated version into Portuguese of the Form 20-F will be filed shortly with the Brazilian Securities Exchange Commission and made available on the company’s website. The company’s shareholders may request copies of the Form 20-F in the English version, at no cost, directly to Natura &Co’s Investors Relations Office, ri@natura.net.

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Young Living Employees to Work from Home Through 2020

oung Living recently announced employees at the company’s U.S. headquarters will continue working from home through at least the end of this year. The announcement comes out of an abundance of caution as the company continues its efforts to combat the COVID-19 pandemic. More than 1,200 employees at Young Living’s headquarters in Lehi, Utah, have been working from home since March 13, when the company undertook the process of implementing a remote work strategy in response to the COVID-19 pandemic. Since then, the company has seen increases in employee productivity and happiness as workers adjust to their new, more flexible working environments. Notably, the IT department has seen a 25 percent increase in productivity while the sales department has seen a 13 percent increase. The company also estimates that by allowing 95 percent of the global headquarters’ workforce to continue working from home, they will eliminate

20,175 pounds of carbon emissions per day.* Extending working from home through the end of the year, they could potentially eliminate over 3 million pounds of carbon emissions, or the amount of carbon sequestered by 64,700 mature trees. “Prior to the current crisis, I didn’t believe in working from home on a regular basis,” said Jared Turner, president and COO of Young Living. “But seeing the positive impact the additional flexibility has had on our employees, their families and the environment has given me a new perspective. I now believe Young Living can be even more successful and innovative as a work from home company.” Young Living’s U.S. remote employees will continue to work from home until the end of 2020 to help reduce building traffic. Employees who are working on-site will continue to work under enhanced safety measures and practice social distancing. The company continues to evaluate the dynamic COVID-19 situation regularly

and is committed to ensuring the health and safety of all employees as well as of the wider community. Turner penned an opinion piece in the Salt Lake Tribune that further explains Young Living’s work from home extension: “…after weeks of observing my company working remotely, I am proud to say I’m a working-fromhome convert, and I’ll be pushing to keep more employees at home moving forward. Young Living has seen productivity increases across the board, from 25 percent in IT teams to 13 percent in sales teams. My employees exhibit the same proactiveness and creativity they always have; they’re just doing it at a distance (and in boxers). They don’t take naps during meetings or spend their days playing video games— they’re engaged, available and building business value.” *(Based on a 30-mile round trip commute estimate using the Utah Travelwise Emissions calculator.)

J.Hilburn Files for Bankruptcy

ccording to a Dallas Morning News story, custom clothing brand J.Hilburn has filed for Chapter 11 bankruptcy. The company, founded in 2007, is trying to reorganize under the protection of the U.S. Bankruptcy Court in Dallas. The company laid off an undisclosed number of employees at its Dallas headquarters last month. The company said it anticipates no interruptions in business, and all current and future orders will be filled. 1 6 D I R E C T S E L L I N G N E W S |

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“J.Hilburn has a loyal client base. We believe in our stylists, in the growth potential of the men’s custom market, and in the ability of our management team to lead the company to future success,” CEO David DeFeo said in a statement. “Together, the company and our stylists community, along with our loyal clients, will weather this economic turmoil and come out on the other side as a stronger and more successful business.”

Tupperware Commences Cash Tender Offer

upperware Brands Corporation announced the commencement of an offer to purchase for cash up to $175 million aggregate principal amount of its outstanding 4.75 percent Senior Notes due 2021. Approximately $600 million aggregate principal amount of Notes is currently outstanding. “Strengthening our balance sheet is a critical objective for Tupperware and a top priority of the management team,” said Sandra Harris, chief financial officer of Tupperware. “In recent months we have taken swift actions to accelerate cost savings and have increased our turnaround plan commitments in response to COVID-19 and in an effort to maintain compliance with our debt covenants from our recently amended credit agreement. We continue to work proactively with various financial sources and advisors to address our liquidity and cash flow needs ahead of the June 2021 Senior Notes maturity. The tender offer we are announcing is our

first important action in this regard.” The Company reserves the option to accept for payment some or all of the Notes that are validly tendered and not validly withdrawn at or prior to the Early Tender Time on a date promptly after the Early Tender Time (the “Early Acceptance Date”). Holders whose Notes are accepted by the Company for purchase pursuant to the Tender Offer, will also be eligible to receive accrued and unpaid interest on their Notes accepted for purchase, up to, but excluding, the date of payment of the applicable consideration.

Tastefully Simple Celebrating Silver Anniversary

astefully Simple, Inc. is celebrating a major milestone this summer with its 25th birthday. Founder and CEO Jill Blashack-Strahan started the business in 1995 in a shed with no running water in rural Minnesota, packing orders on a pool table. Twenty-five years later, the multimillion-dollar business includes over 60 proprietary food products, meal kits and home entertaining solutions, thousands of sales consultants nationwide and 75 employees working from its Alexandria, Minnesota headquarters. “Tastefully Simple was born out of the idea that people are looking for exceptional, convenient food, which is still relevant today,” said Blashack-Strahan. “The commitment of our team, the entrepreneurial consultants across the country and the consistent appeal of our simple-to-prepare food products and meal planning tools continue to drive our success.” To celebrate the occasion, Tastefully Simple has brought back top-requested products; will host the first-ever online national conference for consultants in late July; launch a

new, enhanced website in August; and offer various client promotions throughout the year. “I’ve been impressed with Tastefully Simple for many years given its ongoing evolution and the passion the team has for the business,” said Joe Mariano, president of the Direct Selling Association. “Over the years, Jill and her team have reinvigorated the business from a traditional direct sales approach to a nationally recognized food and home entertainment solutions business with added direct-toconsumer sale opportunities and legions of loyal followers.”

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Mary Kay Inc. Continues Its Support of Women’s Empowerment

ary Kay Inc. continues its support of female entrepreneurship, empowerment and thought leadership as a premier sponsor for the 2020 International Women’s Forum (IWF) Virtual Cornerstone Conference. Mary Kay participated in a virtual session entitled “A Conversation with TIME’S UP UK” discussing important issues such as #MeToo and how the ensuing TIME’S UP movement has led to re-thinking women’s safety on film and television sets, as well as other industries around the world. Carolyn Passey, general manager of Mary Kay UK and Ireland, will open the session focusing on changes TIME’S UP UK is seeking to implement, navigating the line between personal and professional, and aiding those who frequently find themselves vulnerable and exploited while filming.

“At Mary Kay, we advocate for women’s empowerment and gender equality and we partner with organizations whose mission is to do the same,” said Passey. “Today, as the COVID-19 crisis is exacerbating women’s vulnerabilities and gender inequality, we know trust and safety are more critical than ever for women to thrive. The workplace should be a safe and dignified place for all of us. How can we ensure—and demand— this happens? I look forward to the discussion on the topic with thought leaders from around the world.” Speakers at the session included: Dame Heather Rabbatts, TIME’S UP UK Chair Managing Director of Cove Pictures; Chair of Soho Theatre and non-executive board member for Arts Alliance and Ita O’Brien, the UK’s

leading Intimacy Coordinator and founder of Intimacy on Set. “Now, more than ever, it is crucial to continue the conversation around safe and equal working conditions for women within the entertainment industry and beyond,” said Stephanie O’Keefe, CEO of IWF. “As the world develops a new way to work in the context of COVID-19, I am hopeful that there will be strategies in place to ensure women can re-enter the physical workplace with confidence they will be safe and treated equally. Mary Kay is a long-time supporter of gender equality, and we are thrilled to continue this fight with them to ensure a more genderequal world.”

PrimeMyBody Donates to Frontline Healthcare Workers

hrough a partnership with Donate Beauty, PrimeMyBody has donated $275,000 worth of hempbased skincare products to frontline healthcare professionals working at hospitals in Texas, Louisiana and Kentucky. According to the company, masks and protective facial gear needed by frontline healthcare workers and their patients are causing skin issues when worn for extended periods of time. Trapped heat, humidity, bacteria and the constant contact with abrasive materials are causing rashes, pimples, skin irritations and visible trauma. Long-term glove use and repeated hand washing are leaving healthcare workers with dry, cracked skin and, in some cases, bleeding. 1 8 D I R E C T S E L L I N G N E W S |

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“I’m proud to be donating these skincare products to those that are on the frontlines and hope that they provide even a small sense of normalcy for these amazing warriors,” said PrimeMyBody CEO Paul Rogers. “On behalf of the nurses, doctors and techs of SDMC ER, I’d like to thank PrimeMyBody for their kindness and generosity,” said Samantha Wright of St. David’s Medical Center. “It has changed our drab ‘mask skin’ to fresh and glowy skin.” DSN

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News Impacting Our Channel

Twitter, Square Announce Work from Home Forever Option— What Are the Risks? (Excerpt from Forbes.com by Dana Brownlee.)

ecent announcements that virtually all Twitter and Square employees will have the option to work from home forever sent shock waves through business communities already grappling with the difficult decision of how and when to reopen amid the COVID-19 pandemic. Survey data clearly suggest a momentum towards expanded work from home policies going forward. Google and Facebook have announced plans to permit employees to work from home through 2020. Corporate leaders who find themselves both reveling in the short-term success of forced virtual working while also desperately seeking to reduce operational expenses may be tempted to swing the organizational design pendulum to the extreme and sign up for a near ubiquitous remote working business model. While remote working can absolutely be part of an effective, contemporary organizational design, moving to widespread, long term remote working could in fact be a grave mistake for many. Let’s examine a few of the very real risks. T E A M C U LT U R E A N D C O H E S I O N AT R O P H Y Obviously one of the biggest challenges for remote teams is the uphill battle to build and maintain a sense of team cohesion and camaraderie. It’s important to remember that working remotely with a team that’s been intact for some time is completely different than starting a team from scratch or even onboarding new team members remotely. C OL L A B OR AT ION CH A L L ENGE S A ND PRODUCTIVIT Y LOSS An obvious consequence of physical distance and less frequent contact is the fact that collaboration becomes harder. Consider that for some who might already feel disadvantaged in the workplace (e.g. women, minorities, younger staff, introverts), they may face additional challenges being heard and valued virtually. Furthermore, face time can be absolutely critical for many of these same communities as they seek to expand their networks and gain access to power.

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INF OR M AT ION SE C UR I T Y R ISK Clearly, individual homes are uncontrolled, unsecure environments; therefore, permitting employees to work outside a controlled environment can expose the organization to significant long-term risks. A C C OUN TA BIL I T Y A ND O T HE R PERFORMANCE MANAGEMENT CHALLENGES The truth is that for those amazing, high work ethic, ridiculously responsible employees, they will find a way to be successful wherever they work and accountability won’t be an issue. Admittedly, there are some employees who will be problematic wherever they work, but providing the license to work from home can certainly make a bad situation worse. Other employees may not necessarily be problem children— they may want to perform well and be somewhat competent but just not perform well outside the confines of a more controlled environment. L O N E L I N E S S A N D L O N G E R -T E R M M E N T A L H E A LT H I M P A C T S While many love the convenience of working from home, it can certainly be a bit maddening to spend nearly 24×7 at home, pandemic notwithstanding. Work provides more than work. It’s a part of people’s lifestyle and social network and completely upending that can bring negative consequences. As companies make these difficult decisions, safety and public health guidance should continue to drive decision making. Remote working can be a powerful tool when considered carefully and implemented strategically. The key is using the scalpel approach to organizational redesign, not the chainsaw.

How to Be Productive When Working from Home (Excerpt from Forbes.com by Amway.)

ith the current pandemic forcing millions of people to stay home, it may be even more difficult to look after your family while trying to manage your workload. However, a successful work-life integration is possible with a few tips. STICK WITH YOUR EXISTING ROUTINE TO PROMOTE WELLNESS According to Entrepeneurs.com, “The real power in routines is the way they can help us build momentum, break bad habits, prioritize our lives and make us more efficient.” Here’s how you can integrate your regular routine into your new stay-athome life: • Go to bed and wake up at a consistent time every day • Get dressed and start your typical morning regimen • Check-in with your colleagues as if you were in the office • Don’t just pour a cup of coffee—take a coffee break • Start and end your workday at the same time DE SIGN AT E Y OUR W OR K F R OM HOME L O C AT ION If working from home is new and unfamiliar, you may need to create a separate space to minimize distractions. Digital marketing author Shannon Belew explains, “You’ll want to define a professional work area that separates your business from your personal life whether you’re self-employed or telecommuting. Its location, lighting, and confinement of clutter are all important.” Take these steps to create the perfect home office: • Designate an area strictly for work

• Free your space of distractions. • Purchase office equipment • Keep your workspace organized SET YOUR WORK HOURS While working from home offers a lot of flexibility, it can also interrupt productivity. According to Porch, “More than three-quarters of work-from-home employees watched TV on the clock at least once, and nearly 17 percent reported always doing so.” The next biggest work detractor was doing personal tasks. “Nearly two-thirds of

workers admitted checking items off their personal to-do lists while getting paid. In a similar vein, over 35 percent left home to run errands during working hours.” Set your office hours, and only step away from work during your scheduled breaks or lunchtime in order to stay on task. After your set hours, log off your computer and try to refrain from checking your work email throughout the evening. SCHEDULE BREAKS FOR Y O U R S E L F D U R IN G T HE D AY While it’s important to remain focused during work hours, it can also be beneficial to take short breaks. According to Ferris Jabr, Psychology Today author, “Downtime replenishes the brain’s stores of attention and motivation, encourages productivity

and creativity, and is essential to both achieve our highest levels of performance and simply form stable memories in everyday life.” Successful work-life integration is all about finding the right balance. Block off time on your calendar to take a break USE VIDEO TO CONNECT Use video conferencing to connect with your coworkers. When you’re in a physical office, your colleagues serve as natural motivators. However, meeting over a video chat can have the same effect. According to Vonage’s website, “Having face time matters when it comes to building teams that can work together to effectively accomplish their goals.” Collaborating with others over video is a simple way to build meaningful human interactions—especially if you’ve found that remote work has been hampering your productivity and mental wellbeing. After all, two heads are better than one. CR E AT E P R O CE S SE S F OR C OL L A B OR AT ION A solid process should give everyone the tools needed to deliver their best work from anywhere. Employees should know what is expected of them and what projects are due to avoid confusion or delays. If you don’t have a process that can be used for working remotely, create one. • Set weekly meetings • Document everything • Give regular feedback • Adjust accordingly The key to achieving a successful work-life integration is to find what works best for you. Have confidence in your ability to adapt and try to find a comfortable work-life balance. 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 1

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Executive Announcements

BEATRIZ DÍAZ DE LA FUENTE, Tupperware Chief Human Resources Officer Tupperware Brands Corporation named Beatriz Díaz de la Fuente as the company’s chief human resources officer. Díaz de la Fuente will oversee the company’s complete human resources strategy, including talent management, HR technology systems, leadership development and compensation and benefits. As part of the company’s recent organizational redesign, all human resources functions globally will report directly to Díaz de la Fuente. She will be responsible for leading the company’s culture efforts and establishing a strong framework that facilitates organizational decision-making and future growth “We are focused on building a high-performance organization at Tupperware and Beatriz has the right focus, experience and passion to help our leadership team build a culture focused on employee satisfaction and business success,” said Miguel Fernandez, president and chief executive officer of Tupperware Brands. “I am confident in her ability to implement the right processes, systems and programs that will help us create an environment that attracts, retains and develops the best team to support a strong future for Tupperware.”

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AVON FOUNDATION FOR WOMEN APPOINTS NEW DIRECTORS The Avon Foundation for Women Board is welcoming five new directors to help deliver on its vision to build a better world for women, through women. Together with the existing members, the new directors are already effectively setting the bar high with the Foundation’s newly announced $1 million commitment to help front-line services for victims of genderbased violence during the COVID-19 pandemic. “It’s a new chapter for the Avon Foundation for Women with the appointment of this incredible group of leaders to drive forward on our ambition to help more women around the globe,” said Avon Foundation President Natalie Deacon. “As we look to increase our impact on women’s lives, and work in tandem with Avon’s brand activism strategy, this newly inducted Board of Directors has the knowledge and purpose at heart to provide great contributions.” The new directors are: • Susana Casabe, named Vice President • Christine Jaworsky, named Vice President • Louise Scott, named Vice President • Karina Takovenko, named Vice President • Charyl Zweigbaum, named Treasurer In addition to the new members, the Avon Foundation for Women Board of Directors includes Amy Greene, chairwoman; Natalie Deacon, president; Ginny Edwards, secretary; and Kay Nemoto, vice president. DSN

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I N D U S T R Y N E W S

The State of Direct Selling and Envisioning the Future of the Channel BY BEN GAMSE, Senior Market Research Manager, Direct Selling Association

“D

Assuming there isn’t another shock, we’re already on the path to recovery in terms of GDP, unemployment, and a few other macroeconomic metrics.

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SA’S 2020 GROWTH & OUTLOOK survey reports that the U.S. direct selling channel remained roughly flat (-0.4 percent), achieving $35.2 billion in estimated U.S. retail sales in 2019. To better understand direct selling trends within our rapidly evolving macroeconomic landscape, DSA is conducting extensive research in addition to its standard Growth & Outlook market-sizing survey. For example, DSA’s Coronavirus QuickPulse surveys track the business impact of Coronavirus on a weekly basis, and quarterly DataTracker surveys provide insight into quarterly trends and KPIs. DSA’s Industry Research Committee is analyzing all this survey data, secondary research, and developing key insights and actionable takeaways to include in the 2020 Growth & Outlook Report to be released early this summer. In addition to the standard market-sizing and benchmarking data, this year’s Growth & Outlook reporting has shifted more toward addressing the outlook for the industry and a bit less time looking

backward at market-sizing for the prior year. More specifically, this year’s report will identify the impact Coronavirus is having on the broader economy and retail landscape, and it will envision the future of direct selling by providing a direct selling forecast along with scenario planning and actionable recommendations on how to navigate challenges posed by the pandemic to achieve the upper bounds of the forecast. Before diving further into direct selling insights, here’s some important context about the macroeconomic environment: S TAT E OF T HE US E C ONOM Y In February 2020, Coronavirus shocked the U.S economy into a deep economic slowdown that we haven’t seen since World War II. According to Oxford Economics’ forecast, we won’t see Q4, 2019 levels of GDP until at least mid 2021. The good news is that assuming there isn’t another shock, we’re already on the path to recovery in terms of GDP, unemployment, and a few other macroeconomic metrics. But, it may be a long, swoosh-shaped one.

G D P Q 4 2 0 19 = 10 0

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S TAT E OF R E TA IL We’re continuing to see accelerated effects from American overbuilding brick & mortar retail in the U.S. In fact, the U.S. has the highest retail square footage per person of any country by far.

R E TA IL S Q U A R E F O O TA G E P E R P E R S O N

Regardless of when people will feel comfortable returning to stores, retail footprint will likely contract as consumers shift online:

U . S . E C O MME R C E P E NE T R AT I O N ( % O F R E TA IL S A L E S ) 10 Y E ARS VS. 8 WEEKS

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A survey conducted in April 2020 by Digital Commerce 360 and Bizrate Insights found that 55 percent of online consumers said they were ordering more online than they were before the virus hit, up from 26 percent in March. And 22 percent said in April they were ordering a lot more online, as opposed to only 6 percent in the March survey. There’s evidence that much of the increase in online shopping is from those purchasing online for the first time: ClearSale analyzed April 2020 e-commerce customer data from clients in five of its major markets: the U.S., Canada, Australia, Mexico and Argentina—all countries where some form of lockdowns were in effect. The analysis showed that across all five countries, the average number of brand-new online shoppers rose by 12 percent between March and April.

U . S . D IR E C T R E TA IL S A L E S ( B IL L I O N S )

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I N D U S T R Y N E W S

D IR E C T S E L L IN G R E TA IL S A L E S C AT E G O R Y S H A R E

40% 36.0% Wellness

30% 23.0% Services

20%

16.0% Home & family care/durables 15.1% Personal care

10%

7.2% Clothing & accessories 2.7% Leisure & educational

2014

2015

2016

2017

S TAT E OF DIR E C T SE L L ING Before envisioning the future of the direct selling channel, it’s important we understand historical data to establish a common foundation for where we were before Coronavirus hit and we can better understand its impact. Here’s what we can learn from Growth & Outlook data:

IN A TURBULENT WORLD, DIRECT SELLING REMAINS STEADY AND MAINTAINS RELEVANCE. In the last four years, direct selling retail sales have remained steady, hovering around $35 billion in retail sales in the U.S. Considering the dramatic increase in competition from ecommerce giants and the rise of the gig economy, maintaining stability can be seen as a positive. Although at the same time of course there is room for significant growth.

CONSUMERS CONTINUE TO ENJOY PRODUCTS AND SERVICES OFFERED THROUGH DIRECT SELLING. According to the DSA-Ipsos 2020 Consumer Attitudes & Entrepreneurship Study, perceptions toward direct selling have remained stable at about 80 percent over the last 10 years. Most consumers find value/appeal in the good 2 8 D I R E C T S E L L I N G N E W S |

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2018

2019

feeling of supporting a small business (69 percent) and the personalized service (67 percent) that direct sellers provide. The wellness and service categories within direct selling continue to be the largest and experienced the most growth.

AMERICANS ARE SEEKING ENTREPRENEURIAL, SUPPLEMENTAL INCOME-EARNING OPPORTUNITIES. The Growth and Outlook Survey results continue to provide new clarity into who direct sellers and their customers are. There were 6.8 million direct sellers in 2019, a 9.9 percent increase from the prior year. 87 percent of direct sellers (5.9 million) are part-time. This overall salesforce increase may continue to be an effect of industry segmentation. There were also more than 36.9 million direct selling customers in 2019. (This customer count excludes customers that have not signed an agreement with direct selling companies.)

THERE’S EVIDENCE THAT DIRECT SELLING IS RECESSION RESISTANT AND RESILIENT TO EXTERNAL ECONOMIC SHOCKS.

U . S . D IR E C T R E TA IL S A L E S

Historical DSA Growth & Outlook Survey data shows that direct selling has had a long, steady growth trajectory. Although direct selling is not recessionproof, there is evidence that it is recession resistant, having experienced growth during two of the three most recent recessions (see grey boxes above). Although consumer spending and confidence decrease during recessions, there’s generally an increased demand for part-time supplemental income, which works in direct selling’s favor. Mark Menatti, Director of Business Intelligence at USANA and co-chair of the WFDSA Global Research Subcommittee, is working with the Research Committee to develop a model to better understand the relationship between macroeconomic factors and direct selling. “In short, a strong economy is better for the industry overall because product demand appears to be the largest driver of activity, by far. Additionally, since many of us operate in the premium price space, a strong economy allows more people to buy from us rather than purchase lower cost substitutes. The side gig effect is real also and allows us a measure of stability during tougher economies, but it is the weaker of the two effects.”

“

The wellness and service categories within direct selling continue to be the largest and experienced the most growth.

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ME S S A G IN G T O P O T E N T I A L E N T R E P R E NE UR S T H R O U G H O U R A N A LY S I S W E ID E N T IF IE D 4 M E S S A G E S T H AT W IL L H AV E T H E B E S T R E A C H . . .

FUTURE OF DIRECT SELLING “There are several positive trends in the U.S. in the direct selling channel,” says Monica Wood, Vice President, Global Consumer and Member Insights at Herbalife Nutrition, and Chair of DSA’s Industry Research Committee. “In the short-term, we’re seeing growth as companies have adapted to the changing environment by going virtual. Direct selling companies have been nimble and responsive to evolving consumer needs and providing aspiring entrepreneurs a source of supplemental income.” DSA’s 2020 Growth & Outlook Report will have a detailed forecast with several inputs along with scenario planning. That said, there’s a limit to the usefulness of trying to predict the future. The most useful part of this forecast is not how to predict the future but in helping us become stronger regardless of what the future holds. We encourage you to address how you can make yourself stronger and learn how to thrive when experiencing disorder and volatility HOW TO MAKE DIRECT SELLING ANTIFRAG ILE ? According to Nassim Nicholas Taleb, in his book Antifragile, “The resilient is neither harmed nor helped by volatility and disorder, while the antifragile benefits from them.” With the likelihood of continued volatility and disorder caused by Coronavirus, civil unrest, and other world events, how can 3 0 D I R E C T S E L L I N G N E W S |

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direct selling move from being resilient to antifragile? Here are some possibilities to consider:

MAINTAINING RELEVANCE AMONG FUTURE GENERATIONS. According to Josh Miller, Director of Gen Z Studies at XYZ University, after being the first generation to be completely digitally-native and spending so much time behind screens, Gen Z craves authentic, face-to-face interactions. Establishing these authentic, human connections with members of Gen Z is something direct selling companies are well-positioned to excel in, especially as the U.S. economy reopens.

IMPROVING DIGITAL TOOLS. A theme that emerged from DSA’s QuickPulse surveys are the quick, nimble adoptions of digital tools to create online parties, virtual conferences and Zoom trainings.

BEING WHERE YOUR CUSTOMERS ARE: [Become customer centric, and consistently adapt to consumers’ shifting behaviors. [With shoppers increasingly online and becoming more comfortable with shopping online, continue to pose buying opportunities where your consumers are, whether it’s your own ecommerce/mobile commerce

Lessons from the Lockdown platforms or social media. As COO of Shopify said, “Multichannel is not a strategy. The strategy is to sell where your customers are.”

E F

BEING ADAPTIVE TO LONG-TERM CONSUMER BEHAVIOR SHIFTS in the face of product delays/ shortages and normal shopping habits being disrupted. According to Natasha Stevens, Executive Vice President Strategy and Product Innovation at GfK, one fourth of consumers have tried at least one brand they’ll stick with after the pandemic is over. “Accidental trial leads to repeat buying.” According to Stevens, the following lead to the highest social media engagement: • Brands that acknowledge the reality of the current state with authenticity and transparency resonate and drive engagement • Brands that practice empathy and understanding to the specific brand purpose has been able to foster a connection to the target audience • Throughout the many phases we’ve been through since March, there continues to be receptivity of product and service promotions especially when precise targeting is used to reach a certain target audience. But it’s important to be mindful and have the data to know that you’re reaching your desired target audience. SETTING REALISTIC EXPECTATIONS—people are looking for good products and opportunities to make supplemental income. There’s no need to over-promise, as direct selling offers both. USING MESSAGE TESTING INSIGHTS FROM DSA-IPSOS 2020 CONSUMER ATTITUDES & ENTREPRENEURSHIP STUDY to appeal to prospective direct sellers in an effective, ethical way. According to the message testing from the study, combining the four messages can boost your marketing efforts and reach 84 percent of your target audience. 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 1

A Free Resource for Direct Selling Executives

There’s nothing normal about our new norms. Direct selling was already changing at a breakneck pace. Now, not only have those changes accelerated, but everything we had planned for needs to be recalibrated, or scrapped entirely. There’s no best practices to refer to. No proven method to follow. We’re all facing uncharted territory.

What’s the Best Next Step When You Don’t Have a Map? We’re creating and collecting some of the most timely insights from within the direct selling channel, and making it all available in our Lessons from the Lockdown section on our website. Articles, surveys, examples and even interviews … you’ll find it all at StrategicChoicePartners.com/lockdown. Whether you’re surging into double digit growth or screeching to an unprecedented halt, we can help.

Tap into Lessons from the Lockdown now at StrategicChoicePartners.com/lockdown

I N D U S T R Y N E W S

Financial Analysis Possible Inflection Point for Direct Selling Index; Recent Top-Line Deceleration Reversing BY DOUGLAS LANE

“

The COVID-19 outbreak has brought to bear two additional advantages for many of our direct sellers vis a vis the GIG players that are unique to the pandemic.

ne data point does not a trend make, but in a sharp reversal, our proprietary index of the publicly traded direct stocks has sharply outperformed the broader market as measured by the S&P 500 index through the first two months of the 2020 Q2. Through May 31, the quarter-to-date performance of our index is up a large +59.4 percent versus the +17.8 percent gain in the S&P 500 over that period. To be sure, the index is coming off of record low valuations in March. From its recent peak in September 2018, our index had fallen (58.3 percent) through March 2020. While the earnings outlook for the group had declined (15.2 percent) over that time, the real driver to the dramatic stock under-performance was that the multiple that the stock market applied to those expected earnings dropped from 20.4x in September 2018 to 10.3x as of March 2020.

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To put that in context, in the 20+ years that we have been tracking the group, it only traded at a lower multiple on expected earnings twice before. The first time was during the tech bubble in early 2000 when investors were selling anything that wasn’t technology, media or telecom (TMT) to chase those stocks, and the second time was during the Great Recession of late 2008 / early 2009 when the discount rate on stocks with large global exposures, which these companies tend to have, went through the roof. This time, it was the large exposure to China, as the media and regulatory environment soured for the group there in 2019, which then rolled into added uncertainties surrounding the coronavirus pandemic over the winter of 2019-2020 that drove valuations for the group back to the lower end of historical ranges.

Year-to-date, our Direct Selling index is down (1.9 percent), slightly outpacing the (5.8 percent) declines in the S&P 500 through the end of May. Interestingly, the P/E ratio for the group has merely returned to be close to 2019 year-end levels at 15.1x, while the P/E ratio for the S&P 500 has expanded to 22.1x from 18.3x despite the drop in the level of the index due to the sharply reduced outlook for market’s earnings expectations. So far this year, expected earnings for the S&P 500 have declined (21.8 percent), while for our index, they have only declined (2.1 percent). Therefore, given that the P/E ratio for our index is at a 31 percent discount to the market, very close to 10-year lows, at a time where relative earnings are holding up better, we could see stock outperformance being sustained and that we truly are at an inflection point.

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…we definitely saw a pickup in some of these products that were designed to support immune function…

C O V ID-19 OU T BRE A K F L E SHE S OU T T W O A D VA N TA G E S F O R M A N Y D I R E C T S E L L E R S VS. THE GIG ECONOMY Throughout our Battle for the Side Hustle series, we have been highlighting many of the similarities and differences between the direct selling business model and the models put forth by the recently emerging GIG players, which also offer microentrepreneurial platforms for individuals to earn income while providing workplace flexibility. But the COVID-19 outbreak has brought to bear two additional advantages for many of our direct sellers vis a vis the GIG players that are unique to the pandemic: 1) its directto-consumer business model where products are shipped directly to the end customer without social interaction and 2) the fact that many of the larger direct sellers have nutritional product offerings, demand for which have only escalated with the global health care crisis. Below is some commentary from recent quarterly conference calls. So, for example—in a lot of countries, we’ve seen an increase in the immunity portion of our portfolio for those particular products as people start thinking about staying healthy…

—Doug Hekking – USANA CFO

We also experienced stronger-than-anticipated demand for our nutrition supplements… —Ritch Wood – Nu Skin CEO

…our business model, our route to market, our healthy product portfolio, our specific immunity products, and our direct sales to consumers and direct delivery to consumer homes couldn’t be more opportune. —Gregory Gould – New Age Beverages (Noni) CFO

To be sure, the greatest adverse impact from the global pandemic will likely come in the Q2; Herbalife Nutrition has already stated that its April Volume Points were down (1 percent), which is a deceleration from Q1 trends, although in our view it was very good performance under the circumstances. Additionally, there are added compliance issues as companies make sure that there are no unfounded claims being spread by distributors with regard to the

—Alex Amezquita – Herbalife Nutrition SVP Finance Strategy and IR

EXHIBIT 1: YEAR-OVER-YEAR ORGANIC SALES GROWTH LAST 9 QUARTERS 120% 100% 80% 60% 40% 20% 0% -20% -40%

HLF 1Q 2018

2Q 2018

MED 3Q 2018

4Q 2018

Source: Company reports, Lane Research estimates. Group Average is equal weighted. MED data is for Optavia only.

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NUS 1Q 2019

2Q 2019

USNA 3Q 2019

4Q 2019

GROUP AVG 1Q 2020

pandemic; the FTC very quickly sent out warning letters to 10 Direct Sellers (none mentioned here) warning them of potentially improper product and business opportunity claims surrounding the coronavirus. Meanwhile, the larger GIG Economy players have been hit hard by social distancing guidelines. Ride-share concepts Uber & Lyft announced large COVID-19 related layoffs in May, and the property-share concepts Airbnb and Vrbo have been decimated by cancellations and as customers also fume about refund policies. Conversely, after initial declines as its corporate lunch delivery business dried up with the move to work from home, GrubHub has seen a net tailwind from COVID-19 with restaurants moving to take-out service only and as consumers shelter in place. The impending shakeout in the foodservice industry remains a wildcard as restaurants begin to either re-open for in-house service or simply close permanently due to the financial stress of being closed for several months and then not being able to maximize their eat-in capacity.

note that our earnings forecasts already assume very conservative assumptions for Q2 results. Since on balance estimates either stayed the same or went up following the Q1 reporting cycle, we believe that the market and our estimates are adequately conservative in Q2 expectations. The key drivers behind our positive outlook for our Direct Selling Index in the 2020 2H are: a) the landscape in China has reversed over the past year to now being quite favorable for the nutrition names there b) the names in our index each offer wellness products, which should continue to be quite attractive during the current global health care crisis, and c) the micro-entrepreneurial opportunity offered by these platforms should become increasingly attractive as we enter a global recession and potentially witness unprecedented unemployment rates Therefore, we believe we could very well be in the early days of the next sustained period of outperformance for the group. DSN

Q1 ORGANIC SALES GROW TH SHOWS S E Q U E N T I A L I M P R O V E M E N T, REVERSING RECENT TRENDS That being said, we do expect a deceleration in Q2 results as the companies report their first full quarter under the new COVID-19 normal. However, we are inclined to look through that and focus on the resumption of improving growth trends in the 2020 second half, and we

Friends, Colleagues and Clients … We extend our best wishes to you and your families for 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, FOLLOWING THE STOCKS OF THE LARGER, PUBLICLY TRADED COMPANIES AND PROVIDING CONSULTING SERVICES TO COMPANIES WHOSE STOCKS ARE NOT FOLLOWED. HE CAN BE REACHED AT DOUG@ LANERES.COM.

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.

good health and your company’s continued success. Our world is changing. The workplace is reinvented. The consumer landscape is transformed. Yet, the need for top talent remains, even more so today! We stand ready to share our experience and insights as you pursue the new search opportunities ahead.

Michele McDonough 760.771.5661

Kate Gardner 214.908.7570

KateandMichele@C3ExecutiveSearch.com

McDonough & Gardner DSA Supplier Members

C3ExecutiveSearch.com

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F O R W A R D T H I N K I N G

VIDEO CONFERENCING

Google Meet, Facebook Messenger Rooms Aim to Rival Zoom.

HE CORONAVIRUS pandemic is not only changing the way we socialize and connect with each other it’s changing the way we conduct business. Government officials, schools, and even the entire NFL Draft quickly shifted to online video conferences. One of the core characteristics of the direct sales industry is the ability to adjust and adapt quickly. In-person business presentations, home parties and hotel meeting rooms have been replaced by digital video. While video conferencing is certainly nothing new in the industry, it has quickly become a necessity and has even been a critical growth factor for many companies this past spring. SUCCESS Partners surveyed more than 50 direct selling companies reveling intriguing growth from March to April. Ten companies achieved all-time record revenue in April, 32 percent surveyed revealed single-digit growth, and 48 percent grew by double digits. Among the major growth factors were embracing communication tools, utilizing technologies, and the success of virtual events. Virtual meetings and video conferencing have skyrocketed to an all-time high during the pandemic. Zoom is still the most widely used platform, but tech giants Google and Facebook are rolling out new video conference capabilities to capture a larger piece of the booming market. Google Meet and Facebook Messenger Rooms could give direct sellers and corporate teams more options, features, mobility and flexibility.

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T HE Z OOM B OOM First, let’s look at the record numbers for Zoom and the announcements the company made at the end of April in a blog post. The platform surpassed 300 million daily participants (including people using the platform multiple times per day). “Zoom’s revenue surged 88 percent in fiscal 2020,” according to a report by The Motley Fool. The company also detailed the rollout of Zoom 5.0 after taking heat for multiple privacy breaches of uninvited attendees disrupting meetings, which has been dubbed “Zoombombing.” Zoom 5.0 features 256-Bit GCM Encryption, which “provides more protection for meeting data and greater resistance to tampering,” according to the announcement. As of May 30, all Zoom customers will have switched to the new cryptographic mode. Meeting hosts can now report users to Zoom’s Trust & Safety team that will review possible misuse. The feature will appear within the Security icon inmeeting controls. Zoom 5.0 also features passwords by default to help prevent unwanted attendees from popping into meetings.

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RECORDING

Factors for Choosing the Right

Video Conferencing Platform

TYPES OF MEETINGS

Depending on your purpose— different meetings and rooms can be created for open Q&As that involve attendee interaction, presentations or on-screen tutorials.

INTEGRATION This is an increasingly important issue for both direct selling corporate teams and the distributor field. Seamlessly connecting with applications such as Facebook allows you to broadcast on both platforms. Presentation tools such as Microsoft PowerPoint and scheduling applications such as Outlook or Google Calendar can also be crucial to the overall experience and success of your video conference.

NUMBER OF PARTICIPANTS This is critical for determining the purpose of your conferences. You may need to update a small team or present to more than 100 people. This can also affect the cost and the length of meetings. Typically, free services are limited to 30 to 60 minutes for multiple participants, or unlimited for one-on-one meetings.

MEE T ING G OOGL E MEE T In late April, Google announced that Google Meet would be available for free to anyone with a Google account. Previously limited to the company’s G Suite platform for businesses, organizations and schools, Google Meet has boomed to more than 100 million daily users during the coronavirus pandemic. From January through April, the platform’s peak daily usage grew by 30 times and was adding roughly 3 million new users per day. The web-based platform (meet.google.com) also has a mobile app. Anyone with a Google account can create a meeting and invite others with a Google account to join. Meeting time limits of 60 minutes will not be enforced until after Sept. 30. “We’ve invested years in making Meet a secure and reliable video conferencing solution that’s trusted by schools, 3 8 D I R E C T S E L L I N G N E W S |

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Saving a quality recording can be important, depending on your goals. Recording a presentation, training, tutorial, interview or meeting can be valuable to use as future content and for those who missed the live video conference. Recordings can be edited into short videos, Q&As, or transcribed into written content.

MOBILE EXPERIENCE Mobile experience: Yes, most of us have been stuck at home for a while, but the on-the-go aspect of direct sales will still be a core attribute well into the future. So, test out the platform on tablets and smartphones, but make sure it still has a desktop version.

governments and enterprises around the world. In recent months, we’ve accelerated the release of top-requested features to make it even more helpful,” Google said in the April announcement. “Anyone with an email address can sign up for Meet and enjoy many of the same features available to our business and education users, such as simple scheduling and screen sharing, real-time captions, and layouts that adapt to your preference, including an expanded tiled view.” Google Meet was to be rolled out through May. It also will seamlessly integrate with Gmail or Google Calendar. For existing G Suite customers, Google announced G Suite Essentials at no additional charge through Sept. 30. It includes advanced features such as dial-in phone numbers, larger meetings and meeting recording. G Suite Essentials also includes Google Drive, allowing organizations easy access to team content on Docs, Sheets and Slides.

To address privacy and security concerns, Google detailed some built-in safety measures: 4 Host controls include the ability to admit or deny entry to a meeting, and mute or remove participants. 4 Anonymous users (people without a Google Account) cannot join meetings created by individual accounts. 4 Video meetings are encrypted in transit, and all recordings stored in Google Drive are encrypted in transit and at rest. 4 Mobile users can use a dedicated Google Meet app (Apple App Store and Google Play Store). 4 Meet data is not used for advertising, and Google says it won’t sell your data to third parties. T HE F L E X IBIL I T Y OF FA CEB OOK ME S SENGER ROOMS Expanding on Facebook’s messenger and video chat features, the social platform is launching Facebook Messenger Rooms to connect people through a seamless video conferencing experience. The goal is to create more flexibility and mobility without the need to schedule meetings, although meeting room creators can do that, too. It is available to anyone, even if they don’t have a Facebook account. Facebook Messenger Rooms do not have time limits, and users can invite up to 50 people to join. Rooms can be public or private, and privacy settings include the ability to control who sees the room as well as the ability to lock or unlock the room. For example, if the room is unlocked, anyone with the room link or who sees the open room on their news feed can join the video chat. Trays showing active rooms will appear at the top of Facebook news feeds (Similar to Facebook Stories) so anyone

can jump in and out of open, public rooms. Rooms can be shared to your News Feed, Groups and Events. Locked rooms will require an invite. For now, there is no recording or screen share feature, which can be vital for certain types of meetings. Facebook says that more than 700 million accounts use Facebook Messenger and Facebook-owned WhatsApp to conduct voice and video calls every day. The number of calls has more than doubled since the coronavirus pandemic began in March. Facebook plans for similar Rooms to be created from Instagram Direct, WhatsApp and Portal. Future features will include augmented reality camera filters and interchangeable backgrounds. HO W T O CR E AT E A FA CEB OOK ME S SENGER ROOM From the Messenger app: 1. Open the Messenger app. 2. Tap the People tab at the bottom right of the screen. 3. Tap “Create a Room.” 4. Select the people who you want to join. 5. Click “Share Link” if you want to send the room link outside of Facebook (text, email, etc.) From the Facebook app: 1. Tap “Create Room” on the bar at the top of your news feed. 2. Select who has access to the room (all your friends, or you can invite specific people). 3. Tap “Create a Room.” 4. Click “Share Link” if you want to send the room link outside of Facebook (text, email, etc.) 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 9

F O R W A R D T H I N K I N G

MUST READS REINVENT YOUR BUSINESS MODEL: HOW TO SEIZE THE WHITE SPACE FOR TRANSFORMATIVE GROWTH By Mark W. Johnson (Harvard Business Review Press, 2018)

n his pioneering book Seizing the White Space, Mark W. Johnson argued that business model innovation is the most proven path to transformational growth. Since writing Seizing the White Space, Uber, Airbnb, and other startups have disrupted whole industries; incumbents such as Blockbuster, Sears, Toys “R” Us, and BlackBerry have fallen by the wayside; and digital transformation has become one of the business world’s hottest (and least understood) slogans. Nearly a decade later, the art and science of business model innovation is more relevant than ever.

In this revised, updated, and newly titled edition, Johnson provides an eminently practical framework for understanding how a business model actually works. Identifying its four fundamental building blocks, he lays out a structured and repeatable process for reinventing an existing business model or creating a new one and then incubating and scaling it into a profitable and thriving enterprise.

LEADERSHIP STRATEGY AND TACTICS By Jocko Willink (St. Martin’s Press, 2019)

t can be strongly argued that leadership is the most complex of all human endeavors. While there are books that provide leadership lessons, there has not existed—until now—a field manual type of leadership book providing direct, situational, pragmatic and how to hands-on skills that anyone can instantly put to use. Bestselling author Jocko Willink helps fill the void and offers guidance and advice for leaders on many topics.

TAKE CONTROL OF YOUR LIFE: HOW TO SILENCE FEAR AND WIN THE MENTAL GAME

HAVE A LISTEN

By Mel Robbins

el Robbins is back! The international best-selling phenomenon and creator of The Five Second Rule and Kick Ass with Mel Robbins returns to help you tackle the single biggest obstacle: fear. This life-changing Audible Original features a powerful mix of one-on-one life-coaching sessions and a personal narrative with vital take-aways that you can start using immediately. 4 0 D I R E C T S E L L I N G N E W S |

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With humor and wisdom, Mel Robbins expertly tackles the fear of change, rejection, and being alone as well as the impostor syndrome and feeling trapped in the wrong career. In these times of high anxiety, it’s easy to feel overwhelmed. If you want the tools to break free from fear and live to your fullest potential, this is a must listen. DSN

A boutique investment banking, business development and corporate finance advisory firm with a primary focus on the direct selling vertical.

Stuart Johnson, the Founder and Chief Executive Officer of SUCCESS Partners and Direct Selling News, is a cofounder of the new firm. Transformation Capital’s experience and relationships are unmatched within the direct selling community.

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Visit us on the web at: www.transformationcap.com or contact our partners directly as follows: info@transformationcap.com | 214-308-6020

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SIX COMMON D E N O MIN AT O R S OF GROWING DIREC T SELLING C OMPA NIE S 4 2 D I R E C T S E L L I N G N E W S |

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ivot — 2020’s defining

word and a silver lining in troubling times. As individuals and

Companies focusing on high-quality products, customer acquisition and retention are outperforming those that are more opportunity focused. —STUART JOHNSON, SUCCESS Partners Founder & CEO

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businesses absorb the culture shock and changes associated with living and working through a pandemic, they face new obstacles that require novel solutions. But from crisis arises great opportunity for the flexible and committed. We’ve watched pivot’s success as medical personnel—regardless of specialty and sometimes emerging from retirement—wage war on COVID- 19. Educators partner with parents to keep students learning digitally. Shuttered restaurants morph into curbside mini markets. Zoom hosts at-home happy hours. Order online, pay online, contact-free delivery… the stuff of life arrives at the doorstep. While essential workers remain on the job (Everyone is grateful!), millions modify their expectations of what work looks like carving out semi-quiet corners at home. But tens of millions lost jobs, either temporarily or permanently, due to the COVID-19 pandemic and grasp for financial relief through unemployment benefits. Facing an increasingly digital existence amid rolling stay-at-home orders and staggered re-openings, people and companies are reassessing, asking new questions and looking for innovative life and work solutions. All the while, working from home is legit. This puts direct selling—an industry grounded in the home office—in a unique position to capture this moment. Doing so depends on a company’s ability to pivot to remote customer and distributor acquisition and retention.

An enormous supply of displaced, extroverted, retail salespeople, who need to replace or supplement lost income, exists. Direct selling can be their solution if companies see the disruption caused by the pandemic as an opportunity to pivot to a new 2020 model that embraces the convergence of technology and relationships. For the past three months SUCCESS Partners has been conducting a monthly survey with 60 leading direct selling companies gauging their month-overmonth growth. As of this printing, their results for May 2020 (compared to April 2020) showed the following: n At least 10 companies achieved all-time record monthly revenue in May n 28 percent remained flat or declined n 12 percent showed single-digit growth n 60 percent grew by double-digits or more “Companies focusing on high-quality products, customer acquisition and retention are outperforming those that are more opportunity focused,” says Stuart Johnson, SUCCESS Partners founder and CEO. And digging a bit deeper tells us why. Six common denominators emerged that helped growing direct selling companies locate a silver lining despite a world in crisis. It’s important to note, these companies had a head start culturally, technologically, etc. but it’s not too late for others to pivot in the right direction.

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HERO PRODUCTS What consumers are buying has changed since nonessential retailers shut their doors. In early May, GeekWire reported tax automation startup Avalara found overall U.S. spending relatively flat. But winners and losers emerged. Sports equipment suffered, but home fitness soared 210 percent. School vendors dropped 73 percent, but home learning increased by 209 percent. Online marketing, online pharmacies, home office, health supplements, and cleaning products saw gains. Consumers are looking for products that work and get their new jobs done in this 2020 world. For Direct Sellers, this translates well for on-brand, hero products that fill marketplace niches and produce tangible benefits. Hero products with proprietary formulas and high efficacy rates sample well among consumers and sell even in times of crisis. More than discretionary purchases to help a friend with a side hustle, hero products generate repeat transactions. They build loyalty, strengthen brand association, and improve customer experience. Of the companies that SUCCESS Partners surveyed, the fastest-growing offer weight loss and nutritional products, which jibes with Avalara’s findings. People have time and motivation to boost their immune systems, shed unwanted pounds, and generally improve their health. They look to trusted brands for help. “Off-the-shelf generic is just off-the-shelf generic, and right now, that heightened awareness makes me more willing to pay for something that looks like it’s got a higher quality or higher efficacy factor,” says Noah Westerlund, senior vice president of business development, SUCCESS Partners.

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MARKETING WITH PURPOSE In some locales, scarcity plays a role in consumer purchases. Think household disinfectants, soaps and toilet paper. But something more is at play in consumer spending decisions. Big Red Rooster, a brand experience company owned by real estate services firm JLL, reports shopping local is top-of-mind for consumers right now. We want our favorite ice cream parlors, olive oil specialty shops and consignment boutiques alive and well at the end of this. We’re even tipping people more than normal, one April survey suggested. 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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Consumers empathize with their neighbors and want to help their neighborhoods. It’s not a stretch to believe this inclination extends to direct selling’s independent distributors, especially those whose products and brands are marketed with meaning and purpose. All the hard work to finesse core values, fold them into your branding and effectively communicate your corporate purpose will set companies ahead of the game during crisis. The 2020 pandemic amplifies that effect from both product marketing and corporate brand marketing perspectives. While weight loss and nutrition sales are accelerating, Westerlund says, “No one is marketing specifically to the COVID situation. But with general awareness at a heightened level and the availability, that’s a match made in heaven for these companies.” Direct selling companies are tapping into the hearts of their cultures, connecting with existing nonprofits and leaning on their strengths to make a difference. Consumers want to buy from brands that are sensitive to the crisis at hand, as well as people’s health and safety. It makes them feel better about their choices. Young Living focused on refugee camps and sent $100,000 to the International Rescue Committee. With monetary and product donations totaling half a million dollars worldwide, USANA also teamed with a Utah vineyard to manufacture 28,000 bottles of hand sanitizer and donate them to regional medical and shipping centers, as well as the Navajo Nation. And through monetary, product and distribution support, Mary Kay donated $10 million to help slow the spread of Coronavirus. These gifts impact not only the recipients but the companies and brands who give. “Companies that lead with the value and causes that define them are finding higher levels of engagement and excitement,” Johnson says. 4 6 D I R E C T S E L L I N G N E W S |

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DIGI TA L DE P L O Y ME N T Retail sales were bleak in March and April, plummeting to 8.3 percent and 16.4 percent, respectively, according to the U.S. Census Bureau, May 15, 2020, advance monthly retail trade report. Coronavirus froze out traditional retailers—a drop of 73 percent for off-line retailers by Avalara’s count. Consumer spending didn’t disappear. It shifted digital. Companies who grew were poised to fill consumer needs online. Direct selling’s highest growth companies had digital deployment strategies up and running to clear social distancing hurdles and capitalize on captive audiences, flush with time and ready to pay attention. Efficient online customer acquisition, distributor recruitment and retention platforms accelerated growth. Young companies created with this convergence of technology and relationships in mind had the advantage over traditional shoulder-to-shoulder efforts. Digital platforms eliminate the need and risk of in-person contact because mobile apps simplify sharing, sampling, prospecting, following up and connecting people in digital conversations. The right functionality and features communicate, connect and convert customers and distributors alike. SUCCESS Partner’s NOW app is one such e-commerce game-changer. Westerlund says, “It focuses on the connection between distributor and customer. All of our marketing automation and drip campaigns are driven back through the distributor so that personal connection is always first.” “I don’t see the industry ever going back to the oldschool way of building. It’s not because people don’t enjoy getting around people. That will always be a part of it. It’s because we found out we can do this in a much more efficient manner and a lot cheaper,” says Andy McWilliams, CEO, RevitalU. “What’s great about this technology and these programs is they aren’t necessarily difficult to spin up from an operational and technology standpoint,” Westerlund says. “But you’ve got to look at how it plays within the compensation plan. How does it play with our culture as a whole? Are we going to be able to fit this in, or will it be at odds with all that?” Cultural aspects of this pivot take more time, but the pandemic affords people time.

“

Low cost. High ROI.

I don’t see the industry ever going back to the old‑school way of building…because we found out we can do this in a much more efficient manner and a lot cheaper.

4 #4

This is NetSuite: Transform Shatter your limitations with the game-changing solution built specifically for distributors. Engage Meet your customers everywhere through the power of omnichannel commerce. Modernize Leapfrog your competitors with technologies built for 21st century businesses.

— ANDY MCWILLIAMS, RevitalU CEO

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COMMUNIT Y & CONNECTION Sing praises to technology! The final three common denominators rely heavily on it. Growing companies excel at creatively bringing people and messages together. Social distancing, by its definition, is isolating, and for good reason. But loneliness creeps in when we’re deprived of human-to-human contact. Maybe you’ve seen the online meme asking introverts to check on their extroverted friends? All people need connection, recognition, purpose and community, especially now. McWilliams goes live on Facebook from home daily. “Is there a way we can help and bless them? Something we can do to fill a gap that may or may not have anything to do with making TAGLINED money? No matter what,USAGE we do itOF because it’s the right LOGOS thing to do,” he says. The tagline "AUDIT.TAX.ADVISORY" MONAT Founder Lu Urdaneta group only accompanies facilitates the logo in circumstances where context requires virtual hugs via Zoom and powers live every clarification aboutup what Squire can do for current and potential customers Wednesday to talk to distributors about routines, (the audience). daily calls to action forFor team members, tips for staying example, Squire.com and its subsequent web pages feature the onesane during quarantine, and practicing gratitude. tagline version (HIGHER PERSPECTIVE ONLY) of the Squire Noonday Collection hosts light-hearted Zoom logo because the subpage content throughout the siteaprovides adequate and Facebook Live events offering respite from context to visitors. quarantine boredom, product giveaways, and stories On the other hand, if the team attends from C-suite execs, artisans distributors. a nationaland 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.”

Treat the secondary tagline like it’s part of the logo but secondary in focus to

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One-tagline version of full color logo

Secondary-tagline version of full color logo

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netsuite.squire.com ( 801) 225-6900

AUDIT · TAX · ADVISORY

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Compelling, uplifting stories push aside fear and anxiety to make room for hope, belief and gratitude. Now is not the time to peddle a side hustle. Instead, help your people combat isolation. “That’s a huge part of our industry that can really help the world right now. I don’t think enough people are recognizing that,” McWilliams says.

5 #5

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VIRTUAL EVENTS TO REMEMBER As Coronavirus challenges conventional corporate events, companies pivot to the virtual world. They’ve embraced aggressive virtual meeting schedules to give people structure, something to look forward to and plug into easily. Virtual novices need not worry. Forgiveness is yours now as people soak up behind-the-scenes authenticity. It affords newcomers time to learn through challenges and create positive experiences. Here are tips to get the most from virtual events, according to EventMB, an online events industry trend resource and part of Skift. } Offer an introductory tutorial video to participants } Provide incentives to engage online } Unite behind a common purpose

Total Life Changes turned to Zoom for training and to recap of a Free to Join promotion. USANA hosted Zoom speaker events and shared short pandemicrelated videos about combating loneliness, and on meditation, mindset and selling over the phone. Scentsy busted out the fun with imaginative socially-distanced Zoom home parties. One energetic and costumed consultant spoofed Sherlock Holmes during a scavenger hunt party, still others played Zoom Bingo. Both kept orders flowing and added some silly to a stressful time. As the pandemic drags on, companies likely face replacing large-scale, in-person events with virtual ones. When that happens, EventMB says at cancellation announce the virtual event simultaneously, then get creative and deliver value in a virtual format. Try using digital live scribing with an illustrator to punch up entertainment value and takeaways from panel discussions. Host live games or competitions with product demos, then draw people to social media pages for the winners. Look at creating immersive environments to replace traditional convention settings. Virtual conferences can host a networking lounge for attendees to chat and interact, and musicians jump at the chance to entertain virtually. 4 8 D I R E C T S E L L I N G N E W S |

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Westerlund says the benefits of pivoting virtual can be immediately tangible, as one direct selling CEO recently found with a quarterly virtual event. The result: 2-3 times the attendance and 3-4 times the buying. Attendee overhead was nil, so they spent on product. While direct selling companies have lamented the ROI of conventions for some time, the pandemic may be a tipping point. “What happens when it goes back to ‘normal’? Are people still going to be as excited about the virtual event, or are they just excited about them right now because that’s all you can do?” Westerlund asks. “That question lingers. But here’s what I know. They are certainly going to find out.”

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M O R E C O N T E N T, MOR E C OMMUNIC AT ION A steady stream of on-message, mission and valuedriven content that is easily deployed across multiple platforms and devices is best practice now. Fill a void, simplify a field process, and share product stories and testimonials to strengthen brand ties. In times of crisis, people want and need more communication. Strategy consultant, Brett A. Blake says, “Update even if there’s no update. Uncertainty fuels anxiety. The more you communicate and share, the less chance there is to develop an information vacuum within your team…Maintaining transparency through a crisis with frequent updates is the ultimate expression of good faith, empathy, and genuine concern for your team.” Hope is fuel for your field, so communicate that. Focus on your most relevant products or on the benefits of having a second home-based income. Give them some headspace during this high-stress era by simplifying systems and deploying sampling platforms. Break through the 24/7 COVID noise with value offers like free enrollments, deep discounts, purchase promos or free shipping. As states begin lifting stay-at-home orders and employees return to headquarters, work will look different for the foreseeable future. Maybe capacity limits, health concerns or parenting obligations will increase your numbers of remote workers. Stress will remain high, and so too will the need for communication. Remember, ask employees if they are OK, ensure they have what they need, and act quickly to help them stay productive. Asking in that order makes all the difference. DSN

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P A U L K

THE RISE OF VIRTUAL EVENTS In-person gatherings may be out of the question, but direct selling companies are reporting increases in engagement, profitability and connection like never before.

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We have five times more distributors than we have ever had at a single seminar because it was online, and they just got to sit down and login.

—JONI ROGERS-KANTE,SeneGence Founder and CEO

IKE MOST PEOPLE, direct selling executives are crossing out travel and large in-person gatherings from their calendars. For an industry known for its relational appeal, eliminating the face-to-face factor should be crushing. But instead, many executives are reporting that they feel more connected to their teams than ever before and are experiencing record engagement. “I’ve been involved in more field events in the last two months than I have been since I started the company in 2014,” says MONAT President Stuart MacMillan. Connecting virtually has become part of the daily workflow for MacMillan and many direct selling executives like him, as their teams and distributors take part in trainings while experiencing the benefits of connecting from home for both small- and large-scale events. “I still don’t believe there’s any replacement for face-to-face, and our people are itching to get back together—both employees and the field,” MacMillan says. “But I think what we’ve learned is that between those opportunities to get together, there are better ways to do this.”

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INCREASING ENGAGEMENT WITH FUNCTION AND FUN This shift to virtual has opened the event doors wider, allowing people who would normally be limited by family obligations or financial flexibility to participate. For SeneGence Founder and CEO Joni Rogers-Kante, virtual events have drastically impacted the company’s attendance numbers. “Only a percentage of distributors go to our events, and ours was never a huge percentage,” Rogers-Kante says. “But we have five times more distributors than we have ever had at a single seminar because it was online, and they just got to sit down and login.” The SeneGence virtual event sought to emulate a lot of the function—as well as fun—of a live event by passing out virtual awards that instantly appeared across social media channels as names were announced, conducting drawings and shipping prizes to distributors’ houses. While their next company-wide in-person event has been postponed, the SeneGence team is already implementing plans for a conference that will take place in Tulsa. “We think it will be the largest event we’ve ever had because people are so excited to get back together, and we have so many new distributors who can’t wait to actually physically show up at a SeneGence event. We just know it’s going to blow everything we’ve done out of the water.” 10 CENTS ON THE DOLL AR, 10 TIMES THE RE ACH Twenty-four hours after a recent Mannatech virtual live event, the entire 12-hour event was available for replay. The 6,500 unique visitors, representing a ballpark of 8,000 to 12,000 viewers who watched the virtual event live, quickly multiplied as people shared the content and participated after the event had ended. A traditional Mannatech event hosts 1,200 to 1,500 people. “For one-tenth of the expense, we were able to connect with six to ten times the number of people we would have connected with,” says Mannatech CEO and President Al Bala. And although event product sales were one-third of the normal amount, Bala says it was offset by the savings in product transport to the event and the convenience of shipping it directly to consumers’ homes. “It was more efficient and definitely more profitable sales than we would have had normally.” w w w . d i r e c t s e l l i n g n e w s . c o m 5 3

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TAKE YOUR VIRTUAL EVENT TO THE NEXT LEVEL WITH THESE TIPS FROM PRODUCTION EXPERT AND CONSULTANT TO THE DIRECT SELLING INDUSTRY, ERIK JOHNSON OF KATAPULT EVENTS. Forget Zoom. Use Vimeo to live stream. Prerecording some content eliminates the potential for user error, streamlines transitions and trims the boring out of stories. Use permissions to put events and event extras behind paywalls or passwords. Erik uses thinkific.com to preserve special VIP treatments, like a Q&A with the keynote speaker, for specific distributor ranks and above. Hire a professional. Picture-in-picture, title animation and HD screen shares matter. Show others what they’re missing. Even if you’re charging for a virtual event, share a short segment onto Facebook Live for things like new product announcements. At the end of the segment, offer viewers the opportunity to buy access to the rest of the event. It’s a double bang for your production buck and a quick upsell. Everything has to be faster. What might have taken you four minutes to say on a live stage, should take you 90 seconds when speaking to a virtual audience. Shoot with two cameras. A simple wide shot and a close up will give your broadcast movement and will be more likely to hold attention. A high-quality mic is just as important as good video. If they can’t hear you well, they will leave. Don’t be afraid to hire an outside emcee. Professional talent can take your event from stagnant to funny, drive the energy of the show, and be in charge of throwing it to different hosts—chief executives, distributors—to keep the show moving. Rehearse, rehearse, rehearse. Get rid of the extra stuttering and “um” sounds and give your team the chance to feel the flow of the event. Double-dip your filming days. When broadcasting virtual events, you’ll likely

have the members of your executive teams and an elaborate, staffed studio all in one place. Use this opportunity to film upcoming product launches, expand your expert interviews and update your opportunity presentation.

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“

How good your first event is will determine if they buy your next. —ERIK JOHNSON, Katapult Events

“EVEN THOUGH WE AREN’T ALL TOGETHER, WE SEE YOU!” “Going virtual” has a simple ring to it, but executives in the driver’s seat know the challenging behind-the-scenes experience of sifting through broadcasting options and platforms. Arbonne, who planned to launch 13 new products at their live convention this year, suddenly had only a fraction of their usual preparation time to devise communication strategies that would build excitement while playing well through the screen. Social media, which has always assumed a role at Arbonne events, was now critical, and the company leaned hard into these social integrations. To allow the executive team space to focus on engaging with attendees through the chat function, much of the content was prerecorded. “Virtual GTC 2020 was created in about four weeks, and because of the incredibly pressing deadline, we absolutely learned as we went,” says Arbonne Chief Marketing Officer Carole Diarra. Diarra’s social media team developed teasers, quizzes and other interactive content that posted throughout the event. “This provided a level of engagement to our audience to really say, ‘Even though we aren’t all together, we see you!’” Despite the fog of uncertainty during the first few weeks of the stay at home orders, LegalShield dove headfirst into creating virtual experiences and may have been the first direct sales company in North America to pivot to an entirely livestreamed international convention on April 4.

When it became clear that their planned live event would not take place, the company transformed the auditorium in their Oklahoma headquarters into a full studio with only three weeks’ lead time. From there, they offered 16 hours of training content and recognition from over 40 field leaders and live hosts to more than 10,000 viewers. In addition, more than 5,000 associates joined their two-day Zoom Breakout Trainings before the larger event. “Our field leaders are extremely creative in using Zoom as a recruiting and training platform,” says LegalShield Network Division President Don Thompson. “They use breakout rooms to host associates and their guests after a presentation for a Q&A session and for associate interaction.” To not only survive, but thrive in this unprecedented environment, LegalShield’s CEO Jeff Bell has cast a vision for the company as a “digital disruptor” who uses technology to fulfill their company’s mission. The focus for the company is not on their limitations, but rather on how they can innovate and improve and use the tools available to spread their message and keep the field engaged and excited. “We are not at the level of Netflix or CBS,” Bell says, “but we are getting smarter and more successful in producing engaging content.” As companies expand their live-streams to their international markets, the existing cultural and language barriers will have to be considered. Elepreneurs Chief Impact Officer Garrett McGrath, who also serves as President of the w w w . d i r e c t s e l l i n g n e w s . c o m 5 5

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Association of Network Marketing Professionals, is watching as these virtual events begin to take shape on a global, multilingual scale. Although these broader events are more complex, McGrath is encouraged by the existing platforms that can do the heavy lifting for the direct sales industry. Vimeo, a tool the ANMP relies on for its broadcasts, is paired with remote translators who use the Interactio app—which McGrath describes as a flawless application—to tap into the livestream and recreate the content in their listeners’ language. “All you have to have is a good originating broadcast quality, and that becomes the place from where everybody views the actual convention, even though we’re bringing people in from all over the world,” McGrath says. CAUTION: CHALLENGES AHEAD Everyone is more than eager to get back to normal and industry leaders are at the front of the line, hurriedly trying to recreate their office environment from thousands of satellite home offices scattered across the globe where their leaders live and now work. But as the world has quickly discovered, working separately but together has come with its own set of unique challenges, and large virtual events are not immune to these foibles. Security has been a hot topic for Zoom users (LegalShield

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reported instances of “Zoom Bombers” during their first few training sessions before password protections halted any further disruptions), but for other, more complex broadcasting platforms, hacking isn’t as much of a concern. The security concern, according to Katapult Events President Erik Johnson, should be privacy. “I wouldn’t put anything out on a stream that you wouldn’t want the world to see,” Johnson says. “Someone at home is likely recording it whether you want them to or not, and it’ll be on YouTube by the end of the day.” For companies who live and die by FTC compliance, it’s a stern warning for leaders. Even if a distributor thinks they’re in a private virtual room with only top-tier leaders, there is great potential that their words will become public. There will also be a fluency issue for older distributors who aren’t used to virtual interactions and for whom these new changes will require a steep learning curve. “I feel sorry for companies that are older and already have their culture set in stone because they’re going to have to switch at some point to this,” RevitalU CEO Andrew McWilliams says. Even though virtual events are notoriously less expensive than their in-person counterparts, going too cheap can be very obvious. “A lot of people think they can just hop on Zoom and be fine,” says Johnson, who now produces SeneGence’s virtual events. The result of a frugal presentation, however, is fuzzy resolution, glitchy streaming and a visible mouse pointer on shared screens—not the high-quality presentation multimillion- and multibillion-dollar brands should attach their names to. For the April SeneGence virtual event, Johnson utilized

V ir B E L A :

THE NE W HE A DQUA R TERS Vimeo for live streaming at the Enterprise level and set up studios at the Oklahoma and California SeneGence offices. With his crew and all of their gear at both locations, they connected the two offices live on camera for a high def broadcast that looked like prime time TV. As physical events reemerge in the months to come, Johnson warns that virtual events should never be just a recorded version of the live event. Instead, he encourages leaders to plan for physical and virtual hybrids. For example, his crew is building a side stage that is reminiscent of the ESPN Sports Desk for the host of the virtual watch party at one of his client’s upcoming in-person events. Even though one large event will be happening, two different audiences with different attention spans will be watching. By having a dedicated host, he’ll be able to accommodate both. FACEBOOK LI V E FRIGHT As leaders who are used to delivering speeches from stages in loud rooms begin broadcasting from their kitchen table or home office to an audience they can’t see, they’re discovering that stage fright and Facebook Live fright are two different fears and require two different skill sets. McGrath described his feelings about hosting an eight-hour live event as somewhere between nerve-wracking and exciting. He and wife Sylvia, Elepreneurs Chief Experience Officer, introduced live speakers and announced prerecorded (continued on page 58)

IRTUAL EVENTS MAY BE BOOMING , but it will be finding

ways to digitally recreate the ordinary daily interactions that will be key for direct selling to weather this storm of isolation and uncertainty. RevitalU has found its solution through VirBELA, a technology platform that allows companies to create a virtual headquarters. With VirBELA, people can come together formally for events, like a conference room where they’ll hear keynote speakers, as well as informally, like in virtual hallways between sessions where they can start up casual conversations.

Through avatars and multidimensional rooms, users can interact digitally in a personal way that doesn’t create the Zoom fatigue that comes with endless video chats. “It gives you autonomy to interact with whom you want to interact with and go where you want to go,” says VirBELA Founder and President Alex Howland, Ph.D. “When you read a book, you’re not paying attention to the black and white words or pages; you’re getting immersed into the book. The same thing happens with VirBELA. Your brain starts to feel like you’re physically in the room with colleagues.” Glenn Sanford, eXp Realty Founder and CEO, has been using VirBELA as his company’s virtual campus since 2016. During that time, he grew his number of agents from 900 to 29,000 from the virtual headquarters that he mans from the casita over his garage. In April of this year, his success with the virtual platform led him to join the VirBELA team as the company’s Chief Strategy Officer so that he could extend his knowledge and experience with simulated campuses to other business leaders navigating these unprecedented waters. Sanford offered advice to McWilliams, one of the newest CEOs to become an adopter of the VirBELA technology, by explaining that the simulated campus will only work if McWilliams insists that people meet him in his virtual Planet RevitalU office, rather than picking up the phone. “We have an office, and I don’t care if it opens back up,” McWilliams says. “We’re going to make the physical office voluntary. For our business practices and working together, it’s going to be done online.” 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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Ways to Simplify Your Pivot to Virtual

DON’T CONFUSE VIRTUAL WITH AUTOMATED. Even though there are no smoke machines and spotlights, this is not a set-it-andforget-it type of environment. Building an interactive experience is key to getting virtual events right.

PREPARE YOUR TEAM. Expect worst-case scenarios and plan how they’ll be addressed on the spot to protect your brand.

CHOOSE YOUR COMMENT COMFORT LEVEL. Instantly visible, unfiltered feedback may complement the tone of a keynote address, or it might exacerbate the awkwardness of lackluster attendance. Pick an audience participation level that matches the event vibe.

TAP INTO EXISTING PARTNER PLATFORMS. Seamlessly charge registration for large events and automatically capture potential customer contact information. (Eventbrite, PayPal, Pardot and HubSpot are good leads for these functions)

DELIVER AN IN-PERSON EXPERIENCE. Pick two or three elements of your usual in-person events that can be creatively replicated while apart. If distributors have come to expect a lavish lunch break at events, send restaurant or food delivery gift cards to registrants ahead of time. These small gestures will build community while making a memorable impact.

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(continued from page 57) segments and then watched comments and emojis unfold in real-time over an eight-hour stretch. The stamina required to create these engaging content segments back-to-back for that length of time is similar to expecting sprints in the middle of a marathon. “The biggest concern you always have is: can you keep people’s attention for 12 and a half hours?” Bala says. But it’s not just the audience’s attention that leaders are concerned about. “I don’t think you can underestimate what it does to the speaker’s energy to talk to a crowd,” Bala says. “When you’re a speaker, it engages you at a different level. You can’t replicate that virtually.” A N AT T EN T ION SHIF T Change can be a dirty word in an industry rooted in tradition, and that’s why McWilliams is choosing to embrace this time of disruption. As people readily accept digital platforms out of necessity, McWilliams says this temporary shift to virtual will now be permanent for his young organization. “I’m never going back,” he says. “It has been the most cost-effective thing we’ve ever done.” In April, RevitalU experienced double-digit percentage growth over March. After their first major virtual event on May 2, the company was up almost 55 percent over April by May 7. “It does not feel like a blip on a radar screen,” he says. “What it feels like is a shift of attention.” These live virtual events with openly visible comment boxes bring with them a lack of control, but the effect, McGrath says, is unparalleled. “We were very aware that people don’t want a presentation; they want a conversation,” he says. “There’s a risk with a conversation because you don’t know what the other

person is going to say, but that’s why people show up: because it hasn’t gone through the corporate whitewash and hasn’t been overly sanitized. It’s spontaneous and real.” In the short term, physical events aren’t possible, but even when the restrictions from the global pandemic are lifted, some executives are expecting a slow return as people remain gun-shy about close social interaction and even handshakes. McGrath says the question of when things will go back to normal is the wrong question. “The real question is, between now and then, can we document a plan that people can rely on as proven to work today?” I S V I R T U A L R E A L LY A S U C C E S S ? There is no industry-wide metric for success when it comes to this new switch to virtual. Still, as many leaders face pent up demand and anxiety swirling around the new normal that has been thrust upon them, the measurement for success will depend upon each company’s specific goals and missions. For affiliate-focused companies, comment engagement on

a Facebook Live event could provide a gauge for distributor reach. Many executives are now reporting a sharp increase in sales during and after virtual events—when distributors would usually be socializing or traveling home—and are using that as their new benchmark for success. Virtual can’t mimic the adrenaline rush of a packed arena, but industry leaders are approaching this new playing field with cautious optimism. For now, there is convincing emerging data that pivoting to virtual is doing little to harm the health of direct selling companies, and might actually be making a oncein-a-lifetime paradigm shift that offers a glimpse into where the future of the industry might be headed. “This is here to stay,” Bala says. “It’s just going to become another tool in our toolbox to create that engagement with our associates and for associates to create engagement among themselves.” DSN

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Biohacking the Future Innovative technology and nutritional products that optimize the body’s biology. B Y B R I T TA N Y GL E NN

HE NUTRITIONAL SUPPLEMENTS GIANT LIFEVANTAGE didn’t start the biohacking movement, but they’re the direct selling company that has embraced it. Also known as DIY biology, biohacking is

the desire to optimize your body and mind by using everything at your disposal—technology, tools and science—to become the best version of yourself.

DARREN JENSEN

PRESIDENT & C E O

JUSTIN ROSE

CHIEF SALES OFFICER

RYAN GOODWIN

C H I E F M A R K E T IN G OFFICER

LIFEVANTAGE FOUNDED:

2009 HEADQUARTERS:

Sandy, Utah TOP EXECUTIVES:

Darren Jensen, President & CEO; Justin Rose, Chief Sales Officer; Ryan Goodwin, Chief Marketing Officer PRODUCTS:

Nutritional supplements, anti-aging, skincare and canine health

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Our name, LifeVantage, is synonymous with biohacking. —JUSTIN ROSE, LifeVantage Chief Sales Officer

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OPTIMIZING NUTRITION The word biohacking was coined by combining the Greek root word bio, which means life, with the modern word hack, which refers to a shortcut or way of doing things more efficiently. “Similarly, LifeVantage includes the words life or bio and advantage or optimization,” says Justin Rose, LifeVantage Chief Sales Officer. “Our name, LifeVantage, is synonymous with biohacking.” One of the main ways biohackers seek to control their biology is through their gene expression, says Ryan Goodwin, LifeVantage Chief Marketing Officer. That’s where nutritional genomics comes in. Nutrigenomics is the study of how nutrients and natural compounds affect gene expression. LifeVantage’s Protandim® line of scientifically validated nutrigenomic products support the body’s natural cellular function by targeting the biochemical effects of aging. Ranked No. 36 in the Direct Selling News 2020 Global 100, LifeVantage is publicly traded on the Nasdaq (LFVN) and headquartered in Sandy, Utah, near Salt Lake City. The company initially began selling its premium dietary supplements in retail stores like GNC and The Vitamin Shoppe when it was founded in 2003. It wasn’t until 2009 when LifeVantage transitioned from a retail to a direct selling business. Darren Jensen, LifeVantage President and CEO—who joined the company in 2015 with 30 years of direct selling experience—says LifeVantage saw a dramatic leap in revenue after shifting from a retail to a direct sales model. “Direct

L E AV I N G A L E G A C Y selling is a much more powerful way of conveying a complex message directly to the consumer,” Jensen adds. “We started out in retail, and it didn’t work for us. Our true calling is in direct selling.” LEVER AGING SMART TECHNOLOGIES One of the things that differentiates LifeVantage is its emphasis on technology and innovation. The company seeks to emulate the kinds of game-changing technologies designed by leaders of the gig economy—big names like Uber, Airbnb and TaskRabbit— and apply it to the tools used in the direct selling industry. “We want to make it as easy to build at LifeVantage as it is to drive for Uber,” Jensen says. “That means we have to compete within the gig economy. We have to take out as much friction within our systems as possible to make it easy to do business with us.” To make that happen, LifeVantage has focused its time, talent and resources on developing and funding smart technologies and apps. “We are hell-bent on making technology a competitive edge for LifeVantage,” Goodwin says. “Our goal is to leverage the best practices of e-commerce, internet marketing and network marketing to create the best digital user experience for both consumers and distributors.” For new LifeVantage distributors, this will translate into an app that provides guidance and instructions—just like the Uber mobile app tells its drivers where they need to go to pick up people who need rides—throughout the life cycle of their business, including making recommendations on how to prospect and how to close business. Another way LifeVantage has incorporated smart technologies into its everyday operations is through integrating artificial intelligence into the way it handles inbound calls. Every call the company receives is digitized, transcribed into text and fed through machine learning. “It’s then analyzed to see what the tone and sentiments are and how questions were answered,” Rose says. “That’s given us a tremendous amount of insight into what is occurring within the distributor force. This type of technology will be helpful for us and any company that integrates it.”

ONE OF LIFEVANTAGE'S CORPORATE VALUES IS TO LEAVE COMMUNITIES BETTER THAN THEY FOUND THEM. To that end, the company created the charitable organization, LifeVantage Legacy, which is a 501(c)(3) nonprofit committed to impacting the lives of children and families through programs and initiatives that make a lasting impact on future generations. One of the hallmarks of the organization is the annual Legacy Volunteer Service Trip to Puerto Peñasco, Mexico, to build homes for families in need. Partnering with the nonprofit Families Helping Families to build and furnish houses in poverty-stricken areas, LifeVantage Legacy buys the lot and building materials, and supplies the manpower—thanks to LifeVantage distributors and staff—to build each home. “We don’t just give them the home, we furnish it,” says Darren Jensen, LifeVantage President and CEO. “When the mother opens the refrigerator and sees it’s stocked, that’s when she starts to cry because she sees her family is safe.” LifeVantage Legacy’s outreach efforts have resulted in: u Nearly u 25

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The service trip has become so popular among LifeVantage distributors that, this year, volunteers will be selected through a lottery system. “We give people a way to give back,” says Justin Rose, LifeVantage Chief Sales Officer. “Deep down inside, we all want to be a part of something bigger.” w w w . d i r e c t s e l l i n g n e w s . c o m 6 3

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As a company, we’re leading the way by integrating technologies and new practices into direct selling. — DARREN JENSEN, LifeVantage President & CEO

You can bet technology will play a big part in the company’s future growth strategy, too. Another new innovation on the horizon will likely incorporate elements of gamification, which generally speaking is the application of game-playing elements (point scoring, competitions among users, digital games, timed challenges, etc.) to other non-game activities to encourage user engagement. “You’ll see more gamificiation and a hybridization in the way we do business over the next few years,” Jensen says. “I believe as a company we’re leading the way by integrating technologies and new practices into direct selling.” When a new LifeVantage distributor joins the company, they will already have access to the free LifeVantage mobile phone app, which walks them through tasks, analyzes their business and makes recommendations for action steps. Another new technology just released is a tool called Playbook, an online resource library of shareables, product information, training on prospecting for customers and distributors, and monthly updates and sales promotions. 6 4 D I R E C T S E L L I N G N E W S |

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G A I N I N G G L O B A L A D VA N TA G E LifeVantage currently does business in 17 countries, according to Jensen, but the United States boasts its largest footprint. “The U.S. represents sixty percent of our business,” Jensen adds. “Our second largest market is Japan. We’re always expanding throughout Asia and Europe. We’re looking for other opportunities around the world to grow.” To strengthen its global growth, LifeVantage has adapted its compensation plan to allow for greater flexibility to better adjust to the way other countries do business. “We’re an e-commerce company in mainland China,” Jensen says. “So, we’re experimenting with multiple forms of business. We’re trying to find that next evolution of direct selling.” A big change LifeVantage just made is its launch of “Daily Pay” bonus programming that integrates with the company’s payroll and time management systems, and enables LifeVantage to calculate a portion of distributors’ commissions on a daily basis, in addition to their monthly commissions checks. LifeVantage has also invested resources in acquiring staff members who speak multiple languages to enable the company to enter new countries on solid footing and maintain their market positioning in current ones. Looking ahead, Jensen says he anticipates the company will increase its focus on eco-friendly initiatives. “I think you’ll also see from us more of an effort at being good stewards of the planet,” Jensen says. “You’ll see us shifting more toward adapting all of our packaging and our business practices to even more of a sustainability focus.” As a publicly traded company, LifeVantage incorporates discipline into everything it does, Jensen says. “When it comes to strategy and our business practices, we are a very straight-arrow company,” Jensen says. “We do things the right way and part of our values is that people come first.” DSN

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TOUGH TIMES REQUIRE TOUGHER PEOPLE Strong personal-development programs are critical for sustaining HOPE and PRODUCTIVITY.

B y

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NE DAY in mid-March, your teams were planning a spring full of customer events, national convention trips and new retail sales. The next day, they were replacing in-person appointments with web conference calls, canceling flights and maybe seeing their order pipelines start to dwindle. The COVID-19 closures and stay-at-home orders hit quickly and hard. A few months in, things have started to open up, but this new groove is still rough and likely will be that way for a while. You might have a clearer picture now than you did in early spring of what the rest of your business year holds, but there may still be a lot of ambiguity, which can breed fear and worry among your team members. As a business leader, you can’t make uncertainty disappear. You can create an environment that helps employees and distributors stay engaged and feel more positive about the future. Implementing a personal development program is an effective way to help team members cope with and

M a r t i n

see beyond this crisis. Personal development is about becoming emotionally intelligent—it’s about learning skills for self-discovery, relationship building, conflict management and goal setting, all of which increase resilience and optimism. Now, more than ever, people need tools to maintain their mental and emotional health. Willis Towers Watson, a Virginia-based business consulting firm, surveyed 200 employers and found that 64 percent expect their employees to be feeling higher-thannormal levels of stress and anxiety over the next three to six months—60 percent expect to take steps to help employees remain resilient. This month, we’re talking to you about how you can be among the leaders who are taking those steps, who are paying attention to what their people need beyond just the technology to work from home. Give them opportunities and resources to build habits and adopt attitudes that will help them—and your company— thrive during and after this challenging time in our lives. w w w . d i r e c t s e l l i n g n e w s . c o m 6 7

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THEIR GROW TH IS YOUR GROW TH “I could list a million reasons why direct selling companies should be focusing on the development of their field members, not just now but always,” says SUCCESS magazine Editor-inChief Josh Ellis. “If your people aren’t growing, your company probably isn’t, either,” That’s because personal development is a “multiplier” of the eleven Core Principles of successful, sustainable direct selling—it exponentially enhances the effectiveness of everything from your brand to your recruiting efforts to your tool systems. “Personal success drives the company’s success,” says Angela Loehr Chrysler, President and CEO of Fort Lauderdale, Florida-based Team National. “When our representatives and our staff have greater personal confidence and a positive mindset, they are better equipped to provide good service.” Mentally and emotionally fit people also are better able to handle stressful situations, says Ryan Gagon, Vice President of Human Resources for Sandy, Utah-based 4Life Research. “As we continue to push ourselves to learn new skills and tools to deal with life’s challenges, we will be better prepared when tough times strike.” Personal-development programs also reinforce your commitment to and belief in your employees, which is critical for retention. “Employees who feel supported in their roles are much more likely to become high performers in the workplace, be better influencers for positive company culture and stay with the company longer,” says Ross Terry, Vice President of Business Development and Training at 4Life. FEAR’S NO. 1 FOE Aside from being afraid of the virus itself, many of us are feeling a deeper fear—a fear of the unknowns this virus has caused, and it’s taking its toll. But experts remind us that we don’t have to let that fear take over. “This sudden and then prolonged exposure will leave a mark,” says Kindra Hall, SUCCESS magazine’s Chief Storytelling Officer. “Healing will need to happen in order for hope to be restored. Personal development can help rebuild what we’ve lost from the inside out so that we can come back stronger, both as corporations and field individuals.” Leadership expert and SUCCESS magazine Leadership Editor John Addison has advice for controlling the amount of fear that we let in. “Are you spending all day staring at the news, feeling like the world’s going to hell in a handbasket? Be careful what you’re allowing into your brain,” he writes. “Focus on what you’re inputting. Look at all the things coming your way and ask yourself, ‘Is this doing anything for me or 6 8 D I R E C T S E L L I N G N E W S |

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This feature is based on the PERSONAL DEVELOPMENT section in the CORE PRINCIPLES book from the editors of Direct Selling News.

making my life better?’ If the answer is no, then … don’t let it into your brain.” Addison also addresses mindset in this video about staying calm and hopeful during this pandemic. “Fear is natural, but courage is critical,” he says. “Turn your fear into fuel. ... Try to find an answer to keep moving forward.” V IR T U A L L E A R NING G AT HER ING S T E A M You may not be able to bring people together in the same rooms and auditoriums for the motivational and educational experiences you had planned for the rest of the year, but you have an opportunity to expand your use of virtual learning tools. Prior to COVID-19, many direct selling companies were already offering tech-based personal development programs. But once we started staying home, the internet became our primary gathering place: Microsoft Teams alone hosted a record 2.7 billion meeting minutes on March 31, a 200 percent

“

If your people aren’t growing, your company probably isn’t, either. —JOSH ELLIS, SUCCESS MAGAZINE EDITOR-IN-CHIEF

increase from just two weeks prior. Facebook reported that by the end of March, time spent in group video calls had increased more than 1,000 percent. Hall recently polled her personal audience and found that 55 percent of those who responded had invested in some sort of online course to grow themselves during the stay-at-home orders. And she expects this trend to continue. “One thing that isn’t going anywhere after the pandemic is virtual learning,” she says. “Not only will people be more used to digital learning, they will come to expect it.” Companies throughout our industry are embracing virtual personal development events. At SeneGence, the summer calendar is packed with online training events, like “Motivational Monday” Facebook Live calls and even social gatherings. “The learning we are experiencing about the connection and reach virtual events can have and how they can positively impact business has been invaluable,” says Karen Goodman, SeneGence Executive Vice President of Sales.

USANA CEO Kevin Guest started a virtual reading club. He posts excerpts from books and articles and encourages the leadership team, employees and distributors to read and apply the lessons to their business practices and to themselves. USANA Vice President of Sales Lori Truman notes that a couple of books, including The Reality Slap by Russ Harris, have been particularly helpful during this time because of their focus on how breathing exercises can minimize anxiety. “If you use these techniques, you will find that you will be calmer; you will be providing your body more oxygen; and your brain will function more clearly,” Truman says. “As we are all reading the same articles and books, it allows us to speak the same language as we move forward in achieving our goals,” she adds. P E R S O N A L D E V E L O P M E N T: A B U S I N E S S IMP ER AT I V E When people are distracted by worries over income level and job security, a personal-improvement program may seem like a luxury. Yet, your organization’s ability to weather this storm depends heavily on employees being committed to becoming the best personal and professional versions of themselves. So be as transparent as possible about your company’s challenges and opportunities. “You don’t need an MBA or an economics degree right now to understand the precarious spot many companies find themselves in,” Ellis says. “Employees and field members are going to want to hear how things are going, and they deserve the full picture.” Authenticity builds trust and loyalty. Your teams will see that you respect them enough to tell them the truth, and they will work harder for you—in the field and on themselves— because they’ll want to be a reason for your success. As your people do the hard work you’re asking them to do, acknowledge their accomplishments. “Lean on cultural elements like recognition or just basic cheerleading and encouragement,” Ellis says. “Impromptu shout-outs and ‘Job well-done!’ emails will carry a lot of weight right now.” Hall echoes Ellis: “Open, authentic communication will help ease some of the nerves that come with so much unknown.” 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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BUILDING A PERSONAL DEVELOPMENT LIBRARY

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Personal development can help rebuild what we’ve lost from the inside out so that we can come back stronger, both as corporations and field individuals. — K I N D R A H A L L , S U C C E S S M A G A Z I N E C H I E F STORYTELLING OFFICER

You don’t have to create your personal development program from scratch— curate one using the wealth of proven content that already exists. “No one is inventing personal development secrets in 2020,” says SUCCESS magazine Editor-in- Chief Josh Ellis. Here are some resources for building a personal development curriculum: } Ellis recommends BLOG POSTS AND

BOOKS by author Ryan Holiday, who writes about the power of stoicism. “We are searching for leaders who can look this crisis in the face and react with pragmatism, not emotion,” he says. } Other great FOLLOWS include Rachel Hollis,

She adds that leaders also should be talking about previous setbacks and how the company overcame them. “These stories will instill trust and hopefulness as the audiences, both field and corporate, more fully understand that this is a storm we can survive,” Hall says. C H O O S E O NE ’ S O W N WAY This pandemic is a stark reminder that we can’t control what happens to us. We can control only how we react to what happens to us. “The one true thing in this difficult time will be a person’s ability to become and stay selfdisciplined,” Goodman says. “It could be very easy to slip into complacency, laziness, fear and depression. A focus on personal development is the key to separating those who give in from those who won’t give up.” Holocaust survivor and psychiatrist Viktor Frankl wrote extensively about human beings’ innate ability to reframe their perspective: “Everything can be taken from a man but one thing: the last of the human freedoms—to choose one’s attitude in any given set of circumstances, to choose one’s own way.” DSN 7 0 D I R E C T S E L L I N G N E W S |

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Tom Bilyeu, Gabrielle Bernstein, Brendon Burchard, Rachel Cruze, Prince EA, Tim Ferriss, Maria Forleo, Lewis Howes, Trent Shelton, Jay Shetty and Gary Vaynerchuk. } Last fall, before we even knew we’d need the boost, Direct Selling News and SUCCESS magazine compiled a list of 25 BOOKS that provide insights on maximizing potential, overcoming fears and recognizing the pivotal moments that can have the greatest impact on your life. } The SUCCESS PARTNERS’ NOW APP can keep a constant stream of personal development content flowing to your employees and distributors. } SUCCESS magazine offers a variety of social

media, video, audio and print content to help your teams develop and polish their soft skills.

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On ENGAGING During Uncertain Times

hese past weeks, I have been struggling with how we might all engage each other on the issues that have been challenging our country over the last few days—racial injustice, civil unrest, equality for all. I have been touched by statements by DSA member companies to support those who are faced with injustice, prejudice, bias, and even death merely because of the color of their skin. I was particularly struck by the thoughtful and candid words of President George W. Bush and wanted to share them with you. America’s greatest challenge has long been to unite people of very different backgrounds into a single nation of justice and opportunity. The doctrine and habits of racial superiority, which once nearly split our country, still threaten our Union. The answers to American problems are found by living up to American ideals—to the fundamental truth that all human beings are created equal and endowed by God with certain rights.—President George W. Bush Similarly, President Barack Obama has also spoken about the need for reform, while decrying the violence that has marred the protests urging that reform. So, let’s not excuse violence, or rationalize it, or participate in it. If we want our criminal justice system, and American society at large, to operate on a higher ethical code, then we have to model that code ourselves.—President Barack Obama I know that my role as DSA president is not to lecture on racial inequality or social justice. Even President Bush said that “this is not the time to lecture.” I am more than aware that DSA must respect its role as a business association, and I acknowledge the limits of our ability to effect change in the world beyond our channel. But I think both President Bush and President Obama have offered important

JOSEPH N. MARIANO is the President of the U.S. Direct Selling Association and the Direct Selling Education Foundation.

guidance on how to address these issues: first, identify and speak to these issues, and then model the behavior we want to see. I have little doubt that many people in our community have been touched by injustices. Many of us have understandably had our confidence in a fair, equitable, and law-abiding society shaken to the core by the apparent disregard of our social contract. So, it seems important that we engage by at the least acknowledging this breach of trust that so many of us feel. How then do we engage in such a matter of great importance and sensitivity as social justice, racial equality, and civil strife? We know that direct sellers have a vision. It is a vision of equal opportunity for all. It is a vision of community empowered by entrepreneurship and freedom, of family and values, of service and fairness. We eschew false notions of racial superiority and prejudice, and we must remain vigilant; as President Bush said, “This will require a consistent, courageous, and creative effort.” I have always believed that direct sellers are at the core of our communities. It seems only fitting then that we follow President Bush’s admonition to engage our community on these issues of fairness and equity, that we consider our own institutional biases, learn tools to dismantle old ways and trust our field to lead by example. Let us have that vision stand as a bulwark against the forces that would tear this nation apart, against the forces that would deprive anyone his or her life, liberty, or happiness. Let our vision stand as the model of which that President Obama spoke: as a monument to the ability of anyone to live their lives and achieve their goals. Let us work to have that vision serve as a statement of hope, an example of what this country can be and so often is. DSN w w w . d i r e c t s e l l i n g n e w s . c o m 7 1

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Factors to Consider While Choosing a Payment Processing Partner B Y

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S A DIRECT selling organization, there are countless opportunities to grow, both locally and globally, by finding the right partners in your success. This is true of payment processing

as well. To achieve the greatest benefit and highest return on investment, you need hard work, discipline, patience, and a payment partner who has your back. These 9 factors will help you get the most value out of your payment processing partnership, optimize your operations and lift your revenue potential.

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1.EXPERIENCE IN THE INDUSTRY Improving the payment experience for your direct selling business does not always come easily. Some processors will not work with you or may charge exorbitant fees. This is meant to cover their risk, but it cuts deeply into the profits you can achieve for your business. A payment processor with expertise in direct selling, willing and able to work with your business in a way that gives you the support you need is of utmost importance. 2 . SE A ML E S S ONL INE IN T E GR AT ION A key element of direct selling success is reaching beyond your social group to sell. This demands an online presence, to bring more customers to you and allow them to buy from you online. The worst thing that can happen when you expand efforts to generate new sales is having your payment system fail to mesh

with your website. Seamless integration with all the major e-commerce solutions including payment gateways, shopping carts, direct selling, party plan or genealogy software, gives you added flexibility in maximizing your online sales. 3 . M U LT I P L E F O R M S O F P AY M E N T S On the most basic level, you need to be able to accept payments from your customers. In direct sales, this can mean taking as many payment types from customers with multiple forms of payment and paying in many different currencies. Your sales may come from customers online or in person, across the street or around the world. Any limitations you place on who can pay, or how they can pay, cut into your potential revenues. Limiting your scope to only in-person or only online transactions hinders your potential. Direct sales opportunities tout themselves as opening the full range of potential, limited 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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E XPERTISE IN

ENABLING YOU TO ACCEP T

P AY M E N T S I N Y O U R C U S T O M E R S ’ L O C A L C U R R E N C Y A N D E X P A N D I N G YOUR RE ACH INTO OVERSE AS MARK E TS.

only by your abilities and work ethic. For this to be true, your payment partner should never constrain what you should do or whom you can reach. Look for a partner that enhances your ability to reach customers everywhere. 4 . L O C A L A ND G L O B A L P AY ME N T METHODS Partnering with a payment provider with global acquiring experience and capabilities will open the door to a world of sales opportunities. In many countries, credit cards are not the dominant forms of payments or share space with popular local payment methods. It is important to be able to accept local and alternative payment methods in the countries where you choose to do business. Localized payment methods must be accepted to penetrate these markets fully. Alternative payments such as cash vouchers, local card schemes, and local digital wallets share a big portion of the online checkout. Offering your customers their preferred payment method is vital to greater online conversions. 5 . M U LT I - C U R R E N C Y P R O C E S S I N G Multi-currency processing is a service that allows you to sell products in local currencies without the hassle and expense of opening a merchant account in foreign countries. Simply put, people enjoy paying in their own currency and are proven to be more likely to buy, and more importantly, are more likely to re-buy when they do not have to calculate prices and conversions. Recurring orders are the backbone of any successful direct selling company, and anything that makes it easier for distributors to turn regular customers into auto-ship customers will ultimately make distributors happy. A partner that only processes in U.S. dollars or a limited range of currencies limits your reach too. Look for a payment processor with expertise in multi74 D I R E C T S E L L I N G N E W S |

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currency processing enabling you to accept payments in your customers’ local currency and expanding your reach into overseas markets. 6.REDUCING CHARGEBACKS An extensive reach often runs against problems of fraud and chargebacks. A direct seller averages more chargebacks, often out of personal limitations on ferreting out fraud. Because of this, payment processors may reject direct sellers, or charge higher fees to adjust for their risk in taking you on. Your bottom line shrinks because of the industry you are in. A payment processing partner should not penalize you for what you do. Instead, the best will provide tools to help you lower your chargeback rates by helping you identify and follow up on transactions that raise red flags. 7. F A S T E R F U N D I N G Taking payments, of course, is just one function of a complete payment processing solution. All too often, you have a wait between completion of sales and availability of your funds. This can create a cash flow problem while you wait. It is significant to choose a platform that offers at minimum next-day funding on

your sales, cutting down your wait time and giving you access to cash as soon as you need it. It can make the difference between managing your business and achieving your revenue targets. 8 . F O C U S E D S E C U R I T Y None of these benefits will matter if you cannot protect your customers’ data. The right payment partner will be PCI compliant and place protection of your data and your customers’ data as its highest priority. They will also protect you by helping take the risk of security failures off of your business. Choose a partner with regulatory know-how and who is compliant with payment card industry regulations, how and where you choose to do business. This way, you can focus on building your business and count on them to keep you and your customers safe from bad actors while you do so.

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Payment processing is much more than a tool; it is a service that gives you the ability to grow in a highly competitive direct sales market.

9.ONGOING SUPPORT Finally, the right payment partner can do so much more than just let you take payments. You should be able to rely on business development support, ongoing technical support, and the right technology to keep you operating smoothly and efficiently. Processing requires an initial and ongoing investment, so you should look for a partner you feel comfortable trusting and relying on to help you get the most from your direct sales campaigns, in order to not only meet, but to exceed your goals. CONCLUSION Your direct selling business represents an investment of time, money, and effort. The only way to achieve success in this industry is to put all of those into what you do. Payment processing is much more than a tool; it is a service that gives you the ability to grow in a highly competitive direct sales market. Your payment partner should work with you not only during setup but as a true business partner dedicated to helping you and the business relationship succeed. DSN

SCOTT FITZPATRICK IS NUVEI’S AVP OF DIRECT SELLING AND INTEGRATED PAYMENTS. WITH OVER 17 YEARS OF NETWORKING MARKETING AND DIRECT SALES EXPERIENCE, SCOTT HAS BEEN A FREQUENT SPEAKER ON PAYMENT SOLUTIONS, STARTUP ADVICE AND RISK MANAGEMENT ISSUES. HE REGULARLY OFFERS ADVICE AND BEST PRACTICES FOR PAYMENT PROCESSING, CHARGEBACK MANAGEMENT, SOCIAL SELLING AND STRATEGIES TO SCALE GLOBALLY.

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WIN IN THE NEW NORMAL B Y

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ITH THE ENTRANCE of the COVID-19 virus, our world has changed, and some of the changes will last. Yet certain truths not only remain unchanged; they are more urgent now than ever before. TRUTHS

v You still must provide clarity for yourself, and your people as the world continues to move.

v You still must focus your time. v You still must take action and execute. vAs a leader, you still must have energy, and you must infuse it into your people.

v Both you and your people still need to be encouraged and motivated. METHODOLOGY (“THE OTHER M U S T- D O ” ) When we help our clients get the results they want and get them faster, deploying the ultimate how—Clarity, Focus, and Execution—continues to be the winning methodology. During these uncertain times, this methodology takes on a new urgency. 7 8 D I R E C T S E L L I N G N E W S |

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Convert Your Social Fans into Paying Customers Give your sales force CL ARIT Y

FOCUS

E XECUTION

social selling tools to succeed

n Most people need more clarity today, which provides pulling

power toward their vision. n Most people need more focus than ever to ensure they’re

operating with the right High Leverage Activities and employing the Force Multipliers that make the biggest impact on their goals. n Everyone needs accountable execution, where they’re

measuring their results ongoing and ensuring they’re moving swiftly toward what they want to achieve. DISCOVERY In recent months (before the virus), we discovered that energy, or what we’re calling Vibe, plays a vital role in causing those successes, so we began writing a book called Vibe: Energy = RESULTS Faster2. As the subtitle indicates, the higher your energy, the better your results. As of this writing, the virus is still raging, and many people are still working from home all around the world. There’s an urgent need to keep people connected and infused with Vibe—beyond just having clarity and focus. We’ve discovered that the connection and energy we’ve been able to pour into people, even through electronic media, have created a giant win—perhaps on the same scale or even greater than the skill sets, aha’s, angles, and epiphanies they gained from the actual content itself. T O D AY ’ S E N V IR O NME N T We recently created two new webinars to add to our arsenal.

1 2

Social Commerce Social Automation Social Governance Social CRM and more…

Request a Demo Today 214.659.1549 hello@socialsales.io

Virtual Meeting Mastery helps organizations dissect their virtual meetings and take a strategic approach on how to make them the best they can be. Working from Home Effectively helps people quickly master many of the challenges presented with this new reality in their lives, especially in the areas of organization, time management, focus, and execution.

socialsales.io/dsn

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Here are five questions to ask yourself that will encourage you to take action as a result of reading this article:

1 Am I contributing to my personal brand and the brand of our organization as I move through each day and make needed changes and enhancements?

As a leader, am I being as transparent, inspirational, and energetic as possible?

4 Am I doing videos, phone calls, emails, and web meetings/trainings to encourage my people, infuse energy into them, and facilitate new ways of doing business?

Am I personally as organized as I should be, and am I helping my team members be organized with the changes in the working environment, including working at home?

5 Am I, as a leader, setting the pace for my organization’s emotional management and investing in my people?

We’re continuing to shape our book Vibe, and we want to share some of the highlights of the book so you can be inspired and can share them with your team members. BRAND During these difficult times, organizations that are willing to adapt to change will rise to the top. With all the uncertainties today, there are several distinctions that can bring energy and connection to your brand: investing into your people, engaging them, and realism. The more you strategically examine unique ways to pour into the lives of your team virtually, look for ways to help them be even more efficient and effective, and discuss the real situation you’re in, the more energy you can bring into them, and the more your brand will be enhanced. It’s important to share as much detail as you can about what you’re seeing and thinking without compromising your limitations. You may also need to adjust your vision—not just weekly, but daily as you learn more information—and convey that to your team so they can be energized based upon that real, open communication. LEADERSHIP As a leader, you want to continue to sow your vision, even if it’s changing; and yet with the many unknowns today, your vision will likely have limitations. Don’t let that hold you back. 8 0 D I R E C T S E L L I N G N E W S |

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Your vision for today may be something like this: “We’re going to get through this virus. When it’s over, our customers will go on living. Even though they may want our goods and services in different amounts and in different ways, we will adapt and keep going. When we solve this, we’ll relaunch a new vision that’s consistent with the world’s relationship at that time with what we offer.” Let your team know that your vision is continually being re-formulated as more unknowns are becoming known with each day and week that goes by. It’s more important today than ever before to be a leader of a High Performing Team—one where people see the vision and want to work together. Today it’s easy to lose the clarity and focus you have in normal times, so you must work to be even more focused and more flexible so you can adjust as you’re getting information. OR G A NIZ AT ION What organization looks like today for many of you is helping your team members be organized in working from home. In our Working From Home Effectively webinar, we focus on all the components of how to set up (possibly multiple) efficient home offices, how to keep distractions to a minimum, and how to keep morphing your arrangement (sometimes in tandem with others working from home) and planning your time to

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The higher your energy, the better your results. continually make it better. The more you can all organize and prepare ahead, the better your organization’s energy and enthusiasm will be. C OMMUNIC AT ION Communication, a foundational component to success, is even more urgent today. It’s important to communicate often with your team through emails, videos, and/or web calls, where you’re synergizing and infusing Vibe into them. Discuss with your team creative ways you can help your clients and customers see things they don’t see (their Blind Spots) and how you can proactively serve up things that can allow you to be more valuable to them. It’s also important to continue your daily or weekly huddles with your staff during this time, whether in person, electronically, or through email. With timely and up-to-date information, you will need to review what’s happened in the last twenty-four or forty-eight hours and look at what’s on the table for the day and the week ahead.

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STYLE As the leader, you set the tone for your team. It’s important that you respond to our current national crisis with empathy and a sense of calmness. Any anxiety you feel will be reflected in the wellbeing of your team and the results they produce. Appreciating people and looking for the things you can be grateful for are powerful ways to keep you and your team energized and motivated. The COVID-19 pandemic is one of the most serious situations the world has ever been in. Do your best to make encouraging people and helping them through their journey a part of your style. DSN

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.

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

STRATEGIC CHOICE PARTNERS

D E S T I N AT I O N S / E V E N T V E N U 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 888-328-8275 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 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.

DISNEY DESTINATIONS P.O. Box 10,000 Lake Buena Vista, FL 32830-1000 321-939-7129 www.disneymeetings.com World-class convention hotels in destinations around the world. Discover the magic of Disney for your meetings, events or incentives.

PAYQUICKER

METRICS GLOBAL, INC

EXPERIENCE COLUMBUS

400 Linden Oaks, Suite 320 Rochester, NY 14625 844-258-3006 www.payquicker.com

1160 N. Town Center Drive, Ste. 100 Las Vegas, NV 89144 888-891-5445 www.metricsglobal.com

277 W. Nationwide Blvd., Ste. 125 Columbus, OH 43215 614-222-6121 www.experiencecolumbus.com

Instantly make secure and compliant global payouts to your distributors in local currency with PayQuicker’s fully customizable, client-branded solution. We offer secured bank accounts with prepaid debit cards, virtual cards and more—all through a single point of integration.

Grow your business globally with cash advances, mobile payments, multi-currency processing, global gateway & more. 99% client retention!

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.

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

AMWARE FULFILLMENT

STALCO INC.

4505 Newpoint Place Lawrenceville, GA 30043 678-377-8585 Sales@AmwareLogistics.com www.AmwareLogistics.com

64 Bakersfield Street Toronto Ontario M3J 2W7 647-367-2459 ext. 200 www.stalco.ca

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.

CANADA CARTAGE LOGISTICS SOLUTIONS

1615 Clark Blvd. Brampton, Ontario L6T 4W1 905-564-2115 x2 www.canadacartage.com/logistics 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.

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.

E-COMMERCE FULFILLMENT

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.

GLOBAL ACCESS 9815 S. Monroe Street, Ste. 510 Salt Lake City, UT 84070 877-811-8108 www.globalaccess.com

E VENT PRODUCTION

A2B FULFILLMENT 150 Stewart Parkway Greensboro, GA 30642 866-843-3827 www.a2bf.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

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

BARTHA 600 N. Cassady Avenue Columbus, OH 43219 800-363-2698 www.bartha.com PMS 70% Black

PMS 7686

Excite & ignite your direct sales force by using Bartha—the highest quality event production and staging company nationwide!

VISIBLE SCM

KATAPULT EVENTS

5160 Wiley Post Way Salt Lake City, UT 84116 385-355-8840 www.visiblescm.com

5840 Red Bug Lake Rd, Ste. 140 Winter Springs, FL 32708 407-915-9060 www.katapultevents.com

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.

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

HANNA SHEA

FOSSIL GROUP

1835 W Chandler Blvd 103, Chandler, AZ 85224 844-344-7177 www.hannashea.com

901 S. Central Expressway Richardson, TX 75080 469-730-7619 www.fossil.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.

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.

ATLANTIS PARADISE ISLAND

ROYAL CARIBBEAN INTERNATIONAL

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.

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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.

M A NUFA C T UR ING/ P R OD . DE V E L OP ME N T

E.A. DION, INC. 33 Franklin McKay Road Attleboro, MA 02703 800-445-1007 www.eadion.com

MARK E TING/BR ANDING

A full-service event production company specializing in helping DSA’s tell their stories. Creativity + Technology = Unforgettable Experiences.

INCENTIVES/RECOGNITION

MULTI IMAGE GROUP 1701 Clint Moore Road Boca Raton, FL 33487 800-523-2682 www.mig.cc

MOBILE APPS & COMMERCE

INCENTIVES/RECOGNITION

E XECUTIVE RECRUITMENT

E VENT PRODUCTION

Vendor Directory 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.

SUCCESS PARTNERS 5800 Democracy Drive, Suite 100 Plano, TX 75024 800-752-2030 www.successpartners.com SUCCESS Partners is a full-service agency that creates strategies and solutions for direct selling companies to strengthen their brand, engage customers and boost their bottom line.

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.

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

DIRECTECH LABS

5800 Democracy Drive, Suite 100 Plano, TX 75024 800-752-2030 www.successpartners.com

929 Colorado Ave Santa Monica, CA 90401 310-730-1246 CustomerCare@directechlabs.com www.directechlabs.com

GROW NOW! The SUCCESS Partners’ NOW app drives results for direct selling companies making it incredibly simple to connect, communicate and convert. A mobile system designed for maximum duplication that promotes customer acquisition activityNOW. Contact us for a demo today!

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

DIRECTSCALE 350 South 400 West, Ste. 225 Lindon, UT 84042 801-701-3285 www.directscale.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.

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

SOCIALSALES.IO 2024 W. 15th St., Ste. F-324 Plano, TX 75075 214-659-1549 hello@socialsales.io www.socialsales.io

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

MOBILE APPS & COMMERCE

TO BE INCLUDED IN THE VENDOR DIRECTORY, CALL 1-800-279-5249

INFOTRAX SYSTEMS 1875 S. State Street, Ste. 3000 Orem, UT 84097 801-431-4900 www.infotraxsys.com Software & SaaS solutions for startup, emerging, and global direct selling companies. See our ad on the back cover.

INTERNATIONAL DIRECT SELLING TECHNOLOGY CORP.

1208 E. Kennedy Blvd., Ste. 222 Tampa, FL 33602 813-277-0625 www.idstc.com

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

BYDESIGN TECHNOLOGIES

EXIGO

JENKON

9503 Princess Palm Avenue Tampa, FL 33619 813-253-2235 www.bydesign.com

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

203 SE Park Plaza Drive, Ste. 250 Vancouver, WA 98684 360-256-4400 www.jenkon.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.

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.

Corporate & Sales Force software for 21st century world-leaders in global direct selling. Cloud-based & on-premise solutions are available.

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MW2 DIRECT 2033 Gateway Place, 5th Floor San Jose, CA 95110 408-573-6310 www.mw2consulting.com/direct Combine the Magento Platform with powerful social and direct selling features available in the MW2 Direct platform. Solving Digital Transformation for direct selling with personalization, party management, influencer marketing, commission, analytics.

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

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!

GET CONNECTED

To those who need your services.

“

It’s simple: DSN produces the content that my audience

NEXIO 727 N 1550 E, 3rd Floor Orem, UT 84097 1-877-551-5504 www.nexiohub.com Nexio manages the chaos of payments offering: • Faster roll out for distributors or partners • Simplifies payment processing for corporations

TA X S E R V I C E S

appreciates. Knowing

Nexio does this by being integrated with the majority of back-office software solutions in the Direct Sales Industry.

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.

that Strategic Choice Partners can be associated with that kind of authority in a setting that’s tailormade for the people we’re built to serve makes advertising a no-brainer.” —BRETT DUNCAN, Co-Founder and Managing Principal Strategic Choice Partners

THATCHER TECHNOLOGY GROUP, LLC

55 Shuman Blvd., Ste. 350 Naperville, IL 60563 866-698-3848 www.thatchertech.com

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

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TOOLS, RECRUITING & TR AINING

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

SUCCESS PARTNERS 5800 Democracy Drive, Suite 100 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.

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

CONVERT

Automate and amplify distributor sales systems & offer your customers an impressive and engaging buying experience!

Turnkey Sampling 30 years of experience to guide you through best practices for a successful sampling program! •

In-app sample ordering and fulfillment

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Order tracking and drip campaigns

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Physical and digital distribution systems

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International distribution in place

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Value-added services: artwork, sample assembly, sample manufacturing and fulfillment

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20 years 3PL experience serving the direct selling channel

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On-time delivery and competitive pricing

“The NOW App and the SUCCESS Partners team have really made everything easy for us.” –John Licari, COO, Total Life Changes

R E Q U E S T A D E M O ! C O N TAC T U S TO D AY

app@successpartners.com / 1.800.752.2030 / successpartners.com

Hello Global Commerce Our Unified Commerce Platform is a bridge to everywhere, connecting your business to customers in countries all across the globe. 173 of them, to be precise. That means you can sell almost anywhere â&#x20AC;&#x201D; offering your customers a truly localized buying experience and consistently fast response times.

173 countries 170+ currencies 140+ APMs

DROP INTO YOUR SWEET SPOT Unreliable software keeps your teams from seeing their next moves. Give them the boost they need with FlexCloud. With instant business insights, customizable back-end functionality, and real commission strategy know-how, you and your distributors can confidently tackle even the gnarliest swells. Contact us today for a free demo. Learn how a better business starts here: www.info.infotraxsys.com/flexcloudwhitepaper

801.431.4900 | infotraxsys.com