DSN
DIRECT SELLING NEWS
VOLUME 17 / ISSUE 4
APRIL 2021
Best Places to Work IN DIREC T SELLING 2021
B
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EASY E-COMMERCE DOES IT THE DAWN OF THE PHYGITAL MOVEMENT IN DIRECT SELLING LE-VEL / FROM SPRINT TO MARATHON SOLVASA / MINDFUL INTEGRATION OF BEAUTY & WELLNESS
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Unveiling the leading direct selling companies in the world achieving more than $100 million in annual revenue Celebrating Customer-Centric Companies that are leading the way toward a customer-centric future for the channel Recognizing the 2021 Best Places to Work in Direct Selling Finding out who will claim this year’s coveted Bravo Awards: Bravo Growth awards (Domestic and International), Bravo Leadership award and a new Bravo Global Good award for companies leading the way toward meaningful global responsibility. Honoring industry Legends with more than 50 years of experience in the channel, including Legends honoree and host, and DSN Contributing Editor, John Fleming And so much more!
H O S T S STUART JOHNSON Stuart has served the direct selling industry for more than 35 years as sole founder and CEO of SUCCESS Partners and Direct Selling News. His passion for the channel encompasses a broader commitment to build and connect the direct selling community through exclusive industry events such as Direct Selling University and Direct Selling News Global Celebration.
JOHN FLEMING John has set the standard in sharing the direct selling story with professionalism and commitment. A member of the Direct Selling Association’s Hall of Fame, the Direct Selling Education Foundation’s Circle of Honor, John is also the very first recipient of the DSN Bravo Lifetime Achievement Award and in 2021 is an honoree of the elite Legends group.
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C O N T E N T S A P R I L
2 0 2 1
F E AT U R E
Easy E-Commerce Does It B Y N O A H W E S T E R LU N D & H E AT H E R M A R T I N
The Dawn of Phygital Movement in Direct Selling B Y G O R D O N H E S T E R
46 66
SPOTLIGHTS
Le-Vel:
From Sprint to Marathon B Y J E N N Y V E T T E R
Solvasa:
Mindful Integration of Beauty and Wellness
78
78
86
B Y B E T H D O U G L A S S S I LC O X
86
DEPARTMENTS
74 Executive Q&A
Candace Matthews, Amway’s Chief Reputation Officer
90
WORKING SM ART /
5 Keys to Selling CBD Products Today
B Y
W E N DY Y U R G O - K I N N E Y
I N EV ERY ISSU E 6-7 AD INDEX // 15 FROM THE EDITOR // 17 INDUSTRY NEWS // 40 FORWARD THINKING // 97 DSA MESSAGE // 98 VENDOR DIRECTORY //
4 D I R E C T
S E L L I N G N E W S
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APRIL 2021
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DIRECT SELLING NEWS
Serving the Direct Selling and Network Marketing Executive Since 2004 A SUCCESS Partners Company
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COVER STORY
COPY EDITOR
BEST PLACES TO WORK IN DIRECT SELLING 2021
Peter Tepp
Thirteen finalists made the cut this year.
David Lee Heather Martin Sarah Paulk Courtney Roush Beth Douglass Silcox Jenny Vetter
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MAURICIO DOMENZAIN, Immunotec, CEO DEBBIE BOLTON, Norwex, CO-FOUNDER
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LOGAN STOUT, ID Life, FOUNDER & CEO JOHN SANDERS, Winson & Strawn LLP, FOUNDING PARTNER SINAN TUNA, Farmasi, CEO
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/ FROM THE EDITOR /
Congratulations to the 13 Best Places to Work Honorees! DSN LAUNCHED THE BEST PLACES TO WORK in Direct Selling program in 2016 to celebrate the important role direct selling companies play as employers in the marketplace and identify the best of the best in creating engaging work environments. In this month’s issue, we honor 13 companies as the Best Places to Work in Direct Selling. For this project, we once again partnered with Quantum Workplace, an HR technology company collecting Best Places to Work data for more than a decade. To learn more about the Best Places to Work honorees’ approach to workplace engagement, our Cover Story begins on Page 52. Company profiles also can be found in the special award supplement that came with this issue. Accessible e-commerce technology is more than the sum of a slick mobile app, a buzzy social media feed and a members-only corner of your website. Noah Westerlund and Heather Martin will ease you into our feature article Easy E-Commerce Does It found on page 46. The pandemic created a unique challenge for the industry that will continue even after the pandemic is over. Gordon Hester educates us on The Dawn of the Phygital Movement in Direct Selling and how to master the game on page 66. John Fleming and I were honored with the opportunity to connect with Amway’s Chief Reputation Officer, Candace Matthews, and learn about how Chief Reputation Officers can impact the channel. Read about her thoughts and the company’s strategies for brand reputation, on page 74.
Le-Vel exploded into the direct selling channel in 2012 with their innovative business model, and they are still thriving. “Our focus on better health for everyone is more important today than at any time in our history,” says co-founder Paul Gravette. You can find their story on page 78. On page 86, discover Solvasa and the incredible story and purpose of bringing Mindful Integration of Beauty and Wellness to others. “What you’re feeding your body—whether that be nutrients absorbed through your skin or your gut or waves of thoughts washing through your mind over time—ultimately manifests in your body’s ability to restore and heal or go the other direction,” describes co-founder and CEO Lori Bush. At DSN, we have many exciting things happening right now. This month we are introducing a new refreshed look and website. It is just in time for the upcoming DSN Global Celebration and DSU events, which we hope you will join us for. Also, the Digital Momentum Ranking is going international so check it out on page 36. Find the latest list of CustomerCentric Recognized companies on page 38. If you have any questions or want to apply, visit DirectSellingNews.com/ccr/. At Direct Selling News, we endeavor to be a source, resource and thought leader for the entire direct selling channel. So, if you have a suggestion, a need or an inspiration to share, please reach out. We would love to hear from you. All the best,
Pa t r i c i a W h i t e | E d i t o r | pw h i t e @ d i r e c t s e l l i n g n ew s . c o m @directsellingnews
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SERVICES OFFERED INCLUDE: • Buy side and sell side M&A advisory • Equity and debt financing • Proprietary transactions • Joint venture and partnership opportunities • Institutional advisory
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info@directsellingcapital.com
Stuart Johnson, Partner | spj@directsellingcapital.com Ryan Bright, Partner | jrb@directsellingcapital.com
/ INDUSTRY NEWS /
The Month in News Affecting Our Channel 18 / Recent Expansion 20 / News in Brief 26 / Executive Announcements 32 / Direct Selling Capital Advisors Financial Analysis 36 / DSN Digital Momentum Rankings 38 / Customer-Centric Recognized Companies
/ INDUSTRY NEWS /
E X P A N S I O N S
R ECENT E XPAN S I O N S Xelliss’s operations are based in Luxembourg
XELLISS LAUNCHES U.S. OPERATIONS Xelliss, a Luxembourg-based wellness and
and the company relies on patented
cosmetics company, announced it is launching its
photobioreactor technology to leverage the
spirulina-based product lines in the United States.
production of microalgae as they develop product
“Our objective is to make our innovative and exceptionally high-quality microalgae-based
concepts for customers in the categories of wellness, nutrition and cosmetics.
products available to as many of us as possible,” said Xelliss Chairman Eric Masson. “This is why we decided to take a new step in the development of our company by establishing ourselves in the United States.”
U N I T E D S TAT E S
P U E R TO R I C O
BR A ZIL
EXP WORLD HOLDINGS LAUNCHED IN
MEXICO
PUERTO RICO AND BRAZIL eXp World Holdings, Inc., the parent company of eXp Realty, announced its expansion into Puerto Rico and Brazil. “The expansion into Puerto Rico represents
MYDAILYCHOICE LAUNCHED IN MEXICO
our first strategic foothold in the Caribbean,”
The multi-brand company MyDailyChoice has
said Michael Valdes, President of eXp Global.
launched into Mexico.
“Puerto Rico is ideally positioned to benefit from
“We understand the enormous potential of the
the eXp model. Its tax incentives continue to
Mexico market, so I am dedicated to building a
attract a large number of foreign investments,
world-class operation in Mexico City to ensure our
creating a growing and robust real estate
affiliates and customers are fulfilled through the
market in a territory that combines a rich culture
products and opportunity,” says Chief Operating
and economic stability.”
Officer Kathleen Earle.
The company’s Puerto Rico operations will be
“Mexico represents a huge opportunity for our Affiliates, and a new market we believe will be very excited about the incredible products we’ve been
led by Ivelisse Lopez, who brings more than 27 years of real estate leadership experience. “Our expansion into Brazil marks a milestone
able to offer so far,” says Chief Executive Officer
moment in the growth of eXp, as eXp’s global
and Founder Josh Zwagil. “We are looking forward
footprint now extends to six continents,”
to expanding with even more products very shortly.”
said Valdes.
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THAIL AND
THE HAPPY CO. EXPANDS IN ASIA
of these expansion efforts in the
The Happy Co. announced it has plans
coming months. We will announce
to “aggressively expand” into Asia,
a pre-launch strategy for each of
with the expectation that this move
these markets as we progress. This
will allow their business operations to
will enable our brand partners the
exponentially grow around the world.
opportunity to take advantage of this
“Our initial expansion efforts will focus on locations such as South Korea,
SINGAPORE
M A L AY S I A
expansion to further develop their businesses globally.”
Japan, Hong Kong, China, Singapore,
“This expansion will bring the
CHINA
Taiwan, Thailand, Malaysia, and the
company to a whole new level, and
Philippines,” said Bo Short, CEO of
we are excited about the potential
Elevacity Holdings LLC and Elevacity
growth this can bring to the company
International Holdings LLC. “We have
in the very near future,” said Fai Chan,
already made important strides in this
Director of The Happy Co’s parent
process and anticipate announcing
company, Sharing Services Global
significant progress on the completion
Corporation (SHRG).
H O N G KO N G
TA I WA N
THE PHILLIPINES
S O U T H KO R E A
J A PA N
CHINA
NEW U LIFE LAUNCHED IN NEW ZEALAND, AUSTRALIA AND CHINA New U Life has now expanded into New Zealand, Australia and China. The expansion into these two markets was an integral part of supporting the company’s Asia Pacific region. New U Life has also pre-launched or launched in several markets including Canada, Hong Kong
AU S T R A L I A
and Taiwan this year, with plans for continued expansion around the world. “I am so excited to share SomaDerm and the message of whole-body health with our Australian/ New Zealand family,” said Founder and CEO of New U Life, Alexy Goldstein. “This has been a tremendous year for international growth, and we couldn’t have done it without our New U Life family.”
NEW ZEAL AND
w w w. d i r e c t s e l l i n g n e w s . c o m 1 9
/ INDUSTRY NEWS /
N E W S
I N
B R I E F
For the full articles, visit directsellingnews.com/ category/news/
NEWS IN BRIEF
Sharing Services Global Corporation to Launch Direct Selling Travel Company
S UK Supreme Courts Classifies Uber Drivers as “Workers”
S
even Supreme Court judges in the UK unanimously rejected Uber’s appeal against a 2016 ruling that defined Uber drivers as “workers” under British law. Uber argued that the drivers who brought the claim against the company should be classified as independent contractors. “This ruling will fundamentally reorder the gig economy and bring an end to rife exploitation of workers by means of algorithmic and contract trickery,” former Uber driver James Farrar told the Associated Press. This new ruling has the potential to change the basic structure of the
2 0 D I R E C T
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gig economy, not only in the UK, but in other countries as well, potentially leading to more claims against companies who operate with a similar model. In California, Uber and its competitors evaded a similar ruling by funding Prop 22, which allowed them to continue to classify drivers as independent contractors. This week, Uber’s CEO Dara Khosrowshahi published a white paper that encouraged the EU to adopt similar legislation. DSN
haring Services Global Corporation (SHRG) announced its plans to launch a travel company as part of its direct selling division, and its Hapi Brands subsidiaries. The new travel company will focus on providing benefits and first-class discount travel opportunities to its brand partners and customers, and will function as an exclusive travel club. “We have been planning to enter into this sector and consider now to be the most opportune time of all to announce this initiative,” stated John “JT” Thatch, CEO of SHRG. ‘We have confidence that in the next several months people will want to start traveling again, as the current environment opens up, and we will be ready to offer the very best-in-class products and services for them to take full advantage of their travel experiences. In the near future, we will be unveiling our website, travel programs and exciting pre-launch activities that we believe will be well received by our brand partners and customers.” DSN
3x
improvement in wrinkle visibility
2.75x
improvement in facial hydration Wrinkle reduction as early as
Hydration as early as
8 weeks
4 weeks
Experiential
WHAT CAN ceratiq® DO FOR YOUR PRODUCT? Strong messaging that can be supported by the clinical studies performed with ceratiq®:
Skin Appearance & Wrinkles • Helps reduce the appearance of fine lines and wrinkles • Supports reductions in wrinkle visibility (as early as 8 weeks) • Supports noticeable improvements in radiance and complexion uniformity • Provides long lasting benefits to appearance Skin Hydration • Helps maintain healthy skin hydration • Supports improvements in skin moisture across the whole body • Provides long lasting benefits to skin hydration Overall Skin Health and High-Quality Clinical Support • Decreases itching sensations and squames (flaky skin) • Supports improvements in skin roughness
Build a Lifetime Relationship with Trusted Beauty-from-Within
The potential of ceramides for skin care is about to be unleashed – with ceratiq® Phytoceramides. ceratiq® is the most clinically-studied ceramide ingredient in the world today with more studies, more subjects and better results. This robust body of science helped ceratiq® win the Nutraingredients-USA Ingredient of the Year in the Healthy Aging Category in 2018. ceratiq® works quickly – which means a happier customer and repeat sales. The age demographic for a ceratiq® product runs from millennials to seniors, which can mean a lifetime relationship with your customers. On top of that, ceratiq® can be offered with a wide range of clinically-substantiated claims – that will allow you to cater to what’s hot with your consumers. Trying to launch the next blockbuster skin care product? We can help you get there with ceratiq® Phytoceramides.
THESE STATEMENTS HAVE NOT BEEN EVALUATED BY THE FOOD AND DRUG ADMINISTRATION. THIS PRODUCT IS NOT INTENDED TO DIAGNOSE, TREAT, CURE, OR PREVENT ANY DISEASE.
Contact PLT Health Solutions for samples and more information.
+1.844.PLTHEALTH • www.PLTHealth.com
3 LINES OF EVIDENCE: Objective • Dermatological/Clinical
•
BEAUTY FROM WITHIN
THE LEADING EDGE OF BEAUTY SCIENCE IN AN EASY TO SELL INGREDIENT
/ INDUSTRY NEWS /
N E W S
I N
B R I E F
For the full articles, visit directsellingnews.com/ category/news/
Elevacity Announces New Branding
Isagenix Partners with Rugby Team
I
sagenix announced it will partner with the Newcastle Knights for the 2021 National Rugby League season. As part of this partnership, the two will work together to improve the health of Knights players and the team’s supporters. “We are thrilled to announce our partnership with Isagenix, and I thank Isagenix International and here in Australia and New Zealand for its show of support,” Knights Chief Executive Officer, Mr. Philip Gardner said. “The partnership we are building is truly unique. While it has all the usual elements of a sporting sponsorship, there is also a mutual commitment to helping our community become fitter and healthier. We believe we are breaking new ground in sporting partnerships and we are excited for what is to come.” Knights star players Blake Green and Hymel Hunt have become users of the Isagenix products as part of their pre-season preparation and officially announced the partnership this week. “Our partnership with the Knights signifies the essence of Isagenix–to support people on their path to health and wellbeing,” said Isagenix General Manager of Australia and New Zealand Steve Foxwell. DSN
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E
levacity announced the launch of its new brand identity, The Happy Co. “We are so excited to launch this new brand to a global audience in the coming days,” said Bo Short, CEO, Elevacity Holdings LLC & Elevacity International Holdings LLC. “This is a unique company, with remarkable Brand Partners, who understand the value of community and teamwork. We are honored to serve them as we unleash this new brand, and our ever-increasing portfolio of products to the marketplace. Stay tuned. This is just the beginning!” This new brand approach aligns with the company’s happycentric culture and will focus on sharing this happiness throughout the world through its products and experiences that “truly elevate lives.” “We believe in investing in our people, and this brand evolution was a complete dedication to that investment,” said Garrett McGrath, Elevacity President. “The excitement for the new brand is palpable and so important to align our mission with where we are as an organization.” DSN
USANA Forms Board Sustainability Committee
U
SANA announced its Board of Directors has formed a Sustainability Committee, with the purpose of overseeing and advising on matters related to corporate sustainability, including environmental, social and governance (ESG) and corporate social responsibility (CSR). This new committee will ensure USANA remains accountable and aligned with sustainability, ESG and CSR in its business strategies and activities. “The Board’s formation of a Sustainability Committee aligns with USANA’s core values and vision of building the healthiest family on earth,” said Kevin Guest, Chief Executive Officer and Chairman of the Board. “We will continue to incorporate and advance sustainability-related best practices across all of our markets as we strive to improve communities around the world.” Within the Sustainability Committee will be directors John Fleming, Frederic Winssinger and Tim Wood. Peggie Pelosi will serve as Chair. DSN
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Kannaway “Certified Drug Free” Approval by U.S. Anti-Doping Agency
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K
annaway, a subsidiary of Medical Marijuana, Inc., received Certified Drug Free approval from the Banned Substances Control Group (BSCG) for its broad-spectrum CBD product Pure Gold. This third-party certification provides a stamp of approval for Pure Gold, proving that the product meets quality specifications and is not contaminated with drugs or agents that could lead to health concerns or positive drug tests for professional athletes. “As pioneers in the CBD industry, we were one of the first companies to conduct third-party testing on all of our products and provide those results to our customers,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “This certification furthers our dedication to providing athletes and general consumers alike the confidence to enjoy Pure Gold CBD without the fear of drug testing.” “The greatest value that we can provide our customers with is trust and we aim to offer this time and time again by guaranteeing that our products are of the highest quality, safe, consistent, and accurately labeled,” said Kannaway® CEO Blake Schroeder. DSN
Herbalife Donates More than $3 Million through Nutrition for Zero Hunger Campaign
H
erbalife Nutrition’s charitable arm, the Herbalife Nutrition Foundation, supports 168 communitybased Herbalife Nutrition partners throughout the world to bring nutrition to vulnerable communities. Many of the company’s 94 countries where the initiative operates have made a difference as well. The North America market donated over 3,500 pounds of food to local food banks, Mexico Herbalife communities gifted 5,600 units of Herbalife Nutrition products, and participants in China funded the education of
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nearly 1,500 rural doctors on quality nutrition. “We know what it takes to eradicate hunger and have the ability to do so,” said Alan Hoffman, Executive Vice President for Corporate Affairs at Herbalife Nutrition. “The real question is whether we have the will to do so. Working with our incredible and dedicated partner organizations, we are committed to doing our part to eradicate hunger and have been able to reach communities all around the world. There is still much to do and we are not giving up until we bring hunger to zero.” DSN
doTERRA Launches Nutrition Line to Address Modern Diet Deficiencies
D
oTERRA announced the release of its new doTERRA Nutrition products, a line of natural dietary supplements which includes protein, fiber and greens. These products were formulated to enhance the areas of modern diets that often fail to provide necessary nutrition and fuel. “doTERRA’s mission to Pursue What’s Pure carries over to all products, including our new Nutrition line,” said Dr. David Hill, Founding Executive, Science & Healthcare. “Protein powders are everywhere these days, so it can be confusing to figure out what products to put into our bodies. We have selected the highest quality, scientifically studied ingredients to formulate these new supplements in order to help people stay healthy and strong while living their lives to the fullest.” The line is comprised of three nutrient pillars—doTERRA Protein, doTERRA Fiber and doTERRA Greens. DSN
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EXECUTIVE ANNOUNCEMENTS
Ryan Napierski
Robert “Bo” Short
Kendra McColloch
Nu Skin, Next Chief Executive Officer Ryan Napierski has been selected by the Nu Skin Board of Directors to become the company’s next president and chief executive officer. Napierski will succeed Ritch Wood upon his retirement effective September 1, 2021. Napierski is also expected to assume Wood’s position on the Board of Directors at the 2021 stockholder meeting in June. “The time is right for Ryan to take the reins, consistent with our succession planning process when we stepped into our roles together four years ago,” Wood said. “Ryan has played a critical leadership role in developing and executing our strategy and evolving Nu Skin into a more customer-obsessed, global, digital-first organization. He exemplifies Nu Skin’s mission and is absolutely the right person to lead the company to even greater heights.”
Elevacity, Chief Executive Officer Sharing Services Global Corporation (SHRG) announced Robert “Bo” Short will now serve as the Chief Executive Officer of Elevacity International Holdings LLC and Elevacity Holdings LLC. The company’s primary division is The Happy Co, a direct selling company. “We are very excited to have Bo’s expertise to lead our direct sales companies and specifically their U.S. and international growth,” said John “JT” Thatch, Sharing Services Global President and CEO. Short’s new role will include working alongside the dedicated corporate and field team to enhance the company’s culture and build opportunities while helping them accomplish their own personal goals and aspirations.
SeneGence, Executive Director of The Make Sense Foundation SeneGence Founder and CEO Joni Rogers-Kante announced the appointment of Kendra McColloch to the role of Executive Director of The Make Sense Foundation (MSF), the company’s non-profit organization. “The past year has been extremely difficult for people on many levels,” McColloch said. “One of my goals with MSF is to expand our reach to ensure we are making positive impacts on the lives of women and children all over the world.” McColloch will focus on raising awareness and support for the foundation through connecting with partner agencies and company distributors, leveraging social media strategies and hosting fundraisers.
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E X E C U T I V E
A N N O U N C E M E N T S
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Alan McIntosh
David Kane
Carin Reinhardt
Plexus, Chief Technology Officer Plexus Worldwide announced it has appointed technology industry executive Alan McIntosh as the company’s new Chief Technology Officer. McIntosh has more than two decades of experience building and operating e-commerce, large-scale global infrastructure, cloud solutions and enterprise applications. “With his passion for innovation and entrepreneurship, Alan is a great fit for our company,” said Christopher Pair, President of Operations and International at Plexus. “He shares Plexus’ values and has a proven record of technology and people leadership, remarkable strategic ability, and he understands our global operations.” In his new role, McIntosh will develop and implement information technology initiatives, direct enterprise IT systems that support the company’s business operations and maximize support for customers and ambassadors. He will also work to streamline customer service quality and enhance global business development.
Regal Ware, Senior Vice President, Chief Financial Officer Regal Ware, Inc. has appointed David Kane to Senior Vice President, Chief Financial Officer. Kane is a member of Regal Ware’s Executive Committee and will oversee the finance and IT departments, while working closely with senior leaders to drive growth and make efficiency improvements across the organization. Kane will also coordinate the company’s financial planning, analysis and reporting. “I am pleased to welcome David onboard bringing his executive leadership to Regal Ware,” said Jeff Reigle, President and Chief Executive Officer. “His deep and extensive experience in leading complex integrated solutions with a solid understanding of both business and technology–as well as driving operational excellence–will make an immediate impact as we continue to expand Regal Ware’s global footprint. I am confident David will provide strong leadership and is an excellent addition to Regal Ware’s executive team.”
NewAge, Chief People Officer NewAge, Inc. announced significant changes to its senior leadership team, including the appointment of Carin Casso Reinhardt to the newly formed role of Chief People Officer. “We are so pleased that Carin Reinhardt has joined the leadership team at NewAge as we organize ourselves to achieve our next phase of growth,” said Brent Willis, Chief Executive Officer of NewAge. “We have grown from an idea four years ago to scale of now more than $500 million, and Carin’s expertise will be invaluable as we build the culture and capabilities of a multibilliondollar multinational and leader in social selling.” Reinhardt brings more than two decades of human resources experience to the company. Also included in the announcement was Gregory Gould’s transition away from the company, which will occur between now and July 2, 2021. “We want to thank Greg for all his work and excellent contributions to the firm in getting us to this new threshold and wish him all the best in his future endeavors,” Willis said.
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Milissa Rick Regal Ware, Vice President of Marketing Regal Ware, Inc. announced it has appointed Milissa Rick to the role of Vice President of Marketing. Rick will now be responsible for the company’s marketing structure and approach, digital marketing platforms, service interfaces and the customer experience. “I am pleased to welcome Milissa onboard,” said Ryan Reigle, Sr. Vice President, Sales. “Her deep experience and impressive accomplishments will help Regal Ware strengthen brand engagement and positively impact sales, while growing and retaining our customer base.” In her new role, Rick will work closely with Regal Ware’s divisions and brands including Saladmaster® and ESPRO® on their strategic marketing programs.
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Jonathon McKillip Hapi Travel, President Elevacity Holdings, LLC, the parent company of The Happy Co. and soon-to-be launched direct selling travel company, Hapi Travel, announced it has named Jonathon McKillip as the president of Hapi Travel. “Jon will be leading this company both domestically & internationally, with a cutting-edge platform of products tailored to exceed the needs of both the entrepreneur and consumer,” said Bo Short, CEO of Elevacity Holdings, LLC and Elevacity International Holdings, LLC. “He will work closely with our existing team of seasoned executives, within our family of companies, to plan and announce global pre-launch activities in the coming weeks. I look forward to his unveiling of this new brand and I am excited to have his leadership in place to lead this new venture.” w w w. d i r e c t s e l l i n g n e w s . c o m 2 9
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A N N O U N C E M E N T S
Dr. Lawry Han, PhD 4Life, Senior Director of Product Development 4Life announced Dr. Lawry Han, PhD, has been selected as the company’s new Senior Director of Product Development. Dr. Han is a regulatory specialist, quality engineer and scientist with more than a decade of experience in scientific research and product development. “Dr. Han brings a plethora of unique ideas and skills to the table. I’m excited to count him among the scientists and researchers here at 4Life,” said Dr. David Vollmer, Chief Scientific Officer. Han has been a leader in product formulation, innovating over 100 products, and has been included in the publication of 30 peer-reviewed research papers. “Dr. Han’s assignment represents our company’s two-decade commitment to worldwide leadership in product development and quality manufacturing,” said 4Life President Danny Lee. “4Life Founder David Lisonbee’s commitment to scientific integrity remains alive and well.”
Chris Reid Plexus, VP Appointed to Board of Directors of Council for Responsible Nutrition Plexus Worldwide announced that Chris Reid, Vice President of Compliance and General Counsel, has been appointed to the Board of Directors for the Council for Responsible Nutrition (CRN), a trade association for the dietary supplement and functional food industry. Members of the CRN not only comply with federal and state regulations governing dietary supplements, but also agree to additional guidelines that make up the CRN’s Code of Ethics. Reid’s role with CRN will provide leadership, guidance and oversight for the organization while working closely with CRN staff to develop the association’s strategic priorities for the year. “Chris has brought an exceptional amount of insight and leadership during his tenure at Plexus and has helped the company move forward while optimizing ethics and compliance standards,” said Tarl Robinson Founder and CEO of Plexus Worldwide .
Chris Ross Isagenix, Chief Marketing Officer Isagenix announced that Chris Ross will now lead and develop the company’s overall marketing strategy as the new Chief Marketing Officer. This new role will include overseeing product development and launches, digital design and content and branding. “Chris has extensive experience across multiple industries and has advised leading businesses on marketing strategy, so we’re thrilled he’s joined our team,” said Isagenix Chief Executive Officer Sharron Walsh. “His marketing knowledge and business acumen will be instrumental as we increase awareness of how our amazing products and supportive community can help people live better.” Ross brings more than two decades of experience in marketing, including executive-level leadership positions in the telecommunications and private equity categories. DSN 3 0 D I R E C T
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F I N A N C I A L
A N A L Y S I S
DIRECT SELLING C A P I TA L A D V I S O R S SMALL CAP DIRECT SELLING STOCKS OUTPERFORM THE DOW JONES INDUSTRIAL AVERAGE
T
HE PAST YEAR has delivered unforeseen and unprecedented growth for direct selling stocks. With the majority of large cap stocks reporting their full-year financial results this month, there was significant volatility within the direct selling stocks segment. In spite of this instability, large cap stocks posted gains for the month of February. The Direct Selling Capital Advisors Direct Selling Index (TDSI) rose 3.1 percent during the month, compared to a 3.2 percent gain for the Dow Jones Industrial Average (DJIA). The TDSI now stands 88.6 percent above February 28, 2020 levels. Within the same period, the DJIA gained approximately 21.7 percent.
SMALL CAP STOCKS Every stock within the small cap tracking set (with the exception of LFVN) posted gains and outperformed the DJIA during the pandemic period. The most notable small cap stock within the tracking set was Medical Marijuana, Inc. (OTC: MJNA), which posted gains of 178 percent after a strong January. The company also benefited from its ability to generate interest from investors in the midst of positive regulatory trends around cannabis. Also noteworthy among small cap stocks was Natural Healthtrends Corp. (NASDAQ: NHTC), which set a 52-week high early in February before settling into a consolidating pattern for the rest of the month. 3 2 D I R E C T
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“We can say, with certainty, that no one could have predicted the remarkable run direct selling stocks have had over the last twelve months,” said Stuart Johnson, CEO of Direct Selling Capital Advisors. “We can also say that no one could have predicted that the domestic U.S. market would lead the way to significant revenue growth over the course of 2020.”
LARGE CAP STOCKS n Tupperware Brands Corporation (NYSE: TUP) increased slightly (1.6 percent) in February after setting a new 52-week high in January ($38.59). The stock has traded in a slightly downward consolidating pattern since then. The company’s full year financial results significantly missed analysts’ earnings expectations which resulted in an approximately 20 percent decline in stock value. In spite of this, the stock is still up dramatically the last 12 months. n Nu Skin Enterprises, Inc. (NYSE: NUS) remains up more than 115 percent over the last year, but declined approximately 11 percent in February. The company reported a 28 percent increase in revenue for the fourth quarter of 2020 over the same period of 2019. n Herbalife Nutrition, Inc. (NYSE: HLF) traded down approximately 12 percent for the month. Strong fourth quarter revenue growth of 15.6 percent was still beneath
analyst expectations and resulted in its stocks trading significantly downward. Both NUS and HLF are experiencing the consequences of consistent success and the difficulty of beating increasing analyst expectations. n Medifast, Inc. (NYSE: MED) rose 7.8 percent during February and now stands 216 percent above levels from the same time one year ago. The company’s fourth quarter results beat analyst expectations and included revenue that was up 55.3 percent year-over-year. n USANA Health Sciences, Inc. (NYSE: USNA) stock reached a new 52-week high of $101.50 following the announcement of its fourth quarter revenue results, which increased
14.5 percent year-over-year. Both the EPS and revenue beat analyst expectations by far. n eXp World Holdings (NASDAQ: EXP) rose an additional 13.3 percent and ended the month up 1,163.4 percent over the course of the last year. The company’s fourth quarter results included both record revenue (an increase of 122 percent year-over-year) and profitability, but the stock sank over the next several sessions. n Primerica, Inc. (NYSE: PRI) rose 1.7 percent over the course of the month. It hit a new 52-week high of $149.05 in early February. Its fourth quarter financial results met expectations and included revenue of 12.5 percent year-over-year. w w w. d i r e c t s e l l i n g n e w s . c o m 3 3
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F I N A N C I A L
SHORT INTEREST DATA & ANALYSIS Short interest has generally declined across the industry as the markets reached their mid-March and COVID-19 induced lows. Industry-wide days to cover fell to 2.4, the lowest level since a recorded 1.5 in August of 2020. n USNA fell to 6.9 days to cover, the stock’s lowest levels since July of 2020 n PRI fell to 1.5 days to cover, its lowest level since the TDSI began tracking in March of 2020 n EXPI short interest dropped to 0.7—its lowest levels since the TDSI began tracking data The number of sell-side analysts maintaining “buy” and
A N A L Y S I S
“hold” ratings on industry stocks remained flat at 97 percent, but the number of analysts recommending “hold” as opposed to “buy” increased slightly. The number of analysts recommending “sell” remained sparse. “Looking forward into the remainder of 2021, we see continued strength across the industry, and, from a financial results and stock performance perspective, particularly in the first quarter,” Johnson said. “We believe business will remain strong through the year. However, as we move into the second quarter and beyond, the year-over-year comparables will become more and more difficult to replicate and exceed.” DSN
DIRECT SELLING CAPITAL ADVISORS is a boutique investment banking, business development and corporate finance advisory firm primarily focused on the direct selling vertical, as well as ancillary businesses. Located in Dallas, Texas, Direct Selling Capital’s core service offerings include both buy and sell-side M&A advisory, equity and debt financing, as well as joint venture and partnership opportunities. For more information please contact us at: info@directsellingcapital.com This is a summarized report; for more information, please contact info@directsellingcapital.com.
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D I G I T A L
M O M E N T U M
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D i re ct S e l l i n g N ews
D I G I TA L MOMENTUM RANKINGS Direct Selling News in partnership with Direct Selling Capital Advisors presents the Direct Selling News Digital Momentum Rankings monthly list. The purpose of these rankings continues to be to evaluate and acknowledge the companies experiencing significant growth in their online presence within the last 30 days.
Components
The list represents months of analysis across the three core pillars of social media marketing: web traffic & SEO analysis, Facebook activity, and Instagram activity.
Eligibility
A company is included in the Direct Selling Capital Advisors Direct Selling Momentum ranking when it has an active website, at least one active social media account, and at least 50,000 followers or fans for a single account (Facebook or Instagram). As noted, our initial ranking methodology focuses exclusively on three primary drivers of online presence: web traffic, Facebook activity, and Instagram activity. We’ve aggregated roughly a dozen metrics from these three sources and assessed their change over the last thirty days in an attempt to measure the growth in a company’s online audience, or momentum. A brief explanation of our proprietary methodology follows.
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Web Traffic & SEO
We analyze basic web traffic statistics as a measure of general interest. These statistics seek to measure the number of individuals searching for, visiting, and clicking on links that direct them to the company’s domain. This domain includes the corporate website and (in most cases) the company hosted web pages for individual distributors. Additionally we analyze the number of third party sources referring internet users to the company website, as well as the number of associated keywords, branded phrases, or marketing jargon (hashtags, slogans, etc.) that are popular across the web. Assessing the change in these metrics over time creates an estimated increase or decrease in demand for the company across the web.
Facebook Activity
We gather a collection of metrics intended to measure thirty-day changes in both volume (count) and quality (engagement & communication with) of followers. Assessing the change in behavior on Facebook, we believe, is a valuable tool in determining improvements (or declines) of a brand’s social value.
Instagram Activity
As with Facebook, we focus on the thirty‑day change of our metrics as a measure of social attention, or momentum, assuming a significant change in attention indicates changes in social interest and brand awareness.
A Note on Facebook vs. Instagram
Given varying target markets and consumer profiles, companies seem to often focus on Facebook or Instagram, rather than both. To ensure appropriate credit is given to the correct outlet, our metric analysis and momentum calculation consider which platform appears to be the primary for each company. As an example, if a company has 20,000 Instagram followers and 80,000 Facebook fans, all Facebookrelated metrics will be weighted at 80‑percent (80/100) of the total weighted social media metric score. Similarly, all Instagram-related metrics will be weighted 20 percent. Few companies do not have an active official Instagram account, and so their social media metric is based 100 percent on Facebook performance and changes. There are no companies in the list for which an official Facebook profile does not exist.
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HILE OVERALL AVERAGE GROWTH in fan/follower base for the list was flat for the 100-company list, March has seen a surge in current fan/follower engagement, with many companies exceeding engagement
improvements over 200 percent compared to February. In addition to our ongoing domestic list, we are excited to debut the first International Direct Selling Momentum Index! The list contains companies across the globe, and rankings are calculated with the same metrics and methodology as the 100-company domestic list. MARCH
TO P 5 0
MOMENTUM RANKINGS
I N T E R N AT I O N A L L I S T
1 AMWAY
26 PAPARAZZI
1 ORIFLAME
2 HEMPWORX
27 MARKET AMERICA
2 YANABAL
3 COLOR STREET
28 LE-VEL
3 NATURA &CO. BRAZIL
4 PRÜVIT
29 ARBONNE
4 GIFFARINE SKYLINE UNITY
5 BEAUTY COUNTER
30 TRUVY
5 FABERLIC
6 SCENTSY
31 AVON (LGHNH)
6 COWAY
7 RED ASPEN
32 CHALK COUTURE
7 TIENS
8 EPICURE
33 A C N
8 AVON UK
9 RODAN+FIELDS
34 MARY K AY
9 THE BODY SHOP
10 EXP REALTY
35 ISAGENIX
10 BELCORP BELCORP
11 UNICITY
36 MODERE
11 PM-INTERNATIONAL
12 KYANI
37 HERBALIFE
12 NEW IMAGE INTERNATIONAL
13 MANNATECH
38 YOUNIQUE
13 FARMASI
14 MELALEUCA
39 USANA
14 LYCONET
15 4LIFE
40 PARK LANE
15 NATURALLY PLUS
16 JAFRA
41 JEUNESSE
16 ZINZINO
17 OPTAVIA
42 PRINCESS HOUSE
17 MARY K AY INTERNATIONAL
18 PURE ROMANCE
43 STELLA & DOT
18 INFINITUS
19 IT WORKS!
44 SENEGENCE
19 WARRANTY REWARDS
20 CABI
45 YOUNG LIVING
20 POLA
21 LIFEVANTAGE
46 MONAT
21 VORWERK GROUP
22 WORLD FINANCIAL GROUP
47 XYNGULAR
22 VESTIGE MARKETING
23 NORWEX USA
48 THIRTY-ONE GIFTS
23 OMNITRITION
24 USBORNE BOOKS & MORE
49 PLEXUS
24 ATOMY
25 PARTYLITE
50 JUICEPLUS
25 POLLEN.CO
For more information or questions, submit your inquiry to preston@directsellingnews.com. DIRECT SELLING CAPITAL ADVISORS is a boutique investment banking, business development and corporate finance advisory firm primarily focused on the direct selling vertical, as well as ancillary businesses. Located in Dallas, Texas, Direct Selling Capital’s core service offerings include both buy and sell-side M&A advisory, equity and debt financing, as well as joint venture and partnership opportunities. For more information please contact us at: info@directsellingcapital.com This is a summarized report; for more information, please contact info@directsellingcapital.com.
w w w. d i r e c t s e l l i n g n e w s . c o m 37
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based solely on a company’s customer-to-distributor ratio taking into consideration the following definitions:
Distributor—someone who
DOES have a distributor agreement in place
Customer—someone who DOES NOT have a distributor agreement in place
n
n
R E C O G N I T I O N
BE CU STOM ERCENTRIC RECOGNIZED.
The CCR Program is
n
C U S T O M E R - C E N T R I C
Active is defined as each
customer and distributor must have made a product purchase during the last six months. Active customer and distributor counts are limited to those in
Direct Selling News is excited to present the Customer-Centric Recognition (CCR) Program to celebrate companies that are leading the way toward a sustainable, customer-centric future for the industry. Qualifying companies utilize business models that boast high
the U.S. and Canada.
customer-to-distributor ratios and prioritize customer sales.
Companies must have been in business for at least one year and have a minimum of $5 million in annual revenue. Qualifying companies must
DSN
attain: 5:1 up to 10:1 for Gold status and 10:1 or more for Platinum status.
DIRECT SELLING NEWS
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Companies who wish to learn more or submit a CCR Program Application can go to www.directsellingnews.com/ccr/ or contact editor@directsellingnews.com
D
IRECT SELLING COMPANIES with a strong retail base of satisfied customers are
experiencing impressive growth and deserve recognition and acknowledgment for
their efforts. With evolving consumer expectations and regulatory scrutiny, customer‑centric
equals success for everyone—distributors, direct selling companies, and the channel as a whole. The DSN Customer-Centric Recognition Program acknowledges these companies.
GOLD
/ 5:1 up to 10:1
P L AT I N U M
/ 10:1 and above
MONAT GLOBAL
ACN
NEORA
BHIP GLOBAL, INC.
PERFECTLY POSH
IT WORKS!
TOTAL LIFE CHANGES
KYNECT
LE-VEL
LULAROE
NU SKIN, INC.
SCENTSY, INC.
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FO R WA R D
T H I N K I N G
/ C O M P E N S AT I O N
Customized Compensation Flexibility and personalization are the pillars of Nu Skin’s innovative comp plan. BY DAVID LEE
“
It was about meeting people where they were at finding a place where people wanted to participate whether that was a few hours a week, a few days a week, full-time and everything in between. — J U S T I N K E I S E L / G M o f N u S k i n N o r t h A m e r i c a
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O
NE OF THE BIGGEST attractions of the direct sales industry is the ability to build a business on your own terms around your life. Different people have different goals and different skill levels, which can evolve with experience. The challenge is to design a scalable compensation plan that also provides a personalized experience that matches distributors’ goals. Justin Keisel, GM of Nu Skin’s North America, shared some of the strategies and philosophies behind Velocity—their revamped compensation plan that focuses on flexibility and personalization while helping individuals achieve their desired goals. A global company, Nu Skin had to develop a plan to work across all borders and while leveraging the digital commerce culture. “We were the first in the industry to roll out a global, seamless compensation plan, where regardless of where the volume in your organization takes place, it would roll out across borders,” Keisel says. “It’s about matching the environment. And clearly, the environment over the last five to eight years has been rapidly evolving in terms of digital technologies, social commerce, digital commerce, and that has disrupted every element of the industry.”
$
Instead of creating a universal one‑sizefits-all training,
Nu Skin’s module compensation training allows people to choose the areas that fit their interest and experience level.
traits. “Our segmented plan came out in terms of a sharing segment, a building segment of groups of sharers, and then a leader segment, which is more traditionally leveraging the compensation,” Keisel says. “The sharing/affiliate level is where our business has really been able to grow.”
Scaling Personalization Segmentation with Flexibility
Keisel acknowledges the challenge of the sharp rise in flexible opportunities outside the industry. A successful comp plan in today’s economy not only must address how people earn income but also the way they are paid, when and how often they are paid, what they are paid for, all while keeping it simple enough for people to understand the specific actions they need to take to achieve their individual goals. That’s why Nu Skin created a segmented comp plan that still offers enough flexibility for achieving small to large business goals. For example, once a Nu Skin Affiliate sells a product they’re almost instantaneously paid their sharing bonus through the daily pay feature. “One of the fundamental tenets was flexibility. And that really was less about a progression in a compensation plan that’s all connected to the next step and the next step and the next step,” Keisel explains. “It was about meeting people where they were at finding a place where people wanted to participate whether that was a few hours a week, a few days a week, full-time and everything in between.” Nu Skin noticed this approach was attracting different types of distributor teams with individuals focused on similar goals with similar leadership
Instead of creating a universal one-size-fits-all training, Nu Skin’s module compensation training allows people to choose the areas that fit their interest and experience level. The back office is also tailored to individuals and different teams to create contests, special rewards and other benefits. And it is all driven by the distributor field. “I’ve actually called the field ‘the customization engine of Nu Skin,’” Keisel says. “They really create these dynamic, customized businesses, and our role is to provide them with the framework, the programs, and a flexible approach to business.” A personalized comp plan also fits perfectly with Nu Skin’s approach to customized products. So, the theme extends through the entire experience and company culture. While a more personalized experience may seem to limit duplication, leveraging digital tools helps scalability. “We feel like it’s critical to provide that personalized opportunity and a personalized business. So, it’s really not a cookie-cutter approach,” Keisel adds. “Duplication is easier when it’s the same thing, but it also takes away from the personalized nature of the business. We’ve really leaned in on this convergence between technology and digital tools to allow us to personalize and scale. So, digital has allowed us to scale personalization.” DSN w w w. d i r e c t s e l l i n g n e w s . c o m 41
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75 percent of consumers expect businesses they purchase from to provide personalized experiences, anticipate
It’s Getting Personal
their individual needs, and provide relevant suggestions.
Treating customers like individuals is the core of successful personalized customer experiences.
P
BY DAVID LEE
ERSONALIZED CUSTOMER EXPERIENCES are becoming the norm in entertainment and online shopping. We’re also coming off a year of shutdowns and limited opportunities to physically gather, so people are craving one on-one relationships. This could be a great recipe for the direct selling industry driven by personal relationships. As HubSpot explains it, “One of the fundamental purposes of any personalization effort is to let your customers know that you’re paying attention to them.” According to research from Salesforce, 75 percent of consumers expect businesses they purchase from to provide personalized experiences, anticipate their individual needs, and provide relevant suggestions. Other research showed that 57 percent of online buyers happily exchange personal data for more personalized offers and discounts. A digital consulting firm Infosys report found that more than 31 percent of consumers surveyed wanted a more personalized experience. “The level of success from a one-to-one personalization campaign relies on a number of factors, such as the level of trust the consumer feels with the brand, the accuracy of the campaign, and how personalized messages are delivered (and even the platform they’re delivered on),” describes AB Testy, an online customer experience company.
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Customer Personalization Trends 8 Sharply on the Rise n SHOPPING NAVIGATION / Personalized shopping
navigation doesn’t have to require a ton of data gathering or intricate coding. Many clothing retailers ask website visitors if they are interested in men’s or women’s clothing. It creates a more relevant experience that becomes more intuitive at each step through the navigation. Data exchange or logging into a customer account can create a much more customized experience and save information for future visits. n RECOMMENDED PRODUCTS / The vast majority
of product recommendations are based on searches, past purchases, and similar or complementary products other customers have bought. Recommending products works so well with direct selling companies since so many products and packs are designed to work together for a more complete experience, such as weight loss and energy products. It can also help customers save by combining products or purchasing packs. n MAKING CUSTOMERS FEEL LIKE INDIVIDUALS / It’s about creating a relationship with customers and making them feel special. Customizing product recommendations based on a customer’s age, gender, location, personal preferences and goals increases sales and helps create targeted marketing content. Makeup style recommendations, workout tips, and advice on how to improve your focus are just a few examples of ways to personalize communication to help retention and connect with customers. Custom clothing retailer StitchFix uses more than a thousand personal stylists who leverage user profiles to offer expert style recommendations. Wellness company Care/of has users take a short quiz to help personalize health needs. Product recommendations change as users achieve certain health goals, which can be tracked on the website or through an app. n PERSONALIZED LE AD GENER ATION / Many
replicated distributor websites in the direct selling industry feature some type of lead capture feature such as embedded opt-in forms, pop-ups or contact forms. Asking a visitor for more information such as email, phone number, location and reason for visiting can help build a more targeted profile, personalized communication and
accurate product recommendation. Website visitors can be reluctant to give more personal info unless they understand what they will receive in return, such as a first-order discount or free samples. n PERSONAL CUSTOMER STORIES / Testimonials and
success stories set the direct sales industry apart from a traditional retail experience. They help create culture and communicate a more personal message that connects at a deeper level than regular marketing and advertising. Creating an online space for customers to share photos and short videos allows them to help shape the company and culture along with distributors. Based on the topic in the content, specific photos or videos can be shared with other customers who might be interested in those topics. The content can also be repurposed for future marketing efforts if customers give permission. n GENDER-BASED EM AIL SEGMENTATION / Sports apparel giant Adidas sends gender-based emails announcing sales and recommendations. Even if a certain product can fit men or women, it might help each gender achieve a different desired goal, and that can be communicated with unique messages to men and women. For example, men might be more interested in having more energy in the afternoon, while women may want to curb appetite. One product can offer both solutions, but those benefits can be marketed differently or separately. n GA MIFIED APPS / Shopping through apps is becoming
more mainstream, especially for routine products such as coffee and groceries. Some apps now feature gamification to enhance the customer experience that rewards points for purchases. Badges are earned for certain purchase levels or frequencies. Points can be cashed in for free items or can be gifted to other customers. n PERSONALIZED VIDEO MESSAGES / A CloudChoice
study showed that personalized video messages increased productivity twice as much as impersonalized videos. This could apply to customers or distributors. Taking the time to create short, personalized video messages can be a great way to welcome new distributors or congratulate them for reaching a specific milestone. They can be sent to customers who reach personal goals by using products or to those who refer other customers. Video messages can be posted on social media platforms, in chat apps or linked in emails. DSN w w w. d i r e c t s e l l i n g n e w s . c o m 4 3
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Must Reads POSITIONED RIGHT: THE FORCES SHAPING THE FUTURE OF DIRECT SELLING AND NETWORK MARKETING AUTHOR: GORDON HESTER (GORDON HESTER, 2020)
POSITIONED RIGHT takes a look at the direct selling industry as a distribution channel and business
opportunity. It examines the four key areas where this industry must evolve to secure an even better future. Positioned Right is a transformational blueprint that can ensure that direct selling remains relevant. In this book, Gordon Hester identifies the keys that are ripe for evolution and recommends a path forward for the channel, which is that “direct selling is a customer-centric industry.” Being a customer-centric industry means that people from the industry will have to get used to more measured revenue increases. It’s critical that people from the industry change their mindsets and expectations about what success means for them.
ULTIMATE GIG: FLEXIBILITY, FREEDOM, REWARDS AUTHOR: JOHN T. FLEMING (EMERALD PUBLISHING, 2021)
ULTIMATE GIG, tells a story about the gig economy and why everyone should be
paying attention. Fleming walks readers through the gig economy journey, simplifying the complexity of its beginnings, how technology influenced its rise, what attracts and motivates gig workers, the roles women play, primary research conducted on the gig economy, the challenges, and who the game changers have been. Direct selling could very well be, or become, the ultimate form of gig work. Read the book to understand the importance of independent contractor status, micro-entrepreneurship, and the attributes of flexibility and freedom in how work can be done.
TRANSFORM YOUR WORKPLACE HOSTED BY BRANDON LAWS (APPLE PODCASTS) The Transform Your Workplace Podcast covers everything you need to build a great workplace. Industry experts, thought-leaders, HR experts and entrepreneurs join Brandon Laws to discuss big ideas that can transform your organization. Each week Transform Your Workplace covers a new topic, ranging from HR, communication, culture, business growth, leadership and workplace trends. DSN
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®
Available Now
at Your Favorite Bookseller www.ultimategigresources.com
The gig economy is redefining how we work.
"Our motivation for taking on the research of the gig economy and writing this book is rooted in a belief that the gig economy is providing a new reality: flexibility and freedom in how work is done can be achieved.” — John. T. Fleming
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Easy E-Commerce Does It HOW TO MAKE ONLINE SHOPPING TOOLS ACCESSIBLE TO DISTRIBUTORS & CUSTOMERS
BY NOAH WESTERLUND W I T H H E AT H E R M A R T I N
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T Making a tech tool easy for anyone to use doesn’t mean you have to water it down.
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HE AMOUNT OF SHOPPING we do from smartphones, smart speakers and smart TVs has made shopping in person seem almost novel. From the couch, kitchen or car we browse and buy online in minutes—especially as we stick close to home because of the pandemic. But don’t mistake tech ubiquity and convenience for tech accessibility. Accessible e-commerce technology is more than the sum of a slick mobile app, a buzzy social media feed and a members-only corner of your website. In our January issue, we told you that accessible technology—one of the four tech benchmarks of a strong e-commerce strategy—is personalized (like when the algorithm remembers and helps a customer reorder their favorite product) and customized (offering certain content for distributors and certain content for consumers). It’s even more than that. Accessible tech is easy to operate regardless of a user’s technical skills; it doesn’t see customers as modified versions of distributors; and it respects the power of social media and uses it strategically and responsibly. Let’s dig deeper into what accessible technology is and the strategies that will help you create it.
No Savvy Required
Just because a distributor can log in to your back office or a customer can download your app doesn’t mean they’ve mastered your technology. They need to be able to use those tools in ways that help them get products they want or build the business they want. Assume that no one is a tech native, and you’re more likely to design intuitive systems that someone with even minimal skills will feel confident using immediately. Making a tech tool easy for anyone to use doesn’t mean you have to water it down. It means you design it so that a customer or distributor can accomplish a goal without having to think about how the
INVESTING IN TECHNOLOGY, FOR REAL
(67 percent) have increased their technology budget over the last two years. Of those that are increasing
S
their budget, half (51 percent) have increased by more than 10 percent.
TRATEGIES FOR MAKING
67%
According to the Deloitte analysts,
TECHNOLOGY ACCESSIBLE
“the new rule of retail” looks a lot
are well and good on paper,
like the current model of direct
but they take a firm financial
selling, which is good news for our
commitment to implement.
industry because, they say, “it’s about
In a survey for its 2021 retail industry
looking for new revenue models,
analysis, consulting firm Deloitte
like subscriptions or memberships,
found that only three in 10 executives
and forming new partnerships and
said their organizations have “mature
alliances to create a profitable and
67 PERCENT OF
digital capabilities” and that they’re
digital omnichannel experience.” So,
COMPANIES SURVEYED
planning to significantly increase
we have an advantage over those
HAVE INCREASED
their investments in e-commerce,
who have to wrap their heads around
contactless capabilities, and store
these concepts before they will invest
technology upgrades.
in them.
THEIR TECHNOLOGY BUDGET OVER THE LAST TWO YEARS.
According to DSA’s 2021 Digital
Even so, we can’t take our
Transformation Study, all survey
advantage for granted. Look at your
respondents indicated “digital
operations and budget and determine
transformation” is a priority. The
whether you are putting the money
average share of corporate budget
and people power where you want
allocated toward technology is
your technology to be.
8 percent. The majority of companies
tool works. For example, minimize the number of clicks it takes to find a product and then to purchase it. Other ways to make your app user friendly include: n
n
n
n n
adding a “bookmark” function so the user can pick up later where they left off; making it cloud-based, which saves device memory; allowing passwordless log-in (with face or fingerprint identification); adding voice command capability; and making it responsive and adaptable.
Just because you think you’ve created the userfriendliest app or website ever doesn’t mean you have. You must validate that with data. Pay attention to if and how people are using your tech tools. Track shopping cart dropout rates and app usage trends.
Document which functions people are using and which tasks they’re regularly completing in your back-office system. Ask customers and distributors if your tech tools allow them to do the bare minimum or if they make it easier for them to do their jobs or order their favorite products. These are just some of the meaningful points you should be gathering so that you can measure the effectiveness of your technology. We’ll talk more about data collection in an upcoming feature.
Sparking Customer Joy
Our industry is making great strides toward being more customer-centric, and we have more ground to cover. As you develop your e-commerce tools, look for ways to design online customer experiences that aren’t just tweaked distributor experiences. For example, It might seem efficient to use your w w w. d i r e c t s e l l i n g n e w s . c o m 4 9
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Social media is becoming more and more difficult to operate, as the rules constantly change. distributor enrollment process as a template for customer recruiting—just turning certain features off, for example. But if it’s built on a distributor model, it’s still probably going to feel alien to a customer. Ask yourself what you would create if you were starting from scratch for a shopper. You might be asking a customer for personal data that you really don’t need if that customer isn’t interested in being a business builder. You also might be missing an opportunity to add something that would make the customer experience safer and more enjoyable. A customer who enjoys shopping with you is more likely to shop with you again, which also keeps distributors happy. Aside from making your tech logistically simple, as we talked about earlier, consider the latest e-commerce tool trends, like shopping via video. For example, the NOW Technologies app allows users to click on a Facebook video about a product to purchase that product. Making it easy to return a product without talking to a customer service representative is also a growing trend in customercentric e-commerce, as are strategies like these: n posting
videos of influencers talking about your brand and products n highlighting how your brand aligns with consumer values, like environmental protection or support of certain charitable and civic causes n offering more personalization and loyalty programs n diversifying (non-credit card) electronic payment options
Social Media Rules
Direct selling’s biggest advantage over traditional retail and other ecommerce gigs is the fact that we are relationship-driven. We don’t work if we don’t make personal connections. But these connections have to be rooted in authenticity or they won’t last.
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Social media may be the biggest, if not the most important, item in our accessible tech toolkit. It allows us to start personal conversations more quickly than ever, but it can just as easily damage trust, which is hard to rebuild. It takes seconds for a distributor (usually unwittingly, but still) to post misleading product or earnings claims for a massive number of people. Once something like that goes viral, containing it can become impossible. Social platforms also are rolling out increasingly popular but proprietary commerce tools that don’t always work well with our back-office systems. Your technology development team will need experts who can make your systems as compatible with these social commerce tools as possible. On a more troubling note, social media platforms are beginning to take a harder line with our industry in general. In December, TikTok banned multi-level marketers from using its platform to talk about their products and experts say it won’t be the last social media site to do so. Companies are nervous. And with good reason. Social media is becoming more and more difficult to operate, as the rules constantly change. The good news is, we are an adaptable industry. We have weathered big storms before, and companies that lead with integrity and continue to demand compliant, ethical behavior will distinguish themselves in the marketplace from those that don’t.
Accessibility Imperative
Before COVID-19, our industry was moving toward becoming more digitally forward. The pandemic accelerated the move. While we will return to in-person experiences once it’s safe, we have likely transformed our relationship to and use of technology. It’s no longer an option. It’s an imperative. Make it an accessible one. DSN
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LET’S TALK | 310-428-9936
app@successpartners.com
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Best Places To Work IN DIREC T SELLING 2021
BY COURTNEY ROUSH
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13 FINALISTS MADE THE CUT THIS YEAR.
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HE BEST PLACES TO WORK PUT A LOT OF STOCK IN EMPLOYEE ENGAGEMENT, AND FOR GOOD REASONS.
High levels of employee engagement can have a profound and measurable difference on the bottom line, positively affecting morale, retention and loyalty, their quality of life outside the office and employees’ health and safety, as well as company productivity, sales, profitability, product quality and customer service. Best of all, high engagement has a spillover effect. Engagement is difficult to fake. Consumers can sense when employees aren’t being genuine and, according to Quantum Workplace, 7 out of 10 of them will spend 13 percent more with a company that provides excellent customer service. As direct sellers, we’re always looking at ways we can raise the bar on the personalized service we extend to independent distributors and their customers. Our ability to do that effectively depends in large part upon our employee engagement efforts—a job that has become considerably more difficult with the advent of the COVID-19 pandemic last year.
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Consumers can sense when employees aren’t being genuine and 7 out of 10 of them will spend 13 percent more with a company that provides excellent customer service. — Q U A N T U M WO R K P L A C E
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Congratulations to all of our
2021 Best Places To Work
in Direct Selling Honorees! 6 -T I M E W I N N E R Nu Skin
5 -T I M E W I N N E R S Jeunesse LifeVantage Xyngular
4 -T I M E W I N N E R S Plexus USANA
3 -T I M E W I N N E R S MONAT Scentsy
2 -T I M E W I N N E R S
For more than a decade, Quantum Workplace, an employee engagement software company, has been conducting in-depth surveys with organizations throughout the world, representing nearly every industry sector, in an effort to measure employee engagement. Organizations who know where they stand can make an effort to focus more intensively on the drivers and address the detractors of employee engagement.
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Modere Noonday Collection SeneGence
F I R ST
TIME WINNERS
The Happy Co. Neora
Direct Selling News has once again partnered with Quantum Workplace to measure, analyze and, ultimately, honor the industry’s best places to work. The contest is open to any direct selling company in North America with more than 40 employees. For the purposes of our 2021 Best Places to Work in Direct Selling survey, Quantum compared our survey results with all other Best Places to Work survey results, then held them up against the top three overall Best Places to Work results. Finally, Quantum compared the results of this year’s direct selling surveys against last year’s. We opened nominations August 17, began surveying the submissions October 26 and closed the survey December 18. This time around, the survey generated 20 percent more participating employees from the direct selling sector, and the results indicated a 3 percent increase in overall engagement score for the direct selling industry. Thirteen outstanding companies made the cut for our 2021 finalists. While each brought unique characteristics to the table, what they shared was a strong commitment to employee engagement. Their success suggests that investing the time and resources necessary to foster engagement and trust long before a crisis will enable your employees and your organization to adapt more quickly when circumstances demand it. Here are some top-line takeaways from the direct selling survey analysis:
The last 12-plus months have disrupted the global economy, the workplace and the home. Our industry is no different from any other from the standpoint that we’ve had to pivot to a predominantly virtual model. Inevitably, this change in work environment has made employee engagement a much more challenging proposition, especially for those companies unaccustomed to remote working arrangements.
n WHILE THE PERCENT of highly engaged employees increased by roughly 8 percent since 2020 for direct selling companies, that figure still lags 6.2 percent behind the national average. n SINCE 2020, the direct selling industry saw an increase in favorability in several areas—most notably, perceptions related to recognition, career development and confidence in the future, all of which increased significantly. w w w. d i r e c t s e l l i n g n e w s . c o m 57
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4“If I contribute to the organization’s success, I know I will be recognized” increased 9 percent. 4“I see professional growth and career development opportunities for myself in this organization” increased 8 percent. 4“I believe this organization will be successful in the future” increased 8 percent. n REGARDLESS OF company size, direct selling employees have confidence in the people with whom they work most closely and trust that their managers care about them.
n REGARDLESS OF COMPANY SIZE, direct selling employees are less favorable toward questions related to change management, fair pay, growth and development, and performance expectations. As is common, larger organizations tend to be less engaged with lower favorability when compared with smaller organizations. Large direct selling companies fall behind medium companies on most of the survey questions—28 out of 30 standard items, to be exact. n HOWEVER, LARGE direct selling organizations are slightly more favorable when it comes to confidence in
1
EMPLOYEE ENGAGEMENT PROFILES QUANTUM WORKPLACE CLASSIFIES EMPLOYEES IN FOUR DIFFERENT CATEGORIES BASED ON THEIR RESPECTIVE LEVELS OF ENGAGEMENT:
4
DISENGAGED: It’s time to cut these employees loose. They’re completely disconnected from the workplace, and the longer they stay, the more their negative attitude rubs off on their colleagues and hinders productivity.
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BARELY ENGAGED: With one foot out the door, these employees are a turnover risk. They’re barely connected to the workplace, with an indifferent attitude and low motivation.
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2
MODERATELY ENGAGED: While they’re moderately connected to your workplace, something is holding them back. The good news is that you still have the chance to pull these employees back in by finding out what motivates them.
HIGHLY ENGAGED: These employees are your company ambassadors. They preach organization love, go the extra mile and plan to stay. The more highly engaged employees you have, the better.
69% 70%
[8 % I N C R E A S E ]
[9 % I N C R E A S E ]
2020 202 1
Sixty-nine percent of direct selling employees see opportunities for growth and development (up 8 percent since 2020), and 70 percent believe they will be recognized for
the future. More than 90 percent of employees at large organizations say they believe their companies will be successful in the future compared with 88 percent at medium-sized organizations. This perception may be driven by cultural and economic impacts related to COVID-19—that is, these employees trust that their companies can weather the storm and survive the pandemic. Employees at smaller organizations may tend to be less confident overall. n AT MEDIUM-SIZED direct selling organizations, employees are significantly more likely to say they trust their companies to treat everyone fairly. More than 90 percent of employees at medium-sized companies believe their organizations will treat everyone fairly, compared with 83 percent of employees at large direct selling companies. Questions related to diversity, equity, and inclusion have been among the hottest topics for executive teams in 2020 and 2021; organizations are keenly aware of the importance of these items, and many are focusing efforts at improving and enhancing perceptions here. n EMPLOYEE ENGAGEMENT has increased significantly for the direct selling industry overall since 2020. Roughly two-thirds of all participating employees are measuring as Highly Engaged (67 percent). In 2020, 59 percent measured as Highly Engaged. n PERCEPTIONS RELATED to recognition and career development increased the most. These two areas have increased by nearly 10 percent since 2020. Sixty-nine percent of direct selling employees see opportunities for growth and development (up 8 percent since 2020), and 70 percent believe they will be recognized for their efforts (up 9 percent since 2020).
their efforts (up 9 percent since 2020).
_______________________ World Class
RECOGNITION For World Class
PERFORMANCE
_______________________
www.eadion.com w w. d i r e c t s e l l i n g n e w s . c o m 5 9 Call 1-800-445-1007wfor a distributor near you.
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n PERCEPTIONS OF DIVERSITY, equity, and inclusion vary by organization size. Medium-sized direct selling organizations were considerably more likely to score highly when employees were asked to consider perceptions of fair treatment. Specifically, 92 percent of medium-sized companies said everyone is treated fairly at their companies, compared to 83 percent at large-sized direct selling organizations. Quantum Workplace’s report, The Impact of COVID-19 on Employee Engagement, collected data from more than 470,000 employees from over 6,000 organizations, including direct sales companies, between Jan. 1 and May 12, 2020. The report found that when COVID-19 began to spread throughout the United States in early January, employee engagement dipped from 78 percent
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Highly Engaged to 70 percent Highly Engaged in mid-February, then rebounded to 83 percent Highly Engaged after U.S. restrictions were instituted in late March. This spike represented an 11 percent increase in engagement levels during the same period in 2019. To what can we attribute this bounce upward? Quantum theorizes that during times of economic downturn when friends and family members are losing their jobs, those who are still lucky enough to be employed are finding a renewed appreciation for their jobs and their employers. Communication also is key here: Those companies who communicated early and often—and who, through words and actions, prioritized their employees’ health, well-being, safety and work/ life balance—saw a year-over-year improvement in employee engagement.
“
Thinking ERP? Think Squire.
Leveraging technology allowed us to maintain high engagement in a safe and responsible manner—albeit in a virtual setting—including onboarding new hires, weekly townhalls with the president, regular wellness check-ins, and increased learning and development online.
A NetSuite implementation from Squire is unique: We take the time to understand your business goals and processes. Only then do we create a custom NetSuite solution that will meet your unique business needs.
— J A M E S R O H / C h i e f H u m a n R e s o u r c e s O f f i c e r, S e n e G e n c e
As we consider the 13 Best Places to Work in Direct Selling, several highlights emerge that clearly have contributed both to their high levels of employee engagement and their resiliency during a challenging year.
NETSUITE IS THE WORLD’S MOST DEPLOYED CLOUD ERP SOLUTION
Strong Culture that Preceded the Pandemic
It turns out that companies who communicate and live by a steadfast set of principles from the beginning may not only be able to weather the storm like the one we’ve USAGE stronger OF TAGLINED been enduring, they may even emerge when LOGOS the winds settle. The tagline "AUDIT.TAX.ADVISORY" “In a challenging year, this became our unifying only accompanies the logo in circumstances where context requires message: Be grateful for our jobs and families, and be clarification about what Squire can do for current and potential customers there for our distributors,” says (the James Roh, Chief Human audience). Resources Officer at SeneGence. “Leveraging technology For example, Squire.com and its subsequent web pages allowed us to maintain high engagement in afeature safethe onetagline version (HIGHER and responsible manner—albeit in a virtual setting— PERSPECTIVE ONLY) of the Squire logo because the subpage content including onboarding new hires, weekly with throughout the townhalls site provides adequate context to visitors. the president, regular wellness check-ins, and increased On the other hand, if the team attends learning and development online.” a national financial trade show where Squire should differentiate itself from a neighboring financial software company, then trade show banners need to include the tagline, “Audit-TaxAdvisory.”
Treat the secondary tagline like it’s part
Learn more at a briefing seminar at
One-tagline version of full color logo
Secondary-tagline version of full color logo
One-tagline version of white logo
netsuite.squire.com ( 801) 225-6900
AUDIT · TAX · ADVISORY
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QUANTUM WORKPL ACE METHODOLOGY
“
Being clear, transparent, and authentic as we navigated through the changes has created increased trust throughout our organization. — P A U L J O N E S / C h i e f L e a d e r s h i p D e v e l o p m e n t O f f i c e r, U S A N A
THIS IS THE SIXTH CONSECUTIVE YEAR THAT DIRECT SELLING NEWS HAS PARTNERED WITH QUANTUM WORKPLACE TO MEASURE, ANALYZE AND, ULTIMATELY, HONOR THE CHANNEL’S BEST PLACES TO WORK.
W
e opened
the others, although certain
nominations
topics may be covered more
August 17, 2020,
frequently than others.
began surveying October
Six of the 30 questions
26 and closed the survey
on the survey are designed
December 17. Thirteen
to quantify discretionary
outstanding companies
effort, intent to stay and
made the cut for our
advocacy for company.
2021 honorees.
The other 24 questions
Since 2010, Quantum has
measure workplace culture,
surveyed more than 8,000
identifying, for example,
organizations annually
the kind of conditions under
representing numerous
which employees are more
industry sectors through the
likely to advocate for their
Best Places to Work Program.
employers. The questions
This year marks the sixth
may be standard, but the
year that Quantum has
results are highly individual.
surveyed the direct selling
They shed light on what each
industry. The Best Places
company can do to retain
to Work Program survey
their valued employees. And,
utilizes the same 30 questions
as we examine the direct
across six categories for all
selling channel, those results
participants, regardless of
suggest some patterns within
industry. No single question is
our broader industry that
weighted more heavily than
merit discussion.
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One of the most rewarding payoffs for any company investing in a strong culture is the growth of cultural ambassadors among its employee base. “Employees who have loved our culture in the past and recognized it’s not something to take for granted have worked hard to do things that maintain and even build the USANA culture,” notes Paul Jones, Chief Leadership Development Officer.
Communication, Communication, Communication
A study conducted by MIT Sloan Management Review, the results of which were published in October 2020, analyzed what 500 companies did during the first six months of the COVID-19 pandemic, including how well and how often their respective leadership teams communicated with employees. The top-scoring 50 companies “excelled at transparent leadership, effective top team (senior leadership) communication, and clearly communicating strategy throughout the organization, and they fared well in employees’ general assessment of transparency throughout the company. Transparency is everything. While the mantra “business as usual” may provide a brief moment of reassurance, companies who acknowledge in frank terms the reality of a crisis like this one—both through their words and through their actions—reap the rewards with respect to employee engagement. “Being clear, transparent, and authentic as
Openness to Change/Agility
we navigated through the changes has created increased trust throughout our organization,” USANA’s Jones says. “People could feel that we had their backs with all of the uncertainty around them.” “One of our mantras is we shoot each other straight,” says Michele Oborn Virchow, Senior Vice President of Human Resources at LifeVantage. “Being transparent with our employees, especially during the pandemic, has been key to keeping our employees feel connected. We’ve found it important to reinforce the relationships between employees and their supervisors. It’s been a stressful time for employees, [so] we’ve expected managers to be very understanding and check in with employees frequently, so they feel supported as much as possible.” “At the early stages of the pandemic, Noonday leadership was vulnerable and forthcoming about the uncertain financial and operational outlook,” says Travis Wilson, President and CEO at Noonday Collection. “While refraining from making ungrounded promises, Noonday leadership did commit to putting people first in all decision-making. The executive leadership team was in regular contact with managers and the team at large. Regular, relevant, and personalized communication proved essential.”
The MIT Sloan Management Review also found that top-performing companies responded to environmental changes with more agility than their 450 counterparts; “employees in the leading companies were more positive about their employer’s focus on the external strategy despite market changes.” Prior to the COVID pandemic, says Modere HR Director Shanna Whiting, “we felt very strongly about having team members together in a central location. As time has passed and we’re now at a year in this remote work shift, we now realize that we are just as productive working remotely, and this arrangement works for a lot of our team members. This has allowed us to expand our candidate pool for recruiting into other states and areas in the U.S.” At SeneGence, HR provided managers the opportunity to learn and develop new skills and best practices online, including several that addressed modern challenges like practicing effective communication in virtual settings and how to coach and provide constructive feedback. Noonday moved from an annual goal setting and appraisal cycle to a quarterly one and instituted a new weekly rhythm of reflection and assessment to encourage employees to assess their likelihood of delivering on their goals on a weekly basis. Plexus hired more than 100 new team members in 2020, most of whom haven’t yet set foot in the company’s headquarters. “This required us to redesign the new hire orientation program for the virtual environment. We mailed Plexus swag to people’s homes and created many opportunities where they could hear from the executive team. The feedback we continue to receive from our newest team members is fantastic,” says Mary Beth Reisinger, Chief Human Resources Officer. “We definitely proved that we could accomplish a lot while working in a virtual environment,” says Amber Olson Rourke, Co-Founder and Chief Sales & Marketing Officer at Neora. “Regardless of the physical work location, as long as we are focused on our key objectives, we can get the job done. In the future, I see us creating a good blend of a flexible virtual working environment that also includes enough in-person time to build the relationships and synergy that are hard to re-create virtually.” 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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According to Harvard Business Review (JanuaryFebruary 2018), “In a dynamic, uncertain environment, in which organizations must be more agile, learning gains importance.” USANA recognized this early in the pandemic. Its HR department moved the company’s library of interactive leadership and development courses online, and “we’ve also encouraged everyone to find and join any webinars or online conferences they feel would be helpful to them professionally. When people are learning and growing, they tend to be more fulfilled and positive,” Jones says. The last 12 months have been the ultimate learning experience, revealing inherent strengths as well as opportunities for companies in our industry. “We underestimated our organization’s capability to complete our work and excel in a time of crisis. Our people have proven that Nu Skin is ready for and will reshape the future of the employee experience with much more flexibility. We moved five to eight years in our adaptability in only one year of lockdown,” says Jeff Bettinger, Nu Skin’s Chief Human Resources Officer.
Commitment to Recognition
In 2020 it was probably more important than ever to lift and encourage employees. “2020 was not a year for red-carpet pageantry,” Noonday’s Wilson says. “It was tangible demonstrations of care and concern that allowed team members to feel seen and valued.” Noonday began sending team members restaurant gift cards to employees on their respective birthdays. In place of its in-office product line launch lunch celebrations, it gave team members the opportunity to purchase lunch on the company and then join Zoom to celebrate employees’ collective hard work. Plexus started its very first book club, offered employees online workout classes and mental health resources, and several opportunities to volunteer virtually. As part of its effort to recognize exceptional performance, the company also promoted nearly 25 team members into new roles.
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We definitely proved that we could accomplish a lot while working in a virtual environment. — A M B E R O L S O N R O U R K E / C o - Fo u n d e r a n d C h i e f S a l e s & M a r k e t i n g O f f i c e r, N e o r a
Modere held a drive-by soup lunch for its employees. “It gave us a chance to say hello and interact, even if for only a minute with our employees,” says Whiting. “We have an amazing team, and facing this challenge together has brought us even closer together. We’ve been able to get to know each other on a different level.” SeneGence held a Halloween costume contest, its first Thanksgiving “drive-through” lunch and food drive, and a week of holiday contests, raffle prizes, and a toy drive for local charities. The direct selling industry must be prepared for post-pandemic life, when unemployment decreases and employees may be more willing to consider new opportunities. In its 2020 Employee Engagement Trends Report, Quantum states that “it is difficult to predict the extent to which our experiences will return to normal (or what our new normal might be). But we do expect that the fundamentals of employee engagement and employee success will remain constant. Organizations will still need to attract and select the best talent—and ensure that those high performers are engaged and contributing to business success. Employee engagement is more important now than it ever was in pre-pandemic times.” DSN
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M O V E M E N T
The Dawn of the Phygital Movement in Direct Selling BY GORDON HESTER
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HERE HAS BEEN A GREAT DEAL OF RESEARCH and ongoing discussion around the pandemic and its impact on direct selling. The data clearly demonstrates the power and agility of direct selling as both a distribution channel and business opportunity. The pandemic has forced our industry to operate in a world that is more virtual than at any time in our industry’s history. We are facing new opportunities and challenges. The direct selling community is asking, “How will the pandemic require direct selling to evolve so that it remains relevant in the marketplace?” For the first time in history, direct selling is operating in a virtual world; where live meetings are replaced with Zoom calls and virtual events. Social selling became the buzz phrase used by many companies in the industry to differentiate their company from only being seen as a direct selling company. The focus on e-commerce, technology and data are growing at a rapid pace. Our industry is forced to learn new skills and to adapt quickly to succeed in the digital world. The pandemic has changed the trajectory in which direct selling will operate in the future.
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The pandemic has changed the trajectory in which direct selling will operate in the future.
The pandemic created a unique challenge for the industry that will continue even after the pandemic is over. The “new normal” will require us to build our business both online and offline. While social selling helped teach distributors how to sell in the digital world, the challenge we face is building culture and community in the world we live in today. Our strength has been defined by our ability to build culture and community offline. This will always be a timeless fundamental to our business model. The value-add for direct selling has always been people building relationships with people. We always understood the powerful need people had to belong to something. We are masters of “Cultural Addiction,” the behavioral game of building a massive critical mass that included both customers and distributors. Direct selling was built around this fundamental concept. It differentiates us from many of the other businesses that use an independent contractor entrepreneurial model to drive sales, especially the GIG opportunities.
So much of business today exist in the virtual and digital world. I don’t see that changing. On the contrary, I suspect it will grow. Our customers live there. Our distributors live there. Our employees live there. Every part of the direct selling ecosystem is impacted by this change. Ultimately, we are forced to master the experience game both online and offline. This is the beginning of the Phygital Movement that will play an important role in the in the future of our industry. The term “Phygital” is not a term you hear much in direct selling. Phygital marketing is not a new term. However, I have not seen it used in the transformation of a business culture. Just like selling has created an omnichannel focus, the Phygital movement is requiring us to create a multi-channel approach to delivering a more complete and satisfying experience for those who live within our business cultures. Anyone that understands the business knows its foundation is built around the customer experience and customer journey. A great example of where this concept is utilized today in direct selling is the focus on UX and UI in the e-commerce world. Technology companies are having to be more innovative in 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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The challenge we face is building culture and community in the world we live in today.
helping customers enhance the interaction with consumers shopping on their websites. We are seeing new technology tools enhance our ability to succeed in the digital world. Because more are shopping online, all businesses, including direct selling, must master the experience game with online shopping. As a long-time student of behavior, I have spent much of my career trying to understand and master the experience game. I understand that relationships are correlated to engagement which means they are critical to building culture. Engagement is a simple formula, “Engagement = the triumph of hope over experiences.” When the experience game isn’t working well, hope is all that is left to keep people engaged. However, hope is nothing more than one’s belief system about the future. Our industry is one of the best in the world at marketing hope. Hope opens doors, but experiences are the key to building relationships.
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The online world operates in a similar way when it comes to what we define as a “great experience.” Great experiences are defined by five key organizing principles. They need to: 1. BE POSITIVE 2. BE MEANINGFUL 3. CREATE HOPE 4. CONFIRM HOPE 5. MAGNIFY HOPE There is an important component of experience that matters in both the online and offline world. Hope is a beggar. It requires experiences to both confirm and magnify experiences. If not, hope does not turn into reality. If hope fails to deliver on the expectations we create for others, our industry and those in it will lose trust. Even worse, the loss of trust can lead to an army of brand terrorists and have a profound consequence to the future of direct selling.
The Phygital world requires us to modify the experience game. It is bigger than just selling on social media platforms. This is where we see a much bigger focus on technology to facilitate immediacy, immersion and interaction. We can no longer be relevant as a distributor channel or business opportunity if reliance is solely on building relationships and culture offline. We are forced to
connect these worlds to enhance every aspect of our business as to provide a synergetic experience. Remember, people in the marketplace today seek a more connected experience—an experience where the physical and digital coexist in the same journey for both customers and distributors. Everything starts with awareness. However, awareness has little value unless it turns into 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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execution. If we are going to master the Phygital game, here are some key components that will help us do that.
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Better understand our audience from a behavioral perspective. Embracing segmentation of the different relationship avatars that are critical to the success of building connection and culture.
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More journey mapping of touchpoints and embracing data analytics to understand and strengthen the journey of both customers and distributors.
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The adoption of emotional and empathy mapping, a tool used in collecting data about customers to better understand the target customer base. They allow you to visualize customer needs, condense customer data into a clear, simple chart, and help you see what customers want—not what you think they want.
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Utilization of new technologies to understand and enhance our ability to win the experience game. Train our distributors so they can succeed in the digital world and learn from those who bring that understanding to us.
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It will require us to modify our thinking around scaling our businesses. To scale up, we must scale down. We must get in the trenches with our people to ensure we see the world from their perspective.
We are at the beginning of the Phygital movement. Mastering the experience game both online and offline is the “new normal.” It will drive sales, improve customer retention, elevate distributor engagement, attract a different type of talent to our industry, magnify the power of our brands and enhance the perceptions about direct selling. Ultimately, it will ensure that direct selling remains relevant and leads in the marketplace as both a distribution channel and business opportunity.
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People in the marketplace today seek a more connected experience— an experience where the physical and digital coexist in the same journey for both customers and distributors.
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GORDON HESTER is a direct selling industry veteran, lecturer, consultant and an accomplished author. He is on the DSA Research Committee, the DSA Government Relationship Committee and is on the Board of the DSEF. Hester owns a stack technology company, Shapetech Solutions.
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There will be other key aspects of our business model that continue to evolve. We are seeing a shift in compensation plans and strategies. There will be increased focus on the micro-entrepreneurs and retailers from the customer-centric shift that started around 2016. The best way to summarize the key to the future of direct selling is through the words of Peter Drucker. Change is often a turbulent time. During these times, we all need to embrace his wisdom. He noted, “The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic.” The time to embrace the Phygital movement is now. We must expand how we build culture and community. Those that do will be the future leaders in direct selling globally. DSN
Q & A
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Q&A
with Candace
Matthews
Recently, we were honored to be able to interview Candace Matthews, Chief Reputation Officer at Amway, and discover more about Candace and what role a Chief Reputation Officer plays.
BY PAT R I C I A W H I T E AND JOHN FLEMING
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ANDACE MATTHEWS has been with Amway since 2007 and is currently responsible for overseeing Amway’s global reputation strategy, Corporate Social Responsibility and Amway Brand. Candace is the executive sponsor of Amway’s Diversity & Inclusion Network, and she serves on the Global Leadership Team, Amway’s key decision-making body focused on strategy development and creating memorable customer experiences. PATR I C I A W H ITE: Before coming to Amway, you were with global brands like L’Oréal, Coca-Cola, Procter & Gamble and General Mills. How did you make the leap from New York to Grand Rapids? Actually, it was quite a welcomed leap. You know, New York is great with all that it has to it, but it also impacts your personal life. So, I was commuting three hours a day, an hour and a half each way to and from work. When I came to Amway, it felt like I gave half a day to my life, and some of the quality of my life dramatically changed. The cultures of the companies were very, very different, and I felt like I had come home. There was some comfort in the familial environment of Western Michigan and of Amway. With family being so important to me, it was just a great place for me to be. What impressed you about Amway and the direct selling model? Amway is about helping people live better, healthier lives and helping people be in business for themselves, but not by themselves. I found that an amazing thing to be able to be a part of. The other thing is that how important relationships are in this business. Being a people person myself, I just embraced the fact that Amway was a global company. I got to learn about all cultures worldwide by helping our distributors and, particularly in the U.S.A., our Independent Business Owners (IBOs) develop relationships with their customers, and me developing relationships with them.
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What did you focus on to build the Amway brand and customer acquisition and retention through the Amway Independent Business Owner? The first thing that we had to do was understand what brands were versus just products. Because we were so global, really making sure that we had global brand positioning and a reason for being. Not only the Amway brand but for our key products like Nutrilite and Artistry. In doing so, we were enabled to help our IBOs create value for their customers. They have to have a reason for being. They are an important part of this business model and a part of Amway.
So, in my role, the main focus areas are around sustainability in leaving the planet a better place than what we found it and our reputation, both on and offline.
JOHN FLEMING: In July of 2020, your role at Amway changed to become the Chief Reputation Officer. The CRO is a relatively new position within the corporate and organizational structure. Could you describe your role and responsibility and what a CRO means? For me at Amway, the chief reputation officer role is responsible for all things that impact the company’s brand. That might be things that we currently do or things that we have not yet done that we need to do more strongly to move forward. So, in my role, the main focus areas are around sustainability in leaving the planet a better place than what we found it and our reputation, both on and offline. Also, we focus on furthering our corporate social responsibility effort. In the past, we focused around nutrition and particularly around children’s health and nutrition. When we look at our distributor population, over 70 percent are women, and we’re beginning to focus also our corporate social responsibility efforts on women’s empowerment. w w w. d i r e c t s e l l i n g n e w s . c o m 75
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The chief reputation officer does all of this. I also support our diversity and inclusion efforts. It’s thinking about what are the things that impact our company? What do we do to impact others? And how can we make sure that we’re doing it well? What are your goals as the CRO at Amway? I am part of a big organization. It takes a village and a globe to manage the Amway brand. If we look specifically at some of the goals that our team is working on, it is being the beacon and guiding the rest of the organization. If we talk about sustainability, we need to set long-term goals that we are actually still working on. The important thing is not exactly what that goal is, but it is figuring out what it is, setting it out, and being very explicit about it so that we can take people on the journey with us into how to deliver it. When you talk about sustainability, you can talk about it from an environmental standpoint, or from a product and packaging standpoint, or even from a human capital standpoint, but nobody can do sustainability by themselves. It literally takes all of us to be a part of it. The goals that we will be setting are not only for what we want to do for the environment but also for how does each of us plays a part in making it different. It’s learning that the journey to delivering this is almost as important as ultimately where you end up. That’s probably the biggest difference in all that we do because as far as our corporate social responsibility is, we will just be enhancing what we’ve already done and trying to touch more women around the globe, trying to teach them about entrepreneurship and empowerment in their habitat so that regardless of whether they become an Amway distributor or go into business for themselves, we are helping them with the skills that they need. As far as children and children’s nutrition, that’s foundational to whom we are in making healthier children because healthier children help make healthier families, which is what we want to be a part of. Will more companies in the direct selling channel add the CRO position? I think it’s something that we all should consider. Because there is what we do as a company, but there’s also what we do as an industry. And within our industry, what one does in a good way impacts others and in a negative way impacts others. It’s something that we should be more cognizant of and be putting more effort behind to make sure that we
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elevate this entire industry because we want direct selling to be around for a long time. For that to happen, we all have to do things to elevate it because it’s very easy to build things up, but even more quickly can something be torn down. It is critical for all of us to be doing it. PATR I C I A W H ITE: Perception and reputation have long been issues within the direct selling space. We recently did a cover story titled: Direct Selling Redefined - Why Industry Language and the Behaviors that Shape It Need to Change. As the CRO, what is your perspective? I loved that article. I think one of the important things that we have to realize is, as we are providing opportunities for others, we are also providing an experience that they can’t get anyplace else. And that’s what’s important to our industry, and that’s one thing that our industry can have a greater advantage over many of the other industries. It’s that experience. It’s that high touch that we’ve always had. And granted, we have to adapt the high touch to digital, especially after COVID, but that touch is so important. And that’s one of the things that will help elevate our industry. What is Amway’s vision for the future of the model? Amway’s vision for the future of the model is that we want to make it 10 times easier for people to join and to earn. One of the things that we’ve found as people explore what we’re now referring to the gig economy, getting these side jobs or side gigs to make more money, they have to have easy, early earnings. The three E’s. That is critical. So that’s part of our vision, but not only the easy earnings upfront, it’s making sure that they can then build a business beyond that. Because many can do easier early earnings, but they don’t necessarily take it through to a lifetime of earnings and a business that you can build for themselves. And so that’s what we want to do. We want to make it easier for them to have their business, acquire customers, build a community, and then for them to stay and build a business in the long run. JOHN FLEMING: As the Executive Sponsor of Amway’s Diversity and Inclusion Network, please tell us more about what that means. Can you tell us about the diversity and inclusion focus at Amway and your role and responsibility as the Executive Sponsor?
Diversity and inclusion for me and at Amway is something that the entire organization is embracing. I want to start with a quote that I love to share. Diversity is like being invited to the dance. Inclusion is being asked to dance, and belonging is dancing like no one’s watching. And we want to make sure that at Amway, that’s how people feel. Our vision is to actively encourage everyone to be their true selves and share their diverse perspectives so that we can unleash their full potential and come up with greater solutions that will impact the lives of not only our employees but the communities we serve, our IBOs and our customers. Be you and be the difference. Allow people to celebrate who they are, bring that in, but listen to that so that we can make better decisions. Being that we are so global, inclusion is so important because we have to make an environment that welcomes everyone and empowers people from all backgrounds not only to be their true selves but to bring their insights, to contribute to our success. For us, diversity is a workforce that unleashes the power of all these different backgrounds and cultures and experiences and preferences to ultimately help us accelerate growth and innovation. Because when you have all that great thinking, it absolutely leads to better outcomes. Of the 11 corporate officers portrayed on the Amway Corporate Website, six are women—What significance should we place on this? Our global leadership team really represents the diversity of the business globally, but it also represents the people need to be part of the conversation to help build our business for the future. The DeVos and the Van Andel families, which are still very much engaged and connected, really believed in Amway being an opportunity for everyone. Recently a new CEO, Milind Pant, was brought in from outside of the families. Milind is an amazing CEO, and he put the best people in the jobs. He just did what he felt the business needed, and I commend him for it and the families for supporting it. I commend Amway for leading the way in such an amazingly global and diverse leadership team, and I’m proud to be a part of it. PATR I C I A W H ITE: We are very excited that you will be speaking at our upcoming Direct Selling University. Do you have your topic, and can you share some highlights? I’m looking forward to doing that because I’m going to
be talking about trends that are impacting the Amway business now and in the future. Just to give you some highlights about what I’m going to be sharing—looking back at last year and the challenges that were caused by the global pandemic, and the social injustices that came to light last year, and talk about how that impacted our business and made us change. Also, around sustainability, particularly environmental sustainability. The third is the idea around making things simple. How do I take these three things and talk about their trends, and what they’ve done to shape our direction? What is the way you stay true to yourself as a busy executive and as a person, wife and mother? I think for all of us, and particularly for me, staying true to myself goes back to my humble beginnings. I don’t know if you are aware, but I’m from a very large family. I’m the youngest of 18 children. My father was a minister, and my mother was a homemaker. They instilled in us very strong values around faith and education. That type of upbringing and those humble beginnings make me understand that you can never forget who you are or from whence you’ve come, and that titles really don’t make you who you are. It’s really about what you are put on earth to do and give and share to others. And my mother taught me three mantras. She always used to say, “Where there’s a will, there’s a way.” Secondly, “When the Lord closes a door, he opens a window.” And thirdly, “Unto whom much is given, much is required.” Those are the foundational pillars of me. What do you want to be remembered for? I’d love to be remembered as a person and a leader who loved to nurture people, who loved to develop people, and open doors for others, particularly those who may not have had the chance or the opportunity. And also, around being a lifelong learner. I love learning. I think the day you stop learning is the day you stop growing. I believe in learning and growing all the time. What would you like to share with us? The last thing I’d say is that I would encourage everyone just to engage and make the world a better place. Being an ally for someone, unlike yourself, or printing less paper, recycling your plastic, use a reusable bottle, instead of something that you’re going to throw away. Think about leaving everything and everyone you touched better than when you found it. DSN w w w. d i r e c t s e l l i n g n e w s . c o m 7 7
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Le-Vel: From Sprint to Marathon BY JENNY VETTER
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HEN ALL you’ve known is the peak, the way you handle the inevitable valley reveals
FOUNDED:
2012 HEADQUARTERS:
just how dedicated you are to the journey.
Frisco, TX
Direct selling veterans Jason Camper and Paul
TOP EXECUTIVE:
Gravette share the hard‑earned lessons they learned from decades in the industry with their
Jason Camper, Co-Founder and Co-CEO Paul Gravette, Co-Founder and Co-CEO PRODUCTS:
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establishing a legacy organization.
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record-shattering team at Le-Vel, with eyes on
Nutritional Health and Wellness Products
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D E C O G N I Z E
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In the last couple of years, we’ve seen the company really grow up. — J A S O N C A M P E R / C o - Fo u n d e r & C o - C E O . L e -Ve l
For the direct selling newcomers at Le‑Vel, the company’s intense launch and the rapid pattern of growth
A Record Breaking First Chapter
Le-Vel exploded into the direct selling arena in 2012, paying little heed to the industry’s already crowded health and wellness space. Co-founders Jason Camper and Paul Gravette launched Le‑Vel as an exclusively cloud-based business—no physical headquarters, enviably low expenses. But with deep experience in health and wellness, the pair set out to offer more than an innovative business model—they created an opportunity that would attract a new kind of direct seller—one who had never considered the industry before. And they succeeded. Today, LeVel has a field of Promoters, the vast majority brand new to direct sales. These “THRIVERS” hit sales goal after sales goal, consistently expanding at a click of $100 million each year before exceeding a billion dollars in less than five years, and hitting more than two billion dollars less than 2 years later. However, with decades of industry experience, Camper and Gravette are more concerned with building a business that lasts than shattering more sales goals. They understand that while explosive growth is terrific for a season, legacy companies are built from consistency, maturity and stability. In the last few years, the company has slowed slightly from breakneck speed to life in the fast
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that followed kept them engaged, selling and building teams.
lane—still accelerating but settling into a more consistent momentum. “In the last couple years, we’ve seen the company mature more than anything,” says Camper. “We came out of crazy hyper-growth when the company was growing by a hundred million dollars a year, which was just unprecedented at that time. So, we’re seeing the field mature, seeing the brand mature, seeing the brand take on a life of its own instead of what we designed it to be. In the last couple of years, we’ve seen the company really grow up.”
A New Season
For the direct selling newcomers at Le-Vel, the company’s intense launch and the rapid pattern of growth that followed kept them engaged, selling and building teams. As those years of frenzied growth came to a close, the THRIVERS in the field had to adjust to a new pace and a new season. “A couple of years ago, all anyone knew was just this crazy, crazy growth,” explains Camper. “The field was thrown off like, ‘whoa, whoa, hold on a minute.’ All we’re used to seeing is numbers doubling every month. It required them to become
more mature and understand that business and life have up cycles and down cycles. That’s what I really mean when I say we’ve seen the company mature over the last couple of years. It was really the field. It was really the culture. It was all of the business dynamics as we settle into a company that’s going to be a household brand for many, many, many years to come.” According to Camper and Gravette, their field not only adjusted but THRIVED, learning how to build profitable and sustainable businesses in seasons of both crazy and quiet. Le-Vel’s focus on rewards, w w w. d i r e c t s e l l i n g n e w s . c o m 81
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The THRIVE Experience is Le-Vel’s flagship product line and consists of three steps: Premium Lifestyle Capsules, Ultra Micronized Shake Mix and Lifestyle DFT (Derma Fusion Technology).
promotions and nonstop support for new THRIVERS has been a constant, keeping the field engaged and excited regardless of the season. “As our years progress, we work hard to make sure the newest THRIVERS are always surprised with a new reward promotion and, to me, this is what keeps us in the trenches and focused on a legacy company,” says Gravette. “Our growth is predominantly new customers, but we’re also constantly introducing new and bigger rewards for the field.” Le-Vel’s field of unlikely direct sellers is “a different caliber of people,” according to Camper— competitive, 75 percent female and passionate about the product they’re sharing. “Our culture is one of caring for people and their health—and it always has been,” says Gravette. “That includes both our corporate and field organizations. It begins with THRIVE as the product
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line for health, as well as our business model for our THRIVERS in the field. They’re out there helping others live a life they deserve—that’s been a belief we’ve held onto from the very first online orders. Our promoters truly believe in the THRIVE Experience and continue to share it and our incredible culture with passion.”
“ The THRIVE Experience is Le-Vel’s flagship product line and consists of three steps: Premium Lifestyle Capsules, Ultra Micronized Shake Mix and Lifestyle DFT (Derma Fusion Technology). Since Le-Vel’s launch, the product line has expanded significantly to include THRIVE PLUS products for hydration, weight loss, antioxidant support, sleep, nutrition, digestion and more, as well as specialized DFT products. In mid-2019, the company also launched a CBD based skincare line. Those interested in Le-Vel can access products by signing up as either a Customer or Promoter—both options are free. Newly enrolled Customers can order discounted products through the company’s
Our growth is predominantly new customers, but we’re also constantly introducing new and bigger rewards for the field. — P A U L G R AV E T T E / C o - Fo u n d e r & C o - C E O . L e -Ve l
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The toughest thing has been, where do we go from here? — J A S O N C A M P E R / C o - Fo u n d e r & C o - C E O o f L e -Ve l
autoship program and also have the option of sharing THRIVE with two friends to earn free product credits. Promoters don’t pay to join, incur monthly membership or website fees or need to buy a kit. Since the business is cloud-based, new THRIVERS can access all training and resources from their phone or computer.
Getting Settled, but Never Settling
While the company finds a new sustainable pace, Camper and Gravette refuse to settle. New products, new technologies and fresh field promotions are all on deck for 2021, in addition to new philanthropic partnerships and a live, in-person promoter event in late spring. “Our focus on better health for everyone is more important today than at any time in our history,” says Gravette. “Our THRIVE Experience helps boost the immune system with natural ingredients, such as vitamins, minerals, plant-based extracts, antioxidants, enzymes, probiotics and amino acids. Our customers are very savvy when it comes to their health and the latest methods for staying healthy, so we take great pride in the fact that they continue to trust our products to improve their health and wellness.”
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With over 30 patents and counting, there’s no slowing down Le-Vel’s product development. This February saw the release of a new ultra pre and probiotic formula designed to target gut health, as well as a new DFT formulation exclusively available through the company’s newly launched Thrive Against Cancer Program. Each month, the program will spotlight a different form of cancer, partnering with nonprofit organizations to support research efforts through the sale of specially designed DFT products. “The toughest thing has been, where do we go from here?” asks Camper. “When you have this incredible rocket ship, incredible product line, you’re the fastest-growing company from zero to a billion dollars, you’re this and you’re that, and you’ve done this and done that—where do you go? It’s very challenging to wake up the next day, go to the drawing board and put something revolutionary yet again in play. It’s challenging, but it’s possible. We’re very hard to beat.” With more products and promotions up its sleeve for this year and beyond, Le-Vel may be maturing, but the company hasn’t lost its fresh approach to innovation. DSN
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Be CustomerustomerCentric CCR Recognized. R
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E D Direct Selling News is excitedE to C present O G N I Zthe
Customer-Centric Recognition (CCR) Program to celebrate companies that are leading the way toward a sustainable, customer-centric future for the industry. Qualifying companies utilize business models that boast high customer-to-distributor ratios and prioritize customer sales.
Submit Your CCR Program Application Today.
The CCR Program is based solely on a company’s customer-to-distributor ratio taking into consideration the following definitions:
■ Distributor—someone
who DOES have a distributor agreement in place ■ Customer—someone who DOES NOT have a distributor agreement in place ■ Active is defi ned as each customer and distributor must have made a product purchase during the last six months. Active customer and distributor counts are limited to those in the U.S. and Canada.
Companies must have been in business for at least one year and have a minimum of $5 million in annual revenue. Qualifying companies must attain: 5:1 up to 10:1 for Gold status and 10:1 or more for Platinum status.
Companies who wish to learn more or to submit an application can go to www.directsellingnews.com/ccr or contact editor@directsellingnews.com
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Solvasa’s Mindful Integration of Beauty & Wellness Intention Over Habit, Attitude Over Age, Presence Over Everything
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BY BETH DOUGL ASS SILCOX
OR LORI BUSH, stepping into retirement from a decades-long career in beauty and direct sales wasn’t easy. There was
so much to miss—the real human connections with direct sellers and an industry she loved.
FOUNDED:
May 2020 HEADQUARTERS:
San Francisco, CA
Nevertheless, the former CEO of Rodan + Fields
TOP EXECUTIVE:
ventured beyond active management in 2016,
Lori Bush, CEO and Co-Founder Dr. Ritu Chopra, Co-founder
determined to contribute in new ways to the
PRODUCTS:
Health and Beauty
industry with no expectation of an operating role or launching a direct selling company.
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But beneath the surface and outside of her control, a “never-say-never” story was in the making of Lori Bush. On the very day her non-compete clause expired and a new “retirement” path opened, Bush found herself diverted into completely unfamiliar territory. “Breast cancer,” her doctor said. Little did she know that the weeks and months of treatment and reconstruction to follow would set her on a bold mission to integrate beauty, wellness and mindfulness in new ways that teach intention over habit, attitude over age and presence over everything. It would lead to Solvasa. “It was just so core to everything that has brought me to this point in my life. It’s almost like I had breast cancer for a reason,” Bush says.
Pharma-holistic Approach to Beauty
During treatment, Bush remembers, “I was beginning to appreciate the connection between what’s going on in your head and what’s manifesting on your skin and your overall health.” Compartmentalized regimens of lotions and potions treat the surface, but beauty is an uphill battle without a foundation of health and wellbeing to combat stress and inflammation. Bush absorbed this broader view during conversations with her Beverly Hills reconstructive surgeon, Dr. Ritu Chopra. She needed—everyone needed—something new, a pharma-holistic approach to beauty, akin to integrative medicine. Bush and Chopra collaborated to found Solvasa as the vehicle to deliver it. Solvasa combines traditional Ayurvedic and adaptogenic ingredients with Western cosmeceuticals to form their products; but also reaches into the meditative epicenter of cellular health—mindfulness—to deliver a missing yet necessary beauty methodology.
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What you’re feeding your body—whether that be nutrients absorbed through your skin or your gut or waves of thoughts washing through your mind over time—ultimately manifests in your body’s ability to restore and heal or go the other direction, Bush says. Working with a neuropsychologist, Solvasa built mindfulness practices into their skincare routines and for use alongside their adaptogenic elixir beverage called Golden Moment. The goal is to manage daily life and career stress by adding simple things like gratitude practices to common activities like the morning or evening routine. Solvasa’s target customer or Connector—what they call their distributors—is a “woman that spends a lot of time getting her messy bun to look just right, wants to look effortless and puts a lot of effort into it,” Bush says. She’s generally 30-50 years old, sets high standards, lives with high life and work stress, and needs to give herself a break.
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Launch Interrupted
In February last year, Solvasa was just beginning to build a sales organization, then came pandemic lockdown. Bush admits the year that followed wasn’t easy. “We had this whole thing modeled out and bing, bang, boom, suddenly we were living behind a Zoom screen and rethinking how we start a movement; not only in the midst of a pandemic where we are challenged just in terms of our social distancing but also with so many distractions,” Bush says. So Solvasa eased back. People were stressed enough, no need to add to it through aggressive recruitment. Instead, Bush says, they created a compassionate marketing campaign and offered opportunities to plug in and connect with Solvasa’s mindfulness program without any obligation, cost or expectation of purchase. Introductory messaging focused on integrative beauty—skin, body, and mind in the context of community. While Solvasa’s was a less intuitive and more sophisticated story to tell than Bush originally expected, they connected brain health and skin health for their community through The Beauty Construct podcast, months before offering products for sale. Spring became summer, and the company’s community resource messaging evolved, creating space for parallel business content meant to engage and bring new Connectors into the business, as well as broaden their community. That evolving messaging, and the creation of Founder’s Circle—an evergreen title given to Solvasa Connectors who took a chance with the company early on—resulted in community members essentially recruiting themselves into the business and a strong December finish.
I was beginning to appreciate the connection between what’s going on in your head and what’s manifesting on your skin and your overall health. — L O R I B U S H / C E O a n d C o - Fo u n d e r, S o l v a s a
Stage two of their launch is underway, and this spring Solvasa adds Fastify, a mindful eating solution for people who want to lose weight and experience anti-inflammatory benefits. Fastify will advance Solvasa’s integrative beauty story and help them cast a wider net to attract a male audience. “I’m seeing a different way of this business expanding than I expected because of social distancing and inability to travel. Everything we do ends up being national because we end up doing them on Zoom. I think that’s the good news and the bad news. The good news is we can reach a lot more people a lot more quickly. The bad news is we don’t get that kind of localized, community engagement that is so powerful socially,” Bush says. But Bush and Solvasa are optimistic about eventually getting out on the road, locking arms, hanging out and telling their new integrative beauty story in-person at regional events in late summer. “There’s something so powerful about getting together and practicing what we preach together,” she says. DSN
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Keys to Selling CBD Products Today BY WENDY YURGO -KINNE Y
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C
BD IS OFFICIALLY EVERYWHERE. As recently reported, the global CBD oil and CBD consumer health market size are expected to reach USD 123.2 billion by 2027, expanding at a growth rate of 25.6 percent over the next six years. Many direct selling companies have joined the CBD gold rush, motivated by high consumer demand and the various product categories that can benefit from CBD. Some have found that creating great products with CBD was the easy part. Selling it can be a bit trickier.
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The global CBD oil and CBD consumer health market size are expected to reach USD 123.2 billion by 2027, expanding at a growth rate of 25.6 percent over the next six years.
The Path to Selling CBD Products May Not Be Simple
For years, the only legitimate way to sell CBD products was to transact in cash—not an efficient or scalable solution and certainly not tenable for direct selling companies. Even with the onslaught of new products, banks and U.S. based merchant service providers have struggled to distinguish CBD from marijuana. Historically, both have been considered prohibited products by most payment processors and their sponsor banks. Even after the recategorization of CBD from a Schedule 1 Narcotic to Schedule 5 by the DEA, many banks still worry about legal challenges and liability for providing financial services and issuing merchant accounts to companies selling CBD products. The good news is that old perceptions are changing, and your ability to sell products containing or formulated with CBD as an ingredient is becoming more feasible. The SAFE Banking Act, HR 1595, which was passed by the House in 2019, is likely to be reintroduced to Congress this year. This bill would allow financial institutions to provide financial services to legitimate cannabis-related businesses without facing potential penalties
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Here are five essential keys to selling CBD products
1
USE AN EXPERIENCED AND REPUTABLE PAYMENT PROCESSOR Ensure you have the right payment processor fit for your business. You will need a provider who has real experience with and knowledge of CBD products. Ask them a couple of fundamental questions: n Where will your transactions be processed — in the United States or abroad? If your transactions are processed in the United States, your money will remain in the United States and is easily accessible. Be aware of the ramifications of offshore processing. You will need to set up a local entity within that processing region. You may be responsible for taxes in that country. Additionally, you will likely need local experts to set up, manage and keep the foreign entity in good standing. Since these transactions are technically occurring outside the United States, your American customers will likely see unexpected cross-border fees from their credit card company.
n Will there be any restrictions on receiving your funds, such as delayed settlement times or a reserve? n What documentation is needed before selling your products? You may be asked to provide legal disclosure forms to validate that your products conform to the FDA’s 0.3 percent THC requirements. Additionally, you may need to provide a detailed list of product ingredients. Be aware that several ingredients acceptable in the United States are only allowed through a doctor’s prescription in other countries. n What are your product limitations? Today, a processor who processes payments for CBD products will have clearly defined product limitations. Should you add products outside of those limitations, you could find your merchant account immediately terminated and be at risk for being placed on the e-commerce blacklist: MATCH aka TMF (Terminated Merchant File).
2
CHECK WITH YOUR PAYMENT PROCESSOR BEFORE SELLING PRODUCTS WITH CBD IN THEM Many businesses wrongly assume they can add CBD products to their list of offerings simply because of the perception that everyone is doing it. Merchants from several industries—nutraceuticals, pharmaceuticals, and even beauty products and weight loss—have made this potentially fatal mistake, placing them in breach of their merchant account contract and risking account termination and being placed on the TMF. Make sure you engage your processor early and throughout the process of integrating your CBD products. They can lead you toward the most direct route to selling without risk.
3
HOLD BACK YOUR MARKETING EFFORTS UNTIL YOU ARE APPROVED You may have an amazing new CBD product, and you can’t wait to tell the field and your customers. However, posting too soon might put your new account approval at risk. Your processor should give you guidelines about what you can and cannot say about your pending products.
Your processor should give you guidelines about what you can and cannot say about your pending products.
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There is no question that the potential for hemp-based products and CBD, in particular, has massive potential for direct sales. A word to the wise, the FDA has been known to take decisive action against CBD companies for making product medical or health claims. This applies to your field as well. As we all know, overenthusiastic product claims from your field can leave you liable. You don’t want to spoil the party before it even gets started because comments about an upcoming product are in violation of your merchant agreement and incur the FDA’s rancor.
4
VERIFY THE ACCURACY AND LABELING OF YOUR INGREDIENTS, PARTICULARLY REGARDING CBD As mentioned previously, CBD products must contain less than 0.3 percent THC to be acceptable from the FDA. For products derived only from hemp, this is a non-issue. However, in a recent study of current CBD oils on the market, there was a wide variance in the actual quantities of CBD and THC compared to what was stated on the label. It should go without saying that even unknowingly misrepresenting the ingredients can be a sure-fire way to find yourself on the TMF. Many US states demand that the labels of CBD products sold within their borders be free of any health claims. It’s important to understand that claims don’t need to be explicit. If a company implies that its product can be used to treat a disease, the FDA and local authorities may conclude that the product is a drug. Consequently, if a CBD company makes any medical, disease, or structure
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and function claims, the FDA will likely conclude that the company is marketing “unapproved drugs in violation of the FDCA.” The FDA is definitely watching, and they have consistently issued warning letters to companies for making disease treatment and cure claims.
5
STAY AWARE OF THE FEDERAL AND STATE LAWS REGARDING CBD AND HEMP The laws surrounding cannabis, hemp-based products, and CBD are still largely a grey area. Federal and state laws vary widely. Staying up to date and maintaining compliance with the evolving laws and regulations will ensure that you and your field can be confident in selling your products. There is no question that the potential for hemp-based products and CBD, in particular, has massive potential for direct sales. As more direct sales companies embrace this potential, we look forward to what is poised to be a skyrocketing marketplace. DSN
WENDY YURGO-KINNEY is the CEO of Metrics Global, a leading payment and fintech company with a longestablished record of solving problems for Direct Selling companies worldwide.
MAINSTREAMING THE CHANNEL DSEF Fellows Make a Difference for Direct Selling Through their direct selling-related research, co-created teaching content, and case studies, nearly 250 DSEF Fellows from universities across the US are changing how direct selling is taught
“It has been a privilege to serve as a DSEF Fellow. I have been able to include multiple direct sellingrelated case studies in the fifth edition of a textbook on entrepreneurship and to complete multiple innovative academic and industry research projects. Each experience has resulted in growth and opportunity. The results have been clear and measurable. Dr. Caroline Glackin Associate Professor of Entrepreneurship Fayetteville State University
“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 in Applied Organizational Studies Minnesota State University, Mankato
and viewed. Here’s what they have to say about their partnership with DSEF.
“As a DSEF Fellow, I have access to a rich variety of teaching materials, including case studies, videos, peer-reviewed research, and teaching notes. These materials inform and complement concepts I discuss in the classroom, and help me keep my content current. By participating in DSEF-hosted functions, I’ve had the opportunity to network with the leadership of direct selling organizations from around the world, which has led to several top executives visiting our campus as guest speakers. Dr. Adam Mills Assistant Professor of Marketing Loyola University New Orleans
1667 K Street, NW, Suite 1100, Washington, D.C. 202-452-8866
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info@dsef.org
•
www.dsef.org
Drive Growth with Gen Z Direct selling leaders face an urgent challenge: recruit, retain, and sell to Gen Z and across generations coming out of the pandemic. Acclaimed speaker Jason Dorsey delivers the missing strategies and hidden insights you need to grow your organization with Gen Z now—virtually and in-person. Watch Jason’s keynote highlights: JasonDorsey.com
Jason Dorsey • Global speaker • Over 1,000 standing
ovations • Featured on 60 Minutes
and The Today Show • Bestselling author of
Zconomy: How Gen Z Will Change the Future of Business Request speaking info or set up an intro call with Jason’s team: Info@JasonDorsey.com (512) 259-6877
JASON DORSEY
D S A
M E S S AG E
/
Our New Challenge
D
IRECT SELLERS have always had a special bond with their customers and their fellow sellers, many of whom are friends, neighbors, and relatives. Because we meet “up close and personal” with customers, direct sellers feel a special obligation to provide a level of care and respect that one doesn’t find in other forms of retail. As a result, we hold ourselves to such a high standard of care; doing so today is more critical today than ever before. These past months, we’ve not met in customers’ homes. Instead, we’ve gathered around a virtual hearth, trading stories of family, jobs. Social media and the internet have allowed us to share our hopes and dreams, our pains and challenges. We have entered into a new era of technology-based intimacy. Yes, it is a form of communicating and socializing that is in some ways even more intimate than meeting in a person’s living room. Think about the information we are sharing and seeing: it’s not unusual to learn about a friend’s recent illness, what they had for dinner, who’s seeing whom. Most remarkably, our new intimacy extends farther than we could have imagined back when the people we chatted with over the backyard fence or folks we saw as we bought groceries comprised our circles. While the pandemic has limited those inperson engagements, our circle of intimates can number in the thousands through social media. Direct sellers faced a new challenge: maintaining that same level of intimacy and respect that we have in the home to our electronic relationships. No longer was it merely a matter of being polite or adhering to some
JOSEPH N. MARIANO is the President of the U.S. Direct Selling Association and the Direct Selling Education Foundation.
social norms: interactions have consequences that impact our businesses’ failure or success. Witness the recent limits that some social media platforms have placed on “multilevel” business activities. These platforms are under intense pressure to monitor and control the behavior and information found on their sites for fairness, accuracy, and some level of decorum. At the same time, direct sellers increasingly rely on these platforms to share the benefits of their products and opportunities. If this avenue of communication with our customers is restricted or eliminated, direct sellers, their customers, and the community will lose. DSA’s members are committed to ensuring that we use social media to enhance relationships with our customers and salespeople. In a world filled with misinformation and mistrust, we have the unique ability to be the messengers of accurate information about our companies and our industry. We can communicate honestly with the same level of respect and care for our customers and colleagues we’ve always had. That’s why DSA is working with our companies and others to ensure that we adapt our high standards for our new digital world. Our continued focus to deliver a high level of care—guided by standards for communicating responsibly, respectfully, and accurately—allows us to continue thriving on social platforms and also shows policymakers and the public who we are. If you’d like more information about the ways DSA is dealing with this new challenge, contact me at joe@dsa.org. DSN
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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.
LACORE PAYMENT TECHNOLOGIES
900 Wilmeth Road, McKinney Texas 75069 Info@lacoretechnologies.com www.lacorepayments.com/ LaCore Payment Technologies is a payment platform designed to support direct selling companies globally. Our services include: Global connectivity to 150 countries in 50 currencies, including direct connectivity to most alternative payment types, secure tokenization, customized fraud solutions, including our proprietary Fraudhawk™, advanced reporting tools, and online dispute management.
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C O M M I S S I O N PAY M E N T S E R V I C E S
ACCOUNTINGSUITE
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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.
SQUIRE
PAYQUICKER
METRICS GLOBAL, INC
1329 South 800 East Orem, Utah 84097 801-515-0977 www.squire.com
400 Linden Oaks, Suite 320 Rochester, NY 14625 844-258-3006 www.payquicker.com
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For nearly 50 years, Squire & Company has provided financial excellence and NetSuite expertise for clients in the Direct Selling industry. We offer personal service, responsiveness, and expertise in all areas.
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.
We are the industry’s leading payments partner, long-established advocate, and problem-solver. Our unified commerce & payments platform will connect you to a global marketplace, enable your international expansion strategy, and fuel your exponential growth plans. Let us show you how. Contact Us: info@metricsglobal.com
INTERNATIONAL PAYOUT SYSTEMS INC.
STRATEGIC CHOICE PARTNERS
NEXIO
540 NE 4th St. Fort Lauderdale, FL 33301 866-218-4668 i-payout.com
More payment options in 150 countries via the most flexible and customizable software solution. Unbeatable pricing.
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C O N S U LTA N T S /M A N A G E M E N T
C O M M I S S I O N PAY M E N T S E R V I C E S
A C C O U N T I N G S O F T WA R E /S E R V I C E S
VENDOR DIRECTORY
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.
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 Nexio does this by being integrated with the majority of back-office software solutions in the Direct Sales Industry.
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.
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D I S T R I B U T I O N / F U L F I L L M E N T/ LO G I S T I C S
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.
AMWARE FULFILLMENT 4505 Newpoint Place Lawrenceville, GA 30043 678-377-8585 Sales@AmwareLogistics.com www.AmwareLogistics.com 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.
A2B FULFILLMENT
GLOBAL ACCESS
150 Stewart Parkway Greensboro, GA 30642 866-843-3827 www.a2bf.com
9815 S. Monroe Street, Ste. 510 Salt Lake City, UT 84070 877-811-8108 www.globalaccess.com
Since 2001, a2b Fulfillment has been helping companies work smarter by outsourcing business support services, including order fulfillment, customer care, and valueadded solutions. Its same-day fulfillment philosophy ensures that customers aren’t waiting, and its one-call customer service resolution standard keeps them coming back.
International expansion expertise and technology and logistics solutions that grow clients’ businesses and brands around the world.
D I S T R I B U T I O N / F U L F I L L M E N T/ LO G I S T I C S
DISNEY DESTINATIONS
D I S T R I B U T I O N / F U L F I L L M E N T/ LO G I S T I C S
D E S T I N AT I O N S / E V E N T V E N U E S
TO BE INCLUDED IN THE VENDOR DIRECTORY, CALL 1-800-279-5249
LACORE LOGISTICS 900 Wilmeth Road, McKinney Texas 75069 214-817-4802 www.lacorelogistics.com LaCore Logistics provides distribution and order fulfillment services. Our highly automated distribution center provides both domestic and international direct-to-consumer shipping solutions. We offer omni-channel fulfillment solutions ranging from marketplace fulfillment for leading marketplaces to businessto-business fulfillment for leading retailers.
STALCO INC. 64 Bakersfield Street Toronto Ontario M3J 2W7 647-367-2459 ext. 200 www.stalco.ca 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.
VERST E COMMERCE FULFILLMENT 300 Shorland Dr., Walton, KY 41094 800-978-9307 www.verstlogistics.com
Verst offers robotic picking, 99% order accuracy, 6.5+M sf scalable warehousing space, air/rail-served, 1-2 days to over 85% of the U.S. Services include pick-pack, labeling, kitting, and custom packaging. Our Business Is… An Extension of Your Business
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BARTHA 600 N. Cassady Avenue Columbus, OH 43219 800-363-2698 www.bartha.com Excite & ignite your direct sales force by using Bartha—the highest quality event production and staging company nationwide!
KATAPULT EVENTS 5840 Red Bug Lake Rd, Ste. 140 Winter Springs, FL 32708 407-915-9060 www.katapultevents.com Fresh. Exciting. Bold. Your field deserves the best and we help you deliver. Out-of-the-box creative production with experienced show management. We execute on budget and make you look AMAZING!
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MULTI IMAGE GROUP 1701 Clint Moore Road Boca Raton, FL 33487 800-523-2682 www.mig.cc A full-service event production company specializing in helping DSA’s tell their stories. Creativity + Technology = Unforgettable Experiences.
INCENTIVES/RECOGNITION
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.
EVENT PRODUCTION
5160 Wiley Post Way Salt Lake City, UT 84116 385-355-8840 www.visiblescm.com
E X E C U T I V E R E C R U I TM E N T
VISIBLE SCM
INCENTIVES/RECOGNITION
EVENT PRODUCTION
D I S T R I B U T I O N / F U L F I L L M E N T/ LO G I S T I C S
VENDOR DIRECTORY E.A. DION, INC. 33 Franklin McKay Road Attleboro, MA 02703 800-445-1007 www.eadion.com 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.
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.
40+ years of quality manufacturing of nutritional formulas specializing in capsules and powders. FDA registered and 3rd party UL certified facility.
SMART OFFICE SOLUTIONS, INC.
217 N. Westmonte Drive, Ste. 1007 Altamonte Springs, FL 32714 800-891-8601 www.SmartOfficeSolutions.com Your mobile strategy should be as smart as the phone in your pocket. Make a powerful statement about the value of social networks and personal connections with the SmartMobile app. Transform every share, text, call, and email into a positive sales and recruiting result.
S O F T WA R E / T E C H N O LO GY S O LU T I O N S
3131 Story Road W Irving, TX 75038 972-518-9660 www.progressivelabs.com
MOBILE APPS & COMMERCE
PROGRESSIVE LABORATORIES
DIRECTSCALE 1510 N. State St. Orem, Utah 84057 801-701-3285 www.directscale.com The most customizable enterprise SaaS platform for managing all aspects of your direct selling, affiliate and influencer marketing business. Edit your comp plan and test it against your live data! From startup to billion dollar company, it automatically scales to meet your needs so you never have to upgrade again.
SUCCESS PARTNERS
SOCIALSALES.IO
DIRECTECH LABS
5800 Democracy Drive, Suite 100 Plano, TX 75024 800-752-2030 www.successpartners.com
2024 W. 15th St., Ste. F-324 Plano, TX 75075 214-659-1549 hello@socialsales.io www.socialsales.io
929 Colorado Ave Santa Monica, CA 90401 310-730-1246 CustomerCare@directechlabs.com www.directechlabs.com
Convert your social fans into paying customers. Our global SaaS platform includes the tools your sales force needs to succeed in today’s social selling environment. Scalable to fit any sized organization from startups to large global enterprises.
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.
BYDESIGN TECHNOLOGIES
EXIGO
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
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.
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.
NOW TECH 5800 Democracy Drive, Suite 100 Plano, TX 75024 310-428-9936 www.successpartners.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 LO GY S O LU T I O N S
MOBILE APPS & COMMERCE
M A R K E T I N G/ B R A N D I N G
M A N U FA C T U R I N G/ P R O D . D E V E LO P M E N T
TO BE INCLUDED IN THE VENDOR DIRECTORY, CALL 1-800-279-5249
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1875 S. State Street, Ste. 3000 Orem, UT 84097 801-431-4900 www.infotraxsys.com
MW2 DIRECT 2033 Gateway Place, 5th Floor San Jose, CA 95110 408-573-6310 www.mw2consulting.com/direct
SOVOS 200 Ballardvale Street, 4th Floor Wilmington, MA 01887 1-800-334-1099 www.sovos.com
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.
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.
INTERNATIONAL DIRECT SELLING TECHNOLOGY CORP.
THATCHER TECHNOLOGY GROUP, LLC
SUCCESS PARTNERS
Global Operations Management Software. Advanced Comp Plan Programming. Sales Force Backoffice & Automation. Web Site Design & Replication.
Thatcher Technology Group provides Sales Force, Compensation and Incentive Management Software for the Direct Selling Industry.
JENKON
XIRECT SOFTWARE SOLUTIONS
1208 E. Kennedy Blvd., Ste. 222 Tampa, FL 33602 813-277-0625 www.idstc.com
915 Broadway Street, Ste. 400 Vancouver, WA 98660 360-256-4400 www.jenkon.com From Startup to Enterprise, Jenkon provides Direct Selling companies an award-winning, scalable platform unifying the future of direct selling: Openness, connectivity, omni-channel and conversational marketing.
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55 Shuman Blvd., Ste. 350 Naperville, IL 60563 866-698-3848 www.thatchertech.com
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!
TO O L S , R E C R U I T I N G & T R A I N I N G
Software & SaaS solutions for startup, emerging, and global direct selling companies. See our ad on the back cover.
TO BE INCLUDED IN THE VENDOR DIRECTORY, CALL 1-800-279-5249
TA X S E R V I C E S
INFOTRAX SYSTEMS
S O F T WA R E / T E C H N O LO GY S O LU T I O N S
S O F T WA R E / T E C H N O LO GY S O LU T I O N S
VENDOR DIRECTORY
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.
Direct Selling’s Best Stand Strong Together That’s why the DSA family is growing. 2020 has shown us all that direct selling companies, their salespeople, and the industry’s supplier partners believe in the values of community, home, and unity. From unparalleled educational opportunities, virtual and in-person networking events, and the singular voice we bring to government and policy makers on behalf of independent contractors, DSA convenes the leaders who define the channel’s future today. Demand to be a part of the DSA family has increased, and DSA has introduced new categories tailored to individual direct selling executives as well as companies from outside the channel. Visit DSA.org/membership to learn more about our new engagement categories: Corporate Affiliate, Associate, Affiliate and Global Associate and ENGAGE with DSA in exciting new ways in 2021.
MEMBERSHIP 2021
Go Next Level with Video Shopping In four short months, one client experienced: 230% Revenue Growth 22k+ New Users 358% Increase in Customer Acquisition Fun Simple
Engaging Branded
We Do Shopping Better. Learn The Difference. LET’S CONNECT | 310-428-9936 app@successpartners.com
Your window to selling CBD R E A L U S - B A S E D PAY M E N T PROCESSING FOR CBD PRODUCTS In 2019 we originated a 100% US-based platform for processing the sales of CBD and CBD-based products. Since then, our clients with CBD products have been confidently processing payments without the fees, taxes or other limitations of offshore processing. Because of our experience and technology, we are proud to deliver standard merchant pricing for our clients with CBD-based products—no price gouging, cross-border fees, or international tax liabilty. Top direct selling brands partner with us to provide best in class payment solutions that add meaningful business value; simple integration, speed to market, payment method optionality, and transaction security. Contact us at connect@metricsglobal.com
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LOOK BEYOND THE SURFACE It’s one thing to appreciate your salesforce, but it’s another to really know them. FlexCloud’s Webhooks were created to help you see deeper into distributor activities so you can make better connections and respond to their needs in real-time. Ready to launch a better engagement strategy? It’s time. Take off with FlexCloud.
801.431.4900 | infotraxsys.com
