October 2021 Direct Selling News

DSN

DIRECT SELLING NEWS

VOLUME 17 / ISSUE 10

OCTOBER 2021

Women (Not) in the Workplace

An Historic Opportunity for Direct Selling

FEATURE / PROTECT YOURSELF FROM DOWNLINE RAIDING FEATURE / NAVIGATING CHANGE FOR LEGACY COMPANIES JORDAN ESSENTIALS / HYBRIDIZING OLD SCHOOL PARTY PLAN ZYIA ACTIVE / BUILT TO UPLIFT AND INSPIRE

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Congratulations to our DSN Top 100 Clients

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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 the DSN Global Celebration.

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KEYNOTE SPEAKER

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Simon’s purpose is to spark listeners to lead countries, companies and communities differently.

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SIMON BAILEY Author, Speaker and Success Coach

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LAURA BRANDT, Chief Experience Officer, IDLife JASON CAMPER, Co-Owner & Co-CEO, Le-Vel SHELLEY ROJAS, Publisher & Chief Brand Officer, DSN MARK STASTNY, Chief Marketing Officer, Scentsy NANCY BOGART, Founder & CEO, Jordan Essentials CHRIS CICCHINELLI, CEO, Pure Romance GLENN SANFORD, Founder & CEO, eXp Realty; CEO, SUCCESS AMI PERRY, VP, Business Development, NOW Technologies

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70

F E AT U R E

Protect Your Company from Downline Raiding B Y J O H N C .C . S A N D E R S , J R . ,

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K AT R I N A G . E A S H & C H A S E C O O P E R

Navigating Change for Legacy Companies B Y G O R D O N H E S T E R

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SPOTLIGHTS

Jordan Essentials Pushes Back:

Hybridizing Old School Party Plan B Y B E T H D O U G L A S S S I LC O X

Zyia Active:

Built to Uplift and Inspire

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

DEPARTMENTS

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NEW PERSPEC TIVES /

Being Coachable

B Y

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TO N Y J E A R Y

WORKING SM ART /

Here We Go Again—Managing Events in Uncertain & Changing Times B Y L E S L I E B LY E

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I N EV ERY ISSU E 10-11 AD INDEX // 15 FROM THE EDITOR // 17 INDUSTRY NEWS // 36 FORWARD THINKING // 91 DSA MESSAGE // 92 SUPPLIER DIRECTORY //

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DSN

DIRECT SELLING NEWS

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

FOUNDER AND CEO

Stuart P. Johnson PUBLISHER

Shelley Rojas CONTENT CONTRIBUTOR

John Fleming EDITOR

54

Patricia White editor@directsellingnews.com C R E AT I V E D I R E C T O R

Susan Douglass ART DIREC TORS

Laura Castillo Jenny Paredes PRODUCTION M ANAGER

Virginia Le COPY EDITOR

Peter Tepp

COVER STORY

WOMEN (NOT) IN THE WORKPLACE

An historic opportunity for direct selling

BUSINESS DEVELOPMENT M ANAGER

Jerilyn Taylor advertising@directsellingnews.com CONTRIBUTORS

David Lee Heather Martin Sarah Paulk Lisa Robertson Beth Douglass Silcox Jenny Vetter

B Y H E AT H E R M A R T I N

Direct Selling News (ISSN 15546470) is published monthly by SUCCESS Partners, 5800 Democracy Drive, Suite 100, Plano, TX 75024. Periodicals postage paid at Lake Dallas, TX and additional mailing offices.

POSTMASTERS please send change of address to 5800 Democracy Drive, Suite 100, Plano, TX 75024.

Subscription Rate: Free to direct selling and network marketing executives; all others in USA and Canada $50.

Overseas subscriptions are $100. All subscriptions must be paid in U.S. dollars. ©2021 Direct Selling News All rights reserved. Material may not be reproduced in whole or in part in any form without written permission.

No statement in this publication is to be construed as a recommendation to buy or sell securities or to provide investment advice.

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Nominate Your Company as a Best Place to Work in 2022!

NOMINATIONS ARE OPEN AUGUST 1 - OCTOBER 22!

To nominate your company, please go to www.directsellingnews.com/achievements/best-places-to-work/ The Best Places to Work in Direct Selling will be featured in our April 2022 issue.

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9/23/21 11:16 AM

DIRECT SELLING IS THE ORIGINAL PEOPLE BUSINESS. Measuring field engagement is critical to any company’s success, but the field is only part of the people equation. Once again, Direct Selling News has partnered with HR technology company Quantum Workplace to celebrate the important role direct selling companies play as employers in the marketplace and to identify the best of the best when it comes to creating engaging work environments.

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DIRECT SELLING NEWS

The News You Need.

The Name You Trust.

For sponsorship opportunities, please contact Jerilyn Taylor at advertising@directsellingnews.com

SPONSORED BY

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9/23/21 11:16 AM

2021 Fall Virtual Event Monday, October 18 – Thursday, October 21, 2021

THANK YO U SUPPLIER PARTNERS

To inquire about event sponsorship opportunities, email: info@directsellingnews.com

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/ FROM THE EDITOR /

Change is in the Air IT IS OCTOBER—AND CHANGE IS IN THE AIR. My favorite season is here. The weather is changing, and the leaves are turning. Everywhere we look, we can see change. One of my favorite quotes is by Nolan Ryan—“Enjoying success requires the ability to adapt only. Only by being open to change will you have a true opportunity to get the most from your talent.”

Our cover story, Women (Not) in the Workplace, takes a look at the great resignation that is occurring with women in the workforce. Savvy direct selling companies should take a look at this moment and examine this historic opportunity. You can read about it on page 54.

Our feature story, Protect Your Company from Downline Raiding, gives you tips and a plan for what to do when change happens and you are faced with distributors departing due to downline raiding. You can find this article on page 44.

On page 62, Gordon Hester gives you an in-depth look at Navigating Change for Legacy Companies. He gives you charts and insights from over three decades of experience in the channel. Hester offers steps on how to understand and overcome the fear of change, and lessons and insights that will help companies take the steps needed for outstanding leadership.

We are excited to have two company features this month. First, please check out the feature on Jordan Essentials found on page 70 to discover how 2020 brought change, and a hybridizing of the Old School Party Plan helped propel Jordan Essentials into their best year ever.

Our second company feature is on Zyia Active. This exciting company, led by Erin and Jeremiah Bradley, is building a community of women where uplifting each

other is as important as any product they share. Zyia Active operates on four pillars or priorities that continue to inspire the Bradleys and their team today: community, activity, uplift and light. Read their story on page 76.

Our annual Best Places to Work nominations are coming in. Best Places to Work in Direct Selling celebrates the important role companies play as employers in the marketplace and highlights companies setting the bar for establishing and nurturing work experiences and environments that bring out the very best in people. The company nominations are open until October 22. You can nominate your company or learn more at directsellingnews. com/achievements/best-places-to-work/.

Our Fall Direct Selling University event also experienced a change. It is now an all virtual event, with new dates from Monday, October 18—Thursday, October 21. Learn from 25+ speakers representing more than $20 billion in revenue and billions in year-over-year growth! The event is still free for all active corporate direct selling executives.

At Direct Selling News, we endeavor to be a source, resource and thought leader for the entire direct selling channel.

At this time, I wanted to share with you that I will be embarking on a personal change of my own. I have loved my time with this publication, the many people that I have been introduced to and the stories that we have been able to share. I know DSN will continue to be a guiding source in the channel, and I look forward to DSN’s continued growth.

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

@DSNUpdate

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2021 Fall Virtual Event Monday, October 18 – Thursday, October 21, 2021

T H A N K YO U P L AT I N U M S P O N S O R S

www.dsu2021.com To inquire about event Sponsorship opportunities, email: info@directsellingnews.com

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/ INDUSTRY NEWS /

The Month in News Affecting Our Channel 18 / Events 21 / News In Brief 24 / Insights 26 / Executive Announcements 27 / In Memoriam 30 / Direct Selling Capital Advisors Stock Watch 34 / Customer-Centric Recognized Companies

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/ INDUSTRY NEWS /

E V E N T S

Corporate executives, field leaders and distributors expressed their enthusiasm about

last year’s cancellations.

4

EVENTS

Team National’s 2021 Rise Convention after

T

Team National

EAM NATIONAL’S 2021 Rise Convention was held at the Kansas City Convention Center.

The event included leadership workshops, business-building recognition, mixers and a keynote by President CEO Angela Loehr Chrysler.

Rich and Rosie Thomas were also honored during the event as the recipients of the 2020 Eagle award.

Corporate executives, field leaders and distributors expressed their enthusiasm about assembling after last year’s cancellations and lockdown interventions as “thrilled to pieces.”

In addition to the in-person event, a livestream event was available for the general sessions.

A

Bellame

4

FTER POSTPONING for over a year due to the pandemic, Bellame hosted its 2nd Annual National Conference in Denver, Colorado with 75 percent of the attendees joining in via virtual feed.

Bellame introduced two new product lines— Bellame Baby and Bellame Body and a new compensation plan to support the business boom that is expected from these launches.

“This pandemic has only made us stronger Bellame hosted its as a tribe, and as an industry. Bellame is more 2nd Annual National determined than ever to put as much milk across Conference in the tables as possible, providing an opportunity Denver, Colorado and home for all,” said Melissa Thompson, with 75 percent of the Founder and CEO. attendees joining in via virtual feed.

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4 Kyäni’s Global Convention was the first

in‑person convention Kyäni was able to hold since the beginning of the pandemic.

K

Kyäni

YÄNI HELD its Global Convention in Salt Lake City. This was the first in‑person convention Kyäni was able to hold since the beginning of the pandemic. About 2000 people from several countries attended in‑person, and those who were still not able to travel were also able to participate via live‑streamed sessions. In total, Kyäni Business Partners from over 20 countries were able to attend.

Kyäni launched a new health & wellness program called Nitro Nutrition. In addition to program/product announcements and training, Kyäni celebrated the progress and success of their Business Partners with an elegant 20s themed Recognition Gala.

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2021 Fall Virtual Event Monday, October 18 – Thursday, October 21, 2021

T H A N K YO U GOLD SPONSORS

www.dsu2021.com To inquire about event Sponsorship opportunities, email: info@directsellingnews.com

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/ INDUSTRY NEWS /

N E W S

I N

B R I E F

NEWS IN BRIEF

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

Ruby Ribbon Receives First U.S. Patent

R Isagenix Donations Have Impacted 9.5 Million People Worldwide

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he ISA Foundation has since awarded more than $4.4 million worth of grants to nonprofits that align with its core focus areas of healthy nutrition and support for underserved children, wellness education for all, aid for natural disaster victims and equality initiatives.

These grants, along with Isagenix product and monetary donations, have funded more than 79,000 education events, provided more than 30 million meals and served over 9.5 million children and adults around the world.

“We don’t want to be just another company that makes amazing products,” said Isagenix Chief Executive Officer Sharron Walsh. “We want to be a company that makes amazing products, gives back generously, and inspires people to make the world a better place. It’s what drives us each and every day.” DSN

uby Ribbon, a women’s intimates, shapewear and athleisure company, has been issued a US patent for the first time in company history. The patent (US Patent No. 10,993,482) is the first of two patents for the company’s top-selling Sport Demiette line.

“Ruby Ribbon’s future product strategy will look to leverage our brand roots, owned IP and expertise in shapewear,” said Loly Hlade, Ruby Ribbon’s Chief Brand Officer. “As we expand into new categories outside of our brand signature camis and demiettes, we will use this owned IP and unique technologies to differentiate ourselves in the marketplace.” DSN

Beautycounter Launches Livestream Shopping Series

B

eautycounter will launch a four-episode livestream shopping series in partnership with Klarna, a retail bank, payments and shopping service.

“At Beautycounter, we’re always seeking new and interesting ways to build meaningful connections with our community and to meet them wherever they are,” said Blair Lawson, Chief Merchandising and Marketing Officer, Beautycounter.

Experiential shopping is becoming an important new trend, as livestream shopping is estimated to become a $25 billion industry in the U.S. by 2023, according to Coresight research.

“Liveshopping is rapidly becoming an essential part of the e-commerce experience for customers and brands,” said David Sandström, Chief Marketing Officer, Klarna. DSN w w w. d i r e c t s e l l i n g n e w s . c o m 2 1

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/ INDUSTRY NEWS /

N E W S

I N

B R I E F

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

DSA Announces Support for Defining Direct Sellers as Independent Contractors

DSA Canada Study Shows 3 in 5 Canadians Seeking Side Hustle

T

he Direct Sellers Association of Canada (DSA Canada) published a study by Abacus Data that reveals 31 percent of Canadians have sought supplemental income opportunities during the COVID-19 pandemic.

The underlying reasons for Canadians who engaged in these opportunities were found to be related to unemployment or layoffs, a reevaluation of personal aspirations and a change in financial goals.

The study also found that three in five survey participants intend to continue pursuing opportunities to make supplemental income throughout the next year. The key demographics within this figure include students (83 percent) and young Canadians ages 18-29 (75 percent).

“This research points to the fact that, whether by choice or necessity, Canadians see value in income opportunities that would not be considered part of a traditional employment arrangement,” said Peter Maddox, President of DSA Canada. “This could include participating in the gig economy, becoming an independent representative for a sales-based company or creating their own, small start-up business.” DSN

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he Direct Selling Association (DSA) announced its support of the Preserving Direct Seller Independence Act of 2021 H.R. 5038. The legislation introduced by Representatives Tim Walberg and Henry Cuellar would “clearly define direct sellers as independent contractors under the Fair Labor Standards Act (FLSA) consistent with the Internal Revenue Service Code.”

“The independent contractor status of direct sellers was vital to the 13.9 percent growth in the industry last year,” said DSA President Joseph N. Mariano. “Many Americans were looking for ways to earn some modest extra income while staying safe at home during the pandemic and direct selling to friends, neighbors and relatives was and is an attractive option for millions of Americans. […] I applaud Reps. Walberg and Cuellar for introducing this important legislation that recognizes direct sellers’ unique status under federal law. As Congress and the Administration debate the merits of independent work in our recovering economy, we hope that the independent contractor status of direct sellers as America’s original entrepreneurs will continue to be supported.”

Independent contractor status for direct sellers was affirmed in the Internal Revenue Code in 1983 as well as specific recognition under 43 state laws. The DSA believes that this reintroduced legislation would “incorporate the IRS Code language in the FLSA and reinforce the historical treatment of direct sellers as independent contractors under federal labor law.” DSN

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/ INDUSTRY NEWS /

N E W S

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

INSIGHTS

Primerica Financial Security Survey Shows Most Middle-Income Families’ Earnings Not Keeping Up with Cost of Living

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rimerica’s quarterly Middle-Income Financial Security Monitor, a survey measuring the financial situation and sentiments of middle-income families in the U.S. and Canada, showed mixed results regarding the stability of their finances. Most middle-income families (65 percent) feel positive about their current financial situation, but an equal amount (65 percent) say their income is falling behind the cost of living, a 9 percent increase from April.

Additional key findings from this survey include: n Concern

about paying for food and groceries has grown from 12 percent to 17 percent in the past year

n An

increase in the cost of goods and services was noticed almost unanimously by participants, including gas (94 percent), home prices (92 percent), groceries (91 percent), restaurants and bars (84 percent), health care (80 percent), entertainment (75 percent), taxes (73 percent) and childcare (73 percent)

n 53

percent of respondents have life insurance, and of those who do not, 10 percent say they are now more interested in purchasing a policy because of COVID-19

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n 65

percent say their income is falling behind the cost of living

n 18

percent anticipate having a better financial situation one year from now

n 22

percent are saving enough for a comfortable retirement

n 63

percent say it will be difficult to save for the future

n 65

percent say their personal finances are in good shape

“We’re encouraged that most middle-income families are optimistic about their financial situations, although they are feeling the pressure of rising inflation,” said Glenn J. Williams, CEO of Primerica. “We also see that more than half of these families are taking responsibility to improve their financial situation by saving for the future and protecting their families with life insurance, and even more families are considering taking similar actions. These steps are especially important today, as people are reporting increased prices on everything from gas to eating out to going to the movies.” DSN

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/ INDUSTRY NEWS /

E X E C U T I V E

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

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

EXECUTIVE ANNOUNCEMENTS

Jared Turner

Jennifer Orlando

Chris Reid

Chief Executive Officer, Amare Global Amare Global appointed Jared Turner to the role of Chief Executive Officer.

Amare’s Founder and CEO Hiep Tran will now transition into the role of Chairman.

“To achieve our vision, we set out to add additional strength to our executive team. Jared’s leadership and experience are what we’ve been looking for to take Amare to the highest level. I am excited about the massive growth in front of us.

I’m also enthusiastic about entering my new role as Chairman. My belief and commitment to what we are building have never been higher. I will continue to define our vision for the future while working closely with Jared on our growth strategy,” said Amare Founder and Chairman, Hiep Tran.

Chief Sales Officer, Plexus Plexus Worldwide welcomes Jennifer Orlando as the company’s new Chief Sales Officer.

“Jennifer brings a wealth of sales experience that will be valuable in helping Plexus grow in Australia, Canada, Mexico, and right here in the U.S.,” said Travis Garza, President of Sales and Marketing for Plexus Worldwide. “We’re confident her strategic mindset and dynamic leadership skills will drive incredible results while providing support for our 500,000 Ambassadors (independent sales representatives) around the world to help them grow their businesses and create development opportunities for themselves.”

Chief Legal Officer, Plexus Worldwide Plexus Worldwide announced Chris Reid, previously Vice President of Compliance and General Counsel, has been promoted to Chief Legal Officer.

“This is a well-deserved promotion for Chris, a strategic advisor and trusted member of the executive team who has consistently enhanced our business integrity through ethics, quality, compliance and consumer protection standards to be among the best in the digital age,” said Tarl Robinson, Plexus Worldwide CEO and CoFounder. “Since joining Plexus, Chris has spearheaded numerous enhancements including contract and legal inquiry management, along with quality modernization to ensure our customers can rely on a world-class quality assurance system.”

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Today’s news today.

F O L LO W D S N F O R

Daily News / Executive Announcements / More

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DIRECT SELLING NEWS

The news you need.

The name you trust.

Visit DirectSellingNews.com today!

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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

Laura Beitler and Elana Gold Chief Global Sales Officer and Chief Marketing Officer, Rodan + Fields Rodan + Fields, LLC recently added new leaders to its executive team. As part of a “renewed commitment to double down” on its roots as a direct seller, the company hired Laura Beitler as Chief Global Sales Officer (CGSO) and Elana Gold as Chief Marketing Officer (CMO).

In her role at Rodan + Fields, Beitler will be responsible for the global sales organization and all business related to the independent sales force. Beitler will also lead functions within business development, field operations, field marketing and communications, and recognition.

In her role with Rodan + Fields, Gold will drive brand strategy and vision and will be responsible for the functions regarding brand strategy and innovation, corporate strategy and insights, social media, loyalty, digital marketing and ecommerce and corporate communications.

“There couldn’t be a more important time for two trailblazers in their own right, Laura and Elana, to join Rodan + Fields as we become a leading direct selling company recognized industry-wide for our community, products and people,” said Chief Executive Officer and President, Dimitri Haloulos. “It is undeniable that their leadership, passion, and expertise come at a unique stage in our company’s evolution to bring together our consultant community, direct selling business model, and product innovation in a more powerful way as we welcome our next era of growth.” DSN

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IN MEMORIAM

Maughan also developed Forever Resorts, unique vacation and entertainment properties that include more than 20 properties in Africa, and gave back through the funding of a school and library in Samoa that bears his name.

Remembering Rex Maughan

R

ex Maughan, the founder of Forever Living Products, passed away on July 17, 2021 at the age of 84.

Maughan was an international humanitarian, real estate developer, outdoorsman and entrepreneur who turned his understanding of the benefits of aloe vera into a business venture that endures 43 years later.

Forever Living was launched out of Maughan’s garage in 1978 and is now one of the largest growers and producers of aloe vera, reaching over 160 countries.

“I am so proud of everything that my father has created,” said Gregg Maughan, Rex’s son & President of Forever Living Products International. “He has touched so many lives around the world and he received the greatest pleasure from seeing others succeed. His legacy will live on for a long time to come.”

Maughan also developed Forever Resorts, unique vacation and entertainment properties that include more than 20 properties in Africa, and gave back through the funding of a school and library in Samoa that bears his name. Maughan’s other philanthropic efforts included the financing of a clean water project, the restoration of a historic cemetery and the rescue of 30,000 acres of low‑lying rainforest on the island of Savai’i.

“From the very beginning, Rex built Forever with the objective of helping people to look better and feel better through the nutritional products and business opportunity that the company offers,” said Navaz Ghaswala, Executive Vice President, Forever Living Products International. “His values of integrity, empathy and fun continue to be at the center of everything we do and are as relevant today as they were 43 years ago.” DSN

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S T O C K

W A T C H

DIRECT SELLING C A P I TA L A D V I S O R S DIRECT SELLING CAPITAL ADVISORS: DIRECT SELLING STOCKS SIGNIFICANTLY DECLINE IN AUGUST

T

HE DIRECT Selling Index (DSCI) fell 8.4 percent in August, the second consecutive noticeable decline and the index’s weakest monthly performance since March 1, 2020. The Dow Jones Industrial Average (DJIA), by contrast, rose over the last two months, increasing 1.9 percent in August and 1.3 percent in July.

In August, three members of the DSCI fell by doubledigit percentage points—Medifast, Inc. (NYSE: MED); The Beachbody Company, Inc. (NYSE: BODY); and Sharing Services Global Corporation (OTC: SHRG)—and an equal number increased by more than 10 percent–eXp World Holdings, Inc. (NASDAQ: EXPI); Tupperware Brands Corporation (NYSE: TUP); and Mannatech, Inc. (NASDAQ: MTEX). Surprisingly, BODY and SHRG were among the stocks that also declined by more than 10 percent in July.

In total, 11 of the 17 stocks in the DSCI lost value during August, including seven of the eight small-cap stocks.

Since the DSCI tracking period began in March 2020, the DSCI has gained a cumulative 82.8 percent, compared to the DJIA’s gain of 35.9 percent. Year-to-date, the DSCI has increased 15.7 percent, while the DJIA has gained 14.2 percent.

The DSCI’s disappointing performance over the last two months essentially erases the outsized gains realized over the previous two months, particularly the 18.4 percent increase in May. “An issue facing the direct selling stocks, and likely a

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principal reason for the pronounced declines in the DSCI over the last two months, has been investors’ increasing focus on large cap stocks, particularly mega-cap technology stocks, and the resultant narrowing of the group of advancing stocks,” said Stuart Johnson, Direct Selling Capital Advisors CEO. “These giant stocks are heavily represented in the DJIA and account for a continuation of that index’s rise over recent months. Conversely, many direct selling stocks are small to mid-caps and have been a source of funds for investors recently. As an illustration of this current preference for larger cap stocks, it is likely no coincidence that five of the nine large cap components of the DSCI increased in August, while only one of the eight small cap members gained.”

It seems possible that the significant declines experienced in July and August will be at least partially reversed in September and, factoring in strong earnings reports and the declines in share prices of many of the stocks over the last 60 days, many direct selling stocks currently trade at substantial P/E discounts to the overall stock market. HLF stock, for instance, already increased 3 percent in the first three days of September, without any company-specific news.

With this in mind, however, September is historically a difficult month for overall stock market performance. It is also when investors will be grappling with the delicate issues of the timing of the U.S. Fed’s potential tapering of its bond buying program, and the details of any tax increase plan to fund increased federal spending.

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Year-to-date, the DSCI has increased 15.7 percent, while the DJIA has gained 14.2 percent.

LARGE CAP STOCKS n Betterware de Mexico (NASDAQ: BWMX) fell 0.5 percent in August despite reporting healthy second quarter earnings on August 5. Revenue, EBITDA and net income increased 81 percent, 92 percent and 72 percent, respectively, over the previous year. Shares are up 27.2 percent since the start of the year and a remarkable 349 percent since BWMX began trading in March 2020 after the company’s merger with the SPAC DD3 Acquisition Corp. n Tupperware Brands Corporation (NYSE: TUP) reversed its downward pattern that has lasted several months, increasing 14.3 percent in August, and cutting its year-todate losses to 25.3 percent. Since March 1, 2020, TUP shares have gained an astounding 737.5 percent. On August 4,

the company reported second quarter results that easily surpassed Wall Street’s expectations. Quarterly net sales and adjusted EBITDA each increased 17 percent compared to the previous year. In late June 2021, TUP’s Board of Directors authorized a $250 million stock repurchase plan, equivalent to 20-25 percent of shares outstanding, reasoning that the company’s Turnaround Plan had successfully improved its liquidity position. n Nu Skin Enterprises, Inc. (NYSE: NUS) shares declined 5.7 percent in August, leading shares to be down by 7.3 percent in the first eight months of 2021, but up 114.6 percent since March 2020, when tracking began.

Second quarter earnings included an increase in revenue by 15 percent over the previous year’s period, and EPS growth w w w. d i r e c t s e l l i n g n e w s . c o m 3 1

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S T O C K

of 42 percent. NUS boosted its full-year 2021 EPS guidance to $4.30-$4.50, about a 5 percent increase from the guidance it issued just three months before. n Herbalife Nutrition, Inc. (NYSE: HLF) gained 0.8 percent in August, boosting the stock’s year-to-date performance to 2.9 percent, and a gain of 58.7 percent since March 2020.

Second quarter net sales reached $1.6 billion, up 15 percent from a year ago, and adjusted EBITDA rose even more rapidly, reaching $262 million, 18 percent higher than the second quarter of 2020. n Medifast, Inc. (NYSE: MED) stock was the victim of significant profit taking in August. The company’s second quarter revenues increased 79 percent from the same period last year, and diluted EPS grew even faster, reaching $3.96 in 2Q 2021, up 113 percent. In turn, MED boosted its full-year 2021 revenue guidance slightly to $1.425-$1.475 billion. However, despite these robust numbers, MED’s shares declined a remarkable 20.2 percent in the month, cutting its gains since March 1, 2020 to 186.7 percent. Based

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W A T C H

on the $13.44 per share midpoint of MED’s annual earnings guidance, the stock trades at a P/E multiple of about 17.5x, an approximate 20 percent discount to the overall stock market’s valuation, despite its much faster projected revenue growth. n USANA Health Sciences, Inc. (NYSE: USNA) shares rose 1.8 percent in August, leading to a year-to-date gain of 24.5 percent. Since the March 2020 inception of the DSCI, USANA shares have increased 46.8 percent, beating the Dow’s 35.9 percent cumulative price increase. USANA reported robust second quarter results, with net sales and diluted earnings per share jumping 30.1 percent and 41.7 percent, respectively, from year ago levels. n eXp World Holdings (NASDAQ: EXPI) shares posted the strongest performance of all DSCI members in August, rising 27.6 percent. So far in 2021, the stock has climbed 49.4 percent, and an astonishing 859.2 percent since March 2020. Second quarter financial results reported 87 percent more agents than in the year-ago period. Equally important,

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The percentage of stocks which analysts recommended selling was only 3 percent.

EXPI declared a $0.04 per share quarterly cash dividend to shareholders, its first-ever dividend. Its cash balance increased $44 million in the quarter, even after repurchasing $55 million of stock during this period. The company announced on August 31 that it has expanded into Germany, bringing the total number of countries and territories in which its real estate agents operate to 18. EXPI now employs more than 62,000 agents across the globe. n Primerica, Inc. (NYSE: PRI) was the fourth-best performer among all stocks in the DSCI in August, rising 4.6 percent, and is now 18.5 percent higher over the first eight months of 2021, and 39.6 percent higher since the March 2020 inception of the DSCI. The company’s second quarter revenue and earnings per diluted share increased 25 percent and 28 percent, respectively. PRI’s ROE is an impressive 26.3 percent. n The Beachbody Company, Inc. (NYSE: BODY) stock declined 13.9 percent in August. Second quarter revenue increased 2 percent versus over the same period in 2020, and digital revenue rose 20 percent. Adjusted EBITDA was negative $4.4 million in the second quarter versus positive $0.9 million in the second quarter of 2020.

SMALL CAP STOCKS The small cap stocks tracking set lagged noticeably behind the performance of their large cap peers in August, with seven of the eight stocks falling during the month.

Mannatech, Incorporated (NASDAQ: MTEX) was the secondbest performer of all DSCI components in August, rising 27.1 percent. The stock has appreciated 81.8 percent over the first eight months of 2021 and reported solid second quarter financial results, including a 12.9 percent increase in revenues over the second quarter of the previous year. Diluted EPS reached $0.99 in the quarter, a 111 percent increase from $0.47 in 2020.

SHORT INTEREST AND DATA ANALYSIS Short interest in industry stocks continued to move higher through mid-August, and “days to cover” has increased about 150 percent since bottoming in mid-February.

The number of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks was around 97 percent.

The percentage of stocks which analysts recommended selling was only 3 percent. 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. 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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/ INDUSTRY NEWS /

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

Distributor—someone who

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DOES NOT have a distributor agreement in place n

Active is defined as each

customer and distributor must have made a product purchase during the last six months.

Active customer and distributor counts are limited to those in the U.S. and Canada.

Companies must have been

Direct Selling News is excited to present the Customer-Centric Recognition (CCR) Program to celebrate companies that are leading the way toward a customer-centric future for the industry.

Qualifying companies utilize business models that boast high customer-to-distributor ratios and prioritize customer sales.

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Qualifying companies must attain: 5:1 up to 10:1 for Gold status and 10:1 or more for Platinum status.

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

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D

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L E V E R AG I N G

M I N I - E V E N T S

Leveraging Mini-Events How Velovita uses small, frequent online events to create engagement and increase retention.

L

BY DAVID LEE

ARGE EVENTS AND CONVENTIONS are vital in creating culture and boosting excitement through the field, but many companies are leveraging the power of smaller, more frequent events for training and company updates. Virtual communication with field distributors and customers has been crucial over the past year and a half.

Velovita, a Miami-based company producing cognitive and sleep supplements, leverages email, the Telegram chat app, and consistent online events to grow engagement and maintain communication. Top corporate executives and the company’s co-founders are actively involved.

Specifically, three weekly virtual sessions include Mindset Mondays, Launch Training and Social Selling Overview, plus a monthly Founders’ Update.

Notifications and reminders for each session are sent via email and Telegram, including templated graphics with updated dates, times and topics.

Sometimes, short teaser videos are used to help increase participation. Here’s what each session focuses on and how they are conducted.

Mindset Mondays

These positivity and motivational video sessions focus on different topics every Monday morning on the company’s Facebook page. They last roughly 15 minutes to help members get their week started with a positive purpose. Since they are live, they

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generate more engagement than recorded videos.

“Get your week started on the right track. If you understand the power you have in the form of choice, you have the key to a lifetime of accomplishment and joy,” one video description teased.

Launch Training

These live business-building training sessions are hosted by field leaders in a live Zoom video conference every Monday night. Occasionally, special guest speakers are featured such as health experts who discuss the benefits of certain products or the company’s “bio-hacking” strategy. Distributors are invited to submit questions beforehand. Every first Monday of the month, Velovita’s co-founders give a monthly company update. These trainings are preceded by a quick company and opportunity overview (lasting roughly 20 minutes) for guests to attend who are considering the business.

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Social Selling Overview

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Near the first of every month, Velovita’s cofounders give a live corporate update via Zoom.

It includes product launches, monthly promotions, upcoming events, and overall company vision.

It keeps the co-founders in front of the field, illustrating their involvement and leadership. DSN

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Every Tuesday night, this training focuses specifically on different social media marketing and sales strategies. Like the Launch Trainings, these are live Zoom conferences. The philosophy teaches on topics such as growing an online following by creating curiosity, how to bring value to others, how to not be salesy, how to be a trusted authority, and more. Several successful distributors join as guest presenters teaching strategies that are working for them.

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R AC E

I S

O N

The Crypto Payments Race is On

BY DAVID LEE

INC.COM’S WHAT TO

M

KNOW BEFORE ACCEPTING BITCOIN PAYMENTS

AJOR COMPANIES ARE making serious moves in the cryptocurrency space. Some are exploring accepting online payments in some form of cryptocurrency. In August, Amazon and Walmart posted job openings for product leaders to develop digital currency and blockchain strategies. Both listings indicated the companies are exploring ways to expand payment options for customers. “We’re inspired by the innovation happening in the cryptocurrency space and are exploring what this could look like on Amazon,” a spokesperson for the company told CNN Business.

On AMC Theaters’ earnings call in August, the country’s largest theater chain announced plans to accept Bitcoin for tickets and snacks by the end of 2021. “I’ve had to learn more in the past six months about blockchain and cryptocurrency than I learned about it in the entire decade before that,” CEO Adam Aron said on the call. “We’re quite intrigued by potentially lucrative business [opportunities].”

Other major companies accepting some form of cryptocurrency include AT&T, the Dallas Mavericks, Microsoft, Tesla and Twitch. United Wholesale Mortgage, the country’s second-

1

Bitcoin is considered to be immune from inflation since there is a fixed supply, and the government can't manipulate its value. However, its value is volatile, bringing a significant level of risk.

2

For many companies, Bitcoin is a way to avoid bank transaction fees and long processing times, as well as the added task of converting to a different currency.

3

To accept Bitcoin payments, you will need a bitcoin wallet, which allows you to buy, store, and sell the cryptocurrency. Bitcoin wallets come with private keys or a secret number that allows the holder to access their crypto.

4

Sign up with a crypto exchange such as Coinbase or Lumi Wallet, which store keys on a third-party server.

Source: Inc.com

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17%

OF THE ADULT AMERICAN POPULATION (46 MILLION AMERICANS) OWN AT LEAST ONE SHARE OF BITCOIN.

BY THE CRYPTO NUMBERS

>

CRYPTO OWNERS

93%

WOULD CONSIDER MAKING PURCHASES IN

Digital Investment Group which includes a survey of 8,000 U.S. customers.

OF

CRYPTO OWNERS ARE

“VERY” OR “EXTREMELY”

INTERESTED IN CRYPTO PAYMENTS FOR THE REASONS OF

SECURITY & PRIVACY.

CRYPTO IN THE FUTURE.

Based on a New York study conducted in April 2021,

/ 59%

NON-CRYPTO OWNERS

60%

57%

/ 21%

WOULD BE INTERESTED IN MAKING ONLINE PURCHASES IF A CRYPTO PAYMENT OPTION WAS AUTOMATICALLY AVAILABLE AT CHECKOUT.

largest mortgage lender, announced plans in August to accept cryptocurrency for home loans by the end of 2021. “We’ve evaluated the feasibility, and we’re looking forward to being the first mortgage company in America to accept cryptocurrency to satisfy mortgage payments,” CEO Mat Ishbia said in the company’s Q2 earnings call.

Customer Demands

According to a New York Digital Investment Group study conducted in April 2021, 46 million Americans (about 17 percent of the adult population) own at least a share of Bitcoin. Pymnts, a paymentsfocused publication, surveyed 8,000 U.S. customers, including current and former cryptocurrency holders, as well as non-crypto owners. The survey found that both are interested in crypto payments, with 93 percent of crypto owners saying they would consider making purchases in crypto in the future. Even most of those who do not hold crypto (59 percent) were interested in using it to make purchases.

When it comes to increasing security and privacy, 60 percent of crypto owners said they were “very” or “extremely” interested in crypto payments for these reasons. If a crypto payment option was

automatically available at checkout when making online purchases, 57 percent of crypto owners said they would be interested in making such purchases.

However, just 21 percent of non-owners said the same. Regardless of purchasing interest from the two groups, the majority of both groups said there is not enough crypto payment adoption in the marketplace. More than 30 percent of respondents indicated that they would spend more if crypto was an additional payment option to typical options such as credit cards.

Crypto Options in Direct Selling

I-payout, one of the most popular pay systems in the industry used by several successful direct selling companies, has featured a Bitcoin payment option for years. So, direct sellers have the option of “getting paid in Bitcoin” along with several other choices such as bank transfers or debit cards.

Accepting cryptocurrency from customers is a totally different matter, but as we’ve seen, customer interest is certainly growing. Processing Bitcoin payments is also cheaper. Most Bitcoin payment processors, such as BitPay, charge 1 percent, while traditional credit card transactions cost around 3 to 4 percent per transaction. DSN w w w. d i r e c t s e l l i n g n e w s . c o m 3 9

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R E A D S

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PROTECT YOUR COMPANY FROM

DOWNLINE RAIDING

BY JOHN C.C. SANDERS, JR. FOUNDING PARTNER/DALL AS, K AT R I N A G . E A S H , PA R T N E R A N D C H A S E C O O P E R , A S S O C I AT E

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NE OF THE BIGGEST CRISES THAT A NETWORK‑MARKETING COMPANY CAN FACE IS THE DEPARTURE OF ONE OR MORE TOP-LEVEL DISTRIBUTORS TO ANOTHER NETWORK‑MARKETING COMPANY. Typically, when one or more of these important distributors depart, it is because they have been lured away by a competitor that promises vast financial reward. The catch is that to reap such financial rewards the departing distributors must persuade most of their organization to join them at the competitor company.

When such a distributor is successful, the distributor’s former company can face a material drop in revenues and profits overnight.

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Also, some noncompetes simply apply too general an approach, which creates enforceability problems…

The traditional solution, of course, is to include noncompetition and nonsolicitation provisions in distributor agreements that prevent a distributor from departing and soliciting other distributors to join them. As trial lawyers who are brought in to enforce such agreements, we have encountered numerous problems with noncompete and nonsolicitation provisions in distributor agreements that could have been easily fixed when the agreement was drafted. Issues often arise because laws on the enforceability of restrictive covenants vary significantly from state to state, and the legal landscape is constantly evolving. Also, some noncompetes simply apply too general an approach, which creates enforceability problems and could even cause problems under other laws governing employee misclassification.

Although every company should ensure that experienced counsel has reviewed and revised its noncompete and nonsolicitation agreements in the context of the company’s broader distributor agreement, here we provide a few recommendations that, in our experience, can provide better protection for companies when top-level distributors depart.

_______________________ World Class

RECOGNITION For World Class

PERFORMANCE

_______________________

A Two-Tiered Approach

State laws on restrictive covenants vary greatly. In the states that bar them almost entirely, companies must get creative with their agreements. But even in the states that allow enforcement of such provisions more broadly, companies still must narrowly tailor such restrictions not to go beyond protecting the company’s legitimate interests, which is chiefly to prevent unfair competition through the misuse of confidential information by competitors.

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Another important consideration for direct sellers is that restricting distributors’ ability to work with other network-marketing companies—even direct competitors—may increase the risk that a court will find a company’s independent distributors to be misclassified employees. In some of these states, the greater amount of control over current and former distributors through such agreements, the more likely that a court will find a distributor to be a misclassified employee. Even worse, in other states, the so-called “ABC Test”—most famously adopted by the California Supreme Court’s 2018 Dynamex Operations West v. Superior Court of Los Angeles decision—will apply. Prong C of that test assumes that if a worker is an independent contractor rather than an employee, he or she will be customarily engaged in business of the same nature as the work performed for the “hiring” entity. In other words, distributors must not only be permitted to perform work for other “hiring” entities, but they must actually do so in practice.

On the other hand, direct sellers, like other businesses, can and must take reasonable steps to prevent competitors from discovering and utilizing their trade secrets and other confidential information via defection by top sales leaders. One strategy to reconcile these two seemingly conflicting principles is to adopt a two-tiered approach to restrictive covenants:

A company should also impose more stringent nonsolicitation requirements on higher-level distributors, such as preventing them from recruiting other distributors and customers to work with a different network marketing company.

1

TIER

All distributors, regardless of rank, should be allowed to work with other direct-sales companies—subject to certain rules and restrictions, such as prohibiting distributors from promoting another company’s products or business opportunity at the same time as, or in conjunction with, the company’s own products or opportunities.

TIER

2

Distributors who achieve a certain level or rank (generally, any rank at which distributors gain access to confidential information, such as downline distributor data and other company trade secrets) should not be permitted to work with directly competing companies.

The distributor agreement should reasonably define what a competing company is (i.e., any company that sells products that directly compete).

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An ironclad dispute-resolution provision that requires distributors to resolve any claims against direct sellers on an individual basis in binding arbitration is one of the most important ways for companies to protect themselves.

A company should also impose more stringent nonsolicitation requirements on higher-level distributors, such as preventing them from recruiting other distributors and customers to work with a different network marketing company. Such agreements still must be narrowly tailored and linked to the confidential information that the departing distributor had access to. For example, nonsolicitation agreements that bar a distributor from soliciting all the company’s distributors are problematic; rather, the agreement should be limited to those distributors that the departing distributor gained confidential information about in the year prior to termination.

But remember, the devil is in the details, and it is essential that counsel with expertise in restrictivecovenant enforcement and direct-selling issues carefully review your agreements.

Carve Out to Arbitration Requirement for Injunctive Relief An ironclad dispute-resolution provision that requires distributors to resolve any claims against direct sellers on an individual basis in binding arbitration is one of the most important ways for companies to protect themselves from expensive, burdensome, and potentially “bet-the-company” class-action lawsuits. But sometimes, these provisions can create obstacles for companies needing to act quickly to seek expedited injunctive relief to prevent downline raiding when a top distributor departs.

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DEBBIE SQUIER PRESIDENT & FOUNDER

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It is thus important that the arbitration provision have a limited carve out so that a company may seek temporary injunctive or other equitable relief to protect itself from irreparable harm while an arbitration is pending.

When enforcing noncompete and nonsolicitation agreements, speed is everything, because damages are often very difficult to calculate and may leave the injured party without an adequate remedy at law.

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It is thus important that the arbitration provision have a limited carve out so that a company may seek temporary injunctive or other equitable relief to protect itself from irreparable harm while an arbitration is pending, or even before an arbitration is filed. When enforcing noncompete and nonsolicitation agreements, speed is everything, because damages are often very difficult to calculate and may leave the injured party without an adequate remedy at law.

Although arbitrators may award injunctive relief if provided by the parties’ agreement, the arbitral process is too slow and procedurally burdensome to provide immediate restraint.

Distributor agreements should thus provide for express carve outs from arbitration for claims seeking temporary restraint and injunctive relief. For any claims for permanent injunction, a company may decide that those claims should also be decided by a court. Critically important too in preventing an opposing party from blocking temporary restraint and injunction is for the agreement to provide that the court, not an arbitrator, decide whether a claim brought before it is subject to the carve out for claims seeking temporary relief.

By including this carve out for temporary restraint, a direct seller can ensure that it can swiftly protect its rights under a nonsolicitation and noncompete agreement, while at the same time protecting itself from class-action and other USAGE OF TAGLINED multi-plaintiff lawsuits.

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For example, Squire.com and its subsequent web pages feature the onetagline version (HIGHER PERSPECTIVE ONLY) of the Squire logo because the subpage content throughout the site provides adequate context to visitors.

On the other hand, if the team attends a national financial trade show where Squire should differentiate itself from a neighboring financial software company, then trade show banners need to include the tagline, “Audit-TaxAdvisory.”

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

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It is important for companies to take steps now to better prevent top-level departures and enforce restrictive covenants when departures happen.

State-Specific Strategies and Utilization of Venue-Selection Clauses

Lawyers typically think of choice-of-law provisions as designating the substantive law that will govern an agreement, while venue-selection clauses are typically thought of as a pre-negotiated location for the convenience of one or more of the contracting parties where any disputes must be litigated. But when it comes to restrictive covenants, venue and choice-of-law provisions are extremely complicated.

That is because many states with pro-employee laws that bar the enforceability of noncompete and nonsolicitation agreements also bar the enforceability of venue and choice-of-law clauses that would have the effect of enforcing an otherwise unenforceable noncompete or nonsolicitation agreement in the state. Indeed, courts in states such as California will often refuse to enforce an injunction entered against a California resident that was obtained in another state under a choice-oflaw-and-venue provision.

Because of these issues, it is a good strategy for a company to have varying provisions for residents of states with such laws. For example, in the distributor agreements that we draft, we often include carve outs from the general noncompete and nonsolicitation provisions in the agreement for distributors who are California residents. However, because California will allow the enforcement of nonsolicitation agreements to the extent necessary to protect trade secrets and confidential information, we draft very specific language that governs nonsolicitation restrictions for California residents. But this is just one example for one state.

There are numerous other strategies that can and should be employed for distributors who reside in other states, and they are too numerous to detail in this brief article.

In sum, it is important to think strategically and creatively about choice-of-law and venue issues and not just assume that the law of the state and the venue in which the company’s home office sits will necessarily be the most favorable option.

Conclusion

We have seen an uptick in distributor departures and raiding activity in the direct-selling channel. It is important for companies to take steps now to better prevent top-level departures and enforce restrictive covenants when departures happen. DSN

JOHN C.C. SANDERS is the Founding Partner/Dallas, KATRINA G. EASH is a Partner and CHASE COOPER is an Associate at Winston & Strawn LLP. Winston & Strawn LLP has extensive experience both in drafting restrictive covenants and in litigating claims based on them on behalf of companies across many industries, including direct sellers.

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WOMEN (NOT) IN THE WOR K PL ACE A N H ISTOR IC OPPORT U N IT Y FOR DIR ECT SELLI NG HOW DIRECT SELLING CAN BUILD ON AND IMPROVE ITS APPEAL TO WOMEN

BY H E AT H E R M A R T I N

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O M, C’M E R E! I M A D E YO U S O M E T H I N G!”

Y E L L S F I V E -Y E A R - O L D Z E K E P U R K E Y. “ W H AT D I D Y O U M A K E M E ? ” A S K S H I S M O T H E R , A M A N D A P U R K E Y,

W H O I S FA C E T I M I N G W I T H A R E P O R T E R W H I L E S H E WA L K S TO T H E K I T C H E N T O S E E W H AT Z E K E H A S C R E AT E D .

“CLOSE YOUR EYES, MOM!” “Okay. They’re closed.” When Amanda opens her eyes, she sees Zeke beaming over a plate of Play-Doh spaghetti and a stack of Play-Doh cookies. This kind of sweet moment reminds Amanda why she hasn’t re-entered the workforce after leaving her job as a high school teacher in spring 2020. Instead, she’s relishing extended time with her three children, all under the age of seven.

And she and her husband—who recently moved their family to Fort Wayne, Indiana—are grateful that his income is enough right now. She’s also relieved that she doesn’t have the stress of trying to balance a conventional job with her parenting job. “Because of the uncertainty of COVID-19, it would have been challenging to go back to teaching,” Amanda says. “I can’t imagine what it would have looked like for my kids to be doing home learning and me having to teach virtually.”

Amanda is one of a significant number of women who have not returned to payroll jobs since COVID-19 began disrupting our lives and work nearly two years ago. According to the National Women’s Law Center, female workforce participation has dropped to 57 percent, the lowest level since 1988. Estimates of the number of women who have left the workforce since

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February 2020 range from 1.8 million to 2.5 million, with black women, senior women and mothers affected the most by job loss, according to “Women in the Workplace,” a recent study by McKinsey. Many didn’t have a choice about leaving, but many are choosing not to go back—at least not any time soon.

This suddenly widened gender gap concerns labor market experts. “There is a real danger that female labor force participation could face its steepest sustained decline since World War II,” write the McKinsey study authors. Fewer women in the workforce mean less diversity at all levels, which not only skews company culture but also hurts the bottom line.

“Study after study shows that companies with a diverse workforce outperform those that lack diversity,” says Lauren Lawley Head, owner of

Half Page ad-October.pdf

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Female workforce participation has dropped to 57 percent, the lowest level since 1988.

— N AT I O N A L WO M E N ’ S L AW C E N T E R

Lawley Head Media, a marketing and content development company. “Gender equity is one piece of a comprehensive approach to diversity, equity and inclusion. This is why it is important for companies that want to remain competitive to focus on establishing a strong employment brand that speaks to the values of today’s emerging leaders.”

IF YOU FEEL LIKE YOU’RE USING ONE OF THESE, ISN’T IT TIME TO SCALE UP AND PLAY WITH THE BIG KIDS?

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Entrepreneurship will be the first choice for many women who are looking for a fresh take on work.

This could be a validating time and a turning point for direct selling. As a business opportunity, we have a strong employment brand among women, who account for 75 percent of our distributor base. Women are not as well represented in corporate leadership positions, however, with only about one-quarter to one-third of top roles held by women in our industry globally.

Savvy direct selling companies will take this moment to examine and capitalize on the qualities that have made our business opportunities ideal for many women for decades. Companies whose corporate teams are predominantly male would be wise to reflect on why their cultures and C-suite roles may be excluding women and begin to close that gender gap.

Freedom, Flexibility & Family: Building Our Distributor Base

The pandemic has brought upheaval and uncertainty and has accelerated innovation. It also has given women a chance to clarify their priorities and claim more power over how their lives and work are structured.

Entrepreneurship will be the first choice for many women who are looking for a fresh take on work. In fact, the ranks of female entrepreneurs have been growing steadily for some time.

According to the U.S. Census Bureau, in 2018, 1.1 million women-owned companies that employed people, and 10.6 million women were self-employed.

These numbers have been on a consistent uptick, says Inc. magazine, which reports that in the past two decades, the number of women entrepreneurs has increased by 114 percent.

Continued on page 60

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A

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THE PROPORTION OF WOMEN IN SENIOR CORPORATE ROLES GLOBALLY

N I N C R E A S I N G N U M B E R O F WO M E N H AV E B E E N R E AC H I N G T H E TO P S O F C O R P O R AT E L A D D E R S I N

T H E U N I T E D STAT E S A N D OT H E R C O U N T R I E S, B U T I T’ S ST I L L

B E E N A S LOW C L I M B.

ACCORDING TO research by Catalyst, a global nonprofit that works with companies to increase the number of women in key positions, the proportion of women in senior roles globally is 29 percent, the highest number ever recorded and yet still far short of parity.

Direct selling industry numbers reflect this larger picture. An analysis of available online information indicates that in the top 10 Direct Selling News Global 100 companies, about 25 percent of management and board positions are held by women. When you look at just the top 10 U.S.-based direct selling companies, women hold about 35 percent of leadership and board seats, with Lehi, Utahbased Young Living having the

most balance: 50 percent of its listed senior executives and board members are women. Among the leading non-U.S.-based companies, São Paulo, Brazil-based Natura &Co appears to have the largest percentage of women in high-level corporate roles, at 33 percent.

At best, the pandemic has potentially hit the pause button on this growth, albeit slow, in women in the C-suites. And we already know that overall female workforce participation has lost ground, which economists believe will have significant ripple effects.

Says a recent report in Politico, “Every 10 percent increase in women working is associated with a five percent increase in wages for all workers as overall labor force

We already know that the overall female workforce participation has lost ground, which economists believe will have significant ripple effects.

productivity increases. And equalizing employment across gender would have added almost $500 billion to the U.S. GDP in 2019.” So, every time there is a “nonparticipation” period among women in the workforce— such as when they take a year or two off to care for children—the gender pay gap gets wider, by as much as 30 percent.

In a commentary for the think tank Rand Corp., economist Kathryn A. Edwards writes that one key to preventing this chasm from getting wider would be passing a federal law that prohibits employers from asking about prior salary and wages. Edwards says that “truly transformational change” would be for the federal government to financially support family leave for caring for a child or other family member—as well as to provide free childcare, public preschool and school days with hours that align with work day hours.

Kathleen Hayes, a single mom living in Chicago who has been cobbling together side gigs until she finds permanent work again, says employers were accommodating in the pandemic’s early days but must have seen those accommodations as temporary. “I’m in a Facebook group of women who are talking about what employers are heaping upon them as they return to offices,” she says. “These women are asking for more flexibility, but the fact that they have to ask shows me that not much has changed in terms of employers applying the lessons they should have learned over the last 18 months.” n w w w. d i r e c t s e l l i n g n e w s . c o m 5 9

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Continued from page 58 Maya Rodriguez has been part of this growth.

She lost her job as a marketing manager for a national plumbing wholesaler in Cincinnati in April 2020. Soon after, she struck out on her own as a real estate investor, working with people who want their self-directed IRAs out of the stock market. Her new priorities are freedom and self-determination.

“I felt very confined by my eight-to-five, Mondaythrough-Friday, three-weeks-of-vacation schedule,” she said. “I would much rather take a calculated personal risk and do something bigger for myself than build something for someone else who will never share it with me. This is how I knew I was an entrepreneur.”

Fortunately, our industry checks many of the boxes that entrepreneurial women are looking for. We give people the ability to work as much or as little as they want, as well as when they want.

And we invest in our independent distributors’ professional and personal development, making us more than just side gigs for those who want to grow their skills and explore their potential. We’ve also become significantly more transparent over the last several years. For example, the vast majority of our companies make it a priority to report legitimate retail customer numbers and to clamp down on misleading statements about income and results potential.

If we want the best of the best to join our teams, we have to expect and welcome women who will hold us accountable to high standards and to practicing what we preach.

Bringing More Women to the C-Suite

Direct selling companies that want to close the gender gap in their corporate offices need to listen to what people like Amanda and Kathleen Hayes are saying about why many traditional jobs don’t cut it anymore.

Insufficient (and unequal) pay is one of the big reasons. Amanda has delayed going back to work altogether because it doesn’t make financial sense right now for her family. “I’d consider substitute teaching, but then nearly all of what I’d make would go to pay for childcare. It’s not worth the effort,” she says. According to the McKinsey report, 40 percent of mothers (compared to 27 percent of fathers) have

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I firmly believe that if you give women flexibility they will overperform for you.

— M I C H E L E G AY / L i m e L i f e b y A l c o n e C o - Fo u n d e r & C E O

added three or more hours of caregiving a day to their schedule. That’s 15 or more hours a week, the equivalent of a considerable part-time job.

In addition to not taking work with a paycheck that won’t cover the job’s associated costs, women are being more selective about the kinds of employers they’re willing to work for. For example, Kathleen Hayes lost her job at Northwestern University in spring 2020, just as Chicago was shutting down during the pandemic’s first wave. She wants to return to the workforce and has been applying for full-time jobs, but she’s not willing to work for an organization that doesn’t honor her needs as a single mother to 11-year-old Henry or one that doesn’t share her values.

“What’s off-putting is that so many employers are writing job descriptions with so many responsibilities that it’s evident the person hired is never going to sleep,” Kathleen says. “Employers need to demonstrate an understanding that we are far more productive when we feel like we have the flexibility to take care of our families and ourselves.”

Kate Gardner of C3 Executive Search, which recruits executives for the direct selling industry, agrees that job descriptions are a problem and says it’s also what the descriptions don’t say that is a hindrance to attracting women. “There is no company story, no mention of culture, nothing about the organization and the interview process,” she says. “They say nothing to warm the heart or introduce the candidate to the people with whom they will be working.”

Kathleen, who has a Ph.D. in education, says she also wants to work for an organization with integrity and one that is selective in its partnerships. “Important indicators for me are who funds an education nonprofit that has a job opening I might be interested

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in, for example, and what I know about that organization’s track record for walking its talk.”

Michele Gay, co-founder and CEO of LimeLife by Alcone understands the need for flexibility firsthand.

“I am a working mom. I built a $100 million company in four years while doing laundry, dropping off forgotten cleats and cooking dinner during my ‘work hours.’ I firmly believe that if you give women flexibility they will overperform for you.”

Organizations that adapt to what women are asking for will attract the best women candidates from this nearly unprecedented talent pool.

A Slow Return?

Back at the Purkey household, Amanda mulls another income option. “I’ve had some luck on Facebook Marketplace selling the upcycled home accessories I make. Or I could create a shop for

myself in the garage. My husband always tells me, ‘You can do whatever you want.’ But what I want is to be on call for our kids,” she says.

How long will it take for female participation in the labor market to reach pre-pandemic levels?

Hard to say, according to some experts. But it may be a while. “Women tend to stick with the decisions they’ve made,” said a senior fellow at the Brookings Institution to NPR in June. “A mother who decided to stay home with her children in the pandemic may end up out of the workforce for years.”

Direct selling has the opportunity to be the choice women make that doesn’t force them to pick between work and family. We can be the preferred option for women who want to take the entrepreneurial plunge and those who want a corporate position that invites them to bring their full power to the table.

Will your company be that choice? DSN

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C H A N G E

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L EG AC Y

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NAVIGATING

CHANGE

FOR LEGACY COMPANIES A leader’s job is to build the foundation to ensure the legacy and future of the company.

BY GORDON HESTER

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THE STRONGER THE “DNA OF

C H A N G E A N D I N N OVAT I O N” I S FO R

A C O M P A N Y, T H E B E T T E R I T W I L L

BE FOR ITS FUTURE.

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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C H A N G E

To put this chart in context, 20 years from now, the rate of change will be 4x what it is now.

TIME INTO FUTURE

YEAR

PARADIGM SHIFT RATE

2120

1024x

50

2070

32x

40

2060

16x

30

2050

8x

20

2040

4x

10

2030

2x

0

2020

1x

100 ...

FO R

L EG AC Y

C O M PA N I E S

S THE ADAGE GOES, CHANGE IS THE ONLY CONSTANT IN LIFE. Ray Kurzweil, the director of engineering at Google and arguably the world’s #1 futurist, notes that “the future will be far more surprising than most people realize.” The reason it will be more surprising, he argues, is “because few observers have truly internalized the implications of the fact that the rate of change itself is accelerating.”

In his book titled, The Singularity Is Near, Mr. Kurzweil cites that the change in the short run might appear linear, but it becomes exponential over time. As you can see from the chart below, we are beginning the second phase of change when linear change in the short term turns into exponential change in the long term.

To put this chart in context, 20 years from now, the rate of change will be 4x what it is now. Differently put, for someone who is about 40 today, when they’re 60 in 2040, the rate of paradigm change will be 4x what it is now. They will experience a year of change (by today’s standards) in three months. For someone who is 10 today, when they’re 60, they’ll experience a year of change in 11 days.

“

Few observers have truly internalized the implications of the fact that the rate of change itself is accelerating.

— R AY K U R Z W E I L / D i r e c t o r o f E n g i n e e r i n g a t G o o g l e

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Change for Direct Selling and Network Marketing

I have been in direct selling and network marketing for over three decades. Change is not a new concept for us. While change has always been a constant in business, the reality is that the marketplace will not adjust to how we have historically run our businesses. Even worse, the failure to change will magnify the speed of how much a company lacks relevancy over time.

The failure to evolve has often been termed as a “slow death” of a company. Today the consequences for failure to evolve are more drastic and faster to the future of any company. The critical message for all legacy companies is to embrace change now!

I built the chart below on the trends driving change we face today in direct selling. The timeless forces driving change today are the fundamentals of acquiring a customer, retaining a customer, recruiting new reps and keeping those reps engaged in our business are timeless. However, how they are practiced in the marketplace is changing quickly.

We are seeing a major shift in the merger of the online and offline aspects of our business. A few months ago, I wrote an article for DSN that discussed this concept, The Dawn of the Phygital Movement in Direct Selling. We are seeing technology and data play a bigger role in direct selling companies internally and with their field.

The DSA’s Digital Transformation Study released earlier this year noted the average company is spending about 8 percent of revenue on technology which is almost a 400 percent increase to what that was six years ago. Some of the bigger companies are spending 13-18 percent. In addition, we are seeing an increased level of competition for new entrepreneurs as companies use an independent contractor entrepreneurial model to build a salesforce. The impact of these trends is in their infancy, and their importance will magnify in the coming years. This is another reason why waiting to make key changes is a dangerous decision for any legacy company.

A N E M P OW ER I N G FU T U R E: TH E TR E N D S

>

CUSTOMER CENTRIC MOVEMENT

TECHNOLOGY & DATA REVOLUTION

DNA OF INNOVATION & CHANGE

n Distribution

n Enhancing

n Changing

n End

n How

Customers Buy

n Practicing

n How

We Recruit New Reps

Channel> Business Opportunity

Traditional Areas Driving the Business

Consumer Focus

n Lead

with the Product

n Segmentation

Mapping

& Journey

Reps Build & Manage Their Businesses

OMNI CHANNEL

/Phase 1 - Customer Acquisition

n Merger

/Phase 2 - Customer Retention

PHYGITAL MOVEMENT [OMNI FOCUS] n Merger

World

of the Online & Offline

n Focused

on Maximizing the Customer Experience & Journey

n Enhanced

Focus in 2 Core Areas:

/Marketing /Culture n Impacted

by Demographic Shifts

n Enhanced

Focus on Psychograhics

Timeless Fundamental in a Relevant Way

n How

Getting More Involved in Selling & Customer Retention

n Company

is Happening Faster Than Ever

of Social Selling + Traditional Selling

n Larger

Digital Assets Landscape

n Enhanced:

/Visibility to New Prospects /Focus on Company Brand

n Shift

From a Mindset of Fear to One of Opportunity

n Re-imagining

& Enhanced Focus on Key Business Areas:

n Focus

/E-Commerce /Back Offices

/Compensation Architecture

/Mobile

/Marketing & Sales

/M-Commerce n Enhanced

Focus on Use of Middleware

n Improving

Operational Efficiency

Areas:

/Technology & Data Architecture

/Operations /New Talent [Corporate & Field}

/Compliance Focus

INDEPENDENT CONTRACTOR ENTREPRENEURIAL MOVEMENT

/Focus on Tools & Trainings

n One

n Driving

a Personal Branding Revolution

n We

Were the Creators of This Business Model of the Fastest Growing Segments of the Entrepreneurial Boom

n Ideal n Our

Business Model for Micro-influencers

Differentiator is Culture

n Ongoing

Merger of Key Strengths of Direct Selling & Gig Opportunities w w w. d i r e c t s e l l i n g n e w s . c o m 6 5

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CHANGE PROCESS Two Core Obstacles to Change for Legacy Companies

Change is especially challenging for legacy companies. They face unique obstacles to change vs. startups and early-stage companies. Below are the two primary obstacles I find when working with legacy companies.

OBSTACL E

1:

LAC K O F U N D E R STAN D I N G O F H OW TO C H AN G E Change is a process that I mapped out in the diagram.

STEP #1 is an analysis of what needs to change.

This is where your team can identify and analyze the area or areas in your company that need to change.

STEP #2 is the “breakthrough.” This is the most important part of the change process. A breakthrough is defined as a moment in time where there is an absolute commitment to change. With change, it is often important to burn the boat, so you cannot retreat to the “island of safety.” This is so important because without this level of resolve, it is only a matter of time before some obstacle defeats change.

STEP #3 is to define a plan. There is an important concept when it comes to change management.

That concept is that speed kills when it violates key fundamentals. So often, change needs to be managed in more of a long-term process than a “big bang” approach to change management.

Our industry is masterful at selling hope and selling change is no different. It is important not to over promise and under deliver. If you do, you will likely create trust gaps that are massive roadblocks and make change virtually impossible.

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2

1

BREAK THROUGH

RECOGNITION A N A LY S I S

+

[PROACTIVE/FORCED]

5

MEASUREMENT

3

PLAN

4

EXECUTION

STEP #4 is to execute the plan in an effective way to minimize risk and maximize the results you want to see from change. Business is an execution game. You need the right voices in leadership driving change, and it is essential that these leaders are the voices for your company. You also need a talented and committed team to execute the plan.

STEP #5 is to measure the results of change. While intuition has value, data is key to recognizing the best path forward. Plan to continue the change process to start step #1 over again. This is an effective way to create a “DNA of Change” vs. thinking that change has some endpoint. While some change is an event, most change is an ongoing process.

O BSTAC L E

2:

U N DERSTA N DI N G A N D OVERCOM I N G FEAR There are two types of fear. The first is fear that is evolutionary and is defined by our flight or fight response. The second and most common fear in business is “programmed fear.” All our brains work in a similar way and are derived from our experiences in life. We focus on something, and then our brain asks What does this mean? This is how our belief system is created and this controls many of the decisions and actions we take in life. When our beliefs are driven by repetition and emotions, they become more powerful to our brain and often become the “sacred cows” that stop change. This is why it is often said that the seven most expensive words in business are “we have always done it this way.”

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One of the biggest fears is tied to the “J-Curve.”

The concept of a J-Curve is that the adoption of changes will drop revenue and profitability. Leaders often see this as too big of a risk rather than an investment into relevancy and a better future for the company and all those involved with it. Change favors bold leadership but punishes those types of leaders if change is done too quickly or recklessly.

When it comes to fear, one of the biggest obstacles I see with companies is the fear of legacy leaders leaving their company. Many of these leaders have long-term relationships with their companies. They were promised a path to passive income, and once they earn it, they fight to protect it.

This is a more complicated discussion since it relates to managing change with this group. I cannot stress enough the importance that these leaders see embracing change as an investment into their future vs. change taking something away from them. This is a behavioral game, and there is an art form to how to play this game effectively.

Addressing fear requires compassion, listening and observation. To address fear, one ultimately needs a psychologically safe environment. The first step in creating a psychologically safe environment is to acknowledge that fear is a sane emotion. Lower your organization’s cost of fear by increasing the psychological safety of people who are part of it, including yourself.

ST

SC

AL

E

HA

> T EA E

RE

LE

ASE

MO

RP

OD

CR

VA L L E Y O F D E AT H

EL

P R O F I TA B I L I T Y

M

THE START‑UP J CURVE

SCALING BUSINESS MODEL RV

I D E AT I O N

E

CUSTOMER DISCOVERY AND V A L I D AT I O N

H

w w w. d i r e c t s e l l i n g n e w s . c o m 6 7

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Lessons and Insights

8

Over the last six years, I have been primarily focused on helping companies to evolve their business models. Along the way, I have learned a few key lessons from both my successes and my failures. A summary of these insights and lessons is listed below.

C O M PA N I E S

CHANGE

[ FOCUS ON WHAT YOU CAN CONTROL ]

1. Build a mission and vision tied to change.

It should define the ultimate goals of what the company seeks to become in the future and its impact in the marketplace.

2. It is important to build a “behavioral blueprint.”

This is a document that lists all the behaviors you will expect and demand from those in your business. Ultimately this is your North Star for making decisions. If you fail to approach change without this blueprint, you will find that self-agendas and mindset of key leaders will dictate the decisions of the company. This makes change difficult and extremely political.

3. In all change, there will be winners and losers.

Managing the emotions of both is critical. Buy-in and alignment are critical with key stakeholders.

4. There are 3 cancers in business: drama, division and entitlement. You can effectuate change catering to people who drive these behaviors.

5. The ultimate decision maker for any company will likely determine the direction and extent of change. The limitation of change lies in their hands.

6. Focus on what you can control or influence.

When it comes to the field, influence works much better than control.

7. Change happens in the trenches, not in the boardrooms.

8. Trust is built with a series of wins. The more wins, the easier it gets to execute change. This creates possibilities that were likely improbable during the initial change process.

9. It is best to be proactive to managing change. If you wait for change to be forced onto a company, the process of change becomes much more challenging.

10. If you refuse to embrace change, the future will likely penalize everyone involved with your company. Your legacy will likely be defined by your inability to evolve and how your leadership led to the demise of your company.

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AREAS OF MANAGING

2

1

TECHNOLOGY

COMPETITION

8

3

CULTURE

4

POSITIVE CHANGE

YOUR LIFE

7

DISTRIBUTORS LIFE

6

INDUSTRY

5

ECONOMY

CUSTOMERS LIFE

11. Avoid the tendency to have a new hero as the voice of change. Change should be about practicing the behaviors you want in your company and practicing fundamentals in a relevant way.

In the end, the areas below are always in a constant state of change. The stronger the “DNA of Change and Innovation” is for a company, the better it will be for its future. Culture is the ultimate differentiator in direct selling and network marketing. It is the foundation for its future.

As leaders, our job is to build the foundation to ensure the legacy and future of the company. This is the responsibility of any good leader. While the evolution of any legacy company is a difficult process, the longer a company waits, the more difficult change will become over time. DSN

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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JORDAN ESSENTIALS /

Pandemic Pushed, Jordan Essentials Pushed Back Hybridizing Old School Party Plan

BY BETH DOUGL ASS SILCOX

I

T WAS MARCH and the world beset with coronavirus when Nancy Bogart returned to her company’s Missouri headquarters from

a speaking engagement and rallied her Jordan Essentials corporate team and field leaders, projecting a tenacious spirit inherited from an entrepreneurial family.

“It was a fact that we weren’t going anywhere.

It was not an option,” Bogart, founder and CEO, says of her commitment to the people and the company

FOUNDED:

2000 HEADQUARTERS:

Nixa, Missouri TOP EXECUTIVE:

Nancy Bogart, Founder & CEO PRODUCTS:

Skin and body care products, cosmetics

she created more than two decades prior. 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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J O R DA N

E S S E N T I A L S

No easy feat for a company whose consultants— some of whom helped launch the company— relished in-person parties, loved inputting orders, receiving product shipments, repackaging orders and delivering them to their customers. Jordan Essentials was old school. But now, it would be something new, different, and better than ever.

Put It in Their Hands

“

It is interesting, isn’t it, that the pandemic kind of unlocked our potential?

— N A N C Y B O G A R T / C E O & Fo u n d e r

But the old-school direct selling party plan, where Jordan Essentials firmly planted itself and grew for 20 years, looked increasingly vulnerable in light of the pandemic. “I felt that if we did not pivot, we were going to be in trouble,” states Bogart.

“I came back and pivoted into online parties, which they really did not want to do. So, within three weeks, I had pivoted the entire company, and we took off in April,” says Bogart.

And by taking off, she means the once-reluctant Jordan Essentials field quickly realized the true power and advantage of online business. They did this adapting and then embracing new ways, and eventually making 2020 the best sales year in company history—marking roughly 45 percent growth for the privately held company.

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At 30, Bogart was running after three young sons, not thinking about running a business. The oldest was born blind in his left eye, and the subsequent medical journey caused her to quit her job. Two more boys joined the family and seven years passed before heading back to work was a common conversation between her and her husband.

With a degree in hospitality, Bogart’s career dreams of big parties, catering, sales and hotel event planning seemed impractical. “First of all, financially, how do you do that? Then, how do you find day care for three little boys, and do you really want to do that?” she remembers asking herself.

A good dose of inherited tenacity and an entrepreneurial mindset sent Bogart into the kitchen to solve her dilemma. Inspired by the solid perfume bars her grandmother once made, she says, “I invented a little lotion bar—a solid bar of lotion.”

Thinking she could make enough money to pay for Christmas and get her husband off her back about returning to work, Bogart and her mom—who made local history as one of the first automobile saleswomen in the St. Louis metropolitan area at a time when that subjected her to ridicule and harassment—set up at a vendor show.

“Mom said, ‘Put it in their hands.’ The rest is history. We sold $7,000 in three days and decided we could do something more with it,” says Bogart.

Zero to Multimillion in Two Years

Applying a traditional party plan model took the company to multimillion-dollar status in two years, and by 2007 they rebranded, ditching the name Country Bunny Bath and Body. “Obviously, no market study there,” she quips.

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Bogart took over as CEO, learned more and more about manufacturing products, and shifted their catalog natural— free from dyes, gluten, parabens, aluminum and more.

Today, alongside their flagship lotion bar, Jordan Essentials shares purposeful, family-safe lotions, sprays and skincare products, body and face care products, and botanically based mineral makeup.

A staff of around 45 employees—give or take—keeps this debt-free, extraordinarily self-sufficient company humming.

Bogart says they’ve created a rock-solid base. They are well held and well run because they hire to ten core values or expectations. They review to them and, if necessary, release people through those as well.

“We want humble and hungry, people who love people,” she describes. “We tend to attract hard workers—that’s where all those sales come from in the field—and open communicators that do unto others, are lifelong learners and support others with words and deeds.”

Teamwork, truth and honesty are vital. Try to game the system or sow discord, and Jordan Essentials calls it out, even if the culprit has huge sales numbers. But in the competitive direct sales market, they just don’t have big turnover in the home office or in the field.

What should marketing look like for direct selling today?

Is it a sales support role?

Is it the driving force? Is it online?

Is it just pretty pictures and catchy words?

Is it packaging and products?

And is it the same for every company?

Unlocking Potential

When pandemic pushed and pushed hard, Bogart—who is a take action type of leader—pushed back with reciprocating force and determination. Challenges morphed into opportunities to swerve left and bob right. Fueled by high trust and excellent communication among the HQ staff and the sales field, Jordan Essentials not only survived but accelerated sales unlike any other time in company history.

“It is interesting, isn’t it, that the pandemic kind of unlocked our potential? We [direct selling companies] all braced ourselves, wondering if we were all going to go down. Many of us went up, but not all of my party plan brothers and sisters in the industry did,” says Bogart.

To do so, they took bold moves that meant unmooring a decades old business model in favor of a brand-new hybrid way of doing business. This involved a complete software conversion, which included intense preparation and revamping their old system, as well as redesigning nearly every component of their business model from on-boarding and training to back-office use, shipping and eventually redefining consultants and consumers.

The complexity of this change, which went live last fall, threads through the entire organization and lands Jordan Essentials’ business model somewhere between party plan and direct to market/consumer.

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Redefining Consultants and Consumers

2020’s growth was crazy to keep up with and so much fun, Bogart says. That momentum signaled an opportunity to redefine who really was a Jordan Essentials consultant. It was a difficult decision that Bogart did not enter into lightly.

From its inception, Jordan Essentials functioned with a no-minimum, 25 percent consultant discount, but that muddied the “consultant” definition.

Some ordered only twice a year, while others built businesses. Clearly differentiating consumers and consultants and setting minimum qualifications to remain active would produce a more sustainable future. Their new plan went live in March 2021.

“Now that the consumer purchases and uses the hostess program and partnership for free product— which is what they really want—the consultant’s paychecks have gone up. With the stronger leadership base, consultants are making more money. When they recruit somebody, that person is more solid when they are starting a business and understand what it takes,” says Bogart.

Recruitment conversations feel different today too.

“That’s something that’s held us back in the past, and now it is one of my strategies for the future to have that strong conversation for sponsoring along with these great products that we all love,” she states.

A new high-touch, decentralized on-boarding and training methodology is underway. This gives field leaders more autonomy to train downlines using real-life success stories and blunders, plus advice on overcoming supported by traditional back-office tools and reference materials.

“People don’t want to come in and be trained by a robot. They want to know and be known right now. It’s a weird world, and people want to feel a connection to a human. So, I feel like that’s what’s going to give us an advantage,” Bogart says.

At the same time, Jordan Essentials is coaxing seasoned consultants to pull back slightly on the high-touch, cumbersome party plan tradition of repackaging and delivering whole party orders.

“That’s definitely a hurdle we’ve had to overcome.

We still love that high-touch customer service piece, but we’re trying to merge that with a really effective [direct to consumer] software system,” says Bogart.

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Clearing Pandemic Hurdles

With the pandemic came some very specific hurdles, but unlike many companies, supply chain disruptions didn’t slow Jordan Essentials down. Nearly selfsufficient, they manufacture products and own a label printing press. Accurate forecasting allowed them to stock up in their own warehouses to ensure supplies.

“Some things were out of our control like cosmetic production shut down on the East Coast. But we had other things to sell, so we adapted and focused on other things,” explains Bogart.

For those slight hiccups, they taught the field, “This is your same great product, but your bottle may be purple. It’s going to be okay,” she describes.

More difficult—at least emotionally—was the shortage of large-scale, live events. Their field uses these conventions as mom getaways and bonding time, and they are vital to their culture. Virtual was the only option in 2020, and Bogart says herculean efforts of staff produced a terrific event that attracted record numbers. Still, she felt sad and missed the collegial atmosphere of gathering in person.

“It really increased the depth and breadth and love for my company and my people and what I do and how I do it,” says Bogart.

They’ve cautiously and safely drawn people together in 2021, hosted a record number of attendees at a recent stateside incentive trip and created a hybrid national convention in July that got great reviews. With about ¼ of convention attendees seated and ¾ at-home, they utilized Facebook live to interact with at home attendees. At the same time, speakers took the live stage, and continued the tradition of recording product launch announcements to provide long-term access to the field.

The way forward for Jordan Essentials looks a great deal like the company’s journey over the last 18 months.

Bogart expects to slough off some of the old methods that they’ve always done, find new patterns, and pivot.

“I see it so clearly in front of us now. We want to become that solution for people looking for a party plan company that is innovative and isn’t going to go right back, solely into homes. We will continue to invest in technology and advance. We’re not going to kick back. I’m not a kick back kind of person,” she states. DSN

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ZYIA ACTIVE /

Zyia Active: Built to Uplift and Inspire Building a community of women where uplifting each other was as important as any product they share.

T

BY JENNY VETTER

HE SPARK OF ZYIA ACTIVE was born on a moonlit evening along a snow‑dusted hike in the Utah mountains as Erin Bradley climbed

alongside other women. From the back of the group, she watched as the women encouraged each other, supporting each other through missteps

and stumbles, as they climbed closer and closer to the summit. The intensity of the moment stopped her in her tracks.

“This is what we need,” she thought. “This is what

FOUNDED:

2017 HEADQUARTERS:

Draper, UT TOP EXECUTIVES:

Erin Bradley, Co-Founder Jeremiah Bradley, Co-Founder PRODUCTS:

Fitness Apparel

I crave more in my life: women supporting women, uplifting each other and empowering one another.” 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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A Culture Company

Zyia Active Co-founders Erin and Jeremiah Bradley were no strangers to the direct sales industry, as Jeremiah had held leadership positions in multi-level marketing companies throughout his career. And while he’d encouraged Erin to dream up a new direct sales venture with him, she simply couldn’t see herself “selling” anything. What she could see and feel, especially after that auspicious moonlight hike, was the desire to build something—specifically, a community of women where uplifting each other was as important as any product they might share. Choosing activewear as the focus for the company was a natural fit, as Erin’s passion for staying active and engaged in outdoor adventures is simply part of who she is. “[After that hike] I really couldn’t get that out of my mind,” she explains. “I kept thinking, how can we start some type of community where we promote just that— where we promote uplifting. And so, we just started doing the ‘what ifs’—like what if we created an activewear company in the direct sales format, and take so many of those emotions and feelings that I felt on that moonlit hike and create a company that encompasses all of that.”

So Zyia Active was born, the name derived from an Arabic word for “light” or “glow.”

The company was founded in 2017 around four pillars or priorities that continue to inspire the Bradleys and their team today: community, activity, uplift and light. To the Zyia team and field, the pillars aren’t just corporate values; they’re guiding forces behind the way they’ve intentionally built the community and culture of the company.

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“We’re constantly, on a daily basis, talking about and making sure that those pillars are engrained in every decision and that our Reps understand that they’re what we’re all about,” Erin explains. “They all know that those are the four pillars that we stand by.”

Jeremiah considers Zyia to be more of a culture company than even an activewear and lifestyle brand.

“We have this community where people are constantly uplifting each other,” he says. “Because we put so much emphasis on uplifting and encouraging people and not being negative, what we’ve heard so many times is that if there is a ‘Negative Nellie’ or someone who likes to complain, one of two things typically happens. That person either changes their attitudes or they leave because they just feel uncomfortable. If you’re not in that mind frame, you’re going to feel out of place.”

This kind of intentional, collaborative “vibe” is noticeable even in the Zyia corporate workspace, explains Holly Reed, Vice President, Marketing.

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Be CustomerCentric Recognized. a customer-centric future for the industry. Qualifying companies utilize business models that boast high ER-CE N OM T

customer-to-distributor ratios and prioritize customer sales.

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

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— H O L LY R E E D / V i c e P r e s i d e n t o f M a r k e t i n g

celebrates companies that are leading the way toward

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We hear again and again the stories from Reps who ‘came for the leggings, but stayed for the community.

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“Instead of investing in a glamorous office space with marble floors and a fountain out front, we work in a functional and flexible space with only a few private offices,” Holly shares.

“This open concept environment leads to a lot of collaborating, brainstorming, and ‘pitching in’ between departments. That feeling that the people around you have your back filters into the field as well. We hear again and again the stories from Reps who ‘came for the leggings, but stayed for the community,’ and it’s very gratifying.”

Simple Social Selling

The Zyia Active collection features activewear for women, men and children, in a range of inclusive sizes. Shoppers can place orders online or through a Zyia Rep, once they browse the expansive selection of apparel options for gym, yoga, golf and running, as well as casual and office wear. A new product is released every Wednesday on social media, so the catalog is constantly expanding, making it easy for Reps to instantly share new releases with their customers. With over 130,000 followers on Instagram alone, every new release is guaranteed a wide audience.

■ Distributor—someone who DOES have a distributor agreement in place R

D E C O G N I Z E

■ Customer—someone who DOES NOT have a distributor agreement in place ■ Active is defined as each customer and distributor must have made a product purchase during the last six months. Active customer and distributor counts are limited to those in the U.S. and Canada.

Companies must have been 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.

Submit Your CCR Program Application Today

DSN DIRECT SELLING NEWS

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

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“Every Wednesday, once we post our new releases, it’s seen by millions because we have over 40,000 active Reps who immediately share those same posts,” Jeremiah shares. “So, our Reps have a constant flow of customers purchasing their product. Nearly 75 percent of our revenue comes from actual customers, which means only 25 percent of our total revenue is coming from Reps. The amount of commissions is being paid out to a smaller pool. You’re going to earn a lot more commission as a Rep for Zyia than you would at another company where, 60 percent to 70 percent of your revenue comes from Reps.”

Social media makes sharing Zyia easy, but the team feels that simply wearing the clothes while living an active lifestyle is the quickest way Reps can introduce the line to the people around them.

“We make a great product that most people need, and it sells itself,” states Holly. “People naturally talk about their clothing, especially in the context of activity. If you don’t feel like a natural sales person, but you love working out Zyia’s a great opportunity to explore. Other companies make great products too, but nothing’s easier to talk about than your cute, high-quality leggings.”

Prospective Zyia Reps can enroll with the company for $295 and receive a kit that includes five pieces of clothing, a $100 gift card to select additional apparel and business tools to get started. The kit contents vary week-to-week but generally create a complete outfit.

Once enrolled, new Zyia Reps are walked through a training process designed to engage rather than overwhelm.

“When you click ‘join’ on any direct sales website, there’s a tsunami of information just around the corner, poised to drown you,” Holly explains. “That’s why we offer training in many different formats and contexts. We roll out that new information one day at a time for the first five days in a series of emails. The goal is to guide each Rep through short, actionable steps to help them be successful. We host weekly live trainings as well as a support portal with articles, videos, and community features to let Reps help themselves. Additionally, we’re developing a new app that will feature a wide array of bite-size trainings our Reps can complete in the short pockets of time we all have tucked around our days.”

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On to the Next Summit

Since that initial climb, Zyia hasn’t stopped climbing, tackling one summit after another.

The moonlit hike that sparked Erin’s inspiration to launch Zyia had a clear summit, one that required the women ascending to support and uplift each other with every step. Since that initial climb, Zyia hasn’t stopped climbing, tackling one summit after another.

Like many in the direct sales industry, Zyia faced logistics and shipping issues throughout 2020. But the unexpected demand for activewear from consumers who found themselves suddenly homebound and dressed down created inventory challenges the company wasn’t prepared for. “[When COVID hit] we had tempered our expectations and decided to order less product, thinking we’d drop in revenue,” Jeremiah shares. “But in April, instead of dropping, we actually more than doubled in revenue.

We grew by over 125 percent. Our inventory levels were in a precarious situation where we normally wanted to have three to four months of inventory. And we sold through half of that in one month, and then May exploded even more, so by mid-May, we were pretty much out of all product.”

The Zyia team was again guided by their four pillars and remained transparent with their field community throughout the challenges. Shipments were flown in at higher costs rather than shipped by boat, Reps were flexible and communicated with their customers and the team weathered those wild initial months. In the end, both Reps and customers felt taken care of, and Zyia earned trust that made everything worthwhile.

The next summit on the horizon is the launch of the company’s operations in Australia, expected late this year or early 2022. Australia will join Zyia’s operations in the U.S. and Canada, with more international expansion planned for the future. In the short term, the Bradleys are excited about new product lines and innovations in activewear; but most importantly, they’re focused on maintaining the inspiring culture that’s inspired every next step of the journey.

“With culture being as important as it is to us, that’s probably our number one focus,” Jeremiah says. “What we really hope is that we have the same emphasis on our four pillars, that the same culture is there, and that anyone could walk down the hall, whether it’s our corporate office or an event with our Reps, and that same culture will be present.” DSN

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

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

SERVICES OFFERED INCLUDE: • Buy side and sell side M&A advisory • Equity and debt financing • Proprietary transactions • Joint venture and partnership opportunities • Institutional advisory

The firm has quickly established itself as a significant resource for direct selling industry participants and is actively engaged in the marketing of potential transactions in excess of $700 million.

info@directsellingcapital.com

Stuart Johnson, Partner | spj@directsellingcapital.com Ryan Bright, Partner | jrb@directsellingcapital.com

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Being Coachable

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BY TONY JE ARY - THE RESULTS GU Y

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N A SCALE OF 1 TO 10, where would you rate yourself on how coachable you are?

Answering these two questions may help you understand more accurately where you are on that scale.

1. HOW MUCH HAVE you invested in yourself in the last year to be better?

2. HOW MANY HOURS have you intentionally invested in yourself in the last twelve.

Take a look at your phone right now and count how many audiobooks you have in your library. How many books are on your Kindle or other device? How many podcasts have you marked? How many learning notes do you have from past events? This should tell you something.

Coaching is a force multiplier. It’s a powerful tool used by too few. Why are so many people not being coached? Perhaps it’s because they’re not as coachable as they could be or think they are. And let’s face it—they don’t proactively, regularly, and strategically seek advice. It’s a blind spot for many.

If you’re ready for it, coaching is a powerful secret weapon.

When new clients come to our RESULTS Center, I take note of how they learn. Do they ask questions or just listen? Do they take notes? Do they engage or just absorb? Are they committed to taking action on the strategic plan we’re developing?

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Ten Qualities of Being Coachable Over the more than three decades I’ve been coaching, I’ve observed the qualities of the people who seem to respond best to receiving learning— the ones who internalize what they’ve learned and immediately begin to put it to work in their lives so they can be better.

As we share these qualities with you, take a careful look at yourself and see how they apply to you. At the end of this article, we’ve included an instrument to rate yourself to know where you stand on these qualities.

1 / STRONG SELF-ESTEEM / People with a strong

self-esteem don’t have to defend their position.

They exhibit a measure of humility because they’re willing to ask themselves, Am I wrong? Can I improve? What am I not seeing? They have the confidence to ask Can I invest a little of my time, energy, and money to be better? Those who are not strong often seem to feel like they always need to be right. They perhaps have not built up enough of an emotional bank account to say I could be wrong.

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/ OPEN / How often do you seek insights and perspectives from a mentor, a trusted colleague, your banker, your field, your board, your team, your financial planner, and maybe even your kids or other people who are part of your life?

3 / CURIOUS / Dr. Denis Waitley and I were invited to join Zig Ziglar in making his last video before he passed. We were interviewed in Zig’s studio

by Gerhard Gerschwandtner, founder of Selling Power magazine. At one point during the interview, I reversed the question to Gerhard: “What do you think is the keyword that is most valuable in sales and seeking success?” He surprised me with his response: “Curiosity.” He suggested that curiosity drives a person to ask questions, including the why’s, and eventually get into some really great kernels of information. At that moment, I realized how powerful having a strong sense of curiosity is, and that revelation impacted my life in a huge way.

A person who is very curious is very coachable.

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4 / HUNGRY TO DISCOVER BEST PRACTICES /

When you’re hungry, you’re eager to learn from everyone you meet, and you wake up every day asking, What can I learn today? You will be open to the best practices your coach shares with you and model part or all of them to grow your effectiveness.

5 / WILLING TO BE WRONG / This is a cousin to

having a strong self-esteem. Many people aren’t willing to accept when they’re wrong, whether they’re seeing something the wrong way or they’re not as efficient or as effective as they could be.

6 / UNDERSTANDING YOU HAVE BLIND SPOTS /

This is in the same family as being willing to be wrong. What are you not seeing that a coach could help you uncover? For example, maybe you’re making hiring choices that aren’t as good as they could be because you don’t have the ideal system for hiring the right people.

7 / WILLING TO INVEST IN YOURSELF AND YOUR

TEAM / Do you put money toward books and videos that will make you and your team smarter? And are you open to investing in a coach—the right coach— to make yourself and your team better?

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When you’re hungry, you’re eager to learn from everyone you meet, and you wake up every day asking, What can I learn today?

Rate yourself on a scale of 1 to 10 in the assessment below.

Let’s add up your score to see how coachable you are.

DESCRIPTION

1

Strong self‑esteem

No need to defend your position.

Humbly ask yourself often, What am I not seeing?

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Open

Seek insights and perspectives from others.

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Curious

Have a strong sense of curiosity that drives you to ask questions, including the why’s.

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Open to discovering best practices

Eager to learn from everyone you meet; open to best practices your coach shares with you.

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Willing to be wrong

Accept when you’re wrong.

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Understanding you have blind spots

Eager for your mentor, advisors, or coach to uncover the things you can’t see.

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Willing to invest in yourself and your team

Willing to put money toward things that will make you and your team smarter and more effective—including books, videos, and the right coach.

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Sold out on learning

Eager lifetime learner.

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Self-aware

Aware of your strengths, weaknesses, values, key motivations, habits, etc.

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Willing to take ownership

Accountable to own up to your mistakes without making excuses

8 / SOLD OUT ON LEARNING / Have

you determined that you will be a lifetime learner and glean every bit of information you can each and every day? Having the consistent mindset of a student makes you very coachable.

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/ SELF-AWARE / Are you fully aware of your strengths and weaknesses? How about the values that guide your life? When is the last time you used a discovery tool like 360, SWOT analysis to assess how you relate to others and what your key motivations, habits, challenges, and weaknesses are? Have you sought mentors who will challenge you to improve?

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/ WILLING TO TAKE OWNERSHIP / A coachable person is willing to own up to the mistakes he/she has made and learn from them. Being accountable in this way is a choice you make and defines you as a person who doesn’t make excuses, manages expectations, and controls your thoughts and emotions.

RATING (1-10)

TRAIT

How did you do? If you’re not as coachable as you thought you were or want to be, then work on those areas you’re not strong in. Decide today to become more coachable so you can take full advantage of this powerful force multiplier that can change your life and bring you extraordinary success and results. DSN

TONY JEARY—THE RESULTS GUY™—IS A PROLIFIC AUTHOR AND A STRATEGIST. HIS ORGANIZATION, TJI, FACILITATES POWERFUL MEETINGS, KEYNOTE EVENTS AND COACHES HIGH PERFORMERS TO ACCELERATE THEIR RESULTS. w w w. d i r e c t s e l l i n g n e w s . c o m 8 5

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Here We Go Again— Managing Events in Uncertain & Changing Times Flexibility, creativity and contingency planning help ensure the human connection.

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T SEEMS LIKE the only thing we know for certain is that these are uncertain times.

The challenges we all face in organizing events, conferences, symposiums, and conventions during these chaotic times feel like a rollercoaster we’d rather not ride. Venue restrictions, city ordinances, travel policies and many other factors are reemerging as Delta continues to push COVID cases higher than ever in many areas of the U.S. So where are we now—hybrid? In person? All virtual? Truthfully, it’s all three with the ability to “flex” any of those three more or less in a particular direction, along with location—in order to maintain the human connection that all of our brands depend on for differentiation, clarity and engagement.

Here are a few key considerations when planning your events over the next few months and how several organizations have worked to navigate the complexities and challenges facing all of us today.

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Color Street National Conference 2021 – Dance Party

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Color Street “Pave the Way” General Sessions incorporate both in-person and virtual participants.

Hybrid Events Provide Flexibility

You might think that creating a hybrid event, by definition, means compromising. Surely you’ll have to sacrifice a few things to make an in-person event work virtually as well, right?

Wrong. In fact, if you hope to make a true human connection, you can’t compromise. But don’t worry, it’s not as demanding as it sounds. The biggest requirement is a change of mindset.

Rather than trying to force the in-person portion to perfectly mirror the virtual portion, think of the two as distinct experiences. They’re part of the same event, but they’re different situations.

Therefore, they need to be treated as such. Why? Because the best ways to engage an in-person

audience are not necessarily the best ways to engage a virtual audience and vice versa.

There’s a marketing principle that goes like this: when you try to appeal to everyone, you wind up appealing to no one. The same holds true when creating a hybrid event. If you try to only use methods that simultaneously engage both audiences, you’ll wind up engaging neither audience.

When you treat the in-person and the virtual as two different experiences, you can leverage the strengths of each platform to create an event that truly engages everyone. That is the guiding principle to creating an excellent hybrid event: create an excellent in-person event and an excellent virtual event. w w w. d i r e c t s e l l i n g n e w s . c o m 87

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Color Street Founder & CEO Fa Park speaks to virtual and live attendees

Color Street 2021 National Convention—A Hybrid Story

The Orange County Convention Center in Orlando, Florida, was the setting for Color Street’s return to large live events. A truly hybrid solution brought together 4,000 in person and 28,000 virtual Stylists from across the U.S. Navigating the landscape of pandemic dynamics demanded a strategic and flexible approach to planning.

The expansive footprint and shared spaces of the Convention Center posed a challenge. The challenge was how to bring the Color Street brand front and center while assisting the Stylists with easy navigation. From the super-sized exterior banners greeting attendees to a branded and quick-moving Registration process, Stylists’ were wowed. Fun and unique photo ops added to the social media buzz before the first session had even begun.

The “Color Street Pave the Way” General Sessions set was a fun, geometric inspired design

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that incorporated a blended seating approach which allowed all attendees a great seat. The concept used different elements to bring it to life—an enormous stage LED screen, gobos, LED lighting for an electric effect, hard geometric shapes that absorbed bright color light and four projection screens to allow maximum viewing pleasure. From an exciting launch of sales in a new country to the introduction of the new catalog via a New York styled fashion show, to massive recognition marches, the content and execution was flawless.

To achieve a true hybrid experience for virtual Stylists, a partner platform Pathable was utilized.

This comprehensive solution delivered easy to access sessions, chat features and social interactions. A dynamic emcee brought speaker, executive and Stylist interviews to the virtual audience along with tours and back-stage sneak peeks that created a sense of community for all. Content was available on demand for those who could not watch sessions live.

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Color Street National Conference 2021 – Gala Event

In 11 ½ weeks, the overwhelmingly collaborative effort with Color Street resulted in an incredible back to business, back to networking, back to inspiring event.

As one team member said…. “We all pulled off something remarkable!” The passion for an incredible Stylist experience shined through leaving attendees ready for the next event!

Venue Flexibility and Good Partners

In late spring and early summer, as vaccines become readily available and case numbers were going down across large swaths of the nation, a full return to normalcy seemed not only possible but was happening. Then Delta surged.

Now, each person’s calculus of what they’re comfortable with has changed. And beyond people’s personal risk assessment, city and state-directed mandates can force you to make drastic changes. For many organizations, they already have.

As winter looms, as people increasingly move back indoors, as talk of vaccine boosters becomes clearer, as dynamics continue to shift—and shift fast—the certainty in planning events months out is not much better than last year.

You have a venue booked and the deposit paid for. You have 3,000 attendees coming in. And three weeks before the event, the city imposes restrictions. Or the city doesn’t, but cases are surging, and it’s all over the news. Do you have a plan B? And is plan B fully operational, ready to put into action at a moment’s notice?

Case in point: A medical device company recently planned an event for 500 people in Dallas.

Cases surged, and while Dallas didn’t impose restrictions, the company was uncomfortable with bringing in that many people to a hot spot. But here’s the rub: because the city of Dallas did not impose restrictions, the company was obligated to the contract with the venue.

It’s impossible to get that investment back, but how can we get the most ROI out of it? Having a plan B ready to go allowed the company to shift quickly to maximize the situation. The stage was built in the venue as though it would be a live event but then streamed it virtually to attendees across the country.

Participants who had to cancel their in-person plans on short notice were able to remain connected and interact with the company’s team and messages, almost as if they were in person.

Having a Plan A and Plan B is almost a requirement with the current environment. And working with an event planning partner who is flexible, organized and creative in generating solutions for your terms and situation is critical.

Staying Connected, No Matter What

As 2021 nears an end and we look forward to another new year, uncertainty will likely persist for some time, challenging event organizers and planners responsible for bringing people together. One thing is for sure, the pandemic has allowed all of us to explore different and creative ways of maintaining the human connection—with our associates, customers, sales teams and whomever we may be trying to reach. We can be confident there are multiple ways of executing our events, regardless of the current situation, location or circumstances. It’s just a matter of developing more than one option and remaining flexible. DSN

LESLIE BLYE, National Sales Director at L!VE, received her CMP in 2016. In addition to leading L!VE’s Sales Team she plays a central role in the development of new business with a focus on managing client and industry relationships.

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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

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Education Options for All

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T’S HARD TO BELIEVE that school has been in session for more than a month. DSA, too, has been in back-to-school mode as we continue our webinar series that has reached 5,000+ executives during the past year.

September’s webinars continued the pace with a rich offering of fall 2021 educational experiences.

Managing supply chain challenges was also covered by Walter Noot, Chief Operating Officer, USANA Health Sciences, Inc., and Jess Dankert, Vice President of Supply Chain for the Retail Industry Leaders Association. These leaders shared insights into the measures that can be taken to minimize disruption to customers.

DSA Supplier Partner with Sovos explored how direct selling companies can avoid the pitfalls of emerging tax policies and plan for upcoming changes in the Treasury Green Book.

These webinars and more are available to DSA members on DSA On-the-Go Learning on DSA.org.

Many DSA members have expressed their comfort in meeting in person and engage in a channel reunion. But as DSA works toward these in-person events, we do so with prudence and caution while heeding the recommendations of local, regional, state, and federal health officials.

DSA remains committed to offering members opportunities to participate in a way that meets them where they are. This is why the scheduled in-person events offer a hybrid format that allows individuals to engage—either virtually or in-person—in a manner of their own choosing.

As we look forward, the Direct Selling Compliance Certification Program is alongside

MELISSA K. BRUNTON Senior Vice President, Education & Meeting Services, DSA

#COMMUNITY #STRONGERTOGETHER

the DSA Legal & Regulatory Seminar on October 13 through 15 in Washington, D.C. Most exciting is the channel’s muchanticipated reunion in New Orleans for DSA ENGAGE: Moving Forward Together to Better on October 31 through November 2.

DSA ENGAGE Chairman Kevin Guest, CEO & Chairman of the Board, USANA Health Sciences, Inc., created the Chairman’s Challenge to urge DSA member companies to register executives for the Exclusive Executive Sessions scheduled for the afternoon of October 31.

If you have not done so already, we invite you to meet the Chairman’s Challenge. Register your respective team members to participate in the CEO-to-CEO, Meetings & Incentives, Communications, Sales & Marketing, and Technology Executive Sessions.

DSA ENGAGE will also offer opportunities for attendees to reunite with friends, colleagues, and peers. The Halloween Spectacular Opening Reception and Channel Reunion and the Laissez Les Bon Temps Rouler Social will offer the networking experience for which we’ve all yearned.

The DSA Awards Gala Jazz Supper Club on November 2 will celebrate the channel’s achievements during the past year, honoring the top entries received from a record number of submissions. As in 2020, voting will be open to U.S.-based executives from all DSA Direct Selling and Supplier Member companies.

Celebrate what you and your colleagues have empowered the channel to achieve as we plan what’s next for direct selling as we Move Forward Together to Better! DSN w w w. d i r e c t s e l l i n g n e w s . c o m 9 1

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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.

INTERNATIONAL PAYOUT SYSTEMS INC. 540 NE 4th St. Fort Lauderdale, FL 33301 866-218-4668 i-payout.com

More payment options in 150 countries via the most flexible and customizable software solution. Unbeatable pricing.

PAYQUICKER 400 Linden Oaks, Suite 320 Rochester, NY 14625 844-258-3006 www.payquicker.com Instantly make secure and compliant global payouts to your distributors in local currency with PayQuicker’s fully customizable, client-branded solution. We offer secured bank accounts with prepaid debit cards, virtual cards and more—all through a single point of integration.

1160 N. Town Center Drive, Ste. 100 Las Vegas, NV 89144 702-757-9600 www.metricsglobal.com

Landing a more sophisticated brand of talent takes a more sophisticated recruiting partner.

Bringing 25 years of Direct Sales executivelevel experience from around the world and with a Team speaking 5 languages we know what it looks like to have success in a diverse and international environment. Our goal is to become an extension of your brand.

SCP offers the most holistic consulting services specific to direct selling companies today. We’ve worked with more than 70 companies over the last three years alone, and served more than 250 years collectively in the industry.

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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.

Keller, TX 817-697-4321 www.cpkrell.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.

S ELLING NE WS

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

METRICS GLOBAL, INC

STRATEGIC CHOICE PARTNERS

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COMPLETE MERCHANT SOLUTIONS

CP & KRELL GROUP

LACORE PAYMENT TECHNOLOGIES

900 Wilmeth Road, McKinney Texas 75069 Info@lacoretechnologies.com www.lacorepayments.com/

C R E D I T C A R D/ PAY M E N T P R O C E S S I N G

1329 South 800 East Orem, Utah 84097 801-515-0977 www.squire.com

C O M M I S S I O N PAY M E N T S E R V I C E S

SQUIRE

C O N S U LTA N T S /M A N A G E M E N T

C O M M I S S I O N PAY M E N T S E R V I C E S

A C C O U N T I N G S O F T WA R E /S E R V I C E S

SUPPLIER DIRECTORY

2201 Long Prairie Road, Ste. 107-316 Flower Mound, TX 75022 407-891-9265 https://strategicchoicepartners.com/

We are the industry’s leading payments partner, long-established advocate, and problem-solver. Our unified commerce & payments platform will connect you to a global marketplace, enable your international expansion strategy, and fuel your exponential growth plans. Let us show you how.

Contact Us: info@metricsglobal.com

NEXIO 727 N 1550 E, 3rd Floor Orem, UT 84097 1-877-551-5504 www.nexiohub.com Nexio manages the chaos of payments offering: • Faster roll out for distributors or partners • Simplifies payment processing for corporations Nexio does this by being integrated with the majority of back-office software solutions in the Direct Sales Industry.

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

GLOBAL ACCESS 2889 Ashton Blvd, Ste. 350 Salt Lake City, UT 84070 877-811-8108 www.globalaccess.com International expansion expertise and technology and logistics solutions that grow clients’ businesses and brands around the world.

EVENT PRODUCTION

A2B FULFILLMENT

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

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!

AMWARE FULFILLMENT

LACORE LOGISTICS

MULTI IMAGE GROUP

4505 Newpoint Place Lawrenceville, GA 30043 866-888-2999 Sales@AmwareLogistics.com www.AmwareLogistics.com

900 Wilmeth Road, McKinney Texas 75069 214-817-4802 www.lacorelogistics.com

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

Handle fulfillment for 14 direct sellers.

DSA member with 15 fulfillment centers, nationwide, for 1–2 day delivery to 95% of the US. Offer comprehensive B2C fulfillment services, including complex kitting, plus discounted parcel shipping based on our large volume of freight.

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.

Established in 1979, Multi Image Group (MIG) is a women-owned, family-run creative event production company fueled by innovators, strategists, and technologists who craft custom virtual, hybrid, and in-person live experiences for some of the world’s biggest brands.

CANADA CARTAGE LOGISTICS SOLUTIONS

VERST E COMMERCE FULFILLMENT

HANNA SHEA

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.

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

1615 Clark Blvd.

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

300 Shorland Dr., Walton, KY 41094 800-978-9307 www.verstlogistics.com

E X E C U T I V E R E C R U I TM E N T

D I S T R I B U T I O N / F U L F I L L M E N T/ LO G I S T I C S

TO BE INCLUDED IN THE SUPPLIER DIRECTORY, EMAIL ADVERTISING@DIREC TSELLINGNEWS.COM

1835 W Chandler Blvd 103, Chandler, AZ 85224 844-344-7177 www.hannashea.com Since 2007, Hanna Shea Executive Search has been the go-to search firm in support of the direct selling industry. Hanna Shea finds top talent for companies in need of building or improving an executive leadership team for organizational success.

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ROYAL CARIBBEAN INTERNATIONAL

1080 Caribbean Way Miami, FL 33132 Royal Caribbean International’s Corporate Sales Team 800-345-7225 (SELECT 2, THEN 1) www.royalcaribbeanincentives.com

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

ICONIC SHIPS. EPIC ADVENTURES. ULTIMATE EVENTS. Royal Caribbean® transforms events into the ultimate productivity paradise. Impress your attendees with epic venues, vibrant restaurants, onboard thrills and beautiful destinations.

PROGRESSIVE LABORATORIES 3131 Story Road W Irving, TX 75038 972-518-9660 www.progressivelabs.com 40+ years of quality manufacturing of nutritional formulas specializing in capsules and powders. FDA registered and 3rd party UL certified facility.

9 4 D I R E C T

S ELLING NE WS

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2435 Goodwin Lane New Braunfels, TX 78132 sales@dsa.harlandclarke.com www.vericast.com VERICAST FUELS COMMERCE We create meaningful connections between your business and the people that you serve how, when and where it matters. By pushing the boundaries of data and insights, we spark discovery and inspire action to create profitable results.

NOW TECH 5800 Democracy Drive, Suite 100 Plano, TX 75024 310-428-9936 www.now-tech.com The most comprehensive and powerful business management solution for direct sellers. We put more than 35 years of industry experience into creating strategies and tools to consistently grow your business. Contact us for a demo today.

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.

MOBILE APPS & COMMERCE

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

VERICAST

S O F T WA R E / T E C H N O LO GY S O LU T I O N S

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

M A R K E T I N G/ B R A N D I N G

E.A. DION, INC.

MOBILE APPS & COMMERCE

INCENTIVES/RECOGNITION

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

BYDESIGN TECHNOLOGIES 9503 Princess Palm Avenue Tampa, FL 33619 813-253-2235 www.bydesign.com Award winning SaaS solutions including Geneology Management & Commissions, Inventory, Replicated Websites, Premier Rep Tools, Branded Mobile App, Virtual Parties, E-vites, Hostess Rewards, Bookings, Social Sharing, Promotions, & Shopping.

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.

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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.

INTERNATIONAL DIRECT SELLING TECHNOLOGY CORP. 1208 E. Kennedy Blvd., Ste. 222 Tampa, FL 33602 813-277-0625 www.idstc.com

Global Operations Management Software.

Advanced Comp Plan Programming. Sales Force Backoffice & Automation. Web Site Design & Replication.

EXIGO

JENKON

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

915 Broadway Street, Ste. 400 Vancouver, WA 98660 360-256-4400 www.jenkon.com

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.

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.

INFOTRAX SYSTEMS

MW2 DIRECT

1875 S. State Street, Ste. 3000 Orem, UT 84097 801-431-4900 www.infotraxsys.com

2033 Gateway Place, 5th Floor San Jose, CA 95110 408-573-6310 www.mw2consulting.com/direct

Software & SaaS solutions for startup, emerging, and global direct selling companies. See our ad on the back cover.

Combine the Magento Platform with powerful social and direct selling features available in the MW2 Direct platform.

Solving Digital Transformation for direct selling with personalization, party management, influencer marketing, commission, analytics.

S O F T WA R E / T E C H N O LO GY S O LU T I O N S

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

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

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

XIRECT SOFTWARE SOLUTIONS

686 E 110 S Unit 104 American Fork, UT 84003 385-448-1800 www.xirect.com Scalable software from startup to enterprise. Your delivery expert in Commissions Calc / Consulting, Replicating Websites, E-Commerce, Reporting, Promotions, Localization, Multi-Currency, and more- The Perfect Cloud-based Direct Selling Software Partner!

TA X S E R V I C E S

DIRECTECH LABS

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

TO BE INCLUDED IN THE SUPPLIER DIRECTORY, EMAIL ADVERTISING@DIREC TSELLINGNEWS.COM

SOVOS 200 Ballardvale St. Wilmington, MA 01887 1-866-890-3970 www.sovos.com Sovos was built to solve the complexities of the digital transformation of tax with complete, connected offerings for global compliance. Our SaaS products integrate with a variety of business applications and government compliance processes.

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Get ready to eliminate barriers and generate buzz—find out how NOW Social can turn your field into social selling superstars!

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Social Selling Presents a Huge Growth Opportunity for Direct Sellers —but managing social media channels can be overwhelming. With NOW Social beginners and social-media experts alike will fall in love with this powerful, yet simple system.

This amazing new feature lets your distributors manage all their social media channels, calendars and replies from one central location.

WHAT WILL IT ENABLE YOUR COMPANY TO DO? • Maximize every social campaign

• Analyze trends on top-performing posts, brand averages, and outliers • Leverage insights on content across the entire organization • Make better, more strategic publishing decisions

• Minimize risk with compliant and on-brand messaging

AND HOW WILL IT ENABLE YOUR MICRO-INFLUENCERS? • Become instant thought leaders with ready-made content

• Share confidently knowing they are using high-performing content

• Simplify engagement by responding to all platforms from a single dashboard • Schedule posts via handy calendaring tools

• Access all brand assets in one well-organized location

Schedule a demo to experience the power of NOW Tech

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DATA IS FUEL.

With our FlexCloud software and expert insight, your comp plan data can go from a necessary headache to an empowering

resource for efficiently scaling up. Then, it’s full steam ahead.

801.431.4900 | infotraxsys.com

Contact us today to get your commissions engine moving.

Let better data power your company forward with FlexCloud.

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VOLUME 17 ISSUE 10

DIRECT SELLING NEWS

DirectSellingNews.com