November 2021 Direct Selling News

DSN

DIRECT SELLING NEWS

VOLUME 17 / ISSUE 11

NOVEMBER 2021

The Innovation Generation HOW THE YOUNGEST

DIRECT SELLING EXECUTIVES ARE TRANSFORMING THE INDUSTRY

DSU FALL 2021 / 30+ SPEAKERS. 100 s OF INSIGHTS. STARTUP SUPERSTARS / WHAT THEY CAN TEACH US BETTERWARE / MEXICO'S NEW DIRECT SELLING GIANT LIFEVANTAGE / MICRO‑CHANGES, MACRO‑IMPACT

How to be the most knowledgeable executive in the room

DAILY NEWS STORIES

FINANCIAL NEWS AND RESEARCH

EMERGING TRENDS

EXCLUSIVE PODCAST INTERVIEWS

EXECUTIVE ANNOUNCEMENTS

AND MUCH MORE

DirectSellingNews.com is your daily go-to resource for breaking global news—conveniently curated for today’s executives.

DSN has the information and inspiration you need to consistently stay one step ahead!

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C O N T E N T S N O V E M B E R

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F E AT U R E S

Longtime Industry Executives Form Special Purpose Acquisition Company B Y D S N S TA F F

Direct Selling University 2021: Connect and Empower B Y S A R A H PAU L K

Startup Superstars: What They Can Teach Us! B Y C O U R T N E Y R O U S H

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SPOTLIGHTS

Betterware de Mexico:

Mexico’s New Direct Selling Giant

B Y S A R A H PAU L K

LifeVantage:

Micro-Changes, Macro-Impact

B Y S A R A H PAU L K

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DEPARTMENT

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NEW PERSPEC TIVES /

Change: Mindset Matters

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NOVEMBER 2021

TO N Y J E A R Y

I N EV ERY ISSU E 6-7 AD INDEX // 9 FROM THE PUBLISHER // 11 INDUSTRY NEWS // 32 FORWARD THINKING // 91 DSA MESSAGE // 92 SUPPLIER DIRECTORY //

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

FOUNDER AND CEO

Stuart P. Johnson PUBLISHER

Shelley Rojas CONTENT CONTRIBUTORS

John Fleming Patricia White EDITOR

Lisa Robertson editor@directsellingnews.com NE WS EDITOR

Sarah Paulk pr@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

COVER STORY

PRODUCTION M ANAGER

THE INNOVATION GENERATION

Virginia Le COPY EDITOR

Peter Tepp BUSINESS DEVELOPMENT M ANAGER

How the youngest direct selling executives are transforming the industry. B Y S A R A H P A U L K Direct Selling News (ISSN 15546470) is published monthly by Direct Selling Partners, 5800 Democracy Drive, Suite 100, Plano, TX 75024. Periodicals postage paid at Lake Dallas, TX and additional mailing offices.

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2021 Fall Virtual Event

THANK YO U SUPPLIER PARTNERS

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SAVE THE DATE 13th Annual Global Celebration & Direct Selling University Join us Tuesday, April 19-Thursday, April 22 at the Omni Frisco Hotel, 11 Cowboys Way, Frisco, TX

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Next Gen Game Changers MY OLDEST SON IS IN HIS SENIOR YEAR of high school—it’s an exciting time, full of visits to college campuses and many other firsts. It’s thrilling for him, and more than a little scary for his parents.

But, in our lives and our businesses, change is inevitable. And there’s something almost magical about watching the next generation grow up and grow in to new roles and responsibilities.

We celebrate those up and comers in this issue of Direct Selling News. In our cover story, The Innovation Generation, we take a deep dive into how the channel’s youngest executives are bringing a new sensibility and focus to direct selling.

We also have an in-depth feature on three amazing young companies that have found success in under five years—and the lessons each of us can learn from their rapid rise.

Another game-changing evolution coming to the channel is highlighted in our article on the SPAC movement. More privately held direct selling companies are making the decision to go public. You’ll learn all about a newly launched Special Purchase Acquisition Corporation led by some of the channel’s biggest names that’s looking to help one company make that transition.

This month also features an in-depth profile on Betterware de Mexico, a company achieving remarkable growth since going public via a SPAC last year. We also profile LifeVantage and their exciting period of renewal and the big impact it’s having on their business.

Finally, we will take a look back at last month’s Direct Selling University—talk about game changing! This is the first time we have presented two DSUs in a calendar year—and the effort was definitely worth the reward. We heard from over 30 speakers, took a measured look at the state of the channel and offered insight into what the smartest, strongest companies in the channel will be doing now and next.

I can’t thank our speakers and sponsors enough for their time, generosity and candor. We also welcomed over 50 companies as first-time attendees—what an amazing testament to the strength and growth of the channel!

Direct Selling News is having a few gamechanging moments of its own. At DSU we announced several new initiatives designed to further our mission to serve the channel as a global resource for breaking news and industry trends. I’m very excited about our new Membership Program, VIP Community and a THIRD exclusive podcast launching in January.

DSN remains laser focused on giving you the information and inspiration you need to always stay one step ahead.

I’d like to thank each of you for being a vital part of this channel and the DSN family. I hope we can all keep growing forward together for many years to come.

All the best,

S h e l l ey Ro j a s | P u b l i s h e r & C h i e f B r a n d O f f i c e r | s r o j a s @ d i r e c t s e l l i n g n ew s . c o m @directsellingnews

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2021 Fall Virtual Event

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

2022

SAVE THE DATE 13th Annual Global Celebration & Direct Selling University Join us Tuesday, April 19-Thursday, April 22 at the Omni Frisco Hotel, 11 Cowboys Way, Frisco, TX To inquire about Sponsorship opportunities, email: membership@directsellingnews.com

/ INDUSTRY NEWS /

The Month in News Affecting Our Channel 12 / Recent Expansions 14 / News In Brief 20 / Insights 22 / Executive Announcements 24 / Direct Selling Capital Advisors Stock Watch 28 / Digital Momentum Rankings 30 / Customer-Centric Recognized Companies

/ INDUSTRY NEWS /

E X P A N S I O N S

R ECENT E XPAN S I O N S FARMASI LAUNCHES IN MEXICO AND CANADA Farmasi recently announced the expansion of its company operations into Mexico and Canada.

“With the expansion to Mexico and Canada, Farmasi will continue to bring affordable luxury products to more people,” said North America CEO Sinan Tuna. “Our commitment to changing lives through beauty and innovative products continues as Farmasi reaches new Beauty Influencers and customers.”

MONAT LAUNCHED IN AUSTRALIA MONAT Global has announced it will finalize its expansion into Australia.

“It’s no secret the global beauty industry has experienced record growth over the past few years, as self-care has become more important than ever before. Australia is no exception to this growth,” said Jen Usher, Vice President & Managing Direct for MONAT Australia.

C ANADA

GERMANY

H O N G KO N G MEXICO

AU S T R A L I A EXP WORLD HOLDINGS OPENS GERMANY OPERATIONS eXp World Holdings, Inc., the parent company of eXp Realty, announced it is expanding its operations into Germany. This expansion accelerates the company’s footprint in the Europe, Middle East and Africa (EMEA) region.

“Our decision to enter the German market comes on the heels of unprecedented growth at eXp and reflects the momentum we are experiencing in the EMEA region and our ambitions for future growth,” said eXp Global President Michael Valdes, who is leading the company’s worldwide expansion.

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KANNAWAY OPENS IN HONG KONG Medical Marijuana, Inc., announced that its subsidiary Kannaway has expanded its operations into Hong Kong.

“Our first Asian expansion has been a fantastic success in Japan and we now look forward to bringing our highquality cannabidiol (CBD) products to Hong Kong as well,” said Kannaway® CEO Blake Schroeder.

2021 Fall Virtual Event

T H A N K YO U GOLD SPONSORS

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SAVE THE DATE 13th Annual Global Celebration & Direct Selling University Join us Tuesday, April 19-Thursday, April 22 at the Omni Frisco Hotel, 11 Cowboys Way, Frisco, TX To inquire about Sponsorship opportunities, email: membership@directsellingnews.com

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

Stemtech Receives Funding From Sharing Services Global Corporation

S L’OCCITANE en Provence Enters Direct Selling Channel with MyL’Occitane

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o expand its omnichannel brand, L’OCCITANE en Provence unveiled its new social selling platform, MyL’Occitane. This new platform will provide the company’s community with the opportunity to become entrepreneurs who share L’OCCITANE products.

“We are building our team of new L’Occi Consultants by providing beauty enthusiasts around the country, including our talented past retail store employees, the opportunity to join us on this exciting journey” says Yann Tanini, Managing Director (North America) at L’OCCITANE. “With MyL’Occitane, we are leveraging both the hightouch power of passionate beauty entrepreneurs and the connecting power of technology to build sustainable one-on-one relationships with new customers who we are not currently connecting with through our existing channels.”

Customers who are interested in starting their own business with L’OCCITANE can enroll as a “L’Occi Consultant” to receive tools and training, a personal website and access to product samples and ongoing support. DSN

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temtech Corporation, a nutraceutical direct selling company, has received $1.4 million in funding from Sharing Services Global Corporation (SHRG), a development company and service provider in the direct-to-consumer space. SHRG is also the parent company of direct selling company The Happy Co. and a division of direct selling subsidiaries it calls its Hapi Brands.

“Stemtech is proud to receive funding from Sharing Services Global Corporation as a strategic investment,” said Charles Arnold, Chairman and CEO of Stemtech. “As a significant player in the direct selling industry, SHRG understands the potential of Stemtech Corporation, and we believe that this strategic investment will be mutually beneficial, and is validation for our growth strategy going forward.”

SHRG CEO John “JT” Thatch will now join Stemtech’s Board of Directors. DSN

MONAT Launches Luxury Skincare Line

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ONAT Global Corp unveiled MONAT BODY CARE, a new luxury skincare line designed to renew, repair and refine for radiant skin.

“Healthy aging innovation is at the core of who we are as a company,” said Ray Urdaneta, MONAT Co-Founder and CEO. “As we’ve moved beyond haircare and successfully established ourselves as a leader in anti-aging skincare, the natural next step is to bring what we’ve learned about skincare for the face to the rest of the body.”

The MONAT BODY CARE products are naturally based, vegan and animal friendly and have been developed with oversight from the company’s Chief Scientific Officer Alan J. Meyers and support from MONAT’s Scientific Advisory Board comprised of medical professionals and experts in cosmetics, haircare, skincare, science and health. DSN

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Avon Pledges Price Cap Amid Supply Chain Crisis

A Modere Named Fastest Growing Woman-Led Company

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odere, which debuted with a third-place ranking on the 2020 list of the 50 Fastest Growing WomenOwned/Led Companies, has been named the top company for 2021. This recognition is awarded by the Women Presidents’ Organization and JP Morgan Chase.

“It is a tremendous honor to receive this recognition from the WPO,” said Modere CEO Asma Ishaq. “We could not have accomplished our continued growth and success without our talented employees, salesforce and loyal customers around the world. I am grateful to the WPO for the support they have shown me and countless other businesswomen, including many on this incredible list of dynamic, women-led companies with whom we are extremely proud to be associated.”

The company’s ranking increase was propelled in part by its 1,700 percent increase in revenue from 2016-2020, a success Ishaq credits to the company’s positioning at the intersection of the wellness and ecommerce macrotrends. DSN

von International Global Chief Executive Angela Cretu has committed that Avon’s prices will only rise in line with inflation, even amid soaring supply and vendor costs. To keep this pledge, Avon worked with its logistics partners to act early and secure long-term contracts and increase pay for delivery workers.

The UK has seen rapid increases in costs and shortages due to the rising cost of raw materials and lack of supply, but Cretu says the Natura &Co group, which also includes The Body Shop, will work to share its manufacturing and raw materials resources between its family of brands to keep costs stable.

“We made that commitment that we’re not going to price up, but to keep a fair value for all our products, to not pass on as much as possible and to mitigate,” Cretu said.

“I’m keen not to put this global turmoil on consumer shoulders.” DSN

Primerica Named in Forbes’ List of America’s Best Insurance Companies for 2022

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rimerica, Inc. was honored by Forbes as the 6th ranked term life insurance company on its list of America’s Best Insurance Companies for 2022.

“Every day, thousands of Primerica representatives educate families on the necessity of preparing for the unexpected and protecting their loved ones through term life insurance,” said Glenn Williams, Primerica Chief Executive Officer. “Each year, that preparedness helps some of those very same families make it through the worst times of their lives after the death of a family member. For more than four decades, Primerica has remained committed to providing exemplary customer service and quality products. We are pleased to be recognized by Forbes for our efforts, and we look forward to serving many more families in the years to come.” DSN

pawTree LLC Included in Inc. 5000 Rankings

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nc. Magazine’s annual Inc. 5000 list revealed that pawTree LLC, a direct selling company specializing in superfood pet food seasonings, supplements and accessories, has earned the ranking of 1,687. This prestigious list highlights the nation’s fastest-growing privately held companies and small businesses, and has previously recognized well-known brands like Microsoft, Patagonia and Zappos.

“We are honored to be one of the fastest growing companies in America,” said a pawTree company representative. “Our team has worked incredibly hard and the results show. I expect we will continue to grow at this accelerated rate for many years to come. Our vision is to create a world filled with unconditional love where pets and their people thrive. This award validates that our vision is truly coming to life.” DSN w w w. d i r e c t s e l l i n g n e w s . c o m 17

New U Life Launches Rose & Cole Skincare Line

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t the 2021 Unlock Your Momentum Global Virtual Convention, New U Life Corporation launched a new line of skincare solutions, Rose & Cole, which uses specialized DermaType technology to select the right products for each consumer’s unique skin strengths.

“We are excited to see where the company goes with this new product launch,” said Alexy Goldstein, Founder and CEO. “We’re pushing past the age-old technology of surface-level skincare, and instead we expect to give people a strength-defining solution for their skin.”

New U Life is known for products that focus on internal transformational health, but with this new product category, the company will also offer customers a way to approach antiaging from the outside in.

“We are extremely grateful to our loyal customers for giving us this opportunity to share our success with them,” Goldstein said. “This new launch is only the beginning for New U Life as we continue to share our powerful products with the world.” DSN

USANA Partners with Dr. Oz in New Book

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n a new collaboration between Dr. Mehmet Oz, MD, Beijing University of Chinese Medicine President Anlong Xu, Ph.D., and USANA Health Sciences, Eastern and Western medicine meld together in the holistic health guidebook Yin Yang You. “For much of the West, Traditional Chinese Medicine remains a mystery,” said Dr. Mehmet Oz. “Thinking about health from a different approach feels more intimidating and unsettling than it does exciting and titillating. It’s easier—and more comforting—to stay the course with what we already know about health, about medicine, about treatments and about diagnoses. Western medicine has given us some unimaginably innovative advances and treatments. Yet one of our Yin Yang You missions is to demystify the world of TCM. Not to replace Western thinking, treatments, and approaches, but to learn how East and West can work together. I am so grateful to work with experts such as Dr. Xu and the amazingly talented research and development team at USANA on this book, and I think it will be a game changer for a lot of people.”

Yin Yang You uses humorous stories and unique recipes to guide readers through traditional Chinese practices that offer an open-minded view of global holistic medicine. DSN

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INSIGHTS

Shaklee Study Reveals 60 percent of U.S. Millennials Are “More Stressed Out Than Ever Before”

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he Shaklee U.S. Health and Wellness Study recently revealed that the millennial generation, the largest adult population in the U.S., are “more stressed out than ever before” (60 percent) and concerned that they may now have “permanently low energy levels” (58 percent).

Seventy percent of participants said they are now more concerned with personal health and wellness than they were prior to the pandemic and almost all (94 percent) want to make health and wellness a priority in the coming year. Yet, millennials say they face significant hurdles to this healthier lifestyle because of a lack of time (70 percent) and not knowing where to start (30 percent).

“This study shows just how important taking care of our personal health and wellness has become, but many simply don’t know where to begin,” said Shaklee CEO Roger Barnett.

“There’s a responsibility that Shaklee and other like-minded businesses have to act as mentors and guides to help people reach their wellness goals.”

According to the study, sources of stress and its impact include: n 65 percent report that “stress is getting in the way of my happiness, success and overall fulfillment in other areas of my life”

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percent say “managing stress is the most difficult part of taking care of myself” n 69 percent are interested in using supplements to manage their stress levels n 60 percent struggle to fall asleep, and 51 percent wake up several times at night n 83 percent have tried different options to improve their sleep n 22 percent use medication to help them sleep n 89 percent need to boost their energy during the day and rely on coffee, tea or energy drinks n 71 percent are concerned that their energy boosters come with a “health trade-off” “Our goal has always been to bring true wellness to the world,” Barnett said. “Though some of the results of this study tell us there’s work to do, there’s a great deal of optimism and opportunity as well. People are prioritizing their health as never before, which will ultimately lead to a happier and healthier nation. We are thrilled to be at the forefront of this mission by creating products that meet the growing and changing needs of our consumers.” DSN

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

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EXECUTIVE ANNOUNCEMENTS Asha Gupta

Regional President, Asia and Chief Strategy & Corporate Development Officer, Amway Amway announced Asha Gupta will take on a dual role as Regional President, Asia and Chief Strategy & Corporate Development Officer. Gupta will now oversee the company’s operations in Asia as well as continue her enterprise strategy stewardship.

In her new role, Gupta will also lead the company’s long-term global business strategy, evaluate growth opportunities and manage acquisitions and alliance initiatives.

“In a short span of time, Asha has developed tremendous passion and understanding of our Amway business,” said Amway CEO Milind Pant. “Asha’s career as a global transformational leader positions her well for this role with 27 years of experience including two plus decades in direct selling with Tupperware, where she presided over the Asia Pacific region and worked with multicultural teams across Asia.”

Christina Snyder Chief Growth Officer, Arbonne Arbonne PBC (Arbonne) announced it has appointed Christina Snyder to the role of Chief Growth Officer.

“Christina is an innovative leader when it comes to building and supporting a passionate team of entrepreneurs,” shared Tyler Whitehead, Arbonne CEO. “We are very excited to have Christina join us in our mission at Arbonne. She has a strong track record of growth across multiple disciplines and implementing powerful programs and strategies to accelerate sales. Her values and her capabilities are especially suited to Arbonne’s business model of empowering more people through sustainable healthy living and we are thrilled to welcome her today.”

Snyder will be the first to hold this newly created job title with Arbonne and will be in charge of leading the sales organization and the growth strategy development and business model innovation that will support distributors around the world.

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André J. Hoffman Chief Executive Officer, L’OCCITANE L’Occitane Group announced André J. Hoffman will succeed Reinold Geiger as Chief Executive Officer, effective September 16. Geiger, who has led the company for more than two decades, will now serve as chairman of the board and executive director. Hoffman will continue in his role as vice chairman of the board and an executive director.

“I would like to congratulate André on his appointment,” Geiger said. “André was key in growing L’OCCITANE from a small local brand in France to a successful global company. We know each other very well, and I have total confidence in André.

His wide-ranging experience in the retail and distribution of cosmetic products is unique and his personal drive and enthusiasm will help to further accelerate the Group’s growth.”

The group recently debuted its social selling platform, MyL’Occitane, and entry into the direct selling channel in the U.S.

Gabriel Sanchez Chief Sales Officer, Amare Global Amare Global announced it has selected Gabriel “Gabby” Sanchez for the role of Chief Sales Officer.

“Gabby is a huge asset to Amare,” said Amare Chief Executive Officer Jared Turner.

“He’s not only an amazing business leader with expansive international experience, but he’s an inspiring builder of people, both in corporate and the field. I’ve worked alongside him for many years. His passion, business instincts, and work ethic are phenomenal. In addition, he has a big heart and strives to create a work culture of inclusion, kindness, and mentoring.”

Sanchez joins the company just two weeks after the appointment of Jared Turner as CEO and the company’s founder, Hiep Tran, announcing his transition into the role of Chairman. DSN

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4. Frequency: Monthly. 5. No. of Issues Published Annually: 12. 6. Annual Subscription Price: $50.00 for U.S. and Canada; $100.00 for all other countries. 7. Known Office of Publication: 5800 Democracy Drive, Suite 100, Plano, Texas 75024. 8. Headquarters or General Business Office of the Publisher: 5800 Democracy Drive, Suite 100, Plano, TX 75024. 9. Editor: Patricia White. 10.

Owner: Success Partners Holding Co., 5800 Democracy Drive, Plano, TX 75024. 11: Known bondholders, mortgagees, and other security holders owning or holding 1 percent or more of total amounts of bonds, mortgages or other securities: None. 13.

Title: Direct Selling News. 14. Issue date for circulation data below: October 2021. 15. Extent and Nature of Circulation: Monthly Trade Publication. (Average No. Copies Each Issue During Preceding 12 Months/No. Copies of Single Issue Published Nearest to Filing Date): a. Total No. of Copies Printed (6000/6050). b. Paid and/or Requested Circulation: 1. Paid/Requested OutsideCounty Mail Subscriptions Stated on Form 3526 (3916/3905). 2. Paid In-County Subscriptions (0/0). 3. Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Non-USPS Paid Distribution (117/112). 4. Requested Copies Distributed

by Other Mail Classes Through the USPS (0/0). c. Total Paid and/or Requested Circulation (3916/3905). d. Non-Requested Distribution: 1. Outside-County as Stated on Form 3526 (1736/1716) 2. In-County as Stated on Form 3526 (0/0). 3. Other Classes Mailed Through the USPS (0/0). 4. Distributed Outside the Mail (28/0). e. Total Non-requested Distribution (1591/1491). f. Total Distribution (5600/5025). g. Copies Not Distributed (115/51). h. Total (5600/5025). i. Percent Paid and/or Requested Circulation w w. d i r eEditor, c t s e l l i n gOct. n e w s5, . c o2021. m 2 3 (70.99%/70.02%). 17. I certify that all information furnished on this form is true and complete. PatriciawWhite,

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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 EXPERIENCE DIFFICULT THIRD QUARTER

T

HE DIRECT SELLING CAPITAL ADVISORS Direct Selling Index (DSCI) declined 17.8 percent in September, marking its third successive monthly decline, following a dip of 8.4 percent in August and 7.4 percent in July. The Dow Jones Industrial Average (DJIA) also sharply declined in September (-4.3 percent).

This decline was experienced by the majority of the DSCI members, with 10 losing more than 10 percent and six losing more than 15 percent of their value during the month. The exceptions were large cap stock Primerica, Inc. (NYSE: PRI) and small cap stock Natural Health Trends Corp. (NASDAQ: NHTC), which both posted gains.

The DSCI has gained a cumulative 58.6 percent since the tracking set began on March 1, 2020, while the DJIA gained a more muted 33.2 percent. At its peak in June 2021, the DSCI had risen 115.6 percent since March 2020. Year-to-date, the DSCI gained 0.3 percent, which is actually impressive given its performance the last three months. By comparison, the DJIA has advanced 12 percent year-to-date.

Investors have had to grapple with a long list of uncertainties, including rising inflation fears, signs of slowing economic growth, ten-year U.S. government bond yields, and almost daily announcements of global supply chain bottlenecks. When some of these issues are resolved, or at least stop worsening, the stock market could improve,

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which could in turn make for a better environment for direct selling stocks.

LARGE CAP STOCKS n Betterware de Mexico (NASDAQ: BWMX) fell 15.9 percent in September despite announcing a $50 million share repurchase program. The company reported strong second quarter earnings in early August, and revenue, EBITDA and net income increased 81 percent, 92 percent and 72 percent, respectively, compared to the prior year. BWMX shares are up 7.4 percent since the start of 2021. n Tupperware Brands Corporation (NYSE: TUP) declined 11.5 percent in September, bringing its year-to-date losses to 33.9 percent. Even so, since March 1, 2020, TUP shares have gained a remarkable 641.1 percent. The company reported second quarter results that easily surpassed Wall Street’s expectations, and quarterly net sales and adjusted EBITDA each increased 17 percent versus the year-ago period. n Nu Skin Enterprises, Inc. (NYSE: NUS) had the highest dividend yield (3.76 percent) in the DSCI, but its stock declined 20.1 percent in August. The company’s shares are down 25.9 percent for the first nine months of 2021, but are still up 71.5 percent since the March 2020 establishment of the DSCI. In early August, NUS reported positive second quarter earnings results and boosted its full-year 2021 EPS

The DSCI has gained a cumulative 58.6 percent since the tracking set began on March 1, 2020, while the DJIA gained a more muted 33.2 percent.

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) declined 17.5 percent in September, primarily because the company cut its third quarter and full-year 2021 earnings projections to $1.00$1.20 per share and $4.55-$4.95 a share, respectively, from the $1.05-$1.25 and $4.70-$5.10 guidance it issued in early August. The pandemic’s lingering effects resulted in what the company described as “lower than expected levels of activity” among its independent distributors. Year-to-date, HLF shares have declined 15.1 percent, but appreciated 31 percent since March 2020.

n Medifast, Inc. (NYSE: MED) shares declined 15.5 percent in September after falling 20.2 percent in August. Year-to-date, MED has gained 0.7 percent, and risen 142.4 percent since the March 1, 2020 establishment of the DSCI. The company reported robust second quarter results, with revenues and diluted EPS increasing 79 percent and 113 percent, respectively, compared to the prior year period. n USANA Health Sciences, Inc. (NYSE: USNA) announced that its third quarter sales are expected to be about 10 percent lower than the same period last year. EPS is now expected to be in the $1.28-$1.33 range, down from $1.44 in the third quarter of 2020, citing COVID-19-related disruptions w w w. d i r e c t s e l l i n g n e w s . c o m 2 5

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S T O C K

and lockdowns in several key markets that affected the company’s ability to operate and ship products. USANA did perform better in September than most DSCI components, declining only 5 percent and, year-to-date, the stock has gained 18.3 percent. Since the March 2020 inception of the DSCI, USANA shares have appreciated 39.5 percent, beating the Dow’s 33.2 percent cumulative price increase. n eXp World Holdings (NASDAQ: EXPI) shares declined 13.3 percent in September, cutting its year-to-date gain to 29.6 percent. Since March 1, 2020, EXPI has rallied an astonishing 732 percent. The company’s second quarter results were strong, posting a net sales increase of 183 percent compared with the third quarter of 2020. Equally important, EXPI declared a $0.04 per share quarterly cash dividend to shareholders, its first-ever dividend. n Primerica, Inc. (NYSE: PRI) is the biggest market cap stock in the DSCI and was a standout performer in September, rising 0.5 percent. The stock is 19 percent higher over the first

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W A T C H

three quarters of 2021, and 40.2 percent higher since the March 2020 inception of the DSCI. The company’s second quarter earnings included a 25 percent increase in revenue and an earnings per diluted share increase of 28 percent. n The Beachbody Company, Inc. (NYSE: BODY) stock was the weakest component in the DSCI in September, declining 28.3 percent. Beachbody’s second quarter results showed a 2 percent increase in revenue. Most notably, digital revenue rose 20 percent.

SMALL CAP STOCKS In spite of a difficult month, the small cap tracking set outperformed its large cap peers.

“Somewhat surprisingly, the small-cap members of the DSCI generally performed better than their large-cap peers in September,” said Stuart Johnson, Direct Selling Capital Advisors CEO. “While seven of the nine large caps declined by double figure percentages in the month, only three of the

Aggregate “days-to-cover” have more than doubled since bottoming in mid-February.

eight small caps fell by 10 percent or more. Typically, large cap stocks outperform small caps during times of maximum stress in the market.” n Natural Health Trends Corp. (NASDAQ: NHTC) was the only small cap to gain in September (+7.3 percent). The stock has appreciated 52.7 percent over the first nine months of 2021 and 137.6 percent since DSCI inception. Natural Health Trends was notified on September 30, 2021 that a non-public investigation by the SEC, which began in August of 2016, was concluded and that the commission did not recommend enforcement action.

SHORT INTEREST AND DATA ANALYSIS Short interest in industry stocks peaked in mid-August and moved slightly lower through September. Aggregate “days-to-cover” have more than doubled since bottoming in mid-February.

During September, the number of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks declined to around 90 percent from 97 percent in August.

The percentage of stocks which analysts recommend selling also rose to 10 percent from just 3 percent in August. 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 27

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D I G I T A L

M O M E N T U M

R A N K I N G S

Direct Selling News

D I G I TA L MOMENTUM RANKINGS Direct Selling News in partnership with Direct Selling Capital Advisors presents the Direct Selling News Digital Momentum Rankings quarterly list. The purpose of these rankings continues to be to evaluate and acknowledge the companies experiencing significant growth in their online presence within the last 90 days.

Components

The list represents months of analysis across the three core pillars of social media marketing: web traffic & SEO analysis, Facebook activity and Instagram activity.

Eligibility

A company is included in the Direct Selling Momentum ranking when it has an active website, at least one active social media account, and at least 50,000 followers or fans for a single account (Facebook or Instagram).

As noted, our initial ranking methodology focuses exclusively on three primary drivers of online presence: web traffic, Facebook activity, and Instagram activity. We’ve aggregated roughly a dozen metrics from these three sources and assessed their change over the last ninety days in an attempt to measure the growth in a company’s online audience, or momentum.

A brief explanation of our proprietary methodology follows.

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Web Traffic & SEO

We analyze basic web traffic statistics as a measure of general interest. These statistics seek to measure the number of individuals searching for, visiting and clicking on links that direct them to the company’s domain. This domain includes the corporate website and (in most cases) the company hosted web pages for individual distributors. Additionally we analyze the number of third party sources referring internet users to the company website, as well as the number of associated keywords, branded phrases or marketing jargon (hashtags, slogans, etc.) that are popular across the web. Assessing the change in these metrics over time creates an estimated increase or decrease in demand for the company across the web.

Facebook Activity

We gather a collection of metrics intended to measure thirty-day changes in both volume (count) and quality (engagement & communication with) of followers. Assessing the change in behavior on Facebook, we believe, is a valuable tool in determining improvements (or declines) of a brand’s social value.

Instagram Activity

As with Facebook, we focus on the thirty‑day change of our metrics as a measure of social attention, or momentum, assuming a significant change in attention indicates changes in social interest and brand awareness.

A Note on Facebook vs. Instagram

Given varying target markets and consumer profiles, companies seem to often focus on Facebook or Instagram, rather than both. To ensure appropriate credit is given to the correct outlet, our metric analysis and momentum calculation consider which platform appears to be the primary for each company. As an example, if a company has 20,000 Instagram followers and 80,000 Facebook fans, all Facebookrelated metrics will be weighted at 80 percent (80/100) of the total weighted social media metric score. Similarly, all Instagram-related metrics will be weighted 20 percent. Few companies do not have an active official Instagram account, and so their social media metric is based 100 percent on Facebook performance and changes. There are no companies in the list for which an official Facebook profile does not exist.

Q

3 SAW FAN BASES GROW BOTH SOCIAL PLATFORMS, while general website traffic slowed somewhat.

Most impressive of the metrics was the industry’s continued growth on Instagram, where companies posted

significant growth in followers and engagement improvement. Average Web Traffic of the 100+ companies slowed significantly this quarter, erasing the surge from Q2 with a decline of roughly 30 percent.

Regarding Social Media, the group averages for Facebook fan growth and engagement were +8.9 percent and

-3.0 percent, respectively, while Instagram participation boasted impressive 22.8 percent follower growth and engagement per post remained unchanged. Q3 highlights a continued shift to Instagram for most companies in the list as consumers move to the faster-paced platform with more digestible snippets of information.

Below are the rankings for the Domestic and International Momentum Rankings:

TO P 5 0

MOMENTUM RANKINGS

I N T E R N AT I O N A L L I S T

1 MANNATECH

26 YOUNGEVITY

1 FARMASI

2 OPTAVIA

27 PARTYLITE

2 COWAY

3 PAPARAZZI ACCESSORIES

28 TUPPERWARE

3 THE BODY SHOP

4 BEACHBODY

29 WORLDVENTURES

4 ZINZINO

5 SCENTSY

30 PARKLANE JEWELRY

5 VESTIGE

6 MODERE

31 LIFEVANTAGE

6 MARY KAY INTERNATIONAL

7 JEUNESSE GLOBAL

32 XYNGULAR

PAGES

8 AMWAY

33 PAMPERED CHEF

7 NEW IMAGE

9 CABI

34 AVON USA

8 LYCONET

10 HERBALIFE

35 ISAGENIX

9 OMNITRITION

11 CHALK COUTURE

36 UNICITY

10 NATURA

12 MELALEUCA

37 SENEGENCE

11 INFINITUS

13 LIMELIFE BY ALCONE

38 MONAT GLOBAL

12 FABERLIK

14 PLEXUS

39 USANA

13 BELCORP

15 31 GIFTS

40 DOTERRA

14 B:HIP GLOBAL

16 IMMUNOTEC

41 BEAUTYCOUNTER

15 POLA

17 IT WORKS!

42 EPICURE

16 PM-INTERNATIONAL

18 MARY KAY

43 SHAKLEE

17 GIFFARINE

19 COLOR STREET

4 4 SEINT

18 YANBAL

20 TLC

45 JUICE PLUS

19 ORIFLAME

21 RED ASPEN

46 PRINCESS HOUSE

20 MWR LIFE

22 EXP REALTY

47 LE-VEL

23 VIDA DIVINA

48 ZURVITA

24 4LIFE

49 MARKET AMERICA

25 KYANI

5 0 YOUNIQUE

For more information or questions, submit your inquiry to preston@directsellingnews.com.

DIRECT SELLING CAPITAL ADVISORS is a boutique investment banking, business development and corporate finance advisory firm primarily focused on the direct selling vertical, as well as ancillary businesses. Located in Dallas, Texas, Direct Selling Capital’s core service offerings include both buy and sell-side M&A advisory, equity and debt financing, as well as joint venture and partnership opportunities. For more information please contact us at: info@directsellingcapital.com This is a summarized report; for more information, please contact info@directsellingcapital.com. w w w. d i r e c t s e l l i n g n e w s . c o m 2 9

/ INDUSTRY NEWS /

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

Distributor—someone who

DOES have a distributor agreement in place

Customer—someone who DOES NOT have a distributor agreement in place n

n

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

R E C O G N I T I O N

BE CU STOM ERCENTRIC RECOGNIZED.

The CCR Program is

n

C U S T O M E R - C E N T R I C

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.

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.

DSN DIRECT SELLING NEWS

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

D

IRECT SELLING COMPANIES with a strong retail base of satisfied customers are experiencing impressive growth and deserve recognition and acknowledgment for

their efforts. With evolving consumer expectations and regulatory scrutiny, customer‑centric equals success for everyone—distributors, direct selling companies and the channel as a whole.

The DSN Customer-Centric Recognition Program acknowledges these companies.

GOLD

/ 5:1 up to 10:1

P L AT I N U M

/ 10:1 and above

MONAT GLOBAL

ACN

NEORA

BHIP GLOBAL

PERFECTLY POSH

IT WORKS!

TOTAL LIFE CHANGES

KYNECT

LE-VEL

NU SKIN

SCENTSY I n o rd e r t o p ro t e c t t h e i n t e g ri t y o f t h e C C R P ro g ra m f o r a l l p a r t i c i p a n t s , D S N re s e r v e s t h e ri g h t t o s u s p e n d o r d i s c o n t i n u e C C R P ro g ra m re c o g n i t i o n o f a n y c o m p a n y u n d e rg o i n g p u b l i s h e d l e g a l a c t i o n s o r re g u l a t o r y d i s p u t e s (i n c l u d i n g a n y s e t t l e m e n t s o f s u c h) .

USBORNE BOOKS

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Brand School The Happy Co.’s CMO Clare Holbrook shares lessons learned during the company’s total brand overhaul.

BY DAVID LEE

I

T’S BEEN NEARLY A YEAR since The Happy Co. overhauled its entire brand, from the company name to the color pallet, logos, product packaging and all business and back office websites. Looking back at the gargantuan task, Chief Marketing Officer Clare Holbrook shares some insight about what they learned, what worked, how the rebrand was received and some surprises they encountered along the way.

Why did The Happy Co. need to undergo a total rebrand?

I would say there were multiple reasons. The company name didn’t really portray our product line and our culture. We actually had two company names, which was very confusing. There was a brand for the products, which was Elevacity, and then when a distributor joined the company, they joined Elepreneurs. So, we had what I would call a battle of the brands.

Also, a huge percentage of our field is female.

Our Facebook engagement stats were around 90 percent female. The previous brand’s look and feel was extremely masculine with masculine colors. So, it was a combination of all of those.

The rebrand was key to align our brand with our overarching mission and culture.

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So, was that mission and culture already moving in a different direction?

Yes. It was actually prior to engaging with the branding company, we actually worked with an external consultant who served as a facilitator. Because it’s difficult if you’re in it every day, sometimes you can’t see the forest for the trees. So, he had us define our mission statement, vision statement and our core values. That was step one before we engaged with the branding company.

What was the most challenging part of the rebrand?

Launching a customer website, a distributor website and a back office all on the same day. If you just took one, like the back office, we had to rebrand every single asset. Whether it was a video, a flyer or a training document, it was just a huge amount of assets, elements and deliverables, all going live on the same day.

How was the rebrand received by the distributor field, and how were they involved in the process?

It was a collaboration with the field leaders. In the lead-up to the rebrand and before engaging with the branding company, we did many focus groups with leaders of a certain rank. Each one was about three hours, and they did it for two months solid with lots of different teams and even set up a Facebook Messenger group. So, they were really engaged in the process early on. They felt like they were part of the process. It wasn’t something that corporate just sprung on them.

By the time of the leadership event in November, when it was announced to everyone that the rebrand was coming in Q1 2021, their response was purely positive.

CLARE HOLBROOK’S TOP‑FIVE TIPS FOR REBRANDING A COMPANY

1

Prior to beginning, be really clear on who you are, your mission and define your culture (in writing).

2

Expense—be realistic about the total spend that a rebrand requires.

3

Scope of project—extensive project workload.

4

Proactive communication plan to prep the distributors prior to the rebrand

5

Allow enough time for the entire rebranding process.

What did you learn working with an outside branding firm?

They had an extensive, intricate process they followed without cutting any corners. It was a six-month process to go through, and they literally have a chart that shows the whole process and the four phases. Like with anything in design, the whole thing evolved, but it was really proven, impressive and effective.

As Chief Marketing Officer, what part of the rebrand was the most fun for you?

Seeing it come to life. In the process I was just describing, you don’t get to the color palette until pretty late in the process, so everything was just words and documents.

Seeing it come to light visually was the most exciting.

Seeing all of our brand colors together, they had really fun names. It wasn’t just ‘this PMS color yellow.’ It was ‘Happy Place Yellow’ and ‘Tickled Peach’ and ‘Sunset Orange.’

Yeah, absolutely seeing the visuals come together.

What conversations took place to determine how you wanted your customers to feel about the new brand?

In the exercises we had to do, even just in the first kickoff questionnaire, we had to find adjectives to describe our brand and culture. We have Happy, Family-Oriented, Loves Love, Fun, Inclusive, Informal, Energetic, Spirited.

Our goal is for anyone who experiences our brand to immediately have a sense of surprise and delight. In the kickoff questionnaire, it asked, ‘Are there any colors we should avoid? Do you have any feel for bold or pastels?’

And even though the majority of our base is female, we still wanted it to appeal to a male audience.

It’s been more than six months, so how has it been received so far? Do you feel like the goals were reached?

I think it couldn’t have gone any better, and people have embraced The Happy Co. and never looked back. It comes up occasionally, where they love the new names so much. One person was going to be featured in a Brand Partner profile. She said, ‘Yes! But please don’t do it until after you launch the new brand so it can be in the name of The Happy Co.’ So, I think it’s gone really, really well.

Has any part of the new brand taken on a life of its own?

Yes, one of our supporting secondary marks, people have fallen in love with that. Maybe because it’s shorter, but to me, that was a surprising part of it. They use it on social media. That was the single-most-important objective of this brand, that it could live in a social media world and stop the scroll. They also put it on graphics and use it in recognition as well. DSN w w w. d i r e c t s e l l i n g n e w s . c o m 3 3

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Ambit Energy Launches Compliance Central Hub

Bridging the gap between

the distributor field and the compliance department to

build a synergistic relationship

BY DAVID LEE

is no easy task.

I

N AN INDUSTRY WHERE some companies try to regulate the actions of tens of thousands of independent distributors, addressing compliance issues can be like trying to hold water in your hands. From the distributor’s point of view, getting a call from the compliance department can seem like being pulled over by a police officer.

Bridging the gap between the distributor field and the compliance department to build a synergistic relationship is no easy task.

Ambit Energy, which operates in a highly regulated energy industry in multiple U.S. states plus Canada and Japan, recently launched a Compliance Central hub in the consultant back office to help increase education and make updated policy and regulatory documents more readily available. “Never sacrifice integrity for growth” has been Ambit’s motto from day one, and it appears in large font at the top of the compliance section. “Staying on-brand and compliant with both legal requirements and Ambit Energy’s guidelines are critical to protecting your business, your fellow consultants and Ambit’s reputation and ability to do business. That’s why we created the new Compliance Central hub on PowerZone,” a company announcement said.

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The back-office compliance hub features the latest brand guidelines, advertising guidelines, a monthly compliance bulletin and a marketing approval submission portal where consultants can submit any self-created print or digital marketing materials. Downloadable documents and media files include the DSA Code of Ethics, Code of Ethics Training, a link to the National Do Not Contact Registry, Ambit Energy Earnings Disclosure Statement, Customer Rights document, state-specific guidelines and a list of Ambit’s “integrity facts.” DSN

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SPONSORED BY

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Must Reads THINK AGAIN: THE POWER OF KNOWING WHAT YOU DON’T KNOW AUTHOR: ADAM GRANT (VIKING, 2021)

O

RGANIZATIONAL PSYCHOLOGIST ADAM GRANT is an expert on opening other people’s minds—and our own.

As Wharton’s top-rated professor and the bestselling author of Originals and Give and Take, he makes it one of his guiding principles to argue like he’s right but listen like he’s wrong. With bold ideas and rigorous evidence, he investigates how we can embrace the joy of being wrong, bring nuance to charged conversations and build schools, workplaces and communities of lifelong learners. Think Again reveals that we don’t have to believe everything we think or internalize everything we feel. It’s an invitation to let go of views that are no longer serving us well and prize mental flexibility over foolish consistency. If knowledge is power, knowing what we don’t know is wisdom.

BE THE SPARK: FIVE PLATINUM SERVICE PRINCIPLES FOR CREATING CUSTOMERS FOR LIFE AUTHOR: SIMON T. BAILEY (SIMON T. BAILEY INTERNATIONAL, INC., 2018)

YOUR SPARK IS WHAT DISTINGUISHES YOU from the pack through exceptional

PLATINUM service that keeps customers coming back—every time. Author Simon T. Bailey shares five proven methods to equip you with a simple framework that will help you infuse your culture with a mindset that captures the hearts and minds of employees so they will, in turn, capture the hearts and minds of customers. Through evidence-based research, stories and examples, Be the SPARK will teach you how to attract and retain customers in a growing global market, turn customers into loyal fans and create unforgettable moments that keep them coming back. Find the SPARK that creates the change you want to see in yourself, your company, and the world.

TAKE COMMAND: A DALE CARNEGIE PODCAST HOSTED BY JOE HART, CEO OF DALE CARNEGIE (APPLE PODCASTS) Listen to Take Command: A Dale Carnegie Podcast and uncover what leadership means in today’s world. Hosted by Joe Hart, CEO of Dale Carnegie, the podcast talks to diverse leaders across various industries to help unlock your potential for success. Hart and his guests share real-life insights into leadership—which in turn can help spark the next level of your growth as a leader. DSN

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one (1) collage-style compilation ad in every issue of DSN (print and digital) during the lifespan of your Membership ■

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Gold & Platinum Members receive all this PLUS many more exclusive perks!

DSN

DIRECT SELLING NEWS

The news you need.

The name you trust.

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Longtime Industry Executives Form Special Purpose Acquisition Company A “ S PAC ” FO C U S E D O N TH E DIREC T SELLING INDUSTRY

BY D S N S TA F F W R I T E R

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H I L E T H E VA S T M A J O R I T Y O F D I R E C T S E L L I N G C O M PA N I E S A R E P R I VAT E LY H E L D , FA M I LY- R U N E N T I T I E S , the principals

behind Direct Selling Acquisition Corp. (NYSE: DSAQ.U) or (“DSAC”) are looking to shake up that traditional model by providing a high‑quality, high‑performing direct selling company with the opportunity to access the public markets.

ON SEPTEMBER 28, 2021 DSAC closed its initial public offering (“IPO”) and now trades on the New York Stock Exchange under the symbol DSAQ.U. The base $200 million offering was more than three times oversubscribed and was increased to $230 million based on the underwriters’ full exercise of their 15 percent overallotment option.

A SPAC, or Special Purpose Acquisition Company, essentially operates as a shell company, formed by a combination of investors and operators, to raise capital from investors through an IPO. The SPAC’s ability to do this is generally based on the reputation of the SPAC team or a particular investment thesis. Because SPACs are often less expensive and faster than traditional IPOs, they have become a popular method of raising capital and accessing the public markets. In fact, cnbc.com recently called SPACs one of Wall Street’s hottest trends.

SPACs have evolved into a highly efficient and effective vehicle for providing companies with access to the public equity markets. SPACs are no longer considered vehicles to acquire businesses. Instead they function similarly to a reverse merger where the pre-existing shareholders of the target company can remain the largest shareholders in the public company post-merger. In other words, pre-merger ownership often maintains control of their company, with the SPAC providing capital and expertise to support the company in its growth.

One of the unique aspects of a SPAC is that when it raises capital, the investors buying into the IPO do not know what the eventual target company will be—that’s why SPACs are sometimes referred to as “blank check companies.”

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We are excited about the opportunity to help a strong, successful private company become a great public one.

— D AV E W E N T Z , C H A I R M A N A N D C E O

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A Growing Trend for Investors

Recent companies outside of direct selling that have gone public through a SPAC include Virgin Galactic, SoFi Financial and Draft Kings. There’s also a recent and very successful example of a direct selling company going public through a SPAC, Betterware de Mexico.

Betterware is the leading direct selling company in Mexico with a network of over 65,000 distributors.

It completed its SPAC merger in 2020. The capital from the merger allowed Betterware to invest in a broad range of growth initiatives. As Luis Campos, Executive Chairman of Betterware explains, “We remain focused on our three strategic pillars of product innovation, technology and business intelligence.” Betterware also successfully expanded into Guatemala and plans to open in additional countries throughout Central and South America in the future.

From the time of its SPAC merger close in Q1 2020 to the end of the year, Betterware de Mexico shares were up 297 percent. This was the best performance of all the SPACs that completed a deal in 2020 for the period of merger close to the end of the year.

SPACs are often less expensive and faster than traditional IPOs.

A SPAC Solely Focused on Direct Selling

Based on existing trends and these successful examples, DSAC is focused solely on facilitating the transition of a high-performing private direct selling company to the public market. DSAC is led by some of the biggest names in direct selling—a connected and reputable group of C-level executives with a combined 180 years of leadership experience.

DSAC plans to focus their search on domestically based businesses within the direct selling channel.

By leveraging their vast experience and unparalleled relationships, DSAC seeks to help founders/owners capitalize on significant growth opportunities within the direct selling channel.

DSAC’s Chairman and Chief Executive Officer Dave Wentz calls this a watershed moment for direct selling. “The current growth in direct selling makes the timing for this launch ideal. There are several companies we feel could do tremendous things with the infusion of capital and shareholder value going public brings,” he says. “We are excited about the opportunity to help a strong, successful private company become a great public one.”

A Strategy Focused on Opportunity and Growth

Using the above criteria, DSAC has identified a number of privately held direct selling companies they believe can benefit from going public.

DSAC believes its unmatched combination of industry experience and connections makes them a preferred partner for these potential target companies. Some of DSAC’s differentiators include: n UNPARALLELED EXPERIENCE Due to the strong connections and relationships held by the management, board of directors and sponsor team of DSAC, as well as the group’s decades of relevant experience, they are well positioned to provide tremendous value and support to the extent it is desired or needed by a partner company. In addition, DSAC is familiar with the business and opportunities of many companies within their target universe. This wealth of knowledge will allow the team to move quickly and confidently through the evaluation process and provide advisory assistance as the company prepares to go public.

n UNDERSERVED CHANNEL Most direct selling companies are self-funded, thus diminishing the need for these companies to develop relationships with the financial community.

As a result, liquidity and growth capital opportunities are underutilized more often than not. As Special Advisor Ryan Bright says, “We have long believed that direct selling companies are underserved by capital markets, which is a core pillar of DSAC’s thesis. We believe that our expertise, reputation and relationships will help bridge that gap. DSAC is the perfect vehicle to help a great company gain access to public capital and the additional growth opportunities that capital provides.” n REPUTATION AND RELATIONSHIPS The leadership of DSAC is well known and highly respected throughout the channel. “Our team is likely the most connected group in the direct selling industry worldwide,” explains Stuart Johnson, DSAC Special Advisor. “Direct selling is a people business—and we already know the people leading these companies. There is a lot of mutual trust, admiration and respect already in place.”

Growing Bigger Better Companies

The SPAC merger will likely result in an approximately $230 million capital infusion or more in the selected company. So how could that instant influx of public capital help a direct selling company scale? By allowing them to make strategic investments in specific areas in order to take their business to the next level. Amongst others, this can include investing in the following areas: n n n n n n n

Supply chain and distribution Technology Digital transformation Product development and innovation Branding International expansion Human resources

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An Impressive

L EA D E R S H I P

Team

DSAC IS L ED BY A S E AS O N E D G R O U P O F D I RECT SEL L I N G LU M I N A RI ES A N D LE A D E RS W I T H OV E R 1 8 0 Y E A RS O F C O M BINED C-L EVEL EXP ER IENCE IN PUBL IC AND P R IVAT E C O M PA N I ES .

DAVE WENTZ serves as Chairman and Chief Executive Officer. He is the former Chief Executive Officer of USANA Health Sciences.

During his time with USANA, he served on the board of directors of both the Direct Selling Association and the Direct Selling Education Foundation.

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IN AD D IT ION TO T H OSE L IST ED AT L EFT, D SAC H AS T H E FOL LOWING I N DEPEN DEN T DI RECTORS:

MIKE LOHNER is the President, Chief Financial Officer and a Director. He is a highly experienced executive, board member, founder and investor in the direct selling and direct‑to‑consumer industries. He’s also co‑founder of DOSH, a leading card‑linked cash‑back advertising platform.

JOHN ADDISON, former Co‑Chief Executive Officer of Primerica, Inc. and currently the Chief Executive Officer of the Addison Leadership Group.

WAYNE MOOREHEAD serves as the Chief Strategy Officer and as Director. He brings a wealth of experience in marketing, branding and direct‑to‑consumer to the management team.

He’s a seasoned thought leader and advisor across several industries, most recently as Chief Marketing Officer for Young Living.

BRADFORD RICHARDSON, former president of Shaklee International. He has spent 20 years of his 30+ career aggressively scaling direct selling companies globally.

STUART JOHNSON is a Special Advisor to DSAC. Stuart has served the direct selling channel for more than 35 years as the sole founder and CEO of Direct Selling Partners, a leading marketing services firm, as well as the founder of Direct Selling Capital Advisors. He is also the owner of Direct Selling News, a leading industry publication.

TRAVIS OGDEN, currently serving as the Co‑Founder and Chief Executive Officer of Oola Global, a personal development company serving the direct selling channel.

RYAN BRIGHT is Special Advisor to DSAC. He is a partner and co‑founder of Direct Selling Capital Advisors and has nearly 20 years of experience as a financial and investment executive. He began his career in finance sourcing private equity transactions.

HEATHER CHASTAIN, Founder and Chief Executive Officer of Bridgehead Collective, a consultancy focused on assisting direct selling companies scale.

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An infusion of significant capital could allow a target company to invest in the kinds of technologies that allow their micro‑influencers to reach more customers, sell more product and build bigger, better teams.

—WAY N E M O O R E H E A D , C S O

Direct selling is enjoying a resurgence in popularity and growth dovetailing with the rise of social selling and the side hustle culture. This has created a virtual army of 120 million micro-influencers utilizing direct selling to grow their individual brands and businesses organically through social media and social sharing.

The dynamic of blending direct selling with direct to consumer impacts the channel more than any other single factor.

As Wayne Moorehead, DSAC’s Chief Strategy Officer, explains, “Many direct selling companies that are poised for growth need to invest in technology in order to fully realize their potential. Direct selling is blending with direct to consumer in what is evolving into a business model that can provide the best of both high tech and high touch. There is a significant digital transformation underway that is fueling growth.

An infusion of significant capital could allow a target company to invest in the kinds of technologies that allow their micro-influencers to reach more customers, sell more product and build bigger, better teams.”

There are other tangible benefits to companies considering a SPAC merger as well. The short list of companies on DSAC’s target list are already successful with good cash flow and market share, but this allows them to benefit from the knowledge and experience

of the officers of the SPAC. In addition to growth capital, access to the public markets provides: n

n

n

n

A level of liquidity not generally available to industry companies; A public currency to leverage for acquisition opportunities or further capital needs; Ability to extend management, employee and distributor loyalty and longevity through participation in stock ownership; and Broadened estate planning and legacy building opportunities for company ownership.

The management team and board of directors of DSAC has over 180 years of combined C-Suite experience with direct selling companies of different segments and sizes from startups to well-established brands. They know the industry inside and out and can bring not only capital but a wealth of knowledge to companies that are already performing well, ideally helping them achieve even more.

As Mike Lohner, DSAC’s President and Chief Financial Officer, explains, “I am honored to work with this extraordinary team, whose passion for and experience in the direct selling channel makes it an ideal merger partner for an industry company that can benefit from the growth capital, expertise and support that DSAC can provide. We believe our understanding of the unique opportunities and challenges of these companies is at a level that most within the investment community simply do not possess, and that could prove invaluable to founder/ owners, operators, investors and the industry at large.”

Taking the Channel to New Heights

The corporate side of direct selling is often considered a mystery to outside investors and other industries. There is a distinct disconnect between what today’s direct selling companies achieve and how they operate in addition to lingering public mistrust and confusion.

In order for the channel to continue to grow, its leading companies must change the narrative with a new story of prosperity, legitimacy and innovation. DSAC promises to offer the right company the capital to improve and expand. Strong companies with strong reputations not only combat stereotypes, but edify and elevate the channel as a whole. DSN w w w. d i r e c t s e l l i n g n e w s . c o m 4 5

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2021 DIRECT SELLING UNIVERSITY /

CONNECT & EMPOWER M O R E T HA N 3 0 S P E A K E R S S HA R E D TA N G I B L E AC T I O N P L A N S FO R H OW T H E I N D U ST RY’ S L E AD E R S C AN C O N T I N U E TO G R OW AN D ADAP T I N T HE FAC E O F T HI S Y E A R ’ S E N D UR I N G C HA L L E N G ES .

T

he one thing that has been

predictable about 2021 is that it has proven itself to be just as unpredictable as 2020.

Direct Selling University (DSU),

one of the most anticipated industry events of the year, was originally BY SARAH PAULK

scheduled to be an in-person gathering, where leaders from around the world could network, build relationships face-to-face and connect over their shared challenges and wins during this unusual pandemic season.

But growing concerns around the Delta Variant and COVID-19, as well as the changing travel and meeting restrictions, led to the difficult decision to transform the event—once again—into a vibrant virtual experience that would protect the health and safety of attendees, presenters, sponsors and employees while providing groundbreaking insight from some of the industry’s most experienced and talented executives.

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The audience was eager for tangible action plans, straightforward strategies and new approaches— and the 30 speakers assembled for this year’s event delivered.

This year’s

UNPREDICTABILITY, WITH ITS SUPPLY CHAIN AND LOGISTICAL HURDLES, a market that continues to shift at lightning speed, increased regulatory pressure and a hovering sense of disconnection between the field and corporate teams, meant that this year’s second Direct Selling University was even more crucial than ever before.

The audience was eager for tangible action plans, straightforward strategies and new approaches— and the 30 speakers assembled for this year’s event delivered.

“Change continues to come at us fast and furious as market conditions, technology, consumer behavior and expectations continue to evolve,” said Stuart Johnson, Founder and Chief Executive Officer of Direct Selling News, NOW Technologies and Direct Selling Capital Advisors.

Amid these challenges, however, the channel experienced positive momentum, put in motion by 2020’s explosive growth. Last year, revenue within the industry reached $40 billion domestically and $180 billion globally, and there are many companies positioned to capitalize on this energy, like OPTAVIA, whose annual revenue is set to exceed $1.5 billion.

“Direct selling remains perfectly positioned to maintain and increase our growth and improve our reputations—just by continuing to do what we do best!” Johnson said.

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Sharing Wisdom and Experience

Executives from more than 50 companies attended Direct Selling University for the first time, signaling a growing passion and need for shared wisdom and insight across the industry. From innovative strategies for cultivating an empowered and connected field to teaching data-backed masterclasses on the importance of diversity, inclusion and racial equity, presenters offered powerful, timeless messages that are particularly relevant and important in today’s landscape.

“At DSN, we strive to edify the channel and inform the executives that lead it,” said Shelley Rojas, Direct Selling News Publisher and Chief Brand Officer.

“Direct Selling University is a big part of that goal.”

K A M I P E N T E CO ST / C h i e f Netwo rk i ng O f f i c e r, I t Wo r k s !

THE P OW E R O F P ROX I M I T Y

}Kami Pentecost, Chief Networking Officer, It Works!, discussed the consequences of disconnection and offered tangible ways leaders could invest in their teams to increase performance, morale and longevity, even as inperson gatherings remain out of reach.

LI V IN G W IT H A LONGE VI TY M I ND S E T

}Nancy Bogart, Owner and Founder, Jordan Essentials, shared her company’s 21-year history of adjusting, adapting and overcoming the odds in order to protect the long-term vision.

BU IL DI N G A L EGAC Y B RA ND

}Melissa Thompson, CEO and Founder, BELLAME, reflected on the company’s earliest days, and how their commitment to strategic SEO, customer research and developing their own tech platform provided momentum that has carried them through the pandemic.

_______________________ World Class

RECOGNITION For World Class

PERFORMANCE

_______________________

THE B O KE H E F F EC T

}Mark Stastny, Chief Marketing Officer, Scentsy, encouraged leaders to sharpen their focus on what truly matters and to allow distractions to blur and fade into the background.

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KINDRA HALL / A u t h o r, S p e a k e r a n d C h i e f S t o r y t e l l i n g O f f i c e r, SUCCESS

THE STO R I ES W E T E LL

}Kindra Hall, Author, Speaker and Chief Storytelling Officer, SUCCESS, illustrated how executive leaders can motivate their field from the inside out with four specific stories distributors can learn to tell themselves.

PERM I S S I O N TO P L AY: ST RATEGI ES TO ACCEL E R AT E G R OWTH I N A D I GI TA L WORLD

}Jacob McLain, Senior Vice President and Chief Strategy Officer, MONAT Global, offered strategies that take advantage of the macrotrends presenting opportunities for the channel, and how companies can leverage and adapt to the new digital-first economy.

CON N EC T IN G W IT H H I S PA NI C A ND LATINO MA R KET S

}Judith Sánchez, General Manager, JAFRA USA, explained how understanding the cultural nuances of the Hispanic and Latino markets is crucial to revenue growth and mastering the inclusive language, behavior and tone that attracts these growing populations.

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SHAMA HYDER / C h i e f E x e c u t i v e O f f i c e r, Z e n M e d i a

BUIL DING A S O C IA L ME DIA BR A ND

}Jessie Lee Ward, Coach & Rank 10 Prüvit Leader, taught corporate leaders how to leverage viral content, artificial intelligence and social media trends to ignite explosive sales growth.

PR IO R IT IZ E ME A NING FUL OVE R ME A S UR A BL E

}Shama Hyder, Chief Executive Officer, Zen Media, explained why ROI is a terrible metric, and how owning the conversation and embracing dark social is crucial for success in a digital ecosystem.

ST UA RT J O H N S O N / Fo u n d e r a n d C E O , D i r e c t S e l l i n g N e w s , N OW Te c h n o l o g i e s a n d D i r e c t Selling Capital Advisors

D IR EC T S EL L IN G ’ S H I GH EST P OTE NTI A L

}Stuart Johnson, Founder and Chief Executive Officer, Direct Selling News, NOW Technologies, Direct Selling Capital Advisors, cast vision for the future of the channel and offered unique opportunities that can enhance the lives of the industry’s 120 million microinfluencers and provide enormous value to customers.

DIRECT SELLING ASSOCIATION S U P P L I E R

THE S A L ES A N D M A RK E T I NG TROJ A N H ORS E

}Jim Caldwell, Chief Marketing Officer, LifeWave, illustrated how captivating storytelling can decrease skepticism, and why word-ofmouth marketing is a sure-fire way to create unstoppable momentum.

US I N G C HA N G E TO P ROP E L GROWT H

}Chris Cicchinelli, President and Chief Executive Officer, Pure Romance, explained how the company pivoted early in the pandemic and helped employees and distributors find success in the face of fear and uncertainty.

DEBBIE SQUIER PRESIDENT & FOUNDER

Connecting the RIGHT people with the RIGHT company

From our inception, people and culture have made the difference at Monat. IMPACT This Day doesn’t simply post jobs or reach into their contacts to find people. They search for the RIGHT people for us and our culture. That has been the difference.”

— RAYNER URDANETA / CEO, MONAT Global

7 2 7.743.992 4 IMPACTThisDay.com

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TYLER WHITEHEAD / C h i e f E x e c u t i v e O f f i c e r, Arbonne

PU RP O S E F IR ST

}Tyler Whitehead, Chief Executive Officer, Arbonne, challenged leaders to elevate their brands by balancing people and profits, offering value without requesting a monetary exchange, and to never lose sight of their purpose.

THE B U S I N ES S C A S E FOR D I VE RS I T Y, EQ U I T Y AND IN C LU S I O N

}Simon T. Bailey, Speaker, Author, Life Coach and Entrepreneur, delivered a masterclass on why executives should implement racial equity initiatives and hiring practices—not just because it’s the right thing to do, but because it’s a crucial business strategy for developing longevity and profitability.

GRO U N DB R E A KIN G NE WS , I N- D E P TH RESE A R C H

}Shelley Rojas, Publisher and Chief Brand Officer, Direct Selling News, shared DSN’s mission to serve, educate and edify the channel as the go-to resource for breaking global news, emerging trends and powerful stories, and announced exciting new offerings, like the textbased DSN VIP Community, the DSN Membership Program and the DSU On-Demand Library.

THE U P S A N D DOW N S OF H Y P E R GROWT H

}In a special excerpt from the Direct Approach with Wayne Moorehead podcast, Jesse McKinney, Co-Founder & CEO, Red Aspen, got candid about the realities of hyper growth, technology, social selling, product rationalization and more.

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S HIFT ING FO C US TO T HE C USTO ME R

}Laura Brandt, Chief Experience Officer, IDLife, shared how transforming the company’s compensation plan, communication and ecommerce solutions to become customer-centric, increased their customer acquisition by 28 percent.

T HE E NT R E PR E NE UR IA L MINDS E T

}In highlights from the Direct Approach with Wayne Moorehead podcast, Glenn Sanford, Founder, eXp Realty and CEO eXp World Holdings, discussed the inherent benefits and opportunities of entrepreneurship and how the conventional wisdom surrounding risk vs. reward is counterintuitive.

Thinking ERP? Think Squire.

S I M O N T. B A I L E Y / S p e a k e r, A u t h o r, L i f e C o a c h a n d Entrepreneur

A NetSuite implementation from Squire is unique: We take the time to understand your business goals and processes. Only then do we create a custom NetSuite solution that will meet your unique business needs.

EXP ER I E N C E T HE F U TU RE

}Joe Cannon, President, Young Living, explained how the future of business is experiential, and why showcasing the scientists and farms behind their essential oils have validated the authenticity of their products.

STI C K TO YO U R ST RATEGY

}Heather Chastain, Founder & CEO, Bridgehead Collective, commissioned leaders to commit to their strategic plans and rally their teams around them in order to develop a consistent stream of actions that will ultimately create success.

NETSUITE IS THE WORLD’S MOST DEPLOYED CLOUD ERP SOLUTION

Learn more at a briefing seminar at

ADA P T I N G I N C E NTI VES FOR TH E NE W NORM A L

USAGE OF TAGLINED }Rolf Sorg, Chief Executive Officer & Founder, LOGOS PM‑International AG, shared his company’s The tagline "AUDIT.TAX.ADVISORY" strategies for motivating only people andthe developing a accompanies logo in circumstances where context requires team mindset in the faceclarification of continued pandemic about what Squire can do for current and potential customers lockdowns and challenges. (the audience).

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.”

One-tagline version of full color logo

Secondary-tagline version of full color logo

One-tagline version of white logo

netsuite.squire.com ( 801) 225-6900

AUDIT · TAX · ADVISORY

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WAY N E M O O R E H E A D / Marketing, Branding, Direct-to-Consumer I n d u st r y E xp e r t & Po d c a st H o st

PU TT I N G T EC HN O LO GY TO WORK

}Wayne Moorehead, Marketing, Branding, Direct-to-Consumer Industry Expert & Podcast Host, took attendees on a deep dive into all things digital, sharing the ways technology is accelerating growth in the channel and how to leverage them.

TH E C EO R O U N DTA B LE

}In highlights from the DSN podcast, four CEOs, Joni Rogers-Kante, SeneGence; Sarah Shadonix, Scout & Cellar; Amelia Warren, Epicure; and Michele Gay, LimeLife by Alcone, engaged in a lively discussion about the importance of providing aspiring entreprenuers a viable opportunity through direct selling.

FIND IN G N EW S U C C ES S

}Al Bala, President & CEO of Mannatech, shared how Mannatech has implemented a disciplined focus on business basics over the last 18 months. The result? Mannatech has become a “new” success story after nearly 30 years in business.

TH E S O C I A L ST R AT EGY FOR NOW

}Ami Perry, VP of Business Development at NOW Technologies, spoke with Rallio’s CoFounder and CEO Chuck Goestchel and VP of Business Development, Ryan Hicks to discuss the impact of social selling on businesses and how the new NOW Social platform helps systematize, streamline and enhance social media strategies.

T HE POWE R O F T HE PIVOT

}In a special excerpt from the Direct Approach with Wayne Moorehead podcast, Dan Macuga, Chief Marketing and Comunications Officer, USANA, shared insights into the “do”s and “don’t”s in building relationships with brand ambassadors, influencers and athletes.

DO UBL ING DOWN O N DIG ITA L

}Chris Postler, COO at Pure Romance shared the company’s approach to technology and how it plays a vital role in all aspects of their business from communication strategies to analytics with Noah Westerlund, EVP at NOW Technologies.

C O MPE T ING WIT H O NL INE R E TA IL E R S

}In a special excerpt from the Direct Approach with Wayne Moorehead episode, Danny Lee, President & CEO, 4Life, shared 4Life’s retail pricing strategy and how it turned the Amazon challenge from being the elephant in the room into a positive piece of the business that benefits everyone. DSN

2022 SAVE THE DATE: Direct Selling University will be back live and in person next spring!

Join us Tuesday, April 19-Thursday, April 22 at the Omni Frisco Hotel, 11 Cowboys Way, Frisco, TX.

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YOUR CUSTOMERS ALREADY HAVE A PREFERRED FORM OF PAYMENT…DO YOU KNOW WHAT IT IS?

OU R SE RVICES I NCLU DE: ■ Gateway connectivity

to accept payments in 50 countries in 150 currencies.

■ Secure tokenization

technology.

■ Connectivity, APIs, and

systems linking to the most common global alternative payment types out of the box.

■ Comprehensive fraud

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With years of industry experience and the latest in machine learning and data processing technologies, we provide a customer-focused, customized gateway platform that helps you maximize revenue, control costs and deliver an excellent customer experience. Open new markets and grow sales internationally on a platform that will grow with you!

To discuss a customized solution for your business needs with our industry experts, please contact: info@lacorepayments.com

management solution build on the latest machine learning and artificial intelligence tools.

■ Proprietary Fraud Hawk tool

to analyze fraud patterns and fraud networks in depth so you can stay above the fray.

■ Advanced reporting and

real-time, interactive analytics.

■ Run smooth and clean

with online digital dispute management, integrated PCI compliance wizards, and security education features to keep you informed and up to date on the latest security and compliance trends– keep your costs low, focus on sales, and stay ahead of the curve!

C O V E R

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G E N E R AT I O N

THE

InnO vation

Generation

H OW T H E YO U N G ES T D I R EC T S E L L I N G E X EC U T I V ES A R E T R A N S FO R M I N G T H E I N D U S T RY

BY SARAH PAULK

Decision Makers Read DSN Direct Selling News subscribers are the top decision makers in the industry— 21% are owners and C-Level executives and another 41% hold senior management roles.

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800.279.5349 2021 SURVEY, VIEWER/READER ANALYTICS

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InnO va tion

T H E N E X T G E N E R AT I O N O F D I R E C T S E L L I N G E X E C U T I V E S H A S S O M E T H I N G T H AT N O L E A D E R BEFORE THEM NOW POSSESSES: A FRESH PERSPECTIVE.

Many of these young game changers grew up within the industry,

WHETHER THEY ARE TAKING OWNERSHIP OF THEIR SUPPLY CHAIN OR DITCHING PRINT TO GO ALL‑ DIGITAL, THESE GEN Z AND MILLENNIAL EXECUTIVES ARE REMODELING THE INDUSTRY.

either as distributors or as children of industry legends, and so carry the advantage of history as well. As a result, they are well‑versed on the value of compensation plans and distributor engagement, but also know how to leverage and embrace social media and digital footprints.

Within this group are leaders who have built massive operations from

scratch, like Red Aspen’s trio of young executives who capitalized on an underserved niche in the marketplace, and leaders who boldly carry on their family legacies in a contemporary way like Sinan and Emre Tuna of Farmasi.

Whether they are taking ownership of their supply chain or ditching print to go all-digital, these Gen Z and millennial executives are remodeling the industry and proving that the channel’s history of lingering too long in antiquated systems is now a thing of the past.

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Q&A WE TRY TO BE SUPER OPEN ‑MINDED AND FRIENDLY, AND WE

WANT TO HAVE VERY CLEAR AND DIRECT

Farmasi

COMMUNICATION WITH THE FIELD.

Q:

WHAT LESSONS FROM PREVIOUS GENERATIONS ARE YOU CARRYING WITH YOU INTO THE FUTURE? SINAN: I’m the youngest executive in the industry in the old world. I’m 25; my brother Emre is 27. We are a company that has been around 71 years, and that means a lot of legacy.

LAUNCHED / 1952

Q:

LED BY / SINAN TUNA, CEO (NORTH AMERICA) EMRE TUNA, CEO

HEADQUARTERS / ISTANBUL, TURKEY TOTAL DISTRIBUTORS & CUSTOMERS / 2.8 MILLION+ (Not all countries and territories distinguish between distributors and customers) 2020 REVENUE / 447 MILLION

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WHAT BUSINESS PRACTICES OR MINDSETS OF PREVIOUS GENERATIONS ARE YOU LEAVING IN THE PAST? SINAN: Being young brings a lot of benefits to the culture of our company. We try to be super openminded and friendly, and we want to have very clear and direct communication with the field.

We don’t like the old corporate barriers; we have friendships with all of our distributors. Strong communication with our distributors, I would say, is one of the things that makes us different from other companies in the industry. We’ve been involved indirectly since we were kids. It’s easier to hire a few professionals and let them do the work, but the return you’re going to get is not going to be the same effect as if you roll your sleeves up and get into the field.

A Q: WHAT INNOVATION HAS BEEN KEY TO

Q:

HOW HAVE YOU INNOVATED YOUR COMMUNICATION, MARKETING OR BRAND STRATEGY? SINAN: We have literally saved 50 percent of our manufacturing time—saving 60 days—by having all of our packaging and manufacturing take place in-house. The shipments coming from Europe or Turkey used to take 22 days before the pandemic.

Now it’s between 50-70 days. And vice versa, as shipping the products to another place takes the same amount of time. It’s also three times more expensive than pre-pandemic times. I think from now on, having a strong integration in the supply chain will be more important than ever.

FARMASI’S SUCCESS? SINAN: The compensation plan. People are in this industry for the opportunity, and the comp plan is the backbone of this business. To attract distributors, you have to offer them a great opportunity. At Farmasi, we believe this is the best opportunity and comp plan in the industry, especially in the U.S. and North America. From there, the most important thing is not just to offer it but to make sure it happens in real life.

Once we started growing our business in the U.S. and distributors started hitting ranks and building teams, they proved that all of the comp plan is true, do-able, reachable and maintainable.

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Q&A THERE ARE SO

MANY WAYS WE CAN LEVERAGE

TECHNOLOGY SO WE

NO LONGER HAVE TO

NeoLife

RELY ON FACE-TO-

FACE INTERACTIONS, ALTHOUGH THOSE ARE STILL REALLY

IMPORTANT FOR OUR BUSINESS.

Q:

WHAT LESSONS FROM PREVIOUS GENERATIONS ARE YOU CARRYING WITH YOU INTO THE FUTURE? KENDRA: Something my dad always instilled in me since joining the company was the importance of making investments in the right places and keeping in mind that we want to be here for generations to come. Managing with a long-term vision, keeping a lot of cash in the bank, and making sure we’re ready for anything so we never let down our business partners who have put their trust in us. Our first company value is “People are number 1,” and we make every decision through that lens.

LAUNCHED / 1958 LED BY / KENDRA BRASSFIELD, CEO

HEADQUARTERS / SANTA CLARA, CALIFORNIA

Q: WHAT BUSINESS PRACTICES OR MINDSETS

TOTAL CUSTOMERS /

OF PREVIOUS GENERATIONS ARE YOU LEAVING IN THE PAST? KENDRA: Some of the things I’d like to leave in the past are having to do business manually and being restricted to only in-person. There are so many ways we can leverage technology so we no longer have to rely on face-to-face interactions, although those are still really important for our business. We need to build relationships, but now we’re able to do all of those basic things, the fundamental things for our business growth, online and digitally.

SEVERAL MILLION ACROSS 50 COUNTRIES 2020 DISTRIBUTORS / 1.5 MILLION+

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HOW HAVE YOU INNOVATED YOUR COMMUNICATION, MARKETING OR BRAND STRATEGY? KENDRA: We have really put a focus on the technology we’re offering to our business partners and customers. We’ve been focused on digital tools that make everything shareable from your mobile device, so from the palm of your hand you can give people educational resources, product information, links to anything, and get real-time analytics of what’s happening on the other side of that. We’ve also placed a big emphasis on education and launched resources like NeoLifeU, an education platform where people can get a better fundamental understanding of how our bodies work and how nutrition plays such a huge role in our health.

Q:

WHAT INNOVATION HAS BEEN KEY TO NEOLIFE’S SUCCESS? KENDRA: Our secret sauce is our products and our unwavering commitment to product quality. You can have all the bells and whistles for sharing, but if you don’t have a strong product that truly makes a difference in people’s lives that makes them feel better, live better and look better, it’s hard to have traction. Having an incredibly strong Scientific Advisory Board lead our product development has been a key innovation for our success.

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Q&A IF YOU’RE JUST

TALKING THE TALK BUT NOT WALKING THE WALK, OUR

GENERATION WILL

SEE THAT. YOU HAVE

Red Aspen

TO BE GENUINE

AND AUTHENTIC.

Q: WHAT LESSONS FROM PREVIOUS

GENERATIONS ARE YOU CARRYING WITH YOU INTO THE FUTURE? JESSE: There is an honor and integrity to direct selling that I definitely learned about as I worked in the industry prior to Red Aspen. You have to be all in it for your reps—it’s not about you; it’s about serving them. That culture of integrity and that desire to serve others is something that I take from my experience and so many others who have come before us in direct selling.

LAUNCHED / 2017 LED BY / JESSE MCKINNEY, CEO GENIE REESE, CSO AMANDA MOORE, COO

Q: WHAT BUSINESS PRACTICES OR MINDSETS

HEADQUARTERS / BOISE, IDAHO TOTAL CUSTOMERS / HUNDREDS OF THOUSANDS+ TOTAL DISTRIBUTORS / 10,000+ 2020 REVENUE / 20 MILLION

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OF PREVIOUS GENERATIONS ARE YOU LEAVING IN THE PAST? JESSE: There are things we want to do differently.

We are millennials, and we looked at things like catalogs and said, ‘Why do we have to have a catalog when we have a social media profile and link?’ Being tied to a selling season—specifically a catalog season—doesn’t allow you to be nimble. We are going to launch products on our own schedule, give ourselves ultimate flexibility by not printing anything on paper and instead dive in with the internet and use social media to its full capacity.

A Q:

HOW HAVE YOU INNOVATED YOUR COMMUNICATION, MARKETING OR BRAND STRATEGY? JESSE: My generation is skeptical. We are pros at discovering what is out there and how it works. I, myself, don’t ever go meet a new person, whether it’s a vendor or supplier or friend, without Googling them first to learn about them. To think someone would dive into a business opportunity blindly is a notion of the past. So, we took all of the things typically hidden behind a firewall where only reps could see it—our training, product information, news, all of it—and made it so that anyone could access it. That’s been a good business decision for us.

Q:

WHAT INNOVATION HAS BEEN KEY TO RED ASPEN’S SUCCESS? JESSE: Our mission. As a millennial—and I’m sure younger generations would echo this—it’s not about how you operate, it’s why you operate. If you’re just talking the talk but not walking the walk, our generation will see that. You have to be genuine and authentic.

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Q&A WE LIKE TO PUT OUR ATTENTION TOWARD THE CUSTOMER

EXPERIENCE AND WE DO THAT

THROUGH PRODUCT

ZYIA Active

INNOVATION,

TECHNOLOGY AND A GREAT CULTURE.

Q: DOES YOUR GENERATION APPROACH THE

LAUNCHED / 2017 LED BY / ERIN BRADLEY, Founder & CEO JEREMIAH BRADLEY, Founder

& Chairman of the Board

HEADQUARTERS / DRAPER, UTAH TOTAL DISTRIBUTORS / 40,000+

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DIRECT SELLING INDUSTRY DIFFERENTLY THAN PREVIOUS GENERATIONS? ERIN: We like to put our attention toward the customer experience and we do that through product innovation, technology and a great culture. We love that at ZYIA we have a product that sells itself so we are different from many other companies in our channel since there is no need to be pushy. The product sells itself and most of our product is sold to actual customers.

A Q:

WHAT BUSINESS PRACTICES OR MINDSETS OF PREVIOUS GENERATIONS ARE YOU LEAVING IN THE PAST? JEREMIAH: Many businesses have built [upon] recruiting or compensation and we feel like that is not a sustainable or ethical business. We believe in focusing on the product, the customer and the customer experience. The key is to figure out how to use technology [and] social media and still keep the personal aspect at the forefront.

Q: WHAT INNOVATION HAS BEEN KEY TO

ZYIA ACTIVE’S SUCCESS? ERIN: One of the keys to success for us is that we launch product every single week to keep reps and customers excited and active. The product is the key to our success. DSN 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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REM AR K AB LE SUC C ES S IN F IV E Y E A R S O R LES S .

BY COURTNEY ROUSH

HE DIRECT SELLING ASSOCIATION ESTIMATES that there are approximately 1,100 direct selling companies in business in the United States in any given year.

It’s no secret that some direct selling startups never achieve the kind of momentum

required to build and sustain a successful business. But we can point to examples of startups who had that something—the expertise, the vision, the infrastructure, the products, the message, the timing—to distinguish themselves and reach what Malcolm Gladwell, author of the New York Times bestseller How Little Things Can Make a Big Difference, calls “The Tipping Point,” or the “The Stickiness Factor.” It’s that certain something—the culmination of a series of small decisions—that makes the difference between success and failure, and it may seem elusive.

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In the last five years, the direct selling industry has witnessed the remarkable growth of several startup companies.

I

N THE LAST FIVE YEARS (since 2017), the direct selling industry has witnessed the remarkable growth of several startup companies. They were on their way long before the global COVID-19 pandemic was a reality and have successfully weathered the challenges of the last 19 months.

Based on our research, these are some of the fastest‑growing startup companies that are five years old or younger and have current monthly sales of at least $1 million. Note: This isn’t an exhaustive list. If you’re not on it and should be, please let us know: editor@directsellingnews.com.

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BELLAME

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QuiAri

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Color Street

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Red Aspen

DotDotSmile

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RevitalU

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Velovita

Green Compass

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Scout & Cellar

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Tori Belle Cosmetics

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From the get-go, it’s important to focus on building a community instead of just building a company.

— SA R A H S H A D O N I X, FO UN D E R / CEO, Scout & Cellar

This kind of growth is especially noteworthy when you consider the reality: Most startups fail. Here are some startling, albeit probably unsurprising, statistics about startup failure rates across all industries: n n

n

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About 90 percent of startups fail (Failory).

10 percent of startups fail within the first year (Failory).

Across all industries, startup failure rates seem to be close to the same (SBA).

Failure is most common for startups during years two through five, with 70 percent falling into this category (Failory).

The number-one reason why startups fail is due to misreading market demand—this is found in 42 percent of cases (CBInsights).

Kudos to all of these direct selling companies for their extraordinary growth—made that much more extraordinary given the challenges of the last two years. Direct Selling News had a chance to speak to leaders at three of them to learn more about their rise to success.

An Unwavering Vision

“Chase the vision, not the money; the money will end up following you.”—Tony Hsieh, CEO, Zappos. For QuiAri Founder and CEO Bob Reina, that vision was born during his tenure as a Deputy at the Hillsborough County (Florida) Sheriff’s Office. While serving in the role, Reina witnessed individuals and families with

small children who were struggling to get by—many of them in poor health. “I wanted to help, but I didn’t have the means,” he says. “I turned to the direct selling industry to supplement my income and created a way to help others.” After becoming an independent distributor for another health and wellness direct sales company and working his way up through the top ranks, Reina launched QuiAri in 2019 based on a key ingredient: the Maqui Berry, after working with scientist Dr. Juan Hancke to develop a proprietary extract, MaquiX®, that supercharged Maqui’s antioxidant power up to 10 times and combined it with essential vitamins, minerals and greens to deliver benefits like weight management and improved energy. Just two years after the company’s founding, they have an independent sales force of 50,000 selling QuiAri products worldwide.

Sarah Shadonix had a vision, too. She left behind a career in law for the wine industry and later opened Scout & Cellar, a direct seller of wines that are free from toxic pesticides and synthetic processing aids and are low in sulfites. That vision, now trademarked as Clean-CraftedTM wines, is “our standard for growing grapes and producing wine that celebrates its most authentic form, from the ground all the way to your glass. While this certainly wasn’t the easy path, it defines who we are as a company and how we’re impacting people and the planet,” Shadonix says.

Her vision has resonated strongly with the company’s nearly 20,000 independent consultants and their customers throughout the United States. Scout & Cellar has grown more than 70 percent year over year since its founding in 2017 and now has its eye on its next goal: becoming one of the United States’ top 30 wineries.

The vision of a startup should be an integral part of its culture, and it should be communicated at every opportunity. Reflecting on the key decisions and philosophies that made the difference for her company over the last four years, Shadonix says, “If your team doesn’t believe in the company and isn’t excited about where it’s headed, growth will be exponentially more difficult. From the get-go, it’s important to focus on building a community instead of just building a company.” 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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“A lot of companies go out and say ‘We want to be a $100 million company,’ and that sounds great, but that’s not really who we are,” says Jesse McKinney, Co-Founder and CEO of Red Aspen, a direct seller of beauty products that reached its first million within five months and its second million three months later. Last year, the company topped $20 million in sales. “If you put your Brand Ambassador and her needs first, the numbers will follow,” McKinney says.

“If you can make women feel successful, motivated and valued—that their destiny can be their own— that’s what breeds an incredible culture, one where we can support one another. I’ve been fortunate in life to have many female mentors. It’s so important that we support one another and lift each other up,” McKinney says. “This is one of the places where that happens, and I’m so proud of that.”

Bold Decisions and the Freedom to Make Mistakes

Reina opened his company in more than 200 countries worldwide right out of the starting gate, bucking the typically cautious approach companies of all sizes take to international expansion. “We knew from the very beginning that we had the resources and experience to really make a difference and help people, so we decided to go all in without looking back,” Reina says.

The company had the IT infrastructure to support its ambition. Two of its more innovative offerings are Same Day Pay, which delivers commissions within five minutes to independent distributors (called Promoters) anywhere in the world; and a real-time “Free Tour” marketing system launched Sept. 1, which enables Promoters to build their business around the clock through a seven-day temporary position in the independent sales force while they learn about QuiAri products and the business opportunity. Current Promoters share the link with prospects and let the system do the explaining.

Those prospects who decide to become Promoters

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If you put your Brand Ambassador and her needs first, the numbers will follow.

—JESSE MCKINNEY / CEO, Red Aspen

within seven days may have the opportunity to lock in their position within the genealogy. The Same Day Pay benefit has proven to be especially attractive to prospects, Reina says, and it’s one of the top reasons people become QuiAri Promoters.

Red Aspen launches a minimum of one new product every week (yes, you read that right). This kind of speed, McKinney believes, is precisely what keeps its distributors on their toes and engaged. “It’s a lot of work for us on the back end, but we always have something new and fresh to talk about.” Red Aspen’s marketing department moves just as fast. In addition to distributing its own content for distributors to share, the company involves the field in its marketing efforts, training them to make their own marketing material and selecting some for widespread use.

What made the difference during the pandemic?

Having the right infrastructure in place makes it possible for startups to take risks and course correct when necessary while remaining close to distributors. Under the leadership of McKinney and her cofounders, CSO Genie Reese and COO Amanda Moore, Red Aspen has made a deliberate effort to remain small and nimble, employing a staff of 50 at its corporate headquarters, dubbed “The Treehouse.”

Everything—from shipping to customer support to logistics—is maintained in house. And, interestingly, the company’s sales force training and development

materials aren’t behind a back-office firewall; they’re accessible to the public via the web in order to promote transparency about the company, its products and business opportunity. That and the company’s purely digital approach to sales and marketing (it uses no paper) have allowed Red Aspen to “get in front of more eyes faster than you would if you were throwing a party with ten friends,” McKinney says.

“That’s lent itself well during the pandemic.”

At QuiAri, Reina installed the kind of IT and brand development expertise necessary to support a billion-dollar organization before the company had made its first dollar.

There was no time for a learning curve, he says, when his vision was for the company to grow quickly but organically.

“Our business model is 100 percent scalable and 100 percent remote. After just two short years in business, we’re just getting started.”

More than 19 months after COVID-19 officially became a pandemic, we’ve once again been reminded of our industry’s inherent strengths: a business model that allows for flexibility, personalized service and the power of Half Page ad-October.pdf 1 9/14/21 12:27 PM personal connections that can permeate even the most

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digitized of interactions, robust education and tools that make professional development possible from anywhere a distributor might be—and, of course, technology that makes processes like online sales, inventory management, customer acquisition and scalable growth possible.

Above all, though, leaning into their respective values may have been the single most influential differentiator in the ability of these successful companies to thrive at a time when so many others, both within and outside of our industry, struggled to stay afloat. In fact, if their examples can teach us anything, it’s that values anchor and guide an organization as it moves through the kind of change necessary for growth and longevity—whether those changes result from a global pandemic, the occasional misstep or simply a commitment to continuous improvement.

“Our principles shape every aspect of who we are, how we give back and how we approach business in general,” says Shadonix. “By staying grounded in those values, we’ve been able to remain true to who we are as a company through the opportunities and challenges that come with growth.” DSN

IF YOU FEEL LIKE YOU’RE USING ONE OF THESE, ISN’T IT TIME TO SCALE UP AND PLAY WITH THE BIG KIDS? nex.io/big-kids

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M E X I C O

BET TERWARE DE ME XICO /

Mexico’s New Direct Selling Giant Betterware de Mexico is leveraging big data and its streamlined distribution center to become one of the most recognizable brands in Mexico and beyond.

BY SARAH PAULK

I

N THE SUBURBS OF GUADALAJARA, a direct selling giant is taking shape.

Betterware was first launched in

England in 1928. In 2001, Luis Campos purchased the Mexico and Latin America division from Betterware UK. He then

FOUNDED:

1928 HEADQUARTERS:

El Arenal, Jalisco, Mexico TOP EXECUTIVE:

transformed the business model and

Luis Campos, Executive Chairman Andres Campos, Chief Executive Officer

strategy and updated its name.

PRODUCTS:

Home Goods NASDAQ:

(BWMX)

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The vision for Betterware de Mexico was always to become a relevant company nationally and also internationally.

— LU I S C A M P O S / E xe c u t ive C h a i r m a n

Betterware de Mexico, a household product innovation company, now operates from a sustainably built distribution center in Zapopan, Mexico, that was designed to ship more than 180,000 orders and pack more than 1.5 million products per day.

These state-of-art headquarters are part of Luis Campos’ grand vision to balance productivity, environmentally friendly design and systems that nurture the wellbeing of employees while growing on the national and international stage. On-site staff have access to a wide variety of amenities, like a gym, hair salon, laundry facilities, medical services, cafeteria and daycare. Outside are a soccer field and basketball and volleyball courts surrounded by a community nursery where the company invested in planting 55,000 plants and 4,000 trees.

This sprawling campus is part of Luis’ plan to build a powerhouse brand in the Mexican market.

In the second quarter of 2021, the impact of his vision was put into numbers when the company’s EBITDA reached $36.3 million, a 92 percent increase over the same period in 2020.

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Triple-Digit Growth

Day-to-day operations for the company now fall to Andres Campos, Luis’ son, who was named Chief Executive Officer two years ago, while Luis continues to focus on business strategies and relevant corporate events that lead the company toward his founding priorities.

“The vision for Betterware de Mexico was always to become a relevant company nationally and also internationally,” Luis said.

This relevance in Mexico happened organically, but attaining significance on the international stage has proved to be a challenge. So, in 2020, the company took a major step toward its goal by becoming publicly listed on the NASDAQ stock exchange.

“We were already a very institutional company with first-class auditors and a very strong board of directors,” Luis said. “NASDAQ has given us and will continue to give us visibility and credibility not only in Mexico but in the U.S. and worldwide.”

The changes Luis instituted more than two decades ago have led the company to embrace its evolution and adapt to a changing market landscape. Now, with Andres´s influence, the company is once again entering a new phase of transformation.

“We are a hybrid between digital and personal contact,” Luis said. “This helped a lot during COVID

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?

because our sales force, our distributors and associates were able to work from home with digital tools that we have already been offering them for the past five to six years. That’s one of the reasons we grew so much last year.”

And grow, they did. In the third and fourth quarter of 2020, Betterware de Mexico saw triple-digit growth over the previous year. In the first quarter of 2021, net sales increased 205 percent year-over-year.

“This shows another competitive advantage we have, which is flexibility and elasticity,” Campos said. “We react quickly to extraordinary events that we have to face.”

Data-Driven Decisions

To accommodate this rapid growth and prepare for the next wave of success, the company is focusing on three pillars: business intelligence, technology and product innovation.

By observing and collecting data points within its operations, customer base and marketing selections, the company’s on-staff anthropologists, actuaries, geographers and other experts can obtain and analyze millions of pieces of data to determine the target demographic’s likes and dislikes, and identify the next direction the company should take. Studying the business from these often-overlooked angles helps the leadership make data-backed decisions as they introduce new products, services and marketing campaigns. 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

ARE YOU INVESTING IN THE RIGHT KIND OF MARKETING? Get access to this FREE VIDEO where Brett Duncan shares some ways to stray from the status quo when it comes to how marketing works for a direct sales company.

StrategicChoicePartners.com/ModernMarketing StrategicChoicePartners.com/ModernCompPlan

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“We have a very strong business intelligence area in the company, manipulating millions of data points, and we base our decisions on big data and not only good wishes or intuition,” Luis said. “In terms of sales, we track the performance of distributors every day and every week, and have information regarding the share of wallet, and the way we could increase the share of wallet in the marketplace.”

Within the first six months of 2021, the company’s associates (which the company describes as “consistent consumers” who frequently turn to selling more than they consume) numbered 1.2 million and distributors totaled 64,000. Now, reaching 100 percent purchase satisfaction is the company’s latest self-imposed challenge.

“Consumers want to have a good experience buying,” he said. “Whether online, retail or directto-consumer, consumers want to have a very good experience, where a product is easy to buy and reliable.”

A Clear Roadmap to Success

This year, the company doubled down on strengthening its presence in the Mexico market and increased its efforts to become a household name brand through strong advertising campaigns on social media platforms, television and print advertising mediums.

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Luis also continues to remain devoted to his founding vision of turning Betterware de Mexico into an internationally recognized brand, launching a pilot program in Guatemala, which, in the first 18 months of operations, has already created double-digit growth and became profitable.

This organic growth, Luis said, will always be the company’s priority.

“It’s self-sufficient in terms of cash, and we plan to extend our Guatemala operations over the next two years into Costa Rica and Panama,” he said. “And over the next two to three years, on to Colombia and Peru. The size of these two markets together, Colombia and Peru, is 60 percent of the Mexican market.”

The Company’s strong infrastructure and cash flow also affords it the opportunity to pursue strategic acquisitions. This will also be an important, albeit smaller portion of the company’s future expansion.

“If we find a direct-to-consumer company where we can replicate our business model and accelerate the growth of the company, we would probably evaluate the possibility,” he said. “We have a clear roadmap to keep growing in the future, and we still have plenty of opportunity in terms of market penetration.”

The company is already a powerhouse in the Mexico market, launching more than 300 new products each year. Still, Luis said the leadership will continue to invest in technology that improves the sales experience for distributors and associates and drive growth that increases satisfaction for all parties involved.

“I have always believed in teamwork, and something I told our people 20 years ago was that our mission should be, and still is, to create more and more opportunities for those who and have the courage to seize the opportunity,” he said.

“Betterware de Mexico is a dynamic organization with a strong team that is results driven. This has led to our consistent strong growth.” DSN

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SPECIAL

THANK-YOU

to all our sponsors for their generous support of DSA ENGAGE 2021.

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Micro-Changes, Macro-Impact Little Things Lead to Big Impact.

BY SARAH PAULK

H

OW DO YOU FIX something that isn’t broken? You don’t. You simply make it better.

For LifeVantage, a “health and wealth”

company whose revenues for the fiscal 2021 year reached $220 million, it’s this focus on improving what’s already working that will define the company’s next season of growth.

FOUNDED:

2003 HEADQUARTERS:

Salt Lake City, UT TOP EXECUTIVE:

Steven Fife, CEO PRODUCTS:

Health and Wellness, Personal Care NASDAQ:

(LFVN)

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We feel it is important to really lean into the network marketing message as part of who we are.

— J E S S E A L L E N / Senior Vice President of Marketing, L i f e Va n t a g e

Short of a brand overhaul, the company is entering a period of renewal as it refreshes its product line, website and resources. It’s these small changes, the intentional improvements to details, that the company expects will create a burst of momentum and provide Distributors with the tools and resources they need to further their business goals and better serve customers.

But why now? LifeVantage’s CEO, Steve Fife sees this moment as a time for course correction and said the company has shied away from its central focus and unnecessarily complicated its messaging.

“The motivation for this refresh is really to return to the roots of our Protandim Nrf2 Synergizer,” Fife said. “It’s our most compelling message for our consumers and Distributors, and it’s a product like none other on the market today in addressing health concerns caused by oxidative stress. We kind of got away from that messaging a little bit, and this is an effort to simplify and refocus on the strongest message we have.”

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New Look, New Feel

LifeVantage’s Distributors, as well as its customer base, are both overwhelmingly female, with women accounting for more than two-thirds of each category. And yet, LifeVantage Senior Vice President of Marketing Jesse Allen said, the company’s appearance, tone and messaging has been incorrectly targeting a male demographic.

“The website currently has a very masculine feel,” Allen said. “We want a site that our customers and Distributors are proud of and want to associate with.”

A new look and voice are important details in this upgrade, so the company’s refreshed digital elements will also speak to consumers from a lifestyle perspective, relying on science to validate the product while positioning it in a way that helps potential buyers understand how it will impact their day-to-day experience. As a result, both the product and opportunity will be more approachable, relatable and easier to explain.

Be CustomerCentric Recognized.

The Customer-Centric Recognition (CCR) Program celebrates companies that are leading the way toward 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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“This is not a departure from who we are, what we stand for and what we’re about,” Allen said. “It’s an approach to make it easier to talk about and understand the purpose of our products and the business side of our organization.”

Leveraging the Technological Pivot

Like the rest of the world, LifeVantage leaders have learned how to further embrace technology to keep the company’s Distributors connected in a socially distanced time when in-person events and conferences haven’t been possible. During the COVID-19 pandemic, digitally-led presentations and trainings became the norm.

Now, in an effort to leverage how readily Distributors and consumers have embraced this technological pivot as part of its refresh, the company has instituted several significant enhancements to its LifeVantage app, an exclusive Distributor tool for prospecting, team training, education and communication. w w w. d i r e c t s e l l i n g n e w s . c o m 8 3

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

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■ 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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Over the summer, the company rolled out a promotion-based program that sought to reward behaviors rather than results. Distributors were able to measure their performance against that of their peers, participate in challenges and engage in healthy competition. Meanwhile, the company’s leaders watched in real-time as the new gamification process tangibly impacted Distributor success.

“We were able to track behavior and incentivize the behaviors that led to either product sales or Distributor recruitment,” Allen said. “What we saw was a massive increase in messages and assets shared through the app and a phenomenal close ratio of 12 percent. That’s where we saw real success.”

An upgraded continuation of this gamification promotion is part of the refresh, and the company has rolled out new incentives and expanded messaging functions that make sharing across social media platforms simpler. Customer onboarding was also be streamlined, allowing Distributors to prioritize and quickly manage consumer engagement and relationship building, and artificial intelligence has been implemented to identify which customers are at risk for leaving the company and what action steps Distributors can take to help retain those people.

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“We have to provide additional value to Distributors and a point of differentiation,” Allen said. “We feel that with the technology we have— the replicated website, our app and now this integration—we’re changing how we use technology to change how Distributors run their businesses. It’s a simplification so that whether they are a seasoned network marketer or brand new, the technology puts them on an even level so that everyone can hit the ground running and be successful right from the very beginning.”

Doubling Down on Direct Selling

THE INDUSTRY’S NEWEST AND MOST ADVANCED DIRECT SELLING SOFTWARE

SUPPORT ANY SIZE COMPANY ANYWHERE IN THE WORLD

FULLY EXTENSIBLE API ARCHITECTURE

COMPLETE SOLUTION INCLUDED

EXTREME CONFIGURABILITY

EMBEDDED BI REPORTING

TOTALLY MOBILE & SOCIAL

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FABULOUS PARTY MANAGEMENT

In an unsettled global economy, with closures and regulations in flux due to the lingering pandemic, the company is thoughtfully eyeing multiple markets that show promise as potential new homes for LifeVantage’s international operations.

“We’re in the process of launching into the Philippines in the first quarter of 2022,” Allen said.

“We’re aggressively pursuing, analyzing and evaluating which markets to go into next, when is the right time for those expansions, and how we will go about doing it.”

In the meantime, the company plans to focus on the little things that add up to make a big impact.

And unlike many of its competitors, the company’s leadership plans to double down on the part of itself that many companies seem to be distancing themselves from the channel itself.

“We feel it is important to really lean into the network marketing message as part of who we are,” Allen said. “We have a clear identity: Our mission is to leverage the power of relationships to unlock the health and wealth of every life we touch. A number of our peers try to shy away from it and hide from it and talk around being in that channel.

We have immense pride in our Distributors and in the channel and industry. We want to lean into that, into who we are and why we’re proud to be part of network marketing.” DSN

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Change: Mindset Matters

BY TONY JE ARY - THE RESULTS GU Y

E

VERY DAY SOMETHING CHANGES in our lives, be it personal or professional. As leaders, we need to ask ourselves:

1. How well do I manage change: As an individual?

As a leader?

2. What is the secret to managing change?

The bottom line is that the most successful people manage change effectively by managing their mindset. Although you can’t control everything, you can control your mindset.

Without change, there is no innovation, creativity or incentive for improvement. Change is inevitable.

TM

There are four main categories to look at in the change puzzle:

1. Life Changes

The world keeps moving on. Improvement makes life better. However, sometimes life changes can throw you a curveball!

You’ve always got to manage your mindset. Be willing to ask for help. Reframe your perspective.

Focus on the future and look for positives. Life is ever-changing. It’s better to accept it and positively approach the future.

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2. Individual Changes

Ask yourself—How well do I personally handle change? Here are a few statistics regarding the general population’s feeling about change. Where are you on this scale? n n

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Negative: 30 percent are resistant to change Indifferent: 50 percent don’t have a strong feeling either way Positive: 20 percent embrace change

People have their reasons for feeling the way they do. Here are a few thoughts to consider when facing a person who is negative and resistant to change. They may be experiencing or thinking any of the following.

1/ Loss of control 2/ Excess uncertainty 3/ Unwelcome feelings of surprise 4/ Things seems different 5/ Loss of face 6/ Concerns about competence 7/ More work 8/ Ripple effects 9/ Past memories 10/ Resentment Indifference can frequently be the biggest challenge to deal with because this group feels no action is required at all for a different set of reasons: 1. Based on a belief that ‘this too shall pass,’ it is just another attempt to change what will inevitably remain the same anyway.

2. Individual doesn’t believe change requires anything on their part.

3. May feel that it just does not apply to them.

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Positive attitudes about change can create a whole new perspective. Embracing change can be a beautiful thing! Time has proven out that the most successful embrace change with a positive, solution-oriented mindset that focuses on possibilities.

3. Leadership Changes

How do we best lead others through change? There are some specific strategies you can take to ensure your team is moving together in the right direction to make a smoother transition. For example, have open and transparent communications, be available and have effective meetings.

First, you need clarity. Define where you are going by sharing the vision with everyone.

Understand and communicate the “why” about the changes that are coming. Let everyone know how all stakeholders can win with these changes.

Explain how the vision is different, better, more compelling now than before. Ask your team questions/have them ask you questions to make sure they understand the rationale.

Then be prepared to manage organizational resistance.

Phrase your communications to be more on the human side because people matter more than plans and processes. Understand the organization’s culture and be prepared to overcome objections that will arise.

Predict what the outcome will be from these changes to avoid surprises and tackle uncertainty about the future.

Speak to the individual when explaining expectations, measurements of success and what success really means.

Be an Influential leader, one who can instill hope for the future. Hope brings several major benefits to a culture. It renews faith, builds confidence, promotes empowerment with clarity, helps increase productivity and instills teamwork.

4. Organizational Changes

What’s your organizational culture? Does it foster change and working as a High Performing Team? Let’s do a quick exam of a culture that fosters a High Performing Team by incorporating changes into the DNA of an enterprise while driving operating results.

High-Performing Teams are successful at incorporating changes. They do this by using three strong concepts within their leadership behaviors. Accountability is one essential element, where you do what you say you are going to do, by the deadline or before. Communication is the second essential element, whereby you have a plan and communicate it, repeatedly. Turn the unknowns into knowns for your team. Trust is the third essential element, where leadership consistently follows through on promises and commitments.

Organizations thrive when change is a part of their cultural DNA. Life is ever changing…it’s better to accept it.

Always cast a clear vision with hope for the future. Be in the right camp and embrace change.

Remember—get your head on straight. Manage your mind. Mindset matters! 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.

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Now Available Direct Selling: A Global and Social Business Model A timely and influential work produced by leading academics and field experts to mainstream understanding of the direct selling channel and its benefits to society.

Hard copies and ebooks can be purchased by visiting: DSEF.ORG/PURCHASE

DSEF would like to thank the authors for donating the proceeds from all sales of the book to support the mission of the Foundation.

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Giving Thanks for Our Blessings

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WE HEAD INTO THIS upcoming season of giving thanks, direct sellers have much gratitude

in our hearts.

I look back on these past 23 months and consider just how much has changed: so many of us have grown, and we have extended our hands to help others by sharing our collective strength.

Sadly, many have faced personal loss, and the tragedy of these past months is something we stand before with humility and awe.

But even in light of all this, I know that who we are as direct sellers has not changed: our community’s resilience has given us even greater strength, and together we look toward the horizon of what is yet to come.

DSA’s most recent Growth & Outlook Survey noted that participation in the direct selling channel grew by 13.2 percent in 2020. 7.7 million entrepreneurs now participate in direct selling on a part-time or full-time basis. The direct selling channel generated $40.1 billion in retail sales in 2020—this up 13.9 percent from the previous year. Demand for products made by our channel’s brands has grown. There were 41.6 million preferred customers and discount buyers purchasing through the direct sales channel, with notable growth coming from preferred customers.

We have worked hard, and we have stuck together. Indeed, direct selling is in a position of strength, and more feel the need to be a part of DSA. DSA will offer an even bigger tent for meeting the needs of companies and individual executives, even when they don’t fit the requirements of traditional direct selling categories.

The Associate engagement category allows individuals formerly employed by a DSA member company to continue participating

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

in DSA activities to remain close to their peers and current with the channel’s developments.

Similarly, the Affiliate engagement category allows individuals currently employed by nonDSA member direct selling companies that are otherwise eligible for DSA membership to engage with DSA as their company considers full membership for a year.

As direct selling companies from outside the U.S. seek to benefit from DSA’s vast experience and resources, the Global Membership allows companies from across the world the opportunity to tap into the over 100 years of U.S. DSA experience. Global Associates will have access to all of the research services, educational resources, and networking opportunities enjoyed by full-active DSA members, as well as discounted registration for DSA event registration and unlimited access to the members-only section of the DSA website.

Organizations that share DSA’s dedication to and protecting independent contractor’s ability to build a business that doesn’t otherwise follow the direct selling model can benefit from the Association’s experience and insights as a Corporate Affiliate. Loyal DSA Supplier Partners can continue to participate at the Basic Supplier Partner Level or become Premium Supplier Partners to access a broader range of activities.

Please direct any questions regarding these participant categories to Nancy M. Burke, Vice President Membership, DSA, at nburke@dsa.org.

As we look toward Thanksgiving 2021, we do so with mindfulness for our blessings: a community whose resilience and adaptability have enabled our channel to thrive and those whose ceaseless and selfless work has enabled us to maintain our daily life during the pandemic’s ups and downs.

To all, have a Happy Thanksgiving. DSN

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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.

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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.

METRICS GLOBAL, INC

LaCore Payment Technologies is a payment platform designed to support direct selling companies globally. Our services include: Global connectivity to 150 countries in 50 currencies, including direct connectivity to most alternative payment types, secure tokenization, customized fraud solutions, including our proprietary Fraudhawk™, advanced reporting tools, and online dispute management.

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LACORE PAYMENT TECHNOLOGIES

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

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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

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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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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.

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MULTI IMAGE GROUP

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Handle fulfillment for 14 direct sellers.

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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.

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

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ROYAL CARIBBEAN INTERNATIONAL

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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.

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Global Operations Management Software.

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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@DIRECTSELLINGNEWS.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.

w w w. d i r e c t s e l l i n g n e w s . c o m 9 5

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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