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DIRECT SELLING NEWS
VOLUME 17 / ISSUE 12
DECEMBER 2021
THE BUSINESS OF
DOING GOOD MAKING AN IMPACT. TAKING A STAND.
LEADING BY EXAMPLE /
FOUNDERS THAT STARTED AS DISTRIBUTORS THE BUSINESS CASE FOR DIVERSITY / WHY EQUALITY & EQUITY ARE CRUCIAL
KYÄNI / THE TIME IS NOW OOLA / A NEW PLATFORM TO CHANGE LIVES
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C O N T E N T S D EC E M B E R
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F E AT U R E S
Leading by Example B Y S A R A H PAU L K
Trends Shaping the Gig Economy B Y J O H N T. F L E M I N G A N D R O B E R T A . P E T E R S O N
40 60
SPOTLIGHTS
Kyäni:
Rising Together B Y B E T H D O U G L A S S I LC O X
Oola:
Changing Lives through a New Platform
B Y J E N N Y V E T T E R
68 74 DEPARTMENTS
80
WORKING SM ART /
Four Tips for Treasurers
B Y
86
NEW PERSPEC TIVES /
The Business Case for Diversity, Equity and Inclusion
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J O S E P H B E R TA L L I
S I M O N T. B A I L E 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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COVER STORY
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THE BUSINESS OF DOING GOOD
CONTENT CONTRIBUTORS
Simon T. Bailey Joseph Bertalli John Fleming
Taking a Stand. Making an Impact.
CONTRIBUTORS
Beth Douglass Silcox Lisa Robertson David Lee Jenny Vetter Sarah Paulk
BY BETH DOUGL ASS SILCOX
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A Season to Celebrate THE HOLIDAYS ARE UPON US—I hope each of you are enjoying this special time of year with those that mean the most to you. This season reminds each of us of the importance of surrounding ourselves with family and friends; of giving back to our community; of creating an environment where everyone is welcome—an environment where there is always room at the inn. These are some of the themes we cover in this month’s issue of Direct Selling News. In our cover story, we examine several of the companies in the channel committed to making the world a better place. And we discuss the surprising benefits to their bottom line. We also offer some practical tips on how to identify and edify the causes that mean the most to you and to your customers and field. We also take a deep dive into diversity and inclusion. Direct selling has always prided itself on creating a viable opportunity and community for everyone. It should come as no surprise that the companies actively prioritizing inclusion are attracting more customers and distributors. DSU keynote speaker Simon T. Bailey generously shares his research in this month’s issue.
I think you’ll also enjoy our feature highlighting some of the most successful founders in the channel. What do they all have in common? They started out as distributors—learning the ups and downs of our channel from the ground up, pouring their experience and knowledge into dynamic, thriving companies. This issue also features in‑depth profiles on Kyäni and their resurgence and resilience in the face of unspeakable tragedy; and Oola, a fascinating startup with a product all of us benefit from—personal development tools and resources. Finally, I’d like to thank our new Platinum Members: It Works!, Plexus, Prüvit and SeneGence, and our Premier Partners: Exigo, InfoTrax and Nexio. Your generous patronage and support allows DSN to provide even more indepth research, advocacy, journalism, recognition and support to the channel. From the DSN family to yours, we hope you have a safe and happy holiday season. Here’s to another amazing year!
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Shelley Rojas | Publisher & Chief Brand Officer | srojas@directsellingnews.com @directsellingnews
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/ INDUSTRY NEWS /
The Month in News Affecting Our Channel 12 / News In Brief 18 / Insights 20 / Executive Announcements 24 / Direct Selling Capital Advisors Stock Watch 28 / Customer-Centric Recognized Companies
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NEWS IN BRIEF Kannaway’s Japanese Division Sets New Monthly Revenue Record
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annaway, the subsidiary of Medical Marijuana, Inc., experienced a record-setting revenue month in September 2021. The manufacturing subsidiary for Medical Marijuana, Inc. also experienced its largest revenue month in the division’s history. “When asked what the greatest opportunity for our company is, I always share that we aim to be the first truly global cannabis company, bringing cannabinoid-based products to global emerging markets, and Japan’s success is the perfect illustration of that vision in reality,” said Medical Marijuana, Inc. Chief Executive Officer Blake Schroeder. “The Asian market represents one of the largest growth opportunities for cannabis products. It is relatively untapped, and our entrance just over two years ago easily positioned us with a first-mover advantage. Our products have been exceptionally well-received in the market, and I look forward to continued expansion in the region.” DSN
Natura &Co Sponsors Exhibition
F
or more than two decades, Natura &Co has been an active leader in protecting tropical forests and creating sustainable and ethically sourced cosmetics and beauty products. In a new sponsorship of the Science Museum’s Amazônia exhibition, the company is now raising awareness about the importance of the world’s tropical forests in a new way and calling people to take part in preservation and regeneration efforts. Amazônia showcases the work of Sebastiao Salgado, a photographer from Brazil who has spent years documenting the Amazon Forest and the immense changes the region has undergone. “As a Brazilian company, Natura &Co holds the Amazon very close to our hearts and we have long been committed to protecting the rainforest with its wealth of biodiversity and traditional communities,” said Marcelo Behar, Vice President of Sustainability & Group Affairs for Natura &Co. “We are pleased to partner with the Science Museum and support the Salgado ‘Amazônia’ exhibition to demonstrate the beauty of the Amazon whilst helping to raise awareness of the effects of climate change in the region and the crucial need to take action before deforestation reaches a tipping point. It will take a global effort to save the Amazon, and we at Natura are determined to play our part.” DSN
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Tupperware to Sell its “House of Fuller” Beauty Business
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upperware Brands Corporation announced its entry into a definitive agreement regarding the sale of its House of Fuller beauty business in Mexico. “We are pleased to have reached agreement to sell our Fuller beauty business in Mexico,” said Miguel Fernandez, President and Chief Executive Officer of Tupperware Brands. “This sale represents further progress toward our stated goal of divesting non-core assets and enables the company to focus its resources on growing our core Tupperware brands. We will continue to execute on our turnaround plan in order to restore this iconic brand to sustained growth and deliver increased value to all stakeholders.” Tupperware also recently sold its Avroy Shlain beauty business in South Africa. DSN
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/ INDUSTRY NEWS /
DSA Hosts Capitol Hill Initiative with Congressional Members
T
he Direct Selling Association (DSA), the national trade association for direct selling companies, held its annual Capitol Hill Initiative virtually this year, allowing independent direct sellers to attend congressional meetings through video calls. In more than 60 meetings with Members of Congress from 24 states, direct sellers emphasized the importance of protecting independent workers and the flexible, entrepreneurial path that direct selling offers Americans. “We welcome the opportunity to continue our annual Direct Selling Initiative on Capitol Hill with direct sellers and executives participating virtually from around the country,” said Joseph N. Mariano, Direct Selling Association President and Chief Executive Officer. “American consumers continue to be challenged by adversity in the United States and we look to the independent contractors who make up the direct selling sales force to help us foster connections in our communities with meaningful, useful products and services. As the economy continues to evolve, it’s important for our elected officials to see firsthand the value in direct selling, the industry’s differences from other independent work, and the sense of community and support it has provided so many during this time.” DSN
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QNET Convention Introduces Immersive Virtual Reality Experience for Global Audience of 500,000
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NET’s V-Convention Connect opened to a record-breaking audience of over 500,000 people worldwide, and was produced and simulcast from two studios in different time zones over a three-day period. V-Convention utilized popular gaming technology Unreal Engine to create an immersive virtual world where viewers could watch speakers walking through the heart of Kuala Lumpur and the Dubai Expo with live translations in 13 languages. “The success of both V-Convention Connect and QNET’s virtual anniversary celebration is the clearest signal that digitalization is the future of QNET and the direct selling industry as a whole,” said Malou Caluza, QNET Chief Executive Officer. “Virtual events are an invaluable asset: They allow us to connect to a wider audience and transcends all physical limitations such as travel costs and visa restrictions. We are excited to continue incorporating hybrid-style events and activities in the future to ensure each person has a chance to experience the fantastic products and resources, innovative service platforms and strong global community that QNET offers.” DSN
NewAge Q3 Net Revenue Increases 59 percent to $100 million
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ewAge, Inc. announced its third quarter financial results, including a 59 percent increase in revenue from the third quarter of 2020, totaling $100 million. Gross profit for the company also increased to $66 million, compared to $37 million during last year’s quarter. Gross margin was up 6.5 points, reaching 66.3 percent of net revenue and net income improved $11.4 million. “We continue to build NewAge into a leading social selling machine, and I am encouraged by the operational progress we made during the quarter, setting us up well for the rest of the year and beyond,” said Brent Willis, Chief Executive Officer of NewAge. “This quarter we made investments in our systems, launched new products and unveiled new social selling tools and technology, all of which are critical foundational components and will act as a springboard for growth. Our results in the third quarter for revenue, gross margin, net income and adjusted EBITDA all improved year over year, and we expect our future results to benefit substantially from all the actions we have taken in the quarter and earlier in the year.” DSN
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eXp World Holdings Reports 97 percent Increase in Q3 Revenue
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Xp World Holdings, Inc., the parent company of eXp Realty, announced record revenue of $1.1 billion for the third quarter, a 97 percent increase over the previous year’s quarter. Gross profit for the company also increased (70 percent) to $79.5 million. “The unique value proposition of our cloudbased brokerage model continues to attract a significant number of top performing agents to the eXp platform, as reflected by the record $1.1 billion in revenue we reported for the third quarter,” said Jeff Whiteside, Chief Financial Officer and Chief Collaboration Officer of eXp World Holdings. “The continued success of our core U.S. eXp Realty business has enabled us to invest and accelerate global expansion, scale our emerging commercial business, continue our stock buyback program and to declare another cash dividend payout in the fourth quarter to shareholders. As we look ahead, we will continue making strategic investments in technologies that focus on enhancing our agents’ capabilities, which will further differentiate eXp and drive long-term growth of our business.” Key highlights from the Q3 report: • Residential transaction sides closed increased 72 percent to 130,029 • Residential transaction volume increased to $46.6 billion • Net income increased 60 percent to $23.8 million • Earnings per diluted share increased 50 percent to $0.15 • SUCCESS Lending, LLC, a residential lending joint venture with Kind Lending, LLC, gained approval to launch in Colorado, Illinois and Tennessee • Adjusted EBITDA increased 6 percent to $23.1 million. DSN
Medifast Q3 Revenue Increases 52 percent to $413 million
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edifast, Inc. announced its third quarter financial results, reporting revenue of $413.4 million, a 52.3 percent increase in revenue over the same quarter of 2020. Net income increased 21.9 percent to $42 million with earnings per diluted share of $3.56, an increase of 22.3 percent. The company’s OPTAVIA Coaches grew in number to historic levels, increasing 44.9 percent compared to the same quarter of 2020, totaling 61,000 people. The average revenue per active earning OPTAVIA Coach was $6,773, an increase of 7 percent over the third quarter of 2020. “We saw continued strong momentum during the third quarter, reflecting our ongoing success in offering a differentiated and personalized health and wellness program to a growing community of clients across the United States and Asia Pacific,” said Dan Chard, Chairman & Chief Executive Officer of Medifast. “We have more active earning OPTAVIA Coaches than at any point in our history and they continue to support more clients than ever before. Our business remains on track to take advantage of the growth opportunity that lies ahead, as we develop unique digital tools to support our Coach-driven program that guides OPTAVIA clients on their health and wellness journey. DSN
Primerica Reports Q3 Revenue of $693 million
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rimerica, Inc. announced a 22 percent increase in total revenues over the third quarter of 2020, reaching $693.2 million. Adjusted net operating income of $118.7 million and diluted adjusted operating earnings per share of $2.98 both increased 7 percent compared to the third quarter of last year, while ROAE was 24.1 percent for the period. These results also reflect revenues of $22.9 million and an adjusted net operating loss of $4.6 million due to the acquisition of e-TeleQuote. “Primerica continues to adapt to the changing business environment and consumer sentiment,” said Glenn Williams, Chief Executive Officer. “Our Investment and Savings business is experiencing strong growth as we meet clients’ desire to save for their futures. Client demand for life insurance protection is moving closer to pre-pandemic levels. These complementary dynamics of our model are driving strong financial results and making Primerica an attractive business opportunity for entrepreneurs. Our strategic acquisition of e-TeleQuote adds a new dynamic to our business which meets the needs of additional clients, improves the opportunity for our field force and creates upside for stockholders.” 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
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FTC Puts Hundreds of Businesses on Notice and Threatens “Steep Penalties”
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he Federal Trade Commission (FTC) recently issued notices to more than 700 companies regarding their use of deceptive endorsements, and in a statement posted online, said it would “be ready to hold them responsible with every tool at its disposal.” In these Notice of Penalty Offenses, the FTC highlighted the use of social media, which they believe has “blurred the line between authentic content and advertising, leading to an explosion in deceptive endorsements across the marketplace.” The civil penalties associated with these violations could incur fines up to $43,792. “Fake reviews and other forms of deceptive endorsements cheat consumers and undercut honest businesses,” said Samuel Levine, Director of the FTC’s Bureau of Consumer
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Protection, in a statement by the FTC. “Advertisers will pay a price if they engage in these deceptive practices.” Direct selling powerhouse Amway Corporation was included in the lengthy list of companies who received these notices, but legal analysts have expressed doubt about the significance of these warning letters, given that such a wide range of companies—including Bath & Body Works, Netflix and Chick-fil-A—were included in this mailout. While the FTC also clearly stated that a recipient’s presence on the list “does not in any way suggest that it has engaged in deceptive or unfair conduct,” there is concern that these notices are the beginning of an effort by the FTC to obtain monetary damages following a tumultuous battle over the validity of Section 13(b) of the FTC Act to do so. DSN
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EXECUTIVE ANNOUNCEMENTS
Garrett McGrath
Pamela Jones Harbour
Carl Aure
Chief Executive Officer, The Happy Co. The Happy Co. announced the promotion of Garrett McGrath to Chief Executive Officer. Previously, McGrath served as President and worked to execute the company’s vision, develop strategic direction and provide training. “I am pleased to announce Garrett McGrath as the new CEO of The Happy Co.!” said Fai Chan, Global Executive Chairman of The Happy Co. “Given his vast experience and history with the company, we expect that this will be a smooth transition which will ultimately benefit the field as well as the company.”
Board of Directors, Tupperware Tupperware Brands announced the appointment of Pamela Jones Harbour to its Board of Directors. Harbour is a former Commissioner of the United States Federal Trade Commission, former FTC Commissioner and a former Deputy Attorney General of the New York State Attorney General’s Office. “Tupperware is charting a new path for the iconic brand, one that will meet with more consumers than ever before,” said Susan Cameron, Chair of the Board for Tupperware Brands. “With this expansion of the Board and our leadership team, our company will rely on expertise like Pamela’s to influence how we best compete in the global market while protecting our sales force and consumers alike.”
Chief Financial Officer, LifeVantage LifeVantage Corporation announced it has appointed Carl Aure to the role of Chief Financial Officer. “We are pleased to welcome Carl to the LifeVantage team,” said Steve Fife, President and Chief Executive Officer of LifeVantage. “His deep financial expertise along with an extensive background in direct selling and international operations make him the ideal candidate to lead all aspects of finance, accounting, tax and treasury. Carl is also a proven leader with a strategic mindset and significant M&A experience, factors that will be instrumental in executing our plan to accelerate growth over the next several years.”
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Gene Tipps President of Global Operations, Plexus Plexus Worldwide has appointed Gene Tipps to the role of President of Global Operations. Previously, Tipps held the title of Chief Operating Officer at the Plexus headquarters in Scottsdale, Arizona where he worked with global teams to launch more than 30 new products, expand the product distribution footprint, enhance domestic and international supply chain and provide guidance to new markets in Australia, Mexico and Canada. “Since Gene joined Plexus in 2018, he has been a key leader who has been responsible for many of our recent accomplishments, including expanding existing supply chain and warehouse operations across all markets while navigating logistical challenges during the global pandemic,” said Tarl Robinson, Plexus Founder and CEO. “As one of the industry’s top experts, we rely on his experience and insight to define and implement domestic and global expansion strategies so we can share our approach to health and wellness with more people around the world.”
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/ INDUSTRY NEWS /
E X E C U T I V E
A N N O U N C E M E N T S
Dr. Philippe A. Souvestre Medical Professionals Board, ASEA ASEA announced the addition of Dr. Philippe A. Souvestre MD, CES, CEA/PhD (France), RRP, RAc (Canada), ND, DMO (USA) to its existing 19-member Medical Professionals Board. Dr. Souvestre is a former flight surgeon, pilot-physician, in-flight experimenter for the French Air Force and a former French astronaut candidate. His almost four-decade long career has included combining conventional and innovative life sciences to further medical effectiveness. Upon discovering ASEA’s redox technology, Dr. Souvestre found it to be in alignment with his own biomedical insights. “We are inspired by Dr. Souvestre and are pleased to welcome him to the ASEA Medical Professionals Board as the 20th expert,” said ASEA Founder Tyler Norton. “We appreciate Dr. Souvestre’s focus on advancing medical effectiveness through both conventional and innovative life sciences.”
LegalShield Invests in Tech Leadership PPLSI, the parent company of LegalShield and IDShield, has expanded its leadership team with the addition of several new executive hires and a suite of first-ever positions, including Chief Information Officer (CIO), Chief Information Security Officer (CISO), Senior Vice President of Software Development and Engineering, and Senior Vice President of Data Engineering. These executive hires include: n Kurt Bulawa, Vice President of Strategic Business Development and Product Strategy, who oversees the development and execution of PPLSI M&A, partnership and product strategy divisions with experience across North America, Asia and Europe. n William Li, Senior Vice President of Data Engineering, is responsible for driving the data vision for the company and oversees all business data flows and integrations with external partners. n Peter Kim, Vice President of Marketing Operations, serves as a key operational leader who brings the company’s brands to life through helping the marketing team scale growth and transform operations and strategies. Kim also oversees the key areas of management and brand strategy that include full-frontal (brand, social and performance) advertising; digital experience and brand identity; business planning and operations; productivity; and strategy and planning. n Jason Meltzer, Vice President of Software Engineering, will oversee experiences around commerce and products used by group administrators and associates serving members and customers. n Robert Lacy, Vice President of Development Operations and Security and CISO, will oversee the overall information security posture for the company. His role is responsible for ensuring security and reliability standards are in place allowing engineers to innovate freely and deliver best-in-class products and services. n Gerald Hinson, Senior Vice President of Engineering, will oversee product engineering and project management for all PPLSI external products, including apps and web portals. n Pat Patterson, Chief Information Officer, will focus on improving IT operations and infrastructure, delivering products and solutions for LegalShield and IDShield, and continuing to advance data protections and cybersecurity measures for employees, members and customers. “We are transforming from a sales company with call centers to a services company powered by great technology and exceptional leaders,” said Jeff Bell, Chief Executive Officer of PPLSI. “These positions are key in our passion and focus to make life better for every person with our innovative and disruptive services. Their powerful backgrounds are a perfect fit to help us further our vision and mission.” DSN
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/ INDUSTRY NEWS /
S T O C K
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DIRECT SELLING C A P I TA L A D V I S O R S DIRECT SELLING STOCKS INDEX REBOUNDS NICELY IN OCTOBER
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HE DIRECT SELLING CAPITAL ADVISORS Direct Selling Index (DSCI) rose 10 percent in October, partially reversing a three-month decline that had cut the index’s value by a cumulative 30 percent. This strengthening was fairly consistent among the index members, with six of the nine large cap stocks and seven of the eight small cap stocks improving. With this rise, the DSCI outperformed the Dow Jones Industrial Average (DJIA), which gained 5.8 percent during October. Since March 1, 2020, when the index tracking set began, the DSCI has gained a cumulative 74.5 percent, while the DJIA has gained 41 percent during the same period. Year to date, the DSCI has appreciated 10.4 percent, while the DJIA has gained 18.5 percent. The earnings reporting season has gotten off to a mixed start for DSCI component companies. eXp World Holdings, Inc. and Medifast, Inc. (NYSE: MED) each reported robust third quarter revenue growth. On the other hand, BWMX, Tupperware Brands Corporation (NYSE: TUP) and Nu Skin Enterprises, Inc. (NYSE: NUS) announced somewhat disappointing results. Lingering effects of the COVID-19 pandemic impacted sales at all three companies. In addition, exceptionally strong year-ago comparable periods impacted results on a relative basis.
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LARGE CAP STOCKS n Betterware de Mexico (NASDAQ: BWMX) fell 23.6 percent in October, causing it to lag behind other large cap DSCI components. The company’s third quarter results showed sluggish growth compared to its reports from 2020 and the first half of 2021. Like many of the other stocks, yearover-year comparisons to its outstanding performance in the same quarter of 2020 have caused a significant impact on perceived performance. BWMX’s stock price is down 17.9 percent since the start of 2021. n Tupperware Brands Corporation (NYSE: TUP) gained 5.3 percent in October, cutting its year-to-date losses to 30.4 percent. Since the beginning of the tracking set, TUP shares have gained an astonishing 680.4 percent. While the company reported mixed third quarter results, the company’s EPS was $1.19, and well above consensus analysts’ estimates of $0.71 per share. Sales did decline 11 percent in the third quarter versus last year, due in part to persistent negative effects of the COVID-19 pandemic. n Nu Skin Enterprises, Inc. (NYSE: NUS) was the highest dividend yielding stock in the DSCI (3.73 percent), but underperformed the DSCI in October, declining 0.8 percent. Shares are down 26.4 percent in the first ten months of 2021 but are still up 70.2 percent since the March 2020
DSCI outperformed the Dow Jones Industrial Average (DJIA), which gained 5.8 percent during October.
establishment of the DSCI. The company’s third quarter results reduced its full-year 2021 EPS guidance to $3.93$4.03 from $4.30-$4.50, and third quarter revenue was down 9 percent from same quarter last year, shifts that are attributed in part to pandemic disruptions of selling and promotional activities in several markets, most importantly Mainland China and Southeast Asia. n Herbalife Nutrition, Inc. (NYSE: HLF) reported third quarter results in line with the quarterly guidance it issued on September 13. Net sales were down 6 percent from the same quarter in 2020 to $1.4 billion and lingering effects of the pandemic impacted activity among its independent distributors. Adjusted diluted EPS was $1.21 in the quarter,
up from $1.15 in the year-ago period, allowing Herbalife to maintain its full year 2021 adjusted diluted EPS guidance of $4.55-$4.95 per share. HLF shares increased 9.5 percent in October, which cut its year-to-date loss to 7 percent, and have appreciated 43.4 percent overall since March 2020. n Medifast, Inc. (NYSE: MED) shares improved modestly (+1.9 percent) in October, reversing a small portion of its approximate 35 percent decline in August and September combined. Year to date, MED has gained 2.6 percent and 146.9 percent since March 1, 2020. The company’s third quarter financial report was strong, showing increases in revenue (52 percent) and diluted EPS (22 percent) over the third quarter of 2020. As a result, the company has increased 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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the midpoint of its full year 2021 revenue and EPS guidance by 3.1 percent and 1.3 percent, respectively. MED stock was up approximately 13 percent on a November month-to-date basis as of its November 5th closing price. n USANA Health Sciences, Inc. (NYSE: USNA) beat analysts’ expectations with its third quarter revenues and earnings, even though both measures declined when compared to last year’s results. Sales in the quarter were down 8.1 percent ($274.4 million) and EPS was $1.36 versus $1.44 from the third quarter of 2020, as COVID-19-related disruptions and lockdowns in several key markets affected the company’s ability to operate and ship products. The company’s shares rose 5.3 percent in October and have gained 24.5 percent since January 1, 2021, creating an overall appreciation of 46.8 percent since the tracking set began and beating the Dow’s 41 percent cumulative increase. n eXp World Holdings (NASDAQ: EXPI) increased 29.7 percent in October, bringing its year-to-date gain to
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68.1 percent. Since the tracking set began on March 1, 2020, EXPI has rallied an unparalleled 979.5 percent. The company’s third quarter results were also robust, with net sales and residential transaction volume during the quarter nearly doubling the previous year’s third quarter totals. The key driver for EXPI appears to be that the total number of EXPI agents increased 82 percent in the third quarter of 2021 from third quarter 2020 levels. Adjusted EBITDA for the company was $23.1 million in the quarter, up 6 percent from the second quarter of 2021. n Primerica, Inc. (NYSE: PRI) is the largest market cap stock in the DSCI and performed approximately in line with the index in October, rising 9.5 percent. Year to date, the stock has appreciated 30.3 percent, and is 53.6 percent higher than its March 2020 levels. The company’s second quarter results, reported in early August, showed that revenue and earnings per diluted share increased 25 percent and 28 percent, respectively, versus the same quarter of 2020.
During October, the number of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks was 90 percent.
The Beachbody Company, Inc. (NYSE: BODY) was one of the three large cap constituents of the DSCI to decline in October (-5.1 percent). On November 1, Beachbody announced that Jean-Michel Fournier, the former CEO of a well-known media company, will lead its global partnership and international development efforts.
n
SMALL CAP STOCKS The small cap tracking set saw a solid October, as seven of the eight component stock prices rose. n Mannatech, Incorporated (NASDAQ: MTEX) was the best small cap performer in October with a 24.5 percent increase. The stock appreciated 121.1 percent in the first ten months of 2021, and 197.5 percent since the DSCI’s inception. SHORT INTEREST AND DATA ANALYSIS Short Interest in industry stocks moved higher in October after a slight downturn in September. Aggregate “days-to-
cover” have increased around 150 percent since bottoming in mid-February and is at its highest level since the index tracking set began in March 2020. This statistic does mean more investors are betting DSCI stocks will decline, but it also provides significant buying power that can accelerate any move higher. During October, the number of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks was 90 percent. The percentage of stocks which analysts recommend selling totaled 10 percent. The Federal Reserve plans to begin tapering its bond buying program, and supply chain issues continue to impact the economy. Meanwhile, the U.S. Administration grapples with extensive social spending and infrastructure bills. All of these variables will undoubtedly continue to be important challenges for the market. DSN
DIRECT SELLING CAPITAL ADVISORS is a boutique investment banking, business development and corporate finance advisory firm primarily focused on the direct selling vertical, as well as ancillary businesses. Located in Dallas, Texas, Direct Selling Capital’s core service offerings include both buy and sell-side M&A advisory, equity and debt financing, as well as joint venture and partnership opportunities. For more information please contact us at: info@directsellingcapital.com This is a summarized report; for more information, please contact info@directsellingcapital.com.
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C U S T O M E R - C E N T R I C
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based solely on a company’s customer-to-distributor ratio taking into consideration the following definitions:
Distributor—someone who
DOES have a distributor agreement in place
Customer—someone who DOES NOT have a distributor agreement in place n
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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
D E C O G N I Z E
BE CU STOM ERCENTRIC RECOGNIZED.
The CCR Program is
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R E C O G N I T I O N
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.
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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.
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7 Employee Retention Strategies for Direct Selling Companies 2 / CREATE UNIQUE OPPORTUNITIES FOR
BY DAVID LEE
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S MANY BUSINESSES face worker shortages for several reasons, executives and managers are focused on reducing employee turnover. Retention in the direct selling industry typically refers to the distributor field, but it’s just as important for corporate employees. Keeping good employees around saves money, helps build culture, and presents a strong reputation to distributors. Here are seven strategies to help increase employee retention.
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/ INVEST IN PROFESSIONAL DEVELOPMENT According to LinkedIn’s Workplace Learning Report, 94 percent of employees surveyed said they would stay at a company longer if it invested in their professional development. The global skills shortage report by “SHRM: Better Workplaces. Better World.” revealed that 75 percent of employers say it’s challenging to find candidates with the skills they need. Providing or supporting opportunities to learn new skills can help increase camaraderie and show employees you want to invest in their development. This can be done inside the company or by paying for employees to attend outside conferences and training programs. Increasing the skills of existing workers also helps avoid the need to recruit outside consultants.
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CAREER ADVANCEMENT AND EXPERIENCES A Harvard Business Review article noted that, “employees who remain in the same role for an extended period are more likely to leave an organization.” Career advancement doesn’t always mean promotions. It can also include new roles or opportunities to advance and taking on new challenges. Many employees don’t desire nor possess the skills to take on manager roles. They may, however, be willing to teach or mentor junior members. Such roles can take pressure off existing managers. A lateral move that allows them to flex different muscles or grow new skillsets can be motivating. Attending distributor events also helps corporate employees understand the culture, challenges and mindset of the field they are tasked with supporting.
3 / FOSTER STRONGER RELATIONSHIPS
BETWEEN MANAGERS AND EMPLOYEES Do your employees like their managers? Not liking or trusting their managers is one of the main reasons employees leave a company. They like to be treated as individual people with unique goals and skills. Instead of doing only yearly reviews, try implementing quarterly or even monthly catchup meetings to discuss achievements, areas of improvements and how managers can support employees. Make sure employees feel like their concerns are being heard and that they feel they have a voice in the mission of the company. Great field leaders build lasting relationships with their teams on an ongoing, individual basis, so it’s important for corporate managers to reflect that same rhythm and structure.
94% Ninety-four percent of employees surveyed said they would stay at a company longer if it invested in their professional development.
4
/ IMPROVE THE ONBOARDING PROCESS Searching for and hiring the right employee is just the beginning. Making sure they are properly onboarded is critical to making them feel welcome and equipped with the tools and support to do their job. Create excitement and reduce challenges to help limit quick turnover. An SHRM survey of 350 human resources leaders found that 76 percent of organizations are not effectively onboarding their new hires. Some companies have implemented forms of gamification to create a fun and personalized onboarding experience that new hires complete at their own pace.
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/ APPRECIATE AND RECOGNIZE EMPLOYEES ON A REGULAR BASIS This is a core principle in the direct selling industry when it comes to field recognition, but it’s crucial for corporate employees as well, especially when they see the amount of effort that goes into distributor appreciation. A Gallup poll showed that 65 percent of people feel unappreciated at their job. This can make employees feel withdrawn and unenthusiastic. Simply showing gratitude or complimenting a specific task or project goes a long way. Public recognition and awards, celebrating work anniversaries or providing space for relaxation should be focused on helping drive desired behaviors and actions. Also keep in mind that not everyone desires public recognition at a big event or gathering—tailor the reward and recognition to the person whenever possible.
6 / PROVIDE FLEXIBLE WORKING
ENVIRONMENTS Most businesses over the past year and a half have had to create flexible working opportunities for employees. Working remotely, flexible hours, video conferencing, leveraging new technologies—many companies even discovered more beneficial work environments when exploring these ideas. An employee’s ability to work remotely has become a valued asset for some businesses, even helping to reduce the need for office space, equipment and other overhead costs. Cutting down on commute time can also increase employee retention. Robert Half, a human resource consulting firm, found that 23 percent of workers have quit a job because of a bad commute. Allowing more flexibility shows employees you care about their livelihoods, mental health and family obligations.
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/ AVOID FEELINGS OF BEING OVERWORKED AND OVERWHELMED Working more hours doesn’t always result in better production or quality. An Economist.com report found that productivity drops for every additional hour of work. Putting in some extra work hours is sometimes necessary, but managers should pay close attention to the frequency. Keep an open dialogue to understand how much individual employees can handle. Encouraging workers to take some time off when needed shows you care for their wellbeing. DSN
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Destination Anywhere? As post-pandemic travel stages a comeback, here’s everything you need to know to make your incentive trips successful.
I
BY LISA ROBERTSON
Domestic Destinations
F THERE IS ONE THING we hear from friends, family and co-workers lately, it’s how much people are longing to travel again. We’ve all been shut in and shut out from so many fun activities and getaways—now that the tides are finally turning, and travel seems not only possible but essential in the coming months, here are a few things to keep in mind as you plan your incentive trips for 2022 and beyond.
PLAN AHEAD / Demand will only increase in the coming months. Locking in your dates and venues early is more important than ever before. CLOSE TO HOME / International travel isn’t as appealing to people as it was in simpler times. Look into unexpected domestic locations as a welcome alternative. TWEAK THE TREATS / Instead of wholesale changes to your agenda, make a few common-sense concessions to a post‑pandemic world. n
Forgo the welcome buffet and opt for an outdoor reception
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Plan small group excursions in lieu of massive tour bus options
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Schedule more free time for people to do as much or as little as they’d like
SECLUDED LUXURY / Two things travelers are really longing for right now are pampering and remote locations that allow for easy social distancing and time in the great outdoors. We’ve compiled what we consider some of the best unexpected U.S. locations for your incentive trips in 2022.
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JACKSON HOLE, WYOMING If rugged and remote with a touch of culture sounds appealing, consider Jackson Hole. Nestled between Yellowstone and Grand Tetons, you’ll find breathtaking scenery and amazing outdoor activities. Offsite mansions and an abundance of art galleries provide the perfect setting for private events. KAUAI, HAWAII More remote than Oahu and Maui, Kauai offers everything that people love about Hawaii without the excessive crowds and commerce. Stunning waterfalls, pristine beaches, breathtaking canyons and charming small towns will give your distributors an unforgettable slice of laid‑back island life. PALM BEACH, FLORIDA Old-school opulence at its finest! Golf and glamour are two mainstays of any Palm Beach getaway. This
time‑tested destination is enjoying a resurgence— thanks in large part to its premium shopping and world-class cuisine. Your top performers will lap up the luxury. SANTA FE, NEW MEXICO Santa Fe offers an experience unlike any other—southwestern charm, delicious cuisine, a thriving arts scene and unique Pueblo-style architecture combine to offer your field leaders something memorable and far removed from the traditional sun and sand options. SEDONA, ARIZONA The majestic red rocks of the desert southwest are breathtaking, and you won’t find a better place to experience them than Sedona. Luxurious spas and gorgeous golf courses abound. Plan a day trip to the Grand Canyon, too—it’s just 100 miles away! DSN
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The 5 Key Metrics You Must Follow on Facebook
A BY DAVID LEE
RE YOU MEASURING your Facebook strategy? Do you even have a strategy? It can be confusing to understand the importance of things such as likes, followers, engagement, impressions, actions and other metrics. The Facebook Insights report for your page offers all this info and more to help you better understand your audience and develop clear, precise and actionable goals. Understanding your goals will help you focus on the most important insights for you. Are you trying to attract potential customers? Do you want to communicate to existing distributors? How about building your brand? Your strategy certainly can shift, which can change the insights metrics you track most.
The Ones to Watch
So, what metrics are typically most important for direct selling? Closely monitor these five:
1 / REACH
This is a high-level look at the overall exposure of your page. This includes post reactions, comments and shares, ad impressions and direct visits to your page. Higher reach means more exposure.
2 / ENGAGEMENTS
Engagements are critical because as people like, comment and share your posts, Facebook sees this as relevant. It shows that people are interested in your content. Shared posts can exponentially increase exposure and help reach people who are not yet following you. So, pay attention to which types of content generate the most engagement.
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3 / ACTIONS ON PAGE
When people go to your page, what are they doing? And more importantly, what is it you want them to do? This is why having a clear goal is so vital. Actions can include clicking “get directions,” calling a phone number, sending a message, booking an appointment or clicking your website link. You can dive deeper to discover the gender, age and location of those who took a particular action on the page.
4 / INDIVIDUAL POSTS
It’s always great to know what’s working and what isn’t. The Posts tab shows you which posts got the most exposure and engagements. It also shows when your followers are online. Pay attention to the post type shown in the far-left column to see how different types of posts such as links, photos or videos are performing. This can help you focus on the type of posts that perform best as well as the days and times you get the most engagement. You can quickly sort your posts by specific metrics to discover your top performers.
5 / FOLLOWER DEMOGRAPHICS
The People tab reveals gender, age ranges and locations for people following your page, plus people reached and people who engaged. You can also see other pages your followers like to help you build a more specific audience. This also helps you build an advertising strategy with different messages targeting more specific demographics. DSN
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L E A DI NG BY E X A M PL E HOW SOME OF THE INDUSTRY’S MOST SUCCESSFUL FOUNDERS TURNED THEIR DISTRIBUTOR EXPERIENCE INTO MULTIMILLION‑DOLLAR POWERHOUSE BRANDS.
BY SARAH PAULK
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Distributors and corporate teams work hand‑in‑hand,
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and their synchronicity is essential for overall success.
HERE IS NO SUBSTITUTE FOR EXPERIENCE. Studying compensation plans and researching training materials has value. But learning in that controlled environment cannot compare to the urgency that comes from knowing that your family’s income relies on the paychecks your team earns. Distributors recognize that their future success will be boosted or limited by the quality of tools and resources made available by the team who works in the company’s headquarters. Distributors and corporate teams work hand‑in‑hand and their synchronicity is essential for overall success. But corporate leaders who know what it’s like to be a distributor possess an advantageous and empathetic point of view that can only come from knowing firsthand what’s it like to live and work in the field, attracting potential team members and building a loyal customer base. When these successful field leaders direct their entrepreneurial spirit toward their own startups, the results can be staggering. Today, more than 30 direct selling companies founded by entrepreneurs who were once distributors reap annual revenues in excess of $100 million each. For these entrepreneurs, the direct selling industry ignited a spark that no other business opportunity had provided them. So, with distributor-learned tools in hand, they amplified their success by sharing it with others, building opportunities tailor-made for the sales field.
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I have three sons and two daughters, and I had them all become distributors because I believe it’s good for them. — J E R RY B R A S S F I E L D / D S N L e g e n d & Fo u n d e r o f NeoLife International
distributor base,” said Joni Rogers-Kante, SeneGence Founder, CEO and Chairwoman. “I gained actual hands-on experience and learned the ‘how-to’s of success.” Joni’s distributor background was also a financial advantage for SeneGence during its startup days, as Joni wrote the first distributor training manuals, designed her company’s compensation and recognition plans, created strategic corporate training events and confidently recognized a need in the marketplace. “Selling products to a large variety of customers provided me the insight I needed to better understand what women really want,” Joni said. “This awareness gave me the courage to pursue the development of the product line I envisioned.”
Learning the Heart of the Business
When Kendra Brassfield took over the reins for her father Jerry Brassfield, the founder of NeoLife International, he instructed her to start in an unconventional way: As a distributor. “I have three sons and two daughters—I had them all become distributors because I believe it’s good for them,” Jerry said in a DSN Legends interview. “She said, ‘Are you setting me up to fail?’ and I said, ‘No, you can’t fail—you can only learn. And even if you are not a success at it, you will understand where the heart of our business is and what distributors go through.’” Kendra did create a successful business as a distributor, but more than that, she developed greater understanding of the challenges that field leaders face. It was an awareness that would serve her well as she led the field to embrace a companywide transition to a digital format and then again as she navigated the obstacles presented by the pandemic. This experience of informed leadership—of knowing what the sales field needs, wants and expects—is one that other founders who first launched into the industry as distributors can relate to. “The very first benefit of having been in the field is, of course, the understanding of the actual business in the field—the issues and challenges of building a consumer base and, for some, a
_______________________ World Class
RECOGNITION For World Class
PERFORMANCE
_______________________
www.eadion.com Call 1-800-445-1007 for a distributor near you. w w w. d i r e c t s e l l i n g n e w s . c o m 4 3
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OME OF THE INDUSTRY’S MOST SUCCESSFUL COMPANIES WERE FOUNDED BY ENTREPRENEURS
WHO GOT THEIR START AS DISTRIBUTORS. THESE COMPANIES, each bringing in more than $100 million in revenue each year, serve as an inspiration to the millions of distributors they lead and mentor, some of whom will undoubtedly follow in their footsteps to build the next generation of multimillion-dollar startups in the years to come. This prestigious and growing list of entrepreneurs and their companies includes:
Wendy Lewis & Randy Ray / Jeunesse Global Jay Martin / Juice Plus+ Jeff Olson / Neora
Mark Pentecost / It Works! Greg Provenzano, Robert Stevanovski, Mike Cupisz & Tony Cupisz / ACN
Mary Kay Ash / Mary Kay
Armand Puyolt / Vida Divina
Debbie Bolten / Norwex
Charlie Ragus / AdvoCare
Jerry Brassfield / NeoLife
Rudy Revak / Xyngular
Jason Camper & Paul Gravette / Le-Vel
JR & Loren Ridinger / Market America
Jim & Kathy Coover / Isagenix
Tarl Robinson / Plexus Worldwide
Mary Crowley / Home Interiors Rich DeVos & Jay Van Andel / Amway
Joni Rogers-Kante / SeneGence
Jack Fallon / Total Life Changes
Rolf Sorg / PM-International AG
Andy & Joan Horner / Premier Designs
Sandy Tillotson / Nu Skin Brian Underwood / Prüvit
Mark Hughes / Herbalife Nutrition
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Building Infrastructure from the Inside Out
Knowing how to intuit the needs of those working in the sales field not only impacts the way founders lead, it also fundamentally impacts the way they build. For eXp Realty founder Glenn Sanford, beginning as a realtor himself before attempting to establish the infrastructure that could support real estate agents was key. With invaluable insights about the needs and wants of his future field leaders, Sanford was able to radically transform the real estate experience. He understood the isolating burden of finding leads and converting them into sales on his own and endeavored to create a system that would leverage collaboration and information sharing, minus the franchise fees. “I experienced the heavy lifting that realtors do every day and wanted to make sure agents are truly rewarded for all of their hard work and not lose valuable dollars due to office costs inherent in brick-and-mortar operations,” Sanford said. “I always focus on the agent, which is why we offer a value proposition that is extremely attractive.” Prioritizing distributors is imperative for almost every direct selling founder and executive. But turning that focus into action plans, strategies and resources that seamlessly speak to the needs and dreams of distributors becomes more powerful when it is enacted by a leader who knows what it’s like to take a seat alongside them in the trenches. “Witnessing the growth and development of hundreds of other people regardless of their pasts or paths was then—and still is today—one of the greatest gifts one could offer,” RogersKante said. “To that I have resolved to devote my life’s work.” DSN
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THE BUSINESS OF
DOI NG G OOD TAKING A STAND. MAKING AN IMPACT.
BY BETH DOUGL ASS SILCOX
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CORPORATE SOCIAL RESPONSIBILITY IS AN EXPECTATION, THE PRICE OF ENTRY TO SUCCEED AND REMAIN RELEVANT IN BUSINESS.
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E A R E W H AT W E S AY ; W H AT W E D O ; H O W W E D O I T ; A N D W H AT W E C H O O S E
NOT TO DO.
Our products, the programs we initiate,
the technological and social advancements we usher forth— they all matter. They comprise a corporate footprint that impacts the planet and every man, woman and child who inhabit it. Wrestling with policy decisions, manufacturing choices and how and when to speak out and act on social issues happens daily, as business leaders face stakeholders who expect corporate words and branding to match their deeds, and 21st century transparency leaves inauthentic players vulnerable.
NATURA &CO SPEARHEADS ENVIRONMENTAL INITIATIVES LIKE THE PLASTICS FOR CHANGE PROGRAM.
Corporate Social Responsibility (CSR) or Environmental, Social, Governance (ESG)—the umbrellas under which diversity/inclusion, sustainability, philanthropy, social justice, human rights, compliance and regulation live—is an expectation. It is simply the price of entry to succeed and remain relevant in business. It’s also an opportunity for businesses to look beyond profits, focus on people and become the change makers the world so desperately needs.
PURE ROMANCE ADVOCATES FOR ACCEPTANCE AND INCLUSION.
Speaking Up, Speaking Out
Salesforce CEO Marc Benioff recently posed a thought-provoking question during a National Public Radio interview. “Is business the greatest platform for change?” In his third decade leading the San Franciscobased Fortune 500 company, Benioff believes CEOs wield tremendous power and it is their duty to use that power for good. “Good” means different things to different people, but for Benioff it has meant leveraging strength as a large-scale employer with the ability to relocate thousands of jobs when Indiana legislated LGBTQ discrimination and most recently pushing back against a controversial Texas abortion ban and offering to help Salesforce employees exit Texas if they chose do so. Benioff is no stranger to controversy surrounding issues he believes would adversely impact Salesforce staff, but corporate public advocacy like this was once rare for fear of alienating customers and shareholders. However recent events like the killing of George Floyd compelled many corporate executives to publicly take on racial inequality, among other social issues, within their own companies. CEOs now understand that a microphone comes with the job. While switching it on comes at their discretion, more corporate leaders are choosing to become a public voice that devalues bad, unethical and tone-deaf behavior, while leading and promoting actions that benefit the greater good.
The direct selling industry consists of and serves an incredibly diverse global marketplace of culturally varied distributors and affiliates empowered economically to serve customers— people of all types with all manner of interests and education and backgrounds. The industry’s reach—when considered from this view—blows the mind. How we choose or choose not to do business matters more than ever.
Learning Our Way to Better
Enormous potential exists for the direct selling industry within the environmental, social and governance pillars that comprise what we think of as Corporate Social Responsibility. Research by IO Sustainability, an international research and consulting firm studying how sustainability and CSR initiatives are good for business, shows that corporate-wide CSR integration: n
Enhanced sales by as much as 20 percent
n
Increased productivity 13 percent
n
Reduced employee turnover by half
n
n
n
Created a “reputation dividend” worth up to 11 percent of market capitalization Increased company share price by up to 6 percent Reduced financial and litigation risk, the cost of equity and the cost of borrowing w w w. d i r e c t s e l l i n g n e w s . c o m 4 9
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Other studies show that CSR/ESG initiatives can improve brand equity and reputation, gain favor with younger consumers, increase loyalty, command a premium price for goods, increase employee satisfaction and productivity as well as attract business investors. Plus, it’s simply the right thing to do. Earlier this year, the World Federation of Direct Selling Associations (WFDSA) mounted an Advocacy Committee to work on CSR/ESG from an industry perspective. It’s a three-year initiative with USDSA to enhance industry reputation holistically, using CSR/ ESG advocacy and good corporate citizenship as a model. Ryan Napierski, Nu Skin President/CEO, is the chair. “The best way to accomplish our goals is to have good corporate citizens, who understand that their total footprint is considered and aligned to the reputation that they seek to achieve,” Napierski said. According to Napierski, reputation is one of the most important pillars of future success. It’s a collective sum. Corporate responsibility, social issues, gender equality and philanthropy—this advocacy work improves the reputation of the industry. “The opportunities ahead of us, as we look at the macro trends, see the gig economy evolving, social commerce and word-of-mouth marketing through influencer marketing all taking form, there’s a real opportunity ahead for us—commercially speaking— to grow our industry. But we acknowledge as well, that we need to do it the right way,” Napierski explained. Advocacy has been fundamental to direct selling since the inception of many legacy companies. Shaklee was “green” in the 1950s before anyone really knew what that meant. 135 years on, Avon is still committed to empowering women, donating more than $1.1 billion to gender-based violence and breast cancer awareness initiatives, while parent company Natura &Co has been carbon neutral since 2007 and earned top U.N. environmental awards in 2015 and 2019. Early cause marketing adopter Pampered Chef has a decades-long partnership with Feeding America.
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The best way to accomplish our goals is to have good corporate citizens, who understand that their total footprint is considered and aligned to the reputation that they seek to achieve. — RYA N N A P I E R S K I / N u S k i n P r e s i d e n t & C E O
WFDSA’s 2020 Direct Selling Worldwide Corporate Philanthropy Survey showed 92 percent of 37 participating companies sponsor or support philanthropic activities. The “how”s and “why”s of this support vary widely, of course, and responses were voluntary. This snippet does not include the long-standing charitable commitments of many larger companies or grass-roots endeavors of smaller ones that contribute to the greater good. On its face, the small response is not in keeping with the enormity of the global industry or the untapped power that direct selling could muster in the CSR/ ESG space. “Right now, we can be proud of what we’re doing, but our leadership wants to do more. We can do that by institutionalizing and socializing best practices, publicizing that it’s happening and encouraging people to do more,” Adolfo Franco, USDSA’s Executive Vice President, COO and Counsel explained. CSR/ESG initiatives exist within nearly all direct selling companies, Franco believes, and the committee aims to amass industry data to create a playbook of best practices, resources and training so companies can advocate effectively and learn to leverage other organizations for the best return on contributions.
AMWAY OPERATES A 90 PERCENT LANDFILL-FREE MANUFACTURING FACILITY.
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Doing Good is Good Business
The idea is to develop CSR/ESG as a corporate and industry philosophy and to learn by example from companies like Natura &Co. “Natura &Co is the result of long-held ideals of contributing towards a more conscious, collaborative and just society. Our business model holds us accountable to balance profit and purpose which is why we’ll always report our social and environmental performance with the same transparency as we do our financial performance,” shared Marcelo Behar, Natura &Co, Vice President of Group Affairs and Sustainability. Natura &Co’s purpose is fully integrated, and their goal is to always create solutions which reconcile economic, social and environmental
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impacts. As such, Natura &Co is a Certified B Corporation—the largest in the world—joining more than 4,000 companies representing 153 industries in 77 countries unified to balance purpose and profit and legally required to consider the impact of decisions on workers, customers, suppliers, community and the environment. Collectively, Certified B Corporations are driving a global culture shift to redefine success in business and build a more inclusive and sustainable economy. Granted, not every company may set Certified B Corporation as its goal, but doing good is a good business philosophy. Nu Skin included CSR/ESG as part of their founding mission in 1984, but as time passed and they learned more about sustainability, diversity,
“
Our business model holds us accountable to balance profit and purpose.
TA K E UP A C AUSE “For any organization, I don’t think about it as a question of should you. It’s a question of how. It’s not about co-opting a charity or just finding something
— M A RC E LO B E H A R / Natura &Co Vice President
to align with. Look inward to your organizational
of Group Affairs and Sustainability
values. What inspires the people that work for your organization? What motivates your stakeholders? What mission or purpose is rooted in the company’s inception? That’s where the magic exists.” – TER RY HALEY, PAMPER ED CHEF, CMO
SEEK AN AUTHENTIC CAUSE n
n
Do something that aligns with a philosophical mission involving parts of society you want to improve. Do something that aligns with your image and brand.
n Do something that motivates
equity and inclusion, it evolved into a vital part of their corporate structure and culture. “The founders set the tone, but I am so thrilled to work with the current executive team that is absolutely committed to being a force for good and carrying that mission on. It is part of our regular work conversation,” Ruth Todd, Nu Skin, Senior Vice President of Global Public Affairs said. For their humanitarian efforts, including raising $13 million for the Force for Good Foundation through cause marketing sales of Epoch products, sponsoring 25,000 life-saving heart surgeries for children, their ongoing sustainability initiatives aimed at reducing their overall carbon footprint and myriad other good works, Nu Skin earned the first-ever Direct Selling News Bravo Global Good Award this year.
or rewards staff, employees, direct sellers and constituents.
n
Do something equally important to customers or the community.
COMMIT n Cash donations need to be commensurate to
the credit
you desire. n n
n
Partner for greater impact. Giftable assets include your people, their talents, the company’s brain trust and business model. Tell people what you are doing. It’s a story worth sharing.
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PAMPERED CHEF HAS A DECADES ‑LONG PARTNERSHIP WITH FEEDING AMERICA.
Amway’s philosophy has remained the same for decades, focused on helping people live better, healthier lives by taking care of the communities in which they live and do business. But like Nu Skin, how they serve has changed over the years as current events, global initiatives and people’s needs evolve. “It’s important to bring your employees, entrepreneurs and customers along with you on the journey. They will be the drivers, volunteers and voice for the strategies you develop and the goals you set,” explained Will Templeton, Global Amway Brand, Sustainability and CSR Director. Since 2015 Amway has tracked their sustainable manufacturing reduction initiatives, and by the end of 2020, they surpassed goals for reducing total energy use, increasing alternate energy use and reducing greenhouse gases. These long-range sustainability goals impact the planet, but are harder for consumers to connect with. Packaging advancements associated with a product launch like Artistry Skin Nutrition make their efforts clear. Amway reduced plastic use by 21 percent compared to previous skincare lines. That’s equivalent to removing more than 13.2 million water bottles from the environment annually. They also reduced annual paper use by 57,000 pounds; offset 100 percent of their electricity usage through investment in sustainable wind power; and operate as a 90 percent landfill-free manufacturing facility. “This is good business. I really think our companies are doing this because they believe in causes. They believe in philanthropy personally, so leadership is committed to doing this. But this is the realization, unlike 20 years ago, companies’ positions on where they put their money is particularly important to young consumers. They watch the activities of companies and their causes very, very closely,” Franco said.
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Napierski believes direct selling as a whole must hold itself to a higher standard. “If we are not authentic as a company or as an industry, if we are not authentically thinking about our footprint in all dimensions—our reputation in all dimensions— we simply aren’t servicing the customers we’re intending to attract,” he shared.
The Social Impact of Partnerships
When companies lack CSR/ESG authenticity, they wind up making shallow, transactional commitments. Think publicly advocating for gender equity but employing few female managers and at lower pay than their male counterparts. This is not how a company or industry builds social capital to positively impact reputation, bottom line or the greater good.
Connecting the RIGHT people with the RIGHT company
DEBBIE SQUIER PRESIDENT & FOUNDER
“From our inception, people and culture have made the difference at MONAT. IMPACT This Day doesn’t simply post
At IMPACT This Day, we
jobs or reach into their contacts to find people. They search
understand that PEOPLE
for the RIGHT people for us and our culture. That has been
are truly the most valuable
the difference.”
and impactful resource of
— RAYNER URDANETA / CEO, MONAT Global
any company. That’s why we specialize in providing companies with the PEOPLE they require TODAY to ensure RESULTS for TOMORROW.
“We loved using IMPACT This Day to help us find the right sales executive. They are very well connected and helped us identify several solid candidates. They are also very responsive. We would use them again!" — ROGER MORGAN / Founder and CEO of pawTree
727.74 3.9 92 4 impactthisday.com facebook.com/impactthisday linkedin.com/company/impact-this-day/
DIRECT SELLING
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Organizations can get money from a lot of places, but they can’t get your time, your caring and a product that actually moves their agenda forward. — PAT T Y P E A R C Y / S i m p l y Fu n Fo u n d e r & C E O
Paula Berezin is a recognized social impact leader and CEO/Chief Strategist of Social Capital, a company she founded in 2001 with offices in Chicago and Washington, D.C. Berezin’s sweet spot is helping nonprofits work with corporations to build multifaceted public/private partnerships that hit on multiple cylinders. “Our lens is really helping best-practice partnerships come together to, at the highest order, improve society or improve a shared mission and— at the center of the partnership—meet everybody’s shared goals,” Berezin said. Her clients—including American Cancer Society, Feeding America and United Way Worldwide— seek deeper, stronger relationships with existing corporate partners whose CSR/ESG philosophies can advance change-making agendas. “CSR/ESG is the combination of business practices for sustainable solutions as well as their assets beyond money, which is their people, their
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talent, their brain trust, their business models,” Berezin explained. “We really believe that part of our power is having trusted, long-standing partnerships that connect to our purpose. It enables us to have real conversations about ways we can best support our partners that will spark excitement with our community,” Terry Haley, Pampered Chef’s CMO, said. One of Pampered Chef’s long-standing partners is Feeding America, the nonprofit organization Founder Doris Christopher initially connected with three decades ago to help with the U.S. domestic hunger crisis and support the company’s mission to enhance the quality of family life. “We’ve harnessed that with a focused program our consultants and customers can tap into year-round by shopping for a cause, hosting a fundraising party or rounding up any order to make a difference,” Haley shared. Pampered Chef stands out to Berezin as a company that uses their business prowess to do good. They use sellers as mission messengers to help raise funds and awareness around the cause, grow it and eventually become a model from which others benefit. There is enormous power in partnership— large‑scale and localized power—for direct selling companies of all sizes to make a difference in people’s lives. Nu Skin partners with Feed the Children to distribute Vitameal to 120,000 hungry kids around the world every day. While Amway employees have volunteered more than 17,000 hours pouring cement, building picnic tables and shoveling mulch to create 23 kid-designed play spaces in three states through their 20-year partnership with KABOOM!
Authentic, Impactful, Lasting Change
The lesser known efforts of smaller direct selling companies shine equally bright in their ability to leverage their products, their people and their business philosophies to creatively change the world one person or family at a time. Partnering with Head Start, a school readiness program for children from low-income families,
SIMPLY FUN DONATES TO NONPROFITS SUPPORTING EDUCATION.
Simply Fun works with center directors to engage parents and encourage family play to meet children’s developmental needs. Their timely, pre-pandemic release of a game called Wake Up Stars, which helps children and their parents learn how to identify and express emotions, made a difference for kids, their families and Head Start employees working one-on-one with them. Founder and CEO Patty Pearcy takes her company’s social responsibility efforts seriously and makes them personal. Corporations, in her experience, write checks and then go about the business of doing business. She believes social responsibility is about family, and everyone that Simply Fun touches is family. “I think that’s how
you look at what you contribute down the road. What would you do for your family? What is your responsibility to your family?” She continued, “It isn’t just about giving dollars. Frankly, if you can give time or product that fits within a giving scenario, that’s the jam, right? Organizations can get money from a lot of places, but they can’t get your time, your caring and a product that actually moves their agenda forward.” Pushing a cause forward means removing roadblocks and that’s what Cara Brook, Founder/ CEO of Seint set out to do in a most creative way. As a foster parent and advocate, she wanted to encourage people who had the desire, means and situation to become foster parents. w w w. d i r e c t s e l l i n g n e w s . c o m 57
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“The child that needs them is down the street, and they don’t know it. But if that child came to their door, they would never say no. It would be so much more real. I just wanted to make it real and answer their questions,” Brook said. Brook started a Seint cause marketing campaign and enlisted the expertise of an experienced film maker and scriptwriter, both veterans of the foster system. She created Seint’s Love is Never Wasted Foundation and helped finance a short film of the same name. Infused with reality—a foster child making sense of how he fits into two lives with two mothers; the protective instincts of a resistant foster dad; the bittersweet heartbreak of a child rejoining a biological parent—the film’s narrative answers questions for potential foster parents in workshops and builds awareness with every online view. Connecting her company to the cause, Brook shared, has helped Seint attract people with similar goals and hearts that are in the right place. “It makes everything more worthwhile and meaningful, even outside the success of the company. But, of course, if people are happy, doing well and finding meaning in their work, they do their best work—and that creates success.” When it comes to CSR/ESG, Pure Romance CEO Chris Cicchinelli said, “What’s hard to do is to actually get involved, help and find the places where it’s not just writing a check. It’s how you get on the ground and help that next group of people who really need us to support them.” For Pure Romance, it’s happened organically… twice. First in 2005, when Cicchinelli watched his mother and company founder Patty Brisben’s anger rise as a doctor scolded a young cancer survivor in public, saying sex was a luxury, and she should just be grateful to be alive. Brisben could not tolerate the dismissive tone and message. Since then, the Patty Brisben Foundation for Women’s Sexual Health has funded over $4 million in women’s sexual health, post-cancer and pain disorder grants and studies at Mayo Clinic and Cleveland Clinic, as well as universities in Arkansas, Indiana and Ohio. It happened once again when Cicchinelli’s then eight-year-old daughter, born biologically as a boy, started talking about being a girl. Cicchinelli privately created the Living with Change Foundation
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and made a $3 million contribution to the University of Cincinnati and Children’s Hospital to fund a resource center for LGBTQI youth and their families. “All of us at the senior levels and owners of these organizations, we need to use our microphones for better, for change, for making people feel safer, fighting for people that can’t fight for themselves,” Cicchinelli explained. The decision was not without controversy when Cicchinelli took up his daughter’s cause within the company. A few Pure Romance consultants walked out, but he kept steady to the mission. “People need to be educated, and we’ve got to give them time. Just because they don’t understand, doesn’t mean they are not willing to understand in the future,” he explained. And they have. Hearts and minds have changed within his company and the Midwestern city that they call home. “When you’re trying to make a change and really educate people and do something that nobody else is willing to talk about, it’s tough and you feel like you’re by yourself. But that’s the road that change makers must go down. Building a business isn’t easy, giving back and making sure that you’re fighting for the right people isn’t easy either,” shared Cichinelli. “If it was, everyone else would’ve been fighting for them in the beginning.” “Authenticity of message to consumers is part and parcel of not only raising money and awareness for the causes you support, but also being able to leverage it into your business plan and know that all these things work together for success,” Franco explained. More and more today, direct selling companies of all sizes are taking a stance, throwing their weight, resources and voices into advocacy for CSR/ ESG causes on behalf of people and the planet. In doing so with authentic intention, they show their customers, employees, distributors, vendors, regulators and the public at large who they are and what they believe in. Companies with CSR/ESG business philosophies and the industries to which they belong have stories worth telling and as they perpetuate their commitments and live out their social missions, they can expect to enjoy enhanced reputations, deeper customer loyalty, increases to their bottom lines and the bold label of change maker. DSN
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TRENDS SHAPING THE GIG ECONOMY N E W O P PORTU NITIES FO R D I R E C T SE LLING BY
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HAT THE GIG ECONOMY is growing at an ever-increasing rate is an irrefutable fact. With more than 57 million Americans involved and $1.4 trillion+ changing hands annually, the gig economy reflects people’s desires for more flexible work opportunities and greater freedom as to how, when and where work is performed. For the past few years, we have been observing the gig economy and its workers in considerable detail, focusing on exploring the nuances that exist in gig economy work and the similarities and differences among gig workers. Our most recent research has uncovered broad trends that may portend the future of the gig economy; these trends have specific implications for direct selling. We discuss here four of the trends we discovered through extensive, nationwide survey research conducted in July 2020 and October 2021.
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GIG ECONOMY PHENOMENON 57
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T R I L L I O N T O U . S . E C O N O MY
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O F W O R K F O R C E I N V O LV E D
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80%
40%
OF INCOME
M AY B E I N T E R E S T E D
INDEPENDENT WORKERS GROWING
88%
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A R E S AT I S F I E D
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/ We found a tendency for more individuals to pursue multiple gigs in 2021 than in 2020. More specifically, people entering the gig economy over the past year were more interested in pursuing multiple gigs than simply working a single gig. Research findings relating to this trend have special relevance for direct selling. Since our prior research has determined that a direct selling gig often tends to be a secondary gig, rather than a primary gig, the multiple gig trend would seem to bode well for direct selling and provide revenue growth and recruiting opportunities. This seems especially true because the increase in multiple gigs is correlated with less time being spent on a primary gig. It is possible to speculate that only working one gig is becoming less popular because many gigs are complementary to other gigs. Since gigs often involve underutilized time, hard assets, knowledge and skills, the trend toward working multiple gigs may also indicate a desire to leverage such assets as effectively as possible. Moreover, working multiple gigs could be a leading indicator that a gig worker is taking steps toward becoming more micro-entrepreneurial.
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/ We also found that gigs are more likely to be carried out through online platforms in 2021 than in 2020. This movement, due to both technology advances and the increasing adoption of online platforms by a variety of companies—both large and small—also would seem to bode well for direct selling whose distributors work from home. Onlinerelated gigs would appear to have the potential to increase the effectiveness and efficiency of the direct selling process if direct selling companies can “stay ahead” of the technology curve and provide their distributors with appropriate technology tools and support. For example, party plan selling is enhanced when powerful digital support is utilized to enable a virtual party setting wherein products can be shared and enthusiasm communicated. There are no physical constraints nor limitations of geography or time zone with virtual parties.
“
The pool of potential gig workers remains relatively large for those direct selling firms with viable distributor attraction and retention strategies.
3
/ Another trend we observed is that the number of individuals calling themselves direct selling distributors declined slightly. Overall, the number of individuals who pursue a direct selling opportunity is a relatively small percentage of “eligible” gig workers—about 5 percent of those gig workers with more than one gig. This suggests the pool of potential gig workers remains relatively large for those direct selling firms with viable distributor attraction and retention strategies. Most direct sellers benefit from personally influenced customers who continue to interact with and purchase from them over a period of time. Such relationships contribute to attracting a greater share of gig workers to direct selling.
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ULTIMATE GIG RESEARCH FINDINGS COMPARISON
>
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/ The final trend we discovered is a continuation of realistic earnings expectations among gig workers. Whereas our prior research found that about two-thirds of the people entering the gig economy expected to earn less than $500 per month from a gig (and actually did so), our current research indicates that this income expectation has actually increased a bit. About 71 percent of the gig workers surveyed in October 2021 have that same expectation. Likewise, the primary motivations that gig workers report for working their gigs have not changed over the past year. More than 80 percent of the gig workers surveyed in 2020 and 2021 stated that paying bills, saving and investing more and improving personal lifestyles motivated their gig work. These characteristics seem to line up with the expectations and motivations of a majority of direct selling distributors and reinforce an opportunity for direct selling growth if properly communicated. IN SUMMARY, the gig economy and its associated gig workers are here to stay and represent opportunities for forward-thinking direct selling companies. The many choices support the needs and desires of all segments in society—from Generation Z to Millennials to Gen X to Baby Boomers—who seek an opportunity to embrace alternative ways to work and use their entrepreneurial skills. While there are future challenges for direct selling, there have always been challenges, especially during times of innovation and change. The future of work will be different in all formats. Debates and discussions will continue regarding how gig workers should be classified. “Less is more” has become a strategic imperative as a consequence of the
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T H E
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KEY FINDINGS
JULY/AUG 2020
OCT 2021
Professionals who freelance represent the largest segment of gig workers
26%
17%
Transportation gig workers
12%
14%
Direct Selling
6%
4%
Multiple Gigs are popular
55%
69%
Works less than 8 hours per week
62%
71%
Works less than 4 hours per week
80%
84%
Expected to earn less than $500 per month
67%
71%
Expected to earn less than $1,000 per month
80%
85%
Expected to earn over $2,000 per month
10%
9%
Positive satisfaction with experience
88%
81%
Uses online platform alone or in conjunction with offline
64%
70%
pandemic, and businesses are learning to do more with less with technology being the great enabler. While new workers want more, perhaps they want to do less. They no longer tolerate complexity. When they find complexity, they seek simplicity. Direct selling, with its micro-entrepreneurial business model, is a channel of distribution that enables long-term relationships between intermediaries and customers that should benefit from the trends we have observed. DSN
JOHN T. FLEMING is author of Ultimate Gig: Flexibility, Freedom & Rewards published by Emerald Publishing (www.utlimategigresources.com – Amazon, Barnes & Nobel) which provides an in-depth glimpse of the future of work and how the gig economy has fueled the growth and appeal of flexible work opportunities. John is principal of Ideas and Design Group, LL, and recipient of both the DSA Hall of Fame and DSEF Circle of Honor recognitions.
ROBERT A. PETERSON, Ph.D., is a professor and holds the Stuart Chair in Business Administration at The University of Texas at Austin. He has been observing and researching direct selling for more than 30 years. In 1991 he received the Circle of Honor Award from the Direct Selling Education Foundation.
APRIL 2022 SAVETHEDATE
Hybrid Event In-Person with LIVE STREAM for Virtual Attendees. We will return live—and in person—next spring! Please plan to join us in person in Frisco, Texas Tuesday, April 19—Thursday, April 21, 2022.
TUESDAY, APRIL 19 EVENING 13TH ANNUAL DSN GLOBAL CELEBRATION WEDNESDAY, APRIL 20-THURSDAY, APRIL 21 DIRECT SELLING UNIVERSITY
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11 Cowboys Way, Frisco, Texas 75034
DSN
DSN
MEMBER 2022
MEMBER 2022
P L AT I N UM
GOL D
THANK YOU
TO OUR INAUGURAL PLATINUM MEMBERS!
DSN HAS PROUDLY SERVED THE ENTIRE CHANNEL and the direct selling executives that lead it since 2004—and now we are excited to present an opportunity for direct selling companies to be active participants in the progress and evolution of the channel through our new Membership Program. The support of Members allows DSN to provide even more of the in-depth research, advocacy, journalism and recognition the channel needs to continue to grow and thrive.
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DIRECT SELLING NEWS
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Rising Together Kyäni’s Time Is Now. BY BETH DOUGL ASS SILCOX
K
YÄNI SPUN SOME OF THEIR CULTURAL MAGIC this summer gathering together
for a long-awaited in-person convention that turned out to be unlike any other. Like so many direct selling companies who rely on these types of events to deliver news and pump up the excitement and field morale, Kyäni’s corporate team threw open the doors to an electric event that celebrated the end of virtual-only business and the beginning of a brand-new era for
FOUNDED:
2005 HEADQUARTERS:
Idaho Falls, ID TOP EXECUTIVE:
Carl Taylor PRODUCTS:
Supplements
the company.
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“ Wrap-around LED walls and high production value—new methods of inspiring audiences devised during the shutdown days of COVID—added energy for everyone including those streaming the live event from laptops and phones in 20+ languages across the globe. But what delivered the biggest punch and the loudest cheers was the culmination of four months of hard work and anticipation, as Kyäni inched ever closer to the global launch of a new movement. Whether shoulder-to-shoulder with 2,000 Kyäni Business Partners or viewing from a kitchen table somewhere in the world, it was easy to sense that something new and something big was going to come from that stage. There was palpable joy in Salt Lake City and online too as Kyäni launched Nitro Nutrition. When world-renowned health expert and best-selling author Mark Macdonald took the stage, Kyäni’s Business Partners knew the time had come to help others reach wellness goals with a simple-to-follow system of mindful eating, easyto-prep macro-balanced meals, and moderate exercise. They knew the time had come to seize the opportunity called Nitro Nutrition. “I have been helping people feel better and look better for over 25 years. This has been my life’s mission. And what we have here—this combination of astounding knowledge about how our bodies
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A thriving business and a thriving Business Partner are going to find a way around an obstacle. That’s what we’ve done, and that’s what we’ll continue to do. — C A R L TAY L O R / Ky ä n i Fo u n d e r
interact and benefit from our food, how we exercise and move to optimize our health, and how the very best nutrition can be derived from nature—this represents something new,” Macdonald said. Kyäni’s Business Partners also knew the time had come for a rebirth of sorts, a rejuvenation that enables them and the company to put a bit more distance between today and Kyäni’s unfathomable tragedy of just two short years ago.
Looking Back
No matter the tragedy, there is pain, grief and uncertainty. Pushing forward is fraught with emotional difficulties, and for companies like Kyäni who have come through tragedy, gaining some logistical and strategic bearing during a time of shock can be daunting. But Kyäni’s direct selling family discovered that a mission of hope—long ago put in place and lived every day by their founders—built an undercurrent of resiliency within their organization that was waiting to rise, guide, persevere and grow.
On November 30, 2019, members of the Kirk and Jim Hansen families boarded a small airplane outside Chamberlain, SD. Having just wrapped up an annual bird hunting trip, this happy group of men and boys—aged 5 to 81 years—was eager to get home to Idaho Falls. But 30 seconds after takeoff, the plane crashed into a snow- covered cornfield. Nine members of the Hansen family lost their lives that day—four generations perished in the tragedy that left 14 children fatherless and seven wives as widows. Among those who died were Kirk and Jim Hansen, two of Kyäni’s founders. A family, community and company were devastated. Katy Holt-Larsen, who joined the Kyäni family as president a year to the day after the crash, mourned the staggering loss of life as part of the larger direct selling community. “It was in every sense an existential crisis,” she explained. “How does any family survive the loss of so many fathers, sons and husbands? How does a growing company survive the loss of its CEO, half of its board of directors and two of its founders?” But on the following Monday morning, greeted at the door by remaining founder, Carl Taylor, there was a sense among HQ staffers that everything was going to be okay. There was kindness, calm, humor and tears, then they rolled up their sleeves and got to work.
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?
Moving Forward with Hope
It was hard, and it was tragic. But as set forth in their mission, Kyäni’s purpose is “to bring hope—the promise of a better life—through wellness and opportunity.” Collectively channeling their love and work into that mission of hope was the only logical way forward.
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.
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“When I came to Kyäni, employees and Business Partners were moving the business forward. They understood their jobs, and they understood and embraced Kyäni’s mission. There was no wallowing, and there was no confusion. They just got to work. I think Kirk and Jim would be proud of that,” Holt- Larsen says. “Our people—our Business Partners, customers and employees—are the reason why we have weathered every storm and tragedy and keep coming back even stronger. They’re the reason the Hansens and I founded this company, and they are the reason we continue to rise,” Taylor said. Kyäni’s unity in mission, as well as mutual trust and respect strengthened their already resilient culture, teaching employees and the field how to adapt, live out the Kyäni mission and push forward. “Research shows that employees and Business Partners that feel a greater sense of connection are far more likely to ride out volatility and be there to help companies recover and grow when stability returns,” Holt-Larsen said. They’ve seen this at Kyäni throughout the past two years. As they recouped from the events of November 2019, the coronavirus unleashed a global pandemic creating additional uncertainty and the need for just the type of adaptability and resiliency Kyäni’s staff and field already possessed. “A thriving business and a thriving Business Partner are going to find a way around an obstacle. That’s what we’ve done in the past, and that’s what we’ll continue to do,” Taylor shared. So, despite the challenges presented by the pandemic, Kyäni did what they needed to do and
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got on with business. They had the leadership structure, communications and outreach in place to maintain business and compliance amid COVID lockdowns in some 50 international markets. Everyone rolled with the punches and adapted to an online world, embracing the technologies that made their products, programs and business opportunity available online and used them more aggressively than they had in the past. And in adapting to new challenges, Kyäni discovered ways to improve their e-commerce capabilities during COVID, recognizing opportunities to make it even simpler for Business Partners to run their businesses and give customers easier access to their products and programs. The end result is Kyäni’s heavy investment in technologies that will make those experiences even smoother in the coming months and years.
Rising Together
Kyäni has spent the past two years rising together. Everything that they have experienced, all the work they have done and all that they have put in place to serve their customers and their field has pushed them toward a new future—a future that lies squarely with Nitro Nutrition. Under Holt-Larsen’s leadership, Kyäni embarked on this new nutritional program that they say was a natural evolution for the company’s health and wellness catalog. Created in coordination with Macdonald, Nitro Nutrition takes Kyäni’s existing products along with Macdonald’s approach to eating and exercise, and adds a lynchpin for success—a community where people can support each other. It is a program that puts all that together in a way that facilitates people meeting their health and nutritional goals. It also embodies Kyäni’s mission to bring hope—the promise of a better life through wellness and opportunity. Kyäni understands all too well that life can change in an instant. It happened to them; it happens to people every day. But the tragedy does not define what the company is. As Holt-Larsen says, “It simply affirms who we really are.” There is little doubt Kyäni knows precisely who they are. And they are emphatic that their time is now. DSN
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G LO B A L
OOL A GLOBAL /
Oola: Changing Lives Through a New Platform From finances to faith to fitness to fun, personal development is undergoing a renaissance.
C
BY JENNY VETTER
HANGING THE DIRECTION OF YOUR LIFE often starts with one moment, one decision. But what happens next? Will
you stick to the new path you’ve chosen? Or will you fall back into old habits and patterns? The Oola Guys, authors of Oola: Find Balance in an Unbalanced World, Dr. Dave Braun and Dr. Troy Amdahl, have been sharing their secret to lasting life change for the last nine years, but have recently taken a new path themselves—one that will introduce the “Oola Life” to millions more.
FOUNDED:
2021 HEADQUARTERS:
Arizona TOP EXECUTIVE:
Dave Braun Troy Amdahl Travis Ogden PRODUCTS:
Personal development
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e saw people getting burned out in network marketing. Fried,” Troy says. “They’d go get their crown on the stage, and they’re smiling for pictures but they’re just melting down once they walk off the stage because their life is completely out of balance.” Troy and Dave want to disrupt the network marketing industry with more than the first e-learning platform in the space—they want to shift the culture. Here’s how: n
n
n
CLOSED ON SUNDAYS The Office, the website for enrolling and buying, shuts down for a day of rest for Members, Ambassadors and the corporate team. IT’S YOUR BUSINESS Regardless of leadership level, Oola Ambassadors can operate additional businesses within the direct sales space. FINDING BALANCE Every Ambassador and corporate team member is encouraged to live out the seven key areas of Oola, finding more balance, not more hustle.
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The Oola Experiment
Before the bestselling book series and sold-out OolaPalooza events, Oola (short for ooh-la-la) was a simple idea hidden in a set of index cards that laid out seven areas of life that deserve every human’s attention—fitness, finance, family, field (career), faith, friends and fun. Focused on his goals since high school, Troy Amdahl had been pursuing balance and success in these seven areas, keeping track of his progress and goals through a set of three by five note cards. He’d shared his system with a handful of friends, and each December the friends would meet in Las Vegas for a guys’ trip that included time to check in with each other on their progress and design a life blueprint for the next year. “We would sit there just trying to be better guys,” Troy explained. “We would put these cards in seven stacks, each representing a key area of life. The world is telling you that you need to make this much money or you’re defined by your career and income, we were thinking, ‘What kind of husband do I want to be? What kind of father do I want to be? What are the things that I want to do in the next year for fun? What does my faith walk look like?’ ”
Thinking ERP? Think Squire.
O o l a G ive s Back / Ethiopia
One year, Dave Braun was invited along to celebrate graduation and a successful yearlong internship at Troy’s chiropractic practice, where the two had become great friends. “I found myself on the floor of the Hard Rock Hotel in Vegas with these note cards,” Dave remembered. “Back then, it was A NetSuite implementation like note cards and a couple guys in a system, that if you write from Squire is unique: down what you want, you understand where you are, where you want to go and how you’re going to get there. Then if you We take the time to understand take action on it every single day, you are going to eventually your business goals and get to where you want to go.” processes. Only then do we Inspired, Dave put the Oola framework to work, over time building the life he wanted: A beautiful family, a multimillioncreate a custom NetSuite dollar home, luxury cars, business investments—the whole solution that will meet your dream. But over time, he lost touch with Troy, lost sight of the unique business needs. seven key areas and ultimately lost everything—his home, his marriage…everything. Dave knew he needed to get back to the basic principles he’d learned that weekend in Vegas. He knew he needed to call Troy. “First of all, I reassured him, ‘Where you are is simply where you are,’” Troy shared. “I said, ‘I know you’re designed for something great. This isn’t who you are. This is just where you are. Who you are is that guy who used to sit in at the Hard Rock with big goals and dreams and made moves to make it happen.’ I said, ‘Let’s go back to that.’” “So, the next day I went up in the mountains and I had this little black notebook and newfound hope,” Dave said. “And NETSUITE IS THE WORLD’S MOST I was like, ‘What do I want in life? Where do I want to go?’ I DEPLOYED CLOUD ERP SOLUTION called Troy the next day and I said, ‘Dude, I’m going to get back to this Oola thing, and if it works for me, we’re going to share it with the world.’ And Troy said, ‘First things first, go get a job. We’ll deal with changing the world later.’ I still have that Learn more at a briefing seminar at notebook. It says: I want toUSAGE be a visionary leader, educator, OF TAGLINED trainer and facilitator of Oola around the world.” LOGOS One-tagline version of full color logo It’s safe to say the experiment worked. Dave found his way The tagline "AUDIT.TAX.ADVISORY" only accompanies the logo in back to Oola, put the seven key areas to work, got his life back circumstances where context requires clarification about what Squire can do and decided to share Oola with the world. Together with Troy, for current and potential customers (the audience). the two Oola Guys have since authored a series of books; For change example, Squire.com and itsaround the taken their message of life to venues Secondary-tagline subsequent web pages feature the onetagline version (HIGHER world; and have toured the country in a 1970 VW surf bus toversion of full color PERSPECTIVE ONLY) of the Squire logo AUDIT · TAX · ADVISORY logothe because the subpage content personally share Oola with people they meet. But they both throughout the site provides adequate visitors. people. felt that Oola could reachcontext evento more
netsuite.squire.com ( 801) 225-6900
On the other hand, if the team attends a national financial trade show where w w. d i r e citself t s e lfrom l i n g an e w s . c o m Squire should w differentiate neighboring financial software One-tagline company, then trade show banners need to include the tagline, “Audit-Taxwhite logo Advisory.”
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As leaders in personal development, Troy and Dave were often asked to share Oola with direct sales companies, which led to the Oola Guys meeting industry veteran Travis Ogden in 2013. Travis and Troy kept in touch as Oola grew and the two friends would frequently reconnect and talk about their lives, careers and goals. “They were looking to take Oola to another level in terms of impact, which is one billion lives in seven years,” Travis shared. “At one of our lunches, I just simply said to Troy, ‘If you truly want to have that level of impact, the best vehicle is network marketing.’” They talked through the possibilities of an e-learning personal development platform, shared through Oola Ambassadors, and accessible to everyone at a reasonable monthly price. But the Oola Guys had some hesitations. “We told Travis every reason we didn’t want to do it,” Dave laughed. “And then he told us every reason why we should. He explained what makes this different: It’s fully digital; it’s never going to go out of stock; there are no FDA concerns, no shipping issues. But what really opened up our eyes was this: We want to be the number one personal development company in the world. We want to impact a billion lives over the next seven years. And we know that with a subscription-based model, we could do that. So, that’s what we set out to do.”
The Oola Lifestyle Framework
Over the next year or so, the Oola Lifestyle Framework came to life—an online membership-based platform, accessible via desktop or mobile app, fully customized to each member’s unique demographics, struggles, goals and dreams. The platform consists of a structured goal-setting framework, a community of fellow Oola Subscribers and accountability through personalized tracking in the app. As Troy explained, “It’s not just an e-learning platform; it’s not just a community; it’s not just a technology like an accountability app or a companion app. It’s all of these things in one platform.” Members join Oola and pay $77 for their first month to enjoy the platform, vibrant community and personalized tracking tools, then $47 per month thereafter. Ambassadors join Oola at the same
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cost, with an additional $97 per year fee for the annual business suite, which includes a personalized website, business app, marketing app and access to live monthly master classes with Dr. Dave and Dr. Troy. The platform launched in July 2021 with over 2,800 founding Ambassadors and has grown to over 3,200 Ambassadors and over 1,100 Members to date. Though the Oola monthly subscription platform only launched this summer, exciting additions to the framework are already underway. In November Oola introduced a stand-alone course called “The Green Gap,” which focuses on helping Subscribers start the journey to becoming debt-free. In connection with this new course, a new retail customer type was introduced, to allow individuals to be able to purchase the stand-alone course without being a monthly subscriber to the Oola Lifestyle framework. A second stand-alone course is scheduled to launch in early 2022, with additional topic-focused courses in development. Currently, Oola is serving Members in 15 countries around the world, with Ambassadors and the related business opportunity available in the United States, Australia and New Zealand. As Oola expands, Troy and Dave’s dream of reaching one billion people seems well within reach. “I know how much Oola helps people to put their life into perspective and understand they have control over their choices,” Dave shared. “Their thoughts and their choices and their actions are helping them pay off debt, be a better parent or simply love themselves more. Oola gives you the tools you need to overcome things. I would love to see that in the hands of as many people as I can.” DSN
A
SPECIAL
THANK-YOU
to all our sponsors for their generous support of DSA ENGAGE 2021.
TM
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4 Tips for Treasurers to Reduce Risk & Add Value with Global Treasury Management BY J O S E P H B E R TA LLI
I
1 / Manage Globalization
N TODAY’S fast-paced global economy, treasurers whose companies make global payouts enhance the value delivered to their enterprise when they merge their traditional role of managing risk and providing liquidity with executing strategic vision and enabling competitive advantages. Direct selling enterprises can provide competitive advantages through implementing strategic payout processes and technology. Partnering with the right global payout platform can help treasurers of international businesses achieve both. Here are four actionable tips on how treasurers of direct selling businesses can add value and reduce risk with improved global treasury management for global payouts:
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As the trend of business globalization continues heavily in the direct selling space, treasury is an increasingly international operation. Implementing a global treasury system is an important initiative for international businesses to ensure operational proficiency and compliance with local practices and regulations. Treasury rules and regulations vary between countries and can be a complicated area to navigate. It is essential for companies that are expanding globally to recognize that business practices can differ in local markets. The complexities of treasury are magnified as companies expand into emerging markets or multiple markets simultaneously. Businesses can structure their governance systems to recognize these global differences and strengthen their responsiveness to local requirements. This can often be a headache for CFOs and treasurers, especially in emerging markets where governance is often weak or nonexistent. It is critically important to select partners and service providers that understand local markets and effectively respond to varying practices and regulations to lift the burden off internal finance teams.
Direct selling enterprises can provide competitive advantages through implementing strategic payout processes and technology.
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In summary, direct selling organizations can manage global growth by: n
n
n
Recognizing that business practices, rules and regulations can differ in local markets and across countries Structuring governance systems to recognize these differences and strengthen responsiveness Choosing technology partners that understand these differences
2 / Mitigate Risks
With global growth comes the onset of more complex treasury activities and corresponding risk. There are four very important risk areas for treasurers to consider to lower their company’s risk profile including: n
Foreign exchange
n
Money laundering
n Taxation n
Data and information security
Foreign Exchange / Companies can reduce foreign exchange (FX) risk and manage working capital more effectively by matching local currency revenues with payouts in the same local currency. There is a strategic benefit for global direct selling businesses to match local currency revenues as most distributors prefer to be paid in local currency to avoid the burden of FX fees that they would have to bear if they are paid in U.S. dollars. By conducting payouts in local currency, global businesses can gain a competitive advantage while reducing foreign exchange risk. Money Laundering / Anti-laundering regulations across regions must be met to reduce risk and to ensure smooth and timely execution of payments and transfers. Treasury departments of global direct selling enterprises are tasked with the crucial responsibility of eliminating the risk of fraud and asset mismanagement.
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In today’s fast-paced global economy, treasurers are critical leaders who deliver tremendous value to companies. Taxation / Tax is a complex yet integral subject for businesses that is dependent on many factors unique to each company. Treasurers of U.S. entities must strategically manage their foreign profits and repatriation of those profits to ensure the most tax efficient structure. This can be a complicated task for treasury teams. Consultation with a tax professional is essential to formulating and executing any tax strategy. Data and Information Security / The threat of cyberattacks continues to grow globally. According to research by the Ponemon Institute, the average cost of a data breach grew to a record-high $4.24 million in 2021. Finance and treasury departments are a prime target for hackers and fraudsters. Corporate treasurers need to ensure their financial data—and that of their distributors—is protected and secure.
3 / Manage Cash Flow and Liquidity
Ensuring cash is in the right place, at the right time, in the right currency is an omnipresent never-ending key focus for treasurers. Corporate treasurers safeguard cash flow and make sure funds are circulating around the business smoothly. Effective global treasury management ensures the financial health of the company by optimizing liquidity and carefully managing relationships with banking partners, ensuring cash is available and payments are made and received on time.
Streamlining global payment processing is an important part of managing and optimizing cash flow. It minimizes costs associated with the complexity of supporting numerous countries and currencies, increases the speed and efficiency of payouts and consolidates corporate global treasury reporting. In the rapidly evolving world of payments, global enterprises are able to track real‑time payment data and instantly respond to their liquidity position.
4 / Reduce Costs
Be Customer‑ Centric Recognized. The Customer-Centric Recognition (CCR) Program
Reduce rework of correcting failed ACH/EFT transfers
n Avoid
security risks by eliminating burden of storing personal banking information
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CCR G O L D
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MER CEN D E C T O G N I Z E TO R S
CCR P L A T I N U M R
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Eliminate FX fees with local currency payout options
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Re-deploy resources to value-added activities
In today’s fast-paced global economy, treasurers are critical leaders who deliver tremendous value to companies. This value is enhanced when treasurers merge their traditional role of managing risk and providing liquidity with executing strategic vision and providing competitive advantages. Providing competitive advantage can be accomplished through implementing strategic payout processes and technology. Treasurers have the vision and, with the right global payout platform that provides valuable tools, global businesses can effectively manage payouts to countries across the world with local currencies to gain a competitive advantage. DSN
R
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Reduce cost of ACH/EFT payments and paper checks
customer‑to‑distributor ratios and prioritize customer sales.
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companies utilize business models that boast high
IC
Consolidate payments with a global payout provider
a customer‑centric future for the industry. Qualifying
IC
n
celebrates companies that are leading the way toward
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We live in a world of constraints, and achieving global treasury goals on or under budget is part of the treasurer’s daily charge. Partnering with a global treasury management solution helps treasurers achieve payment processing goals. Treasurers should ensure the following needs are met when choosing the right solution for their global company:
The CCR Program is based solely on a company’s customer-to-distributor ratio taking into consideration the following definitions:
D E C O G N I Z E
n Distributor—someone who DOES have a distributor agreement in place n Customer—someone who DOES NOT have a distributor agreement in place n Active is defined as each customer and distributor must have made a product purchase during the last six months. Active customer and distributor counts are limited to those in the U.S. and Canada. Companies must have been 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 JOSEPH BERTALLI is the Chief Financial Officer & Treasurer at PayQuicker. PayQuicker is a leading provider of financial transaction and treasury management technology and innovation for direct selling enterprises across the globe. Visit www.payquicker.com to learn more. 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
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
LISTEN TO THIS. T WO DIFFERENT PODCASTS, UNIQUELY DESIGNED FOR TODAY’S DIRECT SELLING EXECUTIVES.
SUBSCRIBE TO BOTH NOW!
N E W
P E R S P E C T I V E S
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B U S I N E S S
C A S E
FO R
D I V E R S I T Y,
EQ U I T Y
The Business Case for Diversity, Equity & Inclusion The numbers don’t lie: racial equity initiatives & hiring practices are crucial for developing longevity and profitability. B Y SIMON T. B A IL E Y
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I N C LU S I O N
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ID YOU KNOW that black buying power within the United States has now reached $1.5 trillion? By 2024, that number is going to grow to $1.8 trillion—a number that is larger than the GDP for Mexico. Did you know that the Hispanic buying power for Hispanic Americans is $1.4 trillion, or roughly the GDP for Australia? Did you know that the buying power for Asian Americans is currently $1.2 trillion and expected to grow to $1.4 trillion in the next few years? How much of this buying power are you leveraging every single day?
Statements Versus Standards
As you assess your team’s current state, consider a Washington Post article released this year entitled Corporate America’s $50 Billion Promise. When you look at the breakdown of how this $50 billion was allocated, only $71 million went to organizations focused on criminal justice reform. I mention that because the bigger question is, why are we here again? It’s not to say Corporate America didn’t step up, but there’s a difference between pressure and practice. You cannot pledge your way out of systemic racism. While the companies in this pledge made a statement, it was not a standard. Everyone wants a seat at the table. When you invite people to the table, you aren’t just offering equality, you’re offering racial equity. This is about giving a hand up, not just a handout—which, it turns out, is not only the right thing to do, it’s good business.
A Trillion-Dollar Opportunity
So, who is currently incorporating effective racial equity initiatives into their business strategy? Let’s look at some examples. n Salesforce decided they would create ventures that will invest $100 million in marginalized communities to help those businesses level-up and have a seat at the table. Salesforce has also gone on record to say that by 2023, they will increase their leadership ranks by 50 percent as it relates to people of color being directors and vice presidents in their organization. They are intentionally impacting communities that have been marginalized and disenfranchised.
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N E W
P E R S P E C T I V E S
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B U S I N E S S
C A S E
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D I V E R S I T Y,
EQ U I T Y
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I N C LU S I O N
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Having hard conversations is good business. Racial Equity Role Models
n McDonald’s
announced they will not only continue to invest $1 billion in black suppliers, but also that they understand it is not enough to have two board members who are black and two women on their board. Over the next few years, they have plans to increase diversity within their executive ranks by 25 percent.
n Nike’s CEO
has gone on record saying that Nike would not be the company it is today if it had not had the support of black Americans and the black population around the world. Who is at the table making decisions for your company? The McKinsey Global Institute’s research is saying that in the United States, there is a linear relationship between racial and ethnic diversity and better performance. For every 10 percent increase in racial and ethnic diversity on the senior executive team, McKinsey says earnings before interest and taxes rise 0.8 percent. And in their study of 1,000 organizations in 12 countries, they found that organizations in the top 25 percent when it comes to gender diversity among the executive leadership teams were more likely to outperform on profitability and value creation. And think about this particular piece of data: The Center for Talent Innovation says teams are 158 percent more likely to understand target consumers when they have at least one member who represents their target’s gender, race, age, sexual orientation or culture. When you consider those numbers, where does your organization sit right now? Do you have individuals who have their finger on the pulse of trillions of dollars of buying power?
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In October 2019, T-Mobile said they didn’t want to just throw dollars at the problem, but rather think longterm how they could grow together and solve racial injustice once and for all. They set aside $25 million and created a memorandum of understanding with organizations like the National Urban League, the National Action Network and the League of United Latin Americans to really look at how they think about talent, culture and brand. Netflix has invested $100 million in disenfranchised communities and, understanding that it’s not just enough to write a check, they specifically look at putting money into financial institutions in black communities. Dr. Stacy Smith with the University of Southern California Annenberg Inclusion Initiative says, “When you have diversity and inclusion behind the camera, you will have diversity and inclusion in front of the camera.” I had the opportunity to speak with the team at General Mills this year. The company is headquartered in Minnesota, which has one of the lowest ranked education systems for black Americans in the country. In Minneapolis, the incarceration rate of blacks is 11 times higher than whites and, according to NPR, while 84 percent of whites in Minneapolis own their home, less than 25 percent of blacks do. In response to these statistics, General Mills looked at whole equity and representation and made the choice to double the representation of black managers, increase minority representation to 25 percent, and double its spending with minorityowned suppliers. Then it partnered with other local brands to create the Minnesota Business Coalition for Racial Equity which specifically focuses on workplace, policy, philanthropy and allyship, and outlines how the group will tackle education, housing, healthcare and internet access. All of these things help individuals level up. This is the conversation. Equality, yes, but the goal must be equality plus equity.
Your Next Steps
What can you do? First, it starts with a CEO’s commitment. The Corporate Leadership Council says emotional commitment is four times more important than rational commitment in driving discretionary effort. When the CEO is committed to the goal, the conversation flips from “this is something we have to do” to “this is something we want to do.” That emotional commitment lets the entire organization know this is important. As leaders consider how to approach these important strategic decisions, the website CEOAction.com can be a powerful resource, providing examples of what 2,000 CEOs from 85 different industries are doing every single day to think about racial equity through a fresh lens. From there, establish an executive champion who will own the mission and ensure that racial equity does not get pushed to the back burner while also providing accountability for implementation. This champion will keep the organization focused on how talent is attracted, activated and advanced; which policies impact the people you serve; how much purchasing power is spent with diverse businesses who need a seat at the table; and the measurable net impact of your philanthropic initiatives. People, policy, purchasing power and philanthropy— that’s how we begin addressing racial equity.
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TOTALLY MOBILE & SOCIAL
SIMON T. BAILEY’S purpose is to spark listeners to lead countries, companies and communities differently. He goes beyond feel-good content to deliver practical strategies, based on 30 years of experience in the hospitality industry, including serving as sales director for Disney Institute, based at Walt Disney World Resort.
FABULOUS PARTY MANAGEMENT
Having hard conversations is good business. If we really want to understand how we can make a great impact and take a long-term view of this trillion-dollar opportunity before us, we need to ask how we will lead differently. McKinsey tells us that companies pay a penalty for a lack of diversity. Organizations in the bottom 25 percent for both gender and cultural diversity were 29 percent less likely to experience profitability above the industry average. Working to create racial equity isn’t just the right thing to do, it’s a proven strategy for developing longevity and success. Where are you right now in your diversity, equity and inclusion journey? DSN
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.
D S A
M E S S AG E
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Looking Back, Forging Forward
A
S WE APPROACH the holiday season, I reflect on how we emerged from DSA ENGAGE 2021 in New Orleans on November 2nd. The direct selling community is poised to work together and bring forth a bright future. DSA’s 2021 Growth and Outlook Report showed a 13.2 percent in 2020, or more than 7.7 million entrepreneurs participating in direct selling on a part- or a full-time basis. This reality, coupled with the DSA Industry Research Committee’s forecast of 4 to 7 percent growth in 2021 for U.S. direct selling, is terrific news. Yes, we are in demand. Still, scrutiny abounds. We have heard the myths, misunderstandings and misrepresentations before. And while it’s time for us to yell from the mountain top about our brands and products, we must also look inward to ensure we all do our part to protect the channel. We must ensure that our cultures align with company values in ways that uphold our brands. I offer five points gleaned through conversations with the DSA Board of Directors and leaders from the World Federation of Direct Selling Associations to consider as we embark upon direct selling’s bright new era.
Point One: Focus on product sales. While we’ve always balanced offering our opportunity with product sales, the key to growth and sustainability is ensuring that our products can compete effectively in the marketplace. Demonstrating a commitment to product excellence will help bring forth an increased understanding of our business model.
Point Two: Focus on the end consumer. As the retail economy has transformed, it’s become clear that businesses must better understand their ultimate consumer. We must continue navigating the transition of fostering
a relationship between our brands and the ultimate consumer without doing any disservice to the core of our model, the relationship with our independent seller.
Point Three: Simplify direct selling’s nomenclature.
JOSEPH N. MARIANO is the President of the U.S. Direct Selling Association and the Direct Selling Education Foundation.
Our language, a true by-product of our history, contributes to the myths and misunderstandings surrounding us. Easy to understand language helps every audience—including regulatory audiences, who, by the way, I should tell you are also confused by our terminology—better understand who we are and what we do.
Point Four: Simplify compensation plans complexities. Compensation plan experts have joined DSA at meetings with Federal Trade Commission officials. Discussions about multilevel compensation plans’ finer points often leave these regulators focused on their complexities. If these officials can’t understand these plans, then a typical consumer can’t understand them. And if a typical consumer can’t understand it, the potential for abuse and deception exists.
Point Five: Scrupulous attention to income and product claims. Accurate product and income claims lead to business success. Recent government actions and association guidance, as well as social media and press activism, make clear the negative consequences of misleading claims. I’m looking forward to the wisdom that you all share during upcoming DSA events. As we move forward together to better, I urge the entire channel to use these five points as guideposts for bringing us into the future. I wish you all and your families a very happy holiday season. DSN w w w. d i r e c t s e l l i n g n e w s . c o m 9 1
For nearly 50 years, Squire & Company has provided financial excellence and NetSuite expertise for clients in the Direct Selling industry. We offer personal service, responsiveness, and expertise in all areas.
INTERNATIONAL PAYOUT SYSTEMS INC. 540 NE 4th St. Fort Lauderdale, FL 33301 866-218-4668 i-payout.com
Upgrade to the most customizable payment solution available. Expand your global footprint to over 180 countries and have more than 20 payout and pay-in options for your participants. And, we really can customize our solution to fit your needs exactly—and help you grow.
PAYQUICKER 400 Linden Oaks, Suite 320 Rochester, NY 14625 844-258-3006 www.payquicker.com Instantly make secure and compliant global payouts to your distributors in local currency with PayQuicker’s fully customizable, client-branded solution. We offer secured bank accounts with prepaid debit cards, virtual cards and more—all through a single point of integration.
1160 N. Town Center Drive, Ste. 100 Las Vegas, NV 89144 702-757-9600 www.metricsglobal.com
Landing a more sophisticated brand of talent takes a more sophisticated recruiting partner. Bringing 25 years of Direct Sales executivelevel experience from around the world and with a Team speaking 5 languages we know what it looks like to have success in a diverse and international environment. Our goal is to become an extension of your brand.
SCP offers the most holistic consulting services specific to direct selling companies today. We’ve worked with more than 70 companies over the last three years alone, and served more than 250 years collectively in the industry.
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2201 Long Prairie Road, Ste. 107-316 Flower Mound, TX 75022 407-891-9265 https://strategicchoicepartners.com/
DECEMBER 2021
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.
S E L L I N G N E W S
727 North 1550 East 3rd Floor, Orem, UT 84097 877-267-4324 www.cmsonline.com
Keller, TX 817-697-4321 www.cpkrell.com
STRATEGIC CHOICE PARTNERS
92 D I R E C T
COMPLETE MERCHANT SOLUTIONS
CP & KRELL GROUP
LACORE PAYMENT TECHNOLOGIES
900 Wilmeth Road, McKinney Texas 75069 Info@lacoretechnologies.com www.lacorepayments.com/
C R E D I T C A R D/ PAY M E N T P R O C E S S I N G
1329 South 800 East Orem, Utah 84097 801-515-0977 www.squire.com
C O M M I S S I O N PAY M E N T S E R V I C E S
SQUIRE
C O N S U LTA N T S /M A N A G E M E N T
C O M M I S S I O N PAY M E N T S E R V I C E S
A C C O U N T I N G S O F T WA R E /S E R V I C E S
SUPPLIER DIRECTORY
We are the industry’s leading payments partner, long-established advocate, and problem-solver. Our unified commerce & payments platform will connect you to a global marketplace, enable your international expansion strategy, and fuel your exponential growth plans. Let us show you how. Contact Us: info@metricsglobal.com
NEXIO 727 N 1550 E, 3rd Floor Orem, UT 84097 1-877-551-5504 www.nexiohub.com Nexio manages the chaos of payments offering: • Faster roll out for distributors or partners • Simplifies payment processing for corporations Nexio does this by being integrated with the majority of back-office software solutions in the Direct Sales Industry.
CANADA CARTAGE LOGISTICS SOLUTIONS
1615 Clark Blvd. Brampton, Ontario L6T 4W1 905-564-2115 x2 www.canadacartage.com/logistics Single Source Solutions, Order to Delivery B2C Solutions, On-Time Order Fulfillment, Real-Time Inventory Visibility, NHP Site Compliant, SOP/GMP Compliant, and locations across Canada.
900 Wilmeth Road, McKinney Texas 75069 214-817-4802 www.lacorelogistics.com LaCore Logistics provides distribution and order fulfillment services. Our highly automated distribution center provides both domestic and international direct-to-consumer shipping solutions. We offer omni-channel fulfillment solutions ranging from marketplace fulfillment for leading marketplaces to businessto-business fulfillment for leading retailers.
KATAPULT EVENTS 5840 Red Bug Lake Rd, Ste. 140 Winter Springs, FL 32708 407-915-9060 www.katapultevents.com Fresh. Exciting. Bold. Your field deserves the best and we help you deliver. Out-of-the-box creative production with experienced show management. We execute on budget and make you look AMAZING!
E X E C U T I V E R E C R U I TM E N T
Handle fulfillment for 14 direct sellers. DSA member with 15 fulfillment centers, nationwide, for 1–2 day delivery to 95% of the US. Offer comprehensive B2C fulfillment services, including complex kitting, plus discounted parcel shipping based on our large volume of freight.
LACORE LOGISTICS
INCENTIVES/RECOGNITION
4505 Newpoint Place Lawrenceville, GA 30043 866-888-2999 Sales@AmwareLogistics.com www.AmwareLogistics.com
D I S T R I B U T I O N / F U L F I L L M E N T/ LO G I S T I C S
AMWARE FULFILLMENT
EVENT PRODUCTION
D I S T R I B U T I O N / F U L F I L L M E N T/ LO G I S T I C S
TO BE INCLUDED IN THE SUPPLIER DIRECTORY, EMAIL ADVERTISING@DIRECTSELLINGNEWS.COM
HANNA SHEA 1835 W Chandler Blvd 103, Chandler, AZ 85224 844-344-7177 www.hannashea.com Since 2007, Hanna Shea Executive Search has been the go-to search firm in support of the direct selling industry. Hanna Shea finds top talent for companies in need of building or improving an executive leadership team for organizational success.
CUSTOM TRAVEL SOLUTIONS 27 S Main St #17 Travelers Rest, SC 29690 864-990-3074 www.CustomTravelSolutions.com Recruit and retain the right people for your organization — We are the world’s largest “white label” travel club builder.
GLOBAL ACCESS
MULTI IMAGE GROUP
E.A. DION, INC.
2889 Ashton Blvd, Ste. 350 Salt Lake City, UT 84070 877-811-8108 www.globalaccess.com
1701 Clint Moore Road Boca Raton, FL 33487 800-523-2682 www.mig.cc
33 Franklin McKay Road Attleboro, MA 02703 800-445-1007 www.eadion.com
International expansion expertise and technology and logistics solutions that grow clients’ businesses and brands around the world.
Established in 1979, Multi Image Group (MIG) is a women-owned, family-run creative event production company fueled by innovators, strategists, and technologists who craft custom virtual, hybrid, and in-person live experiences for some of the world’s biggest brands.
Dion’s jewelry solutions are perfect for career path, sales & recruiting, corporate anniversaries and incentive travel recognition awards.
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M A R K E T I N G/ B R A N D I N G
M A N U FA C T U R I N G/ P R O D . D E V E LO P M E N T
1080 Caribbean Way Miami, FL 33132 Royal Caribbean International’s Corporate Sales Team 800-345-7225 (SELECT 2, THEN 1) www.royalcaribbeanincentives.com ICONIC SHIPS. EPIC ADVENTURES. ULTIMATE EVENTS. Royal Caribbean® transforms events into the ultimate productivity paradise. Impress your attendees with epic venues, vibrant restaurants, onboard thrills and beautiful destinations.
BYDESIGN TECHNOLOGIES 9503 Princess Palm Avenue Tampa, FL 33619 813-253-2235 www.bydesign.com Award winning SaaS solutions including Geneology Management & Commissions, Inventory, Replicated Websites, Premier Rep Tools, Branded Mobile App, Virtual Parties, E-vites, Hostess Rewards, Bookings, Social Sharing, Promotions, & Shopping.
S O F T WA R E / T E C H N O LO GY S O LU T I O N S
ROYAL CARIBBEAN INTERNATIONAL
S O F T WA R E / T E C H N O LO GY S O LU T I O N S
INCENTIVES/RECOGNITION
SUPPLIER DIRECTORY INFOTRAX SYSTEMS 1875 S. State Street, Ste. 3000 Orem, UT 84097 801-431-4900 www.infotraxsys.com Software & SaaS solutions for startup, emerging, and global direct selling companies. See our ad on the back cover.
VERICAST
DIRECTSCALE
2435 Goodwin Lane New Braunfels, TX 78132 sales@dsa.harlandclarke.com www.vericast.com
1510 N. State St. Orem, Utah 84057 801-701-3285 www.directscale.com
VERICAST FUELS COMMERCE We create meaningful connections between your business and the people that you serve how, when and where it matters. By pushing the boundaries of data and insights, we spark discovery and inspire action to create profitable results.
The most customizable enterprise SaaS platform for managing all aspects of your direct selling, affiliate and influencer marketing business. Edit your comp plan and test it against your live data! From startup to billion dollar company, it automatically scales to meet your needs so you never have to upgrade again.
NOW TECH
EXIGO
JENKON
5800 Democracy Drive, Suite 100 Plano, TX 75024 310-428-9936 www.now-tech.com
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 most comprehensive and powerful business management solution for direct sellers. We put more than 35 years of industry experience into creating strategies and tools to consistently grow your business. Contact us for a demo today.
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.
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INTERNATIONAL DIRECT SELLING TECHNOLOGY CORP. 1208 E. Kennedy Blvd., Ste. 222 Tampa, FL 33602 813-277-0625 www.idstc.com
Global Operations Management Software. Advanced Comp Plan Programming. Sales Force Backoffice & Automation. Web Site Design & Replication.
MW2 DIRECT 2033 Gateway Place, 5th Floor San Jose, CA 95110 408-573-6310 www.mw2consulting.com/direct Combine the Magento Platform with powerful social and direct selling features available in the MW2 Direct platform. Solving Digital Transformation for direct selling with personalization, party management, influencer marketing, commission, analytics.
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.
TA X S E R V I C E 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.
“
Confidence in your media partner’s extensive reach and deep knowledge in the industry is a priority for PLT Health Solutions when promoting our brands, and Direct Selling News is
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!
one of those partners. — STEVE FINK / Vice President
PLT Health Solutions 844-758-4325 / PLTHEALTH.COM PAGE 21
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