Direct Selling News - August 2020

VOLUME 16 / ISSUE 8

AUGUST 2020

BILLION DOLL AR MARKETS W F D S A D I S S E C T S G L O B A L S A L E S D ATA FOR A CLE ARER PICTURE

F E AT URE / NEORA: THE ACCIDENTAL ACTIVIST FEATURE / WORKING REMOTE IS THE DNA OF DIRECT SELLING FEATURE / INTERNATIONAL COMPANY FOCUS

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With Gratitude to Our Direct Selling Clients and Partners for Making Exigo the Established Global Leader.

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

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

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

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

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

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

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& THANK YOU 2020 SPONSORS PLATINUM SPONSORS

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GOLD SPONSORS

SILVER SPONSORS

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

2 0 2 0

FE AT URES

NEORA: The Accidental Activist B Y SAR AH PAU LK Working Remote is the DNA of Direct Selling

BY J O S H ELLI S

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SPOTLIGHTS

International Company Focus

H ere’s what three growing companies, Oriflame, PM-International and Atomy, are doing to adapt to changing circumstances and prepare for life—and growth—after pandemic.

B Y C O U RTN E Y R O U S H AN D

64

60

J EN N Y VE T TER

ONE VOICE

60 Q&A with Magnus Brännström:

CEO and President of Oriflame and WFDSA Chair

84 Can You Afford Not Going W O R K I N G S M A R T/

International?

B Y M I C HAEL M C C LELL AN

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IN EVERY ISSUE 6-7 AD INDEX // 9 FROM THE EDITOR // 11 INDUSTRY NEWS // 24 FORWARD THINKING // 89 DSA MESSAGE // 90 VENDOR DIRECTORY //

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

FOUNDER AND CEO

Stuart P. Johnson PUBLISHER AND EDITOR IN CHIEF

Todd Eliason teliason@directsellingnews.com MANAGING EDITOR

Patricia White C R E AT I V E D IR E C T O R

Julio Garcia SENIOR ART DIREC TOR

Susan Douglass

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ART DIREC TORS

Laura Castillo Jenny Paredes PRODUCTION MANAGER

Virginia Le

COVER STORY

2019 BILLION DOLL A R M A RK E T S

WFDSA Dissects Global Sales Data for a Clearer Picture.

COPY EDITOR

Peter Tepp BUSINESS DE VELOPMENT MANAGER

Melinda Bogoslavsky mbogoslavsky@directsellingnews.com CONTRIBUTORS

Josh Ellis J.M. Emmert David Lee Sarah Paulk

Courtney Roush Beth Douglass Silcox Jenny Vetter

BY BETH DOUGLASS SILCOX

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

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

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

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

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There is POWER in Partnership > What part of your business would benefit by bringing in a supplier to help your team be more efficient?

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ELEGATING time-intensive

business functions to highly skilled suppliers provides the breathing room to focus on unique skill gaps, like training team members on best practices, getting up to speed with new technology or customer service response that many organizations overlook.

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contacting these companies or those in our Vendor Directory (starting on page 90), please let all of our valued advertisers know that you saw them in Direct Selling News.

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& Thank you to all our 2020 Supplier Sponsors

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FROM THE PUBLISHER Continued Optimism for Future Growth

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E ARE pleased each year to provide you with an analysis of the World Federation of Direct Selling Associations’ global sales data. Writer Beth Douglass Silcox identifies the 24 global markets with retail sales of $1 billion or more from direct selling. She also digs into the 2019 numbers to not only extract the economic impact our industry is having on economies around the world but also reveals some insights about the future: • $180.5 billion (Constant U.S. Dollars) in estimated retail sales globally for 2019.

Excluding China, worldwide retail sales showed a year-over-year increase of 1.4 percent with all regions around the globe up from 2018.

• Global sales results, including China, resulted in a decrease of 4.3 percent, which was hampered by China’s 100-Day review on wellness companies earlier in the year.

• Last year’s list of 24 Billion Dollar Markets remained the same in 2019 with some minor shifting in rank.

• The top ten countries on the list—led by the U.S.—generated 78 percent of global estimated retail sales.

• The industry’s global sales force dropped 1.7 percent from 2018’s 122 million to 119.9 million in 2019 but showed a solid 1.8 percent CAGR. This month we take a look at three international direct selling organizations who are leaning on their strengths throughout our current circumstances and planning for a future of growth: • Oriflame—Active in 60 markets and over three million brand partners, Oriflame is a leader with eyes on a beautiful, sustainable future.

• PM International—Investments in R&D positions the company to deliver on their founder’s vision of growth.

• Atomy—Proving that work and play aren’t mutually exclusive.

Next, we check in to see what NEORA has been up to. Known for its powerful skincare products and exponential growth rates, the company continues to innovate, both inside their company and now on behalf of the industry as they take on the FTC. “We’ve been very open to what the facts are,” says Co-CEO Deborah Heisz. “This is not about NEORA; it’s about the industry. The industry is under attack, and unless everyone advocates, it is a potential issue for every single company, regardless of what your numbers are.”

Before the COVID-19 pandemic, Young Living COO Jared Turner was never a big fan of remote work. He’s singing a different tune now. Gone are his notions, held over from a background practicing law, that productive collaboration, strategic thinking, and innovation can only best be accomplished by a 9-to-5, in-office work environment. By allowing staffers to telecommute, he expects that retention will be improved as employees appreciate the perks of working from the comforts of their home, or anywhere.

I hope you enjoy this issue as much as we loved putting it together. Thank you to all the companies who were so generous with their time helping to make this issue one of the year’s best.

All the best,

TODD ELIASON | PUBLISHER AND EDITOR IN CHIEF | teliason@directsellingnews.com FOLLOW US ONLINE:

@directsellingnews

@DSNUpdate

Join our LinkedIn Group w w w . d i r e c t s e l l i n g n e w s . c o m 9

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7/21/20 11:06 AM

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IN THIS ISSUE

12

T HE MON T H IN NE W S A F F E C T IN G O UR C H A NNE L

Leading Off M A IN S T OR Y by John F leming

Direct Selling Stocks’ Performance Brings Optimism for Industry

IT ’S TIME F OR YOUR VOICE T O BE HE A RD

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Beautycounter, Sephora Team Up

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DSA Issues Statement on FTC Letters to Multilevel Marketers

OVID-19 has changed the game and so will the resurrection of the social justice movement.

The direct selling model has been approaching an inflection point for more than a few years. We have never experienced a threat to the health and welfare of nations as we are experiencing today.

Add to that the events of the past few weeks, during which we have seen an unprecedented global outcry for repairing social injustice, and one could easily say that these are indeed the most challenging of times.

W H AT C A N W E LEARN? Throughout my direct selling career, whether in my days

of direct involvement or indirect involvement, I have often said that direct selling is one of the finest, if not the finest, entrepreneurial force for good on the planet.

I have also enjoyed hearing the same words from other leaders who hold leadership positions within direct selling companies. I share with you this thought: It is time for your voices to be heard, loud and clear, as to what you and your company truly stand for.

In 1968, when reflecting on the civil rights movement, Dr. Martin Luther King Jr. said: “In the end, we will not remember the words of our enemies but the silence of our friends.”

“IT IS TIME FOR YOUR VOICES TO BE HEARD, LOUD AND CL E A R , A S T O W H AT YOU AND YOUR C O M P A N Y T R U LY S TA ND F OR .”

We know that it is not the products alone that could ever be the sole fuel to the building of a successful direct selling company or any direct selling business.

Direct selling companies depend on attracting people from all walks of life. Those individuals choose a given …

To read the full news feature, scan the QR Code, or visit http://bit.ly/DSNQR

“

T H E Y S A ID I T !

18

Why Working Virtually Is Great for Businesses

What do I really stand for? Who else knows?

Do they know now?

— J O H N F L E M I N G , M e m b e r o f t h e D S A H a l l o f F a m e , D S E F C i r c l e o f H o n o r , a n d r e c i p i e n t o f t h e D S N Lifetime Achievement Award w w w . d i r e c t s e l l i n g n e w s . c o m 1 1

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PLT CE

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

directsellingnews.com /category/news/

News in Brief

Direct Selling Stocks’ Performance During Pandemic Brings Optimism for Industry

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irect selling stocks continue to outperform the Dow Jones Industrial Average (DJIA) amid the current pandemic environment*.

Insights from investment banking and business development firm Transformation Capital show that both large-cap and small-cap direct selling stocks have continued to exceed financial expectations since early March, when the coronavirus began to have an economic impact on businesses.

“While recent performance has been impressive, we believe that, if combined with stable, or upside market action, there could be additional room for the leading direct selling stocks to run,” said Stuart Johnson, CEO of Transformation Capital. “As businesses return to normalcy (or a new normal), we believe there is reason for optimism and remain bullish on the industry as a whole.”

L ARGE-CAP STOCKS The DJIA has recorded a decline of 3.33 percent since March 1, following a slight increase of 1.7 percent during the month of June. By comparison, Herbalife Nutrition, Ltd. (NYSE: HLF), Nu Skin Enterprises, Inc. (NYSE: NUS), Medifast, Inc. (NYSE: MED) and USANA Health Sciences, Inc. (NYSE: USNA) are all exceeding financial expectations.

NUS has more than tripled since its mid-March lows, HLF has nearly doubled and MED is up 167 percent. USNA, despite a June decline, remains up 61 percent from its mid-March lows.

• Medifast emerged as the clear leader of the group during June, after rising nearly 37 percent during the period, and now stands 73 percent above its February closing price.

• Nu Skin rose slightly during June (2.8 percent), continuing a strong trend that has seen the stock increase by 56 percent since the beginning of March 2020.

• Herbalife increased 2.6 percent during June and has now increased by 31 percent since March 1.

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• USANA declined by 13 percent in June; however, the company remains positive for the subject period and continues to outperform the DJIA. SM A LL-C A P S T OCK S Among smaller capitalization stocks within the direct selling industry, all but one have continued to outperform the DJIA during the subject period.

• Tupperware Brands Corporation (NYSE: TUP) was a standout during June and surged early in the month, on strong upside volume, before pulling back and ending the month with a gain of more than 45 percent. Since March 1, TUP has increased more than 75 percent.

• Natural Health Trends Corp. (NASDAQ: NHTC) has been the leading performer among the small-cap stocks during the period, rising more than 79 percent over that time and more than doubling since its mid-March low.

• Mannatech (NASDAQ: MTEX) traded generally higher for the majority of the month, before declining over the course of the last week following the announcement that the company’s $5 million Dutch auction tender offer was successfully completed at $17 per share. The successful tender offer reduced the company’s shares outstanding by approximately 12.31 percent. *defined as the period beginning March 1

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

directsellingnews.com /category/news/

FDA Issues Updated Guidance as Demand for Hand Sanitizers Grows

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ith the outbreak of the global pandemic, the need for hand sanitizers has quadrupled and seen an increase in the overall growth of 16x from December 2019 to March 2020.

The FDA recently issued an updated version of its guidance originally released in March 2020 in response to a number of queries from entities that are not currently licensed or registered drug manufacturers that would like to prepare alcoholbased hand sanitizers, either for public distribution or for their own internal use. At such time when the public health emergency is over, as declared by the Secretary, FDA intends to discontinue this enforcement discretion policy and withdraw this guidance.

Nu Skin recently announced first-quarter 2020 results above guidance. “The efforts and resiliency of our sales leaders and global teams helped us achieve revenue and earnings above guidance in the first quarter,” said Ritch Wood, chief executive officer.

“While COVID-19 continues to present significant challenges globally, we are grateful for the heroic efforts of healthcare workers, first responders and other essential workers around the world. From a Nu Skin perspective, our entire organization has mobilized to protect the health and safety of our teams and ensure business continuity for our customers. As a result, we have been able to maintain support for our sales leaders, leverage our supply chain to meet consumer demand for our products and utilize technology to facilitate remote work for both our sales leaders and employees.”

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AdvoCare First-Ever Sleeve Patch Partner of FC Dallas

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C Dallas announced that AdvoCare will become the club’s first-ever sleeve patch partner.

The AdvoCare crest will move from the front of the jersey to the right sleeve of all FC Dallas, North Texas SC and FC Dallas Youth jerseys. This new agreement is a multi-year partnership that will run through 2023.

“AdvoCare and FC Dallas believe in building champions in innovative ways and this new agreement is a testament to that,” said FC Dallas President Dan Hunt. “We’re thrilled to continue this successful partnership with AdvoCare.”

“AdvoCare and FC Dallas have embodied a successful partnership for almost a decade now,” said Patrick Wright, CEO of AdvoCare. “Working with an organization that matches our commitment to health and wellness across generations and also strives to create a brighter future for North Texas has been such a pleasure. We are excited to continue our work together in building champions everywhere.”

Beautycounter, Sephora Team Up

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fter a successful pop-up strategy with Target back in 2016, Beautycounter wants more and Sephora will provide the opportunity beginning next month.

The agreement includes a digital-first launch of 11 products, including best-selling items such as All Bright Vitamin C Serum and Overnight Resurfacing Peel. After the online-only campaign, the products will debut in all Sephora stores in August. The campaign will run through October.

According to Sephora, the agreement dovetails with its customers’ desire for clean beauty. Artemis Patrick, Sephora’s executive vice president and chief merchandising officer, pointed out that Beautycounter is a leader in the space.

AUGUST 2020

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l W W W. P R O G R E S S I V E L A B S .C O M

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

directsellingnews.com /category/news/

Direct Selling Caucus Requests Relief

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i-partisan members of the Congressional Direct Selling Caucus sent a letter to leadership in the House and Senate requesting relief for direct sellers in the next stimulus package to be passed by Congress.

Led by Caucus Co-Chairs Rep. Richard Hudson (R-NC) and Rep. Marc Veasey (D-TX), the letter was also signed by Caucus members Rep. Josh Gottheimer (D-NJ), Rep. Cathy McMorris Rodgers (R-WA), and Rep. Darren Soto (D-FL).

The letter requests that future packages aimed to help direct sellers recover from the global pandemic include: • Waive self-employment taxes on all 1099 filers for one year • Increased tax credit or allowance for telework or work-from-home expenses (including business startup and operational expenses) that can be claimed by self-employed individuals or companies incurring expense to enable their employees or contractors to work from home • If an independent contractor accesses temporary expanded benefits under the CARES Act, this cannot be used in future actions to determine employee status Direct Selling Association President Joseph N. Mariano said, “We thank Reps. Hudson and Veasey as well as members of the Congressional Direct Selling Caucus for requesting these priorities in the next stimulus legislation that will help millions of individuals across the United States. Inclusion of these provisions in future legislation will help new and incoming salespeople navigate the negative impacts of the global pandemic.”

ARIIX Partners with MaVie and Shannen Global Indonesia

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RIIX merged with MaVie, an international network marketing company offering personalized DNA services and products, and with Shannen Global Indonesia, a network marketing company that creates beauty products for the empowered woman.

MaVie combines DNA testing and customized nutrition in a wide range of health and wellness products. “Our truly unique compensation structure facilitates successful merging with other network marketing companies without changing their organizational structures. We look forward to getting to know MaVie Representatives, and we give them our warmest welcome,” said ARIIX President and Founder Mark Wilson.

“ARIIX has been looking for the right opportunity to enter the Indonesian market, and after meeting with Shannen’s founders and executives, it was clear the collaboration between the two companies was exactly what we were looking for,” said ARIIX Vice President of Business Strategy Brandon John. “Shannen has incredible momentum and has reached amazing growth milestones in a short period of time. Together, we aim to continue that momentum through this strategic alliance.”

ARIIX now has a presence in 22 markets around the world.

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First Online Herbalife #AthleteCookOffContest

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erbalife Nutrition announced the winners of its first online global cooking contest featuring professional soccer players from teams around the world.

The global cooking competition among Herbalife Nutrition-sponsored soccer teams launched on the company’s Instagram account to encourage healthy eating and the importance of staying active. This virtual event, which reached more than 500,000 people, also helped spark some competition among company-sponsored athletes who had lost the ability to compete due to the coronavirus and engage sports fans around the world who longed to watch their favorite sports heroes compete.

Once winners were selected, grants were awarded on their behalf to their chosen charity.

The LA Galaxy’s Gordon Wild created “Cozy Salmon” which won the chef’s choice award and a grant to the Los Angeles Regional Food Bank.

Santiago Montoya of FC Millonarios won the fan vote with his “Formula 1 Power Bowl” recipe, and a grant to his chosen charity, Cardio Infantil.

“We are grateful to these talented athletes for sharing their creative recipes to encourage proper nutrition, which is fundamental to their lifestyles, and inspired by their desire to help a local charity in their communities,” said Dana Ryan, Ph.D., director of Sports Performance Nutrition and Education at Herbalife.

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Young Living’s Mary Young Named 2020 CEO of the Year

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oung Living Essential Oils announced that CoFounder and CEO Mary Young has been awarded Utah Business magazine’s 2020 CEO of the Year award.

The CEO of the Year award recognizes Utah CEOs who stand out above the rest by embracing innovation, adopting sound business strategies and building a track record of proven success.

Under Young’s leadership, Young Living recently celebrated its 25th anniversary by launching its 5×5 Pledge initiative; unveiling its Global Headquarters in Lehi, Utah; dedicating nearly 12,000 acres to the D. Gary Young Wildlife Sanctuary in memory of Young Living’s late founder; and earning a place as one of the Direct Selling Association’s top companies in the U.S. In addition to overseeing a successful global company, Young spends much of her time overseeing many philanthropic projects sponsored through The D. Gary Young, Young Living Foundation. These projects include rebuilding and restoring schools in Nepal, helping survivors of human trafficking, providing schooling and scholarships to children in Ecuador, raising funds for firefighting and reforestation efforts in the wake of the Amazon fires, and much more.

“It’s a real honor to receive this award,” said Young. “For me, it’s not so much about change or evolving the business. It’s about instilling the basics of good business practices: honesty, integrity, and working together toward success. When you believe in what you have and what you do, the focus is to grow what you have. Educating on the many facets of our mission is the biggest opportunity imaginable as people search for a path to a healthier lifestyle and a way to help others.”

DSA Issues Statement on FTC Letters to Multilevel Marketers The U.S. Direct Selling Association issued the following statement regarding recent letters from the Federal Trade Commission to direct selling companies.

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handful of direct selling companies, including some members of the Direct Selling Association, have received warning letters from the Federal Trade Commission regarding inappropriate product and earnings claims made in connection with the ongoing virus pandemic.

The FTC has previously issued similar letters to other businesses, including some direct sellers. In response, DSA members have made a renewed commitment to abide by the requirements of the DSA Code of Ethics, and to correct misleading or inaccurate statements made by independent salespeople or the companies themselves about products or earnings — especially as they relate to the coronavirus.

DSA’s efforts to urge members and non-members alike to abide by the highest ethical standards will continue. In that regard, we have reached out to direct selling companies, including non-members, to request they affirm their commitment to those standards as put forth in the DSA Code of Ethics by becoming or remaining DSA members. Those companies which do not make that commitment will not be allowed to become members or remain in the Association. We urge all companies to follow the requirements of the law and go above and beyond those requirements to ensure that customers and prospective salespeople have and share the most accurate information possible. This is more important than ever in the midst of the health and economic challenges we face. DSN

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

Insights

directsellingnews.com /category/news/

News Impacting Our Channel

Why Working Virtually Is Great for Businesses (Excerpt from forbes.com by John Caplan.)

D

uring this unprecedented global health crisis, many companies around the world are operating remotely to protect employees and prevent the spread of the coronavirus.

With a vaccine still in development, this new way of working will likely continue for the foreseeable future. While it takes some getting used to and comes with its own challenges, there are exciting opportunities.

The biggest opportunity is that your business does not need to be limited to the immediate geography of where you’re located, meaning you can connect more extensively with customers, partners, and opportunities around the world. Working remotely is a great equalizer and has opened new channels.

Working remotely may also be a key to globalization. Our U.S., Europe, and Asia local teams are working from home, so we are all quickly learning that we really are just one big team.

This global team unity is a powerful silver lining of how we’re working and thinking today. Advantages like this are already transforming the way we do business, helping us achieve new levels of proximity, understanding, productivity, and innovation. To start unlocking them for your own business, follow these eight strategies as you manage your teams.

B E T R A N S P A R E N T. Now is the time for over-communication, openness, and transparency. If people are out of the loop or have partial information, their productivity and happiness decline. Make a deliberate effort to integrate people into the decision-making loop by hosting regular virtual town halls, video conferences, and virtual office hours. Regularly sharing information, goals, and metrics about your company’s strategy and personnel decisions will make the entire team feel respected. By keeping communication channels open, employees will understand how much you value them. This will help them become more invested in your business, and meetings will be less about updates and more about inclusive, productive collaboration.

Even if you think you’ve already said something, say it again.

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BE HUMAN. Keep in mind that part of being transparent is being human.

Go ahead and talk about yourself as a person, not as a worker.

Does your dog want to make a cameo on a Zoom call? Does your partner want to wave hello? Go for it! This openness will allow colleagues to support one another on a more personal level and ultimately build a more unified and resilient workplace culture.

S IMP L E R I S A LWAY S B E T T E R .

We like to say, “no gray areas,” because every degree of complexity introduces risk to a business. Misinterpretation can drive disconnection and poor outcomes. So as you’re setting objectives, focus on prioritizing activities that create clear customer value. It’s best to accomplish only one or two goals at a time and then go deep on them to build shared understanding.

This kind of focus and communication always wins.

E A R N VA L U E .

As we all connect and collaborate more over Zoom, Ding, Slack, and Microsoft Teams, it’s hard to have visibility into all that is going on, including who is doing what and who is happy, productive, and making an impact. It’s especially difficult for a leader of a team to align with and support the team. One of our core values is “trust makes everything simple,” and that means both trust within our company and for small and mediumsized businesses to do business globally. To help set a tone for a culture of enhanced trust, be humble. Think of coming to work every day as a reset, and try to earn credit—with your team, customers, and partners—by the end of each day. Help your team be productive, no matter what it takes.

SET A CLEAR GOAL. Establish a single, clear overarching goal for your team—and then resist the urge to micromanage. Do that, and you will demonstrate your confidence in your people, which will ultimately inspire creativity and maximize productivity.

This is crucial while people aren’t commuting, have the

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ability to reallocate time and are more flexible and available than ever before. Now is the time to invent solutions and uncover opportunities.

EMBR A CE DI V ER SI T Y A ND CEL EBR AT E I N N O VAT I O N .

Out of chaos and disruption comes opportunity for small and medium businesses. We are experiencing 20 years of business and digital transformation packed into just a few months, and employees at every level have newfound freedom to exercise their ingenuity and solve problems in compelling ways. As a leader, be intentional and vocal about encouraging and rewarding this inventive mindset. Use this moment to lean into digital and global opportunities and open paths for all members of your team to contribute creative thinking and make new connections. Don’t resist the change, go with it. Say yes. It’s only when we welcome diversity of people and ideas that people can innovate freely.

R E S U LT S > H O U R S .

This is not the time to micromanage or be strict about hours, face time, or protocol. People all over the world are now navigating disruption and change in their lives. You may not know it, but members of your team may be struggling with their responsibilities, like taking care of kids or worrying about the health of elderly parents, all while trying to demonstrate

their value and do their jobs. If you notice that your team member is not available on-call or on-chat 15 hours a day or responding immediately to every message, let it go. What matters first and foremost is their physical and mental health, their family, and their ability to drive business outcomes.

A LWAY S B E L I S T E NIN G , L E A R NIN G , AND GROWING. As the world changes and as all businesses more fully go digital, there is fresh opportunity everywhere. For example, since people are accustomed to using technology to collaborate, you can leverage that experience into helping your customers. Ask them what they need. Our team has invented new ways to engage with our customers, such as daily webinars for our sellers that teach them how to add customers globally, and launched virtual trade shows that match buyers to the right supplier. All of these initiatives were invented in response to this moment, to help those who use our services bridge to the next decade.

As we continue to navigate through the pandemic and beyond, businesses that actively lead with transparency and humanity—with a focus on collaboration and innovation—and who embrace a global and digital mindset, will be the ones that inspire their people and their customers.

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

directsellingnews.com /category/news/

The 30 Minutes Challenge: How to Reduce Your Meeting Time (Excerpt from forbes.com by Luciana Paulise.)

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he CFO’s most precious resource is time, and yet a typical day is occupied 72 percent by meetings according to a Harvard study. How can you reduce it drastically?

A Harvard research revealed that, during pre-COVID times, a company’s vice president would spend 44 hours a week going to meetings. His IT manager, 35 hours, of which he sent emails during 85 percent of those meetings. Most of the leaders surveyed had the same problem. CEO’s typically spent around 72 percent of the time in meetings, most of them last an hour or more.

The worst part is that, on top of the actual meeting time, you need to account for the pre-meeting activities, the postmeeting to-do’s, and the “switching time.”

The “switching time” is the time required to concentrate on a task after an interruption.

It takes at least 15 minutes to become productive again after a break, and it takes at least 30 minutes to focus on a particular issue to move forward or make a decision, due to what is called “time fragmentation.”

Assessing the quality of meetings, prioritizing who should attend and ensuring attendees’ full focus drives success.

IMPROVING MEETING PRODUCTIVIT Y Short but concise meetings help to keep the focus on what needs to be done. If issues arise, deal with them in a separate meeting only with the personnel directly involved.

Prepare the meeting schedule in advance. If it is a periodic meeting, always follow the same agenda order. For example, project status, obstacles, do I need help? Everyone should get ready for it.

P R IOR I T IZ E W HO SHOUL D AT T END Minimize the number of people. If the session is informative, it can be replaced by a video-on-demand or an online tool can be used to collect data or questions such as Kahoo.it Encourage employee confidence, self-discipline and psychological safety. Give them more opportunities to choose

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which meeting to attend and how to participate actively when they decide to be part of a session.

Review this week’s meetings and ask yourself: Is this meeting necessary? What is the objective? What is your role? Do you need to attend, or can you review the minutes?

Especially working remotely, you may want to dedicate more time to one-on-one meetings than large ones. They are more meaningful as they increase employee engagement, sense of belonging and human connection.

INCREASE FOCUS When meetings are too large or too long, and agendas are not concise, attendees tend to switch to offline mode and turn the focus to emails or messages. That’s the worst kind of wasted time. You are not able to focus entirely on emails or the meeting.

Make it short and sweet, to keep the focus on the issues at hand.

Dedicate a specific time of day to having meetings, and have them all in a row, to reduce time fragmentation.

THE 30 MINUTE CHALLENGE Agendas and minutes are essential, but they are not effectively implemented nowadays.

If you think about the last boring meeting you had, you probably realize topics were added at the last minute to the agenda. Some members spoke too much, while others were not even able to talk. It is most likely that a difficult topic took longer than expected because speakers were unprepared, or information was not handy. That meeting could have been held in 30 minutes top.

Why are 1-hr meetings a standard? No wonder why Zoom meetings are free under 40 minutes. Push your team to do better and bring more innovation to the table.

As part of the C-suite, make it a company priority to set a new meeting standard of 30 minutes top, that will help your teams prioritize topics, select attendees more carefully and get better prepared for the next meeting. You will be getting back at least 50% of your precious time. Enjoy it! DSN

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

Executive Announcements KRISTI HUBBARD, Younique President Kristi Hubbard has been appointed president of Younique. Hubbard will assume the chief executive officer role after a period of transition, during which Derek Maxfield, the company’s co-founder and chief executive officer, will continue to lead the business.

Upon her appointment to the CEO position, Maxfield will become executive chairman, where he will continue to lead the Board of Directors and set the strategic vision for Younique. As CEO, Hubbard will lead the operations of the company and define the next era of transformation for Younique.

“I am thrilled to welcome Kristi to Younique,” said Maxfield. “She is a proven leader in our space who has built and led strong companies to significant growth.

More importantly, Kristi is a strong, value-based leader who aligns perfectly with the mission of Younique to uplift, empower and validate women throughout the world.”

SOPHARY LY, Le-Vel Executive Vice President & CFO Le-Vel announced the promotion of Sophary Ly to executive vice president and chief financial officer. Ly has more than 27 years of experience in computerized private and public accounting systems for service, manufacturing, direct selling and wholesale industries.

In her new role, Ly will help oversee the company’s operations, accounting and financial teams. She will continue to report to co-CEOs Jason Camper and Paul Gravette. Ly has worked as chief financial officer for Le-Vel since October 2015.

“Sophary has one of the strongest work ethics and overall skillsets in the entire direct selling industry,” said Camper. “She’s been a tremendous asset to our organization, and we’re confident that under her leadership she’ll guide us to even greater success.”

FIONA HO, Neora VP of Greater China, Manager of Hong Kong Neora announced its new vice president of Greater China and general manager of Hong Kong, Fiona Ho. With 24 years of experience leading a variety of direct sales companies to successfully launch and advance their operations in Asia, Ho is equipped to oversee Neora’s market development in Greater China.

“We are thrilled to welcome Fiona Ho as vice president of Greater China,” said Brad Wayment, president of Global Markets for Neora. “Before diving into direct selling, she spent nine years in the advertising, public relations, media and marketing fields, which supplied her with the knowledge and skills necessary to drive new business growth for us.”

Ho firmly believes that Asia—in particular the Greater China Region—will be the focus of attention for business growth in the coming decades.

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BRIAN CLARK, Isagenix SVP of Operations Isagenix International announced that it has promoted Brian Clark to senior vice president of Operations.

In his new role, Clark will oversee demand planning, supply planning, purchasing, warehouse operations and fulfillment, and transportation, all manufacturing and distribution and several key projects. He will report to Chief Executive Officer Travis Ogden.

“I’ve been very impressed by Brian’s business acumen, work ethic and leadership abilities,” Ogden said. “I couldn’t be happier to have him join the executive leadership team that guides this great company. He’s a tremendous asset to Isagenix.”

Clark joined Isagenix in January 2017 as senior director of Supply Chain Planning and was promoted one year later to vice president of Supply Chain Planning and Logistics.

“We have so much in development right now, including innovative products, upgraded technology and simplified messaging,” Clark said. “All of that, along with effective supply chain partnerships, will allow Isagenix to deliver an improved experience for our valued customers and independent distributors.”

JONEE WOODARD, Modere Vice President of Global Operations Modere Inc. announced that Jonee Woodard is the company’s new vice president of Global Operations.

Woodard joins Modere with 20 years of progressive experience in global supply chain management, from manufacturing to procurement, inventory, logistics and fulfillment.

Asma Ishaq, chief executive officer of Modere, said of Woodard’s appointment, “The robust presence we are currently enjoying in 42 international markets requires a skilled leader with the experience and foresight to develop and manage operational strategies in a fast-growth environment.

As we continue to grow those markets and launch others, Jonee Woodard presents as the best candidate for this critical role. She is experienced, astute, performance-driven and collaborative, and I believe she will make a very welcome addition to our management committee and team here at Modere.”

“I am honored to join the management team at Modere and to add my expertise in operations at this key moment in time as the company experiences growth across its markets,” commented Woodard.

GARRETT MCGRATH, Elepreneurs President Elepreneurs announced the appointment of Garrett McGrath to the position of president.

Prior to this role, McGrath served as Elepreneurs’ chief impact officer working to execute the company’s vision, develop strategic direction and provide training to help maximize the success of every Elepreneur and the Elevacity products.

McGrath brings more than three decades of network marketing experience to Elepreneurs, building organizations of more than 150,000 distributors in 21 countries during that time frame. Along with his wife, Sylvia, who currently serves as Elepreneurs’ chief experience officer, he also has served as master distributor for four prominent network marketing companies.

“With his wealth of experience and industry prestige, Garrett is well suited for his new role as president of Elepreneurs,” said CEO Keith Halls. “We’re excited to have him on board.” DSN

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

SPENDING HABITS

How COVID-19 is Drastically Shifting Online Spending Habits

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HE COVID-19 pandemic has affected nearly every aspect of our lives, but perhaps none more so than consumer buying habits. Online shopping was already on the rise, and this particular curve is sharply spiking. More than $360 billion in total online sales was projected for 2019—with growth expected to reach nearly $600 billion by 2024.

Shifting online buying habits focus on delivery expectation, product availability, and various future instore shopping concerns. These increasing priorities are likely to remain even after the pandemic subsides. Many are in line with current online direct sales trends that allow customers to purchase online and choose monthly shipments.

“One thing is for sure: brands that provide a seamless, informative online experience are poised to succeed during this challenging time,” says an article by Marketing Week. Multiple surveys and studies have been conducted through the spring, revealing interesting trends and sharp changes to pay close attention to. Does your online buying experience line up with these evolving habits?

C UR B SIDE P ICK UP A ND DEL I V ER Y Whether it’s ordering groceries, necessities or food from your favorite restaurant, pickup and delivery experiences may forever change. In a CommerceHub survey, 59 percent of respondents said they are more likely to continue using curbside pickup even after the coronavirus pandemic is over. The number increases to 75 percent for respondents who subscribe to multiple delivery services.

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“

49 percent of respondents over 50 who previously did not shop online said they are likely to subscribe to a delivery service post-pandemic.

The survey revealed that 49 percent of respondents over 50 who previously did not shop online said they are likely to subscribe to a delivery service post-pandemic.

Overall, 68 percent of respondents are likely to subscribe to a grocery delivery service. Specific questions of Amazon Prime subscribers revealed that 80 percent made purchasing decisions based on expected delivery dates.

Seventy-five percent said they have searched for an item online to find it out of stock.

In a separate report, “Rebuilding Retail,” consumers said that after the coronavirus pandemic they are more likely to order online and pickup curbside (35 percent), utilize a third-party delivery service (24 percent) and set up and use contactless payment (22 percent).

“Retailers investing in technology should be focusing here, as opposed to chatbots, text-to-order and other technologies that seemed to be less sticky with the

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consumer moving forward post-COVID-19,” the report concluded. Nearly 25 percent said their shopping habits are likely to change permanently.

• 28 percent said they would be worried about finding items they need or want.

• 28 percent are less likely to try out items in-store.

• 20 worry that their favorite brands will go out of business.

• 17 percent are expecting more insight into how retailers operate.

• 17 percent say they will only buy from retailers (online and in-store) with clear procedures in response to the COVID-19 for holiday shopping.

K E Y C US T OMER BEH AV IOR SHIF T S Nielsen market research revealed the following key customer behavior thresholds tied to COVID-19: 1. Proactive health-minded buying (preventative health and wellness products) 2. Reactive health management (protective gear like masks and hand sanitizers) 3. Stockpiling pantry items (groceries and household essentials) 4. Quarantine prep (experiencing shortages in stores, making fewer store visits) 5. Restricted living (making much fewer shopping trips, limited online fulfillment) 6. A new normal (return to daily routines, permanently altered supply chain) Diving into retail categories, a survey by Statista asked consumers, “Have you deliberately purchased any of these products or services online instead of offline because of the COVID-19/coronavirus pandemic?” Here are the top six affirmative responses by percentage from U.S. consumers: Restaurant delivery/takeaway

31%

Hygiene products

27%

Clothing

26%

Household cleaning products

26%

Food and drink delivery (from supermarkets) 24% Health products (e.g. medicine)

21%

17 %

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AVA IL A BIL I T Y BE C OME S T OP C ONSUMER P R IOR I T Y In addition to changing expectations and experiences in pickup, delivery, and post-pandemic expectations, customer priorities are also shifting when it comes to buying online. A Marketing Week survey showed that, before the pandemic, respondents’ top priorities were quality (48 percent), price (47 percent) and brand (24 percent). However, the top has shifted to availability (49 percent), price (36 percent) and quality (34 percent).

With availability rising to the top of the priority list, 58 percent of respondents say they have experienced product shortages at stores. Just 30 percent said that they have easily been able to get everything they need. DSN

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

PERSONAL STORIES

How to Tell Compelling Personal Stories: A Simple Four-Part Formula

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“

T

HE ABILITY to tell compelling and engaging stories is one of the most effective marketing skills anyone can develop. Stories can connect and influence us at a deep level. In direct sales, this applies to corporate teams as well as the distributor field. Teaching distributors not to make exaggerated claims but rather to attract attention or pique curiosity by telling stories is one of the most successful business-building strategies.

Telling success stories is also one of the best ways to connect with people at an emotional level, whether at business presentations, on stage at convention or in short online videos.

Use this simple four-part formula to help your corporate staff and distributors develop more compelling stories.

PA R T 1

Y OUR B A CK GROUND Your background includes education or career experiences.

Be general with this—no need for all the specifics. Focus on why you chose the path you did. You can include your family, life and career goals, and any major changes you experienced.

The purpose of the background is to help shape the direction of the story. It should be brief but still communicate who you are and the most important things in your life that led you down the path you’re on today.

PA R T 2

W H AT H A P P ENED T O Y OU This part is also known as “your pain.” It’s the most powerful part of your story. Your pain is what people connect with most, so don’t be afraid to get real. This part focuses on something that happened (sometimes a life-changing event) that made you change or look for something different.

Telling success stories is also one of the best ways to connect with people at an emotional level, whether at business presentations, on stage at convention or in short online videos.

It’s the problem that caused you to think differently and pursue your business, and it’s the core part of your WHY. Ideally, this part is the most specific. Focus on how you felt and why it was powerful enough to cause you to change.

PA R T 3

T HE S OL U T ION Y OU F OUND This is the answer to your pain or problem. It could apply to the business opportunity or even a product experience. The solution provides relief from the pain you experienced. For some, it could be relief from financial stress or finally finding a weight-loss solution to help you look and feel better. Include how things are different now and how the solution has changed you.

PA R T 4

HO W Y OU F EEL NO W A ND Y OUR V ISION OF T HE F U T UR E This is the forward-looking excitement you have about your business. How is life different now? Talk about the people you have helped and what you have discovered about yourself.

Where do you see your business going? Share your vision for the future to communicate how you are still working to achieve success and help others along the way. DSN w w w . d i r e c t s e l l i n g n e w s . c o m 2 7

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

MUST READS THINKING FAST AND SLOW

by Daniel Kahneman (Farrar, Straus and Giroux, 2011)

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n his mega-bestseller, Thinking, Fast and Slow, Daniel Kahneman, world-famous psychologist and winner of the Nobel Prize in Economics, takes us on a groundbreaking tour of the mind and explains the two systems that drive the way we think. System 1 is fast, intuitive, and emotional; System 2 is slower, more deliberative, and more logical.

The impact of overconfidence on corporate strategies, the difficulties of predicting what will make us happy in the future, the profound effect of cognitive biases on everything from playing the stock market to planning our next vacation—each of these can be understood only by knowing how the two systems shape our judgments and decisions.

THE HARD THING ABOUT HARD THINGS: BUILDING A BUSINESS WHEN THERE ARE NO EASY ANSWERS

by Ben Horowitz (Harper Business, 2014)

B

en Horowitz, cofounder of Andreessen Horowitz and one of Silicon Valley’s most respected and experienced entrepreneurs, offers essential advice on building and running a startup—practical wisdom for managing the toughest problems business school doesn’t cover, based on his popular ben’s blog.

While many people talk about how great it is to start a business, very few are honest about how difficult it is to run one.

Ben Horowitz analyzes the problems that confront leaders every day, sharing the insights he’s gained developing, managing, selling, buying, investing in, and supervising technology companies.

HAVE A LISTEN

THE 4 DISCIPLINES OF EXECUTION

By Chris McChesney, Sean Covey and Jim Huling

W

hat is a wildly important goal?

Quite simply, they are the goals you cannot succeed in work or life without accomplishing. Sean Covey, the planner guru beloved by type-A personalities everywhere, has teamed up with others from his family organization FranklinCovey to share his wisdom.

After working with hundreds of thousands

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of people, Covey found that the best way to succeed in these wildly essential goals is to, well, focus on them, to act based on the best advice, to figure out how to measure success, and to increase accountability. You’ll learn to balance urgent tasks while keeping your eye on the big prize. You will also be able to apply what you learn straight away to your personal and professional life. DSN

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The ideal direct selling platform is a lot more than just cloud-hosted software accessed through a browser.

Request a demo to find out what else it is. | directscale.com/DSN

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NEORA: THE ACCIDENTAL ACTIVIST Known for its powerful skincare products and exponential growth rates, NEORA continues to innovate, both inside their company and now on behalf of the industry—as they take on the FTC.

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We took everything we learned in skincare and applied it to haircare.

—AMBER OLSON ROURKE, NEORA Co-Founder & Chief Sales and Marketing Officer

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REATING MULTITASKING PRODUCTS for multitasking customers is how NEORA got its start. Before changing its name and rebranding in 2019, the company (then known as Nerium International) was a skincare giant who brought the concept of multipurpose, high-end products to market with a curated approach. Investing a lot of time and financial resources to research and develop their simplified skincare product lines, NEORA focused on creating anti-aging, holistic products that combine the benefits of many products into a few streamlined offerings.

Their foothold in the crowded skincare category has since expanded to include wellness and now haircare, with the introduction of the NEORA ProLuxe Hair Care System. All of these additions fit into what NEORA Co-Founder & Chief Sales and Marketing Officer Amber Olson Rourke describes as the company’s “sweet spot” of clean meets performance.

T HE N AT UR A L NE X T S T EP The company’s transition from skincare to a holistic wellness company mirrors what they are seeing in their customers. “We believe strongly that more and more consumers are thinking about their total wellbeing in a more holistic way,” Amber says. “Additionally, people want clean formulas that give them results.”

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That approach has led to a product portfolio that feels integrated and intentional. NEORA’s complete wellness line complements the skincare line, which became the foundation for the new haircare line. The idea is that nothing happens in isolation: The foods we eat and the supplements we take have an impact on our bodies and skin; the quality of sleep we experience affects the health of our cells. That integrative wellness approach of clean-meets-performance allowed the company to seamlessly cross over from being a singular market company to one that engaged in multiple categories without the appearance of being a trend chaser.

Most recently, their launch into the haircare space with professional, salon-grade products was met with enthusiasm and the sales to prove it. “Doing a brand-new launch in 3 4 D I R E C T S E L L I N G N E W S |

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A C T I V I S T

the middle of a global pandemic is not the easiest thing to orchestrate,” Amber says, “but it has been one of our most successful launches to date in terms of product acceptance and sales.”

In part, that acceptance comes from a distributor and customer base who are already familiar with the concept of holistic personal care products and NEORA’s formulations philosophy. The company’s positioning as a resource for people seeking anti-aging products for skin became the basis for their introduction to haircare, stating that just as the signs of aging can make skin feel different than it used to, the same can be said of damaged hair that lacks its once youthful bounce, body and shine.

Using ingredients from their skincare lines, NEORA took the same anti-aging concepts they are known for and applied it to the scalp to develop their product that removes buildup, repairs damage and rebalances oily or dry hair.

“We took everything we learned in skincare and applied it to haircare,” Amber says. “Hair health really begins at the scalp, and what is scalp? It’s skin.”

FIXING THE LEARNING CURVE The success of their new haircare line has bolstered the company amid the pandemic and the scramble every organization is currently making to switch from an inperson format to all digital. NEORA, too, has spent the last few months focusing on moving their field toward a more e-commerce-driven social selling approach, including Zoom

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“

We believe strongly that more and more consumers are thinking about their total wellbeing, in a more holistic way.

—AMBER OLSON ROURKE, NEORA Co-Founder & Chief Sales and Marketing Officer

Lessons from the Lockdown A Free Resource for Direct Selling Executives

There’s nothing normal about our new norms. Direct selling was already changing at a breakneck pace. Now, not only have those changes accelerated, but everything we had planned for needs to

Real Results parties. “We were already building a company that would survive and thrive in an online marketplace,” says NEORA Co-Chief Executive Officer Deborah Heisz. “When the pandemic emerged, and people were spending more money online, it accelerated where the world was already going.

But an enthusiastic and independent workforce who use the internet to share their results comes with its own set of challenges. In November 2019, the Federal Trade Commission sued NEORA and company CEO Jeff Olson, listing one dozen examples from 2015-2017 of social media posts from distributors who touted the benefits of EHT. NEORA had already dealt with the old posts and determined stronger compliance policies. The FTC law suit came on the heels of NEORA filing suit on the FTC alleging that the FTC is attempting to improperly change direct selling laws.

Amber says the company is committed to creating a workforce that understands compliance but admits it is a daunting task. “Our biggest focus is to have clear and strict compliance policies and monitoring services,” Amber says.

“Policing social media is a complex thing and gets more complex every day. We have utilized Field Watch for years to help with this monitoring. We continue to educate and take enforcement action. We have already been doing that, but we are now doubling down.” Aside from constant and consistent reinforcement of what is and is not appropriate online, NEORA has ramped up their offerings of social media graphics to brand partners to provide compliant materials that keep them on the right path.

be recalibrated, or scrapped entirely.

There’s no best practices to refer to.

No proven method to follow.

We’re all facing uncharted territory.

What’s the Best Next Step When You Don’t Have a Map? We’re creating and collecting some of the most timely insights from within the direct selling channel, and making it all available in our Lessons from the Lockdown section on our website. Articles, surveys, examples and even interviews … you’ll find it all at StrategicChoicePartners.com/lockdown.

Whether you’re surging into double digit growth or screeching to an unprecedented halt, we can help.

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

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Of all the allegations in the FTC lawsuit, the most damaging blow has been the FTC’s attempt to declare NEORA a pyramid scheme. But NEORA is fighting back. The company retained Dr. Walter Vandaele, a renowned econometrician and previous Assistant Director for Regulatory Evaluation and Economic Advisor at the FTC’s Bureau of Competition, to conduct an analysis of the company’s data. His findings established that 77 percent of commissions paid by NEORA from 2012-2017 were for sales of product to ultimate end users—far exceeding the legal standard.

“We have a large customer business,” Deborah says.

“Customers represent 75 percent of sales every month.

It’s a focus for us. Our recruiting has been up, but for every brand partner we bring in each month, we bring in eight to 12 new customers.”

Those increases in recruitment are due, in part, Deborah says, to a larger portion of the population working from home with additional free time, but the company has also radically altered their preferred approach to enrollment marketing, choosing now to accentuate the $50 enrollment kit instead of the $500 product selection kit.

This smaller investment is easier to swallow for many individuals and has led to an increase in brand partners, who bring with them new customers, exposure and revenue. As a result, the company’s monthly sales have been trending upward. May’s monthly sales loomed 80 percent larger than those in January, with significant growth coming from markets that have yet to launch the new haircare line, like Mexico.

In addition, NEORA has filed a countersuit, alleging that the FTC is attempting to improperly change direct selling laws. “We are obviously closer to the FTC and what they are saying than most people—since we’ve been talking to them for a long time, and this is not a NEORA issue,” Amber says.

NEORA is in the midst of a transformation, but there is more at stake than simply their own rebranding or survival in 3 6 D I R E C T S E L L I N G N E W S |

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A C T I V I S T

“

We believe the FTC is trying to eliminate multi-level marketing.

—DEBORAH HEISZ, NEORA Co- Chief Executive Officer

their battle with the FTC. NEORA’s lawsuits with the FTC, Deborah believes, represent the future of the industry as a whole. “Other companies need to pay attention to the fact that the FTC is truly trying to redefine our industry,” Deborah says.

“We have a high customer volume, and we have never reclassed brand partners to be customers based on their buying habits.

We ship directly to consumers, and we have a customerfocused compensation plan. I keep getting questions from other company leaders asking what they can do differently, and I don’t have an answer because we did everything we were supposed to do. We followed the rules.”

As the company prepares for the future, the goal will be continued innovation in their space of holistic, synergetic products. Emphasizing how products that promote mental and physical wellbeing are interconnected, Amber says, “Everything we do impacts another part of us.”

Those words take on new meaning in an industry that seems to be experiencing FTC scrutiny like never before. Every company, regardless of their customer-to-distributor ratio, compensation plan or compliance, is within the FTC’s sights, Amber believes. And like its own product lines, which seek to concentrate the efforts of many products into a curated few, NEORA is pushing back, hoping their individual efforts will benefit the industry at large. “We’ve been very open to what the facts are,” Deborah says. “This is not about NEORA; it’s about the industry. The industry is under attack and unless everyone advocates, it is a potential issue for every single company, regardless of what your numbers are. There is no one who can say they are FTC-proof.” DSN

AUGUST 2020

7/21/20 9:20 AM

FOSSIL GROUP INCENTIVES / INCENTIVES@FOSSIL .COM

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BILLION DOLL AR MARKETS W F D S A D I S S E C T S G L O B A L S A L E S D ATA FOR A CLE ARER PIC TURE

B Y

B E T H

D O U G L A S S

S I L C O X

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2019 WAS A YEAR LIKE NO OTHER IN THE DIRECT SELLING INDUSTRY.

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HE TRAJECTORY SEEMED SET for China to ultimately out-sell the United States and come into its own at the number one spot on the DSN Billion Dollar Markets list. But newly released data from the World Federation of Direct Selling Associations illustrates how the complexities within an enormous market can negatively impact global sales, while the broader industry realizes year-over-year growth.

Unsubstantiated cure claims by a Chinese wellness company early in 2019 called into question the entire wellness segment in the world’s second-largest market, China. The subsequent 100-day halt to sales of dozens of products and investigations by the Chinese government served a blow to global sales.

Rebuilding momentum within the wellness sector and, to some extent, the reputation of the direct selling industry in China was arduous and continues.

Just as the industry cleared that hurdle, COVID-19 emerged. The effects of the global pandemic on sales are not reflected in WFDSA 2019 data; however, it is important to remember that behind each data point on the survey are vulnerable people—members of the direct selling industry who sell products in the field, manage spreadsheets and calculate sales at company headquarters, and report figures from direct selling associations around the world.

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It was during the global pandemic’s early days that WFDSA queried for information and waited, concerned for the broader direct selling industry family and unsure if they were healthy, sick or able to respond at all.

Formally collecting data since 2009, WFDSA’s 2019 data collection was unprecedented. Josephine Mills, co-chair, WFDSA Global Research Sub Committee, says the situation surrounding COVID-19 reinforced our understanding of just how serious and how committed everyone is to the data collection process.

Through the illnesses, people endured business disruptions and lack of office continuity, WFDSA member DSAs around the globe continued to collect, consolidate and report statistical data to WFDSA’s independent third party. What emerged from that raw data is a dual-focused

picture of 2019, one that dissects global sales—including and excluding China.

WFDSA reports global estimated retail sales of $180.5 billion (Constant U.S. Dollars) for 2019. Excluding China, worldwide retail sales showed a year-over-year increase of 1.4 percent with all regions around the globe up from 2018. Global sales results, including China, resulted in a decrease of 4.3 percent.

However, the industry’s 5-year Compound Annual Growth Rate (CAGR) maintained a healthy expansion pace of 2.3 percent (excluding China) and 1.6 percent (including China). Global direct selling performance since 2016 added $6.9 billion to the industry overall (excluding China); but shrank $1.6 billion with China added to the mix.

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ABOUT THE

RESEARCH

T

his collaborative, global effort of the World Federation of Direct Selling Associations, Seldia (The European

Direct Selling Association), local direct selling associations and their member companies depicts the state of the global direct selling industry for 2019. Compiled

The industry’s global sales force dropped 1.7 percent from 2018’s 122 million to 119.9 million in 2019, but showed a solid 1.8 percent 3-year CAGR. Segmentation data recorded 15.2 million full-time (30+ hours weekly) independent representatives and 44.2 million part-time (up to 30 hours weekly). 60.5 million garnered product discounts. All told, 74 percent were female; 26 percent male.

annually, it is a collection of individual market data in local currency figures, which are converted into U.S. dollars using current year constant dollar exchange rates to

2019 BREAKDOWN BY REGION AMERICAS 2019 BILLION DOLLAR MARKETS

eliminate the impact of currency fluctuation.

Data collected for European nations is categorized as follows: European Union and

#1

United States

6 0.4%

#6

Brazil

5 3.3%

#8

Mexico

5 2.5%

#14

Canada

6 6%

#17

Colombia

5 0.4%

#18

Peru

5 4.2%

#22

Ecuador

6 3.4%

#23

Argentina

5 20%

Rest of Europe. All statistics are based on estimated retail sales and in some instances may be restated using actual sales data as they become available. All statistics expire June 2021.

driven by the significant decrease of 10.3 percent in the AsiaPacific region, of which China is a part. However, excluding data from China, all four global regions made gains: AsiaPacific, up 2.2 percent; the Americas, up 0.7 percent; Europe, up 0.8 percent and Africa-Middle East showed the largest gains of 11.6 percent.

Last year’s list of 24 billion dollar markets remained the same in 2019 with some minor shifting in rank. The top ten countries on the list—led by the U.S.—generated 78 percent of global estimated retail sales.

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Sales from emerging markets, which included China, were expected to overtake advanced economies in the coming years, but for now, that trajectory toward balance has halted.

WFDSA reports advanced markets held 60.5 percent share of global direct selling sales in 2019, compared to 57.6 percent in 2018. Emerging markets captured 39.5 percent in 2019, down from 42.4 percent the previous year.

Make no mistake, growth opportunities still exist in emerging markets. By omitting China, emerging markets grew 3.7 percent over 2018 with a 3-year CAGR of 4.5 percent, which outpaced overall industry growth.

THE AMERICAS The Americas—North and South/Central—comprised 34 percent of direct selling’s global estimated retail sales in 2019. Combined, they reported $61.8 billion for 2019, posting growth of 0.7 percent with CAGR rising slightly to 0.5 percent.

Eight billion dollar markets exist in this region, where Cosmetics and Personal Care products hold 33 percent of sales; Wellness increased to 28 percent; and Household Goods and Durables a distant third at 11 percent. The number of independent representatives remained steady at 30.9 million after losses in 2017 and 2018.

Regional data for the Americas is reported together; however, the Americas are split here to better understand each of the distinct markets.

NORTH AMERICA North American direct sales slowed in 2019, reporting $37.7 billion in sales, down 0.8 percent.

The United States, which holds 20 percent of global market, saw flat-line sales of $35.2 billion, down 0.4 percent. U.S. CAGR is at -0.3 percent. Canada realized $2.5 billion in sales, a 6.0 percent decrease, with CAGR trending down at -2.4 percent.

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According to WFDSA, more than 17.5 million independent representatives reside in North America; 16.4 million in the U.S. and just under 1.2 million in Canada. Segmented data from USDSA showed 900,000 full-time independent representatives and 5.9 million part-timers. They were predominately white/Caucasian (83 percent) and 74 percent were female. 67 percent were between the ages of 25 and 54.

Wellness was the top U.S. product category at 36 percent.

Neither product nor segmented representative data for Canada were reported.

USDSA reported 36.9 million direct selling customers in 2019 with 9.6 million designated as discount buyers and 27.3 million as preferred customers. Countless more customers, who have not signed an agreement with a direct selling company, were not represented in that 36.9 million.

Some geographic hotbeds for direct selling were Texas, California, New York and Florida.

Ben Gamse, USDSA’s senior market research manager, points to the 2020 Growth & Outlook Survey, comprised of 2019 industry overview data collected pre-coronavirus, that indicates U.S. direct selling revenue not only remained stable during the past four years; it also offered many opportunities for growth.

Interest in flexible, entrepreneurial/income-earning opportunities was high among Americans—77 percent overall. But it was most appealing to younger generations with 91 percent of Gen Zs and 88 percent of millennials.

Direct selling enjoyed a broad, diverse appeal with prospects: 48 percent, female; 35 percent, millennial; and 20 percent African-American.

Overall, direct selling was seen as an attractive option for those interested in entrepreneurial endeavors, with direct sales showing 79 percent favorability just below Gig work at 81 percent. The initial cost/risk assessment of direct selling versus other entrepreneurial opportunities also weighed in the industry’s favor.

U.S. consumers were positive about direct selling with opinions remaining stable at about 80 percent over the past decade. The ability to support small businesses (69 percent) and personalized service provided by direct sellers (67 percent) appealed most to consumers. With 89 percent of American consumers utilizing some form of social media, nearly half (46 percent) said they welcomed online contact from direct sellers regarding business opportunities. (continued on page 46) 4 4 D I R E C T S E L L I N G N E W S |

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M A R K E T S

BILLION DOLL AR MARK E T S 2019 Regional Sales & Top Product Categories.

NORTH AMERICA

$37.7 Billion United States & Canada: Wellness 36%  Cosmetics & Personal Care 15%

SOUTH & CENTRAL AMERICA

$24.1 Billion  Cosmetics & Personal Care 61% Wellness 15%  Clothing 11%

 Household Goods & Durables 14%

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“

U.S. direct selling revenue not only remained stable during the past four years; it also offered many opportunities for growth.

—BEN GAMSE, USDSA Senior Market Research Manager

EUROPEAN UNION

REST OF EUROPE

ASIA-PACIFIC

$33.8 Billion

$4.1 Billion

$78.9 Billion

 Wellness 32%

Russia:

 Wellness 51%

 Cosmetics & Personal Care 22%

 Cosmetics & Personal Care 44%

 Cosmetics & Personal Care 23%

 Household and Durable Goods 16%

 Wellness 34%  Home Care 9%

 Household and Durable Goods 11%

Ukraine:  Cosmetics & Personal Care 64%  Wellness 22%

 Home Care 7%

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(continued from page 44) SOUTH/CENTRAL AMERICA The South/Central America region is made up of six billion dollar markets: Brazil, Mexico, Colombia, Peru, Ecuador and Argentina. With the exception of Ecuador (down 3.4 percent), all other markets grew in 2019. This region reported estimated retail sales of $24.1 billion, an increase of 3.1 percent and a CAGR of 1.9 percent.

Market performance breakdown was as follows: Brazil ($9.8 billion, 5 percent of global market, 0.2 percent CAGR), Mexico ($6 billion, 3 percent of global market, 1.9 percent CAGR), Colombia ($2.3 billion, 0.8 percent CAGR), Peru ($1.9 billion, 5 percent CAGR), Argentina ($1.1 billion, 26.4 percent CAGR), and Ecuador ($1.2 billion, 2 percent

ASIA-PACIFIC 2019 BILLION DOLLAR MARKETS

China

6 30%

#3

Korea

5 3.8%

#5

Japan

6 1.2%

#7

Malaysia

5 5.6%

#10

Taiwan, China

6 3.9%

#12

Thailand

5 0.4%

#15

India

5 12.1%

#19

Indonesia

5 9.3%

#20

Philippines

5 5.2%

#21

Australia

6 5.2%

#2

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M A R K E T S

“

With 89 percent of American consumers utilizing some form of social media, nearly half said they welcomed online contact from direct sellers regarding business opportunities.

CAGR), and Argentina ($1.1 billion, 26.4 percent CAGR).

Argentina's growth is fueled by high inflation.

While Cosmetics and Personal Care products remain the top category at 61 percent, 2019 showed a second year of decline from a high of 66 percent in 2017. Nearly 13.4 million independent representatives were direct sellers.

ASIA-PACIFIC There are ten billion dollar markets in the Asia-Pacific region, which generated 44 percent of global retail sales.

In 2019, Asia-Pacific sales totaled $78.9 billion, a decrease of 10.3 percent. The 3-year CAGR stood at -1.8 percent.

68.4 million independent direct sellers represented products and services here. That was 57 percent of the global total.

Wellness products comprised 51 percent of all sales (up nearly 10 percentage points from 2018), with Cosmetics and Personal Care at 23 percent.

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BILLION DOLL AR M A RK E T S F OR 2019 RANK COUNTRY

(2016-2019)

$35,210

-0.3%

2. China

$23,954

-9.7%

3. Korea

$17,683

1.7%

4. Germany

$17,453

2.9%

5. Japan

$15,624

-0.2%

6. Brazil

$9,760

0.2%

7. Malaysia

$6,116

11.6%

8. Mexico

$6,005

1.9%

9. France

$5,184

2.7%

10.

Taiwan, China

$3,650

-1.3%

11.

United Kingdom

$3,210

-4.0%

The complexities of the China market—the largest within Asia-Pacific—loomed large in 2019, as the government cracked down on the direct selling industry following unsubstantiated cancer cure claims by a Tianjin-based health and wellness products company. The resulting “Hundred Days of Action” prompted investigations, revoked the selling rights for 49 products and took a toll on sales which dropped by 30 percent. U.S. wellness companies like Herbalife Nutrition, Nu Skin and USANA suffered second quarter losses, reset expectations for the remainder of 2019 and slowly gained traction.

China’s $24 billion in estimated retail sales—13 percent of global market—for 2019 was $10.3 billion off 2018’s mark. The closed nature of China’s market resulted in the use of data estimates (continued on page 49)

2018 RETAIL SALES 3-YEAR CAGR

(US$ MILLIONS)

1.

United States

12. Thailand

$3,010

0.0%

13. Italy

$2,962

-1.8%

14. Canada

$2,480

-2.4%

15. India

$2,477

16.3%

16. Russia

$2,259

0.2%

17. Colombia

$2,251

0.8%

18. Peru

$1,918

5.0%

19. Indonesia

$1,600

12.8%

20. Philippines

$1,468

8.6%

21. Australia

$1,182

-3.8%

22. Ecuador

$1,156

2.0%

23. Argentina

$1,130

26.4%

24. Poland

$1,103

0.2%

SOURCE: WORLD FEDERATION OF DIRECT SELLING ASSOCIATIONS

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DSA Helps Move Industry Forward Mid-Pandemic “There’s evidence that direct selling is recession resistant and resilient to external economic shocks.” —Ben Gamse, USDSA Senior Market Research Manager

of respondents indicated a positive impact to their company revenue in the U.S. as a result of coronavirus.

“There’s evidence that direct selling is recession resistant and resilient to external economic shocks,” Gamse says.

Although the industry is not recession-proof, Gamse sites historical evidence of industry growth during two of the three most recent recessions. Although consumer spending and confidence decrease during recessions, there’s generally an increased demand for part-time supplemental income.

F

ollowing the onset of the coronavirus pandemic this year, the economy in the U.S. and around the world plunged into recession. There have been historic, abrupt drops in macroeconomic indicators like retail sales and employment rates. Recovery is an intangible at present.

But the USDSA has helped establish a pre-coronavirus baseline for the industry through the DSA-Ipsos 2020 Consumer Attitudes and Entrepreneurship Study. It provides the most recent data and trend information to understand conditions prior to the pandemic, so that the industry can move forward.

DSA is tracking conditions mid-pandemic with the same focus in mind. Based on quarterly DataTracker and new bi-weekly QuickPulse surveys, Gamse says, “We’ve seen remarkable evidence of resilience in the direct selling channel.”

The DSA Wave 9 QuickPulse Survey conducted June 11, 2020 showed more than half (51 percent)

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Part-time, supplemental income or diversification of income streams may be drivers this time, but so too is the industry’s ability to provide value to customers when purchasing behaviors have changed dramatically.

ClearSale, a leader in e-commerce fraud protection solutions, analyzed April 2020 e-commerce customer data from clients in the U.S., Canada, Australia, Mexico and Argentina—countries that were all in some type of pandemic lockdown—and the number of brand new online shoppers rose 12 percent from March to April.

Digital Commerce 360 reported in July 2020 that June’s $73.2 billion in U.S. online sales was up 76.2 percent, year over year.

“Regardless of when people will feel comfortable returning to stores, retail footprint will likely contract as consumers shift online,” Gamse says.

And the data that DSA and others are collecting now plays a vital role, not to predict the future but to help the industry become stronger.

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“

The WFDSA Global Research Subcommittee agrees that the governmental halt and 100-day review of the promotion and sales of health products during Q1 of 2019 was the primary cause for China’s sales decline.

The performance of the remaining Asia-Pacific billion dollar markets were as follows: Australia ($1.2 billion, -3.8 percent CAGR), Indonesia ($1.6 billion, 12.8 percent CAGR), Japan ($15.6 billion, 9 percent of global market, -0.2 percent CAGR), Korea ($17.7 billion, 10 percent of global market, 1.7 percent CAGR), Philippines ($1.5 billion, 8.6 percent CAGR), Taiwan-China ($3.7 billion, 2 percent of global market, -1.3 percent CAGR) and Thailand ($3.0 billion, 0.0 percent CAGR).

EUROPEAN UNION Remaining steady at 21 percent of global share, Europe is the third largest regional direct selling market in the world and continues to grow (1.3 percent CAGR). Overall, European direct selling recovered from a slight downturn in 2018 by posting a 0.8 percent uptick in 2019 and reported $37.9 billion in collective estimated retail sales. $33.8 billion were generated by European Union markets.

(continued from page 47) from the most reliable sources available. The WFDSA Global Research Sub-committee agreed the governmental halt and 100-day review of the promotion and sales of health products during Q1 of 2019 was the primary cause for China’s sales decline.

“While this review was not specifically related to the direct selling, it did have a significant impact on many companies.

This also impacted the availability and reliability of some of our data sources. There is no other significant change in the China data beyond this factor. We expect to see the impact of COVID-19 reflected in the 2020 data, but was not a noteworthy impact in 2019,” the Sub-committee reports.

As a result of these in-market, temporary changes, China fell to a number two ranking in the Billion Dollar Markets list and it brought their 3-year CAGR to -9.7 percent. Independent representative numbers also declined sharply from 5.6 million in 2018 to 4.1 million in 2019.

But Asia-Pacific’s story was not limited to China. Nine other countries rank on the 2019 Billion Dollar Markets list. India marked significant growth, generating more than $260 million more dollars in estimated retail sales over 2018 with a total of $2.5 billion and a CAGR of 16.3 percent. Malaysia’s forward momentum was reflected in a growing CAGR of 11.6 percent, sales at $6.1 billion, and 3 percent of global market.

EUROPEAN UNION 2019 BILLION DOLLAR MARKETS

Germany

5 5.0%

#9

France

5 1.5%

#11

United Kingdom

6 6.1%

#4

#13

Italy

#24

Poland

6 5.7% 5 1.3%

REST OF EUROPE 2019 BILLION DOLLAR MARKETS

#16

Russia

6 6.2%

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U . S . M A IN TA IN S , C HIN A S L IP S Uni t e d S t a t e s YEAR

RETAIL SALES (US$ Millions)

PERCENT CHANGE Year-over-year

2016 $35,540 -1.6% 2017 $34,900 -1.8% 2018 $35,350 -1.3% 2019 $35,210 -0.4% Direct sellers numbered over 14 million with 7.0 million residing in the EU. Wellness (32 percent), Cosmetics and Personal Care (25 percent), and Household Goods and Durables (14 percent) rounded out the top three European product sales categories.

Marie Lacroix, executive director, SELDIA-The European Direct Selling Association, says sales in 2019 were driven by strong national markets in Germany and France, but also by smaller markets in the Baltic States of Lithuania, Estonia, and Latvia, as well as Romania. Brexit’s impact has already shown itself through decreases in U.K. sales.

Germany’s $17.5 billion in estimated retails sales ranked fourth overall and was 10 percent of global market. They experienced a 5.0 percent increase in 2019 and a 2.9 percent CAGR. France was the only other billion-dollar European market to show gains in 2019 with sales of $5.2 billion, 3 percent of global market, and a 2.7 percent CAGR. The United Kingdom ($3.2 billion, -4.0 percent CAGR) and Italy ($3 billion, -1.8 percent CAGR) struggled, while Poland ($1.1 billion, 0.2 percent CAGR) remained flat.

“The legislative framework in Europe is the backbone of the region’s continued stability, offering companies and people active in direct selling a clear outlook over the future, as well as maintaining a healthy work environment with an increasing demand for alternative job opportunities such as those in direct selling,” Lacroix says.

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C hin a YEAR

RETAIL SALES (US$ Millions)

PERCENT CHANGE Year-over-year

2016 $32,572

1.9%

2017 $33,549

3.0%

2018 $34,220

2.0%

2019 $23,954 -30.0%

REST OF EUROPE Just under $4.1 billion in estimated retail sales were generated by “Rest of Europe” in 2019, a drop of 3.9 percent. The market recorded a CAGR of 1.9 percent. Russia’s estimated retail sales of $2.3 billion represented the largest market and generated nearly 56 percent of sales. After 13 percent growth in 2017, Russia’s sales dropped 5 percent in 2018 and 6.2 percent in 2019. This volatility shows in the market’s CAGR, reported at 0.2 percent.

Other developing markets within the Rest of Europe, include Norway, Switzerland, Turkey and Ukraine. All but Switzerland showed losses in 2019.

Independent representative numbers slid slightly to 7.1 million, while data on product category sales was not available. DSN

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INTERNATIONAL COMMERCE SIMPLIFIED

International technology platform and logistics solutions for direct sellers.

globalaccess.com

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WORKING REMOTE IS THE DNA OF DIRECT SELLING Young Living COO Jared Turner isn’t going back to the way things were.

B y

J O S H

E d i t o r - i n - C h i e f,

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E L L I S ,

S U C C E S S

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F E A T U R E /

W O R K I N G

R E M O T E

JARED TURNER, President and COO of Young LIVING

I

T WAS 2 p.m. on a Friday, and Jared Turner was judging his employees. Flanked by his company’s head of finance and its chief legal counselor, the president and COO wandered amongst the cubicles at Young Living’s headquarters, taking note of which departments had cut out for the weekend.

He assumed the worst.

“Look at these people,” Turner recalls thinking to himself. “They’ve left early. We’re losing productivity.

They’re not giving us their best… It bugged me.”

That was then, and this is now. Since the office culture paradigm shift in the spring of 2020, when virtually all companies shifted to an all-virtual, remote structure, Turner has experienced something of a personal awakening.

Gone are his notions, held over from a background practicing law, that productive collaboration, strategic thinking, and innovation can only best be accomplished by a 9-to-5, in-office work environment.

T RUMP E T ING W OR K-F ROM-HOME BENEFITS Instead, he’s become a leading evangelist for the growing work-from-home movement. Turner is trumpeting the benefits of remote work to any and all who will listen, in spite of the fact that Young Living’s pristine Lehi, Utah offices, which opened in 2019 with some 150 meeting spaces meant to foster teamwork and collegiality, now sits mostly dark. A subset of employees, deemed essential for in-person work, continues to report each day.

Turner didn’t anticipate this change of heart. As the new standard of social distancing began to unfold in March, he feared that the essential oils leader would slowly “disintegrate.” That hasn’t been the case at all, he says. In an article Turner penned for the Salt Lake Tribune in May, he cited productivity increases of 25 percent in the IT department and 13 percent in sales. He refers to

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easily trackable metrics that prove call center employees are getting more done, and reports that the majority of employees are feeling not only more productive, but happier.

“I’ve heard countless stories of staff members who, for the first time, were able to eat lunch with their kids, or early dinner with their kids,” Turner says. “Between Zoom calls, they’ve been able to go about and play in the backyard, or they’re connecting with their spouse more. And it’s created a whole new work-life balance that we had all only dreamed of.”

“As long as we’re productive, as long as we’re connecting, as long as we’re getting business results, I don’t know why we would change the model.”

LOOKING LONG TERM Young Living has given permission for employees to work remotely through the end of 2020, but Turner is truly looking in the longer term. By allowing staffers to telecommute, he expects that retention will be improved as employees appreciate the perks of working from the

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GONE ARE HIS NOTIONS, HELD OVER FROM A BACKGROUND PRACTICING LAW, that productive collaboration, strategic thinking, and innovation can only best be accomplished by a 9-to-5, in-office work environment.

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“

I’ve heard countless stories of staff members who, for the first time, were able to eat lunch with their kids or early dinner with their kids. It’s created a whole new work-life balance that we had all only dreamed of.

— JARE D TU RN E R , Pr e sident and C OO

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comforts of their home, or anywhere. Turner imagines hiring even more skilled employees, the best of the best living in San Francisco, New York or London, as opposed to picking from the talent pool of Salt Lake City or from applicants willing to relocate.

He admits that his prior assumptions about why employees might leave early on a Friday didn’t take into account that every worker is different. Some may have come in early that day, or worked later Monday through Thursday, or had a family obligation that couldn’t be missed. Likewise, he is aware that not every employee now prefers to work from home. Single people, in particular, were likely to report missing the in-person connection with their Young Living coworkers.

AUTHENTICIT Y RULES In an effort to maintain the company’s culture, Turner has made a concerted effort to be more authentic and vulnerable with his team on bi-weekly town hall videoconferences.

Young Living’s HR team has created weekly happy hour calls, and groups can still gather at the basketball court behind company headquarters for socially distanced games of H-O-R-S-E. The company offered employees a $500 stipend for home office spending.

Generally, Turner says, the “rockstar” employees have maintained their production following the pivot, and many people who like to work remotely have gone “above and

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beyond the call of duty” to prove that the new model works.

But other helpful insights have emerged as well.

“You can see the people who fade away, whom you don’t hear from for a couple weeks, and who don’t have a lot to do,” Turner says. “In-person work can camouflage that. People can come in and fake hustle all day long. We’re waking up to that reality and creating new management frameworks to separate the wheat from the chaff.”

IMPROVING THE QUALIT Y OF LIFE A long-term shift to a remote work structure will come with other changes, Turner acknowledges, but he is overwhelmingly positive about the potential for positive results those can bring—not only for Young Living and its employees but for the community and society as a whole.

“Imagine the improved happiness of a single mom who no longer needs to commute an hour to work and back every day,” Turner says. “Imagine how much more present she can be for her kids and the long-term effects of extra time spent

CONTACT SALES payquicker.com/DSN solutions@payquicker.com

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with them. Imagine the environmental improvements in a new world where she and millions of other people take their cars off the highway.”

Turner describes Young Living as “a farming company,” which has green values at its foundation. Young Living’s estimates show that by allowing 95 percent of its headquarters workforce to stay home, it eliminates 20,175 pounds of carbon emissions per day. When it extended remote work through the end of the year, the company effectively produced the same amount of environmental carbon dioxide removal as 64,700 mature trees.

And then there is a part of all this that is harder for Turner to quantify: the impact on his own quality of life. A father of 5 8 D I R E C T S E L L I N G N E W S |

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By allowing staffers to telecommute, he expects that retention will be improved as employees appreciate the perks of working from the comforts of their home, or anywhere. three, he has grown accustomed to having his kids drop in on Zoom meetings and has taken up daily walks with them to visit a neighbor’s pet zebra.

Young Living’s members—its field—have of course, always been spread across the country and the world, operating independently. As Turner sees it, remote work is in the DNA of direct selling, which gives the industry leadership credibility in the economy of the future.

Having experienced what he has in 2020, Turner can’t see a return to business as usual: “I don’t know how the world can go back to the way things were.” DSN

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O N E

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Q & A

W I T H

M A G N U S

B R Ä N N S T R Ö M

with Magnus Brännström Insights on Leading During a Global Pandemic from the CEO and President of Oriflame and WFDSA Chair.

BY TODD ELIASON

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WAS FORTUNATE to catch up with the WFDSA Chair and the CEO and President of Oriflame Magnus Brännström. He offered his insights on leading during the COVID-19 pandemic and the challenges, changes and successes of the direct selling industry.

How has the pandemic shifted your thinking as a CEO? I am not sure that the pandemic itself shifted my thinking. It just reminded us about prioritizing the right things. The times have changed, and this change started long before the pandemic. I do see that digitalization has speeded everything up. And of course, for me, it means faster decision making.

What new leadership skills must executives have to operate in the new normal we find ourselves in?

I am not sure that the skills are completely new. It was always important for an executive to be open, flexible, have high integrity, a clear vision and be close to people. The crisis sharpens the need for those qualities. As everything is happening fast, the authenticity and being true to yourself gives reassurance to the organization, and it is very important in times like these.

What does success look like for you as CEO? Success to me is marked by a flourishing community. Our mission is to empower people to flourish with sustainable healthy living. If we can do that through our offering and community then that would be success. Of course, results are important too and we are very focused on growth.

This helps move our mission forward.

How is your company navigating the work from home environment?

We had to postpone our physical conferences, both for our brand partners (representatives) and employees. As we clearly miss live interaction. It is one thing to see each other online; it is another thing to build and strengthen relationships, spark creative thinking and have fun together. We are trying to compensate with online meetings—they are exciting and fun. However, we are eagerly waiting to be able to meet in person.

“

What changes have you already implemented or put into action?

We have been working with digitalization for quite some time, and this year we have set the new Oriflame—a social selling beauty company—in motion. I clearly see how fast everything has become. Before the adoption of a certain digital tool would take years, now it’s a matter of days (sometimes hours). It is definitely exciting, and it opens up for new opportunities!

We are the People’s Business. No matter what times we are in, if there is a crisis or not, people always come first.

What have you learned about your company/ workforce that you didn’t know before COVID-19?

I am very impressed by the curiosity of our people, and our ability to embrace change. We are much more digital than I thought. We have also proven that we are a community of like-minded people and that Togetherness, Spirit and Passion are not just our value words—they are what makes us who we are.

How and when does a company transition to bringing back their employees to the office?

We are following local authorities’ regulations when it comes to bringing people back to the offices, and we are ready for a gradual return. Of course, in light of new experiences, we are looking into our work practices, as new digital tools allow now for more flexibility and new opportunities.

How are you building culture when you can’t be together with employees in an office?

Culture and employee experience are super important to us. It’s much more difficult to feel a sense of belonging when you are not physically together. We are very digital. Working from home during the quarantine wasn’t really a problem, as we are used to communicating online—we are a global company. w w w . d i r e c t s e l l i n g n e w s . c o m 6 1

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One of our core values is Togetherness, and we pretty quickly understood that we need to stay close to each other and not lose the connection. During pandemic, we focused on the personal wellbeing of our people, on expanding the digital mindset even more, and on supporting our Oriflame culture through very transparent communication.

We believe in daily routines. That is how we work with our skin care and wellness categories.

We organized weekly wellbeing programs for our people, both globally and locally. At 8:30 every day, we have joint workouts, yoga, mindfulness classes and lectures about general wellbeing. We have also organized a live session with a psychotherapist, where we went into the nature of emotions. People could ask anything that was on their mind. It was very special and super appreciated. This is not the first time for us, as we regularly organize sessions about the so-called wheel of life topics—different areas apart from work, that help you develop as a person.

When it comes to communication, we are running frequent staff updates, team meetings, check-ins, even virtual coffee-station chats. We exchange updates via Teams, Yammer, our intranet.

We actually chose to take a non-formal approach and organized CEO Connect sessions every second or third week for everyone in Oriflame to join. We ran it through Teams Live. Instead of showing a presentation with numbers, I did a live Q&A and answered all questions uncut. Any question. People posted questions and voted for them live, and I answered. As transparent as I could. People asked everything important to them. I got many tough questions as the times are tough. Sometimes I didn’t have an answer, but it is ok. I just had to say it directly as it is. I believe that trust can be earned only when you are you and when you are totally open—especially in times like these. I feel that we are coming out of COVID stronger than ever—as the trust we have now is unbelievable. We are definitely set for the future. We have adjusted our communications channels during this time, and we stayed true to our culture of Togetherness, Spirit and Passion.

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B R Ä N N S T R Ö M

“

What is our channel doing well, where do we need to improve?

It is clear that we are good at selling, recommending and supplying products online. We are all getting the DS reports on a weekly basis, and it’s is great to see that the channel is doing ok, better than some other industries. But of course, it’s too early to judge.

What advice do you have for leaders of our channel as we move forward?

As a WFDSA Chair, I have seen a big development of the channel during the last years.

We are now talking about social selling, gig economy.

We feel pride, and we feel the momentum. Digitalization is here, that’s for sure. So, all that is just great.

When it comes to moving forward, there is one thing that makes a difference for our channel. We are the People’s Business. No matter what times we are in, if there is a crisis or not, people always come first. And if you have the trust and good relationships in place, both with your representatives and employees, everything else will happen. New tools, new ideas, new products, new successes. DSN

Togetherness, Spirit and Passion are not just our value words– they are what makes us who we are.

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C O M P A N Y

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

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International Company Focus Here’s what three growing companies are doing to adapt to changing circumstances and prepare for life—and growth—after pandemic.

BY COURTNEY ROUSH AND JENNY VETTER

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I

N JUNE 2020, the World Bank released its 2020 Global Economic Prospects report, which presented the organization’s immediate and long-term forecast for the pandemic’s impact on our global economy. “The pandemic is expected to plunge most countries into recession in 2020, with per capita income contracting in the largest fraction of countries globally since 1870” are among the report’s discouraging predictions—and those are best on best-case scenarios; “should COVID-19 outbreaks persist, should restrictions on movement be extended or reintroduced, or should disruptions to economic activity be prolonged, the recession could be deeper.”

Even in a time when so many companies inside and outside the direct selling industry are adapting to the economic consequences of the pandemic, there is hope. Both here and abroad, our industry is displaying agility and ingenuity in times of crisis. The fact that no country is exempt from the devastation caused by coronavirus presents an opportunity for our industry members to share what has worked, as well as what hasn’t, and draw inspiration and learning from each other. Direct selling’s reputation for strong organizational cultures, valuesdriven and highly personalized service, sales force education and training are among the distinctions that have served our companies well during periods of economic decline.

Here’s a look at three international direct selling organizations who are leaning on their strengths throughout our current circumstances and planning for a future of growth.

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C O M P A N Y

S P O T L I G H T

1967

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

Schaffhausen, Switzerland

C O M P A N Y

Cosmetics; Personal Care, Wellness

F O C U S

Magnus Brännström, CEO & President

Inspired by Nature, Powered by Science Active in 60 markets. Over 3 million Brand Partners. Appearing in the top 15 companies of our Global 100 for the last 10 years.

O

Oriflame is a leader with eyes on a beautiful, sustainable future.

VER 50 YEARS AGO, brothers Jonas and Robert af Jochnick and friend Bengt Hellsten launched Oriflame, a cosmetics company that would introduce the world to their Swedish view of beauty— one inspired by nature, simplicity and balance. Their family-owned business would eventually become one of the most well-known beauty brands in the world, as their dedicated field of Brand Partners work with the same passion to share this new definition of beautiful.

“Because we’re from Sweden, we have a different view on beauty,” explains CEO and President Magnus Brännström. “It’s a way of life: to be healthy, enjoy beautiful skin, express yourself and have fun. It’s about being confident in who you are and finding balance in life. A balance that comes from the inside and out—that

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puts you in control no matter what life throws at you— that lets you grow and thrive.”

Jonas and Robert’s original dream has maintained a relevancy that few beauty brands can claim. From the beginning, Oriflame has focused on the intersection of nature and science, developing beauty and wellness products inspired by native Swedish plants and herbs studied and stewarded by the company’s scientists and physicians. Today, Oriflame’s collection of products includes skin care, cosmetics, fragrance, personal and hair care, accessories and wellness—every item an integral component of the company’s takes on holistic beauty.

“Holistic beauty starts from the inside,” says Brännström. “Together with doctors and scientists, we developed a nutritional program for daily usage called Wellness by Oriflame. It consists of the important

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“

Because we’re from Sweden, we have a different view on beauty.

—MAGNUS BRÄNNSTRÖM, CEO & President, Oriflame

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“

We have chosen to focus on our people’s wellbeing and on our culture during the quarantine, and the trust we built is incredible.

— E L E N A AY L OT T, V i c e P r e s i d e n t G l o b al E m p l oye e E x p e r i e n c e , O r i f l a m e

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vitamins and minerals you need every day, but also includes protein to manage your weight and balance the diet. Wellness

by Oriflame is a certain lifestyle when you gradually change your habits towards a healthy and thus more happy and beautiful life.”

S O CI A L SEL L ING —A N AT UR A L F I T As retail fades and social selling takes even more ground in the beauty space, Brännström views Oriflame’s opportunity as a golden one.

“The whole vision going forward is that retail with the regular physical stores will cease to exist. We see it happening already now,” he says. “One of the challenges in this new world is that the consumer can now choose from 50,000 different alternatives online. We are a company helping consumers make the right choice through our Brand Partners, who have knowledge not only about the product but also about what our consumers want. I believe that the social selling of tomorrow will mostly be the exchange of views and recommendations between friends, and it will be primarily done virtually.”

Across 60 countries, Oriflame’s three million Brand Partners couldn’t agree more. Oriflame’s business opportunity invites Brand Partners to experience the Swedish ideals the af Jochnick Brothers built their business around. Individuals can join the company as either Brand Partners focused on building businesses and sharing products or as VIP Customers with easy access to new products and discounts.

“We’ve had a natural ethos from the beginning,” says

Michael Cervell, Senior Vice President Group Strategy and Business Development. “But even more than that, we offer a culture that believes everything is possible. Our mission is to fulfill dreams—big words, but we want to give people all around the world, who buy into our values, an opportunity to learn, grow and earn. Creating a better life for themselves and their families by living and promoting our product solutions and business.”

T HE O R IF L A ME WAY Both Brand Partners and corporate team members refer to this better life as the “Oriflame Way”—the practices and behaviors that unite the company and drive its success.

“We Oriflamians are very curious by nature, and we are constantly trying new tools, technologies, and ideas,” says Elena Aylott, Vice President Global Employee Experience.

“We even won the Best Learning Culture Award from LinkedIn last year. We are running global employee ideation events called Dragon’s Den, where our people pitch new ideas for the business. We are known for our great staff parties—we love having fun together!”

Togetherness is one of Oriflame’s core values, inspiring the company to prioritize consistent and transparent internal communication through channels like Teams and Yammer.

This is has been especially helpful throughout the COVID-19 pandemic, as teams could easily communicate in their new work environments.

“We could quickly re-adjust ourselves to working from home, as both digital culture and digital tools were in place.

We have chosen to focus on our people’s wellbeing and on our culture during the quarantine, and the trust we built is incredible,” says Aylott. w w w . d i r e c t s e l l i n g n e w s . c o m 6 9

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SUS TA IN A BIL I T Y A ND S T R AT E G Y Oriflame’s connection to nature isn’t limited to its innovative product lines. Long before sustainability was a buzzword, the company was already putting initiatives in place to positively impact the environment that means so much to all Oriflamians. Since 2010, the company has made changes to its production and logistics in an effort to reduce its impact on climate, water and forest. Thus far, many of those goals have been achieved, including a 48 percent reduction in CO2 emissions, 100 percent green, renewable electricity at all operations, sustainable board packaging and catalog paper, 100 percent natural origin exfoliants (no plastic beads) and the addition of biodegradable skin care and personal care ranges.

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C O M P A N Y

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These successes are only some of the milestones achieved— many more are anticipated between now and 2025.

Oriflame anticipates continued growth, as the company focuses on investing in the Brand Partners taking Beauty by Sweden to every corner of the globe.

“We have a Brand Partner-centered focus for our strategy,” says Cervell. “This means that we want to ensure they have unique products, leading digital tools, systems and training to truly add value to our customers. We see great growth opportunities within the many markets we are already in, but we may also enter new markets, though not at the speed we did in the last 20 years.”

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New products are on the horizon as well, says Brännström.

“We have accumulated lots of knowledge in the area of skin care, we are doing research and testing in our laboratories, and we are very careful to choose the right ingredients that work.

We are also investing in education for our Brand Partners— they add profound value by understanding the ingredients, the way the products work and recommending the right product for certain needs. As we have a holistic approach to beauty, we don’t really go for miracle cures. We believe in every day, in taking care of yourself step by step, all the time.”

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FABULOUS PARTY MANAGEMENT

The social selling of tomorrow will mostly be the exchange of views and recommendations between friends, and it will be primarily done virtually.

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C O M P A N Y

S P O T L I G H T

1993

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Schengen, Luxembourg

C O M P A N Y

Cosmetics; Personal Care, Wellness

F O C U S

Rolf Sorg, CEO

Agility Through Innovation For PM-International, investment in R&D positions company to deliver on founder’s vision of growth.

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ASED IN SCHENGEN, LUXEMBOURG, PMInternational develops and distributes through its independent sales force of approximately 35,000 distributors (called “Team Partners”) a variety of premium products for health, fitness and beauty through its brand, FitLine®. The company was founded as P.M. Cosmetics GmbH in Germany in 1993 by its current CEO, Rolf Sorg. Today, PM-International operates in more than 40 countries and employs a staff of more than 670 employees. In 2019, PM-International celebrated the grand opening of its Headquarters Americas, including a fulfillment center, in Sarasota, Florida. Global sales for 2019 reached $1.11 billion, marking the first time the company broke 7 2 D I R E C T S E L L I N G N E W S |

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the $1 billion barrier; global sales were $834 million the year prior. “We weren’t the fastest company in the market to get to $1 billion,” Sorg says, “but we were always growing consistently, always with a clear focus on our goals and core values.”

Sorg was a student looking for a side income when he discovered direct sales. Eventually, he worked his way up to become the company’s most successful distributor, at which point he made the decision to pursue direct selling full time. In 1993, the company Sorg represented went out of business, so he opted to start his own.

His objective, he says, was to give others the same opportunities he’d enjoyed in the industry: premium quality products and a transparent, fair and duplicable business model. “We live by the principles ‘If I can do it, you can do it’ and ‘simple, successful,’” Sorg says.

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Keeping our distance does not mean we can’t provide personal customer service, have exchanges within the team or hold trainings anymore.

—ROLF SORG, Founder and CEO, PM-International

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The sports marketing concept of PM-International, and especially the testimonials and success stories of the athletes, increase the trust in our brand.

—ROLF SORG, Founder and CEO, PM-International

MILESTONES Among the company’s achievements in its 27-year history is its involvement in international elite sports. PM-International’s FitLine® brand has partnered with organizations including the German, Austrian and Polish ski associations, German Ice Hockey Federation, German Cycling Federation, German Athletics Association, Swiss Sliding Federation, the Swiss and Luxembourg Handball Federations and the Luxembourg Basketball Federation. As of 2020, FitLine is also the official supplier of nutritional products of the Canadian Ski Association Alpine Canada. The company also collaborates with the Cologne List®, which only includes products that have undergone rigorous tests for specific doping substances. These third-party, high-profile alliances have been advantageous for the sales force, Sorg says. “The sports marketing concept of PM-International, and especially the testimonials and success stories of the athletes, increase the trust in our brand.

For our distribution partners, it’s a tool to spark interest in our products among athletes and sports fans.”

In 2013, PM-International was the first direct sales company to receive the certified direct sales rating from the German Association for Technical Inspection (TÜV Hessen).

The certification procedure includes an on-site audit at company headquarters and evaluates such criteria as license fees, support of distribution partners and transparency of the marketing plan.

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RESEARCH AND DEVELOPMENT In the spirit of continual improvement, PM-International has made a significant investment in research and development in recent years. They concentrated on intensifying basic and applied research with its in-house team of scientists from the fields of nutritional sciences, cell research and food technology and collaborating with universities and research institutions like the Luxembourg Institute of Science and Technology (LIST) and the University of Applied Sciences Upper Austria.

Thanks to its ongoing commitment to innovation, the company owns more than 70 national and international patents.

“Our main task is to develop new high-quality products for health, fitness and beauty,” says Dr. Tobias Kühne, Chief Scientific Officer at PM-International. “In addition, we’re relentlessly working on increasing the bioavailability of FitLine® products by developing and improving new formulations, replacing ingredients and reworking recipes around our patented NTC® and thus improving people’s quality of life.”

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Convert Your Social Fans into Paying Customers Give your sales force social selling tools to succeed Social Commerce Social Automation In 2016, the company signed a strategic collaboration agreement with the Luxembourg Institute of Science and Technology (LIST).

A joint research project, ACTIVITIS, aims to extract secondary plant compounds from grape pomace, a by-product of the local wine industry, and “upcycle” them for industrial purposes in a sustainable way. Last year, PM-International made a substantial contribution to the opening of the Josef Ressel Center for Phytogenic Drug Research at the University of Applied Sciences Upper Austria.

THE PANDEMIC Our global pandemic, Sorg says, has reminded his company and distributors how important it is to be flexible and adapt quickly in the face of disruption. “I’m especially proud of our Team Partners— they’ve kept a positive focus and shown great leadership throughout these challenging times. Keeping our distance does not mean we can’t provide personal customer service, have exchanges within the team or hold trainings anymore.”

Having already introduced a series of digital innovations to its sales force in the months before the pandemic, PM-International was prepared to pivot its operations and help its distributors to do the same when stay-at-home orders began throughout the globe. At the beginning of the year, the company introduced PM TV, which offers unlimited streaming of events, training and information to a worldwide audience. Team Partners have the infrastructure to consult their customers via video conference from home and place orders online. On the back end, those orders are handled in-house through the company’s Customer Direct Program. As an additional support, PM-International offered worldwide free shipping for end customers during April, May and June.

Social Governance Social CRM and more…

Request a Demo Today 214.659.1549 hello@socialsales.io

socialsales.io/dsn

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Earlier this summer, PM-International announced the global launch of its PM DirectCash program, which enables Team Partners to receive their retail income instantly for every online customer order. Retail income is credited in realtime to the distributor’s My PMPay e-wallet mobile app, after which she may choose for the funds to be deposited into a bank account, her My PMPay debit card or PayPal account. The PM DirectCash program represents another step forward in giving Team Partners the ability to run a completely digital business.

PHIL ANTHROPY Through its foundation, PM We Care, PM-International has been involved with global philanthropic efforts for nearly two decades.

As the largest corporate sponsor of the relief, development, and advocacy organization World Vision, PM We Care supports 2,300 sponsored children, their families and entire communities in more than 60 regional development projects around the world, including India, Peru, Cambodia, Mongolia, Ghana and Indonesia.

In response to the global pandemic, PM-International established “PM Helps,” a fund of 1 million euros to help people in some of Europe’s most severely affected regions including Germany, France, Spain and Italy. Donations included protective gear and medical devices for hospitals, energy bars from its own product line and money to provide catering for health care workers and families in need, as well as disinfectant for the safe reopening of schools.

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Our next goal is to realize 100 percent recyclable product packaging by the end of the year.

—ROLF SORG, Founder and CEO, PM-International

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THE FUTURE “I see it as my personal responsibility to Team Partners to build a business model that will continue to function sustainably for future generations. Sustainability is an important topic we are working with right now,” Sorg says.

“Our next goal is to realize 100 percent recyclable product packaging by the end of the year.”

The company’s ambitious growth plan includes the investment of several million euros in the expansion of the company’s International Headquarters in Luxembourg, a fourth warehouse at its European Logistic Center in Germany, an additional 10,000-plus square feet of storage space at its Headquarters Americas in Florida and additional office space for Headquarters Asia-Pacific in Singapore. As for its global expansion strategy, PM-International recently began operations in Ukraine. Next on the company’s agenda are grand openings in Canada and Indonesia, and an expansion of its business in Europe, with pre-launch phases in the United Kingdom, Belgium and Hungary. “Strategically and economically, we are well positioned to become Europe’s largest network marketing company within the next three years,” he adds.

“Now the tyranny of the present is supreme. A lot of organizations have had no choice but to focus on surviving immediate threats,” says J. Peter Scoblic in an article for Harvard Business Review (“Learning from the Future”; July/August 2020). At the same time, he adds, leaders must continue to plan for the future even in the face of uncertainty.

“The stakes are high, and decisions that leaders make now may have ramifications for years—or even decades. As they try to manage their way through the crisis, they need a way to link current moves to future outcomes.”

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COMMUNICATE CONSISTENTLY & INTUITIVELY Smart Communications • Personalize communications with representatives ✓ Just-in-time training based on user behavior ✓ Follow-up reminders ✓ Automated follow-up reminders ✓ Event notifications • Engage with shoppers ✓ Sample, discount, coupon or product offers ✓ Product follow-ups ✓ Referral requests ✓ Retargeting campaigns

Onboarding & Training • Onboarding ✓ Immediate onboarding and distributor engagement ✓ Interactive tutorials ✓ 2-way communications and surveys •

Personalized Training ✓ On-demand, learn-as-you-go, just-in-time training ✓ Deliver time-sensitive messages based on predetermined events and user behavior ✓ Keep your field informed with timely push notifications

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C O M P A N Y

S P O T L I G H T

2009

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Gongju, South Korea

C O M P A N Y

Wellness, Cosmetics, Personal Care, Food and Beverage, Kitchenware & Appliances, Clothing & Accessories, and Home Decor

F O C U S

Han-Gill Park, Founder & CEO

Breaking the Mold Atomy proves that work and play aren’t mutually exclusive.

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ASED IN GONGJU, SOUTH KOREA, Atomy provides more than 400 products in various categories including nutritional supplements, beauty, fashion and home décor. Founder and Chairman Han-Gill Park first encountered direct selling during a business trip to Australia. Afterwards, he quit his job and became a distributor for a direct selling company. Park reached the top level of the sales organization but ultimately lost the business he’d built when the company closed.

Park subsequently started im-korea.com, an online shopping site, implementing some of the techniques he’d learned in direct sales. Still, the company failed to take off due to inadequate infrastructure and a lack of consumer awareness. In 2009 and on a shoestring, he launched Atomy based on a philosophy of “Absolute Quality and Absolute Price”—selling prestige-quality products at prices the masses could afford. His intent was never to compete with other direct selling

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companies but rather other distribution channels.

He also established several other non-negotiables: a commitment to honesty and integrity, a “one partner per product” philosophy (meaning one manufacturer per product line, which, along with cash payments upon delivery and interest-free financial assistance for operating costs, helps partners grow) and the company’s profitability through an economy of scale.

Atomy’s flagship product, HemoHIM, a health supplement designed to boost immunity, was developed as part of a government project by the Korea Atomic Energy Research Institute in 2004. It was a best-seller in the Korean direct sales industry for six consecutive years (2014-2019). Originally, HemoHIM was offered through another distributor at a price of $770 for 60 packets. Atomy now sells 60 packets of the same product with the same ingredients for $84. HemoHIM and several other Atomy products—including the topselling Absolute CellActive Skincare System—are sold by a global sales force of 10 million distributors.

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The past ten years have proven that consumer-centered management is much more effective than that of the membershipcentered.

— HAN - GILL PARK, Founder & CEO, Atomy

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The objective is to capitalize on employees’ strengths and give them the courage to take risks without fear of retribution should they fail.

— HAN - GILL PARK, Founder & CEO, Atomy

The company maintains a consumer-centric focus. “Our message is clear: Try only the products you need and only if you’re truly satisfied, recommend them to other consumers,” Park says, adding that a disproportionate focus on distributors isn’t sustainable; “many companies aren’t concerned whether their products are marketable in quality and price but are rather fixated on how much commission to pay out in order to maximize membership. This commonly becomes the reason for the higher prices of direct selling products over others. The direct selling industry shouldn’t forget that it’s just another form of distribution. The past ten years have proven that consumer-centered management is much more effective than that of the membership-centered.” Global sales for the company totaled $1.15 billion in 2019, and it maintains 14 global corporate offices in locations including the United States, Japan, China and Russia.

A N O F F I C E AT P L AY It’s hard to argue that Atomy has one of the most unique corporate cultures in the direct selling industry. Take, for example, its “free title system.” Employees are given the latitude to choose their own professional titles, regardless of their respective seniorities. The only stipulation is that they assume responsibility for the duties suggested by their titles.

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Low cost.

High ROI.

Adopting a “Chutzpah Mindset,” or being bold, asking tough questions and remaining tenacious in the face of insurmountable challenges, is another core value at Atomy. Employees also enjoy “powers without a yoke of burden,” meaning that “we give our employees the powers they need to carry out tasks without holding them liable for the consequences,” Park says. The objective is to capitalize on employees’ strengths and give them the courage to take risks without fear of retribution should they fail. Managers evaluate employees’ performance based on demonstrated effort to reach above and beyond.

Within a decidedly flat organization, Atomy encourages employees to work through influence, not rank. “An experienced soldier doesn’t mindlessly comply with his commander’s orders.

He scans the battlefield himself, understands his allies’ moves, and responds to the enemies’ actions to find the best way to win. He plays the role of a soldier as well as a commander. Atomy employees should also think of themselves as executives and grasp how their actions impact the company’s viability as a whole,” Park says.

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USAGE OF TAGLINED LOGOS The tagline "AUDIT.TAX.ADVISORY" only accompanies the logo in circumstances where context requires clarification about what Squire can do for current and potential customers (the audience).

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

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

One-tagline version of full color logo

Secondary-tagline version of full color logo

One-tagline version of white logo

netsuite.squire.com ( 801) 225-6900

AUDIT · TAX · ADVISORY

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

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W h e n a p p r o v e d b y t h e c o m p a n y , any word usage, may be used with the

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Secondary-tagline

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Atomy is scheduled to launch

3 5

NEW MARKETS before the end of 2020: India, Colombia and Turkey

and in the next YEARS plans to begin operations in Europe and Africa

By 2030, Atomy will be available in more than

30

COUNTRIES WORLDWIDE

Reflective of this unconventional culture are Atomy’s headquarters in South Korea, recognized by the Korean Institute of Architects in 2019 and reminiscent of a Google or hip Silicon Valley IT startup. An August 2019 feature in Forbes Korea describes an open floor plan in which employees work where they choose, are exposed to diverse skillsets and thinking, and enjoy such amenities as an indoor pool, a pool full of rubber balls, swings hanging from the ceiling, a “Thinking Room” with toilet chairs, a “Slam Dunk” room with basketball hoops, a camping space designed to bring the outdoors indoors, massage chairs, a children’s playroom and hair salon. “We didn’t create play spaces in an office but office spaces in a playground,” Chairman Park told reporter Hoon Beom Lee, adding that his intent was to create an environment that tempered a propensity for overworking—something he admitted he used to do—and that burnout was the enemy of creativity.

RESEARCH AND DEVELOPMENT In October 2019, Atomy celebrated the groundbreaking ceremony of Atomy Orot Factory in Gongju City, a facility that includes a centralized research center and food research lab. It will be the key engine of the research and development of Atomy food products that use natural ingredients without artificial flavors or additives.

Through a strategic partnership with Kolmar Korea, a global original design manufacturer (ODM) in the skincare and health supplements sector, Atomy researches and develops products in line with its philosophies and principles while following consumer trends—for example, the company’s 8 2 D I R E C T S E L L I N G N E W S |

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number-one product, the previously mentioned HemoHIM, developed by Atomic Energy Research Institute and manufactured by KolmarBNH. Atomy also seeks out small or mid-sized companies that offer quality products but have encountered difficulties with sales or product promotion. The company’s aim is to build and nurture long-term, mutually beneficial partnerships by providing these companies with a secure sales route, financing and support of quality improvement efforts.

THE PANDEMIC As is the case for many direct selling companies, Atomy employees and distributors had to respond to changing work conditions quickly. With the onslaught of the coronavirus, what Park refers to as the “no-contact” trend has picked up steam at Atomy; the company canceled all in-person events and replaced them with video streaming through its own channels. Salespeople have opted to meet in smaller groups of two to three prospects at a time, which affords them the opportunity to provide participants with a more in-depth introduction to sponsorship.

The pandemic has inspired increased popularity of products designed to improve immune function—for example, HemoHIM, which recorded sales of 67 billion KRW at the end of April 2020, a 20 percent increase from the year prior. “As the situation with COVID-19 continues, people are taking more of an interest in health

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and immune systems than ever before,” said Reporter Chan Yu of Money Today Network (MTN) in a recent broadcast. “As a result, the dietary supplement industry is showing a jump in sales which is set to expand not only in Korea but also globally.”

PHIL ANTHROPY Atomy maintains an active philanthropic presence, from its annual Atomy Run fundraising event, which offers 1:1 matching donation to various causes. Its support of children’s welfare projects, including the donation of 2.7 billion KRW in July, 2020, for the construction of a public children’s rehabilitation hospital, the construction of an academic institute at Siloam Eye Hospital, and a 10 billion KRW (approximately $8.7 million) donation to the Community Chest of Korea, the country’s largest welfare institution, to help single parents, underaged or young mothers become economically independent. The Community Chest donation, made through Atomy’s “Life Cherishing Mom” fund, is the largest among those made by mid-sized companies in Korea.

The next phase of Atomy’s business, Park says, is a platform that blends business and entertainment to engage distributors in a new way. Launched in 2019, Atomy Entertainment & Multimedia, or Atomy ENM, is an “entertainment-centric distribution company” led by renowned drummer Lino Park.

It’s designed to encourage and inspire Atomy distributors and provide accessible and entertaining content they can use as a tool to grow their businesses. ENM creates both online and offline content and presents shows using technologies like augmented, mixed and extended reality. Its inaugural show, Atomy Dream Hub Festival, took place in 2019 and entertained distributors and residents of Gongju where the company is based. “We expect Atomy ENM to play a key role in attracting the next generation with fun content through the latest technology and media,” Park says. DSN

THE FUTURE Despite the pandemic, Atomy opened the Chinese market this July and is scheduled to launch three new markets before the end of 2020: India, Colombia and Turkey; and in the next five years, it plans to begin operations in Europe (UK, Germany, France) and Africa (South Africa, Ethiopia). By 2030, Atomy will be available in more than 30 countries worldwide.

_______________________ 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 8 3

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S M A R T

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Can You Afford Not Going International?

B Y

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NTERNATIONAL GROWTH is becoming the key driver of growth for many direct selling companies that have stalled or gone stagnant

in the domestic market—international business is increasingly becoming more crucial for survival and growth. Here are the three How’s and the five questions

of How to grow internationally.

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HO W SHOUL D I G O IN T ER N AT ION A L? 1. Go where your distributors lead you.

According to The World Federation of Direct Selling Associations, 79 percent of global revenue is generated in the top 10 countries (in order): China, United States, Korea, Germany, Japan, Brazil, Mexico, France, Malaysia, Taiwan. Don’t make the mistake of just picking a market because it is big. International success does NOT work like the movie Field of Dreams “If you build it, they will come.”

To be successful, you have to have the network—the players on the field must come first.

2. Low initial investment.

Things have drastically changed in the last ten years—it is so much easier to go international! Websites can be quickly tailored to local language, local payment types, local currency and to calculate your international duties and taxes. Every market has personal consumption rules that allow shipments for personal use. Unless you are going to have distributors set up in country stores or hold large inventories, just encourage your distributors to refer their customers to their personal websites. When customers are purchasing from a U.S. entity and the U.S. company 8 6 D I R E C T S E L L I N G N E W S |

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complies with the personal import rules, there is no need to register products or set up an entity in the many markets— saving substantial time and money. Companies should consider waiting to go “On the Ground” in the country until they hit a million dollars in sales a month.

3. Do a product regulatory review for the international market(s).

Countries have unique requirements on certain ingredients, potential permits for certain products, and personal import limits. Examples of personal import limits can be 60- or 90-day supply of a given product, a dollar amount value limit on daily shipments and even a dollar amount per month or year.

A good strategic shipping partner or licensed broker in a specific shipping market can quickly help you review your products per market and advise you.

“

Don’t make the mistake of just picking a market because it is big.

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W

W H AT QUE S T IONS SHOUL D BE A SK ED ?

1. Should we ship DDP (Delivery Duties Paid) or DDU (Delivery Duties Unpaid)?

It may seem to be a simple question, but there are a number of factors. Your product may only clear customs into some markets if it is DDU. In some countries, consumers are very used to paying duties when the product arrives.

Still, in others, they are not at all. In many international markets when products are shipped DDU, it is hit and miss on which packages get stopped or not for paying duties and taxes—sometimes 80+ percent go into the market without customers having to pay. Either way, you will want to inform the customer of the duties and taxes—whether included in the check-out price or give them the amount they should anticipate paying upon arrival.

2. How do I pay my distributors in a country?

There are a number of ways to pay distributors in international markets. You will want to find a good partner that understands the direct selling industry that can transfer money directly to your distributor’s bank account or to a personal payment card in the market.

3. How do I accept payments?

You will want to find a credit card processor that will enable you to authorize in local currency. Generally, you will need an international entity to authorize and settle in an international market, but most processors can allow you to authorize in the local currency and then settle back into USD. Consider authorizing in local currency but settling back to USD to start—but you need to make sure you understand not only the interchange fees but the foreign exchange and cross-board fees that will apply to your transactions. You will also want to find a partner that can offer local payment types—credit cards are not very popular or common in some international markets.

A good payment processor will be able to tell you what international payment types make sense in each market and have the fraud tools to help you mitigate risk. There are even some solutions now for international distributors to directly take in-person and social media payments from customers leveraging your corporate payment account rates and payment solutions.

4. Should I use an express or economy shipping solution?

This is also a question that may not be as simple as it sounds. Some of your products many not clear customs through an express shipping solution but may clear through

“

International is the key to growth and survival in this new economy—it is easier than it has ever been, but you need to make sure you ask the right questions. an economy solution. There are solutions that range from 1-2 days delivery to international markets to sometimes a month or more. Above 8-10 days seems too long, and there are a number of economy solutions that can hit that window.

Generally, an economy shipping solution is less expensive, but not always. Each country and market is different. You will want to make sure you leverage the experience and expertise of a partner that knows what they are doing, and that is experienced with your type of products.

5. How do I minimize my duties and taxes?

Many countries and markets have a tax de minimis.

Meaning that if you can keep your shipment below a certain dollar amount, you will pay no duties or taxes—it can be substantial savings to send smaller shipments or to split up your shipments. You will also want an experienced partner to help you with your declared values and harmonization codes (some products may fit into different classifications) as to minimize your tax burden. An experienced partner can also help you with free trade agreements or tax clawbacks.

The bottom line is that international is the key to growth and survival in this new economy—it is easier than it has ever been, but you need to make sure you ask the right questions and have the right expertise to help you. DSN

MICHAEL MCCLELLAN LEADS GLOBAL ACCESS’ BUSINESS DEVELOPMENT EFFORTS IN THE DIRECT SALES INDUSTRY PROVIDING CUSTOMIZED SOLUTIONS FOR CLIENTS THAT SIMPLIFY THE COMPLEXITIES CROSS-BORDER COMMERCE AND ARE EASILY INTEGRATED INTO DIRECT SELLERS’ UNIQUE SELLING PROCESSES AND OPERATIONS.

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TEACHING TOMORROW’S BUSINESS LEADERS DSEF Fellows Make a Difference for Direct Selling More than 190 DSEF Fellows are changing the way direct selling is taught in universities across the US by using the Foundation’s teaching content, research

“The DSEF pedagogical support materials address real-world, timely marketing practices.

I especially like the CUTCO/Vector ‘The Cutting Edge of Quality’ video case. It not only highlights a successful approach to disintermediation and direct selling, it reinforces the importance of sales as the sole driver of creating revenues in any firm.

DR. LOU PELTON Associate Professor of Marketing University of North Texas

“As a DSEF Fellow, I was able to develop a teaching case that connected my research interest in effectuation and social entrepreneurship with the founders of Trades of Hope. As a bonus, many students were introduced to the direct selling distribution channel as an avenue for social entrepreneurship.

DR. CHRISTINE MOLLENKOPF-PIGSLEY Assistant Professor & Program Director Applied Organizational Studies Minnesota State University Mankato

and case studies. Here’s what they have to say about how DSEF benefits students and direct selling.

“My students have pointedly benefited from DSEF case materials. The Big Data video is highly insightful and garners substantial discussion. The Cocoa Exchange case, particularly the related video, is wonderful for discussing corporate social responsibility, women’s empowerment and direct selling.

DR. WILLIAM F. CRITTENDEN Professor, International Business and Strategy Northeastern University

1667 K Street, NW, Suite 1100, Washington, D.C. 202-452-8866 • info@dsef.org • www.dsef.org

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O N E

V O I C E

/

D S A

M E S S A G E

Marking Yet Another Sign of Our Times

I

have always believed that the key to direct sellers’ reputation in the public consciousness was the accuracy and reliability of the earnings claims made by our companies and their salespeople. DSA members have long recognized the importance of providing prospective salespeople with the most accurate information about their opportunities.

Recently—as a result of the growth and expansion of our industry, as well as government legal actions that have focused in significant measure on allegedly inappropriate income claims—many direct selling executives have devoted even more attention to ensuring that company and salespeople claims are truly representative of what people can and do earn.

Today, direct selling offers many Americans a source of modest additional income that could help them weather the storm of economic uncertainty caused by the challenges of the pandemic. So accurate information about just how a direct selling opportunity might help is more important than ever.

DSA and the BBB National Programs’ Direct Selling Self-Regulatory Council (DSSRC) recognized that concrete guidance on earnings claims was an important resource for direct selling companies and began seeking input from the direct selling community on just such a document last year.

Now, the DSSRC has issued its Guidance on Earnings Claims for Direct Selling (https:// www.dsa.org/docs/default-source/code-ofethics/2020-guidelines-for-earnings-claims. pdf?sfvrsn=80d0dda5_2). The new guidance is based on the DSA Code of Ethics, statutes and regulations, recent regulatory agency rulings, and case decisions by the DSSRC and its sister organizations. Designed to complement the DSA Code of Ethics and its explanatory

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

provisions, this new guidance offers a clear description, with examples, of accurate (as well as potentially misleading) earnings claims.

During the upcoming months, DSA educational programs—our webinars as well as the virtual DSA Legal & Regulatory Seminar 2020 @Home scheduled for October 13 – 15, 2020—will delve deeply into these new guidelines.

DSA urges direct selling executives from legal, government affairs, and compliance teams, as well as your marketing, communications, and salesforce development executives—to take advantage of these upcoming opportunities.

We have invited representatives of relevant regulatory authorities to participate in these discussions, and the guidelines have been shared with those government agencies.

In the coming months and years as we recover from this pandemic, direct selling can and will be an essential part of that recovery for individuals, families, and communities.

It will be critical for us to do so by demonstrating our continued commitment to the highest levels of business ethics. DSA is dedicated to providing our members with the tools to do that.

I am confident that this new DSA/DSSRC resource will add to direct sellers’ knowledge on appropriate earnings representations and allow us to make our opportunities available to the many people who can benefit from direct selling with full and accurate information about its potential.

I look forward to DSA’s continued collaboration with the DSSRC and BBBNP as we serve our communities with flexibility, ingenuity, and integrity. DSN

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INTERNATIONAL PAYOUT SYSTEMS INC.

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

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

2201 Long Prairie Road, Ste. 107-316 Flower Mound, TX 75022 407-891-9265 https://strategicchoicepartners.com/ SCP offers the most holistic consulting services specific to direct selling companies today. We’ve worked with more than 70 companies over the last three years alone, and served more than 250 years collectively in the industry.

COMPLETE MERCHANT SOLUTIONS

727 North 1550 East 3rd Floor, Orem, UT 84097 877-267-4324 www.cmsonline.com Complete Merchant Solutions (CMS) is a full-service US merchant account provider representing multiple banks. CMS safely and securely supports many types of payment processing for direct selling companies.

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

STRATEGIC CHOICE PARTNERS

D E S T I N AT I O N S / E V E N T V E N U E S

AccountingSuite tracks orders, inventory, and projects in the cloud. Our affordable Direct Seller Edition is perfect for individual sellers or companies may buy in bulk at a discount to include in a seller package to create another revenue stream.

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

ACCOUNTINGSUITE 600 California Street, 12th Floor San Francisco, CA 94108 888-328-8275 www.accountingsuite.com

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

C O M M I S S I O N P AY M E N T S E R V I C E S

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

Vendor Directory PLANET 600 Old Country Road Ste. 207 Garden City, NY 11530 561-859-0903 www.planetpayment.com A global leader in cross border and international payments with expertise serving the Direct Sales Industry. Planet supports 100+ payment methods via a single integration with the industry’s best payment acceptance solution for Greater China.

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

PAYQUICKER

METRICS GLOBAL, INC

EXPERIENCE COLUMBUS

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

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

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

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

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

A 20,000-seat arena and 100+ unique restaurants surrounding our convention center makes Columbus feel custommade for direct selling conventions. With arts, live music and more, there’s always something to do in the capital of under-theradar cool.

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

AMWARE FULFILLMENT

STALCO INC.

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

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

Handle fulfillment for 5 of the DSA top 100 companies. DSA member with 15 fulfillment centers, nationwide, for 1-2 day delivery to 98% of the U.S. Offering discount parcel solutions, kitting, same-day shipping, and a full menu of value-added services.

CANADA CARTAGE LOGISTICS SOLUTIONS

1615 Clark Blvd.

Brampton, Ontario L6T 4W1 905-564-2115 x2 www.canadacartage.com/logistics Single Source Solutions, Order to Delivery B2C Solutions, On-Time Order Fulfillment, Real-Time Inventory Visibility, NHP Site Compliant, SOP/GMP Compliant, and locations across Canada.

Stalco is your Canadian Distribution partner for all your requirements, including: regulatory approvals and management, importation (tracking and customs clearance), fulfillment (kitting, pick and pack, shipping), same day order processing, 2-4 day tracked delivery, and returns management.

E-COMMERCE FULFILLMENT

Since 2001, a2b Fulfillment has been helping companies work smarter by outsourcing business support services, including order fulfillment, customer care, and valueadded solutions. Its same-day fulfillment philosophy ensures that customers aren’t waiting, and its one-call customer service resolution standard keeps them coming back.

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

E VENT PRODUCTION

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

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

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

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

VERST E COMMERCE FULFILLMENT

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

Verst offers robotic picking, 99% order accuracy, 6.5+M sf scalable warehousing space, air/rail-served, 1-2 days to over 85% of the U.S. Services include pick-pack, labeling, kitting, and custom packaging.

Our Business Is… An Extension of Your Business

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

PMS 7686

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

VISIBLE SCM

KATAPULT EVENTS

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

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

Choose Visible for efficient fulfillment processes and market-leading customer experience. Benefit from multi-carrier solutions, high-volume shipping rates, custom packaging, fulfillment, and a real-time inventory management system— with a 99.84% order accuracy rate.

Fresh. Exciting. Bold. Your field deserves the best and we help you deliver. Out-of-the-box creative production with experienced show management. We execute on budget and make you look AMAZING!

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

HANNA SHEA

FOSSIL GROUP

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

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

Since 2007, Hanna Shea Executive Search has been the go-to search firm in support of the direct selling industry. Hanna Shea finds top talent for companies in need of building or improving an executive leadership team for organizational success.

Fossil Group is a global watch company specializing in the innovation and design of watches, wearables, jewelry, and leather goods. Our owned brands include Fossil, Michele, Misfit, and Skagen, and licensed brands, Armani Exchange, Diesel, Emporio Armani, kate spade new york, Marc Jacobs, Michael Kors, Misfit and Tory Burch.

ATLANTIS PARADISE ISLAND

ROYAL CARIBBEAN INTERNATIONAL

1000 S. Pine Island Road Plantation, FL 33324 800-722-2449 www.AtlantisBahamas.com/meetings Create lasting memories for your top producers. Reward & WOW them with a resort experience nestled in the world’s largest open air aquarium.

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1080 Caribbean Way Miami, FL 33132 Royal Caribbean International’s Corporate Sales Team 800-529-6916 www.royalcaribbeanincentives.com ICONIC SHIPS. EPIC ADVENTURES. ULTIMATE EVENTS. Royal Caribbean® transforms events into the ultimate productivity paradise. Impress your attendees with epic venues, vibrant restaurants, onboard thrills and beautiful destinations.

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

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

MARK E TING/BR ANDING

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

INCENTIVES/RECOGNITION

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

MOBILE APPS & COMMERCE

INCENTIVES/RECOGNITION

E XECUTIVE RECRUITMENT

E VENT PRODUCTION

Vendor Directory PROGRESSIVE LABORATORIES

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

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

SMART OFFICE SOLUTIONS, INC.

217 N. Westmonte Drive, Ste. 1007 Altamonte Springs, FL 32714 800-891-8601 www.SmartOfficeSolutions.com Your mobile strategy should be as smart as the phone in your pocket. Make a powerful statement about the value of social networks and personal connections with the SmartMobile app. Transform every share, text, call, and email into a positive sales and recruiting result.

AUGUST 2020

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Convert your social fans into paying customers. Our global SaaS platform includes the tools your sales force needs to succeed in today’s social selling environment. Scalable to fit any sized organization from startups to large global enterprises.

Scalable software for your company and your sales force that’s delightful and easy to use.

SUCCESS PARTNERS

DIRECTECH LABS

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

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

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

S O F T WA R E / T E C H N O L O G Y S O L U T I O N S

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

The AI-powered messaging and analytics platform. Be a better opportunity in the gig economy. Actionable dashboards and automated opportunities that get your field and customers engaged into measurable action anywhere in the world.

S O F T WA R E / T E C H N O L O G Y S O L U T I O N S

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

S O F T WA R E / T E C H N O L O G Y S O L U T I O N S

MOBILE APPS & COMMERCE

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

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

INTERNATIONAL DIRECT SELLING TECHNOLOGY CORP.

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

Global Operations Management Software.

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

BYDESIGN TECHNOLOGIES

EXIGO

JENKON

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

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

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

Award winning SaaS solutions including Geneology Management & Commissions, Inventory, Replicated Websites, Premier Rep Tools, Branded Mobile App, Virtual Parties, E-vites, Hostess Rewards, Bookings, Social Sharing, Promotions, & Shopping.

The global leader in cloud-based Platformas-a-Service (PaaS) for direct selling companies. An open framework for billiondollar giants to startup companies. Exigo supports MLM, Party Plan and Affiliate models, operating in single global markets.

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

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MW2 DIRECT 2033 Gateway Place, 5th Floor San Jose, CA 95110 408-573-6310 www.mw2consulting.com/direct Combine the Magento Platform with powerful social and direct selling features available in the MW2 Direct platform.

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

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 implifies payment processing for •S corporations

S O F T WA R E / T E C H N O L O G Y S O L U T I O N S

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

TA X S E R V I C E S

S O F T WA R E / T E C H N O L O G Y S O L U T I O N S

Vendor Directory

THATCHER TECHNOLOGY GROUP, LLC

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

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

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TOOLS, RECRUITING & TR AINING

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

XIRECT SOFTWARE SOLUTIONS

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

SOVOS 200 Ballardvale Street, 4th Floor Wilmington, MA 01887 1-800-334-1099 www.sovos.com Save time and money with a smarter tax information reporting solution. Sovos solutions keep up with regulatory changes, perform TIN verifications, and automate your organization’s entire 1099 and 1042-S federal and state reporting process.

SUCCESS PARTNERS 5800 Democracy Drive, Suite 100 Plano, TX 75024 800-752-2030 www.successpartners.com SERVICES THAT SPARK GROWTH. From sampling and physical starter kits to digital marketing, we’ve got you covered.

We serve by working alongside you to design, develop, and deliver solutions that benefit you, your distributors, and your customers.

GET CONNECTED

“

To those who need your services.

I have benefited from the global perspective of direct selling leaders showcased in Direct Selling News since their first issue in 2004. It is exciting to see pioneering companies like Paparazzi Accessories featured to share the details of their ongoing journey of success. I rely on unique information such as the Global 100 to keep our team up to date on the industry rankings.

For anyone in the direct selling industry, DSN is a publication that will keep you current on the issues that impact your business.

—DARYL WURZBACHER, CEO, ByDesign Technologie s

AUGUST 2020

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F in b

R g

Legal& Regulatory Seminar @HOME OCT. 13–15

Sponsored by

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Register at least one executive from your company to gain the knowledge you need to be up to speed.

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REGISTRATION NOW OPEN Don’t miss out on these upcoming virtual events!

Visit direstsellingdayoncapitolhill.org for more information

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CONVERT

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

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

•

In-app sample ordering and fulfillment

•

Order tracking and drip campaigns

•

Physical and digital distribution systems

•

International distribution in place

•

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

•

20 years 3PL experience serving the direct selling channel

•

On-time delivery and competitive pricing

“The NOW App and the SUCCESS Partners team have really made everything easy for us.”

–John Licari, COO, Total Life Changes

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

app@successpartners.com / 1.800.752.2030 / successpartners.com

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VOLUME 16 ISSUE 8

DIRECT SELLING NEWS

DirectSellingNews.com