Direct Selling News - May - 2020

VOLUME 16 / ISSUE 05

M AY 2 0 2 0

FOUR DIREC T SELLING COMPANIES LE ADING THE INNOVATION CHARGE

F E AT URE / 10 TIPS FOR LEADING A DIRECT SELLING COMPANY TODAY SCENTSY / SCENTSY ASCENDS AGAIN F E AT URE / DUOLAB: A FOOT IN BOTH WORLDS F E AT URE / WHAT’S THE JOB YOUR CUSTOMERS HIRE YOUR PRODUCTS TO DO?

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

INCREASE. CONSULTANT SUCCESS

SHORTEN .

TIME TO REVENUE

STRENGTHEN .

CUSTOMER RELATIONSHIPS

INCREASE IN 84% PROSPECTS

FASTER RANK MONTHLY SALES 2X GREATER 25% ADVANCEMENT

USING AI AND AUTOMATION, PENNY STRENGTHENS CUSTOMER RELATIONSHIPS

BY CREATING SCALABLE AND REPEATABLE SALES PROCESSES.

LEARN MORE AT PENNYAPP.COM/RESULTS

& THANK YOU 2020 SPONSORS PLATINUM SPONSORS

GOLD SPONSORS

SILVER SPONSORS

C O N T E N T S M AY

2 0 2 0

FE AT URES

10 Tips for Leading a Direct Selling Company B Y B R E T T B L AK E What’s the Job Your Customers Hire Your Products to Do? B Y B E TH D O U G L AS S S I LC O X Duolab: A Foot in Both Worlds B Y SAR AH PAU LK We Are People Who Need Talented People

BY H E ATH ER MARTI N

30 40 68 76

68

SPOTLIGHTS

Scentsy Ascends Again

B Y B R IT TAN Y G LEN N

60

ONE VOICE

84 How to Communicate and W O R K I N G S M A R T/

Keep Calm During COVID-19 B Y C R AY TO N W EB B

4 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

40

IN EVERY ISSUE 7 FROM THE EDITOR // 8-9 AD INDEX // 11 INDUSTRY NEWS // 24 FORWARD THINKING // 89 DSA MESSAGE // 90 VENDOR DIRECTORY //

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

COVER STORY

48

F OUR DIREC T SELLING COMPA NIES LE A DING THE INNOVATION CH A RGE

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 PRODUCTION MANAGER

Virginia Le COPY EDITOR

Peter Tepp BUSINESS DE VELOPMENT MANAGER

Melinda Bogoslavsky mbogoslavsky@directsellingnews.com CONTRIBUTORS

J.M. Emmert Brittany Glenn David Lee Heather Martin

Sarah Paulk Courtney Roush Beth Douglass Silcox

New Perspectives on Innovation

BY COURTNEY ROUSH

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

POSTMASTERS please send change of address to 200 Swisher Road, Lake Dallas, TX 75065.

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

Overseas subscriptions are $100. All subscriptions must be paid in U.S. dollars. ©2020 Direct Selling News All rights reserved. Material may not be reproduced in whole or in part in any form without written permission.

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

Direct Selling News 5800 Democracy Drive, Plano, Texas 75024 / Phone: 800-279-5249 www.directsellingnews.com

TO ADVERTISE:

advertising@directsellingnews.com T O S U B M I T E D I T O R I A L C O M M E N T:

editor@directsellingnews.com TO SUBMIT PRESS RELE ASES:

pr@directsellingnews.com TO SUBSCRIBE:

Subscribe@directsellingnews.com DIREC T SELLING NE WS

USPS 23713 • ISSN 15546470

& Thank you to all our 2020 Supplier Sponsors

FROM THE PUBLISHER We Will All Get Through This Together

F

IRST OFF, I wanted to thank all those who tuned in to our special broadcast of the 11th annual DSN Global 100 Celebration last month.

Although we had to cancel the live event because of the coronavirus pandemic, we felt it necessary and relevant to continue to celebrate the very best of direct selling. A complete wrap-up will be in next month’s issue regarding the companies who made up the list as well as many data points that will be useful going forward.

We are at a unique moment in time, one that will undoubtedly change the way we live and the way we do business in the future. We are mindful of the challenges you face in your daily lives.

Please know that our thoughts and prayers are with you, your employees, your distributors and your families.

This month’s cover story shares some examples of how four direct selling companies are innovating how they do business and propelling themselves forward in a market in which we’re sharing space with several formidable gig economy and e-commerce giants.

There is no doubt this crisis will leave a lasting mark on every industry. Our adaptability and innovation skills are being tested. But we can use this opportunity to examine our business practices, devise creative solutions and come back stronger.

Here are a few highlights of some other great content in this issue: • What’s the Job Your Customers Hire Your Products to Do? The customer is the wrong unit of analysis when you’re trying to innovate.

• Scentsy Ascends Again: Through 15 years of gains and a few dips, Scentsy stays the course with a record year of growth.

• A Foot in Both Worlds: Major luxury brand L’OCCITANE’s move to select direct selling as the platform to launch their latest innovation could be a game-changer for the retail market. Is a hybrid of direct selling and retail the future?

• We Are People Who Need Talented People: Our industry needs to be constantly innovating and reflecting on how it attracts, manages and inspires its people.

During this time of uncertainty, we salute you for all that you doing to share a free enterprise opportunity with all opportunity-seeking people throughout the world. The products and services you make available has one common denominator—you change lives because of what you make available.

Stay calm and stay safe. We will all get through this together.

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 7

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

D

“

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.

It’s simple: DSN produces the content that my audience appreciates. Knowing that Strategic Choice Partners can be associated with that kind of authority in a setting that’s tailor-made for the people we’re built to serve makes advertising a no-brainer.

For your convenience, we have compiled a list of our display advertisers. When contacting these companies or those in our

—BRETT DUNCAN, Co-Founder and

Vendor Directory (starting on page 90), please

Managing Principal

let all of our valued advertisers know that you

Partners

Strategic Choice

saw them in Direct Selling News.

Strategic Choice Partners 504-252-4500 / STRATEG I C CH O I CEPARTNERS . C O M PAG E 88

8 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

Exigo

214-3 67-9 9 3 3 / E XI G O . C O M

Inside Front Cover

VirBela

VI R B EL A . C O M PA G E 39

a2b Fulfillment 8 6 6 - 84 3 -3 8 27 / A2 B F. C O M PA G E 67

Directech Labs Penny AI

7 78 -9 8 9 -54 0 5 / P EN NYAP P. C O M PA G E 1

31 0 -73 0 -1 24 6 / D I R EC TEC H L AB S . C O M PA G E 43

Hanna Shea

84 4-34 4-7 17 7 / HAN NAS H E A . C O M PA G E 75

IDSTC SUCCESS Partners

8 0 0 - 8 0 3 -7 14 4 / I D STC . C O M PA G E 47

8 0 0 -75 2-2 0 3 0 / S U C C ES S PARTN ER S . C O M PA G ES 10, 19, 95, 96

Squire

8 01-225 - 6 9 0 0 / S Q U I R E . C O M/N E T S U ITE PA G E 81

E A Dion Direct Scale

8 01-701-3 2 8 5 / D I R EC T S CALE . C O M PA G ES 21

8 0 0 - 4 4 5 -1 0 07 / E AD I O N . C O M PA G E 55

DSEF

2 0 2- 4 5 2- 8 8 6 6 / D S EF. O R G PA G E 83

Socialsales.io Amware Fulfillment 678 -37 7- 8 5 8 5 / AM WAR ELO G I STI C S . C O M PA G E 23

214- 6 5 9 -1 54 9 / S O C IALSALES . I O PA G E 57

Metrics Global

8 8 8 - 8 91-54 4 5 / M E TR I C S G LO B AL . C O M

Inside Back Cover

Direct Selling Association Progressive Laboratories 8 0 0 -5 27-9 51 2 X22 0 / P R O G R ES S IVEL AB S . C O M PA G E 29

2 0 2- 4 5 2- 8 8 6 6 / D SA . O R G PA G E 59

Infotrax

8 01- 4 31- 4 9 0 0 / I N FOTR A X SYS . C O M

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

The SUCCESS Partners’ NOW app drives results for direct selling companies making it incredibly simple to connect, communicate and convert.

“Not only is this a sampling tool, it’s a communication tool.”

—JOHN LICARI, COO, Total Life Changes

Total Life Changes Case Study •

Launched app in Q1 2019 to counteract softening sales; immediate results with new growth starting in Q2 2019.

•

Uses the app as its primary communications tool to deploy steady stream of compliant, brand-centric videos, social media campaigns and more.

•

App acts as a one-stop hub for everything about company: comp plan, real-time training, customer service, etc.

•

2020: Three record months in a row!

REQUEST A DEMO! CONTAC T US TODAY app@successpartners.com / 1.800.752.2030 / successpartners.com

IN THIS ISSUE

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

12

Avon Launches #SpeakOut Campaign

M A IN S T OR Y by Br en t K ugler

HEIGHTENED SCRU TIN Y OF PRODUC T CL A IMS A MID THE COV ID-19

A 13

Beautycounter named #1 Beauty Company

15

DSSRC, DSA Urge Caution Regarding Health-Related Product Claims

s the COVID-19 pandemic continues to wreak havoc in the medical and business community, direct sales companies face the added pressure of ensuring that their independent sales representatives are not seeking to boost sales by making unauthorized health claims related to the coronavirus. Statements that imply or expressly claim that a product can treat or alleviate COVID-19 symptoms will almost certainly invite immediate regulatory scrutiny.

On April 7, the Direct Selling Association

(DSA) and Direct Selling Self-Regulatory Council (DSSRC) issued a joint press release cautioning direct selling companies and their independent salesforces from making claims suggesting that products: • Treat or alleviate the symptoms of COVID-19; • Cure, treat or alleviate symptoms of COVID-19; • Boost or improve immune function that can prevent COVID-19; and/or • Eliminate or remove viruses.

COVID-19 claims. On April 10, the FTC issued an alert warning consumers about COVID-19 scams that “take advantage of anxieties related to the Coronavirus.”

The direct selling industry experienced a rough end to 2019. FTC regulatory enforcement actions were filed against two prominent companies and there were alarming public statements

by FTC’s Andrew Smith suggesting that the FTC is applying a new definition of …

The press release stated that DSSRC has already contacted several direct selling companies regarding

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 !

17

Tracking the Consumer Attitudes of the Effects of Coronavirus

Statements that imply or expressly claim that a product can treat or alleviate COVID-19 symptoms will almost certainly invite immediate regulatory scrutiny.

—BRENT KUGLER, Partner Scheef & Stone, LLP 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

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

directsellingnews.com /category/news/

News in Brief

Avon Launches #SpeakOut Campaign

A

Amway Gives Hand Sanitizer to Health Care Providers

A

mway responded to an urgent need from its local Spectrum Health System for hand sanitizer to protect health care providers serving the growing population of patients affected by the COVID-19 pandemic.

Fittingly named Project Light Speed, in just 24 hours, the company pulled together a cross-functional team of more than 40 local employees to develop an immediate action plan to repurpose onsite raw materials to produce approximately 14,000 units of Amway hand sanitizer, set to ship this week.

Additionally, Amway placed an order for materials to produce two more batches (28,000 units), which will roll off the line in the coming weeks.

“Our team designed and built new filling equipment, printed labels, produced bottles and expedited raw materials from all over to make this happen so quickly, and they’ve done it with tremendous enthusiasm, which doesn’t surprise me one bit,” said George Calvert, Amway chief supply chain officer. “Helping others has always been part of Amway’s culture and we need to support each other and our communities now more than ever.”

“I am so impressed with the fast, hard work of the Amway team to make this project a success. It is inspiring to see that across our enterprise, employees are energized and unified to make good things happen within their communities,” said Amway Chief Executive Officer Milind Pant. “It is inspiring to see that across our company, employees are unified to support our communities during this unprecedented situation.”

1 2 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

von Products Inc. has launched a campaign calling on men and women worldwide to #SpeakOut and put an end to pejorative words and phrases used to silence women.

Avon’s campaign, which will run throughout 2020, calls on people to share their stories and the words and language they want to reclaim by posting a proud, lippy selfie on their social media channels, using the hashtag #SpeakOut. In addition, Avon will collate these stories, creating a global gallery celebrating women’s stories from across the world.

“Avon has been a champion for women for over 130 years,” says Angela Cretu, CEO at Avon. “At Avon, every day is women’s day, but on International Women’s Day we take the opportunity to invite men and women all over the world to join us in speaking out about the barriers which might stop women from having an equal share of voice. International Women’s Day is also a moment to celebrate women, and we’ll be sharing stories of inspiring women from all walks of life from across the world.”

Initiated over Avon’s social media channels across the world, the campaign will be a platform for women of all backgrounds to share their stories, celebrate and be inspired by others.

The Speak Out campaign will culminate with the first Avon #SpeakOut Awards in November.

Color Street Raises $50,000 for Children’s Heart Foundation

C

Beautycounter Named #1 Beauty Company

by Fast Company

B

eautycounter has been named to Fast Company’s prestigious annual list of the world’s Most Innovative Companies for 2020 as #1 in the beauty category. This marks the third year Beautycounter has received the honor, which honors those making the most profound impact on both industry and culture.

“We are proud to be named again as one of Fast Company‘s Most Innovative Companies,” said Beautycounter Founder and CEO Gregg Renfrew. “This not only acknowledges our leadership in the clean beauty movement, but also further solidifies our leadership in the beauty industry as a whole.”

“At a time of increasing global volatility, this year’s list showcases the resilience and optimism of businesses across the world. These companies are applying creativity to solve challenges within their industries and far beyond,” said Fast Company senior editor Amy Farley, who oversaw the issue with deputy editor David Lidsky.

olor Street raised $50,000 to help The Children’s Heart Foundation, a national nonprofit advancing the diagnosis, treatment and prevention of congenital heart defects (CHDs).

“Thanks to the dedication and enthusiasm of our Stylists, Customers and Home Office Team, we are happy to be able to contribute to the important work of The Children’s Heart Foundation, funding vital research and offering hope to families and their heart warriors,” said Tricia McNamara, executive director of Color Street Foundation.

Color Street’s fundraiser will support The Children’s Heart Foundation’s efforts to fund groundbreaking research that improves and extends the lives of children born with CHDs. Congenital heart defects are the nation’s most common birth defect, impacting 40,000 babies every year. More than 25 percent of those newborns will need at least one invasive surgery in their first year of life to survive, and many require more throughout their lifespan.

“The Children’s Heart Foundation is grateful to Color Street for this opportunity to raise much-needed funds and awareness for CHD research,” said Barbara Newhouse, president & CEO of The Children’s Heart Foundation.

Pampered Chef Expands Support of Feeding America Amid Pandemic

I

n the wake of COVID-19, Pampered Chef is expanding its support of Feeding America, its partner since 1991, to support those in need at this critical time.

With school closures, job disruptions and health risks, millions of Americans are turning to food banks for muchneeded help. Pampered Chef is increasing its contributions to Feeding America. The brand is offering three distinct ways consumers can support Feeding America’s efforts: • Virtual Fundraiser Parties: Host a virtual fundraiser party between now and April 30 and Pampered Chef will

contribute up to 30 percent of the total sales to Feeding America to help feed people in need across the country.

• Round-Up from the Heart Products: When consumers purchase one of Pampered Chef’s Round Up from the Heart products between now and Aug. 31, Pampered Chef helps provide 10 meals to Feeding America.

• Round-Up from the Heart Orders: Whenever shoppers round up their Pampered Chef order, their donation goes directly to their local food bank through Feeding America. w w w . d i r e c t s e l l i n g n e w s . c o m 1 3

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

directsellingnews.com /category/news/

SeneGence Produces Hand Sanitizer

I

n response to the COVID-19 pandemic, SeneGence is using its supply chain to manufacture and bottle a 62 percent alcohol hand sanitizer made in accordance with FDA guidelines.

The company already has produced over 100,000 units and is planning to produce close to one-half million units of hand sanitizer in the next weeks.

SeneGence has donated thousands of bottles of the newly developed hand sanitizer to the Ronald McDonald House and CHOC Children’s Hospital in Orange County, California, and to the community of Creek County in Oklahoma, home state of founder and CEO, Joni Rogers-Kante.

Additionally, to support their Independent Distributors in the United States, SeneGence is dropping a free bottle of SeneGence Hand Sanitizer in each order while supplies last.

“In this time of tremendous need, we took the opportunity to create a product to support our Distributors and give back to our communities,” said Rogers-Kante. “I am very hopeful of the human spirit. It’s times like these when we see the best in others through their helping hands, selflessness, and generosities—putting aside gains for profit for the betterment of their neighbor.”

NewAge Reports Revenue Growth of 386 percent in 2019

N

ewAge Beverages Corporation (Nasdaq: NBEV) announced financial results for the year ended December 31, 2019 with revenue growth of 386 percent.

According to the company, during the fourth quarter of 2019 net revenue increased 323 percent to $59.2 million compared to $14.0 million in the fourth quarter of 2018.

In 2019, net revenue was $253.7 million compared to $52.2 million in 2018, an increase of 386 percent.

“In 2019 we increased our scale five times, evolving from a $50 million company to one with net revenue above $250 million,” said Brent Willis, chief executive officer of NewAge commented. “Whilst doing so, we gained access to a range of new channels and opportunities across our infrastructure that now spans 60 countries worldwide. We also added global iconic brands like Nestea, Volvic, Illy, and Evian to our portfolio, strengthened our platform worldwide and made important investments in our leadership team.”

Bundesliga Club VfL Wolfsburg Partners with USANA

U

SANA is the new official multivitamin partner and supplier of the Bundesliga’s VfL Wolfsburg.

“At VfL Wolfsburg, we strive to develop professional connections in every area, and that includes the field of nutritional supplements we offer our players, coworkers and fans,” said VfL Managing Director Michael Meeske. “When it comes to health, numerous athletes trust USANA more than any other company. So, we’re excited to develop this partnership further in the coming years, and look forward

1 4 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

to support USANA with our global network.”

USANA will also become the Official Partner of the VfL Wolfsburg Academy to help the young players of the club develop joint and individual projects and initiatives.

“With all of the positive feedback from other professional athletes who trust USANA and its certified products, it was an easy decision for VfL Wolfsburg to trust and join the USANA team,” said Meeske.

DSSRC, DSA Urge Caution Regarding Health-Related Product Claims

Nu Skin Receives Communitas Award

T

he BBB National Programs’ Direct Selling SelfRegulatory Council (DSSRC) and the Direct Selling Association (DSA) urged all direct selling companies and their salesforces to ensure all claims made about health-related products are accurate.

The two organizations said that direct selling companies and their salesforce members must be especially mindful of expressly claiming or implying that their products: • Treat, alleviate, or cure the symptoms of COVID-19 • Prevent symptoms of COVID-19 • Boost or improve immune function to prevent COVID-19 • Eliminate all traces of COVID-19 “As integral members of their neighborhoods, direct sellers have a unique opportunity and responsibility to share accurate information about their products and opportunities. We can and will be an important part of the restoration of our communities and our country by providing needed products, services and information,” said Joe Mariano, president, DSA. “As we continue to protect consumers and elevate the ethical business standards for the direct selling channel, we are encouraging our members to be conduits of accurate, reliable information.”

While unprecedented research efforts are taking place on a global scale, according to the World Health Organization, there are no current cures or direct treatments for COVID-19.

DSA Offers Resources to Respond to COVID-19

T

he U.S. Direct Selling Association (DSA) has provided resources on its website to help companies respond to COVID-19, the coronavirus pandemic.

Following the lead of the U.S. Chamber’s close work with the White House, U.S. government agencies, and foreign government officials, DSA is seeking to connect members to the most important and up-to-date information to ensure we are all adequately prepared to protect direct sellers.

N

u Skin received a Communitas Award for outstanding Corporate Social Responsibility, Ethical & Environmental Responsibility, and Green Initiatives.

The Communitas Awards program is an international effort to recognize the spirit of communitas, or people helping people for the benefit of their community.

“This honor is particularly meaningful because it recognizes our desire and efforts to elevate our mission to be a force for good in the world,” said Ritch Wood, CEO. “Whether it is responsibly sourcing ingredients, reducing our carbon footprint or utilizing more environmentally friendly packaging, we are looking at the impact we have on the planet and want to ensure the footprint we leave in everything we do is a green one.”

Betterware: First Mexican Company Listed on NASDAQ

B

etterware de Mexico S.A. de C.V. has completed its merger with DD3 Acquisition Corp. and become the first Mexican company to be directly listed on the NASDAQ Stock Market.

Betterware’s ordinary shares commenced trading on the NASDAQ Stock Market, under the symbol, “BWMX.” “This is the beginning of a new expansion phase that will bring us closer to becoming the leading home solutions consumer company in the country and an important player in the Americas,” said Luis Campos, executive chairman of Betterware.

Betterware announced preliminary unaudited financial results for the full-year 2019. Betterware’s financial and operational performance for FY 2019 set new records for Revenue, EBITDA, EBITDA margin, Profit and Loss and distribution network outreach.

“The 2019 results exceeded our projections for the year, laying down the foundations of a high-growth and efficient operating platform, driven by its profitability, solid cash flow generation, financial discipline and low working capital requirements,” stated Andres Campos, Betterware’s CEO. DSN w w w . d i r e c t s e l l i n g n e w s . c o m 15

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

directsellingnews.com /category/news/

Insights

News Impacting Our Channel

Seven Keys to Successful Virtual Meetings

W

ith the world deep in the throes of a global pandemic, many leaders are allowing at least a portion of their teams to work from home.

“Virtual leadership is a skillset most leaders have not yet had the opportunity to study or to hone, and just ‘winging it’ could be disastrous,” said Peter Montoya, an expert on training solutions for teams.

According to Montoya, one of the most important components of a work-from-home team is the virtual meeting.

It can be a make-or-break aspect of your remote workforce, with everything from productivity to job satisfaction hanging in the balance. It also represents a significant investment in both time and money, so how can we better utilize it?

Here are seven keys to successful virtual meeting preparation.

1. Define the purpose of the meeting 2. Confirm the need for the meeting 3. Determine the topic(s) of the meeting 4. Create an outline for the meeting 5. Determine the length of the meeting 6. Prime the meeting 7. Select and learn to effectively leverage your technology “The bottom line is that you must take responsibility as a leader not only for the outcomes of your virtual meetings, but also for their successful planning and execution,” said Montoya. “Far too many would-be leaders fail at this fundamental skill.”

1 6 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

Get Ready for Complete Customization in Shopping

C

OVID-19 pandemic has drastically changed American spending and shopping habits. As brick-andmortar retailers close their doors, online retailers are seeing a huge uptick in sales.

What does this new way of shopping for everything mean for the future of retail and businesses? Will movie theaters and fitness centers bounce back? Will clothing stores be able to stay afloat? What about restaurants and car dealerships? Can they withstand prolonged social distancing?

According to a new report just released from FitSmallBusiness.com, there is a silver lining: customers will benefit in both short and long-term as businesses begin to offer new discounts, impressive perks and a more catered approach to shopping needs. The digital publication’s research and analysis showed that while customers will have to adjust in the wake of the pandemic, they will also benefit from a variety of deals and savings both now and in the future.

The report—The 5 Ways COVID-19 is Transforming the Shopping Experience—emphasizes these benefits: 1. Making car purchases easier 2. Getting into gear with at-home fitness 3. Amazing home entertainment offerings 4. Enjoy the variety of takeout 5. Online shopping deals “The pandemic is a nightmare for many retailers yet also presents a variety of options for consumers,” said Rebecca Michael, special projects editor, FitSmallBusiness. “As Americans change their shopping habits in the present day, our study shows that businesses of all kinds will evolve in stride to meet the demands of their customers.”

Tracking the Consumer Attitudes of the Effects of COVID-19

A

study conducted by SFW, a brand growth company based in Raleigh and Greensboro, N.C., demonstrates just how quickly consumer attitudes and sentiment can change when it comes to COVID-19.

“In just one week, the huge swings—both down and up—in the stock market, the implementation of international travel bans, the postponement or cancellation of major sporting events and leagues and the declaration of a national state of emergency all came together to significantly change consumers’ attitudes toward the disease and the economy,” said Ged King, chief executive officer for SFW. “We’re seeing positive changes in the acceptance of social distancing.

We are also seeing an increase in people that might delay a major purchase, but still expect to complete them in the next 12 months. The bright spot is e-commerce. Barring distribution challenges, it is an opportunity for brands to help consumers.”

The level of concern over COVID-19 has increased sharply as more people are affected by the virus.

With COVID-19 dominating the news, there has been a 25 percent increase in familiarity (from 64 percent to 80 percent) in the past week. The increased familiarity with the virus appears to have fueled concerns over the impact that it will have in the coming year.

• The percent of people saying that they have been impacted

by COVID-19 more than doubled, with 37 percent reporting that they have been impacted compared to 16 percent the previous week.

• Last week, 49 percent were concerned about the COVID-19 impacting their life in the coming year, a figure which rose to 63 percent in just one week.

• 43 percent believe their household income will be negatively impacted by COVID-19, up from 26 percent the previous week, an increase of 70 percent.

COVID-19 will disrupt consumers’ willingness to make

major purchases, which will have ramifications at retail.

The events that unfolded over the past week appear to have tempered consumers’ willingness to commit to major expenses, demonstrated by a substantial decrease in the number of consumers saying they will proceed as planned in making major home and auto purchases in the coming year.

• Among those planning to buy a new home this year, 41 percent say they will proceed as planned, which is down from 67 percent. This decrease is led by millennials, whose intent to proceed with a new home purchase as planned declined to 35 percent from 73 percent.

• Planned spending on major home improvement purchases decreased to 35 percent from 49 percent, with boomers declining to 22 percent from 54 percent.

• New home furnishings purchases decreased to 35 percent from 51 percent, with the steepest decline coming from Gen Xers, which decreased to 36 percent from 61 percent.

• Among those planning to buy a car this year, 36 percent will likely proceed as planned, which is down from 49 percent.

Boomers again led the decline, dropping to 23 percent from 55 percent a week ago.

COVID-19 will likely fuel online shopping.

As additional retailers announce store closures of two weeks or more, consumers are growing more concerned about their ability to get the basic household items that would carry them through a protracted quarantine. As a result, more consumers will turn to online shopping to meet their needs.

• 58 percent are concerned about the potential availability of basic household items (e.g., food, water, paper products, personal hygiene products) resulting from COVID-19, which is up from 41 percent from the previous week.

• 56 percent of consumers say they will shop online more because of COVID-19, up from 47 percent a week ago, an increase of 20 percent. DSN

w w w . d i r e c t s e l l i n g n e w s . c o m 1 7

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

Executive Announcements

TONY CHAPLIN, Elevacity, Chief Operations Officer Elevacity announced the addition of network-marketing veteran Tony Chaplin as the company’s new chief operations officer.

“Tony is a welcome addition to Elevacity with his vast experience in developing people, launching new products and managing expansion and growth within the networking marketing industry,” said Elevacity President Keith Halls. “He will be an integral part of our leadership team as we focus on growing the Elevacity brand to promote health, wealth and happiness among our customers and distributors.”

Chaplin has more than 25 years of experience in the direct selling industry.

He has served in the top tier of several prestigious network-marketing and party-planning companies, helping to increase sales, growth and retention in more than 20 European and North American markets.

1 8 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

GARY GALLANT, Isagenix, Chief Information Officer Isagenix International has announced that, based on his work as interim chief information officer, Gary Gallant has been named the company’s permanent CIO. In his new role, Gallant will establish and execute the global health and wellness company’s technology vision, ensuring Isagenix can provide a smooth shopping experience for customers and digital tools that help independent distributors run their businesses.

“Thanks to Gary’s vast knowledge of the IT industry, Isagenix has streamlined and improved the customer experience so we can best help customers reach—and sometimes surpass—their health and wellness goals,” said Isagenix Chief Executive Officer Travis Ogden. “Our executive leadership team is thrilled to have him on board as the company continues its digital evolution.”

KJERSTI COTÉ, HealthSync Global, Director of Product Development and Field Education HealthSync® Global announced the appointment of Kjersti Coté as the company’s new director of Product Development and Field Education.

Coté will oversee the formulation and manufacturing of products as well as the strategy and development of field education. She brings more than 18 years of experience in the network marketing industry fulfilling many roles within multiple departments.

“We are absolutely delighted to have Kjersti join our expanding HealthSync Global team. I’ve had the opportunity of working with Kjersti for five years and I know the tremendous talent, experience, and knowledge she has for the industry which will be instrumental in moving our HealthSync Global mission forward with incredible speed,” says Doug Jensen, HealthSync Global President.

Maximize your distributors’ chances to convert by implementing a simple, scalable and speedy way to sample, provide discount codes and share with the NOW app.

“The sooner you can implement sampling, the better… what are you waiting for?”

—KYLER PENTECOST, VP of Sales, It Works!

It Works! Case Study •

Launched sampling in January 2020.

•

The company experienced month-over-month growth in February and March 2020

•

In collaboration with SUCCESS Partners, launched their sampling program in six weeks!

REQUEST A DEMO! CONTAC T US TODAY app@successpartners.com / 1.800.752.2030 / successpartners.com

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

MAURO SCHNAIDMAN, Tupperware Brands, Board of Directors Tupperware Brands Corporation announced that Mauro Schnaidman has been elected to its Board of Directors. Schnaidman is a seasoned executive with more than 30 years in the consumer product, digital and direct selling sectors.

“Bringing Mauro on to the Tupperware Brands board adds a seasoned direct selling executive and strong leader with a proven reputation for delivering growth that achieves market share, revenue and profits,” said Susan M. Cameron, chairman of the Tupperware Brands Board of Directors. “At this pivotal time for the company, his experience and knowledge will be key in helping management restore the business not only to grow but to thrive as a modern direct seller.”

Schnaidman will serve on the company’s Compensation and Management Development Committee. Board member Chris O’Leary will continue on the board following his role of Interim CEO. “I am excited to be joining the Tupperware Brands board and work with my fellow directors, the new leadership and entire management team to define the strategic future of this brand,” said Schnaidman.

MIGUEL FERNANDEZ AND RICH GOUDIS, Tupperware, President & CEO and Executive Vice Chairman Tupperware Brands Corporation (NYSE: TUP) announced that its Board of Directors has appointed Miguel Fernandez as president and chief executive officer. The Board also has appointed Richard (“Rich”) Goudis as executive vice chairman.

“The Board is pleased to add the combined talent and experience of Miguel and Rich to Tupperware at such a pivotal time,” said Susan Cameron, non-executive chairman of the Board. “We are confident that these proven leaders bring skills essential to Tupperware’s business—a thorough understanding of the direct selling model, a belief in its relevance and growth potential, and proven track records of executing operational transformations and generating value. They have a ten-year history of working collaboratively together, and that gives us 2 0 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

great confidence that they can rapidly create a more efficient and profitable company, while leveraging the power of our brand and our global presence to ensure Tupperware is competitive, relevant and profitable well into the future.”

As CEO, Fernandez’s focus will be on stabilizing the core business operations with a mandate to return the business to growth. As executive vice chairman, Goudis will be responsible for leading the company’s future business strategy and go-to-market opportunities, and maximizing shareholder value.

Fernandez and Goudis have been appointed to serve as directors of the Company, expanding the Board to 12 members. Chris O’Leary, who has been serving as Interim CEO, will continue his role on the Board, and return as a member of the Audit, Finance and Corporate Responsibility Committee.

BASED ON AN ACTUAL EVENT

Communicate, enable and inspire your field leaders 10:00 AM CEO: Good news! Yesterday we had a million dollar day! Let’s do it again by rewarding our sellers with a FREE Shipping promotion that will run thru Fri. Let’s push it LIVE immediately!

Adam, please set it up in the Web Office and have the design team prepare a banner.

10:12 AM Adam: Wow! That’s great! We’ll get it done. The Web Office banner will be LIVE by noon today and run thru Friday until midnight.

••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

10:20 AM CEO: Good morning Samantha! We had a million $$ day yesterday! As a reward, NO SHIPPING COSTS thru Fri! Promotion starts today @noon!

Get those orders in!

10:27 AM Samantha: Awesome!!! I’ll blast out a message for everyone to log into their Web Office to see the new promotion. Let’s do this!!!

Can your platform do this for your sellers?

All in-house setup Create and build the ads you want promote — push live at anytime without our help!

With no extra costs Why pay a firm or vendor when you can do it all — it’s that easy!

••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

Request a Demo Today | directscale.com/dsn

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

JOHN AGWUNOBI, Herbalife, CEO Herbalife Nutrition announced that John Agwunobi has assumed the role of chief executive officer (CEO), succeeding Michael Johnson.

Having dedicated his life to improving people’s health, as a physician, in government service and as a corporate executive, Agwunobi is uniquely suited for this new role.

Agwunobi will set the strategy for Herbalife Nutrition, overseeing all aspects of the company’s growth initiatives in the 94 countries where the company operates, ensuring the company continues to be recognized worldwide as a leading nutrition company.

“I am excited to enter my new role, with a transition that has been

WAYNE NUGENT AND MICHAEL POATES, WorldVentures, CEO and Chief Operating Officer WorldVentures announced that Founder and Chief Visionary Officer Wayne Nugent will become chief executive officer.

“In service to our customers, Independent Representatives and corporate teams around the world, I want to establish a strong foundation of Vision, Execution and Innovation rooted in an ‘infinite game’ mind-set—one that I feel personally obligated to lead and steward,” said Nugent.

WorldVentures has also announced that it has added a new chief operating officer, Michael Poates, to serve the business, establish new partnerships and secure existing partnerships, and support the company’s Independent Representatives around the world. Poates will enhance processes and initiatives that drive revenue for WorldVentures.

“Michael’s role will complement my own and serve the entire business,” Nugent said. “His extensive executive experience matches our next phase of growth and he will make a significant contribution to our infrastructure and culture.”

2 2 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

made seamless by our innovative and entrepreneurial distributors who are dedicated to their customers’ well-being,” said Agwunobi. “As we celebrate our 40th anniversary, our mission of improving the nutritional habits of the world has never been more critical, and I look forward to leading this amazing company as we continue to expand our reach, making all of our communities stronger.”

In addition to Agwunobi’s transition to CEO, Herbalife Nutrition Co-President and Chief Strategic Officer John DeSimone has transitioned to president.

DeSimone is a proven leader with an extraordinarily deep knowledge of Herbalife Nutrition, having spent more than a decade in leadership positions at the company.

JENNIFER HARMON, Perfectly Posh, VP of Business Development Perfectly Posh announced that Jennifer Harmon has joined the executive team as vice president of Business Development.

Harmon has a long history in direct sales, both in the field and at the corporate level, including 14 years as a topperforming consultant in recruiting with a leading direct selling company.

“I was looking for a company that needed someone who could help them have a fresh start, one where I could bring in my skillset to enhance what was already there and to fill in any gaps to better serve and support the field,” said Harmon. “Not only do I love Posh products, but I love that the company has heart. Perfectly Posh sources Shea from suppliers that help underprivileged women in Africa whose lives depend on its production. Posh also honors members of the military, first responders and teachers with a 10 percent product discount.

These programs really speak to me.” DSN

In Memoriam Jeffrey Babener

Industry Advocate Jeff Babener Passes Away

J

effrey Babener, 71, built an impressive legal practice representing several direct selling companies, and becoming a leading expert and prolific writer.

“The MLM legal community suffered a great loss with the passing of Jeff Babener. Jeff was a pioneer in the MLM legal field and a tireless advocate for direct selling companies and the opportunity they offer to aspiring entrepreneurs,” said Brent Kugler, a direct selling attorney for Scheef & Stone.

“On a personal level, Jeff was a mentor and dear friend.

Jeff was a great storyteller and always willing to share his thoughts and wisdom with me and other direct sales/MLM lawyers even though we were ‘competitors.’ Jeff, you will be sorely missed,” Kugler continued.

“He was a legend. He will be missed,” said Kevin Thompson of Thompson Burton. “Jeffrey Babener was one of the originals when it came to MLM law. Jeff was a fierce competitor, which made me like him more throughout the years. When he had a problem with something I wrote or said, he’d call. When he had a compliment to share, he’d call. He was direct, to the point. I really admired him and was saddened to hear of his passing.

He dropped subtle practice pointers on me throughout the years, advice that I was always grateful to receive.” DSN

YOUR DIRECT SALES FULFILLMENT NEEDS,

FULFILLED.

→ 11 FULFILLMENT CENTERS coast-to-coast → DSA MEMBER serving 15 direct selling companies → 1–2 DAY DELIVERY to 98% of the U.S. → MILLIONS of B2C orders fulfilled every month → SCALABLE to support long-term growth, post-convention surges, and monthly subscription peaks

→ EASY INTEGRATION with Exigo, Magento,

InfoTrax, NetSuite & other commerce platforms

Download our helpful paper: Direct Sales Fulfillment: 5 Keys to Success at sales@AmwareLogistics.com

AmwareLogistics.com/direct

w w w . d i r e c t s e l l i n g n e w s . c o m 2 3

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

SOCIAL MEDIA

Play Together, Stay Together Why Facebook Groups are so effective at creating culture, context and retention.

C

REATING CULTURE, community and retention are some of the biggest goals in the direct sales industry.

Facebook Groups have become one of the hottest and most effective tools, from a corporate and field perspective, to achieve all three.

What is it: Different than personal Facebook profiles and business or fan pages, groups are meant for internal communication, support and education. It’s a space to bring value, solve problems and foster community within a certain market. You can even create and link to smaller groups that focus on different audiences, or more specific areas of a business or product line.

A powerful prospecting tool: Groups can be public or private. An effective strategy in direct sales is to invite prospects to a private group where members support each other to achieve certain goals. Within the group you can educate through live videos, create contests and giveaways, share success stories and testimonials, conduct interviews, meetings or trainings. Questionnaires can screen members, asking questions such as: Who is your sponsor? Who invited you? What do you hope to learn from this group? Group rules and necessary disclaimers can be clearly displayed on the group home page.

Content can focus on providing information to help someone make a buying decision. Some members may not yet be customers. One popular strategy is to invite interested prospects into a private group for a limited time for a “test drive.” This way, they get to interact with members, ask questions and have a glimpse of the group’s value. Then schedule a follow‑up time.

2 4 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

Sunny Lenarduzzi’s 5 TIP S for Growing an Engaged Facebook Group }BRANDING: Make sure the colors and athletics in the group are aligned with your brand. Have a call-to-action in the group’s banner, and use a branding hashtag people can use when posting within the group and on other social platforms. }LAY DOWN THE GROUND RULES: Clearly list what is and what is not allowed within the group. An effective way to do this is creating a welcome video and pinning it to the top of the group. }CONTENT TIERS: Creating content is vital for engagement, and content tiers are a great way to build anticipation and encourage

“

engagement. Examples are “Motivational Mondays” to help members set goals and take action for the week, or “Testimonial Tuesdays” to share compelling success stories. }CROSS-PROMOTE: Promote the group on other social platforms and share examples of activity that’s happening. }GO LIVE: This is one of the most effective ways to interact with members and create more of a human element within the group.

Live trainings, interviews and Q&As are just a few examples that increase engagement and provide value.

I truly believe Facebook Groups are one of the best assets you can have for your business.

— SUNNY LENARDUZZI, Online Video and Business-Building Expert

Building a captivated audience: One of the main purposes of Facebook Groups is fostering a community where people feel part of a larger goal. The level of support and encouragement can bring great value that people won’t find from buying products off the shelf. In a group, the actual products are often treated as tools that help members reach their goals. Groups are also great ways for distributors to brand themselves as problem-solvers, focusing on the unique needs of the members. This is a great way to create retention.

Watch parties allow people to share Facebook videos with a group, and watch it in real-time with other group members.

Members can interact on the video with each other, helping to create community and build relationships.

Measuring interaction: Facebook Groups allow you to create photo albums for different purposes and themes, such

as testimonials, before/after pictures and event pictures.

Members can access them at any time and repurpose them for future use. It also lets you see which types of photos generate the most engagement.

Like a Facebook page, insights display member engagement and growth, along with reach and engagement of individual posts. This can be valuable info for shaping content members naturally want to interact with. Learning Units are effective for on-boarding new members, especially in video form. They give them a walkthrough for joining the group, or give them the basic information they need for getting the most value from the group. Admins can see individual members progress as they move through the units.

Industry example: Prüvit’s “Drink Ketones Daily” group has more than 110,000 members. The main purpose is providing support and education, helping members through a monthly reboot using a product kit that provides all someone needs in order to participate in the reboot.

Posts and videos share members’ experiences through the program, encourage each other and educate members on what to expect. The group gives the products context while creating a mission that members participate in together. Its stated goal is accountability, encouragement and culture.

Members regularly ask and answer questions, share recipes and even give workout advice. Field leaders and third-party experts offer coaching and live Q&As. Specific topic hashtags tied to certain posts help members navigate through content and find different topics they’re interested in. 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 5

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

TOOLS

Live Video Secrets

L

IVE VIDEO has become one of the most effective ways for direct sellers to market their business online and build a loyal following. Facebook, Instagram and YouTube are the most popular platforms. The instant interaction of live video helps build community and involves the audience in real-time.

Hayley Hobson, a field leader in the wellness space marketing essential oils, credits live video as the primary tool for building her business online. Her Facebook page has more than 70,000 followers, while more than 40,000 people follow her on Instagram. Her live videos simultaneously broadcast on each platform.

Hobson says her live videos on Facebook typically reach around 20,000 up to 80,000 people, while static

2 6 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

5

5

Compelling Live Video Stats

87%

}IN 2019, 87 PERCENT OF BUSINESSES used video as a marketing tool. (TechJury)

}82 PERCENT OF CONSUMER INTERNET TRAFFIC is expected to come from videos by 2022. (TechJury)

}80 PERCENT OF CONSUMERS prefer to watch live videos from a brand than read a blog. (Livestream)

}63 PERCENT OF PEOPLE AGED 18-34 watch live streaming content regularly. (Neil Patel)

}MORE THAN ONE IN FIVE FACEBOOK VIDEOS are live and are watched three times longer than pre‑recorded videos. (Go-Globe)

posts reach around 800 to 2,000 people. While some of her videos have different purposes, her strategy centers on bringing value and education to her audience—not trying to sell product. However, she does incorporate product placement and offers tips on how certain products can solve specific issues.

“My overall goal is connection and nurturing,” she says.

“The most important part of social media is to make sure your audience feels like you’re about messages resonating with them. And that you’re hearing their pains and their concerns, and you’ve got solutions for them. So, you can’t be just selling them all the time.”

Hobson says live video is a terrific list-building tool. She often offers free downloads or resources as ways to build her email list. Asking and answering questions, and telling compelling stories are some of her most effective ways to connect and interact with her audience. She even repurposes some live videos for other content, such as emails, blog posts or shorter videos.

As far as the technical side, Hobson says good lighting and a clean background are key. She outlines her videos to make

P E R C E N TA G E O F B U S I N E S S E S T H AT U S E D VIDEO A S A M A RK E T ING T O O L I N 2 0 19 .

“

My overall goal is connection and nurturing. The most important part of social media is to make sure your audience feels like you’re about messages resonating with them.

— H AY L E Y H O B S O N , f i e l d l e a d e r i n th e we l l n e s s s p a c e marketing essential oils

sure she has a specific plan and includes a title and call-toaction. She sometimes will change the title after the live video to attract people who watch the recording, because their experience is slightly different from people who catch the live video.

Hobson says branding yourself is a must. Her brand is all about supporting woman entrepreneurs, teaching healthy habits and holistic happiness. “You have to give solutions, and the solution is not your product,” she says. “The product is just one avenue that you can talk about. The branding is actually number one. Nine and a half out of 10 times, I don’t mention my product at all, but I may have oil sitting in the background.” 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

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

MUST READS FORGED IN CRISIS: THE MAKING OF FIVE COURAGEOUS LEADERS

By Nancy Koehn (John Murray, 2018)

T

en years in the writing, Forged in Crisis, by renowned Harvard Business School historian and Davos and Aspen Institute speaker Nancy Koehn, presents five remarkable life journeys—those of polar explorer Ernest Shackleton; President Abraham Lincoln; legendary abolitionist Frederick Douglass; Nazi-resisting clergyman Dietrich Bonhoeffer; and environmental crusader Rachel Carson. What do such disparate figures have in common?

Why do their stories speak to us so powerfully today?

BLINK: THE POWER OF THINKING WITHOUT THINKING

By Malcolm Gladwell (Little, Brown and Company)

B

link is a book about how we think without thinking, about choices that seem to be made in an instant—in the blink of an eye—that actually aren’t as simple as they seem. Why are some people brilliant decision makers, while others are consistently inept? Why do some people follow their instincts and win, while others end up stumbling into error? How do our brains really work—in the office, in the classroom, in the kitchen, and in the bedroom? And why are the best decisions often those that are impossible to explain to others?

THE MOTIVE: WHY SO MANY LEADERS ABDICATE THEIR MOST IMPORTANT RESPONSIBILITIES

HAVE A LISTEN

By Patrick Lencioni

L

encioni uses unexpected plot twists and crisp dialogue to take us on a journey that culminates in a resolution that is as unexpected as it is enlightening. As he does in his other books, he then provides a straightforward summary of the lessons from the fable, combining a clear explanation of his theory with practical advice to help executives examine their true motivation for leading. In addition to provoking listeners to honestly assess themselves, Lencioni presents action steps for changing their approach in five key areas. DSN

2 8 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

CONTRACT

MANUFACTURER

THE TRUSTED NAME IN DIETARY SUPPLEMENTS

̶ SINCE 1972

POWDER FILLS - CAPSULES - POWDER POUCHES STICK PACKS - DAILY PACKS - PRIVATE LABEL

FROM FORMULATION THROUGH FINISHED PRODUCT QUALITY. DEPENDABILITY. SERVICE. David Daniel - Director of Contract Packaging Sales daviddaniel@progressivelabs.com l

972-518-9660 ext. 220

Marisol Bice - Contract Packaging Manager marisolbice@progressivelabs.com l

972-518-9660 ext. 221

GOOD MANUFACTURING PRACTICES

3 13 1 S TO RY RD. W.

l IRVI NG, T X 75 038 l 1 . 8 00. 5 2 7. 951 2

W W W. P LC O N T R AC T.C O M

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

3 0 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

10

Tips for Leading a Direct Selling Company Today

By Brett Blake, A u t h o r, S t r a t e g y C o n s u l t a n t , B o a r d M e m b e r a n d E d u c a t o r

LEADERS FOCUS their orgnanization during a crisis.

w w w . d i r e c t s e l l i n g n e w s . c o m 3 1

F E A T U R E /

“

1 0

T I P S

T O

L E A D

In my career, I have seen that the biggest challenges direct selling companies face are rarely a result of decisions that are made, but poor outcomes result when company management fails to act.

T

he COVID-19 pandemic has presented us with what might be the most unique business experience of our careers, one we are all trying to wrap our minds around from a public health perspective. I’m not qualified to speak to the health aspect of COVID-19, but my experience leading several companies through very difficult crises has left me thinking, “What would I do if I were leading a company right now?”

This is a moment in time when “work from home” companies should be thriving or at the very least preparing to thrive. Whether your company is in “crazy growth” like the company of one executive I recently spoke with, or in “survival” mode, this is a time for leadership.

BE IN ACTION I thought I would share ten tips that might be helpful to those leading a company today. Before I jump into those ten tips, first let me emphasize how important it is for you to be in action.

In a briefing with senior technology leaders on March 21, the renowned Harvard Business School graduate, digital media expert and educator Clark Gilbert observed how this crisis has completely distracted some: “We see a lot of people kind of in paralysis. They’re so nervous about what’s going on that they have stopped everything. I think there’s a tendency to only live in crisis mode.”

In a recent article titled, “Leadership in a crisis: Responding to the coronavirus outbreak and future challenges,” McKinsey & Company acknowledge how difficult it can be to make decisions but emphasized the need for decisiveness and action.

“Waiting for a full set of facts to emerge before determining what to do is another common mistake that leaders make during crises. Because a crisis involves many unknowns and surprises, facts may not become

3 2 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

clear within the necessary decision-making time frame… Once leaders decide what to do, they must act with resolve. Visible decisiveness not only builds the organization’s confidence in leaders; it also motivates the network of teams to sustain its search for solutions to the challenges that the organization faces.”

In my career, I have seen that the biggest challenges direct selling companies face are rarely a result of decisions that are made, but poor outcomes result when company management fails to act. Inaction or the inability or unwillingness to make decisions is the first obstacle to overcome. Once a leader begins to act, they have the potential to influence a positive future outcome for their company.

Those leaders in action or now determined to act may consider the following ten tips which I’ve broken up into field imperatives and corporate leadership suggestions.

FOR SALESFORCE LE ADERSHIP 1. Communicate—Consider your own experience with COVID-19.

On Wednesday morning, March 11, 2020, most of us woke up aware of the possible impact of this strange new virus, but few of us had been impacted in any meaningful way. By the end of the day, the NBA had suspended play, the NCAA had announced that March Madness would be played without fans and things began to get surreal. Since then, each day has brought more and shockingly unimaginable news of how this virus would impact us, regardless of whether we will ever test positive as a carrier of the virus. In a world that changes so dramatically each day, your field needs to hear from you and your team. And more important, you need to be on-message.

Timothy R. Clarke, founder and CEO of LeaderFactor, wrote for the Harvard Business Review: “Update even if there’s no update. Uncertainty fuels anxiety. The more you communicate and share, the less chance there is to develop an information vacuum within your team. Communicate regularly even if you don’t have new information to share. Maintaining transparency through a crisis with frequent updates is the ultimate expression of good faith, empathy, and genuine concern for your team.”

Those companies who are using an app with push notifications have an advantage in their ability to have touch point communications with their team multiple times a day. App messaging, text messaging and email should be used, but should not be the only method of communicating. In the absence of in-person meetings use video conferences, webinars and phone conferences to make announcements, provide updates, and to give your field an opportunity to share best practices with one another.

One last warning: Make sure your communication is on-point.

One consultant told me she was helping a company with damage control after w w w . d i r e c t s e l l i n g n e w s . c o m 3 3

F E A T U R E /

1 0

T I P S

T O

the company’s COO updated the field and concluded, “We will be filling orders and getting product to your customers… for as long as we have product available to sell.”

Needless to say, the only thing the field heard was “soon we won’t be able to get product,” and new customer acquisition ground to a halt.

2. Focus—There are a few companies who are fortunate to have products that are in high demand right now (e.g. oils, hand sanitizer, etc.). Whether or not your products are in demand the “work from home” message has never been more relevant. Wise marketing and sales leaders have pivoted (or will pivot) their companies’ message to focus on their most relevant products or on the benefits of having a second home-based source of income.

Some leaders have the ability to influence their field to refocus their message simply by directing them via communication to do so. Other leaders will use promotions and offers that are compelling enough to focus the field on the relevant message and will provide them a method for sharing that offer.

3. Systems—Your field has too many things competing for their attention right now and therefore they need you to tell them exactly what to do. They need a system or a method of delivering the message or engaging new prospects that supports the relevant product or opportunity. Several of the most successful companies have deployed 3 4 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

L E A D

sampling programs, many supported by an app, to simplify things for their field.

And for those who think that it is too late to arm their field with a method, you may be surprised to hear that in just six weeks It Works! pivoted their field focus on a new product and an online sampling method that has produced significant growth.

Kyler Pentecost, VP of Sales at It Works! said, “New distributors can send corporate-sponsored content and product samples to their prospects as soon as they download the app. The app has taken our sampling and customer acquisition systems to a completely new level. If I could give one piece of advice to anyone considering it, it would be ‘the sooner the better.’”

Noah Westerlund, Senior Vice President of Business Development for SUCCESS Partners, helped implement the It Works! app and sampling program and said, “Whether clients are using our NOW App, or one of our competitors, there is now plenty of case studies to prove that there is no better way of preparing your company for exponential growth than by having a simple, and preferably automated, method of giving prospects a product experience.”

4. Value—There is nothing that

motivates distributors to share more than a compelling offer for their customers.

If you want to get your field’s attention and see them break through the noise of the 24/7 COVID-19 news, give them a compelling, limited-time offer that supports your most relevant product/

service/opportunity. Now is the time to deploy some of your most compelling offers like FREE enrollments, deep discounts, FREE shipping, and FREE with purchase promotions. These promotions will be even more effective if they are supported with a system that eliminates the “what do I do” or “what do I say” questions.

5. Hope—Hope is the field’s fuel. Without hope distributors stop recruiting, stop selling and start looking for something else to do with their time.

Most executives built their business on stories of hope and opportunity. These stories generated enough hope to convince early employees, investors and distributors to join a company with plenty of flaws. Often we get out of practice and stop telling our hope-inspiring stories. If that is you, it is time to reassume our role as “Chief Hope Officer.” Leaders need to dust off the story of their purpose, and should begin to share their vision again with employees, shareholders and distributors. Be active and engaged in restoring hope and fight for resources to protect the company from the enemies of hope.

“

In a world that changes so dramatically each day, your field needs to hear from you and your team.

And more important, you need to be on-message.

w w w . d i r e c t s e l l i n g n e w s . c o m 3 5

F E A T U R E /

1 0

T I P S

T O

L E A D

“

If you want to get your field’s attention and see them break through the noise of the 24/7 COVID-19 news, give them a compelling, limited-time offer that supports your most relevant product/ service/opportunity.

F O R C O R P O R AT E L E A D E R S HIP 1. People—Often it is easy to take your home office team for granted and to focus too much of your energy on caring for your field. Leaders need to acknowledge the enormous challenges employees are facing as they are trying to respond to the chaos of the moment, and for those with families, to lead their families in a world that has removed most of the social norms that provided structure to their lives.

On the Direct Selling Association’s industry call on March 19, Nu Skin President Ryan Napierski said that his management team was surprised to see a productivity improvement after the company sent all employees home to work remotely. However, don’t underestimate the challenges your employees will have as they adjust to the world of “work from home.” Even those who have worked in a virtual company will face new challenges as both parents return to a house with children home from school.

In a March 20, 2020, conference call sponsored by Silicon Slopes, Qualtrics CEO Ryan Smith said, “We’re seeing a lot of data coming back that is showing that the work environment at home is just fundamentally different. It’s challenging. It’s incredibly stressful. We weren’t prepared for it… We found that people didn’t have workstations, they didn’t have cable cords, 3 6 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

they didn’t have computers and monitors and we basically said take whatever you want out of the office.”

As your organization adjusts to social isolation, Qualtrics has made available a free “Remote Work Pulse” survey tool you can use to make sure you are caring for your employees.

According to the Qualtrics website this tool was created to help “you understand if your organization is prepared for a remote workforce, and if your employees have what they need to succeed in this new environment.

“There are three things every organization must do immediately, and the order you do them matters.” The three things Qualtrics suggests you must do (in this order): 1. Ask employees if they are OK 2. Ensure they have what they need, and 3. Act quickly to help employees stay productive Smith said, “We all need to be feeling productive, or we’re going to go nuts, especially if we’re all quarantined for 30 days, or however long it’s going to be.”

You can use Qualtrics’ Free Remote Work Pulse by visiting their website: https://bit.ly/QualtricHeretoHelp

2. Teams—Recognize that these unprecedented times

will bring with them the need to respond quickly to new and changing variables. McKinsey & Company suggests that companies have “action teams” focused on execution and a “response team” that is gathering external data and filtering that data to decide if and how externalities should impact the company’s current plans. Your response team will also be responsible for making sure there is a unified message communicated to the appropriate audience. Turbulent times are stressful enough, the last thing a company needs is confusion. Make sure that your team is unified minute by minute in plan, purpose and messaging.

3. Cash—Neil Blumenthal, CEO of Warby Parker,

reminded us that “for better or worse, cash is the oxygen of your business, and you can’t last long in any environment without it.” No matter what direction your business turned on Friday, March 13, your cash position changed. Your finance and accounting team need to be on top of that change immediately.

Change tends to impact cash negatively no matter its direction. Hypergrowth comes with significant cash demands as companies invest in inventories and infrastructure to sustain momentum. Likewise, declining sales can drain cash reserves quickly if companies are unable to respond quickly enough and reduce spend.

Everyone reading this article should demand a new cash forecast today. When you get that forecast, make sure that it accounts for today’s trend and only today’s trend. Too many companies find themselves in a cash crunch because they have ignored trends or tempered them with optimism that the current trend data did not support.

For the sake of your company, your field and your employees, always err on the side of preserving cash early. Never allow yourself to be blindsided with a cash surprise. Review your cash position and forecast as frequently as your trend changes.

Be aware of the fact that Congress is working on legislation that would allow businesses to borrow money from SBA approved lenders without showing they have the ability to repay the loan. Congress is proposing legislation that would guarantee these loans so that banks are not put at risk and are anticipating that many of the loans would be forgiven if companies are able to show they were judicious in the use of the funds and that they aren’t able to repay the loan. If your business is in decline look at these loans. If you are growing, apply for money—especially if you don’t need it—to avoid being turned down when you do need it. w w w . d i r e c t s e l l i n g n e w s . c o m 3 7

F E A T U R E /

1 0

T I P S

T O

L E A D

“

Everyone reading this article should demand a new cash forecast today.

When you get that forecast, make sure that it accounts for today’s trend and only today’s trend.

4. Supply Chain—This crisis is unique because it has impacted both the supply side of the economy and the demand side of the economy. It began in one of the world’s most important centers for manufacturing of raw materials.

There was an early stress placed on many companies as manufacturing closed and component parts became scarce in many industries.

As Chinese workers return to factories, the supply side issues have now been replaced by demand issues. These issues are particularly acute for companies who rely on consumer gatherings (at a store or in-home at a party). However, as we prepare to see the highest single unemployment claims number since the Great Depression, companies are in danger of seeing demand for their products decrease.

Fortunately, many network marketing companies are beyond their previous supply issues and are seeing an increase in demand precisely because their business model aligns with social isolation requirements. For these companies, the challenges that may lie ahead is a disruption in U.S. manufacturing and/or order fulfillment.

As of this writing, more than 20 percent of the U.S. population lives in states with government-mandated inhome quarantines. We have yet to see how these governmentrequired shutdowns will impact our manufacturers and the suppliers who pack and deliver our products. Companies need to plan and be prepared to respond to either eventuality by having daily updates from vendors and strategic supply chain discussions with your response team.

3 8 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

5. Communicate—Your employees need to hear from you often, and they need to be able to have quick access to what is likely to be ever-evolving plans and initiatives. Take time to implement real-time communications tools and plan formal frequent updates. Communicating often and thoroughly is helpful, but studies show that you will relieve stress by creating structure in the how and when you communicate. Make sure that employees are not surprised by your communication, and don’t make them worry about missing important information.

These times call for resolve, what Jim Collins calls the Stockdale Paradox, named after James Stockdale, the highestranking military officer held as a prisoner of war in the Hanoi Hilton. Stockdale was in captivity for seven years and was tortured over twenty times. His survival was a result of what Collins has labeled the Stockdale Paradox: • You need absolute, unwavering faith that you can prevail regardless of the difficulties, and • You must confront the most brutal facts of your current reality, whatever they might be.

While the brutal facts of this crisis will demand that we balance the best human care with the best business leadership, I see so much opportunity that will come of it for the future of direct selling.

These tough times won’t last, but tough-minded leaders will and their companies and the tens of thousands of families they lead will emerge better than ever. DSN

WHAT ’S THE JOB YOUR CUS T OMERS HIRE YOUR PRODUC T S TO DO? The customer is the wrong unit of analysis when you’re tr ying to innovate.

4 0 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

B Y

B E T H

D O U G L A S S

S I L C O X

w w w . d i r e c t s e l l i n g n e w s . c o m 41

F E A T U R E /

J O B

T O

B E

D O N E

F

T H E O R Y

LAT-LINE SALES OF MCDONALD’S SHAKES BACK IN THE 90s had the fast-food giant looking for ways to innovate. Focus groups convened, data

rolled in and product changes were made accordingly. But sales remained the same. Why? It turns out McDonald’s, like so many other companies, subscribed to the notion that innovation hinged on knowing who your customer was. But as Clayton M. Christensen, Harvard Business School professor, co-founder of Innosight, and author of Competing Against Luck says, “My characteristics and attributes have not yet caused me to buy the New York Times today. There might be a correlation between the propensity I have to buy The Times, but they don’t cause me to do that. Nor do our characteristics or attributes cause us to buy any products or services.”

4 2 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

EIGHT Y PERCENT OF MCDONALD’S SHAKES WERE SOLD BEFORE 8:30 IN THE MORNING, MOSTLY TO MEN. THE Y WERE ALWAYS ALONE, AND THE Y TOOK THEM TO GO. So Christensen’s colleagues set up shop in McDonald’s. For 18 hours, careful attention was paid to everyone who purchased a shake. Time of day, additional food purchases, dine in or carry out, what were the customers wearing? A clear—yet unexpected picture emerged.

Eighty percent of McDonald’s shakes were sold before 8:30 in the morning, mostly to men. They were always alone, and they took them to go.

ARE YOU ASKING THE RIGHT QUESTIONS? Innovation has gained an unflattering and inaccurate reputation for being messy, imperfect and unknowable.

Some companies look at innovation as a necessary crapshoot. They sink a lot of money and time into ideas they throw out into the proverbial universe—a few win, most lose—then the company figures out how to mitigate the damage and live with the fallout.

w w w . d i r e c t s e l l i n g n e w s . c o m 4 3

F E A T U R E /

J O B

T O

B E

D O N E

“

The customer is the wrong unit of analysis when you’re trying to innovate.

— C L AY TO N C H R I S T E N S E N , au th o r an d p r o f e s s o r Harvard Business School

4 4 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

T H E O R Y

Even when innovation is more strategic, it often follows a customer discovery route that may teach companies a great deal about their customer base but doesn’t accurately predict which innovations will increase sales or productivity.

It is little wonder innovation is such a daunting task within direct selling companies. Think about it. The full budgetary and data mining weight of McDonald’s built a quintessential customer profile, and the fastfood giant still couldn’t convert that knowledge into increased shake sales. It wasn’t for lack of resources or effort. It was because they were asking the wrong questions. Maybe you are too.

JOBS TO BE DONE INNOVATION ACTION STEPS

1

Find a job that needs to be done.

Understand why someone

2 3 Document the journey. filmmaker, find out where,

Remove the obstacles & frustrations to create a better experience.

Do the work of a documentary when, and what they are

Make the new experience twice

into her life. Think beyond

doing the moment they hire a

as good as the current one to

functional dimensions; explore

product. Create a storyboard

avoid customer anxiety over

emotional/social reasons.

or map of the experience and

hiring something new. People

Think less like an entrepreneur

focus on the obstacles and

tend to avoid loss and maintain

and more like a psychologist

moments of frustration.

the status quo, so show them

would want to pull a product

to find out what people care

what they are gaining so they

about.

don’t miss what they are losing.

S U C C E S S F U L I N N O VAT I O N LIES IN FINDING ANSWERS TO THE RIGHT QUESTIONS “The customer is the wrong unit of analysis when you’re trying to innovate…Rather than the customer, you need to understand what it is the customer is trying to accomplish. What’s the job the customer is trying to get done?” Christensen says.

Within the direct selling industry, this can mean searching for the job that not only your end-user customer is trying to accomplish, but also the job

the distributor is trying to accomplish. They likely aren’t the same job. This means direct selling innovation needs to be two-fold—bringing new products to market that the company can sell and creating better incentive programs for distributors.

So what job is your customer or your distributor “hiring” your product or business opportunity to do?

JOBS TO BE DONE The Jobs to Be Done Innovation Theory says we all have numerous jobs to be done every day of our lives. Some are small, like passing time while waiting in line. Others loom large, like finding a more fulfilling career. They spring up unexpectedly like lost luggage on a business trip and can be as routine as packing healthy food for your daughter’s school lunch. w w w . d i r e c t s e l l i n g n e w s . c o m 4 5

F E A T U R E /

J O B

T O

B E

D O N E

T H E O R Y

R ATHER THAN SIMPLY ASK WHY THE Y SELECTED A SHAKE, CHRISTENSEN’S TE AM RE‑SHAPED THE INQUIRY AROUND JOBS THEORY.

These jobs cause customers to get out of the house, get online and ask their family and friends for solutions. Customers essentially “hire” products and services to do the job. And if that product or service completes the task well, they will re-hire it. If not, that product or service gets fired and customers re-evaluate their options.

And jobs are stable things over time. If Julius Caesar needed to get something from here to there, he hired a horseman. Queen Victoria hired a telegraph or railroad. Churchill hired an airplane. We hire FedEx or the internet. The job has always been there, whether or not there was a product or service available to do it. Innovate the product or service, then a market emerges.

Direct selling companies can transform their understanding of customer choice with Jobs Theory, in ways that no amount of data ever could. At the heart of Jobs Theory are the causal drivers that lead customers to invite products, services and opportunities into their lives. Jobs Theory can tell you precisely “why” a customer is or is not purchasing your product, and it comes down to whether or not your product is doing the job they need it to do.

4 6 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

BACK TO MCDONALD’S So what on Earth were these guys trying to accomplish buying a shake that early in the morning?

Christensen sent his team back to McDonald’s to figure that out, and they pulled innovation clues from McDonald’s shake customers.

Rather than simply ask why they selected a shake, Christensen’s team re-shaped the inquiry around Jobs Theory. “What job were you trying to do that caused you to come here to McDonald’s at 6:30 in the morning and hire that shake?”

The customers were a bit confounded and struggled to answer. So they asked them to think about the last time they were in a similar situation and needed to get the job done, but didn’t come to McDonald’s to hire the shake. “What did you hire?”

A pattern emerged. Those men all had the same job to do that morning. They needed something to do while making a long, boring commute to work. They needed to be engaged in life, and they needed to stay awake. They weren’t hungry yet, but they wanted to stave off that mid-morning stomach rumble.

So what did they hire when they didn’t hire the McDonald’s shake? One guy hired a banana, but it was gone in three minutes, and he was hungry by 7:30 a.m. Another turned to doughnuts, but they were crumbly and gooey, and it was a fiasco if the phone rang. Spreading the cream cheese on bagels was problematic, and the guilt from hiring a Snickers bar was nearly unbearable.

“When I have this job to do and come to McDonald’s and hire this milkshake, it is so viscous it takes me 23 minutes to suck it up the thin, little straw.

Who knows what the ingredients are and I don’t care

“

The customer rarely buys what the company thinks it’s selling him.

— P E T E R D R U C K E R, a u t h o r a n d e d u c a t o r

THE INDUSTRY’S NEWEST AND MOST ADVANCED DIRECT SELLING SOFTWARE

SUPPORT ANY SIZE COMPANY ANYWHERE IN THE WORLD

FULLY EXTENSIBLE API ARCHITECTURE

COMPLETE SOLUTION INCLUDED

EXTREME CONFIGURABILITY

EMBEDDED BI REPORTING

TOTALLY MOBILE & SOCIAL

w w w . d i r e c t s e l l i n g n e w s . c o m 4 7

FABULOUS PARTY MANAGEMENT

because I know it’s still in my stomach at 10 o’clock.

And it fits right in my cup holder, and if I forget what I’m doing and turn it sideways, it doesn’t flow out,” Christensen summarizes.

Utilizing Jobs Theory showed McDonald’s new competitors and differing priorities. Suddenly innovation options to get the job done better became clearer. In essence, thicker shakes would last longer, chunks of fruit or chocolate could improve engagement, or a self-serve, lobby shake machine with a card swipe might speed transactions.

Peter Drucker said, “The customer rarely buys what the company thinks it’s selling him.” This was true for McDonald’s.

“They realized they had been improving the shake on dimensions of performance that was irrelevant to the job to be done. But once they understood what it was, they could improve it in salient dimensions so that it would be successful every time,” Christensen says.

All you have to do is look to the successful innovations efforts of Amazon’s Jeff Bezos and Scott Cook’s work with Intuit, eBay and Procter & Gamble to see Jobs Theory in action. Maybe you’ve used the services of Airbnb?

Christensen reminds us that you don’t need a bunch of luck to be innovative. “You need the right mindset, a disciplined focus on improving a specific experience for someone and the skills to bring that experience to life.” DSN

FOUR DIRECT SELLING COMPANIES LEADING THE INNOVATION CHARGE

New perspectives on innovation

By Courtney Roush

4 8 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

w w w . d i r e c t s e l l i n g n e w s . c o m 4 9

C O V E R

S T O R Y

/

L E A D I N G

T H E

I N N O V A T I O N

C H A R G E

If

necessity is the mother of all invention, we can expect a mother lode.

The direct selling industry has never faced the likes of a crisis that we are all going through with COVID-19. Still, companies are rising to the occasion—sending employees home to work virtually, conducting meetings through video conferencing, holding distance events and more, all the while continuing to provide service, support and encouragement to the distributors who depend on them.

When the coronavirus finally has been contained and eradicated, we’re likely to be left with innovations that were a direct result of these unprecedented times.

Make no mistake: This crisis will leave a lasting mark on our industry. Our adaptability and innovation skills are being tested. But we can use this opportunity to examine our business practices, devise creative solutions and come back stronger. This month’s cover story explores how a variety of direct selling companies have leveraged technology to propel themselves forward in a market in which we’re sharing space with several formidable gig economy and e-commerce giants.

In January, The Wall Street Journal reported the $2 billion all-stock acquisition of Avon Products, Inc. by Brazilian cosmetics company Natura &Co. Avon is just one example of our industry’s efforts to adapt our business model to an evolving consumer landscape. Tupperware also has struggled to adapt its traditional home-based parties to a digital format. At the same time, it faces growing competition in the reusable storage container space from brands like Rubbermaid and Glad products and outlets like the Dollar Store.

5 0 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

w w w . d i r e c t s e l l i n g n e w s . c o m 5 1

C O V E R

S T O R Y

/

L E A D I N G

T H E

I N N O V A T I O N

C H A R G E

“

Our distributors are microinfluencers.

What we need to do as an industry is build our reputation and help them develop theirs.

—CHRIS STUBBS, SVP Global Sales & Operations, Nu Skin

I N N O VAT E , O R B E L E F T B E H I N D .

Companies in every sector are well aware of this call to action. Still, direct sales organizations have had to walk the line between a legacy of home parties, house calls and personalized service, and a future defined by mobile devices, convenience, speed and sometimes even customer anonymity.

Relationships and technology aren’t mutually exclusive. Direct selling companies have closely monitored trends and invested the resources necessary to develop marketing and tools that blend personalization and convenience. For legacy companies, some of which count older and quite vocal distributors among their demographics, venturing into increasingly digital territory can bring growing pains. Are hybrid models the best approach, or is it best to close the door on the past and jump into the future with both feet?

Successful innovation requires a climate that allows freedom to experiment and room to fail. Here are five direct selling companies that are leading the charge in innovating for the future.

Prüvit. Founder and CEO Brian Underwood used to think

innovation was about having the newest, the best, the fastest technology in the world—and then his perspective shifted. “The root of innovation is bringing value that people didn’t have before,” he says. “If I can educate you on something you didn’t know, I just brought value to your life without you even having to buy anything. In today’s world, the marketplace is very fickle.

As consumers, we’re professional buyers, and as humans, we want value, so we focus as a company on what we can give, not what we can get.”

Sometimes that means unearthing value from something that’s already there. “Ketones weren’t leading-edge—we commercialized them and became a megaphone through community-based marketing. We don’t want to be on the bleeding edge of technology—I’ve been there before, and it’s a very slippery slope.”

A virtual company of 45 employees, Prüvit’s lean structure enables it to stay nimble and in the trenches. “Flexibility is important. A lot of companies, as they see growth, they over-employ and lose effectiveness.

5 2 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

We want to stay plugged into the conversations already happening with customers, promoters, and experts. That’s where collaboration and innovation should take place. We can’t innovate by theory—we have to be in conversation. Our core philosophy for the last 12 years is that collaboration is currency.

“There’s the business you’re in, and the business you’re becoming,” Underwood continues. “If you constantly manage both of those businesses, you won’t ever have to pivot because you’re always innovating. We want to use technology to improve our delivery system and provide a better product experience that addresses what consumers are looking for.”

Scentsy. Culture is critical to innovation. Co-

Owners and Co-CEOs Orville and Heidi Thompson applied their entrepreneurial backgrounds to the creation of a direct selling company with a DNA, and a culture more agile and dynamic than its age might suggest, says Chief Marketing Officer Mark Stastny.

Orville Thompson has encouraged the concept of “yes, if,” which Stastny defines as “the understanding that virtually anything can be done if certain circumstances exist.”

Sometimes those circumstances aren’t feasible, but they’re almost always worth exploring. Several years ago, for example,

as the company continued to introduce new fragrances and discontinues others, it was hearing from customers who didn’t want their favorites to go away. What would have to happen for the company to continue to make those favorites available to those who loved them? Orville asked. The result was Scentsy’s “Always Get My Bar” subscription. Even after the company has discontinued a fragrance, it will keep making it exclusively for Scentsy Club members who request it in their product subscriptions.

Another one of the company’s fundamental innovation philosophies: Don’t let perfection be the enemy of good. “The field learned early from us … that we’re perfectly willing to take ideas and programs and capabilities to market that aren’t perfect and haven’t been completely tested, but they’ve also learned that we’ll listen intently to them. If there are aspects of the program that aren’t working for them, we’ll work tirelessly—at times moving heaven and earth—to make it right,” Stastny says. “Ultimately, this is an industry of energy and momentum. You have to have structure around your plans and roadmaps, but your culture needs to be willing and able to listen and have the finger on the pulse of the market of your consultants and then be nimble and frankly humble enough to move and change when appropriate.” continued on page 55 w w w . d i r e c t s e l l i n g n e w s . c o m 5 3

C O V E R

S T O R Y

/

L E A D I N G

T H E

I N N O V A T I O N

C H A R G E

Technology’s Disruption to Direct Selling

V

ince Han founded Mobile Coach, a Provo, Utah-based technology platform for designing, deploying and managing chatbots, or computer programs that simulate human conversations.

Last year, Han penned a guest blog post, “How Technology Will Disrupt Direct Selling—Are You Ready?,” in which he stated “incumbents and established entities are blind to what’s coming until it’s too late.” The trends on the horizon that direct sellers should be watching carefully—if not leading the charge—he says, include frictionless (read: fast with minimal clicks or delays) user experiences, multisensory user experiences, and artificial intelligence and chatbots. So what’s stopping some of us? For starters, some basic human psychological biases: • CONFIRMATION BIAS: seeking out proof to confirm the validity/effectiveness of our current strategies) • SUNK COST LOSS AVERSION: sticking to your guns because you’ve already sunk so much money into your present strategy • GREED: robbing the future to pay for the present, or reaping everything you can at the moment without concern for where you should be headed • HERD MENTALITY: the assumption that because nobody else is doing it that way, you shouldn’t try it This isn’t to imply that embracing innovation should be easy for direct selling companies. “Amazon is a tech company first, and everything else second. The challenge for direct selling companies is that they haven’t had a legacy of technology first.

From my observation, even for the ones trying to embrace technology, there’s a learning curve,” Han says.

While it might seem as if legacy companies face a steeper learning curve than younger organizations, however, “I would put my money on legacy companies,” he continues. “They’ve 5 4 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

got a brand and a loyal customer base and the time, if they chose, to implement technology in the right way by leveraging that bank account of trust that they have with their customers.”

To gain the support of their distributors and customers, Han adds, companies must be transparent with their plans and timetable, “and I think their customers would embrace that.”

All of this said, many legacy companies have legacy technology. Han uses a term called “technical debt” to describe how even the best companies cut corners because of business pressures. Some of those larger legacy companies have incurred a huge amount of technical debt, “so that even the simplest change on a website takes a Herculean effort.”

Newer companies, meanwhile, are relatively unencumbered with debt and can debut with a slick website.

I T S H O U L D A LWAY S B E D AY O NE Jeff Bezos wrote his shareholders a letter in 2017 in which he declared that it would always be “Day 1” at Amazon. In other words, Amazon would maintain the optimism, nimbleness and focus of a first-day startup, always thinking ahead, and refusing the temptation to slide into Day 2 complacency. One of Bezos’ core philosophies in support of that mantra was that decisions should be made with 70 percent of the information; waiting for 90 percent would put you behind in the race.

Over the last decade, technology organizations have taken that mindset to heart—and it requires an openness to failure as a natural step toward learning and improvement. Take, for example, agile development, an incremental, sprint-style approach to software development that replaces a traditional cycle that required months in product requirements, followed by months of writing code. By the time organizations would deploy their sites one or two years later, their requirements were already out of date. With Agile, developers are pushing out new features every couple of weeks, Han says, and while it’s a great way to mitigate large-scale failure, “you’re still going to fail—you’ll still be late, you’re going to have bugs. You need an executive team committed to technology—a technology

continued from page 53

LifeVantage.

Long before Ryan Goodwin was Chief Marketing Officer at LifeVantage, he ran his own advertising agency. Among his clients was a direct sales company reluctant to go out on a limb with innovation, the likes of what his Fortune 500 clients were embracing. Some direct selling executives, he says, are under the impression that our business model is radically different from others and that what works elsewhere won’t work in our industry. Besides, if the field seems to be doing well with their sales and recruiting efforts, why rock the boat? With that mentality, companies expect innovation to come from the field.

To compete in this marketplace, though, direct selling companies have to take ownership of innovation—and LifeVantage is focusing its efforts on two key areas: establishing a strong visual brand and enhancing distributors’ and customers’ digital experience. Driving innovation with your visual brand, Goodwin says, “sends the signal that this is an innovative company flying an innovative flag, and everyone can see it.” As for digital innovation, “we think it’s one of the biggest macro trends roadmap, being transparent about it, and being able to attract the talent needed to handle it … it’s important to have someone with technology chops at the table making the decisions,” Han says.

There’s an important distinction between innovation and innovation theater. Innovation theater is focused on creating buzzwords, but there’s no real substance behind the scenes—and consumers can tell the difference. Ultimately, they’re going to go “where it’s most frictionless, and where things are most private, solid and secure and that’s stuff that you can’t theater away—that’s real infrastructure you have to understand how to put in—and it’s also something you can’t do overnight.”

Whether our industry will ever be able to compete with the speed of Amazon delivery remains to be seen. In the meantime, what we do know is that our distributors are our greatest strength—and perhaps the best innovation will come from determining how to capitalize on their service and the convenience of technology.

“I don’t know if anyone’s really cracked the code yet,” Han says, “but I think there’s lots of opportunities for direct selling companies to leverage their unique distribution channel through human beings, through unique products, and delivering those to customers in a delightful way. Amazon really can’t duplicate that. I think there can be lots of wonderful innovations that have yet to be discovered.”

_______________________ 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 5 5

C O V E R

S T O R Y

/

L E A D I N G

T H E

I N N O V A T I O N

C H A R G E

“

I think there’s lots of opportunities for direct selling companies to leverage their unique distribution channel through human beings, through unique products, and delivering those to customers in a delightful way.

—VINCE HAN, Founder/CEO, Mobile Coach

that direct selling hasn’t been adjusting to fast enough—and that can create a competitive advantage for us.” In a nutshell, “we want to be as close to Shopify as possible, but with no weird hoops because it’s network marketing.” The objective is an integrated strategy that makes it as simple as possible for anyone, at any age or level of technical proficiency, to start and grow a LifeVantage business.

As the basis for comparison, Goodwin points to Uber—specifically, the ease with which one may start driving for the company.

“I’ve asked hundreds of people, and the answer is always the same: Have you ever wanted to drive for Uber but couldn’t figure out how to do it? Uber has used technology to tell them turn by turn how to service their customers.” The challenge for our industry, he says, is to use technology to make it as easy as possible for distributors to build relationships. Goodwin believes we can do this with the aid of machine learning and a simple interface, enabling a distributor to log into an app when she has the time, “and we tell her the next thing she needs to 5 6 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

do to build her business. We have to crack that path—if we don’t, it’s going to be hard to keep the distributor pipeline full.” The future of direct selling, Goodwin adds, belongs to those who figure out how to leverage technology at all points in the cycle: company to distributor and company to customer, “strengthening each touchpoint as a team versus working against one another.

Ultimately we all want same thing—to help people be healthier.”

Nu Skin. The empowered

customer rules the current marketing landscape. Chris Stubbs, Senior Vice President of Global Sales and Operations, defines that customer as “someone who has an abundance of choice, or the ability to get what they want, when they want it, and where they want it. The way we compete in an opportunity and gig economy landscape that is social-commerce and e-commerce enabled is by understanding our customers, focusing on what they want and meeting them where they are at.”

Perhaps that’s why social media influencers have become so, well, influential. They’ve figured out how to connect with customers on a personal level, they’re accessible, and we trust them. Here’s some great news: Direct selling companies already have built-in armies of influencers. “Our distributors are micro-influencers,” Stubbs says. “What we need to do as an industry is build our reputation and help them develop theirs, so when consumers are looking for products, they can go to one of our distributors as a trusted source who provides that personal service. One of our competitive advantages as an industry is community and relationships. With millions of micro-influencers sharing products they love with people who know and trust them, this combination is very powerful.”

“Innovation comes from data-driven insight, a clear understanding of consumers’ needs and an always-learning mindset,” says Kevin Fuller, Senior Vice President of Global Product and Brand. “If direct sellers aren’t engaged in continuous innovation for the future, they won’t have one.

Convert Your Social Fans into Paying Customers Give your sales force social selling tools to succeed

Social Commerce Social Automation Social Governance Social CRM and more…

Request a Demo Today 214.659.1549 hello@socialsales.io

socialsales.io

w w w . d i r e c t s e l l i n g n e w s . c o m 5 7

C O V E R

S T O R Y

/

L E A D I N G

T H E

I N N O V A T I O N

C H A R G E

“

Your culture needs to be willing and able to listen and have the finger on the pulse of the market of your consultants and then be nimble and frankly humble enough to move and change when appropriate.

# — M A R K S TA S T N Y, Chief Marketing O f f icer, Scent sy

It’s the lifeblood of direct selling, in my opinion. The products and services we offer have to be top shelf to inspire both the distributor force and the consumer.”

He adds that consumers can see right through ‘innovation for innovation’s sake’. The difference is that real innovation is highly relevant because it connects with real needs.

“Real innovation is messy and takes time—there’s no such thing as a 100 percent success rate,” Fuller continues.

“Top management needs to embrace that, then the tone at the top will filter through the culture. If your innovation teams feel like they’re not allowed to fail, they will never deliver gamechanging products or services. It will drive them to be inherently conservative because they will work only on what they are certain they can deliver. It’s easy for non-visionary management teams to deprioritize the substantial, consistent investment that real innovation requires.” DSN

HOSTED BY

Thank you to these leading suppliers whose generous support empowers the DSA ENGAGE virtual annual meeting experience and the DSA ENGAGE Webinar Series to unite our community and help us be #StrongerTogether.

#COMMUNITY #STRONGERTOGETHER

C O M P A N Y

S P O T L I G H T

6 0 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

/ S C E N T S Y

SCENTSY /

Scentsy Ascends Again Through 15 years of gains and a few dips, Scentsy stays the course with a record year of growth.

B Y B R I T TA N Y GL E NN

W

HEN SCENTSY was first founded by Orville and Heidi Thompson in 2004, the company operated out of a 40-foot shipping container at

ORVILLE THOMPSON

CO-CEO

HEIDI THOMPSON

CO-CEO

SCENTSY FOUNDED:

2004 HEADQUARTERS:

Meridian, Idaho

the couple’s small sheep farm in Meridian, Idaho. Today, Scentsy has grown

TOP EXECUTIVES:

into one of the direct-selling industry’s leading companies. The home-and-

Orville Thompson, CEO Heidi Thompson, CEO

personal-fragrance market leader boasts nearly 117,000 consultants and more than 1,000 employees who work out of the company’s home office on an Idaho campus of 73 acres.

PRODUCTS:

Fragrance and Décor for Home and Travel, Scented Plush Toys, Laundry and Cleaning Products, Personal Care, Pet Care

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

C O M P A N Y

S P O T L I G H T

/ S C E N T S Y

A

THROUGH THE YE ARS, Scentsy has demonstrated its agility— the ability of a company to react to changing market forces—in the face of constant change.

This agility, combined with the company’s stalwar t stability, sets Scentsy apar t.

6 2 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

LOT HAS CHANGED since Scentsy’s humble beginnings 15 years ago, but what hasn’t changed is the company’s commitment to its mission: To bring value to the world by providing an industry-leading, familyfriendly business opportunity selling creative, artistic, high-quality products that Warm the Heart, Enliven the Senses and Inspire the Soul.

The words “industry-leading,” “family friendly” and “quality products” aren’t feel-good phrases.

They’re company commitments that have endured through Scentsy’s 15 years of operation. “We are very connected to our mission statement, which has been surprisingly resilient for a long time,” says Orville Thompson, Scentsy CEO. “That’s been very consistent through all the different phases of the business that we’ve been through.”

Through the years, Scentsy has demonstrated its agility—the ability of a company to react to changing market forces—in the face of constant change. This agility, combined with the company’s stalwart stability, sets Scentsy apart—since truly agile organizations are both stable and dynamic at the same time.

Last year was a good year for Scentsy, with revenue of more than $472 million—a figure that reflects Scentsy’s second ascension. Scentsy’s revenue went from $140,000 in 2004 to $178.4 million in 2009. Then, in the company’s hyper-growth period during 2011 and 2012, Scentsy climbed to $535 million and $560 million, respectively. But starting in summer 2012, Scentsy’s sales dropped while Glade, owned by S.C. Johnson Company, and others introduced copycat retail products. Since then, Scentsy has steadily climbed upward.

“We have done well in adapting to the changes,” Orville admits. “When we were very small, we dealt with being small. When we tipped and started to go through hyper-growth, we handled fast growth.

When we went into a bit of a dip, we dealt with that well. And our renewal since then, we’re handling that well.”

10

SCENTSY ’S DECADE O F R E V E NUE THIS CHART REFLECTS SCENTSY’S GROWTH THROUGH THE LAST 10 YEARS, ACCORDING TO DATA FROM DIRECT SELLING NEWS:

YE AR

MILLION IN RE VENUE

2019:

$472 M*

2018:

$449 M

2017:

$468 M

2016:

$456 M

2015:

$429 M

2014:

$419 M

2013:

$485 M

2012:

$560 M

2011:

$537 M

2010:

$382 M

2009:

$178.4 M

*DATA PROVIDED BY SCENTSY ON MARCH 2, 2020.

w w w . d i r e c t s e l l i n g n e w s . c o m 6 3

C O M P A N Y

S P O T L I G H T

/ S C E N T S Y

“

Our consultants personalize their product orders, which is something Amazon can’t do.

—HEIDI THOMPSON, Scentsy C0-CEO

S C E N T S Y: AWA R D W INNIN G W OND E R

E

VERY YEAR, the U.S. Direct Selling Association (DSA) recognizes the outstanding programs of DSA member

companies. The DSA Awards honor programs that have empowered independent direct sellers and fueled business processes.

IN THE LAST FIVE YEARS, SCENTSY HAS WON A DSA AWARD EVERY YEAR: n Innovation in Back Office/Sales Support

Technology Award (2019) n Sales and Marketing Award – ¡La Habana! Social

Media/Online Campaign (2018)

PART Y PL AN’S PERSONAL TOUCH As a direct selling company with a party-plan model, Scentsy faces both challenges and opportunities.

One of the challenges is they are more susceptible to retail competition, such as from Amazon, where their products have shown for sale. But the biggest challenge of the party-plan model, according to Orville, is the universal sense of disconnection that pervades our culture today.

“People are less interested in gathering together for a party,” Orville says. “So, we have to reinvent what a party means. We have to devise new ways of creating a personal touch in a changing world.”

However, Scentsy Co-CEO Heidi Thompson sees the personal-touch challenge as an opportunity as well. For instance, Scentsy consultants will often personalize and package their customers’ orders themselves—perhaps by including personal notes and candies.

“Our consultants personalize their product orders, which is something Amazon can’t do,” Heidi says. “I think we have an advantage in that personal touch in a party-plan business model.”

Scentsy’s commitment to manufacturing highquality products has also helped them compete with retailers like Amazon. “People can beat us in price, but nobody has been able to beat us in quality,” Orville says. “Nobody can come close.”

6 4 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

n Excellence in Salesforce Development Award –

Social Selling Tools (2017) n Innovation in Back Office/Sales Support

Technology Award – Continuous Delivery (2016) n Excellence in Salesforce Development Award –

Idea Share (2015) “We challenge our home-office teams to submit their projects for the DSA Awards in the different categories,” says Scentsy CEO Orville Thompson.

“Every team at Scentsy thinks about what they can do that will not only move our company forward but move the industry forward, too. Our intention is to be industry leading.”

LURE OF PRODUCT LICENSING One of the ways Scentsy has stayed agile is by looking for new business opportunities and partnerships.

They found them by licensing their products with major brands such as Disney, Marvel and Lucas Films.

“Over the last few years, product licensing has been very good for us,” Orville says. “It brings in customers whom we have not had before—because those brands have incredible followings.”

T HE S C E N T S Y MIS S IO N To bring value to the world by providing an industry-leading, family-friendly business opportunity selling creative, artistic, high-quality products that Warm the Heart, Enliven the Senses and Inspire the Soul.

w w w . d i r e c t s e l l i n g n e w s . c o m    6 5

C O M P A N Y

S P O T L I G H T

/ S C E N T S Y

“

The two brands— Scentsy and Disney—came together and created incredible energy.

—ORVILLE THOMPSON, Scentsy CEO

As a result of Scentsy’s launch of a new product called the Jeb Skellington Scentsy Wax Warmer, which was part of the Disney Nightmare Before Christmas collection, the company set a record for daily sales.

“The first hour, we sold more of those Jeb Skellington wax warmers than we had sold of any other warmer in its first month,” Orville says. “The two brands—Scentsy and Disney—came together and created incredible energy. That fueled our growth in 2019. It energized our consultants, gave them more hope and excitement, so they went to work. Everything was lifted.”

As a growth strategy, product licensing is working for Scentsy—boosting revenue and morale among consultants. “Licensing our products gets the consultants excited,” Heidi says. “It builds energy among our consultants. We’ve also signed some licensing agreements that we can’t tell you about yet.”

6 6 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

C U LT U R E O F C O N N E C T I O N Rather than targeting any particular generation, Scentsy consistently markets to women in their late 20s, a demographic that is currently populated by millennials but will move to Gen Z in a few years.

“We focus on people in their late 20s—because early millennials are different from late millennials,” Orville says. “We want to give young, stay-at-home moms a valuable means of connecting with their friends and community.”

Scentsy has worked hard to cultivate a familyfriendly culture and thus stay true to their mission. “Our culture is one of connection, love and kindness,” Heidi says. “We want a place where people feel welcome and can be their authentic selves. There are a lot of people in this world who don’t feel like they’re part of something. We seek to create that space for our Scentsy family.”

The connection, love and kindness in Scentsy’s culture lead to hope in a brighter future, Orville says. “We’re a very hopeful place,” he adds, “not just that the business will do well but that the business will serve as a means of making our lives better.”

One of Scentsy’s challenges is translating that sense of connection, love and kindness into foreign markets and languages. “I think that’s because it’s

“

Our culture is one of connection, love and kindness.

—HEIDI THOMPSON, Scentsy CO-CEO

more difficult to demonstrate connection, love and kindness without being able to speak heart-toheart with one another,” Orville says.

Scentsy’s consultants currently sell products in 12 markets, including (in alphabetical order) Australia, Austria, Canada, France, Germany,

Ireland, Mexico, Netherlands, New Zealand, Spain, United Kingdom and the United States.

“We’re growing well in most of our markets,” Orville says. “The United States market is growing so much now. When the U.S. grows, everything gets better. Everything picks up. Europe is also growing very strongly. We could quadruple in Europe quite easily. So, we have a lot of room to grow.” DSN

Lower Costs. Faster Delivery.

19 YEARS

No Cost, No Pressure Shipping Analysis How much can you save? a2bf.com/shippinganalysis

a2bf.com | 866.843.3827 Order Fulfillment • Customer Care • Kitting and Assembly • Returns Management Refurbishment • B2C • B2B • Amazon (FBA, FBM, SFP) • Order Management Technology and Integrations • EDI • Business Intelligence • Transparent Reporting

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

F E A T U R E /

A

F O O T

6 8 D I R E C T S E L L I N G N E W S |

I N

M AY 2 0 2 0

B O T H

W O R L D S

A F OO T IN B O T H W OR L D S DUOLAB, an innovative startup of L’OCCITANE Group, selected direct selling as the platform to launch their latest innovation in beauty. Could this be a

game‑changer for the retail market? Is a hybrid mixture of direct selling and retail the future?

B Y

S A R A H

P A U L K

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

F E A T U R E /

A

F O O T

I N

B O T H

W O R L D S

L’OCCITANE’S VISIONARY broadening of their sales strategies laid a foundation for the launch of their newest innovation and set the stage for a leap into an additional channel that company leaders believe will be a move many competitors will soon

N

seek to emulate.

OVELT Y IS HARD TO COME BY WITHIN THE CROWDED SKINCARE CATEGORY. With so many

brands vying for customers’ attention, how does a company stay competitive? For natural beauty giant L’OCCITANE, innovation is key, and not simply where their products are concerned.

Alain Harfouche, who has worked for L’OCCITANE for the last 16 years, recalls how the company stood out as a trailblazer when it opted to diversify its sales across multiple channels upon its launch two decades ago.

“There were very few brands that did retail on one side and wholesale on the other, e-commerce and business-to-business,” he says. “Twenty years ago, we were one of the few global brands present in six to seven different channels.”

7 0 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

That foundation of fearless diversification was countercultural to what the mainstream luxury brands they shared the market with were accustomed to. “All the luxury brands said we couldn’t be in retail and wholesale at the same time,” Harfouche says.

“We were one of the few brands who could grow successfully in two channels.”

That visionary broadening of their sales strategies laid a foundation for the launch of their newest innovation and set the stage for a leap into an additional channel that the leaders of the L’OCCITANE Group believe will be a move many competitors will soon seek to emulate.

I N N O VAT I O N B Y E X A M P L E That investment in innovation is paying off during this time of global uncertainty and instability. While retail stores are being forced to close their doors to the public and desperately scrambling to build their online connection with customers, L’OCCITANE’s early choice to diversify is setting the stage for the company to flourish in ways that traditional brands can’t tap into.

w w w . d i r e c t s e l l i n g n e w s . c o m 7 1

F E A T U R E /

A

F O O T

I N

B O T H

“

I really had conviction that it would be more powerful for this disruptive innovation in beauty to go through direct selling rather than retail.

— AL AIN HARF OUCHE , Global Managing Direc tor, Duolab

7 2 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

W O R L D S

Like many of its competitors, L’OCCITANE’s sales are roughly 80 percent retail and 20 percent e-commerce with variations occurring dependent upon region. To strengthen and expand the digital side of the brand, they needed to encapsulate the in-person benefits of retail while combining the consistent and far-reaching connections of e-commerce.

So, when L’OCCITANE Group readied to roll out its latest innovative startup called Duolab, a beauty technology system that they believed would revolutionize the industry, they looked to the example of a L’OCCITANE Partner, LimeLife by Alcone.

This cosmetics and skincare-centric direct selling company supercharged its sales through independent distributors, and after launching in 2015, is now 30,000 distributors strong.

“I’ve seen the power of how direct selling works for LimeLife in the U.S. and I really had conviction that it would be more powerful for the product to leverage the direct selling channel rather than retail,” says Harfouche, who is now Duolab’s Global Managing Director. “E-commerce has been growing a lot but it has a limitation in that it does not help you have the full experience. In direct selling, you have someone who can give you the full translation of the product and full trust, which is sometimes missing in a pure e-commerce approach. It’s the perfect link between traditional retail and online for us.”

THE DUOLAB DEVICE:

90 SECONDS TO Skincare FORGET PRESERVATIVES. WITH DUOLAB, CUSTOMERS CAN SELECT THE SKINCARE DOSE THAT MATCHES THEIR NEEDS ON A DAILY BASIS. The Duolab system includes a device, a range of capsules—including three moisturizing bases and five targeted concentrates—and a skin diagnostics tool. The tool assesses the customer’s skin requirements, resulting in a personalized care protocol. Cycle after cycle, the protocol recommends different combinations of capsules for the morning and the evening, considering every customer’s specific needs. A patented emulsification process delivers a freshly blended mono-dose in 90 seconds. The Duolab thermo-cosmetic technology warms the cream to the skin’s natural temperature, thereby boosting its penetration and efficacy.

For LimeLife by Alcone CEO and Founder Michele Gay, this move by such a giant brand serves as an incredible endorsement of the direct selling industry she champions. “Our partners L’OCCITANE are launching one of the most exciting new concepts in beauty and chose the direct sales model to do the launch, as opposed to having it go into L’OCCITANE’s retail stores exclusively,” she says.

“Having a major beauty brand make this choice is really an amazing acknowledgment to the power of direct selling but also the new future of retail. I am constantly screaming ‘direct selling is the future!’ and this is one big piece of proof that it is!”

W H AT IS DUOL A B ?

Duolab’s concept is built on three pillars: personalized skincare, highly natural and clean ingredients that are preservative-free and efficient, and a freshly blended formula. To meet those initiatives, Duolab introduced the Duolab device, which receives capsules of highly concentrated ingredients and then blends them to create an on-demand fresh blend of skincare. Customers purchase the device and then are able to personalize their skincare on a daily basis with individual capsules that can be blended each day at the moment of application. w w w . d i r e c t s e l l i n g n e w s . c o m 7 3

F E A T U R E /

A

F O O T

I N

B O T H

“

I am constantly screaming ‘direct selling is the future!’ and this is one big piece of proof that it is.

— M I C H E L E G AY, L i m e L i f e b y A l c o n e C E O a n d Founder

W O R L D S

For now, all capsules have been developed in partnership with L’OCCITANE en Provence brand and its experts in natural skincare, but the company has plans to expand through partnered innovation, which will invite other beauty brands internal but also external to the L’OCCITANE Group to offer their own line of capsules for use with the Duolab device. Also included with the Duolab device is a small ceramic bin and a postage paid envelope for customers to use as a catch-all for their spent capsule packets. When the bin is full, customers just need to fill their pre-stamped envelope and ship their used capsule packets directly to a recycling center.

The idea is to improve skincare regimens without creating harm for the environment. “Our researches demonstrated that the bathroom is the room in the home where we recycle the least,” Harfouche says.

“We only decided to move forward with Duolab the day we had the right solution for recycling.”

C AT E G OR Y CR E AT ING T HR OUGH I N N O VAT I O N Duolab is just getting started, having launched in the UK mid-February of this year, with plans to launch in the U.S. in early 2021, but Harfouche is already seeing signs that their groundbreaking technology will be an incredible fit for the direct selling industry.

74 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

HARFOUCHE IS already seeing signs that their groundbreaking technology will be an incredible fit for the direct selling industry.

Customer transactions are currently averaging between £300-400, and with such a high transaction rate, distributors are developing exciting visions for their earnings.

That earning potential couldn’t come at a more opportune time for those who have lost jobs or income due to the mandatory lockdowns across the world in the midst of the COVID-19 pandemic. Government assistance will be a helpful Band-aid, but not a long-term viable solution, which is why many retail companies and employees who previously viewed work-from-home opportunities as inferior are now actively seeking ways to generate income from home.

For Duolab distributors and the many active direct sellers across the globe who serve as the voice and face of the brands they represent, this unique moment

in time will serve as an opportunity for them to help their neighbors and friends by providing a solution for their building financial crises.

L’OCCITANE’s competitors scoffed in those early days when the company chose to take a unique approach to their sales strategy, but their early adaptation to a hybrid model approach is reaping great benefits in an era of global remote and homebound work structures that could not have been predicted.

Duolab’s leveraging of the original influencers—direct sellers—who serve as the trusted voice of their brand while using technology as their main connector, is simply a successful extension of the innovative and visionary example set by their parent company two decades ago. DSN

Distanced but never out of touch.

Reach out to us, weʼre here to support you.

hannashea.com ¦ 844.344.7177 ¦ dsn@hannashea.com

w w w . d i r e c t s e l l i n g n e w s . c o m 7 5

WE ARE

PEOPLE

WHO NEED

TALENTED PEOPLE Our industry needs to be constantly innovating and reflecting on how it ATTRACTS, MANAGES AND INSPIRES ITS PEOPLE.

B y H e a t h e r M a r t in

7 6 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

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

F E A T U R E /

T A L E N T E D

This feature is based on the FINDING TALENTED, PEOPLE‑LOVING PEOPLE section in the CORE PRINCIPLES book from the editors of Direct Selling News.

7 8 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

P E O P L E

T

HE CORONAVIRUS is sending our global economy on a detour that will likely be longer than most of us would have predicted six months ago. The effects on production, revenue and employment are already significant, and we may not know the extent of the pandemic’s damage for a while.

The market will eventually recover. It always does.

And companies will need quality employees to ensure that the recovery is strong. While quarantines and closures drastically changed our daily routines, they didn’t alter the fundamentals of finding and keeping those quality people.

In the context of knowing that your immediate priorities are the well-being and safety of your current team members, we give you this primer, for later, on how to find talent who will sustain and grow your organization.

“

Make compassionate but objective assessments of how people are performing and how they fit into your culture . .

NEED SOME FRESH WAYS TO EVALUATE EMPLOYMENT CANDIDATES? These TIPS can help you change up your next new‑hire search.

1 2 3 4

} RECRUITING EXPERTS ADVISE YOU to edit RETENTION FIRST Retaining the employees and distributors you already have will almost always bring you the best financial and organizational return.

There are lots of studies out there on the cost of employee turnover. Some often-cited figures come from the Center for American Progress (CAP), which calculates that the cost to hire a new employee can range from 5.8 percent to 213 percent of that employee’s salary, depending on the position. The average is about 20 percent of a worker’s salary, according to CAP. Not everyone on your team is a keeper, however.

Make compassionate but objective assessments of how people are performing and how they fit into your culture. For example, you may have an employee you like personally, but if you are constantly trying to coach that person up to par, you’re probably taking time away from employees who would soar even higher with just a fraction of that help from you.

On the flip side, you might have a salesperson who’s killing it with the numbers but doesn’t share your company’s values and is creating a toxic environment for other employees. Those people’s high numbers aren’t worth it in the end, either.

your job descriptions to remove language that might have an inherent bias. For example, “Words like ‘ambitious’ or ‘driven,’ can be seen by female candidates as too masculine,” writes New York Times columnist Adam Bryant.

} ONLINE RECRUITING PLATFORM GLASSDOOR

says many job descriptions are cold and inaccessible: “The typical boilerplate description

simply won’t attract the talent you’re looking for.

Job descriptions need to be thought about as if they are a personal interaction that you’re having with each candidate.”

} WHEN IT COMES TIME for the interview, Bryant

suggests taking a candidate to lunch and making note of how he or she treats the wait staff. Or take an applicant on a tour of your office and pay attention to how curious he or she is about your organization and the people you meet along the way.

} AND TRADE PUBLISHER RECRUITING DAILY offers

up creative recruiting examples from major companies like Apple and Google, each of which has challenged potential programmer applicants with coding mysteries to solve on its website.

w w w . d i r e c t s e l l i n g n e w s . c o m 7 9

F E A T U R E /

T A L E N T E D

P E O P L E

R E C R U I T IN G A LWAY S Regardless of how well you retain your best people, turnover is still inevitable. So is growth—especially in the direct selling industry, where rising companies often generate exponential revenue increases that demand capacity increases. We need to be constantly filling our pipelines with candidates for all levels, from the front lines to the C suites.

You have more control over who fills your corporate teams than you do over who self-selects to be a distributor. So, let’s start the discussion about recruiting at the home office.

Don’t assume that who or what worked in the past will work now. Every new hire search is an opportunity to refine or redefine what your goals are for a particular role and to fill it with someone who can exceed or at least build on the accomplishments of the person who held the role before.

Our industry needs to be constantly innovating and reflecting on how it attracts, manages and inspires its people. For example, because our industry is prone to criticism, we tend to hire people—executives, especially—who’ve worked in our channel before. It feels safer to stick with people who get us and trust us. But it also keeps us from the kind of positive disruption that an outsider could bring.

Companies across industry lines believe that increasing diversity is critical to staying competitive.

According to a recent study by Pearson Partners International, a global executive search and leadership consulting firm: “Organizations have realized the business imperative for diversity and ... they are seeking talent beyond the usual suspects who can bring new perspectives and fresh thinking to their businesses and better connect with diverse customers and shareholders.”

That same Pearson study indicates that identifying future leaders is another top priority for organizations in the next five years. You might feel that you have a gut instinct for leadership potential in other people. Perhaps you do. Still, it’s wise to measure candidates against tangible criteria, too.

Consultant and author John Maxwell encourages companies to pay attention to a leadership candidate’s 8 0 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

soft attributes, like passion for the company’s vision, emotional and psychological resilience and an apparent drive to take smart risks. But companies also should ask questions that will give them more concrete data: Does this future leader always complete jobs? Does he or she explicitly take ownership of goals and the outcome, whether it’s a success or failure? Do all eyes naturally fall on this person when it’s time for the group to make a decision?

DISTRIBUTOR PROFILE You’re directly recruiting only a small percentage of the people who keep your company vital. Distributors— most of whom you’ll never meet—are the driving force in our industry. Attracting and keeping them when they basically hire themselves means we have to be as transparent and specific as possible about the type of person who succeeds in direct selling.

Low cost.

High ROI. This is NetSuite: Transform Shatter your limitations with the game-changing solution built specifically for distributors.

Engage Meet your customers everywhere through the power of omnichannel commerce.

Modernize Leapfrog your competitors with technologies built for 21st century businesses.

“

NETSUITE IS THE WORLD’S MOST DEPLOYED CLOUD ERP SOLUTION

Organizations have realized the business imperative for diversity and ... they are seeking talent beyond the usual suspects.

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 the subpage content — P E A R S O N P A R T N E R S I N T E R N A T Ilogo O N because AL 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.”

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

Learn more at a briefing seminar at

One-tagline version of full color logo

Secondary-tagline version of full color logo

One-tagline version of white logo

netsuite.squire.com ( 801) 225-6900

AUDIT · TAX · ADVISORY

w w w . d i r e c t s e l l i n g n e w s . c o m 8 1

F E A T U R E /

T A L E N T E D

P E O P L E

Harvard Business Review recently did a study of gig workers, looking for characteristics that make people successful in a highly decentralized, self-driven channel. HBR found that gig workers have “an intense preoccupation” with being productive and are deeply invested in the outcome of their work. They do this because their income and reputation depend on it and because it wards off the “precariousness” that most independent contractors feel.

The research also shows that successful gig workers: }crave routine

“

Businesses must generate a profit and deliver a return to shareholders ... while also improving the lot of workers, customers, and the communities in which we live.

—DELOITTE

}tend to choose work that connects them to a larger purpose (something direct selling is great at providing) }are likely to find motivation in the combination of uncertainty and limitless possibilities inherent in working independently Direct selling companies also can help potential distributors make the right decision for themselves by being clear about earnings potential and what it will take to reach certain levels within our organizations.

And, of course, we need to make sure we’re attracting people who love the sales process and have not just a talent for but a deep desire to connect with others and determine how our products can improve their lives.

‘A HUM A N F OCUS’ The talented, innovative people you’re looking for are searching for companies with strong people-centered cultures. They want to be part of an organization that is committed to making life better for everyone it touches. These are the companies that will have the first pick of the best and brightest, according to the 2019 Deloitte Global Human Capital Trends report.

“The pressures that have driven the rise of the social enterprise ... are forcing organizations to move beyond mission statements and philanthropy to learn to lead the social enterprise—and reinvent themselves around a human focus,” the report’s authors wrote.

8 2 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

“Leading a social enterprise is about recognizing that, while businesses must generate a profit and deliver a return to shareholders, they must do so while also improving the lot of workers, customers, and the communities in which we live.”

The Pearson researchers agree: “Organizations may miss what it really means to have an authentic employment brand—not just in words and images but in overall work environment and culture. This should be key in both attraction and retention. Understanding culture and how it can drive attraction, retention and innovation is a critical opportunity.”

A LWAY S S E A R C HIN G The search for top talent is never done. Successful organizations recognize that even when they’ve got a dream team, they need to have a dream bench.

Identify and work hard to keep the talented people you have, and keep an eye out for those who will get you even closer to your vision.

“Good to Great” author Jim Collins famously said, “Get the right people on the bus.” He also said, “Great vision without great people is irrelevant.” DSN

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

O N E

V O I C E

/

W O R K I N G

D i re c t s e l l i n g i s sti l l a b o ut b u i l d i n g p e rs o n a l re l ati o n s h i p s—a n d th at i s h a rd w h e n w e a re q u a ra nti n e d a n d exp e cte d to ke e p a s o c i a l d i sta n c e of s ix fe et.

8 4 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

S M A R T

How to Communicate and Keep Calm During COVID-19

D B Y

C R AY T O N

O w n e r

a n d

W E B B

C E O ,

S u n w e s t

C o m m u n i c a t i o n s

IRECT SELLERS ARE in an even more

unique position during this challenging time.

On the one hand, we have significantly evolved as a channel in the digital age, and many of those in our field can operate online and selling through social media for the foreseeable future. They can keep

their businesses growing while staying in touch with customers. On the other hand, direct selling is, at its heart, still about building personal relationships—and that is hard when we are quarantined and expected to keep a social distance of six feet.

w w w . d i r e c t s e l l i n g n e w s . c o m 8 5

O N E

V O I C E

/

W O R K I N G

S M A R T

1

HOW DO YOU KEEP THE RELATIONSHIP FIRES BURNING RIGHT NOW AND COMMUNICATE WHILE ALSO REMAINING CALM? WHAT ARE THE BEST PRACTICES? Here are a few communications tips on when and what to communicate to your employees, customers, colleagues, friends, family, and yes, even your independent sales force, when dealing with a fast-moving and everevolving crisis like COVID-19. } As a public relations and crisis communications firm, we see a lot of organizations that want to wait to say anything until they know they have all the information and know the exact “right” thing to say. In a crisis, while, of course, getting the facts right is crucial, we also recommend not sacrificing the good for the perfect in an effort to communicate to your most important audiences and stakeholders. Those could be your customers, but it most certainly is your employees and perhaps your board of directors. } First and foremost, it’s important to communicate early and often, even if you don’t have all of the details or don’t necessarily have substantive or numerous updates. The people, including your clients and employees, who trust you with their work and livelihood,want to hear from you. Besides, in the absence of any information—even if it’s the same information slightly updated—they will fill the vacuum with rumors and speculation. That can cause fear and even panic. } In times of crisis, it’s critical to reassure your audiences you’re aware of the situation, monitor for updates, and then share any action you would like them to take. It’s always best to begin by reiterating that your priority is the safety and well-being of them and their families. Of course, your actions need to back up and support that sentiment.

I n ti m e s of c ri s i s , l i ke n o w, it ’s b e st to u s e m u lti p l e fo rm s of c o m m u n i c ati o n .

2

HOW DO YOU ADDRESS WHAT’S WORKING AND WHAT’S NOT? Here are some tips on how to communicate accurately and with transparency: } Tough times challenge our willingness to be open and transparent. The best brands and organizations are willing to share openly what’s working and what’s not. They are constantly soliciting new ideas and solutions. Then, rewarding those suggestions—even if they’re not the right ones for the time—in order to generate a culture of openness and candor. } The best leaders and companies are also willing to admit when they don’t know the answer to a question but commit to finding out or circling back when they do know—and then, of course, doing it. It’s far better to be honest upfront and to say, “I don’t know,” than to speculate and recant later.

Trust is key.

“

Make people feel like you’re in touch and in tune with them, even if everyone is working from home or out of the office.

3

PLAN, PLAN AND PLAN MORE. THE BEST WAY TO ENSURE YOU ARE COMMUNICATING PROACTIVELY IN A REAL-TIME AND ONGOING CRISIS LIKE COVID-19 is to begin planning for what’s around the next corner.

While it’s difficult to think ahead when your head is down during a crisis, we must. The best brands and organizations were considering and testing their business continuity plans and work from home systems 3-4 weeks ago. Now, if not very soon, is the time to begin thinking about the aftermath—what will the community, country and world look like following the crisis? How will your brand survive, rebound or thrive?

Business continuity is one thing, but with the impact on the economy, many businesses will experience devastating impacts. How will your business tell its story when relief to this crisis arrives?

We need to communicate through the noise. Here are some suggested tools to help your message get through:

} In times of crisis, like now, it’s best to use multiple forms of communication. People have so much information coming to them so fast. If you want them to pay attention, consider email updates while also planning a weekly or biweekly conference call. Make people feel like you’re in touch and in tune with them, even if everyone is working from home or out of the office. } Social media is also a great way to communicate with your customers, investors, and other key stakeholders who have a vested interest in your business. Video is always compelling—if it’s short.

w w w . d i r e c t s e l l i n g n e w s . c o m 8 7

O N E

V O I C E

/

W O R K I N G

S M A R T

Introducing Marketing Services from SCP If it's Marketing for a Direct Sales Company, We Get It!

4

YOU MAY BE ASKING YOURSELF; HOW DO I RESPOND IF WE GET A CALL FROM A REPORTER? } There should always be a plan for dealing with the media. A crisis is the time to test your media protocol and process. If you don’t have one, get one—ASAP. Think about who should always be the “center of the wheel”—one department or person assigned to working with the media. Everyone should know organization-wide that all media inquiries and outreach should run through that person or team. No exceptions.

It's not enough for today's direct selling company to just make a great product and whip together an impressive compensation plan.

You've got to stand out on the marketing front to attract today's

} It’s critical that your messages to the media align with the messages you’re sending to your most important audiences—your customers, employees, leaders and board of directors. But the messages also must be customized for each audience while remaining consistent. It can seem disingenuous if you say the exact same thing with the exact same verbiage to all your stakeholders. And yet, consistency is key.

consumer (and distributor). But bringing the expertise and experience to market well in today's environment is tough to keep up with (and budget for).

SCP has you covered! Whether you need help on a single project, or need to bring on an entire marketing department to partner with, our team knows how to make it happen, quickly and affordably.

We're a full-service marketing agency that specializes in direct

} When dealing with the media, it’s also imperative to plan the key messages you want to relay. This is your organization’s opportunity to tell your story and put your best foot forward. It takes training and practice to learn how to answer a reporter’s questions thoughtfully while ensuring you’re only sharing the messages you’ve planned and practiced communicating. DSN

sales support, with services including ...

• Graphic Design • Copywriting

• SEO & Online Reputation Management

• Website Design & Front-End Development

• Packaging Design

• Social Media Management

• Campaign Oversight

• Video Production

• Online Advertising

• Strategic Marketing Roadmaps

CRAYTON WEBB IS THE OWNER AND CEO OF SUNWEST COMMUNICATIONS, A DALLAS, TEXAS BASED PUBLIC RELATIONS AND PUBLIC AFFAIRS FIRM. PREVIOUSLY,

Need some help with your marketing?

Find out more at 8 8 D I R E C T S E L L I N G N E W S | M AY 2 0 2 0 StrategicChoicePartners.com/WeGetMarketing

HE WAS THE VICE PRESIDENT OF CORPORATE COMMUNICATIONS AND CORPORATE SOCIAL RESPONSIBILITY FOR MARY K AY, INC.

O N E

V O I C E

/

D S A

M E S S A G E

#Community is #StrongerTogether

E

ntrepreneurs are nimble and agile.

They pivot and adapt to be successful.

These are the traits that are needed now more than ever before.

As direct selling entrepreneurs face today’s COVID-19 crisis, resilience is our strongest trait. During these trying times, direct sellers’ personal relationships—with customers, fellow members of the field, and among the channel’s visionaries—make us our communities’ connectors.

Our ability to react with agility makes us adaptable; we can positively impact the communities we serve with near immediacy.

Notwithstanding the challenges the crisis so obviously presents us (and maybe because of them), the direct selling channel is clearly more relevant today than ever before. No matter your role across the direct selling spectrum, self-isolation challenges are universal, bringing our community the shared experience of social distance. Still, we continue to innovate, and we do so as few businesses and few business models either do or can.

The direct selling field represents the homebased businesses that today are more important than ever to support. Our field can provide what everyone needs right from their homes.

And, shopping local with them is supporting local businesses.

As direct sellers, we understand the strength that comes from communities. Within our own individual communities, we are leaders who understand that we are stronger together when we support one another and #ShopDirect from your friends and neighbors.

Almost every day, I see evidence of direct sellers’ strength. Their innate ability to lead and

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

offer support—from our homes to our neighbors’ homes—is a testament to how direct sellers make a positive difference in neighbors’ lives.

It was weeks ago when I learned of Amway’s launch of what I consider to be a portrait in agility as it produced urgently needed hand sanitizer to medical professionals in its hometown of Ada, Michigan, and the Greater Grand Rapids area. Isagenix International and the company’s ISA Foundation is working with food banks and charity partners to deliver hundreds of thousands of meals and snacks across North America. SeneGence, New Avon and Mary Kay Inc. also reconfigured their supply chains to work in accordance with FDA guidelines to manufacture and bottle hand sanitizer.

Other DSA members are looking toward their corporate mission to inspire engagement in meaningful ways. Damsel in Defense has given distributors renewed community strength centered on the company’s mission: one that seeks to equip, empower, and educate women to protect themselves and their families.

Creative, fearless leadership is what I, along with the entire DSA team, is seeing from member companies and individual distributors since mid-March. We are working from home these days, and now is the moment for us to champion our distributors’ homebased businesses.

Email me at jmariano@dsa.org with stories of what your company is doing to be a part of the solution and how you are encouraging distributors to be visible in their #Community and show how we are #StrongerTogether.

We are all in this together, and DSA is here for the entire direct selling community. DSN w w w . d i r e c t s e l l i n g n e w s . c o m 8 9

HYPERWALLET SYSTEMS INC.

575 Market Street, Ste. 3650 San Francisco, CA 94105 877-687-4602 www.hyperwallet.com

Pay the planet with Hyperwallet. Branded commission solutions, global payout choice, distributor support tools, loyalty programs, and more.

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.

9 0 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

PROPAY INC. 3400 N. Ashton Blvd., Ste. 200 Lehi, UT 84043 888-227-9856 www.propay.com Reliable global payments. Pay distributors in USD or local currencies and accept payments from them. Bank deposits & custom debit cards.

STRATEGIC CHOICE PARTNERS

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

C O M M I S S I O N P AY M E N T S E R V I C 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 METRICS GLOBAL, INC 1160 N. Town Center Drive, Ste. 100 Las Vegas, NV 89144 888-891-5445 www.metricsglobal.com Grow your business globally with cash advances, mobile payments, multi-currency processing, global gateway & more. 99% client retention!

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.

PROPAY INC. 3400 N. Ashton Blvd., Ste. 200 Lehi, UT 84043 888-227-9856 www.propay.com Global processing in 150+ international currencies. Direct JCB integration.

Encryption & Tokenization. Micro merchant and mobile solutions.

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

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.

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.

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

World-class convention hotels in destinations around the world. Discover the magic of Disney for your meetings, events or incentives.

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

CANADA CARTAGE LOGISTICS SOLUTIONS

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.

Single Source Solutions, Order to Delivery B2C Solutions, On-Time Order Fulfillment, Real-Time Inventory Visibility, NHP Site Compliant, SOP/GMP Compliant, and locations across Canada.

A2B FULFILLMENT

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

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

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

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.

VISIBLE SCM

1615 Clark Blvd.

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

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

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

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

E-COMMERCE FULFILLMENT

DISNEY DESTINATIONS P.O. Box 10,000 Lake Buena Vista, FL 32830-1000 321-939-7129 www.disneymeetings.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 E S T I N AT I O N S / E V E N T V E N U E S

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

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

w w w . d i r e c t s e l l i n g n e w s . c o m 9 1

MULTI IMAGE GROUP 1701 Clint Moore Road Boca Raton, FL 33487 800-523-2682 www.mig.cc A full-service event production company specializing in helping DSA’s tell their stories. Creativity + Technology = Unforgettable Experiences.

INCENTIVES/RECOGNITION

As the “next generation go-to” industry leader, we artfully envision, craft and transform your story into high profile one-of-a-kind memorable experiences that motivate, educate and celebrate your audience and deliver customized results.

E VENT PRODUCTION

SOLOMON GROUP 825 Girod Street New Orleans, LA 70113 504-252-4500 www.solomongroup.com

ATLANTIS PARADISE ISLAND 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.

SOLOMON GROUP

E.A. DION, INC.

825 Girod Street New Orleans, LA 70113 504-252-4500 www.solomongroup.com

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

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

Solomon Group produces the key moments of now that live on as the memories of the future for the world’s most relevant, culturally significant brands and organizations.

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

KATAPULT EVENTS 5840 Red Bug Lake Rd, Ste. 140 Winter Springs, FL 32708 407-915-9060 www.katapultevents.com Fresh. Exciting. Bold. Your field deserves the best and we help you deliver. Out-of-the-box creative production with experienced show management. We execute on budget and make you look AMAZING!

9 2 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

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

INCENTIVES/RECOGNITION

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

E XECUTIVE RECRUITMENT

E VENT PRODUCTION

E VENT MANAGEMENT

Vendor Directory

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

MARK E TING/BR ANDING

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

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.

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.

SMART OFFICE SOLUTIONS, INC.

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

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

ROYAL CARIBBEAN INTERNATIONAL

MOBILE APPS & COMMERCE

INCENTIVES/RECOGNITION

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

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

SOCIALSALES.IO

DIRECTSCALE

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

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

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

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

SUCCESS PARTNERS

SUCCESS PARTNERS

DIRECTECH LABS

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

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.

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!

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

w w w . d i r e c t s e l l i n g n e w s . c o m 9 3

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.

JENKON 203 SE Park Plaza Drive, Ste. 250 Vancouver, WA 98684 360-256-4400 www.jenkon.com Corporate & Sales Force software for 21st century world-leaders in global direct selling. Cloud-based & on-premise solutions are available.

INFOTRAX SYSTEMS

NEXIO

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

727 N 1550 E, 3rd Floor Orem, UT 84097 1-877-551-5504 www.nexiohub.com

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

Nexio manages the chaos of payments offering: • Faster roll out for distributors or partners •S implifies payment processing for corporations

TA X S E R V I C E S

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

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

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

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

INTERNATIONAL DIRECT SELLING TECHNOLOGY CORP.

THATCHER TECHNOLOGY GROUP, LLC

1208 E. Kennedy Blvd., Ste. 222 Tampa, FL 33602 800-803-7144 www.idstc.com

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

Global Operations Management Software.

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

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

9 4 D I R E C T S E L L I N G N E W S |

M AY 2 0 2 0

TOOLS, RECRUITING & TR AINING

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

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.

The SUCCESS Partners’ NOW app drives results for direct selling companies making it incredibly simple to connect, communicate and convert.

“The data doesn’t lie. The thousands of video shares we get on a weekly basis from our field is generating new enrollment.”

—JEREMY WARDLE, VP Sales, New U Life

Company Snapshot: New U Life •

Super-hero product: SOMADERM GEL accounts for large majority of revenue

•

Phenomenal growth: Experiencing record growth in 2019 and again in Q1 2020

•

The popular crowd: Thousands of new distributors are joining each week

•

The next big step: New U Life adding sampling functionality

REQUEST A DEMO! CONTAC T US TODAY app@successpartners.com / 1.800.752.2030 / successpartners.com

The Power of NOW

The preferred mobile app of the fastest-growing companies in direct selling today!

N O W A P P F E AT U R E S • • • • • • • •

Full CRM Contextually Aware Interactions Media Sharing Sampling Onboarding Data Analytics Communications Calendaring

NEW Features • Shoppable Video: Live or Recorded • Integrated E-Commerce Suite • Customer App and much more!

Connect NOW Communicate NOW Convert NOW Grow NOW Prospect NOW Share NOW Shop NOW Sample NOW Go live NOW Onboard NOW Train NOW Results NOW Put the power of NOW to work for your business, your distributors and your customers!

REQUEST A DEMO! CONTAC T US TODAY app@successpartners.com / 1.800.752.2030 / successpartners.com

Bahrain Andorra Bangladesh Armenia Bhutan Austria Brunei Azerbaijan Burma Belgium Cambodia Bosnia and HerChina zegovina East Timor Bulgaria Fiji Croatia India Cyprus Indonesia Czech Republic Israel Denmark Japan Estonia Jordan Finland Kazakhstan France Kiribati Georgia Korea, South Germany Kuwait Greece Kyrgyzstan Hungary Laos Iceland Malaysia Ireland Maldives Italy Marshall Islands Latvia Micronesia Liechtenstein Mongolia Lithuania Nauru Luxembourg Nepal Macedonia New Zealand Malta Oman Moldova Pakistan Monaco Palau Montenegro Papua New Netherlands Guinea Norway Philippines Poland Qatar Portugal Russian Romani Federation San Marino Samoa Serbia Saudi Arabia Slovakia Singapore Slovenia Solomon Islands Spain Sri Lanka Sweden Syria Switzerland Tajikistan United Kingdom Thailand Vatican City Tonga Antigua & Turkey Barbuda Turkmenistan Argentina Tuvalu Bahamas United Arab Barbados Emirates Belize Uzbekistan Bolivia Vanuatu Brazil Vietnam Canada

Dominican Republic Ecuador El Salvador Grenada Guatemala Guyana Haiti Honduras Jamaica Mexico Panama Paraguay Peru Saint Kitts & Nevis Saint Lucia Saint Vincent & the Grenadines Suriname Trinidad & Tobago United States Introducing a seamless payment platform Uruguay Algeria bridging all your sales channels!

Angola Benin Botswana Burkina Cameroon Cape Verde Maximize your global acceptance and Chad process payments with: Comoros Djibouti Unrivaled omnichannel acquiring in Equatorial Guin170+ countries & 170+ currencies ea Eritrea 140+ worldwide Alternate Ethiopia Gabon Payment Methods & Mobile Wallets Gambia Ghana Guaranteed 99% transaction Guinea responses within 1 second and Kenya Lesotho 99.995% platform uptime.

Liberia Madagascar Malawi Mauritania Mauritius Morocco Mozambique Namibia Niger Nigeria

Now the world can be yours.

PUT YOUR BEST FOOT FORWARD Hurdles getting in your way? FlexCloud helps you keep better tabs on distributor process, add backed functionality to existing sites, create your own reports and much more—all in one platform. Keep your momentum going with a system that boosts your cadence.

Learn how a better business starts here: www.info.infotraxsys.com/flexcloudwhitepaper

801.431.4900 | infotraxsys.com