GRASSROOTS ACTIVISM / THE POWER OF A PEOPLE BUSINESS
STARTUP STORIES / LESSONS LEARNED FROM THE GROUND UP
GENERATIONAL INSIGHTS / IMPORTANT—AND BRAND NEW—INTERNATIONAL FINDINGS
LIFEWAVE / BRINGING WELLNESS TO LIFE
CHARLIE SANBORN | VP OF SOFTWARE ENGINEERING, “ YOUNG LIVING
The Exigo commission run takes about a fifth of the amount of time that ours historically did.”
From a straight ROI perspective, we're going to get a very strong ROI going with Exigo. There are no ifs, ands, or buts about it.”
STEVE MCCARTHY | VP OF FINANCE/CORPORATE CONTROLLER,
RODAN + FIELDS
Working with Exigo helped us put all our international regions onto one platform where we could see all the activity in near real time.”
BILL JARM | PRESIDENT OF OPERATIONS, NEOLIFE
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Join us for networking opportunities, keynote sessions, hands-on workshops, a new services company session and more for this transformative in-person event.
Monday, September 23Wednesday, September 25, 2024 Irving Convention Center at Las Colinas, 500 W. Las Colinas Blvd., Irving, TX 75039
Direct Selling University is known for bringing together many of the top innovators and strategists from the channel in a single event. Take a look at these confirmed speakers for our Fall 2024 event, and keep checking for even more additions.
STUART JOHNSON CEO, Direct Selling Partners, DSN & NOW Tech
HEATHER CHASTAIN Founder & CEO Bridgehead Collective
RYAN GOODKIN Director of Product Development LiveGood
BARB PITCOCK CEO Frequense
KINDRA HALL Storytelling Expert, Keynote Speaker and Best Selling Author
DAN DEBNAM Founder & CEO Conturae
GORDON HESTER Chief Sales Officer, Americas PM-International
DAVID SCHMIDT CEO & Owner LifeWave
JOHN ADDISON Founder & CEO Addison Leadership Group
SHAWN MEAIKE President Family First Life
A. BEAS Chief Sales Officer, President of Sales Zinzino
BRETT DUNCAN Co-Founder and Managing Partner Strategic Choice Partners
BLAKE MALLEN Billion-Dollar Brand Builder & Community Marketing Strategist | Podcast Host
SUSANNAH SCHOFIELD OBE Director General DSA UK
GLENN SANFORD CEO eXp Realty
BEUTLER CEO SUNRIDER
MICHAEL FALLQUIST CEO Think Energy
WAYNE MOOREHEAD Marketing, Brand Strategy & Direct-to-Consumer Industry Expert | Podcast Host
STEPHEN WHITWELL Vice President, Field Development NeoLife
ROBERT STEVANOVSKI Founder ACN
Top Field Leader Vida Divina
FREDRICK CEO Mannatech
STEVE PERKINS Founder & CEO Healthy Home
More updates to come!
VARVARO COO inGroup
This deep dive into legal and regulatory issues will cover a wide range of top-of-mind subjects, including recent trends in compensation plan regulations, the impact of changes to the enforcement of non-compete agreements, recent FTC activity and much more. Additional registration is required (but still no cost for active company members).
Monday, September 23, 1-4 p.m.
Back by popular demand! This updated Al Workshop hosted by Blake Mallen will focus on a wide range of new tools and applications of AI for sales, marketing and training, and is ideal for CSOs, CMOs, training and creative team members.
Tuesday, September 24, 5:30 - 8 p.m., in the Main Ballroom
Tailored for companies in the services sector (e.g., financial services, travel, utilities, etc.), all registrants are welcome to join this invaluable bonus session focusing on insights and learnings from direct selling's top executives in the services sector.
Wednesday, September 25, 1-5 p.m., in the Main Ballroom
An invitation-only event that brings together founders and CEOs for a full day of open discussion and deliberation on the subjects that are top-of-mind for today's direct selling executive. It's the ultimate mastermind experience!
Monday, September 23, 9-4 p.m., Private Event; Invitation-Only
Experience unparalleled learning, networking, and growth opportunities at DSU Fall 2024. Join us as we continue to celebrate our 20th year with bigger and better events designed to propel your success in direct selling.
Registration is open!
Our Direct Selling University for Fall is the in-person event you don’t want to miss! Visit DSNEvents.com/fall-2024 for speaker updates and more.
Scan the QR Code to Register BE A PART OF THE
Startup Stories BY
SARAH PAULK
The People Power of Grassroots Advocacy BY
BETH DOUGLASS SILCOX
Amare’s New Chapter BY JENNY VETTER
International Focus: Generational Insights The European Tour BY HEATHER CHASTAIN SPOTLIGHTS
Company Spotlight: LifeWave Bringing Wellness to Light BY JENNY VETTER
Young Company Spotlight: Think+ Energy Fresh Energy for the Industry BY JENNY VETTER
EXECUTIVE Q&A / AdvoCare CEO Christina Helwig BY PATRICIA WHITE FOR YOU / FOR YOUR FIELD / Your Essential Monthly Motivation BY CHELSEA HUGHES THE SHIFT / Top Insights from a Season of SHIFT BY BLAKE MALLEN
BY BETH DOUGLASS SILCOX
Direct Selling News (ISSN 15546470) is published ten times a year in January, March, April, May, June, July, September, October, November, and December by Direct Selling Partners, 5717 Legacy Drive, Suite 250, Plano, TX 75024. Periodicals postage paid at Lake Dallas, TX and additional mailing offices.
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All rights reserved. Material may not be reproduced in whole or in part in any form without written permission. No statement in this publication is to be construed as a recommendation to buy or sell securities or to provide investment advice.
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DIRECT SELLING NEWS
Serving the Direct Selling and Network Marketing Executive Since 2004 A Direct Selling Partners Company
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For your convenience, we have compiled a list of our display advertisers. When contacting these companies or those in our Supplier Directory (starting on page 98), please let all of our valued advertisers know that you saw them in DSN .
What part of your business would benefit by bringing in outside expertise to help your team be more efficient and effective? Momentum Factor 512.690.2134 / MOMOFACTOR.COM
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Exigo 214-367-9933 / EXIGO.COM
PAGES INSIDE FRONT COVER, 28
NOW TECH
310-428-9936 / NOW-TECH.COM PAGES 1, 30, INSIDE BACK COVER
Nexio 877-551-5504 / NEX.IO PAGE 23
Momentum Factor 512-690-2134 / MOMOFACTOR.COM PAGE 25
Katapult 407-915-9060 / KATAPULTEVENTS.COM PAGE 12
Metrics Global 702-757-9600 / METRICSGLOBAL.COM PAGE 17
Flight Commerce
813-277-0625 / FLIGHTCOMMERCE.COM PAGE 15
Teqtank 844-605-9624 / TEQTANK.COM PAGE 19
InfoTrax 801-431-4900 / INFOTRAXSYS.COM PAGES 29, BACK COVER
Thatcher Technology Group
630-696-4545 / THATCHERTECH.COM PAGE 31
World Pay
GETINFO@FISGLOBAL.COM / WORLDPAY.COM PAGE 21
Strategic Choice Partners
504-252-4500 / STRATEGICCHOICEPARTNERS.COM PAGE 39
Squire 801-225-6900 / SQUIRE.COM/NETSUITE PAGE 55
Quickbox
720-990-5642 / QUICKBOX.COM PAGE 65
Association for Entrepreneurship 844-750-5927 / AFEUSA.ORG PAGE 92
Direct Selling Association
202-452-8866 / DSA.ORG PAGE 96
i-payout
DISCOVER@I-PAYOUT.COM / I-PAYOUT.COM PAGE 35
THANK YOU TO OUR DSU EUROPE SUPPLIER SPONSORS!
Our mission is to serve, educate and edify the channel with daily breaking global news, emerging trends and powerful stories, made possible through the generosity and support of our Premier Supplier Partners. Thank you for your dedication to the direct selling channel! For information on how to become a Fall DSU Sponsor, email pwhite@directsellingnews.com.
It’s a question we answer definitively in this issue—the importance of personal relationships.
In two articles this issue, we take a deep dive into the importance of activism at this particular moment in time for the channel. Whether it’s companies building mutually beneficial relationships with elected officials at a corporate level or helping their distributors contribute at a grassroots level, it is imperative that the industry acts in a united, impactful way as we come under increasing scrutiny. Companies have banded together to form coalitions as well as to educate and inspire their fields. In this issue, we share what that looks like, why it’s important and how you could get involved.
We have two other features this month I’m sure you will enjoy. We take a look at some of the most successful startups in the channel and examine not only why they have found success, but what they have learned from the inevitable bumps in the road. And Heather Chastain reveals some surprising insights from her latest generational research, this time focusing on Europe.
In other content, we highlight LifeWave’s astonishing growth; share Think+ Energy’s amazing trajectory; and interview
AdvoCare’s Christina Helwig and Amare Global’s David Chung.
As we go to press with this issue, we have just wrapped up our inaugural international event—DSU Europe—in Tring, UK. It was wonderful to meet so many new people and reconnect with old friends. It struck me that while this is a global industry with unique regional challenges and idiosyncrasies, so many of our opportunities and challenges transcend borders. DSN remains committed to serving this industry with a global perspective. I can’t wait to see each of you again in September when we host the Fall DSU event back home in Irving, Texas.
At DSN, we strive to be your daily resource for global news impacting the direct selling channel. Make sure to sign up for our free resources like the weekly dashboard email which delivers a week’s worth of news in a quick 15-minute read each Sunday. You can also sign up for free text alerts by becoming a member of our VIP Community where you’ll always get the top stories first and fast!
All the best,
Patricia White | Publisher | pwhite@directsellingnews.com
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As a DSN Supporter, you and your entire corporate team have 24/7 access to over 350+ TED-style lessons and podcasts from innovative industry leaders spanning every business function and area, with more presentations added throughout the year. The DSU On-Demand Library is exclusively for Supporter companies.
Your entire corporate team can learn insights and best practices on everything from marketing, strategy, leadership and more. The convenient search feature allows you to search by company name, speaker name or topic category.
The DSU On-Demand Library is an excellent onboarding resource for new employees and ongoing education for existing employees.
The DSU On-Demand Library is full of relevant insights and best practices from today’s subject matter experts and executive leaders from innovative up-and-coming companies to prominent direct selling brands.
Become a Supporter Company for complete access. Plus, enjoy so many other Supporter perks.
n A nnuity.com, Inc. Secures $15.7 Million Seed Funding
n BODi Announces Retail Shareholder Rewards Program
n Zinzino Expands Reach in Europe with Acquisition of Xeliss Assets
n MyDailyChoice Forms Strategic Alliance with DreamTrips International
n Beautycounter Postpones Relaunch Until Late 2024
DIRECT SELLING UNIVERSITY (DSU) HAS GONE GLOBAL. For the first time, DSU hosted European executives, industry titans, and subject matter experts and visionaries for an in-person masterclass event in the United K ingdom.
Held at the luxury Pendley Manor Hotel in Tring, the three-day event featured networking opportunities and deep dives on some of the hottest topics and biggest challenges facing executives today. More than 150 people from 55+ companies attended the TED-style talks to hear from 23 expert speakers who offered informative sessions on AI, social media marketing, compensation plan trends, growth strategies, generational patterns and more.
“The energy and enthusiasm at our inaugural DSU Europe event were so gratifying,” shared Stuart Johnson, Founder and CEO of Direct Selling News. “Our mission at DSN is to be the leading global news, education and networking resource for direct selling executives around the world. We believe in the channel, and we believe in bringing great content and insights to the leaders that make this channel so powerful. DSU Europe was a wonderful way to introduce our brand to the companies and executives that make Europe such a strong market for direct selling.”
MORE THAN 150 PEOPLE FROM 55+ COMPANIES attended the TED-style talks to hear from 23 expert speakers.
Joni Rogers-Kante credits her commitment to consistency, devotion to family, and abiding faith to achieving success as a business and family woman.
Joni has paved a path toward a life of abundance, and she devotes her life to empower others to find theirs, too.
For Joni, her company SeneGence stands for more than its cutting-edge and highly desirable beauty products. Its causedriven purpose is to promote more women
in business and care for communities in need through its nonprofit. Not only has Joni built a rewarding global business, she is also changing lives closer to home.
Joni passionately protects rights of independent entrepreneurs in the direct selling industry and works to improve the economic lifeblood in her home state of Oklahoma.
Joni believes accomplishment is unique for everyone, and we are all here with
our own important purpose. She says a fulfilling life is made with the four E’s: Earn, Evaluate, Evolve, and Explore. When we value and respect each other, we will all move forward together.
We are proud to partner with Joni and those like her who consistently prove that hard work and courage are rewarded with limitless possibilities. After all, people are our greatest strength.
AT THE GET REAL 2024 conference in Nashville, Tennessee, Neora, through its philanthropic organization the Neora Ripple Foundation, demonstrated its commitment to tangible acts of compassion and generosity by raising more than $70,000 for Big Brothers Big Sisters of America. The funds, which exceeded the event’s original goal of $50,000, will support at- risk youth through mentorship.
Neora creates philanthropic opportunities like this throughout the year, including donations from the Neora Gear Store, individual fundraisers, corporate fund matching and more, to ensure that the mindset of putting others first is woven into the company’s core value that leaders are givers, not takers.
“We create an environment where, if you’re with us and become part of our culture, you’re going to become a better person,” said Jeff Olson, Neora Founder and CEO. “You’re going to feel better about yourself, because you make a difference.”
QNET HOSTED its biannual V-Malaysia event in Penang for the 12th time, welcoming more than 9,000 people from over 30 countries.
This year’s theme of “Unstoppable” introduced product launches within QNET’s Amezcua and luxury Swiss watches product lines, provided networking opportunities and training sessions and featured a special appearance by Indian actor R. Madhavan.
The company also emphasized its commitment to ecofriendly practices, ensuring the gathering was free of single-use plastic and promoted plant-based food selections as well as offset the event’s carbon footprint by planting 4,000 trees through a partnership with the Forestry Department of Malaysia.
“This event is not just a convention; it is a celebration of our commitment to our distributors and customers worldwide,” said Trevor Kuna, QNET Chief Marketing Officer. “We look forward to another year of remarkable experiences and success stories.”
N A COLLABORATION with the Arbor Day Foundation and Keep Lewisville Beautiful, Mary Kay Inc. celebrated its 60th anniversary with a tree planting event that added 60 native trees to Railroad Park, a connected system of trails and waterways just four miles from the company’s Richard R. Rogers Manufacturing and R&D Center. The trees planted in this area will directly impact the local Lewisville community by providing shade in community spaces and will benefit the ecosystem of the Trinity River watershed.
“Through partnerships with organizations like the Arbor Day Foundation, Mary Kay is making positive environmental impact in ecosystems where we operate around the world,” said Ryan Rogers, Mary Kay Inc. CEO and grandson of Mary Kay Ash. “But change starts in your own backyard. We enjoyed ‘sprucing’ up the community by planting trees that will benefit local families for generations to come.” DSN
For the full articles, visit directsellingnews.com/ insights
According to the Direct Sellers Association of Canada, Canadian direct selling companies are planning to “get back to basics” in the coming months and years. Recruitment and retention have long been an important part of the direct selling model in Canada, but DSA Canada officials say leaders in the country are placing a renewed focus on these basics to build a solid foundation for new business growth.
A few of the fundamental components of expanding a brand’s independent sales consultant numbers include the leveraging of technology and social media; ramping up in-person events; providing targeted training; and offering sales accelerator programs. These practices and more
were key topics of the DSA Canada Connect 2024 Conference, which provided the latest Canadian industry data and offered networking opportunities for industry leaders and peers.
“Everybody keeps saying that this industry is cyclical, but the tools and tactics needed to get out of each dip in the cycle are different,” said Peter Maddox, DSA Canada President. “What worked before won’t necessarily work this time, so it is important for our organization to provide a forum to help members discuss challenges and find solutions.”
For those considering an entrance into the Canadian market, creating a strategic plan that is informed by Canada-specific industry statistics and trends is essential. DSN
For the full articles, visit directsellingnews.com/ announcements
CHRISTINA HELWIG ADVOCARE
CHIEF EXECUTIVE OFFICER
AdvoCare International, LLC announced the promotion of Christina Helwig to the role of Chief Executive Officer. Helwig joined the AdvoCare leadership team in 2013 and has served in a number of executive roles across divisions within the company. Most recently, in her role as Chief Marketing Officer, Helwig led the company’s marketing efforts to explore new distribution channels for its health and wellness products.
“It’s become an anchor for us to say that we have to be in a constant state of evolution as a brand,” Helwig said. “Even though we faced great change five years ago, I think ‘change’ can be a scary word to people. I’d like to really just challenge us internally and within our distributor base to see a philosophy of change as part of every day. I want us to consider how we can look at change as a good thing, rather than a negative.”
For DSN's exclusive interview with Christina, please see page 72.
SHANE WARE PARTNER.CO
CHIEF FINANCIAL OFFICER
Partner.Co announced Shane Ware has been named Chief Financial Officer. Ware is a licensed CPA and has more than two decades of specialized experience, including five years in the CFO role with another company.
Ware will now be responsible for Partner.Co’s financial strategy and its implementation across departments, and will work to unify the company’s global financial systems and processes.
“We had a banner first year, but now we’re setting our sights on greater heights,” said Darren Zobrist, Partner. Co Chief Executive Officer. “With Shane coming on board, I’m confident we’re getting the best of the best to help lead us from a financial point of view.”
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We’re excited to announce we are consolidating brands with our parent company, Complete Merchant Solutions (CMS). Consolidating our services under the Nexio brand enables us to simplify processes and optimize the services we provide. nex.io/power
DIEGO GAXIOLA BEFRA BOARD OF DIRECTORS
Betterware de México, S.A.P.I. de C.V., now known as BeFra, announced Diego Gaxiola has been named to the company’s board of directors. With this appointment, BeFra’s board now consists of 11 members, eight of whom are Independent Directors.
Gaxiola is currently the Global CFO for Grupo Bimbo, a leading global baking company. He has extensive experience in corporate finance, having led finance teams for several well-known brands.
“We are delighted to welcome Diego to our Board,” said Luis G. Campos, BeFra Executive Chairman of the Board. “Diego is a proven leader with over 20 years of experience in financial and administrative roles at leading consumer companies, and he possesses deep knowledge of both the Mexican and global consumer markets. We look forward to benefiting from Diego’s expertise and are confident he will provide valuable perspectives as we advance our domestic and international growth strategies.”
NEVENA SREBREVA PAMPERED CHEF CHIEF EXECUTIVE OFFICER
Pampered Chef announced the promotion of Nevena Srebreva to the role of Chief Executive Officer. Srebreva originally joined Pampered Chef as Chief Field and International Officer and was an integral part of leading the company’s expansion in Europe. She brings 25 years of experience in the direct selling industry.
“I’m both honored and excited to serve as CEO for this remarkable company that has been enriching lives for nearly 45 years,” Srebreva said. “We’re a company that believes in the power of coming together for shared mealtimes. I’ve seen firsthand the passion our consultants have for our purpose and how, in helping others, they have found joy, flexibility and a community they are proud to be a part of.”
JIM M. SINGER MONAT
VICE PRESIDENT OF RESEARCH, INNOVATION AND MICROBIOLOGY
MONAT Global Corp announced the appointment of Jim M. Singer to the role of Vice President of Research, Innovation and Microbiology of B&R Products, Inc., the company’s manufacturing facility in Florida. Singer has held leadership roles at well-known beauty brands, including L’Oréal and has been granted 117 patents throughout his career.
“Jim brings his passion for the beauty industry to his new role leading product innovation at MONAT,” said Ray Urdaneta, MONAT Co-Founder and CEO. “He has extensive experience overseeing multiple global beauty brands and influencing the direction of technical strategy. We’re delighted to have Jim on board as we embark on our second decade of providing premium products.” DSN
A CURATED RESOURCE TO HELP YOU FIND STRATEGIC BUSINESS PARTNERS SPECIALIZING IN DIRECT SELLING.
THE CHANNEL IS EVOLVING RAPIDLY—companies and executives must stay ahead of emerging trends and technologies to build for the future. But it can be time - consuming and hard to find the right suppliers to partner with.
That’s why we’ve developed The DSN Guide. In each issue, The Guide includes curated lists by category of expertise and service. These suppliers currently serve the channel—they understand the unique challenges and opportunities that come with direct selling and can help you implement your intiatives.
ByDesign Technologies Tampa, FL
Cheddar Up Denver, CO
bydesign.com
cheddarup.com/brand
Cinchshare Melbourne, FL cinchshare.com
Exigo Dallas, TX exigo.com
FieldCheck by FieldWatch (Momentum Factor) Austin, TX momofactor.com
Flight Commerce Tampa, FL
flightcommerce.com
InfoTrax Spanish Fork, UT infotraxsys.com
Jenkon Vancouver, WA jenkon.com
Krato Scottsdale, AZ krato.com
Margo Apex, NC margo.me
MultiSoft Cape Coral, FL multisoft.com
NOW Technology Plano, TX now-tech.com
Rallyware Mountain View, CA rallyware.com
S4DS Software for Direct Selling Miami, FL s4ds.com
Socialsales.io Plano, TX socialsales.io
Thatcher Technology Group Naperville, IL thatchertech.com
Trinity Software Inc Arlington, TX trinitysoft.net
Xirect Software Solutions Orem, UT xirect.com
Jack Farris jack.farris@exigo.com 214-367-9933
Travis Wilson hi@momofactor.com 512-690-2134 ext. 721
Mike Christensen mikec@infotraxsys.com 801-431-4900
Brian Corpron bcorpron@now-tech.com 469-768-9681
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Highlighting the Trends and Realities of Contract Work.
BY DAVID LEE
THE PIVOT FROM TRADITIONAL WORK ROLES TO INDEPENDENT CONTRACTING has become a defining trend, but the reasons why people seek contract work continue to evolve. As we enter the second half of 2024, direct selling companies should understand these reasons to better communicate to potential field distributors. We’ll dive into the state and direction of independent contract work, emphasizing key statistics and facts that shape this evolving terrain.
The gig economy’s expansion has heralded a more flexible and autonomous workforce. Independent contractors, freelancers and consultants now permeate various sectors, from tech and creative industries to conventional fields like construction and education. Notably, recent federal data underscores this trend’s magnitude: nearly 8.4 million Americans held multiple jobs in October 2023, representing 5.2 percent of the workforce, the highest share since January 2020.
NEARLY 8.4 MILLION AMERICANS
HELD MULTIPLE JOBS IN OCTOBER 2023, REPRE SENTING
5.2
OF THE WORKFORCE.
Technology stands as a primary catalyst in the rise of independent contractors. Digital platforms facilitate global connections between workers and potential employers, streamlining the search for projects aligned with skills and interests. From project management to creative platforms to communication channels, there’s never been a more opportune time to facilitate nearly all areas of work remotely. A University of Virginia economist highlights the correlation: since the pandemic’s onset, workers with remote - compatible occupations holding multiple jobs have surpassed pre-COVID levels, suggesting an expanding reliance on freelancing.
The quest for work-life equilibrium propels many toward independent contracting. With 5.9 percent of women and 4.7 percent of men juggling multiple jobs by last October, the appeal of flexible schedules and environments is evident. Millennials and Gen Z workers, in particular, seek autonomy and fulfillment, contributing to the surge: an estimated 59 million Americans embraced independent contracting by 2020, collectively earning approximately $1.2 trillion.
Independent contracting offers professionals the autonomy to select opportunities resonating with their skills and values. Research from Payroll reinforces this with 80 percent of independent contractors saying they are very or somewhat satisfied with their work situation, surpassing the national rate among traditional employees by a significant margin. The quest for purposeful endeavors parallels the ability to choose the type of work contractors want to do.
n 40.8% of all contract workers are women; 59.2% are men
n The average contract worker is 47.
n The most common ethnicity of contract workers is White (65.8%); followed by Hispanic or Latino (12.5%); Black or African American (9.1%); and Asian (7.4%)
n Contract workers are 67% more likely to work at private companies in comparison to public companies.
n The most common highest-earned degree for contract workers is bachelors (47%), followed by associates (20%), high school (15%), masters (8%)
(SOURCE: ZIPPIA)
In response to evolving dynamics, legislative changes have emerged. New York’s Freelance Isn’t Free Act, effective May 2024, mandates written contracts for service agreements exceeding $800. Such initiatives reflect a broader push for fair treatment and equitable working conditions, amidst a backdrop of growing gig economy influence. Regulations and pushes from the US Labor Department could require businesses that currently classify workers as independent contractors to pay them as employees. The stated goal is to broaden the definition of “employee” to ensure more workers receive benefits like overtime pay. Opponents say it could limit contract opportunities.
Even companies outside of the direct selling industry wield independent contracting as a strategic tool, capitalizing on flexibility, specialized skills and cost efficiencies. Clear, comprehensive contracts define expectations, avoiding risks of misclassification and fostering positive collaborations. According to a 2023 ResumeBuilder.com survey, 80 percent of companies hiring contract workers after layoffs say contractors will do work that had been done by those employees. Fifty-three companies surveyed say they have asked full-time employees to move to a contract position. So, not only are workers seeking more contract work, companies are also realizing the benefits of this option.
Despite its allure, independent contracting presents challenges. Multiple states continue to change laws and requirements. Many people adding contract work to their schedules tend to not have experience understanding and dealing with expenses and tax implications. Some companies are providing training and resources to educate their contract workers in efforts to ease concerns and hesitations for taking on this type of work. DSN
BY DAVID LEE
TOOLS for extracting insights, understanding trends and making informed decisions. As technology evolves and societal norms shift at an increasingly rapid pace, the data-gathering methods, platforms and evaluations continue to change but also reveal deeper and more valuable insights. Here are seven important trends to consider when conducting survey research.
AI ALGORITHMS can streamline processes, identify patterns and even suggest follow-up questions based on respondent inputs.
The integration of artificial intelligence (AI) into survey research has revolutionized data collection and analysis. AI algorithms can streamline processes, identify patterns and even suggest follow-up questions based on respondent inputs. From sentiment analysis to predictive analytics, AI empowers you to extract deeper insights and adjust strategies for specific goals.
With attention spans dwindling and time becoming increasingly precious, micro-surveys have emerged as a preferred method for gathering real-time feedback. These short, targeted surveys allow researchers to capture fleeting moments of consumer opinion, preferences and behaviors. Whether measuring customer satisfaction or tracking emerging trends, micro-surveys offer a nimble approach to data collection in today’s fast-p aced world.
As smartphone usage continues to soar, survey design has shifted toward mobile-first approaches. Optimizing questionnaires for smaller screens, incorporating interactive elements and leveraging push notifications ensure seamless survey experiences for respondents on mobile devices. Mobile-first design not only enhances accessibility but also enables researchers to reach participants wherever they are, increasing response rates and data quality.
Beyond traditional text-based questions, surveys now incorporate multimedia elements such as images, videos and augmented reality. By engaging respondents in more immersive ways, multimedia-enhanced surveys deliver richer data and deeper insights into consumer perceptions and behaviors. From product feedback to brand sentiment analysis, multimedia integration adds layers of context and nuance to survey responses.
FROM PRODUCT FEEDBACK
to brand sentiment analysis, multimedia integration adds layers of context and nuance to survey responses.
With increasing concerns about data privacy and bias, ethical considerations in survey research have increased significantly in the last few years. Researchers must prioritize transparency, informed consent and responsible data handling practices to build trust with participants. From anonymizing responses to ensuring data security, ethical survey practices uphold the integrity of research findings and safeguard participant rights.
Moving beyond snapshots of data, longitudinal studies track changes and trends over time, offering invaluable insights into societal shifts and behavioral patterns. By observing respondents’ attitudes and behaviors over extended periods, researchers can identify long-term trends; assess the effectiveness of interventions; and anticipate future developments. Longitudinal studies provide a comprehensive understanding of complex phenomena, informing strategic decision-making and policy formulation.
Amidst technological advancements, the human touch remains indispensable in survey research. Skilled researchers serve as guides in crafting effective surveys; interpreting complex data; and translating insights into actionable strategies. Beyond technical expertise, fostering empathy, trust and cultural sensitivity enhances participant engagement and ensures ethical research practices DSN
The opportunities for direct selling companies are greater than they’ve ever been. So are the challenges. Never before has the market demanded a higher level of innovation, simplicity and boldness. As you blaze new trails and evolve in response to the ever-changing market, are you making the most strategic choice for whom you partner with?
Strategic Planning l Executive Management l Startup Launches
Compensation Plan Design l Marketing & Communications l Salesforce Development
Hispanic Marketing l International Development l Events & Show Production l IT Strategy
Digital Roadmapping l Promotions & Incentives l Customer Service
Video Production l Creative Services l Social Media Management
Financial Expertise l Keynote Presentations
SCP is made up of a team of direct selling experts, together representing more than 300 years of experience in direct selling. We surround every project with a customized team of Associates to provide the perfect approach for your project. From event support to global expansion, and everything in between, our team can deliver.
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I’M ALWAYS TRANSPARENT when challenges and setbacks happen, but I also tell them we are not giving up .
BILL XIANG / Lorde + Belle Founder & CEO
THE FOUNDERS OF THREE MULTIMILLION - D OLLAR DIRECT SELLING COMPANIES SHARE THE LESSONS LEARNED FROM BUILDING THEIR BRANDS FROM THE GROUND UP.
BY SARAH PAULK
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THAT LACK OF CUSTOMER CONCENTRATION RISK really allows us to be in the driver’s seat with our brand; with our product quality; and with our pricing. We don’t have to apologize for it .
ROGER MORGAN / pawTree Founder & CEO
THE COURAGEOUS ENTREPRENEUR who ventures into building their own startup is destined to face innumerable challenges. Marketplace disruptions, supply chain upheaval and talent mismatches are just the tip of the iceberg. Unforeseen obstacles litter the road for startup leaders, and yet, it’s the success stories we tend to fixate on. While these victories are inspiring and worth applauding, the behind-the-scenes moments of mistakes made and the actionable insights that follow are where true momentum can be found.
To learn from this valuable startup mentality, Direct Selling News sat down with three direct selling founders leading multimillion-dollar brands to uncover the challenges their companies have faced and the valuable insight gained from the solutions they designed.
IN A STARTUP, financial security is a goal, not an entry point. For Lorde + Belle Founder and CEO Bill Xiang, who had already built two successful companies and worked in the beauty industry for 15 years, there were still valuable lessons to learn about navigating a direct selling startup. Xiang’s financial cushion allowed him to fund the venture and avoid the bootstrap mentality that requires a lean executive team and innovative problem solving. Instead, he was able to recruit corporate leaders from megawatt brands and scaled the
1 / RECOGNIZE AND ACKNOWLEDGE MISTAKES AND THEN MOVE ON
A culture of transparency fosters strong bonds. As you scale, there will be mistakes—in personnel, in product, in direction, in philosophy. But these missteps can be overcome with quick course correction and communication.
2 / DON’T BE AFRAID TO TRY
As a startup, you must move quickly. Don’t wait for perfection, try things and have the mindset of failing fast. Ideas, concepts, products and initiatives can all be tweaked and refined as your company evolves.
3 / NURTURE YOUR FIELD
When in startup mode, it’s important to stay in tune with the field. Don’t be afraid to make adjustments on the fly and make sure your comp plan rewards distributors at all levels from the beginning to build trust and loyalty.
company into a massive engine before it even got off the ground.
“We didn’t treat this company as a true startup,” Xiang said. “In reality, our organization and operations were a startup, but we were treating it like a multimillion-dollar company. That doesn’t go well in a startup environment. We had the wrong corporate mindset, the wrong software, the wrong operations. It was like getting out of mud in the beginning; it took a lot of energy.”
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WE DON’T HAVE TO WORRY about the future because our product is the value, but I already have a number of teams—an economic business research team and others— who are proactively determining how we can transform to make sure our Stylists earn income quickly.
FA PARK / Color Street Founder & CEO
There was no skyrocketing to success in those early days, and Xiang discovered that the beauty category within direct selling was its own unique niche. The first year became about what Xiang calls “failing forward” and recalibrating his leadership style. He ditched his sidelines managerial approach and dug into the tedium of the business, working in every aspect of the business, including IT, customer service, warehouse, product development and hiring a team that would align with his redirected vision.
Above all, Xiang embraced transparency. By being open and honest with the field, he was able to build trust and loyalty and create alignment between the corporate team’s goals and the field’s expectations.
“I’m always transparent with the field when challenges and setbacks happen, but I also tell them we are not giving up. The field will stick with you because of your belief if you don’t give up,” Xiang said.
Today, Lorde + Belle has reached an exciting phase where leadership dynamics are in sync, and the company is seeing steady, organic growth.
Now, Xiang, his corporate team and field leaders are aligned, harnessing everyone’s experiences to elevate Lorde + Belle from a startup to a legacy powerhouse. “We’ve evolved to create a unique, one-of-a-kind hybrid omnichannel model that fosters true entrepreneurialism, legacy and family.”
ROGER MORGAN specialized in the pet retail business before launching pawTree in 2014. He knew how to identify market opportunities and how to scale growth and teams to build strong, sustainable profitability. Which is why, when pawTree’s initial month-over-month growth was strong but didn’t happen at the explosive rate expected, it was a sobering reality.
“We built it, and they didn’t really come pouring in like we had hoped,” Morgan said. “That was kind of frustrating, and it led to lots of experiments and new ideas and things to try. It was a year of making constant tweaks, and honestly, we’ve continued to make tweaks and try new things for ten years to accelerate growth, and we’ve had ten years of consecutive record sales. I don’t know that we ever stopped, and I don’t know that we will ever stop testing and trying things.”
Morgan’s experience didn’t offer any shortcuts for building pawTree from the ground up. He was used to dropping products in big box retailers and having instant and widespread brand recognition, but direct selling brand awareness is a slow burn that requires time and word of mouth. That deliberate, steady start created a solid foundation for the company to build upon, and Morgan now sees the direct selling model as something that has insulated the company from threats that harmed or took out some of his competitors.
“The big box retailers are constantly pushing you down in terms of cost, which requires some suppliers to reevaluate their quality levels,” Morgan said. “We’re not dependent on any one major retailer. We don’t have to do what they say or risk losing a huge chunk of our revenue. That lack of customer concentration risk really allows us to be in the driver’s seat with our brand; with our product quality; and with our pricing. We don’t have to apologize for it.”
BEFORE FA PARK founded Color Street, his category-creating nail polish strips caught the eye of major retailers. Beginning in 2005, he became a supplier for Walgreens, Walmart, Ulta, Sephora, Sally Hansen, Revlon and 3,000 retailers in Europe. The production, research and development, manufacturing and lab science all happened in-house, so when he launched Color Street in 2017, the company was already supported by 300 trained employees.
Growth happened at exponential rates, posting sales of $120 million in 2018 and then growing to six times that amount by 2021. At this pinnacle, Park, who was still adapting to direct selling culture, began to notice opportunity disparity in his field. The compensation plan design he had outsourced to a consulting company had created an unfair distribution of income.
“Some levels made too much money, and the middle and lower levels were struggling,” Park said. “Stylists who did not join early should still have access to an equal opportunity for their efforts. That is why I changed the compensation plan to be more balanced. I wanted to build the company culture to be fair and support our Stylists.”
The shift, while a positive move, collided with the seismic economic shifts brought about by the pandemic and the availability of gig economy jobs.
Within two years, Color Street saw an anticipated decline of Stylists, many of whom were the company’s top earners. It was a setback that inspired a new vision for Park, who is now on a mission to make Color Street a direct competitor to tech gig companies and their instant paychecks.
“Our fundamental business environment was changed,” Park said. “Our DNA is to develop the best innovative product. We don’t have to worry about the future because our product is the value, but I already have a number of teams—an economic business research team and others—who are proactively determining how we can transform to make sure our Stylists earn income quickly.” DSN
IF YOU WERE MENTORING AN ENTREPRENEUR launching a brand-new startup, what must-have wisdom would you share with them?
FAIL FAST. DON’T BE AFRAID TO TRY NEW THINGS and to try them before they’re fully baked. When you fail fast, you learn fast—which ultimately means you find success faster. I’m not saying you don’t have to plan, but sometimes we feel like we have to have it perfect before we launch. Usually, in startup mode, you don’t. You just need to see if it’s in the right ballpark, if it’s moving in the right direction. You can always come back and make it better and improve upon it, but being 80 percent ready is usually enough to get out there and see what you learn.”
—ROGER MORGAN / pawTree Founder & CEO
Treat yourself as a true startup company. If you are a top executive in a billion-dollar company and want to start a new direct selling company, don’t do things as if you were still leading a billion-dollar company. Do things yourself without the luxury of a big team. Before you step back as a manager, jump into the business and put structures and operations in place. Work in the business—not on the business for at least the first year or two.
—BILL XIANG / Lorde + Belle Founder & CEO
Companies that deliver the best product have longevity. Don’t enter the direct selling industry only selling opportunity—sell value. The product is the value and must be king. New entrepreneurs should focus on developing and delivering the best product to customers. Product quality creates winners in business.
—FA PARK / Color Street Founder & CEO
BY BETH DOUGLASS SILCOX
A GREAT DEAL OF EDUCATION needs to take place so lawmakers understand the issues their constituents face and the impact— sometimes unintentional—proposed legislation could have.
A TIME WHEN legislative gridlock in Congress means fewer regulations created by statute as well as increasing incidents of regulatory rule interpretation and expansion, direct selling companies are wise to step up or step into government affairs and advocacy at this time in order to proactively protect themselves.
After all, once the Federal Trade Commission (FTC) comes knocking, it really is too late.
1 / AGENCIES HAVE TOO MUCH AGENCY
Because gridlock exists at every level of government, regulatory agencies have far too much rulemaking power. Many agencies are overstepping their roles.
2 / LEGISLATORS AT ALL LEVELS AND BOTH PARTIES ARE RECEPTIVE
Trite, but true—all politics IS local, especially when it comes to advocacy. Lobbying elected officials at the state or federal level essentially begins by making friends in home territory. Advocacy works best as a long-range plan, aimed at building relationships incrementally while times are good, and sometimes winds up in Washington asking legislators for support when it’s needed most.
Along the way, a great deal of education needs to take place so lawmakers understand the issues their constituents face and the impact—sometimes unintentional—proposed legislation could have. That impact can be on real jobs and real people; the products they sell; the companies they represent; entire industries—even significant segments of a state’s economy. And in the case of direct selling, tens of thousands of independent contractors across the US.
So, now is the time to put faces to your corporate names and brands. Because people connect with people. People learn from people. People care about people. And to effectively educate Congress and state legislative bodies about direct selling’s empowering business model, it takes our people sharing their stories with their Congressmen and women, Senators, state representatives and staffers in offices scattered throughout state and federal capitol complexes.
Small businesses and entrepreneurs are key demographics in many districts at city, state and national levels. They want to advocate for their constituents.
3 / TIMING IS EVERYTHING
It’s imperative to remember that our channel provides well-paying corporate jobs and a supplemental income opportunity. Share that message with your legislators BEFORE there is a problem.
People-to-people strategies—something the industry’s known for successfully executing and leveraging—create whole new levels of personalization and depth to relationship building. And when it comes to advocacy, our industry’s familiarity with this method of contact could provide a remedy for what is often most misunderstood, misconstrued and misrepresented about the industry’s way of doing business and how direct sellers earn a living.
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Government outreach, for the most part, is education first; advocacy second .
DEBORAH K. HEISZ / Co-CEO, Neora
“Government outreach, for the most part, is education first, advocacy second. Because no one is going to advocate for something until they understand. And if you’re waiting until you need advocacy to educate, it’s too late,” Deborah K. Heisz, Co-CEO, Neora, said.
“Too little too late” is how Heisz describes Neora’s government advocacy efforts before the FTC came knocking. And what they learned was that once in a fight with the FTC, no one legislatively will reach out on your behalf because it is an open case, and they can’t.
So, it’s important to put defunct theories about advocacy to rest; inform and strategize in the C-Suite; then make proactive investments because you are not painting a target on your back by participating. What you are asking of advocacy efforts is to bridge the gap between the realities of your business and the knowledge of government officials.
For Neora, throughout their landmark case against the FTC and going forward, Heisz said, “We’re asking them to pay attention to what this agency is doing—to determine whether that’s positive for American business and the American people or not. And we’re pointing out areas where they may have blind spots or haven’t been educated.”
It turns out that data—hard, cold data—was the solid ground on which Neora argued its case against the FTC and ultimately won in court. And it is data, that when combined with human relationships, can eliminate blind spots and convert elected officials into legislative advocates.
In Neora’s case, the data was company-specific, and it supported their argument that they were, indeed, following the law. However, Neora’s victory can’t be construed as a win for the entire industry because in the new guidance issued by the FTC in April 2024, it looks like the FTC is attempting to equate multi-level marketing with pyramid schemes, despite other industries participating in multi-level compensation for salespeople.
This means that direct selling companies need to educate themselves about their own businesses by collecting and analyzing their data to prove compliance with the law, while simultaneously teaching lawmakers about the industry and business model, as well as the very real prospects of government overreach by independent agencies.
“It is important for us, not just as a single industry, but banding together with other industries, to educate the government on the true impact these agencies are having on business. Because if we don’t, they are not going to be reined in, other than through judicial and legal action,” Heisz added.
The direct selling industry is a mystery to many people, especially lawmakers who often only equate it with something far less impactful than its $65.2 billion in US sales last year. They simply don’t know what they don’t know. So, it’s our job as a channel to teach them about the industry’s economic impact; the opportunities direct selling provides families for supplemental income; how millions of people benefit from the opportunity and education afforded by direct selling companies; as well as the innovative, quality products exclusively sold by direct sellers. Of course, this educational process is perpetual since elected officials cycle in and out of office, and it’s at these inflection points where new, advantageous opportunities exist.
Troy Keller, partner with Dorsey & Whitney LLP, practices corporate law in Salt Lake City, where he coalesced a group of direct selling companies on a trade issue that put industry jobs at risk several years ago. Simultaneously, long-time industry advocates in the Utah Governor’s office and US Senate retired. Newly elected leadership lacked industry understanding and awareness, so this loosely based coalition went to work explaining the stakes, eventually galvanizing Utah’s Congressional delegation and avoiding tariffs that would have prejudicially hit key products.
“That made things click for several companies here in Utah,” Keller remembered. And the coalition grew organically from working together on common interests at a state level to seeking greater impact.
A GREAT DEAL OF EDUCATION needs to take place so lawmakers understand the issues their constituents face and the impact—sometimes unintentional— proposed legislation could have.
“The FTC was being aggressive, bringing actions against a couple of companies in the industry. It was a clear trend that folks were worried about, but we weren’t sure that our own representatives were educated on the issues for one, but also why it mattered for them and for their constituents,” Keller said.
Grant Baskerville, chair of the now formalized Utah Direct Selling Coalition, said, “I think there was a greater understanding that we’re operating in a pre-competitive space, where there are a lot of shared interests both state-wide, nationally and in some cases internationally, where it’s beneficial and advantageous for all of us to collaborate and work together.”
So, the coalition took a fairly normal route to helping people put facts on the page and connect the dots to the relevancy of an industry—they put together an economic impact study, in collaboration with World Trade Center Utah and the Utah Governor’s Office for Economic Development, working closely with the Gardner Policy Institute at the University of Utah.
“It was a lot of sweat equity by the companies, by my team and by the state to gather and verify the accuracy of data. It was a good year and a half of work,” Keller said.
Education paired with inspiration were the study’s goals. The study would be a reference point to building relationships proactively where they needed them.
Our goal wasn’t just for Utah’s representatives in Congress to be aligned with industry and DSA priorities. We wanted them to be champions for the direct selling industry.
TROY KELLER, PARTNER / Dorsey & Whitney LLP “
“Our goal wasn’t just for Utah’s representatives in Congress to be aligned with industry and DSA priorities. We wanted them to be champions for the direct selling industry,” Keller shared.
“One company quantifying its impact is one thing. A group of 12 companies coming together to quantify their collective impact in the state can be really powerful and send a great message. Not only that, but it shows that this group of companies are coalesced and share the same interests and concerns. That is incredibly helpful as well,” Baskerville explained.
So, what did they find?
The study verified Utah as a global hub for the direct selling business model with 91 direct selling companies headquartered in state and 66 key suppliers, as well. Ten of those companies sold more than $10.3 billion in goods and services to customers around the world—6.1 percent of industry sales from all states and countries.
“We knew that there were a tremendous amount of jobs created in the state by the industry, but hadn’t yet quantified it. We found that it was over 17,000 jobs directly supported, then almost 21,000 jobs indirectly supported by the industry. We’re over 38,000 jobs in Utah alone. That was a huge boon to learn that,” Baskerville said.
But something of a surprise was that these jobs paid significantly higher than average wages compared to other Utah industries. “We have a great economy, but a lot of that comes from companies that are headquartered outside the state that have manufacturing or sales offices or distributorships in the state. So, the direct selling industry is one of the few where virtually all the companies are headquartered here in Utah, and that means a lot of management jobs. I think that made a difference that we hadn’t really appreciated would come out so clearly,” Keller said.
But the most eye-popping of all was direct selling’s impact on Utah’s export numbers. As a landlocked state, Utah’s manufacturing segment makes a lot of parts for the aerospace industry and others, which travel out of state for final assembly and don’t qualify as exports. But essential oils and supplement products are manufactured from raw ingredients by Utah’s direct selling companies and are shipped around the globe. This brought big surprises to the coalition.
One company quantifying its impact is one thing. A group of 12 companies coming together to quantify their collective impact in the state can be really powerful and send a great message .
GRANT BASKERVILLE / Chair, Utah Direct Selling Coalition
“It was remarkable, to be honest, to understand that over 70 percent of the state’s non-gold exports were from the direct selling industry—$6.3 billion in international exports. That’s incredibly powerful to be able to quantify and communicate that to representatives in the state and also across the nation,” Baskerville said.
It certainly caught the attention of Utah’s elected officials, who want to think of Utah as an international state, one that has influence around the world.
Beyond the economic impact study, the primary directive of the coalition, which is comprised of 12 corporate members and a broader subset of ecosystem industry support services companies, is to help defend the industry by cultivating legislative champions. But they’ve so far also worked at the state level to adopt laws to make cosmetics manufacturing and international sales easier and explored ways to strengthen the industry’s position and argument that direct selling distributors are independent contractors.
“I think that a really important strategy for the industry is to look at how they can pay attention to things at the state level, so they can combat them if they need to. But, frankly, more strategically is to ask what initiatives we can do at the state level that can create an environment that is more conducive to the good stuff we are trying to do for our consumers,” Keller said.
The highly collaborative and communicative, pre-competitive operational style of the Utah Direct Selling Coalition creates plenty of advocacy opportunities. It’s an on-going forum of sorts, whereby a member company identifies an issue; emails the group; jumps on a call; and the group can then take quick action. And those actions, taken as a collective unit, lend all-important third-party credibility. Utah’s success shows that there may be opportunities for other states or regions to work together similarly and coalesce their advocacy efforts, too.
“We encourage companies who operate in other states across the US. If you have a good network, if there is a little group of companies in your state working in the industry, definitely talk to each other and see if there are opportunities to collaborate, work together, amplify the interests and your own collective interests, as well. You might be pleasantly surprised by the reaction and support you receive,” Baskerville said.
Building a coalition Heisz explained, “takes the pressure off of an individual company standing alone. It really does show that it’s a broader swath of people impacted. It spreads the cost burden around, and it also creates more visibility. It certainly would allow a mid-size or smaller company, as part of a coalition, to be heard and to be able to contribute to the conversation. Whereas independently, they may not have the resources or the knowledge to act—just as being part of the Direct Selling Association does, but you end up with a group of peers.”
Moving forward, Utah’s coalition continues to work very, very closely with national entities like the DSA, who Baskerville said does a phenomenal job at protecting and promoting the interests of the industry nationally.
“As a coalition based in Utah with such a large number of direct selling companies based there, we think we also have a supportive and supplementary role to play in the advocacy space nationally as well,” he added.
And during this time of political division and gridlock in Washington, a diverse group of companies coalescing different perspectives, resources and relationships, united for the greater good of the industry just amplifies and enhances the potential of advocacy on all levels.
With little legislative action happening on the federal level, states are taking up issues with increased frequency and urgency. We’ve already seen this with privacy laws and issues surrounding Artificial Intelligence. This trend will likely continue, so keeping watch and advocating on the state level is imperative.
But the industry can’t take their eyes off Washington either.
“I will tell you that despite all the divides that there are about business and about what government should and should not regulate, there are commonalities. There are Senators and Congressmen and women who want to support micro and small businesses on both sides of the aisle. We can’t work on just one side of the aisle, which is another reason to have a coalition rather than a single company. Your own company bent might be one side or the other, but we need to find a way to talk to both sides in order to truly make progress,” Heisz said. DSN
BY BETH DOUGLASS SILCOX
CORPORATE SOCIAL RESPONSIBILITY AND ADVOCACY are table stakes in today’s marketplace. Yet, companies of all kinds fall short on strategy in these areas. Direct selling companies possess the most potent of assets—independent sales forces and employee bases numbering in the tens of thousands—but often lack the know-how or motivation to effectively activate them as grassroots ambassadors who can inform, educate and advocate for their products, manufacturing processes, operations, independent sales forces, causes and missions and—most importantly—the direct selling industry itself.
If you’re reaching out to elected officials for help when you need them, and it’s the very first time you’ve ever reached out—it’s way too late .
CRAYTON WEBB / CEO, LuncefordWEBB Government Relations and Sunwest Communications
EXPANDING TRADITIONAL philanthropic social responsibility to include government relations and advocacy makes some C-Suite leaders fearful in this environment of FTC scrutiny. Instead, some companies choose to fly under the radar or keep a low profile until they need a favor from a legislator or council member. But that is less than ideal.
It’s ironic that companies within an industry so rooted in relationships would avoid building them with people who really can impact their businesses, their people and their industry for better or worse. But, perhaps, a deeper look into the nuts and bolts of grassroots advocacy could soften those fears and serve as an origin point to forging favorable reputations and long-term relationships with “the powers that be” at local, state and federal levels.
“Organizations that are effective at grassroots advocacy embrace two philosophies. First is the notion that you make friends when times are good. “If you’re reaching out to elected officials for help when you need them, and it’s the very first time you’ve ever reached out—it’s way too late,” Crayton Webb, CEO at LuncefordWEBB Government Relations and Sunwest Communications explained.
Advocacy efforts at Mary Kay for instance, span the company’s history and reflect not only the company’s business interests but also, their “Go Give” philosophy and involvement in issues ranging from domestic violence to cancers affecting women.
“Our public affairs team is proactive in building relationships with elected officials and other policy makers. Before we might have to go to them with a specific issue, we educate them about the importance of sponsoring and passing legislation that would support the direct selling model, the independent contractor status of our sales force and the cosmetics industry,” Anne Crews, Vice President Public Affairs, Mary Kay shared.
But there are companies who adhere to a “head down” philosophy and choose not to engage in government affairs. They may not yet see the value or deem it too costly. Often, Webb said, “They are afraid if they reach out to a lawmaker or elected official that it paints a target on their back, but I couldn’t disagree more.”
1 / THE POWER OF RELATIONSHIPS
Direct selling is a business that thrives on connection. It’s essential to foster strong ties and working relationships with elected officials. But remember— this isn’t a relationship to cultivate only in troubled times.
2 / THE POWER OF PEOPLE
Federal, state and local legislators must be receptive to the concerns of their constituents. Never underestimate the power your sales force has to influence and inspire.
3 / THE POWER OF PREPARATION
Make sure you equip your sales force with the language, knowledge and confidence they need before expecting them to advocate for the industry. Set your field up for success.
According to Webb, growing companies should already be on the proverbial “radar,” and the goal should be to raise the company’s profile and enhance reputation. Webb along with his business partner, Michael Lunceford, counsel companies both inside the direct selling industry and out on effective government relations strategies and advocacy efforts. The two originally worked together on similar strategies at Mary Kay.
Mary Kay independent beauty consultants are champions of the product and the opportunity. They are our greatest advocates. So, connecting Mary Kay independent beauty consultants with their lawmakers is a really impactful way to shape policy and also hold their elected officials accountable .
ANNE CREWS / Vice President Public Affairs, Mary Kay “
Some companies may not know which member of Congress or Senator represents their headquarters locale, nor have they invited them, state officials or county council members to tour their facilities. This is a missed opportunity to not only lay the groundwork for long-term relationships but to also give officials a chance to develop deeper understanding of the company and the industry by meeting employees and independent salesforce members.
From the politician’s perspective, they are able to take photos and post them on social media, which shows their constituents that they are out and about, whether it’s in their congressional or council district. In many ways, companies help elected officials by inviting them to ribbon cuttings, charitable events and other meet-and-greet opportunities.
Mary Kay has been gifted at building and tending government relationships this way for decades with their public affairs team facilitating group and one-on-one opportunities. Activities have included legislators and independent beauty consultants planting trees together for Keep Lewisville Beautiful, the home of their Texas manufacturing facility. Recently, two independent sales directors arrived at Mary Kay headquarters in their pink Cadillacs to
host a skincare class for a newly elected North Texas member of Congress. This isn’t the first lawmaker to accept that invitation and certainly won’t be the last to learn how to properly care for their skin, while gaining a deeper understanding of what it means to be an independent beauty consultant; work a direct selling business; and empower others through the business opportunity.
“Mary Kay independent beauty consultants are champions of the product and the opportunity. They are our greatest advocates. So, connecting Mary Kay independent beauty consultants with their lawmakers is a really impactful way to shape policy and also hold their elected officials accountable,” Crews explained.
And this leads to the second inherent belief necessary for effective grassroots advocacy and an ideal fit for direct selling—the idea that the most valuable asset, the thing that lawmakers care most about, are the people—the voters, the constituents—who live in their districts. For direct selling companies, this encompasses vast numbers of independent sales force members scattered across Senate, House, State Legislature and City Council districts nationwide.
A corporate lobbyist explaining the importance of an issue to a lawmaker rarely carries as much weight as a constituent, who lives in their district; voted for that lawmaker; maybe contributed $25 to their campaign, telling their story as a small business entrepreneur with a direct selling company and communicating why that lawmaker’s support matters. Multiply that story by tens of thousands within the direct selling channel’s independent sales force—that is the power of grassroots advocacy.
A robust government relations and advocacy program absolutely needs support from the C-Suite and the CEO, specifically, but it’s everyday people that bring authenticity and relatability to grassroots advocacy efforts.
“It’s very powerful to have someone from the C-Suite able to advocate on behalf of the company. It does not, however, replace the real people, the real men and women who live and work in an elected official’s district. They go hand-in-hand, and they are both very, very important,” Webb said.
It’s a sentiment shared by Crews. “We believe they have a definite impact on the lawmaker’s understanding of the Mary Kay business and the impact that potential legislation may have on that opportunity.”
It takes careful vetting by Mary Kay to identify individual sales force members to participate in state and federal industry lobby days or one-on-one meetings with lawmakers.
“We carefully orient them and advise them and educate them before we would ever set the meeting with their individual legislator, be it state or federal. Therefore, we believe we help them better communicate and inform lawmakers about potential unintended consequences of proposed laws,” Crews said.
Of course, the company also provides less formal, but similarly important advocacy opportunities for interested independent beauty consultants who wish to reach out by phone or email to their elected officials. They suggest a script to introduce themselves and to discuss their businesses and the issues at hand.
Webb recalls more than a decade ago, Mary Kay activated Colorado’s grassroots advocacy network to turn around a piece of cosmetics legislation that would have negatively impacted one of Mary Kay’s products. Independent beauty consultants called their state elected officials, particularly the state senator sponsoring the bill; they prevailed.
“Our public affairs team is very careful and selective about energizing, if you will, any grassroots effort. We want them to be able to live their daily lives, focus on their business, etc. But when called upon, our independent sales force members are enthusiastic about the chance to share their story with lawmakers and we believe the efforts have been effective,” Crews said.
“The focus of any sales organization is to keep your field selling, to not get them stymied or consternated or stalled out for fear of something that they can’t control to begin with,” Webb agreed.
But it’s short-sighted to believe this is truly a barrier to participating in grassroots advocacy, particularly, he added, “if you have an effective and surgical activation plan and are clearly communicating the risks of any kind of pending legislation, and what you need them to do or what you need them not to do.” DSN
WITH DECADES OF EXPERTISE in supply chain operations, manufacturing, distribution and innovative product development, David Chung brings a career’s worth of experience that he’s ready to put to work in service of his vision for Amare.
BY JENNY VETTER
IT’S A LOT OF WORK, but at the same time, it’s an excitement that I’ve got all these things to do for the next five to ten years .
DAVID CHUNG / Chairman, Amare Global
DAVID CHUNG has spent his career building successful beauty and personal care companies from the ground up, launching and leading globally recognized brands for more than thirty years. In December of 2023, his path led him into a new industry, as he purchased mental wellness company Amare Global and became its official owner and chairman.
TODAY, AMARE OFFERS a range of products for the whole family, with award-winning solutions for nutrition, gut health, mental fitness, personal care and more.
Founded in 2017, Amare Global launched as “The Mental Wellness Company®,” specializing in nutritional supplements designed to support the full spectrum of wellness by focusing on the relationship between the microbiome and the gut-brain axis (GBX). Today, Amare offers a range of products for the whole family, with award-winning solutions for nutrition, gut health, mental fitness, personal care and more.
The cornerstone of Amare’s product line is its flagship product MentaBiotics®, a patent-pending product that contains another patent-pending ingredient that is a proprietary blend of clinically validated probiotics, prebiotics and phytobiotics formulated to support optimal mental wellness through the gut-brain axis. MentaBiotics is a key product in Amare Happy Juice®, a very popular daily drink designed to target gut-brain axis, boost mood and motivation and optimize neurotransmitters such as serotonin, dopamine and GABA.
(DAVID’S) VISION IS for Amare to become the largest mental wellness company in the world, and he has inspired the organization to work towards this ambitious goal.
OLIVER DIBBLEE / Chief Growth Officer, Amare Global
During his time in the beauty industry, David witnessed a shift in focus from simple, exterior beauty to the ingredients that enhance beauty from the inside out. He sees Amare’s commitment to mental wellness in a similar light, as the company works to bring mental wellness to the forefront of consumers’ minds.
“David has effectively communicated his vision for Amare to both the company and its field leaders,” said Oliver Dibblee, Amare’s Chief Growth Officer. “His vision is for Amare to become the largest mental wellness company in the world, and he has inspired the organization to work towards this ambitious goal.”
With decades of expertise in supply chain operations, manufacturing, distribution and innovative product development, David brings a career’s worth of experience that he’s ready to put to work in service of his vision for Amare.
Since December 2023, he’s handled inventory shortages, resolved shipping challenges and made impactful changes to customer service and the customer experience. And while much of this tactical work is familiar to David, working in the direct selling space presents a learning curve.
“It’s very, very different than all the businesses that I have built in the past because I’ve built companies in a very traditional way,” he shared. “Direct selling is more purpose driven; you’re helping other people to become successful. It’s not traditional business thinking. You need to have hope, a vision for the future and what could be, where in my past it’s more delivering numbers. And so, it’s a lot more fun, but a lot of work. But I think it’ll be fun doing it.”
David is eager to bring his deep experience in product development to Amare and is excited to work with the company’s innovative product development team to create new, powerful products—including formulations that can address his own priorities when it comes to health.
“As I get older, being healthy is one of the most important things in life,” he said. “It gives me new energy to learn about this area and how I can bring more interesting products that really work. For me personally, as I travel, I’ve had issues sleeping because of different time zones. And so, can we create a product that helps me sleep well naturally? These are things I would love to work on together with my scientists. That gives me energy. The passion makes me younger again.”
As he dives into the direct selling industry and finds ways to apply all that he’s learned along his extensive entrepreneurial path, David is honored to both learn and lead in this newest chapter of Amare’s story. He speaks with the grounded insight of a time-tested leader, honored to share what he’s learned with his new hardworking team, but there’s a youthful enthusiasm he brings to this next challenge that lights up his eyes as he shares.
“It’s almost like a little boy went into a Lego house and built something,” he laughed. “It’s that kind of excitement. I came into Amare with so many things to fix, and so many things to do. It’s a lot of work, but at the same time, it’s an excitement that I’ve got all these things to do for the next five to ten years.” DSN
“
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— JONI ROGERS-KANTE / FOUNDER & CEO, SENEGENCE
When one company succeeds, the entire channel benefits. It’s with that sensibility in mind that we developed the DSN Supporter Program in 2022 and welcomed dozens of companies, representing billions in cumulative revenue, committed to helping this channel grow and enhance its relevancy.
Our mission is to serve, educate and edify the channel as the daily resource for breaking global news, emerging trends and powerful stories. With DSN, it’s easy for direct selling executives to stay informed, engaged and always one step ahead.
Your support helps DSN continue to provide relevant information, exposure, edification and education for companies and executives to help evolve the channel forward for the global community.
Build a better, more sustainable future for direct selling.
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CHRISTINA HELWIG / AdvoCare CEO
IN AN EXCLUSIVE FIRST INTERVIEW, AdvoCare’s newly appointed Chief Executive Officer Christina Helwig sat down with Patricia White, Publisher of Direct Selling News, to share her vision for one of the industry’s most well-k nown wellness brands.
CHRISTINA HELWIG / EXECUTIVE
Q: AdvoCare has more than three decades of proven success, but the marketplace is constantly changing. How does a brand with such deep roots remain nimble?
A : It’s become an anchor for us to say that we remain in a constant state of evolution as a brand. The biggest shift today is that we are really leaning into an omnichannel strategy. Direct sales has been and always will be one of the channels we use to share our great products, but we are looking at different channels, too. We launched AdvoCare on Amazon as our first third-party marketplace almost two years ago, and we are now available at Walmart.com. We’re also exploring and preparing to launch on social commerce, like TikTok Shop and Meta. Our presence in those third-party marketplaces is primarily about protecting the brand. We want our customers to have the same experience whether they buy our products on Amazon, from a distributor or directly from our website.
How has your digital approach shifted along with consumer demand?
We’re continuing to evolve our ecommerce business through AdvoCare.com. That’s how customers spend most of their time shopping today, and we want to make sure that we’re meeting them where they are and providing an expedited shopping and checkout experience that has no barriers. That focus has been really critical to our success for the last four to five years and is something we’ll continue to focus on as we evolve and grow.
How has your omnichannel approach impacted your distributor base?
Brand awareness only strengthens the distributor’s ability to have a conversation with someone and to share the product. That’s something we take on to better support their needs and give them the best chance to get the products out into the public. We’re continuing to build the great trust we have with our distributors, and transparency has been a critical part of their success in meeting personal goals and our relationship with them.
What is your vision for helping AdvoCare grow in a new direction while maintaining its legacy roots and loyal customer base?
We’re heavily focused on the right balance between new customer acquisition and existing customer retention. It’s a pendulum, and we are working to find the right sweet spot. We’ve launched ads on Spotify; strengthened our loyalty programs; launched a subscription program; and are continuing to see success with our influencer collaborations. It’s our goal to find new and different ways to create brand awareness while ultimately connecting back to our distributors to continue momentum for this channel.
What is your main focus as you step into this new senior role?
The continued evolution of AdvoCare—both internally and externally—is where I’ll be focusing to position us for long-term strategic growth. For example, our target audiences continue to expand. The female demographic has been a major focal point of our business, and now we want to consider how we can grow different audiences and make wellness easy and accessible for them. So many consumers are curious about how wellness can work for them, and we are poised to interact with the wellness-aware and those curious, by being open and ready to deploy effective ways to get our products to more people. How we’re going about doing that through a creative and nimble omnichannel strategy is really my number-one goal and focus moving forward DSN
EVERYTHING we think you (and your field) should be reading, listening to and utilizing in order to stay engaged, informed and one step ahead.
BY CHELSEA HUGHES
BY CAL NEWPORT
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“ Conformity is the jailer of freedom and the enemy of growth.
WORDS TO L EAD BY:
—JOHN F.
KENNEDY
BY NICK TRENTON
From “What if?” to “How?” and every doubt in between, it’s easy to overthink—especially when we get into new and intimidating situations like starting a business. In his audio book
Stop Overthinking, author Nick Trenton explains how overanalyzing is the biggest cause of unhappiness. Through rewiring your brain, controlling your negative thoughts and changing your mental habits, Trenton teaches scientific methods of effectively breaking free from stress and releasing your unlimited potential.
As the leading CRM platform for scaling businesses, HubSpot offers versatile software that helps businesses master inbound marketing, sales and customer service. HubSpot also offers a variety of free tools to entrepreneurs like the HubSpot Marketing YouTube channel. It offers hundreds of expert tips and tutorials to upgrade your team’s digital marketing strategy. Videos skew toward social media hacks, like finding your audience, mastering new algorithms, leveraging AI and understanding influencer strategies.
Noah Kagan knows a thing or two about being an entrepreneur. As one of Facebook and Mint’s first employees, Kagan went on to build 20+ startups— eight of which were worth at least $1 million. He chronicles his stories about marketing, starting a business, personal development and productivity across multiple platforms, including his eponymous website, social platforms, newsletter and podcast. DSN
SINCE LAUNCHING in June 2021, the Direct Approach podcast has been providing direct selling executives an in-depth look at the biggest challenges facing the channel—and unique solutions for tackling them.
Wayne and the rest of the DSN family would like to thank our growing audience and the 70+ executives and guests for their candor and participation.
MEET THE HOST Wayne Moorehead has deep experience in marketing and brand strategy. He has applied his expertise and passion to help companies (from startups to Fortune 100) define, communicate and activate their brands. Wayne’s rare blend of experience and success has shaped his philosophy on effective growth strategies, and he believes the future of the channel will blend the best of direct selling with the best of direct-to-consumer.
Here’s a snapshot look at recent episodes!
[ EPISODE 77 ]
Keys to Cross Cultural Success with Kenya Vergara, Global Marketing Director, Omnilife
OMNILIFE’S REMARKABLE JOURNEY began 32 years ago as the company expanded across Latin America and into Europe. The company ranked #21 on DSN’s Global 100 List with $633 million in annual revenue in 2023. Kenya is carrying on her family’s legacy and oversees global marketing and innovation for this legendary brand.
IN THIS EPISODE Kenya shares the inspiring origin story of her family’s company. Driven by a vision to improve lives through health and opportunity, Kenya shares the core principles and vision that drives Omnilife’s success.
[ EPISODE 78 ]
Pivot to Performance: New Recruitment Strategies to Amplify Growth with Industry Experts Heather Chastain and Brett Duncan
A SPECIAL RECAP OF DSU unlocks the event’s top insights and shows you how to implement these action items into your business. Heather and Brett take a deep dive into the underlying issues impeding growth. Learn why old recruitment philosophies don’t work anymore, and what DOES move the needle in direct selling today.
IN THIS EPISODE sought-after industry experts Heather and Brett share their decades of experience as the Founder and CEO of Bridgehead Collective and Managing Principle at Strategic Choice Partners respectively.
NEVER MISS AN EPISODE—2024 is providing another year of insights, tips, takeaways and action items provided by some of the most notable names in the channel. If it’s impacting direct selling, Wayne and his guests will be talking about it on the Direct Approach. New episodes drop every other Thursday—make sure to subscribe!
BY BLAKE MALLEN
DIRECT SELLING NEWS IS RENOWNED FOR PROVIDING EDUCATION AND VALUE to the executives leading direct selling through reputable, trustworthy journalism and research. They recognize and admire the tenacity and contributions of field leaders.
I knew that made DSN the perfect partner for the SHIFT Podcast, as we come together to bring insights, education, and enthusiasm to the distributor community worldwide.
From my over 25 years in field, ownership, and C-Suite roles, one truth remains evident—distributors are the heart, soul and lifeblood of our channel. Their belief, passion and talent turn company missions into reality every day. That’s why I’m so passionate about giving them access to the mindset, skills and strategies needed to accelerate their businesses in today’s rapidly evolving environment.
After inspiring conversations with over 20 industry icons from a variety of respected companies, four key themes stand out
The channel is evolving at breakneck speed. Remote work normalization, technological advancements and a new wave of purpose-driven entrepreneurs are driving this rapid evolution.
Challenges are opportunities to build trust and belief. Helping distributors reconnect with their “why” fuels their passion to overcome setbacks and push through plateaus
Authenticity trumps perfection on social media and in the real world. Top leaders today reinforce the need for genuine connections with customers and community, embracing individuality to best serve your personal niche
Returning to service-focused approaches strengthens our channel. Genuine care and personal touch foster lasting relationships and are more important than ever in today’s increasingly digital landscape
The overarching message? As the channel shifts, adaptable distributors balance online and in-person engagement and refocus on the depth of personal connections—the industry’s original superpower.
I remain enthusiastic about our channel and our greatest strength—real relationships and communities.
n SUBSCRIBE personally to SHIFT Podcast for real-time insights into what’s working in the field today.
n SHARE the podcast with your field communities to provide the most current, relevant education in a safe environment.
n NOMINATE potential future guests who represent your company and our channel well.
New episodes drop every Monday. Visit shiftpodcast.com to subscribe to weekly emails and access all episodes to date. Let’s Make the SHIFT... together. DSN
SCAN THE QR CODE TO SUBSCRIBE, SHARE AND NOMINATE
BY
MA landmark study details how generations of Europeans across all genders, geographies and socio‑economic levels perceive, engage with and measure success and opportunity in direct selling.
but in the direct selling channel, executives can easily assume that some things never will.
That belief was challenged in 2022 when Jason Dorsey, President of the Center for Generational Kinetics (CGK), presented his generational research at Direct Selling University. Generational research identifies differences between generations in underlying motivation, actions, behavior and predictable tendencies. And while his findings illustrated how deeply the generational divide impacts how people perceive and engage with the world around them, the insights were borrowed from research done in other industries. I quickly discovered that no generational study of any significance had ever been done solely for direct selling.
As the Founder of Bridgehead Collective, a firm founded to help companies in the channel innovate, form and execute strategic plans, I know the importance of well-researched data. Data is the foundation for determining how to allocate investments; where to leverage human power to lead through change; how to identify and overcome internal and external obstacles to growth; and how to decide which strategies will have the most impact on measurable results. I knew we needed to harness the power of original generational research in a way that would specifically analyze the direct selling industry.
In a first-of-its-kind study in 2023, Bridgehead Collective partnered with the Center for Generational Kinetics. We set out to discover America’s perceptions of entrepreneurship, the gig-economy and—more pointedly—direct selling.
We repeated the process this year, but with an international—specifically European—focus. We had several key objectives, including investigating current attitudes, motivations, limitations and beliefs and uncovering participants’ attitudes, beliefs and overall perceptions of direct selling. We aimed to test specific messaging, positioning and marketing strategies and discover existing perceptions and preferences.
We designed the study to provide Actionable Insights across 10 Key Categories
n Perception of Industry and Channel
n Recruiting and Prospecting
n Motivations and Decision Criteria
n Onboarding and Getting Started
n Training
n Compensation and Value Proposition
n Recognition
n Incentive Trips and Events
n Retention
n Duplication and Role of Team Building
This study targeted the UK, Spain, France, Germany and Poland, and while the research presented in this article focuses on the generational differences across Europe as a whole, the study also provided striking differences between each of these growing direct selling markets.
Each generation across Europe has strong feelings about how we recruit, onboard and train. But no two generations are remotely the same in what motivates them to want to stay. In fact, as we looked at the data, it was common to see results that were significantly polarized. Each of these 10 key categories provided new, actionable insights that every marketing, sales, field communication and compensation team will want to design around. Here are just a few of the most important insights.
n Europeans are interested in starting their own businesses, but older generations are deterred by the cost of getting started while younger ones are afraid of failing.
n Across the generations, Europeans have clear and strong opinions about recruitment, onboarding and retention.
n Significant generational, gender and country differences exist when it comes to attitudes, beliefs and overall perception of entrepreneurship and direct selling.
WHAT WOULD YOU CONSIDER THE BIGGEST BARRIERS PREVENTING YOU FROM STARTING YOUR OWN BUSINESS RIGHT NOW?
[ BY TOTAL: INCLUDES ALL EUROPEAN COUNTRIES TESTED; RANKED #1 / #2 / #3 ]
cost to get started is probably too high
What is clear is that the industry is in flux. And a one-size-fits-all approach simply doesn’t work. But many companies still rely on a historical positioning of direct selling that doesn’t really fit anymore.
It’s common to hear direct selling executives and field leaders say they are eager to pursue Gen Z. In an effort to court the youngest shoppers, however, brands can jump on trend bandwagons that have the opposite effect for older generations, effectively alienating their loyal customers and distributors in the Gen X and Millennial age brackets.
The key, then, is to deliver our messages with precision. No two generations have the same preferences, experiences and motivations—our messaging shouldn’t either. We need to become students of generational divides, fine-tuning our communications so that they speak the language of each specific customer and seller for maximum credibility. With the right data, it’s possible to truly reach everyone by refining our audience and tailoring our messages for maximum impact.
The good news is, across the board, Europeans are generally interested in starting their own business. Sixty-eight percent would like to own their own business in the next three years, including 80 percent of British individuals, the highest of any country tested.
Europeans also have an open mind about what starting their own business looks like. Fortynine percent consider “gig economy” jobs (driving for Uber, delivering for GrubHub, etc.) as starting their own business, including 63 percent of Polish individuals—the highest of any country tested.
However, it is really the inverse of this statistic that’s most notable—almost half of all Europeans that are looking for a “gig economy job” do not see your brand (as you currently position it) as a solve for that. The data would suggest that calling out our “business opportunities” in more specific language will result in higher engagement.
From a geographic standpoint, Spanish (48%), British (43%) and Polish (41%) individuals are significantly more likely than the French (32%) and Germans (20%) to want to start their own business in the next five years.
COMFORTABLE
[ BY GENERATION: INCLUDES ALL EUROPEAN COUNTRIES TESTED. TOP TWO BOX: VERY COMFORTABLE AND SOMEWHAT COMFORTABLE ]
A discussion with a friend or family member that’s already involved in direct selling An automated learn-at-your-own pace digital information portal
A video or series of videos online you can watch [YouTube, Facebook, Instagram, etc.]
From a generational standpoint, Gen Z (42%) and younger Millennials (46%) are significantly more likely than older Millennials (34%) and Gen X (27%) to want to start their own business in the next five years.
Strong gender differences exist as well, men (42%) across all European countries tested are significantly more likely than women (31%) to want to start their own business in the next five years. This represents a strong difference from the US where women expressed a higher inclination than men to own their own business.
If we use precision messaging, we can recruit in these segments while also tailoring our communications with the older, more skeptical demographic in a way that speaks to their doubts and concerns.
Being an entrepreneur is no easy task, so it’s no surprise that high startup costs (55%) and failure itself (53%) are the biggest barriers Europeans face when considering a new business venture.
In fact, 67 percent think owning their own business is harder than being an employee at a business.
With these barriers in mind, it’s imperative we maximize our effectiveness by talking about our opportunity where, when and how Europeans are most receptive and address those fears head on with specific solutions, specifically calling out low cost of entry. Spoiler alert, $115 USD or less was the magic number for Europeans.
Not surprisingly, Europeans would feel the most comfortable learning about new direct selling opportunities through discussions with friends or family. However, they pointed to brand websites as a place of distrust when finding out more about the opportunity. They were much more likely to turn to
social media channels or YouTube as their primary source of information, so make sure your channels represent your brand accurately.
Younger generations, especially younger Millennials, are significantly more comfortable than Gen X learning about new direct selling opportunities in every way tested. Across all opportunities tested, younger Millennials average 10.5 percent more comfortable compared to Gen X.
Making extra money is by far the biggest benefit for Europeans when becoming a distributor. From there, having control over when and where work happens (41%) was a strong driver.
Control over their time and where they work would significantly influence older Millennials (44%) and Gen X (44%) to get involved as a distributor compared to Gen Z (36%).
Opportunities to get recognized and rewarded for their unique talents (Gen Z: 23%, Younger Millennials: 26%, Older Millennials: 18%, Gen X: 18%) and building their influence and impact by building a business (Gen Z: 24%, Younger Millennials: 24%, Older Millennials: 17%, Gen X: 16%) would significantly influence Gen Z and younger Millennials to get involved as a distributor compared to older Millennials and Gen X.
Money is the best and most welcomed benefit by a long shot. In fact, it’s the highest predictor of whether a European would choose to keep working their business after the first three months.
While this is obvious, there’s more to the story. Europeans are cause-driven in surprising numbers. The data shows 77 percent are more likely to work with a company that supports a social cause they are passionate about. That’s huge and significantly higher than the US.
HOW LIKELY WOULD EACH MOTIVATE YOU TO START YOUR OWN BUSINESS? [ BY TOTAL: INCLUDES ALL EUROPEAN COUNTRIES TESTED ]
You are interested in making money from a hobby or passion
The business aligns with your values and how you want to live your life
We’ve all reframed our opportunity in increasingly compliant ways, referring to extra, additional or supplemental income instead of a specific dollar or some other atypical earnings amount. The problem though is that this general approach to pitching opportunity will mean different things to different people. Now, with this research, we know for the first time how much money additional, extra or supplemental income actually translates to.
Sixty-three percent of Europeans would have to make between $250-$999 in the first 3 months of direct selling to absolutely convince them it’s worth it.
British individuals are significantly more likely than all other European countries tested to be convinced that direct selling is worth it if they make $250 or less in the first month.
Polish individuals are significantly more likely than Spanish, British or French individuals to be convinced that direct selling is worth it if they make between $500-$999 in the first month.
Seventy-six percent of Europeans say they would get involved in direct selling if they knew they could make $500 of extra income each month, including 85 percent of Spanish individuals, the highest of any European country tested.
The study clearly shows that generations perceive this industry in vastly different ways. The often-touted homogenous funnel marketing technique may appear more efficient, but this study proves that it is likely also less effective. We must balance efficiency with effectiveness. When we think about investment, we need to also think about changing the lens with which we’re viewing that investment. What’s a bigger spend: one cheaper, ineffective communication approach or a multi-pronged message that may cost more but delivers results? DSN
WANT TO KNOW HOW ATTRACTIVE YOUR COMPANY IS TO EACH GENERATION? Scan here to schedule your Generational Attraction Assessment today, complimentary for DSN Gold and Platinum Supporters.
With 20+ years of cross-functional experience in direct selling, Heather Chastain brings a solid understanding of sales, marketing, technology, manufacturing, operations and C-Suite challenges as well as a strong collaborative and relational style of leadership to the table. Heather has held executive roles at Shaklee, Arbonne International, Celebrating Home and BeautiControl. Heather also serves as the Strategic Advisor at DSN and is the Founder & Chief Executive Officer of Bridgehead Collective.
LIFEWAVE /
BY JENNY VETTER
TWENTY YEARS AFTER launching a business based on his inventions, LifeWave Founder and CEO David Schmidt is still guided by an inventor’s heart. With 139 patents and counting, David has grown LifeWave from a patch company to a health technology company to its newest evolution—a life technology company with solutions for both people and planet. From its first products to last year’s record growth, LifeWave continues to be propelled by David’s passion for innovation, research and creativity.
FOUNDED: 2004
HEADQUARTERS: Draper, UT
TOP EXECUTIVE: David Schmidt, Founder & CEO
PRODUCT CATEGORY: Health and Wellness
DAVID SCHMIDT / Founder & CEO “
I GET TO INVENT for a living, which is what I wanted to do since I was eight years old .
Standing in Thomas Edison’s lab in Menlo Park, New Jersey, young David Schmidt had his very own lightbulb moment. It could have been the spirit of invention in the air or being surrounded by Edison’s personal belongings and artifacts, but David knew that day that he would be an inventor.
“My parents and I went on this tour, and there was a fellow that worked there who had worked with Thomas Edison,” David recalled. “He picked me as a volunteer to press a button on this machine to make it run. When we left, I told my dad I wanted to be an inventor. I was so blown away by this laboratory—I could see my future. I started taking my father’s tools and my mother’s kitchen appliances apart to see how they worked. I invented for fun for most of my life. Then in my twenties, I joined an inventors’ club and won a few awards. That’s when I had the opportunity to start inventing professionally, I took it, and ended up where I am today.”
After college, David spent years developing inventions and building businesses, eventually attracting the attention and business of the US Navy. Tasked with improving energy and stamina for Navy SEALS who are often awake for days at a time on missions, David discovered a potential solution— an invention that would ultimately serve as the foundation for his LifeWave technology.
“I was asked to see what kind of technology I could create to improve the survivability of the crew for a mini sub,” he explained. “The SEALS were going on missions that were 30 hours, 60 hours long. What if we had a way of communicating with the body to tell the body to make more energy? The approach that I settled on was a new method of phototherapy; a new method of stimulating the skin with light
where we could use light to communicate with the body and ask the body to create more energy. And, in this case, increase fat burning since we get more calories from burning fat than carbohydrates.”
David had invented a way to put light to work to maximize health, stimulating the body with low levels of light to trigger biochemical reactions at the cellular level. This new phototherapy technology—worn as a patch powered by the body’s heat—uses light to communicate to the cell, supporting certain biological responses specific to each patch, including the flow of cellular energy and the increased production of antioxidants and copper peptides that are critical for a host of wellness benefits.
“The benefit of elevating this peptide is pretty extraordinary,” he explained. “One of the things this peptide will do is reset 4,000 genes in the body to a younger, healthier state, and one of those genes is called P 63. This gene mobilizes stem cells. In other words, we put the patch on using only light; it causes an increase in this peptide; and, as a result, your body mobilizes stem cells.”
While David had no previous direct selling experience, after sharing his new technology through traditional networking and seeing its power, his perspective changed. “I thought all of this happened because of networking. If we had a network marketing company that we could run properly, then I thought there was a huge opportunity.”
And he never looked back. LifeWave was launched with three products—one for improving energy, another for relieving discomfort and a third for improving sleep—all harnessing the power of light to stimulate the body’s healing power. But an inventor never sleeps, and a few years later, David was ready to evolve his company into something more. In 2006, he discovered a way to cause light to synthesize different peptides in the body, launching new products focused on anti-aging and performance. Then in the late two thousands, another evolution of LifeWave was introduced to the world.
“Over 10 years, we invested over $4 million into stem cells and regenerative medicine,” he shared.
“That effort produced over 70 patents globally and one of the pieces of intellectual property was a new method of using light to activate stem cells. In 2018, when we went to market, that innovation completely changed the business profile for LifeWave. When we released that product, we began to see these incredibly dramatic testimonials and incredible results from our lab testing and clinical studies. As a result, we started to see growth year-over-year. So, in 2018, we did roughly about $23 million in sales. In 2019 we reached $63 million in sales, and, of course, last year we hit over $400 million in sales.”
Today, LifeWave is available in 80 countries, shared by the company’s 700,000 brand partners.
THERE’S AN OPPORTUNITY for the network marketing industry to evolve into something much better than what it is today.
DAVID SCHMIDT / Founder & CEO “
David’s dreams for LifeWave are bigger than ever before—and his dreams for the industry are just as powerful. He’s seen the impact direct sales can have for both customers and brand partners and is eager to share what lies ahead for LifeWave, as the company celebrates 20 years in the industry.
“There’s an opportunity for the network marketing industry to evolve into something much better than what it is today,” he said. “It’s taken us a long time to get here, but the formula that we’ve used is first to innovate, to create new technology that has an enormous amount of value for everyone and then to patent those innovations to protect them. When a brand partner gets involved with LifeWave, they know we have a technology that a competitor does not have.”
LifeWave’s technology offerings are set to change in a big way later this year, representing another evolution for the company. David shared that LifeWave is transitioning from a health technology company to a life technology company, with products in the pipeline that address agriculture, power generation and more. This major shift will allow LifeWave to provide light-based technology designed to improve quality of life with products that are good for the environment, sustainable and empowering to customers and brand partners.
“We’re going to dramatically expand beyond where we are today in the coming years. This vision covers about a ten year period, but because this year is our 20th anniversary, we are releasing a new technology that will pave the way for expanding the vision of the business. This new product offers a new way to provide light therapy for the body that doesn’t exist today.”
Whether he’s pioneering new technology or shifting the industry by leading LifeWave forward, David is excited about this new chapter.
“My life is amazing because of the brand partners that built the company. I get to invent for a living, which is what I wanted to do since I was eight years old. I owe our brand partners such an enormous debt of gratitude for taking this product out to market where it can help people. I’m incredibly excited about this new technology that we’re releasing later this year, and what that’s going to mean for the ability to transform lives for the better.” DSN
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BY JENNY VETTER
ENERGY EXPERT AND ENTREPRENEUR MICHAEL FALLQUIST has brought sustainable energy solutions to communities across the country for much of his career. While he started his career in energy working for a company with a traditional business model, he quickly came to understand a different kind of power—the power of network marketing.
As a first-time entrepreneur with no network marketing experience, Michael launched Viridian Energy in 2009. It was an overnight success, selling clean energy and solar products to hundreds of thousands of customers within a few short years through a network marketing sales model.
“When I started my first business, Viridian Energy, I didn’t know the first thing about network marketing. At that point, I was a business school graduate who wrote a business plan, and network marketing was the distribution channel,” he explained.
MICHAEL FALLQUIST / Founder & CEO “
IF DONE RIGHT—with a laser focus on products that are great for the customer and a community that attracts world-class entrepreneurs— then network marketing is the perfect vehicle for positive change .
“Through that experience, I saw the perfect fit between energy and network marketing and, more importantly, that network marketing was so much more than a distribution channel. If done right—with a laser focus on products that are great for the customer and a community that attracts worldclass entrepreneurs—then network marketing is the perfect vehicle for positive change.”
Michael is back in the energy network marketing industry with his new venture, Think+. “I was inspired to get back into energy network marketing because of the massive opportunity in community solar,” he said. “I’ve never seen a better energy product for the consumer—guaranteed savings of up to 30 percent on their electricity bill for up to 20 years—and it’s a great fit with deregulated electricity, as both products help customers control their energy costs.”
Michael is leveraging his many years in the energy industry and his decade of network marketing experience in his current role as Chief Executive Officer of Think Energy and Think+, the company’s direct selling channel. Think+ launched in January 2023 and has enrolled over 8,000 independent Energy Advisors who share the company’s sustainable energy solutions to customers in 16 states and Washington, DC.
Traditionally, deregulated energy options and community solar are shared through direct mail or door-to-door salespeople, brief or high-pressure sales windows that don’t effectively capture the benefits of these alternatives. Think+ harnesses the power of network marketing, allowing Energy Advisors to share the better energy choices they’re enjoying personally through clean electricity or community solar power with friends, family and beyond.
Michael and his team have made both joining Think+ and building a business simple through an affordable enrollment fee and annual membership fees, no monthly fees and a straightforward, rewarding compensation plan.
“Everything we’re focused on is creating a different way to think about the industry,” he said. “We have a very simple approach with very low barriers to entry and a clear path for Energy Advisors to be successful, earning back their enrollment fee in many cases by simply enrolling their own home. It starts with our core electricity product, which is long-term price certainty for the consumer, married with this technology that unlocks value and empowers the customer to earn cash back. And then it’s on the community solar side with locked-in savings that they can earn month-over-month simply by enrolling in government-sponsored programs.”
LAUNCHED: 2023
HEADQUARTERS: Connecticut
PRODUCT: Energy
TOP EXECUTIVE:
Michael Fallquist / Founder & CEO
As more states deregulate electricity and new community solar markets open, Michael and Think+ are eager to introduce savings, sustainability and opportunity to customers through the company’s growing field of Energy Advisors. Powered by proprietary technology and well-capitalized with private equity investment, Think+ is positioned to thrive in the years to come.
“I’m so excited about the size of the opportunity,” Michael said. “With the community solar market in the early stages of development and our proprietary technology providing us with a competitive advantage in clean electricity, Think+ is well positioned to be a legacy company that will leave a lasting positive impact in the communities we serve and in the lives of our Energy Advisors. I could not be prouder of everything we’ve accomplished in the past year and look forward to a very bright future ahead.” DSN
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DSA PROVIDED a straightforward and direct response to the March 15th letter from the Federal Trade Commission (FTC) regarding the 2004 Staff Advisory Opinion that discussed lawful compensation structures and the Commission’s recent updates to Business Guidance Concerning Multi-Level Marketing . Our message was clear—the letter and guidance are inconsistent with established law.
DSA usually welcomes the Commission’s guidance on how FTC staff interprets pertinent law. However, the letter and updated guidance are contrary to court rulings and confuse rather than protect millions of individuals engaged in direct selling in the United States.
The association would have anticipated that the agency would reflect existing law, including the most recent litigated decision from October 2023 in their case against Neora. Instead, the Commission doubled down on the positions taken in that case, which the court rejected.
By ignoring well-established legal principles, the Commission’s unsupported pronouncements could arbitrarily and unfairly chill the opportunity direct selling provides to millions of people to purchase
BRIAN BENNETT
Sen ior Vice President, Government Affairs & Policy, DSA
products at a discount and/or earn modest supplemental income.
Vigilance is a watchword at DSA. This is why the Association will continue to voice its disagreement with FTC staff interpretations of the law and legal business practices. In consultation with our members, DSA will share its concerns and more robust legal interpretations not only with the FTC, but other important audiences such as courts, policymakers and the public.
Although the statements were disappointing, they were not surprising. The FTC has been articulating these positions in public and private forums with DSA members for the past few years. It is not a rarity inside the Beltway that an industry disagrees with legal interpretations taken by a regulator.
This is not the end of dialogue with the FTC. DSA remains steadfast in its commitment to champion the direct selling business model to all parties, especially how companies should be legally and ethically structured. Our role and vigilance is more important than ever to ensure clarity in the marketplace and protection of consumers and direct sellers. DSN
1329 South 800 East Orem, UT 84097 801-515-0977 squire.com
For nearly 50 years, Squire & Company has provided financial excellence and NetSuite expertise for clients in the Direct Selling industry. We offer personal service, responsiveness, and expertise in all areas.
400 Linden Oaks, Suite 320 Rochester, NY 14625 844-258-3006 payquicker.com
PayQuicker is the leading global payout provider to direct selling organizations. Instantly make secure and compliant payouts to your field in local currency across the globe with our award-winning solution that provides the largest selection of flexible and modern spend options.
540 NE 4th Street Fort Lauderdale, FL 33301 discover@i-payout.com 866-218-4668 i-payout.com
Since 2007 i-payout has been the leading payment choice for pay out and pay in solutions. We pride ourselves on exceptional service paired with integrated and customized solutions.
900 Wilmeth Road McKinney, TX 75069 info@lacoretechnologies.com lacorepayments.com
LaCore Payment Technologies is a payment platform designed to support direct selling companies globally. Our services include: Global connectivity to 150 countries in 50 currencies, including direct connectivity to most alternative payment types, secure tokenization, customized fraud solutions, including our proprietary Fraudhawk™, advanced reporting tools, and online dispute management.
11905 Sara Road Laredo, TX 78045 956-712-8842 minergroup.net
Miner Group LLC offers solutions for the Mexican Market! For over 30 years, we have helped companies expand to or optimize their operations in Mexico. We offer product and ingredient evaluations, customs clearance, regulatory compliance, label translations, and logistic services for the Mexican market.
8500 Governors Hill Drive Cincinnati, OH 45249 866-622-2390 worldpay.com
Worldpay powers businesses of all sizes to make, take, and manage payments. Whether online, in store or mobile, you’ll find Worldpay at the heart of great commerce experiences globally.
1160 N. Town Center Drive, Suite 100 Las Vegas, NV 89144 info@metricsglobal.com 702-757-9600 metricsglobal.com
We are the industry’s leading payments partner, long-established advocate, and problem-solver. Our unified commerce & payments platform will connect you to a global marketplace, enable your international expansion strategy, and fuel your exponential growth plans. Let us show you how.
2201 Long Prairie Road, Suite. 107-316 Flower Mound, TX 75022 407-891-9265 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.
727 N 1550 E, 3rd Floor Orem, UT 84097 877-551-5504 nex.io
Nexio simplifies and accelerates payment processing in the Direct Sales Industry. Nexio offers swift deployment to distributors, streamlined payment operations and seamless integration with software solutions allowing you to navigate payment complexities with ease and confidence.
4505 Newpoint Place
Lawrenceville, GA 30043 sales@amwarelogistics.com 866-888-2999 amwarelogistics.com
Handle fulfillment for many direct sellers. DSA member with 15 fulfillment centers, nationwide, for 1–2 day ground delivery to 95% of U.S. population. Offer comprehensive B2C fulfillment services, including complex kitting, plus discounted parcel shipping based on our large volume of freight.
11551 E 45th Ave. Unit C. Denver, CO 80239 720-990-5642 quickbox.com
“Whether your products are headed direct to your end customers’ doorstep, to a big box retailer, or to an Amazon warehouse, QuickBox will help you deliver a seamless experience that keeps your customers coming back for more!”
1615 Clark Blvd.
Brampton, ON Canada L6T 4W1 905-564-2115 x2 canadacartage.com
CCLS is your gateway to turn-key e-commerce sales and distribution in Canada. With fulfillment centers across Canada, our pick, pack and ship options, and real-time inventory visibility, we will help your business grow. We are NHP Site Compliant, Health Canada licensed, and GMP Compliant.
900 Wilmeth Road
McKinney, TX 75069 214-817-4802 lacorelogistics.com
LaCore Logistics provides distribution and order fulfillment services. Our highly automated distribution center provides both domestic and international direct-to-consumer shipping solutions. We offer omni-channel fulfillment solutions ranging from marketplace fulfillment for leading marketplaces to businessto-business fulfillment for leading retailers.
1701 Clint Moore Road Boca Raton, FL 33487 800-523-2682 mig.cc
Founded in 1979, Multi Image Group (MIG) is a women-owned, family-run creative event production company fueled by innovators, strategists, and technologists who craft custom live, hybrid & virtual experiences for some of the world’s biggest brands.
6380 Silver Sage Dr. Park City, UT 84098 dianna@adimeetings.com 321-423-7229 adimeetings.com
ADI meetings is a women owned global corporate incentive travel, meetings, and event management company. We curate once-in-a-lifetime experiences for your attendees, connecting top achievers to your brand while understanding and meeting the needs of your industry.
5840 Red Bug Lake Road, Suite 140 Winter Springs, FL 32708 407-915-9060 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!
8305 Via Vittoria Way Orlando, FL 32819 craig@directsalesexperts.com 407-489-3351 directsalesexperts.com
Direct Sales Experts is a highly confidential Global Executive Search Firm with over 50,000 top direct sales executives on file. Let us help you find A Players to grow your business.
844-344-7177 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.
33 Franklin McKay Road
Attleboro, MA 02703 800-445-1007 eadion.com
Dion’s jewelry solutions are perfect for career path, sales & recruiting, corporate anniversaries and incentive travel recognition awards.
1080 Caribbean Way Miami, FL 33132
Royal Caribbean International’s Corporate Sales Team 800-345-7225 (SELECT 2, THEN 1) 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.
4801 Spicewood Springs Road Suite 250 Austin, TX 78759 512-690-2134 momofactor.com
Momentum Factor is a leading digital risk management firm specializing in online compliance monitoring and global online reputation management services for the direct selling industry. Our passion and mission are to protect companies from the brand and regulatory risks associated with online and social media technologies.
5717 Legacy Drive, Suite 250 Plano, TX 75024 sales@now-tech.com now-tech.com
With over 35 years of industry experience, NOW Technologies is the premier provider of mobile tech tools designed to grow revenue and recruiting for our Direct Selling clients. The NOW platform provides powerful features such as sampling, social selling solutions, smart alerts, prospecting tools, content management, and onboarding & training capabilities.
9503 Princess Palm Avenue Tampa, FL 33619 sales@bydesign.com 813-253-2235 bydesign.com
Award-winning social commerce software for affiliate, influencer, MLM, party plan, and social retail companies. Our turnkey back-office solutions include Wayroo, delivering advanced commerce, comment selling, and payment solutions.
1600 Viceroy Drive, Suite 125 Dallas, TX 75235 214-367-9933 exigo.com
The leader in commissions, back office and eCommerce software and services. The global leader in cloud-based Platform-as-aService (PaaS) for direct selling companies. An open framework for billion-dollar giants to startup companies. Exigo supports MLM, Party Plan and Affiliate models, operating in single global markets.
1208 E. Kennedy Blvd., Suite 222 Tampa, FL 33602 813-277-0625 flightcommerce.com
Global Operations Management Software. Advanced Comp Plan Programming. Sales Force Backoffice & Automation. Web Site Design & Replication.
1875 S. State Street, Suite 3000 Orem, UT 84097 801-431-4900 infotraxsys.com
Software & SaaS solutions for startup, emerging, and global direct selling companies. See our ad on the back cover.
55 Shuman Blvd., Suite 350 Naperville, IL 60563 866-698-3848 thatchertech.com
Thatcher Technology Group provides Sales Force, Compensation and Incentive Management Software for the Direct Selling Industry.
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