DIRECT SELLING’S ALTER EGO / HAVE YOU FULLY EMBRACED ECOMMERCE?
HIGH STAKES LEGISLATION / CLASS ACTION LAWSUITS COULD BE A CAUSE FOR CONCERN
THE 1:1 DIET / 40 YEARS OF TRANSFORMATION
JORDAN ESSENTIALS / STANDING SOLID WINNING BIG HAVING FUN
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CHARLIE SANBORN | VP OF SOFTWARE ENGINEERING,
YOUNG LIVING
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.”
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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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I APPRECIATE DSN’S TIRELESS WORK to report the news around directselling, but also how they share the positive stories surrounding it. DSN is a reputable and powerful voice that always strives to edify the channel and highlight the direct selling companies that are doing the right things .
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Leadership and Team Building BY HEATHER CHASTAIN
Direct Selling’s Identity Crisis BY BRETT DUNCAN
The Rising Tide BY KATRINA EASH, JOHN SANDERS, JASON CAMPBELL AND TRISTAN KIRK
International Focus: 1:1 Diet 40 Years of Transformation BY JENNY VETTER SPOTLIGHTS
Company Spotlight: Jordan Essentials Standing Solid, Winning Big. Having Fun. BY JENNY VETTER
Young Company Spotlight: LiveGood Fresh Concept from Industry Leaders BY JENNY VETTER
DEPARTMENTS FOR YOU / FOR YOUR FIELD / Your Essential Monthly Motivation BY CHELSEA HUGHES
WORKING SMART / Maximize Your Incentive Trip Budget BY DIANNA CRNKOVICH
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JUNE 4-6, 2024
Announcing the first-ever Direct Selling University (DSU) Europe—a free two-day in- person event! Register today to join 200+ of your European executive peers, subject matter experts and visionaries united by the shared goal of growing your business in 2024 and beyond. DSU is free for all active direct selling corporate executives and event supplier sponsors. Share the invite with your international colleagues today!
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MOOREHEAD Marketing, Brand Strategy & Direct-to-Consumer Industry Expert | Podcast host
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Be a part of the conversations as we discuss important topics of interest like:
n The impact of the Green Deal
n Independent contractor status and regulations
n AI: what it can do for your company plus can’t-miss legal and regulatory insights
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To register and for more information, scan the code or visit DSNEvents.com
n Effective compensation plan strategies for today’s microentrepreneur
n And so much more!
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WHAT AN EXCITING TIME we had at DSU. I was so pleased to connect with so many of you! The DSN team feels this event was our best yet—and from the feedback we are getting, it seems that you agree. We are so grateful for the candor of our speakers; the enthusiasm of our audience; and, of course, the generosity of our sponsors.
DSU allows us to see what is and isn’t working on a granular level but also gain a big picture understanding of the overarching issues facing the channel. It’s invaluable— not only for us—but for the hard-working executives that continue to make this channel so powerful for so many. We are already hard at work on our next two events—DSU Europe happening in June in the United Kingdom and our Fall DSU which will take place in September in Irving, Texas.
One issue impacting so many companies revolves around field retention and motivation. How do we reward and connect with not only the legacy leaders who helped us achieve our initial success but with the young up and comers currently driving growth? It’s complicated and challenging at times. We take a deep dive in this month’s cover story with some helpful perspectives and solutions for your consideration.
This issue is jam-packed with valuable information from knowledgeable industry partners. Brett Duncan explains why direct
selling companies need to fully embrace ecommerce. Our friends at Winston & Strawn inform us of a potential new legal risk impacting the channel. And Heather Chastain wraps up her incredible 10-part Generational Insights series. So much information to unpack and utilize—I know you’ll come away from each article with invaluable action items and insights.
Our Company Spotlights shine bright this month as we profile The 1:1 Diet, Jordan Essentials and launch a new feature—a Young Company Spotlight on LiveGood. We believe the channel has much to learn from all three of these companies, each at a different stage of their journey.
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! I hope to see you all in the UK in June!
All the best,
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n Beautycounter Enters Fragrance Category
n Legislation to Reverse Independent Contractor Rule Passes Committee
n Evoco Becomes LR Health & Beauty Major Investor
n UK DSA Rebrands to Include D2C Retailers & Affiliate Marketing
n UW Reaches One Million Customer Milestone
LORDE + BELLE EXPANDS TO UK, MEXICO AND CANADA
Lorde + Belle announced its pre-launch into the UK, Mexico and Canada. Customers and representatives in the market will now have access to the company’s blend of skincare, makeup and wellness products that are formulated with clean, vegan ingredients and without hormone disruptors or preservatives. The company will also partner with RealHer, a beauty brand, to amplify its mission to empower individuals to look and feel their best.
Qyral announced it is expanding operations into Puerto Rico. In addition to the company’s weight management system, prescription products Semaglutide and Tirzepatide will be available to local residents through the company’s platform.
This international expansion is expected to help the company broaden its footprint in the wellness industry and connect with a new audience searching for advanced weight management solutions.
FARMASI LAUNCHES IN UNITED KINGDOM UK
Farmasi announced its official launch into the United Kingdom (UK) with inaugural events in London and Birmingham attended by more than 1,500 people. The company already has a presence in more than 35 countries and expects the UK to stand out as a key area for innovation and growth.
EUROPE
ZINZINO ENTERS INTO STRATEGIC PARTNERSHIP WITH ACN EUROPE
Scandinavia-based Zinzino announced a strategic partnership that would allow it to acquire ACN’s European distributor database after ACN finalized plans to wind down its direct selling operations in Europe. This distributor database will be integrated into Zinzino’s existing technical platform, which is expected to “create growth through the synergies that arise in the joint networks.”
This new acquisition is part of the company’s broader strategy to further strengthen its distribution power, access new markets and leverage its product portfolio in new customer areas.
Avon International announced a new phase in its efforts to diversify its sales model with the opening of its first franchise stores in Romania. The inperson shopping experience of a retail store will be supported by an enhanced online presence in the market as well.
eXp World Holdings, the holding company for eXp Realty, announced continued growth for its eXp Luxury real estate program. The white glove service, which provides sellers with global exposure and concierge service, has already amassed 1,100 members across the US, Canada and Puerto Rico since its debut in October 2022. The luxury program is now going global with expansion into Australia, New Zealand, South Africa and the United Kingdom.
PM-International celebrated its latest international expansion effort with the opening of a subsidiary in Sofia, Bulgaria. This subsidiary will lead administration and logistics for operations in Bulgaria and will support the company’s future growth in the region, which is expected to stretch throughout the Balkans.
The company has also invested in a new office and warehouse space which will support five new local jobs and serve as the customer support hub and local contact for distributors in the area.
Neora announced it has acquired ACN Korea as part of Neora’s strategic and ongoing expansion across the Asia Pacific market.
ACN Korea is known as a “Top 20” company in its sector. With this acquisition, both companies will reside under the Neora brand and will work together to create a platform for entrepreneurial growth in direct sales in Asia Pacific.
Urban Retreat announced the next phase of its global expansion strategy with the opening of its Australian market. The company has a strong presence in Europe, Canada and the US and described Australia as the “natural next step.”
“Australia is a tremendous opportunity for Urban Retreat and its consultants to share ethical beauty and wellness on a larger scale,” the company wrote in a statement.
DANNY LEE , 4Life President and CEO and Chairman of the Direct Selling Association (DSA), joined a coalition of direct selling executives for a CEO Congressional briefing at the US Senate Office Building. In addition to hearing from United States Senators Marsha Blackburn (R-TN), Markwayne Mullin (R-OK), and Mike Lee (R-UT), the coalition met with Liana Guerra, Chief of Staff to Congressional Direct Selling Caucus Co-Chair Darren Soto (D-FL); Leighton Huch, Policy Director, New Democrat Coalition; Kevin McDermott, Labor Policy Director, House Education and Workforce Committee (Minority); Kevin O’Keefe, Professional Staff Member and member of the House Education and Workforce Committee (Majority); and Rebekah Armstrong, Senior Advisor, Senate Health, Education, Labor and Pensions Committee (Minority).
The White House Direct Selling Association briefing was welcomed by the senior advisor to President Joe Biden before Lee and DSA President Joe Mariano shared remarks about “the importance of direct selling to the nation’s economy and family households throughout the country.”
“I’ve made gaining influence the clarion call of my tenure as DSA Chairman,” Lee said. “This event provided a perfect exercise for industry executives to represent and promote our collective interests to national policy makers.”
LIFEVANTAGE CORPORATION continued its “Rise Up” theme with Momentum Academy 2024 in Nashville, Tennessee. The summit welcomed consultants to participate in workshops, seminars and keynotes that offered deep dives into topics like enrollment, retention and business advancement strategies for entrepreneurs.
The company also debuted TrueScience TrueProtect Daily Mineral Sunstick and the US launch of its revamped TrueScience Activated Skincare collection.
“Momentum Academy was a resounding affirmation of our ‘Rise Up’ ethos,” said Steve Fife, LifeVantage President and CEO. “It was exciting to witness the LifeVantage community come together, fueled by inspiration and armed with actionable insights to propel these entrepreneurs to new levels of success. This event is a pivotal part of our journey upward, as we continue to advance our innovation agenda and Activation messaging to empower our consultants.” DSN
The Federal Trade Commission (FTC) issued a letter to the Direct Selling Association (DSA) to restate its position on the interpretation of the Koscot test. The letter was sent by Lois Greisman, Associate Director, who expressed concern about a 2004 FTC letter that addressed the commission’s stance on compensation based on personal consumption.
Greisman stated that the current federal staff believes the commission’s position in the 2004 letter has been “repeatedly misinterpreted to assert a primary source test for determining whether a company operates an illegal pyramid scheme,” including the assumption that if more than 50 percent of a company’s revenue is generated by sales of products or services to end users, the company is not a pyramid scheme.
Instead, the letter insists that a “primary source test” does not exist, citing the Koscot and Vemma trials to say that the courts will look at whether or not a company’s compensation plan incentivizes recruiting with rewards and whether or not participants purchase or consume products in order to qualify for incentives to determine evidence of a pyramid scheme.
The FTC also sent a letter to the Direct Selling Self-Regulatory Council (DSSRC) raising concern about the program’s guidance about income disclosure statements, saying all costs must be tracked, even though individual sellers determine how to invest and build their own businesses.
Industry analysts believe the letters are an effort by the commission to reframe the Koscot test as it prepares for future litigation. DSN
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.
Las Vegas Salt Lake City Singapore Dublin Mexico City S ENE G EN CE R EA L P EO PLE. R EA L STO RI ES.For the full articles, visit directsellingnews.com/ announcements
JENNIFER KNOTT CHIEF COMMUNICATIONS OFFICER, SCOUT & CELLAR
Scout & Cellar announced that Jennifer Knott, previously Chief of Staff, has been named Chief Communications Officer. Knott joined Scout & Cellar in 2017 as Director of Business Development and has served in a number of leadership positions including Vice President of Field Operations.
Knott will now lead Scout & Cellar’s communications, marketing, customer support and human resources. She will also oversee the development of the company’s Environmental, Social and Governance (ESG) initiatives.
CHRIS STUCHLAK CHIEF SALES OFFICER, SCOUT & CELLAR
Scout & Cellar announced that Chris Stuchlak has been promoted to Chief Sales Officer. Stuchlak joined Scout & Cellar last year as the head of Field Leadership Development and brings more than two decades of executive experience within the industry.
In this new role, Stuchlak will lead the company’s strategic planning and field KPI growth to drive revenue within the organization’s direct sales channel.
MICHAEL LEVITT BOARD OF DIRECTORS, HERBALIFE
Herbalife announced Michael Levitt has returned to serve on the company’s board of directors. Levitt served as Lead Director from 2011 to 2014 and will now resume his position as director. Kevin Jones, who has served as director since 2021, will now step down from the board.
Levitt brings extensive experience in investment management and has held leadership roles at wellknown investment firms, including Morgan Stanley and Smith Barney.
LANDEN FREDRICK MANNATECH, PRESIDENT & C HIEF EXECUTIVE OFFICER
Mannatech announced Landen Fredrick has been promoted to the role of President and CEO following the retirement of current CEO Al Bala. Bala will continue to serve as a company advisor where he will focus on field and leadership development. Fredrick joined Mannatech in 2006 as the Senior Director of Business Development Solutions and has served in a number of roles within the company since then, including most recently as President and Chief Operating Officer.
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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
STACY SOVA US SALES DIRECTOR, THERMOMIX
Thermomix welcomed Stacy Sova as the company’s new US Sales Director. Sova has more than two decades of experience in the industry as a consultant, corporate leader and field trainer. In this new role, Sova will lead core and strategic sales initiatives and oversee regional sales teams.
“Stacy’s strategic vision and proven track record will be pivotal in driving growth in the US,” said Fredrik Lundqvist, Thermomix CEO for the US and Canada. “With her unique combination of empathetic coaching to build leaders and deep understanding of market dynamics, Stacy’s addition to our team will further solidify Thermomix as an American leader in helping families across the country get dinner on the table and create culinary wow moments.”
Herbalife announced that John DeSimone has been named Chief Financial Officer (CFO). DeSimone succeeds Alex Amezquita, who will remain with the company.
DeSimone has been an executive with Herbalife for 17 years, including serving as President and Co-President and most recently as Special Advisor to the CEO.
“John is a talented and proven finance leader, who has immense experience with Herbalife and a successful track record,” said Michael Johnson, Herbalife Chairman and Chief Executive Officer. “We believe with Stephan Gratziani as President driving top-line growth and John focusing on our commitment to expand margins, reduce debt and improve overall financial performance, we are well-positioned to return to growth and maximize shareholder value in both the near and long term.”
eXp Realty announced key leadership appointments that will strengthen and expand its current human resources and technology departments.
Renee Kaspar has been appointed Executive Vice President and Chief Human Resources Officer. Kaspar brings more than two decades of experience in global talent and people management to the role.
Seth Siegler was named Chief Information Officer and will now collaborate with agents to lead development and testing of beta solutions.
Sumanth Kamath will now serve as Chief Technology Officer. Kamath joined eXp Realty five years ago and was a key part of creating Luna, eXp’s AI chat bot.
Felix Bravo has been appointed Vice President of Global Growth and will now lead eXp’s global expansion efforts.
eXp Realty announced that Shoeb Ansari, Chief Information Officer; Jim Huang, President of eXp Commercial; and Mike Vein, Executive Vice President of People, will be stepping down from their respective positions. DSN
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.
Staggering stats illustrate the impact of AI.
BY DAVID LEEWITH THE FIRST HALF OF 2024
NEARLY OVER, the implementation of Artificial Intelligence (AI) technologies seems to still bring more questions than answers. As the direct selling channel continues to find ways to use AI platforms to enhance strategies, an eye must be kept on the overall impact this rapidly evolving technology is having on the job market, which will affect both corporate employees and independent distributors.
AI is projected to inject a staggering $25.6 trillion into the global economy. It’s imperative to not only recognize the potential impact but also proactively harness AI technologies to drive innovation and sustainable growth.
AI ADOPTION could necessitate the reskilling of at least 20% of enterprise employees, highlighting the critical importance of ongoing learning and development programs.
Insights from a report by McKinsey Digital underscore AI’s potential to automate tasks currently absorbing 60 to 70 percent of workers’ time. This revelation isn’t merely about job substitution but rather signals an opportunity to reimagine workforce dynamics. By embracing AI technologies, companies can augment their workforce; enhance operational efficiency; and unlock new levels of productivity.
The AI market is poised for exponential growth, with Statista projecting it to surpass $1 trillion by 2028. With over 25 percent of American startup investments directed toward AI-related ventures in 2023, the direct selling channel can gain a competitive edge.
As AI adoption accelerates, direct selling companies are navigating how to implement different applications throughout the business. According to Statista, AI adoption could necessitate the reskilling of at least 20 percent of enterprise employees, highlighting the critical importance of ongoing learning and development programs. By investing in reskilling initiatives, companies can empower their employees with the skills needed to thrive in an AI-enabled environment, fostering a culture of continuous learning and innovation.
The integration of AI extends beyond operational efficiencies into marketing strategies, as evidenced by McKinsey’s findings that 14 percent of business leaders regularly use generative AI in marketing and sales. For direct selling, AI-powered marketing automation presents a unique opportunity to enhance customer acquisition and retention strategies. By leveraging AI-driven insights, companies can personalize marketing campaigns; optimize customer engagement; and drive measurable business results. Additionally, AI technologies enable direct selling companies to harness the power of predictive analytics, allowing for more informed decision-making and targeted marketing initiatives.
Ethical AI usage emerges as a major concern, with only 39 percent of US adults trusting current AI technology’s safety and security, according to Mitre. Prioritizing ethical AI practices builds trust and transparency with employees, distributors and customers. By adhering to robust ethical guidelines and ensuring data privacy and security, companies can mitigate potential risks and foster a culture of trust and accountability.
According to Forbes, 77 percent of people surveyed are concerned that AI will cause job loss in the next year, illustrating widespread concern across the entire job market. It’s a valid concern, considering the McKinsey report estimated that AI could displace 400 million workers worldwide, and that by 2030, AI-related advancements could affect close to 15 percent of the global workforce. However, research coming out of the World Economic Forum projects that AI technologies will also create around 97 million new jobs. DSN
4 out of 5 retailers are worried about financial risks.
Direct sellers deserve lower-cost payment services.1 © 2024 Worldpay, LLC and its aff iliates.
Worldpay Push to Account gives direct selling retailers access to fast, transparent, and compliant payouts globally – delivered by a provider you know and trust.
Find out more at www.worldpay.com/payments/payouts
1 The Global Innovation Report, “Creating advantage in uncertainty”, 2023, FIS
Interactive apps have become a staple to enhance events.
BY DAVID LEEEVENTS AND CONFERENCES
are no longer just a weekend of inspirational talks and breakout sessions listened to with a pen and notepad in hand. Interactive event apps are redefining attendee experiences and event management strategies. The technology fosters engagement; increases communication; and creates a personalized experience while continuing the conversation after the event.
These apps serve as digital hubs where organizers can orchestrate event details seamlessly, while attendees gain access to essential information and interactive features at their fingertips. Here are some of the key features that can enhance events and conferences that are vital aspects of the direct selling space.
78% OF COMPANIES using mobile event apps attribute them to a positive event ROI.
1 / AGENDAS AND SCHEDULES
Attendees can easily access event schedules, session details and speaker bios, empowering them to plan their itinerary efficiently.
2 / EXHIBITOR LISTINGS
By providing comprehensive exhibitor listings, apps allow attendees to easily explore products, services and booth locations.
3 / CUSTOMIZED AGENDAS
Attendees can personalize their event experience by creating customized agendas tailored to their interests and preferences.
4 / RECOMMENDATION FEATURES
Many event apps offer personalized recommendations for sessions, exhibitors and networking opportunities based on attendee preferences
5 / INTERACTIVE FEATURES
Live surveys can gauge attendee satisfaction with hosts, sessions, venue atmosphere, logistics and more. Push notifications instantly keep attendees informed of any changes or directions.
6 / NETWORKING TOOLS
Attendees can connect with peers, speakers and exhibitors, fostering valuable professional relationships and networking opportunities. Some features include quick and easy sharing of contact info.
THE SIZE OF THE GLOBAL MARKET for mobile event apps is predicted to increase at an 18% CAGR.
EVENT APPLICATIONS are used by 83% of event organizers.
78.7% OF EVENT TECHNOLOGY PROVIDERS currently on the market have been developing event technology for over six years.
67.2% OF EVENT MANAGEMENT PLATFORMS offering mobile event apps feature lead scanning as a feature.
62.3% OF EVENT MANAGEMENT
PLATFORMS featuring mobile event apps include the ability to house multiple events.
57.4% OF EVENT MANAGEMENT
PLATFORMS with mobile event apps offer attendee-to-attendee contact exchange.
50.8% OF EVENT MANAGEMENT
PLATFORMS offering mobile event apps provide session/room capacity monitoring.
TRAININGS AND WORKSHOPS have the highest event app adoption rate (64%).
(SOURCE: AGORIFY.COM)
Mobile event apps offer a wide range of features aimed at enhancing interactive engagement and empowering attendees to maximize their event experiences. Live polling and Q&A sessions foster real-time interaction between attendees and speakers, promoting dynamic engagement, and fostering meaningful dialogue during sessions. Attendees can also rate speakers and sessions in real time. Additionally, integration with social media platforms enables seamless sharing of event highlights, photos and insights, which goes a long way in expanding the event’s reach and encouraging community engagement.
Networking tools such as attendee-toattendee contact exchange, chat functionalities and match algorithms facilitate networking and collaboration, enabling attendees to broaden their professional networks and establish valuable connections. According to a report by G2, 91 percent of event organizers consider event apps crucial for event success, while Markletic reports that 78 percent of companies using mobile event apps attribute them to a positive event ROI. These statistics highlight the significant impact of mobile event apps on attendee experiences and event outcomes. By leveraging insights provided by these apps, organizers can customize their event strategies to align with attendee needs and preferences, which increases engagement and satisfaction. However, it’s important to keep the app experience as an enhancement to the event and not a distraction from what’s happening on stage. DSN
IRECT SELLING HAS BECOME AN INCREASINGLY POPULAR AVENUE for individuals to start their own businesses and earn income.
To gain a comprehensive understanding of the perceptions surrounding direct selling, the Direct Sales Generational Engagement Study was conducted by Bridgehead Collective and carried out by The Center for Generational Kinetics, led by President Jason Dorsey.
In this first-of-its-kind study, Bridgehead Collective chose to partner with the Center for Generational Kinetics, which has led more than 100 research studies in all major industries. Their seminal annual study, The State of Gen Z, formed the basis for the best-selling book, ZConomy and has been consistently featured in national and global media including The Wall Street Journal, New York Times, CNN and many more.
I set out to discover America’s perceptions of entrepreneurship, the gig economy and—more pointedly—direct selling. Statistical significance was of ultimate importance in this analysis, so the study represents a wide-sweeping sample that is reflective of America, with an equitable mix
of genders, demographics, employment status, education levels and location that allows for a 97 percent confidence level. This study aimed to explore the attitudes, motivations, limitations and beliefs about starting a business in America, as well as uncover perceptions of direct selling, recruiting strategies, onboarding methods, distributor retention and preferred payment structures.
OF GEN Z AND YOUNGER MILLENNIALS SAID THAT HELPING AT LEAST 3 OTHER PEOPLE GET STARTED IN THE BUSINESS WOULD MATTER TO THEM. THAT MEANS THAT 82% OF THOSE IN THE STUDY WOULD NOT FIND THIS FULFILLING.
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 Leadership and Role of Team Building
In this series, we are digging deeper into each of these categories, focusing in this article on all things related to Leadership and Team Building.
As we shared consistently throughout this series, the news surrounding all generations is that EACH generation is radically different in how they want to be prospected, talked to and approached about direct selling opportunities. We have highlighted that a “One Size Fits All” approach simply doesn’t work anymore, and this was never more evident than in all responses related to our final topic—leadership and the role of team building.
THIS RELUCTANCE to want to build a team; share the business opportunity with others; and a general dissatisfaction with the idea of leading others was the one dim spot in an otherwise fundamentally encouraging study.
Last month we focused on retention and highlighted how interconnected retention is to recognition. One of the many reasons that we have historically valued retention is that we have long held this belief that the longer a consultant stays with our organizations, the longer we (and our field leaders) have to “drip on them.”
You know this approach, right? Take someone who has joined the business and only wants to invest a little bit of time—yet we keep dangling all these benefits in front of them about how much better their lives would be if they just…recruited more; earned that trip; moved up in leadership— fill in the blank. The underlying premise to this approach is a belief that this study absolutely and completely debunked.
This idea that everyone would want to build a team if only we rewarded it properly, marketed it well and encouraged them enough is simply not true for Gen Z and Younger Millennials. And, in fact, this constant marketing of rank advancement and recognition based primarily on team building activities actually serves as a significant discouragement and is effectively a turn off from brand affiliation.
In fact, this reluctance to want to build a team; share the business opportunity with others; and a general dissatisfaction with the idea of leading others was the one dim spot in an otherwise fundamentally encouraging study. Not only was this one of the areas that Gen Z and Younger Millennials were aligned on, their alignment and negativity on the topic indicates the biggest challenge that we will all face in the years to come.
WE ALSO HAVE TO START to embrace the idea that leadership may not be what everyone is looking for and, increasingly, that many are actively NOT looking for it.
But first, let’s understand how this reluctance to building teams is showing up in the data. This is a topic that was embedded in many of the questions on other subjects and, as with much of the study, the themes became quite clear and consistent. When asked about rewarding behavior and activity that they would find fulfilling, only 18 percent said that helping at least three other people get started in the business would matter to them. That means that 82 percent of those in the study would NOT find this fulfilling. This can be very instructive when we think about our Fast Start programs; the emphasis we have in the early days about “sharing
the opportunity” with others; and how we talk to and motivate this next generation of leaders.
We also must start to embrace the idea that leadership may not be what everyone is looking for and, increasingly, that many are actively NOT looking for it.
But what are the implications for this? Widespread, indeed. Not the least of which is potentially rethinking the allocation of dollars within your compensation plan to better reward the activity that the next generations want to engage in. How can you start to shift dollars from what we have historically thought of as the “back end” of the plan to the “front end”?
I know, I know…heretical, right? And certainly not without complication—but also so necessary for the future. Better to start making shifts now so you can avoid massive change when it becomes an inevitability.
But this goes far beyond just compensation plans. It is fundamental to how we think about our business as a whole; how we execute omnichannel strategies; how we reward and recognize current leaders; and every other facet of the business. Additionally, we encourage a fresh round of thinking on how we talk about leadership. Gone are the Boss Babes…and taking their place are a calmer, anti-hustle culture, much more socially aware and conscious group of sellers.
People who want to share not sell. People who want to encourage not lead. People who are happy to have a mentor but feel incapable of being one themselves.
So when we posed the question last month, are Leadership and Team Building really relevant anymore, the answer is….sort of. But it looks a lot different for the next generations. Embracing this challenge, opening our minds to change may very well be the most important learning of all from this round of generational research. 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.
BY BRETT DUNCAN
“
If the
majority of your
revenue is submitted via orders online, then you are an ecommerce company.
AT MY CHURCH, THE PASTOR LOVES TO TALK ABOUT IDENTITY. He preaches how fundamentally important your identity is in understanding pretty much everything else you do. More importantly, it has a profound influence over what you expect from yourself, as well as what others expect from you.
To make his point, he often walks us through this little exercise of call and response.
Cows…moo.
Dogs…bark.
Birds…chirp.
Pigs…oink.
He goes on and on, and we all have a good laugh like first graders as we answer his prompts. Then, he always gets to the main point. What you do doesn’t determine who you are. Who you are determines what you do.
Put another way, our actions don’t determine our identity—our identity determines our actions.
It’s a profoundly simple truth that can often be found at the heart of so many challenges we face as humans.
It’s true for direct selling companies, too.
1 / EMBRACE ECOMMERCE
Whether we acknowledge it or not, direct selling companies already operate as ecommerce companies. It’s time to fully commit to the technology and data required to succeed.
2 / A BIGGER TOOLBOX
I believe there’s an identity that we direct sellers aren’t embracing, and because of that, we’re struggling at times to find our way in the modern world. I’m not suggesting we abandon our identity as “direct sellers,” or “people builders” or even “an opportunity.” But rather there’s a major void in the tapestry that constitutes our complete identity. And by not embracing that part of our identity, we’re missing out on huge opportunities for our business right now.
From a purely mechanical standpoint, the vast majority of the orders you receive come via a transaction on your website. They have for years now. These can be from customers who directly order online. It could be a “party order” where a group of orders are submitted at once. It could be wholesale orders placed by your distributors who then may resell in some fashion. One way or another, for most companies, I would assume nearly 100 percent of your revenue technically comes through your website. For other companies who may leverage storefronts or trade booths of some kind, it may be as low as 80 percent, but even then your distributors are likely purchasing their “stock” online first, to then resell in person. If the majority of your revenue is submitted via orders online, then you are an ecommerce company. It’s who you are.
To attract affiliates and the next generation of direct sellers, companies must offer the tools that allow them to thrive such as high-converting landing pages and shareable shopping carts.
3 / BE FAST AND RESOURCEFUL
Ecommerce companies act quickly and allocate the right funds, staff and technology to staying ahead of the curve. Don’t get left behind by hesitating or miscalculating what you will need.
But we direct sellers tend to not think that way. We are direct selling companies who use ecommerce. Direct selling is who we are, and ecommerce is something we use. Since direct selling is our identity, we let who we are determine what we do.
“
Distributors are our primary lead generators. In many cases, they are the only traffic source.
The KPIs we track; the decisions we make; the meetings we have; the resources we invest in; the people we hire and even the culture we nurture are all shaped and sparked first by our identity as direct sellers.
And there’s absolutely nothing wrong with that. We’ve often seen where executives who join our industry who don’t necessarily embrace that identity can struggle. The gap between who they think we are and who we think we are can so often widen beyond repair. And that’s because there’s a discrepancy in our identity.
But when nearly 100 percent of our revenue is received via ecommerce in some form or fashion, we cannot simply consider ourselves to be users of ecommerce. We must recognize that we are ecommerce.
If you identified as an ecommerce company, how would that impact what you do? How would it shape the KPIs you track; the decisions you make; the meetings you have; the resources you invest in; and the people you hire? I would think there would be some major differences. Let’s look at a few obvious examples.
Most direct selling companies have a person who keeps an eye on website analytics, and they likely provide a report once a month, or twice a month. At ecommerce companies, everyone has access to the analytics and keeps an eye on them every single day.
Ecommerce companies are fanatical about conversion rates, abandoned carts, traffic sources and marketing automation. These aren’t data points that one person is privy to and interested in—the C-Suite and everyone else are obsessed with these numbers. They understand that, for example, a 0.3 percent increase in cart conversions can mean millions in added revenue.
But as long as you’re only a direct selling company who thinks of ecommerce as a tool, and not your identity, you’ll never act like this.
What makes direct selling unique is the value we put on people, and the communities and cultures we create. Our distributors are more than just “salespeople.” We don’t ever want to change that. But, our people, technically speaking, are also our primary traffic sources. They are our primary lead generators. In many cases, they are the only traffic source.
ECOMMERCE COMPANIES ARE FANATICAL about conversion rates, abandoned carts, traffic sources and marketing automation. These aren’t data points that one person is privy to and interested in—the C-Suite and everyone else are obsessed with these numbers.
Ecommerce companies are constantly analyzing traffic sources, too. But they certainly don’t settle for just one. Affiliates and Influencers are traffic sources, but so are social media ads, search engine results, podcast placements and much more.
As more direct selling companies venture into the omnichannel space, we’re basically admitting that we’re open to treating our distributors as a traffic source, not the traffic source. And just like direct selling, every traffic source, every channel, requires a certain amount of knowledge and savvy to reap acceptable rewards. Typically, that’s knowledge and savvy that most direct sales companies don’t have. But ecommerce companies do.
Budgets for tech and digital vary quite a bit across direct selling companies. Most companies that I work with tend to underbudget their tech needs. That’s not the case for everyone, but even many who “budget appropriately” end up over-spending due to a lack of understanding of their true tech stack needs and what’s available in the marketplace.
I’ve been a part of way too many strategic discussions where—when push comes to shove–you find out that a $50 million company is taking six months to roll out a major enhancement that a $25K investment could make available next month.
The logic (or lack of) behind this way of thinking drives me absolutely nuts!
“
Affiliates are way more interested in conversion rates than c ommission rates.
Ecommerce companies invest in development and plugins and apps and integrations and platforms at a moment’s notice because they understand that tech stack enhancements are at the very core of who they are. They’re an ecommerce company.
Similarly, ecommerce companies value front-end and back-end development like nothing else because every idea, every promotion, every incentive, every campaign requires development. It is the lifeblood of growth for an ecommerce company.
What about at your company? Ever feel understaffed in the tech department? Ever get frustrated by how long certain projects take because the team is swamped on other projects that were approved three months ago? Most of the time, the problem isn’t the ability of the team; it’s the size of the team.
If everything needs to be “developed” (and it does), then your development resources are typically way more important than any other department in your company. It may require you to make some tough decisions and shift some budget and resources away from other areas. But you can’t afford to let something so obvious hold your company back. Ecommerce companies wouldn’t.
When I first started in this industry, the primary sales tool at the company I worked at was a magazine. Quickly, it shifted into a video. Followed by apps, social media tools and so much more since then.
The modern direct seller—or the affiliates and influencers we want to become direct sellers—are looking for fundamental elements of ecommerce as the tools of choice today. They’re looking for high-converting landing pages. They want segmented marketing automation. They want streamlined, shareable shopping carts. Affiliates are way more interested in conversion rates than commission rates.
The real wake-up call is this: today’s direct seller is more likely to get the tools they’re looking for from a “traditional” ecommerce company than they are a direct selling company.
That one hurts, huh?
So not only does the operation of our companies rely on identifying as ecommerce, but so does the very attraction of new direct sellers. We can’t continue launching affiliate programs and influencer campaigns and customer rewards and not also offer the core elements of ecommerce that make these programs succeed.
It’s amazing how well we’ve done as an industry despite lagging so far behind in ecommerce. But that luck is running out…very quickly.
I was born and raised in Kentucky, so I still identify as a Kentuckian. But I’ve also lived in Texas much longer than I lived in Kentucky, so I’m a Texan, too. They are two elements of my identity, and it dictates a lot of things I think, do, appreciate and more.
We are direct selling; no one’s trying to take that away from us. But we’re also ecommerce.
Even if we don’t want to be. When almost every dollar you receive is received via a website, you are ecommerce.
So many of the challenges and frustrations we’re experiencing today are rooted in the fact that we aren’t embracing part of our core identity. It’s time for that to change. I truly believe direct selling’s greatest opportunity is in holding fast to our true differentiators while finally acting like the ecommerce companies that we are.
Dogs bark. Pigs oink. Cows moo.
And ecommerce companies… DSN
BRETT DUNCAN specializes in helping direct selling companies evolve into modern social selling models while still maintaining the culture and essence of who they are and what makes them different. He is Co-Founder and Managing Partner of Strategic Choice Partners, a business development firm that helps direct selling companies take their next steps. From marketing services to compensation plan design to operations and distribution support, Strategic Choice Partners is a frequently sought-out partner within direct selling.
Messaging and comp plan strategies that empower new distributors and engage long‑term leaders—and why companies must find the right balance between the two.
BY BETH DOUGLASS SILCOXFIGURING OUT how to keep all levels of the field tuned in and turned on over the long-term is a multi-faceted industry challenge worth talking about.
OFTEN TALKS ABOUT “THE FIELD” AS IF IT IS NEATLY DEFINED BY SOME UNIVERSAL DIRECT SELLING PARAMETERS.
And maybe there was a time when the fields of direct selling companies were more static and uniform, but now the diversity in their makeup from one company to the next is as unique as the motivations of the people who fill their ranks and the strategies needed to engage them.
Today, direct selling fields are disparate groups defined internally by the cultures, brands and messaging of the companies they represent. They are always evolving and always a challenge. Productive field engagement takes hard work and diligence on the part of companies, as well as a good measure of finesse when marketplace challenges dictate change.
1 / SPREAD THE WEALTH
In the current marketplace, direct selling companies continually need to do more with less in order to reach revenue growth and profitability goals. There’s a clear through line from those goals to field productivity, so figuring out how to keep all levels of the field tuned in and turned on over the long-term is a multi-faceted industry challenge worth mastering.
A direct selling company’s engaged critical mass—customers, distributors, retailers and leaders—determine that company’s size and success. Together, they drive growth. Customers buy; distributors and retailers build solid customer bases; and leaders build customer bases and downline organizations. But key is keeping each of these groups engaged and productive for as long as possible.
So, companies work hard to retain customers through innovation, product selection, auto ship… you name it. They develop marketing campaigns and evolve how they define affiliation to entice
Maintain a balance between honoring the contributions of legacy leaders that helped build the company with rewarding the young up-and-comers who are currently driving growth.
2 /
Focus more on customer acquisition and retention. Empower your new recruits to build the type of business that will stand up to scrutiny AND reward performance.
3 / LISTEN, LEARN AND GROW
Keep your field engaged, active and effective by seeking their input on the issues that matter most. Pay attention to their preferences and find a way to meet them.
distributors and retailers to engage with their brands; promote and sell products; and earn money. And they spend inordinate amounts in both time and money on field leaders, through leadership events that motivate with training, storytelling and recognition, not to mention compensation plan earnings.
Hungry junior leaders typically drive growth. They tend to be newer to the company and very much in production mode. If a company is growing junior leaders, that company is likely growing.
“
WE TALK A LOT about culture and relationships because part of that relationship is understanding why someone joined, why they stayed and what motivates them now.
BRIAN DILL / Vice President of US Sales, Norwex
“We start by setting clear and realistic goals with new Energy Advisors (EAs), ensuring they have a set direction and purpose,” Lauren Valdes, Director of Think+, Think Energy said, about growing and engaging new leaders.
Think Energy’s EAs are trained on a digestible, duplicatable 5-3-5 system that lets them set early goals without being overwhelmed by the intricacies of the compensation plan. As their motivations naturally shift toward team building and mentorship, inclusivity becomes a priority.
“We understand that junior leaders bring their own unique perspectives to the table, and we work hard to cultivate an environment where all levels are welcome to share ideas, observations and feedback directly to us…We’re creating a space where everyone feels valued, appreciated and connected,” Valdes said.
“We believe if we can bring the leader on the journey with us, no matter the change, they feel like they have their voice heard…They help us lead as much as we lead them,” Amanda Moore, Co-Founder and Chief Growth Officer, Red Aspen, said.
“There’s a difference in all levels of leaders because every person has their own situation. In our business, that’s why we talk a lot about culture and relationships because part of that relationship is understanding why someone joined; why they stayed; and what motivates them now. That changes throughout their journey with Norwex,” Brian Dill, Vice President of US Sales, Norwex said.
Keying into the personal realities of field organizations could offer direct selling companies innovative engagement solutions that also meet their long-term, corporate productivity needs.
QuiAri, for instance, understood what was most important to people who represent their brand, so they developed the fastest promoter payout in the industry with 5-Minute Pay. Norwex’s compensation plan pushes greater percentages of compensation toward product commissions. So regardless of the time spent with the company, all field representatives earn the same 35 percent on selling products.
Think Energy taps into their associates’ competitive spirit and harnesses it alongside a distinctive compensation plan structure. “We’ve specifically crafted our compensation plan, so teams formed at higher ranks hold greater financial value. This approach naturally motivates our leaders to continue to build with each rank advancement, ensuring their personal success is tied to the growth of our organization as a whole,” Valdes said.
“In addition to higher compensation, as a leader grows in rank we provide better perks and communication with each level of leadership,” Genie Reese, Co-Founder and Chief Strategy Officer, Red Aspen explained, about forming the connective tissue that binds their transparent culture.
“We overcommunicate with our leaders; this is key to connectedness. Our goal is for leaders to always feel ‘in the know’ and prepared. At the end of the day, leaders can only do their best job if they are fully equipped with knowledge and details,” Moore agreed.
“Genie, Amanda and I each attend over 10 events across the country each year to connect with leadership in the field. This is in addition to the corporate events and the incentive trip we host. Through these individual team visits, we are able to connect, build relationships and collect valuable, personalized feedback and ideas from our leaders throughout the country,” Jesse McKinney, Co-Founder and Chief Executive Officer, Red Aspen, said.
“Recently, we have been working to improve our corporate event strategy. We have seen firsthand how successful events can be in building the bonds between us and our leaders,” Red Aspen’s Chief Operations Officer, Matthew Kuzio, added.
“For us, in an industry where change is constant and innovation is paramount, nurturing open communication and collaboration allows us to navigate changes and challenges more effectively,” Think Energy’s Valdes said.
Change is a constant, but not all people or companies are equally pliable. The rigidity or flexibility of a company dictates their ability to meet challenges, which in turn, affects their marketplace competitiveness and relevance.
To thrive and grow in this modern, competitive, gig-oriented, customer-centric business landscape depends a great deal on better understanding what individuals in the field need, in order to effectively engage them at all levels for longer.
For instance, a direct selling company’s field messaging may focus on building a full-time career and leading a team, but that may not connect with the gig-oriented associate who is only looking for an extra $300 a month. Meeting that realistic personal goal will keep this individual happy and engaged with the brand, while leadership messaging may fall on deaf ears. So, a deeper look at the pragmatic needs of the field may be one path toward new engagement opportunities.
FOR US, in an industry where change is constant and innovation is paramount, nurturing open communication and collaboration allows us to navigate changes and challenges more effectively.
LAUREN VALDES / Director of Think+, Think Energy
Recruitment and leadership will always be a part of the direct selling equation. But another field engagement consideration could be to foster a culture that defines success by productivity and not title. The promise and messaging of direct selling has leaned heavily on ranks and lifestyle for a generation of leaders and, in some cases, established politicallybased field cultures, that can be averse to change and create division.
But by centering success around productivity, companies could motivate and engage their fields with a new kind of success story, one that better aligns with current industry goals. For example, a new focus on productivity could reward leaders with 2,000 customers on auto ship. The goal is for distributors to build businesses based on successful customer acquisition and retention through enhanced service and product sales. So, companies should start empowering and encouraging new recruits to build customer-centric businesses from Day One. This automatically incentivizes the distributor to remain productive as they advance in leadership ranks. It also allows companies to meet their long-term field engagement and growth targets.
BY CENTERING
SUCCESS around productivity, companies could motivate and engage their fields with a new kind of success story.
Re-engagement is perhaps the next big unlock that direct selling companies face, and this is where things can get sticky.
There comes a time in the cycle of many field leaders where team management eclipses all else because their downline hasn’t been built to a point of independence. And Gordon Hester, Chief Sales Officer of the Americas, PM-International, believes there’s inherent danger in this management stage because the further from production these leaders get, the less they understand what it takes to build a business now.
“Time becomes a problem because at some point they’ve not been building for so long, they don’t know how anymore. They don’t know what’s going on in the marketplace and how to be competitive and relevant,” Hester said.
These successful, long-term leaders often represent what is possible within a direct selling business. Historically, they are the business builders that built
the largest customer bases and teams. Often, they play significant roles in a company’s overall success. That being said, over time—sometimes decades in the case of legacy companies with 30+ year leaders— more and more compensation gets paid out to these legacy leaders, who are no longer building or actively in production.
Those once sustainable payouts look different when business climates change with declining revenues and rising expenses. That leads companies to dig into spreadsheets looking for ways to cut back and right size internal costs.
“Right now, that rightsizing has a lot of focus on these legacy leaders. The simple reason is that for a company to be profitable, they can’t continue to pay out huge sums of money where they aren’t getting production,” Hester explained.
The struggle for companies is set between the loyalties they have to these leaders and the high costs they will pay in honoring them—worst-case scenario: the future of their companies. This reality is driving a focus on compensation plan changes, which require both a reduction in total compensation plan payouts and moving more commissions to retail commissions vs. overrides to leadership, Hester outlined.
Heather Chastain, direct selling industry consultant, believes generally there are a couple of ways companies can approach the challenge.
RIGHT NOW, that rightsizing has a lot of focus on these legacy leaders.
GORDON HESTER / Chief Sales Officer of the Americas, PM International “
Historically, field incentives, promotions, trips and recognition have been title/rank driven, rather than performance driven. Activity/performance requirements would be a good way to increase recognition of up-and-coming leaders and drive growth. But communication with legacy leaders about requirement changes prior is essential, explaining the company’s desire to provide a playing field for everyone and reiterating that in today’s world it is important to lead by example.
An honor-based approach would create a new level, status or circle that provides ongoing recognition, respect and reverence for all leaders who have been loyal to the company. “Typically, when entered in that type of a program, that group is no longer eligible for certain incentives or programs, but they do have a clear list of things they will receive, particularly at events. You can also provide different compensation for that level, if appropriate within your compensation plan,” Chastain said.
Some legacy companies are looking to re-engage and motivate their top-level leaders, often with cash, creating dangerous ripples that can be felt industry wide. Other older companies are taking an even more problematic, short-sided approach. “Some legacy companies are skirting the true intentions of direct selling and buying leaders from other companies. That’s their main focus because they are trying to keep up and create growth through others versus creating growth through their organizations,” Norwex’s Dill said.
Furthermore, companies that are 5-10 years old are diverting from traditional direct selling altogether and adopting single-tier, no-recruiting, no-leadershipdevelopment business models that won’t require large leader payouts in the future.
But no company can remain in perpetual rightsizing or flux for too long. Ultimately, the only option is to get revenue growing again. And accomplishing that will require change.
Nothing is certain or uniform about how this will play out, as some companies wrestle with the reality that they need to pay legacy leaders less, all while coping with the fear, possibility and fallout of those legacy leaders leaving and taking their teams with them.
Their current struggles highlight the need for direct selling companies of all sizes and ages to dig deep in terms of effective, long-term field engagement and develop strategies that balance the needs of the field with the needs of the company aiming for perpetual growth.
“Many of the initiatives we’ve implemented—including promotions, adjustments to our compensation and details regarding incentive trips and conventions—have been directly influenced by our field. Think+ is driven by their insights, and we’re fortunate to have a passionate group offering perspectives that we in corporate roles may not always see firsthand,” Valdes said.
Younger companies, perhaps because their messaging, cultures and compensation structures reflect a different marketplace, seem to be safeguarding themselves as best they can from the productivity impacts of future legacy leaders.
And those like Norwex, who aren’t suffering ill effects, believe prevention is paramount. “That’s the goal. That’s what we guard against every day. How do we remain true to who we are and focus on where we are going,” Dill said.
No one can pretend to have all the answers or the secret sauce, but hope may lie in the form of field organizations and companies with cultures that are amenable to change, transparent and share information readily, as well as messaging and reward systems that prioritize customers and productivity and that lead to engagement at all levels. It might take hard, introspective conversations and listening to experienced voices to deepen C-Suite thinking and proactively plan for the day their companies succeed in all the ways they aspire to.
Regardless, engaging and empowering the entire direct selling field—from the newest recruit to the most honored legacy leader—so that everyone finds success is a challenge that direct selling companies and this industry is ready to meet. DSN
MISCLASSIFICATION LAWSUITS
PRESENT REAL AND SPECIFIC CHALLENGES TO ALL DIRECT SELLING COMPANIES.
BY KATRINA EASH, JOHN SANDERS, TRISTAN KIRK ANDJASON CAMPBELL BY KATRINA EASH, JOHN SANDERS, JASON CAMPBELL AND TRISTAN KIRK
A DIRECT SELLER’S HIGHEST EXPOSURE in distributor misclassification lawsuits typically comes from claims that can be brought as class actions. “
OVER THE PAST YEAR, we have seen a rising tide of both threatened and filed class action and Private Attorneys General Act (“PAGA”) litigation in California against direct sellers alleging that the companies are misclassifying their distributors as independent contractors.
These lawsuits are driven by plaintiffs’ attorneys looking to recruit distributors and offer them the opportunity of a windfall recovery if the suit is successful. The basis of the claims is that independent distributors should have been classified as actual company employees and were misclassified as independent contractors.
Although the distributors are wholly independent, as anyone with knowledge of industry practices knows, the plaintiffs claim their associated companies failed to adhere to things like mandatory work breaks, lunch breaks, overtime pay, etc. Almost half a dozen direct sellers have been sued on such claims, and California plaintiffs’ lawyers have made it clear they intend to sue many more direct sellers. Indeed, we have seen multiple advertisements from plaintiffs’ attorneys seeking clients for additional class action and PAGA misclassification claims to be filed soon.
Here we briefly discuss the mechanics of California distributor-misclassification litigation and recommended action your company can take in light of the litigation.
A direct seller’s highest exposure in distributor misclassification lawsuits typically comes from claims that can be brought as class actions, many of which have a four-year statute of limitations. Accordingly, the potential class consists of California distributors who sold the direct sellers’ products or services during the preceding four years and continuing until the case resolves. Such claims can be defeated by an arbitration agreement and class action waiver, but the law surrounding such provisions is consistently changing. We highly recommend that direct sellers have legal counsel review their arbitration agreement and class waivers to ensure that the provisions account for the most recent legal precedent.
Along with the class claims, California distributormisclassification litigation also typically involves PAGA claims. Although individual PAGA claims can be compelled to arbitration under a recent Supreme Court decision, non-individual PAGA claims cannot. That means that direct sellers could end up fighting these claims on two fronts against multiple different parties.
1 In arbitration fighting individual distributor claims; and
2 In court fighting the non-individual claims asserted by the individual distributor on behalf of the other distributors in the PAGA group.
1 / THIS ISN’T JUST A “CALIFORNIA COMPANY” PROBLEM
Any company with distributors in California can face these class actions and PAGA actions. Take proactive measures now to put yourself in the best position for any litigation.
2 / REVIEW YOUR ARBITRATION AGREEMENT AND CLASS ACTION WAIVER
Make sure the arbitration and class waiver provision in your distributor agreements account for the most recent legal precedent.
3 / PENALTIES ON PAGA CLAIMS MAY BE STACKED
This means the fines can become very costly very quickly.
And of course, doing so gets very expensive very quickly.
While PAGA damages exposure is typically not as high as class exposure, PAGA exposure is by no means minimal. PAGA claims have a short statute of limitations—one year running back from the submission of a PAGA notice to the California Labor Workforce and Development Agency.
WHILE PAGA DAMAGES EXPOSURE is typically not as high as class exposure, PAGA exposure is by no means minimal. “
And if the plaintiff successfully proves its PAGA claims, PAGA penalties can be assessed at $100 per alleged employee per pay period for the first violation of any California Labor Code section, and $200 per alleged employee per pay period for each violation thereafter. And the claims may be stacked for each alleged claim. Plaintiffs’ counsel also usually allege that companies are willfully undertaking misclassification of their independent contractors, which can result in even higher potential penalties.
The practical impact of PAGA’s penalty structure is that plaintiffs often come to the table with very high demands. These demands vary and are highly dependent on, among other things, the number of California distributors selling the direct sellers’ products and services.
At present, direct sellers are typically left to defend PAGA claims on the merits in high-stakes, high-cost litigation. And unfortunately, plaintiffs in these lawsuits allege that the “Direct Salesperson Exemption”—which would allow direct sellers to proceed under the more lenient Borello standard and avoid the stringent “ABC” test—does not apply to the modern direct sales model.
If the court determines the stringent ABC test applies, direct sellers must then prove:
A Their distributors are free from the control and direction of the company in connection with the performance of the work, both under the contract for the performance of the work and in fact.
B Their distributors perform work that is outside the usual course of the hiring entity’s business.
C Their distributors are customarily engaged in an independently established trade, occupation or business of the same nature as the work performed.
Failing to meet any one of these factors could result in distributors being classified as employees, and the plaintiffs bringing these misclassification claims allege that direct sellers cannot establish at least elements B and/or C.
If, however, the less stringent Borello test applies, the principal test is whether the direct seller “has the right to control the manner and means of accomplishing the result desired,” and the direct seller does “not exercise any degree of control merely by imposing requirements mandated by government regulation.”
In addition, the following factors are considered under the Borello test:
A Whether the one performing services is engaged in a distinct occupation or business.
B The kind of occupation, with reference to whether, in the locality, the work is usually done under the direction of the principal or by a specialist without supervision.
C The skill required in the particular occupation.
D Whether the principal or the worker supplies the instrumentalities, tools and the place of work for the person doing the work.
E The length of time for which the services are to be performed.
F The method of payment, whether by the time or by the job.
G Whether or not the work is a part of the regular business of the principal.
H Whether or not the parties believe they are creating the relationship of employer-employee.
WE RECOMMEND DIRECT SELLERS review their distributor-facing agreements with legal counsel to ensure they are in the best position to satisfy the Borello test. “
No single factor is dispositive.
We recommend direct sellers review their distributor-facing agreements with legal counsel to ensure they are in the best position to satisfy the Borello test.
In sum, given recent developments in California distributor misclassification litigation,
and the high stakes of such litigation, direct sellers should take a close look at their distributor-facing agreements to assess whether they can satisfy the Borello factors and ensure their arbitration agreement and class action waiver align with current legal precedent. DSN
WINSTON & STRAWN LLP represents dozens of direct selling companies in a wide range of disputes and consulting matters. The firm has successfully defeated class actions alleging pyramid schemes and securities claims, enforced non-compete and non-solicitation agreements against departing distributors, prosecuted individuals violating intellectual property rights, and counseled clients on regulatory compliance issues and publicity crises. The firm also regularly advises direct selling clients undergoing government investigations, including those brought by the FTC.
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
MEDIA INFLUENCER / Dirk Zee, AI Coach SALESFORCE
While AI can feel overwhelming, AI Coach Dirk Zee helps decode the mysteries of this intimidating new world. As a “Top AI Voice” on LinkedIn, Zee promises to make AI easy; help you find shortcuts to success; and achieve fast results. His educational content explains artificial intelligence on a level anyone can understand, while also keeping his followers apprised of the latest developments. For a deeper dive, check out his free newsletter and ebooks.
In this thought-provoking book, New York Times bestselling author Adam Grant examines the art of rethinking, or learning to question what you think you know, positioning you for excellence in work and life. Grant suggests that in our constantly evolving world, the ability to rethink and relearn might matter more than actual intelligence. The ability to let go of views that no longer serve us opens the door to humility, mental flexibility and curiosity.
Fathom is a free AI-driven notetaker that works with Zoom, Teams or Google Meet to record, transcribe, highlight and summarize your meetings almost immediately after your call ends. Fathom eliminates the need for manual notetaking, which allows you to fully engage and focus on the conversation at hand. If you have frequent virtual meetings, this time-saving app is a must-have!
“ The happiness of your life depends upon the quality of your thoughts. —MARCUS
With over 60 billion messages shared on digital platforms per day, the average consumer is exposed to 4,000-10,000 ads daily. This overstimulation has changed the way we think, work and communicate. Research shows that we now have less than three seconds to capture someone’s attention. Brendan Kane wrote Hook Point to help promoters package messages in succinct ways that “hook” the viewer and make the sale.
British entrepreneur, author and life coach Jay Shetty launched his podcast, On Purpose, in 2019. It was downloaded 64 million times in its first year alone. Now rated the number one mental health podcast in the world according to Forbes, Shetty interviews experts, thought leaders, doctors, athletes and celebrities to discover how to be happier, healthier and more healed. The podcast is available in video format on YouTube or in audio format wherever you listen to podcasts.
Learn how to manage your emotions in five minutes a day with Ahead: Emotions Coach. Billed as the “Duolingo for emotional intelligence,” this app personalizes a program for you to understand and process your emotions. Developed by behavioral scientists, Ahead creates an easy-to-follow process to overcome unhelpful thought patterns and discover what drives you through interactive reflections, activities and emotion tracking. Paid subscriptions start at $9.99/month. 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 60+ 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 73 ]
The Power of Alignment with John Alcala, CEO of IT WORKS!
TRANSITIONING FROM WALL STREET to global success in the field side of direct selling alongside his wife SheriLynn, John has recent stepped into the role of CEO. From his grassroots beginnings to his current leadership role, John’s insight into the direct selling landscape is unmatched.
IN THIS EPISODE John and Wayne delve into strategies for navigating industry shifts with a focus on simplification, technology adoption and cultivating a vibrant company culture.
[ EPISODE 74 ]
Navgating Disruption with Nick Johnson, Chief Field Officer, Medifast and President, OPTAVIA
RANKED #15 ON DSN’S 2023 GLOBAL 100 LIST, with $1.1B in annual revenue, Medifast / OPTAVIA is a rapidly expanding health and wellness company focused on lifelong transformations through scientifically-backed products and personalized coaching.
IN THIS EPISODE Nick shares the value of establishing trust with the field and creating a unified brand and business model.
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!
HELP YOUR PEOPLE AND BUSINESS GROW
NOMINATE YOUR TOP PERFORMERS TODAY!
The SHIFT podcast, hosted by Blake Mallen, sets a bold new standard for excellence in direct selling. It’s a community and platform from a trusted source where top performing distributors can share their stories to motivate and inspire micro-entrepreneurs across the globe.
The SHIFT not only helps your existing distributors grow as people, it can help you grow in numbers! We talk about what’s working today, empowering your field with the right tools and the right mindset to finally make The SHIFT!
The pod is off to a great start—and the momentum is growing! We’re giving you the power to shine a spotlight on today’s trailblazers and power players by using the QR code to nominate your top performing field leaders.
“A *MUST* podcast for any entrepreneur looking to level up in business”
“All the gas you need to set fire to your business!”
“Modern twists on traditional selling dynamics!”
“Golden nuggets of tips, strategy and encouragement!”
TOP 100 in US*
TOP 50 in Canada*
#2 in Italy*
11K+ unique downloads
14 high-impact guests and counting *in entrepreneurship podcasts.
JUST ACROSS THE POND, international weight loss leader, The 1:1 Diet by Cambridge Weight Plan celebrates its 40th anniversary this year, marking four decades of transformed lives and healthier outcomes around the world. But the company has more than four decades to celebrate. For ten years, employee stakeholders have maintained complete ownership of the company, shaping its ethos and values into something they believe will last for decades to come.
The 1:1 Diet of today has experienced an evolution of its name but has remained grounded in scientific research from the very beginning. While the company’s official launch date was in 1984, the earliest research into The 1:1 Diet began in the 1960s with the work of Dr. Alan Howard, who spent his life studying atherosclerosis, obesity and healthy weight management. In the 1970s, his work focused primarily on obesity and the development of a “perfect diet” that could serve people looking to shed large amounts of weight. In 1984, The Cambridge Diet became a commercially available product in the UK and has remained the cornerstone of the company’s product line.
THE 1:1 DIET products aren’t merely commodities; they’re vital for impactful change.”
CHRISTOPHER M C DERMOTT / CEO “
The Cambridge Diet was renamed “The 1:1 Diet” in 2018 because of the one-to-one relationships that lie at the foundation of the company, supporting both healthy weight loss and healthy business building.
“As we celebrate our 40th anniversary this year, our commitment to transforming lives remains,” shared Chief Executive Officer Christopher McDermott. “Through personalized support, ongoing scientific exploration and compassionate guidance, The 1:1 Diet continues to inspire individuals to achieve their weight loss aspirations and embrace healthier, happier lifestyles.”
FOUNDED: 1984
HEADQUARTERS: Corby, Northamptonshire, UK
PRODUCTS: Health and Wellness
TOP EXECUTIVE: Christopher McDermott / CEO
Scientifically proven with measurable results over four decades, The 1:1 Diet has helped thousands of people globally through its products and meaningful support from independent consultants across the UK and Ireland. When customers choose The 1:1 Diet, they select a personal diet consultant to work with who develops a unique weight loss plan based on each customer’s specific goals and needs.
The plan includes nutritionally complete products designed to replace at least one meal per day, depending on each customer’s individual needs, which could include shakes, smoothies, soups, cereal, snacks and complete meals. From morning porridge to savory meals, there’s something every customer will enjoy in a collection of 35 products. For customers who aren’t sure which options they’d love, the company offers assorted “taster packs” to try.
“The 1:1 Diet products aren’t merely commodities; they’re vital for impactful change,” Christopher shared. “Our range of nutritionally complete food products, such as indulgent shakes, satisfying bars and wholesome snacks, are developed to meet our dieters’ nutritional needs. And they’re tasty, too. What sets us apart is our commitment to convenience, nutritional completeness and personalized support—all woven into every aspect of our plan.”
The products are developed with the recommended levels of nutrients clinically proven to result in substantial weight loss through caloric restriction and improved diet. Each meal includes 169 health benefits related to the vitamins, minerals and other nutrient-dense ingredients included. But it’s truly the one-to-one support that makes all the difference.
IT’S OUR PRODUCTS, coupled with the support of a Consultant, that makes the magic.”
CHRISTOPHER M C DERMOTT / CEO “
“It’s our products, coupled with the support of a consultant, that makes the magic,” Christopher explained. “Our consultants are the heart and soul of The 1:1 Diet. Beyond selling products, they serve as trusted mentors, allies and partners in their customers’ weight loss journeys, inspiring millions to achieve their goals. Their dedication and personalized approach ensure that everyone receives tailored support, guidance and motivation from someone who understands their needs. Many consultants were once dieters themselves, making their support even more relatable and impactful.”
The company’s network of 6,000 consultants operates exclusively in the UK and Ireland, but the products are exported to over 15 countries around the world.
Over ten years ago, The 1:1 Diet became a fully employee-owned business, making it one of the very few direct selling companies in the world able to make this claim. Today, the company’s 185 employees, called employee stakeholders, have a significant stake in the success of both the business and the consultants in the field.
In 2014, the company embarked on a significant transition to 100 percent employee ownership, a move that symbolizes our commitment to empowerment and collaboration. This transformative step means that through a Trust, employee stakeholders own the business, granting them a significant stake in its success and a voice in decision-making. Recognized by the UK’s Employee Ownership Association as ‘EmployeeOwned Business of the Year’ in 2019, this transition is deeply ingrained in the company’s ethos and values, inspiring employee stakeholders to strive for excellence and innovation.”
These employee stakeholders work together on the company’s campus in Corby in Northamptonshire, north of Cambridge. This has been the company’s home since 1986 and serves as the corporate office, as well as the manufacturing center for The 1:1 Diet’s sachets, bars, meal packs and tubs. This team supports a busy field of consultants who often join after experiencing the power of the products for themselves. Christopher believes The 1:1 Diet opportunity stands apart from the competition in the busy health and wellness space.
“With over 40 years of transforming lives through weight loss and business ownership, we provide a solid foundation for success,” he said. “New consultants step into a leading earning opportunity from day one, tapping into a vast market of individuals seeking weight loss or maintenance solutions. They have the flexibility to mold their businesses according to their preferences, whether part-time or full-time, online or offline, with ongoing support and training provided. Beyond financial rewards, consultants can discover fulfillment in daily life-changing interactions, connecting with a broader network of peers to learn from each other and share best practices. With the freedom to mold their businesses, build teams and set schedules, consultants are empowered to make a tangible impact on others’ lives while relishing the flexibility and autonomy of entrepreneurship.”
Consultants enjoy the support of Christopher’s team of employee stakeholders dedicated to innovating new solutions for both customers and the field. A recently released mobile app provides consultants with a seamless platform to manage their businesses and gives their customers a convenient way to track their progress, order products and access plan-friendly recipes. New product developments are in motion to continue anticipating the changing needs of dieters, as their preferences and lifestyle demands continue to shift.
While the company has no immediate plans for further expansion, its global presence continues to grow, making The 1:1 Diet accessible to customers around the world.
“I’m most excited about our relentless pursuit of innovation,” Christopher shared. “Our ongoing technological advancements are transforming our manufacturing capabilities and enhancing the experiences of our consultants and dieters alike. These advancements enable us to deliver cutting-edge solutions, elevating the quality of service and support we provide while ensuring our commitment to continuous improvement and customer satisfaction.” DSN
NANCY BOGART HAS ALWAYS
DONE DIRECT SELLING HER WAY. Twenty-four years after launching a party plan business with no previous direct selling experience, she’s learned, adapted and achieved more than she dreamed possible—and today, her business is more successful than ever. In an industry that’s evolved dramatically in the last several years, Nancy believes that Jordan Essentials’ success lies in swimming against the current of industry trends and staying true to who the company has always been.
FOUNDED: 2000
HEADQUARTERS: Nixa, MO
PRODUCT CATEGORY: Personal Care Products
TOP EXECUTIVE: Nancy Bogart, Founder & CEO
OUR CONSULTANTS KNOW that whenever they buy something, they’re helping employ people with different abilities.
NANCY BOGART / Founder & CEO
Over the last two decades in direct selling, Jordan Essentials Founder and Chief Executive Officer Nancy Bogart has seen it all—customer trends, industry shifts, economic changes, technology advancements and more. And she’s learned that even when the world feels like it’s changing all around you, staying true to who you are is always the right choice
“I see a lot of companies just frankly changing who they are and trying to adapt when it’s a long game,” she explains. “I think our industry has completely forgotten that. If you look at our business, it feels familiar because we didn’t change who we are. You would see that while we did innovate and adapt over the last three years, we still stand pretty solid on our basic principles and the structure and the design of our company.”
Nancy launched Jordan Essentials in 2000, after designing a lotion bar inspired by her grandmother’s perfume. Her focus on safe, simple personal care products for the whole family has never wavered. Today, Jordan Essentials offers a range of skin and body products free of parabens, talc, aluminum, gluten and mineral oil, along with solutions for pets, home, kitchen and more.
The party plan business she started with a handful of consultants has adapted over the years, but Nancy remains committed to the model—even as many in the industry are moving away from it. She’s seen what the party plan model can do for her business and thousands of consultants and isn’t interested in the trends
“Having that ability to stay firm through all this— even as a party plan—it gives our consultants a sense of confidence. We have such a great retention rate. We just don’t lose leaders. There’s something to be said about that.”
For Nancy, consistency is key but adaptability honors both her consultants and the business she’s spent decades building from the ground up. And with so many years in the industry, she’s learned that staying flexible and listening to her consultants and customers generates loyalty that lasts Adaptability means even more at Jordan Essentials, as employees with adapted abilities make up a quarter of the company’s home office team.
“Our consultants know that whenever they buy something, they’re helping employ people with different abilities,” Nancy explained. “And my daughter’s one of them, which makes it really special. All four of my children work here. When people join our company they think, ‘oh, she’s not going anywhere.’ This is a really strong lasting story that’s going to be here for a long time. That gives us an advantage as well, because when they buy our products, they want to keep buying our products. And the story of how we do that is important as well: how we make the products and how we’re creating jobs in our community where there are so few.”
Post-pandemic, Nancy understands the importance of adapting to her consultants’ new needs, as the expensive time we’re living in affects families everywhere. While she was eager to get back to in-person events, she wanted to make attending field and leadership events accessible to everyone—whether they could afford to travel or not
“One of the things we added was a really robust virtual option. So, when we’re Zooming into our group for the event, I will get on and everybody at home gets a chance to chat with me. Events equal activity—we all know that. But you cannot pretend like your consultants are not feeling inflation, that they don’t feel what’s happening. Some of them are worried about their jobs. They have kids and stuff happening in their lives.”
Adaptability requires agility, and Jordan Essentials has been agile since the beginning. By manufacturing all its products at the home office headquarters, the company can nimbly make changes, launch new products and test new ideas.
“We’re able to innovate because we manufacture. I probably bring out one to three new products a month, and our field loves it—especially as a consumable bath and body product line that’s enhanced with essential oils, minerals and botanicals. We can create a blend for stress. We can create a new fun facial foaming wash or whatever we want to do for short term or a little pop here, a little pop there.”
WE’RE STILL SUPPOSED to be having fun doing this!
NANCY BOGART / Founder & CEO
Nancy’s commitment to the party plan model speaks to something deeper—a commitment to connection through relationships. While competitors and peers in the industry are exploring more sales channels than ever before, both the Jordan Essentials product line and business opportunity continue to be shared exclusively through Nancy’s field team
“I started my business as a stay-at-home mom to help make money. In the past few years, there’s been such a bend towards people wanting to add affiliates or influencers or however they want to define it, to try to broaden or go to Amazon. But I never forget that I was the mom who needed income, and if all my customers are consultants, how will I build a downline? How will I get that residual check? We all know selling just the product alone, you can make some money, but we wouldn’t have that opportunity for those who do choose to build. And man, they’re invaluable. It’s that connection. And I can’t make that same connection corporately with somebody on Amazon.”
Connection is everything to Nancy, from her closest relationships with her husband and children—all of whom have worked for Jordan Essentials at some point—to the lasting relationships she has with friends in the industry.
“We’re still supposed to be having fun doing this,” Nancy laughed. “One of my secret sauces is some of the great people in this industry that I can just pick up the phone and call. We leaned in this last year. We all leaned into party plan because we’re in this together, and we’re not allowed to complain. We only come with solutions.”
The solutions she’s dreamed up with friends and the goals she’s set for her team have resulted in exciting growth at Jordan Essentials. 2023 was the company’s best year yet, and so far, every month of 2024 has exceeded the month-by-month numbers from last year. The numbers alone are exciting, but when they’re coupled with all that Nancy and her team have planned for 2024, it’s shaping up to be an incredible year! Collaborations with industry friends, the company’s 25th anniversary, a debut as an emerging author and new formulations in development are all on the agenda for the coming months. But Nancy is taking things one day at a time.
“People always say, ‘How do you always have a good day at Jordan Essentials?’ I tell them, if you don’t have a good day, don’t come in. I want you to take your time, and I want you to be here because you want to be here. We want to do good things while we’re here. I think it’s because I’m a female founder and mother. We don’t come with unsolvable problems. It may take a minute; it may take a while. This might not be our biggest year, or it might be a bigger year—even better! But it’s encompassed within all the days that we have. We should be having fun. But we do it while also making a difference in people’s lives.” DSN
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BWE BELIEVE THAT EVERYBODY NEEDS LIVEGOOD.
—BEN GLINSKY / CEO “
EN GLINSKY WAS DONE WITH DIRECT SALES. After two decades of success at every level of leadership, he was frustrated enough with what he saw in the industry that he was done.
“After having built, owned and run some of the most successful network marketing companies over the last 20 years, I completely walked away in 2019,” he shared.
“My good friend and business partner Nauder Khazan and I have had this idea of a ‘Costco model’ for network marketing for about 7 years,” he explained. “What if we could bring people high quality products for a few dollars above cost and do a membership model like Costco, so people could get healthy; stay healthy; and do it in an affordable way.”
Studying the statistics of what was happening in the industry, Ben saw two fundamental problems: only a small percentage of the field was making real money, and customers weren’t staying on the product long enough to attain any benefit because of the cost.
Together, they studied economic trends from both inside and outside the industry, watching consumer trends continually shift toward affordability and value and away from expensive, overpriced products. They noted public companies within the industry losing volume due to these trends, and not adapting to what the consumer was doing— shopping for VALUE.
Teaming up with Nauder, along with wellness superstars husband/wife team Dr. Ryan and Lisa Goodkin, Ben launched LiveGood in 2022
With a Doctorate in Pharmacology and an undergraduate degree in Science and Nutrition, Dr. Ryan formulates all of the LiveGood line of nutritional supplements that includes multivitamins, superfood and protein powders as well as amino acid and anti-inflammatory products. LiveGood also offers a weight management coffee, essential oils, skincare products and CBD oils.
Just like Ben and Nauder’s original dream, LiveGood’s membership model is like a wholesale club. Members join at a very low monthly or yearly price to access the complete catalog of LiveGood products at significant member discounts. If they choose, members can become affiliates for $40 and take advantage of the company’s compensation plan as well. But, just like LiveGood has upended the traditional direct sales model for selling products, there are significant differences in LiveGood’s affiliate plan as well.
As Ben explained, “At LiveGood, we focus on the end consumers,” he said. “That’s why, while most companies see only a small percentage of people making money, at LiveGood, over 30 percent of our affiliates are in profit—and many more than that if you count how much people are saving on
FOUNDED: 2022
HEADQUARTERS: Florida PRODUCTS: Health and Wellness
TOP EXECUTIVE: Ben Glinsky / CEO
our amazing products. Additionally, we allow our affiliates to work other home businesses. When a large percentage of people in network marketing are making no money, it’s not fair to not allow them to do so elsewhere. That’s why we have a lot of affiliates who are also involved in other programs who are buying their products from LiveGood and telling their friends to do the same, even if it’s not their main focus. It just makes sense. If you can get high quality products at LiveGood at low prices, why would you buy them anywhere else?”
With over one million members accessing high quality, affordable products and hundreds of thousands of affiliates sharing, the LiveGood team is proving that when you align with trends and provide significant value, people want to be a part of it.
“We’re doing something right, something that no other company is doing,” Ben shared. “We believe that everybody needs LiveGood. We offer high quality products at low prices, all backed by our 90-day empty bottle money back guarantee. The world is as unhealthy as it’s ever been. If you’re tired of not being at your best level of health, it’s time for LiveGood!” DSN
The five strategies every direct selling company needs.
BY DIANNA CRNKOVICH / ACCOUNT EXECUTIVE, ADI MEETINGS & EVENTSPLANNING AN INCENTIVE TRIP
for a large group presents unique challenges and opportunities. The Incentive Research Foundation stated that the average spend per person for incentive travel in 2023 was $6,177! With the right strategies, it’s possible to create a memorable experience that motivates your team and aligns with your budgetary goals to help alleviate some of these costs. Here are five key approaches to consider when organizing incentive trips.
1 / CHOOSING COST-EFFECTIVE DESTINATIONS WITH TAX INCENTIVES
A smart destination choice can dramatically stretch your budget. Look for locations that are not just affordable but also offer tax incentives for hosting large groups, conferences or events. These destinations often provide significant savings that can be reallocated to enhance other aspects of the trip. Researching and selecting these locations requires understanding local regulations and leveraging these incentives to your advantage.
Destinations with more direct flights or those served by multiple airlines tend to offer more competitive fares. This increased competition not only lowers costs but can also offer more flexibility in travel times, making it easier to accommodate the schedules of a large group.
LOOK FOR LOCATIONS that are not just affordable but also offer tax incentives for hosting large groups, conferences or events.
With rising flight costs affecting flights in your incentive programs or fight credit offerings, you risk exceeding your budget. Often if attendees are responsible for their flights they will choose not to go on the incentive if the destination’s flights are costly and limited. Balancing cost with convenience and comfort is key to a successful trip.
Opting for travel during the shoulder season— the period between peak and off-peak times— can lead to lower costs and a more intimate experience at the destination. Being flexible with your travel dates and patterns, such as mid-week departures, can also unlock significant savings on accommodations and activities. This approach requires careful planning and negotiation but can result in a high-quality experience at a reduced cost.
When it comes to accommodations and venues for your incentive trip, targeting new hotels or cruise lines can yield significant savings and unique experiences. Newly opened properties are often eager to build their reputation and client base, leading them to offer attractive deals and sales incentives for group bookings. These promotions can include reduced rates, complimentary upgrades and exclusive access to amenities and events—providing an enhanced experience at a fraction of the cost.
the period between peak and off-peak times—can lead to lower costs and a more intimate experience at the destination.
Additionally, choosing a new cruise line or hotel not only offers financial benefits but also ensures your team enjoys the latest in luxury and innovation. This strategy requires keeping a pulse on the industry to identify opportunities as they arise, and it will help to ensure that your incentive trip stands out with fresh and exciting experiences that make the most of your budget.
Partnering with a specialized third-party incentive company can significantly amplify the value and impact of your incentive trip. These companies bring deep-rooted industry connections and years of collaboration and mutual trust to the table.. These relationships enable incentive companies to not just negotiate pricing but also work for you to secure exclusive deals, value-adds and amenities that are not typically available and can dramatically elevate the participant experience without inflating your budget.
With an emphasis on maximizing value and impact, the right incentive company becomes an indispensable partner in your incentive trip planning process. Their role extends beyond simple logistics; they act as architects of unforgettable experiences, leveraging their industry prowess to deliver spectacular results within your financial framework. This approach ensures that every dollar spent is an investment in motivating your team; celebrating their achievements; and fostering a culture of excellence and appreciation within your organization
Effective planning and strategic choices are essential for delivering an incentive trip that inspires and rewards your direct sales team. By focusing on these key areas, companies can maximize their budget, creating impactful experiences that celebrate success and foster a sense of camaraderie and motivation among participants DSN
DIANNA CRNKOVICH , an Account Executive at ADI Meetings & Events, specializes in the design and execution of incentive trips for clients in the direct selling industry. Backed by a team of trailblazing woman, ADI has over 30 years of excellence, including a dedicated 15 years within the direct selling sector. ADI, led by professionals like Dianna, continues to set the standard in crafting unforgettable experiences.
The DSA ENGAGE Conference Series and Direct Selling Compliance Professional Certification Program (DSCP-CP) is redefining Executive Education for 2024: This is your exclusive ticket to forging profound connections with the channel’s pioneers.
June 12–15, 2024 Headquarters Boise, Idaho
Envision each conference as a dynamic platform igniting forward-thinking conversations on the future of direct selling.
Immerse yourself in these vibrant events, unfolding against inspiring backdrops that encourage dialogue and deepen a profound exploration of market-shaping issues.
Feel the energy, seize the moment—the stage is set for your unparalleled success. Let’s transform 2024 into a year of boundless possibilities and unprecedented triumphs!
Scan the code below or visit dsa.org/ee24 to learn more and register today.
October 16–18, 2024 Washington, DC
October 16, 22 & 24, 2024 Washington, DC/Virtual Direct Selling Compliance Professional Certification Program
Fall 2024
S WE TURN THE CORNER from winter to spring, sleeping animals usually awaken from their winter slumbers, and flowers start to bloom. However, attacks on the channel have only increased during these past winter months.
As is often the case with those who don’t understand direct selling; don’t want to understand it; or see an income stream by being a detractor of it, the late-winter raft of provocative, accusatory letters has kicked into high gear. By regulators—real and self-appointed.
As a Washington, D.C.-based trade association, we always seek to strike a conciliatory tone with those who raise issues about our business methods. But when criticisms raised make no effort to recognize any positive steps taken by the industry, or when those offering the criticism persist in moving the goalposts on what is expected by a selective interpretation of standards— enough is enough
BRIAN BENNETT Sen ior Vice President, Government Affairs & Policy, DSA
DSA is the voice and the mechanism to fight for the industry and channel. The association will substantively respond to all fictitious claims made about what is expected to operate ethical businesses. This is not an abrupt shift. Rather, recent events have served as a tipping point in the tone of these responses and conversations. As always, our approach will be constructive, and we will continue to be unafraid to expose any misstatements of fact and law.
As Norman Schwarzkopf said, “The more you sweat in peace, the less you bleed in war.” Our self-regulatory and compliance efforts over the last five years have produced massive sweat equity and prepared us to present our case to audiences that will take a more balanced approach.
DSA stands by its members and their steadfast commitment to the highest standards in business ethics, and it is an honor to shed light upon all that is being done by the channel to protect consumers and distributors. We are here for you and hope you can be here for us. 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.
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.
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.
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.
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.
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.
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.
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!
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!”
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.
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.
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.
Gamify distributor activity for maximum engagement!
Engage and reward the field with fun challenges that reward the most impactful actions! Create competitive challenges driven from in-app actions like sharing, attending events, or even award points with a customer watches a portion or more of videos! Create badges and rewards for rank advancements, team building, sales records, anything!
Create challenges that drive real performance:
The top 10 content sharers this month earn this special badge
All distributors able to get leads watch at least 80% of 10 or more videos earn this badge
The Top 10% event creators this quarter earn this badge
Award badges for attending annual conventions or other events
Let top performers show off with badges for…
Rank Advancements
Sales or Volume targets, goals, or records
Team Building or Recruiting Metrics
Gig Workers | Realtors | Direct Sellers Agents | Independent Contractors
FREE PERSONALIZED PROMO MATERIAL is available for your organization.
is thrilled to announce the extension of our services to all companies engaging with independent contractors/1099 Workers! With a strong focus on Education, Networking, and Resources, we have become a cornerstone in supporting gig entrepreneurs with over 200,000 enrolled members.
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• My Primary Care
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Members also enjoy a monthly newsletter, digital platform updated regularly, free eBook downloads, engaging podcasts, informative videos, personal development resources, and dedicated business development support.
*Conditional guaranteed issue up to $150,000.
MONDAY, SEPT. 23, 2024
Forum (INVITATION ONLY) 9 AM – 4 PM (CT)
& Compliance Workshop
1 PM – 4 PM (CT) DSU Welcome Reception
5 PM – 8 PM (CT)
TUESDAY, SEPT. 24, 2024 DSU
9 AM – 5 PM (CT)
WEDNESDAY, SEPT. 25, 2024
9 AM – 12 PM (CT)
1 PM – 5 PM (CT)
