The industry is evolving— should your comp plan change, too?
DSU FALL 2024 / INSIGHTS & IDEAS FROM THE DSU STAGE
THE BENEFITS OF CHAOS & CONFUSION / EMBRACE UNCERTAINTY & SPARK MEANINGFUL GROWTH INSIGHTS FROM THE OUTSIDE / TOP CONSULTANTS SHARE KEY TAKEAWAYS
CUTCO / CELEBRATING 75 YEARS
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Mark your calendars now for these must-attend events in 2025. Spread the word to your global colleagues and get more from Direct Selling University in 2025 as DSU continues its global growth.
DSU LATAM | JANUARY 8-9, 2025
InterContinental at Doral, Miami
DSU SPRING | MARCH 25-27, 2025
Irving Convention Center, Texas
DSU EUROPE | JUNE 3-5, 2025
Amsterdam Hilton Airport Hotel, Netherlands
DSU FALL | OCTOBER 6-8, 2025
Renaissance Legacy West, Texas
DSU ASIA | NOVEMBER 2025
Seoul, South Korea
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DAY 1—Wednesday, January 8
New
BEN HULET & LISA ROBERTSON
BRETT DUNCAN SPOTLIGHTS
JENNY VETTER
LISA ROBERTSON
THE MODERN COMPENSATION PLAN
The industry is evolving—should your comp plan change too?
BY SARAH PAULK
Direct Selling News (ISSN 15546470) is published ten times a year in January, March, April, May, June, July, September, October, November, and December by Direct Selling Partners, 5717 Legacy Drive, Suite 250, Plano, TX 75024. Periodicals postage paid at Lake Dallas, TX and additional mailing offices.
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The Evolving World of Direct Selling
AS WE SHIFT INTO the holiday season, life tends to get very busy with traditions shared with family and friends taking center stage. But it’s also a hectic time of year at work—plans for 2025 are falling into place. That’s why we decided this issue should take a comprehensive approach to the channel and its challenges and opportunities. We’ve got an eclectic mix of stories this month—there is truly something for everyone in this issue. Our cover story is all about compensation. All of the feedback we get from industry executives points to compensation plans as being a leading source of concern. As direct selling evolves and expands to include affiliate programs, how and when the field earns remains a moving target. This article reaches out to several industry experts to get their thoughts on this hot-button topic. We have two other features this month that also cover a lot of ground. A deep dive into our recent DSU summarizing all the top talks and a thought leadership piece from Brett Duncan on the chaos and confusion currently gripping the channel. In Brett’s opinion, it’s a growth opportunity—and he gives some very thoughtful reasons why in this piece.
In other content, we honor Cutco, an American icon celebrating an amazing 75 years in business. We also have a thought-provoking roundtable discussion from leading industry experts about their top takeaways and trends from DSU. At DSN, we always 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! We’ve also unveiled a new newsletter, the DSN Daily—keep an eye out in your inbox for this curated summary of industry happenings or contact subscribe@ directsellingnews. com to receive.
All the best,
Patricia White | Publisher | pwhite@directsellingnews.com
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The Month in News Affecting
Channel
Today’s Direct Selling Company
Can’t Settle for Yesterday’s Advice
The opportunities for direct selling companies are greater than they’ve ever been. So are the challenges. Never before has the market demanded a higher level of innovation, simplicity and boldness. As you blaze new trails and evolve in response to the ever-changing market, are you making the most strategic choice for whom you partner with?
Services
Strategic Planning l Executive Management l Startup Launches
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Partners & Associates
SCP is made up of a team of direct selling experts, together representing more than 300 years of experience in direct selling. We surround every project with a customized team of Associates to provide the perfect approach for your project. From event support to global expansion, and everything in between, our team can deliver.
HEADLINES > 5
n Tupperware Files for Bankruptcy
n PM-International Announces
Multimillion-Dollar Investment in the Americas
n Full Glass Wine Acquires Scout & Cellar
n S eacret Direct Rebrands as Viago
n BODi to Transition from Multi-Level Marketing to Single-Level Affiliate Model
Fall DSU 2024 Offers Masterclass of Insights and Innovation
EXECUTIVES FROM MORE THAN 120 COMPANIES attended the Direct Selling University Fall Event 2024. The three-day event featured an exclusive invite-only CEO Forum, which provided a safe and private environment for high-level executives to engage with each other in focused discussions on leadership, strategy and innovation, and two days of masterclasses, keynotes and workshops.
4Life General Manager
Symposium Focuses on Vision Alignment
Throughout the event, attendees heard from top executives as they shared their breakthrough strategies and actionable takeaways. An AI Workshop, hosted by Blake Mallen, explored the ways AI is transforming sales, marketing and training and offered a deep dive on practical applications for direct selling leaders. The first- ever Legal and Compliance Workshop tackled pressing regulatory issues and covered essential legal topics, like Chevron Deference and Non- Compete Agreements and was ranked the highest-rated session of the day by participants.
Each day also included high-impact panels, including a Private Equity Panel, exploring the shifting financial landscape; the SHIFT Panel, which brought top field leaders together to share their firsthand experiences, and a Startup Panel, which offered attendees practical solutions for expanding their footprint.
A bonus session on Services Companies highlighted the rapid growth and innovation within the direct selling services sector, which encompasses essential services, financial and real estate industries, and the booming door-todoor sales market, making it a $30 billion industry that has quickly surpassed traditional productbased companies. For more comprehensive coverage of DSU, please read the recap on page 42.
LIFE’S 2024 SYMPOSIUM welcomed General Managers from around the world, and joined 4Life executives, international vice presidents and department heads together in collaboration as they developed new strategies for enhancing brand equity. Key topics of discussion included the importance of the company’s 100 percent satisfaction guarantee and vision alignment as the 4Life global management team benchmarked new 2025 goals.
President and CEO Danny Lee led high-level strategy sessions, while Executive Vice President of Corporate Operations TJ Fund and Chief Financial Officer Ryan Wood each addressed the group.
LifeWave Celebrates Grand Opening of Global Headquarters
LIFEWAVE ANNOUNCED the official grand opening of its new Global Headquarters and Welcome Center. The state - of-the-art facility will serve as the epicenter of the company’s operations and will provide a space for innovation, collaboration and engagement with brand partners and customers.
“With the accelerated evolution of the sector, the importance for direct selling companies to authentically connect with product enthusiasts and business builders has never been greater,” said Meredith Berkich, LifeWave President. “Our new Welcome Center is an absolute differentiator, a physical manifestation of our vision for the future. We anticipate the interactive experience will continue to attract the entrepreneurs who are driving and sustaining our growth.” DSN
RECENT EXPANSIONS
LR HEALTH & BEAUTY OPENS IT HUB IN ATHENS
LR Health & Beauty announced the expansion of its IT landscape with a new near-shore IT hub in Athens. This new hub is part of the company’s larger business strategy that aims to develop and operate most business applications internally and will develop customized solutions for the company’s sales partners.
The company selected Athens for the location of its new IT hub because of its “dynamic IT infrastructure” and rich talent pool.
“We are convinced that this strategic expansion to Athens, one of the most promising IT markets in Europe, will further advance our vision of a future-oriented IT landscape,” said Dr. Andreas Laabs, LR Group CEO. “The ‘IT hub’ project offers us decisive advantages. On the one hand, LR is bringing IT expertise in-house that was previously supplied by external service providers and, on the other hand, we are reducing our dependence on these strategically important resources for our-company.”
ATHENS
MODERE EXPANDS TO POLAND
Modere announced it has expanded into Poland as part of its strategic growth plan and commitment to bringing “safe, effective and sustainable products to consumers around the world.”
“I am confident that the exceptional quality and effectiveness of our products, combined with the flexibility of our modern business model, will resonate powerfully with our Polish partners and their customers,” said Sara Widell, Sales Director Poland at Modere Europe.
MARY KAY EXPANDS TO KYRGYZSTAN
Mary Kay Inc. announced its strategic expansion into Kyrgyzstan. The company’s operations will be managed from the Mary Kay Kazakhstan offices in Almaty to allow for seamless market integration and is part of the brand’s overall expansion strategy as it seeks to capitalize on the robust international growth experienced within the beauty and personal care market in recent years.
“I’m confident our expansion into Kyrgyzstan will inspire countless women to discover the transformative power of Mary Kay’s awardwinning products and strengthen our position as the #1 Direct Selling Brand of Skin Care and Color Cosmetics in the World,” said Tara Eustace, President of Mary Kay Europe Region. “Mary Kay Ash often said we’re doing far more than just selling cosmetics—we’re changing lives. This belief is at the heart of everything we do, and I am excited to witness the incredible impact we will have on the women of Kyrgyzstan.”
NEW U LIFE EXPANDS TO THAILAND
New U Life announced a market expansion into Thailand. The company already has offices in the US, Hong Kong and Taiwan and operates within Canada, China, Australia and New Zealand.
“We are immensely grateful for the passionate embrace of our global community and the local leadership in Thailand, whose dedication and vision have made this milestone possible,” the company wrote in a statement. “Together, we’re creating a vibrant tapestry of health, vitality and opportunity. New U Life is beyond excited to bring our innovative wellness solutions to Thailand, and we look forward to the extraordinary journey we will share.”
KYRGYZSTAN POLAND
THAILAND
For the full articles, visit directsellingnews.com/ insights
Herbalife Study Reveals Momentum Within Asia Pacific Entrepreneurialism
Aspiring entrepreneurs in Asia Pacific are optimistic, according to a new Herbalife study. More than three in five (63 percent) say they plan to start a small business in the next 18 months, with 59 percent of respondents expressing optimism about their entrepreneurial pursuits.
Polling 8,000 participants across 11 countries and markets, including Australia, Hong Kong, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam, the study found that health and wellness was an attractive category for both business and spending. More than half (51 percent) of respondents said they plan to increase their spending in the health and wellness sector this year, while 20 percent of aspiring entrepreneurs found the category appealing from a business perspective. Food and beverage ranked highest (44 percent) as a market favorable to launching a small business.
Gen Z and Millennials expressed the strongest entrepreneurial inclinations as well as the most openminded opinions about direct selling in general. As for markets, Indonesia ranked highest (91 percent) for holding a positive view of direct selling. DSN
EXECUTIVE ANNOUNCEMENTS
announcements
MICHAEL NELSON AMWAY, PRESIDENT & CEO
Michael Nelson has been named Amway President and CEO. Nelson brings more than three decades of experience in business strategy, management and global operations with leadership experience.
“This business is special, and no one understands that better than Michael,” said Doug DeVos, Amway Board Co-Chair. “He knows who we are, where we can go and how we can get there. Today, that’s especially valuable as Amway pursues a bold and innovative agenda toward growth. We believe Michael is a leader who will honor all that’s special about Amway, and help us grow because of it.”
ANDREA MCALISTER PLEXUS, CHIEF OF STAFF
Andrea McAlister has been named Plexus Chief of Staff. In this newly created role, McAlister will oversee corporate strategy and human resources, drive operational efficiency and ensure alignment across executive teams.
“In the time I have worked with Andrea, I’ve witnessed her ability to transform Plexus with positive change while staying true to our core values,” said Gene Tipps, Plexus Chief Executive Officer. “Focused on growth, we have a unique opportunity to bring teams together, and Andrea is the right person to advance that strategy.”
KRISTA PACHECO EXP REALTY, VICE PRESIDENT OF
TRANSACTION OPERATIONS
Krista Pacheco has been appointed eXp Realty Vice President of Transaction Operations.
Pacheco will now lead the Transaction Operations team, focusing on delivering agent support and ensuring compliance with national regulations.
eXp Realty wrote in a statement: “[Krista’s] commitment to operational excellence has significantly enhanced our efficiency, agent satisfaction and service delivery. Her strategic vision and passion for innovation make her the perfect leader to take us forward.”
TRAVIS WILSON LIFEWAVE, DIRECTOR OF FINANCE
LifeWave has appointed Travis Wilson to Director of Finance. Wilson brings more than two decades of experience.
“Hyper-growth comes with its set of challenges,” said Meredith Berkich, LifeWave President.
“We were looking for a professional with proven success in both advancing core processes, as well as budget governance across key initiatives in formal project portfolios. Travis’s background, in addition to his integrity, collaborative nature and results-driven mindset, make him the ideal team member to compliment the growing LifeWave community. We couldn’t be happier to have Travis on board.”
ALLANA HINKS
PARTNER.CO, GENERAL MANAGER OF AUSTRALIA & NEW ZEALAND
Partner.Co has appointed Allana Hinks to the role of General Manager of Australia and New Zealand. Hinks has worked within sales, marketing, leadership and management for more than two decades and brings expertise in direct sales, retail, consumer goods and ecommerce. Hinks is known for her ability to match innovative strategies and implementation with a drive to understand consumer behaviors and market trends.
“Allana’s history of driving revenue and fostering a culture of performance aligns perfectly with our vision for the future,” said Darren Zobrist, Partner.Co Founder and Chief Executive Officer. “I have no doubt that under her leadership, our team in Australia and New Zealand will continue to achieve great things.”
MARK A. ZORKO NU
SKIN,
BOARD OF DIRECTORS
Nu Skin Enterprises has appointed Mark A. Zorko to its board of directors. Zorko will now also serve on the company’s audit committee and the nominating and corporate governance committee. In addition to his role as a principal with Brentwood Advisory, an association he founded more than a decade ago, Zorko has held management and executive roles within the international, publicly traded manufacturing, energy, medical device and high-tech sectors.
“Mark brings extensive C-Level leadership experience with several global public companies, as well as more than 20 years of board-level experience,” said Steven J. Lund, Nu Skin Executive Chairman of the Board. “We welcome Mark to the board and look forward to leveraging his extensive business insights and experience.”
STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION
(Required by 39 U.S.C. 3685). 1. Title of Publication: Direct Selling News. 2. Publication No.: 1554-6470. 3. Filing Date: Sept. 29, 2024. 4. Frequency: Bimonthly. 5. No. of Issues Published Annually: 10. 6. Known Office of Publication: 5717 Legacy Drive, Suite 250, Plano, TX 75024. 7. Headquarters or General Business Office of the Publisher: 5717 Legacy Drive, Suite 250, Plano, TX 75024. 8. Publisher: Patricia White. 9. Owner: Success Partners Holding Co., 5717 Legacy Drive, Suite 250, Plano, TX 75024. 10: Known bondholders, mortgagees and other security holders owning or holding 1 percent or more of total amounts of bonds, mortgages or other securities: None. 11. Title: Direct Selling News. 12. Issue date for circulation data below: September 2024. 13. Extent and Nature of Circulation: Monthly Trade Publication. (Average No. Copies Each Issue During Preceding 10 Months/No. Copies of Single Issue Published Nearest to Filing Date): a. Total No. of Copies Printed (4500/4300). b. Paid and/or Requested Circulation: 1. Paid/Requested Outside-County Mail Subscriptions Stated on Form 3526 (3106/3055). 2. Paid In-County Subscriptions (0/0). 3. Sales Through Dealers and Carriers, Street Vendors, Counter Sales and Other Non-USPS Paid Distribution (0/0). 4. Requested Copies Distributed by Other Mail Classes Through the USPS (0/0). c. Total Paid and/or Requested Circulation (3106/3055). d. Non-Requested Distribution: 1. Outside-County as Stated on Form 3526 (1382/1204) 2. In-County as Stated on Form 3526 (0/0). 3. Other Classes Mailed Through the USPS (0/0). 4. Distributed Outside the Mail (50/50). e. Total Non-requested Distribution (1382/1204). f. Total Distribution (4488/4259). g. Copies Not Distributed (12/41). h. Total (4500/4300). i. Percent Paid and/or Requested Circulation (69%/72%). 17. I certify that all information furnished on this form is true and complete. Patricia White, Publisher, Oct. 1, 2024.
ADAM DAY EXP REALTY, INTERNATIONAL
EXPANSION LEADER UK, EUROPE & INDIA
eXp Realty has promoted Adam Day to International Expansion Leader UK, Europe & India. Day joined eXp Realty in 2019 as the International Expansion Leader UK, where he led the company’s UK launch and market growth. In this new role, Day will continue working within the UK, but will now also be responsible for overseeing growth within key European markets, including France, Spain, Portugal, Italy, Poland, Greece, Germany and Israel, as well as Dubai.
“His achievements have firmly positioned eXp as the leading platform for self-employed agents in Britain,” said Glenn Sanford, eXp World Holdings Founder, Chairman and CEO. “I am confident that Adam will bring the same level of success to our European markets, further reinforcing eXp’s scale, credibility and the significant referral business our global network generates.”
WAYNE MOOREHEAD
LIFEWAVE, GLOBAL SENIOR VICE PRESIDENT OF MARKETING
LifeWave announced Wayne Moorehead has been appointed Global Senior Vice President of Marketing.
Moorehead brings more than two decades of experience leading marketing, strategy and branding for large organizations in both traditional retail and the direct selling industry.
“We are thrilled to have Wayne join us at this crucial time in our history,” said Meredith Berkich, LifeWave President. “His vast experience in elevating brands and building high-performance teams aligns perfectly with what is needed at LifeWave as we continue to transform into a life technology company.
Wayne’s vision and passion for entrepreneurship will play an important role in creating a direct selling enterprise never seen before as we evolve our technologies far beyond the wellness category.”
CHRISTIAN HALPER HEALY WORLD, CEO
Healy World GmbH announced that Owner and Co-Founder Christian Halper will now serve as Chief Executive Officer. Halper founded the company with Marcus Schmieke, a researcher and author specializing in quantum physics, to bring wellness technology and holistic health options to consumers.
Halper is an entrepreneur committed to sustainabilityfocused operations and the field of health and nutrition and is the founder of Michelin-starred restaurant Tian in Vienna.
“Since the company’s inception, Marcus Schmieke and I have shared a vision of a world positively impacted by our innovative technology,” Halper said. “My passion for our mission has only grown stronger over the years. This is exactly why I want to efficiently lead this company to an even [more] successful future, which means more lives positively impacted.”
DAN CALLEY
PARTNER.CO, VICE PRESIDENT OF THE US MARKET
Partner.Co has appointed Dan Calley to Vice President of the US. Previously, Calley served as Vice President of Global Commissions and became known as the company’s compensation plan expert. He has also spent extensive time working with the US sales and customer service teams to design high-impact sales promotions.
“Dan has been a cornerstone of Partner. Co brands for over two decades, consistently leading with integrity and a passion for empowering others,” said Katy HoltLarsen, Partner.Co CIO and Area President of North America. “His deep understanding of the business and our brand partners’ needs makes him the perfect fit for this role. I’m excited to partner with him on our US strategy and am confident that the US will continue to reach new heights under his leadership.”
OLIVER DIBBLEE
XYNGULAR, PRESIDENT
Xyngular has appointed Oliver Dibblee as President. Dibblee brings more than 15 years of experience in the consumer product goods (CPG) industry and has served in senior and C-Suite level roles at a number of well-known direct selling and traditional retail companies. He is particularly skilled in the development of growth strategies, incentives, business intelligence and analytics.
“I am honored to join the Xyngular family,” Dibblee said. “My ambition is to propel our strategic initiatives forward, ensuring we remain at the forefront of the industry through innovative and forward-thinking tactics. I look forward to sharing my insights and expertise as we develop cuttingedge solutions for the field that align with our long-term vision. Together, I am confident that we have the potential to accomplish remarkable things and set new standards for excellence.”
KEVIN FULLER
NATURE’S SUNSHINE, GLOBAL CHIEF MARKETING OFFICER
Nature’s Sunshine Products, Inc. has named Kevin Fuller Global Chief Marketing Officer. Fuller brings more than two decades of experience as a marketing executive working in high-performance organizations and has a deep understanding of the dietary supplement industry with particular expertise in building brands, driving customer growth and launching new products.
“We are very pleased to welcome Kevin to Nature’s Sunshine,” said Terrence Moorehead, Nature’s Sunshine Chief Executive Officer. “He brings a wealth of experience and a proven track record of developing successful marketing strategies. Kevin will be instrumental in helping take our brand to the next level, and we look forward to his many contributions.” DSN
THE GUIDE
A CURATED RESOURCE TO HELP YOU FIND STRATEGIC BUSINESS PARTNERS SPECIALIZING IN DIRECT SELLING.
THE CHANNEL IS EVOLVING RAPIDLY—companies and executives must stay ahead of emerging trends and technologies to build for the future. But it can be time - consuming and hard to find the right suppliers to partner with.
That’s why we’ve developed The DSN Guide. In each issue, The Guide includes curated lists by category of expertise and service. These suppliers currently serve the channel—they understand the unique challenges and opportunities that come with direct selling and can help you implement your intiatives.
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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.
S ENE G EN CE
R EA L P EO PLE. R EA L STO RI ES.
Apple + OpenAI
Tech Partnership Offers Enhanced
Marketing Opportunities
BY DAVID LEE
IN JUNE, APPLE AND OPENAI ANNOUNCED A PARTNERSHIP to implement ChatGPT into Apple products and operating software. Many new features launched in the iPhone 16 that released in September. These will give marketers and home business owners tools that can elevate product demonstrations, social media content, event planning and business presentations. The fusion of AI and mobile technology, mostly centered around the phone’s camera, provides an opportunity to create personalized, real-time content with ease. Here are 10 innovative ways marketers can utilize this AI -p owered technology.
1 / Extracting Event Details from Images
Marketers can streamline event planning by simply taking a picture of a flyer or invitation. The AI can instantly extract essential information such as location, date and registration links, which can be saved, shared or turned into automated reminders. This reduces time spent manually inputting details into calendars or event management tools.
THE FUSION OF AI AND MOBILE TECHNOLOGY, mostly centered around the phone’s camera, provides an opportunity to create personalized, real-time content.
2 / Product Information from Photos
For product demonstrations, marketers can photograph a product’s packaging to automatically retrieve and display critical information like ingredients, nutritional facts or even customer reviews. This is especially useful in real-time product demos or creating content for social media where customers expect quick, comprehensive information.
3 / Instant Content Creation at Conferences
During conferences or business presentations, distributors can use Siri and ChatGPT to transcribe or summarize notes and key points from speeches or presentations in real time. This function is ideal for live tweeting, creating blog posts or sharing insights immediately after a session, increasing the speed at which you can distribute content to your audience.
4 / Easily Find Photos and Videos
Based on Attributes
Photos and videos can be identified by key characteristics or attributes, such as location, color or subject matter. Using AI-driven image recognition, you can search for visuals based on descriptions or even elements like “crowded event” or “Susan in blue jacket from July.” This technology simplifies content curation, enabling businesses to quickly locate relevant media for campaigns, presentations or social media posts, saving time and ensuring precise, tailored messaging.
DISTRIBUTORS CAN use Siri and ChatGPT to transcribe or summarize notes and key points from speeches or presentations in real time.
5 / Enhancing Ad Campaigns with Competitor Analysis
By taking a picture of a competitor’s product, advertisement or branding, marketers can let ChatGPT analyze the image and suggest ways to improve their own marketing strategy. The AI could provide actionable insights on design, messaging or targeting, helping businesses create more compelling content that stands out.
6 / Real-Time Translation for Global Events
For businesses operating globally, real-time image translation is a game changer. Taking a picture of flyers, promotional materials or even presentations in another language allows the AI to translate and generate accurate, context-specific translations. This can enhance communication with non-native speakers at global events or when dealing with international customers.
7 / Geotargeting for Location-Based Promotions
Marketers can use geotagging when capturing photos at events or product demos. The AI can analyze the local market and suggest personalized promotional strategies based on location. This is especially beneficial for businesses that host or participate in events in multiple regions, allowing them to tailor their outreach efforts accordingly.
8 / Quick Summaries from Surveys and Feedback Forms
After an event, marketers can photograph physical feedback forms or survey responses, and the AI will summarize key trends and findings. This eliminates the need for manual data entry and analysis, allowing for quicker adjustments and more responsive campaigns based on consumer feedback. This can help create more specific customer profiles and target demographics.
9 / Social Media Content from Live Events
Marketers at live events can snap images of products or presentations and have ChatGPT instantly create social media posts or captions. This enables a fast, dynamic social media presence, ensuring that you capitalize on the momentum of live engagement and keep your audience up to date in real time.
10 / Personalized Recommendations for Event Attendees
When you upload attendee lists with preferences, AI can generate personalized recommendations for sessions, activities or special offers during a conference or event. By analyzing individual preferences, marketers can create a highly personalized experience that boosts satisfaction and engagement. DSN
A Little Push
BY DAVID LEE
PUSH NOTIFICATIONS HAVE BECOME A POWERFUL TOOL for businesses and marketers to distinguish their apps and increase customer engagement. With mobile usage on the rise, push notifications offer an opportunity for direct selling companies and distributors to drive user retention and re-engagement. However, the effectiveness of push notifications depends heavily on personalization and timing. When done right, they can significantly enhance engagement. Done poorly, they can drive users away. Here are some key trends and tips for marketers looking to optimize push notifications, focusing on personalization to create meaningful interactions.
1 / Personalization is Key
One of the most important aspects of successful push notifications is personalization. People want messages tailored to their interests and needs, not generic blasts. Data from engagement platform Leanplum show personalized push notifications deliver four-times higher open rates compared to non-personalized messages. Brands like Netflix and Uber excel at this by leveraging user behavior data to send targeted notifications. For example, if a user consistently views healthy energy supplements for men, a push notification showcasing benefits of these products can significantly improve engagement and conversions. Another effective way to personalize push notifications is by deep-linking users directly to the content or products of interest. Instead of leading users to the app’s home screen, deep linking takes them directly to the relevant page, providing an immediate and seamless experience.
50% OF USERS ENABLE PUSH NOTIFICATIONS SPECIFICALLY TO ACCESS SPECIAL DEALS OR DISCOUNTS.
09:20
2 / Combat Cart Abandonment
Cart abandonment remains a huge challenge for ecommerce platforms. With an average abandonment rate of 70 percent, many users abandon carts due to factors like high shipping costs or a complicated checkout process. Push notifications targeting cart abandonment can help recover lost sales. For example, UNIQLO sends notifications to users who have abandoned carts, offering a price drop as an incentive to complete the purchase. These types of notifications have a click rate of 16 percent, significantly improving chances of conversion.
To measure the success of cart abandonment notifications, marketers can track the conversion rate, which shows the percentage of notifications that lead to a completed purchase.
3 / Time and Location-Based Targeting
Timing is crucial for push notifications. Sending a message at the wrong time—such as 3 a.m.—can quickly frustrate users and lead to opt-outs. Instead, marketers should focus on sending notifications based on user behavior. For example, if a user normally opens an app and makes a purchase two hours later, sending a push notification around the time the user typically makes a purchase will likely deliver better results.
Location-based notifications allow for hyper-personalization, such as sending special offers when users are near a physical store. Sephora, for example, uses geo-targeting to send push notifications to travelers at airports, offering makeup deals that resonate with their audience. Studies show that location-based messaging can lead to a 45 percent click-through rate.
4 / Engage Latent Users with Limited-Time Offers
Limited-time offers are an effective way to bring inactive users back to your app. Data from Responsys shows that 50 percent of users enable push notifications specifically to access special deals or discounts. Retailers can create push campaigns targeting users who haven’t engaged with the app in a certain time frame, offering exclusive deals or time-sensitive discounts to re - engage them.
Automating these campaigns is crucial. For example, sending a discount offer to users who haven’t opened the app in 10 days and capping the number of notifications prevents spam while maximizing effectiveness. DSN
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Insights, Ideas & Innovation
KNOWLEDGE, NETWORKING & THE NEXT BIG THINGS— FALL DSU HAD IT ALL!
BY BEN HULET & LISA ROBERTSON
DIRECT SELLING UNIVERSITY’S FALL
EVENT (DSU) was a landmark gathering for the direct selling industry. Hundreds of executives from over 120 different direct selling companies attended, and the event was a remarkable showcase of cutting edge insights, invaluable networking opportunities and actionable strategies.
Attendees left energized and equipped with the tools and knowledge to elevate their businesses to new heights. With more content, more workshops and more speakers than ever before, DSU Fall 2024 delivered what direct selling executives need to know and grow in the future.
As Stuart Johnson, Founder and CEO of Direct Selling Partners and Direct Selling News (DSN) explained, “Founders and leaders must be willing to experiment, innovate and explore new things to stay relevant and ready for the future. My goal is for DSU to always deliver the topics and takeaways that will allow them to do just that.”
STARTING STRONG
The event kicked off with a private CEO Forum, offering an unparalleled opportunity for high level executives to engage in focused discussions on leadership, strategy and innovation. This invitation‑only session set the stage for meaningful connections and strategic takeaways, all designed to help companies navigate the future of direct selling.
This year also marked the debut of the Legal and Compliance Workshop, moderated by Brett Duncan, Co-Founder and Managing Partner of Strategic Choice Partners, which tackled some of the most pressing regulatory issues facing the direct selling industry today.
Participants included in house counsel from direct selling companies as well as attorneys from leading law firms specializing in direct selling including Erin Barta, Mannatech; Naisha Covurrabias, Mary Kay; Jennifer Grace, LaCore; Kevin McMurray, Young Living; Clay Brewer, Thompson Burton; Ed Burbach, Foley and Lardner; Katrina Eash, Winston & Strawn; and Brent Kugler, Scheef & Stone.
The workshop covered essential topics like Chevron deference, non compete and non solicitation agreements as well as emerging trends in class action suits. It also featured an engaging “gotchas” segment that covered everything from income disclosure statements to what might come next from the Federal Trade Commission (FTC).
}Stuart Johnson, Founder and CEO of DSN, highlighted recent closures, pivots and bankruptcies within the industry. Despite these setbacks, he emphasized the importance of staying committed to the direct selling channel and focused on growth. He also shared insights into emerging trends, such as the rise of Hispanic and Latino markets and the continued growth of service based companies in the direct selling industry.
}David Schmidt, Founder and CEO of LifeWave, shared the company’s journey of growth, from struggling financially to becoming a nearly $600 million business in 2024. Schmidt shared how LifeWave has thrived through continuous innovation, advanced technology and a commitment to research and development.
}A Private Equity Panel, moderated by Stuart Johnson, featured experienced professionals in private equity and direct selling, including Oran Arazi-Gamliel, Advisor to CEO and Board Members; Brick Bergeson, Chief Revenue Officer, Color Street; Brett A. Blake, CEO, Annuity.com; and Jacob McClain, Head of Sales and Growth, Fluz. This esteemed group discussed the impact and challenges of private equity investment in direct selling, acknowledging that private equity can be a blessing or a curse.
}Amanda Tress, Founder and CEO of FASTer Way to Fat Loss, shared the growth and success of her digital nutrition and fitness platform, which started in 2016 with 11 clients and now serves nearly 500,000 people. Amanda introduced the concept of “micro commitment funnels,” where potential clients engage in low cost trials before converting to the full program, which has shown high conversion rates.
AMANDA TRESS / Founder & CEO, FASTer Way to Fat Loss
FOUNDERS AND LEADERS must be willing to experiment, innovate and explore new things to stay relevant and ready for the future. My goal is for DSU to always deliver the topics and takeaways that will allow them to do just that.
}Heather Chastain, Founder and CEO of Bridgehead Collective, discussed compensation plan changes, including the need to differentiate between front end optimization and affiliate programs; the diminishing influence of traditional leadership structures; the importance of recognizing sellers alongside team builders; and the evolving expectations surrounding brand loyalty.
}Miguel A. Beas, Chief Sales Officer/ President of Sales of Zinzino, detailed how his company has experienced consistent growth, with a retention rate of 18 months in long established markets. He discussed the company’s acquisition strategy, likening it to a marriage where alignment of cultures is crucial.
}Brett Duncan, Co-Founder and Managing Partner of Strategic Choice Partners, discussed the current confusion and chaos many companies are experiencing. He emphasized that while chaos may feel uncomfortable, it often signals growth and opportunity.
}Barb Pitcock, CEO of Frequense, highlighted the competitive nature of the direct selling industry, especially considering new challenges like the gig economy. She emphasized that while the industry can be a battlefield, it also provides incredible opportunities for those willing to follow their vision, stay authentic and focus on personal and team development.
}Landen Fredrick, CEO of Mannatech, shared his thoughts on leadership, overcoming fear and the importance of building a lasting legacy, reflecting on how fear can paralyze or provide clarity. He also discussed his passion for the channel, stressing the industry should be unapologetic about the value it offers and take control of the narrative to highlight its positive impact on lives.
}Daniel Chavez Saul, Founder and CEO of VIVRI, shared his company’s impressive journey. Founded with just $1 million, VIVRI has grown to serve over one million customers and operates in seven countries with over 100,000 distributors. Chavez emphasized that this growth was achieved without debt or outside funding, relying on organic expansion, innovation and flexibility.
STUART JOHNSON / Founder & CEO, Direct Selling Partners and DSN
BLAKE MALLEN / Billion Dollar Brand Builder
}Sunny Beutler, CEO of Sunrider International, discussed the importance of succession planning to ensure the long term success and sustainability of family owned businesses, particularly in the direct selling industry. Sunny shared how her family’s formal succession planning process allowed her and her siblings to seamlessly transition into leadership roles.
}Susannah Schofield OBE, Director General of the Direct Selling Association (DSA) for the UK and Ireland, discussed the evolving role of the direct selling industry and the regulatory changes being embraced to future proof the sector. She shared that brands must navigate today’s fast paced, information saturated environment, where attention spans have dropped from 30 seconds in 2020 to just 13 seconds in 2024.
}Dan Debnam, Founder and CEO of Contourae, delivered an insightful presentation on the transformative power of artificial intelligence (AI). He began with a demonstration of how generative AI is revolutionizing content creation, showing how video presentations can now be generated with AI.
}Blake Mallen, Billion Dollar Brand Builder, hosted a workshop where he discussed the game‑changing role of AI in direct selling, emphasizing its rapid evolution and potential to reshape how businesses operate. During the workshop, Mallen demonstrated various AI applications, highlighting how easy it has become to create videos, avatars and other marketing content.
DAY 2 / UNLEASHING NEW OPPORTUNITIES AND STRATEGIC GROWTH
}Susannah Schofield OBE returned to the stage to discuss how habits and learned behaviors influence individuals and organizations. Schofield highlighted the importance of breaking free from learned constraints and empowering teams to think creatively and act boldly.
}Wayne Moorehead, Senior Vice President Global Marketing and Communications of LifeWave, focused on how direct selling must evolve in response to changing consumer behaviors and new sales channels. He highlighted the increasing flexibility required in branding, noting that companies can no longer control their brand identity, as distributors now play a significant role in co creating brands.
}A Startup Panel, moderated by Wayne Moorehead, featured founders and executives from emerging companies in the direct selling industry including Steve Perkins, Founder and CEO, Healthy Home; Ryan Scott, Vice President and Chief Strategy Officer, Neumi; and Jenna Lang Warford, Head of Sales, Bella Grace. They discussed the unique challenges and opportunities of building a direct selling business from the ground up, focusing on flexibility, adaptability and the importance of building relationships with the field.
}Stephen Whitwell, Vice President of Field Development for North America and Europe of NeoLife, described how they have focused on increasing sponsoring efforts. The company aligned both the corporate and field teams around this priority by implementing clear, measurable actions.
}Chris McDermott, CEO of The 1:1 Diet by Cambridge Weight Plan explained the company’s 40 year journey, centered around the strong emotional connection between consultants, customers and the brand. McDermott also discussed the company’s unique structure as an employee owned business.
}Alex Hoffmann, Senior Global C-Level Executive, shared insights on how to successfully expand direct selling businesses into Latin America, emphasizing the importance of understanding the culture—not just the language—when entering Latin American markets. A central theme of the presentation was the need for companies to adapt their pricing and business models to local economies.
}Evan Brengman, Director of Global Supply Chain, Total Life Changes, focused on attracting and engaging Gen Z talent. Brengman noted that Gen Z values authenticity, personal growth and a workplace culture that aligns with their values.
WAYNE MOOREHEAD / Senior Vice President Global Marketing & Communications , LifeWave
SUSANNAH SCHOFIELD OBE / Director General , Direct Selling Association (DSA) , UK & Ireland
}Blake Mallen led a panel discussion on the challenges facing the network marketing industry and the need for a significant “shift” to navigate these changes. The panel, consisting of field leaders including Donna Johnson, Sarah Robbins and Thomas Tidlund addressed issues such as negative perceptions; regulatory hurdles; and the rise of competing models like the gig economy and affiliate marketing.
}The Services Panel, led by Stuart Johnson, focused on growth and opportunities within the direct selling services industry, particularly in real estate and financial services. The discussion highlighted the significant expansion of services companies, with real estate and financial services making up 90 percent of the $30 billion in the direct selling services channel. The panel, including John Addison, Founder and CEO, Addison Leadership Group, Patrick O’Neill, COO, eXp Realty, Eric Reisdorf, Chief Development Officer, Ambit Energy; and Robert Stevanovski, Co-Founder and Chairman, ACN, emphasized how these sectors continue to thrive in the US market.
}John Addison in a Q and A session with Stuart Johnson emphasized that companies that last in the direct selling space are those with a clear mission and competitive edge. He spoke about the importance of visionary leadership, especially in navigating challenges such as private equity involvement and regulatory changes.
}Sam Taggart, Founder and CEO of D2D Experts, shared his insights on recruiting and motivating sales teams in the direct selling industry. Taggart stressed that recruitment is more than just adding bodies to a team—it involves sourcing the right candidates; providing solid onboarding; and creating a structured training program to ensure long‑term success.
}Mike Hutchison, Regional Field Manager at InGroup, shared the story of his company’s challenges and triumphs in the travel industry. He emphasized that despite having no experience in travel or direct selling, he and his father founded the company with the mission of making travel more affordable and accessible.
}Jonathan Budd shared his personal journey as Founder and CEO of Powur, a solar energy company that combines innovative business models with a strong mission driven purpose. He focused on product innovation and how staying true to a purpose can drive the next generation of products in direct selling.
}DSU concluded with a Startup Services Panel, moderated by Stuart Johnson, featuring a diverse group of entrepreneurs and business leaders from various industries, including real estate, energy and financial services. The panelists, including Phil Santinoceto, SVP Marketing and Customer Success, Energywell; Eddie Garcia, CEO, Realty of America; and Brett A. Blake, CEO, Annuity.com shared their journey, challenges and vision for their respective companies as they navigate the direct selling space with innovative approaches and services. DSN
From left: STUART JOHNSON / Founder & CEO, Direct Selling Partners and DSN
EDDIE GARCIA / CEO, Realty of America
PROVEN. POWERFUL. PERFORMANCE.
CHARLIE SANBORN | VP OF SOFTWARE ENGINEERING, “ YOUNG LIVING
The Exigo commission run takes about a fifth of the amount of time that ours historically did.”
From a straight ROI perspective, we're going to get a very strong ROI going with Exigo. There are no ifs, ands, or buts about it."
STEVE MCCARTHY | VP OF FINANCE/CORPORATE CONTROLLER,
RODAN + FIELDS
We haven't had reliability issues with Exigo, whereas we would have a number of surprises with the lower end system. So, that is also saving us money while making money by having a more reliable system.”
JEFF MARTIN | CO-FOUNDER, SOULLIFE
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 | VICE PRESIDENT OF OPERATIONS, NEOLIFE
THE MODERN COMPENSATION P LAN
FINANCIAL PRESSURES &WANING
RECRUITMENT HAVE SET OFF ALARM BELLS FOR MANY LEADERS. IS IT TIME FOR A COMP PLAN REBOOT?
BY SARAH PAULK
NO DIRECT SELLER can survive without a strong compensation plan. Complex and often confusing, rewards systems have hefty influence on company culture, product reach and even what type of distributor or customer a company can attract.
The right compensation structure can help a company thrive, expand across markets and build powerful brand loyalty. An ill-fitting comp plan, however, can create exactly the opposite—tanking distributor morale and limiting who and how many people a company can reach.
FOR DECADES, compensation plans have been built to highlight the industry’s ability to create superstars and high earners regardless of education or experience and touted the ideal that a distributor could work diligently for a few years then benefit from residual paychecks with little ongoing effort. It was a promise that spent an inordinate amount of money on team members whose efforts would intentionally taper off in the long run.
This top-heavy structure, coupled with today’s inflated costs surrounding supply chain processes, raw materials and the salary creep of a highly competitive market for internal teams, has led companies to feel more financial pressure than they were just a few years ago. As a result, the industry is undergoing a paradigm shift in its approach to the modern compensation plan.
According to Dan Jensen, an industry consultant since 1979 who has specialized in comp plan design since 2000, approximately 80 percent of his new clients say they are paying out more than they can afford
“This is a sensitive topic, but the real issue is that the compensation plan should be designed to pay more for the leaders who are engaged and less to the leaders who are disengaged,” Jensen said.
“Every dollar spent on people who aren’t working is a dollar less that can be given to someone who is”
THREE KEY TAKEAWAYS
1 / SIMPLIFY AND STREAMLINE
A decreasing number of direct sellers have interest in building teams or moving up in rank. Make sure your bonuses don’t only appeal to seasoned network marketers.
2 / LOYAL DOESN’T ALWAYS MEAN EXCL USIVE
Today’s most successful social sellers rep multiple brands. Show some flexibility and eliminate restrictive language requiring distributors to only rep your company.
3 / PAY FAST, PAY FAIR
Side hustlers have many options available to them. You must make it quick and easy for distributors to get paid and eliminate “gotchas” that feel deceptive.
Pay for Performance
In the 1980s and 1990s, compensation plans were designed to dedicate 40 to 45 percent of revenue to commission payouts. This was seen as the core element of success for companies and did, in fact, attract new talent to brands and products. But industry experts say that approach is no longer feasible.
Anyone switching (to only affiliates) is doomed to not get to scale. Eventually their attrition rate will match any enrollment rate they have. And it will be flat. There is no way around that .
DAN JENSEN / i ndustry c onsultant
“That’s really hard to sustain now,” said Brett Duncan, a direct selling strategist and Co-Founder and Managing Partner of Strategic Choice Partners. “When you’re giving away half of your revenue to the field, you can’t afford to keep paying for other expenses—advertising, marketing, technology innovation—and distributors will pick up their business and move to another company that already has those things in place.”
Compensating leaders who are not doing the lion’s share of the work disregards an ethos held by the next generation of social sellers called “pay for performance,” a principle that one direct selling executive believes is as important to distributor longevity and success as fairness, equity and transparency.
“If you, as a sales rep in traditional business, overperform, you make an outsized bonus because you are growing the business and overdelivering,” the executive shared. “What we see in legacy compensation plans is that they are violating that pay-for-performance guiding principle. There are a number of people getting paid massive amounts of money who are simply not performing.”
At the same time, regulatory pressures by the Federal Trade Commission (FTC) have sparked a change in how leaders should talk about success. The lifestyle claims, emphasis on luxury rewards and “life-changing income” opportunities have become not only ineffective, but illicit.
There was a rags-to-riches lore that companies touted for a long time and when the FTC shifted its stance from ‘is this factual’ to ‘is this typical,’ the marketing value of those stories plummeted. Companies began to realize they maybe didn’t need to be paying large amounts of money to individuals.
An Affiliate Marketing Reality Check
Structural disadvantages, as seen in these top-heavy compensation structures, create unsustainable trajectories for companies. Over time, as payout numbers creep upward and activities of the recipients stagnate or decline, so too will companies. Put plainly: companies need to make more money than they spend and attract more distributors than they lose.
But the diminishing return model that has become clearly visible in legacy plans is now expected to appear in the earliest examples of companies who have left the multi-level model for a single-level, affiliate-based approach.
Industry analysts say leaving the direct selling model entirely and converting a salesforce to only affiliates will only work until attrition takes hold. Direct selling distributors build community and bring in new team members, but affiliates compete with each other.
“Anyone switching is doomed to not get to scale,” Jensen said. “Eventually their attrition rate will match any enrollment rate they have. And it will be flat. There is no way around that.”
The alternative is experimenting with the affiliate approach in a way that Jensen describes as “not breaking the mold of the normal direct selling model.” It was a strategy he used to develop Neora’s compensation model, which delivered a 78 percent ratio of customer-todistributor volume and defeated the arguments the FTC brought against it.
“What caused that ratio? It was an alignment of a new compensation plan with improved business practices that made it safer for customer gatherers—affiliates—to join and share products with customers,” Jensen said. “They didn’t have to build a team, but many learned it was better to build a team in time, and eventually, former affiliates had downlines.”
DIRECT SELLING DISTRIBUTORS
build community and bring in new team members, but affiliates compete with each other.
WHAT THE SUPPLIERS SAY
WE REACHED OUT TO TWO OF THE LEADING COMPANIES in compensation plan management to get their perspective on what their clients are trying and how they help execute that vision.
“
DIRECT SELLING COMPANIES face increasing pressure to adapt or add to their compensation plans to meet the evolving needs of the market, empower their distributors, and stay competitive. At Exigo, we believe one solution is to leverage software to manage and model any compensation plan scenario and analyze their impact before implementation. This helps companies to create adaptable, effective incentive structures that motivate distributors, drive sales and support long-term growth.
—RODGER SMITH / President & C MO, Exigo
“
THE DIRECTION OF DIRECT SELLING
TODAY is one of omnichannel marketing and extreme flexibility in compensation plans. We are seeing the proliferation of affiliate models and know that affiliate should not be a fork in your business road, but it can be a branch in your business tree. Exigo’s commission engine allows for variations by market, geography, or user type, allowing both business builders and influencers and consumers to all exist within a common ecosystem
JACK FARRIS / CSO, Exigo
“
AT ITS CORE, A COMPENSATION STRATEGY helps a company communicate its values and culture through key activities of support and empowerment, including:
n Share products and assist customers (help people)
n Develop a team with others who also want to share products (help people help people)
n Guide others to develop teams focused on sharing products (help people help people help people)
Today’s compensation plans encompass much more than just commissions. Compensation strategies are adapting to focus on customers and their expectations; prioritize simplicity; emphasize continuous performance-based activities; adjust to demands of global markets; allocate commission dollars and more. These strategies should concentrate on offering straightforward sales options that allow individuals to earn supplemental compensation. Companies can efficiently allocate commissions for customer acquisition and support, team building and leading sales teams.
STEVE HOOPER / VP, InfoTrax Consulting Services
I’m calling for a change in our thinking. I’m encouraging us to think of people who are ‘just selling’ as equally valuable and worthy of recognition as those who are building teams.
HEATHER CHASTAIN / CEO & Founder, Bridgehead Collective “
The New Compensation Plan Framework
From the stage at the DSU 2024 Fall Event, Bridgehead Collective Founder and CEO Heather Chastain shared her recent research, indicating that a decreasing number of direct sellers have interest in building teams or moving up in rank. This is a striking observation, since the typical compensation plan stands in contrast to that data, focusing on team volume and only rewarding those in the highest level of leadership with certain titles.
“I’m calling for a change in our thinking,” Chastain said. “I’m encouraging us to think of people who are ‘just selling’ as equally valuable and worthy of recognition as those who are building teams. You should be able to walk the stage at the highest level of recognition without having a team underneath you.”
This change also includes simplifying the language around compensation and being clear and transparent about how and when sellers will
be rewarded. The typical compensation plan features complex language with multiple ranks, each featuring a different payout percentage, and bonuses held behind intricate, layered requirements. Historically, this way to drive different revenue building behaviors has been called breakage because the barriers to the reward were so nuanced and detailed that many sellers wouldn’t check all the boxes required to earn the bonus, and companies would save money while benefiting from enhanced seller activity. Today’s sellers see these as “gotcha” moments, and it creates the perception of dishonesty and ultimately leads to missed expectations and disillusionment.
Instead, Chastain encourages executives to forgo percentages and points for easy-tounderstand round numbers: $1,000 selling bonuses; $500 auto-ship rewards; $20,000 rank advancement awards.
“This next generation of sellers doesn’t want to do a lot of math,” Chastain said. “Look for ways to streamline and simplify. It increases transparency, increases the ability to train effectively and attracts new people in a different way.”
If you can keep five percent more of your new recruits than you do today, your business could easily double inside of three years .
DAN JENSEN / compensation plan design expert
Loyalty Over Monogamy
According to her research, Chastain debunks this idea that “brand loyalty is gone” and says the next generations of social sellers actually have stronger brand loyalty than the ones before them. The difference is that they feel that way for multiple brands.
“The idea that any human on the planet would only use products from one single company is silly and marketing themselves as if they do is outdated,” Chastain said. “It’s unrealistic and comes across as inauthentic.”
Exclusivity clauses and restrictive language around who distributors can represent are becoming a thing of the past, according to Chastain. Companies that are capturing the loyalty of the new consumer are finding ways to embrace those who may be thought of as “unfaithful.”
“One CEO I worked with started calling and congratulating his sellers on their success in other companies,” Chastain said. “What that did for his retention of those leaders was phenomenal. When they felt like he believed in them and cared about their success and their fulfillment beyond just caring about their utility to him, it tethered them in a meaningful way.”
Front-End Optimization & Rapid Rewards
Distributor retention is now decided in the first 90 days. Not only are attention spans shorter, the options for making side hustle money are seemingly endless—and fast. The goal, according to Jensen, is to think of rewards as a pay-per-hour proposition.
“This isn’t to say that a company should pay hourly wages, but rather consider how well they compensate new team members for their time spent in the business. Time is your top competitor! If it isn’t worth their time, they leave. If it IS worth their time, they stick. This issue drives new recruit retention more than any other factor.”
“And if you can keep five percent more of your new recruits than you do today, your business could easily double inside of three years. It doesn’t take big movements to make huge revenue changes in the long term. Increasing retention at the front end of a plan even by a little bit has massive revenue consequences downstream.”
Any discussion of change, even ones that will create a healthier work environment for sellers, can send distributors into panic mode, which is why foundational changes to incentives and rewards should be approached like an evolutionary strategy rather than an unexpected course correction.
One source recommends helping disengaged and heavily compensated leaders gradually shift back toward activity by steadily lopping off the depth of the plan in phases and over time. This gives top tier leaders an opportunity to preserve or rebuild and honors their participation in helping build teams.
Executives and founders are encouraged to reevaluate which voices are getting the most attention.
“It’s a seismic shift,” an executive source said. “It means moving from listening to highly compensated leaders all the time, who may or may not be in touch with their customers, to understanding the people who are personally driving the volume and the business.”
Presentation Matters
Recruitment, at its core, is about acquisition. When distributors leave, or companies find themselves lacking in recruitment, it can be easy to assume that a compensation plan reboot will fix their problems. But a desirable rewards structure alone won’t attract new distributors. Acquisition is an expensive task, whether it is distributors, influencers or advertisements that is bringing new team members in.
This is why positioning is critical. If a compensation plan uses language like “unilevel” and “breakage,” it will attract experienced network marketers, while likely ostracizing the rookie entrepreneur looking for easy entry into a new side hustle. Deciding who the product and opportunity is for first, then designing a rewards structure around that target, will have greater success than simply casting a wide net hoping to attract every niche.
“We’re at an inflection point,” Duncan said. “We’ve always had these different audiences like hardcore networkers, social sellers and people looking for ways to earn a few hundred bucks each month. The danger is trying to attract everyone. You must pick who you want to focus on and make sure you’ve designed a plan that is attractive to that group. It’s not only a comp plan decision; it’s a culture decision and a training decision as well.” DSN
BY BRETT DUNCAN
Confusion? Chaos? Feel at all familiar?
I think executives in every industry have experienced a lot of both the past few years. But it certainly is true in direct selling.
WBUT HERE’S THE GOOD NEWS: the presence of chaos and confusion doesn’t mean things are bad. In fact, they’re often signs of progress.
HAT USED TO WORK DOESN’T ALWAYS WORK ANYMORE, and it rarely works to the same degree or in the same way. Even successful companies can’t always put a finger on what’s driving that success.
As we look around at our colleagues and counterparts, we see monthly news of pivots to new models, acquisitions, bankruptcies and everything in between.
And the field…the poor field! Our confusion and chaos at the corporate level doesn’t just trickle down to them; it snowballs into a massive juggernaut that steamrolls right over them.
No one likes chaos and confusion. It’s unsettling, stressful and difficult to navigate. But here’s the good news: the presence of chaos and confusion doesn’t mean things are bad. In fact, they’re often signs of progress.
Don’t believe me? Ever drive in construction? Feel confused? Chaotic? Of course. But the only reason construction is in place is to prepare for growth. Tired, stagnant towns don’t need construction, because what they already have works just fine. But construction is a symbol of growth.
Many executives come to my team asking about how they need to deal with the confusion and chaos. In some cases, the chaos and confusion are around them. In other cases, it’s within them. Regardless, it’s something that must be addressed.
?Once you get asked the same basic question repeatedly, it makes you wonder if there’s a bigger thing going on here. I began wondering what’s at the core of some of this confusion, beyond the more tactical answers we naturally gravitate to.
We normally jump straight to some of my other favorite words that start with “C,” like compensation plans and customer acquisition. These are two great examples of foundational pillars of a direct selling company. But lots of companies have taken measures to update their compensation plans and customer acquisition. Some have succeeded, and some haven’t.
THREE KEY TAKEAWAYS
1 / CHAOS AND CONFUSION AREN’T ALWAYS NEGATIVE
They are opportunities and indicators of possible growth. A stagnant company doesn’t have rampant confusion—but growing companies do.
2 / FIGURE OUT WHO YOU ARE AND WHAT YOU HAVE TO OFFER
Know your brand and your brand’s differentiators—and make sure that everything you do puts those key things front and center.
3 / PUT THE RIGHT PEOPLE IN THE RIGHT SEATS ON THE BUS
When making big changes, don’t just throw a body at the problem. Be thoughtful about making the right hires or internal moves to set people up for success.
So, what could it be? As I chewed on this question for a while, thinking about my own experiences and the experiences of my clients, several concepts began to emerge. And each of these concepts goes deeper than coming up with a new program or promotion. They touch on the heart of the challenge. And the more I dwelled on these concepts, the more I realized how all direct selling companies have room to improve in at least one of these eight areas. Let’s look at what these areas are and assess just how much each one could be contributing to our confusion and chaos.
Managing communication for a direct selling organization is really, really hard. There are so many different audiences, all caring about something different. “
1/ CONVERSATIONS
THE FUNDAMENTAL unit of success in direct selling is a conversation. If someone doesn’t first have a conversation about your product or service, then nothing else can happen. “Conversations” can happen many ways these days. A text message, a social media post, an in-person chat, a blog post. But before anyone ever buys a product; hosts a party; signs up as a consultant; attends an event; or anything else we ask our people to do, a conversation in some form or fashion must first take place.
I get to work with the field off and on with some of my clients, which is always fun. And I always talk about conversations. I often pose this: many of you are struggling in your business because you simply aren’t having enough conversations about your business. You keep waiting for something to sprout when you haven’t sown enough seeds. It’s a fun mic drop moment.
You could make a case that a consultant’s primary responsibility is to start conversations about your brand. We want those conversations to turn into something more, of course, but we definitely want every consultant to spark conversations about us.
Many corporate teams lose sight of this in the confusion and chaos of the day. We work so hard on the programs and promos to help drive the business, while failing to spark more conversations.
One of the corporate team’s primary roles and responsibilities is to spark more conversations about the company. Some of that can be done directly, but a lot of it comes down to us making it easier for our consultants to have more conversations—whatever that might look like.
2 / COMMUNICATION
IF YOUR COMMUNICATION falls short, the whole thing falls short. I’ve seen entirely too many projects take months, even years to prepare for, only to see a lack of focus and planning on the communication of the project’s rollout completely sabotage everything else. If you’ve spent any amount of time in direct selling, you’ve no doubt experienced this yourself.
Compensation plan changes. Website updates. Product backorders and discontinuations. Field leaders leaving to join another company. New sales tool launches. I’ve seen really good products and programs get completely destroyed because of a lack of respect and planning for communication.
Here’s the thing: managing communication for a direct selling organization is really, really hard. There are so many different audiences, from customers to passive side-giggers to fulltime leaders to everything in between, all caring about something different. So, it’s no surprise that our communication planning of all of our latest endeavors get botched time and time again.
Trust is the corporate team’s most important currency when it comes to working with the field. And trust can only be nurtured by open, honest and frequent communication. And the amount someone trusts you directly impacts the effectiveness of your communication with them. If I don’t trust you, I don’t pay too much attention to what you have to say, and I don’t bother saying much to you, either. If I do trust you, I’m very open to what you have to say and vice versa.
We must improve as communicators to reach the levels we all aspire to reach. I’m convinced that a lack of and/or poor communication is the root cause of 80 percent of the issues that direct selling companies face.
3/ CORE COMPELLING OFFER
THE EASIEST THING to sell is something that someone already wants.
Sometimes the biggest obstacle we face is the most obvious one. If what you have to offer doesn’t resonate with the audience you’re trying to reach, nothing else really matters.
The best compensation plan in the world fails without a core compelling offer. Your latest online sales tool fails without a core compelling offer. Your customer rewards program, flash sale, reels and stories, influencer campaigns and everything else— they fall flat if what you offer falls flat.
On top of that, the best sales tool you can give your consultants is an effective core compelling offer. They will have a conversation about it (see point 1) when they’re confident it’s compelling to their customer.
I know your products are amazing. But could the way you position them use a little refresh? Does the market still respond like it used to? Are there opportunities within the marketplace that you’re completely missing, but that your products definitely address? Are your product development efforts producing new core compelling offers, or also-rans?
In direct selling, it’s so easy to get caught up in our own echo chamber. When you only hear from your biggest fans, your offer can sound pretty dang compelling. Step outside of the chamber and see what’s really resonating (or not).
4 / CAMPAIGNS
“REAL” COMPANIES run long-term campaigns that cover months, even years. They understand that building awareness requires time and many different methods. And each of those methods requires its own expertise and nuance. Thinking in terms of campaigns requires drilling down on messaging; mapping out the marketing communications efforts over time; budgeting accordingly and tracking effectively, so you can review and modify as needed. Over and over and over again.
At direct selling companies, we tend to launch something with a Facebook Live and an email, and then let the field take it from there.
Is this harsh? Unfair? Probably. But, simply put, we direct sellers are pretty lazy marketers. We’re spoiled. We’re really good at launching stuff. Not so great at ongoing campaigns. To put it another way, we sow a lot of seeds, but we rarely stick around to water them.
But just think if we didn’t do it that way. Think if we did think in terms of campaigns, supporting our launches over six, 12 or even 24 months. What if we nourished and nurtured those seeds we planted with what those “real” companies do, and then coupled that with the heart and efforts of our sales force?
THAT would be exciting to watch.
We can no longer ignore good marketing and a campaign mindset and rely completely on the field. The field needs us to support the irreplaceable work they do with the table-stakes kind of work that any successful company would have in place today.
5/ CONVERSIONS
IN A WORLD WHERE side hustles and gig opportunities abound, the conversion rate is way more important than the commission rate. Not that commissions aren’t important (they are). But if visits don’t convert to purchases, and prospects don’t convert to customers, then it’s difficult for the modern social seller to tolerate it.
I spoke a lot about this in a recent article I wrote for DSN titled Direct Selling’s Identity Crisis, so I won’t belabor the point here (as long as you promise to go read that article online!). The simple fact that much of the chaos and confusion that ensues in today’s direct selling companies is because we don’t stack up well against our ecommerce competitors. A lot can be implied by the term “conversions” when it comes to ecommerce, but let’s just say that if we aren’t thinking in terms of conversions and how to improve them on a constant basis, then we’re really letting our salesforce down.
Think about what a poorly converting experience does to your consultant. They do everything we ask them to do to drum up interest and awareness. They start the conversation. They share the products, the opportunity, whatever. They get the verbal commitment. They send them a link. And then…nothing. Eventually, they stop starting the conversation, because they know where it leads. They quickly look for a company to partner with that has a core compelling offer that converts.
Bottom line: your company is an ecommerce company. And you’re an ecommerce executive. Act like it.
6 / COMMITTED
SO OFTEN, companies go through the exercise of making a bold decision, and then through the grueling process of launching whatever that decision dictates, only to abandon it shortly after launch. We plant the tree, and we water and fertilize the tree for a month or two, and then we rip it out of the ground when the two-month-old tree doesn’t produce years’ worth of fruit.
Are there times to pull the plug early on a bad idea? Of course. But my experience has shown me that our expectations for results, especially in terms of the timing of those results, is often unreasonable. The results may very well be coming, just not in our timing. But we never get to that point, because we can the whole project once it falls short of our lofty expectations.
As you make the bold decisions and bold moves that the times call for, check your commitment to those decisions. Are you truly committed to the path you’re taking? Do you truly believe in them? And not just because you’re hopeful or wishing, but because you’ve put in the research and thought and planning to feel confident in the path?
And is the whole team on board? At least in terms of your executive team, you’re only as strong as your least committed executive.
7/ COMPETENCE
THIS ONE STINGS A LITTLE. We often make the right decision, but we don’t have the experience or expertise to pull it off. We give our in-house team a chance to grow and learn (which is no doubt admirable), but in doing so, we force our distributors and customers to tolerate our learning curve. And we also hamper the progress of this big, bold move by coupling it with a lack of competence in terms of the people leading the work.
Believe me, I get it. I’m a product of direct selling execs giving me the opportunity to learn something new and grow into a position or a skill. So, I am in no way suggesting that we never do that. But if these decisions we’re making are in response to urgent situations, the urgency may demand a real expert who’s been there and done it, not a fast learner.
For example, we know so many companies are adding elements of affiliate programs to their company, or even pivoting altogether into that area. Then we ask our current field development team, who are experts in direct selling, to manage the affiliate space, which is very different. So, our program flounders because those leading the way are learning on the job, and we lose traction with both the prospective new affiliates because it’s clear we’re not exactly clear on how it works, and we also shortchange our existing distributor base by shifting the focus of their field development team away from them to a certain degree.
The point here is that bold moves deserve bold support. Our corporate teams know a lot, and their experience is priceless. At the same time, we must recognize when our lack of expertise in some new areas could be the very thing that keeps it from working.
8 / CASH
I DON’T HAVE TO SPEND much time here: when cash flow is low, everything is harder.
Sure, sometimes you just can’t help it. I’m not really talking about that. What I’m wanting to focus on here is how low cash flow impacts our decisions.
Chaos and confusion are not signs of failure. In fact, they’re almost always precursors to growth. They don’t guarantee success; they simply shine a light on opportunity. “
The lack of, and need for, cash can taint our decision-making process and force us to follow a path that otherwise we may have passed on. What decisions are you making today that help put you in a better cash position next year? It may be the less popular choice in the moment, but it could actually be setting you up for a much better decision down the road.
I’ll say it again: chaos and confusion are not signs of failure. In fact, they’re almost always precursors to growth. They don’t guarantee success; they simply shine a light on opportunity.
As you face chaos and confusion, how are you responding? Perhaps reflecting on one of the eight C’s in the article can help you take a step in the right direction. 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.
OUTSIDE FROM THE INSIGHTS
The Direct Approach podcast, hosted by Wayne Moorehead, remains one of the most trusted resources for industry executives. Every two weeks, Wayne and his guests share their thoughts on the channel, examining what’s new, what’s now and what’s next in a frank and lively exchange.
BY LISA ROBERTSON
BTHESE HIGHLIGHTS
give you and your teams priceless insights from the outside.
UT ONE RECENT EPISODE
TOOK THIS T O THE NEXT LEVEL—
and we wanted to make sure DSN’s readers had a chance to engage with this incredibly valuable information. Wayne was joined by a trio of industry experts: Bridgehead Collective Founder and CEO Heather Chastain; Brett Duncan, Co-Founder and Managing Partner of Strategic Choice Partners; and Blake Mallen, Billion Dollar Brand Builder and Host of the SHIFT podcast.
These highlights give you and your teams priceless insights from the outside. Wayne and his guests took a deep dive into the secrets of direct selling success. They also looked inside the channel’s crystal ball to predict what the future might hold.
With decades of experience working in various roles with direct selling companies and as leading consultants, their expertise provides an invaluable resource for all industry executives.
WAYNE MOOREHEAD / Host of DSN’s Direct Approach Podcast
HEATHER CHASTAIN / Bridgehead Collective CEO , Founder
Shift Toward Innovation
INNOVATION NOW includes leveraging technology, modernizing customer experiences and rethinking how value is delivered to distributors and customers alike.
The direct selling industry is evolving rapidly, and companies need to innovate across product offerings, business models and compensation plans to remain competitive. Innovation now includes leveraging technology, modernizing customer experiences and rethinking how value is delivered to distributors and customers alike. Embracing AI, social commerce and ecommerce strategies are all crucial to keeping up with changing consumer behavior and the rise of digital platforms.
Holistic Business Models
Direct selling companies are realizing that focusing on one aspect of the business, such as product innovation or compensation, is not enough. Instead, businesses must take a holistic approach by addressing changes in customer preferences, social dynamics, generational shifts and technological advancements. This includes integrating crossfunctional efforts in marketing, sales, operations and product development, ensuring they are aligned to create seamless and impactful experiences for distributors and customers alike.
BRETT DUNCAN / Co-Founder & Managing
P artner, Strategic Choice Partners
Compensation Adjustments
The importance of regularly revisiting and tweaking compensation plans cannot be overstated. Small, frequent changes help companies stay competitive; keep distributors engaged; and prevent the need for drastic overhauls in the future. Moving away from complex compensation structures to simpler, bonus based rewards that new generations can easily understand is one approach companies are taking.
AI Integration
AI is becoming a powerful tool in streamlining business processes, improving customer support and enhancing distributor engagement. It’s being used to reduce manual tasks, personalize training and improve decision making. AI also provides automation for repetitive tasks, freeing up teams to focus on strategy and relationship building. The emergence of industry-specific AI tools has allowed direct selling companies to customize their approach, providing a competitive edge.
Challenges in Affiliate Programs
Many direct selling companies have attempted to adopt affiliate marketing strategies to attract influencers and digital marketers, but the results have been mixed. A key issue is that affiliate programs are not the same as traditional direct selling structures, and companies may not be providing the right marketing, tools or compensation to attract affiliates. A successful affiliate program requires a different approach—one that’s more aligned with the digital marketing world and offering simplicity and efficiency.
Focus on Hispanic and Latino Markets
With the majority of direct selling customers in the Americas being Spanish and Portuguese speakers, companies must strategically target the Hispanic and Latino markets. This goes beyond translating materials—it requires understanding cultural differences, providing dedicated support and authentically engaging with these communities. Companies that invest in tailored messaging, customer service and leadership development will see substantial growth opportunities, as this demographic continues to expand. DSN
Listen to This!
WE’VE JUST SCRATCHED THE SURFACE of the insights and insider tips shared in this episode. It’s an episode you and your team simply can’t afford to miss.
Scan the QR code below to hear the episode in its entirety and to subscribe to Direct Approach and the full lineup of DSN podcasts.
BLAKE MALLEN / Billion Dollar Brand Builder & Host of the SHIFT podcast
VOICES FROM THE FIELD
IN A DSU FIRST, BLAKE MALLEN AND
SEVERAL SUCCESSFUL DISTRIBUTORS
SHARE
BY LISA ROBERTSON
HSHIFT
BY THE NUMBERS
TOP 100 in US*
TOP 50 in Canada*
30K+ unique downloads
*in entrepreneurship podcasts.
ISTORICALLY, Direct Selling University (DSU) has been an event designed exclusively for channel executives, with speakers and panels comprised of C-Suite team members from the leading companies in the industry
But as field issues and struggles continue to be a challenge for direct selling companies, this DSU featured a first—an impactful panel of successful field leaders from across the channel. Getting their unique perspectives on the current state of the industry and the pain points distributors face provided invaluable insights for DSU’s corporate audience.
MAKE THE SHIFT
Listen on your favorite platform and visit ShiftPodcast.com to share with your community.
The panel was moderated by Blake Mallen, host of the SHIFT podcast. The SHIFT, presented by Direct Selling News (DSN), sets a bold new standard for excellence in direct selling. Designed to empower and enlighten distributors at all stages of their journey, it’s a community and platform from a trusted source where top performing field leaders share their stories to motivate and inspire micro-entrepreneurs across the globe.
The panel, with over 100 years of combined channel experience, consisted of field leaders Donna Johnson, Sarah Robbins and Thomas Tidlund in addition to Mallen and addressed issues such as negative industry perceptions; regulatory challenges and hurdles; and the rise of competing models like the gig economy and affiliate marketing.
This session offered a robust and frank discussion of the challenges facing the network marketing industry and the need for a significant “shift” by both corporate and field leaders in order to navigate these changes.
They acknowledged that declining sales, disengagement and a growing sense of distrust within the field are all serious and immediate challenges that must be addressed to ensure the industry’s future.
Mallen emphasized that while the industry faces many challenges, it also has a unique opportunity to thrive by adapting to modern trends in consumer behavior, social media and digital marketing
The panel discussed the importance of authenticity, transparency and trust in leadership and how companies that foster these values will succeed in the long term.
Though the panel’s conversations were wide ranging, several notable thematic takeaways emerged as top of mind for distributors and corporate leaders alike.
1 / Industry at a Crossroads
The direct selling industry is facing significant challenges, including competition from the gig economy, negative public perceptions and a disengaged field.
2 / Visionary Leaders Needed
There is a call for new, visionary leadership that can guide the industry through its current challenges and inspire confidence in distributors and customers alike.
As Johnson explained, “The field must get back into believing in this channel and in each other. And I think we need visionary leaders to do that. They need to be out front, not behind the curtain. That’s something I think we are missing right now. So, I encourage companies to let your visionaries shine. People need to hear and see that vision. They gravitate to it.”
3 / Trust is Essential
Building trust between companies and their field is critical to overcoming the current challenges. Companies that prioritize trust, transparency and relationship building will thrive. Robbins—who was a top field leader at Rodan + Fields before that company’s recent abandonment of the model—shared a powerful truth about the unrest that’s prevalent in today’s climate. “I heard from countless mega leaders at iconic companies, and they were all thinking...well if Rodan + Fields did this, what would keep my company from doing it too? It’s created an environment of massive distrust.”
From left:
DONNA JOHNSON THOMAS TIDLUN D, SARAH ROBBINS and BRETT MALLEN
4 / Adapting to Modern Trends
The industry must evolve to meet new consumer expectations, particularly around digital marketing, social media and the creator economy to stay relevant and competitive.
5 / Return to Foundational Principles
Despite the need to evolve, the panel emphasized the importance of staying true to the core values of network marketing—building authentic relationships and focusing on people.
As Tidlund explained, “When it comes to all the change that you hear about at DSU, that’s inevitable. But this is foundationally a people business. There aren’t robots building the business. So, we must do those basic things: relationships, simplicity, honesty. I’m not a big fan of carrots on a stick because the truth of what we have is good enough.”
The panel concluded with Mallen encouraging companies to embrace the needed shifts; evolve their strategies; and focus on building trust with their distributors and customers.
This panel was an important step and evolution for DSU as it brings the field perspective directly to executives in an unfiltered and frank forum
Mallen said, “Hopefully we can do more to bring different groups together bridging these perspectives as we all work to build this amazing channel together.” DSN
SCAN THE QR CODE TO NOMINATE A FIELD LEADER FOR THE SHIFT PODCAST.
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
BOOK / 12 Rules for Life:
An Antidote to Chao s
BY DR. JORDAN B. PETERSON
As a #1 national and international bestseller, Dr. Jordan B. Peterson’s 12 Rules for Life is a must-read. Through his work as a clinical psychologist, author and educator, Dr. Peterson helps people make the most of their lives. In this book, he leverages his work and life experience—as well as his knowledge of philosophy, history and religion—to teach an “antidote to chaos” through 12 practical principles that help build a fulfilling life.
PODCAST / The Ed Mylett Show
Ed Mylett does it all: global speaker, entrepreneur, bestselling author, TV host and “top mindset and performance coach in the world,” per USA Today. As a mentor for the world’s elite achievers, Mylett shares his strategies in his highly rated podcast which showcases peak performers across all industries as they share their journeys, insights and thought leadership. From John Maxwell to Troy Aikman, the guests and topics are as diverse as they are motivational.
AI TOOL / Coveo
The future is business-to-person, powered by AI search and generative experiences. So says Coveo, a robust SaaS platform that creates individualized, trusted experiences with your customers. Coveo offers a suite of features specifically built to transform every digital experience— from websites and ecommerce to service and the workplace. Coveo helps users navigate seamlessly through your websites by answering questions, predicting needs, suggesting products and much more.
“Gratitude is the inward feeling of kindness received. Thankfulness is the natural impulse to express that feeling. Thanksgiving is the following of that impulse.
—HENRY VAN DYKE
AUDIO BOOK / At the Corner of Destiny and Ingenuity: Lessons from an Entrepreneur’s Improbable Life
BY PAUL OWHADI
It’s no secret that entrepreneurship is difficult. But some have more challenges than others, which provides instant perspective for the rest of us. Paul Owhadi’s improbable entrepreneurial journey began as a first-generation immigrant coming to America with only a few hundred dollars to his name. His audio book details how he leveraged challenges to create a life of passion and innovation—an underdog story sure to inspire any entrepreneur
APP /
Happyfeed
Thanksgiving is not just an annual holiday— it’s a year-round practice! Happyfeed is a gratitude journal app that helps you cultivate joy by reflecting on good things every day. Happyfeed allows users to create a visual diary of positive daily memories using photos and videos. The app reminds users to post happiness-boosting gratitudes, which can be kept private or shared. Easy to use and based on positive psychology, Happyfeed is purpose-filled social media.
VIDEO / 12 Traits Emotionally Intelligent People Share
BY DANIEL GOLEMAN
What sets top performers and leaders apart? According to renowned psychologist and author Daniel Goleman, the answer is EQ, or emotional intelligence. While ancient philosophers wrote about this concept, it was Goleman’s bestselling book Emotional Intelligence that popularized the term in 1995. In this fascinating video, Goleman shares the 12 traits that people with high EQ share. And unlike IQ, which remains fairly static throughout life, EQ can be developed at any age—invaluable information for your teams. DSN
SAVE ALL THE DATES!
MORE EVENTS
MORE COUNTRIES
MORE CONTENT
Mark your calendars now for these must-attend events in 2025. Spread the word to your global colleagues, and get more from Direct Selling University in 2025 as DSU continues its global growth.
DSU LATAM | JANUARY 8-9, 2025
InterContinental at Doral, Miami
DSU SPRING | MARCH 25-27, 2025
Irving Convention Center, Texas
DSU EUROPE | JUNE 3-5, 2025
Amsterdam Hilton Airport Hotel, Netherlands
DSU FALL | OCTOBER 6-8, 2025
Renaissance Legacy West, Texas
DSU ASIA | NOVEMBER 2025
Seoul, South Korea
Join us for the Global Celebration as we unveil the DSN Global 100 for 2024.
Block your calendar, make plans with your internal team and stay tuned for registration details.
Keep checking dsnevents.com for details!
CUTCO /
Cutco: An American Icon Celebrates 75 Years
BY JENNY VETTER
IMAGINE A FAMILY-OWNED COMPANY in a small town with a lifetime of service to its residents. It sounds like the beginning of a long-lost American Dream story, especially in a moment in time that’s dominated by anything that’s “new.” But the enduring strength of Cutco, one of America’s oldest direct selling companies, lies in its steadfast service to both its customers and the community it holds dear. As Cutco celebrates its 75th birthday, its “Forever Guarantee” seems to speak as much to the company’s products as it does to Cutco’s place in the industry and its hometown.
FOUNDED: 1949
HEADQUARTERS: Olean, New York
TOP EXECUTIVE: Jim Stitt, Jr., CEO
PRODUCT CATEGORY: Home Goods
WHAT BEGAN AS A REVELATION about the ingredient profiles of personal care products became a lifelong commitment for Heidi.
Like New Forever
“
THE FACT THAT we make a timeless product has helped us to stand the test of time.
JIM STITT, JR . / CEO
“I wouldn’t want to be in the smartphone business,” laughed Jim Stitt, Jr., Cutco’s CEO. “I don’t know what it’s like to run a company that has a consumable product. I only know a durable product.”
Cutco has defined durable for over seven decades, offering a catalog of cutlery, cookware and tools backed by the company’s Forever Guarantee—a promise that every Cutco product will last a lifetime. The company has proven itself to be just as durable as its products, operating from its headquarters in Olean, New York since 1949. Originally a product line within Alcoa, a Pennsylvania-based aluminum company, Cutco has been an independent, family-owned business since 1982, when Jim’s father, along with a team of managers, purchased the company.
“My dad was one of those early partners in 1982,” Jim explained. “The company has been a privately held family company since that time. In terms of high-end kitchen cutlery sold through direct sales, that’s what we were founded to do in 1949, and that is what we are still doing today.”
Cutco products are sold primarily through Vector Marketing, a single-level direct sales company that sells Cutco through independent sales representatives in the United States and Canada.
These sales representatives, often students, are recruited and trained to market Cutco products in their areas. They earn commissions for sales made and may qualify for a minimum commission for demonstrating the products. While many sales representatives only market Cutco for a summer, gaining valuable skills they take into future opportunities, some representatives actively sell for many years, building solid careers around Cutco’s enduring products.
“We’re making a basic tool that is standing the test of time,” Jim shared. “Knives are not something that’s a flash in the pan. It’s not a fashion thing. It’s a tool that people use in their kitchens. Human beings continue to need to eat, and they continue to need good tools in their kitchens. And the fact that we make a timeless product has helped us to stand the test of time.”
— JIM STITT, JR / CEO “
WE INVEST a lot of time, money, thought and care into our people.
Handcrafted Community
Since 1949, Cutco cutlery has been manufactured in Olean, a small town of 14,000 residents in Western New York. Cutco is the top employer in Olean, employing over 700 people. Simply put, Cutco and the town are intertwined, one supporting the other.
“We are an economic pillar in this community,” Jim shared. “Everybody who works here understands that and takes a lot of pride in it, on top of taking pride in making a product that they feel good about the high quality of. We pride ourselves in making people decisions that may affect our business as opposed to business decisions that may affect our people. And by doing that, we have a team of people here that is fiercely loyal to this company.”
The company has two unique cultures—the community culture that’s deeply connected to the Olean area and a second family that ripples throughout the country in the Vector sales field.
As fresh faces are added to the field team each summer, Vector and Cutco are infused with a contagious youthful energy. Over their initial months with the company, many young, excited sales representatives gain invaluable business, marketing and personal development skills they’ll carry with them for the rest of their lives.
In any given summer, Vector contracts with thousands of sales representatives, after interviewing and training from hundreds of independent recruiting offices. The majority of these representatives are students, so the company understands they may only market Cutco products during the summer months, but that’s long enough to invest in these future leaders.
“We teach people skills, sales skills, competence skills, public speaking skills and self-belief skills— which is a lot of what threads through direct selling,” he explained. “We invest a lot of time, money, thought and care into our people. And it’s important to us that we recognize most people aren’t going to stay with us forever. We want them to leave saying, ‘that it was a great experience—they cared about me; they made me better.’ And when they look back on their careers, we like the stories where they can say they got started with Vector and Cutco and how the things they learned with us put them on a path of success.”
Heritage to Hand Down
As Jim looks back at the last 75 years, he’s proud of all the ways that Cutco has stayed the same: a people-first focus; products that last a lifetime; and a commitment to the family built both in Olean and across its field offices.
So much has stayed the same, especially throughout the years Jim’s family has been at the helm of the company. But Jim is just as proud of all that’s to come at Cutco, as he stewards the company’s legacy and importance to his hometown. He’s grateful to take Cutco into its next chapter, building leaders who can help share the Cutco story in a world that often takes the fast, easy road instead of the slow and steady path his company has taken.
“There are a lot of individuals that are depending on this company to be there for them in this community and for us to keep doing what we’re doing, getting it right and not being a failed story somewhere down the line,” he shares. “For us to be able to pass this on to the next generation—and I’m not just talking about my kids—but for all the people that work in this company, that it can be a place where their kids can work and their grandkids can work, and that we can be an American success story for years to come. That’s exciting work. It’s fulfilling work that allows me to show up every day and say, okay, there’s something important for us to work on and go after.” DSN
Maximize Your Tech Investment
Strategies for higher software ROI.
BY RODGER SMITH, PRESIDENT AND CMO, EXIGO
A COMPREHENSIVE ASSESSMENT of your software needs is the foundation for effective cost-cutting.
IN THE RECENT UNPREDICTABLE ECONOMIC LANDSCAPE, direct selling companies are constantly seeking ways to refine operations and reduce costs. One area that often presents significant opportunities for cost savings is direct selling software. By carefully evaluating and improving software investments, companies can streamline processes, enhance efficiency and weather economic downturns more effectively. Let’s explore strategies for cutting costs in direct selling, with a particular emphasis on software.
Assessing Software Needs and Costs
A comprehensive assessment of your software needs is the foundation for effective cost-cutting. This involves identifying essential applications and evaluating their cost-effectiveness. Here are some key considerations.
BY CAREFULLY evaluating and improving software investments, companies can streamline processes, enhance efficiency and weather economic downturns more effectively.
1 / IDENTIFY ESSENTIAL APPLICATIONS
Determine the software tools that are critical to your operations, such as:
n Reporting
n Business intelligence and data visualization
n Product inventory control
n Customer Relationship Management (CRM)
n Shopping and order processing
n Shipping and logistics
2 / EVALUATE COST-EFFECTIVENESS
Consider the following factors when assessing the cost- effectiveness of each application.
n Maintenance costs
Factor in the costs of software updates, upgrades and technical support.
n Return on investment (ROI)
Evaluate the benefits of each application and how it contributes to your overall business goals.
n Scalability
Assess whether the software can accommodate your company’s growth and changing needs.
n Integration
Consider the ease of integrating the software with your existing systems.
n User friendliness
Evaluate the software’s ease of use and whether it meets the needs of your employees.
n Customization
Assess the flexibility of the software to be tailored to your specific business processes.
3 / METRICS TO KEEP IN MIND
When assessing software costs, it’s essential to focus on key metrics that offer a comprehensive view of your investment’s value. Here are four critical formulas to guide your evaluation.
n Return on Investment (ROI)
ROI measures the overall financial return from your software investment. This shows how much you gain for each dollar spent, helping you assess the financial efficiency of the software. The formula is: ROI = (Net Benefits – Costs) / Costs.
n Total Cost of Ownership (TCO)
TCO accounts for the entire cost of the software over its lifecycle, not just the purchase price. This includes upfront costs (such as licenses and installation) and ongoing expenses (maintenance, upgrades and training). TCO offers a holistic view of what you’re truly spending.
n Payback Period
This metric helps you understand how quickly the software will pay for itself. A shorter payback period is ideal, as it shows a faster return on your investment. The formula is: Payback Period = Initial Investment / Annual Savings or Benefits.
n Time to Value (TTV)
TTV measures how long it takes for the software to deliver measurable benefits after implementation. A shorter TTV means your business will start reaping the benefits sooner, which is crucial for keeping operational momentum and improving overall ROI.
CLOUD-BASED SOFTWARE offers several advantages for direct selling companies looking to reduce costs and improve flexibility.
4 / IMPROVING EXISTING SOFTWARE
Before investing in new software, explore opportunities to improve existing systems. Often there are underdeveloped and underutilized features within existing software that can be used to streamline processes and reduce costs. Consider:
n Customization
Adapt your software to your specific business needs, cutting unnecessary features and tailoring it to your workflows. A custom development partner can often help with this if the in-house staff doesn’t have the bandwidth.
n Integration
Integrate your software systems to improve data flow and reduce manual data entry. If you use third party apps, there are partners who can help with seamless integration.
5 / EVALUATING LEGACY SYSTEMS
Legacy systems, while familiar and reliable, can often be costly to support. Assess the ongoing costs associated with your legacy systems, including headcount, hardware, software maintenance and support. Ask yourself these questions when evaluating whether to upgrade or replace legacy systems.
n Scalability
Can your legacy systems accommodate your company’s growth and changing needs? Can they keep up with modern innovations in technology and the direct selling industry?
n Security
Are your legacy systems adequately protected against cyber threats? Does your in-house team guarantee uptime and security?
n Efficiency
Are your legacy systems hindering productivity and efficiency due to lack of speed or complex usability?
6 / CLOUD-BASED SOLUTIONS
Cloud-based software offers several advantages for direct selling companies looking to reduce costs and improve flexibility. There are key benefits of moving to the cloud.
n Reduce upfront costs
End the need for expensive hardware and infrastructure, such as servers, storage devices, staff and networking equipment.
n Improve scalability
Easily adjust your software resources to meet changing demands. As your business grows (or shrinks), you can quickly scale up or down, avoiding the need for costly hardware upgrades, hiring or downsizing.
n Reduce maintenance costs
Rely on your provider for software updates, maintenance and security patches. This frees up your IT resources to focus on other revenuefocused and strategic initiatives.
n Improve data security
Platform as a Service (PaaS) providers often have robust security measures in place, including data encryption, access controls and disaster recovery plans.
n Integrate with other cloud-based tools
PaaS software often integrates seamlessly with other cloud-based tools, such as CRM, marketing automation and accounting software.
7/ SOFTWARE LICENSING AND N EGOTIATION
Negotiate your software licensing agreements to secure favorable terms and potentially reduce costs. Consider the following strategies:
n Volume discounts
Negotiate discounts for multiple licenses or long- term commitments.
n Implementation
Request a discount for the initial launch implementation fees.
n Customization
Request customization options at a reduced cost.
The key to successful software management is a proactive approach involving regular assessment, optimization and negotiation. By staying informed about the latest trends and technologies—and by making informed decisions—you can ensure that your company’s software infrastructure supports your growth and profitability. DSN
Since 2002, RODGER SMITH has brought his entrepreneurial mindset and no-nonsense, sincere leadership style to the direct and social selling industry. Rodger successfully completed the merger of his first technology company with a competitor in 2010. He then co-founded the company that would become DirectScale in 2012, and by 2017 completed two successful rounds of funding. In 2022, DirectScale was sold to Exigo where Rodger currently serves as President and CMO.
Thank you for your continued membership in the Direct Selling Association (DSA).
Your commitment to renewing your membership in your not-for-profit trade association ensures that you are part of a powerful voice dedicated to preserving independent contactor opportunities for companies like yours.
As a DSA member, you gain access to a wealth of research, educational programs and professional development opportunities, allowing you to connect with other business leaders who share your vision. Your membership empowers your company to thrive in exciting and innovative ways.
Thank you for being an essential part of our community. We are stronger together.
Renew your membership before MARCH 15, 2025 at DSA.org/renew.
SUPPLIERS: Renew before JANUARY 15, 2025 at DSA.org/supplier-renew.
Power of Association: Renew for 2025
FOR OVER 110 YEARS, the Direct Selling Association (DSA) has been at the forefront of our industry, gaining increased influence for the channel through work that protects, serves and promotes the effectiveness of member companies and the independent businesspeople they represent.
Your membership matters, and your engagement with DSA is paramount to the channel’s success. Together, we have managed through a challenging business climate: many have reported recruiting, supply chain and shipping costs as focus areas.
Even considering these challenges, direct selling’s $36.7 billion in retail sales during 2023—together with our 6.1 million US-based entrepreneurs who provide a personalized buying experience for 37.7 million customers— demonstrates how demand for direct selling products and services remains the channel’s strength.
DSA’s ENGAGE event and webinar series, Social Media Day, Direct Selling Compliance Professional Certification Program (DSCPCP) and other education and networking opportunities will continue to engage the broadest range of channel leaders to sharpen our competitive edge.
DSA also created opportunities like the Women’s Entrepreneurship Roundtable and a Capitol Hill briefing on the future of work to bring direct selling voices directly to elected officials and policymakers.
The Association’s work to create even stronger bonds with regulatory agencies, together with our efforts to protect the
independent contractors who are the channel’s lifeblood, continues to build influence in Washington, D.C. and statehouses across the nation:
• At the federal level, DSA worked to insert language restricting the Federal Trade Commission (FTC) from advancing rulemaking related to Business Opportunities and Earnings Claims into the FY 2025 Financial Services and General Government appropriations bill.
• In addition to meeting with the two newly appointed FTC commissioners, DSA authored a compelling letter expressing concerns about rescinding the 2004 Advisory Opinion and updated Business Guidance Concerning Multi-Level Marketing.
Vice President, Membership, DSA
• O n the independent contractor front, the team’s advocacy efforts engaged senior Department of Labor officials to gain increased clarity under the final independent contractor rule. DSA also led an interindustry effort to advance the Congressional Review Act resolution, which would nullify the rule.
Because DSA members are subject to the Association’s self-regulatory requirements, they do not need to register annually with the Montana Securities Commissioner’s office. I invite nonmembers with questions about this annual Montana requirement to contact me at nburke@dsa.org.
2025 Active Membership Renewals will launch during the coming month. The deadline to pledge your company’s dues and reaffirm your company’s commitment to DSA’s Code of Ethics is Friday, March 14, 2025. DSN
NANCY M. BURKE
SUPPLIER
DIRECTORY SQUIRE
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.
PAYQUICKER
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.
I-PAYOUT
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.
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.
MINER GROUP LLC
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.
WORLDPAY
8500 Governors Hill Drive Cincinnati, OH 45249 866-622-2390 worldpay.com
Worldpay powers businesses of all sizes to make, take, and manage payments. Whether online, in store or mobile, you’ll find Worldpay at the heart of great commerce experiences globally.
METRICS GLOBAL, INC
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.
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.
NEXIO
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.
LaCore Logistics provides distribution and order fulfillment services. Our highly automated distribution center provides both domestic and international direct-to-consumer shipping solutions. We offer omni-channel fulfillment solutions ranging from marketplace fulfillment for leading marketplaces to businessto-business fulfillment for leading retailers.
KATAPULT EVENTS
5840 Red Bug Lake 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!
QUICKBOX
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!”
ADI MEETINGS AND EVENTS
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.
HANNA SHEA
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.
MULTI IMAGE GROUP
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.
E.A. DION, INC.
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.
DIRECT SALES EXPERTS INC. EXECUTIVE SEARCH
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.
ROYAL CARIBBEAN INTERNATIONAL
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.
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.
FLUID
139 Hunters Grove Lane, Suite 207 Lehi, UT 84043 385-336-7404 fluid.app
The front end for Direct Selling. AI-Powered E-commerce, Mobile App, Website Builders, and Social Selling.
EXIGO
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.
FLIGHT COMMERCE
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.
THATCHER TECHNOLOGY GROUP, LLC
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.
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.
INFOTRAX SYSTEMS
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.