September 2024 Direct Selling News

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DEFINING DIRECT SELLING

IT’S TIME TO REDEFINE THE BUSINESS MODEL AND CONTROL THE NARRATIVE.

BUT DO WE KNOW WHAT WE WANT TO SAY?

AT YOUR SERVICE / THE SERVICE SECTOR IS ENJOYING AN UPTURN—FIND OUT WHY

CHEVRON DEFERENCE / WHAT YOU NEED TO KNOW ABOUT THE RECENT RULING

COLOR STREET / BECOMING A GLOBAL BEAUTY BRAND

ATOMY / BRINGING KOREA TO THE W ORLD

THE WORLD’S #1 DIRECT SELLING PLATFORM

The

From

Joni Rogers-Kante credits her commitment to consistency, devotion to family, and abiding faith to achieving success as a business and family woman.

Joni has paved a path toward a life of abundance, and she devotes her life to empower others to find theirs, too.

For Joni, her company SeneGence stands for more than its cutting-edge and highly desirable beauty products. Its causedriven purpose is to promote more women

in business and care for communities in need through its nonprofit. Not only has Joni built a rewarding global business, she is also changing lives closer to home. Joni passionately protects rights of independent entrepreneurs in the direct selling industry and works to improve the economic lifeblood in her home state of Oklahoma.

Joni believes accomplishment is unique for everyone, and we are all here with

our own important purpose. She says a fulfilling life is made with the four E’s: Earn, Evaluate, Evolve, and Explore. When we value and respect each other, we will all move forward together.

We are proud to partner with Joni and those like her who consistently prove that hard work and courage are rewarded with limitless possibilities. After all, people are our greatest strength.

Las Vegas Salt Lake City Singapore Dublin Mexico City
S ENE G EN CE
R EA L P EO PLE. R EA L STO RI ES.

ARE YOU REGISTERED?

Experience the ultimate 3-day masterclass for the channel, with more workshops, exclusive panels and special bonus sessions than ever before!

This in-person event is free for all corporate team members of an active direct selling company. Hear from direct selling’s top innovators.

Monday, September 23Wednesday, September 25, 2024

Irving Convention Center at Las Colinas

500 W. Las Colinas Blvd.

Irving, TX 75039

Scan the QR code to register at dsnevents.com/ fall-2024

MAINSTAGE SPEAKERS

Direct Selling University is known for bringing together many of the top innovators and strategists from the channel in a single event. Take a look at these experts and executives presenting as part of our main sessions.

WHITWELL Vice President, Field Development NeoLife

Marketing, Brand Strategy & Direct-to-Consumer Industry Expert, Podcast Host

STUART JOHNSON CEO, Direct Selling Partners, DSN
HEATHER CHASTAIN Founder & CEO Bridgehead Collective
MIGUEL A. BEAS Chief Sales Officer, President of Sales Zinzino
SUNNY BEUTLER CEO Sunrider
ADA CABELLERO Top Field Leader Vida Divina
RYAN GOODKIN Director of Product Development LiveGood
DAN DEBNAM Founder & CEO Conturae
LANDEN FREDRICK CEO Mannatech
BRETT DUNCAN Co-Founder & Managing Partner Strategic Choice Partners
BLAKE MALLEN Billion-Dollar Brand Builder & Community Marketing Strategist | Podcast Host
JACK FARRIS Chief Revenue Officer Exigo
BRANDON JOHN President & Co-Founder Fluid
SEAN SMITH CEO InfoTrax
STEPHEN
BARB PITCOCK CEO Frequense
DAVID SCHMIDT Founder & CEO LifeWave
AMANDA TRESS Founder & CEO FASTer Way to Fat Loss
WAYNE MOOREHEAD
CHRIS MCDERMOTT CEO The 1:1 Diet by Cambridge Weight Plan

MORE PANELS & WORKSHOPS THAN EVER BEFORE!

DSU Fall 2024 is delivering the exclusive panels and deepdive workshops that are sure to fill your notebooks with practical takeaways and thought-provoking considerations that could impact your company’s planning and operations for months and years to come.

All sessions are complimentary with your DSU registration, but some require an additional registration step, so make sure you’re signed up for everything you want to be a part of.

LEGAL & COMPLIANCE WORKSHOP

In this three-hour workshop, you'll hear from many of the industry's most sought-after legal experts, as well as general counsels and corporate executives from direct selling companies, sharing the latest on the hottest topics and how in-house legal teams are tackling each new challenge and opportunity.

Featured Sessions:

 The Chevron Ruling and Next Steps for Direct Selling Companies

 Non-Compete Legislation and Trends in Distributor P& Ps

 The Impact of Independent Contractor Status

 Class Action and Representative Action Updates

 Real-World "Gotchas"

Additional registration is required (but still no cost for active company members).

Monday, September 23, 1-4 p.m. in the Main Ballroom

THE PERILS AND PITFALLS OF PRIVATE

EQUITY IN DIRECT SALES

We are thrilled to announce the addition of our Private Equity Panel to our upcoming DSU Fall Event. This exclusive panel will delve deep into the impact of private equities and offer critical insights from experts on the front lines.

START-UP PANEL

Always a crowd-favorite, the start-up panel features executives and founders from some of direct selling’s newest companies, sharing inspirations and insights from those succeeding at an early stage.

AI WORKSHOP

Back by popular demand! This updated Al Workshop hosted by Blake Mallen will focus on a wide range of new tools and applications of AI for sales, marketing and training and is ideal for CSOs, CMOs, training and creative team members.

September 24 5:30 - 8 p.m. Main Ballroom

BRICK BERGESON Chief Revenue Officer Color Street
STEVE PERKINS Founder & CEO Healthy Home
BRETT A. BLAKE CEO
RYAN SCOTT VP & Chief Strategy Officer Neumi
ORAN ARAZI-GAMLIEL Advisor to CEO & Board Members
ASHLEE HEADLEE Founder & Co-CEO
JACOB MCCLAIN Head of Sales & Growth Fluz

SERVICES COMPANY SESSION: STRATEGIES FOR SUCCESS

Wednesday, September 25, 1 - 5 p.m.

One of the hottest topics in direct selling is the success of the services sector. Our bonus Services Session: Strategies for Success is a four-hour extension of our core DSU content, focusing on executives and experts from the services space.

SERVICES COMPANIES 101: YOUR PRIMER ON SERVICES COMPANIES IN THE CHANNEL

This exclusive session is packed with actionable insights to help you navigate the success of service companies in the direct selling industry.

FEATURED SERVICES COMPANIES SPEAKERS

COMPANIES START-UP PANEL

All DSU Fall 2024 attendees are welcome to join this bonus session. Whether you work at a services company or not, you'll gain practical takeaways and innovative thinking that can be applied immediately to your

BILLION DOLLAR INSIGHTS PANEL: THE FUTURE OF SERVICES COMPANIES IN DIRECT SELLING

A deep conversation led by Stuart Johnson with executives from some of today's most successful services companies as they share their thoughts on the future of services companies in direct selling. The companies represented on this panel alone account for more than $8 billion in revenue!

STUART JOHNSON CEO, Direct Selling Partners, DSN

EVENT SUPPLIER SPONSORS

FEATURES At Your Service BY SARAH

The End of Chevron BY SARAH

International Focus: Atomy BY DSN

Company Spotlight: Color Street Becoming a Global Beauty Brand BY JENNY VETTER

Young Company Spotlight: Bravenly Global A Leap of Faith in a Global Pandemic BY MARK ROBERTS

DEPARTMENTS

FOR YOU / FOR YOUR FIELD / Your Essential Monthly Motivation BY CHELSEA HUGHES

WORKING SMART / Embracing the Future BY MIKE CHRISTENSEN

50

COVER STORY

DEFINING DIRECT SELLING

all starts with

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.

POSTMASTER: Send address changes to 5717 Legacy Drive, Suite 250, Plano, TX 75024.

Subscription Rate: Free to direct selling and network marketing executives in the US.

©2024 Direct Selling News

All rights reserved. Material may not be reproduced in whole or in part in any form without written permission. No statement in this publication is to be construed as a recommendation to buy or sell securities or to provide investment advice.

Direct Selling News

5717 Legacy Drive, Suite 250, Plano, Texas 75024 / Phone: 800-752-2030 directsellingnews.com

DIRECT SELLING NEWS

Serving the Direct Selling and Network Marketing Executive Since 2004

A Direct Selling Partners Company

FOUNDER AND CEO

Stuart P. Johnson

PUBLISHER

Patricia White

EDITOR

Lisa Robertson editor@directsellingnews.com

NEWS EDITOR

Sarah Paulk pr@directsellingnews.com

CREATIVE DIRECTOR

Susan Douglass

PRODUCTION MANAGER

Virginia Le

PRODUCTION ARTIST

Megan Knoebel Ascencio

WEB MANAGER AND DIGITAL MARKETING

Laura Coppedge

COPY EDITOR

Laura Coppedge

DIRECTOR OF SALES OPERATIONS

Nancy Ratcliff support@directsellingnews.com

CONTRIBUTORS

Mike Christensen S arah Paulk

Chelsea Hughes M ark Roberts

David Lee J enny Vetter

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TO SUBMIT PRESS RELEASES: pr@directsellingnews.com

TO SUBSCRIBE/UNSUBSCRIBE: subscribe@directsellingnews.com

DIRECT SELLING NEWS

USPS 23713 • ISSN 15546470

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

For your convenience, we have compiled a list of our display advertisers. When contacting these companies or those in our Supplier Directory (starting on page 102), please let all of our valued advertisers know that you saw them in DSN .

Partnering with DSN has helped QuickBox emerge into a vertical of great merchants and vendors alike. They have helped us grow and understand the industry and how we can better support the great companies in it.

720-990-5642 / QUICKBOX.COM

Exigo 214-367-9933 / EXIGO.COM INSIDE FRONT COVER

Metrics Global

702-757-9600 / METRICSGLOBAL.COM PAGE 1

Fluid

385-336-7404 / FLUID.APP PAGE 10

Association for Entrepreneurship

844-750-5927 / AFEUSA.ORG PAGE 16

Nexio

877-551-5504 / NEX.IO PAGE 18

Flight Commerce

813-277-0625 / FLIGHTCOMMERCE.COM PAGE 19

i-payout

DISCOVER@I-PAYOUT.COM / I-PAYOUT.COM PAGE 25

Katapult 407-915-9060 / KATAPULTEVENTS.COM PAGE 30

World Pay

GETINFO@FISGLOBAL.COM / WORLDPAY.COM PAGE 49

E A Dion

800-445-1007 / EADION.COM PAGE 32

Shawn Meaike SHAWNMEAIKE.COM PAGE 33

Thatcher Technology Group

630-696-4545 / THATCHERTECH.COM PAGE 37

Momentum Factor

512-690-2134 / MOMOFACTOR.COM PAGE 41

Squire 801-225-6900 / SQUIRE.COM/NETSUITE PAGE 61

Teqtank

844-605-9624 / TEQTANK.COM PAGE 41

Strategic Choice Partners 504-252-4500 / STRATEGICCHOICEPARTNERS.COM PAGE 92

Direct Selling Association 202-452-8866 / DSA.ORG PAGE 100

InfoTrax 801-431-4900 / INFOTRAXSYS.COM BACK COVER

Our mission is to serve, educate and edify the channel with daily breaking global news, emerging trends and powerful stories, made possible through the generosity and support of our Premier Supplier Sponsors. Thank you for your dedication to the direct selling channel! For information on how to become a Fall DSU Sponsor, email nratcliff@directsellingnews.com.

THANK YOU TO OUR SUPPLIER SPONSORS!

Changing the Narrative

I HOPE EACH OF YOU ENJOYED A LONG AND LAZY SUMMER spent with your family and friends. We are very excited to bring this month’s cover story to you. It’s all about defining direct selling and refining the language and stories we use to describe both the opportunity and the products and services we offer.

We spoke extensively with academics, executives, consultants, field leaders and DSAs around the globe to get a holistic view of where the channel is now; where it should be going forward; and how it can best move on from some of its past struggles. It’s an in-depth look at the state of the channel that we here at DSN are very proud of.

We have two other timely features this month. We deep dive into the recent Chevron deference ruling and what it means for direct selling companies. We also offer a revealing look at service companies and how they continue to find success in a tough economic climate.

In other content, we highlight Color Street’s resurgence; share Bravenly Global’s startup success story; and get to know South Korea’s Atomy a little better.

As we go to press with this issue, we are hard at work finalizing the plans for our Fall DSU event happening at the end of this month. I always leave our DSU events enthused and informed—it’s an ideal way to reconnect with old friends, meet new peers and get a better understanding of the issues currently shaping the channel. I hope to see you all later this month in Irving, Texas.

At DSN, we strive to be your daily resource for global news impacting the direct selling channel. Make sure to sign up for our free resources like the weekly dashboard email which delivers a week’s worth of news in a quick 15-minute read each Sunday. You can also sign up for free text alerts by becoming a member of our VIP Community where you’ll always get the top stories first and fast!

All the best,

The Month in News Affecting

Channel

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HEADLINES > 5

n Fluid Acquires Direct Selling Mobile App Company NowTech

n How a Private Equity Buyout Backfired for Beautycounter

n Seint Shifts to Enhanced Affiliate Model

n Prüvit Reverts to 100% Founder Ownership

n Rodan + Fields Moves Away from Direct Selling Model

LifeVantage Reaffirms Commitment to Direct Selling Model

Farmasi Hosts Recognition Celebration in the UK

FARMASI HOSTED ITS INAUGURAL RECOGNITION CELEBRATION in the United Kingdom at the Vox Conference Center in Birmingham. The event featured training sessions, testimonials and product launches and celebrated the achievements of its influencers.

The company also announced its first European Convention, which will be held in Malaga early next year at the Jose Ma. Martin Carpena Sports Palace.

DSA Canada Conference Triumphs

THE DIRECT SELLERS ASSOCIATION OF CANADA recently hosted the DSA Canada Connect 2024 conference at the Queen’s Landing Hotel in Niagara-on-the-Lake, Ontario. The event drew industry leaders from Canada and the US, offering networking opportunities and a forum for executives to share insights as they seek to navigate the evolving direct selling landscape.

The conference also marked the conclusion of Colleen Leithman’s term as Board Chair. Marcia Cota, Senior Vice President, North America at MONAT, will now move into the role of Board Chair.

LIFEVANTAGE HOSTED ITS GLOBAL ACTIVATE 2024 EVENT, supported by distributor-hosted watch parties and gatherings. The virtual event was a platform for the company to reaffirm its commitment to the direct selling industry.

“LV360 enabled us to evolve into a company poised to meet the needs of individuals sharing their commitments to health and wellness through incredible activation products as well as entrepreneurs looking to build and grow successful businesses,” said Steve Fife, LifeVantage President and CEO. “And as rewarding as the past several years have been, the best is yet to come thanks to our thriving community. Activate 2024 celebrated LifeVantage, past, present and future.”

Oriflame Nigeria Annual Event Kicks Off New Campaign

ORIFLAME NIGERIA HOSTED its annual 2024 Director Seminar at the Eko Hotels and Suites, welcoming CEO and President Anna Malmhake for her inaugural visit to the country. The three-day event delivered performances, presentations, recognition ceremonies and elaborate dining experiences and invited award-winning fashion designer Veekee James to unveil the new Oriflame All or Nothing Amplified perfume.

@REZAKIO

Plexus Velocity Convention Raises $82,000 to Support Nevada Food Bank

PLEXUS WORLDWIDE HOSTED a fundraiser at its Plexus Velocity Convention in Las Vegas, a three-day event with a set philanthropic goal of $16,000. The virtual food drive supported Three Square Food Bank, a Feeding America partner food bank in Nevada. Donations at the event far exceeded the company’s initial goal, instead raising $82,106, the highest amount raised for a nonprofit at any Plexus event. This donation will provide the equivalent of 246,318 meals for those experiencing hunger in Southern Nevada. Plexus also donated $2 for every $1 donated.

“This amount was possible because of the amazing generosity of our Brand Ambassadors,” said Elizabeth Woods, Plexus Worldwide Director of Philanthropy. “We are overjoyed to be able to make a difference in the Las Vegas community in such an impactful way.”

Tranont Ignite 2024 Convention Welcomes 1,000 Associates

TRANONT IGNITE 2024 welcomed attendees for a four-day event at the Utah Valley Convention Center in Provo that offered personal development and business training that focused on the company’s three core pillars of health, wealth and community.

“The success of Ignite 2024 showcases the incredible impact of transforming health and wealth to create lasting change in the world,” said Russ Losee, Tranont Co-Founder and COO. “We are thrilled about our Daily Health System launch and the exciting new products coming this summer. This year’s convention highlights the dedication and passion of our associates in improving lives and making a difference in their communities. Together, we are well on our way to positively impacting one billion lives for good.”

Sunrider Grand Convention Focuses on Transformation

SUNRIDER HOSTED ITS 2024 GRAND CONVENTION at its world headquarters and nearby Redondo Beach. This year’s event embodied a “Transform” theme, providing educational sessions, interactive training, motivational speeches and the celebration of success stories to help attendees gain a “renewed vision and vigor” for the challenges and opportunities ahead.

Throughout the convention, attendees had the opportunity to engage in charitable activities assembling shelter and hygiene kits, creating cards for those in need and learning about how they can support Sunrider’s global charity partners like Engage Now Africa. DSN

INSIGHTS

For the full articles, visit directsellingnews.com/ insights

Direct Selling Brands Reaffirm Their Commitment to the MLM Model

This year, a number of leading direct selling companies have announced their departure from the network marketing model, including most recently Rodan + Fields and Seint. This has unsurprisingly led to significant and widespread backlash from distributors in the field who feel left behind by a culture and business they helped build.

Many direct selling companies who are committed to the multi-tier income structure of the network marketing model have released statements in response that reassure their field and affirm their commitment to the channel, including these Founders and CEOs:

ROLF SORG

PM-INTERNATIONAL, FOUNDER AND CEO

“AS A FAMILY BUSINESS in the premium segment, PM-International set out 30 years ago to become the leader in our niche. Direct sales is our past, present and future. We wholeheartedly believe in this business model.

To thrive in the market, two key elements are essential: maintaining innovation and continuously adapting to new circumstances. Recently, large online players have disrupted the business world. Nevertheless, with forward-thinking direct sales strategies that emphasize

hybridization and digitalization, I believe our industry is well-positioned for the future. Direct sales thrives on recognition and offers personalized experiences like no other.

However, success always happens outside the comfort zone, and we need to put in the work. I am convinced that, as an industry, we need to listen closely to our distribution partners, understand their needs and keep providing innovative solutions.”

JEFF OLSON

NEORA, FOUNDER AND CEO

“I WANT TO BE THE FIRST business owner to stand up and go on record that Neora will never leave the multi-level marketing model. We are here to stay and be a part of what I believe will be one of the most exciting, growth-filled chapters of this industry.

For more than 30 years, I have been devoted to building as a business owner and field leader in direct sales. I love the business model. I love the opportunity and the transformation that it can provide.

One can only speculate why companies are making these decisions. It is likely that their business model is broken, and they cannot find a way, or do not have the courage, to fix it.

Successful companies in direct selling have found a new way to operate that rewards customer getters, as well as the business builders—and in doing so have created a world-class customer experience.

What is clear is that some companies are dedicated to growing within the model and sharing with the distributors that helped them build the business, and others are focused on maximizing profits for their owners and investors, many of whom have no experience in the industry.”

AMBER OLSON ROURKE

NEORA, FOUNDER AND PRESIDENT

“I TRULY BELIEVE WE AS AN INDUSTRY are a people business first. So, for brands to have leaders be the ones to share their products, expand their brand, make it a household name, build and develop teams and then pivot to something that doesn’t include them breaks my heart in every single way.

Anyone who actually understands this industry with any depth, understands that moving to that [affiliate-only] model is not a long-term winning strategy.

We collectively don’t want people in this industry who are just trying to use it; we want people in this industry that are willing to transform it and be a part of this next chapter that will truly be bigger than any other chapter in this space.”

LANDEN FREDRICK

MANNATECH, PRESIDENT AND CEO

“WHILE WE CAREFULLY CREATED a separate affiliate company approach to expand our market reach, I want to assure you that Mannatech stands firm in our commitment and belief that the MLM model is and will remain the cornerstone of our success.

Mannatech is more than just a company; it is a legacy. My father J. Stanley Fredrick, a visionary in direct selling and Mannatech’s Chairman of the Board, invested in this company 23 years ago because he believed in the model’s power. He believed in protecting and nurturing it, and as a family, we are dedicated to preserving this model. We are committed to ensuring that this business, built on the principles of capitalism, the free enterprise system and personal empowerment, continues to flourish for generations to come.”

GAYA SAMARASINGHA

KALAIA, FOUNDER AND CEO

“WHAT’S THE ANSWER that many are afraid to say out loud? Every company that’s making these drastic pivots with no regard to their field leaders who have put decades of hard work into building a brand from [the] ground up are owned

by private equity or non-direct selling investors. For them, commissions are a glaring 40-50 percent expense on the financials, and [the] majority of that money is going to a small percentage of top leaders. So, for them it’s an obvious decision: cut down team commissions and reduce selling expenses to increase [the] bottom line.

They are banking on these changes increasing the activity levels of the majority of their database—social sellers. What they don’t understand is without the leaders you don’t have the same culture. You don’t have a way to create community. You don’t have that strong relationship with the field nor the customers to keep them engaged. They forget in our industry people join people, not the company. If you are a field leader who is impacted or panicking if your company will be next, my biggest advice is make sure you are partnered with a company that’s not backed by private equity and [is instead] owned by someone who is passionate about the channel. If they are channel first, they will at least respect and care about you enough to come to the table and find a solution together instead of pulling the rug [out from] under you.”

“AS WE NAVIGATE the ever-changing landscape of the business world, I understand that some of our fellow companies have had to make the difficult decision to change their business models. While we may not know all the reasons behind these changes, I want to extend my heartfelt understanding and support.

At Jordan Essentials, we remain committed to our multilevel marketing model, which has allowed us to build a strong, supportive community and create meaningful opportunities for so many. If you or anyone you know is affected by these changes and looking for a new home in the multi-level marketing world, we welcome you with open arms.”

DSN will continue to report on the influx of private equity funds into the channel and the challenges and opportunities it brings. DSN Founder and CEO Stuart Johnson said, “I founded Direct Selling News because I believe in the transformative power of the channel. Direct selling would not exist without the hard work of the field. These leaders have not only worked so hard to build their own financial success, they have fueled the success of the companies they represent. It is disappointing to see them abandoned in favor of a better bottom line. While private equity firms provide needed cash and resources to the channel, many don’t fully understand direct selling and why it works.”

FTC’s Non-Compete Rule Sees Legal Challenges

The Federal Trade Commission’s April vote to approve a final rule banning noncompete clauses received swift and significant pushback from corporations who deemed the agreements necessary to their operations.

In its Rule, the FTC described noncompetes as an “exploitative practice” that prevent workers from starting new businesses or switching jobs, effectively forcing them to stay with their current employer. It leaned heavily on language from the FTC Act, specifically citing “unfair method of competition” as the basis for the violation.

Those in opposition saw the new rule as a roadblock that would thwart their company’s ability to invest in top-tier management and innovation because of a need to limit access to sensitive and proprietary information. Lawsuits challenging the

rule with the hopes of blocking its enactment were filed immediately.

The courts have been mixed in their opinions, however. While Texas Judge Ada Brown issued a preliminary injunction that prevented enforcement of the FTC Rule, stating that the FTC does not have rulemaking authority, Pennsylvania Judge Kelley Brisbon Hodge specified that the FTC does have clear legal authority to prescribe rules as it decides necessary to prevent unfair methods of competition.

This judiciary split presents an uncertain future for the FTC’s noncompete ban. For now, these disparate rulings only apply to the parties within the individual cases, but the court is expected to issue a final order “on the merits” just before the Rule is expected to take effect. DSN

For the full articles, visit directsellingnews.com/ announcements

EXECUTIVE ANNOUNCEMENTS

DXN Holdings Bhd announced Prajith Pavithran has been named Chief Executive Officer. Pavithran joined the company in 2001 as a sales executive. Since then, he has held a number of roles within the company, including Country Manager of DXN Mexico and Chief Marketing Officer.

Pavithran succeeds Teoh Hang Ching, who will now transition into a role that focuses on leading the DXN Group’s pursuit of expansion in China.

Mannatech, Incorporated announced James Clavijo has been named Chief Financial Officer. Clavijo brings more than 25 years of experience in executive leadership, finance and accounting and has specific expertise within the medical technology, biotech and pharmaceutical categories.

“The company engaged in an extensive search for a qualified financial expert to oversee the company’s global finance organization as we strive to create shareholder value,” said Landen Fredrick, Mannatech President and CEO. “We are pleased to welcome James Clavijo to Mannatech.”

SARA DAVIES AVON UK, CHIEF INSPIRATION OFFICER

Avon UK announced entrepreneur Sara Davies has been named Chief Inspiration Officer. Davies is the founder of Crafter’s Companion Limited and the youngest female investor on Dragons’ Den, a British reality show similar to Shark Tank.

“I am thrilled to join Avon UK as its first Chief Inspiration Officer and to work with both budding and existing Avon reps who have the hunger to build and run their own business, on their own terms,” Davies said.

DR. PARAG SINGHAL HERBALIFE INDIA, GLOBAL NUTRITION ADVISORY BOARD

Herbalife India announced the appointment of Dr. Parag Singhal to its global Nutrition Advisory Board. Dr Singhal is a consultant physician and endocrinologist at the Nuffield Health Bristol Hospital in the UK, specializing in endocrinology and metabolic medicine, with special interest in diabetes.

In this new role on the advisory board, Dr. Singhal will provide diet and nutrition insights to the company’s sponsored athletes and teams and support Herbalife’s nutrition advisory, training and education.

DONALD CHERRY

EXP REALTY, VICE PRESIDENT OF SUSTAINABILITY

eXp Realty announced Donald Cherry has been named Vice President of Sustainability. In this role, Cherry will lead the development of a comprehensive sustainability program that enhances the company’s existing values, culture, philosophies and vision for the future.

Cherry brings almost two decades of experience as an executive leader specializing in corporate sustainability.

“We are excited to welcome Donald to our team,” said Renée Kaspar, eXp Realty Chief HR Officer. “His wealth of experience and dedication to sustainability will play a key role in advancing our initiatives. Donald’s proven track record speaks volumes, and we trust he will guide us in creating a more sustainable future for eXp Realty.”

Plexus Worldwide announced Ashley Hower has been named Chief Marketing Officer. Hower brings almost twenty years of experience in global marketing and brand management and has held a number of leadership roles at global companies.

“Ashley’s exceptional leadership skills, combined with her passion for Brand Ambassador success and the customer experience, make her an invaluable addition to our executive team,” said Gene Tipps, Plexus Worldwide CEO. “We are confident that her strategic marketing vision and proven track record of success will propel Plexus to new heights.”

TROY PALMQUIST

EXP REALTY, VICE PRESIDENT OF GROWTH & PRODUCT MARKETING

eXp Realty announced the promotion of Troy Palmquist to Vice President of Growth and Product Marketing. Palmquist joined eXp Realty in 2023 as Director of Growth, California and has an extensive background in real estate marketing and brokerage development.

“Troy’s leadership and deep understanding of the real estate industry will be invaluable as we continue to scale our marketing strategy and support our agents,” said Wendy Forsythe, eXp Realty Chief Marketing Officer. “His passion for the industry and agent success aligns perfectly with our mission and values.”

Asma Ishaq has been named Chief Executive Officer of Amare Global. Ishaq brings extensive leadership experience within the direct selling industry, including more than six years in the chief executive role at another large direct selling company, as well as expertise within the nutritional supplement category.

“Joining forces with David Chung and the talented team, I know we’re poised to redefine the mental wellness category with innovative solutions that resonate deeply with today’s needs,” Ishaq wrote in a statement. “I’ve never been more passionate and determined to execute a company’s vision. I’m eager to lead with a servant’s heart and a vision that values genuine care and community. Together, we will elevate the mental wellness landscape making it accessible and meaningful for all.” 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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INDUSTRY DISRUPTOR, KEYNOTE SPEAKER, BEST-SELLING AUTHOR AND MEDIA PERSONALITY

- President of Family First Life - over 37,000 independent agents

- $800M annual revenue

- Author of Punch Me In The Face and regular contributor on FOX NEWS

- Keynote speaker represented by WWSG (Top 5 Speaker Agency)

- Co-Host of the FULLY LOADED PODCAST with NFL Hall of Famer Cris Carter

687K + FOLLOWERS ACROSS ALL SOCIAL MEDIA PLATFORMS

AS SEEN ON

@shawnmeaikeofficial

@shawnmeaike

Shawnmeaike6

SPEECH TOP I CS

Unlocking the Power of Leadership: Inspiring Teams to Achieve Greatness

The Power of Culture: Creating an Environment for Success

Building a High-Performance Sales Organization: Strategies for Success

“Shawn isn’t afraid to tell it to you straight, which is not only refreshing in the way the world is now, but it’s the kind of stuff you need to hear to dominate in business and in life.”

Robert R.

Travels from: Florida

Fee range: $25,000 - $35,000

Shawn Meaike is the founder and president of Family First Life. In late 2013, Shawn launched Family First Life, currently a $500+ milliondollar independent marketing organization. As Shawn describes it, he is “building a company that truly puts both the families of our clients and the families of our agents first.” Family First Life is now represented by over 37,000 licensed agents in almost all 50 states marketing mortgage protection, final expense, life insurance, and annuities. Family First Life generated over $10 million in paid premiums during the first year of business and in 2023, the company is projected to reach over $800 million dollars in issued paid premiums. Prior to launching Family First Life, Shawn worked as an independent insurance agent, selling final expense and mortgage protection life insurance at a high level. Shawn earned an Undergraduate Degree in Applied Social Relationships and a Master’s Degree in Criminal Justice Psychology, which led to a 13-year career in the State Department of Children and Families.

Shawn has successfully undertaken a diverse range of projects, encompassing residential, commercial, and land development. Through strategic planning and astute decision-making, he has meticulously built an extensive real estate portfolio over the span of 15 years. Beyond his professional achievements, Shawn finds fulfillment in family life and currently resides in Boca Raton, Florida.

Mastering Cross-Selling & Upselling

CUSTOMERS TODAY ARE FLOODED WITH marketing messages and sales offers, so evolving your strategies is crucial to capturing and creating loyal customers. Two potent strategies that have stood the test of time and evolved with technology are cross-selling and upselling. These techniques boost revenue and enhance customer satisfaction, helping increase retention.

Research firm McKinsey reports that cross-selling can increase profits by 30 percent. HubSpot research with more than 1,400 sales professionals found that cross-selling accounts for 21 percent of their organizations’ revenues.

+

RESEARCH

SHOWS that cross‑selling can increase profits by 30% and accounts for 21% of organizations’ revenues.

Cross-selling involves recommending complementary products or services to customers based on their current purchases. For example, suggesting a vitamin D supplement when a customer buys calcium tablets is a classic case of cross-selling. Ensure that your add-ons are relevant to the customer’s needs and goals, or it could backfire and result in frustration.

Upselling encourages customers to purchase a higher-end product, an upgrade or an additional feature, aiming to increase the overall value of the transaction. Persuading a customer to opt for a premium multivitamin that includes additional nutrients and probiotics instead of the standard version they initially considered is an effective upselling strategy.

Current Trends in Cross-Selling and Upselling

PERSONALI ZED R ECOMMENDATIONS

Advancements in artificial intelligence and machine learning now enable businesses to offer highly personalized recommendations based on a customer’s browsing history, past purchases and behavior. This trend makes cross-selling and upselling more effective as customers are more likely to respond positively to suggestions that feel tailor-made for them.

DATA-DRIV EN INSIGHTS

Leveraging big data analytics allows companies to gain deeper insights into customer preferences and buying patterns. This information is crucial for identifying the best opportunities for cross-selling and upselling. By analyzing sales figures, purchasing histories and customer feedback, businesses can refine their strategies to better meet customer needs.

ENGAGING

6 6C ROSS-SELLING TECHNIQUES +

1 / Track customer purchasing behavior

Analyzing buying patterns across multiple channels and devices helps identify products often bought together and the optimal times for offering recommendations during the customer journey.

2 / Divide existing customers into segments and map out relevant product recommendations

Customer segmentation enables you to identify groups with similar buying patterns so that you can suggest complementary items.

3 / Use auto-triggered messages to pitch at the perfect time

Automated follow-up messages gently nudge customers to engage further. The best time to suggest complementary products is after they ’ve shown purchase intent, like adding items to their cart.

4 / Limit the number of messages and products you pitch

Overwhelming customers with too many suggestions can deter them from buying. Limit cross-sell recommendations to three or four personalized items, shared on product pages, cart drawers, checkout or post-purchase emails.

5 / Demonstrate a use case for the product you’re pitching in tandem with the original purchase

Even with targeted recommendations, customers may need convincing. Use cases and demos, such as videos showing how related products work together and effectively illustrate the value of additional purchases.

6 / Make the offers available for a limited time

Limited-time offers create urgency, encouraging more purchases. For example, a discount on a hydration drink mix when a pre-workout supplement is added to the cart. Techniques include countdowns, daily deals, “last chance” and clearance promotions. (SOURCE: SEGMENT.COM)

CUSTOMERS with relevant suggestions enhances their lifetime value, making marketing more cost effective.

ENHANCED CUSTOMER EXPERIENCE

Improving the overall customer experience has become a significant trend. Businesses are training their sales teams to understand and address customer needs more effectively, making upselling and cross-selling efforts feel like a natural extension of the service rather than a sales push.

INTEGRATION WITH CRM SYSTEMS

Modern customer relationship management systems now come equipped with tools that facilitate crossselling and upselling. These systems help track customer interactions, purchase history and preferences, enabling sales teams to make informed recommendations during customer interactions. This also helps build specific customer profiles so messages can be specific to an individual customer’s needs and goals.

Cross-selling and upselling increase revenue by providing valuable product recommendations, strengthening customer relationships and trust. Engaging customers with relevant suggestions enhances their lifetime value, making marketing more cost-effective. Offering complementary products improves customer satisfaction and experience. DSN

Need a Rebrand?

How to know if your corporate image needs a reboot

74% of S&P 100 companies rebrand within their first seven years of operation.

DOES YOUR COMPANY NEED A COMPLETE REBRAND? How do you know? According to Landor, 74 percent of S &P 100 companies rebrand within their first seven years of operation. Completely rebranding your company is a massive undertaking. It demands a thorough understanding of your core values; a strategic vision for your future; and a meticulous execution plan to ensure that the new brand identity resonates with existing customers while attracting new ones. Here are a few key reasons to consider a rebrand, reboot or revision.

An outdated brand image is a significant driver for rebranding. Consumer preferences and market trends evolve rapidly, so staying current is essential. If your branding no longer reflects your company’s values, positioning or customer interests, updating the brand can attract new customers and maintain competitive relevance. Testing can reveal how a brand stands against competitors, and unfavorable results might indicate the need for a rebrand to revitalize the company’s image.

A fresh brand identity can facilitate renewed vision and commitment to updated core values.

Mergers and acquisitions often necessitate a rebrand to unify the identities of the merged entities. A cohesive brand image can help communicate the new company’s vision and values to customers, ensuring a smooth transition and integration of the merged businesses. As a company evolves, its vision and goals may shift. If the existing branding no longer aligns with the new direction, a rebrand can effectively communicate this change to customers and partners. This strategic shift can help attract new customers and keep the brand relevant in a dynamic market.

Rebranding can be an effective strategy to overcome a brand crisis. By distancing the brand from negative associations and communicating new values, a company can rebuild trust and improve its market position. A fresh brand identity can facilitate renewed vision and commitment to updated core values. It’s also a great time to communicate specific areas of enhancement to customers.

INTERESTING BRANDING STATS for 2024 77

OF CONSUMERS PREFER SHOPPING WITH BRANDS THEY FOLLOW ON SOCIAL MEDIA (SPROUTSOCIAL)

OF CONSUMERS SAY THAT A BRAND’S CEO AND EMPLOYEES INFLUENCE THEIR DECISION TO BUY (ACCENTURE)

INCREASE IN BRAND RECOGNITION IS ACHIEVED BY USE OF COLOR (LOYOLA)

Rebranding is a strategic move that can address various business needs, from updating an outdated image to adapting to new markets and technologies.

INCREASE IN RETENTION CAN BE ACHIEVED BY STRONG EMPLOYER BRANDING (LINKEDIN)

OF FORTUNE 500 COMPANIES USE THE COLOR BLUE IN THEIR LOGO (WEBSITE PLANET) OF COMPANIES DON’T HAVE BRAND GUIDELINES (LUCIDPRESS)

Entering new markets often requires a brand to adapt to cultural differences and preferences. A rebrand can help a company align its values and vision with the new market, enhancing brand recognition and appeal. By updating the existing brand to accommodate new product lines or target markets, a company can ensure a cohesive and appealing brand image. Rebranding can also help a company reach new customer segments. A fresh look and updated messaging can expand the brand’s appeal while maintaining recognition among existing customers.

Embracing new technologies is crucial for staying relevant. A rebrand can help integrate the latest technological advancements into the company’s image and operations, ensuring it meets contemporary market needs. Customer feedback and research can highlight the need for a rebrand. Utilizing this data, companies can develop robust strategies that address customer preferences and market demands.

As sustainability becomes more important to consumers, rebranding to reflect a company’s commitment to sustainable practices can enhance its appeal and build trust with eco‑conscious customers.

Rebranding is a strategic move that can address various business needs, from updating an outdated image to adapting to new markets and technologies. By carefully considering these factors, companies can successfully navigate the rebranding process and achieve sustained growth and relevance. DSN

WHILE MOST of the direct selling channel

battled decline, a majority of the industry's service companies enjoyed a pattern of steady, stable growth.

DSN takes a deep dive into what's behind this sector's success story.

YOUR AT SERVICE

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Representatives don’t have to explain to customers why they would benefit from purchasing a service . “

UTILITY WAREHOUSE: AN INTERNATIONAL

CASE STUDY IN SERVICE SUCCESS

SERVICES COMPANIES outside of the US are experiencing similar positive growth trajectories. Utility Warehouse (UW) in the United Kingdom surpassed the one million customer milestone in the fourth quarter of 2023. The parent company of UW is Telecom Plus, publicly traded on the London Stock Exchange as TEPL.

For the year ending March 31, 2024, the company reported revenue of $2.6 billion USD (fiscal 2024) with a record profit of $451 million, a 16 percent increase over the previous year.

In a silo, these are massive revenue numbers, especially when considering that UW only operates within one country and is just over 20 years old. When considered within its own market context, UW’s reach and revenue become even more striking: UW sales are larger than all the UK direct selling product companies’ sales combined.

OVER THE LAST FIVE YEARS, the direct selling industry has experienced some startling revelations. Chief among them was how quickly the world would adapt to a virtual lifestyle. Party plans and in-person product demonstrations became relics. Online shopping—already extremely common—became native for consumers living in a socially distanced world where making purchasing decisions from the comfort of their home followed by two-day shipping became an engrained habit. As the postpandemic upheaval continued and then subsided, a new economic normal began to set in for the direct selling industry.

Despite these obstacles, the direct selling industry remains a powerful revenue engine. In 2023, the Direct Selling Association (DSA) reported that the direct selling channel represented $40.5 billion in 2022 US sales. Direct Selling News (DSN) believes this number is significantly lower than reality, given that three-quarters of services companies are not reflected in these figures. Even so, as analysts viewed the DSA revenue numbers, some believed they were a sign that— while challenges persisted—market demand was generally intact.

A deeper analysis of this data, however, illustrates that not all categories within the direct selling space were equally successful. Almost all product verticals, including personal care, clothing and accessories, home durables and health and wellness, experienced a decrease in sales—some by as much as 17 percent.

In stark contrast to that decline, however, was the ten percent increase the service sector enjoyed during that same time frame.

It’s also important to note that the increase was felt across the board, both by companies offering must-have services everyone needs like energy and cell phone as well as companies offering services that are highly desired but less essential to daily life including insurance and financial planning.

In this time of upheaval and uncertainty in the industry, it’s important to take a deeper dive into services to determine what the catalyst behind this purchasing pattern could be. And to perhaps also determine if service offerings could be the stopgap that helps companies stay ahead of a possible continued decline in direct selling.

The Many Branches of Service

Services is a huge growth sector, but it’s not a monolithic one. In the simplest terms, service companies typically fall within one of four categories: direct selling utilizing licensed agents, traditional network marketing, enhanced affiliate models and door-to-door sales. Throughout this article, we will examine each in greater detail (see sidebar for door-to-door sales coverage).

THREE KEY TAKEAWAYS

1 / THERE ARE FOUR DISTINCT CATEGORIES OF SERVICE-BASED COMPANIES

Direct selling with licensed agents, traditional network marketing, enhanced affiliate companies and door-to-door sales all fit under this umbrella.

2 / SERVICES COMPANIES GENERALLY HAVE BETTER RETENTION

Essential services like power are expected costs of living. Customers understand they are needs, not wants. Distributor retention is also higher in service-based companies.

3 / A COMBINATION OF SERVICE AND PRODUCT OFFERINGS IS GROWING

In the past, direct selling companies tended to be either service- or product-based. An interesting trend is a hybrid of complimentary products and services working in tandem.

1 / DIRECT SELLING UTILIZING LICENSED AGENTS

This category encompasses two distinct subcategories: real estate agents and financial services. While a significant portion of representatives within this grouping derives their income from direct sales, they also have the opportunity and option to build teams, recruit and receive residual income for doing so.

Approximately 90 percent of the revenue in the service sector comes from these two categories‚ an astonishing number representing billions in annual revenue

Real Estate Agents / While real estate has been sold for centuries, profit sharing on a tiered basis is a relatively new development for the industry. It was a concept first pioneered by Keller Williams. That company implemented a profit-sharing model to support agents and paid on a tiered scale.

eXp World Holdings, helmed by Founder, Chairman and CEO Glenn Sanford, further improved and refined the concept which led to massive growth and the introduction of more companies launching with similar models. eXp debuted an entirely virtual environment with no brick-and-mortar locations, something unheard of in real estate. They also paid tiered revenue commissions, rather than a profit share—both of these factors were huge innovations and key differentiators from Keller Williams.

Since then, strong competition has mounted in the form of REAL Brokerage—which saw 2023 revenue of $750 million and is on track to crack the billion- dollar mark this year. REAL offers similar benefits plus passive revenue share income, profit sharing, equity stakes and rewards.

Other power players include LPT Realty and Epique Realty, both startup real estate service companies that currently represent hundreds of millions in annual revenue. LPT Realty wields a hybrid model that allows agents to select their own compensation plans and provides the marketing support of a large organization while still allowing agents to customize their own business. Epique charges no franchise, desk or annual fees as well as offers the opportunity to join teams.

Although some real estate companies seem reluctant to take their seat at the direct selling table, the model squarely fits under the channel’s widening umbrella. More importantly, the market share of these models continues to expand—real estate companies with tiered compensation models represent approximately $15 billion in annual revenue.

Financial Services Agents / This category had its origins in the founding of A.L. Williams & Associates in 1977. That company ultimately became known as Primerica beginning in 1991. Primerica currently sits at number nine on the DSN Global 100 list with 2023 revenue of $2.8 billion dollars. A public company trading on the New York Stock Exchange as PRI, Primerica is a financial services company offering term life insurance, investment advice, mortgage, auto and home insurance.

Another huge company in this sector is World Financial Group with an estimated 2023 revenue of $1.3 billion. Founded in 2001 and owned by Transamerica, World Financial Group provides financial services via life insurance, retirement and wealth-building strategies.

There are several other equally impressive companies in this category. Interestingly, five of them are owned by the same parent company, Integrity Marketing Group. Family First Life ($503 M)

works with independent contractor insurance agents to serve its customers. The other four companies owned by Intergrity Marketing Group are PHP Agency ($300 M est.), North American Senior Benefits, The Alliance and Equis Financial. Together, these five represent well over a billion dollars in annual revenue.

Premier Financial is a highly successful independent company in this space. Premier provides back-office support and mentorship for their associates, many of whom aspire to be entrepreneurs but are looking for mentorship and a predictable system to support them as they build.

Each of these companies generates hundreds of millions of dollars in annual revenue.

2 / TRADITIONAL NETWORK MARKETING

Much like companies that focus on offering a physical product, traditional direct selling service companies offer vital daily services. The differentiator, of course, is that representatives don’t have to explain to customers why they would benefit from purchasing a service.

Whereas buyers need to be educated and persuaded on the advantages and necessity of tangible goods like nutritional supplements, personal care items and housewares, virtually everyone already relies on services like power and cellular—they know these services are a necessity and are looking for an experienced, helpful representative who can guide them through the

decision-making process as they find the right price and package for their individual needs.

Service companies in this category don’t require licensing. They include travel companies like inGroup; energy companies such as ACN, Ambit and Think Energy; and companies like PPLSI, whose brands include LegalShield and IdentityShield, providing prepaid legal and identity protection services respectively.

This category represents approximately ten percent of service sector revenue.

3 / ENHANCED AFFILIATE PROGRAMS

Affiliate links and referrals allow representatives from companies to function as influencers who make money by selling a product to someone else or bringing consumers to their platform. The key difference within this category is that sellers within the enhanced affiliate model can earn on more than one level, while referral affiliates simply earn commissions on individual sales. There are already plenty of companies leveraging this type of enhanced affiliate model, like Grammarly, ClickFunnels and Fiverr, but multi-tiered plans are typically a very small percentage of their overall business.

4 / OPPORTUNITY IS KNOCKING— DOOR-TO-DOOR SALES ARE SOARING

THE DAYS WHEN DOOR-TO-DOOR SALES

were seen as lesser are diminishing.

This section of the industry now represents a $10 billion slice of direct selling revenue. Like traditional network marketing, these services are often ones that customers are already primed to want. Solar energy, smart home technology, home security and pest control are often organic home maintenance purchases that customers gravitate towards but are interested in outsourcing to a trusted vendor. This has become a massive and lucrative market niche.

A testament to the health of this category is D2DCON, an annual convention for the door-to-door industry, which attracts thousands of attendees (both leaders and sales force) who come for training on topics like negotiation, recruitment, retention and operational scaling. This is a segment that everyone should be aware of—look for a more comprehensive article on this growth category soon!

SOLAR ENERGY, smart home technology, home security and pest control are often organic home maintenance purchases that customers gravitate towards.

An example of a successful multi-tiered enhanced affiliate model is FASTer Way to Fat Loss, launched in 2016 by Founder and CEO Amanda Tress. FASTer Way stands out in the crowded health and wellness space. While the company offers a handful of protein powders, supplements and fitness gear, its monthly fitness membership plan is the primary focus, offered directly to consumers online and through its field team. There are multiple ways to earn income and build a business, through Ambassador and Coach Certification programs—each providing a unique entry point and entrepreneurial path.

Shrinking the Competition

Each company and category has its share of competition, and the services sector is no different. Energy, which includes solar, gas and electric, is one of the most competitive categories within the market. The real estate business, with its inherent ups and downs, continues to be extremely competitive.

This dynamic environment of competition is derived internally more than externally, however. Real estate franchises compete directly with each other, as do utility companies and energy distribution networks. Where this differs from companies selling tangible products is the absence of Amazon, Walmart, eBay and other big box sellers.

For companies selling skincare products, for example, they not only have to compete with their peers, but they must also contend with unauthorized sellers on Amazon; copycat companies who undercut their sales with lower quality products; and retailers outside of the direct selling industry who are utilizing the same ingredients.

Companies who are focused on selling tangible products are also faced with “brand hopping” by independent distributors. This occurs when a seller

A

majority of services companies reported steady growth since 2019 . “

isn’t experiencing success quickly or consistently enough or is recruited by a company with a similar product offering. Distributors who are extremely loyal to the product will stay, but for some of the sales force, the opportunity to increase their paycheck is enough enticement to leave.

What’s more, many experienced distributors have learned how to harness the tailwinds of companies that are in the earlier phase of their lifecycle. Jumping into a company just after it exits its “startup” phase but before it loses its new-on-the-market appeal, offers distributors momentum.

This kind of brand hopping is less common within services companies because switching from one organization to the next creates more friction. The bottom line is that it’s easier to jump between skincare companies than it is to leave one real estate or financial services company for another.

This consistency also extends to customers, who tend to remain loyal longer to services. Signing up for an energy plan or buying insurance requires monthly payments, but those costs are as much a part of life as filling up with gas or paying the mortgage—there’s nothing discretionary about the electric bill and insurance premiums. And once they’ve signed up, they don’t think of leaving or switching unless they have an unsatisfactory experience. For distributors, this means the likelihood of more stable income and less incentive to leave.

Blurring the Lines Between Products and Services

At a glance, it can seem that direct selling companies have been restricted to one path: products or services. Today, those two unique paths have begun to merge in response to the momentum and growth opportunities within the services category.

As inflation, skyrocketing supply chain costs and an uncertain economy weigh heavily on the shoulders of executives, many companies are considering how they can restructure their fixed costs while boosting revenue. For some, the answer has been attempting to strategically combine product portfolios and services.

One company with a successful approach is BODi (formerly known as Beachbody). Roughly half the company’s revenue comes from consumable products, the other half from digital fitness classes. Historically, BODi has done well adjusting to market shifts and consumer preferences. They started out selling fitness DVDs then made the timely pivot to streaming services—a prime example of evolving a physical product into a digital one.

There are innovative ways for existing product companies to apply this strategy. Beauty and skincare companies might entertain the idea of marketing a digital makeup tutorial program or monthly digital selfcare subscription content as part of a holistic approach to beauty as just one example.

Should You Add Services to Your Company Lineup?

Consumer purchasing habits have shifted seismically. As a result, companies in almost every industry are experiencing upheaval to their strategies and expectations. Within the direct selling industry, this shift has created painful, downward trends for a large selection of companies. The majority of the companies that DSN spoke to within the product category reported little or no growth since 2019. For services companies, the report was quite the opposite: A majority of services companies reported steady growth since 2019.

Services are not the right fit for every brand or company culture. They are also not a cure-all for the industry’s sluggish growth or a Band-Aid that can rescue direct selling from heightened regulatory pressures or an overtly negative public bias. Considering this data, however, it seems logical that the prospect of including services as a part of a product offering could—at the very least—be worthy of a conversation. DSN

DEFINING DIRECT SELLING

THE DEBATE about what direct selling is and isn’t continues to evolve. As a channel, we have an immediate opportunity to redefine the business model and control the narrative. But do we know what we want to say?

Direct selling has

an identity crisis. And much of it is of our

own making.

SINCE MANY SEGMENTS OF THE INDUSTRY STARTED EXPERIENCING DECLINE IN 2015 (a notable exception being services), we have made attempts to reinvent and redefine the channel without actually moving the needle very much.

When the challenges are so evident and the timing so important, why have we not done a better job of righting the ship and creating a more positive, relevant reputation for an industry that has done so much for so many?

Direct selling companies are slow to change. It’s a part of the culture. The industry is steeped in positivity and optimism, and that makes recognizing and reacting to potential roadblocks challenging. “We are inherently positive in our DNA,” explained John T. Fleming, DSN Legend, DSA Hall of Fame, Researcher and Author. “We often view change as disruptive even though change, innovation and transformation can all be very positive.”

A hesitant mindset can create crippling myopia, keeping the industry mired in the past. History is littered with companies who didn’t innovate when the market demanded it. Once mighty, monolithic brands like Kodak and Blockbuster were left behind when they failed to pivot at critical moments.

?THREE KEY TAKEAWAYS

1 / IDENTITY AND PERCEPTION CHALLENGES PLAGUE THE CHANNEL

The channel’s reputation suffers from previous bad acts and a fragmented sense of what direct selling is and isn’t. These issues stymy growth opportunities.

2 / CHANGING THE NARRATIVE COULD CHANGE THE GAME

By telling the right stories, the right way, with the right language and messaging presents a distinct opportunity to give the industry a much needed reset and a strong narrative for the future.

3 / THE TIME IS NOW

The one common denominator all experts agree on is the need for drastic change. Direct selling, as an industry, is slow to embrace change. This is a pivotal moment when decisive action is needed.

O.C. Ferrell, James T. Pursell Sr. Eminent Scholar in Ethics, Auburn University, explained, “All retailers must continually innovate. As time moves on, what worked 20 years ago at Wal-Mart doesn’t necessarily work today. The same holds true for direct selling. The channel can’t expect to maintain the status quo and succeed. Direct selling companies must adapt and adopt to new technologies and recognize and accommodate the continual changes in consumer behaviors.”

Greg Marshall, PhD, Professor of Marketing and Strategy, Rollins College sees the potential for stagnation within the direct selling model to be a real barrier to future growth. “For one thing, this channel has to stop holding on so much to the past,” Professor Marshall says. “Going forward direct selling must figure out how does the market want to be served, and specifically what does the current and future consumer expect from a relationship with the direct selling channel. There’s an entire

The opportunities are out there. The pieces of the puzzle exist. The timing is perfect. But questions remain. “

new generation of people who need and want what the channel can offer—but at this juncture the opportunity remains greatly untapped. Some leading-edge direct selling firms are in various stages of discovery on how this new generation wants to be served; others have done little. I don’t know what those firms are waiting for, but they need to stop waiting and start changing their go-tomarket strategies sooner rather than later.”

Direct selling also has a lingering perception problem. While we provide exceptional products and services and a viable supplemental income opportunity that should appeal to the rising tide of gig workers, we are somehow still considered separate, outdated, predatory or even unethical in some quarters.

It’s an image that—despite the best efforts of direct selling companies, global DSAs, academics, public relations firms and participants in the channel—persists, even though the most egregious examples that define us that way are 30 to 40 years in the past.

As Gordon Hester, Chief Sales Officer, the Americas, PM-International, explained, “Direct sellers are extremely talented at marketing hope. Often that leads to ‘over promising and under delivering.’ Hope requires confirmation. If you fail to turn hope into results, you lose trust. That is the core issue driving misperceptions about our channel and opportunity. We are in a relationship business. Trust is an important element of earning longlasting relationships.”

The problem, according to Peter Maddox, President of DSA Canada is twofold. “On one end, there is a narrative that it is easy to make significant money, when we all know that it takes effort, skill, time and focus. The opposite perception is that nobody makes any money, which is also wrong but a favorite critique of those who are vocally antidirect selling. The industry needs to find a way to clearly communicate the reality, which, of course, falls between these two extremes. The responsibility for that falls on individual salespeople who must paint a realistic picture when recruiting. And also on companies that have the data to communicate earnings details that are both representative and encouraging.”

The opportunities are out there. The pieces of the puzzle exist. The timing is perfect. But questions remain. What falls under the umbrella of direct selling? Where do affiliate programs fit in? How do we broaden our appeal and redirect the narrative?

In many ways, this article is about these overarching questions—not about the answers. Those are for the collective industry to determine together as we move forward. But one question we are determined to address immediately is how do we best shape and sharpen our narrative focus.

The Stories We Tell

If there is one topic where everyone aligns, it’s the remarkable stories that the channel can (and should) share with the world. But compelling messaging often alludes us.

The problem started decades ago, in the ‘80s and ‘90s, when pyramids flourished, and bad actors thrived. The condemnation was swift, public and—unfortunately—lasting. Direct selling was derided as being cultish with distributors being seduced by unrealistic income claims.

The industry developed a predatory reputation and, in some cases, deservedly so. The “bikiniand-Lamborghini” narrative was off-putting to prospects and a red flag drawing the unwanted attention of the Federal Trade Commission (FTC) and Truth in Advertising (TinA). Products often seemed secondary and inconsequential. It was all about volume, downlines, residual income and mailbox money, even though that wasn’t an outcome most distributors could or would attain.

From 2000-2010, we course corrected to more appropriate income and opportunity claims. We positioned ourselves as a supplemental way to earn extra money sharing quality products that people really wanted. Our opportunity offered what people craved: freedom, flexibility and community.

FIELD NOTES

NO EXAMINATION OF DIRECT SELLING would be complete without insights from the distributor base who does the hard work each and every day. We reached out to leaders from Color Street, LifeWave, Modere and pawTree to get their perspective on today’s volatile direct selling landscape.

1 /

HOW CAN corporate best serve both leadership and new team members when it comes to training and education?

WE ARE IN THE DIGITAL ERA it’s critical companies keep up with the demands of younger generations. Having access to simple, userfriendly, attention-grabbing trainings at the click of a button is key. Put these trainings into a learn-to-earn video game experience for new teammates, and I bet the investment would more than pay off.

—TAMARA SWEASY / Color Street

I LOVE THE LAW OF NAVIGATION

in John Maxwell's book The 21 Irrefutable Laws of Leadership. “A leader is one who sees more than others see, who sees farther than others see, and who sees before others do.” Being ahead of the times and leading through change will empower both new team members and the leadership team as well.

—TRISHA DEMING / pawTree

2 /

WHAT DO YOU believe are the top three things new distributors are looking for in a direct selling opportunity?

ONE OF THE KEY THINGS people are looking to gain is financial freedom from the supplemental income they can create in this industry. Additionally they’re looking to connect with a community of likeminded people and increase the quality of relationships within their lives. And lastly they’re looking for an opportunity to completely change their lives.

—ONYX CO A LE / LifeWave

STABILITY AND SIMPLICITY when it comes to compensation, valuesbased leadership, inclusive culture, preservation of the team-building model, relevant systems/practices for promoting and recruiting, dynamic customer marketing/ retention strategies as well as enhanced customer experiences.

—ANDREA GEBHARDT / Modere

3 / WHY DID YOU choose direct selling over other gig opportunities? “

I LOVED THE SCALABILITY of a direct sales business. In my previous career I couldn't find a way to scale it without adding a tremendous amount of hours to my existing workload. I love the ability in this business to learn, grow and scale in a step-by-step process.

—TRI SHA DEMI NG / pawTree

THERE IS NO DENYING THE FLEXIBILITY of direct sales is fantastic. But the real kicker for me is the fact that I don't have to think twice about what product to market next. I don't have to create beautiful assets or time - consuming videos. My company does that for me along with multiple other tasks.

—TAMARA SWEASY / Color Street

4 /

WHAT TWO OR THREE things would you tell corporate they could do to make your job easier? “

INCORPORATE MORE MARKETING and social media marketing based on trending mediums and proven strategies. Stay ahead of the curve in product offerings and adjust compensation to keep it competitive, fair and novel. Lastly, I would suggest that corporate continually ask for feedback and insights from its most valued asset—its people.

LISTEN TO THE FIELD, listen to the field, listen to the field. Sales drives this business, not fancy websites or great marketing material or highly paid executives. It’s sales—and that’s your field.

ONYX CO A LE / LifeWave

THE INDUSTRY should highlight success stories, ethical business practices and the quality of the products being sold.

Many companies that were true innovators, with groundbreaking products, chose direct selling as a great way to share their products and offer supplemental income. The channel seemed perfectly positioned to capitalize on the growing side hustle/gig economy movement that has emerged in the last 10 years.

Then those projected gains didn’t happen. There isn’t just one reason for that failure. Overly complicated compensation packages, a lag in technological advancement, antiquated payment and product delivery philosophies, the pandemic and a demotivated and demoralized distributor base are just some of the usual suspects.

But one of the more interesting and overlooked contributing factors is the tone of the messaging we use to tell our stories. The pendulum has swung so far in the other direction that some companies seem to downplay direct selling’s most attractive differentiators, rebranding their opportunity to move away from detractors rather than being proud of offering quality products and services and a solid supplemental source of income.

It’s an attitude Linda Ferrell, PhD., Globe Life Professor, Auburn University, finds perplexing. “Direct selling has done a lot of proactive things to self-regulate and move away from outdated methodologies. They should be more positive and prouder of where they are going.”

So, what are the great stories the channel could share to redefine and redirect the narrative of the channel?

According to Susannah Schofield, OBE, Director General, DSA UK, the industry should highlight success stories, ethical business practices and the quality of the products being sold.

THE POWER OF POSITIVE THINKING

EVEN IN TIMES OF UPHEAVAL, the most knowledgeable minds in direct selling remain positive. We asked several of them if they are ultimately hopeful about the future of the channel. Here’s what they had to say.

THE PEOPLE IN DIRECT SELLING I’ve had the pleasure of interacting with are some of the brightest, nicest, most diverse people I know. They are in the business for the right reasons. My optimism lies with the people I know working the business.

— LINDA FERRELL, PHD. / Globe Life Professor, Auburn University

YES, I AM HOPEFUL OVERALL, but the challenges right now seem daunting. Overall, a bolder spirit is necessary from the collective.

—BRETT DUNCAN / Co-Founder & Managing Partner, Strategic Choice Partners

YES—BUT WE NEED TO RECOGNIZE that shifts are happening, and adaption is needed. I don’t think that means fully abandoning the model, but reframing what it means. Companies that do that will be successful.

—BRIAN BENNETT / Senior Vice President, Government Affairs & Policy, DSA

ABSOLUTELY I AM OPTIMISTIC. The reasons are simple: the values that underpin our industry and the people who power it. The belief in entrepreneurship as an engine of individual and national success has remained as powerful today as it ever was.

—CINDY DROOG / Vice President of Reputation & Integrated Communications, Amway

In the past when we had the supplemental income market cornered, people were willing to tolerate the complicated and confusing aspects of how we did business. Now they don’t have to .
BRETT DUNCAN / Co -Founder & Managing Partner, Strategic Choice Partners

THE VALUE in direct selling—and perhaps the most compelling messaging—comes when success is both aspirational and attainable and not solely focused on monetary rewards.

The Language We Speak

Something that goes hand-in-hand with storytelling is language—and it’s another acute pain point for the industry. The language and terms so recognizable to us can feel very insular and confusing to people outside the channel.

That complexity feeds into the skepticism that plagues direct selling and fuels the conventional wisdom that we are disreputable. This is perhaps best illustrated in how we compensate our sales force. The murkiness of the language makes us appear less accessible. For an industry that is supposed to be for everyone, sometimes the language we use doesn’t seem to resonate.

Another key point is that those success stories should be told organically and authentically by the field. As Amway’s Vice President of Reputation and Integrated Communications, Cindy Droog explained, “It is one thing to hear from a corporate executive about our industry’s relevance and value. It is quite another to hear directly the stories of everyday people—and not always those who are the most successful—who have benefited from direct selling.”

Direct selling has come a long way, but the journey is not over. The value in direct selling—and perhaps the most compelling messaging—comes when success is both aspirational and attainable and not solely focused on monetary rewards. Confidence and community are powerful drivers and pivotal parts of an important story.

As Fleming shared, “Our compensation plans have gotten so complex no one can understand them. Simplicity is what people want, and traditional compensation plans with multiple levels of recognition and achievement and all the language surrounding them are often the polar opposite of that.”

The very real danger of all this complexity lies in the fact that direct selling is no longer the only game in town. “As we all know, there are thousands of gigs out there,” according to Brett Duncan, Co-Founder and Managing Partner, Strategic Choice Partners.

“In the past, when we had the supplemental income market cornered, people were willing to tolerate the complicated and confusing aspects of how we did business. Now, they don’t have to.”

In the past, we have focused on minimizing effort required, and maximizing income potential, and the opposite needs to be true today.
HEATHER CHASTAIN / Founder & CEO, Bridgehead Collective

Droog agreed, “We should always ask ourselves how we can tell our story in a more accessible way. Our compensation models are not complicated if you start by sharing what someone can accomplish in their first 60 days, 90 days, 365 days. That is the language we should be using—the reality that the more products you sell, the more customers you acquire, the more you can earn.”

The strong start message was reiterated by Hester, “Compensation needs to be fair and should be tied to performance. I think the mistake companies often make is going too deep in the compensation plan with new distributors. You can share the potential, but the focus needs to be on getting new people off to a good start.”

And on that front, there is positive news to share that could move the proverbial needle. As Maddox explained, “Honesty and transparency about how many people are earning what amount of money would be very helpful. The numbers are actually fairly impressive when well-presented and coherently classified.”

The UK DSA has taken a bold step when it comes to language and positioning more broadly, earlier this year announcing that it was expanding its remit to become the voice for Direct-to-Consumer (D2C) retail, thus aligning itself more broadly with the wider D2C channel in the country.

Exits Erode Confidence

All these pressure points have converged to cause what DSN sees as an inflection point for direct selling as several companies have left the channel recently. No two exits are the same: some came from an influx of private equity investors with no skin in the game; some were to head off the ire of the FTC; and others were the results of simple closures or a change in the business model.

The instability and uncertainty these kinds of abrupt exits bring compounds the perception and reputation problems the industry fights.

The Accountability We Need to Take

While it would be easy to look solely at forces beyond the industry’s control for the source of reputation and perception problems, the truth is far more nuanced. The global economic downturn brought about by the pandemic and the resulting supply chain issues can be considered part of the problem. But, if we are looking at the channel holistically and fairly, home office executives deserve a share of the blame, too.

Corporate executives and field leaders alike often set unrealistic expectations from both income and effort perspectives. Then, to compound the problem, they fall short of following up with a system that walks people through realistic goals in attainable timeframes.

As Heather Chastain, Founder and CEO of Bridgehead Collective, shared, “One of the things that I have been talking about lately—particularly with field leaders—is this idea that one of the primary causes of bad press in our channel has to do with the gap between what someone thought was going to happen and what actually happened. So, this area of missed expectations is critical.“

“Historically, the expectation gap has been quite large,” Chastain continued. “This creates an environment of disillusionment, disappointment and embarrassment. Those things all lead to negative perceptions of the channel. In the past, we have focused on minimizing effort required, and maximizing income potential, and the opposite needs to be true today. At Bridgehead, we work hard to close that gap in whatever way we can. Whether that’s talking about transparency in earnings; lowering the numbers of what people can expect to earn in terms of supplemental income; and highlighting the fact that this is an effortbased opportunity.”

The Pivots We Need to Make

We asked several interested parties to share the key pivots they feel the channel must address to increase relevance and improve reputation.

1 / Fully embrace ecommerce

First and foremost, Duncan believes we must take on the identity of being an ecommerce industry. Schofield agreed, “We must invest heavily in digital tools and platforms to support online sales, social media marketing and virtual customer interactions.”

2 / Double down on product

In the past, products were almost an afterthought. But in a push to be more customer focused, many direct sellers have made great strides in developing high-quality, innovative products that genuinely enhance and improve people’s lives. The industry should talk about those products proudly and loudly to help steer the narrative in a more positive direction.

3 / Tell positive stories

Professor O.C. Ferrell believes the leadership of most direct selling companies is highly ethical and focused on doing things the right way. “Most of the top companies are socially responsible and committed to giving back to their communities. That message doesn’t get out enough.”

We must invest heavily in digital tools and platforms to support online sales, social media marketing and virtual customer interactions .
SUSANNAH SCHOFIELD OBE / Director General, DSA UK

4 / Address comp plan complexity

Schofield advocated for simplified compensation plans. “We must reduce the complexity of compensation structures to make them more attractive, transparent and understandable.” Additionally, Duncan believes the channel must determine what a healthy compensation for team building looks like, without that payout accounting for so much of the corporate budget that’s now necessary for proper marketing and brand building.

5 / Capitalize culture and community

Integrity starts at the top. Changing the public’s feelings about direct selling isn’t easy, but it is vital. “The foundation of network marketing is culture,” shared Hester. “It’s critical that we establish high standards and guide the field to uphold them. The best way to do that is by setting a good example ourselves.”

6 / Normalize the opportunity

The way we compensate is not that different from other models. As Brian Bennett, Senior Vice President, Government Affairs and Policy, DSA explained, “Group sales occur in a variety of industries. So do commission structures. If I buy a car, the salesperson gets a percentage of that, but so does the floor manager, etc.” Direct selling must drive the narrative that we are not a different, odd or “other” type of business operating on the fringes.

7 / Broaden direct selling’s definition

One point everyone agrees on is whether industries with similar commission structures should be a part of the direct selling family. The answer is a resounding yes. Real estate and financial services companies have multi-tiered commission structures. And no discussion of direct selling would be complete without addressing

door-to-door sales companies like solar, power and pest control. They fundamentally utilize independent contractors, recruit others, build teams—and they SELL.

The Change We Need to See

Researchers, academics, executives, consultants, field leaders—they all have different perspectives on what the most crucial changes are. But the undeniable common denominator among all these groups is the need for change.

Professor Linda Ferrell explained, “False earnings and product claims are what hang over the industry. The question now becomes can the industry look forward enough to truly put that behind them and to recognize the opportunities that exist.”

Professor Greg Marshall agreed. “As an industry, direct selling has been talking about change for five or ten years, but not very much has actually happened. There needs to be a heavy priority on change—change that assures that oncoming generations of potential consumers via the direct selling channel clearly recognize the value proposition of such engagement. I’m an optimist by nature, but the conversation in five years likely will be very different (less opportunistic) if substantive, strategic change in how direct selling firms create and deliver value in the marketplace doesn’t happen soon.”

At DSN, we believe in the power of direct selling, and we celebrate the positive stories and innovative ideas that we see companies achieving every day. Our goal in doing this story was not to sound alarm bells. Rather, our goal was to encourage action. To spark a conversation that could ignite lasting, positive, prolific, powerful change.

That conversation revolves around if we could change the narrative, if we could course correct, if we could stop declining and start growing again— what would it take, what would it look like—and most importantly—what are we waiting for? DSN

THE END of CHEVRON

HOW THE DISMANTLING OF THE CHEVRON

DEFERENCE DOCTRINE COULD IMPACT THE DIRECT SELLING CHANNEL AND ITS INTERACTIONS WITH THE FEDERAL TRADE COMMISSION

IN 1984, THE US SUPREME COURT

ESTABLISHED A PRECEDENT: when faced with ambiguity, courts should defer to the government agency with the most expertise. The original lawsuit Chevron USA, Inc. v. Natural Resources Defense Council, known simply as the Chevron deference doctrine or the Chevron doctrine, has been a template followed by the courts for more than four decades.

Chevron’s original intention was to strengthen rulemaking by empowering agency experts to write regulations a court might not be well-versed in and to implement laws passed by Congress. Proponents of the Chevron doctrine believe federal agencies have been tasked with protecting public health, safety and the environment, and that the power to interpret the laws they are responsible for carrying out should reside with them.

Over the years, however, critics of the Chevron doctrine have pushed back against its validity, saying it granted government agencies unchecked rulemaking power. They believe that what was intended to be a limited exception or last-resort solution has turned into a license with plenary power.

THE CHEVRON DEFERENCE

DOCTRINE’S ORIGIN STORY

IN THE 1970s, Congress required states to reduce air pollution from power plants. At the time, the Environmental Protection Agency (EPA) treated power plants like a single unit, regardless of how many smokestacks they had. Power plants were free to add more smokestacks without upgraded pollution controls as long as their total emissions didn’t increase.

The Natural Resources Defense Council (NRDC) sued oil and gas refining company Chevron, disagreeing with the EPA’s interpretation of the Clean Air Act. Initially the case was a simple argument about the interpretation of a statute, but quickly evolved into a conversation about the separation of powers. The resulting decision stated that when the law isn’t clear, the administrative agencies get to decide.

Chevron Overruled

The Federal Trade Commission’s (FTC) authority is a passionate subject for Amber Olson Rourke, Neora Founder and President, whose company endured seven years of litigation with the agency.

As she explained, “In the Chevron case, it basically said that in circumstances where the law or rule might not be clear, the agency can use their discretion. This tiny opening has expanded where today agencies are making their own rules without going through the rulemaking process.”

Neora ultimately won their case and their business model remained unchanged, but the emotional impact and $20 million price tag for the lengthy court battle was not insignificant.

“The FTC basically decided they wanted to change the rules but didn’t want to go through the formal rulemaking process,” Rourke said. “And it would likely not have happened if the Chevron case had been overturned like it is now.”

In June of this year, the precedent-setting Chevron decision was reversed. In Loper Bright Enterprises, et al. v. Raimondo, Secretary of Commerce, et al., the Supreme Court ruled that it is the court’s responsibility to make sure an agency is doing what

Congress allows it to do without overstepping its authority. Even if a law is unclear, the court will no longer have to automatically defer and agree with an agency’s interpretation.

This appears to weaken the rulemaking authority of the FTC and other government agencies.

“The true impact of Loper Bright will be defined through years of litigation and legislation, as the courts, agencies and Congress wrestle with its implications,” said Katrina Eash, Partner at the Winston & Strawn law firm. “Direct sellers, however, are already beginning to see some impact. In a recent decision preliminarily enjoining the effective date of the FTC’s new non-compete rule as to a subset of plaintiffs, the court cited Loper Bright for the proposition that a court interpreting a statute must give effect to legislative intent. Among other things, the court ultimately held that ‘the text, structure and history of the FTC Act reveal that the FTC lacks substantive rulemaking authority with respect to unfair methods of competition.’ This is just one example of the far-reaching implications of Loper Bright and how it is expected to impact direct sellers for years to come.”

The end of Chevron deference will make it more difficult for the FTC to publish regulations and rules or initiate enforcement actions based on unpublished or subjective enforcement criteria not grounded in settled law.

Compliance Remains Critical

How the reversal of Chevron will affect the direct selling channel in practical ways, according to legal experts, remains to be seen, but the impact of the ruling will undoubtedly impact future legal actions taken by the FTC and similar government agencies.

“The end of Chevron is very, very significant for the direct selling channel,” said Brent Kugler, Partner at the Scheef and Stone law firm. “For decades, the direct selling channel has been at the mercy of FTC staff interpretations of the FTC Act, many of which are contrary to established case precedent and clear and unambiguous statutory language. This has caused companies to devote significant resources attempting to comply with the FTC’s ever-evolving administrative interpretations.”

Direct selling executives who are weary of the heightened regulatory pressures experienced in

THREE KEY TAKEAWAYS

1 / THE CONTROVERSIAL RULING HAS BEEN OVERTURNED

The Chevron deference doctrine has been a tool for government overreach in the past, allowing federal agencies to overstep their oversight function and venture into rulemaking territory.

2 / NOTHING DRASTICALLY CHANGES

While this is a win in the sense that regulatory pressures may ease, companies must continue to act with integrity—compliance, compensation, etc., must remain above reproach.

3 / IT MAY CURB FTC OVERREACH

The looming specter of judicial scrutiny may compel the FTC and other federal agencies from pervasive regulatory initiatives.

recent years may be breathing a sigh of relief, but the reality is that, in many ways, nothing has changed. Companies still need to live up to the tenets of integrityfilled compensation structures; promote product-first models; and abide by the rules of a robust internal compliance program. The difference will be the fervency with which the FTC chooses to pursue direct selling companies given the new legal landscape.

“The end of Chevron deference will make it more difficult for the FTC to publish regulations and rules or initiate enforcement actions based on unpublished or subjective enforcement criteria not grounded in settled law,” Kugler said. “The opportunity for companies to seek judicial review of administrative interpretations without Chevron deference may cause the FTC to pause before implementing regulatory initiatives that cannot withstand judicial scrutiny.” DSN

SUPPORT THE FUTURE OF THE CHANNEL.

I APPRECIATE DSN’S TIRELESS WORK to report the news around direct selling, but also how they share the positive stories surrounding it. DSN is a reputable and powerful voice that always strives to edify the channel and highlight the direct selling companies that are doing the right things .

When one company succeeds, the entire channel benefits. It’s with that sensibility in mind that we developed the DSN Supporter Program in 2022 and welcomed dozens of companies, representing billions in cumulative revenue, committed to helping this channel grow and enhance its relevancy.

Our mission is to serve, educate and edify the channel as the daily resource for breaking global news, emerging trends and powerful stories. With DSN, it’s easy for direct selling executives to stay informed, engaged and always one step ahead.

Your support helps DSN continue to provide relevant information, exposure, edification and education for companies and executives to help evolve the channel forward for the global community.

TO LEARN MORE about exclusive DSN Supporter Program Benefits and how you can become a part of the DSN family of Supporters, visit directsellingnews.com/supporter or contact support@directsellingnews.com

In order to protect the integrity of the Supporter Program for all participants, DSN reserves the right to deny, suspend or discontinue Supporter benefits to any company undergoing published legal actions or regulatory disputes (including any settlements of such).

EVERYTHING we think you (and your field) should be reading, listening to and utilizing in order to stay engaged, informed and one step ahead.

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42K+ Unique Downloads and Still Growing Strong

THE DIRECT APPROACH WITH WAYNE MOOREHEAD — CANDID AND INSIGHTFUL CONVERSATIONS ABOUT TODAY’S EVOLVING CHANNEL.

SINCE LAUNCHING in June 2021, the Direct Approach podcast has been providing direct selling executives an in-depth look at the biggest challenges facing the channel—and unique solutions for tackling them.

Wayne and the rest of the DSN family would like to thank our growing audience and the 80+ executives and guests for their candor and participation.

MEET THE HOST Wayne Moorehead has deep experience in marketing and brand strategy. He has applied his expertise and passion to help companies (from startups to Fortune 100) define, communicate and activate their brands. Wayne’s rare blend of experience and success has shaped his philosophy on effective growth strategies, and he believes the future of the channel will blend the best of direct selling with the best of direct-to-consumer.

[ EPISODE 81 ]

Crafting a High-Performance Culture: Insights from the CSO of a $3B Company with Gordon Hester, CSO of the Americas, PM-International

FOR PM-INTERNATIONAL, a banner year. The company not only celebrated its 30th anniversary, it also announced its biggest financial milestone to date: reaching $3 billion in annual sales. The company has sold 900 million products in 71 countries—and they just keep IN THIS EPISODE

PM- International’s remarkable growth story and explains the strategy, culture and philosophy that fuel this explosive, consistent growth.

loyalty has been instrumental in shaping the company’s success, and her leadership continues to inspire entrepreneurs in the direct selling sector.

IN THIS EPISODE Heidi highlights her thoughts on promotions that really move the needle and the importance of creating a culture that truly builds community and belief.

Ryan Scott, Chief Strategy

has been marked marketing and direct sales. The company consultants and distributors—and this focus has been an integral part of Neumi’s success story. Ryan discusses his thoughts on all the hot-button topics in the channel regarding ecommerce. You’ll learn how Neumi is emphasizing technology, empowering

—2024 is providing another year of insights, tips, takeaways and action items from some of the most notable names in the channel. If it’s impacting direct selling, Wayne

New episodes drop every other Thursday—make sure to subscribe!

Subscribe to the Direct Approach Today.

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INTERNATIONAL FOCUS /

ATOMY: Bringing Korea to the World

ATOMY, A LEGENDARY NAME IN DIRECT SELLING, has been a dominant force in South Korea since launching in 2009. Its global presence continues to grow, and at the end of 2023, the company operated in 27 countries across five continents (Asia, Europe, North America, South America and Oceania). Atomy was the first South Korean network marketing company to successfully penetrate the overseas market. This ambitious expansion strategy shows in its undeniable success, and the results are staggering! Atomy secured twelfth place on this year’s DSN Global 100 List with 2023 revenue of $1.71 billion.

Alongside offering affordable and high - quality products, the dedication of Atomy members to informing and engaging consumers plays a pivotal role in Atomy’s expansion .
HAN-GILL PARK / Founder & C hairman

STRONG AND STEADY FROM THE START

Atomy’s Founder and Chairman Han-Gill Park is a firm believer in the power of direct selling which he experienced first as a distributor for another company as a young man. As he explained, “I immediately saw the potential of direct selling. The business model helps establish a consumer base and allows profits to follow accordingly. I joined a network marketing company in my 30s and reached the highest rank, but it was not a place where good products were sold at affordable prices. I tried to find a company driven by the principles I cherished but couldn’t find one. I started Atomy with the idea that since such a company didn’t exist, I would build it myself.”

Park had a primary goal of creating a global company with overseas sales ten times larger than domestic. With that philosophy in mind, Atomy entered the American market in 2010, just a year after launch. It was a bold move, but one that made perfect sense to Park. “Affordable and high-quality products work universally. My trust was based on the quality of the products.”

GLOBAL EXPANSION

ATOMY IS BECOMING a truly global enterprise as this timeline demonstrates its rapid expansion

FOUNDED: 2009

HEADQUARTERS: South Korea

TOP EXECUTIVE: Han-Gill Park / Founder & Chairman

PRODUCTS: Health and Wellness/ Beauty

Park’s confidence was well founded. Atomy generated $4.6 billion KRW (approximately $3.36 million USD) in its first year after entering the market. Atomy next expanded its presence to Japan and Canada in 2011, marking its transition into a fully established global company.

After establishing itself in Japan and Canada, Atomy broadened its footprint once again by expanding to Taiwan in 2014. This was a smart

strategic move as it positioned Atomy to target both the Greater China market, including Hong Kong and China, and the Southeast Asian and ASEAN markets simultaneously. Taiwan is perfect for direct selling in general and Atomy specifically because the market is price-sensitive; values word-of-mouth recommendations; and exhibits a keen curiosity and desire for experiences.

KONG

UNITED KINGDOM

TURKEY

ZEALAND

KAZAKHSTAN

Atomy’s overseas expansion continued to gain momentum following its entry into Taiwan. After entering Singapore in 2015, Atomy expanded its operations to Malaysia, Cambodia and the Philippines in 2016, and to Thailand and Mexico in 2017, surpassing 10 overseas markets. Atomy commenced operations in Russia and Australia in 2018.

Despite the challenges posed by the pandemic, Atomy expanded into China, Hong Kong, India and Colombia in 2020. China—renowned as the world’s largest market—swiftly became Atomy’s largest overseas subsidiary, surpassing 100 billion KRW (approximately $73 million USD) in sales within its first year of operation.

In 2021, Atomy expanded into five new markets, including the UK, Turkey, New Zealand, Kazakhstan and Kyrgyzstan. Three more markets were added in 2022: Brazil, Mongolia and Uzbekistan.

And last year, Atomy launched in the EU market. Lee Hyun Woo, executive director of Global Business shared, “With the establishment of our European corporation, we have penetrated all of the top 10 markets. Ultimately, Atomy’s operations will extend to every continent, including Africa and the Middle East.”

IN-DEMAND PRODUCTS, AFFORDABLE PRICES

Atomy’s global success is undeniable, and the secret to their success is clear. The primary factor enabling Atomy to distinguish itself in the international market is its laser focus on affordable, high-quality products. Their philosophy is to provide “Absolute Quality and Absolute Price.” This is the value that Atomy has strived for since its inception.

And it is perhaps best exemplified through the brand’s hero product, HemoHIM. HemoHIM is an herbal blend extract comprised of three botanicals: Angelica gigas, Cnidium officinale and Paeonia. The product has been acknowledged for its dual functions, encompassing both immune enhancement and fatigue relief properties. According to Park, the multifunctional properties of HemoHIM can only help broaden the product’s appeal globally. It is currently available in 19 countries including South Korea, Russia, the United States, Australia, Mexico and China.

But HemoHIM is not only effective, it is becoming more and more affordable. When the product was first launched it came with 30 packets. Gradually, at the same price, the volume was increased to 48 packets, 54 packets and finally to 60. The company was able to cut costs to provide this value through mass production and widespread sales. This unbeatable combination of affordability and effectiveness drives sales and loyalty not only in South Korea but in all Atomy’s international markets.

AT ATOMY, WE DREAM of the day when consumers worldwide will use our products .
— HAN-GILL PARK / Founder & C hairman

Atomy has other products in high demand around the globe as well in multiple categories. The Absolute CellActive Skincare Set, Atomy Toothpaste Plus and the Atomy Toothbrush are leading the company’s global expansion.

In particular, Absolute CellActive Skincare was recognized as a next-generation world-class product by the Korean Ministry of Trade, Industry and Energy in 2022. It has received a total of four awards, including the prestigious King Sejong Award for Patent Technology.

Localization strategies, including proactive investment and social contribution initiatives play a crucial role in Atomy’s success on the global market. Recently, Atomy has been placing particular emphasis on the Chinese market.

BRINGING KOREAN SENSIBILITIES TO A GLOBAL STAGE

Atomy takes a very proactive approach when engaging in international markets. The goal is to narrow the disparity between its South Korean headquarters and overseas subsidiaries by enhancing the new product launch process and delivering effective support and marketing training to members. This enables all branches to share the growth strategies employed by markets enjoying exceptional success such as Turkey, Kazakhstan, Colombia and the Philippines.

Moreover, to actively vitalize overseas markets, Atomy bridges the communication and cultural gaps between its South Korea headquarters and international corporations. The “Go and Meet 100” project allows executives and employees to engage directly with field operations to understand the challenges facing distributors and collaboratively devise solutions.

“Atomy’s management goal focuses on customer’s success,” said Kwon Seok Gyun, the head of Atomy’s Value Management. “We encourage consumers to choose us by enhancing the ‘Absolute Quality, Absolute Price’ philosophy for sustainable growth, regardless of whether it pertains to South Korea or abroad.”

With innovative and immersive expansion strategies, an in-demand assortment of high-quality, low-cost products and an engaged, dynamic and committed leadership team, Atomy has enjoyed a remarkable run with even bigger achievements on the horizon.

All this synergy and strategy has made Park hopeful and excited for Atomy’s future. “At Atomy, we dream of the day when consumers worldwide will use our products. And as our dreams from the past 10 years have made Atomy what it is today, our dreams for the future will shape our next 10 and even 100 years.” DSN

COLOR STREET /

Color Street Becomes a Global Beauty Brand

COLOR STREET FOUNDER FA PARK

revolutionized the modern manicure when he brought the idea he’d been refining for nearly twenty years to market in 2007. His breakthrough, 100 percent nail polish strips that replaced all the mess of traditional polish, forever changed the beauty industry. Ten years later, Fa launched a new way to share his creation with even more customers by entering the network marketing industry with Color Street. Today, Color Street is a global name, with new product lines, an expanding international footprint and— of course—bold new nail designs, research and creativity.

FOUNDED: 2017

HEADQUARTERS: New Jersey

TOP EXECUTIVE: Fa Park, Founder

PRODUCT CATEGORY: Beauty & Personal Care Products

FA PARK / Founder “
INNOVATION fuels everything we do at Color Street.

Nonstop Innovation

Innovation is everything at Color Street. Fa spent 30 years perfecting a product that would upend the nail polish industry, choosing to keep his creation proprietary and building a company inspired by its possibilities. His years of persistence and creativity set the standard for all that Color Street would become and is still becoming. Today, his commitment to innovation continues to drive Color Street to new heights.

“Innovation fuels everything we do at Color Street,” he shared. “Expanding our product lines was a natural progression and allowed us to utilize our deep understanding of quality, color, effects and pigments. Innovative ingenuity drives the development of all new products, ensuring we remain at the forefront of the beauty industry.”

Color Street launched in 2017 with a series of bold, beautiful nail strips and a team of passionate Stylists ready to share them. Fast forward seven years to today’s Color Street, a global beauty brand offering cosmetics and hand and nail care products, in addition to a constantly expanding collection of its flagship line of nail strips. The company’s expertise and patented innovations in color technology inspired the cosmetic line that launched in 2022, which includes richly pigmented lipsticks, lip liners, mascara and gel eyeliners in colorful shades like olive, amethyst and bronze.

But it’s Color Street’s groundbreaking nail strips that continue to sell out time and again. Color Street’s in-house design and manufacturing teams are constantly launching new designs, to the delight of both Stylists and customers.

“We’re distinguished by our unparalleled capacity and capability to produce new, unique nail strips in any quantity and design we desire,” Fa explained.

“We have a unique product that launched an entire new beauty category. Our nail polish strips are made 100 percent in the United States, and we completely own both the manufacturing and distribution process—we can launch new nails each week.”

Color Street Stylists have sold over 100 million nail strips, earning over $820 million in Stylist commissions.

Critical Transformation

Shortly after its launch, Color Street experienced explosive growth that required Fa and his team to make crucial changes to nearly every corner of the business. Since 2019, the company has completed top-to-bottom overhauls of internal processes, implementing digital modernizations and completely reforming its recognition programs.

“We initiated a comprehensive evaluation and made strategic adjustments throughout our company,” Fa shared. “It was a learning experience, but we valued the new direction and it created a more balanced and supportive structure for our field.”

While many companies were grappling with the challenges of 2020, Color Street was managing an intense season of growth and making plans for international expansion that launched in 2021. The company first expanded its global sales force into Canada, followed by Germany in 2023. Today, Color Street remains headquartered in the United States, but now has additional lab and research and development teams in South Korea, as well as product development partners in Canada,

France, Germany and Italy. This global network of labs develops luxury formulas and a pipeline of new, exciting products.

Today, Stylists enjoy a lucrative compensation plan, personalized recognition programs and customized incentives that keep the field engaged— not to mention a constantly expanding product line they can share with customers. With new nail strip designs to share weekly that are easily

demonstrated both in person and via social media, Stylists quite literally have beautiful products right at their fingertips.

This summer and fall, Stylists will have the opportunity to share the company’s latest products in various locations across Europe and North America with Color Street’s Color Pop Tour. The summer events in Europe debuted the newest hand and nail care products, while the fall events in select locations across Canada and the United States will offer interactive activities, including a customizable nail bar.

“We keep developing new product lines with a creative culture,” Fa shared. “We always strive to be different, especially as the sales landscape changes. We see the most excitement in products that create a brilliant and bright culture and community. Many Stylists have said they love our culture and that is why they join.”

The Next Evolution

From the growing pains of its first years in the network marketing space, to navigating 2020 and its aftermath, Color Street and its Stylists have thrived on the innovation and creativity that Fa and his team have led with. The company is stronger than ever, with thoughtfully upgraded processes and platforms ready to take Color Street into its next evolution.

New products are on the horizon, including Color Street’s exclusive, patent-pending tri-flora complex Melt Away cleansing balm. Its cosmetic line is expanding as well, with new eye makeup selections launching this month, featuring high-impact color eyeshadow palettes, ultra-precise brow pencils and premium eye makeup brushes.

Stylists can share these new products, as well as the entire Color Street collection, through new CRM tools, including shareable wishlists– a feature that enables the field to create customized shopping experiences for customers and enhance new customer acquisition.

More digital transformation is underway as the company works to gather data-driven insights and intelligence; refocuses on business tools; and enhances communications channels to support its growing field.

Fa’s determination and resilience are woven into the fabric of Color Street and continue to inspire the company and its Stylists to pursue what’s next with these qualities.

FA PARK / Founder “
WE ALWAYS STRIVE to be different, especially as the sales landscape changes .

“Over the last few years, the global business environment has changed,” Fa explained. “Amidst significant change and uncertainty around recent company announcements, we are thrilled to be fully dedicated to this channel. Our Mission and Vision statements are not empty words, they represent the promise I have made to every current and future Stylist. I am proud of our employees for proactively moving forward and so proud of our partnership with our Stylist community.” DSN

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

Compensation Plan Design l Marketing & Communications l Salesforce Development

Hispanic Marketing l International Development l Events & Show Production l IT Strategy

Digital Roadmapping l Promotions & Incentives l Customer Service

Video Production l Creative Services l Social Media Management

Financial Expertise l Keynote Presentations

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.

BRAVENLY GLOBAL : A Leap of Faith in a Global Pandemic YOUNG COMPANY /

LAUNCHING A NEW STARTUP INTO AN ARENA already saturated with competition— some of whom are already struggling to survive—is risky. To do so only months into a worldwide pandemic…even more so. But, with an undeniable amount of faith, Aspen Emry and her husband, Brent, did just that when they launched Bravenly Global in 2020.

LAUNCHED: 2020

HEADQUARTERS: Florida

PRODUCTS: Health & Wellness

TOP EXECUTIVE:

ASPEN EMRY / Co-Founder & CEO “
PEOPLE WILL ALWAYS BUY GREAT PRODUCTS, and people will always crave relationships and connection. Provide those things and pay people well—and they will grow right along with you .

As a teenager, Brent ran the family business after his father passed away. Aspen was a schoolteacher then spent some time as a stay-at-home mom before being introduced to network marketing.

That experience gave her a powerful vision for the future. Aspen found focusing on people and their successes in the workplace to be extremely rewarding in the same way she had found fulfillment shaping the young minds of her students.

“I started in the field and learned so much about leadership, duplication, systems, consistency and persistence,” she explained. “But most of all, I learned that people are the most important piece of the puzzle.”

Built to Last

As important as serving others is to Aspen and her family, she knew Bravenly Global also had to provide a unique opportunity to the field. “We started with a super strong compensation plan with plenty of money on the front end to stay highly competitive; plenty of residual in the middle; and plenty of depth and pieces of the plan that would reward people for developing others and creating leaders.”

Aspen is a true believer in the power of the traditional relationship marketing model. For her, it was the ideal option for launching her vision into the world. But she also wanted to make Bravenly an opportunity that would appeal to a new generation perhaps less interested in team building. That’s why she built an affiliate piece into the compensation plan right from the start.

It’s a structure where everyone can find success on their own terms and in their own time. “People see early payouts, residual earnings and leadership money. All efforts at all levels are rewarded really well,” she shared.

The health and wellness space has struggled post pandemic with some companies fighting for survival. Bravenly Global, on the other hand, has thrived—thanks to their strong social media presence; crave-worthy, impactful products; and a simple yet thorough onboarding and training process

And it doesn’t stop there. “From coaching groups, to push groups, to pre-made content, deep dive training and onboarding training, we have all that and then some,” Aspen said. “We offer robust field support so that our leaders can work their personal businesses, build relationships and connect with their teams.”

It’s a message Bravenly has been taking on the road. In-person events are a huge driver of the Bravenly success story. The Emry family will travel to 20 cities this year, hosting multiple large and small events in each. Aspen also attends team retreats where she spends time connecting with small groups of 10 to 20 people. This year there have also been hundreds of “Sip and Socials” which serve as networking opportunities and an introduction to Bravenly.

Craveable Products

With a team of naturopathic doctors and formulation scientists behind them, the products at Bravenly Global take center stage. “We consider ourselves a lifestyle brand. We want to level up your current health experience and not have people settling for less than feeling the best they can at any age,” Aspen explained.

But it’s also about an experience that bonds people together and builds intense brand loyalty. “People see and feel a result from the products, but they also connect in our online communities to share their experiences. We’ve found that they even upsell themselves by trying new products they learn about through the online groups.”

The revenue results speak for themselves. In 2021, Bravenly Global’s first full year of operation, they produced $1.5 million in sales. Second year sales increased to $8 million. By the end of 2023 sales rose significantly to $19 million and—with numbers only in through June 2024—Bravenly’s sales have already surpassed 2023’s total.

Aspen is excited about the future. She’s been disappointed to see companies recently leave the channel but remains firm in her commitment to and belief in network marketing.

With exceptional products and exceptional people in place, Bravenly’s potential for future growth is unlimited. “People will always buy great products, and people crave relationships and connection,” she explained. “Provide those things and pay people well—and they will grow right along with you.” DSN

Embracing the Future

It’s imperative for direct selling companies to adopt cutting-edge ecommerce platforms.

TODAY’S CONSUMERS are more digitally savvy than ever before. They expect seamless, personalized and convenient shopping experiences across all touchpoints.

HE LANDSCAPE OF RETAIL is undergoing a seismic shift, driven by rapid advancements in technology and evolving consumer expectations. In this context, direct selling companies find themselves at a critical juncture. Traditionally reliant on face‑to‑face interactions and a network of independent sales representatives, direct sellers have been slow to embrace the full potential of ecommerce. However, the time has come for a change. To thrive in the modern marketplace, direct selling companies must integrate class leading, cutting edge ecommerce platforms into their business strategies. Doing so promises to deliver cost effectiveness, increased sales and an enhanced customer experience.

The Changing Dynamics of Consumer Behavior

Today’s consumers are more digitally savvy than ever before. They expect seamless, personalized and convenient shopping experiences across all touchpoints. According to a report by Statista, global ecommerce sales are projected to reach $6.54 trillion by 2023, up from $3.53 trillion in 2019. This exponential growth highlights the critical need for businesses to have a robust online presence. For direct selling companies, the challenge lies in adapting their traditional sales models to meet these new consumer expectations. Historically, these companies have relied heavily on personal relationships and direct interactions between sales representatives and customers. While these elements remain vital, they must be complemented by a sophisticated ecommerce platform that can provide a comparable level of service and engagement online

IMPLEMENTING A state-of-the-art

ecommerce

Software as a Service (SaaS) solution offers numerous benefits for direct selling companies.

The Benefits of a World-Class Ecommerce SaaS Solution

Implementing a state of the art ecommerce Software as a Service (SaaS) solution offers numerous benefits for direct selling companies. These platforms provide a range of features and capabilities that can significantly enhance business operations and customer satisfaction.

1 / COST EFFECTIVENESS

One of the primary advantages of an ecommerce SaaS solution is its cost effectiveness. Traditional ecommerce platforms often require significant upfront investment in hardware, software and IT infrastructure. In contrast, SaaS solutions operate on a subscription based model, allowing companies to pay for only what they need. This model eliminates the need for costly infrastructure and ongoing maintenance, as the SaaS provider handles all updates and technical support.

Furthermore, SaaS solutions offer scalability, allowing companies to adjust their service levels based on demand. This flexibility is particularly beneficial for direct selling companies, which may experience fluctuations in sales volume due to seasonal trends or promotional campaigns. By leveraging a SaaS platform, these companies can manage their costs more effectively and allocate resources to other strategic initiatives.

2 / INCREASED SALES

A cutting edge ecommerce platform can drive significant sales growth for direct selling companies. These platforms offer advanced features such as personalized recommendations, targeted marketing campaigns, abandoned cart tracking and real time analytics. By leveraging these capabilities, companies can deliver highly relevant content and offers to their customers, increasing the likelihood of conversions.

For example, personalized product recommendations based on browsing history and past purchases can enhance the shopping experience and encourage repeat purchases. Additionally, targeted marketing campaigns that use data driven insights can help companies reach new customers and re engage existing ones. Real time analytics provide valuable insights into customer behavior, enabling companies to optimize their sales strategies and improve overall performance.

Moreover, a robust ecommerce platform can support multi channel sales, allowing direct selling companies to reach customers through various digital touchpoints, including mobile apps, social media and online marketplaces. This multi‑channel approach not only expands the company’s reach but also provides a seamless and consistent shopping experience across all platforms.

3 / IMPROVED CUSTOMER EXPERIENCE

Customer experience is a critical differentiator in today’s competitive retail environment. A world‑class ecommerce platform can significantly enhance the customer journey, from initial discovery to post purchase support. These platforms offer user friendly interfaces, fast and secure checkout processes, frictionless enrollment and comprehensive customer support features.

A seamless and intuitive user interface ensures that customers can easily navigate the website; find the products they need; and complete their purchases without frustration. Fast and secure checkout processes, including multiple payment options and robust security measures, instill confidence in customers and reduce cart abandonment rates.

SAAS SOLUTIONS OFFER SCALABILITY,

allowing companies to adjust their service levels based on demand. This flexibility is particularly beneficial for direct selling companies, which may experience fluctuations in sales volume due to seasonal trends or promotional campaigns

In addition, ecommerce SaaS solutions often include customer support features such as live chat, chatbots and knowledge bases. These tools provide immediate assistance and resolve customer queries quickly, enhancing overall satisfaction. By delivering a superior customer experience, direct selling companies can build stronger relationships with their customers, foster loyalty and encourage positive word of mouth referrals.

Overcoming the Challenges of Adoption

While the benefits of adopting a cutting edge ecommerce platform are clear, direct selling companies may face several challenges in the transition process. These challenges include resistance to change, integration with existing systems and the need for training and support.

To overcome resistance to change, it is essential to communicate the value and benefits of the new ecommerce platform to all stakeholders, including field leaders, distributors and customers. Providing comprehensive training and support can help ensure a smooth transition and enable users to fully leverage the platform’s capabilities. Integration with existing systems is another critical consideration. A robust ecommerce SaaS solution should offer seamless integration with the company’s current CRM, ERP and other essential business systems. This integration ensures data consistency and allows for a holistic view of customer interactions and sales performance.

Finally, partnering with a reputable SaaS provider that offers ongoing support and regular updates can help direct selling companies stay ahead of the curve and continuously improve their ecommerce capabilities.

Fearlessly Future Focused

The future of retail is digital, and direct selling companies must adapt to remain competitive. Embracing a class leading, cutting edge ecommerce platform is no longer an option but a necessity. By doing so, these companies can achieve cost effectiveness; drive increased sales; and deliver an exceptional customer experience. The journey may present challenges, but the rewards are well worth the effort. In the rapidly evolving retail landscape, those who innovate and adapt will emerge as leaders, while those who cling to outdated models risk being left behind. DSN

MIKE CHRISTENSEN is the Vice President of Sales at InfoTrax, a company known for providing innovative technology solutions for direct selling businesses. With over 20 years of experience, Mike has been instrumental in driving growth and expanding the company’s market presence. His leadership and strategic vision have helped InfoTrax enhance its product offerings and deliver exceptional value to its clients. Mike is recognized for his ability to build strong relationships and his commitment to achieving outstanding results.

Scan the code below or visit dsa.org/ee24 to learn more and register today.

Advocacy Advances in 2023’s First Six Months

DURING THESE summer

months, the DSA Government Affairs has been hard at work engaging with the regulators who profoundly impact our channel.

I want to acknowledge the accomplishments of 2024’s first six months that have increasingly contributed to an even stronger position for the direct selling channel.

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 MultiLevel Marketing, thereby upholding industry standards and ensuring regulatory consistency.

On the independent contractor front, the team’s advocacy efforts engaged senior Department of Labor officials to gain increased clarity for direct sellers under the final independent contractor rule. DSA also led an inter-industry effort to advance the Congressional Review Act resolution, which would nullify the rule.

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.

At the state level, the team’s meticulous review and evaluation of over 400 state bills during the 2024 legislative season was instrumental in protecting independent contractors and the channel. Our DSA’s engagement with state attorneys general and legislative leaders helped ensure their understanding of the channel and the need to protect the independent contractor status.

While these accomplishments are significant, DSA is especially cognizant that many companies are laser-focused on growing sales following several tumultuous years.

Still, these advances reveal fertile ground for members to step up engagement in the association by offering salesforce for ongoing events with Members of Congress and a particularly robust calendar of educational opportunities.

I urge you to visit DSA.org and register for Direct Selling Day on Capitol Hill (September 25, Washington, D.C.) and DSA Legal & Regulatory Conference (October 16–18, Washington, D.C.). I look forward to seeing each of your companies represented at these events.

As we focus our goals and activities for the remainder of 2024 and plan for 2025, we hope you are as excited as we are to join your direct selling friends, colleagues and peers this fall to continue our vital work. DSN

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

900 Wilmeth Road McKinney, TX 75069 info@lacoretechnologies.com lacorepayments.com

LaCore Payment Technologies is a payment platform designed to support direct selling companies globally. Our services include: Global connectivity to 150 countries in 50 currencies, including direct connectivity to most alternative payment types, secure tokenization, customized fraud solutions, including our proprietary Fraudhawk™, advanced reporting tools, and online dispute management.

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.

STRATEGIC CHOICE PARTNERS

2201 Long Prairie Road, Suite. 107-316 Flower Mound, TX 75022 407-891-9265 strategicchoicepartners.com

SCP offers the most holistic consulting services specific to direct selling companies today. We’ve worked with more than 70 companies over the last three years alone, and served more than 250 years collectively in the industry.

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.

AMWARE FULFILLMENT

4505 Newpoint Place

Lawrenceville, GA 30043 sales@amwarelogistics.com 866-888-2999 amwarelogistics.com

Handle fulfillment for many direct sellers. DSA member with 15 fulfillment centers, nationwide, for 1–2 day ground delivery to 95% of U.S. population. Offer comprehensive B2C fulfillment services, including complex kitting, plus discounted parcel shipping based on our large volume of freight.

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!”

CANADA CARTAGE LOGISTICS SOLUTIONS

1615 Clark Blvd.

Brampton, ON Canada L6T 4W1 905-564-2115 x2 canadacartage.com

CCLS is your gateway to turn-key e-commerce sales and distribution in Canada. With fulfillment centers across Canada, our pick, pack and ship options, and real-time inventory visibility, we will help your business grow. We are NHP Site Compliant, Health Canada licensed, and GMP Compliant.

LACORE LOGISTICS

900 Wilmeth Road

McKinney, TX 75069 214-817-4802 lacorelogistics.com

LaCore Logistics provides distribution and order fulfillment services. Our highly automated distribution center provides both domestic and international direct-to-consumer shipping solutions. We offer omni-channel fulfillment solutions ranging from marketplace fulfillment for leading marketplaces to businessto-business fulfillment for leading retailers.

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.

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.

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!

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.

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.

SUPPLIER DIRECTORY

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.

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

4801 Spicewood Springs Road Suite 250 Austin, TX 78759 512-690-2134 momofactor.com

Momentum Factor is a leading digital risk management firm specializing in online compliance monitoring and global online reputation management services for the direct selling industry. Our passion and mission are to protect companies from the brand and regulatory risks associated with online and social media technologies.

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.

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.

BYDESIGN TECHNOLOGIES

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

Award-winning social commerce software for affiliate, influencer, MLM, party plan, and social retail companies. Our turnkey back-office solutions include Wayroo, delivering advanced commerce, comment selling, and payment solutions.

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.

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.

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.

MORE EVENTS

MORE COUNTRIES

MORE CONTENT

Mark your calendars now for these mustattend 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 | FALL 2025

Irving Convention Center, Texas

DSU ASIA | NOVEMBER 2025

Seoul, South Korea

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