Photo Above: CEO Panel discusses unity within DSA.
Exclusive Coverage | Shaklee’s Marjorie Fine Inducted into DSA Hall of Fame | DSEF Circle of Honor Welcomes Elizabeth Owen | 2014 Direct Selling Association ETHOS Award Winners | Roundtable with Direct Selling’s Female CEOs
The Direct Selling Association held its 2014 Annual Meeting this past June 1–3. More than 1,000 executives from direct selling and vendor partner companies gathered in Orlando to celebrate achievements and to discuss the challenges and opportunities that lie ahead for the industry.
Underscoring the meeting’s theme of ONE, the first two general sessions on Monday delivered a clear message about the importance of the industry presenting a united front and sharing the same message for those outside the industry: that direct selling offers a better life for 16 million Americans in addition to providing economic independence, a sense of fulfillment and a quality of life others cannot achieve through traditional workplace environments.
In the morning session, keynote speaker and acclaimed author of Good to Great and Great by Choice, Jim Collins, shared his extensive research on what produces great, enduring companies. “Whether we fail or thrive depends more on what we do to ourselves than what the world ‘out there’ does to us,” he told the crowd.
That sentiment was echoed in the afternoon session by the seven direct selling CEOs who took the stage to discuss unity across the entire industry. The panel, led by Nu Skin President and CEO Truman Hunt, included Natura CEO Alessandro Carlucci, Herbalife Chairman and CEO Michael O. Johnson, The Pampered Chef Founder, Interim CEO and Chairman Doris Christopher, Amway President Doug DeVos and Thirty-One Gifts Founder and CEO Cindy Monroe.
The group encouraged industry action to ensure companies can continue to thrive despite outside forces, such as the calculated attacks by short sellers and the regulatory challenges around the world, and affirmed the need to unite in securing vital political influence.
“This is a moment we should be thinking about unification more than ever before,” said Johnson, whose company has spent the past 18 months weathering attacks by Herbalife short seller Bill Ackman—a campaign Johnson described as “selfish, self-righteous and egregious in ways you don’t even know.”
New Officers, Directors for DSA BoardDuring the DSA’s 2014 Annual Meeting, the DSA Board of Directors nominated and approved Truman Hunt, CEO of Nu Skin Enterprises, as Chairman. In addition, the following executives will also serve for the 2015 term:
Eight new Directors will help form the class of 2017. They will serve three-year terms:
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The attacks aimed at Herbalife affect the entire industry, said Monroe. Party-plan companies like Thirty-One Gifts have a mutual interest in protecting the independent status of their salespeople, which is why the company has worked to ensure their earnings opportunity extends to all levels of the organization.
“With everything we do at Thirty-One, we try to make sure we’re helping the salesperson make as much money as possible,” she said. “As an industry, we have to show the statistics that our sales reps are making income, and they are making it regardless of whether they have to invest in tools.”
DeVos encouraged executives to actively support initiatives that give direct selling a greater voice in Washington. “We have to have a purpose, a plan and the financial and human resources necessary to stand up and be counted,” he said.
Christopher emphasized participation in the DSA and its initiatives as a key to furthering the conversation in Washington. “As a part of it, we all share reputation, responsibility and a love of the opportunity we offer to our independent contractors,” she said. “The most effective way to fight challenges is to do it together.”
During the three-day event DSA’s Board of Directors held its quarterly meeting. Among a number of items of business for the session, the group elected new executives and directors to the Board and unanimously approved a number of changes to the Code of Ethics.
“The most significant changes are to the explanatory provisions,” DSA President Joe Mariano noted. “The changes relate to how the Code defines a pyramid scheme, the buyback policy and inventory loading, and are the result of some self-examination of the industry due to the attacks we’ve been facing.”
The Code of Ethics is regularly evaluated to ensure it meets the demands of the current marketplace environment. Changes are considered continuously as challenges arise, and as the Code of Ethics Administrator indicates, they are necessary to continue the sales channel’s exemplary history of self-regulation.
The Board Directors were also introduced to the new executive director of the Direct Selling Education Foundation, Gary Huggins.
“I’m thrilled to welcome Gary to the Foundation,” said Amway Chief Sales Officer and DSEF Chairman John Parker. “Gary comes to us with a great deal of experience in advocacy roles for nonprofits in the education arena in particular. He’s here with us throughout the meeting, and I’d love for him to have the opportunity to talk to and learn from all the great leaders in this room about the industry.”
The Board was also briefed about ongoing and upcoming government relations activities in response to current marketplace challenges. Incoming Government Relations Committee Chairman Michael Lunceford of Mary Kay briefed the body about his expectation of industry activity at the federal level to respond to current events, either involving passing legislation friendly to direct selling or killing legislation that is harmful to it.
DSA Immediate Past Chairman Orville Thompson passes the gavel to incoming Chairman Truman Hunt.
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“There are steps that need to be taken right now,” Lunceford advised the Board. “Get to know your Member of Congress—DSA can help you with this… and survey your field and ask them who they know. You’ll be surprised at the contacts they have…. Introducing a piece of legislation and passing it is arduous. It is far harder than trying to kill one. Do these small things to help yourselves.”
“To move the things we’re talking about takes a lot of time, money and effort,” noted DSA Executive Vice President Adolfo Franco. “It takes years… we need the commitment now for the long haul.”
Since 1910, DSA has worked to promote the impact of direct sellers and ensure a fair and open marketplace. The Annual Meeting provides an opportunity for industry executives to unite in the interest of their shared vision, message and future.
This year’s event featured an adjusted schedule from the previous years, including enhanced time in the exhibit hall for learning opportunities on Sunday afternoon, before the Grand Opening Reception. Express Learning Sessions featured more than 30 mini-workshops by vendor partners and a 90-minute interactive Perfecting Partnerships Roundtable helped executives and vendor partners forge deeper, strategic working relationships.
From innovative uses of technology to marketing tactics to international expansion fundamentals, the more than 40 speakers at this year’s DSA Annual Meeting offered a closer look at today’s crucial business-building topics.
The 2015 Annual Meeting will be held in San Antonio, Texas, from Sunday, May 31 through Tuesday, June 2.
Exclusive Coverage | Shaklee’s Marjorie Fine Inducted into DSA Hall of Fame | DSEF Circle of Honor Welcomes Elizabeth Owen | 2014 Direct Selling Association ETHOS Award Winners | Roundtable with Direct Selling’s Female CEOs
Exclusive Coverage | Shaklee’s Marjorie Fine Inducted into DSA Hall of Fame | DSEF Circle of Honor Welcomes Elizabeth Owen | 2014 Direct Selling Association ETHOS Award Winners | Roundtable with Direct Selling’s Female CEOs
Shaklee’s Marjorie Fine Inducted into DSA Hall of Fame
Marjorie Fine
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Marjorie Fine, Board Director at Shaklee Corp., was honored with the DSA Hall of Fame Award, the direct selling industry’s highest honor. Fine was recognized for her contributions to direct selling in the U.S. and around the world. She is one of just six female inductees, and the only woman to enter the Hall of Fame without founding a company or serving as CEO.
The award honors Fine’s support and leadership of the DSA, the Direct Selling Education Foundation (DSEF) and the industry as a whole. In addition to serving as Executive Vice President, General Counsel and Secretary of Shaklee Corp., Fine has brought her considerable legal acumen to various roles within the DSA, including that of Chairman for the 2010–2011 term. She currently serves as Chair of the DSA Strategic Planning Committee and sits on the boards of both the DSA and DSEF.
Fine began her career at Shaklee in 1989 as Associate General Counsel and Assistant Secretary. Prior to joining Shaklee, she was Senior Counsel with Bank of America NT&SA and also spent 10 years as Associate, and then Partner, with the firm Donahue, Gallagher & Woods.
Exclusive Coverage | Shaklee’s Marjorie Fine Inducted into DSA Hall of Fame | DSEF Circle of Honor Welcomes Elizabeth Owen | 2014 Direct Selling Association ETHOS Award Winners | Roundtable with Direct Selling’s Female CEOs
DSEF Circle of Honor Welcomes Elizabeth Owen
Elizabeth Owen
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The Direct Selling Education Foundation welcomed Elizabeth Owen to its Circle of Honor, a group comprising industry leaders, academics and consumer advocates who have made extraordinary contributions to the Foundation.
Owen served two terms on the DSEF Board of Directors, from 2005 to 2011. During that time, she supported numerous Foundation consumer protection programs and represented DSEF in international consumer protection programs. As Executive Director of the National Association of Consumer Agency Administrators, Owen also wrote to the FTC on behalf of the direct selling industry regarding the Business Opportunity Rule discussions.
Her fellow board members and DSEF staff credit her ability to fully understand DSEF’s and DSA’s mission from both a consumer protection and business perspective as a driving force behind DSEF having effective and balanced programs that have won the respect of consumer advocates nationally.
Owen served as the Director of the Tennessee Division of Consumer Affairs for eight years and later spent six years covering consumer protection advice, product recalls and scam prevention as a television reporter in Nashville. Following that, she became Executive Director of the National Association of Consumer Agency Administrators, a position she held for five years.
Exclusive Coverage | Shaklee’s Marjorie Fine Inducted into DSA Hall of Fame | DSEF Circle of Honor Welcomes Elizabeth Owen | 2014 Direct Selling Association ETHOS Award Winners | Roundtable with Direct Selling’s Female CEOs
2014 Direct Selling Association ETHOS Award Winners
The DSA’s ETHOS Awards honor direct selling member companies that have implemented top-notch programs during the prior year. In 2014, more than 120 entries were reviewed by the ETHOS panel. The following companies were judged to be the best of the best:
MARKETING & SALES CAMPAIGNS:
WineShop At Home
WineShop at Home was honored for its social media/online campaign, “Wine is Social.” The campaign, which includes a responsive website design and a set of social selling tools, has generated a double-digit increase across all business metrics as the company’s field has embraced the idea of growing a digital community of wine lovers.
PRODUCT INNOVATION:
Rodan + Fields
Rodan + Fields was recognized for its REDEFINE MACRO Exfoliator, a hand-held tool that exfoliates a week’s worth of dead skin cells in just five minutes. The media exposure surrounding the product—multiple beauty magazines and national television spots coupled with word-of-mouth testimonials—has helped generate record-breaking sales.
SALESFORCE DEVELOPMENT:
Initials Inc.
Clarkesville, Georgia-based Initials Inc. was recognized for its Font Color Guide, a tool consultants use to help customers decide how they would like to customize the embroidery on the products they purchase.
TECHNOLOGY INNOVATION:
SimplyFun LLC
SimplyFun was honored for Virtual Laugh & Learn, an online salesforce-enabling technology that gives consultants and customers 24-7 access to the company’s game parties. The product sharing and selling tool offers informative videos, interactive shopping, game recommendation experiences and the ability to engage with other virtual party participants, including the host and consultant.
VISION FOR TOMORROW:
Mary Kay Inc.
Mary Kay was honored for its Don’t Look Away initiative, which draws on support from survivors of domestic violence to educate young women about dating violence. The program provides tools, support and resources to empower women to take a stand against domestic violence, with the goal of ending the cycle before it starts. It will touch an estimated 80,000 individuals in 2014.
RISING STAR:
Celadon Road
Massachusetts-based Celadon Road was recognized as an up-and-coming direct selling company that is already demonstrating excellence throughout its business. The company sells a wide range of natural, eco-friendly products, including skin care, baby care, pet care, kitchenware and other household items.
PARTNERSHIP:
hyperWALLET Systems Inc.
hyperWALLET, a Vancouver, British Columbia-based company offering global payment systems for businesses around the world, was celebrated as a DSA supplier member that is making a sustained, positive impact on member companies.
Exclusive Coverage | Shaklee’s Marjorie Fine Inducted into DSA Hall of Fame | DSEF Circle of Honor Welcomes Elizabeth Owen | 2014 Direct Selling Association ETHOS Award Winners | Roundtable with Direct Selling’s Female CEOs
Exclusive Coverage | Shaklee’s Marjorie Fine Inducted into DSA Hall of Fame | DSEF Circle of Honor Welcomes Elizabeth Owen | 2014 Direct Selling Association ETHOS Award Winners | Roundtable with Direct Selling’s Female CEOs
Roundtable with Direct Selling’s Female CEOs
The Direct Selling Association’s Annual Meeting featured a roundtable discussion with four of the industry’s women executives. Lori Bush, President and CEO of Rodan + Fields; Traci Lynn Burton, Founder and CEO of Traci Lynn Fashion Jewelry; Kay Napier, CEO of Arbonne; and Connie Tang, President and CEO of Princess House, sat down with Nu Skin Vice President of Public Affairs Ruth Todd to share perspectives on challenges and opportunities facing the industry and women leaders.
From their vantage point, the women have witnessed many changes for their fellow women in the industry. While women have always represented the overwhelming majority of direct sellers, their presence in boardrooms has more closely resembled the makeup of wider corporate America. In 1972, only 4 percent of U.S. businesses were run by women. By 1991, that number had grown to 38 percent. Today, women run 8.3 million businesses nationwide.
Napier sees a current trend in the increasing number of professional women, and men, entering direct selling. Tang agreed, saying, “It’s become more of a legitimate choice to choose this profession and lifestyle, and not just as a side job, a hobby or a social outlet. People see it more in terms of truly providing something meaningful for women and their families.”
The panel shared some common misperceptions they encounter as women leaders, including the notion that women can’t handle constructive criticism. “By virtue of what position we’re in, people infer we don’t want feedback or to know when we’re wrong,” said Napier. “I’ve worked to surround myself with people who aren’t afraid to tell me when I’m off track.”
One point from Tang struck a chord with her fellow panelists, who enthusiastically agreed. “I think there’s a myth that we’ve figured out how to balance life and work. There is no such thing!” said Tang. “Balance is interpretive and unique to each individual. Work-life balance implies there are equal parts, and that’s a myth.”
When the conversation turned to connecting with salespeople in the field, Burton encouraged leaders to make sure their interactions involve more than just products and business. “What I would suggest is that you give them a value add—something that has nothing to do with the product. If you want to develop that relationship, you have to have the value add of personal development,” Burton said.
Bush shared a piece of life wisdom she often tells her own salespeople at Rodan + Fields: “Embrace the journey. You might not find that success makes you happy; there’s a higher possibility that happiness will make you successful.”
The Influential Women’s Panel discusses the role of female leaders in direct selling.
Exclusive Coverage | Shaklee’s Marjorie Fine Inducted into DSA Hall of Fame | DSEF Circle of Honor Welcomes Elizabeth Owen | 2014 Direct Selling Association ETHOS Award Winners | Roundtable with Direct Selling’s Female CEOs