When David Beats Goliath
No company had more long-term impact on the health of the channel this year than Neora. After a seven-year battle of David and Goliath proportions with the Federal Trade Commission (FTC), Neora emerged victorious in a precedent setting win that will serve as the guidepost for legitimate direct selling companies in the future.
Neora’s litigation experience was a pressure cooker that came with great cost, but Deborah K. Heisz, Neora’s Co-Chief Executive Officer, said the executive team was committed to standing their ground.
“We refused to settle for something that would hurt the people that built Neora with us. It would have been easier and cheaper to settle, but it never even crossed our minds as an option we would consider.”
But Neora’s victory is only part of the story. The company was uniquely suited for this fight because of the visionary way that it was built.
The New Gold Standard
The model Neora launched with is the same one it leads with today. And that model starts with quality products. “We’ve always been focused on bringing exceptional products to market,” explained Co-Founder and President Amber Olson Rourke. “We wanted to build a large, loyal customer base—customers that would want our products however they were distributed.”
“We built a customer acquisition model from the beginning,” agreed Jeff Olson, Founder and Chief Executive Officer. “We knew we had built Neora the right way. I believed the facts and the law would ultimately be on our side.”
Those facts included that customers with no interest in selling were designated that way. While individuals who wanted to sell products or build teams were identified as Brand Partners. Setting up these distinct categories was crucial in the win against the FTC.
While Neora’s landmark win does not provide protections for the entire industry, it has become the new gold standard and sets a clear legal precedent—something that has been elusive until now.
A customer-first approach, in-demand products and clear labels for who is making product purchases is the new template for success and regulatory safety that every other company in the industry will undoubtedly seek to emulate moving forward.
“Having a strong customer base gives you a floor that does not exist if you are only dealing with just business builders,” Deborah shared. “For every new Brand Partner, we get a significant number of customers that continues to grow as the Brand Partner builds a book of business. A strong customer base who loves your products is what leads to longevity.”
Go Time
On this side of the legal victory, the company is eager to switch from playing defense to offense and focus on strategies that will catalyze growth. Investments in its ecommerce experience are priority as is expanding its product line and footprint around the world. The company recently acquired ACN Korea and is transparent that it is eager to look for growth in even more markets in the future, characterizing Neora’s current mantra as Go Time.
“This victory allows us to feel very secure in where we’re going; how we’re going to get there; and the model we’re doing it in,” Amber said. “Our team and our field leadership showed resilience as we endured the trial and all that it entailed. Now, we’re going to be able to take that same team and energy and resilience and apply it to growth. There’s truly no stopping us.”
It’s a sentiment powerfully echoed by Jeff. “I started this company because I wanted to make people better. I wanted to show everyone how to build a company the right way—one that brought value to the marketplace without all the gimmicks and games and fees. The ruling gave that to me. It gave me a louder voice, and it made our model the standard bearer for the industry.”
Grit, Integrity and Determination
It’s no surprise that Neora is a recipient of the Bravo Impact Award. It recognizes companies that take a holistic, measured and incremental approach to growth, innovation and operational integrity and excellence.
Jeff’s mission in founding Neora was to build a company the right way—on a solid foundation—with world-class products and a model focused on customer acquisition. This foundation allowed him to make the ultimate stand for this industry when the FTC tried to challenge him.
Congratulations to Jeff, Deborah, Amber and the entire Neora team on their Bravo Impact Award win.
From the June 2024 issue of Direct Selling News magazine.
