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It’s not too late to pivot in the right direction.

Pivot – 2020’s defining word and a silver lining in troubling times. As individuals and businesses absorb the culture shock and changes associated with living and working through a pandemic, they face new obstacles that require novel solutions. But from crisis arises great opportunity for the flexible and committed.

We’ve watched pivot’s success as medical personnel—regardless of specialty and sometimes emerging from retirement—wage war on COVID- 19. Educators partner with parents to keep students learning digitally. Shuttered restaurants morph into curbside mini markets. Zoom hosts at-home happy hours. Order online, pay online, contact-free delivery… the stuff of life arrives at the doorstep.

Companies focusing on high-quality products, customer acquisition and retention are outperforming those that are more opportunity focused.
—Stuart Johnson, Founder & CE), SUCCESS Partners

While essential workers remain on the job (Everyone is grateful!), millions modify their expectations of what work looks like carving out semi-quiet corners at home. But tens of millions lost jobs, either temporarily or permanently, due to the COVID-19 pandemic and grasp for financial relief through unemployment benefits.

Facing an increasingly digital existence amid rolling stay-at-home orders and staggered re-openings, people and companies are reassessing, asking new questions and looking for innovative life and work solutions. All the while, working from home is legit. This puts direct selling—an industry grounded in the home office—in a unique position to capture this moment. Doing so depends on a company’s ability to pivot to remote customer and distributor acquisition and retention.

An enormous supply of displaced, extroverted, retail salespeople, who need to replace or supplement lost income, exists. Direct selling can be their solution if companies see the disruption caused by the pandemic as an opportunity to pivot to a new 2020 model that embraces the convergence of technology and relationships.

For the past three months SUCCESS Partners has been conducting a monthly survey with 60 leading direct selling companies gauging their month-over-month growth. As of this printing, their results for May 2020 (compared to April 2020) showed the following:

  • At least 10 companies achieved all-time record monthly revenue in May
  • 28 percent remained flat or declined
  • 12 percent showed single-digit growth
  • 60 percent grew by double-digits or more

“Companies focusing on high-quality products, customer acquisition and retention are outperforming those that are more opportunity focused,” says Stuart Johnson, SUCCESS Partners founder and CEO.

And digging a bit deeper tells us why. Six common denominators emerged that helped growing direct selling companies locate a silver lining despite a world in crisis. It’s important to note, these companies had a head start culturally, technologically, etc. but it’s not too late for others to pivot in the right direction.

#1 Common Denominator: Hero Products

What consumers are buying has changed since nonessential retailers shut their doors. In early May, GeekWire reported tax automation startup Avalara found overall U.S. spending relatively flat. But winners and losers emerged. Sports equipment suffered, but home fitness soared 210 percent. School vendors dropped 73 percent, but home learning increased by 209 percent. Online marketing, online pharmacies, home office, health supplements, and cleaning products saw gains.

Consumers are looking for products that work and get their new jobs done in this 2020 world. For Direct Sellers, this translates well for on-brand, hero products that fill marketplace niches and produce tangible benefits.

Hero products with proprietary formulas and high efficacy rates sample well among consumers and sell even in times of crisis. More than discretionary purchases to help a friend with a side hustle, hero products generate repeat transactions. They build loyalty, strengthen brand association, and improve customer experience.

Of the companies that SUCCESS Partners surveyed, the fastest-growing offer weight loss and nutritional products, which jibes with Avalara’s findings. People have time and motivation to boost their immune systems, shed unwanted pounds, and generally improve their health. They look to trusted brands for help.

“Off-the-shelf generic is just off-the-shelf generic, and right now, that heightened awareness makes me more willing to pay for something that looks like it’s got a higher quality or higher efficacy factor,” says Noah Westerlund, senior vice president of business development, SUCCESS Partners.

#2 Common Denominator: Marketing with Purpose

In some locales, scarcity plays a role in consumer purchases. Think household disinfectants, soaps and toilet paper. But something more is at play in consumer spending decisions.

Big Red Rooster, a brand experience company owned by real estate services firm JLL, reports shopping local is top-of-mind for consumers right now. We want our favorite ice cream parlors, olive oil specialty shops and consignment boutiques alive and well at the end of this. We’re even tipping people more than normal, one April survey suggested.

Consumers empathize with their neighbors and want to help their neighborhoods. It’s not a stretch to believe this inclination extends to direct selling’s independent distributors, especially those whose products and brands are marketed with meaning and purpose.

All the hard work to finesse core values, fold them into your branding and effectively communicate your corporate purpose will set companies ahead of the game during crisis. The 2020 pandemic amplifies that effect from both product marketing and corporate brand marketing perspectives.

While weight loss and nutrition sales are accelerating, Westerlund says, “No one is marketing specifically to the COVID situation. But with general awareness at a heightened level and the availability, that’s a match made in heaven for these companies.”

Direct selling companies are tapping into the hearts of their cultures, connecting with existing nonprofits and leaning on their strengths to make a difference. Consumers want to buy from brands that are sensitive to the crisis at hand, as well as people’s health and safety. It makes them feel better about their choices.

Young Living focused on refugee camps and sent $100,000 to the International Rescue Committee. With monetary and product donations totaling half a million dollars worldwide, USANA also teamed with a Utah vineyard to manufacture 28,000 bottles of hand sanitizer and donate them to regional medical and shipping centers, as well as the Navajo Nation. And through monetary, product and distribution support, Mary Kay donated $10 million to help slow the spread of Coronavirus. These gifts impact not only the recipients but the companies and brands who give.

“Companies that lead with the value and causes that define them are finding higher levels of engagement and excitement,” Johnson says.

#3 Common Denominator: Digital Deployment

Retail sales were bleak in March and April, plummeting to 8.3 percent and 16.4 percent, respectively, according to the U.S. Census Bureau, May 15, 2020, advance monthly retail trade report. Coronavirus froze out traditional retailers—a drop of 73 percent for off-line retailers by Avalara’s count.

Consumer spending didn’t disappear. It shifted digital. Companies who grew were poised to fill consumer needs online.

Direct selling’s highest growth companies had digital deployment strategies up and running to clear social distancing hurdles and capitalize on captive audiences, flush with time and ready to pay attention. Efficient online customer acquisition, distributor recruitment and retention platforms accelerated growth.

Young companies created with this convergence of technology and relationships in mind had the advantage over traditional shoulder-to-shoulder efforts. Digital platforms eliminate the need and risk of in-person contact because mobile apps simplify sharing, sampling, prospecting, following up and connecting people in digital conversations. The right functionality and features communicate, connect and convert customers and distributors alike.

SUCCESS Partner’s NOW app is one such e-commerce game-changer. Westerlund says, “It focuses on the connection between distributor and customer. All of our marketing automation and drip campaigns are driven back through the distributor so that personal connection is always first.”

“I don’t see the industry ever going back to the old school way of building. It’s not because people don’t enjoy getting around people. That will always be a part of it. It’s because we found out we can do this in a much more efficient manner and a lot cheaper,” says Andy McWilliams, CEO, RevitalU.

“What’s great about this technology and these programs is they aren’t necessarily difficult to spin up from an operational and technology standpoint,” Westerlund says. “But you’ve got to look at how it plays within the compensation plan. How does it play with our culture as a whole? Are we going to be able to fit this in, or will it be at odds with all that?”

Cultural aspects of this pivot take more time, but the pandemic affords people time.

#4 Common Denominator: Community & Connection

Sing praises to technology! The final three common denominators rely heavily on it. Growing companies excel at creatively bringing people and messages together.

Social distancing, by its definition, is isolating, and for good reason. But loneliness creeps in when we’re deprived of human-to-human contact. Maybe you’ve seen the online meme asking introverts to check on their extroverted friends?

All people need connection, recognition, purpose and community, especially now. McWilliams goes live on Facebook from home daily. “Is there a way we can help and bless them? Something we can do to fill a gap that may or may not have anything to do with making money? No matter what, we do it because it’s the right thing to do,” he says.

I don’t see the industry ever going back to the old‑school way of building…because we found out we can do this in a much more efficient manner and a lot cheaper.
—Andy McWilliams, CEO, RevitalU

MONAT Founder Lu Urdaneta facilitates group virtual hugs via Zoom and powers up live every Wednesday to talk to distributors about routines, daily calls to action for team members, tips for staying sane during quarantine, and practicing gratitude. Noonday Collection hosts light-hearted Zoom and Facebook Live events offering a respite from quarantine boredom, product giveaways, and stories from C-suite execs, artisans and distributors.

Compelling, uplifting stories push aside fear and anxiety to make room for hope, belief and gratitude. Now is not the time to peddle a side hustle. Instead, help your people combat isolation. “That’s a huge part of our industry that can really help the world right now. I don’t think enough people are recognizing that,” McWilliams says.

#5 Common Denominator: Virtual Events to Remember

As Coronavirus challenges conventional corporate events, companies pivot to the virtual world. They’ve embraced aggressive virtual meeting schedules to give people structure, something to look forward to and plug into easily.

Virtual novices need not worry. Forgiveness is yours now as people soak up behind-the-scenes authenticity. It affords newcomers time to learn through challenges and create positive experiences.

Here are tips to get the most from virtual events, according to EventMB, an online events industry trend resource and part of Skift.

  • Offer an introductory tutorial video to participants
  • Provide incentives to engage online
  • Unite behind a common purpose

Total Life Changes turned to Zoom for training and to recap of a Free to Join promotion. USANA hosted Zoom speaker events and shared short pandemic-related videos about combating loneliness, and on meditation, mindset and selling over the phone. Scentsy busted out the fun with imaginative socially-distanced Zoom home parties. One energetic and costumed consultant spoofed Sherlock Holmes during a scavenger hunt party, still others played Zoom Bingo. Both kept orders flowing and added some silly to a stressful time.

As the pandemic drags on, companies likely face replacing large-scale, in-person events with virtual ones. When that happens, EventMB says at cancellation announce the virtual event simultaneously, then get creative and deliver value in a virtual format.

Try using digital live scribing with an illustrator to punch up entertainment value and takeaways from panel discussions. Host live games or competitions with product demos, then draw people to social media pages for the winners. Look at creating immersive environments to replace traditional convention settings. Virtual conferences can host a networking lounge for attendees to chat and interact, and musicians jump at the chance to entertain virtually.

Westerlund says the benefits of pivoting virtual can be immediately tangible, as one direct selling CEO recently found with a quarterly virtual event. The result: 2-3 times the attendance and 3-4 times the buying. Attendee overhead was nil, so they spent on product. While direct selling companies have lamented the ROI of conventions for some time, the pandemic may be a tipping point.

“What happens when it goes back to ‘normal’? Are people still going to be as excited about the virtual event, or are they just excited about them right now because that’s all you can do?” Westerlund asks. “That question lingers. But here’s what I know. They are certainly going to find out.”

#6 Common Denominator: More Content, More Communications

A steady stream of on-message, mission and value-driven content that is easily deployed across multiple platforms and devices is best practice now. Fill a void, simplify a field process, and share product stories and testimonials to strengthen brand ties. In times of crisis, people want and need more communication.

Strategy consultant, Brett A. Blake says, “Update even if there’s no update. Uncertainty fuels anxiety. The more you communicate and share, the less chance there is to develop an information vacuum within your team…Maintaining transparency through a crisis with frequent updates is the ultimate expression of good faith, empathy, and genuine concern for your team.”

Hope is fuel for your field, so communicate that. Focus on your most relevant products or on the benefits of having a second home-based income. Give them some headspace during this high-stress era by simplifying systems and deploying sampling platforms. Break through the 24/7 COVID noise with value offers like free enrollments, deep discounts, purchase promos or free shipping.

As states begin lifting stay-at-home orders and employees return to headquarters, work will look different for the foreseeable future. Maybe capacity limits, health concerns or parenting obligations will increase your numbers of remote workers. Stress will remain high, and so too will the need for communication. Remember, ask employees if they are OK, ensure they have what they need, and act quickly to help them stay productive. Asking in that order makes all the difference. DSN

https://www.directsellingnews.com/2020/07/06/25174-2/

Q2 Financial Analysis

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Possible Inflection Point for Direct Selling Index; Recent Top-Line Deceleration Reversing.

One data point does not a trend make, but in a sharp reversal, our proprietary index of the publicly traded direct stocks has sharply outperformed the broader market as measured by the S&P 500 index through the first two months of the 2020 Q2. Through May 31, the quarter-to-date performance of our index is up a large +59.4 percent versus the +17.8 percent gain in the S&P 500 over that period.

To be sure, the index is coming off of record low valuations in March. From its recent peak in September 2018, our index had fallen (58.3 percent) through March 2020. While the earnings outlook for the group had declined (15.2 percent) over that time, the real driver to the dramatic stock under-performance was that the multiple that the stock market applied to those expected earnings dropped from 20.4x in September 2018 to 10.3x as of March 2020.

The COVID-19 outbreak has brought to bear two additional advantages for many of our direct sellers vis a vis the GIG players that are unique to the pandemic.

To put that in context, in the 20+ years that we have been tracking the group, it only traded at a lower multiple on expected earnings twice before. The first time was during the tech bubble in early 2000 when investors were selling anything that wasn’t technology, media or telecom (TMT) to chase those stocks, and the second time was during the Great Recession of late 2008 / early 2009 when the discount rate on stocks with large global exposures, which these companies tend to have, went through the roof. This time, it was the large exposure to China, as the media and regulatory environment soured for the group there in 2019, which then rolled into added uncertainties surrounding the coronavirus pandemic over the winter of 2019-2020 that drove valuations for the group back to the lower end of historical ranges.

Year-to-date, our Direct Selling index is down (1.9 percent), slightly outpacing the (5.8 percent) declines in the S&P 500 through the end of May. Interestingly, the P/E ratio for the group has merely returned to be close to 2019 year-end levels at 15.1x, while the P/E ratio for the S&P 500 has expanded to 22.1x from 18.3x despite the drop in the level of the index due to the sharply reduced outlook for market’s earnings expectations. So far this year, expected earnings for the S&P 500 have declined (21.8 percent), while for our index, they have only declined (2.1 percent). Therefore, given that the P/E ratio for our index is at a 31 percent discount to the market, very close to 10-year lows, at a time where relative earnings are holding up better, we could see stock outperformance being sustained and that we truly are at an inflection point.

COVID-19 Outbreak Fleshes Out Two Advantages for Many Direct Sellers vs The Gig Economy

Throughout our Battle for the Side Hustle series, we have been highlighting many of the similarities and differences between the direct selling business model and the models put forth by the recently emerging GIG players, which also offer microentrepreneurial platforms for individuals to earn income while providing workplace flexibility.

But the COVID-19 outbreak has brought to bear two additional advantages for many of our direct sellers vis a vis the GIG players that are unique to the pandemic: 1) its direct-to- consumer business model where products are shipped directly to the end customer without social interaction and 2) the fact that many of the larger direct sellers have nutritional product offerings, demand for which have only escalated with the global health care crisis. Below is some commentary from recent quarterly conference calls:

“…in a lot of countries, we’ve seen an increase in the immunity portion of our portfolio for those particular products as people start thinking about staying healthy…”

—Alex Amezquita – Herbalife Nutrition SVP Finance Strategy and IR

“…we definitely saw a pickup in some of these products that were designed to support immune function…”

—Doug Hekking – USANA CFO

“We also experienced stronger-than-anticipated demand for our nutrition supplements…”

—Ritch Wood – Nu Skin CEO

“…our business model, our route to market, our healthy product portfolio, our specific immunity products, and our direct sales to consumers and direct delivery to consumer homes couldn’t be more opportune.”

—Gregory Gould – New Age Beverages (Noni) CFO

To be sure, the greatest adverse impact from the global pandemic will likely come in the Q2; Herbalife Nutrition has already stated that its April Volume Points were down (1 percent), which is a deceleration from Q1 trends, although in our view it was very good performance under the circumstances. Additionally, there are added compliance issues as companies make sure that there are no unfounded claims being spread by distributors with regard to the pandemic; the FTC very quickly sent out warning letters to 10 Direct Sellers (none mentioned here) warning them of potentially improper product and business opportunity claims surrounding the coronavirus.

Meanwhile, the larger GIG Economy players have been hit hard by social distancing guidelines. Ride-share concepts Uber & Lyft announced large COVID-19 related layoffs in May, and the property-share concepts Airbnb and Vrbo have been decimated by cancellations and as customers also fume about refund policies. Conversely, after initial declines as its corporate lunch delivery business dried up with the move to work from home, GrubHub has seen a net tailwind from COVID-19 with restaurants moving to take-out service only and as consumers shelter in place. The impending shakeout in the foodservice industry remains a wildcard as restaurants begin to either re-open for in-house service or simply close permanently due to the financial stress of being closed for several months and then not being able to maximize their eat-in capacity.

Q1 Organic Sales Growth Shows Sequential Improvement, Reversing Recent Trends 

That being said, we do expect a deceleration in Q2 results as the companies report their first full quarter under the new COVID-19 normal. However, we are inclined to look through that and focus on the resumption of improving growth trends in the 2020 second half, and we note that our earnings forecasts already assume very conservative assumptions for Q2 results. Since on balance estimates either stayed the same or went up following the Q1 reporting cycle, we believe that the market and our estimates are adequately conservative in Q2 expectations.

The key drivers behind our positive outlook for our Direct Selling Index in the 2020 2H are:

a) the landscape in China has reversed over the past year to now being quite favorable for the nutrition names there

b) the names in our index each offer wellness products, which should continue to be quite attractive during the current global health care crisis, and

c) the micro-entrepreneurial opportunity offered by these platforms should become increasingly attractive as we enter a global recession and potentially witness unprecedented unemployment rates

Therefore, we believe we could very well be in the early days of the next sustained period of outperformance for the group. DSN

Douglas M. Lane, CFA, is a securities analyst with more than 20 years of experience covering companies that employ a direct to consumer business model. He leads a boutique equity research firm, Lane Research, focusing on those companies. Please visit www.laneres.com. He can be reached at doug@laneres.com.

Direct Selling Stocks’ Performance During Pandemic Brings Optimism for Industry

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Direct selling stocks continue to outperform the Dow Jones Industrial Average (DJIA) amid the current pandemic environment*.

Insights from investment banking and business development firm Transformation Capital show that both large-cap and small-cap direct selling stocks have continued to exceed financial expectations since early March, when the coronavirus began to have an economic impact on businesses.

“While recent performance has been impressive, we believe that, if combined with stable, or upside market action, there could be additional room for the leading direct selling stocks to run,” said Stuart Johnson, CEO of Transformation Capital. “As businesses return to normalcy (or a new normal), we believe there is reason for optimism and remain bullish on the industry as a whole.”

 

Large-Cap Stocks

The DJIA has recorded a decline of 3.33 percent since March 1, following a slight increase of 1.7 percent during the month of June. By comparison, Herbalife Nutrition, Ltd. (NYSE: HLF), Nu Skin Enterprises, Inc. (NYSE: NUS), Medifast, Inc. (NYSE: MED) and USANA Health Sciences, Inc. (NYSE: USNA) are all exceeding financial expectations.

NUS has more than tripled since its mid-March lows, HLF has nearly doubled and MED is up 167 percent. USNA, despite a June decline, remains up 61 percent from its mid-March lows.

  • Medifast emerged as the clear leader of the group during June, after rising nearly 37% during the period, and now stands 73% above its February closing price.
  • Nu Skin rose slightly during June (2.8%), continuing a strong trend that has seen the stock increase by 56% since the beginning of March 2020.
  • Herbalife increased 2.6% during June and has now increased by 31% since March 1.
  • USANA declined by 13% in June; however, the company remains positive for the subject period and continues to outperform the DJIA.

Small-Cap Stocks

Among smaller capitalization stocks within the direct selling industry, all but one have continued to outperform the DJIA during the subject period.

  • Tupperware Brands Corporation (NYSE: TUP) was a standout during June and surged early in the month, on strong upside volume, before pulling back and ending the month with a gain of more than 45%. Since March 1, TUP has increased more than 75%.
  • Natural Health Trends Corp. (NASDAQ: NHTC) has been the leading performer among the small-cap stocks during the period, rising more than 79% over that time and more than doubling since its mid-March low.
  • Mannatech (NASDAQ: MTEX) traded generally higher for the majority of the month, before declining over the course of the last week following the announcement that the company’s $5 million dutch auction tender of offer was successfully completed at $17 per share. The successful tender offer reduced the company’s shares outstanding by approximately 12.31%.

*defined as the period beginning March 1

The Rise of Virtual Events

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Like most people, direct selling executives are crossing out travel and large in-person gatherings from their calendars. For an industry known for its relational appeal, eliminating the face-to-face factor should be crushing. But instead, many executives are reporting that they feel more connected to their teams than ever before and are experiencing record engagement.

“I’ve been involved in more field events in the last two months than I have been since I started the company in 2014,” says MONAT President Stuart MacMillan. Connecting virtually has become part of the daily workflow for MacMillan and many direct selling executives like him, as their teams and distributors take part in trainings while experiencing the benefits of connecting from home for both small- and large-scale events. “I still don’t believe there’s any replacement for face-to-face, and our people are itching to get back together—both employees and the field,” MacMillan says. “But I think what we’ve learned is that between those opportunities to get together, there are better ways to do this.”

Increasing Engagement with Function and Fun

This shift to virtual has opened the event doors wider, allowing people who would normally be limited by family obligations or financial flexibility to participate. For SeneGence Founder and CEO Joni Rogers-Kante, virtual events have drastically impacted the company’s attendance numbers. “Only a percentage of distributors go to our events, and ours was never a huge percentage,” Rogers-Kante says. “But we have five times more distributors than we have ever had at a single seminar because it was online, and they just got to sit down and login.”

The SeneGence virtual event sought to emulate a lot of the function—as well as fun—of a live event by passing out virtual awards that instantly appeared across social media channels as names were announced, conducting drawings and shipping prizes to distributors’ houses. While their next company-wide in-person event has been postponed, the SeneGence team is already implementing plans for a conference that will take place in Tulsa. “We think it will be the largest event we’ve ever had because people are so excited to get back together, and we have so many new distributors who can’t wait to actually physically show up at a SeneGence event. We just know it’s going to blow everything we’ve done out of the water.”

“We have five times more distributors than we have ever had at a single seminar because it was online, and they just got to sit down and login.”
—Joni Rogers-Kante, SeneGence Founder & CEO

10 Cents on the Dollar, 10 Times the Reach

Twenty-four hours after a recent Mannatech virtual live event, the entire 12-hour event was available for replay. The 6,500 unique visitors, representing a ballpark of 8,000 to 12,000 viewers who watched the virtual event live, quickly multiplied as people shared the content and participated after the event had ended. A traditional Mannatech event hosts 1,200 to 1,500 people.

“For one-tenth of the expense, we were able to connect with six to ten times the number of people we would have connected with,” says Mannatech CEO and President Al Bala. And although event product sales were one-third of the normal amount, Bala says it was offset by the savings in product transport to the event and the convenience of shipping it directly to consumers’ homes. “It was more efficient and definitely more profitable sales than we would have had normally.”

“Even though we aren’t all together, we see you!”

“Going virtual” has a simple ring to it, but executives in the driver’s seat know the challenging behind-the-scenes experience of sifting through broadcasting options and platforms. Arbonne, who planned to launch 13 new products at their live convention this year, suddenly had only a fraction of their usual preparation time to devise communication strategies that would build excitement while playing well through the screen. Social media, which has always assumed a role at Arbonne events, was now critical, and the company leaned hard into these social integrations. To allow the executive team space to focus on engaging with attendees through the chat function, much of the content was prerecorded.

“Virtual GTC 2020 was created in about four weeks, and because of the incredibly pressing deadline, we absolutely learned as we went,” says Arbonne Senior Director of Communications Kristen Gruber. Gruber’s social media team developed teasers, quizzes and other interactive content that posted throughout the event. “This provided a level of engagement to our audience to really say, ‘Even though we aren’t all together, we see you!’”

Despite the fog of uncertainty during the first few weeks of the stay at home orders, LegalShield dove headfirst into creating virtual experiences and may have been the first direct sales company in North America to pivot to an entirely livestreamed international convention on April 4. When it became clear that their planned live event would not take place, the company transformed the auditorium in their Oklahoma headquarters into a full studio with only three weeks’ lead time. From there, they offered 16 hours of training content and recognition from over 40 field leaders and live hosts to more than 10,000 viewers. In addition, more than 5,000 associates joined their two-day Zoom Breakout Trainings before the larger event.

“For one-tenth of the expense, we were able to connect with six to ten times the number of people we would have connected with.”
— Mannatech CEO & President Al Bala.

“Our field leaders are extremely creative in using Zoom as a recruiting and training platform,” says LegalShield Network Division President Don Thompson. “They use breakout rooms to host associates and their guests after a presentation for a Q&A session and for associate interaction.”

To not only survive, but thrive in this unprecedented environment, LegalShield’s CEO Jeff Bell has cast a vision for the company as a “digital disruptor” who uses technology to fulfill their company’s mission. The focus for the company is not on their limitations, but rather on how they can innovate and improve and use the tools available to spread their message and keep the field engaged and excited. “We are not at the level of Netflix or CBS,” Bell says, “but we are getting smarter and more successful in producing engaging content.”

As companies expand their live-streams to their international markets, the existing cultural and language barriers will have to be considered. Elepreneurs Chief Impact Officer Garrett McGrath, who also serves as President of the Association of Network Marketing Professionals, is watching as these virtual events begin to take shape on a global, multi-lingual scale. Although these broader events are more complex, McGrath is encouraged by the existing platforms that can do the heavy lifting for the direct sales industry.

Vimeo, a tool the ANMP relies on for its broadcasts, is paired with remote translators who use the Interactio app—which McGrath describes as a flawless application—to tap into the livestream and recreate the content in their listeners’ language.

“All you have to have is a good originating broadcast quality, and that becomes the place from where everybody views the actual convention, even though we’re bringing people in from all over the world,” McGrath says.

Caution: Challenges Ahead

Everyone is more than eager to get back to normal and industry leaders are at the front of the line, hurriedly trying to recreate their office environment from thousands of satellite home offices scattered across the globe where their leaders live and now work. But as the world has quickly discovered, working separately but together has come with its own set of unique challenges, and large virtual events are not immune to these foibles.

Security has been a hot topic for Zoom users (LegalShield reported instances of “Zoom Bombers” during their first few training sessions before password protections halted any further disruptions), but for other, more complex broadcasting platforms, hacking isn’t as much of a concern. The security concern, according to Katapult Events President Erik Johnson, should be privacy. “I wouldn’t put anything out on a stream that you wouldn’t want the world to see,” Johnson says. “Someone at home is likely recording it whether you want them to or not, and it’ll be on YouTube by the end of the day.” For companies who live and die by FTC compliance, it’s a stern warning for leaders. Even if a distributor thinks they’re in a private virtual room with only top-tier leaders, there is great potential that their words will become public.

“Our field leaders are extremely creative in using Zoom as a recruiting and training platform. They use breakout rooms to host associates and their guests after a presentation for a Q&A session and for associate interaction.”
— LegalShield Network Division President Don Thompson.

There will also be a fluency issue for older distributors who aren’t used to virtual interactions and for whom these new changes will require a steep learning curve. “I feel sorry for companies that are older and already have their culture set in stone because they’re going to have to switch at some point to this,” RevitalU CEO Andrew McWilliams says.

Even though virtual events are notoriously less expensive than their in-person counterparts, going too cheap can be very obvious. “A lot of people think they can just hop on Zoom and be fine,” says Johnson, who now produces SeneGence’s virtual events. The result of a frugal presentation, however, is fuzzy resolution, glitchy streaming and a visible mouse pointer on shared screens—not the high-quality presentation multimillion- and multibillion-dollar brands should attach their names to.

For the April SeneGence virtual event, Johnson utilized Vimeo for live streaming at the Enterprise level and set up studios at the Oklahoma and California SeneGence offices. With his crew and all of their gear at both locations, they connected the two offices live on camera for a high def broadcast that looked like prime time tv.

As physical events reemerge in the months to come, Johnson warns that virtual events should never be just a recorded version of the live event. Instead, he encourages leaders to plan for physical and virtual hybrids. For example, his crew is building a side stage that is reminiscent of the ESPN Sports Desk for the host of the virtual watch party at one of his client’s upcoming in-person events. Even though one large event will be happening, two different audiences with different attention spans will be watching. By having a dedicated host, he’ll be able to accommodate both.

Facebook Live Fright

As leaders who are used to delivering speeches from stages in loud rooms begin broadcasting from their kitchen table or home office to an audience they can’t see, they’re discovering that stage fright and Facebook Live fright are two different fears and require two different skill sets.

McGrath described his feelings about hosting an eight-hour live event as somewhere between nerve-wracking and exciting. He and wife Sylvia, Elepreneurs Chief Experience Officer, introduced live speakers and announced prerecorded segments and then watched comments and emojis unfold in real-time over an eight-hour stretch.

The stamina required to create these engaging content segments back-to-back for that length of time is similar to expecting sprints in the middle of a marathon. “The biggest concern you always have is: can you keep people’s attention for 12 and a half hours?” Bala says.

But it’s not just the audience’s attention that leaders are concerned about. “I don’t think you can underestimate what it does to the speaker’s energy to talk to a crowd,” Bala says. “When you’re a speaker, it engages you at a different level. You can’t replicate that virtually.”

An Attention Shift

Change can be a dirty word in an industry rooted in tradition, and that’s why McWilliams is choosing to embrace this time of disruption. As people readily accept digital platforms out of necessity, McWilliams says this temporary shift to virtual will now be permanent for his young organization. “I’m never going back,” he says. “It has been the most cost-effective thing we’ve ever done.” In April, RevitalU experienced double-digit percentage growth over March. After their first major virtual event on May 2, the company was up almost 55 percent over April by May 7. “It does not feel like a blip on a radar screen,” he says. “What it feels like is a shift of attention.”

These live virtual events with openly visible comment boxes bring with them a lack of control, but the effect, McGrath says, is unparalleled. “We were very aware that people don’t want a presentation; they want a conversation,” he says. “There’s a risk with a conversation because you don’t know what the other person is going to say, but that’s why people show up: because it hasn’t gone through the corporate whitewash and hasn’t been overly sanitized. It’s spontaneous and real.”

“We were very aware that people don’t want a presentation; they want a conversation.”
– Garrett McGrath, Elepreneurs Chief Experience Officer

In the short term, physical events aren’t possible, but even when the restrictions from the global pandemic are lifted, some executives are expecting a slow return as people remain gun-shy about close social interaction and even handshakes. McGrath says the question of when things will go back to normal is the wrong question. “The real question is, between now and then, can we document a plan that people can rely on as proven to work today?”

Is Virtual Really a Success?

There is no industry-wide metric for success when it comes to this new switch to virtual. Still, as many leaders face pent up demand and anxiety swirling around the new normal that has been thrust upon them, the measurement for success will depend upon each company’s specific goals and missions.

For affiliate-focused companies, comment engagement on a Facebook Live event could provide a gauge for distributor reach. Many executives are now reporting a sharp increase in sales during and after virtual events—when distributors would usually be socializing or traveling home—and are using that as their new benchmark for success.

Virtual can’t mimic the adrenaline rush of a packed arena, but industry leaders are approaching this new playing field with cautious optimism. For now, there is convincing emerging data that pivoting to virtual is doing little to harm the health of direct selling companies, and might actually be making a once-in-a-lifetime paradigm shift that offers a glimpse into where the future of the industry might be headed.

“This is here to stay,” Bala says. “It’s just going to become another tool in our toolbox to create that engagement with our associates and for associates to create engagement among themselves.” DSN

 

VirBELA: The New Virtual Headquarters

Virtual events may be booming, but it will be finding ways to digitally recreate the ordinary daily interactions that will be key for direct selling to weather this storm of isolation and uncertainty. RevitalU has found its solution through VirBELA, a technology platform that allows companies to create a virtual headquarters. With VirBELA, people can come together formally for events, like a conference room where they’ll hear keynote speakers, as well as informally, like in virtual hallways between sessions where they can start up casual conversations.

Through avatars and multi-dimensional rooms, users can interact digitally in a personal way that doesn’t create the Zoom fatigue that comes with endless video chats. “It gives you autonomy to interact with whom you want to interact with and go where you want to go,” says VirBELA Founder and President Alex Howland, Ph.D. “When you read a book, you’re not paying attention to the black and white words or pages; you’re getting immersed into the book. The same thing happens with VirBELA. Your brain starts to feel like you’re physically in the room with colleagues.

Glenn Sanford, eXp Realty Founder and CEO, has been using VirBELA as his company’s virtual campus since 2016. During that time, he grew his number of agents from 900 to 29,000 from the virtual headquarters that he mans from the casita over his garage. In April of this year, his success with the virtual platform led him to join the VirBELA team as the company’s Chief Strategy Officer so that he could extend his knowledge and experience with simulated campuses to other business leaders navigating these unprecedented waters.

Sanford offered advice to McWilliams, one of the newest CEOs to become an adopter of the VirBELA technology, by explaining that the simulated campus will only work if McWilliams insists that people meet him in his virtual Planet RevitalU office, rather than picking up the phone. “We have an office, and I don’t care if it opens back up,” McWilliams says. “We’re going to make the physical office voluntary. For our business practices and working together, it’s going to be done online.”

 

Virtual Event Tips

Take your virtual event to the next level with these tips from production expert and consultant to the direct selling industry, Erik Johnson of Katapult Events.

“How good your first event is will determine if they buy your next.” — Erik Johnson, Katapult Events President

  • Forget Zoom. Use Vimeo to live stream.
  • Prerecording some content eliminates the potential for user error, streamlines transitions and trims the boring out of stories.
  • Use permissions to put events and event extras behind paywalls or passwords. Erik uses Phinkific.com to preserve special VIP treatments, like a Q&A with the keynote speaker, for specific distributor ranks and above.
  • Hire a professional. Picture-in-picture, title animation and HD screen shares matter.
  • Show others what they’re missing. Even if you’re charging for a virtual event, share a short segment onto Facebook Live for things like new product announcements. At the end of the segment, offer viewers the opportunity to buy access to the rest of the event. It’s a double bang for your production buck and a quick upsell.
  • Everything has to be faster. What might have taken you four minutes to say on a live stage, should take you 90 seconds when speaking to a virtual audience.
  • Shoot with two cameras. A simple wide shot and a close up will give your broadcast movement and will be more likely to hold attention.
  • A high-quality mic is just as important as good video. If they can’t hear you well, they will leave.
  • Don’t be afraid to hire an outside emcee. Professional talent can take your event from stagnant to funny, drive the energy of the show, and be in charge of throwing it to different hosts—chief executives, distributors—to keep the show moving.
  • Rehearse, rehearse, rehearse. Get rid of the extra stuttering and “um” sounds and give your team the chance to feel the flow of the event.
  • Double-dip your filming days. When broadcasting virtual events, you’ll likely have the members of your executive teams and an elaborate, staffed studio all in one place. Use this opportunity to film upcoming product launches, expand your expert interviews and update your opportunity presentation.

 


Five Ways to Simplify Your Pivot to Virtual

  • Don’t confuse virtual with automated. Even though there are no smoke machines and spotlights, this is not a set-it-and-forget-it type of environment. Building an interactive experience is key to getting virtual events right.
  • Prepare your team. Expect worst-case scenarios and plan how they’ll be addressed on the spot to protect your brand.
  • Choose your comment comfort level. Instantly visible, unfiltered feedback may complement the tone of a keynote address, or it might exacerbate the awkwardness of lackluster attendance. Pick an audience participation level that matches the event vibe.
  • Tap into existing partner platforms. Seamlessly charge registration for large events and automatically capture potential customer contact information. (Eventbrite, PayPal, Pardot and HubSpot are good leads for these functions)
  • Deliver an in-person experience. Pick two or three elements of your usual in-person events that can be creatively replicated while apart. If distributors have come to expect a lavish lunch break at events, send restaurant or food delivery gift cards to registrants ahead of time. These small gestures will build community while making a memorable impact.

Le-Vel Promotes Sophary Ly to Executive Vice President & CFO

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Le-Vel announced the promotion of Sophary Ly to executive vice president and chief financial officer, effective immediately.

In her new role, Ly will help oversee the company’s operations, accounting and financial teams. She will continue to report to co-CEOs Jason Camper and Paul Gravette. Ly has worked as chief financial officer for Le-Vel since October 2015.

“Sophary has one of the strongest work ethics and overall skillsets in the entire direct selling industry,” said Camper. “She’s been a tremendous asset to our organization, and we’re confident that under her leadership she’ll guide us to even greater success.”

Ly has more than 27 years of experience in computerized private and public accounting systems for service, manufacturing, direct selling and wholesale industries. Prior to joining Le-Vel, she served as vice president of Finance and Human Resources for Dallas-based Paciguo Management, LLC, a privately owned, multi-unit manufacturer of Italian ice creams; and as chief financial officer at a direct sales company specializing in nutritional supplements and skincare products, where she spent 11 years.

“I’m looking forward to working with our teams and continuing to make improvements for the benefit of our incredible Brand Promoters and customers around the globe,” Ly said. “Throughout my career, I’ve learned that it’s not the quantity of the people around you, it’s the quality, and I’m honored to work with outstanding people at Le-Vel—not just on my teams, but in this community of Thrivers who have dedicated themselves to showing others the path to better health.”

 

Nu Skin Reports Estimated Q2 Revenue Above Previous Guidance

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Nu Skin Enterprises reported it estimates revenue for the second quarter of 2020 to be approximately $603 to $608 million.

The company previously forecasted second-quarter revenue of $520 to $550 million.

“We are pleased to report that our expected revenue for the second quarter is well ahead of our previous guidance, driven by strong global customer growth with particular strength in the Americas and Europe,” said Ritch Wood, chief executive officer. “The trends we are seeing are a credit to the adaptability and hard work of our global sales force and the enduring value of our products. Nu Skin’s investments in technology and our commitment to enhancing the company’s digital capabilities have been a critical driver of performance and business continuity in the second quarter, with online transactions accounting for more than 80 percent of volume.”

Nu Skin will release its full second-quarter results after the market closes on Wednesday, Aug. 5. The management team will host a conference call with the investment community later that same day at 5 p.m. ET. The webcast of the conference call, including the financial information presented, will be available on the investor relations page of the company’s website at ir.nuskin.com. A replay of the webcast will be available at the same location through Wednesday, Aug. 19.

 

USANA Malaysia Donates 1,000 Food Packs to Aid in COVID-19 Relief

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USANA Malaysia and the USANA Foundation recently donated 1,000 food packs to 1,000 families in need during a charity drive on June 13 in Jalan San Peng.

“The COVID-19 pandemic has been so destructive all over the world, and all of USANA’s markets have really stepped up in a big way to help those in need,” said David Mulham, USANA’s chief sales officer. “USANA Malaysia’s generous donation will go a long way to helping families that have been so negatively affected by the virus.”

The charity drive was done in partnership between USANA Malaysia, the USANA Foundation and the Suriana Welfare Society, a registered Malaysian Non-Government Organization focused on child protection. Since 2011, it has been involved in protecting the rights of children who have been subject to abuse, abandonment and neglect.

Assistance was also received from several teams of USANA Associates. The teams loaded trucks with packs of food to be delivered to the needy families, all while practicing good social distancing habits. Each pack contained essential food items such as, rice, noodles, biscuits, canned meats and healthy beverages. The total donation amount equals MYR 117,782. The company also made an additional monetary donation of MYR 33,000 to support the cause.

“The call went out from the government to corporations in Malaysia to help those who have been impacted by COVID-19, so we got right to work finding out how we could help,” said Vivienne Lee, USANA’s regional vice president of Malaysia, Singapore and Taiwan. “There is a serious need for food supplies right now in Malaysia, which is why we partnered with the Suriana Welfare Society to help distribute the food packs. We are very grateful for the help provided by the Suriana Welfare Society, USANA Malaysia’s employees and all the USANA Associates who came out to donate their time.”

 

ARIIX Partners with Shannen Global Indonesia

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ARIIX announced its merger with Shannen Global Indonesia, a network marketing company that creates beauty products for the empowered woman.

The merger will provide both ARIIX and Shannen Global Indonesia Representatives a broader global footprint to grow their international businesses and access to more diversified product lines. With the new partnership, ARIIX now has a presence in 22 markets around the world.

“ARIIX has been looking for the right opportunity to enter the Indonesian market, and after meeting with Shannen’s founders and executives, it was clear the collaboration between the two companies was exactly what we were looking for,” said ARIIX Vice President of Business Strategy Brandon John. “Shannen has incredible momentum and has reached amazing growth milestones in a short period of time. Together, we aim to continue that momentum through this strategic alliance.”

Founded in November 2018, Shannen Global Indonesia achieved sales revenue of $40 million in just 20 months. The winner of the 2019 Star in Cosmetics Product Award, Shannen Global Indonesia offers 17 beauty products across its four product lines. The products will be welcomed under the ARIIX House of Brands and be available to ARIIX Representatives as the registration process completes in each market.

“Since the founding of Shannen Global, we have been passionately committed to helping women highlight their natural beauty through industry-leading beauty products,” said Shannen CEO and Founder Faradina Dwi Safitiri. “Combined with that goal is to help women step into their personal power to achieve financial success. This partnership with ARIIX enables us to provide a global opportunity for our Representatives and share the Shannen mission on an international scale. We are both excited and honored to be working with ARIIX.”

 

How World’s 50 Most Popular Brands Survived the Pandemic

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(This article appeared on talkwalker.com.)

The coronavirus and the following economic turmoil has shaken businesses to the core. When the dust settles, and we adjust to the ‘new normal’ there will be brands that hold strong, and those struggling to survive. In this blog, we look at how the crisis impacted the world’s 50 most popular brands, and why that love could be the key to their survival.

THE BRAND LOVE STORY

In our latest report, the Brand Love Story 2020, we analyzed 781 global brands to identify the 50 most loved brands on social media. Brand love is an effective strategy for engaging your audience, improving advocacy and loyalty.

But now, we’re going to look at how vital it is for cushioning your brand during a global crisis, and why having a strong relationship with your community ensures you can maintain fiscality during an economic downturn.

THE WORLD’S 50 MOST POPULAR BRANDS

When we look at our most loved brands, we can see that coronavirus mentions peak on March 23.

This peak was when countries around the world engaged lockdown procedures, with a slight delay as brands took the time to adapt to the changes. To look at the impact of coronavirus on these brands, we’ll take a look at data from two periods:

  • Before coronavirus. July 1 2019 to December 31 2019. A 6-month period before COVID-19 struck.
  • During coronavirus. March 1 to May 31. A 3 month period when the implications of COVID-19 were fully felt. During that time, at least 10% of total brand mentions per week included mentions of COVID-19 related topics. Before that date, it was 3% maximum.

The tone of conversations changed “during coronavirus.” Joy was less prevalent in the 2020 mentions, with a drastic rise in disgust and fear.

Across the world, conversations became more somber, for both these loved brands, and overall. The pandemic, economic woes, isolation, job losses, and deaths, changed how consumers talk about brands. And how brands talk about themselves.

And yet, the love these brands previously built for themselves shone through. The peak on March 23 was vastly positive.

With many of those mentions packed with love related keywords. Yes, there was a crisis, and these brands had to react, but overall, they were able to mitigate the damage. And actually receive additional praise for their handling.

Take a look at some of the most loved brands to see why…

 

HOW LOVED BRANDS ARE STAYING AHEAD OF THE COMPETITION

Why the love for Nostalgia is boosting Lego’s success

Lego was our most loved brand at the end of 2019, with 2020 still bringing them positive results. With many people in lockdown, they turned to Lego to provide entertainment for all the family.

Lego averaged 860,000 mentions per month “before coronavirus,” but 983,000 mentions per month “during coronavirus.” An increase of 14%.

This increase in mentions ties to an increase in demand. Sales of the construction toy peaked on eBay.

Comparing the two periods, both negative and positive sentiment levels increased. Negative increases are to be expected, as people increased discussions about a negative topic (coronavirus) around the brand.

The increase in positive mentions is the important factor here. People engaged with the brand positively, to counteract the global negativity. The brand love Lego had built, meant that people turned to them during the crisis for reassurance.

Nostalgia is a vital part of this. During a major crisis, people want to tap into familiar things from the past. They literally want to relive “the good old days.” For many, Lego is a brand familiar from people’s youth, and being a construction toy for all ages, it was easy for everyone to turn to for comfort and reassurance.

Lego supported this with numerous brand-led campaigns, connecting with the pain-points consumers were feeling at the time.

Lego’s #LetsBuildTogether campaign helped families and fans unite with joyful moments and positive experiences. The hashtag was mentioned 27,900 times over the three months, with 377,900 engagements (13.54 engagements per mention).

Takeaway

Don’t underestimate the power of nostalgia. People will look to remember the good times, and by connecting your brand to those times, you’ll maximize love.

Also, don’t let a crisis stop you from doing what has worked so well. People need distractions from the issues in the world. Continue to offer the content that people already engage with, just ensure you’re not blind to the crisis going on around you.

How Four Seasons Hotels’ community efforts are helping it mitigate damage

For a brand like Four Seasons, the crisis has been a challenge. With travel restrictions and cancellations, it was certainly not business as usual.

Monthly mentions of the brand increased by 26% from our “before coronavirus” to “during coronavirus” periods, with 52.3% of those mentions being positive. As of yet, we haven’t seen a spike in mentions related to refunds or cancellations, compared to Airbnb with around 10% of their total brand mentions over the ‘during coronavirus’ period related to the topic.

Four Seasons was a loved brand, because of their strong consumer connections and CSR strategy. The company knows it’s vital to support the communities their hotels are part of.

They opened the New York Four Seasons, to house medical personnel during the peak of the crisis in the city. The first to host healthcare workers free-of-charge.

This response engaged the local community, and consumers across the world. But this wasn’t a one-off, it was a continuation of the efforts they support. As a moment of positivity in a particularly dark time, it will be remembered once the situation calms.

Takeaway

Even when things are bad, there are still opportunities to find the good. Even if you can’t see how they will impact your brand immediately. Often, these big, community-focused efforts are long-term commitments, which will pay off in the long run.

Why Warner Bros.’ audience connection is nurturing consumers for future impact

The last months have been turbulent for Warner Bros. The crisis has impacted cinemas, meaning delays for many of the big releases for the past few months (and the rest of summer). Yet, there’s been an increase in demand for home entertainment, especially projects from the TV and publication side of the brand.

For the company, they needed to keep excitement for the brand and its properties ignited, to ensure success for the delayed releases. This meant upping their already successful social media and PR strategy, to maximize engagement. The average engagement in the ”during coronavirus” period was 30.6 engagements per mention, compared to a “before coronavirus” rate of 24 engagements per mention. An increase of 27.5%.

The brand knows that they drive love by continually feeding their fan bases with new content and listening to what their audience wants. During the crisis, while it wasn’t possible to continue with the major releases as they’d planned, Warner Bros. could still be part of the conversations with teasers and snippets.

They teamed up with Lego to release a special PSA to help children understand the crisis, and finally announced a project that had been in demand for a long time. A Snyder cut of the Justice League movie.

The announcement was something the community had wanted for a long time. And was just what was needed for people to look forward to post-lockdown. This unity between brand and consumer should aid the company’s recovery in the coming months.

Takeaway

Even if you can’t make immediate sales, you can still nurture your audience. Tease, tempt, inform, so when the opportunity does arise, your customers will be in the ideal place to buy.

And constantly listen to your audience. Social listening can show you exactly what consumers want. With those insights in hand, you can always meet customer expectations.

HOW BRAND LOVE HELPS BRANDS REMAIN INDUSTRY LEADERS

Why travel woes have had less impact on loved tourism brands

With enforced closures and travel restrictions across the globe, the tourism industry has been badly impacted. In the “during coronavirus” period, there were 7.3M mentions of refunds or cancellations in relation to the industry. Companies not only faced a shortage of income, but saw huge outgoing cash flow, with varying levels of government support.

For all airline mentions, 31.2% were negative and only 11.6% positive “during coronavirus,” compared to 21% negative and 44% positive in the “before coronavirus” period. Many companies struggled to cope with the demand for refunds, while juggling reduced staff levels. While the decision to offer vouchers instead of cash refunds also riled customers. It became such an issue, a ranking was set up on who was the worst at offering refunds…

For the two airlines that made the Brand Love Story, Singapore Airlines, and Etihad Airways, the downturn is less noticeable.

Etihad Airways maintained their brand love, through their continued sport sponsorship and CSR efforts, while Singapore Airlines (and their sub-brand, Scoot) maintained a transparent communication strategy with their consumers.

A similarly hit industry was cruise lines, faced with the same travel restrictions as airlines, with the added risk of ships themselves becoming virus epicenters.

31% of mentions related to cruising were negative during the ‘during coronavirus’ period. But our most loved Cruise Company, Celebrity Cruises, had only 1.6% negative mentions. It was staying afloat in a stormy industry.

Takeaway

Being a loved brand won’t entirely protect you from a major crisis, but it can significantly mitigate the damage. The built up deposits of brand love help you weather the situation—it takes a lot for a brand advocate to turn into a critic.

Plus, the methods that loved brands use to keep customers happy during the better times, also work just as effectively during a crisis. The connections these brands have built, help them to adapt the conversations quickly, to diffuse issues quickly.

How loved brands took an unfair share of industry growth

The lockdown had a massive impact on consumer buying habits. Essential products such as food and hygiene products became priority, with many supermarkets seeing an increase in demand, leading to shortages of some products.

For many, chocolate became an essential comfort food during lockdown. With mentions increasing from 3.53 million mentions per month “before coronavirus” to 4.73 million (+34%) “during coronavirus.”

When people turned to the comfort of chocolate, it was Cadbury, the much-loved brand, they turned to first. With Dove coming in second place. Demonstrating again the importance of brand love—the relationship you build now will be there even when times are critical.

The same can be seen for major retailers. Whole Foods Market saw their average engagement per mention increase from 30.7 “before coronavirus” to 48.4 “during coronavirus.”

The brand did have to adapt to meet the increase in demand, which brought challenges of their own. Ensuring supply meant increasing staff numbers, while minimizing staff risk. They also tackled brand shortages by introducing ‘senior’ opening hours. Overall, the brand did suffer from some negative press, but because of their established reputation as a loved brand, they were able to shake off the worst of it, with little change to their sentiment.

Takeaway

In any crisis, there are some industries that will still profit. But for the brands within those industries, there will still be varying levels of success.

With less choice, consumers will turn to the brands they feel more connected to—the ones they love. That usually means those brands take an unfair slice of the spend available.

Of course, these brands still have their work cut out for them, managing the challenges a crisis brings. But the effective social media and PR plans they have in place helps them manage these issues effectively.

Conclusion

Brand love really does make a difference to a brand. During boom and during bust. When you’re facing unprecedented issues, or increased demand.

By following the 11 methods that the world’s 50 most popular brands use, you’ll nurture a loyal audience that connects with your brand, engages with your messages, and will stand by you even through the toughest times.

It’s not too late to create love for your brand. It’ll be essential for the coming months of economic anxiety. To discover what makes a loved brand, download the full report.

 

Medical Marijuana, Inc. Reports Q1 2020 Financial Results

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Medical Marijuana, Inc. (MJNA), parent company of direct seller Kannaway, announced financial results for the quarter ending March 31, 2020.

Highlights of the quarter included:

  • MJNA generated $13.3 million in net revenue in first quarter of 2020;
  • Subsidiary Kannaway named the Most Popular Cannabidiol (CBD) MLM Company by HealthMJ;
  • Kannaway expanded international operations into Russia, Kazakhstan and Kyrgyzstan and became the first company to legally import CBD products into Russia; and
  • Kannaway welcomed renowned wellness expert and Certified Nutrition Coach Daniel Miller to its team.

“I am extremely proud of the many operational accomplishments of the company during the first quarter of 2020,” said Medical Marijuana, Inc. COO Blake Schroeder. “We were able to announce the company’s expansion into new markets such as Russia and Vietnam. Our pharmaceutical investment companies announced clinical studies as well as acquisitions that further position the portfolio of companies as global leaders in the cannabis sector.”

Young Living Study Reveals Gender Differences Dealing with COVID-19 Stressors

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According to a new study from Young Living, there are big differences between men and women when it comes to parents dealing with the new stress of COVID-19.

Twenty-five percent of men saying they’ve experienced less stress compared to 38 percent of women saying they’re experiencing a lot more. Coping mechanisms also vary drastically among the sexes, with 52 percent of women preferring to spend time outdoors compared to 32 percent of men, and 33 percent of men turning to drinking compared to 22 percent of women.

This stress isn’t only making a lasting impact on the adults, as 56 percent of parents say that stress for their children is growing every day since the beginning of the pandemic. The study has uncovered a clash between moms and dads when it comes to parenting styles, from bedtime routines to homeschooling, as everyone looks to bring some normalcy back to the home.

The disparity between men and women is also highlighted by revelations about how parents approach the bedtime routine: men are significantly more likely to resort to certain tactics over women, such as giving a treat/bribe (28% vs. 19%), spanking (14% vs. 3%), locking them in their room (10% vs. 3%) and going outside to not hear them crying (10% vs. 4%). The study also found that 19 percent of men report regularly giving their child a sleep aid compared to 12 percent of women.

The study also reveals that men are more likely (92%) to say this time has changed their relationship with their child(ren) than women (81%). Dads are also the ones tipping the scales when it comes to homeschooling, with 68 percent saying they’d consider it now compared to just 43 percent among moms.

“Uncovering the stark differences in how everyone is dealing with stress from the current crisis is telling on how our home environments are changing,” said Shante Schroeder, vice president of brand marketing at Young Living. “Knowing just how difficult the pandemic has been for parents—and the exact areas in which they’re most struggling—can help communities focus on areas of highest need. It can also help all of us be more empathetic with each other.”

The news isn’t all bad, however. In fact, 60 percent of parents say that they’ve grown closer with their child(ren) by spending more time together. Even better, 94 percent of parents have talked to their child(ren) about the pandemic. All signs point to better communication and stronger families.

Other key findings from the study include:

  • 70% of parents say they’re more stressed every day since the pandemic started. The top three reasons parents are stressed include:
  • 49% – helping their child with schoolwork
  • 48% – maintaining a routine while the family is all at home
  • 31% – keeping their kids occupied while parents are working from home
  • The top way parents manage their own stress is by turning on the television (73%).
  • Parents are learning how to set boundaries, but 25% of parents say they’ve been lenient about their children keeping up on schoolwork.
  • 80% of parents report cancelling or delaying summer plans due to COVID-19; 40% of summer road trips and 39% of air travel are now canceled.

Young Living conducted this research using an online survey prepared by Method Research and distributed by Lucid among 1,002 parents of child(ren) ages 2–12 years old in the United States. The sample was balanced across parent gender and geographic area. Data was collected from April 29–April 30, 2020.

The full survey report can be found here.

 

 

Fiona Ho Joins Neora as VP of Greater China, Manager of Hong Kong

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Neora recently announced its new vice president of Greater China and general manager of Hong Kong, Fiona Ho.

With 24 years of experience leading a variety of direct sales companies to successfully launch and advance their operations in Asia, Ho is equipped to oversee Neora’s market development in Greater China where she is committed to helping brand partners excel.

“We are thrilled to welcome Fiona Ho as vice president of Greater China,” said Brad Wayment, president of Global Markets for Neora. “Before diving into direct selling, she spent nine years in the advertising, public relations, media and marketing fields, which supplied her with the knowledge and skills necessary to drive new business growth for us.”

Ho firmly believes that Asia—in particular the Greater China Region—will be the focus of attention for business growth in the coming decades.

“In total recognition of our company’s vision to bring about wellness and happiness by making a difference through personal growth and positive impact, I wish to share Neora’s vision with our brand partners in the region and achieve new heights,” Ho said.