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2020 Global 100 Celebration

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The 11th annual event was one for the ages.

 Since the live event of the 11th annual DSN Global 100 Celebration in Dallas was canceled due to the COVID-19 pandemic, DSN presented a special video event on their website on the evening of April 1. It was co-hosted by DSN Publisher and Editor in Chief Todd Eliason, as well as John Fleming, who is a member of the DSA’s Hall of Fame and recipient of the DSN Lifetime Achievement Award.

As it does every year, the Global 100 celebrates the accomplishments of companies that continue to demonstrate extraordinary levels of success; those that have achieved tremendous year-over-year growth; and those that have broken through as newcomers to the ranking.

“What is obviously different in previous years is our delivery of the Global 100,” said Todd Eliason, DSN Publisher & Editor in Chief. “We canceled our live event in order to keep everyone safe, including the many direct selling executives that typically attend. However, we chose not to cancel the Global 100 Celebration because we believe it’s important and relevant to continue the tradition of highlighting the very best in direct selling. We are at a unique moment in time, one that will undoubtedly change the way we live and the way we do business in the future.”

We are at a unique moment in time, one that will undoubtedly change the way we live and the way we do business in the future.
—Todd Eliason, Publisher & Editor in Chief, DSN

The DSN Global 100 list offers a unique perspective on the global impact of the industry on economic and social realms. It provides a range of mutual learnings not only for industry members but also for researchers, investors and—most important—those seeking opportunities within the industry.

 

2020 Best Places to Work in Direct Selling Announced 

During the first portion of the video presentation, Eliason announced the winners of its annual Best Places to Work in Direct Selling. This is the fifth year that DSN has offered this look at direct selling workplaces. This article was designed with four goals in mind:

  • To spotlight the channel as a positive job-creating engine;
  • To recognize and honor companies that have created positive work environments and become employers of choice;
  • To identify and share best practices with the wider direct selling community; and
  • To provide valuable feedback and data to participating companies that will assist them in measuring levels of employee satisfaction and engagement.

Todd Eliason, Publisher & Editor in Chief, DSN

Since choosing the best places to work in our channel is by no means an easy task, DSN once again teamed with Quantum Workplace to measure, analyze, and select the best places to work. This year, 11 companies were honored:

  • 5x Winners – Nu Skin, Team National
  • 4x Winners – Jeunesse, LifeVantage and Xyngular
  • 3x Winner – USANA
  • 2x Winners – MONAT, Scentsy and Total Life Changes
  • 1stx Winners – MODERE and SeneGence

Bravo Award Winners

Eliason tossed the hosting duties over to Fleming, who went on to announce the DSN Bravo Award winners for outstanding achievement and excellence in areas of leadership and revenue growth year-over-year.

The Bravo Growth Award winner went to Medifast subsidiary OPTAVIA. One of the fastest-growing health and wellness communities. This Baltimore, Maryland-based company saw sales increase from $301 million in 2017 to $501 million in 2018 to $713 million in 2019—$200 million growth in each of the past two years. It is the company behind one of the fastest-growing health and wellness communities. Based on nearly 40 years of experience.

Nick Johnson, President of OPTAVIA

Its community of thousands of independent coaches teaches clients to develop holistic, healthy habits through products and clinically proven plans, the Habits of Health Transformational System and comprehensive support from a community of likeminded people.

Orville & Heidi Thompson, Co-Founders and Co-CEOs of Scentsy

“This recognition is truly a reflection of our amazing coach community that tirelessly propels our mission—and in turn—our growth,” said Nick Johnson, President of OPTAVIA. “I’d be remiss if I didn’t thank them for their work as change agents and champions for clients throughout their transformation journeys. From the start, our coach community has always been the lifeblood of OPTAVIA. Now, 35,000 people strong, they’re the champions of our mission, and what differentiates us in a crowded market.”

DSN also presented two awards for leadership. The first Bravo Leadership Award winner went to Orville and Heidi Thompson, Co-Founders and Co-CEOs of Scentsy. This husband and wife team began their business out of a shipping container in 2004. In just seven years, their company grew to over half a billion dollars. Then they were broadsided by copycat retail products, and the company began consecutive years of decline.

Throughout it all, these two leaders stayed transparent, sharing the details of their struggles and how strategy tied to the company’s values set them on the road to recovery. They regained their brand and their confidence by taking slow, steady and deliberate actions to return to their cultural authenticity.

“We’d like to take this opportunity to thank Direct Selling News for this honor,” said the Thompsons. “At this time of unprecedented disruption, we are proud to be part of direct selling. Our industry proves that as our economy shuts down, direct sellers get to work. For years we have talked about how direct selling is the original social network. Now we can add we are the original work-from-home workforce. The whole world can learn from direct selling.”

The second BRAVO Leadership Award went to Carl Daikeler, CEO of Beachbody. In 1998 he cofounded the Santa Monica-based health and fitness company to support others with their fitness goals as well as to find a solution for the obesity epidemic. Since then, the company has redefined in-home exercise with its fitness and weight-loss solutions, on demand workouts and popular Coaching Network.

Carl Daikeler, CEO of Beachbody

Daikeler’s goal to create the largest community of health and fitness-related peer support in the world continues to win over millions of satisfied customers. In the past few months, his company has created virtual workout groups for the entire family due to the coronavirus pandemic and has made available free workout classes for kids.

“Obviously, these are pretty interesting times to be a leader in, and to lead a company through,” said Daikeler. “We’re certainly working hard at Team Beachbody to help our field feel compelled to help people through these times. It’s going to be a time where having some financial independence and options are going to be key things for people, and I think that’s something the direct selling industry, in particular, is unique at providing.”

A New Twist on the List

The DSN Global 100 had previously listed 100 companies, ranging from $60 million to over $10 billion in revenue each year. This year the 2020 list took on a new look, acknowledging 50 companies achieving more than $100 million in revenue for 2019.

“Due to the many factors putting pressure on our channel over the past few years, we knew a reevaluation of the list was necessary,” Eliason says. “The purpose of the Global 100 list remains the same: to showcase the true impact of this channel on people’s lives as well as the economic impact direct selling companies make on the communities they serve.”

For the eighth consecutive year, Ada, Michigan-based Amway claimed the top spot as No. 1 direct seller in the world, with $8.4 billion in revenue in 2019. This 60-plus-year-old global giant maintains a large portfolio of some the world’s best-selling brands, including Nutralite vitamin, mineral and dietary supplements, Artistry skincare and color cosmetics, eSpring water treatment systems, and XS Sports Nutrition and Energy Drinks. More than 3 million Amway independent business owners offer 450 unique products in 100 markets and territories throughout the world.

John Fleming, Event Co-Host, DSA Hall of Fame Recipient and Ambassador to DSN

Los Angeles-based Herbalife Nutrition moved up one spot to claim No. 2 on the list with $4.9 billion in revenue in 2019.

London-based Avon Products, Inc. took the No. 3 spot (down from No. 2 last year) on the DSN Global 100 list, with $4.76 billion in revenue in 2019.

DSN thanks all the companies that willingly participated in the Global 100 as well as the dedicated team of researchers who helped present the remarkable achievements of direct sellers around the globe. DSN

 

A Few Insights from This Year’s List

  • 50 companies representing nearly $53 billion in revenue
  • 48 percent of companies grew year-overyear from 2018 to 2019
  • 2 of the top 10 companies reported increased revenue
  • Six companies grew by $100 million from 2018 to 2019
  • Companies ranking 11-25, seven reported increased revenue
  • Companies ranking 25-50, 15 reported increased revenue

Carl Daikeler: Visionary Problem Solver

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Beachbody’s Carl Daikeler Earns Bravo Leadership Award.

It is 1998 in California. Gyms pop up on every corner, new fitness gadgets fly onto the market, exercise equipment infomercials flood TVs, and Carl Daikeler’s mentors ask tough questions. What makes you think the world needs another fitness company?

Where’s the opportunity?

“I said the idea is that whoever can make the living room, the garage, or the spare bedroom as effective and maybe, even more, gratifying a place to work out as the gym is going to create billions of dollars of opportunity,” Daikeler remembers.

That was the premise when he and partner Jon Congdon founded Beachbody. As Daikeler chatted about his company and career from his California home in early March, the world was changing by the hour and Beachbody’s premise seemed increasingly on point.

“Here we find ourselves in this pandemic in 2020, and I can honestly say it has never been more valued than right now. This concept of making fitness gratifying at home is very powerful,” Daikeler says.

Over two hundred million people in North America don’t have a gym membership. They lack a good approach to proper nutrition for wellness and weight loss that is scalable to the entire family. As Co-Founder and CEO, Daikeler’s mission goes beyond selling them a product like Shakeology™ or a subscription to Beachbody On Demand digital workout platform. He leads 350,000 distributors—for whom they coined the term “coaches”—who build self‑esteem, provide a service of accountability for people who actually want to get results, and to help anyone and everyone achieve their goals to be healthy and live fulfilling lives.

Stars Aligned Without His Knowing

Once, a twenty-something Carl Daikeler settled into the producer’s chair inside a TV production truck at the Army vs. Syracuse football game. His first job out of college. He called the nationally televised halftime show countdown and nailed the production job. He had skills. It was a big step toward his dream of someday producing the Olympics. But something didn’t feel right when he climbed out of the truck to the roar of the fans as the players were returning to the field.

“This concept of making fitness gratifying at home is very powerful.” – Carl Daikeler, Co-Founder, Chairman and Chief Executive Officer

“Literally, the first day of my dream job, and I thought to myself, ‘This is not what I want to do. This is just covering the activities of others. That’s not what I want to do. I want to influence people and solve problems,’” Daikeler remembers.

Creativity solves problems, and Daikeler new about creativity. Growing up, his family did a lot of coloring outside the boxes. Both Daikeler’s grandfathers were inventors and great salesmen. His parents co-owned the Bucks County Playhouse, a summer-stock theatre in Pennsylvania, where the business side of the creative process—the marketing challenge of getting people to buy tickets every summer—drew Carl in at a young age. In his teens, he was cutting his teeth in television production at his high school’s full-color TV studio—an oddity in the late 1970s.

“I think whenever you look in the rearview mirror, the path looks obvious. But at the time, it was anything but obvious that I would be the CEO of a company whose mission is to help people with their health and fitness,” Daikeler says.

But stars had aligned without his knowing. All that was missing was a problem to solve, and Daikeler didn’t have far to look. The now 30-something firmly disliked exercise and “eats like a second-grader.”

When he daydreamed aloud about creating a workout that would take just ten minutes a day he suspected he could get in shape that way. As it turned out, lots of people could relate.

 Media Production the Informercial Way

The infomercial market in the 90s was huge, and Daikeler was poised to contribute. The idea was simple: Create a short workout video–10 minutes at most–to get fit at home on your own time. A video series would emerge, but the first was :08 Min Abs, produced for TelAmerica Media in 1994.

“We created that for next to nothing and sold over two million of them for $19.95. That was the beginning of my creating product to help me solve my own problem,” he says.

“I think whenever you look in the rearview mirror, the path looks obvious. But at the time, it was anything but obvious that I would be the CEO of a company whose mission is to help people with their health and fitness.” – Carl Daikeler

In 1998 Daikeler and partner Jon Congdon started a new company called Beachbody and had a blockbuster fitness program in their sights with a $500,000 angel investment. After a string of early successes, they launched P90X, a three-month intensive fitness boot camp program, without cash for celebrity endorsements so they featured their own before and after pictures into their infomercials for ‘founders’ credibility.

For nearly a decade, Beachbody had millions of customers getting in shape with P90X, Brazil Butt Lift, and later, Insanity. Through self-discipline and eating right, customers turned into walking billboards for Beachbody’s fitness program success. Everyone wanted in on the secret to getting fit when a “beachbody” walked into the room. But lingering on the fringes was a dynamic of customer false-starts or no-starts at all. People bought in but didn’t follow through. That didn’t sit well with Daikeler.

In 2007, an evolution in Beachbody thinking was underway. As Daikeler tells it with a wink, “We wandered into [direct selling] and found out it was an industry.”

Bridging Multiple Sales Channels

“How was a guy like me—a guy that hates fitness and hates eating vegetables—able to have the discipline to be one of the very first transformation stories for P90X? It’s because I had a financial incentive. So, we thought, what if we could provide a financial incentive to customers, so that for the ones that struggle, they will have a financial incentive just like I did?” he asked.

“I would love nothing more than what we do as an industry to be the thing that easily picks up the slack, so people can instantly start creating an income for themselves by being of service directly to people.” – Carl Daikeler

And with that, Beachbody leaped into multi-channel sales and created a brand-new financial incentive for its customers.

Traditionalists would bristle at Beachbody’s new business strategy, objecting to perceived channel conflicts between customers and the company’s existing and very successful direct marketing business. An affiliate structure with commissions wouldn’t help the person beyond the initial transaction, and that’s the leverage they really wanted. So, Beachbody devised a win/win.

Coaches from the network marketing side bring customers in and form Beachbody On Demand (BOD) groups from their own warm markets. Likewise, the company generates direct marketing leads and attaches them to qualified Coaches. Those leads/customers have the social support virtually of someone who has been through Beachbody’s program, understands how it works and can provide accountability.

“That’s a value proposition to both sides of the market. The customer gets the benefit of a coach, and the coach gets the benefit of the lead. We don’t sell it to them. We just give it to them because we want to help that customer get results,” Daikeler says.

“That’s an innovation that has not always been completely understood by the industry or even by our coaches. Now that we’re 12 years in the industry, I think it has set a new benchmark for how multiple sales channels can actually complement each other,” Daikeler says.

And now, in the midst of an unprecedented world health crisis, there are new industry benchmarks to set. Daikeler muses aloud about how direct selling companies would love 100 percent of distributors engaged and creating financial rewards and contributing to the customers that they serve.

“In an environment like right now, where we’re going to see widespread unemployment and it’s going to spike, I would love nothing more than what we do as an industry to be the thing that easily picks up the slack, so people can instantly start creating an income for themselves by being of service to people. But that means they need to be more than just a sales channel,” Daikeler says. “We need to help them get results.” DSN

Orville & Heidi Thompson: That Scentsy Spirit

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2020 Bravo Leadership Award Winners

At Scentsy, there is a spacial, hard-to-define quality that characterizes the company’s leaders, consultants and employees. It’s a common spirit that exists among the people of Scentsy and is defined by their aspirations and values in kind. It’s an infectious ethos that calls them to succeed and grow to their utmost potential. This enchanted essence is sometimes referred to as “Scentsy Spirit.”

“Scentsy Spirit is important to us and to our consultants,” says Orville Thompson, Scentsy CEO. “Our Consultants say Scentsy Spirit is hard to define, but easy to feel. It means something to them, and we really try to protect it.”

What anchors this spirited culture is the husband-and-wife tea of Orville and Heidi Thompson, owners of the direct selling giant, Scentsy, and the recipients of this year’s Bravo Leadership Award, an honor that recognizes those whose exceptional leadership qualities have propelled their company to extraordinary new heights.

Ranked at No. 22 on the Direct Selling News 2020 Global 100 list—with revenue of $472 million in 2019—Scentsy is the industry-leading direct seller of scented products, including wax warmers. The home-and-personal-fragrance market leader boasts nearly 134,000 consultants and more than 1,000 employees who work out of the company’s home office on a campus of 73 acres in Meridian, Idaho, or in other facilities around the globe. On average, Scentsy manufactures 238,000 products per day, including fragrance and décor for home and travel; wax warmers; essential oil diffusers; scented plush toys; laundry and cleaning products; personal care; and pet care.

“It hasn’t always been easy, and we’ve had our ups and downs, but we have always been anchored by our culture,” says Heidi Thompson, Scentsy Co-CEO. “A key aspect of great leadership is to see yourself as the steward of a culture, not the owner of a business. We see ourselves as stewards of Scentsy-ness.”

Scentsy Spirit sometimes manifests as the Thompsons’ intuitive approach to decision-making, always with the ethos of contributing more than they take. “Often, Orville and Heidi purposefully bypass conventional business strategy in exchange for opportunities for the greater good,” says Christopher Johnson, Scentsy Chief Technology Officer. “Their positivity and creativity instill hope, aspiration, and belief in all of us.”

A Category Creator

More than 15 years ago, before Scentsy was officially launched by the Thompsons on July 1, 2004, Orville and Heidi were cash-strapped and looking for a business opportunity. Earlier that year, they met two ladies who had just founded a fledgling company named Scentsy at a home and garden show.

“The real brilliant idea of Scentsy was taking two things that existed—candle wax and potpourri warmers—and bringing them together under a single brand and sold as a system,” Orville says. Heidi and Orville give credit for that idea to Scentsy’s Founders, Kara Egan and Colette Gunnell, the ladies from whom they bought the company.

By 2004, the Thompsons had bought Scentsy—on a wing and a prayer, and a promise of future royalties—and the rest is history. Today, the Thompsons are known and loved as category creators for their innovations in both the direct-selling and fragrance industries. What began as a bright idea—combining wax and warmers together in a single system—evolved into a unique line of scented products, many of which have been copycatted by big box stores and other retailers.

“We were the first to use innovative materials, the first to use glass, the first to use terra cotta, the first to use sandblasted porcelain,” Orville says. “We’re always trying new techniques and materials to fulfill our mission to sell creative, artistic, high-quality products.”

“The real brilliant idea of Scentsy was taking two things that existed—wax and warmers—and bringing them together.”
—Orville Thompson, Scentsy, C0-CEO

As the market-leading design innovator, Scentsy stays one step ahead. “We don’t look at others for inspiration on how to design our products,” Heidi says. “We always look to innovate; to be authentic.”

For the past several years, the Thompsons have led Scentsy to new growth through product licensing, partnering with household names like Major League Baseball, Mossy Oak, Jelly Belly®, Disney, Marvel and Star Wars. “We want to be the sought-after company in our category for brands like Disney to partner with,” Orville says.

Lindsay Randolph, Scentsy Chief Creative Officer, whose professional career includes serving in positions at industry-leading companies such as Mattel, Disney and now Scentsy, says Heidi and Orville have been exceptional role models for her personally as well as professionally.

“As partners in life as well as business, they bring a complementary perspective to every situation,” Lindsay says. “The successful outcome of this ideal collaborative partnership is like nothing I have experienced throughout my professional career.”

The Rudder and the Sail

As a couple married for almost 30 years, Heidi and Orville Thompson have a harmonious way of being in the world. The two seem to function as one. Their easy banter back and forth, their way of finishing each other’s sentences, and their utter lack of affectation, make them well-loved leaders in the direct selling industry.

Although they do not have separate functions—they both make decisions in all areas of running the company—Heidi tends to be naturally more cautious and circumspect. At the same time, Orville gravitates toward a forward-looking vision. Together, they make a harmonious whole.

“I’m the rudder, and he’s the sail,” Heidi says, referring to her husband. “I’m the realist, and Orville’s the optimist. We’ve worked together every day for the last 15 years. It has brought us closer together and melded us into one very well-rounded individual.”

As leaders at the helm of Scentsy’s ship, Orville and Heidi take their responsibilities seriously and with great respect for the people who depend on them. “I think that executive leaders have the responsibility of flow—money flow, people flow, product flow, idea flow,” Orville says. “We manage all of those different flows, and that empowers others to actually move the company forward.”

One of the wise ways Heidi and Orville protect Scentsy and its people has been to plan for a “black swan”—an unpredictable event that is beyond what is normally expected and has potentially severe consequences, according to Investopedia. Of course, the black swan came to the world in the form of the coronavirus pandemic—an event that rocked many businesses to their core. The Thompsons, however, were prepared at a time when many businesses weren’t.

“We see ourselves as stewards of Scentsy‑ness.”
— Heidi Thompson, Scentsy, Co-CEO

“One of the principles we go by is we never spend this year’s money,” Heidi says. “When coronavirus came, we did not have any question about whether we would be able to pay our employees. That’s because we have all of last year’s profits and the year before that’s profits still in the business.”

An Inspiration too Others

Heidi and Orville motivate and inspire Scentsy’s consultants in the field and employees at the corporate office, simply by being who they are and mirroring the qualities of great leadership to those around them. “We are committed to contributing more than we take,” Heidi says. “When people realize that, they want to reciprocate.”

At a company event, the Thompsons are the kind of executive leaders who will spend hours of their time talking to consultants, taking pictures with them, and listening to their stories. The real-life proof of their leadership is captured by the sentiments others use to describe how the Thompsons inspire people to achieve their best.

“I think that executive leaders have the responsibility of flow–money flow, people flow, product flow, idea flow.” – Orville Thompson

“Heidi and Orville Thompson consistently affirm the worth and potential of those they lead,” says Deb Bowden, Scentsy Vice President of Consultant Development and Training. “They inspire us to see it in ourselves and, as a result, achieve better results.”

It’s this kind of selfless giving that characterizes Orville and Heidi Thompson and ensures Scentsy will lead the industry for years to come. “To truly have a great direct selling company, those who run it need to have a deep capacity to love others,” Orville says. “It is difficult to run a direct selling company if it is about you.” DSN

The Way Forward: This is a Time for Leadership

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We are at a unique moment in time, one that will undoubtedly change the way we live and the way we do business in the future.

Our way of life had hit a brick wall. In the span of a few days, hotels and retailers shuttered, airplanes were grounded, offices fell silent. Leaders scrambled to secure their supply chains, keep worried employees motivated to work, and looked to evaluate strategic plans that have been years in the making from falling apart.

Just know that all of us here at Direct Selling News are mindful of the challenges you face in your daily lives. Please know that our thoughts and prayers are with you, your employees, your distributors and your families.

Throughout the past year, the editors at Direct Selling News have had no shortage of topics to talk about. Never before have we seen such a year that has so dramatically impacted the future of direct selling, which was reflected in this year’s Global 100 List.

First, the Numbers (2019 Revenue)

Of the 50 companies in the ranking, only six grew by 100 million from 2018 to 2019. And only two of the Top 10 companies had increases in revenue (Coway and Ambit Energy).

However, of the companies ranking 11 through 25, seven had increases, and of the companies ranking 25 through 50, fifteen had increases in revenue. While there were challenges in 2019, 48 percent of the companies recognized tonight grew year over year.

Events Impacting 2020 G100 List

Here are some of the happenings that got our attention that certainly impacted growth in virtually every part of the world. I think the following were on everyone’s list:

  • China’s 100-Day Review – 2019 started with the Chinese government’s 100-day review of the health market. That review negatively impacted several of the world’s largest direct sellers. Whether or not the government came knocking, all direct selling companies were on edge, and financials took a hit. Earnings at USANA, Nu Skin and Herbalife Nutrition, three of the industry’s largest publicly traded companies, fell significantly—between 8 percent and 25 percent for the first quarter. Hopes were high that business would rebound once the review period ended in April. Still, sales continued to fall dramatically in quarter two, resulting in all three companies resetting expectations for the second half of 2019.

  • FTC, AdvoCare & Neora – Perhaps the most headline-grabbing examples that happened in 2019, unfortunately, were FTC related. In October, AdvoCare and its former chief executive officer agreed to pay $150 million and be banned from the multilevel marketing business to resolve Federal Trade Commission charges. The FTC charged that the company operated an illegal pyramid scheme that deceived consumers into believing they could earn significant income as “distributors” of its health and wellness products. Then one month later, Neora sued the FTC for changing the rules, hours later the FTC announced they were suing Neora as well.

  • Gig Economy’s Continued Growth – The explosive growth of the gig economy may have caught us by surprise. Supported by the innovative use of technology and a very effective approach to serving the consumer, the gig economy’s growth has captured the attention of marketplaces in virtually every mature market in the world.

    The growth of the gig economy has created more choices available to those interested in part-time work, and the estimates are that close to greater than 40 percent of the existing workforce in the U.S. is engaging in gig work, representing over 50 million people in the U.S. alone.

    Some estimates here in the U.S. indicate that up to 80 percent of the workforce may be interested in part-time work. All of this is happening during a time of low unemployment here in the United States.

Going Forward in 2020

At the end of the year, the world first heard of the coronavirus. Over the past few months, its spread has not only halted activity for many direct selling companies but also prompted countries to close their borders to travelers and shut down government agencies.

The future of direct selling will be determined by the evolution of the distribution channel and business opportunity.

Most direct selling companies are now embracing the need for a strong strategic focus on customer acquisition and retention. This focus will serve us well as we incorporate our unique attributes of relationship building and community in the digital and the social commerce strategies that will reposition the original form of gig work into, perhaps, the ultimate form of gig work.

The future of direct selling will be determined by the evolution of the distribution channel and business opportunity. History has taught us that the future rewards those who pursue a path to relevancy and leadership in the marketplace. The mantra for this new decade must be that we are a customer-centric industry. We build strong retail bases, and the opportunity seekers follow.

Here are a few insights to mull over as we finish out the rest of 2020:

1. The Channel is Showing Growth – As a nation, we are now 90 days into an unprecedented “work from home” doctrine and adjusting to all the changes and challenges it has brought to our personal and professional lives. The economy as a whole is reeling, but an informal survey conducted by SUCCESS Partners is showing some positive signs.

The survey includes talking with 50+ leading direct selling companies for a snapshot overview of how the industry is faring in the current climate. In these conversations with executives, there are ten top-performing companies on track to set all-time records in the month of May. The survey states these companies are necessarily using a different selling system or model, but they are flexible enough to pivot to growing their customer and distributor base remotely.

With over 22 million Americans having filed for unemployment in recent weeks, companies—along with their sales force—have been able to help those people earn alternative income sources. “Who better to rise to the occasion and provide that opportunity than the direct selling channel?” states the article.

2. Product Claims & COVID-19 – Seeing that the industry is growing is a great sign, but nothing will kill this growth faster than misleading product claims. As the COVID-19 pandemic continues to wreak havoc in the medical and business community, direct sales companies face the added pressure of ensuring that their independent sales representatives are not seeking to boost sales by making unauthorized health claims related to the coronavirus. “Statements that imply or expressly claim that a product can treat or alleviate COVID-19 symptoms will almost certainly invite immediate regulatory scrutiny. With the FTC’s heightened scrutiny of the direct selling channel, direct sellers can ill afford the reputational damage (and certain adverse regulatory enforcement action) that would result if a company (or its independent salespeople) seeks to capitalize on the current pandemic by making unsubstantiated health claims,” says Brent Kugler, a Partner for Scheef & Stone.

The DSA and DSSRC issued a joint press release stating the same thing, cautioning direct selling companies and their independent sales forces from making claims. “During these dynamic times, it is of paramount importance that we maintain the integrity of the direct selling space and be especially cognizant of any and all product claims and business opportunity representations,” said Eric D. Reicin, President and CEO, BBB National Programs. “Since product claims made by sales force members are attributable to direct selling companies themselves, our direct selling self-regulatory division, DSSRC, reminds all direct selling companies to educate their sales force members about best practices with respect to health-related product claims.”

Statements that imply or expressly claim that a product can treat or alleviate COVID-19 symptoms will almost certainly invite immediate regulatory scrutiny. — Brent Kugler, Partner, Scheef & Stone

In less than a week of these warnings, the FTC issued warning letters to several direct selling companies to remove and address claims that they or their participants are making about their products’ ability to treat or prevent coronavirus disease or about the earnings people who have recently lost income can make, or both.

“MLMs and other companies that distribute their products through networks of distributors are responsible for the product and earnings claims those distributors are making,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “During this health and economic crisis, we are on the lookout for false income claims for work-at-home opportunities, in addition to spurious health claims that products can treat or prevent COVID-19.”

The FTC has previously sent a number of warning letters about health claims related to the coronavirus pandemic. Still, this group of letters is the first to also include warnings related to claims about potential earnings related to the economic fallout from the pandemic.

What happens in the next six months will be crucial in the decisions we make with our companies as well as our channel.

The letters refer the companies to the agency’s guidance for MLMs, reminding them that they are responsible for the claims made by their members and representatives, and advising the recipients that they and their members must immediately cease making all claims that would be false or misleading.

This is a critical time for our channel to continue to educate our sales force on the dangers of product and income claims. We don’t want 2020 to mirror the events of last year.

3. The Immediate Future Will Take Leadership – What happens in the next six months will be crucial in the decisions we make with our companies as well as our channel. It will need leadership to keep our channel moving forward, relevant and in step with the ever-changing customer behaviors.

In a recent article penned by industry veteran Brett Blake, he says the COVID-19 pandemic has presented us with what might be the most unique business experience of our careers, one we are all trying to wrap our minds around from a public health perspective. He says, “…my experience leading several companies through very difficult crises has left me thinking, What would I do if I were leading a company right now? This is a moment in time when ‘work from home’ companies should be thriving or, at the very least, preparing to thrive. Whether your company is in ‘crazy growth’ like the company of one executive I recently spoke with, or in ‘survival’ mode, this is a time for leadership.”

In their video acceptance speech for the 2020 DSN Bravo Leadership Award, Orville & Heidi Thompson stated that the titles we hold in our various direct selling companies mean something: They should be more than being the people who make the big bucks or the people who get the credit for growth. Leaders don’t exist without others. You don’t lead yourself. Leaders lead people. They lead them to a happier, healthier place. They help people embrace the growth mindset. They help people adopt a sense of childlike wonder, embrace contagious optimism, develop relationships of love connection and kindness, find hope in a troubled world, and see the light of a better life in a better world. DSN

Medifast/OPTAVIA Celebrates Healthy Habits and Exceptional Growth

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OPTAVIA is the running-on-all-cylinders-engine propelling its parent company.

As the Medifast/OPTAVIA corporate team gathered on the iconic platform at the New York Stock Exchange to ring the market’s opening bell on March 2, 2020, they were ready to celebrate more than just exceptional growth. The team dedicated the bell ringing to the more than 30,000 Independent OPTAVIA Coaches responsible for the brand’s incredible success.

“We were thrilled to share this moment with our OPTAVIA Coaches,” says Dan Chard, Medifast’s Chief Executive Officer. “Our Coaches help Clients break cycles of unhealthy habits that have perpetuated for many years—for individuals, for families and for communities. This is what drives us forward every day and ensures we’ll be relentless in our mission for the long-term.”

Direct Selling News is pleased to acknowledge the company’s accomplishments and to present Medifast/OPTAVIA with the BRAVO Growth Award for achieving over $200 million in growth in both 2018 and 2019.

The Momentum 

Since 1981, Medifast has been a trusted leader in the health and wellness industry. Throughout the years, its physician-developed line of packaged meals, snacks and shakes have been shared through clinicians, weight loss centers and independent Coaches as well as directly to consumers online.

The launch of the OPTAVIA brand in 2017 presented a renew focus for Medifast—a more holistic message about wellness that went beyond its plans and products. OPTAVIA combines OPTAVIA products, called Fuelings, with simple tools to develop other essential facets of wellness: hydration, motion, sleep, mind and surroundings. The result is a well-rounded program that encourages full transformation through the adoption of one healthy habit at a time, setting the brand apart in the crowded health and wellness space.

“People are frustrated with fad diets, unused gym memberships and companies that promise quick fixes,” explains Chard. “We believe complex problems require holistic solutions. Our approach combines clinically proven plans and scientifically developed products with the ongoing support of OPTAVIA Coaches to help deliver long-term, sustainable success for our clients.”

OPTAVIA President, Nick Johnson

The launch of OPTAVIA was more like an explosion. Medifast’s original direct sales brand, Take Shape For Life, had grown steadily to over 12,000 Coaches from its start in 2002 until re-launching as OPTAVIA in 2017. In OPTAVIA’s first two years, Coaches more than doubled, growing to an organization of over 30,000. Even more growth was yet to come, as the company expanded globally.

“[In 2019] the OPTAVIA movement went global, beginning with the Asia-Pacific region, as we successfully expanded into Hong Kong and Singapore,” reports Chard. “This growth enables us to impact more lives than ever before.”

The Community 

Honoring Coaches at the NYSE bell ringing was more than just a sign of appreciation. Nicholas Johnson, President, Coach and Client Experience shares just how integral OPTAVIA’s Coaches are to the company’s tremendous growth.

“Our success has been—and continues to be—powered by our OPTAVIA Coaches,” he says. “Combined with an effective health and wellness program, they enable us to fulfill our mission of offering the world Lifelong Transformation, One Healthy Habit at a Time®. They continue to be the lifeblood of our program.”

However, the rapid growth of OPTAVIA’s independent Coaches had effects beyond the company’s balance sheet.

“In 2019, we faced operational execution challenges in technology and supply chain that affected the quality of the experience our OPTAVIA Coaches and clients have come to expect,” shares Chard. “We were able to identify the challenges and take quick action to address these issues. We’ve made solid progress in returning the Coach and client experience back to previous levels.”

With new strategies in place to support a growing field and client base, OPTAVIA is more committed to their Coaches than ever.

“As our Community has continued to grow and expand, we’ve intensified our focus on establishing a superior Coach and Client experience,” says Johnson. “This ranges from the interaction a Coach or Client has with our call centers to the moment a Client receives their first package. Our strategy remains the same: to deliver a repeatable business rhythm for our field organization, which includes consistency in initiatives, events and training opportunities.”

As Coaches inspire Clients and live out a mission to transform lives, the company launched a new opportunity for the Coaching Community to share OPTAVIA’s holistic look at wellness at a local level.

People are frustrated with fad diets, unused gym memberships and companies that promise quick fixes. We believe complex problems require holistic solutions.—Dan Chad, CEO, Medifast /OPTAVIA

“In September of 2019, we introduced a new event, Healthy Habits For All Week,” explains Johnson. “Healthy Habits For All is our philanthropic initiative and extends the work our OPTAVIA Coaches do every day to bring healthy habits to even more people. [During this week], thousands of volunteers from the OPTAVIA Community and beyond joined forces to invest in the health and wellness of their local communities. They dedicated their time to service activities that aligned with Healthy Habits For All’s mission—from providing nutritious meals to those in need to assembling bikes that inspire healthy motion.”

The Future

As the company shifts its attention from expansion to sustaining what they’ve grown, OPTAVIA is poised to enter its next phase, with new products on the horizon, developed with valuable insight from OPTAVIA Coaches.

“We partner with our Field Leaders at key milestones during product development to drive adoption, excitement and momentum for new products,” explains Chard. “We will continue to drive program development and innovation through expansion into additional healthy habits—such as nutrition, hydration, sleep, movement and aging. We’ll support these habits not only through products but also with education and the support of a Coach and Community.”

Chard and his team are ready for the next chapter of Medifast/OPTAVIA, looking to take advantage of all that they’ve learned in this season of explosive growth and rapid expansion.

“2019 was a transformative year where we laid the foundation for global expansion, built the systems and infrastructure to support significant future growth and demonstrated that our growth model is sustainable long-term,” says Chard. “We’re at an important point for our business as we develop from fast acceleration into a more mature business.” DSN

 

 

 

Compassion in Crisis

As the COVID-19 pandemic continues to affect all areas of life, the company is uniting behind Healthy Habits For All, it’s philanthropic initiative, to support communities in need by: Matching up to $20,000 in donations to No Kid Hungry® to ensure that children who rely on free and reduced-price lunches at school don’t suffer from a lack of healthy food during this time.

Partnering with the East Harbor campus of the Living Classrooms Foundation to provide funding for laptops for local students to use during this season of distance learning.

J. Hilburn Files for Bankruptcy

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According to a Dallas Morning News story, custom clothing brand J. Hilburn has filed for Chapter 11 bankruptcy.

The company, founded in 2007, is trying to reorganize under the protection of the U.S. Bankruptcy Court in Dallas.

The company laid off an undisclosed number of employees at its Dallas headquarters last month. The company said it anticipates no interruptions in business, and all current and future orders will be filled.

“J.Hilburn has a loyal client base. We believe in our stylists, in the growth potential of the men’s custom market, and in the ability of our management team to lead the company to future success,” CEO David DeFeo said in a statement. “Together, the company and our stylists community, along with our loyal clients, will weather this economic turmoil and come out on the other side as a stronger and more successful business

  1. Hilburn said in the initial filing that it has assets of under $10 million, but it owes more than that to vendors. Debts include $6.55 million to Hong Kong-based TAL Group, $806,052 to Portugal-based Criaimie Rua do Facho and $665,957 to the supply chain solutions division of UPS.

It owes $2.73 million on a term loan with Austin-based Escalate Capital Partners. The company raised $13.8 million in 2013, and it’s listed as an active investment of Boston-based Battery Ventures. Other shareholders listed in the filing are San Francisco-based Baseline Commerce Seed Fund, Menlo Park Bridgescale Partners, Dallas-based Buaite Againn LLP, Hong Kong-based South China (Jersey) Holdings and Dallas-based Lotus Holdings, which listed J. Hilburn co-founder and former CEO Veeral Rathod as a contact.

DSA Engage 2020 @Home Experience Begins Tomorrow

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The Direct Selling Association (DSA) will launch its DSA ENGAGE 2020 @Home Experience tomorrow, June 4, with live sessions continuing through June 8.

Registration remains open through tomorrow. DSA is providing the event as an open opportunity to the entire DSA membership, so DSA members can register entire teams of employees that have never before experienced a DSA event.

The DSA ENGAGE 2020 @Home Expo also launches tomorrow and will remain open through Fall 2020.

“Because these loyal suppliers are an integral part of the direct selling community, DSA is offering the DSA ENGAGE @Home Expo as the one-stop-shop where direct selling companies can find solutions that will help you excel in the days, months and years ahead,” said Melissa Brunton, senior vice president of Education & Meeting Services for DSA. “This means that all summer—as executives gather insights, develop strategies and create preliminary budgets in preparation for the Fall planting season—DSA will ensure that direct selling’s most innovative supplier partners are ready to help.”

The DSA ENGAGE 2020 @Home Schedule-at-a-Glance includes a quick overview of all live and on-demand content, including:

  • Keynote presentations from industry visionaries who will reveal how their companies have adapted to emerging market forces
  • Inspirational speakers who will offer exciting new ideas for empowering individuals and teams
  • Hands-on virtual networking events that will allow DSA ENGAGE 2020 @Home attendees to participate with friends in fun virtual formats that represent some of the exciting new best practices emerging from the channel
  • On-demand educational webinars that will spotlight the innovations companies have developed
  • Access to the leading supplier partners that will give attendees the capabilities needed to pivot and adapt

In addition, DSA ENGAGE 2020 @Home Networking will feature entertainment as well as live demonstrations from some of direct selling’s most innovative companies.

DSA ENGAGE 2020 @Home is inviting DSA members to #ShoptheChannel and be a part of the member-to-member marketplace that presents a fun shopping experience filled with the direct selling member community’s most popular products.

  • DSA is asking every direct selling member company to share their top-selling product with a link to the company website.
  • Participants are being asked to explore what their peers have to offer to demonstrate how the direct selling #GlobalCommunity is#StrongerTogether.
  • #ShoptheChannel is open June 4 through June 9.

DSA ENGAGE 2020 @Home On-Demand Educational Content will remain available to all registrants on an on-going basis.

 

MONAT Extends Mentoring Program with Leadership Expert John C. Maxwell

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MONAT Global is teaming up with John C. Maxwell, one of the world’s most sought-after leadership experts, to offer its exclusive mentoring program for another year.

The MONAT Maxwell Certification was developed in 2019 as a yearlong course specifically for qualifying MONAT Directors. Course participants are taught how to identify and harness their strengths, grow as entrepreneurs and inspire others along the way. Following a successful first year with incredible feedback from participants, MONAT has signed on with Maxwell for another yearlong course.

“The stories of personal growth and learning that we have heard from our team members who are participating in the inaugural MONAT Maxwell Certification are absolutely amazing,” said Stuart MacMillan, president of MONAT. “John brings such an authentic voice to the program that empowers, inspires and challenges our leaders. I’m thrilled that a second class of Directors will have the opportunity to benefit from the lessons in this exclusive leadership training.”

The next MONAT Maxwell Certification course will begin in September and is open to qualifying MONAT Directors.

“I’m so excited to mentor MONAT Directors for another year,” said Maxwell. “Helping them succeed brings me great joy. I anticipate another year of great growth and a closer relationship with MONAT. What an outstanding organization!”

John C. Maxwell has authored more than 100 books that have been translated into 50 languages, including several New York Times bestsellers. Maxwell travels the world imparting his knowledge while inspiring and challenging others to achieve their potential. Maxwell also founded two non-profit organizations, EQUIP and The John Maxwell Leadership Foundation.

Avon, Natura Call for Equality, Justice Amid Recent Protests

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Avon Products Inc. and its parent company, Natura &Co., released a statement on the recent protests and demonstrations taking place around the world.

At Avon, along with everyone at Natura &Co, we strongly believe in the value of life, the idea that all are interconnected, and as society we can and should be agents of change. We have seen the ongoing acts of racism and intolerance, leading most recently to the deaths in Brazil and in the USA with many countries showing support with demonstrations and protests.

We stand together with those who are committed to equality and justice. We stand by basic human rights and more than ever all humankind believing that all forms of racism and discrimination must end. We also acknowledge that we can and should do more ourselves.

We must work together, society, governments, private and public sectors with leaders engaging in a constructive way, to show compassion and empathy, to search for healing versus division and to invite all stakeholders for dialogue and to practice it. Our collective voices, still amid a Global Pandemic, are calling for a fairer world for all, without regard to race, color or background.

With Love.

How to Be Productive When Working from Home

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(This article was written by Amway and appeared on Forbes.com.)

Working from home comes with its fair share of distractions and can be difficult to adjust to.

With the current pandemic forcing millions of people to stay home, it may be even more difficult to look after your family while trying to manage your workload. However, a successful work-life integration is possible with a few tips.

Stick with Your Existing Routine to Promote Wellness

Maintaining your regular routine can help establish workplace wellness. According to Enrepeneur.com, “The real power in routines is the way they can help us build momentum, break bad habits, prioritize our lives and make us more efficient.” Here’s how you can integrate your regular routine into your new stay-at-home life:

  • Go to bed and wake up at a consistent time everyday
  • Get dressed and start your typical morning regimen
  • Check-in with your colleagues as if you were in the office
  • Don’t just pour a cup of coffee—take a coffee break
  • Start and end your workday at the same time

Designate Your Work from Home Location

If working from home is new and unfamiliar, you may need to create a separate space to minimize distractions. Digital marketing author Shannon Belew explains, “You’ll want to define a professional work area that separates your business from your personal life whether you’re self-employed or telecommuting. Its location, lighting, and confinement of clutter are all important.” Take these steps to create the perfect home office:

  • Designate an area strictly for work: Avoid working from your bed or couch. Instead, pick an area where you can sit upright and focus.
  • Free your space of distractions: Your workspace should be set away from others. Block out distractions with physical barriers, such as a door or dividers.
  • Purchase office equipment: Be sure you have all the tools needed to successfully complete your job. Equipment like a comfortable chair and wireless mouse can help boost productivity.
  • Keep your workspace organized: A messy work environment can lead to procrastination or quitting on a task all together. Stay focused by keeping a clean desk.

Set Your Work Hours 

While working from home offers a lot of flexibility, it can also interrupt productivity. According to Porch, “More than three-quarters of work-from-home employees watched TV on the clock at least once, and nearly 17 percent reported always doing so.” The next biggest work detractor was doing personal tasks. “Nearly two-thirds of workers admitted checking items off their personal to-do lists while getting paid. In a similar vein, over 35 percent left home to run errands during working hours.” Set your office hours, and only step away from work during your scheduled breaks or lunchtime in order to stay on task. Likewise, after your set hours, log off your computer and try to refrain from checking your work email throughout the evening.

Schedule Breaks for Yourself During the Day

While it’s important to remain focused during work hours, it can also be beneficial to take short breaks. According to Ferris Jabr, Psychology Today author, “Downtime replenishes the brain’s stores of attention and motivation, encourages productivity and creativity, and is essential to both achieve our highest levels of performance and simply form stable memories in everyday life.” Successful work-life integration is all about finding the right balance. Here’s how you can integrate the two:

  • Block off time on your calendar to take a break
  • Set a reminder to stretch or go for a short walk
  • Eat your lunch away from your workspace
  • Schedule calls to socialize with your coworkers
  • Stick to dedicated work hours

Use Video to Connect

Use video conferencing to connect with your coworkers. When you’re in a physical office, your colleagues serve as natural motivators. However, meeting over a video chat can have the same effect. According to Vonage’s website, “Having face time matters when it comes to building teams that can work together to effectively accomplish their goals.” Collaborating with others over video is a simple way to build meaningful human interactions—especially if you’ve found that remote work has been hampering your productivity and mental wellbeing. After all, two heads are better than one.

Create Processes for Collaboration

A solid process should give everyone the tools needed to deliver their best work from anywhere. Employees should know what is expected of them and what projects are due to avoid confusion or delays. If you don’t have a process that can be used for working remotely, create one.

  • Set weekly meetings: Touch base with your team members to identify what everyone is working on and where assistance is needed.
  • Document everything: The more visibility you can give your team the better. Create a shared document so people can see what everyone is working on.
  • Give regular feedback: Don’t wait until a performance review to give feedback. Compliment good work and bring awareness to inconsistencies to keep the workflow moving.
  • Adjust accordingly: If something isn’t working, change it. What worked before may not be successful now—don’t be afraid to create a new process.

Working from home may be an entirely new and challenging experience for some people. The key to achieving a successful work-life integration is to find what works best for you. Have confidence in your ability to adapt and try to find a comfortable work-life balance.

 

Not Backing Down

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The FTC v. AdvoCare Litigation Continues in a Texas Federal Court as Two Former AdvoCare Distributors Mount Challenge to FTC’s Enforcement Authority.

Largely unnoticed in the publicity surrounding the FTC v. AdvoCare lawsuit in October 2019 was the fact that two former AdvoCare distributors named in FTC’s complaint refused to settle with the FTC. In a filing that could have wide-ranging implications for the MLM industry, former AdvoCare distributors Danny and Diane McDaniel instead challenged FTC’s statutory authority to bring suit in federal court seeking monetary relief.

Shockwaves reverberated through the MLM industry after the October 2019 announcement that former MLM giant AdvoCare and former AdvoCare CEO Bryan Connolly had agreed to a lifetime ban of MLM business activity and payment of $150 million to settle FTC claims that AdvoCare operated as an illegal pyramid scheme and engaged in misleading and deceptive business practices. At the same time, the FTC also announced a settlement with former AdvoCare distributors Carlton and Lisa Hardeman in which the Hardemans received a lifetime ban from MLM activity and were ordered to liquidate their real estate holdings to satisfy a multi-million dollar restitution order.

Could Establish New Precedent

Rather than settle with the FTC, the McDaniels decided to fight back by challenging the FTC’s enforcement authority to sue for monetary relief. A ruling on the McDaniels’ challenge by the U.S. District Court for the Eastern District of Texas is expected later this year. The McDaniels’ challenge to FTC enforcement authority follows two 2019 decisions by federal appellate courts in the 3rd and 7th Circuit Court of Appeals limiting FTC’s authority under Section 13(b) of the FTC Act. If the McDaniels prevail in their challenge, it will likely establish new precedent in the 5th Circuit Court of Appeals, further limiting the FTC’s enforcement authority to pursue overzealous enforcement actions that historically have crippled or wiped out MLM companies.

The McDaniels assert two arguments challenging the statutory authority relied upon by the FTC in seeking monetary damages from AdvoCare and the distributor defendants. First, they argue that the FTC’s authority to file an action in federal court is expressly limited to situations where the FTC “has reason to believe….that a person, partnership or corporation is violating, or is about to violate, any provision of the law…..”

FTC’s lawsuit against AdvoCare, the Hardemans and the McDaniels in October 2019 followed a May 2019 announcement by AdvoCare that it was disbanding its MLM compensation plan because such action was the company’s “only viable option” in the wake of discussions with the FTC. AdvoCare’s decision to drop its MLM business model abruptly ended the independent businesses of thousands of AdvoCare distributors, including long-time distributors like the McDaniels who built large sales organizations over a period of years.

Arguing FTC Lacks Authority

The McDaniels argue that the FTC lacked authority to bring its October 2019 lawsuit because AdvoCare had previously abandoned its MLM compensation structure in June 2019 and the FTC has plead no facts showing that the McDaniels are continuing to engage in or are about to engage in the MLM business activity that the FTC alleges in its complaint is not in compliance with the law. In support of their argument, the McDaniels cite a 2019 decision by the 3rd Circuit Court of Appeals in FTC v. Shire Viropharma, in which the federal appellate court held that Section 13(b) does not permit the FTC to bring a claim based on past conduct without some evidence that the defendant “is” committing or “is about to” commit another violation.

In response to the McDaniel’s challenge, FTC argues that whether the Commission has “reason to believe” a person is violating or about to violate the law to allow FTC to invoke its enforcement authority under Section 13(b) is a determination left to the Commission’s “discretion.” It is hard to fathom how the FTC, in its “discretion” could plausibly allege that the McDaniels “were” committing or “about to commit” a violation of the law given that that AdvoCare had previously ended its MLM compensation structure and the McDaniels had not engaged in any MLM business activity with any other company at the time the FTC filed its lawsuit.

The McDaniels’ second argument challenges FTC’s authority under Section 13(b) to seek large monetary awards similar to those recovered by the FTC from AdvoCare and in previous enforcement actions against Vemma, Herbalife and other companies and their distributors. The McDaniels contend that the plain language of Section 13(b) does not authorize the FTC to obtain monetary relief but rather it only authorizes FTC to seek injunctive relief against a defendant who is violating or is about to violate the law. In support of this argument, the McDaniels cite an August 2019 decision by the 7th Circuit Court of Appeals in FTC v. Credit Bureau. In that case, the 7th Circuit overruled thirty years of its own precedent in holding that Section 13(b) does not provide FTC the authority to seek recovery of monetary relief in regulatory enforcement lawsuits.

If the McDaniels’ challenge is successful, the issue will almost certainly be appealed to the 5th Circuit Court of Appeals, providing a third federal appellate circuit court the opportunity to rule on whether the FTC has overstepped its authority in filing enforcement lawsuits against companies based on past conduct and in seeking large monetary awards when its statutory authority is expressly limited to seeking injunctive relief. Given the FTC’s recent enforcement activity against MLM companies, the ramifications of the McDaniel’s challenge to the FTC’s enforcement authority promises to have wide-ranging and lasting implications for MLM companies, both present and future.

Brent Kugler is a partner with Scheef & Stone in Dallas, Texas. Brent is a prominent attorney is a direct selling industry with extensive experience in representing direct sales, multilevel and network marketing companies in lawsuits, arbitrations regularities matter across the untied states.

Infinitus Helping to Fight Extreme Poverty in China

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Infinitus (China) Company Ltd., one of the leading direct selling companies in the world, is providing poverty alleviation to four areas of China.

The cities of Kashgar, Hotan and Aksu, together with Kizilsu Kyrgyz Autonomous Prefecture in the southern part of China’s Xinjiang Autonomous Region, are part of the Three Regions and Three Prefectures (“TRTP”) defined as areas of extreme poverty in China. The regions and prefectures cover almost one third of the country’s land surface.

In 2014, an audio-visual classroom was built to open a window to the world.

Kizilsu Kyrgyz Autonomous Prefecture is known as the Prefecture of Mountains as mountains make up over 95 percent of the region’s geography. The transportation condition limits local residents to travel, even to the nearest city, Kashgar, despite the distance between the two cities being only a dozen kilometers.

Infinitus has achieved initial success in building a precision-focused customized model for charity programs with over 160 local volunteers contributing 4,100 service hours in Xinjiang.

Tijian Village Primary School, situated in Azhake Township, Atushi, Kizilsu Kyrgyz Autonomous Prefecture, is a relatively well-equipped school where over 600 Uyghur and Kyrgyz students receive education. With a mission to reduce poverty, the local education authority mobilized resources to build a multimedia classroom in the school to help children know the world better.

Audio-visual education means that multimedia equipment, including computers, slides and projectors as well as audio and video recorders, has been incorporated into the classroom instruction. Multimedia equipment is standard in classrooms in developed areas. However, a classroom equipped with audio-visual aids was a distant dream for the students at Tijian Village Primary School.

Infinitus helped accelerate the availability of a modern classroom by donating computers to the school via the Si Li Ji Ren Foundation. On September 16, 2014, 36 computers and 18 computer desks were installed in the audio-visual classroom at the school.

Taking into account that both the students and teachers in the school are from minority ethnic groups, Infinitus assigned bilingual Chinese-Uighur speaking volunteers to educate students on computer basics. The school was connected with Infinitus’ Guangzhou headquarters, located over 5,000 kilometers away, via a remote video call.

The Infinitus volunteers also ran a campaign on their own and raised 30,000 yuan (approx. US$4,197) in donations to fund the equipment updates and facility maintenance. They took a one-on-one approach to address children’s needs and visited them regularly, enhancing the impact of the charity drive.

In 2016, a charity video helped to strengthen the impact of efforts for the public good.

Sayi Village in Atushi, situated some 40 kilometers away from Tijian Village, is another village in the region populated by members of China’s minorities. Over 200 Uyghur children aged 4-6 received preschool education in four classrooms at Sayi Primary School.

Children take turns playing in the crowded schoolyard, whether it be some scattered leaves or pieces of paper that had been folded and unfolded many times. Teachers make use of materials to fashion hand-made dolls for the children as well as cut and paste colored paper to decorate the classroom.

Under the leadership of the local government and other responsible authorities, Infinitus proactively reached out to the school. With the experience accumulated from the earlier project, Infinitus understood that upgrading the teaching equipment available at a school can only meet the most urgent needs. The long-term plan for poverty alleviation is to encourage more people to pay attention to the growth of the children in southern Xinjiang.

In June 2016, Infinitus joined with Si Li Ji Ren Foundation again to amplify the stories of the children by new media. The stories from Sayi Primary School were filmed as charity videos with titles such as “About Children in Xinjiang” and “Find the Most Beautiful You in Xinjiang,” and uploaded to Tencent, Youku and other video media platforms. The videos have now been viewed some 1.76 million times.

With the idea of enhancing the impact of charity effort with small activities, Infinitus invited volunteers to Sayi Primary School on June 1, the International Children’s Day, and brought new desks and chairs for the children, built new amusement facilities and established “one-to-one” individual support plans for 22 impoverished students.

Sayi Primary School said that Infinitus had ushered in a series of good things. For example, a video studio promised to take graduation photos for the students. Several firms reached out to the school, expressing their willingness to do something for the children. In the 8th Online School Contest of Primary and Secondary Schools, Sayi Primary School was named one of the three finalists for the first time.

In 2017, an artificial lawn created a happier childhood.

In Saikezi Adaimu Village, Ha’awati, Jiashi County, Kashgar Prefecture, a kindergarten had just been built with a goal of enrolling children of school age in the neighborhood for free. In May 2017, during the visit to Jiashi County, volunteers from Infinitus found out the situation of backward local infrastructure and insufficient early childhood education facilities. With Si Li Ji Ren Foundation, they jointly built an artificial lawn covering an area of more than 400 square meters for all the teachers and students in this kindergarten.

Before the new term started, the Infinitus volunteers collected the children’s micro-wishes in advance and helped achieve their desires at the event. The volunteers also drew colorful pictures on the walls together with the children, wishing them a beautiful and colorful childhood.

In 2019, a public welfare model helped the children of southern Xinjiang.

In 2019, in TRTP, three more projects were implemented at Akeqiale Village Primary School and two other schools in Awati Township, Hetian District, benefiting more than 710 students directly.

To empower the children to become self-reliant and transform them from “receiving help” to :providing help,” these projects also added social practice elements. With the help of Infinitus volunteers, the children cleaned streets with sanitation workers, helped the lonely elders in the villages clean up, acted as traffic safety propagandists and learned hygienic knowledge in local hospitals.

Since 2014, Infinitus has actively participated in local poverty alleviation through the company’s 30 branches across the country based on customized precision-focused poverty alleviation models. The company hopes that more social forces will join in the fight against poverty.