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Three Direct Sellers Win Best in Biz Awards

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Medical Marijuana subsidiary Kannaway, Medifast and USANA Health Sciences recently won Best in Biz Awards.

Since 2011, the Best in Biz Awards has maintained its status as the only independent business awards program judged by prominent reporters and editors from top-tier publications from North America and around the world, from The Associated Press to The Wall Street Journal. Entrants have spanned many categories and industries from local companies and start-ups to some of the most recognizable global brands.

With more than 700 entries, the this year’s program attracted a record number of entries from an array of public and private companies of all sizes and spanning all geographic regions and industries in the U.S. and Canada.

Direct selling companies winning awards were:

Fastest-Growing Company of the Year – Medium (100-999 employees)

BRONZE

Medifast

Executive of the Year – Small Companies (1-99 employees)

BRONZE

Kannaway

Blake N. Schroeder, Esq., CEO

Most Innovative Product of the Year – Consumer

BRONZE

Kannaway

Baked Chews for Dogs

Best New Product of the Year – Consumer

SILVER
USANA Health Services
Celavive skincare system

Q&A with Milind Pant

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Keeping the global leadership team going— from now to A70, and beyond

Amway began the new year by welcoming in a new CEO. Recently, I connected with Milind Pant to talk about his thoughts and impressions of his inaugural year. He shared his insights, observations and his future goals.

Give us your initial thoughts since coming on board with Amway this past year?

It has been fascinating and I feel incredibly fortunate to be a part of this great company. The idea started with two friends—Jay and Rich—who were pioneers of helping people live better lives. That same spirit is alive and kicking at Amway today. It’s wonderful to be a part of that purpose.

What do you love the most about the direct selling business model?

The passionate energy and optimism of our independent business owners, entrepreneurs and distributors. It is truly second to nothing that I have experienced in my prior professional career. I believe this is a unique strength and outcome of the direct selling business model.

This is the first time the company has gone outside of the family for the CEO leadership. How has your prior experience helped you in your role as CEO of the largest direct selling company?

As I was going through the Amway interview process, my wife and youngest son had the chance to come to the headquarters here in Ada, Michigan. We were able to meet most of the DeVos and Van Andel family members during the trip, and the conversation with them focused less on business strategy and more on getting to know our family. The Amway founding families were so warm, genuine and welcoming. Upon leaving, I remember talking to my wife about the interview process. We both agreed that no matter what happened next, we felt lucky to have met such great people. It was then that we knew there was something very special nabout Amway. It’s something that Doug, Steve and the founding families should be very proud of continuing to build on Rich and Jay’s legacy.

“We want to pair these strengths with the megatrends that are changing the world around us.”

Regarding my experience, I believe I am a true work in progress and am privileged to be in this role. I spent the first 15 years of my career with Unilever, and the last 10 years of my career with YUM! My family and I have truly been global nomads since 2007. We’ve lived in Durban, South Africa; Delhi, India; Bangkok, Thailand; Shanghai,China; Dallas, Texas; and now, Ada, Michigan. These experiences across the globe have shaped my knowledge of people, culture, technology, business, and entrepreneurship. More than anything, I have learned that people around the world are more similar than different. We all have dreams to improve our lives and the lives of our families. And most of us desire to do good for others and contribute positively to the world. This mantra aligns well with Amway’s purpose of “Helping People Live Better Lives.” I look forward to working with our employees and ABOs to continue fulfilling this purpose each day.

Amway had their 60th anniversary this year with the event in Las Vegas. Tell us about what that milestone celebration means for the company?

Amway’s 60th anniversary celebration (A60) gave us the opportunity to thank all of our ABO leaders for living our purpose and building sustainable, growing businesses. As I was speaking during the main stage presentation, I had the help of interpreters who were doing simultaneous translation in 23 languages! This is a great picture of how far we have come since Rich and Jay started Amway 60 years ago. The products and business opportunity continue to inspire people on a global scale, and A60 was a massively important milestone.

Doug, Steve and I had a chance to not only celebrate our past, but to share thoughts on what our journey to our 70-year milestone (A70) will look like, and how we will evolve and enhance Amway’s traditional direct selling model. We took the A60 Vegas celebration as an opportunity to begin designing and executing this journey in close partnership with our ABO leaders.

How does your road to A70 or 2029 transfer to business operations?

It’s all about the journey to social commerce. Our journey to social commerce is about fulfilling our purpose in this fast-changing world and focusing on the new ABO and customer experience. We want to make it easy for our ABOs to delight their customers each day, with amazing products and frictionless shopping experiences.

In designing our future, we will build on our three biggest strengths: The entrepreneurial spirit of our ABOs; the existing, vibrant communities they have built offline-to-online; and our high-quality products from brands such as Nutrilite, Artistry and XS.

We want to pair these strengths with the mega-trends that are changing the world around us. These mega-trends include the gig economy and increasing competition among companies offering additional income opportunities; the expectation of an easy, frictionless shopping experience online; and customer feelings regarding social responsibility, quality and sustainability when buying products. With Nutrilite, as one example, we have a big foothold in this space with our amazing organic farms and seed-to-supplement traceability story.

We are investing significantly in building each of these capabilities, and we are doing this in partnership with our ABO leaders around the world.

Simplifying The Online Customer Experience

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Tips for improving the front-end user experience—and other best practices from our gig economy competitors.

At the 2019 Direct Selling Association (DSA) Annual Meeting during the Growth & Outlook Breakout Workshop, a DSA Research committee member said, “A startling statistic for our industry is that it takes a customer an average of 13 clicks to buy online from a direct sales company while a customer’s purchase with Amazon often requires as little as one click,” shared Director of Market Entry at Younique Jordan Meyer.

Why is it so hard to buy a product from a direct selling company? We can look at our business model for the reasons. Indeed, the personalized service that makes our business appealing to some consumers may, when translated for an eCommerce-based audience, actually be hindering representatives’ ability to close a sale. Many of those 13 clicks, Meyer explained, are tied to the distributor-finding portion of the checkout process. Some customers prefer not to have distributor interaction, while others are turned off by a multi-step checkout experience. Over the years, we’ve seen many direct sales companies roll out a direct-ship option that connects each sale to a distributor but does it on the back end, out of a first-time consumer’s sight. Further, new consumers may be asked upon checkout if they’d like to hear from a distributor or not.

“It takes a customer an average of 13 clicks to buy online from a direct sales company while a customer’s purchase with Amazon often requires as little as one click.”—Jordan Meyer, Director of Market Entry,  Younique

In an industry founded upon personalized relationships between representatives and their customers, this evolution in the checkout process was initially a controversial one and unsettling for some. Nevertheless, the customer is king, and so we adapted, meeting them—or at least some of them—where they were. Direct selling once again found itself trying to be all things to all people. Trying to retrofit a transactional business model to a more traditional one may seem as if direct selling is straying from our original mission. Still, most of us would unequivocally agree that if we’re giving distributors the tools they need to give their customers what they want, then we haven’t strayed at all. In fact, it’s just the opposite.

The Challenge Of Cart Abandonment

Let’s get back to those 13 clicks, though. How many direct selling customers abandon their carts, and at what point in the transaction are they abandoning them? Hundreds of studies have been conducted to measure the average rate of cart abandonment across all industries. The percentages have ranged anywhere from 55 percent to between 80 and 90 percent. The Baymard Institute, a web usability research organization, estimates that abandoned carts represent $260 billion in losses across the United States and EU. Consider that a significant if not majority percentage of those industries studied likely require fewer than 13 clicks to complete a purchase.

Adding to the pressure for direct sales companies to make the checkout process easier is a behemoth called the gig economy. Darren Jensen, president and CEO of LifeVantage, spoke about the gig economy and its influence on direct selling during the 2019 DSA Annual Meeting, telling the audience that direct sellers are “in the business of going out of business. Much of what we do today is becoming less and less relevant each day.

“If we step back and question everything, have we been thinking too much about the big leader and not enough about the masses?”—Darren Jensen, President and CEO, LifeVantage

“As an industry, we’re now moving into what I call the war of the side hustle,” Jensen continued. “We’re competing with the attention of people all around the world for this side hustle. And anyone who competes against us really is our competitor. Typically, we’ve defined our competitors as the people in this room, but that isn’t who our competitors are.” Instead, we’re going up against Uber, Lyft, Airbnb, Shopify, and yes, Amazon, among others. These are companies with market capitalizations worth anywhere from $12 billion (Lyft) to $874 billion (Amazon). Worldwide, the direct selling industry generates a combined annual revenue of approximately $193 billion, according to the Worldwide Federation of Direct Selling Associations (WFDSA); U.S. combined annual revenue is approximately $35.4 billion.

What Can We Learn From Gig Economy Companies?

“We teach that our industry is very easy—you purchase, you share, and you make money,” Jensen said. “What we leave out is the Pythagorean theory and calculus that is needed to figure that all out. Simplicity is killing us—or the lack thereof. No Uber driver can say they make six figures, but they do have approximately 2 million drivers on the road today and a market cap of $50 billion or more. If we step back and question everything, have we been thinking too much about the big leader and not enough about the masses?”

If direct selling is going to compete with the gig economy giants, Jensen said, we have to make doing business with our companies easier. Why do direct selling companies and distributors still find it difficult to attract prospective customers from outside our industry? One reason, Jensen believes, is that we’re continuing to ask customers who their distributors are before they can buy. “Distributors enroll; customers check out,” he said, adding that we need to make it easy for customers who just want products to purchase them quickly and easily, without enrolling them.

The distributor experience is just as important in this equation. The timeliness of compensation attracts aspiring gig economy entrepreneurs. Consider Airbnb; guests pay hosts a portion of their rental fees upon booking and the remainder before their stay even begins. Lyft and Uber drivers can transfer payment to their bank accounts upon the conclusion of a ride.

Although relationships between independent business owners and customers are relatively transactional in nature within the gig economy, companies like Uber and Lyft excel at driving customers to the “masses,” and their strategies may be worth considering. Meyer mentioned Lyft, a company that has used “a whole litany of marketing channels to bring customers onto their platform. Several people in the industry think this is an important model that direct selling needs to adopt, pulling customers onto our platforms and performing more of a matching service. All of these channels are data-driven and optimized.”

“[Gig economy competitors are] “really pushing the boundaries of what the digital world can do. It’s clear that these companies think of themselves as technology platforms first and foremost.”— Jordan Meyer, Director of Market Entry, Younique

Direct selling companies have invested millions in customer retention efforts, including preferred customer programs. Meyer added that while more direct sales companies are engaging in segmented marketing, the practice already is becoming obsolete. Instead of categorizing groups into four or five “buckets,” we should be focused on delivering personalized experiences for the individual, based on browsing and transaction history.

Treating Technology As A Core Competency

Another clear difference between direct sellers and gig economy competitors is technology investment. At companies like Lyft and Uber, software engineers, data scientists and the like comprise a significant percentage of the workforce, while direct selling companies often outsource at least a portion of their technology. By treating technology as a core competency, Meyer said, gig economy competitors are “really pushing the boundaries of what the digital world can do. It’s clear that these companies think of themselves as technology platforms first and foremost.”

We know that direct selling offers clear points of difference that our gig economy competitors will never be able to touch, including tireless advocacy of the rights of independent business owners and a clear code of ethics. So how did our competitors get so far ahead of us in a short period of time?

One of the issues, Jensen said, is public perception of the “bikini and Lamborghini” culture—the emphasis by the few on get-rich-quick lifestyles that can hurt the earnest efforts of the masses. “From a perception standpoint, we all share the blame. We keep going back to that well time and time again. It’s this culture that really has been the reason for the ‘pop and drops’ in our industry for the last 20 years. If we are constantly operating in this gray area that allows people to masquerade as direct selling companies and come in and operate where we are, the regular public can’t distinguish between the two.

“I want to live in the sunlight in full transparency because I believe that the truth is enough. We need to be proud of the fact that direct selling is the best form of entrepreneurialism. If we’re transparent, we will thrive in this new entrepreneur economy.”

How Experience Management Moves The Needle

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Building a brand isn’t just about creating great products. Today’s consumer is bombarded with an ever-increasing selection of merchandise, and while more choices can be valuable, too many choices ultimately lead to what behavioral psychologists call “decision fatigue.” Search after search on Amazon for the perfect product makes the brain tired and ultimately decreases the likelihood of a purchase.

Winning the battle against decision fatigue requires a product that stands out from the crowd, but it also means the interactions a consumer has with your brand matter more than ever. For Amazon sellers, that usually means trying to generate more positive reviews and owning the algorithm. But the world of direct selling has a unique advantage—our distributed networks of independent sellers can be brand ambassadors that are much more valuable than an online review.

These personal interactions between brand, seller, and customer are what make this industry successful in the long term. It explains the projected growth in the industry that will result in over

$400 billion in commissions payouts over the next five years. It’s how we empower sellers to rise above the challenges in their lives. And it’s why experience management matters.

What Is Experience Management?

At its core, experience management is all about being proactive rather than reactive. As your company grows, you’ll have sellers and teams with a wide variety of experience. Leaders in the field are often seasoned sellers and team builders who know what they need to do to drive sales, but most sellers aren’t full-time professionals.

When interacting with a distributed salesforce, effectively managing their experience means knowing what data, content, and training an independent seller will need before they need it, and it requires an intricate understanding of their journey within your organization. With support from sales and usage data, your company can understand and optimize that journey for each and every member of the team.

Why Does Experience Management Matter?

The majority of field sellers will be part-time gig economy workers—folks who already love your product and want to share it. Managing their enrollment, growth, and overall experience with your organization is paramount to retaining them as sellers and expanding your company’s reach. Because they may lack the expertise of their team leaders, newer sellers need direction that’s easy to digest—not to be confused or overwhelmed by data, content, or other interactions with your brand that aren’t relevant to their position in the life cycle.

Successful companies in the direct selling industry are those who deliver a recognizable difference not only for their end customers but for the sellers who interact with them—a difference that makes the lives of our customers and sellers easier and better. The companies that succeed will offer a tailored experience, supported by incredible products. The outdated model where customers orbit companies as users are being flipped. Now, customer-centric companies develop strategies to gracefully orbit their customers, giving their sellers the right tools to interact with them in genuine, impactful ways. These companies win customers seeking valuable, life-improving products because every seller is not only a product expert but a champion of the brand.

Watermark Consulting’s “2019 Customer Experience ROI Study” indicates that companies that excel at improving customer experience management outperform “laggards” by over 120 percent in terms of stock market returns. Their ongoing, 10-year study also shows that experience management leaders outperform the S&P 500 Index by almost 50 percent.

Research from Qualtrics explains what they call the Experience Gap—where 80 percent of CEOs believe their product or service is superior, only 8 percent of their customers agree. Leveraging a large, distributed salesforce can help direct selling companies close this gap between belief and reality, but only if that salesforce can accurately explain the unique value in their products or services.

How Can Technology Make Experience Management Happen?

Think about the technology you keep—you’ve probably tried dozens, if not hundreds, of internet-connected devices and applications. But how many of them actually improve the way your business runs? To become a valuable part of your business, technology needs to make your life easier and better. And when you’re competing for the time of your gig economy workforce, the technology they use has to be simple, elegant, and impactful—if it doesn’t help them sell, they won’t use it.

Studies show that companies who manage experiences effectively improve customer loyalty, experience less customer loss and realize higher profits. But without the right tools, there’s no way to discover what drives that loyalty or leads to that customer loss. It’s why we see such a focus on collecting and analyzing data; companies like Spotify, Google, and Amazon know their customer’s needs and deliver a delightful user experience. In other words, they learn from their customers how technology can make their life better. Shouldn’t the tools we provide our teams with do the same?

From my time in the industry as an independent seller and my experience in the world of technology, I’ve uncovered some of the keys to successful experience management. The list goes on and we’re constantly learning, but here’s how some of the fastest growing direct selling companies in the industry use technology to level up:

  • Frictionless seller enrollment processes
  • Seamless, shareable retail shopping experiences
  • Simple, meaningful, and actionable sales data

Experience management is more than just a couple of buzzwords. It’s the future of successful companies, and it capitalizes on leading-edge technology and data. But it doesn’t have to be complicated for you or your teams: discover what drives sales and loyalty, and align your focus with what you learn along the way.

Even in the face of the changing consumer landscape we’re facing, there are reasons for optimism. Our industry can and should remain relevant, but we have to do our part to compete with an increasingly global and online world of commerce; that means we must focus on empowering our sellers with experiences that help them grow.

Rodger Smith is the CEO and co-founder of DIRECTSCALE. He brings his experience as an entrepreneur in the direct selling industry together with his passion for the technology at DIRECTSCALE headquarters in Lindon, Utah..

 

The Power to Surpass Today’s Inflection Point

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Today we find ourselves facing an inflection point—one driven by online retailers and a new set of opportunities for the American workforce. We know we need to pivot, but moving away from that which is familiar does not mean that we do so alone.

The DSA’s power of Association ensures us all that, as we consider the market landscape and new dynamics, we are not alone. We have the resources to help ensure that we, as an industry, develop the smartest strategies that enlighten solutions revealing new opportunities and the path forward.

Community is something that DSA members identify as central to DSA’s power of Association. Empowering members to share their strength with their peers drives DSA’s mission. This collaboration is what enables direct selling to shape a shared vision for driving the industry into the future.

The DSA’s unique range of programs offers the opportunity for us all to share our knowledge and strength so that our pivot in the face of change is both agile and graceful.

Regional Councils
• Four Regional Councils— Coastal, Mountain, Capital and Cactus—convene top direct selling executives locally to share information, learn about industry trends and participate in the policies and actions of the Association.

DSA New Learning-On-The-Go Webinar Series
• Bringing a new educational opportunity to members when they want and where they are, this webinar series offers valuable insights from those who have blazed trails that are bringing forth tomorrow’s innovations.

Direct Seller Primary Contact Directory
• Relationships are everything, and the personal and professional bonds among individual executives are significant. This directory empowers members to strengthen relationships and engage with peers in new ways.

Communications Toolkit
• Telling the direct selling story is a key to protect the channel’s reputation, and we encourage all member companies to incorporate these materials into their communications initiatives. Please contact us directly with specific requests.

Beauty from the Inside Out

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Seeking to provide value even before they started their business, beauty company BELLAME is building a loyal following thanks to great technology, transparency and great products.

 

BELLAME
Founded: 2018
Headquarters: Dublin, California
Top Executives: Founders Melissa and Scott Thompson
Products: Beauty

 

BELLAMEFor Melissa and Scott Thompson, founding BELLAME (pronounced Bella-Me) was a labor of love. A love that began blooming more than 20 years prior, by accident, or as she now calls it, by design, she left her accounting position at a garbage company in 1995 after having her daughter, Mandi. She started her own advertising company for small businesses, in hopes that she could have better control of her time with her new baby. Her sister-in-law had just moved into town and was looking for an Avon lady. “I had just put an ad in the local paper, my business was growing, and I needed to bring on help. God knew exactly what he was doing, when right next to my ad there was one for Avon. So I signed up as a Representative. I figured, my sister-in-law could get her products, and I could test my advertising.” From that point on, her love affair with social selling began.

“I fell deeply in love with the industry,” says Melissa Thompson, BELLAME Founder. “Here I was selling by accident, and I didn’t have to be away from my girl. I did so well that Avon offered me a corporate role to train their representatives in the local area.”

All told, Melissa has 24 years of experience in the direct selling industry, both as a distributor and on the corporate side. She has worked for some of the top names in the industry: Avon, Shaklee, Belcorp, Stella and Dot, and others.

“I’m grateful for every single role,” Melissa says. “I’ve worked alongside some of the most brilliant minds in the industry as well as with the biggest hearts. Avon really was my first love. The people there taught me the foundation of this business.”

Meanwhile, BELLAME Founder Scott Thompson has his own career specialties, including digital marketing, technology and entrepreneurship. “I had started a tech company ten years prior,” Scott says, “so I got into entrepreneurship and working for myself.”

“I said to Melissa, ‘let’s start a business together so we can be together every day,’” Scott says. “I knew how hard she worked. She’s not a 9-to-5 person. She’s a 24/7 person. The catalyst to get BELLAME going was just so that we could build something together that we believe in.”

ONE NIGHT IN NAPA

In 2016, Scott and Melissa traveled to Napa Valley, California. They had dinner with Melissa’s mom and her stepdad. “I was talking about all things social selling—although this time there was an extra emphasis on all the things I would love to do, if I had my own company,” Melissa says.

“We attracted 100,000 followers before anybody ever knew we were launching a product, just from blogging.”—Melissa Thompson, BELLAME Founder

BELLAMEScott said, “Honey, let’s just start our own company.” The foursome sat around the table, sipping wine and brainstorming about what the name of the company should be. “We decided it had to be simple, memorable, and it’s got to speak to what the brand is,” Scott says. Melissa expressed her love for European luxury beauty, so Melissa’s mother Rose suggested Bella. Melissa said, “That is nice, but this is more than just the idea of being beautiful, this is about feeling beautiful from the inside out.” Rose then blurted out BELLAME. The whole table went silent. Scott proceeded to find the owner of BELLAME.com, who lives in Amsterdam, and negotiated to acquire the domain name later that day.

After that night in Napa, Scott recommended to Melissa that she start blogging about everything she loves about beauty, business and entrepreneurship. She started blogging and sending out surveys to readers. At the time, BELLAME.com was just a WordPress blog.

“We attracted 100,000 followers before anybody ever knew we were launching a product, just from blogging,” Melissa says. “I started sending surveys to them, about what people wanted from their beauty routines, from entrepreneurship, from social selling, compensation plans and training. We gathered answers, and we used them as a blueprint to build on.”

Today, BELLAME’s headquarters are in Dublin, California. They officially launched on July 1, 2018. However, the growth came sooner than they thought.

Luxury Beauty

BELLAME started with four beauty products—the Aqua Lumiere line—which includes a hydrating cleanser, serum, eye cream and moisturizer.

“We create high-end luxury products that are clinical grade and that don’t have any harsh chemicals,” Scott says. “We have two patents that we exclusively have the right to use. We even have high end, eye-candy packaging. From the moment you receive the products, there’s the wow factor. We’re working with laboratories, and we’re creating original products— something you can’t get anywhere else.”

By the end of the year, Scott and Melissa say they will have some 20-plus products—a number way beyond the original four products. “I personally won’t be happy until every single personal care item I reach for each day has the name BELLAME on the label,” Melissa says. “That is where we’re headed.”

In-House Tech Team

Originally, Scott and Melissa planned to use off-the-shelf software for their technology needs. However, they quickly discovered they weren’t happy with this kind of out-of-the-box software due to its limitations. They ended up building their own system and hired an in-house tech team. They built a proprietary system from the ground up.

“We have a highly integrated cloud-based tech system that’s integrated from the logistics, supply chain, support ticketing system, accounting system, back office reporting to ourfront- and back-end website development,” Scott says. “Our proprietary technology is a core strength that we have that allows us to innovate and scale.”

“I personally won’t be happy until every single personal care item I reach for each day has the name BELLAME on the label.” —Melissa Thompson, BELLAME Founder

The couple hired a consultant recommended by the Direct Selling Association (DSA) who told them if they launched on July 1, 2018, and by December had 500 partners that they would be doing well. “By December of 2018, we had 7,500 partners,” Scott says. “And we ran out of inventory two times, and we continued to grow. And here I thought we could take our time.”

In addition to their products, the couple believes their sweet spots are in their technology, transparency and the tribe of partners. “We are unique because we are a brand that has a tech company as its foundation with founders who are building alongside our tribe,” Melissa says. “That means full transparency in everything we do.”

Inclusive Culture

One of the things that differentiates BELLAME from other companies is their determination to involve their tribe in building the brand and its products at all stages of the process. “We wanted people to be a part of truly being behind the brand,” Melissa says.

When the company has a new product that needs a name, they ask all their partners to vote on one. They start with a Google doc that lists the concept of the product, and that gets sent to all partners, who submit their own ideas for a name.

“That Google doc goes out to everybody, then we pick the top picks and put them into a smaller voting pool,” Melissa says. “We just keep channeling it until we have a name.”

“For example, one of our new products is Dream Luxe, a sleeping mask. A member of the tribe, Lacey Gittinger, was the one who picked the name. Winners of the name-picking game are rewarded with prizes and products.”

“The people who are at BELLAME are here because they want to be here.” —Scott Thompson, BELLAME Founder

“BELLAME is about being inclusive,” Melissa says. “It’s about making every partner feel like they count. Our number one goal is that somebody who signed up yesterday to join us feels just as valued and important as our very top leader.”

Looking Ahead

BELLAMEMelissa and Scott are focused exclusively on the U.S. market right now, with no plans to expand into new markets, at least not anytime soon. “We have our heads down, and we’re focused on the domestic market at hand,” Scott says. “We’re still a young company, and we have a lot of growth to do here at home.”

BELLAME’s plan is to align itself with strategic partners that can help scale the company and create proprietary products it can bring to market. “We will continue to find those partners that can help us grow,” Scott says. “We’re with a big logistics center in Dallas that we’re integrated with in every way. We continue to have more partnerships with laboratories across the U.S.”

As BELLAME continues to grow, create new products and attract more partners, Scott and Melissa are excited about the company’s future. “We feel privileged.”

5 Events That Impacted Direct Selling In 2019

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In 2019 Direct Selling Faced Some Strong Headwinds

Throughout this 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.

We began 2019 with troubling news out of China and ended with a landmark change for one of our industry’s biggest companies. In between, a new ingredient from the old world became liquid gold for many direct selling companies, learned customer behaviors are still rapidly evolving, while growth in gig work alternatives continued to challenge our status quo. Finally, 2019 was a year we had to look at ourselves in the mirror and eventually come to the conclusion that the status quo isn’t a path to the future. Our friends at the FTC reminded us not once, but twice. In this year end wrap-up, we examine the five events that had the biggest impact on our channel. We reflect on what we need to do to thrive in the 2020s.

China Cracks Down

For many direct selling companies, breaking into China is a big goal. But when a Chinese company broke the direct selling rules in late 2018, being a direct seller in China became more complex than it already is.

In December, a Tianjin-based health and wellness products company made unsubstantiated claims about how its products can fight cancer. By January, the Chinese government had launched the “Hundred Days of Action,” in which it investigated direct selling companies all over the country, revoking selling rights for 49 products.

Whether or not the government came knocking, all direct selling companies were on edge, and financials took a hit. Earnings at USANA Health Sciences, 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.

“We are looking for stabilization [in China] for the rest of this year, and then we should see a resumption of growth in the early part of next year as the whole 100-day episode is further and further in the rearview mirror.” —Douglass Lane, Securities Analyst

In the most favorable times for direct selling, China can be a tricky place to do business. The government heavily regulates and keeps a close eye on this model, which in China is particularly beset by scams and pyramid schemes. In 1998, China shut the channel down, calling it an “economic cult.” U.S.-based legacy companies like Amway, Avon and Mary Kay helped rebuild trust in direct selling in China, but the country continues to be a volatile market for us.

As of September, the Chinese government was reportedly conducting random compliance checks. These were keeping direct selling companies on high alert, and prolonging the rebound experts were predicting would happen this year.

“The clear theme is that this is going to take a while,” securities analyst Douglas Lane of Lane Research told Direct Selling News in August. “But I get the sense from the conference calls and narratives that these companies are starting to head in the right direction. We are looking for stabilization for the rest of this year and then we should see a resumption of growth in the early part of next year as the whole 100-day episode is further and further in the rearview mirror.

Gigs Dig In

“We are now moving into what I call ‘the war of the side hustle,’ LifeVantage President & CEO Darren Jensen told an audience at the fall Direct Selling Association conference.

Jensen’s right. Companies like Uber, Task Rabbit, Airbnb and other gig income providers have turned our once proprietary playing field into a battleground. We used to be the only choice for people who wanted to make their own hours and control their own income. Now we’re fighting for their attention and commitment.

According to a recent McKinsey Global report, more than 160 million people in Europe and the United States are earning money in the gig economy. This is more than three times the 18.6 million U.S. direct sellers—4.1 million of whom are discount buyers or have no plans to sell the products and 9 million of whom have gone inactive. Direct selling worldwide is a $189 billion market, with North America accounting for $39 billion of that total. But on its own, Amazon, which got into the gig game recently with Amazon Marketplace, a market capitalization of $865 billion. Uber’s market cap is $55 billion.

The lure of non-direct selling gigs is strong because they usually require little capital or training. You don’t need sales skills to be an Uber driver, Lane told Direct Selling News. “You wake up, turn on your phone—and customers fall out of the sky.” On the other hand, Lane asked, are Lyft drivers deeply passionate about being taxi drivers?

“The Hemp Farming Act made hemp legal in all 50 states—it had been legal in 40 prior to that. The law came with several restrictions, but it still opened the floodgates for sales of products with cannabidiol (CBD).”

This is where our industry has a prime opportunity, experts say. We can be competitive by appealing to the desire most people have to work for more than a paycheck. We want what we do to have a greater purpose, and we are wired for continuous change. Direct selling sits perfectly at the intersection of those two things: Our high-quality research-based products and our business opportunities can transform people’s lives in small and big ways.

“During a tight labor market that’s achieved 50-year lows in the unemployment rate, the gig economy has increased the appeal of flexible, part-time earning opportunities,” wrote DSA Market Research Manager Ben Gamse in July. “This should be direct selling’s sweet spot where we can compete and win.”

CBD Sales Soar

In December 2018, when federal lawmakers said they are (basically) cool with hemp now, CBD became the hottest new wellness ingredient to hit the market in years.

The Hemp Farming Act made hemp legal in all 50 states—it had been legal in 40 prior to that. The law came with several restrictions, but it still opened the floodgates for sales of products with cannabidiol (CBD), a nonaddictive oil derived from the hemp plant.

The direct selling industry has dominated the CBD market, with such companies as Kannaway, HempWorx, PrimeMyBody and Green Compass reporting exponential growth. In 2016, Kannaway’s revenue was $2 million, and last year it generated more than $60 million. HempWorx’s sales were $9.6 million in 2017 and $100 million in 2018. Some experts project that direct selling CBD revenue alone will be $1 billion next year.

Midway through this year, the Direct Selling Association (DSA) put a bit of a damper on the enthusiasm about CBD. The DSA code administrator announced that the sale of ingestible CBD products violates DSA’s code of ethics. But then the DSA said it wouldn’t cite member companies that sell CBD products for 90 days. It said it wanted to give the U.S. Food and Drug Administration time to “articulate a path forward” that would exempt CBD from a rule that prohibits using a new substance in food or dietary supplements unless the substance was first marketed as such.

“With the rise of mobile, social, and cloud technologies, customer expectations are increasing dramatically, and they are demanding a more seamless experience.”

Industry executives responded with disappointment. “We believe the DSA has not accurately portrayed the law with respect to CBD,” said Blake Schroeder, CEO of Kannaway. “And we vehemently disagree with their position.” In August, DSA suggested it might extend the moratorium on citations. In September, the industry trade group formally requested clarification on the FDA prohibition and asked the agency to make a timely decision.

Customer Behaviors Are Changing Rapidly

According to a 2017 Direct Selling Association “Evolving Marketplace Survey,” at least 60 percent of companies’ segment business builders from buyers with no intention of selling their product. And roughly half offer a preferred customer program, allowing members to buy products at wholesale prices without having to sell products in exchange for the discount.

We’re getting better, but we need to be even better. Recruiting customers has to be just as important as building our distributor base.

For starters, we could pay more attention to how our retail counterparts are marketing to and serving customers. They’ve been doing this for a long time, and they’re savvy about whom they target and how they talk to them.

The most fundamental changes that are happening right now are centered on the consumer. With the rise of mobile, social, and cloud technologies, customer expectations are increasing dramatically, and they are demanding a more seamless experience. They want to buy products where, when and how they want. In our November cover story entitled “Think Like a Retailer” guest author Wayne Moorehead, CMO of Young Living, stated that we need to remember that customers don’t think in terms of channel, even though we do– they just think in terms of product and availability. This has really brought about the rise of the direct to consumer brand (DTC). It’s fundamentally changing the relationships that companies have with the end-user.

Partnering With Our Distributors On Customer Acquisition

“There is a huge opportunity for us to partner more closely with our distributors, to be more involved in telling the brand story and in customer acquisition,” says Moorehead. “I predict the brands that are able to bring together the best of direct selling with the best of direct to consumer are the ones who will be the most relevant five years from now.

Moorehead went on to say that it’s important that we start acting and thinking more like a retailer, and how we appeal to, communicate with, and provide value to today’s customer. “We need to make learning about interacting with us more convenient, seamless and simple. We can no longer expect our customers, prospective customers or distributors to put up with outdated designs, clunky processes and outdated technologies.”

Finally, says Moorehead “The best way to get more distributors is to get more customers. Customers are the warmest market and most qualified lead pool that we have. They’re the best people to transition into distributors.”

Past Can’t Be Prologue & The FTC’s Heavy Hand

For years, many direct selling pitches led with promises that “You, too, can be a millionaire!” Images of beautiful people in expensive clothing on impossibly luxurious vacations dominated our marketing.

Thankfully, we’ve been moving away from that approach for some time—but subtle and sometimes explicit suggestions that network marketing and certain products can make financial and health worries go away still plague our industry.

It has to stop, say leading industry executives and experts. “The appeal to greed is repugnant,” said LifeVantage President & CEO Darren Jensen at the Direct Selling Association’s 2018 Fall Conference. “We keep going back to that well time and time again, and we need to shift away from it.”

First, massive wealth is not what motivates the majority of people to become direct selling distributors. Only one in five direct selling distributors works 30 or more hours per week, according to the latest DSA research. And of those who are interested in building a full-time business, fewer than one percent will become elite performers, says Direct Tech Labs. These numbers strongly indicate that the majority of people who come to you aren’t interested in being entrepreneurs. They’re picking up side work mostly to cover an income gap while adding some flexibility to their schedules.

ADVOCARE Settles, NEORA Decides To Fight

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 multi-level marketing business to resolve Federal Trade Commission charges 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.

Two top AdvoCare promoters also settled charges that they misled consumers about their income potential, agreeing to a multi-level marketing ban and a judgment of $4 million that will be suspended when they surrender substantial assets.

“We can be competitive by appealing to the desire most people have to work for more than a paycheck.”

Then one month later, the FTC announced they were suing Neora for essentially the same reasons. One difference, Neora has decided to challenge the FTC’s claims and is suing them for essentially changing the rules of the game, which is a fair assessment given some of the language used by the FTC in settlement documents and their media briefings.

The first paragraph of the Neora complaint doesn’t mince words. “A business cannot operate without being able to know the law. Improper attempts to retroactively change federal law and to effectively preempt state law are unconstitutional. In fact, Neora is going as far as saying the FTC is trying to put an end to our long-standing, legitimate, and popular method of making direct sales to consumers: multi-level marketing.”

This is a fight I think the channel is ready for, and we predict many companies will join in supporting Neora’s fight. As Co-CEO Deb Heisz stated to DSN, “In talking with the FTC they wanted to limit commissions in our businesses to only the person making the sale and the person who recruited the person making the sale,” says Heisz. “We’re not willing to make that change and disrupt the businesses that our brand partners have worked so hard to create. The reality is the lawsuit that we filed doesn’t just protect our business; it is to protect the businesses of the 20 million Americans that are engaged in direct selling.”

Going Forward

The significance of FTC’s ruling on AdvoCare—and now with Neora under the same scrutiny—cannot be overstated. So what does it mean to our channel going forward?

For years, the FTC has made their dislike of volume requirements known. Former FTC Commissioner Edith Ramirez in her keynote remarks at the DSA Business & Policy Conference in September of 2016, said the following: Any requirements or incentives that participants purchase product for reasons other than satisfying genuine consumer demand—such as to join the business opportunity, maintain or advance their status, or qualify for compensation payments—are problematic.

As Todd Eliason, Publisher & Editor in Chief of DSN said in a recent post, “If your company is skirting any number of these compensation plan requirements, be aware because you have just been put on notice. This behavior will not fly with the FTC going forward. Yes, you can take the risk and fly under the radar for the next five years, but is it worth losing your company over? This means looking at the purchase requirements for paying out bonuses, maintaining certain ranks or commissions, along with any sponsoring fees, even hidden fees.”

Rooting Out The Bad Actors

“If we are constantly operating in this gray area that allows operators to masquerade as legitimate direct selling companies, the regular public can’t distinguish between the two,” says Jensen. “I want to live in the sunlight in full transparency because I believe that the truth is enough.”

Fortunately, most companies in this industry are committed to ethical business practices, and we are slowly changing perceptions. But we still have to be aware of and do our best to counter stereotypes. “The misunderstandings of our industry are sometimes rooted in truth,” says Eliason. “There are people who have behaved badly, and maybe we haven’t always corrected those bad behaviors quickly enough. We need to call out any bad actors; if we don’t, it hurts everyone.”

Looking In The Mirror

Direct selling has been doing a lot of soul searching lately, and that’s a good thing. Asking tough questions about who we are and who we want to be moving forward is the only way to determine whether we’re positioned correctly for growth. We are an industry built on the idea that doing things differently is the surest road to success. So let’s embrace these opportunities for change and see where they take us.

Balancing Customer Focus with Distributor Loyalty

Half the companies that responded to a 2017 Direct Selling Association (DSA) “Evolving Marketplace Survey” said they allow customers to order directly from the company, bypassing registered distributors. While this reflects the trend toward direct selling companies being more customer-oriented, some industry executives think online direct-to-consumer sales are a huge threat to the channel.

In August, new Avon CEO Paul Yi announced the company would no longer sell directly to consumers on Avon.com and would instead use online tools solely to support business builders. The news was applauded by some, including former Direct Selling News Publisher & Editor in Chief of John Fleming, who wrote an open letter to Yi in August: “There are many who found your [decision] to be the equivalent of a breath of fresh air. … a demonstration of leadership that recognizes the Avon Representative as the focus of the brand and the chosen channel of distribution.”

Jeff Kaufman, outgoing Chair of DSA’s Research Committee, also believes that the industry must be careful to preserve the things that make it unique in the retail marketplace—including the critical role that distributors play. “Direct selling, like any industry, needs to evolve with macro and consumer trends,” he told DSA Market Research Manager Ben Gamse in July. “But it should not compromise on its inherent points of differentiation, such as the priceless personalized experience a customer has with their direct seller.”

Still, the industry must be careful not to fall back into the patterns that put it in regulatory hot water to begin with.

We must continue to collect data that tells us who our retail customers are and who our distributors are. We must be able to quantify real demand for our products. We also have to continue to study what our customers want so that we can use technology—whether or not we have an online shopping cart—to create seamless buying experiences.

Jordan Meyer, Director of Market Entry for Lehi, Utah-based Younique, talked at the DSA Growth & Outlook breakout workshop in June about the ride sharing channel and how it has created a win-win for drivers and riders.

“If you’re a driver, you don’t have to do anything [to get customers],” Meyer said. “You just sign on to the app, and the customers are there waiting for you. I know several people in the industry think this is an important model that direct selling needs to adopt—pulling customers on our platform and matching them with distributors.”

Kyäni Founders Kirk and Jim Hansen Among Those Killed in South Dakota Plane Crash

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According to EastIdahoNews.com, the Hansens and six other family members died when their plane went down in a field near Chamberlain, South Dakota, according to relatives. The Hansens were executives with Conrad & Bischoff, Kyäni and KJ’s Super Stores.

 

Twelve people were on the Pilatus PC-12 that took off shortly before 12:30 p.m. CST from the Chamberlain Municipal Airport on its way to Idaho Falls. The Chamberlain area was under a winter storm warning and the National Weather Service said visibility was a half of a mile at the airport.

 

The plane crashed shortly after takeoff about a mile from the airport, the Federal Aviation Administration said in a statement. The pilot and two children were among the nine who perished. The three survivors were hospitalized in Sioux Falls, according to Brule County State Attorney Theresa Maule.

 

The Brule County Sheriff’s Office is investigating the crash, alongside the FAA and the National Transportation Safety Board. The cause of the crash has not been determined.

 

Flight Aware listed the plane that crashed Saturday as registered to Conrad & Bischoff Inc., a petroleum products distributor based in Idaho Falls, Idaho. The Hansens were executives with Kyani, a direct selling company which markets nutritional, health and wellness products, as well as with petroleum products distributor Conrad & Bischoff and KJ’s Super Stores.

  

“The men and women of law enforcement, first responders and medical professionals should be commended in their heroic actions to rescue the victims in extreme weather conditions,” Maule said. “Our entire community has been praying for the individuals involved and their families.”

UPDATE:

Travis Garza, President of Kyani, said in a Facebook post that an airplane crash on Saturday afternoon killed company founders Jim and Kirk Hansen.

Garza also stated the wreck also killed Jim Hansen Sr.; Kirk Hansen’s children, Stockton and Logan; his sons-in-law, Kyle Taylor and Tyson Dennert; and Jim Hansen’s son, Jake, and grandson, Houston.

Garza identified the injured as Kirk’s son, Josh, and Jim’s son, Matt, and son-in-law, Thomas Long. All three were hospitalized.

The East Idaho News, citing relatives, reported that the family had been on a hunting trip. Kirk Hansen is a licensed pilot.

Your Business In Focus

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Medifast/OPTAVIA is a great example of how to clarify your message, focus on what sets you apart and shine the spotlight on your product hero.

You can’t have too much of a good thing is a lie that leaders often fall for. It’s the ideology that if one bestselling product is good, three would be great; that for growth to happen, everyone within the company must be working on multiple projects with different goals in order to stay on top. Many leaders have been conditioned to believe that if you’re not always leading the way, then you’re falling behind. And that’s true—to a point. No brand or company can be the leader in every category, and those that try often turn around to discover that no one is following.

Focus Amid FOMO

Much of this disjointed approach to leadership—this tendency to take on too much—can be attributed to FOMO, or the fear of missing out. When leaders see their competitors promoting new products or heralding their trailblazing technology, it can be tempting to chase down those same initiatives—and a few extra for good measure—to stay relevant. It’s a justified concern since missing out in business can be devastating for profit margins and reputations. Still, those fears, although rational and real, can’t all be attacked successfully at once. In fact, doing so could have the opposite effect for the bottom line, sending revenues tumbling as distracted customers lose sight of what truly makes their favorite brand shine.

But FOMO has an antidote: focus.

Simplify, Support and Strengthen

Successful companies are typically identified by a product or service that differentiates them from the rest of the market. Starbucks, for example, offers an intentionally simplistic menu in order to shine a spotlight on coffee, the flagship product that has built brand loyalty and consistent customer traffic.

This isn’t to say that Starbucks doesn’t offer other products, but those other offerings aren’t the main event. Everything else in the store, from the biscotti to the travel mugs, serve to support the Starbucks product hero.

But even heroes can begin to grow stale in a marketing landscape that prioritizes the new and novel. When this happens, many leaders pitch their reliable seller and send their departments scrambling to create and innovate from scratch, when the most effective option might be to simply strengthen the original product or service. Sometimes all that’s required is to bring the same original product to customers in a fresh way.

“FOMO has an antidote: focus.”

Old Spice accomplished this and shed its reputation as “your grandfather’s deodorant” with its viral rebranding campaign that depicted former NFL wide receiver Isaiah Mustafa on a horse who urged consumers to “Smell like a man, man.” Without changing the brand’s logo or altering its focus on men’s body care products, the company reintroduced itself to consumers, generated tens of millions of YouTube views and grew their 3,000 Twitter followers to almost 50,000 in 72 hours.

Change isn’t always profitable or wise, but updating the original product that customers have come to know and love can combine the buzz of a new product with the predictability of a bestseller.

Reinvent, Rebrand And Refocus

Founded in 1981, Medifast has learned the art of reinventing itself while staying true to its original focus. The company has long been best-known for its pre-packaged healthy meals, snacks and shakes, and in 2002 broadened its influence through its direct selling channel, Take Shape For Life. By 2015, this offshoot of Medifast had attracted 12,000 active health coaches who operated as distributors for the Medifast product and message.

“Companies seeking to reinvent themselves or their flagship product could look to Medifast/OPTAVIA’s example for a copy-cat worthy rebranding campaign. The major takeaway? Stay focused.”

In 2016, Medifast announced it would be refocusing its efforts to strengthen and support its direct selling channel’s success. Rebranding Take Shape For Life as OPTAVIA, Medifast leaned hard on what set it apart from the competition—its trained coaches—and focused its energies there, integrating its coaching model into all channels of distribution.

The value of this focus became evident over the next two years, as the company’s revenue and distributor growth reflected the increased support and promotion of the OPTAVIA brand. Fourth quarter revenues the following year increased 32.4 percent to $68.6 million, up almost $17 million from the previous year’s fourth quarter earnings. In 2018, the company’s revenue reached $501 million and earned parent company Medifast a spot on the DSN Global 100, in no small part to OPTAVIA-branded products, which, in the first quarter of 2019, represented 73 percent of the company’s goods sold. That shift toward rapid growth appears to be continuing, with 2019 third quarter revenue reaching $190.1 million—a 36.5 percent increase from the same quarter of the previous year. Simultaneously, the number of active earning OPTAVIA coaches during that same quarter increased 42.5 percent, totaling 32,200. If the company continues this pattern of sustainable growth, spurred by its OPTAVIA-led reinvention, Medifast revenues are expected to break the $1 billion mark by 2021.

The Customer’s Always First

As the OPTAVIA evolution began, a new CEO and board member, Dan Chard, was brought in who understood the turning point that this rebranding represented for the company. “Bringing it all together—the clinical, medical credibility (of our Medifast history) with the lifestyle of OPTAVIA brings together the credibility of the past and a vision for the future, which inspired our integrated coach model,” Chard told Direct Selling News in 2018. “We continue to work with doctors, (but today) we offer the ability for those doctors to become either coaches themselves or have somebody in their office become a coach to fulfill that mission.”

“By focusing intently on the customer’s unique and customized needs, and utilizing health assessments, OPTAVIA coaches can deliver quality and value to their customers that impersonal competitors can’t compete with.”

Coaches are the company’s key differentiator, and with them leading the way, Medifast has been able to supercharge the interpersonal nature of the direct selling structure, creating a heightened customer acquisition focus. OPTAVIA coaches are trained by Medifast and given a mission to help customers explore their habits, define their own goals and discover the underlying behaviors that might be holding them back. By focusing intently on the customer’s unique and customized needs, and utilizing health assessments, OPTAVIA coaches can deliver quality and value to their customers that impersonal competitors can’t compete with.

The Numbers Don’t Lie

Almost four decades of tracking revenue and testing their system have provided Medifast with tangible evidence of what works and what doesn’t. Through those real-life experiments, it became obvious to the company’s leaders that customers—or clients, as they’re known in OPTAVIA—experience greater success and deliver more repeat business when they take the products while linked with a coach. By tracking those metrics, the Medifast leadership was able to laser-focus their rebranding efforts and strategically position their resources to support what the numbers had already proven would deliver the greatest return. With this unified focus, the field was charged with a mission that was undiluted by confusion or overly ambitious multitasking, so that even when tasked with different objectives, the overall emphasis remained the same across departments and downlines.

Companies seeking to reinvent themselves or their flagship product could look to Medifast/OPTAVIA’s example for a copy-cat worthy rebranding campaign. The major takeaway? Stay focused. Focus on what differentiates you from the market and then throw your resources, supporting products and attention behind shining the spotlight on the one thing that your competitors envy: your product hero.

Plexus Wins Scottsdale Chamber Award for Best Big Business

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Plexus Worldwide has been named the top honoree for the 2019 Scottsdale Chamber of Commerce Sterling Awards in the Big Business category.

This distinction recognizes people and companies which go the extra mile to make Scottsdale a great place to do business. Plexus was selected for its contributions to the business community, evidence of future growth and a commitment to community stewardship.

“The Sterling Awards recognize the great accomplishments of businesses in Scottsdale,” said Mark Stanton, president and CEO of the Scottsdale Chamber in a prepared statement announcing the finalists. “The honorees represent innovation, success and the highest standards of business practice excellence.”

The selection committee chose Plexus as the honoree in the big business category over the other finalists Hotel Valley Ho and Wells Fargo. In all, there were four categories and 12 finalists honored at the 34th Annual Sterling Awards luncheon held Friday, November 15 at the Embassy Suites Resort in Scottsdale.

“Plexus is proud to be a part of the Scottsdale community and this prestigious recognition from the Chamber of Commerce means so much to everyone on our team,” said Tarl Robinson, founder and CEO. “We want to congratulate all the finalists, from the large banks to the small nonprofits, because every group recognized by the Chamber has made a contribution to keeping business strong in Scottsdale.”

“This recognition is really a tribute to our amazing employees based here in Scottsdale,” added Alec Clark, founder and president. “In addition to recognizing Plexus’ excellence as a business, the Chamber highlighted our community involvement and commitment, which makes us extremely proud.”

Social Strategies that are Winning

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For the past few months, you have seen in the magazine our DSN Digital 100—a comprehensive ranking revealing the social media reach and engagement of top direct selling companies. Four categories include social media size, social media engagement, 30-day unique visitors and 30-day pageviews. Whether it’s on Facebook, Twitter or Instagram, these companies employ a different social media strategy based on their individual audiences and goals.

Some companies create content for existing customers and distributors, while others try to attract new ones. Some focus on images, while others use more video. We examined the social activity of four of the highestranking companies to determine what’s working and what posts received high engagement such as likes, retweets, shares and comments. We also discovered some unique strategies and campaigns.

Before we get into the specific companies, here are a few key common factors in the most popular and engaging posts.

  • The core intent was to bring value to followers with educational information or tips on using products.
  • Posts encouraged followers to interact by asking questions.
  • New product posts typically included a campaign that lasted several weeks.
  • Consistency is key. Daily or weekly themed posts build anticipation and keep followers engaged.
  • Instagram images featured clean, light backgrounds or elements related to the specific product to create context.
  • Corporate executives often engaged with followers on video.

LIFEVANTAGE’S social media engagement rate jumped 4.12 percent in our September issue to 22.81 percent in our October issue. The company posted short teaser videos to build anticipation for a new anti-aging product, including a 1-minute Facebook video that generated more than 250 reactions and 161 shares. They also promoted events with short teaser videos featuring event speakers, such as Kindra Hall, with special messages to distributors.

The LifeVantage Legacy Trip, a charity mission, was highlighted on Instagram with the hashtag #LIFEVANTAGELEGACY. Posts included a balance of images and short videos of the trip and compelling infographics of impact statistics such as “90-plus children have shelter.” Other successful Instagram posts include short videos of “nutrition hacking” tips, such as how to defeat sugar cravings and how to mask the taste of vegetables by blending them with fruit smoothies.

PAPARAZZI sells fashion accessories for $5 each. The company maintain s the same brand and overall design across all social plat forms and runs contests for g if t cards encouraging social media engagement. Videos offer a sneak peek at new products and accessory collections. One Facebook video got 50,000 views and was shared 1,200 times. On Instagram, the company used graphics to count down the days until its convention . Each post had different information and teasers ab out the event.

Paparazzi’s most successful and engaging recent campaign was the Selfie September Promotion run on Facebook and Instagram. It encouraged consultant s to post selfies wearing accessories and holding a sign that included a specific personal goal they want to achieve. The hashtag #SelfieSeptember2019 helped spread awareness. One winner was selected every day, receiving exclusive and unreleased accessories. One grand prize winner was selected at the end.

BEACHBODY appeared in the top 10 in social media engagement rate twice, moving up to sixth last month. They post a few times per day on Facebook, and roughly one to two times per day on Twitter and Instagram. Most postings carry through to all three platforms with a uniform message and look. Beachbody regularly leverages the followings of its celebrity trainers, which creates a synergy.

Before-and-after picture graphics, along with testimonial quotes and stories, are some of the most shared Facebook posts. Facebook and Twitter regularly include links to healthy recipes. A multi-platform campaign promoted a new six-week workout program with short sample videos plus videos submitted by users who had access to a sample of the workout. Most social posts encourage engagement by asking questions or asking followers to comment with their opinions.

Social Strategies

doTERRA ranked fifth in social media size and 10th in engagement last month. The company’s overall message across all platforms is educational and less promotional, teaching people how to use products, which oils to combine, as well as sharing user tips and health trends.

The company’s commitment to purity is illustrated in informative posts, such as a 2.5-minute Facebook video highlighting the unique harvesting and extraction of turmeric for a new product. It was shared 3,600 times and received several hundred comments.

Product images on Facebook and Instagram are often shown in context of people using the products or with backdrops and other elements relevant to the essential oils. Convention promotional videos previewing keynote speakers and teasing new product announcements encourage followers to engage in conversation.

Voice Ordering is Here to Stay

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One in four Google searches is made through the voice feature. Today, you don’t even have to get off your couch to order a pizza. Just tell your voice-activated device you want a large pepperoni with jalapeños and extra cheese. You can even tell it to order your weekly groceries.

Consumer shopping habits are changing rapidly, and voice technology is transforming decisions on a massive scale. According to Global Web Index, about 25 percent of 16-24-year-olds use mobile voice search, while Social Media Today says that 50 percent of people already use voice search when researching products. A consumer report by Navar revealed that 22 percent of voice device users make purchases directly through their device, and 17 percent have used it to reorder items.

Voicecon, a three-day conference hosted by Gary Vaynerchuk’s company Vayner Media, attracted more than 400 executives from many different industries to discuss the state of the union in voice and digital audio. “The reason I wanted to do Voicecon is everybody here is underestimating how voice is about to change their lives,” Vaynerchuk said in a video recap for the event.

Customers want a seamless, customized experience from ordering to delivery. Voice provides a frictionless experience that consumers have never seen. Research firm OC&C Strategy Consultants says voice shopping is expected to nreach $40 billion in 2022, compared to around $2 billion in 2018.

Dominos, Wingstop, KFC and Starbucks are just a few popular chains pioneering the integration of voice ordering with some creative ways to connect with customers. “Voice activation has become common in their homes and on their phones,” says Kevin Fish, Vice President of Digital Technology at Wingstop. Total digital ordering, including voice, accounts for more than 20 percent of the company’s sales.

Starbucks introduced My Starbucks Barista in 2017—a technology that allows customers to speak orders into an app and accepts text-based orders. Dominos’ human-like virtual voiceordering assistant, called Dom, works on iPhone and Android devices and integrated with Alexa and Google Home devices in 2016. Since then, it has already surpassed half a million orders.

Popular catchphrases are a big part of Dom’s appeal to help strengthen the Dominos brand and customer loyalty. There are a few negatives of voice ordering that still need addressing. It can be more difficult to confirm orders without a screen when ordering through a device like Amazon’s Alexa. Certain accents can still be challenging for some technology to interpret. Many people are reluctant to say their credit card information out loud. However, voice shopping is only going to grow, and the three key factors are speed, convenience and customization.