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Natura &Co, Avon Close to Closing Transaction

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Following the May announcement that it had reached an agreement to acquire Avon Products, Inc., Natura &Co recently announced that it has completed important steps towards closing the transaction.

As previously announced to the market, Natura &Co Holding S.A. will be the new holding company for the Natura &Co group, having dual listing in the Brazilian and in the New York Stock Exchanges.

Most recently, on September 25, 2019, Natura &Co Holding S.A. obtained approval from the Brazilian Securities Commission (CVM) for registration as a publicly held company, and on September 30, 2019, the U.S. Securities and Exchange Commission (SEC) declared effective Natura &Co Holding S.A. registration statement on Form-4. These approvals will enable Natura &Co Holding S.A. to be listed on B3 in the Novo Mercado segment and on the New York Stock Exchange (NYSE) through the issuance of level II ADRs, and are important steps in the process of closing the deal with Avon Products, Inc.

Natura &Co also announced that on October 2, it successfully concluded the solicitation of consents on behalf of Avon Products, Inc. for the 2023 and 2043 Notes with respect to change in control provisions that would be triggered by the business combination of Natura &Co and Avon Products, Inc.

PrimeMybody’s Mission to Revolutionize the Hemp Oil Industry

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Cannabis & Tech Today recently conducted an interview with PrimeMyBody CEO Paul Rogers to learn more about hemp and how the company is working toward creating a more sustainable industry.

To learn more about the science behind their innovations, Cannabis & Tech Today also spoke with PrimeMyBody’s Chief Medical Advisor Dr. Cheng Ruan to discover how their studies and clinical trials are adding to the growing canon of hemp research.

C&T Today: A lot has changed for the hemp industry since the passage of the 2018 Farm Bill. How do you see the market evolving as hemp becomes more available and more affordable?

Paul Rogers: From a business standpoint, it’s certainly becoming more competitive. I do love the fact that hemp oil helps people in so many ways. It’s going to be wonderful for health, not only in the U.S., but the world as more people begin to understand what it does and adopt it.

We’ll have to move to some level of self-policing. I don’t want it to come from government, so the industry will have to help establish standards because the quality of the CBD and hemp oil that’s out there is just all over the map and it’s hard for people to understand what’s high quality.

C&T: What role do you think major companies should play in making hemp a sustainable industry?

PR: Whole Foods is the analogy that I like to use. Whole Foods started here in Austin in the early ‘80s with the organic food movement. In order for the organic food movement to become sustainable, they had to create an outlet for people who were growing organically in order to be able to get the products to the endline consumer. So they created that outlet, created awareness, and provided education. Whole Foods gave farmers physical stores where they could sell the produce and then they began to grow.

So as Whole Foods became a $35-billion company, they also made billionaires on the supply side. The people that created a whole new science around natural fertilization and pest control, instead of using pesticides or fungicides, became wealthy as well. Farmers’ lives were changed forever. By creating the outlet, Whole Foods was able to grow and then sustain the organic movement.

I think we have the ability to do the exact same thing here. If we continue to grow and create an outlet for these farmers—and have strong quality control, from how the hemp is grown, how it’s handled, how it’s extracted—then you’re constantly building the infrastructure of the industry that supports that endline, high-quality product.

I think that’s ultimately what creates long term sustainability—these farmers have to know that they get rewarded for growing a really high-quality crop—treating it in the right way, handling it in the right way.

On our side, as we build the market for it, the farmers are able to make more money. They invest in their infrastructure. They buy more land, they plant more crops, they buy more extraction machines, or we buy the extraction machines and partner with them, and so on.

From a sustainability standpoint, it’s not just the sustainability of hemp oil, I always have to be thinking about the sustainability of PrimeMyBody. What do we need to do so that we’re a thriving business 10, 15, and 20 years from now?

C&T: What’s unique about how PrimeMyBody’s hemp oil is created?

Dr. Cheng Ruan: For this formula, PrimeMyBody focused on not adulterating any of the cannabinoids or terpenes. The focus is on very broad spectrum, not just full spectrum, to highlight a lot of the naturally occurring cannabinoids and terpenes. PrimeMyBody also focused on enhancing certain terpenes for the flavor profile, rather than using artificial sweeteners.

The company also focused on the entourage effect and how easily the cannabinoids and terpenes balance each other. It’s all about balance. Another aspect of it is neuro-regeneration, and that’s where the cannabigerol, the CBG component, comes in. There is a large amount of cannabigerol in the product.

I also noticed that, when ethanol is used to extract hemp, there is often ethanol remaining in the final product. What I found out clinically is that ethanol can actually inhibit certain portions of the brain that we would see on brain mappings of people who have a history of alcohol abuse, so we were passionate about making a completely ethanol-free version.

C&T: How does PrimeMyBody use sonicated nano tech liposomes for this formula?

CR: That’s what is exciting about this and that’s what is revolutionary – you have a superior delivery method with very broad-spectrum terpenes, terpenoids, and phytocannabinoids in a non-THC formula without any sugars or anything added that’s not necessarily beneficial to the body.

Liposome technology has been used by a lot of pharmaceutical agents, including chemotherapy, to help deliver drugs to the target cells. A liposome is a sphere, the outside of the sphere is made up of phospholipids called phosphatidylcholine. Inside the actual sphere is the active component which could be a cannabinoid or terpenes—in this case it’s both.

The liposome is designed to deliver active ingredients into the cell membrane. We have cannabinoid receptors all over our body, in pretty much every organ, so of course we would like a higher penetration. Theoretically, the smaller the liposomes go, the faster and better it penetrates, though this is not proven clinically yet.

The exciting part about the passing of the Farm Bill revolves around clinical trials with studies. We’ll be able to get much easier approval on some things, so we can actually look at clinical trials rather than just lab and animal data. That’s where PrimeMyBody wants to go and it’s looking to be at the forefront on the highest technological level and the highest clinical level in terms of what can be used for clinical data.

The post PrimeMyBody’s Mission to Revolutionize the Hemp Oil Industry appeared first on Cannabis & Tech Today.

Indian DSA Partners with Three State Governments to Raise Consumer Awareness

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Indian Direct Selling Association (IDSA) plans to partner with three state governments to help consumers differentiate between a direct selling entity and a Ponzi scheme.

IDSA will meet with Maharashtra, Tamil Nadu and Himachal Pradesh in order to come up with consumer awareness programs under the Vivek Katoch platform as people still face hurdles in making the differentiation.

“This has been a big challenge for the direct selling industry in India,” said Vivek Katoch, chairman of IDSA. “The government has finally started realizing the real potential of the industry. The notification of direct selling model guidelines in 2016 and passing of Consumer Protection Act 2019 have clearly distinguished between a direct selling entity and a Ponzi scheme.”

The direct selling sector is also dealing with the problem of unauthorized selling of its products on e-commerce platforms.

Talking about the recent tussle between e-commerce platforms and direct selling companies, Katoch said IDSA has sought government support, and the ministry of consumer affairs is working on a policy framework to regulate the e-commerce platforms.

In August this year, Amazon Seller Services has moved the Supreme Court against Amway, Oriflame and Modicare, challenging a Delhi High Court judgment barring e-commerce platform from selling products of direct selling companies without their authorization.

In response to the public notice calling for suggestions and comments on the draft e-commerce policy, IDSA has recently submitted views of the direct selling industry. “IDSA is of the firm opinion that any industry or sector needs certain guidelines so that interests of the parties associated indirectly or directly with it are unharmed,” said Katoch.

According to Katoch, the direct selling industry in India is growing at a good pace and has the potential to employ youth, especially women. “The industry grew around 13 percent in 2018-19 with sales totaling around Rs 13,000 crore,” he said.

Survey: More Than Half of Women Small Business Owners Overcame Greater Obstacles Than Male Counterparts

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With one out of every five small businesses failing before the end of their first year, opening and running your own business is an enormous challenge.

According to a new Groupon survey, it’s even tougher for female entrepreneurs with more than half of respondents, 56 percent, saying that they had to overcome greater obstacles than their male counterparts and nearly 50 percent of respondents saying that they were held to a higher standard when trying to open their own business.

The poll, commissioned by Groupon for October’s National Women’s Small Business Month, surveyed more than 850 women small business owners to find out what sort of challenges they face, the best states for women to open their own business, why these entrepreneurs decided to become their own boss, how they achieved success and the most important issues they want to see addressed in the 2020 presidential election.

“As one of the largest marketplaces of small businesses anywhere in the world, we’re thrilled to honor female entrepreneurs and recognize the contributions and value they bring to our lives on a daily basis and to the communities we call home,” said Sarah Butterfass, chief product officer and Women at Groupon executive sponsor. “Many of the women that we interviewed had to overcome unique challenges in order to get their business off the ground and offered a number of key insights for other women thinking about starting their own business.”

Overcoming Unexpected Challenges

Seventy-one percent of women small business owners reported that they faced unexpected challenges when they opened their business. Some of these challenges included: balancing a business and a family, struggling to be taken seriously, defying social norms, owning their own accomplishments and gaining access to capital. Thirty-four percent of women small business owners said they had to finance the opening of their own business through personal savings or by borrowing from a retirement account.

Ranking the Best States to Start Your Own Business

Taking into account a number of different factors such as barriers to entry, economic conditions and available small business resources, Texas, Illinois, Michigan, Indiana and Tennessee ranked as the best states for women to start their own business. Massachusetts, New Jersey, Washington, South Carolina and Ohio rounded out the top 10. The top five ways identified by survey respondents in which state officials can help small businesses are: lowering or simplifying taxes, offering more small business resources, improving access to healthcare and insurance benefits, making housing more affordable and creating greater access to capital.

Becoming Your Own Boss

According to the survey results, being your own boss, having a flexible schedule, pursuing your passions, gaining more control over your future and receiving equitable pay were the top five biggest reasons women went into business for themselves.

Achieving Success

Of surveyed respondents, it took an average of nearly three years to make their small business a success. Entrepreneurs said that putting in the hard work, taking pride in the quality of their product or service, building a personal network, serving an underserved market or space and having innovative business ideas were the biggest keys to their success. Thirty-six percent of survey participants said they work more than 40 hours per week, and 76 percent stay up at night worrying about the success of their business.

Making Their Voices Heard in the 2020 Election

Women small business owners were split on the Trump administration’s impact on small business ––32 percent of those surveyed said that the administration has had a positive impact on their business and 31 percent said that it has had a negative impact. When it comes to the Democratic presidential candidates, more than half of the women small business owners who plan to vote during the primaries don’t think any of the candidates will positively impact small businesses. Of the respondents who expressed a preference, Sen. Elizabeth Warren was identified as the leading candidate who could have a positive impact on small businesses. The Massachusetts senator was followed by former Vice President Joe Biden, Sen. Bernie Sanders and Sen. Kamala Harris.

The top election issues identified by women small business owners were the following: healthcare, taxes, immigration, the economy and gun control. Finally, 54 percent of respondents said they feel it’s likely that the U.S. economy will go through a recession in the next 12 months.

National Women’s Small Business Month was created by the Small Business Administration to celebrate the contributions of women-owned businesses. According to the American Express 2019 annual State of Women-owned Businesses Report, there are nearly 13 million women-owned businesses in the United States––supporting over 9 million jobs and generating $1.9 trillion in revenue.

The SGAC Elects Mary Kay’s Theresa Flores As President

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Theresa Flores, senior manager of Public Affairs for Mary Kay Inc., was elected president of the State Government Affairs Council, (SGAC) at the organization’s annual business meeting in August.

In her role at Mary Kay, Flores develops and recommends policy positions that protect the company’s direct selling, product and global trade interests focusing on engagement with legislators, governments and NGOs.

When asked about her election to the board of SGAC, Flores stated, “At Mary Kay, we believe in a larger purpose: helping others to achieve their dreams. That value applies nicely to the State Government Affairs Council and their continuous efforts to champion for excellence and represent state government affairs professionals. I’m looking forward, with the support of the SGAC board of directors, to lead this nationally respected organization.”

Theresa Flores co-chaired the 2013 National Summit and has served on the National Summit and Leaders’ Policy Conference planning committees for many years. She has secured speakers for SGAC meetings and has served as a speaker and moderator. She served on the 2013 Nominating Committee, chaired the Education & Training Committee for several years, and has served on the Member Services Committee. Flores has been active in member recruitment and has helped organize and co-host several regional networking events. She was in the inaugural graduating class of the State Government Affairs Professional Certificate program and is a Bronze level graduate in the Advanced Certificate Program.

Joining her in the leadership of SGAC are the other officers elected at the meeting: Vice President Laura Dooley, eBay Inc. / StubHub; Treasurer Emory Wilkerson, State Farm Insurance Companies; and Secretary Tom Foulkes, Entertainment Software Association. Also part of the leadership is the Immediate Past President David Christman, National Beer Wholesalers Association.

Beautycounter Names Ana Badell COO, Patty Wu CCO

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Counter Brands, LLC, parent company of Beautycounter, announced two executive appointments: Ana Badell as chief operating officer and Patty Wu as chief commercial officer.

Both women will report to Gregg Renfrew, Founder and Chief Executive Officer, effective immediately.

Badell joins Beautycounter from Starbucks, where she most recently served as vice president of Store Operations and Flow. Prior to that, she served as chief of staff/director of Business Operations, Global Marketing and director of Global Strategy and Global Supply Chain. Prior to Starbucks, Badell served as senior director of Merchandise Operations at Walmart and head of Supply Chain, Emerging Markets at the Hess Corporation.

At Beautycounter, Badell will oversee Operations, Information Technology, Corporate Strategy, and Social Mission.

Patty Wu most recently served as general manager of the Baby Division at The Honest Company and chief commercial officer. Prior to that, she was at Mattel, Inc. in various leadership roles that included group vice president, Emerging Markets & New Business Models, as well as vice president, GM China Growth Team. She has also held senior positions at Walmart and The Clorox Company.

Wu will lead Beautycounter’s commercial channels, including retail, direct to consumer, customer support, digital product and performance marketing.

“Beautycounter continues to lead the next generation of beauty though our safer products, sustainability, transparency and community,” said Renfrew. “We are thrilled to have Patty and Ana join our team to help accelerate the growth and mission of our company. Both women will be invaluable partners to me as we drive our strategic initiatives to the next level.”

AdvoCare to Pay $150 Million to Settle FTC Charges

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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 promoters also settled charges that they promoted the illegal pyramid scheme and 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.

Speaking from the FTC’s Southwest Regional Office in Dallas, FTC Bureau of Consumer Protection Director Andrew Smith announced, “an important victory in our continuing efforts to root out pyramid schemes and protect consumers.” He then announced a complaint against AdvoCare, former AdvoCare CEO Brian Connelly and four of the company’s top promoters—Carlton and Lisa Hardman and Danny and Dianne McDaniel. Smith said a settlement of charges against AdvoCare, Connelly and the Hartmans had been made. Litigation against the McDaniels continues.

“We have alleged that AdvoCare is a pyramid scheme because the defendants, through their compensation scheme and false earnings claims, pushed Distributors to recruit new Distributors,” said Smith. “To earn the most lucrative rewards, Distributors had to make large product purchases and recruit others to do the same. These purchasing requirements never stopped. To maintain their status and rewards, Distributors had to keep making large purchases month after month, year after year.”

The FTC alleges that the vast majority of AdvoCare Distributors earned little money or lost money. According to Smith, a clear directive was “recruit business builders who recruit business builders who recruit business builders.”

AdvoCare’s Response

Today, AdvoCare International, L.P. (AdvoCare) finalized an agreement with the Federal Trade Commission (FTC), resolving the agency’s multi-year inquiry into the structure of the company’s direct sales business model. While AdvoCare fully cooperated with the FTC during their investigation, we are not in agreement with the agency’s conclusions.

“We strongly disagree with the FTC allegations, but we are committed to abiding by this agreement and moving forward. The strength of AdvoCare is and always has been our highly-valued health and wellness products, which remain in great demand by our hundreds of thousands of loyal customers,” says AdvoCare CEO Patrick Wright. “We will continue to stand behind our distributors, employees and customers and to uphold our values of integrity and transparency, as we have for over 25 years.”

AdvoCare has always endeavored to remain compliant with FTC regulations, and we will continue to comply with the law. As part of that commitment, the company revised our business model earlier this year from a multi-level marketing model to a single-level compensation plan. Since making that change, our sales remain strong and we continue to invest in new products and to work with our distributors to provide the best possible customer experience.

AdvoCare provides premier health and wellness products to help consumers live a healthier and more nutritionally balanced lifestyle. We remain steadfastly committed to the ethical business practices on which the company was founded. For more information about our products, please visit our website at advocare.com

Corrections to FTC Statements

AdvoCare also wishes to correct statements made by the FTC in their News Conference in Dallas, Texas on October 2, 2019:

  • The FTC incorrectly stated in a press conference that AdvoCare had admitted to operating as a pyramid. This is categorically false. AdvoCare forcefully rebutted this charge in its discussions with the FTC. To this day, AdvoCare denies it operated as a pyramid.

  • Additionally, the FTC incorrectly stated that AdvoCare is considering additional sales channels such as GNC, Walmart or others. This is absolutely not true as we are not considering retail channels and remain committed to our distributors and customers.

UPDATE:  DSA Response

Joseph Mariano, president of the Direct Selling Association (DSA), the national trade association for companies that market products and services directly to consumers through an independent, entrepreneurial salesforce, responded to the FTC Advocare settlement.

We consider today’s announcement by the Federal Trade Commission (FTC) regarding its settlement of inquiries into AdvoCare International, as well as several members of its salesforce, a serious matter. Business ethics and consumer protection are at the heart of DSA’s mission.  We will swiftly engage our process and review the FTC order released today to determine our next steps.

We continue to welcome clarity from the FTC and remain in close contact with regulators to seek guidance from regulators. Andrew Smith, Director of the FTC’s Bureau of Consumer Protection is scheduled to speak at our DSA Legal and Regulatory conference next week. The DSA Code of Ethics also reinforces our commitment, requiring member companies and its independent salespeople to adhere to high standards of conduct including strict rules on earnings claims and ensuring companies buy back inventory from anyone who leaves the business.

This year, DSA accelerated its efforts to ensure high ethical conduct by initiating a partnership with the Better Business Bureau National Programs (BBNP) for comprehensive monitoring. The Direct Selling Self-Regulatory Council (DSSRC) monitors the online presence of companies and salesforce members to identify unreasonable or inappropriate product or incomes claims by all direct selling companies, regardless of DSA membership. The DSSRC operates entirely independent of DSA or any direct selling company and already has established a strong track record of success in having companies identify and correct issues, especially those that may be caused by overzealous salespeople.

The announcement of the settlement agreement serves as an opportunity to gain further insights into the FTC’s interpretation of the law and vision of best practices in our industry.  Our mutual goal is to eliminate any instance of non-ethical business practices while protecting the millions of people who responsibly engage in direct selling, either as consumers or as sellers who supplement their income through an entrepreneurial venture.

To read more on the FTC’s action against AdvoCare, click here.

 

Le-Vel Kicks Off Month-Long Support of National Breast Cancer Foundation

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For the fifth consecutive year, Le-Vel kicked off its month-long campaign to support the National Breast Cancer Foundation (NBCF).

Le-Vel is donating $5 for every limited-edition Breast Cancer Awareness PINK DFT Ultra and PINK Label DFT pack sold during the month of October. This year, Le-Vel is on a mission to break the $1 million milestone in total donations to NBCF.

“NBCF is grateful for the five years of partnership with Le-Vel and for their support to our mission of Helping Women Now,” said Janelle Hail, NBCF founder and CEO. “They have nearly reached the $1 million mark in funds raised to join our top donor recognition tier, The Circle of Hope. These funds will enable us to continue providing help and inspiring hope through our programs to thousands of women affected by breast cancer across the U.S.”

Throughout October, Le-Vel is having a “pink out” on all of its social media channels, symbolizing the company’s commitment to the fight against breast cancer. #THRIVE4PINK is the company’s call to action and a symbol of their independent Brand Promoters’ and customers’ passion for supporting those in need. In November, ten randomly selected Brand Promoters will travel to Dallas to tour the NBCF facility, learn about the organization’s efforts and assemble HOPE Kits filled with items for patients undergoing breast cancer treatment. These THRIVERS will be selected from Breast Cancer Awareness DFT orders placed through October 15, 2019. All travel and accommodation costs will be covered by Le-Vel.

“On behalf of all of our Promoters and customers, we’re honored to support the National Breast Cancer Foundation in its goal to increase the number of breast cancer survivors and ensure that women everywhere have access to the resources and information they need for early detection and treatment,” said Le-Vel Co-CEOs Jason Camper and Paul Gravette. “Reaching $1 million in donations is an important milestone for THRIVERS everywhere and shows the incredible impact we are making together.”

LegalShield Launches New LegalShield, IDShield Plans in Canada

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LegalShield announced today its expansion in Canada with the launch of new LegalShield and IDShield services featuring premium benefits current and new members.

LegalShield Canada is led by President Martine Girotto, who reports to LegalShield CEO Jeff Bell, and is headquartered in Montreal, Canada. The new, expanded plans are available in all provinces and territories.

“Our purpose is to protect and empower individuals, families and small businesses by offering affordable access to legal services, privacy management and identity theft protection through our state-of-the-art mobile apps,” said Bell. “Expansion into Canada is a logical next step in our broader growth strategy, and we are confident that our member-focused culture and unique value proposition will be well-received. We are dedicated to creating a world where everyone can access and afford legal protection, safeguard their livelihood and feel secure that their personal information is safe.”

LegalShield Canada, through its mobile app, offers both free features such as legal forms and answers to common legal questions, plus new premium benefits. The new, enhanced legal plans give members access to their law firm at a fraction of the cost of what most lawyers charge per hour and provide 24/7 access for covered emergencies.

IDShield Canada, through its mobile app, begins monitoring the member’s identity in the deep and dark web immediately upon enrollment so that members will begin to receive credit monitoring and internet monitoring as soon as they sign up, without any further action.

“While LegalShield and IDShield have been highly successful in other markets, our Canadian management team has adapted and customized our business model for this specific market,” said Girotto. “We look forward to providing great service and saving my fellow Canadians thousands of dollars, while putting them onto a path of financial wellness.”

Avon Kicks Off Global Breast Break to Help Support Early Detection of Breast Cancer

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Avon marks its 27th year of support for Breast Cancer Awareness Month by opening up even more opportunities for women around the world to “Take a #BreastBreak.”

To help shine a light on the fact breast health needs to be a priority, with 2 million new cases of breast cancer recorded globally in 2018, Avon is activating its 5 million sales reps, equipping them with information and advice to ensure they are encouraging women around the world to take a “‘Breast Break.” This includes opening dialogue about regular self-checks, being aware of any changes in breast appearance or making time to speak with a medical professional.

Women globally, compared to men, devote two to ten times more time caring for children, elders and their sick relatives. However, women often spend little time on their own preventative health. Health organizations and cancer NGOs across the world universally agree that early detection is vital in the effective treatment of breast cancer, the most common cancer diagnosed in women. Yet many women still don’t take potentially life-saving action such as self-exam or mammograms.

Amy Greene, chair of the Avon Foundation, commented, “Avon has been a leader in supporting the breast cancer cause for 27 years, enabling breakthrough research, equipment and educational materials. Last year we reached 50.1 million people across the globe through our work; however, we know that for a huge number of people breast health still is not high on their priority lists.

“By engaging our global network of Representatives, we hope to encourage millions of women around the world to take a ‘Breast Break.’ Whether it’s a self-check once or twice a month, an annual mammogram, or simply opening dialogue about breast health with friends and family, each of these are vital steps in preventing the late diagnosis of breast cancer. Across the globe Avon has also made a commitment to fully support its employees in taking any time required out of the office for their own breast health.”

Avon has launched a global petition on change.org to support a “Breast Break” all around the world, encouraging other companies to follow its lead in shining a light on the importance of breast health.

Think Like A Retailer

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In today’s world the best way to get more distributors is to get more customers.

Control, Alt, Delete

We’re all familiar with this term–it’s the keys on the keyboard you press to reboot one’s computer. I think it’s time for us in the direct selling industry to do a little bit of a hard reset with how we think about the consumer and customer acquisition.

We are all aware that the landscape in direct selling is changing more rapidly than it ever has. Definitely more in the last five years, than it has in the last 25. So what are some of these changes? With product quality rising so high and innovation happening so rapidly, it’s nearly impossible to maintain a competitive advantage based on your product features and benefits alone.

“The most fundamental changes that are happening right now are centered on the consumer…They want to buy products where, when and how they want.”

Next is the rise of the socially savvy generation. Some of the brands in our channel found a lot of success with social media because they were quick to react, adapt and over-serve this audience. Others were a little slow to adapt and missed the boat, and are now trying to catch up.

The sharing and gig economy has really changed competition for us. No longer are we competing for distributor leaders like we used to. Our competition is now time. It’s how people spend their time on Netflix, or Hulu, or whatever. The gig economy has also introduced many alternative sources of supplemental income that allow people to quickly earn money, very quickly.

Consumers Demanding Seamless Experience

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. 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.

In the past, companies had very little direct interaction with the end user. This power was really held by intermediaries, whether they were wholesalers, retailers or distributors. I can tell you that in the boardrooms at some of the largest CPG companies in the world they’re talking about these direct to consumer companies and how they need to react going forward. Companies with these same technologies that help customers are able to have greater control of their brand story and develop more intimate relationships with their customers.

Before I came to Young Living, I worked at one of these DTC companies where our brand and a few others disrupted a 20-billion-dollar category in the U.S. We took a tremendous amount of market share, almost 20% in about three years. It wasn’t that our products were better than the incumbents (Sealy, Serta, Simmons) necessarily, it was because we were cutting them out of the process and marketing directly to the consumer. The incumbents tried to catch up by trying to acquire some of these DTC companies to gain a little of the marketing magic they were bringing to the marketplace.

Partnering With Our Distributors

In direct selling, the distributors are our intermediaries. They are the reason we are employed, and I want to be very clear: they are the foundation of this channel. However, I do think 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. 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.

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.

We also need to market more like a retailer. We have to be more focused on the consumer, their needs, benefits, how our products can solve problems in their lives, as well as how they ultimately benefit from them. Too much of our marketing is focused on the business opportunity. When we try to speak to consumers with opportunity and distributor-centric language, it’s very confusing to them. Not only do they get lost, it adds complexity and friction to the buying process.

Also, in reality, when we do a lot of our opportunity marketing, we’re really talking to a very small subsegment of people. Think about it. How many times have prospective distributors come to your website, read about the opportunity or compensation plan and join? My guess is very few. Part of the issue is we’re talking to the wrong audiences at the wrong time.

Structuring Your Marketing Into Three Buckets

Why do we need to think more like a retailer? Simply put, in today’s world, the best way to get more distributors is to get more customers. We need to be in the customer acquisition business just as much as our distributors are. Customers are the warmest market and most qualified lead pool that we have. They’re the best people to transition into distributors.

“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.”

So how do we need to structure our marketing departments to do more of this customer acquisition and act and think more like retailers? There are lots of functions in marketing, from communications to PR, to social, but all of them can be lumped into three functional buckets.

The first bucket is brand marketing. We need to keep doing all the things we’re doing, add some new tools to the toolbox and develop some new muscle memory around customer acquisition. We still need to make sure we have a great brand strategy and that we’ve carved out an effective place and positioning in the market to compete from. We also need to make sure that we have a unique brand voice, and that we’re driving and growing brand awareness and brand preference.

The next bucket is field marketing. Again, this is vital. I’m not trying to take anything away from the distributors. We need to arm, activate, and motivate them in bringing in more customers and distributors as well.

Finally, the third bucket is performance marketing. This is digital marketing that’s focused on customer acquisition, and it’s a new muscle memory we need to develop. Most of your teams are already doing bits and pieces of this. They’re doing some SEO, some organic traffic, but we need to take a more wholistic approach to effectively acquire new customers. When it comes to performance and consumer marketing, there are two fuel sources.

Fuel Source NO. 1: Ad Spend

I understand that companies outside our channel have ample financial resources to put money toward their advertising and marketing efforts. I also understand that a lot of money in our channel goes toward incentivizing our distributors via the compensation plan. But it really doesn’t take a lot of money to get started. If you do it well, it should be self-funding.

When you meet with your performance marketing team daily or weekly, they should be reporting back to you. For every dollar you gave them, they should be giving you back $4.00, $5.00, even $6.00. If there’s not a positive ROI, turn the faucet off. Try to figure out what’s going on and then turn the faucet back on. Again, it shouldn’t be too financially difficult to start doing this.

Fuel Source NO. 2: Content

Everybody says that content is king. Yes, you have to have great content, but you need to make sure that content is focused on the customer and not our companies. As stated earlier, we need to make sure the content we produce is showing empathy for the problems and needs they have in their lives, and then share the benefits your products and services provide them.

It also needs to be emotional, not transactional. None of us like to be sold to, especially when we’re online scrolling through our feeds. Think of it as an emotional bank account. Every time you provide a great piece of content that provides value, makes somebody laugh or connects on a deeper level, that’s making a deposit in the consumer’s emotional bank account. Every time we try to sell to them, we’re making a withdrawal. Eventually, their bank account is going to dry up pretty quickly.

Here are a few more things to consider when it comes to creating compelling content:

Tell Stories

A Stanford research study states that stories are 22 times more likely to be remembered than facts alone. Make sure you’re weaving those stories about your distributors and your customers into your messaging. We are hard-wired to pay attention to stories. A story is a vehicle for emotion, and a purchase is always an emotional decision. The content has to be engaging enough that it makes someone want to stop and look at it. We also need the story told in a matter of seconds, before they hit that skip button.

Use Video

Your performance marketing anchor needs to be video; it’s the most engaging ad asset there is. Whether the length is six, 15, 30 or 60 seconds, you need video in your tool arsenal. Use a framework in your scripting to educate, demonstrate and entertain. Educate them on the potential need that they have, demonstrate the effectiveness of your product, and make them laugh and cry. Make content that you would want to watch.

Track Behavior

Next, track your customers’ and distributors’ behavior across the web, across social platforms, and your own website. You need to make sure you understand what content they’re interacting with so you know what content to provide next. It’s really a series of tripwires to take someone down the funnel. It’s important to know what products they’re buying and not buying. That’s a trigger for an amazing campaign. If they go to your cart and add a product, then abandon the cart, there’s no better content to serve them up the next day than a message from your team reminding them of the product they were just looking at.

“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.”

Again, tracking and making sure you understand that behavior is vital. Go back to your digital marketing teams and ask them. At a minimum, they need to have the Google and Facebook pixel dropping on every piece of content. They can go a lot deeper than that, but at a minimum, I would start there.

Drive Traffic To Drive Conversions

First and foremost, organic traffic is almost disappearing. With algorithms changing all the time, the preference is going toward paid ad spend. It’s affordable, as I stated earlier.

Look at your organic content more for engaging your existing community. Again, you can boost some of this organic content, but that’s ultimately paid. The point I want to make about traffic is you have to buy it, like everything else. You have to go to the store, buy traffic from Facebook, from Google, and that’s how you get eyeballs, and that’s how you put people into the funnel. If you don’t have a paid strategy, then you really don’t have a customer acquisition strategy. Paid social ads, Facebook, Instagram and YouTube for brand awareness, are amazing ad assets. That’s a great place to start under the main tools of performance marketing.

In conclusion, I just want to remind you that, again, the consumer is evolving, the direct selling landscape is evolving. We need to be more involved in the customer acquisition process, and the new distributors that are joining today, they’re okay with it. They’re used to it. Again, they don’t think in terms of channel conflict like the distributors of old did. We need to think and act, and market, more like retailers. Develop great content, put a little bit of ad spend behind it and then test, learn, scale.

Test, learn, scale.

This is the main framework for your consumer marketing and performance marketing.

When I went to school and started out in marketing, Integrated Marketing Communications (IMC) were all the rage where you developed big annual or quarterly campaigns, where every message was consistent across every brand touchpoint.

Those days are long gone. Now, it’s about microcampaigns. With those big campaigns, you went to a huge expense, and you hoped it would work. You might be able to do a little bit of consumer testing before your ad went on TV. Now, you can test all the time. Again, think about micro-campaigns, centered on big, anchor pieces of content.

Direct Selling’s Pop-Culture Prominence: It’s All Good

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Avon, Mary Kay, Amway and countless more brands: direct selling is an integral part of the American consciousness. It’s not surprising references to us show up in popular culture all the time.

I’ve seen direct selling featured in movies and TV shows dating back decades. Media often refer to direct selling by focusing on flexibility and possible income opportunities—both those real and promised.

At DSA, I work to ensure that everyone has the full story about our remarkable business, what it does for people, and what we are doing to ensure that our salespeople and customers are getting the most from the channel.

Rarely does one see a or hear a commercial for a direct selling company: direct selling does not advertise. Our reputation is built from word-of-mouth by those who share their personal experiences.

As an industry, we tell our story to the media, with investors, and most significantly, to policymakers who want to understand the positive impact we have in their communities.

We all tell this story. Most recently, the industry has engaged in partnerships with hundreds of academics across the country to ensure that they and over 75,000 college students understand this economic engine.

In an age of misinformation and speculation, people sometimes get the facts wrong. What does surprise me is how so few get an outsized platform on social media or investor websites to misrepresent—or at least misstate—facts.

I often ponder the motives—financial and otherwise—behind these misguided campaigns.

Some benefited from short selling of stocks of companies they attack. Others served as “expert” witnesses in class action nuisance lawsuits designed to push settlements. One particular critic seems to spend more time criticizing direct selling than pursuing his professional duties as a college administrator.

Of course, I’m glad that people are paying attention to direct selling. We are a hidden giant in this new gig economy; we’ve provided modest opportunities to millions for generations.

Increased attention also results in increased scrutiny, and I am happy to entertain legitimate criticisms of our model because fact-based observations allow us to improve.

Direct Selling Association is committed to helping our members ensure the highest level of business ethics and service to consumers. In fact, the Direct Selling Self-Regulatory Council is a direct result of the industry’s desire to follow regulators’ observations.

I am confident that even in an era of misinformation, direct selling will be understood to be doing the right thing, and that everyone—our sellers, customers, the general public, and our member companies—will benefit.

No doubt we will continue to see direct selling featured in movies, television, and the news. And maybe with a bit of luck and hard work, the portrayals we see will always be accurate, fun, and highlight all the good that direct selling does.