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Create Trust by Solving Problems

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One of the ways direct sellers can compete in the marketplace is to consistently provide value.

Video may be king on the Internet, but sharing your expertise and adding value via a company blog is still a massively popular and effective brand builder in letting people know about your mission, values, and your expertise and thought leadership. According to Statista, the number of bloggers in the U.S. is expected to hit 31.7 million in 2020. In a survey by HubSpot, 53 percent of marketers said blogging is their top content marketing priority. HubSpot also states that companies with a regularly updated blog have up to 97 percent more inbound links.

“Being the solution to people’s problems or the answer to their questions is what opens them up to eventually becoming a customer…”

Many direct selling companies and independent distributors are blogging to not only grow business but also educate and attract people from outside the industry. Most choose to incorporate a blog component to their website instead of using a separate blog URL. The growing trend is focused on teaching, bringing value to a targeted audience, and solving specific problems. This type of attraction marketing is less about selling and more about building a following.

As a corporate example, Plexus Worldwide’s “Sunny + Share” blog focuses on health tips, healthy recipes using Plexus products, and distributor success stories. Categories include Health Hacks, Trust Your Gut, Goal Getters and a few others.

Essential oil producers Young Living and doTERRA International run a blog teaching people how to use the products and offers recipes and overall healthy living ideas.

Pick up the printed issue in which this article is found.

Problem Solvers Create Trust

Perhaps the most powerful aspect of blogging is the ability to write targeted posts optimized for specific topics and keywords that people are already online searching for. Sticking with the health and wellness topic, a targeted blog post example might be “5 Tips to Defeat Late-Night Sugar Cravings” as opposed to focusing the post on an appetite suppressant product.

Being the solution to people’s problems or the answer to their questions is what opens them up to eventually becoming a customer because of the trust that is fostered. According to a study by Demand Gen Report, 47 percent of buyers viewed three to five pieces of content before engaging with a sales rep. In his book Jab, Jab, Jab, Right Hook, Gary Vaynerchuk writes, “A story is at its best when it’s not intrusive, when it brings value to a platform’s consumers, and when it fits in as a natural step along the customer’s path to making a purchase.”

Beauty Direct Sellers Highlighted in Glossy

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Glossy, a beauty blog that explores fashion and beauty through the lens of technology, recently keyed in on a few direct sellers who are taking innovative approaches to peer-to-peer selling.

A recent Glossy article mentioned Beautycounter, New Avon and Avon Products Inc., all three of which have launched new initiatives in the past year to enhance the customer experience.

Beautycounter became a full omnichannel brand last month when it opened a store in the Soho. The company, which was founded in 2013, has over 40,000 specialists selling its cosmetics through its e-commerce site. CEO Gregg Renfrew said social selling was necessary to start the brand five years ago because it was a useful tool to scale the business and to educate the customer around clean beauty. However, the opening of the Soho store was the brand’s attempt to be wherever the customer wants to be.

“Direct and social selling has always been an important part of our strategy, because we know our story is best told person-to-person,” said Renfrew. “[But] we are multichannel in order to meet our customers how and where they like to shop.”

Beautycounter—which is on track to generate $325 million in annual revenue for 2018 according to Business of Fashion—is not the only direct selling company changing up the peer-to-peer beauty selling concept. In the past year:

  • New York City-based New Avon launched a podcast called “Make It Happen,” which brought together top-selling Representatives and industry insiders to share stories and inspirational advice.
  • London-based Avon Products Inc. debuted a skin-shade matching app that delivers diagnostics regardless of ethnicity, skin tone and type using a phone camera and a unique calibration card exclusively available to Avon Representatives.

To read the full Glossy article, click here.

WorldVentures Expands into Zambia, Namibia

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WorldVentures™, the direct seller of travel and leisure club memberships, announced that it has expanded into Zambia and Namibia.

WorldVentures Marketing (Namibia) Pty Ltd. is now open in Namibia, and WorldVentures Marketing Zambia Ltd. is open in Zambia. Entrepreneurial-minded people in both countries can now earn income by selling the company’s flagship product, the DreamTrips™ Membership.

“We’re honored to welcome two new countries in Africa to the WorldVentures family,” said WorldVentures CEO Josh Paine. “One of the greatest assets of this company is to give people a way to realize their potential and a space to celebrate their accomplishments. We’re grateful that the culture, determination and enthusiasm of people in Namibia and Zambia align with the character of our company.”

WorldVentures has offered DreamTrips to Africa for several years, accounting for more than 9,100 rooms booked from 2016 to 2018 alone.

Hemp Legalized. Now What?

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On December 20th, President Donald Trump signed the 2018 Farm Bill, So what does it mean for direct sellers eyeing the revenue potential of the cannabis market?

The bill:

  • Legalizes the production of industrial hemp.
  • Puts the production of industrial hemp, now considered an agricultural product, under the supervision of the Agriculture Department.
  • Removes CBD—the non-psychoactive compound found in hemp—from the purview of the Controlled Substances Act, which covers marijuana.
  • Allows states to regulate hemp production, commerce and research, with approval from the USDA.
  • Allows companies to legally market and distribute CBD products, which have already started to turn up in beverages, health products and pet snacks.

Companies eager to sell CBD products should note, however, that the farm bill also “explicitly” preserved the Food and Drug Administration’s authority to regulate products containing cannabis, or cannabis-derived compounds. Upon the signing of the bill, FDA Commissioner Scott Gottlieb, M.D., issued a statement that included the following:

FDA to Chime in Soon on CBD

“We’re aware of the growing public interest in cannabis and cannabis-derived products, including cannabidiol (CBD). This increasing public interest in these products makes it even more important with the passage of this law for the FDA to clarify its regulatory authority over these products. In short, we treat products containing cannabis or cannabis-derived compounds as we do any other FDA-regulated products—meaning they’re subject to the same authorities and requirements as FDA-regulated products containing any other substance.”

One major challenge direct selling companies will face in selling CBD products is the language used for promotion. As Gottlieb noted in his statement:

“We continue to be concerned at the number of drug claims being made about products not approved by the FDA that claim to contain CBD or other cannabis-derived compounds. Among other things, the FDA requires a cannabis product (hemp-derived or otherwise) that is marketed with a claim of therapeutic benefit, or with any other disease claim, to be approved by the FDA for its intended use before it may be introduced into interstate commerce.”

So, while the Farm Bill has cleared the way for companies to bring CBD products to markets, it may be a longer road to market than anticipated. There is still much work to be done at the state and federal levels, and direct selling companies with intentions of selling CBD products should ensure their legal departments are well versed in cannabis law and their distributors understand what can and cannot be said about CBD oils.

More Direct Selling Companies Entering CBD Space

ForeverGreen, the Lindon, Utah-based direct selling company stated it has had on-going discussions about using CBD in some of its top-selling products. Given the growing awareness of the potential health benefits of CBD, ForeverGreen, which has incorporated CBD in past products, has decided to expand its presence in the category. The company plans to unveil a larger portfolio in the coming months and anticipates the new products will first be available in its European markets.

“The focus of the company has been to develop products that will distinguish the company,” said Joe Jensen, ForeverGreen’s chief executive officer. “We believe that we can incorporate CBD into some of our existing product lines and are in ongoing discussions to add new products that may benefit from the addition of CBD. Our products already have tremendous advantages, which could have additional health benefits with CBD incorporated. The company is poised to capitalize on this movement globally.”

Touchstone Essentials announced it has expanded its CBD oil line. “Research suggests that cannabinoids, especially cannabidiol (CBD), has a range of benefits from calming temporary inflammation to easing the effects of everyday stress and more,” said Touchstone Essentials founder and CEO Eddie Stone. “I experienced these benefits firsthand after a devastating elbow injury that required emergency surgery. Full-spectrum hemp oil gave me fast relief, eased my discomfort and supported my recovery.”

Peggie Pelosi Joins USANA Board of Directors

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USANA Health Sciences, Inc. (NYSE: USNA) announced the appointment of Peggie Pelosi to the company’s board of directors effective December 19, 2018.

Pelosi joins the board as an independent director and brings expertise in corporate social responsibility and sustainability, as well as direct selling. The USANA board now has eight members, five of whom are independent.

“I’m very pleased to welcome Peggie Pelosi to our board,” said Chairman of the Board Myron W. Wentz, Ph.D. “Her significant expertise in corporate social responsibility and sustainability, combined with more than two decades of direct selling experience, make her an excellent addition as an independent director. I look forward to the contributions she will make to the board and USANA.”

Pelosi is a corporate social responsibility/sustainability practitioner. Since 2005, she has been the founding partner and strategic advisor at Orenda Connections, a corporate social responsibility consultancy in Toronto, Ontario, Canada. She is also an instructor in the Certificate Program in Corporate Social Responsibility at the University of St. Michael’s College in the University of Toronto, and a part-time professor in Sustainable Business Management Post Graduate Studies at Seneca College, Faculty of Business in Toronto. Since 2015, she has also served as the executive director of Innovators Alliance, a network of CEOs focused on sustainable and profitable growth through innovation.

Prior to her career and academic work in corporate social responsibility and sustainability, Pelosi served as a member of USANA’s management team, first as executive director of Sales for Canada and then as vice president of Network Development. While at the company, she began the program that would evolve into the USANA True Health Foundation, and this led to her interest in corporate social responsibility.

“I am honored to accept a seat on the board of directors for a company with such strong corporate values,” said Pelosi. “Having spent five years as an employee of USANA, I am very familiar with the company’s business. Although it has grown significantly since then, the company has maintained its commitment to its vision and continues to be a leader in its industry. I look forward to contributing to USANA’s future success.”

DSHEA: Sen. Orrin Hatch’s Legacy to Direct Selling

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Photo credit: AP Photo

Orrin Hatch, the senior senator from Utah—home to nearly 100 direct selling companies—will retire next month.

The 84-year-old Hatch, the longest-serving Republican senator in US history, has spearheaded several initiatives during his time in Washington, including leading the Senate’s anti-terrorism bill in response to the Oklahoma City bombing, and, as a senior member of the Select Intelligence Committee, helping to amend the Foreign Intelligence Surveillance Act.

Even in his last few days in office he continues to see legislation he authored being passed by the Senate: the Emergency Medical Services for Children Reauthorization Act, co-written with Democrats Bob Casey of Pennsylvania and Brian Schatz of Hawaii; and the Public-Private Partnership Advisory Council to End Human Trafficking Act, authored with Rep. John Curtis (R-Utah).

However, what may be his greatest legacy to his constituents in Utah is his sponsoring, along with former Democratic Sen. Tom Harken of Iowa, of the Dietary Supplement and Health Education Act, or DSHEA, in 1994. That legislation, which was signed into law by President Bill Clinton in 1995, defined and regulated the sale of dietary supplements, allowing manufacturers—like Utah-based Nature’s Sunshine, Nu Skin and ForeverGreen—and to make general health claims about their products without going through the Food and Drug Administration to prove safety or efficacy.

In October 2014, on the 20th anniversary of the bill, Hatch was honored by the United Natural Products Alliance (UNPA), the Utah-based organization that has members in the worldwide food supplement industry. According to the UNPA, the compounded sales growth of the dietary supplements industry in Utah is reported to be nearly 11 percent per year since 1992. Sponsors of that event included 4Life Research, Morinda, doTERRA and Nu Skin.

However, the law has not been without its detractors over the years, particularly members of the medical community who argue that it prevents the FDA from vetting or knowing what new products and ingredients companies are releasing on the market. And this is particularly important in light of the fact that consumers cannot determine whether a dietary supplement, in a powdered or pill form, is spoiled like they can with fruit.

However, last year, at Nature’s Sunshine 45th anniversary celebration, Sen. Hatch made clear his commitment to defending the law to an audience that included Gov. Gary Herbert and Attorney General Sean Reyes, other recipients of the industry’s campaign contributions.

“DSHEA was one of the most hard-fought bills in the history of this country and we still have enemies back there trying to make headway,” he said. “But we have succeeded largely because of companies like yours. We have succeeded in spreading the word around this world that dietary supplements are essential to human living.”

The question is, as Sen. Hatch prepares for retirement, is there another lawmaker who will champion the direct selling industry as he has for the past few decades? While that is unclear, what is clear is the impact Orrin Hatch has made on his state and the industry.

ForeverGreen to Unveil CBD Products

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ForeverGreen™ Worldwide Corporation (OTCQB: FVRG) announced that it is currently formulating a line of products utilizing cannabidiol, or CBD.

The Lindon, Utah-based direct marketing company stated it has had on-going discussions about using CBD in some of its top-selling products. Given the growing awareness of the potential health benefits of CBD, ForeverGreen, which has incorporated CBD in past products, has decided to expand its presence in the category. The company plans to unveil a larger portfolio in the coming months and anticipates the new products will first be available in its European markets.

“The focus of the company has been to develop products that will distinguish the company,” said Joe Jensen, ForeverGreen’s chief executive officer. “We believe that we can incorporate CBD into some of our existing product lines and are in ongoing discussions to add new products that may benefit from the addition of CBD. Our products already have tremendous advantages, which could have additional health benefits with CBD incorporated. The company is poised to capitalize on this movement globally.”

Recently, the U.S. Congress backed the Farm Bill, which would legalize the production of hemp. CBD is a medicinal compound that can be grown in industrial hemp.

Herbalife Donates $30,000 to Build New Roof for Winston-Salem YWCA

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Herbalife Nutrition (NYSE:HLF) recently presented a $30,000 donation to the YWCA’s Best Choice Center in Winston-Salem, North Carolina, to help replace a damaged roof.

“The Best Choice Center is a key contributor to the transformative health and wellness of the community, and we are proud to be a partner in that positive change,” said Mark Evans, general manager of the Herbalife Nutrition Innovation and Manufacturing Facility Winston Salem and senior vice president of Global Supply Chain. “It’s important to us to support an organization that is dedicated to educating and enriching the lives of children to grow up and pursue their dreams.”

The donation will assist in removing old roof shingles and turbines and repairing decking, creating a healthy environment for Best Choice Center employees and students.

Since opening the facility in 2013, the company, along with the Herbalife Nutrition Foundation, has prioritized community involvement in Winston-Salem and surrounding areas through employment opportunities, volunteerism, non-profit healthy nutrition and lifestyle exposure through community service and events.

In addition to financial support from Herbalife Nutrition and Herbalife Nutrition volunteers, the YWCA Best Choice Center is supported by the Herbalife Nutrition Foundation as a Casa Herbalife partner. Through the partnership, the Herbalife Nutrition Foundation provides support for nutrition, nutrition education, academically focused programs, and after school care and enrichment activities to children in the community.

“Since the company moved to Winston-Salem, Herbalife Nutrition has been a steady partner to the YWCA, especially the Best Choice Center,” said Christy Respess, president & CEO, YWCA of Winston-Salem & Forsyth County. “They seem to anticipate our needs, and this challenge grant for the roof could not be more important after the hurricanes this past fall. We are so fortunate to be an Herbalife Casa.”

Youngevity’s CLR Roasters Joins Amazon Vendor Central

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Youngevity International, Inc. (NASDAQ: YGYI) recently announced that its wholly owned subsidiary, CLR Roasters, has accepted an invitation to join Amazon Vendor Central.

Per the new agreement, CLR Roasters will offer its Café La Rica espresso and Josie’s Java House coffee brands on Amazon Vendor Central, while Amazon handles the logistics of selling to customers, order fulfillment and customer support.

Dave Briskie, president and CFO of Youngevity International, Inc. stated, “We are excited that two of our company-owned brands are gaining national distribution on Amazon.”

With the Amazon Vendor Central agreement expected to help spur an increase in national sales, CLR Roasters has partnered with Digital Operative—an award-winning San Diego-based full-service digital agency—to assist in the brand’s expansion.

“We believe the team at Digital Operative will have a significant impact on the growth of Café La Rica and Josie’s Java House nationally,” said Briskie.

BJ Cook, founder and CEO of Digital Operative, added that his company prides itself on working with innovative, unique brands that have a focus on growth. “CLR Roasters’ brands perfectly fit that mold,” he said. “With the Amazon Vendor Central agreement in place, Digital Operative is excited to help both brands seek to become household names nationally.”

ARIIX Opens in Israel; Celebrates New Australian Office

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ARIIX recently welcomed Israel to its fast-growing European market and also held a grand opening celebration for its new office in Australia.

The company, which was recognized by Direct Selling News as No. 78 on the Global 100 list of top direct selling companies in the world for 2017, continues its global expansion. Israel is the 20th country in which ARIIX has officially opened in just seven years of business.

The new Australia office opening follows the merger of ARIIX and NuCerity earlier this year, which significantly increased the company’s presence in Australia. The immediate and projected growth created a need for in-country ARIIX partner support agents and a location that will provide a space for meetings and trainings for the representatives.

“ARIIX has set an ambitious course for global expansion, and our Representatives are eager to build strong international businesses,” says Mark Wilson, ARIIX president and founder. “We look forward to continuing to provide these markets with the training and support they need to truly make the most of this opportunity, which has already been so warmly received.”

Congress Backs Farm Bill; Hemp Production Legalized

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Update 12-21-2018:

 

 

Good news for direct sellers looking to jump on the CBD bandwagon: Congress has backed the $867B Farm Bill, which legalizes the production of hemp.

The House voted 386-47 in favor of the bill following an 87-13 thumbs up in the Senate the day before. The bill includes provisions that remove industrial hemp from the Controlled Substance Act. If President Trump signs the bill, which he is expected to do, the non-psychoactive version of cannabis will be considered an agricultural commodity and legal for farmers to grow in all 50 states.

Industrial hemp is a legal term for any version of cannabis that contains less than 0.3 percent THC, the active compound in pot that is responsible for getting you high. These plants can be made into a wide variety of things, from building materials and clothing to food and even the pen that Kentucky Senator Mitch McConnell used to sign the Senate’s Farm Bill.

Industrial hemp was already legal to grow in the U.S. if the farmer applied to a local research program run by a state, university or Native American tribe. These programs were often difficult to apply to and carried strict rules; Washington’s program had less than 10 farmers growing hemp underneath it.

The CBD industry—CBD is a medicinal compound that can be grown in industrial hemp—is cheering the news, saying that it will significantly expand the market for the non-psychoactive pot compound. But while the bill makes growing CBD a lot easier, but there are still questions about how the FDA will regulate CBD, which it currently considers an illegal additive to foods and supplements.

Gustavo Arnal Appointed Avon CFO

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Avon Products Inc., today announced that Gustavo Arnal has been appointed executive vice president and chief financial officer, effective during Spring 2019.

Gustavo Arnal

Gustavo Arnal

Arnal will report directly to Jan Zijderveld, Avon’s chief executive officer, as a member of the Executive Committee. Jamie Wilson, Avon’s current CFO, has chosen to step down from his full-time executive role and will be pursuing a range of professional business opportunities in the next stage of his career.

“Gustavo joins us at a critical time, as we continue to build Avon into the digital social selling beauty company for the future,” said Zijderveld. “A key component of our plan to ‘Open Up Avon’ includes accelerating our revenue and margins by 2021, and we are confident that Gustavo will be an asset to our leadership team as we continue our work to drive financial and operational performance for the benefit of shareholders.”

Arnal is a seasoned global operating executive with over 25 years of experience working in strategy, operations and finance positions for consumer goods and retail businesses. He joins Avon from Walgreens Boots Alliance (WBA), where he has served as senior vice president, CFO of International Divisions and Global Functions. Prior to WBA, Arnal worked for over 20 years with Procter & Gamble.

“Avon is an iconic brand, operating in significant growth markets and categories throughout the world,” said Arnal. “I was attracted to Avon by the recently announced transformation plans that demonstrate a clear vision and strategy to deliver results in growing beauty categories, emerging markets and the direct selling industry. I look forward to working with Jan and the entire Avon management team to help drive this transformation and deliver enhanced results for shareholders.”