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Permission To Pamper – Perfectly Posh’s On-Trend, Retail Direct Selling Style

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Perfectly Posh proudly says it owns its awesomeness and gives permission to its consultants and customers to do the same. It’s a pampering company that is a little edgy, mixing posh design with sweet, sassy and sometimes snarky messaging into fun and indulgent skin care products.

Ann Dalton

Ann Dalton

Sam Funk

Sam Funk
PERFECTLY POSH
Founded: 2011
Headquarters: Salt Lake City, UT
Top Executive: Ann Dalton, CEO & Founder, Sam Funk, President
Products: Skincare, Personal Care, Home Party and Online

 

Since its launch in October 2011, Perfectly Posh has upended the status quo with campy and irreverent branding, on-trend retail products, “give back” ingredient sourcing programs and pioneering business operations. Now with over $100 million in revenue, the company’s founder and CEO Ann Dalton say it’s poised for “world domination,” then shares a hearty laugh.

“We try not to take it too seriously because it takes the fun out,” Dalton says. But the company and brand she created could be one of the best-kept secrets in direct selling and that’s seriously about to change.

Falling In Love

In a past life, Dalton built a company providing marketing supplies and tools for a direct selling company. Dalton fell in love with direct selling’s business model and its ability to ease women’s burdens and help their families.

Dalton remembers a very kind woman that lived in the middle of Nevada in a trailer, who couldn’t keep her electricity on and her husband was not very nice to her. In the five years she was affiliated with the company, she watched her leave him, move out, build her own house, take care of her kids and send them to college, and marry a great guy. “When you see things like that it changes you,” Dalton says.

Perfectly Posh was born of Dalton’s desire to help women change their own lives and give them permission to pamper themselves. “As a busy mom, I learned that you give and give and give, and you give yourself away. One day you look in the mirror and you wonder what happened to you? If you take a few minutes every day to really take care of yourself, it really is magical,” Dalton says.

Retail Look and Feel

Skin care products are often straight out of the doctor’s office or packed with fillers and fragrance that do nothing. Perfectly Posh says their products are different—pampering, affordable, effective and ethical, made with naturally based ingredients that tell a story and inspire people to have a blast while using them.

They have set themselves apart through a unique approach to product development and product launches, along with quirky product names and packaging. It also makes business operations a bit more complicated.

Q&A with Ann Dalton, CEO & Founder & Eddie Silcock, Chief Sales Officer

(Click to read the interview)

“We are on trend. Trends launch every season,” says Vice President of Product Development Stacy Simmons. “We use the same trend agency that retailers such as Sephora and Ulta do. So, we are able to offer the same trends but in the direct sales space. It’s affordable luxury and high-end trend at your fingertips.”

 

From mermaids to galaxy collections, Perfectly Posh offers a whole lineup of fun products every trend season, as well as monthly product launches. “Our products create an awesome experience from the packaging to the names that get people taking to the formulas that feel amazing on the skin. All together it creates a really social product,” adds Simmons.

“We joke a bit about calling ourselves product whores because we love new things and fun new trends,” Dalton says. But innovation and quick-turn SKUs aren’t just fun, they produce more early adopters for this direct selling company, whose consultant base is young, fun, and forward thinking.

“There’s an immediacy around everything we do and it makes Posh that much more pampering when I can work today and play tonight or feed my family tonight.”
— Ann Dalton,CEO & Founder

In step with that demographic is Posh’s sustainable ingredient sourcing and “give-back” initiatives that have really resonated with the 20- and 30-somethings. They want to know what they’re buying and they are buying into something better, says Dalton. “There’s so much transparency with social media and easily accessible information, it’s been really nice for us to support everything we do, hold it up and say we’re proud of our products inside and out.”

Unconventional Pampering

Posh corporate culture is unconventional. They even dub their annual national convention “Uncon,” where in July they threw out the red carpet to Elvis and Dolly Parton impersonators and drag queens to launch new products in Nashville, Tennessee.

“One of our brand tenets is: ‘We’re serious about not taking ourselves too seriously.’ Part of pampering should be laughing and getting some levity,” adds Dalton. “We talk about intentionally shallow moments because so much of life isn’t,” she says. “It’s heavy and serious and busy. So, when we can take time to let our hair down and go crazy, we take the opportunity every chance we get.”

“We’re one of the first direct sales companies in the world to break into Salesforce technology.”
— Ann Dalton

Unconventional also describes the Posh view of tech and the risks they will take for their consultants and future growth.

In early 2018, Dalton posed the idea of paying Perfectly Posh consultants instant commissions. President Sam Funk says after they were all done laughing at the prospect, they got down to the hard work of making it happen. Several solid months of IT development working with third-party vendors, finance and other logistical folks created a pioneering payment system that went live August 1, 2018.

They commit to pay commissions on personal volume in less than three hours for any consultant with $1,000 lifetime volume. That stipulation lets Posh know the consultant is a real person. The money deposits into pay portal accounts at no extra cost.

The success of the program was immediate. Funk says Posh has been paying on average about four minutes after a sale has been made. “I don’t think anybody is doing it this fast,” he says.

“It’s very much how the world works today. There’s an immediacy around everything we do and it makes Posh that much more pampering when I can work today and play tonight or feed my family tonight,” Dalton says.

“People are excited and they’re looking at it as a way to both find new team members as well as re-energize existing teams,” Funk says.

Breaking into Salesforce

This isn’t the first time Perfectly Posh has taken a big risk with technology. Not quite a year ago, the company moved on from a direct selling industry technology’s platform and placed their faith in Salesforce flexibility.

“We operate much more like a retail skincare company. It’s a lot of SKUs that turn very quickly, a lot of SKUs and movement and we needed software that could keep up with us. We’re one of the first direct sales companies in the world to break into Salesforce technology,” Dalton says.

The old platform crashed with 11 concurrent transactions at checkout, so Perfectly Posh moved more quickly than they or their platform advisors would have liked. Development began in January with round-the-clock work from a world-class team. The site went live September 2017.

“The first couple months were a little bit rockier than we would have liked because we just ran out of time, but now there’s a tremendous amount of functionality and reliability,” Funk says.

Now they can handle over 800 concurrent transactions. Of course, there is still refining to be done, but Dalton says it swings the door wide open.

“It gives us a lot more flexibility. We can be a lot more promotional. We can put bundles together. We can encourage people to build regimens. There’s a lot that we’re able to do on the platform and that we need to do because our product line works more like a retail store. It really was a necessity for us to be as nimble as we wanted to be,” Dalton says.

Thinking Forward

Start thinking like a billion-dollar company, and Chief Sales Officer Eddie Silcock says, “We’ll start to operate like one.”

So Perfectly Posh has recruited a regional sales team working with leaders on coaching and accountability training and will launch a complete revamp of their training system in late 2018. They’ve also installed some simple field incentives, switched up the comp plan, and drastically changed their field engagement strategy.

“Our products, our packaging and our vibe stop people scrolling. In this busy world of Facebook and Instagram, we have the ability to get people’s attention.
”
— Eddie Silcock, Chief Sales Officer

Silcock believes 2019 to be a pivotal year in a three-year Posh strategy focused on U.S. customer acquisition. “Our products, our packaging and our vibe stop people scrolling. In this busy world of Facebook and Instagram, we have the ability to get people’s attention,” he says. That’s an advantage over other companies who are trying to reinvent themselves for the millennial market. “We are already set up to really speak to and resonate with the millennial market. We just need to continue to execute on the strategies to do so.”

Posh is also looking to capture share of the U.S. Latino market. “That world of family being together and taking care of each other really suits our brand,” Silcock says.

“We’ve still got a lot of opportunities to grow here (in the U.S.). Having said that, obviously the move to Salesforce makes it easier to go into other countries. We have an incredible executive team that has a lot of experience, so as we start to look at other opportunities we are leaving the door open and having conversations about what products would do well in other markets,” Dalton says.

But with a chuckle, Funk adds, “We’re currently in the U.S. and we see that changing someday.”

You deserve it Sisterhood Helps Women, Children

The You Deserve It foundation, the charitable arm of Perfectly Posh, launched nearly three years ago and turned its attention this year to “give back” ingredient sourcing programs that benefit women and children of remote Guatemala, Ghana and sub-Saharan Africa.

The responsible sourcing of palm oil is rare among skincare companies and adds expense, but Posh is serious about helping its Guatemalan sources and has a yearlong commitment to nutritionally support babies and infants. “Our field really rose to the occasion. They collected change at all of their events and presented a $40,000 check for our global initiative,” CEO and Founder Ann Dalton says.

You Deserve It is also building the Shea Sisterhood through a partnership with Global Shea Alliance. Forty Posh products contain shea, purchased as seasonally as possible through the Alliance, which in turn provides hands-on training to women in Ghana and 21 sub-Saharan African countries who are building shea businesses.

Posh sold out of 25,000 units of its first Shea Sisterhood fundraiser quickly and a reorder of 25,000 arrives shortly. This initiative will help sponsor a warehouse in Ghana, where 500 women can participate in collective buying power and increase their incomes by over 40 percent in the next shea season alone.

Three Keys to Engaging Employees and Reducing Turnover

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56%Wouldn’t it be nice if that were the growth rate in the direct selling industry?

Unfortunately, it’s the employee turnover rate. Being a direct selling company in a digital world dominated by Apple, Google, and Amazon is challenging enough. If you’re losing your top talent, how do you survive—let alone thrive—in the marketplace?

To reduce turnover, it’s imperative that you inspire loyalty in your employees by engaging them. If you look at the top places to work in direct selling (according to the Direct Selling News 2018 Best Places to Work in Direct Selling survey), one thing the frontrunners have in common is high levels of employee engagement. The majority of companies, however, struggle with employee relationships. As Businessolver’s 2018 State of Workplace Empathy report shows, only 31 percent of employees are engaged at work.

To get some insight into why employees are apathetic or dissatisfied, look up any company on an employee review site like Glassdoor or Indeed and read what people say it’s like to work for any company. While this method is by no means scientific, that feedback reveals three common themes that will help you pave the way for engaging employees.

1. A Sense of Growth and Purpose

Engaged employees have a strong sense that they’re fulfilling their company’s mission and giving back to the community. They realize the work they do on a day-to-day basis is valuable. Rather than just taking calls or designing marketing materials, they know they’re helping create opportunities for a student to pay his way through school or a single mom to support her family.

However, making sure employees know your company’s mission isn’t enough. They want to feel empowered to carry it out. In online reviews, many employees said that a lack of innovation, leaders who were stuck in their ways, and outdated technology (like a DOS-based CRM and buggy website) interfered with the company’s success. These specific complaints illustrate the importance of keeping an eye to the future. Be open to change, consider employees’ ideas, and leverage technology to benefit your business.

As you carve out new paths for growth, ensure your employees are progressing as well. They want to know where they’re going with the company, but a common refrain in many of the employees’ online reviews was that there were no opportunities for advancement. In some cases, promotions weren’t available because of existing employees’ tenure (a good problem for a company to have!). Often, however, employees were dissatisfied with the lack of upward mobility because leadership didn’t communicate with them about available opportunities or there was a political company culture where promotions were handed out on a who-you-know basis.

Of course, promotions aren’t always possible for every employee, but investing in personal and professional development—such as one-on-one coaching, training courses, certifications, and higher education—shows that you’re committed to helping them achieve their career goals within your company.

2. Empathy

Businessolver’s research found that 9 in 10 employees are more likely to stay with an organization that empathizes with their needs. Not only that, 8 in 10 employees, HR professionals, and CEOs say empathy in the workplace positively affects business success by engaging employees and even boosting financial performance.

Empathy is more than just lip service. As one reviewer pointed out, “[Leaders] tell you that their employees are very important, but they do not show that. In the call center, employees are not viewed as people, they are looked at in terms of coverage.”

So how do you show your employees that you are empathetic? Take some advice from employees themselves:

  • “Treat people like people not machines.”
  • “Care about your employees and get to know who they are. Be more down to earth and friendly.”
  • “Do better at trying to retain employees of long stature, as they carry with them a ton of business knowledge.”

Showing your staff you value them could involve prioritizing work-life balance, offering generous benefits, allowing flexible schedules, embracing diversity, acknowledging employees’ milestones and accomplishments, and encouraging innovation.

3. Communication

Championing employee growth and showing empathy have a common denominator: communication. Employees feel valued and empowered when they know how the business operates and how they’re personally performing. However, a common theme among most companies’ employee reviews was confusion about company processes, which led to inefficiency, and in many cases, turnover.

Several people wanted more clarity and organization in the following areas:

  • Hiring
  • Organizational structure (e.g., relation of headquarters staff to regional staff and global reporting structure)
  • Internal career paths
  • Performance review process

Communication doesn’t have to be all business, though. Employees love talking about things that are important to them. Ask them about their families, their hobbies, and the vacation they took over the summer.

When it comes to showing empathy through communication, Businessolver found that 90 percent of employees, HR professionals, and CEOs agree that face-to-face conversations and team meetings are ideal. This is a delicate balance, however—several reviewers complained of too many meetings, which made decision-making difficult. There’s also the issue of company growth. The more staff your company adds, the more challenging it is for executives to connect with employees.

Don’t let these challenges stop you from communicating with your employees. Try having open conference calls, during which you can share company updates, recognize employees, and open up the floor for questions. Another effective way to build engagement is to send an eNewsletter that features a personal message from you, notable employee accomplishments, and positive feedback from distributors about specific staff members or departments. All newsletter content should reflect and reiterate your company’s values and mission.

Finally, remember that the way you communicate is just as important as the medium through which you communicate. Micromanaging projects, ignoring or discounting new ideas, and withholding praise and constructive feedback erodes employees’ sense of purpose and value.

You’ll find that when you develop, value, and connect with employees, your turnover rate will drop. As your employees stay and grow, so too will your revenue, profits, and business.

Steve HenningWith over 20 years leading client service and operations teams, Steve Henning is the Senior Marketing and Operations Director for IMN. He oversees teams in three distinct locations across the U.S., serving industries such as direct selling, financial services and automotive dealerships. Regardless of location or industry, his teams focus on helping clients reach their customers through numerous channels by communicating a variety of targeted messages designed to improve revenue and customer satisfaction — all while fostering a positive internal team culture.

Public Direct Sellers: Strong Q2 for Wellness Companies

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The stocks of the six publicly traded direct selling companies we follow that are listed in the U.S., Herbalife Nutrition (HLF), Medifast (MED), Nu Skin (NUS), Tupperware (TUP), USANA (USNA) and London-based Avon Products (AVP), on balance continued their strong run in the Q2.

Through the first six months of the year, our proprietary Lane Research index for Direct Selling companies is up +23 percent, sharply outpacing the S&P 500 (+2 percent) and Consumer Staples stocks (-9 percent). Our index even outpaced the more economically sensitive Consumer Cyclical stocks by a factor greater than 2x. This leadership has continued so far in the Q3 as well.

Interestingly, our work shows that the key driver to the stock outperformance for Direct Sellers has been a multiple expansion on the group, we think driven by a) the covering of an outsized short position in bellwether Herbalife Nutrition, which has likely carried over to the other names, and b) better than expected business trends. Meanwhile the multiples for the S&P 500 have actually declined, most likely as earnings estimates have finally caught up with stock price moves made a year ago and into January of 2018.

Fundamental Trends Improved In The Q2 And On Balance Remain Favorable

In aggregate, on an equal weighted basis, the group average organic sales growth for the six companies in Q2 of 2018 was +18 percent, a further acceleration from +11 percent in the Q1 and the third straight quarter of double-digit growth. Each of the six companies in the index showed sequential improvement in the Q2 from Q1 trends, with even stronger double-digit growth rates posted at Medifast (OPTAVIA) and Nu Skin, a jump to double-digit growth from the single digits at USANA and Herbalife Nutrition, while Avon and Tupperware, which have been soft lately, reported lesser declines.

Source: Company reports, Lane Research estimates. Lane Research Index is equal weighted. Consumer Staples index is the XLP Exchange Traded Fund (ETF). Consumer Cyclicals is the XLY ETF.

OPTAVIA

OPTAVIA parent Medifast handily beat Q2 estimates and management raised its full year 2018 outlook substantially, well ahead of our estimate increase following a visit to what was a very upbeat annual OPTAVIA convention in St. Louis from July 19th to the 22nd. The key new product initiative announced at the convention, in our view, was Purposeful Hydration, a system designed to keep clients properly hydrated throughout the day, which we believe should be largely incremental to its business. Over the past 5 quarters, OPTAVIA organic sales growth has gone from +2 percent in the 2017 Q1 to +11 percent in the Q2, +18 percent in the Q3 and +32 percent in the Q4, with growth so far in 2018 of +52 percent and +70 percent in the Q1 and Q2 respectively. Clearly the recently rebranded OPTAVIA business has gained significant momentum, which is made more notable in that it has yet to expand internationally pending the entry of Hong Kong and Singapore in the 2019 Q1. We continue to believe OPTAVIA is in the early days of its next wave of growth.

Nu Skin

Once again Nu Skin handily beat on the top line in the Q2, but EPS were constrained by non-cash, non-operating factors. The company appears to have built substantial underlying momentum as LumiSpa and social sharing initiatives have gained good traction coming out of the 2017 Q4. Sales of $704 million were up +28 percent, well above our $654 million forecast and management’s previous $630-$650 million expectations, driven by the third straight quarter of strong double-digit growth in both organic sales and sales leaders; clearly the company has gained good momentum following the introduction of the AgeLOC LumiSpa in the 2017 Q4. Management raised its full year 2018 sales outlook but maintained the upper end of its EPS range. However, with a difficult comparison coupled with the recent spike in the dollar, Q4 reported results could appear somewhat muted year over year.

USANA

USANA’s Q2 EPS substantially beat expectations with better sales and operating margins driving the upside. This marks the 4th straight quarter of accelerating growth trends, led by growth in organic sales and sales leadership, which was able to be leveraged through substantial operating margin expansion. Q2 sales of $302 million were up +17 percent, ahead of our $287 million estimate as organic sales growth of +12 percent was well ahead of our +6.5 percent forecast. Additionally, the size and quality of the Q2 upside, and increased full year outlook, accelerated from Q1 trends as well. The full year raise was more than the Q2 beat, indicating the company expects the momentum built so far this year to carry into the second half.

Herbalife Nutrition

Herbalife Nutrition reported Q2 results that were well ahead of expectations and management raised its full year outlook as well. The EPS raise was slightly muted by recent adverse currency moves, but the underlying business has firmed considerably. Volume points grew +12 percent, well ahead of our +5 percent estimate and mgt’s range of +4 percent to +8 percent. Biggest upside versus our estimates was China +27 percent vs our flattish forecast and biggest downside was So & Cent America, -1 percent vs our +5 percent, but not unexpected given macro difficulties in Brazil with the truckers strike there. The growth in volume points in North America (+18 percent) and China (+27 percent) were particularly impressive given recent challenges in those two markets, indicating that those two important markets are getting back on track.

Conversely, Tupperware and Avon continued recent soft trends, each with organic sales declines in Q2, though of a lesser degree than in Q1.

“Through the first six months of the year, our proprietary Lane Research index for Direct Selling companies is up +23 percent, sharply outpacing the S&P 500 (+2%) and Consumer Staples stocks (-9%).”
— Douglas M. Lane

Tupperware

Tupperware Brands reported Q2 ongoing EPS in line with previous expectations but adjusting for an unusually low tax rate was actually below. Organic sales growth of -4 percent was modestly below our recently reduced -3.5 percent forecast and mgt’s original range of -2 percent to 0 percent. Momentum clearly continues soft. Best performing units were China, Fuller Mexico, Tupperware Mexico and Tupperware South Africa, which have been performing well lately. Softer markets include Brazil, where the trucker strike and the decline in the real had a large adverse impact, as well as continued softness in India, Indonesia, France and Tupperware Australia & New Zealand. Management reduced its outlook for full year 2018 organic sales and EPS given the continued soft underlying business trends and recent adverse currency moves. The company also announced sweeping management changes following the recent CEO succession.

Avon

Avon’s Q2 sales declined -3.2 percent slightly better than our recently reduced -3.6 percent forecast. Loss per share was ($0.03), below our recently reduced ($0.01) and consensus $0.00. Momentum indicators were mixed in the Q2.

Active Reps were down -4 percent, slightly below our forecast for -3 percent but even sequentially with -4 percent in the Q1. Organic Sales growth of -3 percent was better than our most recent -4 percent forecast and improved sequentially from -4 percent in the Q1. Units Sold were down -5 percent, in line with our forecast and a deceleration from the -3 percent in the Q1. In our view, what investors are most focused in on is the forward strategy that will be articulated by the new CEO and his team at the investor day being held in New York in September.

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

 

Disclosures: Financial Interests
The analyst, Douglas M. Lane, and members of his household own equity and/or equity derivative securities in Herbalife Ltd., which had previously been publicly disclosed in a Direct Selling News article originally published in January 2013.
Other than mentioned above, neither I, Douglas M. Lane, nor a member of my household, owns any security(ies) which is/are the subject of this article. Neither I, nor a member of my household is an officer, director, or advisory board member of the issuer(s) or has another significant affiliation with the issuer(s) that is/are the subject of this research report. I do not know or have reason to know at the time of this publication of any other material conflict of interest.

Ethics And Sharpening Our Competitive Edge

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We all know how Amazon has impacted competition on the product side of our business, and the emerging gig economy players that rely on independent contractors have brought even more disruption to the marketplace.

What makes direct selling so attractive—our commitment to creating a more supportive world for independent contractors—is central to who we are as an industry.

While DSA’s new ethics and self-regulation initiative will ultimately protect consumers, it also shows the world our “true north” and our commitment to being held to the highest ethical standards. This new ethics and self-regulation program will make direct selling more competitive than ever before; I can state without reservation that this initiative represents one of the most valuable and momentous programs for the membership and industry alike.

The anticipated program has been built upon DSA’s decades long legacy of self-regulation and represents a new bold, revolutionary effort to improve direct selling’s reputation and positively position our dynamic retail channel and support the independent contractors who are the lifeblood of our micro-entrepreneurial opportunity.

Over the course of the last several years, DSA has sought to “raise the bar” for our ethics and self-regulation program with frequent input from Federal Trade Commission (FTC) staff and sitting FTC Commissioners. At last year’s DSA Fall Conference 2017, Federal Trade Commission Acting Chairman Maureen Ohlhausen shared characteristics that the FTC views as the most ambitious and effective self-regulatory initiatives being used today. Ohlhausen described characteristics of effective self-regulatory programs as:

  • Having clear, meaningful and fair standards;
  • Adequately-funded and independent from industry members; and,
  • Supported by effective enforcement mechanisms, applicable to the entire industry.

DSA also set out its own principles to define the program’s framework. DSA engaged the Advertising Self-Regulatory Council/Council of Better Business Bureaus to develop a new third-party self-regulatory program for the direct selling channel, to work in conjunction with the DSA Code and to meet the characteristics set out by Ohlhausen, and the principles identified by DSA.

The resulting program will demonstrate the commitment of DSA members to establish and support a comprehensive self-regulatory program based on existing standards of advertising law and regulation, as well as standards embodied in the DSA Code of Ethics. The direct selling program will provide an independent mechanism for monitoring income representations and product claims by direct selling companies on an industry-wide basis.

In addition, DSA has consulted with a broad range of industry leaders for their input on the program and has continued to inform the Federal Trade Commission of our progress while garnering additional insights.

I am enormously grateful for the engagement of the membership on this crucial initiative and your invaluable leadership and support. I am excited to discuss how this bold new program’s impartial, independent, and accountable processes will set new standards for direct selling industry participants and favorably position direct selling and DSA.

3 Things NASA Can Teach You About Leadership

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You know the old saying, “Give a man a fish and he’ll eat for a day; teach a man to fish and he’ll eat for a lifetime”? What if that message is actually wrong?

Stay with me, friends. I promise you this isn’t blasphemy.

You see, teaching a man to fish won’t feed him for a lifetime… unless you actually let the man go out and fish.

Here’s what I see in the business world all the time: Leaders, wanting to create a powerful team, pour their energy and resources into building their people. Conferences, workshops, retreats—no expense is spared to offer all the team members the skills they need to solve problems and contribute to the organization. Everyone is told how important it is for each individual to be empowered, to be able to reach objectives on his or her own.

“Empowerment happens only when a leader gives people the trust, permission and resources to make decisions and act in the organization’s best interest.”

And then everyone goes back to work—and waits for the leader to take charge. No decisions. No initiatives. No from-the-bottom-up ideas.

What happened?

The leader hasn’t really empowered his people. He has simply trained them. Empowerment happens only when a leader gives people the trust, permission and resources to make decisions and act in the organization’s best interest.

This philosophy can be a struggle to embrace. It was a lesson I learned early in my career after some members of my team confronted me and pointed out my self-centeredness. That’s when I realized that if everything depends on the leader, the team will achieve only what its leader is capable of achieving.

I made a commitment right then to empower my people. Releasing authority isn’t easy. Yet once I began handing power to my team, I was amazed at how much our organization increased its impact.

Empowerment is the way to blow the lid off any organization

Trained people who are skilled at their jobs and trusted by their leaders can do extraordinary things.

History provides us with one of the most remarkable and dramatic examples of what can happen with an empowered team: the Apollo 13 mission to the moon, one of the most famous episodes in the history of space travel—if only because it could have been one of the most tragic incidents in the history of space travel. If you weren’t around in 1970 when this perilous situation grabbed the public’s attention (or if you didn’t see the Tom Hanks movie about the moonshot gone wrong), here’s what happened: Damage to the spacecraft resulted in a life-threatening situation for the three men on board. The air supply in the lunar module—the crew’s “lifeboat” when the service module broke down—wouldn’t last long enough to bring the crew home alive.

“Yet once I began handing power to my team, I was amazed at how much our organization increased its impact.”
— John C. Maxwell

The astronauts were literally contaminating the air with carbon dioxide every time they exhaled. That’s when a scrappy team of engineers at NASA in Houston averted disaster. They took a pile of random objects—including duct tape, plastic bags and cardboard—and used them to devise an air-filtration system essential to survival.

With lives on the line, NASA leaders trusted their people to make the impossible possible. They empowered the engineers to create a miracle, and they did.

How did the NASA brain trust do it?

They had confidence in their staff.

The engineers at NASA are some of the best in their respective fields, but so are the people who lead them. Because of the gravity of the moment, some of those leaders might have quite logically said, “I have years of experience in this field, and this is a huge assignment. I’ll take it from here.” Instead they put their faith in the engineering team, trusting them to solve the crisis.

They gave the staff permission to work.

There were no parameters, no limitations. The leaders simply said, “You have these materials with this objective, and it has to work.” Because of the situation, NASA leaders understood a powerful truth: When it comes to getting someone’s very best, expectations are better than rules. Rather than narrowing the possible outcomes, NASA opened the door for the engineers to explore the boundaries of their creativity.

They gave the staff all the resources they could.

This doesn’t mean the engineers received a blank check to do whatever they wished. They had to work with a very limited pile of materials available to the astronauts in the Apollo module. But they were told they could use any of those materials in whatever combinations they desired. In this case, the quantity of resources was limited, but the use of the resources was not.

The astronauts said, “Houston, we have a problem;” and before it was too late, NASA’s empowered engineers said, “OK, Odyssey, here’s a solution.” Great leadership made the solution possible.

While you and your team may never face a situation as dire as the Apollo 13 mission, you still face challenges together every day. Some are small; some are large; all are opportunities for your team to produce outstanding results.

The question is: Will you truly empower them?

JOHN C. MAXWELL is a leadership expert, speaker, best-selling author and the founder of EQUIP and.the John Maxwell Co., which have trained more than 5 million leaders worldwide.

How Your Message Can Win the Day

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It’s only natural to tell the world through your marketing how great and unique your company and products and services are.

That’s been the formula for as long as marketing has been around. But in today’s competitive landscape companies need to communicate clearly why their prospective customers and distributors need their products in their lives.

In our cover story this month, writer Courtney Roush talks about how everyday people the world over are looking for solutions to their problems. And those direct selling companies who can effectively show empathy for what they are going through, while helping them solve their problems through their products and services, will win their business time and time again, and create raving fans who will spread the gospel of how you helped them.

At the end of the day, if your message doesn’t clearly communicate how you can help customers and distributors win the day, you will be simply ignored. Your company story may be very compelling and worth telling, but it needs to also connect the dots in helping people get their unfulfilled needs met.

In this issue we also take a look at how many field organizations are using Instagram TV (IGTV) in promoting their businesses, building a following and their own personal brand. Writer David Lee offers a few effective ways direct sellers (both at corporate and in the field) can get the most out of this new Instagram feature.

We also are excited to share with you company profiles on Perfectly Posh and Kannaway. I was able to visit Perfectly Posh’s headquarters in Salt Lake City recently and came away thoroughly impressed and delighted how CEO Ann Dalton and team have created an open and fun culture that also extends to their consultants and their fun products. Be sure to read the Q&A with Ann and Chief Sales Officer Eddie Silcock.

Did you know the U.S. hemp market pulled in $820 million in sales in 2017? With the current Farm Bill set to be passed later this year, the market is poised for continued growth. Kannaway is one of the companies who have entered this exploding market. CEO Blake Schroeder shares his story of being a pioneer in the cannabis space, as well as the first company in direct selling to enter the market. How he and his team have successfully dealt with regulation, sourcing, and promotion is a great primer to all that are considering entering the market.

And finally, if your company hasn’t nominated itself for the Best Places to Work, be sure to do so as nominations close October 27.

For more information go to DirectSellingNews.com/BestPlacesToWork.

All the best,

Todd Eliason
Publisher and Editor in Chief
teliason@directsellingnews.com

SimplyFun Receives Distinguished Teachers’ Choice℠ Award

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SimplyFun, LLC recently received a Learning® Magazine 2019 Teachers’ Choice℠ Award for the Classroom for its Math & STEM game, Owl Solve That!

Each year, a team of teachers evaluates each submitted game in the classroom based on quality, instructional value, ease of use, and innovation. Owl Solve That! is one of 27 products that received this honor for 2019.

This is the second consecutive Learning® Magazine 2019 Teachers’ Choice℠ Award for the Classroom for a SimplyFun game. Math Medalist received the award in 2018.

“Supporting learning through play in the classroom is an important part of our mission at SimplyFun,” said SimplyFun President and CEO, Patty Pearcy. “It is especially meaningful for us to be honored with this award for the second year in a row for our unique math games.”

Owl Solve That! was designed by renowned game designer, Dr. Reiner Knizia.

SimplyFun believes in the undeniable power of shared play to learn, grow, and realize fullest, brightest potential.

Mary Kay Inc. Appoints Deborah Gibbins as Chief Operating Officer

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Mary Kay Inc. recently announced the appointment of Deborah Gibbins to Chief Operating Officer at the company’s global headquarters in Addison, Texas.

Gibbins will now be responsible for the Global Supply Chain and Research and Development organization including the new global Richard R. Rogers Manufacturing / R&D Center in Lewisville, Texas. She will continue to oversee the finance, public affairs and strategic planning divisions at Mary Kay Inc.

“This is an exciting time for Mary Kay as our company celebrates 55 years of inspiring and empowering entrepreneurs around the world,” said Deborah Gibbins. “As one of the top innovators in the direct selling and cosmetic industries, Mary Kay is a cosmetics powerhouse with more than 700 products in its global portfolio. As we continue to produce best-in-the-industry products and provide an unrivaled business opportunity for millions, I am honored to serve in a new capacity as Chief Operating Officer.”

“In her five years with Mary Kay Inc., Deb has proven to be an incredible leader and strategic thinker focused on the future of our business,” said President and Chief Executive Officer for Mary Kay Inc. David Holl, “She is passionate about the direct-selling model and the opportunity it creates for women around the world. Known for looking at situations from all angles and challenging the status quo, Deb is constantly working to identify ways that our company can be more efficient and agile, to better serve our markets and millions of Mary Kay Independent Beauty Consultants worldwide.”

Nature’s Sunshine Announces Terrence Moorehead as Chief Executive Officer

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Nature’s Sunshine Products, Inc. recently announced that Terrence Moorehead has been appointed Chief Executive Officer and a member of the Company’s Board of Directors effective October 1, 2018.

Terrence Moorehead

Terrence Moorehead

With over 20 years of experience developing consumer strategies, strengthening processes, and driving profitability across multiple channels, Mr. Moorehead brings leadership, passion and focus to Nature’s Sunshine. His in-depth experience leading complex transformations, revitalizing brands, and building high-performance teams is fully in line with the company’s future plans.

“We are excited to have someone of Terrence’s caliber lead Nature’s Sunshine into the future,” said J. Christopher Teets, board member, Chairman of the Governance Committee and a member of the executive search committee. “He brings a rich combination of leadership, experience, and energy that will breathe new life into the business. His extensive international experience, strong strategic and operational background, and practical hands-on experience building positive relationships will be valuable assets as we reposition the company for the future. Employees and distributors will find his dynamic and high energy leadership style engaging and contagious.”

“I am very excited to be joining the incredible team at Nature’s Sunshine. The company has a long history of excellence, quality, and innovation, but there’s still tremendous opportunity for growth,” said Mr. Moorehead, incoming CEO. “The company’s global footprint and leadership in product development are an excellent platform to drive growth and improve shareholder value. I am eager to join the team and partner with our distributors and employees to take the business to the next level.”

Gregory L. Probert, currently Chairman of the Board and Chief Executive Officer, will retire from his position as Chief Executive Officer effective September 30, 2018, and resign from the Board effective December 31, 2018. From October 1, 2018 until the end of the year, Mr. Probert will be available as a consultant to assist in the transition.

AdvoCare® Goes International with Expansion to Canada

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AdvoCare International, L.P. has officially opened for business in Canada.

The Plano, Texas-based health and wellness company launched its Canadian operations on September 5, bringing weight management and sports performance products and business opportunities to the Canadian market.

“For over 25 years, AdvoCare Distributors have built champions across the United States with our incredible products and best-in-class business opportunity – now it’s time to open our doors to our northern neighbors,” said Patrick Wright, AdvoCare Senior Vice President of International Sales. “We are proud to mark this key milestone in AdvoCare’s history and excited to engage with new customers and Independent Distributors in Canada.”

AdvoCare enters the Canadian market with seven products. The company has announced that Marcia Cota will serve as AdvoCare Canada General Manager. Cota is a 20-year direct sales veteran.

“Direct selling is big business in Canada, and AdvoCare is a fantastic addition to the landscape,” said Cota. “Canada has a strong demand for high quality health and wellness products and a unique entrepreneurial spirit. AdvoCare Canada will allow Canadians to embrace the opportunity to improve their own health and wellness, help others achieve their fitness goals, and enjoy the personal and financial benefits that direct sales offers.”

Canada marks the first international market for AdvoCare.

Direct Sellers Meet with Lawmakers on Capitol Hill

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Photo:  Rep. Joyce Beatty (D-OH) speaking to attendees.

The Direct Selling Association (DSA) hosted its annual Direct Selling Day on Capitol Hill for independent sellers throughout the United States.

More than 150 direct selling distributors and executives representing 14 DSA member companies and 28 states met with Members of Congress during Capitol Hill Day to share personal accounts with their local representatives and staff of how direct selling has positively impacted their lives.

“We were thrilled to have salespeople from across the country gather in Washington DC for our annual Direct Selling Day on Capitol Hill Day to share their thoughts about what it’s like to be an entrepreneur in America today and discuss important issues like the freedom and flexibility to operate their businesses independently,” said Joseph N. Mariano, president and chief executive officer for the Direct Selling Association. “The relationships our members build on Capitol Hill Day help us remain current and connected with our local representatives throughout the entire year.”

During the meetings with lawmakers, DSA participants urged almost 100 Members of Congress to consider the implications and importance of maintaining the independent contractor status for all direct sellers.

Attendees heard from members of the Direct Selling Caucus about their support of the direct selling business. Speakers were:

  • Rep. Joyce Beatty (D-OH)
  • Rep. Josh Gottheimer (D-NJ)
  • Rep. Trey Hollingsworth (R-IN)
  • Rep. Richard Hudson (R-NC)
  • Rep. Marc Veasey (D-TX)

Rep. Joyce Beatty (D-OH) states, “As a member of the Direct Selling Caucus, I am working hard in Congress to create more entrepreneurial opportunities and ladders to the middle-class for more Americans. That is why I am strong supporter of direct selling and true believer in its positive impact on entrepreneurs, customers, and communities.”

DSA will continue working with Members of Congress, legislators, and administrators in its ongoing efforts to police, protect, and promote direct selling and to ensure the entrepreneurs involved in direct selling are fully understood at all levels of government.

MONAT Gratitude Shines a Spotlight on Children Through Theatre

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MONAT Gratitude, the philanthropic movement behind MONAT® Global, a multinational manufacturer and distributor of premium hair care products, has partnered with Lotus House and Little Revolt to bring a theatre camp for homeless children.

Lotus House is a Miami based nonprofit committed to ending child and family homelessness.  They provide sanctuary, support, education, tools and resources to empower the residents to become all that they are meant to be. Little Revolt, a nonprofit theatre and arts organization, lead the workshops.  The camp finale ended with short performances giving the children a chance to shine.

“We are so thrilled to expand our partnership with Lotus House,” said Lu Urdaneta, Director, Global Recognition and Gratitude. “Theater gives kids the power to be anyone they want to be, and we love that we can help to facilitate that for the children and their moms. Perhaps we’re inspiring the next screen or stage star.”

Monat Gratitude has been an integral part of the MONAT company culture since 2014. MONAT Gratitude partners with innovative nonprofit organizations in local communities that support efforts under its three pillars: Families, Children and Education.