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When used properly, email may be more powerful than ever for growing a direct sales business.

Email marketing is dead, right? Far from it. More and more direct sellers are using email marketing to grow their businesses and build a following online. However, the focus is not on selling or promotion. They’re finding the most effective strategy is to bring value, educate and share compelling stories with their subscribers.

Top direct selling and network marketing industry trainer Ray Higdon says that email is still the No. 1 source of income for his coaching business. A 2017 study by Magnetic showed that 44 percent of North Americans check their email one to three times per day, while 18 percent check it four to nine times per day. Those aren’t surprising numbers considering most people can access their email anytime from

their smartphone.

“The 2018 survey conducted by adobe revealed that email was the preferred contact method for receiving offers from brands.”

According to a 2018 survey conducted by Adobe, personal email usage was up 17 percent over 2017 for people who owned smartphones and worked in an office. The survey also revealed that email was the preferred contact method for receiving offers from brands. 39 percent of respondents said the No. 1 thing they would change about brand emails is to make them more informative rather than promotional. 27 percent said that what they wanted most is for emails to be more personalized.

So, more informative and more personal. Sounds pretty simple, right? Those results are fantastic news for direct sellers who want to use email to grow their business and personal brand. They don’t have to be a seasoned salesperson to communicate with email subscribers effectively.

Direct Selling Email Strategies that Work

Email is a terrific way for direct sellers to maintain consistent communication with their customers, prospects and fellow team members. Communicating with hundreds or thousands of people with the push of a button is powerful. Email allows direct sellers to build a loyal following that looks to them as a trusted authority. The key is to communicate value.

Emails that constantly try to sell often get lost in the noise. Providing value means educating, answering questions, solving problems and telling compelling stories. As the Adobe survey revealed, it means being informative.

In his book Jab, Jab, Jab Right Hook: How to Tell Your Story in a Noisy Social World, online business-building expert Gary Vaynerchuk says that content is most effective when it brings value. “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,” he says.

The title of Vaynerchuk’s book sums up this philosophy. The “Jabs” are the bits of valuable content you provide your customers. The “Right Hook” is when you ask for something, such as a sale or an invitation to view the business opportunity. His point is to have more jabs before you ever go in for the right hook. There’s no universal jab-to-right-hook ratio, but the approach applies perfectly to direct selling email strategies.

For example, someone in the health or weight loss industry might email five tips on how to avoid late-night sugar cravings or an email about their favorite high-fiber foods. If the email subscribers have questions about these things or need help in these areas, it opens up a nearly endless amount of valuable content topics. Then, an email might be sent about the specific product the person used to help lose 20 pounds. A genuine success story can be built around the results of the product. The audience is much more likely to listen and pay attention because they have already been given so much value and helpful advice.

“Emails that constantly try to sell often get lost in the noise. Providing value means educating, answering questions, solving problems and telling compelling stories.”

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

The focus on genuinely helping and serving is what makes the transition to selling (or asking) simple and natural. Many seasoned direct selling leaders espouse writing emails in a personal, natural tone as if you were simply writing a letter to a friend. Some do not even include images in their emails, and others rarely include more than one link, which can be seen as “salesy” if done too often.

Tracking Results

Another major benefit of email marketing for direct sellers is the ability to track results such as open rates and click rates. Emails can drive people to an informative blog post, educational or entertaining YouTube video, a training webinar, a Facebook Live interview, or an exclusive discount on a replicated website. Knowing who opened an email or clicked on a link reveals valuable data for direct sellers. Follow-up emails can focus on only those who opened the previous email, helping narrow the target audience.

Another major benefit of tracking results is separating subscribers based on interest. Some subscribers might only be interested in being a customer at first, while others might be interested in the business opportunity. Identifying the differences helps tremendously in getting the right message to the right audience, and at the right time.

CBD’s Current And Future Impact On Our Channel

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If you haven’t heard about it yet, where have you been?

I’m talking about Cannabidiol, or CBD, the ingredient being credited with a growing list of health benefits and, as a result, is rapidly transforming much of the consumer product landscape. Both Dr. Sanjay Gupta and Dr. Mehmet Oz are just a few mainstream medical professionals praising CBD’s wellness impact.

Companies from virtually every consumable category, including beverages, dietary supplements, skin care and pet products, are actively exploring the opportunities, including our own direct selling channel. Our own research shows that direct selling companies will sell $300 million worth of cannabidiol-related products in 2018, making direct selling the largest channel of distribution for the growing CBD product sector.

The trends indicate that global direct selling sales of CBD products could exceed $1 billion by 2020. Established companies, as well as a growing number of startups, have begun announcing their entry into the market.

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

Our cover story, by Sarah Paulk, describes the unique history that hemp/CBD has played in the United States, it’s recent rise in the media, and how direct selling companies are taking the lead not only in sales but in helping educate consumers on its wellness benefits.

With an ingredient that is as misunderstood as CBD, the direct selling channel may prove to be the perfect fit for companies seeking channels of distribution. Direct sellers are known for their one-on-one training and education methods that can meet the consumer on a personal level even if it’s the first time they’ve heard of CBD oil. That personal connection and ability to address specific misconceptions has the potential to create a loyal customer base.

We are excited to share with you a two company spotlights, Mannatech and Maskcara Beauty. Since it’s founding in 1994 Mannatech has made a name for itself with its commitment to innovative products and sound science. President & CEO Al Bala says sound science is obviously important, but will only take you so far. “At the end of the day, every company is going to rise and fall on the value they provide to an ultimate customer.”

From 2009 until 2013, Cara Brook ran her blog sharing beauty tips, tutorials and product recommendations. In her day job as a makeup artist, Cara had always used highlighting and contouring, a makeup technique to accentuate a client’s best features and give an airbrushed look. As the technique went mainstream, Cara saw what could be her big opportunity, so with her $30,000 in savings coupled with some family investment Maskcara Beauty was born. But that is just the start of this amazing entrepreneurial story. Be sure to read it in its entirety starting on page 50.

Save the Date—10th Annual Global 100 Celebration Event—April 24, 2019.

Before your calendars get too full, be sure and circle April 24 on your calendar, and better yet head to https://dsndev.wpengine.com/global-100/ and register you and your team, or even sponsor a table. We will continue to share more details as they become available.

All the best,

Todd

Seldia Recognizes Mary Kay Europe as “Best Company of the Year”

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Seldia, the European Direct Selling Association, recently recognized Mary Kay Europe as “Best Company of the Year” at its 2018 Astra Awards.

Seldia represents 28 national direct selling associations and 20 member companies throughout Europe. Its mission is to promote the interest of national direct selling associations and direct selling companies in the European footprint. “Best Company of the Year” recognizes the corporate member that best raises awareness of the direct selling method of distribution, promotes the method’s socio-economic benefits and demonstrates a strong commitment to supporting the mission of Seldia.

“We were honored to award Mary Kay Europe ‘Company of the Year,’” said Marie Lacroix, director of Internal Affairs at Seldia. “Mary Kay’s commitment to the direct selling industry and its impact on our member direct selling associations across Europe cannot be overstated. They set excellent standards in the direct selling sector and are a great example for the industry.”

“At Mary Kay, we are focused on our mission of enriching women’s lives around the world,” said Tara Eustace, president of the Mary Kay Europe Region. “Receiving the Seldia Astra Award for ‘Company of the Year’ validates that endeavor and increases our resolve to champion women’s empowerment and entrepreneurship.”

“We believe market leadership was instrumental in Mary Kay Europe being awarded this prestigious recognition,” said Eustace. “Many of our market leaders in Mary Kay Europe play an active role in their local direct selling associations, some even serving as president. We believe in this industry and the impact we make in the lives of women and their families through it. We’re grateful for Seldia’s continued efforts in direct selling education and promotion.”

DSA Fall Conference 2018 Recap

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Earlier this month, DSA Fall Conference 2018 welcomed more than 300 direct selling leaders to share the latest innovations, ideas and insights for today’s competitive market.

The conference, held in Arlington, Va., allowed attendees to gain valuable insights on sales and marketing strategies, leveraging technology to fuel growth and brand value, independent contractor classification issues, recent legal and regulatory trends, communications and, industry self-regulation.

“Creativity is the response to uncertainty, and DSA Fall Conference 2018 was a look at where direct selling is today, and what we can do to ensure that direct selling’s independent contractors and companies have everything they need to compete in today’s shifting market climate,” said John Fleming, DSA Hall of Fame and DSEF Circle of Honor recipient.

Highlights of the event included appearances by U.S. Secretary of Labor Alexander Acosta, who praised the contributions of direct sellers to the fabric of the American economy, and Lois Greisman, associate director of the Division of Marketing Practices, Federal Trade Commission (FTC), who lauded the establishment of the Direct Selling Self-Regulatory Council (DS-SRC).

For the full recap of the DSA Fall Conference 2018, click here.

Lessons for Motivating A Volunteer Salesforce

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Direct selling companies and non-profit organizations face a similar dilemma: How to motivate a salesforce made up of volunteers.

These salesforces do not have quotas like typical sales teams. Their sales leaders have no hire or fire authority. Yet they have both been successful in aligning sales goals and motivating growth. How do they do it?

A recent article in Forbes offered insight and advice on best practices for companies trying to motivate a volunteer workforce.

Keep it Simple

Businesses cannot compel volunteers to do anything. The only thing they can do is simplify the message and model the behaviors. That is, make things simple. Duplicable.

Look for Inspiration Everywhere

Look outside of direct competitors for inspiration on how to engage, educate and inspire your salesforce. Research companies that do a good job of the tasks and motions you want your sellers to demonstrate.

Recruiting and Onboarding Can Make All the Difference

New sellers need to get early momentum. It’s an indication of later success and helps the seller know they are on the right track. This is a matter of good recruiting and onboarding while understanding your differentiation and the value you bring to your employees.

Recognize and Appreciate the Choices People Make

People have choices. To work for your company or organization. To spend their time with target accounts. To read emails from the marketing organization or utilize CRM to manage their contacts. Respect the choices people are making every day to invest in your company, to support your campaign and to solve problems for customers. Show gratitude.

To read the full article, click here.

Direct Selling vs. The Gig Economy

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What used to be friendly territory is now a battleground.

The gig economy is no longer an outlier. According to a recent McKinsey Global report titled Independent Work: Choice, Necessity and the Gig Economy found that 162 million people in Europe and the United States—or 20 to 30 percent of the working-age population—engage in some form of independent work.

Working from home or a café, clocking regular hours or nights and weekends only, these workers have more control over their schedules and their earning potential. Herein lies the beauty of the gig economy: It can be whatever a person needs it to be.

For the direct selling industry, all of this sounds very familiar.

So, Who’s Winning?

While companies like Uber, Airbnb and TaskRabbit may have made the gig economy sexy, direct selling lays claim to being the first to plant the flag. Long before it was normal to rent out a spare bedroom to strangers, direct selling was the go-to opportunity to make additional income without the cubicle or office hours.

Even though direct selling was here first, it is the flashy new influx of companies within the gig economy that have offered increased credibility to direct selling. Freelancing and side hustles are now more attractive and accepted than ever, and customers have been conditioned to make purchases in nontraditional ways, like through their phone, on an app, or from a friend.

“It’s not a competition. But if it were, it seems the gig economy might be winning.”

All these positives have created a symbiotic relationship between the two, leading the direct selling industry to praise all that the gig economy represents. But are direct selling and the gig economy really the same? What if the two were treated as separate entities; which one would come out on top?

It’s not a competition. But if it were, it seems the gig economy might be winning.

Digging Into the Numbers

In 2015, direct sellers numbered 20.2 million and brought in over $36 billion in sales according to the Direct Selling Association. By 2017, that number had fallen to 18.6 million representatives and $35 billion in sales. In just two years, sellers and sales dropped nine percent. The gig economy, on the other hand, encompasses more than three times as many workers as direct selling, and Intuit, the owner of TurboTax, expects the number of gig workers to increase to 43 percent of the workforce by 2020.

Digging deeper, the numbers reveal that of that 18.6 million U.S. direct sellers, 4.1 million have been classified as either discount buyers or have no intention of selling the products to others. And nine million have gone inactive. When the DSA’s 2017 numbers were revealed at their Annual Meeting in June, the following observations were given regarding the drop-in people involved in the channel for two straight years:

  • Companies who have yet to restructure or segment their base of distributors from discount buyers to preferred customers.
  • It is a market correction after years of significant growth
  • Pressure from Amazon and gig economy opportunities

The first two may indeed be valid contributors to the decline, but it is our opinion the last one most likely is the culprit and will continue to be well into the foreseeable future. Our channel’s attention has been laser-focused on what to do with the 800-ton gorilla that is Amazon—and rightfully so—they will do more in revenue in 2018 than our entire channel will do globally.

But the stealth threat from gig economy opportunities has been slow in developing over the years, lurking in the shadows, and it’s time to shine the spotlight on the effect it’s having on the channel.

So Where are Direct Sellers Going?

It is not just important to understand what alternative incomes people are now pursuing, but it’s equally important to understand the people who are participating in them.

Gig Economy Participants

Of direct selling’s 18.6 million U.S. distributors, most were Caucasian millennial women. Major players in the gig economy, on the other hand, are predominantly male, like Uber, with female drivers only making up 18 percent of the company. However, that number was 14 percent in a 2015 survey.

As smaller, evolving businesses, like Etsy (where women rule the day with an 86 percent female labor force), continue to gain more attention and market share, the pressure is building for direct selling leaders. If any of the female-dominated companies gain a significant amount of momentum, the hurt direct selling is experiencing will only intensify.

The Female Factor

With digital platforms like Upwork making independent work easier than ever, the number of people who can operate as independent workers is growing. The same McKinsey study reported that 27 percent of the U.S. working population–68 million people—are engaged in the independent workforce. Over half of those independents, 51 percent, are women.

“In an industry where women make up 73.5 percent of its sales force, losing any more its female base to other gig opportunities will be a devastating blow.”

Don’t blame the shift on changing household roles or economic instability either; they’re showing up by choice. Of those workers, 72 percent chose the independent model to earn a primary or supplemental income, while only 14 percent did so out of financial necessity.

In an industry where women make up 73.5 percent of its sales force, losing any more its female base to other gig opportunities will be a devastating blow. Getting to the starting gate first doesn’t guarantee a win. With direct selling numbers dropping and gig economy numbers rising, it’s becoming difficult not to connect the dots. Is the gig economy pulling workers and profits away from direct selling? What will the future of direct selling look like if the trend continues? It’s a brewing storm no one within the industry is anxious to talk about publicly–yet.

The Conversation is Changing

Industry insiders are beginning to sound the alarm that direct selling must now find the ways it’s different or, more importantly, the ways it’s better.

Co-Founder of Strategic Choice Partners, a consulting firm specializing in the direct selling industry, Alan Luce recently wrote, “The growing competition to attract people back to direct selling and away from the opportunities of the gig economy presents the biggest challenge that our industry has faced in the last 40 years.”

As people migrate away from direct selling, there is a quiet groundswell among leaders to urgently differentiate and position direct selling as a separate, unique and more attractive opportunity than what the growing gig economy has to offer. What’s always worked for direct selling may not be enough anymore.

Direct selling has long been the opportunity that allows individuals to be a part of a community that offers support every step of the way, a flexible schedule, and no boss to report to at the end of the day. These perks have been the big draw for the direct selling industry for quite some time. And it’s worked.

Upping the Ante with Incentives & Benefits

But the gig economy has taken that sales pitch, made it its own, and added icing to the cake: no startup fees and leads that come to you in Uber and Lyft’s case. Behind closed doors, industry analysts have begun referring to these alternative income opportunities that do the heavy-lifting of providing customers for its workers to appear as menacing as Amazon’s free shipping has been to the channel.

The shift toward independent work is bringing more flexibility and income opportunities for sure, but there are still questions surrounding benefits, income security mechanisms, and other worker protections the mainstream wants answers to. And many Gig economy companies are already starting to address these.

On-demand food delivery service Caviar and online survey software provider SurveyMonkey have started offering its gig workers insurance benefits, but Uber recently announced in 2019 it will be taking its perks to a whole new level.

Much like customers love to unlock the Gold Level on their Starbucks app, Uber drivers can unlock status–gold, platinum and diamond–by driving frequently and providing great service. For drivers who meet these status requirements, Uber provides fuel and auto repair discounts and will cover the cost of tuition to Arizona State University’s online program–not just for drivers, but also tuition for their children, spouses and parents.

Other big-name brands like Walmart and Amazon have been footing the bill for a portion of the costs for its employees’ educations for a while. The difference? Uber drivers are not traditional employees. The commitment isn’t cemented after an application process and job interview or attached to assigned shift work; it happens through dedication and loyalty to the brand. For Uber drivers, this new program means all they need to do is show up–when they want to, of course–and perform well for the customers Uber provides. No lead generation, no backend invoicing, no team building. Just turn on your phone, show up for waiting customers, and be courteous. That’s it.

Gig Trends to Watch

Some companies are launching their own spin on the side hustle, like Vitalibis, a cannabis-based health and wellness company, and Teami Blends, a health and wellness loyalty company–trend makers in their own right–who recently launched companies with a twist on the traditional platform by combining e-commerce, social selling and affiliate marketing. For these companies, referrals, not recruits, are the goal.

“To thrive, our channel industry must apply its outside of the box creativity to popular gig economy trends as well. The conventional founding model has value, but tradition alone won’t save it from becoming obsolete.”

UK company Verve has positioned itself to become Gen Z’s preferred affiliate marketing company by capitalizing on the younger demographic’s love for entertainment and discounts. Partnering with reputable entertainment companies like Live Nation, MGM Resorts International, Marriott International and integrating directly with ticket providers like Ticketmaster and Eventbrite, the company allows its advocates to share buzz about events and then earn non-traditional rewards, like backstage passes or VIP treatment, when others buy tickets through their unique referral link.

Creating product trends is one of direct selling’s greatest skills (like bringing ingredients mainstream that were previously obscure to the western world, such as acai berries) but to thrive, our channel industry must apply its outside of the box creativity to popular gig economy trends as well. The conventional founding model has value, but tradition alone won’t save it from becoming obsolete.

Threat or Opportunity?

Direct selling has been the frontrunner when it comes to providing perks it gives its distributors when they meet certain qualifications, including car programs, complimentary exotic vacations and large residual bonus checks handed out on stage.

So it should be no surprise that the gig economy has taken a page from our playbook. But what the gig economy has proven—and what direct selling companies would be wise to heed—that it’s not just about a car bonus or even the potential to earn a sizable income that will compete for today’s worker. They want an opportunity that allows for a little extra income on demand, and the option to choose from several levels of income and effort, with minimal investment required. The influx of emotional capital that comes from working with a company that brings the customers to you (Uber & Lyft) can’t be ignored either.

How Will Our Channel Innovate & Lead?

And yet, what poses the greatest threat could also be direct selling’s greatest opportunity. Is it in the realm of possibility that we could take a page from the gig economy’s playbook and get leads from our customers, or make our customer and distributor sign up process easier and frictionless? Can we make onboarding our distributors so simple and seamless where all they have to do is turn on their phones to be told what to do next? And finally, are we going to focus on changing lives or do we pivot to changing their incomes first before changing their lives?

“Industry executives can either continue with head-in-the-sand thinking and pretend this trend won’t affect the future of direct selling, or they can take a step back and allow themselves to hear the alarm bells and make changes before it’s too late.”

Direct selling remains a leader, but it’s possible it is now leading from behind. Industry executives can either continue with head-in-the-sand thinking and pretend this trend won’t affect the future of direct selling, or they can take a step back and allow themselves to hear the alarm bells and make changes before it’s too late.

Generations of entrepreneurs have turned to direct selling to help improve their lives. Without some type of course correction, more people might leave the channel altogether, and it’s possible they’ll call Uber to get there.

Young Company Interview – Kalaia

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Welcome to the Young Company Interview Series

If you look at the companies and industries that have been disrupted the most over the past five years, it has been from young companies who have forced bigger brands to not only take a look at their operations but start thinking more like beginners instead of experts.

The same goes for the direct selling industry. Companies like Le-Vel and Pruvit have upended the notions of needing a home office, and have leveraged social media by through the telling of impactful stories. New companies with new ideas, deserve our attention. That’s what DSN intends to accomplish with our Young Company Interview series. There are a lot of companies in the direct selling space just starting out that have good ideas—ideas many mid-level to large companies can learn from. Gaya Samarsingha, CEO of Kalaia is someone whom you will learn a few things from.

Born and raised in a small town in Sri Lanka, Gaya had a very humble upbringing. Thanks to her parents, Gaya had the opportunity to come to the United States to pursue her higher education. She holds a bachelor’s degree in Management Information Systems from Utah State University and an MBA from Iowa State University.

During her decade-long career in the direct selling channel, Gaya has worked with mature billion-dollar companies to newer and smaller companies that are going through hyper-growth stage both in traditional direct selling and party plan structures.

Gaya Samarasingha

Gaya Samarasingha

 KALAIA
Founded: February 2018
Headquarters: South Jordan, Utah
Top Executive: Gaya Samarasingha, CEO
Products: Skin Care
Website: Kalaiaproducts.com

I caught up with Gaya recently to chat all things Kalaia, the state of the industry, and much more. Here is our discussion.

Todd Eliason, Publisher & Editor in Chief

Is Kalaia a party plan or a network marketing-based model?

Gaya: I would say we are a hybrid of the two. I’ve been in the direct selling channel pretty close to a decade now and have worked for several different companies. I’ve seen the strengths in both models. We do have some aspects of a party plan because a lot of our Brand Partners sell the product either one-on-one or in a setting that we call “Socials” where they are able to get the product in front of people. At the same time, we have a Success Plan (compensation plan) that pays well for those who are building a business and going after a full-time income. That’s why I say we’re a hybrid. I took the things I liked from both models and incorporated them into Kalaia.

What does Kalaia mean?

Gaya: We did a whole video about how the brand came to be, but essentially, it is the combination of two words. One is “Kalon,” which means that beauty is more than skin deep, internal beauty of a person. “Gaia” means Mother Earth, which resonates with the ingredient story, because we’re all about natural ingredients from around the world.

Tell us about your startup phase as far as operations and infrastructure. How many employees do you have?

Gaya: We have two of us who work full time, but we have several others that are contracting and on retainers, which works well for us as a startup. We use the same people over and over again, so they are an extension of our brand and our team. They are invested in Kalaia, and they know our brand in and out, which makes it easy to work with them. I self-funded the whole company, so I’m making sure we have a very lean infrastructure at this point.

The beauty space is a very crowded space, as you probably know. What are you bringing to the market that is unique and different?

Gaya: Two things. We have combined unique natural ingredients from around the world, ingredients that have been used in skin care rituals for thousands of years, to create our products.

We also offer one of the most efficacious yet simple skin care regimens out there that works for all skin types and skin concerns. People don’t have time to spend hours using a 5-7 step skin care regimen every morning and night. That’s why customers don’t see results with most products because they don’t stay consistent. Also, as you age, you have more than one skin concern you want to resolve.

We offer a simple 3 step system that is made with safe and natural ingredients; and effective for all skin concerns and different skin types.

You have worked in a variety of positions with many of the top companies in the direct selling channel. How has your experience in these positions prepared you for being a CEO of your own company?

Gaya: Most of my experience in the industry come from international expansion. I’ve launched and managed markets in five continents and each one is different. When you launch a new market, you touch every aspect of the business from legal to operations to sales, marketing and field development. It is not much different from starting up a new company. I think that experience came in real handy for me as I launched Kalaia.

What part of the job of CEO has been the biggest challenge for you?

Gaya: The funding process was the biggest challenge and the surprise for me as I launched Kalaia. I guess I didn’t realize even with all that experience and the connections, how hard it would be to find funding as a female entrepreneur. But those challenges I faced turned out to be a blessing, I decided to fund the company on my own. Of course, that changed the initial business plan and the forecast, but it is lot less stressful knowing I don’t have to answer to anyone and I’m able to have the patience to grow the company the way I want.

Was there a certain roadblock during the startup process that really was particularly challenging?

Gaya: I think one of the most challenging parts was getting the products ready and managing all the moving parts with new vendors and a tight timeline. Of course, some parts of the manufacturing process were a learning curve for me. I had to be very hands-on, and It was frustrating at times. Though we had to move the launch date a little bit, due to the holidays and things like that, we made it work. At the end of the day, it was a great launch.

What were your early benchmarks for success? What did you measure against so you knew that, “Hey, it’s hard, but we’re improving.”

Gaya: I think hitting that first hundred brand partners, getting them onboarded and motivated to grow their businesses was the first real success benchmark. You can have all kinds of numbers and predictions, but everything is just a bit of a guess in the beginning, right? And we have attracted a great group of people who have never done direct sales before, so everything is new and fresh for them. They are very coachable and are willing to do what it takes because they have no frame of reference from a past opportunity.

Obviously, that inexperience comes with its own challenges. They didn’t come to us with an established network or the knowledge of the industry, but their passion for the product and a ground floor opportunity has made up for a lot of the inexperience. And today, we are seeing many of them become leaders right before our eyes. They’re feeling confident about the company, the product, and most importantly in their ability to lead and grow their teams.

You are a very purpose-driven company, tell a little about your Kalaia Cares program.

Gaya: When I was about five years old, my mother quit her job in Sri Lanka to start her own company. Obviously, they were living paycheck to paycheck and didn’t have any savings. But she was ambitious and wanted to start a company. Honestly, I didn’t know this story until I was ready to quit my job and start Kalaia. When I called her to tell I was following in her footsteps, she was so excited and told me her experience in starting a company where she applied for $100 loan and got rejected from the bank.

But she somehow figured it out, obviously, because she went on to build several successful businesses in Sri Lanka. That was 30 some years ago, in a developing country where women didn’t drive much let alone start successful businesses. She overcame all of that.

Fast forward 30 years later to 2018. Like my mother, I was trying to start my own company in the United States and faced the same challenges finding funding, even with my formal education and experience in the industry.

I came across a statistic that said in the U.S. women are 60 percent less likely to get funding for any business compared to men. The struggle to find funding early on gave me the idea to give one percent of all sales to the Kalaia Cares charitable program, which helps fund different entrepreneurs through microloans across the globe. To date, we have given out three loans to female entrepreneurs in New York, the Philippines and El Salvador.

Both our Brand Partners and customers have really resonated with this program and they want to be part of a greater cause. We’ve had people become Brand Partners just because they fell in love with that aspect of the business and the brand.

What would you say is your leadership style?

Gaya: I would never ask anything of my team that I’m not willing to do myself. No task is too big for me given I started my career at an entry-level position not so long ago, and I’ve touched all facets of the business, so that’s one. You can almost call me a workaholic. You don’t get to grow a successful company without being one. But at the same time, I’m big on teaching and coaching people. I love working with people who are ambitious; and willing to learn and grow. We work really hard, but we also have a lot of fun doing it. That’s why doing what we are

passionate about with the people we love and having fun is one of our core values.

What kind of tools do you offer your brand partners to help in building their business?

Gaya: We offer a business kit for $199 which gives our brand partners everything they need to get started including all four of our products. They also get some product and opportunity brochures. The business kit also includes a beautiful Kalaia branded tote bag. We are very proud of our brand, and we wanted them to have a branded item they carry around from day one. Brand partners have access to a back-office and a replicated website free of charge.

As far as training goes, we have created a program called K30. From day one all the way to day 30, we give them different pieces of training each day and put them on a schedule. They can watch a video or review a document, spend 30 minutes on their social media strategies, and an hour connecting with potential customers and Brand Partners. We offer optional coaching opportunities for anyone who is serious about building their business. I personally coach our top leaders every single week, which gives me quite a bit of visibility into what exactly they’re doing and what’s happening in the field.

What have you learned about yourself in the past year that has helped you the most?

Gaya: Personally, I think I’ve learned that I can do a lot more than I thought I could do because I’ve had to push myself out of my comfort zone. There were a lot of things I thought there’s no way I could do it, for example creating my own compensation plan or doing graphic design. But I realized when you are put in that situation, you have the ability to learn the skills, you just need to be able to push through the fear and the discomfort. So, from a personal standpoint, that was a big eyeopener.

As a channel, what do you think we need to do better, so we could compete with the likes of Amazon in the years to come?

Gaya: I think we need to stay focused as a channel and concentrate on our strengths. E-commerce does play a big role in the digital world. You can’t live without it, but at the same time, what do we do better than what Amazon does? We build relationships with people. Today’s consumer trusts the recommendations and testimonials of the people they know, or they can relate to. That’s our core competency and the competitive advantage. Yes, there needs to be a good e-commerce platform and technology, no doubt, but we can’t lose the personal touch. That’s why we’re in this business, and that’s where we stand out.

From the customer/brand partner experience angle, how do you stand out in a sea of other products and opportunities?

Gaya: For us, when somebody signs up, they get their kit in two days. That was intentional from the beginning. Because when somebody joins they are only in that excitement window for a short period of time. I don’t want them to have to wait a week to get their kit to experience the product and get their hands on the business tools. They are immediately plugged into the trainings, and we connect with them personally as well to welcome them to the team.

When we send out a customer order, they come wrapped with a beautiful Kalaia-branded tissue paper and a sticker on top. Our packaging is very unique and beautiful; it tells a story. From the time a customer gets their hands on that box, we are creating an experience. All those little things cost us money but, customers love these subtle touches because they make them feel special—and they are special to us. It’s not just another box that they get in the mail, it’s an experience. Same goes for our products, from the smell to the texture, everything about it is an experience they look forward to.

What are you working on right now for 2019?

Gaya: From a product standpoint, I don’t think we will touch another product category next year. Instead, we will expand our skin care line. We’re already working on a few products. We have announced our first convention that’s happening in April 2019, which will be in New Orleans. It will be our second event, but our first convention. We just barely finished a leadership retreat in September where we flew in all our top leaders for a whole weekend together, did some training, as well as recognition and celebrating what they’ve accomplished. We are very excited for what 2019 will bring.

 

Herbalife Nutrition Foundation to Expand Casa Herbalife Program

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Herbalife Nutrition Foundation (HNF) announced that it will commit an additional $1 million to expand its Casa Herbalife program.

The pledge will help the program, which was established in 2005, expand to more than 20 new community partners who provide access to good nutrition for children all over the world. The program currently serves more than 100,000 children in more than 50 countries, including orphanages, after school centers and other community organizations.

“On Giving Tuesday, and every day, we should remind ourselves of the often-cited verse ‘To whom much is given, much is expected’ because we all have a responsibility to care for our neighbors, especially the most vulnerable amongst us,” said Alan Hoffman, president of the Herbalife Nutrition Foundation. “Thanks to the generosity of the Herbalife Nutrition community, this $1 million grant will help at least one vulnerable population, children, lead healthier and happier lives.”

The Foundation’s partnerships with local charities expanded in 2018 with the opening of seven new Casas in Australia, Malaysia, New Zealand, Singapore, South Korea and two in Vietnam, bringing the number of partners to more than 130 organizations.

Small Business Saturday 2018 Spending Sets Record High of $17.8 Billion

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Photo: Life-sized Shop Small® gingerbread shop in San Diego, CA.

The ninth annual Small Business Saturday kicked off the holiday shopping season for consumers and small, independently owned businesses with record levels of reported spending.

Total reported spending among U.S. consumers who said they shopped at independent retailers and restaurants on November 24, 2018, reached a record high of an estimated $17.8 billion, according to data released today from the 2018 Small Business Saturday Consumer Insights Survey from American Express and the National Federation of Independent Business (NFIB). Based on this annual survey over the years, Small Business Saturday spending has now reached a reported estimate of $103 billion since the day began in 2010.

Communities across the U.S. and Puerto Rico celebrated this Small Business Saturday with special events and activities. From lighting up the Empire State Building blue in New York to crafting a life-sized Shop Small® gingerbread shop in San Diego, to block parties featuring local jazz and salsa bands in San Juan, businesses and neighborhoods showed what makes their communities unique and vibrant. According to the same survey, an estimated 104 million U.S. consumers reported shopping or dining at local independently owned businesses on Small Business Saturday.

The survey also found that an estimated seven in ten (70%) American adults are aware of Small Business Saturday. Among consumers who said they shopped small on the day, 42 percent reported shopping with family and friends at independently owned businesses, and 83 percent reported encouraging others to also shop or dine small. Shoppers also turned out for online small businesses—among consumers who said they participated on the day, 41 percent reported that they shopped small online.

In a separate, new survey of small business owners with storefronts—2018 Small Business Owner Insights Survey—American Express and the NFIB explored the importance of the holiday shopping season. Finding from the survey, which took place November 5-12, in advance of Small Business Saturday, included:
  • Small business owners expect an average of 29 percent of their total annual sales to take place during the holiday shopping season.
  • 59 percent said Small Business Saturday contributes significantly to their holiday sales each year.
  • Two-thirds of small business owners surveyed (66%) said they were planning promotions, sales or activities during the shopping days following Thanksgiving (i.e., Black Friday, Small Business Saturday and Cyber Monday) to take advantage of the holiday shopping season.
  • Among companies that were planning promotions on Small Business Saturday, 92 percent said the day helps their business stand out during the busy holiday shopping season and that the benefits of participating include bringing in more and new customers (74%), improved sales (70%), raised awareness of small businesses in their community (69%) and the day helps their local neighborhood and community prosper (66%).
Looking at the full shopping period between Thanksgiving and Christmas, small business owners are optimistic about the holiday shopping season.
  • More than eight in ten (83%) said they have a positive outlook on their business’s holiday sales this year.
  • More than two-thirds (69%) of those surveyed expect their holiday sales to be stronger than in 2017.
  • Half (51%) of surveyed business owners reported they will extend their store hours beyond the normal business hours.
  • More than one third (36%) plan to hire more staff for the holiday season.

Small Business Saturday benefits communities beyond just one day. According to the 2018 Small Business Saturday Consumer Insights Survey, 96 percent of consumers who reported shopping on Small Business Saturday said the day makes them want to Shop Small all year long, not just during the holiday season.

Beauty & Personal Care Market Expected to Reach $716 Billion by 2025

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The global beauty and personal care products market size is anticipated to reach $716.6 billion by 2025.

According to a new report by Grand View Research, there are four key factors that are expected to drive a CAGR of 5.9 percent in the market over the forecast period:
  • Growing preference for natural and organic personal care (NOPC) products
  • Increasing adoption of Augmented Reality (AR) in the beauty industry
  • Growing demand for anti-aging products
  • Increasing popularity of men’s grooming products

Growing awareness about health, wellness and personal grooming and appearance among men is projected to account for a rise in the demand for men’s grooming products. This, in turn, is expected to boost the growth of the market over the forecast period. A variety of men’s toiletries are now available in the market, such as deodorants, hair care and skin care products, and bath and shower products.

The Asia Pacific market accounted for the largest share of the market in 2017. It is expected to witness a significant gain in revenue share over the forecast period due to its large population and the popularity of the e-commerce distribution channel across various industries in this region. Japan, China and India are expected to be the key contributors to the growth of the organic products segment in the region over the forecast period.

Key findings from the report:
  • The demand for the beauty and personal care products market is expected to increase owing to rising aging population and growing consciousness to maintain youthful skin and a good appearance. The skin care/sun care segment is expected to register the highest CAGR of 6.2 percent over the forecast period
  • The U.S., China, Japan, India and Mexico are expected to witness considerable growth over the forecast period owing to robust industrial development and extensive urbanization

The key players in this market include Avon Products, Inc.; Beiersdorf AG; Coty Inc.; Kao Corporation; L’occitane International S.A.; L’Oréal Group; Procter & Gamble; Mary Kay Inc.; Shiseido Company, Limited; Unilever Revlon, Inc.; and The Estée Lauder Companies Inc.

Thirty-One Gifts to Visit NYC for Holiday Give-Back Events

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Company representatives and sales leaders from Thirty-One Gifts are visiting New York City for two days of give-back events Nov. 27–28.

Thirty-One’s philanthropic division—Thirty-One Gives—is leading the trip and invited the company’s sales leaders to join them to be part of the celebration to serve and support several nonprofit organizations. A total of 189 sales leaders from 36 U.S. states and two Canadian provinces will be part of the volunteer outreach.

“Our leaders are joining together in New York to ‘Be the Give’ and perform several charitable activities at nonprofit organizations we support,” said Wendy Bradshaw, executive director of Community Affairs & Philanthropy. “These are some of our most special giving moments of the year and will take place on Giving Tuesday and the following day.”

On November 27, the group will appear at the TODAY Show Plaza outside the NBC TODAY Show, celebrating Thirty-One’s donation of $1.5 million in products to the TODAY Show Toy Drive, the USO and Operation Homefront to support military families. This year will be the eighth time Thirty-One has donated to the Toy Drive.

Later that day, Thirty-One’s leaders will volunteer at the World Vision Give Back Shop, located in a large interactive display at Bryant Park. Visitors will learn about the opportunities to share in World Vision’s mission work and may take a virtual reality walk through Africa. The display will feature goats, alpacas and other animals that can be sponsored for families internationally, as well as an area to virtually meet children available for sponsorship.

Thirty-One also will sponsor an area to build Hope Kits at the World Vision exhibit. Hope Kits are toiletry bags from Thirty-One that are filled with women’s hygiene products and a personal note of encouragement from the volunteer who filled the bag. The sales consultants will volunteer to build Hope Kits during their visit, and they will be delivered to women in need throughout the U.S.

Thirty-One is the Giving Tuesday match partner for Christian humanitarian organization, World Vision. On Tuesday, November 27, Thirty-One will match donations up to $2 million in products to help families around the world with items to keep babies warm, deliver medical supplies and keep girls in school.

On Wednesday, November 28, the group will volunteer at several nonprofit organizations. With World Vision, they will serve brunch and deliver Hope Kits with Women of Literacy (LINC), and will distribute school supplies to students in low-income neighborhoods via their mobile Teacher Research Center. They also will volunteer at the Salvation Army, assisting children with homework; and at Young Life, to provide fellowship to teen mothers.

Through Thirty-One Gives, the company has donated more than $100 million in product and cash since 2012 to nonprofit organizations that empower girls, women and families.

Telecom Plus Half-Year Revenue Up 4%

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Telecom Plus PLC (trading as the Utility Warehouse)  announced its half-year results for the six months ended 30 September 2018.

Revenue was £311 million, up 4 percent from £299 million in 2017. The number of Members and services for the period increased by 10,479 and 86,372, compared to 5,265 and 36,348 in 2017 respectively. According to the company, the majority of this growth achieved during the second quarter.

“Growth during the first half of the financial year was encouraging at double the level we achieved during the corresponding period last year,” said Chief Executive Andrew Lindsay. “Revenues and profits are at record levels, and our balance sheet remains robust. In contrast to the majority of other energy suppliers, this puts us in a strong position now that the dynamics of the energy market have started to change in our favor. We are on track to deliver growth in customer and service numbers that is materially up year on year.”

Telecom Plus is the UK’s only fully integrated provider of a wide range of competitively priced utility services spanning both the communications and energy markets.