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Full Stream Ahead

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Dallas-based Stream continues to expand its footprint and stay at the forefront as a leader in the direct selling industry.

Stream
Founded: 2005
Headquarters: Dallas, TX
Top Executive: Mark “Bouncer” Schiro, CEO
Annual Revenue: $958 Million
Products: Energy (electric and gas), wireless, protective and home services

Dallas-based Stream was founded in 2005 by Rob Snyder and Pierre Koshakji as a direct selling company that provided energy services in deregulated markets. The new business model shook things up and created a new niche that revolutionized both the direct selling industry and the energy industry.

Today, Stream continues to make waves in many ways, providing electricity and natural gas services in nine states—Texas, Georgia, Pennsylvania, Maryland, New Jersey, New York, Illinois, Delaware and Ohio—plus Washington, D.C., but is also expanding its footprint nationally by providing wireless services.

“We’re focusing mainly on energy and wireless,” says CEO Mark “Bouncer” Schiro. “Wireless gives us a national footprint. With energy, we are in nine states, plus Washington, D.C., where we are providing energy to our customers.” They added home and protective services that make Stream a one-stop-shop for their customers’ needs.

“Micro-entrepreneurship in my opinion is one of the purest things America has to offer. And we do that through network marketing.”
—Mark “Bouncer” Schiro, CEO of Stream

Going nationwide and providing a new territory for Associates was the strategy behind Stream’s decision to expand into other product categories. “When we saw we had the ability to add wireless to our portfolio, it was a no-brainer for us,” says Schiro. “We shook up the energy business by providing simple and secure plans for our Associates and providing them with value. And we did the same thing with our nationally launched wireless program.”

Flourishing Footprint

Although the new focus on connected services has generated excitement and enthusiasm among Stream’s Independent Associates, Schiro admits launching new services is a long process. “We have not hit the numbers we would like to hit,” Schiro says. “But we at corporate are continually improving at preparing the runway for our Associates to succeed, including offering more training and tools to support their business. Now that we are into our third year of wireless, we are hitting our stride. We finally are profitable, so it’s a profit center for us. Now we want to really grow the business. That’s where we’re headed.”

Schiro served as CEO of Stream from December 2011 through February 2016 before becoming chairman, and Larry Mondry assumed the CEO role. Then, in September 2018, Schiro resumed as CEO.

When Schiro was away from the CEO job for two and a half years, he continued to talk to his mentors in the industry, former Co-CEO of Primerica John Addison and ACN Chairman & Co-Founder Robert Stevanovski. With each visit with them, he realized he’s fallen more in love with the industry. Micro-entrepreneurship, in his opinion, is one of the purest things America has to offer. “I am just so proud I was able to get a chance to come back and really show our Associates how much I love this industry,” Schiro says.

Now that Schiro is back in the role of CEO, one thing he wants to do differently this time is to make sure that the Associates know they’re at the forefront. “I’m going to make sure that they are heard and encouraged, and we are going to celebrate their wins. Hence, recognition, recognition, recognition. They’re going to know my passion about this industry.”

To lead the charge for a new and enhanced recognition program at Stream, Schiro recently put Chelsey Berend, Director of Events, in charge of recognition and says they will be a success under her leadership.

Schiro says one of the things he believes the company does well is culture. “We have four mantras that we live by—and this is credited to our founder, Rob Snyder,” Schiro explains. “The best idea wins. Take out the panic. Work the problem. Be transparent.”

Tooling with Technology

Stream is also focusing on improving its technology to support its Independent Associates and customers. “Technology is moving at lightning speed now, and we need to keep up,” Schiro says. “My commitment to our team is that we will keep up with technology. We’re committed to a continued focus on that in the future.”

“We have less than 5 percent of the Texas market, and we want to grow that. That’s our number one initiative: to take over Texas by growing our share of the market.”
—Mark “Bouncer” Schiro

Specifically, Schiro is very excited about Stream’s new Interactive Voice Response or IVR system, which answers the phone and directs calls to where they need to go. Instead of having eight numbers to call into, whether it’s wireless, protective services, or different territories like Texas, Georgia, or the Northeast, customers and Associates will only have to call one number with an IVR that is state-of-the-art. The system only provides prompts relevant to the account associated with the number they dial from, touts a voice recognition feature, and offers call-back options for those who prefer not to wait on hold.

Technology wise, Stream also overhauled their Associate back office support system they call Power Center. The new Power Center launch represents a complete overhaul, offering features and enhancements that put their entire business at their fingertips. They also changed their billing system platform for wireless to make it a lot more user-friendly and capable of bundling product offerings.

Powerful Plans

Since its launch as a startup in 2005, Stream quickly grew to about $300 million in revenue over the first 20 months, Schiro says. “I’m proud to say we have averaged approximately $800 million in annual revenue over the last three to five years,” he adds. “We need to find a way to grow our revenue, and that’s what we’ve been looking at.”

How does Stream plan to do just that? Schiro reveals some of Stream’s future plans and growth strategy. “We have less than 5 percent of the Texas market, so we have a lot of work to do in our own backyard” Schiro says. “Our number one initiative–to grow our share of the Texas market, which is very competitive, and it’s something we need to be laser-focused on.” We have less than 5 percent of the Texas market, and we want to grow that. That’s our number one initiative: to take over Texas by growing our share of the market.

“Number one, we are about relationships— relationships with our Associates.”
—Mark “Bouncer” Schiro

Another growth initiative of Stream’s is to focus on growing its Hispanic market, which has been one of their fastest growing demographics over the last three years. This growth isn’t lost on Schiro. “We’re going to make sure they are recognized for their achievements. Most importantly, we’re going back to the basics and that begins with listening to our Associates. We’re going to find out what they need. Because they know what they need to succeed.”

In May 2017, Stream moved its headquarters from Downtown Dallas to Addison, Texas, which is just north of Dallas and part of the humming Dallas-Fort Worth metro area. Although its sparkling new office space is new, the company’s values remain the same.

“Number one, we are about relationships—relationships with our Associates,” Schiro says. “When they come into the office I want them to feel like they are family. And I want our staff to feel that way, too.” Number two, says Schiro, is that everyone in this office needs to know that their job counts, and that they are affecting people’s lives. “The reason I came back is very simple,” Schiro says. “I want to be a part of something bigger than me. And I want everyone in this office to know that they are a part of something bigger than them. Our cause is to change people’s lives.”

Stream Cares

Stream’s philanthropic arm is the Stream Cares Foundation whose primary mission is to help those affected by homelessness. Homelessness is a nationwide issue that Stream Cares is dedicated to ending, in all its forms.

“Stream created Stream Cares and the Stream Cares Foundation to help children that were impacted by the homeless locally and nationally,” says Mark “Bouncer” Schiro, Stream CEO. “That’s been our big push. We’ve been very children-focused in our philanthropy.”

Stream Cares has partnered with many organizations on local and national levels to further their mission. Stream Cares recently partnered with Captain Hope’s Kids to develop Splash for Hope events at Hawaiian Falls Water Park, creating fun and exciting summer outings for homeless children in the Dallas-Fort Worth area to enjoy being kids.

November 2018 Cover

Pick up your print copy of the November 2018 issue in which this article appeared.

Stream partners with Splash of Hope, which helps homeless children get to enjoy a carefree day playing at a local water park.

In May 2017, Stream Cares donated $15,000 to the American Red Cross Disaster Relief Fund for the tornadoes that hit East Texas, which left many homeless.

“After Hurricane Harvey, our Associates put a crowdfunding campaign together, and we agreed to match donations because we thought it was great they provided that. Together, we raised $30,000,” Schiro says. “They took it upon themselves and that’s what I’m proud of.”

Digital Doesn’t Have To Be Impersonal

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Forget the industries, forget the products, what makes direct selling powerful is relationships.

The first being the relationship direct selling companies nurture with their representatives, one that enables entrepreneurship and provides the tools for them to succeed.

And the second; the one-on-one relationships that direct sellers maintain with their customers.

Personalization is at the very heart of direct selling. However, buying behavior is evolving, and that evolution is digital.

The Global B2C e-commerce turnover was $1.84 trillion last year, and two in five Americans learn about new brands and products from social media sites.

What this tells us is that it’s more important than ever that direct selling businesses not only establish a solid online presence but start to think long-term about how to leverage online and social channels in a creative way to boost awareness and provide digital tools for their direct sellers.

In some ways, this might seem at odds with the personal nature of direct selling, but a closer look at the numbers tells us that 70 percent of online shoppers are still more likely to buy a product recommended to them by peers, family or someone they trust.

Why? Because personal relationships still matter in digital spaces.

If that isn’t enough, consider this; digital natives like Millennials and Gen Z’s account for 38.3 percent of direct sellers. That’s more than Generation X’ers who make up 34 percent of direct sellers and Baby Boomers who make up 24.4 percent. And most of those Millennials, about 67 percent of them, prefer to shop online than in stores.

So, while refining online marketing efforts is more important than ever, how does that personal touch translate into digital spaces?

How Direct Selling Companies Can Be Personal In Digital Spaces

The marketing challenges that face direct selling companies are unique in that most brands are working to personalize an otherwise impersonal product.

Direct selling companies have the reverse issue. Since most direct sellers are evangelists for their brand already, having either used or sold the product for a long time, the trick for direct selling companies is scale. Bringing this innate personalization to a bigger audience. Both to more direct sellers, then in turn, making it easier for those direct sellers to appeal to customers.

And the key to making that happen is leveraging your website for data collection. When personalizing a site or shopping experience, there are several customer data points worth using to deliver contextually relevant content and products.

“2 in 5 Americans learn about new brands and products from social media sites.”

An obvious one is the Shopping Cart, of course. Recommending products to your shoppers based on what the customer has in their shopping cart.

Purchase History, which involves recommending or making customers aware of certain products based on their past purchases. Taken a step further, you could also use this data to build segments and then use purchase histories of customers with similar demographics to recommend other products.

By tapping into customers’ Search Queries, you can furthermore recommend products based on their search terms or use geo-location data to recommend products based on where your customer is shopping from. After all, the skincare regimen of someone living in the cooler climate of Nebraska will certainly differ from that of a person living in sun-blistered and humid Florida.

And by leveraging all these data points, the digital shopping experience that you deliver to your customers isn’t impersonal at all. It’s the opposite, because it’s tailored to that person’s preferences and needs.

Empowering Direct Sellers With Social Networking Tools

By now your website, online store and online catalog should already be accessible and responsive on mobile devices.

Given that 77 percent of Americans use smartphones and that shoppers who buy on smartphones spend on average twice as much as those who shop on other devices, it’s obvious that mobile commerce deserves your time.

Especially since only 12 percent of consumers find shopping on the mobile web convenient, meaning there’s much room to improve and capture sales.

By integrating your online catalogs with WhatsApp or Facebook Messenger, you both successfully track customer buying journeys and offer your direct sellers more touch points with their buyers.

Here’s how that might look. The customer and direct seller connect on WhatsApp or Facebook Messenger. Then, the customer browses through the online catalog on your site on their phones, adding to cart as they go. When they finish shopping, they click, connect to WhatsApp, select their representative and the shopping list is sent automatically.

This will instantly improve the experience your buyer has, because they can shop in their own time, wherever they’d like and still maintain a personal relationship with their direct sellers. It still feels like they’re being taken care of and have that connection to their representatives.

Get Personal With Your Content Strategy

Personalized content directly influences sales. One study suggested that companies that actively worked to customize their marketing content saw an average sales increase of 19 percent. That’s high, even a fraction of that is a success.

But of course, it requires some work, because it means offering customers more than a simple email telling them that a sale is on.

It means sending out personalized offers and contextually relevant blogs, videos or other content that might be of value to them.

You could even go so far as to trigger emails when certain products are purchased in tandem. For example, say a customer has selected a combination of melatonin tablets and vitamin D. An email with a link to a blog with tips and tricks to improving the quality of your sleep is a great way to provide aftercare at the end of a purchase. Fostering trust in your brand and increasing the likelihood of a repeat customer.

Much like the personalized website experience, you can target content based on location too or relevant search queries, so long as it relates to the specific customer and shows your company cares and pays attention. Something that, in principle, comes naturally to most direct selling companies and their sellers already.

When you get this right, it can incentivize customers and increase their purchases. That’s to say, provide a good enough experience, and they’ll keep coming back.

November 2018 Cover

Pick up your print copy of the November 2018 issue in which this article appeared.

Sometimes Getting Personal Starts With Data

The cornerstone of personalizing any step in your customers’ journey—from discovery to purchase and to repeat purchase—is data collection.

When you think about it, it’s something direct selling companies and representatives are doing every day. They have a clear image of who their customers are, whether it’s general age, income, the type of person they are, what their pains are and how the products they offer might help solve those problems.

It’s just that, with the right infrastructure in place, by going digital the data collection is done for you.

Whether it’s figuring out who’s on your site, and how often, to seeing how many people read, interact or ordered from your catalogs, which direct sellers are most active, going digital offers more data points and gives you a clearer picture of how to build your success.

It seems like an investment of time and resources in the start because it is, but in the long term, the payoffs are undeniable.

Nanna Arnadottir

Nanna Arnadottir

Nanna Árnadóttir is a Content Marketer at iPaper, a Danish SaaS company that focuses on helping businesses turn static PDF catalogs into inspirational online sales channels and shoppable content.

Have You Found Your Voice?

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The challenge of our world is this: To find your voice and inspire others to find theirs.

He was an entrepreneur, organizational guru. You name it. The late Stephen R. Covey had seen and done it all when it came to helping people from all walks of life realize the greatness that lies within them. His first book, The 7 Habits of Highly Effective People, which has sold over 15 million copies worldwide, was chosen as the most influential business book of the 20th Century by Forbes magazine. In 1996, Time magazine named Covey one of the 25 most influential Americans. Tens of millions of people in business, government, schools and families have greatly benefited by applying the principles of Covey’s classic book. Even though the world is a vastly different place than when Covey wrote his groundbreaking book in 1989, the principles in the book still ring true today.

In 2005 I was able to interview him about his then new book The 8th Habit: From Effectiveness to Greatness, his ties to the direct selling industry and how everyone, regardless of business background, can find their true voice while inspiring others to find theirs. Here is the full interview from the archives:

Was there a particular spark that ignited your decision to write The 8th Habit?

SC: Well, I think the key thing that caused me to get into this material was an awareness that came about five or six years ago of how the shift from the industrial age to the knowledge worker economy has become so profound. The world has changed drastically since The 7 Habits of Highly Effective People was published in 1989. Being effective as individuals and organizations is no longer enough in today’s world. In this new “Knowledge Worker Age,” people will be required to build on and reach beyond effectiveness. The call for this new age is for greatness and a longing to gain fulfillment, experience passion and to contribute to society. Getting access to these higher levels of human genius and motivation requires a new mindset, a new skill set, a new tool set; essentially an entirely new habit. The 8th Habit is about finding your voice while inspiring others to find theirs.

You spent years of research in preparation for The 8th Habit. Can you tell us a little about the fact-gathering process that led you to your findings?

SC: For instance, I found that throughout most of the 20th century, only 20 to 30 percent of the value-added goods and services came from knowledge work. Today, it’s 70 to 80 percent. This points to the absolute necessity to get out of the industrial age practices, which suppress the release of human potential, and into the “Knowledge Worker Age” that unleashes and realizes the greatness of human potential. We also gathered all kinds of data on how alienated most people are in their job environments and how much compartmentalization and lack of trust there is, how disempowered and frustrated people are.

From what we’ve learned, your findings are being confirmed by many that attend your speaking engagements. Tell us a little about the feedback you’ve received so far.

SC: I ask two questions of the audience right up front that really hit them hard. The first one is, “How many of you have achieved your level of success, whatever it may be, partly or largely because someone believed in you when you didn’t believe in yourself?” You’ll find that immediately about 60 to 70 percent of the hands in the room will go up. And if you listen to their stories, they become very tearful and emotional and so authentic and real that others around them also become quite emotional. You come to realize that we need to affirm people’s worth and potential so clearly that they come to see it in themselves.

The second question I ask points out the disempowerment that is out there. I ask them, “How many agree that the vast majority of the workforce possesses a lot more talent and capacity and passion and intelligence and creativity then their present jobs require or even allow them to use?” Nearly every hand goes up. It just goes to prove that the industrial age model is really sick and even though it’s still the dominant model, it’s becoming increasingly obsolete. It suppresses the human spirit so terribly.

Does The 8th Habit make the other 7 Habits irrelevant?

SC: I get this question a lot and the answer is no. The 7 Habits are more essential than ever. The greater the change and more difficult the challenges, the more relevant they become. The 7 Habits are about becoming highly effective. They represent a complete framework of timeless principles. The 8th Habit is not about adding one more habit to the other 7, it’s about seeing and harnessing the power of a third dimension to the 7 Habits that meets the central challenge of the new Knowledge Worker Age. The 7 Habits are the foundation and are based on general truths like taking responsibility, being proactive, beginning with the end in mind, thinking win-win and using the golden rule. These are all foundations of general truths that are accepted throughout society. But to find your voice, coupled with your unique calling to inspire others to find their voice is a very a personal truth.

In your opinion, how does this yearning for people to find one’s voice tie in with direct selling?

SC: In my mind, the direct selling industry finds a huge market in people who are frustrated with their current situation. These are people who are disenchanted and who are broken in spirit that are looking for some kind of entrepreneurial opportunity where they can really use their talent and their passion towards a greater good. Direct selling helps affirm these people’s worth and potential and can open up a whole new alternative income stream that can make a huge difference in their life. I’ve worked with many in the direct selling industry, and I’m pretty familiar with the kinds of realities facing the industry. These are the people that are trying to find their voice.

What advice would you give someone who was looking at starting a direct selling business? What are some of the things they can look for in a company that will help them find their voice?

SC: For those people who are excited about the direct selling concept, they need to choose a company they can get passionate about, making sure they find a particular product or service that really meets a human need, and most importantly, gets them excited. Having a great compensation plan and the financial benefits of the opportunity are equally important, but there needs to be a balance. I think to find a person’s voice means that you are serving in a very motivating and meaningful way the human need as well as serving your own need for financial independence.

What can happen to someone who is solely focused on the money aspect of the business and is neglectful of the benefits a product/service can have for people who need it?

Stephen Covey

Stephen R. Covey

SC: Financial success is a secondary success. Primary success is about character and contribution. I have worked with many successful people who have made a lot of money in the direct selling industry, and I’ve found that a singular focus on financial rewards can gradually change a person. It changes their motivation, and it can change the quality of their integrity as well as their family life. Even number one objective, you will not be able to affirm other people’s worth and potential to help them find their voice.

I think this could be a very unique exercise for your readers to learn more about the nature of the product and services they sell and he needs they serve. There is a hunger out there to represent a service that really is a peacemaking or healing service instead of just making people richer.

Could you explain more about the four dimensions that make up the Whole-Person Paradigm?

SC: At the core, there is one simple, overarching reason why so many people remain unsatisfied in their work. The fundamental reality is human beings are not things needing to be motivated and controlled; they are four-dimensional–body, mind, heart and spirit. The body basically deals with the physical and economic side. This is where you deal with your physical well being, your physical intelligence as well as your economic well being and success. It’s that financial independence that gives you the flexibility to do a lot of things with your family, giving service and so forth. The mind has to do with the development of one’s talents. The heart deals with your natural inclination and passions. And finally, the spirit has to do with the meaningfulness of the product or service you provide and how it meets a human need. Lastly, it deals with living with total integrity and a peace of conscience, void of offense toward God and man.

Peace of conscience is so much greater than peace of mind, where you’re not worried about finances and other worries. Peace of conscience gives you a sense of calling. I really do believe that when we are born, our work is born with us and we have to find out what that is. And for many, direct selling is the work that they were called to do. You can hear it when they get on stage and tell their story. They have found their voice and are doing exactly what they were born to do.

How is your concept of finding your voice much like “finding your ‘Why'” -a common phrase used within direct selling companies that helps business owners remember “why” they started their business in the first place?

SC: I really like the concept of finding your ”Why” because it is so similar to finding your voice. No matter what term you use, it’s important to learn that everyone is unique in their own way. You cannot try to mold someone in your image. They must find their own style, their own way of doing the business. For example, Sue might only want to make a couple hundred dollars a month to help with the car payment. John might want to work a little harder to earn enough to pay his oldest son’s college tuition. Everyone has their own motives and dreams for what they want their business to provide them. Everyone needs to find their own calling in life, finding your ”Why” is just like finding your voice.

For those who have read my first book, The 7 Habits of Highly Effective People, this goes to the heart of habit number five. It teaches that you need to get inside the head and heart of other people by not trying to project your motives on their behavior so that you really do tailor and individualize your approach.

Is it true you found your “Why” just after graduating from business school, much to the chagrin of your father? Please tell us about it.

SC: That is true! I was part of a family that had a very successful business. And I was the heir apparent to our family business which owned several hotels, motels and lots of land. But something happened. I found my ”Why” somewhere else. A gentleman I knew got me into teaching, mainly training leaders, and I loved it dearly. I had just finished Harvard Business School when I realized I wanted to make teaching a career. Then came the hard part: breaking the news to my father. Initially, he was disappointed, but later on in life, he told me that he never found his true voice in business. His passion all along was in architecture, history, philosophy and sociology. This personal story, along with many others-is the impetus behind why I wrote The 8th Habit.

How did you get the courage to tell your father about your desire to teach?

SC: I think practicing The 8th Habit in my own life is what enabled me to make that decision to become a teacher. Sure, I was afraid of what my father was going to say. But I had to be true to myself, I had to find my voice, my ”Why.” And today I feel that I have truly found my voice and it causes me to say to other people, ”You, too, have a unique calling. Have you found it?”

Most of your books talk about business and the experiences you’ve drawn from researching and studying companies throughout the world. Can everyone benefit from reading The 8th Habit, regardless of business background?

SC: Absolutely. Even if you’re not in business, The 8th Habit applies to anyone searching to find their calling–their voice. Although most of the stories I use in my books are business stories, the principles are universal. The 8th Habit, namely “finding your voice,” is right down the line of what the direct selling industry is all about. And if each individual business owner would see their role of leadership as being one of moral authority, where they help other people and inspire others to find their voice, I think they would not only keep their own integrity on track, but they would develop such a reputation for trustworthiness that it would be like a magnet in drawing other people to them.

Happiness and success is a byproduct of service. So it’s not about what’s in it for you. My good friend, Jim Collins, in his book, From Good to Great, found that the most important ingredient that brought their organizations from good to great was humility. They were servant leaders. Something to think about.

How can people who are starting a business for the first time tum their fear into confidence and assurance?

SC: The key to overcoming fear is not the absence of fear, it’s just the awareness of having something more important than fear. If you have this sense of calling, the fear will subside eventually. You may have it, but you are subordinating the fear to that which is more important. But those who try to overcome fear by not having a more meaningful ”Why” are messing with the symptoms and not getting to the source of the problem.

I remember when having a little fear myself while growing up, my father would always say, “If you can do it, you do it. If you can’t do it, you teach.”

The Soul’s Yearning for Greatness

The purpose of The 8th Habit is to give you a roadmap that will lead you from such pain and frustration to true fulfillment, relevance, significance and contribution in today’s new landscape—not only in your work and your organization but also in your whole life. In short, it will lead you to find your voice.

Voice = Talent

(your natural gifts and strengths)

Passion

(those things that naturally energize, excite, motivate and inspire you)

Need

(what the world needs to pay you for)

Conscience

(that still, small voice within that assures you of what is right and that prompts you to actually do it)

When you engage in work that taps your talent and fuels your passion—that rises out of a great need in the world that you fee drawn by conscience to meet—therein lies your voice, your calling, your soul’s code. There is a deep, innate, almost inexpressible yearning within each of us to find our voice in life.

Do I have what it takes?

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Everyone at some point in their career has silently asked this about themselves when accepting an advancement up the corporate ladder.

Struggling with insecurity on the inside, even while appearing confident on the outside, is a common battle for individuals who hold the highest authority in their organizations. For our cover story this month writer Courtney Roush takes a look at how a few direct selling executives view leadership and deal with the fear that comes along with it.

Next, our special feature this month tackles the hard truth of the rise in class action lawsuits our channel is facing. It’s no secret there are individuals and organizations, fueled by varied motivations, who are ready to amplify our channel’s missteps at any opportunity. Compliance isn’t just the responsibility of your legal department; it’s everyone’s job. We can’t afford to be complacent because class-action suits affect not only the reputation and bottom line of the defendant; they affect our industry at large.

This month we are excited to bring you two company spotlights, the first is Stream, who welcomes back Mark “Bouncer” Schiro as their CEO. The company provides electricity and natural gas services in nine states but is also expanding its footprint nationally by providing wireless services. Schiro says, “Number one, we are about relationships. I want everyone in this office to know that they are a part of something bigger than themselves.”

November 2018 Cover

Pick up your print copy of the November 2018 issue in which this article appeared.

Next is SEACRET Direct, whose line of products boasts the power of the Dead Sea and its therapeutic salt and mud, which contain 26 essential minerals—12 of those minerals existing in the Dead Sea exclusively. Since moving from kiosks to direct selling in 2011, the company has more than doubled to over $200 million so far in 2018.

Save the Date­—10th Anniversary of DSN Global 100

Each year we create an esteemed list of the top-revenue generating direct selling companies in the world including awards and recognition for various achievements. In 2019 we are honored to celebrate the tenth anniversary of the Direct Selling News Global 100. I am excited to announce and invite you to the reveal on April 24, 2019 in Dallas, Texas. Register today at directsellingnews.com/global-100.

All the best,

Todd

Joining to Share Our Strengths

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Direct selling is strongest when we come together as a family and share our experience, insights and strengths.

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. We delight in finding the exciting new approaches that companies use to grow their bottom lines, as well as bring new success to their direct selling independent contractors who are America’s original entrepreneurs.

Sharing these insights at the DSA Fall Conference 2018 is how we will raise all ships across direct selling’s fullest spectrum—this is an event that you cannot afford to miss.

Hundreds of sales trainers, tech gurus, legal eagles and marketing professionals will explore the programs and strategies that today’s direct selling leaders use to defy the market’s disruptive forces and compete in new ways. Workshops will delve into the strategies that enable companies to compete even more aggressively in the evolving gig-economy. Participants will learn from one another’s successes in order to fine-tune their 2019 outlooks.

General Session keynotes will explore the megatrends shaping the future of business and consumer behavior, as well as the lessons learned from FORTUNE 500 companies that have used disruptive innovation to adapt. In addition to launching the new Social Selling Council (SSC) that will shape the vision for how we use social media to market, we will explore technology’s newest potential to generate social selling insights, and how it can help us better understand today’s consumers’ demands and needs.

So many companies have found success as they’ve opened new markets, and the one-day, pre-conference Doing Business in Canada Seminar will show how our northern neighbor—with its stable economy, strong consumer sentiment, predominantly English-speaking population and close proximity to the U.S.—could be your first step towards a global future.

November 2018 Cover

Pick up your print copy of the November 2018 issue in which this article appeared.

DSA Direct Selling Boot Camp is another one-day, pre-conference seminar where you can focus on your business, onboard new executives and learn best practices from leading direct selling executives who do what you do every day. This is where you get “back-to-basics” insights and peer-imparted wisdom.

While the new Direct Selling Self-Regulation Council (DS-SRC) will do so much to protect consumers and make direct selling more competitive than before, it also provides a new business context that has implications for every company that uses the direct selling channel as a go to market strategy. DSA Fall Conference 2018 will explore what this game-changing new normal means for companies and the industry, and its implications for protecting the independent contractors who are our businesses’ lifeblood.

At this moment, one thing cannot be clearer: in spite of today’s market disruption, DSA member companies are revolutionizing their thinking to compete in ways that disrupt the disruptors, capture market share and thrive in a redefined competitive landscape.

The DSA Fall Conference 2018 is the most important event of the year. Come build new friendships and strengthen long-standing relationships that can transform your business. Interact with other direct selling executives, representatives from government agencies, noted academics and researchers.

This is a cannot miss event—see you in Arlington!

Melissa Brunton

Melissa Brunton, Senior Vice President, Education & Meeting Services, DSA.

What Does Entrepreneur’s Choice of Halloween Costume Reveal?

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Today, approximately 180 million people in the US will celebrate Halloween, including millions of entrepreneurs.

The National Retail Federation and other sources report that of those 180 million people, approximately 2.5 million adults will dress as vampires, 4 percent will dress as Donald Trump and 7.2 million as witches. With adults so engaged in Halloween, Einstein Marketing Group (EMG) looked at the correlation between the Halloween costume and the entrepreneur’s personality.

Witches

Witches are often depicted as casting spells, controlling situations, and having the ability to change their image to others at a moment’s notice.

Bottom line: If black robes and hats, pointy shoes and warts make up your costume, start thinking about the amount of energy you use to hide how much you like to take control in your business or in other people’s lives. Delegating tasks, or working on teams or with partners, may be issues for you. Conversely, this costume choice may reveal you want more control over certain aspects of your business, but may be afraid, or may not know how to command it.

Pirates

Pirates are very masculine, strong, powerful and may not have a problem with corruption.

Bottom line: If ripped pants, puffy shirts and eye patches make up your costume of choice, ask yourself why you have a difficult time enjoying your accomplishments—even though they often surpass everyone else’s! Is it because you truly want to rule the world or is it that you simply feel superior to everyone around you? Conversely, this costume choice may reveal the lack of power you feel you have over your business or even others around you.

Vampires

Vampires are evil, scary and downright creepy.

Bottom line: If being a blood-sucking bandit is your costume of choice, this may be your way of giving yourself permission to get in touch with your dark side. Or are you becoming more aware of your own mortality? Conversely, this costume choice may reveal you want to separate yourself from others—perhaps business associates or even clients/customers—but are unsure of how to set those boundaries.

Princesses & Fairies

Princesses and fairies are whimsical, dreamy and a bit too optimistic.

Bottom line: Entrepreneurs beware as these costume choices scream the following personality traits: a wish for safety and simplicity—also known as your business may be running you instead of you running it. You have reality issues or are in deep denial. You lack financial resources.

According to Julie Mullarkey, founder of EMG, personality traits provide an insight as to how an entrepreneur achieves goals, makes decisions, communicates with employees and chooses clients or customers.

“I ask my clients to tap into their dreams and imagine what life would be like if money and time were no object,” said Mullarkey. “This exercise often helps reveal what is either holding them back from achieving new levels of success; or may help reveal what is missing in their business model or individual skill set.

Herbalife Q3 Net Sales Up 15%

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Herbalife Nutrition Ltd. (NYSE: HLF) recently reported Q3 2018 net sales of $1.2 billion, an increase of 15 percent compared to Q3 2017.

All regional net sales increased during the quarter, with the exception of South and Central America, Regionally, net sales were:

  • Asia Pacific net sales were $274.3 million, an increase of 18.8 percent
  • North America net sales were $240.0 million, an increase of 20.1 percent
  • EMEA net sales were $235.9 million, an increase of 10.3 percent
  • Mexico net sales were $121.2 million, an increase of 6.0 percent
  • China net sales were $266.5 million, an increase of 27.0 percent
  • South & Central America net sales were $104.9 million, a decrease of 10.1 percent
  • Worldwide Total $ 1,242.8 million, an increase of 14.5 percent

“Our strong sales and earnings performance during the third quarter demonstrate the global consumer demand for our nutrition products,” said Rich Goudis, CEO of Herbalife Nutrition.

To read the full Herbalife Q3 2018 financial report, click here.

James Thompson Named New Avon Chief Beauty & Brand Officer

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Avon Products, Inc. recently announced the appointment of as chief beauty and brand officer, effective November 1, 2018.

James Thompson

James Thompson

Thompson joins Avon following a 24-year career at Diageo PLC, most recently serving as chief marketing and innovation officer for Diageo North America. At Avon, he will focus on leveraging the strength of Avon’s beauty marketing and innovation to create more agile category teams that will be structured to work much more closely with Avon’s markets. He will also spearhead the rejuvenation of Avon’s brand. He will report to COO Jonathan Myers.

“Chief Beauty & Brand Officer is a strategically vital role at Avon, and we couldn’t be more pleased to have an executive of James’ caliber join us,” said Myers. “He has a well-established track record of turning around large and small brands throughout the world at both luxury and mainstream price points. We are confident that James’ breadth of experience, in-depth digital capabilities and new product marketing and innovation expertise will further deepen Avon’s connection with its consumers and representatives.”

With Thompson’s appointment, Alex Long, Avon’s current global vice president, Global Brand Marketing, will transition to global vice president, Global Commercial Marketing to drive marketing execution, brochure excellence and revenue growth management across the organization.

CBD: Elixir for an Anxious Population?

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Talk of cannabidiol (CBD) seems to be everywhere nowadays, including in direct selling circles.

It is being touted as a magical elixir in mainstream media. In January, actress Mandy Moore said she was experimenting with CBD oil to relieve the pain from wearing high heels. In July, music legend Willie Nelson introduced a line of CBD-infused coffee beans called Willie’s Remedy. And earlier this month, Dr. Sanjay Gupta gave a qualified endorsement of CBD on “The Dr. Oz Show.”

“I think there is a legitimate medicine here,” Gupta said. “We’re talking about something that could really help people.”

But it may be that CBD is just a fix for these anxious times. According to a recent The New York Times article, the defining sociological condition today, especially among millennials, is anxiety:

  • anxiety about our political dysfunction
  • anxiety about terrorism
  • anxiety about climate change
  • anxiety about student loan debt
  • anxiety about artificial intelligence taking away all the good jobs

Read more here.

Natural Health Trends Q3 Revenue Up 17%

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Natural Health Trends Corp. (NASDAQ: NHTC) today announced its financial results for the third quarter ended September 30, 2018.

Total revenue of $47.0 million increased 17 percent compared to $40.1 million in the third quarter of 2017, and decreased 8 percent compared to $50.9 million in the second quarter of 2018.

Revenue from the company’s Hong Kong operations, which represented 88 percent of total revenue, was $41.4 million, an increase of 18 percent compared to $35.0 million in the third quarter of 2017. Revenue outside of Hong Kong of $5.6 million increased 10 percent compared to $5.1 million in the third quarter of 2017.

For the year, total revenue of $150.3 million decreased 1 percent compared to $151.5 million in the first nine months of 2017.

“Despite a generally difficult trading environment, our performance in the third quarter was driven by the momentum we created since the beginning of the year,” said Chris Sharng, president of Natural Health Trends. “So far in 2018, both a rapidly depreciating Chinese yuan, down 10 percent since February, and the seasonality associated with the summer months, contributed to an 8 percent decline in our revenue from the second quarter to the third quarter this year. Without the adverse effect of the yuan devaluation, our third quarter revenue would have been flat with the second quarter. While we have no control over these conditions, I believe we have been doing a good job navigating in an increasingly difficult and unpredictable setting.”

To view the full Natural Health Trends Q3 2018 report, click here.

Avon Introduces Personalized Beauty App

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The digital tool, built in partnership with Techkon, will deliver diagnostics regardless of ethnicity, skin tone and type using a phone camera and a unique calibration card exclusively available to Avon Representatives.

Avon Products, Inc. conducted research into how mathematical-based color theory could be used to predict an individual’s make-up shade and skin-care needs and worked with Techkon to develop the technology. The app poses questions designed to identify those needs and uses the calibration card to precisely measure skin tone. The information is processed through a unique algorithm that generates personalized product recommendations.

“We’re passionate about making high-quality, high-tech innovation accessible to all of our Beauty Entrepreneurs and their customers,” said Louise Scott, Avon’s chief scientific officer. “Digital tools like this help make the personalized, trusted service of our Representatives even more meaningful. At Avon, we are putting an end to the one-size fits all approach and recognizing that women don’t just want the latest product, they want real beauty insight tailored to their individual needs—not just for foundation, but for their whole beauty color regime. Early results indicate that this technology provides a benefit that really resonates. We’re providing a solution that women want.”

This program is the latest milestone in the transformation of Avon’s digital strategy, fueling the business’ growth through enhanced interactions with Representatives and customers.

Build Trust Through Online Responsiveness

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The goal of a direct selling company’s online marketing strategy is building trust through personal relationships with customers.

The direct selling channel is based on the one-to-one interactions between independent consultants and customers. But what about the relationship between the company and the customer? What happens when negative comments appear online about a company’s products or services? And more importantly, what do you do about them to keep building consumer trust?

Customer Service

In the online world, comments and reviews are closely monitored. Millennials, the largest purchasing group, place more weight on word of mouth recommendations, and more than one-third of them prefer to wait until someone they trust has tried a new brand.

Many companies have implemented online chats so that customers can have questions answered in real time and any customer service issues can be resolved immediately. But it’s not just having that capability; it is how you use it to connect with customers. Here’s an example.

Two years ago, LinkedIn shared a hilarious chat between an Amazon customer support rep and a customer who had not received a book. (If you have not read it, click here.) While Thor and Odin (think movie Thor) roleplay was involved, the outcome went well beyond fun and a happy customer—it was the trust built between the brand and that customer as well as the instant sharing of the experience with the online community.

Does this mean you should train your reps in pop culture—Daenerys Targaryen and Jon Snow (Game of Thrones) speak or Dumbledore and Severus Snape (Harry Potter) talk? No, but making interactions more fun goes a long way in creating a lasting relationship and in helping to diffuse potentially explosive situations. Customers just want you to listen to them and help with issues.

Online Comments

Customers also want you to respond, more so than companies typically do. Uberall, Inc. recently released the results of its “Customer Review Report.” While the report focused on how shoppers evaluate brick-and-mortar store reviews online, the responses can be applied to direct selling, where storefronts are the faces of consultants.

Here are the results that might cause you to pause and reconsider your strategy for responding to online comments posted to your website or social media platforms:

Response frequency

65% of respondents believe brands should respond to every comment, whether the review is positive or negative. In addition, 18% believe they should respond only when the review is negative, while 10% feel they should never respond and 6% think they should only respond when the review is positive.

Takeaway: Have a proactive voice in conversations. Shoppers aren’t just looking for positive online reviews, they’re actually evaluating the quality of the customer experience based on online responsiveness.

Personal responses

More than 3 out of 4 respondents think responses should be personal. When asked how personalized a response should be to a customer review, 78% said that there should be some personalization. Forty-nine percent said responses should be “somewhat personalized,” while 29% said “very personalized.” Just 13% said “not very personalized” and 9% said “not personalized.”

Takeaway: Individualization is required to show that the brand cares about the customer. This is why platforms like Google and Yelp insist that businesses post personal responses versus generic, meaningless ones.

Responsiveness

More than 86% are likely to shop at a store that responds to reviews. Of that group, 47% said “somewhat more likely,” while 39% said “more likely.” Only 8% said “somewhat less likely” while 6% said “not likely.”

Takeaway: Consumers prefer businesses who care about them, and it shouldn’t be a surprise that personal responses to reviews show just that to consumers who research a business. Responding to reviews is great for brand perception, which leads to more new customers and repeat business from existing ones.

Importance of reviews

Nearly 75% think online reviews are important. When asked about the importance of online customer reviews for a store, 74% cited them as either “moderately important” (40%) or “very important” (34%). Just 20% said “slightly important” and 6% said they were “not important.”

Takeaway: Customer reviews are important, period. Three-quarters of those surveyed said they were either very or fairly influential. With so many options out there, stores live or die based on their ratings.

You don’t have to bring pop culture into your interactions with customers but be aware that making customer experiences fun and responding on a regular basis with personalization will help build trust and, ultimately, bring new customers.