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5 Best Practices for Making It Work in the Global Market

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  1. Find the local direct selling association. “The national DSA will have detailed knowledge of how the market works and can inform companies which legal regulations apply,” says Katarina Molin, executive director at Seldia, the European Direct Selling Association.
  2. Hire native speakers. Someone who knows the language from the inside will help you avoid faux pas, says 4Life Co-Founder Bianca Lisonbee, recalling that a pronunciation of an abbreviation the company once put on an international label was unintentionally off color. Molin agrees: “It’s a worthwhile investment to have a local manager who speaks the local language and who understands the key do’s and don’ts about the specific business culture,” she says. And even if you’re expanding to a market where consumers and potential distributors speak your language, “the tone and style of messaging can be very different in different countries,” Molin adds. So don’t just copy and paste website content.
  3. Do your homework. Study other companies’ successes and failures and learn from experts on the ground in the country you’re targeting—before you start doing any business there. “The temptation is to go ahead without checking boxes of the regulatory agencies,” for example, says 4Life Co-Founder David Lisonbee. “Many companies have jumped the gun… and then that creates negativity about the industry.”
  4. Expect complications—sometimes serious ones—and roll with them. “It doesn’t seem to matter what market we’re adding,” says Youngevity CEO Steve Wallach. “There’s always something going on—whether it’s a natural disaster or geopolitical turmoil. That goes with the territory of international expansion.”Your company may even be able to become part of the solution. When Hurricane Maria devastated Puerto Rico in 2017, for example, 4Life leased a fleet of private planes and helicopters to transport relief supplies and more than 70,000 pounds of food to the country, where it had been in business since the early 2000s and already had distribution warehouses.
  5. Don’t mess it up. eBay is probably an exception to this rule, as it managed to find its footing in China after initially failing. Usually, you get one shot, direct selling executives say. “If you don’t do it right the first time, you probably won’t have another opportunity,” says Arbonne CEO Kay Zanotti, adding that it’s critical that top management is part of any global expansion. “I’ve learned the value of being personally involved and committed to our new market launches,” she says, “A firm commitment at the highest level not only sets an example, it’s essential to international success.”Also, be measured in your ambitions, adds Ambit Energy Co-Founder and CEO Jere Thompson. “So often, the inclination is to land grab,” he says. “But you go into too many markets at once and you don’t have the oversight that’s necessary, you suddenly no longer have dry powder to address challenges or your people get burnt out from doing too many things at once.” ‘recruit, recruit, recruit.’ ” However, those companies that place high priority on leading with product (retailing) and retention strategies are much better positioned to experience long-term sustainable growth.
Purchase the June 2018 Issue in which this article appeared.

Purchase the June 2018 issue in which this article appeared.

U.S. Direct Selling Experiences Slight Decline in Sales, Representatives in 2017

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According to the recently released “Growth and Outlook Report: U.S. Direct Selling in 2017” by the Direct Selling Association (DSA), 2017 saw slight decreases in sales and involvement in direct selling in the United States, the largest direct selling market in the world.

The DSA, the national trade association for companies that offer entrepreneurial opportunities to independent sellers to market and sell products and services, reported that retail sales in the U.S. in 2017 were $34.9 billion, down 1.8 percent from 2016, and that 18.6 million people were involved in direct selling, which represents a 9 percent decrease year over year. Participation in the channel varied from those who joined direct selling companies as discount customers to those who are pursuing a business on a part-time or full-time basis.

Retail Sales

Estimated retail sales for 2017 were $34.9 billion, down slightly from 2016’s $35.54 billion. This marks the second year in a row that sales have declined. Sales had climbed each year from 2011 to 2015, which had an all-time high of $36.12 billion in sales.

The top states with direct selling activity continued to be Texas, California, New York, Florida and Illinois, which, collectively, accounted for nearly 45 percent of all U.S. sales in 2016 with $16.1 billion.

Wellness products remained the most popular product category in the U.S. in 2017, accounting for 33.8 percent of sales, followed by Services (22.1%), Home & Family Care/Durables (16.8%), Beauty & Personal Care (16.5%), Clothing & Accessories (8.2%) and Leisure/Educational (2.6%).

Direct Selling Population

After a record 20.5 million Americans involved in direct selling in 2016, the DSA reported 18.6 million for 2017. Of those, 9.6 million were discount customers, 7.6 million part-time business builders and 1.4 million full-time business builders. These statistics do show growth in the number of Americans starting home-based businesses: In 2017, 1.4 million Americans had full-time businesses compared to 0.8 million in 2016, and 7.6 million Americans were involved in part-time businesses in 2017 compared to 4.5 million in 2016.

The direct selling channel, known for its flexible entrepreneurial opportunities for all ages, reflected that in the statistics that showed 36.9 percent of direct sellers in 2017 were Millennials; 34 percent, Gen Xers; and 26.4 percent, Baby Boomers.

By gender, 73.5 percent of direct sellers in the United States in 2017 were women and 26.5 percent men. After a 3 percent drop from 2014 to 2015, the percentage of men joining the channel has increased each of the last two years, with a 15 percent increase from 2015 to 2016 and another .5 percent increase from 2016 to 2017.

Ethnic and racial demographics for 2017 show that Americans involved in direct selling were 80 percent non-Hispanic and 20 percent Hispanic. Of the non-Hispanic direct sellers, 85 percent were White/Caucasian, 8 percent African American, 1 percent American Indian or Native Alaskan and 1 percent Native Hawaiian or Pacific Islander. These numbers closely reflect the fabric of America: the U.S. population is 82 percent non-Hispanic and 18 percent Hispanic. Of the non-Hispanic population, 77 percent is White/Caucasian, 13 percent African American, 6 percent Asian, 1 percent American Indian or Native Alaskan and 1 percent Native Hawaiian or Pacific Islander.

For more insights and statistic on the U.S. direct selling channel, visit www.dsa.org.

Direct Selling Association Announces 2018 DSA Award Winners, Top 20

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Photo: DSA President and CEO, Joseph N. Mariano with 2018 Hall of Fame honoree Jeffrey Reigle, President and Chief Executive Officer, Regal Ware Inc.

The U.S. Direct Selling Association (DSA), the national trade association for companies that offer entrepreneurial opportunities to independent sellers to market and sell products and services, announced the winners of the prestigious 2018 DSA Awards program during a gala event at the DSA Annual Meeting in San Diego.

DSA Hall of Fame

The DSA Hall of Fame celebrates the contribution of visionaries whose work has helped chart the course for direct selling’s future success. Jeffrey Reigle, president and chief executive officer of Regal Ware, Inc., is the 2018 DSA Hall of Fame honoree.

“The integrity, dedication and performance Jeff has demonstrated in running his company are the same attributes he has brought to his many years of leadership in the Direct Selling Association,” explained Joseph N. Mariano, president of DSA. “We are proud to welcome him into the ranks of direct selling’s most extraordinary leaders.”

DSA Awards

DSA Awards recognize the outstanding programs DSA member companies have implemented. The 2018 DSA Awards category winners are:

DSA Top 20

DSA also announced the 2018 Top 20 member companies, recognizing those with the top net sales in the United States for 2017:

“We applaud these companies both for the products and opportunities they offer millions of Americans and for the significant contributions they make to the economy,” said Mariano. 

DSEF Circle of Honor and Educator of the Year

The Direct Selling Education Foundation (DSEF) also announced the recipients of its two highest honors during the DSA gala. The DSEF Circle of Honor recognizes industry leaders, academics and consumer advocates who made extraordinary contributions to the Direct Selling Education Foundation through personal efforts.  Dave Wentz, outgoing DSEF chairman, is the 2018 inductee into the DSEF Circle of Honor.

“We are excited to add Dave to DSEF’s Circle of Honor to celebrate his long history of supporting and contributing to the work and success of the Foundation,” said Gary Huggins, DSEF executive director. “Dave has also been a driving force in developing and implementing a bold new vision for the Foundation to mainstream direct selling by partnering with academics to produce industry validating research and reach tens of thousands of students every year with educational content on the channel.”

The DSEF Educator of the Year award celebrates the significant contributions and achievements of its valued academic partners. The recipient of the 2018 DSEF Academic of the Year honor is Dr. Elizabeth Davis, dean of the School of Management, University of San Francisco, and DSEF Academic Fellow.

“Dean Davis has made tremendous contributions to DSEF’s work to partner with university professors throughout the country to achieve our goal of reaching more than 60,000 students per year through DSEF events, curriculum and content,” Huggins said. “She has been a highly valued strategic advisor to the Foundation through her service on the board as well as a founding member of the Foundation’s Academic Advisory Council.”

2017 Statistics

During the Annual Meeting, DSA announced that in 2017, 18.6 million Americans were involved in some capacity in direct selling in every state, congressional district and community across the United States. The channel generated more than $34.9 billion in retail sales.

Direct Selling Industry Leaders Gather in San Diego for DSA Annual Meeting

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The Direct Selling Association (DSA) Annual Meeting’s general sessions kicked off today with a focus on sharing best practices for the direct selling industry and exploring new ways to continue developing “America’s Original Entrepreneurs.” The event will run through tomorrow at the Marriott Marquis San Diego Marina in San Diego.

“Direct selling is poised to be the next retail channel of choice for many consumers, and the DSA annual meeting provides direct selling leaders the opportunity to share information about industry best practices, important advocacy initiatives and the coming implementation of the Association’s business ethics program,” said Joseph N. Mariano, president and chief executive officer of the Direct Selling Association.

The meeting will also focus on consumer perceptions and awareness of direct selling as well as the future launch of the enhanced self-regulation for the direct selling industry.  In addition, DSA will unveil its annual market-sizing (Growth & Outlook) survey results, and DSA will present current trends on how Americans like to shop and earn and the implications for direct selling.

DSA Chairman of the Board and Amway Chief Sales Officer John Parker said, “The DSA has a long history of setting, maintaining, evolving and enforcing high standards for ethics and self-regulation. The marketplace has changed, and the time is now for the industry to innovate and develop a new model for ensuring we continue to raise the bar on the protection of consumers.”

New York Times best-selling author of Better and Faster and CEO of TrendHunter.com, Jeremy Gutsche, will provide insight on growth and innovation as the featured speaker on “Disruption and Creating an Adaptable Culture.” Direct selling industry leadership providing keynotes and/or leading panels, such as:

U.S. Congressional keynote speakers are Congressman Tony Cardenas (D-CA) and Congressman John Moolenaar (R-MI).

Special events at the Annual Meeting include the DSA Industry Awards Gala with the announcement of the DSA Hall of Fame, as well as he celebration of the Direct Selling Education Foundation (DSEF) Academic of the Year and Circle of Honor inductees.

The full meeting and conference schedule can be viewed here.

A Top Consumer Trend for 2018: Adaptive Entrepreneurs

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Euromonitor International’s 2017 Global Consumer Trends Survey shows that nearly 50 percent of respondents across all generations aspire to be self-employed, showing a growing trend towards this adaptive entrepreneurial lifestyle.

Consumers are increasingly seeking flexibility in their lifestyles and are prepared to take risks. Millennials especially have an entrepreneurial nature, shifting away from the traditional 9-to-5 career towards one that affords more freedom.

Rejection of traditional working patterns

Adaptive Entrepreneurs point to several factors in their rejection of traditional jobs and companies. For instance, wages are stagnant, increasing by 1 percent or less in many Western European economies such as the US, Germany, the UK and Japan between 2011 and 2016.

The shift in priorities of Adaptive Entrepreneurs is directly linked to a change in values. In 2018, these consumers will be attracted towards alternatives that allow more flexible, adaptable and personalized experiences, and not just potential financial gain. They want a lifestyle they can build themselves and align with their personal interests and passions. The Euromonitor survey saw a marked delay in larger life goals such as owning a home or having children.

The role of the internet for Adaptive Entrepreneurs

Macroeconomic factors and lifestyle shifts are pushing Adaptive Entrepreneurs to rethink and look for alternative ways to work and earn a living. The biggest driver has been the proliferation of the internet as a flexible platform to sell, communicate, review and network without borders or boundaries.

While start-ups hold substantial risk, the upsides are attractive to Adaptive Entrepreneurs, who are disillusioned with the traditional economic model. Their online lifestyles mean they are knowledgeable and savvy, well-connected and technically confident. The tech industry, grown to be dominated globally by Apple, Google and Amazon, is the guiding star of the Adaptive Entrepreneur.

Adaptable consumers, adaptable brands

Risk-seeking entrepreneurs will not be attracted to the same brands or marketing techniques that dominated in the past. They will favor products enhancing their adaptable work and personal lives.

One example of a service catering to entrepreneurial consumers is Remote Year, a company providing access to work and travel—an enabler for breaking out of traditional 9-to-5 office jobs and travelling the world. Participants must already have a flexible job arrangement, such as their own business. The growth in the popularity of Remote Year and others, such as Hacker’s Paradise and We Roam, throughout 2017, is creating “digital nomads”—independent entrepreneurs looking for flexibility.

Traditional businesses leveraging historical prestige will find their marketing push towards this disruptive generation fall flat in 2018. Adaptive Entrepreneurs are not brand-defined—they want to take risks and remain distinctly independent.

WFDSA Report: New Global Records for 2017 Retail Sales, Representatives

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The World Federation of Direct Selling Associations (WFDSA), the leading international non-governmental organization representing direct selling industry worldwide as a federation of national Direct Selling Associations, yesterday released business results for 2017.

According to WFDSA:

  • Global estimated retail sales for 2017 were $189.6 billion, a 1.6% increase over 2016.
  • Compound annual growth rate for the period from 2014 through 2017 was 3.7%, showing sustained growth over time.
  • The global force of independent direct selling representatives reached nearly 117 million, up 2.6% over 2016.

Both the sales and representative figures set new global records, further evidence of the popularity of direct selling as a convenient way for customers to shop, and for direct selling representatives to earn additional income.

Herbalife Nutrition Partners with American Red Cross on #MissingType Campaign

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In its ongoing support of the American Red Cross, and to help bring awareness for the need of blood donors, Los Angeles-based Herbalife Nutrition recently announced its support for the American Red Cross #MissingType campaign.

Through July 3, Herbalife Nutrition will join the Red Cross and other organizations, celebrities and influencers to remove the letters representing the main blood groups–– A, B and O––from its logo and public-facing messaging to illustrate the critical role blood donations play in patient care. The company will also help raise awareness through its social media channels, and among its employees, independent distributors and customers.

“For more than 20-years, Herbalife Nutrition continues to proudly and actively support the American Red Cross with local, national and global disaster relief, emergency preparedness efforts, local events and blood drives, fostering a partnership built on the shared principles and values of helping others,” said Dr. John Agwunobi, co-president and chief health and nutrition officer at Herbalife Nutrition.

In addition to Dr. Kristy Applehans, MS, NMD and senior director of global post-market medical surveillance at Herbalife Nutrition serving as a member of the American Red Cross Los Angeles Regional Board of Directors, the company provides an annual $500,000 in-kind donation of Protein Deluxe Bars to 120 Red Cross blood donation service centers across the U.S. The company’s independent distributors and employees generously also donate to support U.S. and international relief efforts, most recently in support of Hurricane Harvey victims.

“We are so grateful that Herbalife Nutrition has joined the Missing Types campaign to raise visibility for this critical need and to help ensure hospital patients receive lifesaving blood,” said Neal Litvack, chief marketing officer, Red Cross. “We could not fulfill our mission without the tremendous support from volunteer blood donors and partners like Herbalife Nutrition. Together, we can reverse the trend before it’s too late for the many patients who are counting on us.”

Nu Skin’s 15th Annual Force for Good Day Celebrates Global Humanitarian Efforts

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Provo, Utah-based Nu Skin Enterprises, Inc. recently celebrated its 15th annual Force for Good Day by participating in humanitarian projects in more than 20 countries, including local community projects focused on improving the lives of tens of thousands of children.

At Nu Skin’s global headquarters, more than 1,500 Nu Skin corporate employees teamed up with United Way of Utah County, Provo, Nebo and Alpine School Districts, and Provo Parks and Recreation to paint, clean and beautify eight local elementary schools and six parks throughout Utah County. In keeping with the Nu Skin Force for Good Foundation’s mission to help children in need, employees and their family members performed meaningful service for thousands of children.

One of the eight elementary schools that Nu Skin helped to beautify was the Amelia Earhart Elementary School. Nu Skin employees dug out the large playground area and filled it in with fresh wood chips. They also helped to beautify city parks and trailheads to give back to Provo City, neighboring businesses and the Provo community. Employees planted shrubbery, weeded and added wood chips in the neighborhood parks including Memorial Parks, and cleared and built up trails including Rock Canyon Trailhead.

“Since the company’s founding, our mission has been to be a force for good throughout the world,” said Ritch Wood, chief executive officer. “On Force for Good Day we bring employees and sales leaders together to focus on improving the lives of children in the communities where we live and work.”

Global Force for Good Day projects throughout the month of June will include:

  • EMEA – Employees throughout EMEA will compete against each other to raise money through different sports activities to support their favorite causes. In addition, employees will donate clothing, toys and food to an orphanage.
  • Japan – Employees in Japan will create more than 2,000 stationery sets as part of the Kits for Kids Project and deliver them to the children at elementary schools affected by natural disasters.
  • Korea – Korean employees will assemble 2,000 feminine hygiene kits for underprivileged teenage girls.
  • Philippines – Employees in the Philippines will assemble and donate 200 school bags filled with school supplies to children in need.
  • Greater China – Sales leaders and staff throughout Greater China will collect “Gifts of Love” for children including books, toys and stationery. The gifts will be given to various charity partners who support children in need.

The Nu Skin Force for Good Foundation provides grants that improve the lives of children by offering hope for a life free from disease, illiteracy and poverty. It began as a campaign in 1996 and was formally organized as a nonprofit foundation two years later. The Foundation is funded by Nu Skin distributor and employee donations and from 25 cents of the sale of each Nu Skin Epoch product. Nu Skin covers all administrative and overhead costs, allowing for 100 percent of donations to be used for humanitarian and charitable causes. The Nu Skin Force for Good Foundation is a registered 501(c)(3) nonprofit organization in the United States.

Dustin Hillis Appointed New CEO of Southwestern

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Southwestern, the 163-year-old direct seller and one of Middle Tennessee’s oldest and largest private corporations, recently announced the appointment of a new CEO. On July 1, Dustin Hillis will be promoted to the position held by Henry Bedford since 2006.

Bedford will continue to serve as Chairman of the Board of the corporation and as CEO of Wildtree, a direct selling company within the Southwestern Family of Companies.

“Dustin Hillis is a man of vision and a student of the game,” said Bedford. “In the years I have worked closely with Dustin I have watched him develop business acumen and leadership skills that equip him well for the position of CEO. He is a practitioner of the Southwestern principles that we are well known for and he always leads by example. I am looking forward to supporting Dustin as he takes the reins and leads us toward our 30-year vision to become the largest private company worldwide.”

Hillis is a co-founder and head of the Coaching Business of Southwestern Consulting, a global coaching and consulting company elevating the practice and perception of sales to help clients increase their revenues. Southwestern Consulting has grown by more than 60 percent for five years in a row. His career began while he was a student at the University of Tennessee – Knoxville. As a junior, he set a sales record with Southwestern Advantage, making a profit of more than $100,000 in 14 weeks through selling educational products to families and pioneering a new referral method. He is also one of the top personal producers and team leaders at Southwestern Consulting.

Hillis is also the co-author of Navigate 2.0: Selling the Way People Like to Buy; of Navigate; co-author of Speaking of Success (along with Stephen Covey, Ken Blanchard and Jack Canfield); and the creator of Navigate: How to Create a Referral System audio training series. His insights on professional selling have been featured on some of the biggest podcasts in the world and in media outlets like Entrepreneur magazine and the Dave Ramsey radio show.

Hillis will continue to lead Southwestern Consulting in addition to building additional internal structures to accommodate future growth with new opportunities throughout the Family of Companies and beyond.

The Southwestern Family of Companies is made up of 16 companies in industries that include fundraising, tax services, real estate, executive search, publishing, direct sales, travel, visa sponsorship, financial services, property and casualty insurance, speaking, coaching and consulting.

 

C. Lee Peeler, Esq., a 33-year veteran of the Federal Trade Commission, is the President and CEO of the Advertising Self-Regulatory Council and EVP of the Council of Better Business Bureaus.

SimplyFun Hits Awards Milestone

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Bellevue, Washington-based SimplyFun, LLC., publisher of award-winning educational board games,recently marked a milestone of 200 award wins when their new Language Arts game, ARTributes, earned a PAL Award in May 2018.

SimplyFun games began winning awards in 2005, one year into the company’s operation. Since then, the company’s games have continued to be honored, including three from Oppenheim Toy Portfolio as well as the prestigious Mensa Select award for Math & STEM game Amalgam in 2017. Other leading organizations include Creative Child, NAPPA, Academics’ Choice and Teacher’s Choice Awards.

SimplyFun games have earned these awards for their unique and easy-to-learn concepts, interactive components and specific skill-building features. Working with notable game designers such as Reiner Knizia, Michael Schacht, Alan Moon and Aaron Weissblum, combined with SimplyFun’s commitment to high quality, have attributed to the continuous recognition.

“We take great pride in the level of thoughtfulness that goes into the design and playability of our games,” said SimplyFun President and CEO Patty Pearcy. “As a result, SimplyFun games provide a strong combination of fun and learning to kids of all ages.”

Founded in 2004, SimplyFun champions a vibrant, play-based education that enriches families and contributes to the potential of children, the success of schools and personal fulfillment. The company provides its Playologists (Independent Consultants) the opportunity to make a difference for kids and families with its skills-focused board games while earning income through direct sales opportunities in person and online.

Young Living Promotes Lee Bowen to Chief Financial Officer

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Lehi, UT-based Young Living Essential Oils recently announced the appointment of Lee Bowen as its chief financial officer.

Lee Bowen

Lee Bowen

Bowen will be responsible for all aspects of the company’s financial condition, as well as overseeing the Accounting, Tax, Finance, Commission Services and Human Resources departments.

“At Young Living, much like we seek out the best botanicals from around the world, we search high and low for the best and brightest talent in the business,” said Young Living’s Chief Executive Officer Mary Young. “That’s why Lee was recruited, and he’s been dazzling us in the Finance department for years. I am so proud to welcome him to our executive team.”

Bowen joined Young Living in 2014 as director of Finance and was subsequently promoted to senior director of Finance, vice president of Finance, and most recently to senior vice president of Finance. He has played a critical role in overseeing Young Living’s financial planning and analysis, fraud management, treasury, banking, commission services, payroll and risk management.

“After an exhaustive search process, we are pleased to announce that we found the best person to fill the CFO role in our own Lee Bowen,” said Jared Turner, Young Living president and chief operating officer. “Lee has been instrumental in Young Living’s achievement of $1.5 billion in annual revenue and in the 800 percent growth over the last five years. His skills and experience are integral to helping us plan for the future as we grow into a multi-billion-dollar company.”

Bowen has over 20 years of experience in financial operations, strategy development and leadership. Prior to joining Young Living, he worked at Intel Corporation as regional director of Finance; he also worked as the director of Financial Planning and Analysis for another direct selling company. Bowen earned an MBA and MSIM (Master of Science in Information Management) from Arizona State University and a BS in accounting from Brigham Young University.

Reliv International Names Ryan Montgomery Chief Executive Officer

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Reliv International, Inc., the Chesterfield, Mo.-based maker of nutritional supplements that promotes optimal health, recently announced that its Board of Directors has appointed Ryan A. Montgomery to the position of Chief Executive Officer. Former CEO Robert L. Montgomery will continue to serve as Chairman of Reliv’s Board.

In his new position, Montgomery will manage the overall operations and resources of Reliv International while also setting the strategy and fresh vision for the company as it moves into its third decade.

“Robert Montgomery has been CEO for 30 years, and I look forward to leading Reliv International into the future by building onto the strong foundation he and my mother, Sandy Montgomery, built together,” said Montgomery. “Reliv has achieved many successes and has changed lives with its products and business opportunity for three decades around the world, and going forward, we will work to not only remain competitive and relevant, but we aim to modernize Reliv to become leaders of the wellness and direct sales industries. I’m committed to Reliv’s established core values and principles and the culture that has been built, and I’m eager and motivated to see Reliv evolve and enhance every facet of the company from the product line to the distributor experience.”

Montgomery joined Reliv as corporate counsel in 1999, establishing the Compliance Department and assisting international expansion and development. In 2003, he moved to the Sales Department and was responsible for developing sales strategy worldwide. He was named president of Reliv in 2012. He graduated from Vanderbilt University in 1995 with a BA in Economics and earned his law degree from St. Louis University in 1999.

“Ryan has spent nearly two-thirds of his life involved with Reliv in many different capacities from operations, legal and sales,” said Robert Montgomery. “He is the ideal candidate to lead Reliv International to great heights using his experience, passion, commitment and leadership talent.”