Advocating for the Direct Selling Community

December 1, 2017 by J.M. Emmert Leave a Comment

Click here to order the December 2017 issue in which this article appeared.

In This Issue:
The Most Influential Women in Direct Selling
Bringing Gender Parity to Direct Selling
Advocating for the Direct Selling Community
Navigating the Millennial-Driven World
Sticking to a Winning Business Model
Leading with Passion and Commitment
Launching New Products and Segments
Recruiting and Retaining the Field
Direct Selling Icons

The role of direct selling leaders encompasses more than simply executing business strategies. In addition to overseeing their employees, independent representatives and customer base, modern executives are the voices of the business model itself.

The commonly praised elements of direct selling include a low barrier to entry, flexibility and earning potential that have given millions of people a path to entrepreneurialism. And there is much to champion, now that direct selling has grown into a $183 billion-a-year global business.

Still, nearly 165 years after the first U.S. direct selling company, Southwestern, was established, and although at least 10 U.S. direct selling companies are currently billion-dollar global brands, the channel continues to be plagued by misconceptions of its business model. The misleading past practices of a few bad actors have had a lingering effect, making some would-be first-time distributors wary of the segment and leaving some consumers suspicious of the business model. The U.S. Direct Selling Association requires all member companies to adhere to the DSA’s Code of Ethics, a prescribed code of conduct. The Code outlines behaviors ranging from complying with all pertinent laws to spelling out specific measures such as inventory buybacks. Cindy Monroe, Founder and CEO of Thirty-One Gifts, a handbags and accessories brand, believes that protecting consumers from bad actors in the channel should begin with the companies themselves. “For those companies that struggle to align with the DSA Code of Ethics and the requests of the FTC,” Monroe says, “industrywide legislation can help educate and bring awareness to best practices.”

Traci Lynn Burton, Founder and CEO, Traci Lynn Jewelry Traci Lynn Burton founded the Fort Lauderdale, Florida-based jewelry company Traci Lynn Jewelry, which she began in 1989 in Philadelphia and expanded into a national direct selling company in 2008.

However, at the federal level, there currently is no legislation that defines a pyramid scheme, though many states have taken their own measures. That is why in August, Rep. Marsha Blackburn (R-Tenn.) and Rep. Marc Veasey (D-Texas) introduced the Anti-Pyramid Promotional Scheme Act of 2017. This bipartisan bill will better define the difference between a legitimate business opportunity and an illegitimate one.

Federal Legislation

Is federal legislation the best way to ensure a commitment to ethical business practices and, as a result, the protection of consumers? For Traci Lynn Burton, Founder and CEO of Traci Lynn Jewelry, the answer is yes. “We need to make sure that we have teeth in every policy, and you only get teeth when enforcement happens,” she says.

Burton says she believes that to get the bill enacted, direct selling needs to not only have a caucus, but also bipartisan support on Capitol Hill. This is particularly important in relation to minority communities. “We’ve got to engage all the caucuses, particularly the Hispanic caucus and the Black caucus, because in some instances pyramid schemes are in the minority communities. So we need to make sure that all of the players whose communities are hit hardest have a seat at the table.”

Cindy Monroe, Founder and CEO, Thirty-One Gifts Cindy Monroe launched Columbus, Ohio-based Thirty-One, an accessories company, from her basement in 2003. Now Monroe’s creation has grown to encompass nearly 1,000 employees and 65,000 consultants throughout the U.S. and Canada.

Burton, who is Vice Chairman of the DSA Board of Directors, also notes that the DSA itself is currently looking at enforcement policies. “It’s not always enforcing ‘you’re the bad guy’; it’s ‘let us help you correct it so you’re the good guy,’ she says. “We can help with corrective measures before we go to enforcement.”

Another DSA Board Member, Angela Loehr Chrysler, President and CEO of membership savings company Team National, says she believes ethical business practices take more than legislation: It takes training, commitment and dedication by direct selling companies. “As an industry, we need to unify around the positive aspects of this legislation to protect consumers and our independent reps,” she says.

Reputation Is Everything

The education of independent representatives, consumers and, most important, direct selling watchdogs is a key part of protecting the reputation of the channel.

“Educating our consumers and sales consultants on the differences in a healthy, ethical direct selling company and one that avoids best practices is required before we will be able to change the perceptions of the business model,” Monroe says. “We must continue to shift the negative perceptions to business practices and specific companies.”

Angela LOEHR Chrysler, President and CEO, Team National Angela Loehr Chrysler took over at the helm of Davie, Florida-based services company Team National, the family-owned business, in 2007, and leads nearly 500,000 customers and distributors.

Chrysler says she believes that if you are only interested in short-term success, sound business practices can often be the first things sacrificed. When that occurs, Burton adds, old stereotypes can gain momentum.

“When something happens, everybody knows about it,” Burton explains. “It gets attention, and then it goes to the minds of those who were skeptical: ‘I knew it. I knew it was a pyramid scheme all along. Yes, this confirms it.’ So then it confirms some of the old thinking about the industry.”

To prevent against such instances, Burton says she believes each company needs to take a stand—not just with executives, but with the field—to ensure standards are properly maintained. That includes taking a hard look at incentives, and stressing that the company stands for integrity.

“We need to make sure we are always encouraging the right behavior in the field. That’s how our reputation stays intact, that’s how we grow our reputation,” she adds. “If we can make sure our voice is always heard, even at the grassroots level, then people will say ‘you know what, there’s always a bad apple out there, but on the whole I know my company does this and it was a great experience.’ ”

“We need to make sure that we have teeth in every policy, and you only get teeth when enforcement happens.”

– Traci Lynn Burton, Founder and CEO, Traci Lynn Jewelry

Portraying the Channel

Chrysler says she believes it is important for executives to model, teach and lead in ethical behavior, and to continue to share the positive contributions direct selling companies and programs make to the economy and in entrepreneurship in general. “Direct selling is a valuable part of making and keeping America great for all people of any age, race or background. We need to share often what we do and the difference we make,” Chrysler says. “We need to share that message regularly.”

She also adds that direct selling companies need to support the efforts of the DSA and the Direct Selling Education Foundation (DSEF) in sharing the positive messages and information on direct selling. DSEF currently is partnering with professors to teach direct selling entrepreneurship in their classrooms.

“We can help professors teach positive aspects of direct selling at a very young, impressionable age,” Chrysler says. “I was a DSEF guest speaker at the University of Greensboro in South Carolina recently. It was a terrific experience and the college kids asked great questions about our opportunities, our products and how they can participate.”

“Educating our consumers and sales consultants on the differences in a healthy, ethical direct selling company and one that avoids best practices is required before we will be able to change the perceptions of the business model.”

– Cindy Monroe, Founder and CEO, Thirty-One Gifts

Burton also believes that businesses and organizations can have significant impacts on the image of the segment by sharing the opportunities of direct selling to younger generations of women. In the meantime, she will continue to work toward seeing the bipartisan legislation pushed through Congress.

“Being a voice of the industry means that I support ethical legislation and that I am going to go to Capitol Hill,” Burton says. “I’m going to send my people to Capitol Hill, and I am going to financially contribute to what needs to happen so that we can make sure as we build our political muscularity it gives us the teeth to correct and enforce.”

Navigating the Millennial-Driven World

December 1, 2017 by J.M. Emmert Leave a Comment

Click here to order the December 2017 issue in which this article appeared.

Direct selling marketing strategies have always had the same goal: Successfully communicate the quality and benefits of the company’s products or services as well as the unique business opportunity intrinsic to the channel. What has changed over time, however, are the tactics used to communicate the message. Social media has been added to the marketing toolbox in which kits, magazines, catalogs, brochures and videos remain essentials.

It’s hard not to focus on one demographic when speaking to social media strategies. While they are certainly not the only group impacting direct selling, millennials are greatly influencing all areas of it. Now the largest living generation, numbering nearly 80 million and with the most spending power—about $200 billion annually—this group is not only driving product sales, but also impacting how products are brought to market and subsequently marketed. Millennial consumers typically do not have loyalty to any brands, and 84 percent of them distrust traditional advertising. Millennial entrepreneurs want products that are easily shareable, and they want to share them through the tools they use regularly—Facebook, Twitter, Instagram and Snapchat among them. According to research by the marketing company Crowdtap, 71 percent of millennials say they engage daily in social media, and much of that is in “overlapping,” meaning they may be checking multiple sites simultaneously.

Keeping up with the latest social selling technologies and, more important, knowing which tools to embrace to help enhance the independent-representative and consumer experience is an ongoing challenge for today’s executives. Marketers must be at the top of their games in developing strategies that are inclusive of multiple social media platforms, all the while ensuring that their messages stay consistent across each one.

Social Media Strategy

Healthy living lifestyle brand OPTAVIA takes a layered, adaptable approach to its social media strategy, offering a full spectrum of social tools to promote, support and share field stories and the brand to the world. “In-depth and frequent marketplace monitoring, competitive analysis and best-practice strategies keep us abreast of current trends in the social arena, allowing us to choose our mediums wisely, depending on who our audience is at any given time,” says President Mona Ameli.

The company understands that fear of missing out (FOMO) is prevalent in millennials and therefore it uses tools such as Instagram, Facebook Groups, Facebook LIVE and its OPTAVIA IGNITE, a social video and story sharing initiative launched in 2017, to reach this demographic.

Mona Ameli, President, OPTAVIA
Mona Ameli was appointed President of OPTAVIA in 2014 and brings more than 22 years of experience in the technology, beauty, and health and wellness space.

While health and wellness company Isagenix strives to offer digital platforms and programs that help its associates communicate and learn anywhere and anytime, the company has ramped up its social media strategies and tactics to meet the demands of millennials. “Millennials are driving dramatic change in many markets, but they have been the driving force behind the online shopping phenomenon,” says Kathy Coover, Isagenix Co-Founder and Executive Vice President. “We have embraced strategies like FOMO for product launches and explainer videos to educate consumers and accelerate sales. We have a social media team that capitalizes on the full array of channels, with emphasis on Facebook, Instagram and Twitter. In addition, we have a team focused on the millennial demographic, offering programs specifically for young people ages 18-35.”

Connie Tang, President and CEO of Princess House, a kitchenware and home décor company, agrees that it is essential to use social media strategies to engage millennials. However, the Princess House product line is targeted to consumers who have established their own homes and are looking to stock their own kitchens, only some of whom are considered millennials. “Interestingly, research shows that the millennial generation is actually divided, with many in a stage of ‘delayed adulthood’ who are putting off home ownership or domesticity due to economic factors,” she says. “Therefore, we concentrate our social media efforts on reaching those consumers in the millennial generation who have set up their own homes or have started their families.”

Kay Napier Zanotti, CEO, Arbonne International LLC Kay Napier Zanotti joined Irvine, California-based Arbonne, a beauty and wellness company, in 2009, leading the company through a highly successful turnaround and into profitability.

At beauty and skincare brand Arbonne International, the fastest-growing segment of its business continues to be millennials, with over 36 percent of its independent consultants falling into that category—and growing significantly. In addition, more than 30 of the company’s top leadership level are millennials. “We absolutely employ new tools like Snapchat, and Geofencing for our conferences, in particular, and have really upped our game with Instagram and short videos,” says CEO Kay Napier Zanotti. “We have Facebook Live events, and more and more we are seeing our older consultants get on board with new technology. Once they know how to use the new tools, they see the value to their business.”

Field Selling Preferences

Across all companies, what is not lost in the millennial surge is the fact that tried-and-true ways of marketing and selling still work very well, and that social media selling is just the lastest method among many. Given that, marketing strategies must maintain a balance between fulfilling the millennial need for the latest tools and more traditional approaches that are as successful as ever.

Kathy Coover, Co-Founder and Executive Vice President, Isagenix International Kathy Coover founded Gilbert, Arizona, health and wellness company Isagenix with husband, Jim, in 2002. It serves more than 550,000 customers with about 1,000 employees in 13 markets.

While Isagenix keeps constant watch on technology trends and assesses new tools to determine ROI and effectiveness, it is also cognizant that social media isn’t the be-all and end-all. Last year the company implemented a group called Prime Time, which focuses primarily on healthy aging. “The group currently has more than 7,000 active members,” Coover says. “Some members meet on Zoom calls or through our closed Facebook group, while others prefer receiving the latest news through our bimonthly email newsletter that includes healthy aging tips and tools. Whatever their preferred vehicle for receiving information, we get great feedback from our associates who use the experiences, pictures and exclusive blog articles found in Prime Time to build rapport with prospects who want to learn more about Isagenix.”

At Princess House, the IS/IT, Communications and Marketing teams are the scouts and gatekeepers for new technology. The company has been doing a lot of toe-in-the-water testing to see what works for them. “It’s critical to accept and discern that not every new shiny social tool is appropriate for your company or salesforce,” Tang says. “We too have to manage our own FOMO and not set ourselves up for loss of focus or clarity. Our focus is on educating our existing salesforce about the basic social tools currently available and encouraging all our consultants to embrace them and understand the potential value for their businesses while being productive.”

Connie Tang, President and CEO, Princess House Connie Tang is serving as the first female CEO of 54-year-old Taunton, Massachusetts-based kitchenware company Princess House and has overseen a strong turnaround in sales and consultant growth in her five-year tenure.

Ameli says that OPTAVIA leaders have found that the best resource for keeping up with the pulse of customers is its own field. As the “best voice in the game,” their feedback sets the direction for catering to the needs of customers, which, as Ameli points out, is the primary focus. “We make sure to cater to millennials through the use of Snapchat, Instagram Stories, Facebook and so forth, but we also make sure we utilize Leadership Calls, Zoom video conferences, email and personal support calls that are directed and available to all other generations and demographics that might not be attuned to the pulse of the minute from a social media perspective,” she says. “The bottom line is that we cater to the field and include tools for everyone regardless of their age or communication preferences.”

Online Marketing

Speaking of preferences, millennial consumers have a very loud voice in the marketplace. It is said that a staggering 90 percent of consumers trust peer recommendations and only 33 percent trust ads. Since peer recommendations have always been one of the strengths of the direct selling channel, and as 84 percent of millennials so strongly distrust advertising, many marketers have revisited their strategies for online marketing.

“Millennials are driving dramatic change in many markets, but they have been the driving force behind the online shopping phenomenon.”

– Kathy Coover, Co-Founder and Executive Vice President, Isagenix international

“Personally, I feel like this is an area where millennials are really changing the dynamic for all generations and metrics that lead to purchasing decisions,” Tang says. “They aren’t the only ones suspicious of advertising, and they have a huge influence on their parents and grandparents when it comes to who to trust and how to shop. Recommendations and reviews are critical selling tools in today’s world, and we have a legacy of 55 years of satisfied customers to speak to the quality of the products that Princess House offers. It’s not just putting a product review widget on your website though. It’s really about storytelling and engagement, and that is something we are really honed into when it comes to our marketing and social communications.”

Coover agrees that third-party reviews, peer recommendations and word-of-mouth testimonials have been the best ways for Isagenix to inspire consumer confidence for those wanting to connect with direct selling products and solutions. “This is definitely a key strength in our channel,” she says. “However, to participate in a competitive health and wellness market and to ensure our brand is front of mind in our customers’ product purchase journeys, we have begun to complement our direct sales model with paid digital advertising targeted to our current customer base. This allows us to increase product awareness and re-introduce our no-compromise products to our current customer base in a manner that helps drive sales for our business builders.”

However, while Coover expects online advertising to continue to be one tool in the company’s toolbelt, she believes the greatest success in creating trust during product purchase decisions remains the peer-to-peer coaching model and personal interaction that have been the foundation of Isagenix. Ameli agrees, noting that peer recommendation and direct selling go hand and hand. “Person-to-person endorsement is key; there is nothing more trustworthy than building the relationship and trust one-on-one,” she says. “At OPTAVIA, our emphasis continues to be on our Coaches—the heart and soul of who we are—to connect to clients and potential clients, not massive online advertising that doesn’t have trust or credibility.”

As Zanotti puts it, “We never discount the fact that consumers still want that personal touch, human interaction, direct recommendation and sensory experience that is at the foundation of our industry. Digital technology has enhanced our industry, but it will never fully replace the in-person interaction.”

Sticking to a Winning Business Model

December 1, 2017 by J.M. Emmert Leave a Comment

Click here to order the December 2017 issue in which this article appeared.

Just a few decades ago, the direct selling channel enjoyed an unparalleled relationship with consumers. Its key points of differentiation—a personalized shopping experience through a trusted adviser, a try-before-you-buy policy, anytime ordering through representatives and convenient delivery—distinguished the channel from brick-and-mortar retail outlets. But in the mid-1990s, online retailers began to appear, and within the span of three decades have begun to catch up to the direct selling segment by using cutting-edge technology to provide customized shopping experiences and rapid delivery.

According to a National Retail Federation (NRF) estimate made earlier this year, online retail growth will continue to dwarf the growth rate of the wider retail industry. The executives we spoke with take this growth seriously, and are seeking ways to keep their distributors and customers in close contact in the modern digital age.

This often means that companies are working harder to both engage and retain consumers, especially the younger generations. A November 2016 report by the American Marketing Association showed that 80 percent of millennials are more than willing to switch brand allegiance if such a move would help them to earn rewards or discounts.

DEVELOPING NEW TOOLS

Direct selling executives are constantly pushing boundaries to develop tools that will continue to help their field engage customers with highly personalized methods. Linda Lucas Padilla, Chief Marketing Officer for MONAT Global Inc., an anti-aging hair-care company, likens it to a first date—you want to make a great first impression and then add those things along the way to strengthen the relationship.

Sheryl Adkins-Green, Chief Marketing Officer, Mary Kay Inc.
Sheryl Adkins-Green leads global marketing strategy, product development, and marketing and advertising for the Dallas, Texas-based beauty and personal care company, having joined Mary Kay Inc. in 2009.

“That’s the approach we need to take with our customers,” Padilla says.

“Knowing your customers is key, so welcome them in a big way, and then make it a priority to analyze the customer data and purchasing patterns to build a more personalized CX (Customer Experience). The time taken to personalize communications and messaging will offer incredible results,” she adds. “Coupled with looking for those added ‘surprises’ in this process, something simple like a free sample or special how-to video makes a big difference in ensuring your customers fall in love with your brand.”

To thrive in today’s crowded, fast-moving landscape with the consumer attention span constantly shrinking, anti-aging skincare company Jeunesse is focusing on providing engaging product experiences that cannot be matched in a detached online environment.

“Jeunesse innovates constantly, designing pathways to build relationships and utilize technology,” says Meredith Berkich, President of North America.

“Our new internally developed lead management tool, found exclusively in our mobile app, provides a natural, simple, engaging series of steps for distributors to share relevant products with family, friends and colleagues through videos and sampling opportunities,” she adds. “Studies show that people still look to friends they trust for product recommendations, so at Jeunesse, we continue to connect people through familiar activities that make sense in today’s mobile-centric lifestyle.”

Linda lucas Padilla, Chief Marketing Officer, MONAT Global INC.
Linda Lucas Padilla provides strategic direction in marketing on key initiatives at Miami, Florida-based personal care company MONAT Global.

Sheryl Adkins-Green, Chief Marketing Officer at cosmetics and beauty brand Mary Kay Inc., says that while Mary Kay is sticking to its traditional service-oriented model whereby the consultant provides personal interaction, it is also investing in the technology to support not only the independent beauty consultants and their businesses, but also those which enable the company to broadcast the passion of a live event.

“We monitor not only from leveraging our technology partners but also listening to the independent salesforce about the kinds of capabilities that they feel help them to be more productive,” she says. “We are selective in terms of making sure the tools we provide them not only incorporate the latest technology, but also have the privacy and cyber-security features that are so important in this age of technology.”

One of the ways in which health and nutrition company It Works! is enhancing the customer experience is with its use of mobile apps. The company has integrated an app into the Wrap Party, its signature home-sample event led by an independent distributor.

Candace Matthews, Regional President, The Americas, Amway
Candace Matthews joined Ada, Michigan-based multi-product company Amway, the world’s largest direct selling company, in 2007 and currently leads all operations for Amway’s Americas region.

“After the party is over, the party guests have access to product information and tips right on their phone through the app,” says Co-Founder and Chief Networking Officer Pam Sowder. “Positive, personalized experiences happen each and every day, whether it’s a loyal customer having that in-person experience at a Wrap Party, or our independent distributors using their mobile app to connect and build their business. We’re constantly finding new tools and innovative ways to personalize the ‘It Works! experience.’ ”

Candace Matthews, Regional President, The Americas, at Amway, the world’s largest direct selling company, says, “Direct selling is the original social network and is a pillar of our business today. People buy from people they like and trust, and that relationship is critical to keep the competitive advantage of direct selling above the impersonal interaction encountered when engaged with some of the online giants.” She adds, “We must continue to innovate the experience because the experiential elements that are built through the personal relationships are the hallmark of direct selling. At Amway, we continue to invest in delivering the best products and experiences to our Amway Business Owners and their customers. That includes some experiential aspects many of us have come to expect as consumers in the marketplace, including digital connections, personalized service and delivery options.”

Pam Sowder, Co-Founder and Chief Networking Officer, It Works!
Pam Sowder co-founded the Palmetto, Florida-based health and wellness company It Works! and supports the field with training, mentoring and belief.

Corporate-Consumer Relationships

Many first-time buyers of a direct selling company’s product go on to become raving fans. Rewarding customer loyalty has become just as important as rewarding success in the salesforce.

At MONAT, the company is seeing substantial growth in its Preferred Customer Program and also has prioritized its strategic focus on the customer experience. “It’s an ongoing work in progress, and we are evaluating purchasing patterns and Loyalty Rewards ideas that are out of the box,” Padilla says.

“It’s important that we keep up with what is happening in retail in general because that’s who our customers will compare us to,” she adds. “Data is the key, but the most important priority is reducing any friction in the customer process.”

When it comes to acquiring and growing the customers base, It Works! utilizes a data-driven Loyal Customer Program that incentivizes independent distributors to not just gather customers once, but to grow their business by finding new loyal customers on a daily basis.

Meredith Berkich, President, North America, Jeunesse Global
Meredith Berkich leads Jeunesse’s North America region by focusing on strategic planning and salesforce development.

“We like to say, ‘It pays to be loyal!’ ” Sowder says. “So, in addition to growing with new customers, our Loyal Customer Program allows our existing customers to enjoy special benefits for being loyal, so they keep enjoying their It Works! products and experiencing life-changing results for years to come.” Matthews says Amway continues to look for new ways to connect with consumers of its products and to provide superior service to them. “Direct sellers are a volunteer salesforce and most participate in the opportunity on a part-time basis when it suits their needs and fits into their schedule,” she says.

“Participants in the direct selling opportunity may be passionate users of our products, which just makes sense. We devote a lot of time and energy to understanding what products participant and non-participant consumers like and what they like about them.” She adds, “We are also looking to strengthen our understanding of their interest in the direct selling opportunity and the reasons why some direct sellers participate more in the opportunity than others, and why they may change their focus from time to time. It is really about addressing the evolving needs of consumers and the marketplace.”

At MONAT, the Preferred Customer base is almost two times the Market Partner base. As a result, efforts are very focused on this important segment of the business. “Differentiating the communications and providing a great value-add to our flex ship offerings are key to our success,” Padilla says. “With each qualified flex ship order, we offer an innovative, free, full-size product supported by a fun social media campaign, and this has proven to be quite successful.”

Leading with Passion and Commitment

December 1, 2017 by J.M. Emmert Leave a Comment

Click here to order the December 2017 issue in which this article appeared.

Mary Kay Ash remains an ever-present figure in direct selling. Sixteen years after she passed away, the legendary founder of Mary Kay Cosmetics continues to inspire female entrepreneurs and leaders. A trailblazer when she formed her business in 1963, a time when very few women held the reins of any company, Ash championed the direct selling business model to ensure women had every opportunity to become their own bosses and achieve financial security.

Today, half of the 20 most influential women in direct selling follow in Ash’s footsteps as founders who lead their own direct selling enterprises. While much has changed over the past 50 years—certainly when considering technological advances and the ability to instantly communicate across the globe—today’s founders continue to face the same challenges as Ash once did: how to infuse passion and energy into the sales field, how to compete in a crowded marketplace, and how to encourage and train first-time entrepreneurs to grow into successful business owners.

Leading by Example

Employees and independent representatives of a direct selling company embody the vision and mission of its founder. They also reflect the passion and energy of their leader. As a channel with its foundational structure built on interpersonal relationships, direct selling’s independent representatives are finely attuned to the pulse of the executive team. Today especially, with easy access to both positive and negative information about a company, the executives we spoke to felt communication directly from the founders to the field is critically important.

Chrissy Weems, Co-Founder and CEO, Origami OwlChrissy Weems co-founded Chandler, Arizona-based custom jewelry company Origami Owl with her then 14-year-old daughter, Bella, in 2012 when Bella’s desire to own her own car inspired the entrepreneurial family.

“In the fabric of my DNA is die-hard passion, purpose and boundless energy,” says Chrissy Weems, Co-Founder and CEO of Origami Owl, a custom jewelry brand. “When you’re passionate and committed, people around you feel it. When you’re not, they feel that, too. For me, it means staying true to our genuine intention to be a global force for good. It also means, during the good times and the bad, I work hard to keep myself in a peak state of energy. I’ve learned that even as a founder and CEO, I cannot control what happens, but I can control how I respond to it.”

Mary Young, Co-Founder and CEO of Young Living Essential Oils, says she believes the best way to infuse energy into the field is by allowing them to freely offer their insights and opinions. “Personally, I enjoy building friendships with those with whom I work,” she says. “Treating those people as equals and valuing their opinions builds tremendous passion and motivation. Great creativity comes out of allowing others to express their feelings and share their ideas, knowing that the leadership or management is listening with sincere interest.”

For Melanie Huscroft, Co-Founder and Chief Visionary Officer of social-selling beauty company Younique, allowing employees and consultants or distributors to share in successes and wins, and giving credit to those involved with those successes, also breeds loyalty and passion. “Setting business goals as an organization and ensuring that everyone is aligned is very important,” Huscroft says. “Passion starts at the top and breeds its way down through the organization. Owning mistakes creates a culture of learning—I truly believe that. When the big wins happen in business everyone helps to celebrate those, but we can also celebrate the learning that comes from those mistakes as well. It helps everyone to feel passionate and motivated and personally invested in the long-term successes.”

Melanie Huscroft,Co-Founder and Chief Visionary Officer, YouniqueMelanie Huscroft founded Lehi, Utah-based beauty and personal care company Younique with her brother, Derek Maxfield, in 2012 and leads areas in marketing, advertising, product selection and branding.

There will always be ups and downs in any business. Executive leaders as well as the field understand that. But how those downs are managed is critical, especially for the morale of employees and the field. The key to managing such challenges, say these founders—especially regarding reputation, a recurring theme in direct selling—is being open and honest with everyone so they fully understand the company’s business decisions.

“Transparency and honesty—we need more of it in business,” Huscroft says. “Employees and consultants/distributors appreciate it and respect it. Not all business decisions end up being the right ones, but owning those decisions and then evaluating and sharing the insights learned helps everyone to understand the motives and filters used to help make those decisions. Decisions and outcomes can evolve as the learnings of the business evolve. Staying laser-focused on the company’s vision and mission is the purest way to stay true to what is most important in managing those inevitable challenges.”

Young agrees that communication is the key to all interaction. “If management is honest and puts the well-being of those with whom they associate first, whether they are employees or distributors, everyone will feel respected and regarded as important to management and the company, which makes it much easier to solve problems, make decisions and have positive growth and success,” she says.

Competing in the YouEconomy

In this age of the YouEconomy, honesty and legitimacy in business practices are even more critical when one considers Uber, Etsy and Airbnb. These companies also offer independent workers similar business opportunities, with a few key differences, including that earning potential is capped by time. There are only so many hours in a day to drive a car and so many days in a month that your property might be available to rent. But with direct selling, distributors have the opportunity to build their businesses through networks. Those networks can work for them, even when they are idle. That can make a big difference when looking to establish the flexibility to pursue the work-life balance important to younger generations.

Mary Young, Co-Founder and CEO, Young Living Essential OilsMary Young co-founded Lehi, Utah-based Young Living Essential Oils with her husband, Gary Young, and directs the company’s day-to-day business as well as leads the global outreach efforts of the Gary D. Young Foundation.

Consider this: According to an Intuit report, 40 percent of American workers will be independent contractors by 2020. That represents a tremendous opportunity for direct selling leaders—4 in 10 working Americans looking to start their own businesses. The challenge, both now and over the course of the next few years, is to successfully communicate the benefits the direct selling channel offers to these workers.

“Everything in our world seeks to pull us further and further away from connection with others: We shop online, we pay at the pump, we have groceries and meals delivered to our doors, we text instead of making a personal phone call,” says Weems. “What the social (direct) selling industry offers is an opportunity to earn income through flexible entrepreneurship while creating lasting relationships and empowering others to reach their definition of success. What we do connects people in meaningful ways that is so fulfilling. We offer people the opportunity to be a part of something way bigger than just what they can do or earn on their own.”

Young agrees that connection is what draws people to direct selling and what makes the channel a true community. “Our type of business offers lifestyle changes and a desire to share and help other people have the same opportunity,” Young says. “We build interpersonal relationships, trust and lasting friendships, which is the foundation that makes network marketing successful.”

The flexibility is also a key driver, Huscroft adds. “The beauty of direct sales is that one can decide the level of commitment one wants to give,” she says. “It isn’t necessarily bad nor good to realize that one individual may want a part-time investment of time and resources, while someone else may want to invest more time and energy into building an empire. It’s all possible, and proven, at all levels of success.”

“When you’re passionate and committed, people around you feel it. When you’re not, they feel that, too.”

– chrissy Weems, Co-Founder And CeO, Origami Owl

A Coaching Philosophy

Another key differentiator that direct selling has over Uber, Etsy, Airbnb and many other YouEconomy companies that draws potential business owners to the channel is the focus on personal development. Direct selling was founded on the philosophy of coaching people on how to successfully build a business from the ground up. Often, new business owners have little selling or leadership experience, and personal development training helps them establish the growth mindset and learn the critical skills necessary to build their businesses. It is this focus on self-improvement that helps to set the channel apart from other businesses.

“Personal development is so critical to the very foundation of what we do each day,” says Weems. “New business owners need tools to help them succeed and strengthen their leadership abilities. We have the ability to provide the tools to help build confidence.”

The focus on personal development also shows that the company is personally invested in the new business owner. When a company leader, especially the founder, offers encouragement and support, it goes far in motivating the salesforce.

“It’s the old saying that when people feel you care about them personally, they will respond to your suggestions and perhaps direction,” Young says.

“Staying laser-focused on the company’s vision and mission is the purest way to stay true to what is most important in managing those inevitable challenges.”

– Melanie Huscroft, Co-Founder and Chief Visionary Officer, Younique

“I don’t believe in telling people what to do. I believe in giving them choices and new ideas to think about,” she adds. “Most people, when introduced to the idea of building a business, are excited because of a product they would like to share, but they don’t know how to do that. Business tools are important if they are simple and easy to follow. However, it is more important that you teach them how to use the business tools. You set the example, go with them, encourage them and show them how to talk to other people by being sincere and not desperate in their approach.”

As she notes, when new business owners share their personal experiences and why they are excited about a product or business opportunity, they can create immediate excitement in those to whom they speak. But some business owners might have the same desire to share yet are paralyzed by insecurity, and they need support and encouragement the most.

“Through coaching, when these people realize that they can do it, the idea of building a business becomes very exciting,” Young says. “The first taste of success, if it is just in being able to express themselves, can be the beginning of a new path in life for individuals who have never had this kind of an opportunity. Selling and leadership will develop with time and persistence. And with a good mentor, anything is possible.”

Huscroft agrees. “Building genuine relationships is the first fundamental principle of coaching,” she says. “While personal development tools are very important for learning valuable business-minded philosophies, I tend to believe that truly caring about others’ goals and showing a personal investment into someone else’s success is what is really going to help create a coachable mindset that will lead to duplication and, ultimately, long-term success in this industry.”

Launching New Products and Segments

December 1, 2017 by J.M. Emmert Leave a Comment

Click here to order the December 2017 issue in which this article appeared.

When traditional retail companies consider launching new products or brand extensions, much time is spent on market research to understand the wants and needs of consumers. The direct selling channel is a bit different in this respect, according to the executives we spoke to about this topic. They each agreed that the consumer perspective is an obvious and necessary component of bringing products to market, and direct selling companies rely heavily on their salespeople to get at that perspective. For them, the opinions of, and feedback from, the sales field play integral roles in how new products or brands are developed and marketed, as well as how the needs of the consumers are tapped.

Technology—specifically, social media and online platforms—is also instrumental in marketing campaigns and launches for direct selling companies. Digital tools are used to communicate initial conceptualizations among key members of an organization, including sales leaders, as well as the development and release phases. Digital tools can also be the first true indicators of how well new offerings are faring in the marketplace.

Campaigns and Launches

The success of any direct selling company ultimately rests on how well its products connect to consumers. Product sales equate to sustainability and longevity. These leaders say that as companies look to expand their product categories with new offerings, they must consider every aspect from the consumer’s perspective.

Allison Levy, Executive Vice President and Chief Legal Officer, AdvoCare
Allison Levy oversees multiple departments at Plano, Texas-based health and wellness company AdvoCare, including legal, community relations and corporate communications, and also serves as the company spokesperson.

“Think about who they are,” says Allison Levy, Executive Vice President and Chief Legal Officer at AdvoCare, a seller of nutritional and weight-management supplements based in Plano, Texas. “What are their interests? What are their needs? How does the new initiative fit into his or her life? If a consumer is also a distributor, how will this new approach help them grow or improve their businesses? How does it fit in the bigger picture and relate to the AdvoCare brand that our distributors and customers know and love? These are baseline questions our teams ask as they begin the planning process for any marketing efforts.”

For personal and home fragrance company Scentsy, the recent launch of its bath bombs is a perfect example of the factors Co-Owner and President Heidi Thompson and her team take into account when considering new products. They start with a customer or consultant need or desire. In addition to market research, consultant feedback and requests help them determine new offerings.

“We strive to have a deep understanding of what will resonate with them,” Thompson says. “For me, making sure we are launching a product that our consultants want, and really strong internal planning, are the most important factors in bringing a new product or product line to market.”

Heidi Thompson, Co-Owner and President, Scentsy
Heidi Thompson co-founded Meridian, Idaho-based fragrance and accessory company Scentsy with her husband, Orville, which began in 2004 on their sheep farm and has grown to nearly $500 million in sales in 11 markets.

Cami Boehme, Partner and Chief Operating Officer at energy and sustainable lifestyle brand Viridian, believes developing new products must be justified by market reasons—that there are several factors a direct seller should consider, including shifting market demands, significant changes in the competitive landscape, the opportunity to do something innovative or fundamental changes to the company’s business dynamics.

“You just have to ask yourself very carefully what the driver for something new is and whether or not the disruption will be outweighed by the return on doing something new,” she says. “This is not always the case, and it’s not always easily evident. Our industry thrives in simplicity, consistency and duplication. Because of this, any new effort has to be carefully considered. Will the field embrace it? Will it attract new sellers or new customers? Does it address a clear and significant need within the current organization? Unfortunately, what seems like a great idea, a great change or a great extension can often fail in its execution if it’s too much change or steers you further from your core.”

Field Buy-In

According to these executives, whether or not the field will embrace a new offering is a viable question because, unlike traditional retail channels, direct selling companies have a unique relationship with their sales fields. In addition to selling products and the business opportunity, the field can be a powerful force in helping to bring new products to market. Obtaining their buy-in can help refine the products and greatly assist in the launch process. More importantly, however, soliciting their thoughts creates stronger bonds with corporate.

Cami Boehme, Partner and Chief Operating Officer, Viridian
Cami Boehme steers the sustainable offerings and operations of Viridian, the Norwalk, Connecticut-based green energy and lifestyle company.

AdvoCare’s Levy take a hands-on approach to obtaining field buy-in by speaking at numerous sales training events. She works closely with top leaders to effectively communicate throughout the company to ensure transparency and make sure that everyone is on the same page each step of the way. “We’ve managed to create a culture of unity among more than 650,000 distributors and customers by championing a proactive, collaborative philosophy throughout the organization,” Levy says.

Scentsy is always polling consultants to get their opinions, thoughts and ideas on products. Executives engage field leaders in closed Facebook Groups for fast alignment on ideas, which allows them to have conversations any time of the day or night. “It’s critically important for the field to be involved in and feel ownership of a new product,” Thompson says.

However, she also notes that it is often equally important to maintain confidentiality until executives are ready to officially announce a new product or brand. “Our leaders are very vocal, very proactive and good at keeping secrets,” she says. “They are all covered under a non-disclosure agreement, and we reinforce the need for confidentiality every time we ask for their feedback. Their involvement allows us to tweak product and marketing plans while also engaging them in early adoption and training their teams once a product or program has launched.”

Boehme believes getting the field’s buy-in is critical and should be an integral part of any company’s research when evaluating a new offering.

“Ultimately, any direct selling organization should view their relationships with their field members as their No. 1 and most valuable asset,” she says. “Everything else—even product and brand—pales in comparison to the value and power of a healthy and mutually trusting relationship between corporate and the field. Your business will unquestionably be in a better position when the field is a trusted stakeholder of corporate and they know that their feedback is a key consideration in decision-making.”

The Impact of Technology

The millennial desire for shareable goods has impacted the development of products and time-to-market strategies for many direct selling companies. But as great as their influence has become, these executives feel that technology is what continues to shape marketing campaigns for all companies in the channel, from initial research and development to manufacturing and through the actual launch phase.

“Technology is intrinsically linked to any launch of any type,” Boehme says. “You can’t really think about a new product or launch without thinking about technology in this market environment. Direct sellers and our customers are no different from any other consumer operating in today’s economy. Just think about what you personally have come to expect from any company you interact with in the digital age. You expect speed, transparency, simplicity, mobile, interconnectedness, intuitive interfaces, flawless execution. Anything less and you become quickly disinterested and disengaged. Our stakeholders are no different.”

AdvoCare often uses the Facebook Live tool in the format of a fireside chat to sit down with its research and development staff to discuss the ingredients and benefits of new products. In addition, instead of flying the company’s distributor leadership to Dallas to its headquarters each month, executives can get their thoughts on projects through a web conference call.

“Our product-to-market strategies remain largely unchanged, although our manufacturers are always looking to use technology for more efficiency,” Levy says. “The most important part for us in launching products is to make sure we have quality ingredients that pass not only our manufacturers’ testing protocols but our strict quality and informed choice testing.”

Boehme believes correctly using technology will not only make a company nimbler in getting a new opportunity to sellers and customers, but it will also make sellers nimbler in sharing their story, the company’s story and the new products with others.

“The biggest mistake a direct selling organization can make is to assume that somehow the opportunity will be great enough to overcome major gaps in the technology or experience delivered,” Boehme says. “We are competing with digital giants and companies that understand the need to deliver a flawless digital experience to end users. Our rate of growth in our products or our opportunity will be only as fast, nimble and viral as the technology experience that is wrapped around it.”

Measuring Success

With any new segment or product launch, success is measured by how the brand or product resonates with the field and customers and, of course, by its sales. With social media and online platforms such as Facebook Live, results can come in well before any sales are counted.

At Scentsy, Thompson and her team track and analyze engagement in many ways, but social media is the most immediate and often the most accurate way to measure the connection and excitement of a new product or the adoption of a new program.

“Our rate of growth in our products or our opportunity will be only as fast, nimble and viral as the technology experience that is wrapped around it.”

– Cami Boehme, Partner and Chief Operating Officer, Viridian

“Even before we start tracking sales, social media lets us know whether our consultants and customers love a new product or program,” Thompson says. “We are deeply connected to our consultants and fans on social media, especially Facebook. Within minutes of announcing a product, program or incentive, they let us know what they think.”

For Boehme, there is only one true indicator of the success of a Viridian launch.

“Sales,” she says.

“That’s it. It may be an overly simplified answer, but it’s the truth. Any other engagement metrics—number of people on calls, number of likes or shares on Facebook, open rates of email communications, number of live chats from your web properties, number of returns or exchanges, number of tweets—are only subsets that make up sales engagement,” she adds.

“Don’t be fooled by a sea of fancy dashboards and data science,” she says. “If sales are up, great. Use those other metrics to continue to refine your plan. If sales are down, you’re not connecting, you’re not resonating. Find out why and fix it.”

Recruiting and Retaining the Field

December 1, 2017 by J.M. Emmert Leave a Comment

Click here to order the December 2017 issue in which this article appeared.

Since 2011, participation in direct selling has steadily increased each year, according to the U.S. Direct Selling Association (DSA).

About 5 million Americans became a part of a direct selling company over the past five years, joining more than 15 million others already in the channel. Worldwide, there were more than 107 million independent representatives in 2016, up 10 million since 2013, according to the World Federation of Direct Selling Associations (WFDSA).

The opportunities the channel offers individuals are as varied as those who participate in direct selling. According the DSA’s latest research, for 800,000 Americans, it is the chance to own their own business; for 4.5 million others, it is the avenue to earning supplemental income working on a part-time basis. Millions more simply desire discounts on their favorite products.

And direct selling companies are developing strategies to keep independent representatives active longer, from engaging more deeply in their first few days and weeks, to providing quick wins in recognition and compensation. The executives say they believe such initiatives will appeal to prospective entrepreneurs on several levels—financially, culturally and philanthropically.

Key Drivers

Dr. Oi-Lin Chen, President and CEO of health and beauty company Sunrider International, believes key factors to recruiting and retaining representatives include company longevity, products and the compensation plan.

“People are attracted to our opportunity because our company has a 35-year history of success and financial stability,” Dr. Chen says. “They like the fact that we self-manufacture our products; they know we stand behind our products. Prospects are always interested in the products you are selling because they are putting their own reputation behind them. They need to feel that the products are effective and consumable, something that customers will keep purchasing.”

Dr. Oi-Lin Chen, President and CEO, Sunrider International
Dr. Oi-Lin Chen co-founded Torrance, California-based health and wellness company Sunrider, with her husband, Dr. Tei-Fu Chen, and oversees daily operations in over 50 countries and regions.

Sunrider recently launched a new compensation plan that, according to Chen, rewards the key behaviors of selling, sponsoring, developing and leading. “If they do the right actions, they can decide how much they want to make,” she says. “The plan has baby steps for new independent business owners (IBOs), so they can achieve success right away—because the first 90 days are the most important to an IBO’s retention. We have a step-by-step training program to help them achieve their goals, so they feel that the business is simple—an opportunity that everyone can do.”

When Wendy Lewis and Randy Ray founded anti-aging skincare company Jeunesse in 2009, they had two very specific reasons for creating the company. First, they wanted to help as many people as possible reach their goals and fulfill their dreams; second, they wanted to help children around the world. Lewis, who also serves as Chief Operations Officer, believes this combination of personal achievement and philanthropy resonates with people universally.

“Essentially, I think people want the opportunity to achieve in a supportive and inspiring environment and the chance to make a difference,” Lewis says. “As an industry, our role is to offer pathways to success and support systems to get them there. In addition to the essentials—viable earning opportunities, training programs and outstanding marketing support tools—key drivers should include intangibles such as creating a strong company culture and embracing a higher purpose.”

Cultural Connections

In 2016, nearly 40 percent of the record 20.5 million Americans who participated in direct selling were minorities, led by Hispanic-American entrepreneurs at 22 percent. Ethnic and minority groups recognize direct selling as an attractive and affordable way to build a business, in a manner of their choosing and conducive to their economic, family and social priorities. Hence, direct selling companies are attracting these first-time entrepreneurs.

“Minority groups sometimes have a hard time finding a good job because of the language barrier and a different environment and culture than they are used to,” Chen says. “We find that they are open to a direct approach about the business opportunity, so we emphasize different aspects of the opportunity, such as financial freedom and connecting to their community locally and globally.”

Wendy Lewis, Founder and Chief Operations Officer, Jeunesse Global
Wendy Lewis co-founded Lake-Mary, Florida-based anti-aging skincare and wellness company Jeunesse with her husband, Randy Ray, after a successful career building and later selling a medical practice management supplier company.

That global connection is of paramount importance to many ethnic and minority group entrepreneurs, as an established, familiar community emboldens them to share the opportunity. “Many of our minority IBOs have families and friends overseas, so they like the fact that we have a global, seamless compensation plan,” Chen says. “They can extend their business around the world. We have bilingual staff dedicated to supporting these specific markets, so they feel like we are ‘speaking their language.’ Our marketing tools and training are all translated into Spanish, Korean and Chinese in the United States.”

As a global company, Jeunesse has found success by taking the time to understand the culture and business practices of each location and by ensuring respected local leaders are in place to manage the market. “The U.S. market is a melting pot of many cultures, and we approach this market in the same manner, taking the time to understand the needs of the unique groups of entrepreneurs that make up this diverse marketplace,” Lewis says.

For example, the company recently launched a market initiative tailored to the Hispanic-American entrepreneur called VIVE Jeunesse, which takes the successful Jeunesse University concept and tailors it to the Spanish-speaking market, with all trainings and tools in Spanish and by the engagement of top Spanish-speaking leaders. This tailored approach helps attract Hispanic-American distributors and gives them the tools and training needed to not only begin, but to continue their Jeunesse journey.

In addition to this initiative, Jeunesse supports other cultural demographics by offering training and marketing materials in several languages. The North America comprehensive training kit, for example, is available in English, Spanish, simplified Chinese and French, and includes training and marketing support tools. In addition, the exclusive Jmobile business management app is available in 22 languages.

Retaining the Field

The direct selling business model is perfectly structured to appeal to people seeking greater autonomy over their working lives. The flexibility offered is one of the biggest reasons people join. Still, companies find themselves looking for new ways to keep new recruits as well as long-term independent representatives.

Lewis shares three ways that help Jeunesse retain its distributors: offering ample training opportunities through hands-on events held regularly around the world, providing marketing tools, and recognizing and rewarding achievement.

“We strive to create a culture, a sense of belonging and a purpose, that keeps the Jeunesse family of distributors engaged and committed to our mission to create positive impact in the world,” she says. “Not everyone who joins the Jeunesse family ultimately decides to stay. But those who do are so united and committed to our mission and our culture. I believe this sense of unity and purpose, coupled with our sincere desire to help them succeed, helps us retain distributors and grow the Jeunesse family around the world.”

At Sunrider, one focus is on helping new IBOs feel confident they can achieve their goal and fulfill their dream; therefore, the company strategy is to help them quickly succeed. In addition to email communication, every new IBO receives a phone call from the company in their first week welcoming them and helping them to set up their business. They can also immediately access the Sunrider training website to get started.

Open communication is another area in which Sunrider invests a lot of time. The business development staff is in constant communication with leaders, including private social media groups where they can immediately raise concerns as well as weekly webinars where they can ask questions.

“Our IBOs need to know that we care about them and support them,” Chen says. “This goes back to personalizing the business experience for them through one-on-one or small group interactions. This is why the personal phone call during their first week is important. They know they have someone at the corporate level they can reach out to.”

The Future of Training

It’s impossible to know what new tools will come down the pike in the coming years, but if past technology breakthroughs are any indication, then they are certain to help direct selling executives better connect with independent business owners everywhere. Breaking down geographic and language barriers, especially to companies with global footprints, is critical to the future of training in direct selling and, ultimately, recruitment and retention efforts.

“In today’s working environment, technology has been instrumental in improving our ability to connect with people, particularly across geographical distances,” Lewis says.

“In order to be effective in training and retaining distributors, connecting is critical. We have been successful connecting our family of distributors through the multitude of live events that happen across the globe on a weekly basis,” she adds. “For a long time, we’ve used technology such as video, conference calls and webinars to connect with distributors. Now we’re using social media, tools like Facebook Live and our Jmobile app to connect with and train distributors across geographic locations in multiple languages.”

While Sunrider still holds in-person training, the company extensively uses social media platforms such as Facebook Live and WhatsApp to conduct training. Private social media groups that are segmented by age, location and rank offer opportunities to discuss personal experiences and share tips. Weekly training webinars are consistently held, and views of them can increase 10 times when posted to Facebook or other social media channels.

“When we create any training, we’ve learned that it needs to be accessible and ‘bite-sized,’ ” Chen says. “IBOs don’t have the patience or attention span for hourslong training anymore. They are always asking us for shorter versions of our videos, and everything must be mobile-friendly now. For the future, we are investing in our own mobile apps and mobile-friendly websites, so training can be accessed from anywhere, and we are also making sure our training supports various language options.”

“It’s exciting to know that there is technology yet to be employed that will help us connect with distributors,” Lewis says. “I believe technologies that minimize the barriers of geographic location and language will be instrumental to offering new tools to communicate with and train distributors in the future.”

Direct Selling Icons

December 1, 2017 by J.M. Emmert Leave a Comment

Click here to order the December 2017 issue in which this article appeared.

While we have chosen to highlight each of the women on the previous pages, we know that the recognition is not complete without mention of the women who opened the door and set the standard for these future leaders. Though we don’t have space to record all of the women who have made opportunities possible for many women, we couldn’t finish this issue without calling out a few. The most notable icons of our channel are featured here.

P.F.E. Albee (1836-1914)

P.F.E. Albee

The very first “Avon Lady,” Persis Albee, began selling perfumes for David McConnell in 1886.

The Historical Society of Chesire County, New Hampshire, relates this story about Albee on their website (www.hsccnh.org):

“With her good business sense, the 50-year-old Persis welcomed the chance to sell perfume as a second career, earning income with which to raise her two children during a time when there were few employment options. The face-to-face direct selling approach relied on Persis’ social skills and her reputation in the community, in addition to the quality and desirability of the products she promoted. Her stature in Winchester added respectability to her door-to-door sales approach. And with her friendly manner, Persis was a welcome sight. It was in this way that Persis pioneered the company’s now famous direct selling.”

Mary Kay Ash (1918-2001)

Mary Kay Ash

Mary Kay Ash had written that in 1963, when a man she had trained was promoted above her and paid twice her salary, she quit her job and planned to write a book about the injustice of it all. The notes, however, became the foundation for her legendary beauty and cosmetics company. Ash’s salesforce was made up of women—an uncommon situation in the 1960s—as she laid the groundwork for hundreds of companies to build upon. Recognition programs, ranging from sparkling tiaras to the famous pink Cadillacs, and compensation plans that included commissions for building teams of salespeople have become core parts of most direct selling companies operating today.

Doris Christopher

In 1980, Doris Christopher decided to start a business from her Chicago home selling high-quality and time-saving kitchen tools. She knew she wanted to utilize the direct-to-consumer model, so that her consultants could demonstrate the tools with real food and share tips through an in-home party that included the guests eating the end results of the demonstration. The company flourished so much that in 2003, investor Warren Buffet made Christopher an offer to buy her company, saying in a press release, “Doris Christopher has created from scratch an absolutely wonderful business. We are delighted to add The Pampered Chef to the family.”

Mary Crowley (1915-1987)

Mary Crowley

After becoming a single parent of two children in the 1930s and putting herself through school, Mary Crowley had pushed herself to achieve success by 1957. She joined her friend and sister-in-law Mary Kay Ash at Stanley Home Products, but when she began selling home accessories for a small company called World Gift, Crowley had discovered her place to shine, growing to have 500 salespeople underneath her. When the owner put a limit on the amount of commission the women’s sales staff could earn, Crowley quit and started her own company that would never limit a woman’s earning potential. Home Interiors & Gifts became a direct selling powerhouse and by the early 1990s had surpassed $850 million in sales. The company was bought in 2009 by Penny and Steve Carlile, who merged it with an existing company they owned. The resulting Celebrating Home is still operating today.

Jan Day (1920-1997)

Jan Day

1956 bore witness to the founding of yet another exemplary company, JAFRA, by Jan Day and her husband, Frank. The company name is a combination of their first names. Jan Day had represented Stanley Home Products as did her successful contemporaries Mary Kay Ash and Mary Crowley, where each had experienced success and seen the power of in-home selling. Remaining committed to the empowerment of women, Day started JAFRA with skincare based on a natural substance produced by bees called Royal Jelly. Gillette bought the successful company in 1973; Vorwerk acquired it in 2004.

Jinger Heath

In 1981, Jinger Heath and her husband, Richard, bought a defunct cosmetics company, BeautiControl, from then-owner Tri-Chem. The Heaths’ tenacity, along with Jinger Heath’s ability to attract women to the business brought the company back to prosperity. She continued to bring new ideas into the company to complement the skincare and cosmetics line such as professional color analysis, total image analysis and product innovations. The Heaths took the company public in 1986 and continued to manage daily operations. Tupperware acquired the company in 2000, but after modest sales in 2006 and 2007, the business started declining. In summer 2017, Tupperware decided to close the business.

Joan Horner (1925-2010)

Joan Horner

Joan Horner and her husband, Andy, spent 17 years working alongside their friend Mary Crowley encouraging the salesforce at Home Interiors & Gifts. Though near retirement age themselves in 1985, the Horners decided to start their own direct selling company to support women who wanted to stay home to raise children, to provide encouragement and extra income for single moms, to provide a way for those in full-time ministry to meet their financial needs, and to give financial support to the many various ministries in which they believed. They decided that jewelry would be their product choice. Premier Designs has fulfilled the Horner’s mission for over 26 years and is still run by the family.

Cheryl Lightle and Rhonda Anderson

In 1987 Rhonda Anderson was a stay-at-home mom who made creative albums for her family out of keepsake photos. She shared her process with her community and took 40 orders for the brand of album she used. When the company was no longer going to produce the albums, she called after hours again and again until then Marketing Vice President Cheryl Lightle finally picked up the phone. Intrigued that someone would want such a large order, Lightle started discussing possibilities with Anderson, and this phone call started what became the largest scrapbook company in the world, Creative Memories. The company closed in 2014 but was purchased by Caleb Hayhoe, a previous business collaborator of Creative Memories who was also a big fan of its passion and culture.

Brownie Wise (1913-1992)

Brownie Wise

Another dynamic woman whose first experience in direct selling was at Stanley Home Products, Brownie Wise steered Tupperware into the home-party arena by convincing the company founder, Earl Tupper, it was the best place for understanding the functions of the containers’ plastic seal. She was appointed Vice President of Tupperware Home Parties in 1951 and led the salesforce with her keen marketing intuition, especially concerning women and social selling in the home.

Wise also pioneered the extravagant rewards and recognition system now common among direct selling companies, giving top sellers at Tupperware such items as speedboats and exotic trips. Her intuition about recognition systems appealed to women and led her to become the first woman featured on the cover of Business Week magazine in 1954.

Vorwerk’s Thermomix Wins Top German Marketing Award

December 1, 2017 by DSN Staff Leave a Comment

Vorwerk, the Wuppertal, Germany-based seller of household products, won top honors during the recent 44th German Marketing Day. The company received the German Marketing Award 2017 for its Thermomix product, which was first introduced in the 1970s.

Thermomix’s overall marketing performance, sales and customer interaction across all communications channels helped it to beat out contenders Check24, Edeka, Hornbach and Rügenwalder Mühle in the final.

The Thermomix features the capabilities of multiple kitchen appliances. It can cook, weigh, blend, grind and chop. Vorwerk first launched the appliance in 1971. It was the first heatable, multi-functional kitchen mixer. Chef Dieter Müller praised the all-rounder as “one of the most important kitchen appliances since the invention of fire.”

Vorwerk representatives sell Thermomix through the party plan method. The main markets for the mixer are in Europe—Italy, Spain, Germany, France, Portugal and Poland—although the product is also sold in Taiwan and Mexico.

Thermomix is one of four direct selling segments of the Vorwerk family of products. The others include Kobold home care appliances, Lux Asia Pacific vacuum cleaners and water purifiers, and JAFRA Cosmetics, which was acquired by the company in 2004.

Herbalife and Tasly Holding Group to Form HT Innovations LP in U.S. as Joint Venture

November 30, 2017 by DSN Staff Leave a Comment

To further advance healthier living through good nutrition, global nutrition company Herbalife Nutrition announced it has entered into a framework agreement with Tasly Holding Group, a Chinese healthcare corporation.

Herbalife CEO Rich Goudis, CFO John DeSimone and Chairman of Herbalife China Dr. Qun Yi Zheng joined Chairman of Tasly Holding Group Xijun Yan, Executive Chairman Kaijing Yan, CFO Fucai Pei and General Manager of International Strategic Investment and M&A Dr. Lei Gao for the signing ceremony of a framework agreement. This agreement, pending approval by the Chinese regulatory agencies, will lead to the formation of a joint venture between Herbalife Nutrition and Tasly in the United States.

The joint venture is anticipated to create a conduit to develop and commercialize consumer health products based on Tasly’s portfolio of formulations, patents and clinical studies, while leveraging Herbalife Nutrition’s scientific, regulatory and commercial development expertise. Moreover, Herbalife expects its worldwide network of independent distributors to provide an opportunity to bring the joint venture’s products to a global market.

“We are honored to form a joint venture with Tasly, a leading developer of health products and services in China,” said Goudis. “Our philosophies of improving the wellness of our communities are completely aligned, and we expect this new joint venture will significantly expand the distribution of important nutrition products around the globe.”

Herbalife began China operations in 2005 and now operates three facilities in Nanjing, Changsha and Suzhou, currently producing 60 million units annually. The company is licensed to operate in 28 provinces, employs more than 1,300 people in China, and has approximately 60,000 service providers and approximately 270,000 sales representatives.

“We believe the combination of Tasly’s research and development capabilities, clinical trial skills and Herbalife’s global distribution network outside of China, along with the two firms’ high-end quality control standards, will bring the best health products to consumers,” said Kaijing Yan.

Incorporated in 1994, Tasly Holding Group is a high-tech healthcare corporation with headquarters in Tianjin, China, with a company philosophy of “seeking for harmonization between human and nature, and improving humankind’s life quality” and a company mission “to share the joy of health with all.” Tasly Holding Group conducts several businesses under its subsidiaries, including pharmaceuticals, pharmacies, health services and health management, and consumer health products. Tasly has also created an industrialized platform for product innovation and digitalized intelligent manufacturing. The company has more than 20,000 employees worldwide.

Melaleuca Pays $2.8 Million in Longevity Bonuses to 230 Employees

November 30, 2017 by DSN Staff Leave a Comment

Melaleuca, the Idaho Falls, Idaho-based wellness company, recently rewarded 230 employees who have reached landmark anniversaries this year by giving them $2.8 million in loyalty and longevity bonuses during the company’s annual meeting. These bonuses were distributed to 180 employees from Idaho Falls and Rexburg, Idaho; 45 from Knoxville, Tennessee, three from Hawaii and two from Puerto Rico.

Melaleuca pays $5,000 on a five-year anniversary, $10,000 at 10 years, $15,000 at 15 years, $20,000 net (which is a total payment of $33,000) at 20 years, $25,000 at 25 years and $30,000 at 30 years.

In total, Melaleuca has paid $23 million since instituting the program in 2007. This bonus is for all full- and part-time employees, regardless of position or pay level, and an employee’s length of service is the only qualification.

This year, 28 employees received $25,000 checks; 16 received a $20,000 net check ($33,361); 27 received $15,000 checks; 88 received $10,000 checks; and 71 received $5,000 checks.

“I think it’s great that we’re going through life together,” Melaleuca CEO Frank VanderSloot said while handing out checks to the 25-year employees. “It’s important to reward the people who have built Melaleuca, and this bonus serves as a token of our appreciation for their years of dedicated service.”

VanderSloot created the loyalty and longevity bonus program so every employee who spends their career with Melaleuca can have in excess of $1 million in the bank when they retire from Melaleuca.

“It’s our goal that all Melaleuca employees will retire as millionaires,” VanderSloot said.

LifeVantage Legacy Continues to Support Hurricane-Affected Areas

November 28, 2017 by DSN Staff Leave a Comment

Following Hurricanes Harvey, Irma and Maria, LifeVantage Corp. focused its philanthropic efforts toward delivering critical supplies and money to distributors and residents in the affected areas in Texas, Florida and The Caribbean, among others.

“LifeVantage Legacy has a long history of helping people when and where they need it most,” said Michelle Oborn, Senior Vice President, Human Resources. “As soon as the hurricanes started making landfall, we knew we had to help. The first step was identifying some of the greatest needs on the ground. We wanted to send the right kind of help and give people the supplies that they desperately needed.”

In the hours following Hurricane Harvey, LifeVantage corporate headquarters converted LifeVantage Legacy’s donation page into a hurricane fundraising vehicle, and hundreds of distributors sprang into action, raising more than $20,000—a sum that headquarters matched.

“It was amazing to see our distributors rally to support each other, as well as complete strangers who were affected by the hurricanes,” said LifeVantage President and CEO Darren Jensen. “There’s a lot of good in this world, and we built LifeVantage Legacy to bring some of that good front and center.”

To date, the funds raised by LifeVantage Legacy have provided living expenses and basic critical needs, including solar power, clean water, medical and hygiene supplies, and food. And because thousands of Puerto Ricans remain without power or access to clean water, LifeVantage has announced that it will continue providing supplies and financial support.

Kids In Need Foundation and Thirty-One Gifts Host Teacher Shopping Day

November 28, 2017 by DSN Staff Leave a Comment

The Kids In Need Foundation (KINF) has partnered with Thirty-One Gifts to present a special “Thirty-One Gifts Teacher Shopping Day” event benefitting teachers and students across the state of Florida on Thursday, Nov. 30, at various Kids in Need Foundation Teacher Resource Centers throughout the state.

The event, which was also held on Nov. 16, will provide approximately 20,000 Thirty-One Gifts backpacks (valued at $1.03 million) filled with school supplies for students to teachers across Florida who were affected by Hurricane Irma. KINF will distribute all 20,000 backpacks through their network of resource centers to help these teachers move forward following the hurricane.

KINF works to ensure every child is prepared to learn and succeed by providing free school supplies nationally to students and teachers most in need. During the recovery period following a devastation, KINF’s Second Responder program works with local authorities, schools and select sponsors to help communities, students and educators return to normal routines.

“We want to thank Thirty-One Gifts for their generous donation of backpacks, and for partnering with us to host ‘Thirty-One Gifts Teacher Shopping Day,’” said Dave Smith, Executive Director of The Kids In Need Foundation. “A natural disaster can have a tremendous impact on schools and those teaching in them. We are honored to help restore a sense of normalcy to these Florida teachers and students, by providing school supplies they so desperately need.”

“We’re very pleased to be able to support the teachers of Florida who’ve been affected by the hurricane,” said Thirty-One Gifts Founder and CEO Cindy Monroe. “Two of our greatest values are giving back to communities where our independent sales consultants live and work, and partnering with nonprofits that support and strengthen girls, women and families. We have thousands of sales consultants in Florida, and this outreach is a great match for us. We feel blessed to be able to share our good fortune with teachers at this time of need.”

The Kids In Need Foundation, a national 501(c)(3) charitable organization founded in 1995, has distributed more than $900 million in school supplies, directly benefiting 5.4 million students and nearly 200,000 teachers annually.

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