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Conferences Show Strength in Direct Selling and Boost Local Economies

September 13, 2012 by DSN Staff Leave a Comment

Over the last week, several companies hosted their conferences, meetings and annual conventions with record attendance and great impact on local economies.

BusinessWire.com reported that Ambit Energy, No. 1 “Fastest Growing Private Company” on the prestigious Inc. 500 list for 2010 and national retail energy leader, held its 6th Annual Conference, “Ambition 2012: Take Charge.” More than 9,000 Independent Consultants representing 32 states from Alaska to New York filled both the Hilton Anatole and the American Airlines Center over a span of five days starting on August 29.

The article also stated that “This conference created an estimated $10,000,000 in economic impact for the City of Dallas in terms of lodging, transportation, food and entertainment. The company has also recently signed an agreement with the Dallas Convention and Visitors Bureau to host the annual event in Dallas for the next three years.”

Other notable events this past week included Vollara’s annual convention in Dallas; The Limu Company, which has been experiencing exponential growth hosted their largest group ever in New Orleans; and Mona Vie also electrified its field with marquee speakers like John Maxwell this past weekend.

For years, experts have agreed that meetings and conventions help spark direct sales businesses.  Conventions give distributors a chance to connect personally and business-wise, sharing best practices, tips and tools for success. Conventions also help companies further define themselves by launching new products, tools and bonuses.

Ambit used their event to announce new markets, major recognition and some very high profile giveaways:

  • Pennsylvania Expansion to include Met Ed, Penelec, Penn Power and West Penn Power for Residential and Small Commercial coming in January 2013
  • Illinois Expansion to include Southern Illinois, Ameren Electric, Residential and Small Commercial coming November 2012
  • New Market – Chicago Gas – Peoples Gas and North Shore Gas Residential and Small Commercial coming September 2012
  • New Market – California – California Gas, Pacific Gas and Electric Gas, Residential and Small Commercial coming September 2012
  • Recognized three $5 million earners and twelve $1 million earners
  • And multiple door prizes estimated at $100,000, which included: a new Harley Davidson motorcycle, a new Cadillac XTS, multiple iPads and more than $25,000 in cash awards.

To read the entire article about Ambit on BusinessWire.com, please visit: http://www.businesswire.com/news/home/20120906006682/en/Ambit-Energy-Hosts-9000-6th-Annual-Conference

Filed Under: Feature Articles

Why is the Gen Y Crowd Dropping Out of the Job Market?

September 12, 2012 by DSN Staff Leave a Comment

The drop in August’s unemployment rate isn’t particularly good news for the economy—it’s driven mostly by nearly 400,000 people dropping out of the labor force, rather than more people finding jobs.

But those dropping out aren’t so much the discouraged 30-, 40- or 50-year-olds. In fact, the Labor Department said there was a modest decline in the overall number of discouraged job seekers.

The drop is because so many young adults—ages 16 to 24—are no longer looking for work.

There were 453,000 fewer young adults with jobs in August than in July. But despite that plunge, only 27,000 more young people were looking for new jobs. Most apparently stopped looking and left the labor force.

As a result, the percentage of young people who are counted in the labor force fell to its lowest level since 1955. And the unemployment rate for young adults rose to 16.8 percent from 16.4 percent in July.

We are seeing a slow increase in the number of young adults—especially in the 18-25 age group—who migrate towards direct selling opportunities. What we’ve found is that working for themselves provides a level of freedom that this generation is accustomed to, having grown up with technology and information just a click away. While buzz words like “work-from-home” and “network marketing” are not necessarily attractive to Gen Yers, “schedule flexibility,” “personal business scalability” and “creative social networking” are very attractive to this generation. Once direct selling companies embrace some of the key sought after attributes of the Gen Y crowd in their business strategy and representation, we will surely see an increase of this trend out of the job market into the personal business “work for myself” realm.

More on this topic can be found here.

 

Filed Under: Feature Articles

Medifast on FORTUNE’s Top 100 Fastest-Growing Companies List

September 10, 2012 by DSN Staff Leave a Comment

Medifast

Every year FORTUNE Magazine posts its annual list of movers and shakers, called the Top 100 Fastest-Growing Companies.

It’s easy to understand why companies like Apple and Cirrus Logic are leaders on this prestigious list. Looking down the list we found something great for the direct selling industry—recognition of Medifast as No. 46 on the list. Medifast is a manufacturer and provider of clinically proven, portion-controlled weight-loss products and programs and parent to Take Shape for Life. According to FORTUNE’s report, over a 3-year average Medifast realized 40 percent revenue growth, 59 percent profit growth and a 20 percent total return. For fiscal year 2011, revenue increased by 16 percent to $298.2 million over the previous year.

To qualify, a company—domestic or foreign—must be trading on a major U.S. stock exchange; report data in U.S. dollars; file quarterly reports with the SEC; have a minimum market capitalization of $250 million and a stock price of at least $5 on June 29, 2012; and have been trading continuously since June 30, 2009. Companies must have revenue and net income of at least $50 million and $10 million, respectively, for the four quarters ended on or before April 30, 2012; and have posted an annualized growth in revenue and earnings per share of at least 20 percent annually over the three years ended on or before April 30, 2012.

Companies that meet these criteria are ranked by revenue growth rate; EPS growth rate; and three-year annualized total return for the period ended June 29, 2012. (To compute the revenue and EPS growth rates, FORTUNE uses a trailing four quarters log linear least square regression fit.)

The overall rank is based on the sum of the three ranks. Once the 100 companies are identified, they are then re-ranked within the 100, using the three equally weighted variables. If there is a tie, the company with the larger four-quarter revenue receives the higher rank.

Excluded are real estate investment trusts, limited liability companies, limited partnerships, business development companies, closed end investment firms, companies about to be acquired, and companies that lost money in the quarter ended on or before April 30, 2012. In addition, FORTUNE excludes companies that have announced intentions to restate previously reported financial data, if these errors appear to have a significant impact. Also, FORTUNE excludes companies that lost money in the quarter ended May 31 or June 30, if the loss represents a deterioration in business conditions. The data are provided by Zacks Investment Research. The data process was aided by information provided by S&P Capital IQ, Hoover’s; Thomson Reuters, and Morningstar Document Research.

Congratulations to our friends at Medifast!

See the entire list and details on each of the companies here.

Filed Under: Feature Articles

Direct Selling Beauty Giants Expanding Their Base in India

September 7, 2012 by DSN Staff Leave a Comment

Two of the world’s largest and most well-respected Direct Sales beauty product companies are investing in expansion in India.

Mary Kay India announced the opening of its new office in Ludhiana. The company said they wanted to establish a presence throughout the entire country over the next two years and plans to invest $20 million in the country over the next five years.

Avon India is planning to invest $8 million to build a second manufacturing plant in the country. The new plant will be built over the next three years and will be in addition to the plant the company has in Dehradun with an annual production capacity of 50 million units.

India is one of the fastest-growing economies in the world. Over the past decade, the gross domestic product (GDP) and per capita income has grown at an average annual rate of 7 percent and 5 percent, respectively. By 2015, with a projected GDP of $2.18 trillion, India is expected to be the 11th largest economy in terms of GDP based on the market exchange rate and the fourth largest in terms of purchasing power parity. In 2007, India was ranked the 12th largest consumer market in the world and it is expected to be the fifth largest consumer market by 2025 after the United States, Japan, China and the United Kingdom.

According to the Indian Direct Selling Association, the number of direct sellers in India has almost doubled between 2004 and 2009. In terms of the number of direct sellers, India ranked 11th among the top direct selling countries in 2009-2010.

For more about Direct Selling in India, click here.

 

Filed Under: Feature Articles

What Happened at Harper’s?

September 7, 2012 by John Fleming Leave a Comment

 Pseudo-journalism perpetuates direct selling misperceptions through mass media.

Junk journalism has been in existence ever since German inventor Johannes Gutenberg created a printing process that allowed the mass production of books, pamphlets and magazines. The year was 1440. His invention changed the speed of communication, enabling a transfer of information of all sorts in print format. The printed word—the foundation of journalism—remains a favorite way of accessing information for many throughout the world. Fortunately for the human race, the printed word has enabled a transfer of positive knowledge that has facilitated understanding of some of the most complex subjects as well as the reporting of news and events. Storytelling through the printed word has also entertained us for hundreds of years, leading to the well-accepted categories of fiction and nonfiction. The category of fiction can include just about anything that a person desires to write about and, as we know, some fiction stoops to the lowest level of how the printed word is used.

The Harper’s Magazine August 2012 cover story about Mary Kay Cosmetics is an example of purported journalism at its lowest. “Junk journalism” is actually too kind a phrase, in my opinion, for the story written and published as a report under the title, “Pink Pyramid Scheme—How Mary Kay Cosmetics Preys on Desperate Housewives.” The very first sentence gives the reader a clue as to where the writer will go with the story:

“I met my first Mary Kay ladies at a beauty school wedged between a liquor store and an offtrack betting parlor on the backside of a strip mall near Poughkeepsie, New York.”

The article goes on to further describe the writer’s personal experience with a few Mary Kay consultants. The article is not a report, as it is touted, nor is it objective research by any means. After reading the first sentence I found myself in constant disbelief that this was a cover story in Harper’s, a magazine with a great history that I enjoy reading. This is anecdotal storytelling masquerading as investigative reporting. The story details encounters with a few ladies who have experienced less than what they may have envisioned when they became Mary Kay consultants. Well, what else is new when it comes to the expectations any of us might have regarding the many decisions we make in an effort to live in pursuit of enjoyment for work, happiness and peace of mind?

Mary Kay

Mary Kay Among Top 20 Brands that Create Customer “Delight”

Measureable data exists in the cosmetics industry and in brand awareness that should have been referenced and included in a recent Harper’s Magazine cover story on Mary Kay Cosmetics if it were to be a true “report.” Below is one instance of verifiable data available to any journalist.

Brand Keys Inc., a consultancy firm with headquarters in New York, measures customer loyalty and engagement with various brands. The firm publishes an annual Customer Loyalty Engagement Index (CLEI), which in 2012 looked at 598 big brands in 83 diverse categories.

Notably, the Advertising Research Foundation (ARF) conducted a comprehensive review in 2006 on the methodologies developed by Brand Keys Founder and President Robert Passikoff for measuring a customer’s loyalty to a brand and predicting their future behavior concerning purchases. The report found the Brand Key’s method to provide “reliable metrics for assessing brand engagement and brand loyalty.” (First Opinion, An ARF Research Review of Brand Keys’ Brand Engagement Measurement Methodology, by William A. Cook, Ph.D., published by the Advertising Research Foundation (ARF), Jan. 30, 2007, p. 7).

Passikoff says, “Brand value has increasingly been defined not through the narrow lens of price, but in terms of the total experience that consumers have when they interact with a given brand.”

Understanding that this survey measures the real experiences and expectations that consumers have with their brands, we find it compelling that Mary Kay Cosmetics repeatedly is ranked among the top brands, not just in the specific arena of cosmetics, but as a brand that delights consumers and meets their expectations of an authentic and engaging experience.

The following is a direct lift from the Brand Keys press release, dated Feb. 6, 2012:

While expectation levels for delight vary by category, the Top 20 Brands, best at creating customer delight, are:

1. Apple (tablets)
2. Apple (smartphones)
3. Amazon (e-retailer)
4. Kindle (e-reader)
5. Facebook (social networks)
6. Hyundai (automotive)
7. Samsung (cellphones)
8. Discover (credit cards)
9. YouTube (video streaming)
10. Google (search engine)
11. Call of Duty (gaming)

12. Mary Kay (cosmetics)

13. McDonald’s (quick-serve food)
14. Haagen Dazs (packaged ice cream)
15. Patron (tequila)
16. Grey Goose (vodka)
17. Crest Whitestrips (tooth whiteners)
18. Walgreen’s (drug stores)
19. Clairol (hair color)
20. AT&T (wireless phone service)

There are only a few facts shared in the Harper’s cover story relative to the origins of Mary Kay and the current size of the company. According to the article, the company’s salesforce has doubled since 2003 to more than 2 million consultants (DSN reports 2.4 million) in 34 countries (DSN reports 35 countries) and $3 billion in revenue. The story is primarily an anecdotal telling of the writer’s viewpoint of the negative experiences of a few ex-consultants, providing no information from a different point of view.

In addition to leaving out any data support, the writer also quotes a self-described and titled financial-fraud investigator relative to subjective interpretations of how much money is being earned by Mary Kay’s highest-earning sales consultants. Most revealing is the lack of research and authenticity of the writer’s approach in the statement made by someone who clearly has no data and no respect for the 2.4 million+ Mary Kay consultants who have chosen to build Mary Kay businesses: “Almost everyone loses money,” [the investigator] said. “Most of those who do profit are making about minimum wage.”

The tagline of the article published by Harper’s portrays Mary Kay consultants as desperate housewives. To even use the phrase “desperate housewives” is more than an insult to the millions of Mary Kay consultants who have become role models in their families and communities all across the United States and in 35 countries where free enterprise and a focus on the personal development of women are embraced and applauded. By publishing this article, Harper’s actually participates in insulting every Mary Kay consultant who has learned from their experience and gained in self-esteem, personal development and business knowledge.

The article also ignores the many different reasons why a Mary Kay consultant chooses to build her business. The direct selling model allows each individual consultant to define their own level of success. Some make more money than others, but most are grateful that no one tells them what they cannot do. Harper’s also appears to ignore the consequences associated with perpetuating this particularly negative bias. Direct Selling News, which conducts the most credible ranking of direct selling companies in the world, reported Mary Kay Cosmetics, founded in 1963, as the sixth-largest direct selling company in the world and the No. 1 party plan company in the global direct selling industry, which is estimated by the World Federation of Direct Selling Associations (WFDSA) to generate over $153 billion in retail sales worldwide.

So what are some of the facts and data that Harper’s overlooked in this story? Behind the scenes at Mary Kay the most competent in professional ranks can be found, from marketing and sales to legal, research, manufacturing and distribution and all forms of administration. Over 5,000 employees support the global salesforce. The executives at Mary Kay have designed and implemented multiple programs in support of both its salesforce and end customers. Specifically, Mary Kay pioneered the Preferred Customer Program in direct selling, and in the last quarter alone, added 3.2 million customers to their database.

But even more compelling evidence that Mary Kay enjoys a high level of satisfaction among many consultants and customers are the results of the 2012 Customer Loyalty Engagement Index (CLEI) conducted for its 16th year by Brand Keys Inc. Surveying 49,000 consumers ages 18 to 65, Brand Keys concluded that consumers’ “key brand expectation” is that brands will not only engage them, but “delight” them and provide them with an “authentic experience.” According to this survey, included among the Top 20 Brands that provide this “delight” are Apple, Amazon, Kindle, Google and Mary Kay (see sidebar).

In individual categories, the survey also names Mary Kay as the No. 1 brand in Cosmetics,  beating out strong retail names such as Sephora, L’Oreal, Cover Girl, Max Factor, Revlon, Neutrogena, Almay and Coty, and No. 3 in Facial Moisturizers, ahead of Ponds, Oil of Olay, Neutrogena and Nivea. Clearly, the facts are that Mary Kay competes for market share with the best and largest of brands. This is the result of millions of women who are choosing and often loving the opportunity to share special products in more of a social selling manner. The company calls it party plan. Direct selling, as an opportunity available to all people regardless of walk of life, past experience or inexperience, or even age, levels the playing field, especially during this most challenging period when jobs are shrinking and people are needing opportunities!

As we now know, even major publications can miss doing their homework. The result, a pseudo-journalist gains the opportunity to spread a biased opinion through mass media, in this case Harper’s. Harper’s has served a clientele of readers for many years. I personally enjoy much of the content and respect its amazing track record. However, in August 2012, Harper’s got it wrong!


John FlemingJohn Fleming is the Publisher and Editor in Chief of Direct Selling News.

Filed Under: Feature Articles Tagged With: Desperate Housewives, Direct Selling, DSN, Harper’s, Harper’s Magazine, Johannes Gutenberg, Junk journalism, Mary Kay, Mary Kay Cosmetics, MLM, Multi-Level Marketing, Pink Pyramid Scheme—How Mary Kay Cosmetics Preys on Desperate Housewives, Pseudo-journalism, pyramid scheme

Amazon Herb Merges with TriVita Inc.

September 4, 2012 by DSN Staff Leave a Comment

TrivitaMichael R. Ellison, CEO and Founder of TriVita Inc. announced today that final documents were executed to officially merge Amazon Herb Company (AHC) with TriVita, a 13-year-old international wellness company based in Scottsdale, Ariz. AHC was founded in 1990 by John Easterling to help the world recognize the health benefits of Amazon Rainforest botanicals, and now Easterling and his wife, four-time Grammy Award-winning singer and actress Olivia Newton-John, will continue to work directly with TriVita post-merger to advance the company’s wellness mission offering a full spectrum of quality natural health products and skincare formulas to consumers around the world.

“ ‘Amazon John’ and Olivia have a genuine passion for wellness and the sustainability of the rainforest. They will join TriVita’s mission of taking wellness to the world as we develop a worldwide community of wellness seekers,” says TriVita’s CEO and Founder Michael R. Ellison. “This merger will be the most advantageous way to promote TriVita’s mission, vision, values and goals.”

Having spent the last 22 years in the Amazon Rainforest and building AHC, Easterling was looking for the perfect company with which to ally. “I made a personal commitment to our leadership to find a dynamic partner that appreciates our Rainforest products and is genuinely sincere about our Rainforest mission,” he says. “Michael Ellison is a man of integrity and purpose whose vision is to help people experience wellness.” Moving forward, Easterling will create new product formulas for use in TriVita’s global media efforts. 

Newton-John is also eager to share her excitement about the merger. “John and Michael are two great visionaries who have dedicated their lives to making a real difference in the lives of others,” she says. “I am absolutely thrilled to see the synergy created by these two great companies.” Newton-John will also be featured alongside her husband in TriVita’s international multi-media advertising designed to expand the company’s global wellness mission by leveraging the power of media. “The power of media has obviously had a profound impact on my career,” she adds. “I have also experienced the power of Amazon Herb products developed by John to sustain my health and energy as I traveled worldwide. I believe joining with TriVita is going to give John and me the opportunity to share our story through both traditional and online media.”

Founded in 1999, TriVita is a member of the DSA and now distributes superior-quality wellness products to 14 countries worldwide with regional corporate offices in Sydney, Australia; Hong Kong and Vancouver, Canada. TriVita’s flagship product, Nopalea, is an anti-inflammatory wellness drink made from the fruit of the Nopal cactus found in the Sonoran Desert in the United States. TriVita expanded into 10 new countries in 2011 and was recognized this year as No. 70 on DSN’s Global 100 list of the top direct-selling companies in the world.

More information on TriVita can be found on their website at www.trivita.com.

Filed Under: Feature Articles

Direct Selling on the Rise in Poland

September 4, 2012 by DSN Staff Leave a Comment

FlagThe Direct Selling industry is growing in Poland. Recent reports showed an increase of 1.3 percent year over year in 2011 to €585.4m. Cosmetics and personal-care products accounted for 69 percent of the revenues of companies affiliated with the Direct Selling Association of Poland (PSSB). The year before this the category held 70 percent while a European Union average in 2010 stood at 38 percent. The second-largest value share in the Polish direct sales market was household appliances, which generated 13.4 percent of the overall direct retail sales in the country, marking a 3.4 percent increase year over year. OTC medicines and dietary supplements accounted for 11.6 percent of direct sales in Poland in 2011 and grew at 3.1 percent on a yearly basis. Approximately 870,000 individuals were involved in direct sales in Poland last year, of which 88 percent are women.

Companies operating on the market employed about 1,497 people, and 96 percent of the revenues came from person to person sales. Companies on the direct sales market include Amway, Avon Cosmetics, Forever Living Products, Herbalife, Mary Kay Cosmetics and Oriflame. Poland is the fifth-largest direct sales market in Europe after France (€3.7bn), Germany (€2.7bn), Italy (€2.4bn), and Great Britain (€1.4bn).

Filed Under: Feature Articles

Executive Connection with Lia Keeping, VP of Sales for North America, Jockey Person to Person

September 1, 2012 by DSN Staff Leave a Comment

Lia

In this month’s Executive Connection, Direct Selling News Publisher and Editor in Chief John Fleming speaks with Lia Keeping, Vice President of Sales for North America at Jockey Person to Person, about leadership, growing a business and adding that personal touch with employees and the field.

DSN: What is the one thing you enjoy most about being the one of the top executives at Jockey Person to Person?

LK: Being able to give the women in North America a future in Jockey Person to Person—helping our Comfort Specialists and leaders benefit. Growing the business is my No. 1 passion. It’s personally so rewarding to see some of the incomes that these women are making. The second thing I enjoy is just working here at Jockey. The culture at Jockey is incredible. We have very open people. It’s a fabulous place to work, and it’s because of Debra and Ed [Jockey CEO Debra Waller and International President and Chief Operating Officer Ed Emma]. Some people at Jockey have been here 30 and 40 years, and their parents were here before them! Once you become part of the Jockey family, you can see why that is. It’s a very kind and gentle place to work. Friendly, open, helpful. It’s just been an amazing experience.

DSN: What has been your proudest accomplishment?

LK: One of my proudest accomplishments has been when the Executive Committee and The Board of Directors for Jockey International realized that Jockey Person to Person and direct selling was a viable business option. From 2008 to date our sales have quadrupled and we are the “fastest growing division” at Jockey International.

DSN: What do you tell Jockey Person to Person’s Comfort Specialists to lead and inspire them?

LK: I show them living examples of what is possible. We have women who in a short period of time have become very accomplished and are making amazing commissions. I tell them never to let fear stop them from being successful. And I use my own example: When I started in direct selling years ago, I did so because I needed grocery money. I was so shy and nervous, I broke out in shingles. I didn’t sell to people. I sold to shoes. I couldn’t look people in the eye. And look what happened over the years! I find generally speaking that people are good and want to help each other. I tell them that they have nothing to fear, so get out of your own way.

DSN: What is your vision for Jockey Person to Person?

LK: The top level of our compensation plan is Group Vice President. Right now we have four of them. I want to see hundreds of women at that level! It’s totally possible, and it’s starting to happen. I want Jockey Person to Person in every state. We’re not yet represented that broadly. We’re not a brand-new direct selling company, but this is still a ground-floor opportunity.

DSN: If you could relive one period of time—a year, a week, whatever—since you’ve been at Jockey Person to Person, what would it be? You could choose a great time to relive or a period where you’d change something.

LK: I think it would be when my husband and I moved from Canada to the U.S. and how wonderful we found it to be—not just at Jockey. We’ve only lived here four years, but this has really become our home and we’re very happy here. Even though companies are similar, you’re never sure whether you’re going to fit in, but we’ve loved the experience. Also, the first convention we held here. We did a small conference where we brought the Canadian team to meet the U.S. team in late October 2008. We already had emerging leaders, and they got to meet their U.S. counterparts. It was rewarding to see the two countries coming together as one company. There are no borders in how we treat the women.

DSN: What’s been the most fun?

LK: In my former position I traveled every nook and cranny in Canada. Now I’m getting to explore the U.S. and see lots of new cities—places I’ve never been before. It’s also been a lot of fun to work with the design team on the collection.

DSN: Is there one basic principle which has governed your leadership at Jockey Person to Person?

LK: No matter how big we get, I want it to feel like we’re a small company. I really believe in the personal touch. I do a lot of personally recognizing women with phone calls, emails, Facebook postings. I really believe in making every sales person feel that they matter.

DSN: What do you see as our industry’s greatest challenge?

LK: One of challenges in the party plan part of direct selling is competing for women’s time. It’s one of our biggest challenges. Women are busier now more than ever. The time crunch is a challenge, but we’re a very resilient industry, a very innovative industry, and we’re working to help women be successful through things like online ordering, virtual parties and casual parties.

DSN: In your years in direct selling, what lesson have you learned that has proved to be especially useful?

LK: My most valuable lesson—well, there are two really. First, never prejudge anybody. That’s just critical in life but also very much so in our business. I always like to say that direct selling is an equal opportunity for everyone. It doesn’t matter where you come from; you can have success in direct selling if you work the plan. Second is the value of making everyone you come in contact with feel important, that they matter.

DSN: What do you like to do when you just want to relax?

LK: I relax on the golf course. My husband and I are avid golfers. I like the sport because you can’t be a good golfer and think about anything else. In winter, it’s working out at the gym.

 

 

Filed Under: Exclusive Interviews

Service with a Smile

September 1, 2012 by DSN Staff Leave a Comment


Click here to order the Direct Selling News issue in which this article appeared.


DSN SEPTEMBER 2012

The services side of the direct selling industry has plenty to smile about. Providing services from energy to travel and everything in between, these distinctive direct selling businesses are booming—even in the face of a sluggish economy.

In fact, the entire U.S. service sector is experiencing a surprising upsurge. Service companies, which employ roughly 90 percent of the American work force, enjoyed their 29th straight month of expansion in May 2012, according to the Institute for Supply Management survey. (The I.S.M. survey covers all service sectors outside of manufacturing, including financial services, health care, hotels, construction and retail.)

“I would say that the direction of today’s economy in general is toward a service economy,” says Glenn J. Williams, President of Primerica Financial Services. “We see that more and more, and the direct selling industry is just a reflection of that.”

How are service businesses gaining steam despite a struggling economy? “Regardless of what is going on in the economy or in the world around us, consumers aren’t willing to give up services such as wireless, television, gas and electricity. It just doesn’t happen,” explains Greg Provenzano, President and Co-Founder of ACN Inc., a direct selling telecommunications company that spans 23 countries across North America, Europe, Asia and the Pacific.


“I would say that the direction of today’s economy in general is toward a service economy.”
—Glenn J. Williams, President, Primerica Financial Services


The statistics certainly prove him right. Recent studies show that even in today’s tumultuous economic environment, service companies in an array of fields continue to develop, expand and grow. For example, the World Travel & Tourism Council (WTTC) forecasts that the travel and tourism industry will directly contribute $2 trillion in GDP and 100 million jobs to the global economy in 2012. Mike Azcue, Co-Founder and CEO of the travel company WorldVentures, says he is committed to providing a “one-of-a-kind experience” for those millions of travelers, combining the experience with convenience and value. Azcue says, “WorldVentures has become the world leader in the growing global market for curated group travel—thoughtfully pre-planned excursions.”

But travel isn’t the only service industry that’s burgeoning. The global legal services industry will mushroom to $647 billion by 2015, according to a 2012 report by Global Industry Analysts Inc. Also, worldwide telecommunications services revenue is projected to increase from $2.1 trillion in 2012 to a whopping $2.7 trillion in 2017, according to The Insight Research Corp. And driven by growth in energy-efficient buildings, the global energy service company market will more than double to $66 billion by 2017. The list goes on and on.


“The services side of the direct selling industry provides a ‘product’ that everyone still needs or uses, regardless of the economic situation.”
—Angela Chrysler, President and CEO, Team National


Of course, this explosion in the service sector is directly fueling service businesses in direct selling. “The services side of the direct selling industry provides a ‘product’ that everyone still needs or uses, regardless of the economic situation,” says Angela Chrysler, President and CEO of Team National, a direct selling company offering a wide variety of services, including benefits packages, financial services and telecommunications.

The down economy has actually fostered the growth of the service sector, according to Craig Jerabeck, CEO of 5LINX Enterprises Inc., a direct sales provider of security systems, telecommunications, energy, credit card processing and a range of other essential home and business services. “We offer essential products and services, such as telecommunications, Internet, energy and many more services home owners and businesses need every day, and we do it at or below market prices,” he says. “In an era of belt-tightening, consumers cannot afford to pay a premium for products that they can buy at discount retailers, which hurts the product-oriented companies.”

Kerry Breitbart, Co-Founder and CEO of North American Power, adds that consumers simply cannot live without certain services in this day and age. “The product side of the [direct selling industry] offers many wonderful and unique products, but more often than not, they’re not products people really need to have,” he explains. “And they’re certainly not a purchase that consumers would be making anyway. Nine times out of 10, in the services industry—and particularly in ours, where we’re selling electricity and natural gas—these are bills that the consumers have to pay anyway. So it’s a much easier sell if you’re offering savings, particularly in this economy.”

Chrysler points out, “Services are widely used so they have mass appeal.” She explains that consumers are less likely to cut many of these must-have services, even when they’re on a shoestring budget. “Consumers are more likely to decrease the use of other items or activities before services.”

Provenzano, reflecting that sentiment, says, “The products and services ACN offers aren’t about luxury or indulgence; they are absolutely essential—and most consumers simply won’t live without them.” Because ACN is offering indispensable services, Provenzano says they haven’t had to adjust their model based on the economy. “In fact,” he explains, “now more than ever, consumers simply aren’t settling for the incumbents’ same old rates and lack of personalized service anymore; they are going in search of a better alternative. And ACN is that alternative.”

Tony Petrill, Vice President of Sales with LegalShield, a direct selling company that provides professional legal counsel to its members, believes that today’s tough economy is actually contributing to his company’s growth. “The thing that’s interesting and unique about our service is when the economy is tough, two things continue to happen: one, people are faced with issues they were never faced with before, such as real estate challenges; and two, identity theft continues to rise,” he explains. Because LegalShield offers a range of legal services as well as an identity theft protection plan, an increasing number of consumers are turning to the company for professional counsel in these uncertain times.

Petrill says the average income per LegalShield sales associate has practically doubled in the past year—a sure sign that business is on the rise. “New sales associates with our company are 50 percent more successful this year than they were the same time last year,” he says.


Cover Story Cover Story Cover Story

Need a Job? At Your Service.

Thanks to the nation’s soaring unemployment rate, the services side of direct selling has also enjoyed a deluge of job-seeking entrepreneurs in recent years.

“The economy always affects people,” says Chrysler, “but in a positive way it can make people more open to direct selling in general because of the opportunity for part-time income.”


“I think people want to make more money, and if they can get behind a service that they can feel good about, it just makes sense.”
—Tony Petrill, Vice President of Sales, LegalShield


Petrill points out that in a bad economy, people either decrease their expenses or increase their income. “And I’ve always voted for increasing income,” he adds. “The reality is that the average household is looking for more income, and because there is no inventory, the servicing industry is attractive to many people. I think people want to make more money, and if they can get behind a service that they can feel good about, it just makes sense.”

Not only are millions of Americans currently out of work, but many disgruntled employees are struggling with shrinking salaries, fewer hours and rock-bottom morale. As a result, thousands of these downtrodden professionals are searching for alternative employment options. “Direct selling typically sees a spike when the economy is struggling because people are looking for a plan B,” says Provenzano. However, he adds that job seeking entrepreneurs won’t settle for just any new business opportunity. “What good is a business opportunity in a down economy if you are trying to sell people products they don’t need or can’t afford?” he asks.

Jerabeck agrees, noting that widespread corporate downsizing and downward wage pressure has driven thousands of discontented professionals to the direct selling industry. “This has led to significant growth in our representative base, and we continue to expand the service offerings to bring more customers into the 5LINX tent.”

To top it off, the majority of job seekers can’t afford to pay a hefty fee to start up a direct selling business. “I think people are open to opportunities to earn money on a part-time basis outside of their normal working environment, and in our case [at North American Power], a no-investment, no-risk opportunity has particular appeal,” Breitbart says. “I’m a fan of direct selling, but fee-based entry is not necessary in a services model. I think our success is, in part, based on the fact that we don’t ask anybody to write a check.”

Tightening the Belt

Though it appears it’s all smooth sailing for the services side of direct selling, these companies are certainly not immune to economic slumps. Much like the product side of the industry, the service sector has faced its fair share of challenges in recent years.

“The economy impacts all types of businesses, and clearly it’s been a difficult environment for us,” Williams admits. He says Primerica mostly serves the middle market—consumers with a household income of $30,000 to $100,000 a year. This is precisely what separates Primerica from the majority of financial service companies, who generally target more affluent households. “When the middle market is strained financially and disposable income is limited, people begin to prioritize, and even important priorities, such as financial services, life insurance and their savings for the future, are impacted when dollars become scarce,” he explains. Williams says many of these strapped consumers continue to do business with them, but they buy less. “So they still buy life insurance, but they buy a smaller policy because money is scarce. They continue to invest for the future, but the average amount they have available to invest is less. So the transaction sizes have gotten smaller.”

Breitbart says that, from its inception, North American Power has done business in the shadow of an unhealthy economy. “We’ve only been in business for a few years, and we’ve been in business in the same kind of rock-bottom economy from Day One,” he says. Despite the challenges, the company continues to blossom. “I think it’s because we offer a product that the consumer has to buy anyway at a cost savings,” he says. Combine that with the fact that North American Power reps don’t have to pay a fee, and it’s a recipe for success. “I believe our no-fee model has had a positive impact on our business and the growth of it.”

Troubled times can also motivate individuals to look for a way to escape. WorldVentures provides a combination of great experiences with financial opportunity that can fulfill the dual need of extra income through the opportunity, and a way to escape the pressures of life—all at a bargain. Azcue says, “Our DreamTrips club memberships delight consumers with life-changing experiences at guaranteed below-market prices.”

Selling Intangible Products


“The services side of direct selling has witnessed incredible growth over the past few years, yet the surface has barely been scratched.”
—Greg Provenzano, President and Co-Founder, ACN Inc.


Unlike product companies, service-focused direct sellers are marketing a “concept” that consumers cannot touch, taste or smell. Obviously it can be a daunting task to get potential customers pumped up about an intangible product—not to mention that some of the more complex services are difficult to explain in layman’s terms.

“This is always the biggest challenge!” Chrysler says. “We explain the concept in general terms and use stories to share some specifics and generate excitement. We have a PowerPoint presentation, a video and a printed brochure for our independent reps to use.”

However, Breitbart insists that North American Power’s product isn’t really all that intangible. “Customers touch and feel that power bill they pay every month, whether they want to or not,” he points out. “And they certainly have a real profound experience when the lights go out. I really don’t think it’s that intangible because it’s a bill they have to pay. There’s no option to buy our product—it’s just whether they buy from us or they buy from the utility at a higher price.”

Provenzano echoes that reasoning. “To some, ACN’s products and services may not appear tangible but we believe they are,” he says. “Think about how many times a day you use your cellphone, send a text message, check your Facebook status or pick up your television remote. It really doesn’t get more tangible than that. Consumers are using our products and services every day without even thinking about it. Using a wireless phone is as effortless as breathing for most people. With that said, our products and services truly market themselves.”

Plus, because service direct sellers never have to deal with inventory, selling an intangible product is often a blessing in disguise. “You don’t have to have 30 attorneys in your garage to market LegalShield,” Petrill says with a laugh.

“There are tremendous advantages to not having a tangible product,” Williams adds. “We’re not dealing with inventory that goes unsold or becomes dated or stale in our warehouses. We have complete elasticity in meeting the needs and demands as they grow and shrink in our marketplace. The advantage of being a service provider is that we can flex to the demand of our marketplace.”

Breitbart points out, “I think the service industry is a solid business. There’s no product inventory and there’s no waiting for it to come in on time, so it’s easier from the company standpoint and easier from the rep standpoint.”

A Blindingly Bright Future

As service-focused direct selling businesses look into the future, they may need to slip on their shades. “The future is bright for service-based direct sellers, and with the deregulation of gas and electricity sweeping the nation, I mean that quite literally,” Provenzano says.

Breitbart says service businesses are an increasingly important part of the direct selling industry. “I don’t know this for a fact, but many people out there say that this industry has created more millionaires than any other industry,” he says. “I think the stature of it is continually rising. I can’t speak to every other company’s policies and procedures, but I know with ours, people truly own their own business. So it’s an opportunity to really own a business, not just get a part-time job—and I don’t think the appeal of that is going away anytime soon.”

There is no question that the services side of direct selling will continue to expand, but Williams stresses that only the businesses providing a truly valuable service will flourish. “The businesses that offer legitimate, long-term value will do well,” he says. “You can have a great sales process, but if there’s no value or credibility, clients are going to eliminate that service a month or two later. Unless you have a service that truly meets a long-term need—not just a need that you can get a customer excited about at the point of sale—then the future of that is going to be very bright.”

Plus there is plenty of room to grow. “The services side of direct selling has witnessed incredible growth over the past few years, yet the surface has barely been scratched,” Provenzano says. “There are still millions of consumers who simply don’t know they have an alternative when it comes to who provides their essential services. And there is no better, more effective way to reach those customers than through the proven, person-to-person direct sales model.”


Basic Training? Not So Much.

When we asked a few service direct selling businesses how they prep their reps for the sales world, we discovered these companies’ training and marketing programs are anything but basic. Here’s what they had to say about it:

ACN

ACN Inc.


“ACN has an incredibly robust training and support system,” says Greg Provenzano, President and Co-Founder. “I could fill pages talking about this alone.” During regularly scheduled live webinars, regional events and quarterly international events, ACN provides its independent business owners (IBOs) with all the tools they need to be successful. “But when the rubber meets the road, our business is really all about talking to people—whether recruiting other IBOs or acquiring customers,” adds Provenzano. He points out that virtually every person in the nation is already using the services ACN provides, and their friends and family are using them too. “Our business opportunity is as simple as that—offering the people you know, and the people they know, and so on, an alternative to the services they are already using anyway.”

Primerica

Primerica Financial Services


Primerica is unique in that it works in a regulated industry. The company’s representatives therefore have the option to become life insurance licensed—and if they qualify, they also have the opportunity to become securities licensed at no additional cost. “So, when you think about training, it’s not simply making sure people get certain sales skills and product knowledge; there are regulatory requirements in place for licensing, for continuing education and for certain levels of proficiency, which I think adds some credibility and legitimacy to our business,” explains Glenn J. Williams, President. “One of the things I think we’re good at is accommodating that on a large scale. We can train people, we can license people, and we make sure they have access to the appropriate continuing education. That’s part of the service we provide—and that expertise makes us attractive to those who want to build a business at Primerica.”

North American Power

North American Power


“Because we’re free, in essence there’s no difference from a customer and a rep,” explains Kerry Breitbart, Co-Founder and CEO. Every new North American Power customer receives their own website, and they have the opportunity at any point to become a rep. If they choose to become a rep, North American Power offers web-based training and in-person live training around the country. Breitbart believes the company’s no-fee model has served them well when it comes to recruiting new reps. “Having been in business for 32 years, it never occurred to me in any industry other than this one to charge the salesforce to work for me,” he says. “I like to think we’re kind of a vanguard company.”

Team National

Team National


Team National offers its independent representatives a wide variety of training opportunities, including person-to-person training, online training, education through their own TV network and a variety of live events. “Relationship building is an important part of our training,” says President and CEO Angela Chrysler, explaining that their reps generally target friends, family and businesses. “We teach them to work a warm market and to make a cold contact a warm contact.”

LegalShield

LegalShield


LegalShield offers a basic training class, an online training course, an employee benefits training class and a small-business training class. “We’re really excited about our Dallas Learning and Leadership Conference this fall, which is a shift to more training than ever,” says Tony Petrill, Vice President of Sales. Additionally, in 17 states LegalShield associates are required to become licensed. In 2011, LegalShield (formerly known as Pre-Paid Legal Services) was acquired by private equity firm MidOcean Partners. Since then, the company has completely revamped its marketing and sales materials for associates. “We’re equipping our associates with more and more tools.” Perhaps the most exciting new tool is the company’s recently launched national television advertising campaign. “After just one week of airing, we received reports from associates that people were coming up to them and saying, ‘Hey, I knew you were with LegalShield, but I just saw the TV ad during the Olympics. Tell me more about it,’ ” Petrill says. “It’s a whole new ballgame with national advertising.”

 

Filed Under: Cover Stories

Jusuru International: Success Begins from Within

September 1, 2012 by DSN Staff Leave a Comment

Jusuru Independent Representatives on a manufacturing tour at Jusuru’s headquarters in Anaheim, Calif.


Click here to order the Direct Selling News issue in which this article appeared.


Jusuru


Pronounced Joo-SOO-roo

Company Profile

  • Founded: January 2010
  • Headquarters: Anaheim, Calif.
  • Founder: Asma Ishaq, President
  • Products: Joint and Skin Health Nutraceuticals

Asma Ishaq describes her job as “helping wonderful people to see the wonder in themselves.”

Asma IshaqAsma Ishaq

As the President of Jusuru International, she has instilled this conviction into every aspect of her company. Not only can it be seen in how Jusuru’s revolutionary products work within the human body, but it is evidenced in the way that Ishaq has built the company.

“We have a slogan at Jusuru: ‘Begin from within.’ That guides everything we do,” says Ishaq. “Our patented science starts at the root to help your body, joints and skin heal. It takes time but it will create some permanent and long-term benefits. Same goes for our distributors; we tell them to start within themselves if they want to see their team and sales grow. Both concepts are intentionally similar—success starts within you. My job is just to bring out the best in people.”

The word jusuru means “to live” and was inspired by Ishaq’s belief that her company’s purpose is to encourage people to live their best possible life.

A Product That Works from the Inside Out

Most skin health products work from the outside in, such as ointments and creams designed to smooth the skin and eliminate wrinkles. But Jusuru’s multi-patented BioCell Collagen takes the opposite approach—a liquid form distributed in a package that looks more like a bottle of wine than the medicinal package you’d expect from a dietary supplement.

BioCell Collagen

“We have several human subject, double-blind, placebo-controlled clinical trials showing that BioCell Collagen improves joint health significantly, and reduces wrinkles from the inside out,” says Ishaq, who comes from a family of entrepreneurs who had previously achieved remarkable success in the nutritional supplements industry.

Jusuru was launched out of the science behind BioCell Collagen, which was discovered, patented, researched and licensed as a novel dietary ingredient. According to David Ciemny, Vice President of Business Development for Jusuru, “if you’ve been to a GNC, Vitamin Shoppe or Whole Foods, you’ve probably experienced the credibility behind our product.”

Before launching Jusuru, Ishaq had spent the prior decade with BioCell Technology in marketing this multi-patented ingredient, which included serving other direct selling companies. As she witnessed several of her friends’ companies prosper over the years, she realized that direct sales could be a powerful mechanism for rapidly and profitably distributing a product such as BioCell Collagen.


Jusuru was launched out of the science behind BioCell Collagen, which was discovered, patented, researched and licensed as a novel dietary ingredient.


“Particularly with a product that is proven to be so effective, people naturally have something to share with others. I am passionate about empowering people with personal development and education, which is inherent in direct sales,” Ishaq says.

In addition to possessing scientific studies providing the impact of their products, Frost & Sullivan awarded BioCell Collagen® as the best product in joint and bone health. The company also earned recognition from the Nutricosmetics Summit as the exemplary U.S. brand. According to Ishaq, “We are drawing the connection between ingestible nutritional supplements and effects on beauty, and pioneering this emerging category.”

All of this emphasis on proven results is no accident. Ishaq says that scientific validation is very close to her heart, and explains that “it’s very important [for a company like ours] to support our claims, to provide a product that is indeed effective, and to offer something that is worth every penny that someone is spending.” She believes that this differentiates them from their competition.

“I think differently,” Ishaq says. “We arrived at a scientific breakthrough, and thereafter, chose this distribution model because we believe in it. It was our product that drove that decision, not the other way around.”


Jusuru corporate headquarters in Anaheim, Calif.
Jusuru corporate headquarters in Anaheim, Calif.
Jusuru President Asma Ishaq in Haiti contributing donations as part of Jusuru’s Giving Back Program shortly after the 2010 earthquake.
Jusuru President Asma Ishaq in Haiti contributing donations as part of Jusuru’s Giving Back Program shortly after the 2010 earthquake.

A Company Built from the Bottom Up

Despite the natural fit, Jusuru was not originally envisioned as a direct selling company. In fact, its signature product was originally marketed as an ingredient in other companies’ products.

“I spent a decade communicating the benefits of this ingredient to the nation’s largest nutritional brands and educating their sales teams and marketing departments about the science, clinical data and efficacy of our product,” Ishaq says. “We received an overwhelming number of requests from potential clients about developing this particular ingredient to work in a liquid application. After years of R&D, we finally discovered the possibility in 2007.”

That was when she felt the calling to reach for her own dream.


“This company aligned all of my passions and interests into what I had always envisioned as my life’s course.”
—Asma Ishaq, President


“I wanted to have the exclusive opportunity to market it in a finished product,” Ishaq says. “I stepped back from my other roles with the other companies, and we started Jusuru International. This company aligned all of my passions and interests into what I had always envisioned as my life’s course.”

Having a background in the nutritional and manufacturing industries, Jusuru is able to leverage their strategic relationships. This not only provides Jusuru with exclusive access to its multi-patented products and scientific research, but it also supports Jusuru with manufacturing, product development and formulating capabilities. Ishaq describes this advantage as positioning Jusuru as a “pioneer in the nutritional industry, beyond the direct sales industry.”

She describes Jusuru International as a “values-driven” company that “inspires people who are thirsty for an ethical company that lives up to its word, so that they can do what they do best—sell our product and change the health of their customers.”

The company’s distributors—which it refers to as iReps, for Independent Representatives—can join for a low annual fee. Thereafter, Jusuru charges a smaller annual renewal fee to maintain a wholesale partnership, through which they can purchase Jusuru Life Blend™ at wholesale and sell at retail price, yielding a 30 percent retail profit. Bulk pricing is also available for up to a 40 percent profit. The company does not require iReps to register for an autoship to earn income.


David Ciemny, VP of Business Development, speaking at Jusuru’s annual convention, Rise To Enterprise.
David Ciemny, VP of Business Development, speaking at Jusuru’s annual convention, Rise To Enterprise.
  Jusuru’s flagship nutraceutical, Jusuru Life Blend.
Jusuru’s flagship nutraceutical, Jusuru Life Blend.
Jusuru Life Blend bottles on the manufacturing line at Jusuru’s corporate headquarters.
Jusuru Life Blend bottles on the manufacturing line at Jusuru’s corporate headquarters.

A Marketing Program Based on Serving

Jusuru has experienced significant growth since it launched, which Ishaq credits to a combination of their unique products and the servant-leadership model they employ within the company.

“I learned and fell in love with this concept when I saw it happening before my eyes with mentorship from Mike Hannigan and Sean Marx,” she says. Ishaq had previously worked with Hannigan and Marx at Give Something Back, a company that sells office supplies online and donates around 75 percent of its net earnings to charity—compared to the 1.1 percent national average for corporate giving.

Describing how this model guides her leadership at Jusuru, Ishaq says, “I report to our management, the management reports to their teams, and their teams report to our customers and iReps. We have a very unique culture.”

Jusuru’s iReps come from a wide range of backgrounds. They share a bond of wanting to look and feel younger, to be active and enjoy a high quality of life. The field distribution is about 60 percent women and 40 percent men, but they come from every variety of professional and educational background. According to Ishaq, “We have everyone from business owners to retirees to students, as well as lawyers, doctors and engineers—all of whom find the time to work their business and share their Jusuru story.”

With such a diverse field, she greatly emphasizes the value of listening to iReps’ input. She explains that Jusuru’s corporate responsibility is to provide the field with the tools and training that works for them, not just for the corporate team. Within the past two years Jusuru has tweaked its messaging, its website, its technology and even its new product introductions in response to input from the field.

“I say this in the office all the time: Our role is to serve our field. That’s it,” Ishaq says. “Our weekly webinars allow us to verbally discuss our week’s news and company updates, and includes an iRep Feature segment interviewing an iRep. We also send out our Success Weekly newsletter, which surveys have indicated is our highest-rated tool.


“We know that our business grows sharply when everyone is engaged in more activity. Activity equals results.”
—Asma Ishaq


“We know that our business grows sharply when everyone is engaged in more activity,” Ishaq continues. “Activity equals results. The more in-homes, conference calls, three-ways and guest speaking opportunities we have, the better it is for our business. Similarly, events drive business. Whether over the phone, a webinar or in person, they accelerate business growth. Our company puts on an annual event, incentive trip and a regional event. We also support many local events in each region and an open house event at our corporate office each month.”

Among all of the tools in Jusuru’s training cabinet, Ishaq believes that their brief, engaging videos are among their most important. Social media also has an increasing relevance for engaging their field, more so than as a sales tool.

“Videos facilitate the duplication process. They’re an invaluable tool so long as they deliver the message that the field wants. Social media is important, but not as a source of new business. We use social media to keep our field abreast of updates and announcements, but most important, to develop a bond and, overall, a community. Our Jusuru Pet Blend Facebook page is a perfect example of animal lovers coming together to admire just what we love: our pets. It inspires and strengthens a bond. We do not use social media to recruit or solicit any business.”

Ishaq is very direct in the rationale for this strategy: “This is a relationship marketing business, not an Internet marketing business.”

A Focus on Giving

Ishaq would much rather talk about how much she is giving away than how much she and Jusuru are earning. In an industry that has occasionally been known to attract people looking for a get-rich-quick opportunity, her perspective brings a refreshing change of pace.

“We are a socially responsible business that is focused on improving its community, customers, employees and all stakeholders alike. That is my why for starting this business. I wanted to start a business where people came first and a portion of the proceeds was contributed to noble causes. At Jusuru, there are no challenges in carrying out this mission; I have support from the management team, my family, our customers, our iReps and our employees. If anything, we have more work in this regard ahead. To help others is at the core of our mission.”

Ishaq says that she began Jusuru as a vehicle both to create wealth and to give back. This philanthropic spirit not only leads the company to provide donations to the local drug rehabilitation center as well as to international relief efforts in Haiti, but it also guides their efforts to empower, motivate and educate their iReps on a daily basis. As Ishaq explains:

“Giving hard-working people an opportunity to achieve financial success is one thing, but we work to challenge them to find something deep inside themselves that can show them that they can do anything they put their minds toward. It’s been a pleasant challenge and a rewarding way of life.”

A Vision Beyond the Company

With their patented and scientifically substantiated products, Ishaq believes that the company’s challenge has never been competition with its product. Rather, as she looks to the future, she sees Jusuru’s biggest challenge as avoiding hasty decisions.


The company is currently evaluating opportunities to launch into 10 countries and create nearly 20 more new products.


The company is currently evaluating opportunities to launch into 10 countries and create nearly 20 more new products. Jusuru’s management team is also focused on technology upgrades and additional clinical research. This growth can be particularly challenging to delay when it is being requested by iReps in the field.

“What I know is to go slow,” says Ishaq. “Have a strong foundation and expand when the timing is right. I have the responsibility of thousands of people’s livelihoods. All decisions are made to protect that.”

Ishaq confesses that she has learned quite a bit from her mistakes over the last several years, but she is grateful that she went through it. In fact, she embraces the uncertainty of the future along with the challenges it presents:

“The commonality between our company and the individual reps that sell our product is that we are not perfect. We will all make mistakes. It’s about how you bounce back from them that counts. And it’s also learning the lessons that come from those mistakes that matter. As we pursue international expansion and new product launches, we also look forward to taking our iReps along with us on this journey—they deserve it. With every milestone we achieve, it brings us closer to creating more wealth for our iReps, for our employees and for the causes in the world that are ever-deserving.”

Filed Under: Feature Articles

PartyLite: The Fragrance of Giving

September 1, 2012 by DSN Staff Leave a Comment

PartyLite presented its 2012 donation to honored guest Dr. Susan Gapstur, Vice President of the ACS Epidemiology Research Program and principal investigator for the Cancer Prevention Study-2.


Click here to order the Direct Selling News issue in which this article appeared.


PartyLite


Company Profile

  • Launched: 1973
  • Headquarters: Plymouth, Mass.
  • Presidents: Worldwide, Robert B. Goergen, Jr.; North America, Michael Norris
  • Products: Candles, candle accessories, fragrance

The gift of a candle over 100 years ago ignited a culture of charity that still permeates the PartyLite philosophy today.

Whether it’s at a conference, a marathon or a Ronald McDonald House, you can find PartyLite consultants and employees giving. They may be fundraising, but they also may be cleaning, cooking or holding bake sales in order to assist those in need of help in their time of illness. These seeds of generosity were planted early in the life of PartyLite through the foundation laid by the original founder, Mabel Baker, in the early 1900s on Cape Cod.

Baker’s original product was a bayberry candle she made for friends and family. The candle became popular among its recipients, inspiring Baker to create a business making the candles available to anyone for purchase. A woman-owned business was a rare entity in those days, but Baker persisted and when she died in 1965 at age 94, what had begun with a single bayberry candle had become a business worth $6 million.

The company has changed hands but has maintained the integrity and entrepreneurial spirit of its early founder.

In 1973 the current company name was created and the leaders of the business adopted the direct selling model as its mode of marketing. According to Director of Communication for PartyLite North America, Joyce Elven, PartyLite was acquired by its parent company, Blyth Inc., in 1990, and the Plymouth, Mass.-based company was given the boost it needed to reach its potential. For the last four years PartyLite has been listed in the DSN Global 100, and in 2011 was ranked No. 22 among the world’s top revenue-generating direct selling companies.

ACS PlaqueIn 1997, PartyLite adopted the American Cancer Society as its charity of focus. “Lighting a candle has a lot of different meanings to people, including ambience and favorite fragrances,” says Michael Norris, President of PartyLite North America. “One of the special meanings for us is to shine a light on the needs of others.” He mentions that a majority of the employees and consultants working with PartyLite are women and some have been affected by breast cancer or know someone who has been affected by another form of cancer. “It’s easy for them to support the Society because it gives them a tangible way to combat the disease that has affected them personally.”


“Lighting a candle has a lot of different meanings to people, including ambience and favorite fragrances.”
—Michael Norris, President, PartyLite North America


This season, PartyLite is helping in the fight against cancer by donating a portion of proceeds from the sale of its pink GloLite by PartyLite® Jar Candle in a customer favorite, Strawberry Rhubarb fragrance. “You might say it’s the ‘fragrance of giving,’ ” says Norris, who expects the item to raise significant funds during Breast Cancer Awareness Month in October.


PartyLite North America President Michael Norris was among nearly 250 to participate in the Cancer Prevention Study-3 during the July conference.
PartyLite North America President Michael Norris was among nearly 250 to participate in the Cancer Prevention Study-3 during the July conference.
PartyLite Consultants raised $4,400 for Making Strides Against Breast Cancer in a conference 5K event.
PartyLite Consultants raised $4,400 for Making Strides Against Breast Cancer in a conference 5K event.
The bucket pass at its conference kicks off a new year of PartyLite giving to the American Cancer Society.
The bucket pass at its conference kicks off a new year of PartyLite giving to the American Cancer Society.

Walk, Run, Give

Shining a Light in the Community

Shining a Light in the Community

PartyLite has worked with the Department of Children and Families’ Family-to-Family Program in Plymouth, Mass., for the past 13 years. “PartyLite staff members have sponsored more than 600 children at Christmastime fulfilling their Christmas wishes,” says Joyce Elven, Director of Communication for PartyLite North America. “Gifts are purchased, wrapped and delivered with the hope that these children will have a happier holiday.”

PartyLite employees also help out the Greater Plymouth Food Warehouse. “In the last year we have donated nearly 500 pounds of food,” Elven says. “A food drive is held to support children during the summer months when they are out of school and another food drive before the holidays.”

PartyLite Canada Lights the Way for Children

In Canada, PartyLite Consultants and customers raise funds to support the Children’s Miracle Network (CMN), which raises funds for research and life-saving equipment at 14 CMN hospitals across Canada. Donations stay in the community from which they come, ensuring that every dollar helps local kids.

At the 2012 PartyLite Canada National Conference in Ottawa in August, Country Manager and Vice President of Sales Tracie Graham helped present a check to CMN for $74,599.80, taking the 15-year total giving to $3,675,294.20. “We are grateful for the dedication and commitment of so many of our Consultants in Canada who inspire even the newest among them to sign up for the auto-deduction programme to donate earnings to the important work of the Children’s Miracle Network,” Graham says.

In addition to donations from product sales, each year funds are raised through ongoing initiatives involving the entire PartyLite family of leaders, consultants and customers who get involved in their communities, according to Judi Rogozenski, Executive Assistant to the President and PartyLite liaison with the Society. One of those initiatives is the annual American Cancer Society Relay For Life. Rogozenski says that, since 2008, PartyLite has fielded more than 1,700 teams with more than 15,000 team members participating in community Relay For Life events. These efforts alone have raised more than $2.4 million to date.

The Relay For Life website describes the relays as more than just a walk or run. Due to the fact that cancer never sleeps, they are actually overnight events held in the springtime. Teams camp at the track and team members take turns walking or running the track around the clock at these family-friendly events. Cancer survivors lead the walk, and later in the event candles are lit to memorialize friends and relatives who lost their lives to the disease. PartyLite donates candles to nearly all of the Relays in which PartyLite teams participate.


“In 2010 and again in 2011, PartyLite had 90 teams and raised more than $40,000 for [American Cancer Society’s] Making Strides.”
—Judi Rogozenski, Executive Assistant to the President and PartyLite liaison with ACS


The PartyLite family also participates in the American Cancer Society Making Strides Against Breast Cancer walks held every fall throughout the United States. “In 2010 and again in 2011, PartyLite had 90 teams and raised more than $40,000 for Making Strides,” Rogozenski says. The teams consist of consultants, family members, customers and anybody who wants to participate. “The teams enjoy great success throughout the country because people have a tendency to support what they help create.”

Funds raised through these events help in many areas of the fight against breast cancer. The Society reports that the money is used to help people stay well through education on the importance of regular screenings, free email reminders to get those screenings and a Breast Cancer Update newsletter. They also help people get well by providing transportation to treatments, free lodging for those who must travel far for their treatments, cancer education classes and various emotional support programs.

One of the easiest ways PartyLite customers can support the Society is through the PartyLite Change the World™ program. “We invite hosts and customers at parties and online to round up the purchase price of their PartyLite order to the nearest dollar or up to $10,” Rogozenski says. “This change goes directly to the Society.”

Comfortable clothes play a role in fundraising efforts at the PartyLite home office in Plymouth. “About four or five times each year, employees are given the opportunity to dress casually for an entire week at the office for a small fee of $5,” Rogozenski says. “The funds raised during casual weeks are donated to the Society, along with profits made from bake sales and various other fundraising efforts.”

It All Adds Up

SidebarThe heartfelt efforts of the consultants, leaders, employees and customers involved in the numerous methods of raising funds for the Society culminate in the presentation of a check to the Society at the annual PartyLite National Conference. “It’s an exciting part of our conference as we witness the fruits of our labors and learn how we are making a difference in the fight against cancer,” Elven says. “In 2012, our $556,508 donation took our 15-year total contribution to nearly $14 million.”

When Norris was asked why his company is committed to raising such large amounts of money for the fight against cancer, he says, “We’ve raised millions because millions are needed.”

And those efforts do not go unnoticed by the Society. PartyLite is included in an elite group of corporations that have national teams participating in both the Relay For Life and Making Strides Against Breast Cancer. The Society also awarded PartyLite its Corporate Impact Award for Philanthropy in recognition of donations of $1 million or more in a calendar year for six consecutive years.

In 2010 PartyLite was also awarded the Corporate Impact Award for Employee Engagement, honoring a company that demonstrates outstanding volunteerism in support of the Society’s mission.


“We’re grateful to be able to offer a vital support system that reflects the Society’s principles of working together and helping people prevent and manage all aspects of cancer.”
—Michael Norris


In addition, Norris is a member of the New England Chapter of the American Cancer Society CEOs Against Cancer®. “We’re grateful to be able to offer a vital support system that reflects the Society’s principles of working together and helping people prevent and manage all aspects of cancer,” Norris says. “I’m eager to help further those principles by sharing with and learning from other CEOs whose companies are equally committed.”

A Deeper Commitment

In an effort to further assist in the fight against cancer, this year Norris and others did more than give money. They made a 20–30-year commitment to be part of the Society’s Cancer Prevention Study-3 (CPS-3). Enrollment took place at the 2012 PartyLite National Convention in St. Louis in July. “Michael was one of the first ones to sign up,” Rogozenski says. “Our goal was to register 150 participants and we ended up with nearly 250!” The researcher for the previous study, CPS-2, which determined the link between smoking and cancer, delivered a speech at the conference and was impressed with the depth of the commitment and concern of the PartyLite family and others who pledged to become involved for several decades.

In addition to supporting the American Cancer Society, the company and consultants are also extremely supportive of Ronald McDonald House Charities. “If there is a House in the city where we hold our annual convention, that is the House that receives our support for that year,” Elven explains. Over the years, seven of the conventions have taken place in St. Louis. “One of the Ronald McDonald Houses there has received so much financial support from us that they officially named one of their guest rooms the PartyLite Room.”

Throughout the country, Consultants volunteer at Ronald McDonald Houses in their own communities, embracing the opportunity to help where they can. They do whatever is needed, from washing dishes to cooking a meal to sitting with a sibling of a child in the hospital who might need someone to talk to.

Philanthropy is so important to the PartyLite family that one of the unique aspects of its annual conference is the passing of the bucket. “After we present a check with our donation to the American Cancer Society from the prior year, we actually pass buckets to kick off the new year of giving,” Elven says.


In 2011, PartyLite participated for the sixth year in the TODAY Show Children’s Holiday Toy and Gift Drive by donating more than $2 million in products, taking its giving total to $16 million.


Of course, a company with such generosity in its DNA would have a hard time letting the Christmas holidays slip by without notice. In fact, PartyLite donates to the TODAY Show Children’s Holiday Toy and Gift Drive providing gifts that children can give to their parents. In 2011 PartyLite participated for the sixth year by donating more than $2 million in products, taking its giving total to $16 million, according to Elven.

When asked what the future of PartyLite philanthropy looks like, Norris says, “PartyLite has a culture of generosity and commitment to others that is so clearly demonstrated by our field leaders and consultants. Going forward, we will continue to rely on individuals in each PartyLite region to spearhead community outreach. And, for the first time, this fall we will organize a nationwide ‘day of service’ during which consultants in Canada can volunteer to help out the Children’s Miracle Network, and U.S. consultants can volunteer at an American Cancer Society Hope Lodge. Truly, the heart of PartyLite never stops beating, and there is no limit to what can be accomplished for good.”

Filed Under: Feature Articles

Jockey Person to Person: A Comfortable Fit for a Direct Seller

September 1, 2012 by DSN Staff Leave a Comment


Click here to order the Direct Selling News issue in which this article appeared.


Jockey Person-to-Person


Company Profile

  • Founded: 2004
  • Headquarters: Kenosha, Wis.
  • Top Executive: Debra S. Waller, Founder, Chairman and CEO
  • Products: Women’s coordinating sportswear and active wear
Debra S. Waller
Debra S. Waller

Start small, work smart and embrace opportunities. That seemed to be Debra S. Waller’s philosophy when she founded Jockey Person to Person® in 2004. Today the mighty engine of direct selling has made the latest Jockey division the fastest-growing part of the company.

Waller is the third generation of her family to run Jockey International, but she wasn’t content with just continuing along her predecessors’ paths, according to Lia Keeping, Vice President of Sales for North America at Jockey Person to Person. One of the family traditions was for each company leader to make his or her own mark on the company. Waller’s grandfather was a financial genius who took a bankrupt Jockey predecessor company in the middle of the Great Depression and engineered a brilliant turnaround. While he was CEO, the Jockey brand was created, the men’s brief was invented, and the company achieved a global presence. When her mother took the helm, she introduced Jockey for Her, a full line of intimate apparel for women. When Waller reached her time at the top of Jockey, she completely embraced her family’s passion for innovation.

Lia Keeping
Lia Keeping

According to Keeping, as Waller considered what her own legacy might be, she remembered a short but significant branch of her own career path. She had been a Mary Kay consultant in college. That experience had shown her the power of the direct selling business model as well as the way it liberated women to create balance between their family and work life. And the fact that direct selling consultants have no glass ceiling was icing on the business model’s cake.

Jockey Person to Person was born. Its first products were Jockey traditions: women’s underwear and sleepwear, all marketed using the party plan by the company’s distributors, called Comfort Specialists®. But when it introduced active wear, customer response was immediate. They wanted more. Gradually the product mix included fewer intimate apparel items and more active wear.

Opportunity Doesn’t Knock. It Rings.

As Jockey Person to Person was gaining traction, a Canada-based direct seller specializing in fashion was losing theirs. When it closed its doors, direct selling veteran Keeping, who had been that company’s Canadian President, found herself unemployed. What concerned her at least as much as her own situation was her salesforce suddenly had no direct selling home. She did what she always counseled her distributors to do. She picked up the phone.

“I always told our salesforce that one phone call, one person, one recruit, can change your business and your life,” Keeping says. “Somehow I got Debra Waller’s phone number, and I called it. I actually got through to her personal assistant, who let me leave a voice mail message. I introduced myself, told her that I had a fantastic salesforce, and that we were looking for a home.”

Soon Michael Lapidus, President of Jockey’s Direct to Consumer Division, called her. They hadn’t been thinking of opening Canada just yet, he said, but “let’s talk.” Keeping became a Jockey Person to Person management contractor in July 2008, about a month after her first call. Her task: Open Jockey Person to Person in Canada. Keeping had helped her previous company expand internationally, and she certainly knew its distributors well, so she dove into the project. In October, the task was complete.

“It just shows what this company is made of,” she says. “They saw the opportunity, wanted to take advantage of it, and they wanted to help people. They moved mountains to prepare the back end of all those processes you never see.”

In December Jockey Person to Person hired Keeping in her current position and also hired her husband, Greg, as Vice President and General Manager.

Once Canada was humming, Keeping tapped into some of her fashionista expertise: coordinating a few items of carefully designed clothing to create many outfits. The idea was a perfect fit for Jockey, and the company added coordinating sportswear—all designed by the Jockey Person to Person design team, and all offered exclusively by its Comfort Specialists. There the company found its niche. Women still want to look good in their clothes, so active wear is an important part of the lineup. But Comfort Specialists get excited about the great line of mix-and-match sportswear, including jeans. The product lineup lets customers glam up their casual wardrobe, taking them from smart casual at the office to workout wear to comfy wear at home. The bonus: They get to shop with their friends in a private, social environment and avoid the hassle of shopping malls.

Must-Have Support

Keeping says that the support of other people who run Jockey’s various divisions has also been key throughout the process, and top executives have stood solidly behind the young division.


“Between Debra and [Jockey International President and COO] Ed Emma, they understood that direct selling was different than mainstream corporate America.”
—Lia Keeping, Vice President of Sales for North America, Jockey Person to Person


“Between Debra and [Jockey International President and Chief Operating Officer] Ed Emma, they understood that direct selling was different than mainstream corporate America,” Keeping explains. “They made sure that all executives within Jockey International were engaged with the Jockey Person to Person business.”

For example, Waller invited the leaders of Jockey’s various divisions to attend Jockey Person to Person conferences and incentive trips in the early days. It allowed the whole company to see, feel and embrace the differences between direct selling and mainstream business.

“Rather than trying to take a direct selling business and force it to fit the corporate mold, they understand the differences in direct selling,” Keeping says. “They came to understand that the salesforce is volunteers and also our frontline customers. They’ve allowed the division to grow and develop with a lot of autonomy. They trust us to do what is right, but on the other hand, they’re there to help and support. As an independent business unit at Jockey, we still have access to IT, manufacturing, and the distribution facilities of this global giant. It’s been a huge benefit in getting this business up and running.”

Comfort Specialists benefit from the company’s support, too, but the big door-opener is the Jockey brand.

“It’s a huge plus for us,” Keeping says. “Everyone knows the brand and everyone associates the brand with comfort, quality, value and integrity. That really opens a lot of doors for our Comfort Specialists. The biggest thing we have to explain is that it’s not an underwear party. When women find out that we offer sportswear, they’re very intrigued. And who would have thought that Jockey does jeans—stretch denim. But yes, we do, and they’re as comfortable as the undies you wear. When we launched them last year, they were hugely successful.”

Repeat Shopping Spree

Keeping says that the exclusive product line and its concept of coordinating pieces is the main attraction for Jockey Person to Person’s recruits and customers. And the clothing is designed so that customers can continuously add coordinating pieces to their wardrobe, season after season, without busting their budget.

Jockey Person to Person invests in the careers of its Comfort Specialists and keeps their budgets in mind as they design promotions. At its July convention it held a fashion show to introduce its fall line. At the same time it also introduced promotions that let distributors sell those new clothes at minimal cost, while rewarding retention and recruiting. New recruits can receive the company’s Smart Start Kit, which includes premium retail value products, for a fraction of the cost. To qualify for the reduced price, the new Comfort Specialist must achieve a certain sales minimum—reached through three average parties—by the end of their first full month. She can also purchase any 10 items for 50 percent off at the end of her first full month. Plus, in their first six months, Comfort Specialists receive an Accessories Pack for free when they recruit one or more new consultants who reach that sales minimum in their first full month.

In addition to promotions that keep their business affordable and motivating, new Comfort Specialists have access to the “little black dress” of direct selling—weekly training calls from top leaders. And a whole section of training is available in their online back office. Jockey Person to Person encourages Comfort Specialists to help their new recruits with their first couple of parties as they learn the ropes and begin to feel confident.

The parties are like “girls’ night out,” according to Keeping. Typically, Comfort Specialists set up a rack of samples, spend about 20 minutes talking about Jockey Person to Person, and then start showing the outfits. Early arrivals are invited to model outfits to demonstrate how garments mix and match. Guests can see every style in a Style Guide and decide which garments they’d like to try. Then the shopping spree begins. Everyone can “attack the rack,” try on clothes, and get their friends’ opinions on how they look.

“We have a high success rate with the Smart Start program,” Keeping reports. “Very few women wind up paying full price (which occurs if the newbie’s first parties don’t reach a minimum threshold in sales).”

Jockey Person to Person’s strong start is just the beginning. Its five-year plan calls for it to more than triple its existing revenues and to exceed 25,000 Comfort Specialists. Supporting that goal is its top initiative: to increase brand awareness. It has already appeared on TODAY, and in All You, Taste of Home Healthy Cooking and Woman’s World magazines, and in numerous local and regional publications.

“Everyone has heard of Jockey,” Keeping observes. “Few have heard of Jockey Person to Person. We’re starting to build brand awareness. Our mission is to make sure that people know that Jockey not only does underwear, but Jockey Person to Person does a great line of women’s sportswear.”

Helping Adoptive Families “Bear” the Load

Helping Adoptive Families “Bear” the Load When Jockey International chose a major philanthropic focus for all its divisions, it wanted to support families through a cause that was underserved. That led to the birth of Jockey Being Family®. Its mission is to strengthen adoptive families by increasing their access to post-adoptive services in the company’s home state of Wisconsin, across the United States and Canada.

The mission is close to Jockey’s Chairman and CEO Debra S. Waller’s heart. Her life was changed forever when she was adopted.

“Debra chose Jockey Being Family as our philanthropic cause for two reasons,” explains Lia Keeping, Jockey Person to Person Vice President of Sales for North America. “First of all, she wanted to help create ‘forever families’ because the sad truth is 10 to 15 percent of all adoptions fail. The monies raised through our foundation support post-adoptive services. This is especially meaningful since Debra herself is adopted.”

Post-adoption services may meet a wide variety of needs. Families often request information, respite care, parent support groups and referrals to medical professionals, for example. And the needs of families who adopt special-needs children can be just as special as the children themselves.

Jockey established the philanthropic program in 2005. Since its inception, Jockey Being Family has donated more than $3 million to the cause, inspired hundreds of people to volunteer more than 5,000 hours to support it, and reached more than 250,000 adoptive families throughout North America. Jockey Person to Person Comfort Specialists, who market the division’s line of sportswear and active wear, also sell Jockey Being Family teddy bears. Jockey donates $3 from the sale of each bear to the foundation. A new bear design will be introduced in November.

The organization supports post-adoption services by engaging its employees in meaningful volunteer activities, raising awareness of the need for post-adoption services, and building partnerships with local and national nonprofit organizations.

For example, each month teams of employees from each Jockey division gather to create personalized Home to Stay™ backpacks for adopted children in Wisconsin. Many employees and members of the community create handmade blankets to go into the backpacks. Filled with toys, blankets, books, the company’s signature teddy bear and other cheerful items, the backpacks are hand-delivered by caseworkers to the children soon after the adoptions are legally finalized. Since 2005 Jockey has created and distributed more than 3,000 backpacks to 1,000 adoptive families throughout Wisconsin.

Jockey employee volunteers also completed two Home Adaptation projects for local families who adopted children with special needs. For instance, working in partnership with Adoption Resources of Wisconsin, Jockey awarded home modifications in 2007 and 2008 that included building wheelchair ramps, painting, staining, indoor decorating, outdoor home beautification and more to create comfortable and accessible environments for the families.

“Many families, especially those who adopt children with special needs, face extra challenges and need post-adoption support, resources and information to help them remain strong so they can provide permanent, loving homes for children who have been dreaming of a forever family,” Waller writes on the Jockey Being Family website. “Adoption is not an event. It is a lifelong journey. We hope to be a guiding hand for local families along their path while leading the charge in raising awareness of the need to expand post-adoption services and make a difference in the lives of adoptive families nationwide.”


Filed Under: Feature Articles

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