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Photo above: Senior Thirty-One leaders partnered with the Salvation Army to give back to the Franklin Women’s Shelter in Bronx, N.Y. They prepared dinner, helped with resume writing and organized the common areas with $100,000 worth of Thirty-One products to make the shelter feel more like home.

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Company Profile

•  Launched: 2003
•  Headquarters: Columbus, Ohio
•  Founder and CEO: Cindy Monroe
•  Products: Fun, affordable and functional products such as personalized totes, bags, thermals and organizational items.
• Websites: Thirtyonegifts.com, Thirtyonegives.org

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It all started in the basement of Cindy Monroe’s Tennessee home in 2003. Equipped with a sewing machine, vision and tremendous faith, Monroe sought to fill a gap for special gifts. “I was working full time and I began to notice that all of the downtown boutiques closed at 6 p.m. There was no place to get those fashionable and personalized gift items. I wanted to create a faith-based company that could empower women. I wanted to help women stay organized and get through a busy day with edgy, fun fashion at affordable prices,” says Monroe, CEO and Founder of Thirty-One Gifts. The direct selling company is named after Proverbs 31 to celebrate, encourage and reward the virtuous woman described in that chapter of the Bible.

Monroe has accomplished the astonishing by taking the business she started in her basement to a company heading towards a billion dollars in revenue in less than 10 years. Part of the company’s success and growth through the recession is credited to its high-quality, attractive and affordable products. The average item sells for $20.

Thirty-One Gifts has grown to more than 100,000 independent consultants nationwide, becoming one of America’s fastest-growing direct selling companies. The company was reaching $700 million in 2011, a goal that may have been attainted had it not instituted a four-month waitlist for new consultants. With more than 5,000 new consultants joining the company each month, Thirty-One Gifts implemented a recruitment freeze in an effort to better support and train new consultants.

Waitlisting can be a complicated decision for direct sales companies, as executives worry that turning away new recruits can dampen a company’s momentum, and possibly dry up the pool of interested people. But Monroe’s commitment to giving each consultant the tools she needed to be successful was the driving force behind the waitlist decision. She credits the communication the company has developed with their field for making this decision work. “We have an open and honest dialogue with our field,” Monroe says. “We don’t want our consultants caught by surprise. We have conversations with our consultants weekly and monthly, because our relationships with our consultants are a high priority. They trust us and we rely on their feedback to help us.”

While the waitlist slowed the momentum for a season, it did not stop the company’s overall growth. When Thirty-One lifted the waitlist, 35,000 consultants joined the company. According to Monroe, Thirty-One was able to provide great support from the home office to help them get their business going, due to the efforts that took priority during the waiting period.

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“We are people who believe in celebrating, encouraging and rewarding others for who they are.”
—Cindy Monroe, Founder and CEO

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Based in Central Ohio, Thirty-One Gifts has grown to a family of more than 2,000 employees who are passionate about their mission and purpose. A call center and capabilities in information technology, operations and finance were developed to strengthen the foundation of the company. Monroe credits many of these changes for building a stronger sales team. In 2012, 50 percent of local consultants attended sales meetings led by a director on a regular basis. In July 2013, Thirty-One Gifts will host its annual national conference in Atlanta, with thousands of consultants expected to attend. “We are people who believe in celebrating, encouraging and rewarding others for who they are. Through God’s strength, we’ve built a family of individuals who feel women deserve to treat themselves and those around them to something special. Our commitment is to provide women with a fulfilling, enjoyable and rewarding experience, one person at a time,” Monroe says.

What’s in store for Thirty-One Gifts in the future? Monroe is as cautious about international expansion as she was about domestic growth though the company has begun a pilot program in Canada. Thirty-One’s U.S. leaders already have thousands of people on their teams, and Monroe wants to keep them focused on developing these teams into strong units before increasing internationally. She says, “I don’t want to jump into the international market too soon and distract from the wonderful relationship-building taking place in the domestic markets. In five years, I see us building a larger international business.”

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Thirty-One leaders (left to right) Lorna B., Julie T. and Lindsay K. provide holiday cheer during their TODAY Show Toy Drive delivery in Illinois.

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Thirty-One Gives Celebrates One-Year Anniversary

Mission of Thirty-One Gives “We believe in Her—women and girls. We embrace Her inner beauty and celebrate Her natural gifts. It’s our mission to celebrate and empower Her, helping to strengthen Her belief in herself, strengthen Her family, and to lead a purposeful, thriving life. We do this through Home Office partnerships, Consultant giving, product donations and exclusive Gives products. We believe that by empowering Her, we strengthen families and communities and change lives.”

It’s no coincidence that February is National Self-Awareness Month and the month that the company’s charitable initiative, Thirty-One Gives, officially came into being, though Monroe admits it was later than she wanted. With common Monroe commitment, she says, “We don’t want to do something just to do it. We want to get it right and do it the Thirty-One way.”

Thirty-One Gives, led by Director of Philanthropy and Events Wendy Bradshaw, focuses on giving women and girls the tools they need to reach their full potential. One way the company accomplishes this goal is with “cause products.” For example, the U R U Collection was designed to send a positive self-esteem message whenever the bag is opened. Inside each tote, all around the lining are the words: U R Bold, U R Strong, U R True, U R U. Bradshaw says, “It’s a burst of confidence every time you use it.”

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Thirty-One Gives, led by Director of Philanthropy and Events Wendy Bradshaw, focuses on giving women and girls the tools they need to reach their full potential.

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For each U R U product purchased, 31 cents is donated to a nonprofit organization whose mission is to contribute to the empowerment of women and girls and strengthen families. The U R U Collection has already raised over $212,000 for various organizations. Monroe says, “I am most proud of the fact that our consultants are involved. This is who we are. It’s not Cindy, it’s not Wendy; it’s our entire salesforce.”

Monroe’s desire for the Thirty-One Gives initiative is to “give back and pay forward” the many blessings they have received as a company. A Thirty-One Gives Care Council was established to enable regional reps and leaders in the field to provide support and feedback.

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Thirty-One Gifts employees (left to right) Cathy Fisher and Barb Grossman; CEO and Founder Cindy Monroe; and senior executive directors Lori B., Amy H., Marci S. and Ellen C. celebrate the inaugural American Heart Association heart walk in Columbus, Ohio.

The U R U Collection is designed to send a positive self-esteem message whenever the bag is opened with the words U R Bold, U R Strong, U R True, U R U.

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Partnership with Girl Talk

There is more to Thirty-One than making stylish handbags and functional products. It is a company dedicated to generosity in communities both at the local and national level, because giving has always been the guiding force of the organization. Bradshaw says, “We spent a year focusing on three pillars that define who we are: Girls, Women and Family. We started with the first pillar, girls, and chose an organization that aligns with who we are. The partnership represents a marriage to us; our hope is that when you think of Thirty-One Gives you think of Girl Talk as well.”

Founded in 2002 by Haley Kilpatrick, Girl Talk is a student-to-student mentoring program that pairs middle school girls with high school girls who serve as mentors. These mentoring sessions build self-esteem and teach the importance of community service, and each student benefits from a valuable mentor relationship. Kilpatrick relates that her middle school years were really tough. As she moved from an inner-city elementary school to a private middle school, she was made fun of and not included in weekend social activities. Kilpatrick says, “When my younger sister entered sixth grade, I told my mom I didn’t want my sister to go through what I went through. My mom said ‘Then do something about it.’ ”

Ten years ago, at the age of 15, Kilpatrick decided to make a difference. As a sophomore in high school, she held her first meeting with middle school students. She adds, “I thought I would get five or six girls to attend, but 80 percent of the girls in the middle school showed up, and we had to move our meeting from a classroom to the library!” Today Girl Talk is based in Atlanta, with chapters in 44 states and seven countries. Girl Talk has reached more than 35,000 girls worldwide. “I have found so much purpose from my small pain. This work has truly allowed me to experience God’s love. I am so grateful to Wendy and her team and this partnership. The possibilities are endless,” Kilpatrick says.

Bradshaw says that sadly, statistics indicate that a girl’s self-esteem peaks at age 9. The following years through middle school and high school play havoc with her self-image. “We are encouraged about the opportunity to empower girls,” she says. “We are so blessed to be in a position to advocate and create a voice for them.”

Over the next five years, the goal is to reach 100,000 middle school girls and engage in 1 million hours of community service. Rebecca C., Thirty-One Gifts Senior Executive Director, says, “I am so excited by this new partnership. The opportunity we have to impact girls across America is incredible. I can’t wait to watch it unfold and see our consultants jump in and wrap our arms around this work. I have loved seeing women inspired to leverage their businesses for good.”

“I want [young girls] to know that they can change the cycle [of low self-esteem] as they one day become women raising daughters of their own.” —Haley Kilpatrick, Founder, Girl Talk

Bradshaw says over this period she anticipates more than 3,000 Thirty-One consultants will get involved and develop mentoring relationships annually between Girl Talk graduates and Thirty-One consultants. “We are most excited about this, because it means the high school girls who lead Girl Talk chapters will have built a solid relationship with a Thirty-One leader as they transition from high school and approach the tough questions raised from being in college,” Bradshaw says.

Kilpatrick is determined to “plant the seeds” while these girls are young to show that self-esteem matters and that they can take action to help others. She says, “I want them to know that they can change the cycle as they one day become women raising daughters of their own.”

By midyear, Thirty-One Gives plans to announce two additional partnerships that support women and families.

Continuing Partnership with TODAY Show Toy Drive

Through another Thirty-One Gives initiative, the company donated $5.4 million of retail product during the 2012 TODAY Show Toy Drive. “We are so proud to be part of the DSA and have enjoyed our partnership with DSA and the TODAY Show Toy Drive for several years,” Bradshaw says. With last year’s contribution, Thirty-One was honored to learn they provided one of the largest donations in the TODAY Show Toy Drive’s history. The generous donation was made possible due to Thirty-One’s GOGO (Give-One-Get-One), consultant-only outlet sale.

Thirty-One matched purchases one to one, up to 250,000 products, and donated wallets, backpacks, thermal totes and similar items. Products were delivered to all 50 states to charities selected by the TODAY Show Toy Drive. They went to nonprofit organizations that support children in need as well as women and families. During toy drive initiatives, according to Bradshaw, many of the donations are geared toward younger children. Thirty-One is proud, she says, to donate products that often fill a gap in the “tween” market.

In addition to the product donation, Thirty-One’s independent leaders in the field—in all 50 states—were involved in delivering the products to 74 chosen charities. Thirty-One “ambassadors,” including National Executive Directors and Senior Executive Directors, visited the charities in their communities to personally interact with the children and families receiving the donation.

“I am honored to be a part of a company that truly believes in the Christmas spirit all year round.” —Mary U., Senior Executive Director

Mary U., Thirty-One Gifts Senior Executive Director, relates her experience. “I had the privilege to go to New York for our Toy Drive and represent our amazing leader Cindy Monroe. We went to a woman’s shelter in Bronx, N.Y., and poured into these ladies either in serving food, organizing rooms with Thirty-One products, or doing a craft. I was partnered up with a lady who at first didn’t really have much to say, and then when asked if she finished school she said yes. I asked what she majored in, and she said interior design. The thought of having her open up and help lead us was all I wanted. It was like the sun was shining through that room at that very moment. This trip was well worth it. I am honored to be part of a company that truly believes in the Christmas spirit all year round.”

Supporting the American Heart Association

Did you know? “Important Statistics from Thirty-One Gives: 1 in 4 women will experience domestic violence. 7 in 10 girls believe they are not good enough. 62 percent of girls are insecure about themselves. A girl’s self-esteem peaks at age 9. Only 2 percent of women describe themselves as beautiful. Source: thirtyonegives.org

Thirty-One Gifts became the first direct selling company to form a national Heart Walk team, in support of the American Heart Association. Through Thirty-One Gives, over 3,800 consultants and employees participated in over 60 Heart Walks across the country and raised over $190,000 to support the fight against heart disease, the No. 1 killer of women. These efforts will continue in 2013.

Monroe says, “We know that heart disease affects many of our Thirty-One consultants, employees and customers, so we are excited to raise awareness and funds for life-saving research to save the lives of women across the country. Our goal is to empower and inspire women across the country to take charge of their heart health and take a stand against heart disease.”

Gives Round Up! Raises 260K+

Recently launched last May, the Gives Round Up! program provides Thirty-One Gifts customers with a chance to further the company’s mission. Thirty-One Gifts customers have the option on their order form to donate extra change by rounding up their purchase to the nearest dollar. Through programs like this a little change adds up to make a huge difference in the lives of women and girls across the country.

Rebecca C. says she enjoys not only helping women and families but also the personal commitment that the programs instill in consultants. “By getting involved in charity organizations, I open my heart and my life to be broken by the needs and pain of others. That is why I feel so strongly about the women of my team not only getting involved with Gives by rounding up the change and promoting U R U items, but also by finding ways to give of their time and talents. This really captures the heart of our consultants, and it is when they find something to invest and believe in that our company becomes bigger than a bag to them.”

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

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Editor’s Note: DSN recently spoke with Greg Provenzano, a founder and the President of our featured company, ACN, about his experiences over the last 20 years and his views for the future. Here’s what he had to say.

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DSN: What is the one thing you enjoy most about being the top executive of ACN?

GP: There have been so many successes over the years, so many memorable moments. But there are two things that come to mind that make all the challenges, all the uphill battles worthwhile: Seeing how ACN has positively impacted people’s lives and watching new leaders emerge—and knowing with incredible pride and satisfaction that in some small way we had a hand in their journeys.

DSN: As you think back over the last 20 years, what do you consider the most important decision you made that contributed to ACN’s success and longevity?

GP: The most important decision we as co-founders made was our first decision—the decision to start ACN. We didn’t like what we saw in the industry; we weren’t satisfied with the other opportunities out there, so we made a decision to do something. See, every great success is the result of someone just deciding to do something—to take action. Had we waited for someone else to come along and create the kind of company we wanted to be a part of, there would be no ACN today. And the single most important decision we made that helped ensure not only that there was an ACN, but also that we were around for the long term was to put others first in every decision we made since that very first one. It’s never been about us as individuals—but about doing something that would help change the lives of countless others.

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

GP: We are fortunate enough to be a part of one of the most dynamic and exciting industries in the entire world, but along with that comes an incredible amount of change. Regardless of the product or service being offered, the demands of consumers change every day and the needs of our Independent Business Owners (IBOs) change every day. As individual companies, we too have to be flexible to change. We have to constantly look at our business models, our tools and even our products to ensure we are adapting with the marketplace. Avoid the pitfall of becoming content with your success; instead constantly ask yourself how you can become better and exceed the expectations of your target audience.

DSN: What is your vision for ACN?

GP: For us, it’s about being the best at what we do. There are so many companies out there, and consumers are inundated with choices. So we want to ensure we are always providing the best opportunity for our IBOs and the most robust product line for our customers. That’s been our vision since Day One—and it’s what will continue to drive us for our next 20 years. Ultimately, by focusing on being the best in every area, it’s only a matter of time until we also become the biggest. One absolutely impacts the other.

DSN: Is there one basic principle which governs your leadership at ACN?

GP: Integrity always has and always will be the governing principle for our company—treating people the way we would want to be treated and placing what’s best for the people, our IBOs, customers and employees, above what’s best for us as individual co-founders. It’s what guides every decision we make at ACN every day. On the IBO side, we understand that our company consists of a volunteer army, people who take time away from their families and other aspects of their personal lives to build their company within our company, so the single most important thing we can do is to treat our people well.

DSN: Leaders often draw on something or someone for inspiration, guidance and direction. Do you have a hero or heroine?

GP: There is such a vast and diverse group of great leaders. Certainly there are countless mentors in and out of the industry, both past and present, who continue to inspire me, but I draw the majority of my inspiration and guidance from biblical teachings. I take what I read and formulate it in such a way that is applicable to advance our IBOs and ultimately our business. Perhaps it sounds simple-minded, but I’ve found that we can learn everything we need to know about living a truly good, blessed life by following biblical principles.

DSN: Which other direct selling company or person do you admire the most and why?

GP: This may sound cliché, but I admire all the leaders and companies that have stood the test of time and are still relevant today. I can relate to these individuals and companies because they had a mindset similar to ours—a willingness and a desire to make the tough choices and do what it takes to be around for the long haul.

DSN: What advice would you give an executive at a young direct selling company to help them take their company to its 20-year anniversary?

GP: One word: clarity! You must have a clear vision of where you want your company to go and don’t waver from that vision. Without a clear roadmap for your company’s future, you will never get there. If you look back at the early days of ACN and the vision we had 20 years ago, the roadmap for success is still the same. We’ve tweaked and perfected it through the years, but our core vision is the same. Secondly, expect the best, but be prepared for the worst. Every success we’ve had as a company has come with incredible challenges. If you are expecting easy, you will fail. Nothing worth doing comes easy, but if you remain true to who you are and stay focused on your vision, it will be an incredible ride—and will be well worth it in the end.

DSN: What’s at the top of your “bucket list”?

GP: Through ACN, I’ve been given an incredible opportunity to travel the world, to see and do things that I wouldn’t have otherwise dreamed possible. So for me, my bucket list is simple. I want to be around to watch my children grow up and become parents themselves. My life will have been a success if I could impart something on their lives—if in some small way I could help them become strong, productive adults. For me, time spent with family and friends are the moments that truly make life worth living. The legacy I leave will be the true test of my time here on this earth.

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Click here to read this issue’s Company Spotlight on ACN.

Last summer and fall proved to be a battleground for a few Wall Street analysts and their direct selling company targets, but Bill Ackman’s Christmastime attack on Herbalife seems to be an all-out war. Ackman is the founder and CEO of hedge fund Pershing Square Capital Management, and he has built a reputation as an “activist investor” who generally takes long positions in companies and pushes for change from a board seat.

But on Thursday, Dec. 20, 2012, Ackman announced a plan to drive Herbalife’s stock price to zero on the basis that the company is defrauding distributors and should be prosecuted under FTC regulations. Commentators and analysts are raising questions about Ackman and his real motives, while also disputing the validity of his claims. Douglas Lane, former Managing Director of Equity Research for Jefferies & Company, followed Herbalife for many years as an analyst and has an in depth understanding of their business model and financial situation. Lane told DSN that Herbalife maintains a very conservative balance sheet and generates a huge free cash flow, operating a solid business that in no way measures up to Ackman’s accusations.

Additionally, Robert Chapman, founder of Chapman Capital LLC, an investment firm specializing in takeovers and turnarounds, has written a guest post at thompsonburton.com pointing out the many flaws in Ackman’s blitz against the 32-year-old company.

Chapman’s examination of Ackman’s analysis makes for compelling reading as he focuses on such points as Ackman’s accusations being old news to both Herbalife and the FTC, which ruled on these issues back in 2004. Ackman’s expertise with more than 300 PowerPoint slides isn’t going to induce the FTC to revisit something they’ve already put to rest. 

Oh, that and the timing. Holding his “theater” (as one writer put it) at year end, immediately prior to December’s option expiration date and during Herbalife’s own blackout period so no response could be mounted seems entirely self-serving. Was the entire 3-hour-plus presentation and subsequent media appearances Ackman’s year-end strategy for propping up his own company, which according to news reports was down for the year as of September?

Interestingly, both Lane and Chapman have disclosed that in their private portfolios, Herbalife stock makes up their largest holdings, at 30 percent and 35 percent respectively.

Michael Johnson, CEO of Herbalife, and his team are preparing a point by point rebuttal to Ackman’s claims to be delivered on Jan. 10. We can’t wait.

Read Chapman’s entire guest post here.