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

Founded: 1998 Headquarters: Seattle, Wash. Executives: Bill Lee, Chairman; Randy Bancino, President Products: Patented Natural Nutrition

Univera carries on the legacy left by its founder by bringing the best of nature to the youngest of humankind.

Although it may seem impossible to imagine life without eating, some hungry children will fall asleep tonight with an empty belly and no hope for food tomorrow. Almost 11 million children under the age of 5 die in developing countries each year. Malnutrition and hunger-related diseases cause 60 percent of the deaths, according to a report published in 2007 by UNICEF.

Seattle-based nutritional company Univera, through its nonprofit arm Serve First, is facing the nourishment problem head-on by partnering with like-minded organizations that reach out to children in need. Serve First has given more than $2.6 million in financial assistance, according to Randy Bancino, President of Univera. “We give to eight to 10 charities each year, but since 2007 we have had a close relationship with one organization in particular, Vitamin Angels,” he says. “They are committed to leading the way in providing essential micronutrients to at-risk populations.” Bancino explains that when children are deprived of these important micronutrients, both their physical and cognitive development are stunted. By partnering with organizations that provide food to the hungry, such as Feed the Children, Vitamin Angels can provide the complement of nutrients that are imperative for the proper development of children ages 6 and under.

“Our desire to improve the lives of others is baked into our culture at Univera,” Bancino says. “The founder of the company, Yunho Lee, started it for the sole purpose of unlocking the impact of plants on human health.” Yunho had been struggling with some health challenges for a long time and conventional medicine was not helping. When a friend introduced him to aloe vera juice, he tried it and was thrilled with the results, feeling that the juice aided significantly in his recovery. Yunho was a very successful businessman and decided to invest in scientific research and development in order to further study the power of the aloe vera plant as well as discover what else nature had to offer in the way of medicinal flora. He wanted to be able to help others find relief from health issues and begin to enjoy life again like he had. His success in business helped fund a team of scientists who focused on specific bioactive compounds that could be shown to help the human body revitalize and renew itself.

---

“The founder of the company, Yunho Lee, started it for the sole purpose of unlocking the impact of plants on human health.”
—Randy Bancino, President

---

Leaving a Legacy of Compassion

That was 24 years ago in South Korea. Today, Univera maintains a global network of farms, research and development teams, and even manufacturing and distribution plants to manage their product line from planting and harvesting all the way through delivering the product to consumers. They also grow Scutellaria, a common medicinal plant, and soybeans. In fact, Univera cultivates more than 10,000 farm acres in five countries—the United States (Texas), Mexico, Russia, China and South Korea. They employ more than 50 scientists and hold 177 patents. “We control the whole process from start to finish,” Bancino says. Although Yunho passed away in 1996, his son Bill Lee has built the company alongside his father since the beginning and carries on his father’s legacy of bringing the best of nature to humankind.

Bill has a passion for charity inherited from his father, according to Bancino. His generosity has been demonstrated in many ways but, as cited on the Serve First website, one of the first humanitarian projects he ever took on through the business was to respond to the severe famine people were experiencing in the mid-1990s in North Korea. He oversaw the cultivation of a rice plantation in the Maritime Province of Russia and was able to send 400 tons of rice to feed those in need.

As Univera’s charitable activities continued it became apparent that the most prudent business move was to form a nonprofit arm of the company. So in 2006, Bill started Serve First as an outlet for the funds being raised to help others worldwide. “Every dollar raised for Serve First goes directly to charity,” Bancino says. “Those who are on the board or work in any capacity for the entity donate their time to do so.”

Bancino further explains that funds funneled through Serve First are raised in both traditional and unique ways. Anyone is welcome to give financial donations at any time to the company—and every dollar donated is matched by Univera. Also, any customer enrolling in a Convenience Plan (an automatic monthly order of at least $150) will provide enough vitamins through Vitamin Angels to support the nutritional needs of four children for an entire year. “A portion of the proceeds from any product ordered on a Convenience Plan is donated to Serve First,” Bancino says. “In addition, enrollees are given the option to donate additional cash on a monthly basis, which is matched by Univera.” Also, fundraisers are held at local events throughout the year and at annual conventions in order to generate donations.

Some conditions in Honduras do not support a healthy environment for children.

Univera’s programs provide malnourished children with a chance to grow into healthy adults.

The mission of Serve First is to deliver nourishment to impoverished children.

The Results Are Impressive

“Over 620,000 children have been supported with essential vitamin A in 2012 alone, with a total of 2.2 million children to date,” Bancino says. “We attribute such success to the purpose-based component woven into our company’s philosophy of sharing our resources and knowledge to make the world better for others.” Everyone, from corporate employees to the associates doing business in the field, is encouraged to engage in improving the life of someone less fortunate, as modeled by Bill. “And the leadership of Serve First works to maintain a balanced approach of providing assistance to both international and local charities,” Bancino says.

When a need arises due to earthquakes, hurricanes, tornadoes and various other natural disasters, Serve First is ready with an immediate response, depending on the situation. “We also have our very own holiday here at Univera to promote philanthropy—Founders Day,” Bancino says. “Every April 5th we close headquarters, but all of the employees show up for work at a local charity. They love it!” Associates in the field are also encouraged to participate and are happy to do so.

Every year a few associates are chosen to join some of the leadership from Univera, Vitamin Angels and one of their partners on a trip to distribute nutritional supplements to children enrolled in their program. Selection for participation in this trip is based on personal donations given to Serve First throughout the year.

In 2012, Kathy Kenney was chosen by Univera to travel to Honduras with the team. “I have been with Univera for eight years and part of the reason I was drawn to the company is the heart they have for helping others in need,” she says. “To be able to observe and join the owner of the company I love, bringing happiness and hope to people less fortunate, was an unforgettable experience.”

A Firsthand Account of Success

Kenney shares that the team visited three poverty-stricken rural areas in Honduras to distribute the vital micronutrients to children. One of her responsibilities was providing a glass of milk for every child who received the nutrient—and there were more than 500. “In one of the villages, the milk was a rare treat and it was like Christmas had arrived,” she says. “Those children don’t even have access to something that is so plentiful to us.”

It was rewarding to Kenney to witness the mothers beaming with joy when discussing the health of their kids due to receiving crucial nutrients. “Although they live in a country where 70 percent of the population is in poverty—often without running water and electricity—the parents I spoke with have the same dreams for their kids that we do,” Kenney says. “And we have the opportunity to help make that happen, to help improve their life experience. We are literally changing lives as we give, providing children with a chance to develop into healthy, vibrant adults.”

The Honduras trip was the first distribution event Bill was able to attend, and when asked how it impacted him to see the fruit of Univera’s generosity, he says, “My days in Honduras have been some of the most meaningful times in my life. This trip has given me an ever-strong affirmation of what we need to do to improve the state of this world as a community.”

According to Bancino, the dreams for the future of Serve First include setting goals that result in the company being able to help more and more people through partnering with Vitamin Angels and others. “We are even refreshing our brand to be able to effectively reach as many people as possible,” he says. And the years of research dedicated to discovering how to capture and deliver the healing powers of plants pairs well with the life-giving mission of Serve First—delivering much needed nourishment to the growing bodies of young impoverished children. “Without that particular nutrition they will simply follow in the footsteps of so many forgotten children in the world who have never even been given the chance to properly develop both physically and mentally,” Bancino says. “We are driven to provide a healthy future full of hope for as many young children as possible.”

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

Founded: 2002 Headquarters: Lehi, Utah Executives: Founder, Chairman and CEO Aaron Garrity; Founders and Board Members Gary Hollister, Joe Morton, Gordon Morton, Kent Wood and Bryan Davis Products: Nutrition and wellness based on the mangosteen

As a music lover, XANGO® Founder and Board Member Gordon Morton gets a big kick out of the fact that his company has lasted longer than the Beatles were together. And while he and his fellow founders are grateful for their company’s success in its first 10 years, they’re hoping to incite a Beatles-like frenzy in the next decade. Guided by Founder, Chairman and CEO Aaron Garrity’s vision, they’ve already challenged distributors to double XANGO’s size by the end of next year.

XANGO’s fab six—Gordon, his brother Joe, and friends Garrity, Gary Hollister, Kent Wood and Bryan Davis—launched the mangosteen juice category creator in 2002. But it was a tough time to start a new company. There were already plenty of other “juice” companies. The dot-com crash was crushing the economy. And investors were a tough sell. Garrity says that XANGO started “with nothing but the idea, our friendship and our dreams.”

Their dreams were so vivid that the founders suffered through a nightmarish first month to create a company with one of the most recognizable brands and personalities in the industry. They simultaneously launched the company, endured a trademark battle, and then struggled through dock strikes and resulting air cargo rate hikes. In the process, their first shipment of mangosteens spoiled. But distributors and orders were rolling in, so failure wasn’t an option. Running on adrenaline, the founders powered through the problems. They closed a new round of financing, re-harvested in two days, chartered a plane and flew in a new shipment of mangosteens. The result: They fulfilled every order on time. It was the first of a decade’s worth of promises kept.

Enduring that rough start paid off. Last month they ushered in XANGO’s 10-year anniversary with 43 markets around the globe, 27 office locations, 49 distribution centers, more than 2 million distributors and about $2 billion in cumulative revenues. Their goal for the future is impressive: to double their business in North America by the end of 2013.

And to think that it all sprouted from a fateful bite of an odd-looking fruit, the maroon mangosteen. XANGO’s Joe Morton worked for a different company at the time and was stationed in Southeast Asia. Friends there introduced him to the mangosteen, a fruit so prized for its delicious taste and health benefits that it was historically known as the “Queen of Fruits.” Intrigued by its flavor and folklore, he mentioned the fruit to his brother Gordon and his friend Aaron Garrity. But he didn’t stop there. He researched its uses, preparations, scientific credentials and market potential. His parents had developed health and nutrition products and brought them to market through direct selling, so he had learned a process from them that he immediately applied to the mangosteen. And when he learned that no other company marketed mangosteen products, it was the beginning of XANGO and the name-twin beverage that would be its only product for half of its first decade.

Ten years in, these two brothers and a best friend (from left: Joe Morton, Gordon Morton and Aaron Garrity) continue to lead and expand the company they envisioned decades ago.

Reliable Basics

That single beverage was a symbol of the founders’ tight focus on keeping the business simple. From the beginning, they made intentional decisions about exactly which facet of the business would change—and approximately when—and which would remain consistent. The XANGO nutritional beverage would always be the product-line flagship, but at a given point it would be joined by other products. The brand would be the consistent underpinning for the whole company. And the compensation plan would offer the predictability that lets distributors build a business they can count on. Gordon is credited with developing the XANGO compensation plan that reflects his three goals.

“It had to be simple so our distributors could explain it to somebody in a conversation over the table without a lot of diagrams,” Gordon explains. “Second, I really wanted a big ‘middle class.’ We wanted a lot of people making good money, making their car payment, making their mortgage payment, or buying groceries from their XANGO income.”

The third goal was that the compensation would be reliable and predictable.

“As boring as ‘reliable’ is, we’ve been able to make good on that promise,” he says. “Our compensation plan is the same as in 2002.”

Endless Innovation

But in a company known for innovation, there’s still plenty of exciting change. For example, the original XANGO® Juice formula has been tweaked over the years as nutritional science uncovered ways to make it even more nutritious. The company now also offers a sibling product, XANGO Reserve. Its higher mangosteen concentration naturally offers an even greater amount of phytonutrients, along with a new flavor.

And last year XANGO took a giant step toward making its packaging and shipping process more earth-friendly. It replaced the juice’s traditional glass bottles with lightweight, high-gloss, crack-resistant plastic bottles that deliver multiple benefits. First, bottle breakage is almost eliminated. The plastic bottles reduce XANGO’s carbon footprint and banish Styrofoam completely from shipping boxes. The move eliminated a substantial amount of waste from each step in the company’s supply chain. The entire case packaging—box, insert, bottle and cap—can be easily recycled, and its reduced size and weight also cut shipping costs while reducing greenhouse gases emitted in the manufacturing and transport of XANGO products by 64 percent. The eco-smart packaging even preserves the natural phytonutrients, flavor and color of XANGO Juice. All markets now use the new packaging.

“By shipping in a cardboard box with [eco-friendly] bottles, we’re not plugging up landfills,” Gordon explains. “We wanted to decrease our imprint in landfills around the world. It fits with our social purpose, and it’s a good decision to make all around.”

In addition to introducing new packaging, XANGO has systematically expanded its roster of products. In spring 2008 XANGO introduced the XANGO 3SIXTY5™ vitamin pack. Later that year came Glimpse® Topical Skin Nutrition, the first personal-care brand to bring mangosteen topical nutrition to a global market. In addition to providing a bigger product portfolio, Glimpse and 3SIXTY5 did something else. They subtly transformed XANGO from a nutritional beverage company into a wellness company with a strong emphasis on the mangosteen.

The line of product powerhouses now also includes dietary supplements plus a hair- and body-care line. Its new line of weight-control products, FAVAO™, was awarded the 2012 ETHOS Award in the Wellness sub-category and named a Product Innovation category finalist by the Direct Selling Association. Every product includes the mangosteen.

“When it comes to product launches throughout the world, the mangosteen story will lace every product we have,” Garrity notes. “Over the next 10 years, every product we’ve prepared and envisioned will incorporate that story. Ultimately, as new research emerges, we’ll combine those innovations with our story.”

XANGO is passionate about giving back, with a particular focus on issues that affect children. Their longtime association with Operation Smile is a touchstone of that commitment.

Women Building Bridges unites XANGO women from around the globe. Pioneered by Senior VP Beverly Hollister, the movement fosters the ideal environment for women—80 percent of networkers—to succeed in all aspects of their lives.

XANGO events draw distributors from all over the world to provide motivation, inspiration and education.

International Enthusiasm

As XANGO has entered new markets, they’ve followed their successful template of leading with XANGO Juice and introducing other products later.

International expansion has been a key element of XANGO’s success story, and it’s a prime focus of its growth strategy today. Joe oversees the company’s expansion strategy in the Americas. He is excited about opening new markets in Central and South America but he emphasizes that the U.S. Latin market is also huge.

“In the U.S. alone, there are more Latinos than the whole population of Canada where I was born,” Joe says. “It’s staggering. It creates tremendous opportunity for the expansion of our existing markets.”

That Latin market stretches south of the border, of course, and at XANGO it’s driven by a strong contingent of distributor leaders.

“A lot of markets haven’t been touched in Central and South America—places where people are seeking to improve their health and wellness,” he says. “For example, we recently expanded into Colombia, and we’re seeing lots of activity there. There’s so much opportunity for growth, mostly being spawned from Mexico. We have a strong business there and a very solid group of people. They’re driving our expansion. At our biggest North American event recently, there were cheers every time Mexico was mentioned. There’s lots of energy there.”

That big event was XANGO’s 10th-anniversary regional convention, where the company dramatically expanded its global “attendance” numbers by continuing the practice they had established the year before, streaming the convention online to any distributor anywhere. For a small fee, distributors around the world could see the convention as it was happening—without ever leaving their home. They could even switch among the five camera angles covering the convention.

“In 2011 [at the international convention in Salt Lake City] we took a 10,000-person event and turned it into an 80,000-person event,” Garrity says. “My vision is that we’ll eventually turn it into a 200,000-person event throughout the world. In the future, we will take that technology and apply it to global distributor groups. Leaders will be able to see into every country and build their business in those countries with no additional setup fees. My intent is to one day facilitate the creation of distributor organizations within XANGO that surpass the size of the whole company in our first five years.”

---

“In 2011 [at the international convention in Salt Lake City] we took a 10,000-person event and turned it into an 80,000-person event [by streaming it online].”
—Aaron Garrity, Founder, Chairman and CEO

---

Double Vision

The vision fits right into the company goal announced at the convention: to double its size by the end of next year. XANGO is fueling that growth through several initiatives, including a challenge called Go Double. The reward framework for it is called Ready, Set, Go!.

Go Double encourages distributors to double their efforts and be rewarded with business growth and success. How individuals choose to Go Double is up to them. Some will Go Double in the amount of money they earn each week or month, while others will double the number of prospecting calls or meetings they hold each month.

Complementing Go Double, the Ready, Set, Go! program challenges distributors to Go Double with their paychecks. The program rewards distributors for advancing in rank quickly through the XANGO compensation plan. And if they do, the company doubles their check, up to $1,000—1K in XANGO-speak—at one rank and pays up to $5,000 at the next. XANGO also rewards distributors who Go Double in 30 days by sending them a case of XANGO Reserve to enjoy personally or to use in their business.

In the first month of Go Double’s life, recruiting jumped by 75 percent. As a result, sales are expected to double in the next year. Clearly, the rewards are much more than short term.

“As we’ve studied XANGO distributors, we’ve learned that individuals who come in with purpose and achieve 1K in their first month of business are hundreds of times more likely to hit top leadership positions in the company,” Garrity explains. “We want to get them working and focused on what it takes to succeed.”

Those new XANGO distributors—who often skew a bit younger than the industry average—can take advantage of technology at its best. In fact, Gordon says that “XANGO is what happens when the MTV Generation grows up and gets a budget.” The company offers a brand-new mobile app that will help distributors explain the compensation plan. Even though they could explain it without props, the app will let them tap technology to professionally demonstrate XANGO’s dedication to innovation.

---

“XANGO is what happens when the MTV Generation grows up and gets a budget.”
—Gordon Morton

---

A distributor group receiving particular XANGO emphasis is women. At its convention XANGO announced a focus on empowering women at every level. XANGO Senior Vice President Beverly Hollister leads the effort through a personal-development program called Women Building Bridges.

“In this industry women make purchasing decisions more than 70 percent of the time,” Garrity notes. “In our company, it’s close to 80 percent. Women hold powerful positions among our distributors and in our corporate ranks. Beverly has joined with dozens of top distributor leaders to hold women’s events in countries all around the world. Depending on where it is held, a variety of subjects are offered that help women learn from each other and learn how to develop greatness in their own lives.”

Even while XANGO celebrates its first decade, the founders look forward to the next 10 years with excitement. Garrity says that XANGO watchers can expect more of the same. For some companies, that could sound a little boring, but for a company that thrives on energy, innovation and creativity, “more of the same” is sure to produce sizzling results.

“I’m happy with our success, but one way you’ll never see me is satisfied,” Garrity insists. “I’m driven to make XANGO a better place for more people. Our first 10 years will pale in comparison to what will happen in the next 10 years.”

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

In 2013 PartyLite will celebrate its 40th birthday as a direct selling company. That’s a pretty remarkable accomplishment!

Actually, it all started in 1909, when a schoolteacher named Mabel Baker began making fine bayberry candles in her Cape Cod kitchen. Clearly, we’ve come a long way since Mabel’s early entrepreneurship. PartyLite today produces more than 600 kinds of Platinum Quality candles—nearly 200 million every year. And today,

• PartyLite is the leading global direct seller of candles, candle warmers, candle accessories and premium home fragrance products.
• There are nearly 60,000 independent PartyLite Consultants in 18 countries around the globe.
• More than 12 million people attend PartyLite parties each year.
• There’s a PartyLite party going on somewhere in the world every 18 seconds!

We’re proud that PartyLite remains “the original and the best.” And those of us among the pioneering direct selling companies do enjoy some distinct advantages. We have an enviable reputation built on years of success. We’re an appealing and trustworthy choice for people looking to join our industry—as so many people are these days. We’ve been through all the changes—economic, business and social. Along the way, we’ve all learned a lot about what works and what doesn’t.

Right now, most companies in our industry are working hard to regain previous sales levels. Many possibilities are being explored. Sometimes the problem is saturation. Or the product needs freshening. Other times, product diversification is the answer. Sometimes it isn’t. Ultimately, most companies are examining who they are and where they’re going—always a valuable process.

But our primary role doesn’t really change. For party plan companies, first and foremost, our job is to support the field every day. So what does that really mean? Where should our emphasis go for the best results? It’s worth looking at.

We spend a great deal of time and effort supporting our field leaders because we cherish them, we’re proud of them and we want to help them support the consultants they lead. But sometimes we devote so much energy to working with leaders that, inadvertently, we may actually isolate ourselves from the very people who drive the business—the leaders of the future.

Like most direct selling companies, PartyLite welcomes consultants of all ages. Some come in more as hobbyists; some are serious income seekers. Generally, the serious income seekers tend to fall into the 25–35-year range. They have the drive, the ambition, the determination and the stamina to succeed. But they live in a very different world. And if we don’t offer them the right kind of support for right now, they aren’t likely to stay. They can always “Google up” a new opportunity.

Key support for right now involves the primacy of technological tools for this generation. These are women and men whose businesses are done on their smartphones and, perhaps, on an iPad or other brand of tablet, both handily tucked into a purse or pocket. They don’t need an office. And soon—very soon—they’ll handle their entire business on one of these devices.

Of primary importance is a parallel truth: Their customers live the way they live. Their time is compressed. Their time outside of their job or their home is extremely limited. Their willingness to host parties in their home, or to attend parties in someone else’s home, may likewise be limited. There are also enormous changes in the way they receive and process information and in the way they shop. The good news is that they still love and want the product. But today, more than ever before, their entire interaction with our consultants needs to be brief, clear, dynamic and compelling.

PartyLite welcomes consultants of all ages.

PartyLite consultants are very active on mobile devices.

Yes, party plan still works, but the definition of a party has changed totally. It all needs to be much, much simpler.

Consultants need to meet the needs of their customers. The party itself has become one of their new tools, and therefore it needs to be genuinely flexible. It has to be a show on the go—practical, easy, fast and entertaining. Women want to get in and get out. They may prefer a more transitional environment. It could be lunch at Panera Bread or dinner at a public location in the evening. Nothing can be a barrier. If that means a week engaging on Facebook, or a 15-minute live demo, or a “meet me for coffee with three friends,” it’s all good.

The same holds true for product information. We still write and print product catalogs, but now we have shoppable, online catalogs designed specifically for this age group. (As I write this, Newsweek magazine has just announced it will no longer do a print version of this major American brand. We’re not surprised.) We have online magazines and blogs and Facebook pages and Facebook groups. Our information is constantly updated. We know these women and men are used to getting information in a few seconds per page, or else they move on. We know our products need to be searchable and interesting—easy to see and easy to buy.

The same applies to training. It all has to happen online. At PartyLite, we’ve had an online learning center for years. Now we’re looking at technology that looks like Skype on steroids; everyone is remote. Training and regional meetings and staff-to-field communications are changing. Right now, 20 percent of our top leaders conduct meetings by streaming live online. The days of driving 50 miles to a regional meeting are disappearing. And our senior staff members spend time every day posting their messages or engaging with like-minded individual consultants and leaders on Facebook. Yes, it’s time consuming, but they really value its effectiveness and intimacy.

Do older leaders resent these changes? Absolutely not! I just attended a luncheon of our Worldwide President’s Club where the members are the elite PartyLite top leaders from 18 nations. Everyone at the table was on a cellphone checking email, Tweeting ideas, posting on Facebook—keeping all the balls in the air. In my own family, my two sons—14 and 22—live their lives through technology, just as you would expect. And my 85-year-old dad is much more tech-savvy than I am. He and his grandsons share a relationship I can only marvel at.

Finally, have you ever watched a 3-year-old try to swipe the TV screen? Keep your eye on her. She knows what’s next, and she just might be a future leader for your company—or mine!

Michael Norris is President of PartyLite North America.