Flying.
The ancient Greeks wrote myths about it, Leonardo da Vinci sketched
machines to do it, and the Wright brothers finally made it a reality.
Through the ages, people have dreamed of the freedom, the exhilaration,
the personal power of flight.

It’s no surprise then that a company that encourages each of us to
empower our “best self” would have a name associated with flight.
“Vollara,” the company’s name, is derived from the Latin verb volan,
which means “to fly.”

Although Vollara officially launched in February, the company isn’t
completely new. Its roots reach back more than 80 years to 1924, when
its parent company, Electrolux USA, was founded. With a reputation for
quality and innovation, Electrolux products were so ahead of their
time, they were chosen to be part of the Smithsonian’s permanent
collection, and the company garnered more than 50 million customers in
its long and prestigious life.

But in 1998, when CEO Joseph Urso acquired the company, Electrolux
USA was at the tail end of a 20-year decline in business. Although the
company’s products continued to enjoy a strong reputation for quality,
the business itself was no longer keeping pace with changes in the
marketplace.

Urso and his team set about transforming the company, broadening its
scope to be more scalable and diverse in its offerings. And so
Electrolux USA transformed into Aerus LLC, a company manufacturing and
marketing a full line of quality products for a healthy home, including
air and water purification systems, and vacuum cleaners and carpet
shampooers. Today, the company is a strong presence in the marketplace,
with an exceptional franchise opportunity and more than 500 franchised
locations providing outstanding service to more than 5 million
customers.

Urso saw the existing Aerus business as an ideal platform to enter the network marketing market.

“Network marketing is the most powerful opportunity I have to
genuinely help people live a better life,” Urso says. “That is what
makes me happiest.”

Urso entered the network marketing business in March 2009, when
Aerus acquired the operational assets of EcoQuest, a network marketing
company with a full line of products focused on environmental
purification. In just under a year, Urso and his team transformed the
EcoQuest platform into Vollara, a new company with a mission to promote
“Uncompromising Health.”

What is “Uncompromising Health”? It’s both a product philosophy and
a business approach. On the product side, the phrase encompasses
solutions for a healthy environment and a healthy life: air and water
purification products, as well as science-based nutritional products
that feature patented or proprietary ingredients—what Urso calls
“protection from the inside out.” On the business side, it’s an
opportunity to empower entrepreneurs looking to achieve financial
health, and gain the emotional health that can come with it.

‘Uncompromising’ Products

“Our strategy is to have the world’s best products, products that
are rooted in science and that we can protect to give us a platform for
years to come,” Urso says.

Vollara launched in February with a slate of products in three key
categories: Shape Your Weight®, Protection from the Inside Out® and
Protection from the Outside In®.

Shape Your Weight includes weight-management supplements, as well as
products to enhance energy. Re:Activate for energy and Re:Place
meal-on-the-go formulas are available in both soy and whey-based
formulations and in vanilla and chocolate flavors.

The Protection from the Inside Out category includes a broad range
of supplement products, including Re:Sist, which Urso calls “the
world’s most powerful natural immune booster.” Other products in the
category address nutritional issues, such as aging gracefully, bone
health, joint and digestion support, eye health, and men’s and
women’s needs.

“Every product has science behind it,” Urso says. “In almost every
case, there’s independent lab or clinical research behind the products
and there are ingredients or formulations that are patented or
proprietary. It’s a very unique value proposition, because we can
protect our products. It’s our competitive advantage.”

The final category, Protection from the Outside In, features both
new products and some carried over from the EcoQuest product line. This
category includes FreshAir air-purification products; LivingWater
products to filter and pH-optimize water; and Laundry Pure, a unique
product that allows clothes to be washed without hot water or detergent.

“It’s an amazing technology,” Urso says. “It really works.”

‘Four Corners’ of a Business

Urso’s success in transforming Electrolux USA into Aerus and then
relaunching EcoQuest as Vollara is based on what he calls the “four
corners” of a successful business. It’s an approach that has worked so
well for him, in fact, he’s currently writing a book on the subject.

Corner one is a competitive business strategy, a well-thought-out,
clearly articulated company focus, along with a plan to reach customers
with a value-driven approach. In the case of Vollara, that strategy
centers on the concept of “Uncompromising Health” and the exclusive,
protected products and business plan to achieve it.

Corner two is financial strength. But just as important as the right
business strategy, Urso notes, is having the resources to achieve it.
With 80 years of history, an established place in its community and
market, and a presence in 23 countries, Urso is confident that having
Aerus as a parent company fills this corner well for Vollara.

The third corner is a systemic business process, and the fourth is
great people. In shoring up these aspects for his new venture, Urso
points to his management team and the systems that have supported
Aerus’s growth. In addition to executives with experience and expertise
in network marketing, the Vollara team includes some managers and
executives who have been part of the Aerus organization for 10 years or
more.

“Our company’s culture is like a very intense family,” Urso says.
“Everybody is aligned—we haven’t lost any senior executive for over 10
years. We’re very good at bringing people in who share our values, and
this is a strong, values-driven culture.”

A Culture of Empowerment

Vollara’s Web site’s opening animation challenges each visitor to
“EMPOWER your best self®.” That concept of empowerment is at the core
of Vollara’s values system. The company’s products are designed to
maximize personal health and create an environment in which all can
thrive. And Vollara’s compensation plan, a hybrid of unilevel and
binary plans, is engineered to build financial health. All in all, the
Vollara business opportunity puts individual distributors in charge of
their own health and financial future, an empowerment approach if ever
there were one.

In support of this opportunity, Urso says that the company has been
hard at work assembling “the best tools in the industry” for
distributors, including Web sites and back-office tools, as well as
print and video tools.

The Vollara empowerment philosophy includes
employees as well as distributors. The low turnover at the company,
Urso says, stems from the fact that “we’re able to help people advance
their careers. Everybody knows what their role is, and everybody is
able to add value and help to reach the overall goals of the company.”

‘Seven Strategy Plan’

Although Vollara is a new venture, it runs like an established
business, in part because of the strong backing of its parent company,
Aerus. It’s also because Urso and his team have been applying what they
call the “Seven Strategy Plan” to Vollara from the moment it opened its
doors. The seven strategies add up to a business plan designed to be
scalable and maintain a consistent focus on the company’s goals:

Strategy No. 1: Apply a solid foundation of business systems.

With a strong parent company and business processes in place,
Vollara is well-positioned to hit the ground running and to weather any
of the volatility that can often plague startups.

Strategy No. 2: Articulate a clear brand identity.

As a company, Vollara clearly understands what it is and what its
brand stands for. This clarity can be an enormous asset as the company
grows because it helps to keep employees and distributors focused and
aligned to achieve the company’s objectives.

Strategy No. 3: Create products for uncompromising health.

Although Vollara offers a wide range of products, they all support
the same overall health goals. As a result, the products are consistent
and complementary, and the opportunities for new product offerings fall
into broad, but clearly defined, areas. In fact, Urso notes that the
company has adopted a “three-year product cycle,” meaning that every
product has a research and development team behind it dedicated to
continuously finding improvements to release within three years.

Strategy No. 4: Provide the field with world-class tools.

Company support for distributors is critical to the success of any
network marketing company. Vollara is dedicated to providing the best
state-of-the-art tools to distributors, both at the company’s launch
and as the company grows.

Strategy No. 5: Reward success every step of the way.

Vollara’s compensation plan is designed to reward achievement right
away and to provide additional rewards as a successful distributor
progresses. By not being “top-heavy” or “bottom-heavy,” the
compensation plan provides balance and growth potential
for distributors.

Strategy No. 6: Commit to an international platform.

Because of the existing Aerus network, Vollara launched with a
presence in 23 countries, meaning Vollara distributors are free to
network and grow their businesses globally.

Strategy No. 7: Nurture a kind, welcoming culture.

As a values-driven company, Urso says Vollara is able to establish
and promulgate a culture that is welcoming and kind as it
grows—perfectly in sync with the company’s goal to empower its
distributors.

Launching from Strength

Unlike most startups, Vollara launched with a large and established
distributor force. Between EcoQuest distributors who are now part of
the Vollara organization and new network marketing professionals who
are joining the company, Urso says that active distributors over the
last year number in excess of 30,000. And Vollara begins its life as
part of the Direct Selling Association, of which Urso is a member of
the board of directors.

What’s in Vollara’s future?

“I hope that Vollara will become one of the most successful and
unique network marketing companies over the next three to five years,”
Urso says. “We have a great team of leaders, and the infrastructure,
products and underlying financial stability we need to emerge as one of
the strongest companies in the industry, joining other great companies
that empower people to live the life of their dreams.”

Des Walsh President, Herbalife	Michael O. Johnson Chairman and CEO, Herbalife

 Herbalife Founder Mark Hughes was a visionary, but when he opened the trunk of his car to sell the first bottles of Formula 1, he probably had no idea that the company would grow to be one of the best-known direct selling companies in the industry, conducting business in 72 countries worldwide.

Today, Herbalife’s 1.9 million independent distributors offer fiscal and physical health through the company’s business opportunity and its protein shakes and snacks; its nutrition, energy and fitness supplements; and its personal-care products. Herbalife’s 2009 net sales of $2.3 billion are a far cry from its humble beginnings. And thanks to an enthusiastic salesforce and an aggressive sports marketing campaign, its brand is globally recognized.

This year, the company celebrates its 30th anniversary and is looking forward to launching “The Herbalife Decade” at a special celebration.

“It will be a celebration of the first 30 years of Herbalife, focusing on special moments and highlights in those first three decades,” says President Des Walsh. “But, most important, is that we’ll lay out our road map for the next 10 years—The Herbalife Decade. The last 30 years have laid an outstanding foundation. How tall you build a building is related to how strong its foundation is, so now’s the time for us to really get started.”

That foundation is built on products that allow the company’s independent distributors to build a solid business.

“It’s always been about the products that help people get healthy and believing in the products and how good nutrition could change the world,” says Herbalife Chairman and Chief Executive Officer Michael O. Johnson. “Herbalife’s founder, Mark Hughes, was a true visionary. In the beginning years, Mark was able to get people to believe in themselves and showed them the possibilities. He’d say, ‘Imagine how you could help people; imagine if we took this business to other countries; imagine if there was a canister of Formula 1 in every household.’ This was before everyone was talking about weight loss and before protein shakes were commonplace. Our message hasn’t changed. A lot of those people are still part of this company, and they, in turn, introduce new people to the same dream.”

Planning for Dreams to Come True

As it continues to spread its founder’s dream, Herbalife will focus on two key areas: greater penetration in the markets where it operates today and opening new markets. It’s well-positioned to do both.

“In many markets, we already have a strong, healthy business, but we still reach just a small percentage of the population,” Walsh says. “We’re working on an initiative that will focus on specific cities, provinces and local areas where penetration isn’t great. We’ll work with our distributor leadership to increase penetration in those areas.”

To prepare to accelerate entry into new markets, in 2009, Herbalife completed the installation of an Oracle platform worldwide. The $100 million platform provides the capacity to open five or six new markets each year. Herbalife also established a dedicated team focused on new market expansion.

As it grows its business, Herbalife’s products are typically the company’s key recruiters. Most distributors start as consumers. Their experience leads them to recommend the product to others, and then they become interested in having an Herbalife business.

“Mark Hughes taught distributors to use the products, wear the brand and talk to people,” Walsh says. “That same philosophy of use, wear and talk is the same thing that works just as effectively today.” He adds, “We believe at Herbalife that we have the best compensation plan in the industry, but, in addition, distributors achieve success in that plan by bringing good health to people in their communities. Distributors speak about giving the gift of health to others. They don’t talk about selling products. That’s important psychologically.”

Spreading Success Through Sports

Promoting health is also important as Herbalife looks for ways to enhance its brand recognition. The ideal vehicle? Sports sponsorships. In its premiere sponsorship, Herbalife is the presenting sponsor of the Los Angeles Galaxy. The agreement, which began with the 2007 season and extends through 2012, gives Herbalife on-jersey exposure for its brand. The company became the official nutritional supplier of Italian football club Internazionale FC (“Inter”) for the 2008/2009 season. As part of the deal, Herbalife’s H3O Pro isotonic drink, available throughout Europe, became the team’s isotonic drink. In September 2009, Herbalife also became an official sponsor and official provider of nutritional products to one of Spain’s leading La Liga football teams, Valencia CF.

Support doesn’t stop with professional sports. The company also signed a four-year breakthrough agreement with the American Youth Soccer Organization (AYSO) that makes Herbalife the official nutrition advisor and official health and wellness provider of the country’s leading youth soccer organization. Similar to Herbalife’s agreement with the Los Angeles Galaxy Major League Soccer club, the AYSO sponsorship gives Herbalife the rights to display its name and logo on the front of AYSO jerseys, a first for the nonprofit national organization.

“Soccer, or futbol, in particular, has global appeal, and the sport has helped us introduce people to the company who might not otherwise hear about us,” Johnson says. “The events give our distributors an opportunity to meet people one on one, and the sponsorships help promote our philosophy of living a healthy, active life. Our name is becoming part of the mainstream—you’ll see our name on a jersey in a television program or on billboards. All of these things help make it easier for our distributors to conduct their business.”

The company also sponsors more than 50 sporting and fitness-related events, activities and athletes around the world that define the company’s commitment to a healthy, active lifestyle supported by good nutrition.

Scientific Support

Herbalife makes sure that its products offer good nutrition that supports a healthy lifestyle through its focus on research and development, along with participation in clinical trials of its flagship products.

“For our distributors, the scientific validation of our products is all about confidence,” Walsh says. “Being in a position to reference independent clinical studies as they talk about products is very empowering for them.”

Herbalife’s R&D organization conducts testing on new ingredients, delivery methods, and products for both nutrition and skin care. In addition, the Mark Hughes Cellular and Molecular Nutrition Laboratory, based at the University of California, Los Angeles (UCLA), Center for Human Nutrition, provides UCLA researchers with enhanced capabilities to study the large variety of compounds found in plants and herbs and their effects on human health. State-of-the-art analytical equipment is used to perform many of the initial key steps in research that begins in the laboratory and extends to human clinical trials. Three clinical studies have been completed that show the effectiveness of Formula 1. The studies, conducted at UCLA; The University of Ulm, Germany; and Seoul University National Hospital, Korea, showed that using Formula 1 meal replacements twice a day led to effective weight loss.

“We’ll continue to invest in nutrition research, studies and ingredient usage,” Johnson says. “Everyone in our industry should be able to hold up their product and show the science that went into its development, the justification for ingredients, and how it was proven to do what it’s supposed to do.”

The company’s scientific reputation is so solid that it has been able to add a star to its management team, Vasilios H. Frankos, who retired in March from the U.S. Food and Drug Administration.

“Bill Frankos is a leader in the supplement industry,” Johnson says. “As Senior Vice President of Product Safety and Compliance, he exemplifies Herbalife’s commitment to providing science-based nutritional supplements of the highest quality available in the marketplace.”

Focus on Distributors

Herbalife’s commitment to quality products through research and development, clinical trials, and even a strong management staff indicates just how much devotion it has to its distributors’ success. Every direct seller recognizes that a company’s success depends on its distributors’ accomplishments. But Herbalife takes the concept very seriously. It regularly involves distributors in decision making through conference calls and meetings. It even has two distributors who sit on the Herbalife Board of Shareholders. Walsh says that their participation has been highly beneficial, providing the distributors’ perspective as strategic issues are discussed.

And Herbalife makes sure that successful distributors are well-compensated—not only through the regular compensation plan, but also through the company’s unique Mark Hughes Bonus Award.

“It’s our annual equivalent of the Oscars,” Walsh says. “It’s open to all presidential team members who meet certain criteria in relation to their qualifying downline.”

This year’s highest bonus check paid to an Herbalife independent distributor was $2 million. In total, a record $36.5 million was paid to leading independent distributors from 29 countries—an impressive number during any year, but especially since it recognizes results in economically challenging 2009.

The milestones that Herbalife can claim from its first 30 years—becoming a publicly traded company on the New York Stock Exchange, seeing the results of clinical studies using its products published in a medical journal, doing business in 70-plus markets, and reaching 50 Casa Herbalife programs—make its executives justifiably proud. But they don’t rest on their considerable laurels. Their focus is on The Herbalife Decade.

Herbalife Founder Mark Hughes was a visionary, but when he opened the trunk of his car to sell the first bottles of Formula 1, he probably had no idea that the company would grow to be one of the best-known direct selling companies in the industry, conducting business in 72 countries worldwide.
“Inherent in the health and economic challenges facing society, there’s an unprecedented opportunity for Herbalife,” Johnson says. “As we enter our fourth decade, I believe it will be our most impressive ever.”

Herbalife’s Hispanic Harmony

While Hispanics are the fastest-growing minority group in the United States, and the growth rate of Hispanic-owned businesses is three times faster than the national average, the growth of Hispanics in Herbalife is more personal. Like almost everything else, it’s driven by distributors.

A group of strong Hispanic leaders have propelled Herbalife’s success among Hispanics, through both products and the company’s financial opportunity. Their success stories have helped those leaders attract others and build vibrant businesses.

Herbalife President Des Walsh points to one of the company’s new President’s Team members as a stellar example of success among Hispanic leaders.
“She was able to buy a house in a community, where, just a few years earlier, she had cleaned those houses to make ends meet and support her children,” Walsh says. “Now, one of her children just completed college. She would never have been able to accomplish that if she hadn’t graduated from being a housekeeper to become a successful businesswoman. Her financial success gave her the ability to set a whole-new vision for her children of what they can become in life—for generations to come.”

He also notes that Herbalife has been able to tap into an important cultural characteristic: Hispanics tend to rely on personal recommendations for products they purchase.
“It’s true more in the Hispanic community than in the general marketplace, so since our products are sold through personal testimonials, that community represents an ideal base for Herbalife products,” he says. And he points out that Herbalife’s nutritional products help balance the traditional Hispanic diet, which tends to be high in calories and fat.

Walsh credits the company’s strong, capable Hispanic leaders—some of whom have been with the company for more than 25 years—for embracing the vision of Herbalife Founder Mark Hughes and ingraining it into the new generation of distributors in business today. The company has supported them by providing a range of Spanish-language tools and marketing materials.

“For many immigrants, Spanish is the language they’re comfortable with, and it’s spoken in their communities and homes,” he says. “In addition to those tools and materials, we have local meetings all over the United States in Spanish, including some large-scale corporate meetings. It’s been an enormous source of pride and confidence for our Spanish-speaking distributors that the company is investing so heavily in supporting them and their businesses. That’s helped foster further growth.”

Those Spanish-speaking distributors have also invested in Herbalife by helping it expand into other Spanish-speaking countries. For example, when the company recently expanded into Paraguay, its experienced Hispanic distributors went there to conduct initial opportunity meetings and training, and to introduce the Herbalife history and business ethics to prospects and new distributors.

Few changes in the product line have ever been necessary for it to appeal to Herbalife’s Hispanic fans. The company did release a mango-flavored aloe drink that was hugely successful among Hispanics, and some packaging has been changed to make it more convenient or affordable. But Herbalife’s message of bringing good nutrition and business opportunity to those who need it resonates strongly among Latinos.

“Hispanics are very family-oriented, and their desire to help other family members, whether financially or through better health, is deeply ingrained in their culture,” Walsh says. “Because Herbalife represents the opportunity to do both, Hispanics have embraced Herbalife strongly all around the world.”

A Culture of Caring

Herbalife doesn’t settle simply for improving the health of distributors and customers. Through the Herbalife Family Foundation (HFF), it creates partnerships with charities to help meet the nutritional needs of children at risk.

The company’s tradition of philanthropy was formalized in 1994 when Herbalife’s late founder Mark Hughes created the Herbalife Family Foundation, a nonprofit organization supported by Herbalife Ltd., its independent distributors, employees, friends and families.

In 2005, Herbalife Chairman and CEO Michael O. Johnson saluted Hughes and one of HFF’s initial efforts when he chose the name of a Brazilian orphanage as the moniker for an expanded outreach program that now serves more than 12,000 children in 50 international locations. Hughes had visited Brazil in 1998. While there, he discovered an orphanage in dire need of repair and provided funds to renovate the building. It later became known as Casa Herbalife, the name of the program that is now HFF’s flagship. Since its inception, Casa Herbalife has expanded by about 10 partnerships a year. Already, in 2010, it has announced grants to organizations in Quito, Ecuador; Chicago, Illinois; and two locations in Mexico.

“I travel around the world, and I see the kids we’re helping through these programs. It’s often heartbreaking to hear the stories of where they came from,” Johnson says. “But we have an opportunity to help them—through good nutrition, funding and volunteerism—and we’re doing it, neighborhood by neighborhood. We have more than 50 of these programs now. You see the smiles on the kids’ faces when our distributors and employees show up, and you just know you’re doing the right thing. And I’m proud that we can help them be healthier through good nutrition.”

Partner organizations receive grants that support childhood nutrition, but they may use the grants in a multitude of ways. In addition to food itself, organizations have renovated kitchens, offered food-preparation classes, taught nutrition classes and more. In addition to nutrition grants from Casa Herbalife, the company’s local distributors often support the organizations through fundraising and volunteerism. For example, Herbalife independent distributors in Quito combined forces with HFF and raised enough money to purchase a new, larger building to house the organization.

Herbalife encourages distributors to engage in philanthropy and to support their communities, and it recognizes their efforts in a variety of ways. The most visible and prestigious recognition is the Herbalife Family Foundation Humanitarian Award. The award recognizes an Herbalife independent distributor who exemplifies community service and, through their outstanding involvement and dedication, has made a significant contribution to changing lives. In March, the award was presented to Leslie Stanford, an Herbalife distributor since 1980, for her philanthropic efforts, including sponsoring PeaceJam, an organization that brings schoolchildren together with Nobel laureates.

At the same time, HFF provides funds to organizations assisting victims of natural disasters. HFF is a global nonprofit organization working in communities around the world. Currently, it is supporting disaster relief efforts in Haiti and Chile.

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Grace’s story is similar to so many others Gold Canyon Founders Curt and Karen Waisath have heard: It starts with a happy family. Mom and Dad are working. The kids are healthy. Then, suddenly, a child falls ill. Tests are conducted. A diagnosis is returned. Lives are changed forever.

For Grace, the diagnosis was acute lymphocytic leukemia. The 7-year-old was flown to Seattle’s Cancer Care Alliance, a tube inserted in her chest in preparation for the 12 months of chemotherapy ahead of her. As Grace and her doctors waged war against the disease, her family was battling the emotional and financial hardships that come with caring for a child in need.

The Waisaths are familiar with these stories of struggle because, for the past 10 years, they have been listening to the prayers of families such as Grace’s, and through their Prayer Child Foundation, have helped answer many of them.

Making a Promise

The Waisaths founded Gold Canyon in 1997 as an opportunity for others to generate additional income by selling quality scents, décor, and home and body care products. Like many young business owners just starting out, they were barely able to make ends meet and worried about how they could keep their company going.

However, just three years later, Gold Canyon was thriving. The company was profitable, and the initial salesforce of 136 demonstrators in six states had expanded and was continuing to steadily grow. That’s when the couple turned their focus to a promise they had made when founding the company.

“We truly made a promise with God that if we could make this successful, that when the time came, we would give back to the community,”  Curt says. “In 2000, we knew what we needed to do, so we started looking around and asking what our purpose was. And everywhere we looked, we saw or heard stories about children. The TV, newspapers and radio were talking about children in need, so we believed that was just our sign that we needed to focus on children.”

With their purpose clear and a passion for giving back guiding them, the couple established the Prayer Child Foundation. “As any parent knows, when your child gets sick, you’re nervous and you worry, and you begin praying to a higher being, whatever that may be for each individual,” Curt says. “In a lot of the stories we heard, the children were praying for a better life as well, whether it was because they were in an abusive situation or because of an illness they had. Both parents and children were praying for a better life, and that’s what drove us to call it the Prayer Child Foundation.”

The Waisaths believe that they and the entire Gold Canyon family have an obligation to invest in “the world’s most valuable asset and finest resource: children.” With the goal of helping a child or family have hope, the foundation focuses on physically and emotionally challenged children and teens 18 years and younger who are struggling with diseases like cancer or autism, or who have been abused or involved in other dangerous situations.

Prayer Child Foundation President Karen Waisath manages an all-volunteer staff, keeping operational costs low and ensuring that 99 percent of the donations received go toward assisting children in need.

“The Prayer Child Foundation is something that is very near and dear to my heart,” Karen says. “There are so many children who, through no fault of their own, struggle with life-threatening issues to their health, and their families are in need of emotional and financial support. Many of the children and their parents pray daily for a healthier life. The mission of the foundation is to have a hand in answering their prayers and to help these children have the joys of a normal childhood.”

Most of the foundation’s requests come in the form of pleas for financial assistance. When a child is diagnosed with a life-threatening disease, a family’s life is often turned upside down. Mom quits her job to care for her child, cutting the family income in half. Dad takes vacation days to attend doctors’ appointments, and once his vacation days are gone, starts taking days off without pay. Medical and household bills begin to pile up, and the family’s already hurting bank accounts are further depleted. That’s where the Prayer Child Foundation steps in.

The foundation typically receives 20 to 25 requests for assistance each month. However, remarkably, in the foundation’s 10-year existence, it has never denied a request, resulting in over 2,500 families being helped through more than $2 million in assistance.

A Foundation ‘Where You Are’

The Waisaths created the Prayer Child Foundation with two purposes: to make a difference in the lives of children by providing financial support and to offer others an opportunity to help others.

Those most involved in the cause are the Gold Canyon demonstrators, who now number more than 27,000 in all 50 states and Canada. They participate in  fundraising initiatives through the selling of Gold Canyon product, from which a portion of the annual sales go to various children’s charities.

In addition, 100 percent of the profits from the company’s “Candles for Kids” product line are donated to the Prayer Child Foundation. Each candle label in the line depicts a child kneeling in prayer, representing the Gold Canyon commitment to helping children. The candles’ white wax represents the innocence and purity of the deserving children, and each pastel color on the label symbolizes a way the foundation encourages, supports and assists children in need—pink for emotional support; blue, physical support; and yellow, the opportunity community involvement offers to ease the challenges a child may be facing.

Demonstrators can also become actively involved in the foundation’s mission by nominating needy families they would like to see supported. “They are really our biggest advocates of the foundation,” Curt says. “They promote it at the parties, and, in turn, they are our biggest requestors, because it is their foundation, their opportunity to make a difference. Just because we are in Arizona does not mean it is an Arizona foundation. We have no boundaries. It’s a ‘where you are’ foundation.”

The Waisaths say one special aspect of a demonstrator’s involvement with the assisted family is the ability to personally deliver the donation. “When a demonstrator submits a request for a family, we send the check to them, and then the demonstrator goes and presents it to the family,” Curt says. “It’s normally pretty emotional, as the family doesn’t even know the demonstrator made the request. They are so grateful.”

Gold Canyon also sells bracelets to raise funds for the Prayer Child Foundation, and last year held “The Candle Game,” an online event that donated 10 cents on behalf of every person who participated. According to Karen Waisath, the game brought greater awareness to the needs of many children and gave hope to families feeling overwhelmed by their circumstances, especially those without insurance.

In 2010, Gold Canyon plans to participate in walking events, which have become very popular with many of the company’s demonstrators. “One thing that is really starting to carry out in our field is walks,” Curt says. “We had a couple of demonstrators last year do walks and raise the money for the foundation, and that was shared at our national convention. So, this year, we have about 10 different walks across the United States and Canada planned that will raise money for the foundation.”

Addressing Worldwide Prayers

Though the Prayer Child Foundation focuses mainly on assisting families in need, it has also contributed to several local and national charities, including the Phoenix Children’s Hospital, March of Dimes, National Children’s Cancer Society, Andre Agassi Charitable Foundation and Junior Diabetes Research Foundation, to name a few, as well as international organizations’ relief efforts.

In 2005, the foundation partnered with Save the Children to restore hope to areas devastated by the December 2004 Indian Ocean earthquake and tsunami that killed an estimated 230,000 people and left more than 1.6 million men, women and children displaced.
And in response to the catastrophic earthquake that struck Haiti at the beginning of the year, Gold Canyon held its largest candle fundraiser ever. For each fundraising candle purchased between Feb. 12 and March 31, an average of $10.08 was donated to Save the Children’s efforts in the country.

“Save the Children has a commitment to being in Haiti for five years to help out with that tragedy,” Curt says. “That’s five years’ worth of effort over there. A lot of times, we all believe it happened in January, and we’re sitting over here thinking it’s all good now over there. It truly is a long-term challenge that Save the Children is committed to.”

Since the disaster, Save the Children has provided life-saving assistance, including food, water and shelter, to more than 300,000 injured and displaced Haitians.

“We are delighted to have the support of Gold Canyon and its customers for our Haiti relief and recovery efforts,” says Charles MacCormack, President and CEO of Save the Children. “Gold Canyon has a strong history of supporting children in need, and we are grateful to them for engaging their customers to help the Haitian children who lost so much in the earthquake. Experts predict that it could take up to 10 years for Haitian communities to fully recover. With the added support from Gold Canyon, Save the Children will be able to expand our efforts to reach even more vulnerable children and families in the coming months and years.”

For the Children

Thousands of families facing life-threatening diseases and situations pray for help every day. The Prayer Child Foundation is answering those prayers, helping children experience the joys of childhood and providing hope for a positive future.

“You know, starting to grow a business from zero to $100 million is a big deal, but I think, definitely for Karen and myself, the biggest reward from this business truly is the foundation—the opportunity we have to, in a small way, help someone out there who is struggling,” Curt says.

It’s also been rewarding to the Waisaths as parents. Around the time they started Gold Canyon and began dreaming about what the Prayer Child Foundation would become, they adopted the first of their four children.

“We have a special place in our heart, as any parent does, for children,” Curt says. “And so the Prayer Child Foundation has just been the best thing about our business, hands down.”

Throughout the varying stages of our careers, as practicing dermatologists, product developers, entrepreneurs and businesswomen, time and again, we have experienced our greatest successes when we allowed ourselves to be guided by our passion, particularly when that meant “doing it better by thinking outside the box.”

As we recently wrote in the postscript of our book, Write Your Skin a Prescription for Change, “Life takes you on a journey. Sometimes the journey is one you planned. Sometimes it’s to a place you never imagined. But if you believe in your dream; keep your eyes on the horizon; persevere, even when the road gets bumpy; and, most importantly, work, work, then work some more, you can reach further than you ever thought possible.”

Personally, we continue to be passionate about every aspect of our careers. We can’t wait to get up in the morning and begin our day, whether it’s seeing a patient, creating a new skincare formulation or talking to women about their skin issues. Our goal is to help empower both women and men to change their skin and their lives.

Follow Your Passion

While the saying “Follow your passion” may be trite, it is, nonetheless, true, because when you love what you do, “work” is not a four-letter word. We have never felt that the endgame of our jobs was to accumulate enough savings to retire early and enjoy a life of playing golf and mahjong. Achieving the same level of satisfaction in our careers as our parents—who are in their 80s and still working—was always our goal. Our belief was reinforced by the chairman of our Stanford dermatology residency program, Dr. Eugene Farber, who frequently advised us to find a “hobby” in dermatology or risk eventual boredom in private practice treating acne and other common skin ailments.

Think Outside the Box

Dr. Farber’s advice was both right and dead wrong. After leaving the hallowed halls of Stanford to start our dermatology practices in the suburbs, we discovered our “hobby” treating acne and other common dermatologic maladies, but we were anything but bored. From talking with our patients (our favorite pastime and the reason we often run late), we heard the frustrations they were experiencing. First, because dermatology is such a small specialty, getting an appointment can take months. Given that skin problems are often visible, impacting one’s self-esteem and quality of life, there is a built-in urgency for relief. Second, without access to professional care, people tend to self-treat. Their efforts to manage their common issues, such as acne, skin discolorations or eczema, frequently did more harm than good.

Selecting the correct over-the-counter medicine was confusing, and the available products were both aesthetically unappealing and ineffective. So, our exam rooms were filled with patients who “tried everything,” including waiting for their problem to “run its course,” all to no avail. We became motivated, seeing an opportunity to take our knowledge and experience out of our office and into the hands of individuals, allowing them to manage their everyday skin concerns properly. Proactiv Solution was born. It offered a fresh approach to both healing and preventing acne, and it struck a big chord with people who had been silently suffering with this embarrassing problem for years.

As a result of seeing millions of lives change because of Proactiv, we couldn’t stop our quest to bring additional dermatologic solutions into the marketplace under the banner of Rodan + Fields Dermatologists. The Rodan + Fields products offer medicated skincare regimens that, in addition to acne, target other common problems, from sun damage and discolorations to sensitive skin and wrinkles. Our approach to product development combines cutting-edge, scientifically grounded technology with nonprescription medication and elegant skin care. Our goal is to help people achieve visible results and feel great about their skin’s appearance.

Be Brave and Take the Road Less Traveled

An idea, a product… those are just half the battle. The biggest challenge companies frequently face is distribution, or how to get your product into consumers’ hands. We learned the value of nontraditional advertising through infomercials. In making one, we were taking a huge professional risk. In 1995, infomercials were not a highly regarded method of selling a product and definitely not supported by the medical establishment. The ability to educate and explain our revolutionary approach to treating acne proved to be a worthwhile gamble, and we felt like we were putting our medical degrees to good use.

In terms of distribution, with Rodan + Fields, we made another unconventional choice. Initially, we launched the brand in prestigious department stores, where it became one of the best-selling clinical skincare brands. However, we saw the limitations inherent in retail and knew we could never realize our full potential in stores like Nordstrom or Macy’s. Our products were selling not because of marketing efforts or advertising. The word-of-mouth recommendations that came from witnessing a co-worker or a friend’s complexion transform brought people to our counter.

This “aha” moment spurred us to exit department stores and pursue direct selling as a means of distribution. Word-of-mouth testimonials and personal relationships form the backbone of the direct selling industry. Working with consultants who have experienced the benefits of our products gives us a unique opportunity to talk directly with our customers. And the direct selling industry offered us a conduit to help people in another huge way—to springboard off our success by establishing their own independent business. As unprecedented and unconventional as the exit of our prestige cosmetic brand was from the retail environment, it was a natural evolution, given the personal approach we have always taken on behalf of our customers and our business.

Integrity Is the Name of the Game

Having started with a trite, but true, expression, we will end with one: “You have one chance to make a first impression.” As dermatologists and product developers, our goal is to help everyone look and feel their best; as businesswomen, we try to exceed expectations; and as doctors, to convey that we care.

Rodan + Fields gives us the opportunity to achieve all three. With the direct selling channel of distribution, our mission is to help people achieve financial independence. In the inimitable words of Dr. Rodan’s dad, a Rodan + Fields consultant has the ability “to be your own boss and make your own money.” In today’s economic climate, this has never been more necessary. However, we can assure you that whatever you pursue, success does not come easily. The learning curve is hard, mistakes are made along the way, and setbacks are part of the landscape. But, as we have experienced, the journey is exciting, and the rewards for hard work and persistence are enriching beyond anything material.

Write Your Own Prescription for Change

We love to see the entrepreneurial spirit in the Rodan + Fields consultants and are inspired by their enthusiasm and drive. In support of their efforts to build their own businesses, we like to share the advice that has helped us build ours: Be passionate about whatever it is you do, keep your eyes on the horizon to help you get through the bumps in the road, push yourself beyond your comfort zone, and, most important, do it all with integrity.

Dr. Katie Rodan and Dr. Kathy Fields are the founders of Rodan + Fields. The doctors wrote the national best-seller Write Your Skin a Prescription for Change with Lori Bush and co-wrote Unblemished. Both are Stanford-trained professors of dermatology and maintain private practices in Northern California.

Clockwise from top: John Winterholler, President and CEO; Kirk Newman, Vice President, Marketing and Sales; Curt Ence, Vice President, Product Research and Development; Joel Theler, Vice President, Distributor Relations

One hundred and forty billion gallons. According to the U.S. Energy Administration’s most recent numbers, that’s how much gasoline Americans use annually. Aside from the huge costs to consumers, this staggering number also affects the environment. As consumption continues to rise, more and more harmful chemicals are emitted into the atmosphere.

Eighteen years ago, Curt Ence began selling a fuel additive that reduces harmful emissions and pollutants. Packaged in 55-gallon drums for commercial use, companies around the world have come to depend upon Xtreme Fuel Treatment (XFT). That’s because XFT improves mileage, decreases emissions, increases horsepower and extends engine life.

Over time, as evidence of the product’s benefits piled up, Ence determined to bring the product to consumers. From the start, Ence knew he wanted to market the product using a direct selling model. Before he’d begun selling XFT commercially, Ence had had a successful career as a distributor in direct sales.

In 2007, Ence brought his idea to three other men—John Winterholler, Kirk Newman and Joel Theler. Together, they began to explore founding a direct selling company to distribute the product to consumers. Just two years later, in October of 2009, Syntek Global officially launched.

The Story of Syntek

Syntek’s founders are convinced they’ve got a product that will change the world—and they’re collecting the evidence to prove it. Syntek continually gathers data demonstrating the product’s effectiveness. That includes technical and industrial reports from commercial clients who have used XFT for many years.

“The convenience and multiplicity of XFT’s benefits are unlike anything else on the market today,” Winterholler says. “The product was first patented in 1986, and has been re-patented several times since. It’s registered with the Environmental Protection Agency. There’s a lot of scientific proof behind XFT.

“Our biggest user is PAMA, an international mining conglomerate based out of Jakarta, Indonesia. They treat about 160 million gallons of fuel a year,” Winterholler says. “They’ve done so for the last nine years. PAMA and other companies who’ve been using the product on a long-term basis give us confidence in the testing and data collected over the last 17 years. We know that the product does what we say it does.”

Syntek’s founders challenge all of XFT’s users to do their own scientific research, as well. “Every time we sell the product, we include a tracking chart,” Winterholler says. “We want you to know what kind of fuel mileage you were getting before you used the product. We want you to compare the before and after and prove to yourself that there’s a financial benefit to using XFT.”

Two principles drove the decision to take the product to consumers. The first was economic—XFT could reduce the cost of fuel consumption. “Every time you use this product, it will put money back in your pocket,” Winterholler says. The second was ecological. “We want to do everything we can to preserve the environment. This product reduces emissions by between 20 and 60 percent each time we use it. There’s a huge green component.”

But why direct selling? Doesn’t it make more sense to place a fuel treatment in gas stations? The founders of Syntek don’t think so. “There’s a story that has to be told about why XFT is a superior product,” Winterholler says. “That story doesn’t get told by setting the product on a shelf.

“If you go into an auto parts store, or even a Wal-Mart, and go down the fuel additives aisle, you usually see 12- to 16-ounce bottles that cost between $5 and $10,” Winterholler says. “Typically, they’re very reactive treatments—for if you’ve got water in your fuel line or your engine’s sputtering and so on. Each one of those bottles treats about 12 gallons of fuel. Our product treats 20 gallons and it’s 10 milliliters—2 teaspoonfuls. From a cost perspective, it doesn’t look like you get as much for your money. But, in actuality, XFT’s high concentration gives you a lot more benefit.” And at a cost of only about $2.50 per treatment for distributors, it’s less expensive, too.

Winterholler comes from a large corporate business background, working for companies such as Goldman Sachs, U.S. Bankcorp/Piper Jaffray and American Express. He’s started, run, consolidated and funded large businesses. And since the other founders have backgrounds as successful direct sellers, it’s not surprising that direct sales is the only model they considered.

“Rather than take XFT to the marketplace and spend large advertising dollars to earn brand awareness and the public’s respect, we thought direct marketing was a much more powerful method,” Winterholler says. “We decided to pay all of those revenues that we would otherwise use for advertising and marketing back to the distributors in the forms of bonuses and commissions.”

Early Successes

Early on, Syntek made two seemingly counterintuitive choices, but, already, the company is reaping the benefits. The first was writing Syntek’s commission accounting and back-office software instead of going with an off-the-shelf system. “In the long run, it’s turned out to be a huge benefit because it saved in overall costs and gives us ownership of our own system,” Winterholler says.

Changing the product packaging has also made a huge difference. In the early days, Syntek sold XFT (then known as Syntek Engine Boost 2.0), in 2-, 4-, 8- and 16-ounce bottles. Though a 2-ounce bottle treats eight tanks of fuel, it doesn’t look like much. Syntek’s executives came up with a better plan: single-use foil packages. “We found several vendors who were able to take XFT and put it in a very convenient secure foil pouch,” Winterholler says.

Now distributors can share the product inexpensively. Instead of giving away $30 to $40 bottles, they can hand out a couple of samples for a total of $5. They can get a prospect to try it and become interested in the product or the opportunity, or both.

A Supersized Opportunity

Because XFT began as a commercial product, it is available in the large quantities needed by industrial entities. Distributors are not only allowed to sell commercially, but they’re encouraged to do so. Curt Ence will maintain his previous commercial customers, but all new commercial clients will be solicited by Syntek’s distributors.

Selling to industrial customers provides distributors with an amazing opportunity—the ability to make commission on very large sales of XFT. Whether selling to an individual or a commercial entity, distributors participate fully in the compensation plan. Distributors make a 25 percent upfront bonus on every sale—no matter the size.

“On the surface, it may look distracting,” Winterholler says. “The sales cycle is longer, and commercial sales are more difficult. But, for many people, it’s an opportunity to dream big. Some distributors who’ve spent about 20 percent of their time pursuing commercial accounts are beginning to see the fruits of their labor, both domestically and internationally. They’re starting to see some very big sales.”

A Different Mentality

Syntek’s founders knew they faced some challenges in choosing a direct selling model to market a fuel additive. “So much of the direct selling industry is invested in health and wellness. A lot of distributors may not want to leave their comfort zone—consumable body treatment products,” Winterholler says. “A fuel treatment has a whole-different mentality that surrounds it.”

But they haven’t been disappointed with Syntek’s distributor base—far from it. Already, they’re approaching 10,000 distributors. The caliber of distributors makes the executive team happy as well. “I’ve never met a more sincere group of people in my life,” Winterholler says. “They want to do good.”

On the whole, the salesforce is largely blue-collar. “We’re attracting a new breed of direct seller—people who drive cars, trucks, snowmobiles, four-wheelers—who have a passion for being behind the wheel,” he says.

Each new distributor is given a free 30-day trial of the fully functional Web site, including all the back-office tools. They have access to dozens of data reports as well as a virtual library of everything Syntek produces. “All of the videos, all of the training modules, all of the conference calls—everything is put in the back office on the Web,” Winterholler says. Whether or not they choose to purchase access to the full Web site after their trial, all distributors get a free site with the shopping function where their customers can purchase products.

To support growth and training, Syntek executives offer weekly webinars, conference calls and training calls. “We try to cover the whole gamut of what a distributor might need,” Winterholler says.

Winterholler and the other executives travel frequently. “Our size and our interest in being hands-on mean we spend a lot of time in local meetings across the country,” he says. In lieu of a national convention this year, Syntek will hold six regional conventions in different parts of the country.

And they’re not neglecting their own development, either. Syntek applied to the DSA and is awaiting final approval. “I’ve been to several of the Direct Selling Association conferences, and I’ve been involved in VideoPlus University and SUCCESS Symposium. We’re trying to do our best to keep up with the rest of the industry as well as being an active participant,” Winterholler says.

Future Plans

Visit Syntek Global’s Web site, and you can’t miss the cute little tree frog that peeks from behind products and brightens up the page. “We started using the frog just because we liked it, but it’s become a moniker for the company. It fits in with—and actually has come to represent—the green aspects of Syntek,” Winterholler says. “We’ve named the frog Eeko.”

As Syntek expands—both by adding products and markets—the executives are committed to holding true to their “green roots.” “At our October launch, we introduced Eco-Mist, a waterless carwash. You spray it very lightly on a panel of your car about the size of a door. You wipe it with our high-tech microfiber cloth. It not only cleans your car but puts a shine—almost a wax—on it,” Winterholler says. “Each time you use Eco-Mist instead of washing your car in the driveway using a hose, you save upward of 120 gallons of water.”

And that’s the litmus test for any product Syntek will consider selling: Does it complement the existing products? Syntek is only interested in adding products that fall in line with its mission as a company.

“We feel very confident that we have global implications with XFT,” Winterholler says. So confident, in fact, that Syntek plans to open two new markets soon: Australia and the United Kingdom. “We’re in the process of formalizing the business now. We’ve already got a lot of activity brewing in those areas from a pre-market standpoint. We’re confident that there’s a big market. In the UK today, gas is just shy of $10 a gallon.”

And that, in a nutshell, is why Winterholler believes his company is one to watch. “I think the real power of what we have here is our demographic: It’s anyone who drives. We’ve got a very, very broad perspective.” 

Scentsy Stats Independent consultants: 55,000 New consultants enrolled on average each day: 225 Average annual growth rate: 300% Pounds of wax used in manufacturing each day: 30,000 Shipping capacity per day: 20,000 Customer orders received on an average day: 7,000 Company employees: 53

When the unique little company from Idaho burst onto the direct selling scene in July 2004, who could have predicted that Scentsy’s far-from-spectacular start would almost instantly transform into such a scent-illating story? Certainly not its founders.

Husband-and-wife team Orville and Heidi Thompson took a product that Orville discovered on a business trip and turned the concept into one of the industry’s rocket ships. But while Orville loved the unique nature of the Scentsy scented candle bars, it was Heidi who identified direct selling as the ideal way to sell them while helping others achieve their dreams.

“Orville used to sell things at fairs and shows, and he was always bringing home products for me to look at,” Heidi says. “He was doing a home show in Utah where his booth was across the aisle from a new company called Scentsy. He called me that night and described the product to me, but I didn’t understand. I thought, ‘Yeah, yeah, that will go into the junk pile of other products I didn’t think would make it.’ But then he brought it home, and I actually saw and experienced it.” Everything changed.

Heidi’s sister and mom were visiting at the time. The three spent hours sniffing testers and talking about memories that the scents evoked. They loved the fragrances, the beautiful packaging, and the sheer fun of spending time together while scent-fueled memories filled their conversation.

Orville thought the candle bars would make a good addition to the products he already offered, so he began talking with the Scentsy originators, Kara Egan and Colette Gunnell, about buying them at wholesale. Eventually, he bought out their inventory. But Heidi explored other distribution methods. That’s when she found the Direct Selling Association Web site. At the time, the couple was $700,000 in debt, and only Heidi’s determination stood in the way of their filing for bankruptcy.

A month later, Orville went alone to the DSA Annual Meeting in New Orleans—they could afford only one registration fee. He was eager to learn all he could. He called Heidi and excitedly told her, “This is how we’re going to do it!”

A month later, armed with handmade product catalogs and order forms developed on Microsoft Excel spreadsheets, they held their first home party to show their wickless candles. Their earnings: $75.

“I came home that night crying,” Heidi says. “I said, ‘What did we do? We’re in all this debt!’ ”

Orville and Heidi Thompson

The Smell of Success

But the second party would predict the success to come. Its sales were about $1,000.

The growth in sales set the pace for the upstart company, and since its inception, Scentsy has had an annual average increase of well over 300 percent in both revenue and number of consultants.

Scentsy’s success starts with its unique, scent-sational products. The foundation is a warmer that resembles a small, two-part vase. In the bottom is a low-wattage light bulb that emits just enough heat to melt highly scented cubes of wax in the well on the top of the warmer. The electric warmers can sit on tabletops or plug directly into outlets, nightlight style.

Scentsy offers some 75 warmer styles and about 80 scents. The wax bars contain, literally, all the fragrance that the wax can hold without seeping. That means that without flame, soot, smoke or lead, Scentsy customers can fill their homes with the aroma of everything from Baked Apple Pie to Gardenia to Clean Breeze and much more. Fragrance bars and the larger bricks are scored so that consumers can break them into sections for melting, even mixing and matching fragrances when they feel creative. Travel tins, room sprays and hanging fresheners let travelers carry their favorite Scentsy aromas with them. Scentsy works hard to ensure that each product is a great value.

The Scentsy Experience

But as pleasing to the eyes and nose as the products are, they’re just the beginning. The truly sweet smell of success comes from the whole experience, both at a party or after buyers bring a Scentsy wickless candle home. Scentsy’s unscripted home parties aren’t that different from the evening of laughing and sharing memories that Heidi had with her mom and sister. The experience attracts and retains both customers and consultants.

“When customers go to a party, they see how simple it is. There’s no set script they have to follow. It’s more about showing off the product and having fun with the group,” Heidi says. “Customers see how simple it is and how much fun the consultant is having. They come away thinking, ‘Wow, that was really a party—not what I would have thought it was. I could do that party.’ So the fear factor is small. And our starter kit is very reasonably priced at just $99, so it’s easy to earn back its cost.”

Mark Stastny

Scentsy Chief Marketing Officer Mark Stastny echoes Heidi’s explanation.

“The opportunity itself is simple,” he says. “People attend a party, and they watch a consultant or hostess explain the products. Almost without fail, early into the game, they think, ‘I could do that. It’s not that complicated.’ That’s when they transfer from the customer mindset to potential-consultant mindset. That’s half the equation of getting them there.”

Whether they become consultants or remain customers, Scentsy fans find that having the company’s fragrances fill their home makes it feel, well, homey.

“It goes back to the feel-good aspect,” Heidi says. “I love to come home, open the door and find my house smelling so good. Customers love that feeling when they walk in the door, too. They also have the peace of mind that our products give them. A lot of them leave their warmers on 24 hours a day. You couldn’t do that with a candle.”

She explains that the flame from a candle can start a fire, burn fingers or singe hair. But Scentsy’s products use no flame, and the wax warms only to around body temperature. If a warmer gets tipped over, spilled wax is the only consequence. The low temperature even helps the fragrance last longer.

Originality Rules

Scentsy’s creative team regularly develops new warmer designs and fragrances. It’s a fun but long process. For the spring and summer line, Heidi and Scentsy’s creative team tested some 400 fragrances, finally narrowing them down to about 20.

he team goes through a process of rating each fragrance and then chooses the ones with the highest ratings. Input from their field organization is part of the decision-making process, too.

Originality permeates the process, all the way through the launch. For example, the spring and summer line creatively used social media to send both consultants and customers on a virtual scavenger hunt for new products.

“We wanted to reengage the field after the holidays, so starting the first week of February, instead of putting out a catalog and exposing it to the field, we had them go online and search for the new products using map technology,” Mark says.

Based on clues we gave them through our Web site and on our social media sites, we had consultants and customers do a scavenger hunt for the new products. As they found them, they posted them online. The engagement was amazing. We got more than 1.5 million impressions in a short time with people who were rabidly engaged with the game.”

The game is just one example of the way Scentsy’s corporate team embraces social media and how its customers and consultants respond to it. The company recognizes that its Gen X and Y consultants use social media to build relationships, so it encourages them by providing content and minimizing restrictions on its use.

High-Tech, High-Touch

Social media is just one of the ways Scentsy’s staff stays closely connected with its consultants. It begins when a member of the corporate staff reaches out to each and every recruit, even before the welcome kit arrives. It’s one of the ways that Scentsy sponsors—rather than recruits—new consultants, supporting and mentoring them as they grow.

“We give them an expectation of what their first few days and weeks will include,” Mark says. “We also provide training and development areas on their Web site. Our Quick Start program incents them to get involved in their business early. When they do, their later productivity goes up exponentially.”

As consultants continue in their careers, they may participate in live or phone events with Scentsy executives. Both Mark and Orville host regular conference calls, with Mark hosting calls for the top-ranked group of consultants. Orville mans the phones twice each Monday, opening the lines for discussion and dialog with any director who wants to participate. And participate they do—by the thousands.

“We try hard for authentic communication,” Orville says. “We’ll review anything from shipping times, communications that are coming out soon, and then, if we’re experiencing any problems, I’ll address them and give my insight. Sometimes we can do on-the-spot training to try to resolve something. I let them ask questions, too. Every director in the company can e-mail a question. I answer it on the phone or send it to someone who can. That lets us start to see patterns—where we’re strong or weak. It’s the most important thing we’ve ever done to stay close to the field.”

Up Close and Personal

He and Heidi periodically do what they call “world tours” to connect personally with consultants.

“When we’re there, we don’t sneak in with a security guard, give a talk and leave,” Orville says. “We get there in the morning, greet people at the door and try hard to remember everyone’s names. We meet with them and answer questions. We spend a ton of time personally dealing with consultants, and we try to get into all levels. When you see us at our convention or at a tour stop, we’re in the middle of everyone.”

When they’re “on tour” Orville and Heidi get up close and personal with as many consultants as possible. In the evening after formal meetings, Orville will settle in with a group and share stories. Heidi engages with a different group.

Close contact with consultants, an environment of teamwork and trust between the field and corporate office, and innovative products and product launches are among the ways that the Scentsy community lives out their goal of having a company based on authenticity, simplicity and value—defined as contributing more than you take.

Living Their Values

Jen Pugh

Scentsy Vice President of Human Resources Jen Pugh explains the importance of the culture. “More than any other company I’ve worked for, culture is the cornerstone of everything I do from an HR perspective. It’s been critically important to us to make sure that there’s an alignment with Orville and Heidi from a leadership perspective. That’s created an environment that’s very creative and innovative. There’s a strong level of respect and trust. Due to our rapid growth, we know that mistakes will be made along the way, but what we learn is the key.”

To maintain that culture, Heidi and Orville carefully chose a staff—some from the direct selling industry, some not—who were willing to express differences, but who shared their values. The environment lends itself to authenticity, being yourself. That authenticity is one of the reasons that consultants don’t use a script to sell Scentsy products. They can do it their own way—by being themselves.

“Our differences and diversity bring strength to what we do,” Jen says. “It may sound cliché, but it truly is some of the magic of our company.”

Those values—Scentsy refers to them as “virtues”—are the litmus test for every corporate decision, from which products to offer to the benefits provided to headquarters employees. They’ve allowed Scentsy to grow fast, learn from its mistakes and revel in its uniqueness.

Expanding Internationally and at Home

As the company grows, it is determined to maintain its culture, even as it becomes international. Consultants now number about 55,000, concentrated in Idaho, Utah and Texas. But the company has consultants around the country and in Puerto Rico and Guam. To support them, it added distribution centers in Chicago and Lexington, Ky., to its distribution and manufacturing facilities in Idaho. In late 2009, it expanded into several Canadian provinces.

“Canadian expansion was a test of our ability to translate internationally—including our systems, our message and our products—and to start getting accustomed to dealing with foreign laws, regulations and people, just to see whether we have an appetite for it. It’s gone well,” Orville says. “We’ve been there since October, going in very lean, like we do everything. And we made a profit there in 2009. We have other countries on our mind.”

But just as important as geographic expansion are the company’s plans to delve into demographic and psychographic divisions within the United States.

“We’re like most party-plan companies, very strong in suburban America,” he says. “Someone in suburban New York is similar to someone in Salt Lake City. If you only think geographically, you can’t attack the market very effectively. You have to look at psychographics and target them. How do you adjust the product line to appeal to a different subset of America, whether it’s ethnic or psychographic? There are pockets of people we may not appeal to now, and we want to make adjustments to penetrate deeply into groups of people who are outside the scope of direct selling or outside the reach of our current product lineup.”

Developing products that appeal to more and more customers is simply the latest way Scentsy is working toward Orville’s personal goal for the company: to make it a top-of-mind company in the party-plan portion of the industry.

“Before we got into this, when I thought of party-plan, I thought of Pampered Chef. For me, it was an industry-leading company,” he says. “I think we must set a goal that when people think of our industry, they think of companies like Mary Kay, Tupperware, Pampered Chef and Scentsy. If we’re not one of the companies people refer to when they talk about the industry, then why do it?”

Responding First in Chile As this article was going to press, an 8.8 magnitude earthquake struck the country of Chile. Following the quake, a tsunami decimated coastal communities. Foundation 4Life’s first response included a $5,000 donation to SOS Children’s Village in Concepción and a $10,000 check for the Red Cross Chile Emergency Relief Effort. 4Life presented this check on the Azteca America Television Telethon during the first week of March.

The founders of 4Life Research will tell you that through science, they make successful distributors, who are then better able to commit themselves to works of service in this world.

Three words that become one principle: commitment to service.

When David and Bianca Lisonbee founded 4Life in 1998, service was such an integral component of their lives it became the pillar on which the company stands.

“The value of service has always been stressed in our lives, long before 4Life came to be. We both grew up with great role models in our parents, who taught us that the greatest purpose of our lives here on this earth is to help other people,” says David Lisonbee, 4Life Founder and CEO.

Together, Building People

The executives of 4Life emphasize service, including within their own leadership. The founders are understandably committed to service projects, but company representatives say so are other executives, employees and distributors at all levels.

“One of the phrases we love at 4Life is, ‘He rises highest who lifts another,’ ” says Bianca Lisonbee, 4Life Co-Founder. “True leadership is about helping others reach their greatest potential.”

The company’s motto, “Together, Building People,” demonstrates how the three values of science, success and service link together, with one leading to the other. The Lisonbees see these values as being integral to each other.

“From the beginning, our goal with 4Life has been to build people through science, success and service. First and foremost, we are committed to providing the most cutting-edge, scientifically based products in our industry. These formulations then provide an opportunity for people to succeed in the business of sharing. Success then puts us all in a position to serve,” David says.

Global Service

Bianca believes that 4Life is synonymous with service because of the company philosophy of building people through science, success and service. As the company’s executives see it, 4Life’s science builds the opportunity for success, which brings potential for service.

“It is difficult to separate business building from our philosophy of service because the way we build business is to build people. And as we build people, the desire to help others do the same becomes contagious,” Bianca says.

The philanthropic initiatives of the company and distributors are so important to the executive team that in 2006 the company launched Foundation 4Life, a 501(c)3 organization that manages the service part of 4Life’s mission. According to Tracie Kay, Foundation Director, 4Life underwrites all of the foundation’s operating expenses, including marketing, human resources and overhead, and makes a monthly donation.

“That allows for 100 percent of all outside donations to go to humanitarian efforts,” Tracie says.

4Life President Steve Tew unveils a plaque at the Hyderabad, India, SOS Children’s Village. The sign carries the Foundation 4Life mission of “building people, families and communities.”

Today, Foundation 4Life has completed more than 50 service projects in 17 countries. Whether it’s ongoing work at La Casa Rosada orphanage in the Dominican Republic, support for the SOS Children’s Villages in India or the relief efforts provided in the Philippines following the devastation in the wake of Tropical Storm Ketsana in September 2009, the foundation’s efforts are guided with the help of distributors “on the ground” in these locations. Distributors are usually the catalyst for service projects in their own backyards.

“Our commitment has always been that the foundation would seek ways to help people wherever our distributors conduct business throughout the world,” Bianca says.

With 16 international offices on five continents to support distributors around the world, 4Life has a special opportunity to perform philanthropy in many locations. Last July, 4Life President Steve Tew visited India to present an $11,500 check to the SOS Children’s Villages for their work providing homes for orphans.

Distributor Led

4Life’s charitable initiatives are closely tied with the work and interests of distributors around the world, Steve explains.“We enjoy amazing partnerships with our leaders,” he says. “This enables us to maximize resources on the ground, where our help and support are needed most.”

Tracie also underscores the role of the distributors in the company’s philanthropy. Large charitable projects may be launched from the foundation, but often are first brought to the company’s attention by distributors. “We take a lot of leads from our distributors out in the field,” she says. “They see needs in the countries where they do business.”

This strength in networking service efforts through the worldwide distributors helps 4Life to provide ongoing humanitarian works and to react swiftly when catastrophic events happen. 4Life has provided relief following the Sept. 11 attacks in New York, the 2004 tsunami in Southeast Asia, Hurricane Noel in the Dominican Republic and Mexico, and Tropical Storm Ketsana in the Philippines.

For many years, 4Life has found itself involved in charitable causes in the Dominican Republic, which shares an island with Haiti. Esdras Cabrera, a 4Life Gold International Diamond who has been with the company for 10 years, has helped engage the company in causes in that country.

His passionate pursuit of helping others in the Dominican Republic led 4Life into their relationship with the La Casa Rosada orphanage. In 2006, 4Life wrote a check for $75,000 to launch a five-story addition to the existing facility in Santo Domingo, the Dominican Republic’s capital and Esdras’s hometown.

“Every one of our projects is close to our hearts, but I think we would have to say that the work at La Casa Rosada orphanage has a special meaning to us,” Bianca says. “The fact that it was initiated by one of our incredible distributors was an inspiration not only to us, but the entire 4Life family.”

Many of Foundation 4Life’s works are focused on children. Bianca sees this as a natural fit with the company she founded with her husband.

“When we first visited La Casa Rosada orphanage, we discovered that the children loved to paint pictures. We asked if we could ‘commission’ the children to do some paintings that we’d then auction off at our convention to raise money for the orphanage,” she says. “What really struck us was to see how much they valued our recognition. How can you put a price on self-respect, confidence and inspiration? This is the outcome of our service efforts with children around the world, whether we are working in the Dominican Republic, the SOS Children’s Village in India or one of the Homes for Children in Malaysia. All children should feel their value in this world. And that’s what our industry is all about, isn’t it?”

Haitian Help

While the relationship with La Casa Rosada is ongoing, there are always emergency efforts. The Foundation 4Life’s ability to mobilize distributors was put to the test recently in the Dominican Republic when a devastating earthquake struck Haiti.

When the ground began to shake on Jan. 12, Esdras was meeting with distributors during a special training session in Santo Domingo. He felt his chair moving, but didn’t know what to make of it. “In about three minutes, all of the cell phones were ringing,” he says. “People were screaming: ‘An earthquake has destroyed Haiti!’ ”

It didn’t take long for Esdras to understand the immensity of the disaster. It also didn’t take long for him to get in touch with Tracie at Foundation 4Life and for them to begin to organize a response. Esdras was extremely grateful for his company’s immediate commitment to the need at hand. “It was incredible to see the response of the owners of the company,” he says.

Just a few days after the earthquake, Esdras had gathered a team of local distributors who worked around the clock to determine what the needs in Haiti were and to prepare a container truck filled with 1,200 meals, as well as milk, water and other supplies. They drove through the night. They arrived at the border just in time for another serious earthquake to strike. When that panic subsided, their border crossing, which began as a difficult experience, was facilitated by people nearby who had heard of the work of Foundation 4Life at La Casa Rosada.

When Esdras describes their long day in Haiti delivering supplies to a town about 60 kilometers outside of Port-au-Prince, the sad and frightening images come fast and furious: seeing people with obvious physical trauma and crush injuries; the U.N. convoy that stopped for the Foundation 4Life mission; working their way around buildings collapsed into the streets; and the despair in the long lines of people waiting for food.

They arrived safely at their destination and were able to distribute supplies without chaos, but not without heartbreak.

“They were desperate and hungry,” Esdras shares. “As soon as we handed the meals to them, they were opening the food and eating.”

The moment seems to have transformed him. “I made a decision right there that even if I had to start all over again, I am willing to do it, just for an opportunity like this, to bring relief and help to people,” he says.

Plans are being made for a second relief trip to Haiti. Esdras also hopes to work toward a project to provide housing for the new homeless in that country. “Some of these people have no place to sleep,” he says. “We are going to make the world a better place for them.”

The residents of the SOS Children’s Village bring joy to visitors. Foundation 4Life’s work often addresses the needs of children throughout the world.

Corporate Spirit

This spirit of service—of making the world a better place for others—not only is supported by distributors, but is visible in the actions of employees and executives at 4Life.

Tracie, who has been with 4Life since the company’s inception, describes the company as “people-oriented. The executives are truly interested and concerned about you as a person and not just as an asset to their bottom line. There is true humility at the top of our executive management team.”

Employees catch the spirit of service, also, with local projects for the company, which is based in Sandy, Utah. Each year, employees take on a handful of projects, including gathering supplies for a local food bank. Last year, 4Life employees donated more than 1,000 pounds of food to the food bank and spent a day of service there helping to stock shelves.

The employees also support La Casa Rosada with a “giving tree” project each Christmas. Employees make needed purchases, and 4Life underwrites the shipping to the Dominican Republic. Currently, employees are getting ready to make tied-fleece blankets for approximately 300 patients at a Dominican Republic hospital.

The service opportunities also extend to the newest of the distributors. Every convention features a service project, Tracie says. At the last convention in Orlando, conference attendees assembled and filled 5,000 backpacks for children as part of a local organization’s efforts to support single mothers. “We try to find a local charity wherever our convention is being held,” Tracie says. This year, the convention will be in Salt Lake City, and Tracie is searching for a charity project for attendees.

Whether it’s through the distributors, employees or the executive team, the word service has become more than artwork on the wall at 4Life’s world headquarters.

“We find great joy in the fact that 4Life’s success has provided a greater opportunity to do good in the world,” Bianca says. “Together, we are able to do things that we could never have the power to do alone. That is one of the great blessings of this industry.”