Randy Bancino	Dr. Robert Sinnott	Steve Frenstermacher

In his book Twilight of the Idols, Friedrich Nietzsche wrote, “What does not destroy me, makes me stronger.” Although Nietzsche was referring to the human journey, this same truth is embodied by companies that rise, fall and rise again. When faced with unexpected changes and assaults, a company may wither under the pressure or strengthen its resiliency. Although Mannatech has endured ups and downs, these changes have compelled the company to stand strong today.

Founded in 1994, Mannatech Inc. was ranked No. 29 in DSN’s 2009 $100 Million Dollar Club, boasting more than $332 million in annual net sales and and 500,000 independent sales associates worldwide. The company employs 350 people at its Coppell, Texas-based headquarters and is publicly traded on the NASDAQ (MTEX). Mannatech’s flagship product is Ambrotose® complex, a patented blend of plant polysaccharides made from natural sources that is formulated to promote cell-to-cell communication.

“Mannatech is a very different company today.”
—Dr. Robert Sinnott, Mannatech Co-CEO and Chief Global Science Officer

Mannatech has a global presence in 16 markets, including the United States. Internationally, one of Mannatech’s most successful markets is South Africa, and the company sees growth opportunity among the Asian markets as well. But Mannatech is still primarily a North American company.

“About 60 percent of our revenue comes from North American markets and 40 percent from international markets,” says Dr. Rob Sinnott, Co-CEO and Chief Global Science Officer.

In recent years, Mannatech has been the subject of speculation, due to a civil suit instigated by Texas Attorney General Greg Abbott for alleged violations of the state’s Deceptive Trade Practices Act. In July 2007, the attorney general filed litigation against Mannatech with “operating an illegal marketing scheme” based on “dubious claims about the health benefits of its products,” according to the attorney general’s Web site.

Although Mannatech did not admit to any wrongdoing, in February 2009, the company settled the civil complaint by agreeing to pay $4 million in restitution to people who purchased products and $2 million to the state to “cover the costs of its investigation.”

“The civil action related mainly to some actions by our salesforce,” Sinnott says. “We were embarrassed and also financially impacted by the attorney general suit. We learned from that chapter and it is closed. We’ve reached a settlement and we’ve paid the fees associated with it. We’ve done everything in our power to correct that and make sure we’re in compliance in the future.”
In response to the civil action, Mannatech has developed a strong distributor compliance program and invested heavily in scientific studies that prove the efficacy of its products. “Mannatech is a very different company today,” Sinnott says.

Reaching Resolutions

As a result of the civil suit, Mannatech has made many positive changes internally, including a strengthened distributor-compliance program and a renewed emphasis on scientific validation of its products.

In December 2009, a new leadership triumvirate—known as the Senior Executive Office—includes Co-CEOs Sinnott and CFO Steve Fenstermacher, with Randy Bancino serving as President of Global Business Operations and Expansion.

Bancino explains how the new structure works. “How we move the business forward is shared between the three of us, while, at the same time, we maintain our specific areas of discipline and focus,” he says. “Our associates are excited about this latest change. There are a number of companies, even in the industry, that use this model. I spent a lot of years at Amway, which has a similar arrangement.”

There is a similar structure at Google, where Co-Founders Larry Page and Sergey Brin work so closely with CEO Eric Schmidt that they’re considered de facto co-CEOs. Motorola, Research in Motion, SAP and other companies have also gone the co-CEO route.

“One figure (at the top) is not always the best answer,” Sinnott says. “There’s actually a lot of evidence that some of the best-running companies’ leadership roles are shared by co-CEOs. That’s why we chose to employ that model.”

In addition to implementing a new management structure, Mannatech has overhauled its distributor-compliance program. “We’ve employed some new methods that we have not used in the past for actively seeking out noncompliance,” Sinnott says. The company has implemented an online surveillance program that audits the use of its trademarks and any linkages to disease claims. Also, associates can, and do, submit the names of associates who violate Mannatech’s policies.

If associates are caught violating the terms of their agreement with Mannatech, they must face the consequences. “If it’s a diminutive infraction, they’re given an appropriate probationary period, plus training,” Sinnott says. “If it’s a repeat infraction or they are incompliant deliberately, they can lose their business. That’s pretty serious since a lot of associates have invested years into building their businesses.”

 “We’ve increased our investment in compliance by more than 1,000 percent in the last two years.”
—Dr. Robert Sinnott

However, knowing all too well the price of noncompliance, Mannatech errs on the side of conservative caution. “We’ve increased our investment in compliance by more than 1,000 percent in the last two years,” Sinnott says. “We’re putting a huge investment in distributor compliance because we realize there’s a lot at stake. The last several years were not comfortable, but we feel so comfortable today. We’ve got our systems in place.”

Thanks to hard-won experience, Mannatech may now run one of the tightest ships in the industry. “Our standards of compliance, enforcement and surveillance are very thorough,” Sinnott says. “We send in reports to the Texas attorney general on a regular basis; we have a self-reporting responsibility that we take very seriously. We’ve alleviated some of the risks that are inherent in the downside of managing a direct selling company.”

Mannatech has always emphasized the importance of sound science, and the company adheres strictly to the industry gold standard—double-blind, placebo-controlled clinical studies that are conducted by major universities or research organizations. “We’ve just completed studies recently with the University of Ghent in Belgium, and we’re also working with Flinders University in Australia,” Sinnott says.

Mannatech has even created a Web site, MannatechScience.org, solely devoted to the science behind Mannatech’s dietary supplements and skincare products. With an entire section dedicated to peer-reviewed scientific studies and publications, the site features detailed information about the ingredients in each of the company’s products.

Leading Change

The changes at Mannatech are not only reactive, they are proactive. In many ways, Mannatech is leading change rather than following it. For instance, Mannatech recently implemented a new initiative, a Web site called MannaThink.com, where associates participate in the brainstorming of new product research and development.

“The site is powered by software that we licensed from the Wharton Business School of the University of Pennsylvania,” Sinnott says. “Wharton had developed this software for academic tournaments, but we saw the opportunity to use it commercially to tap into people’s minds and collect ideas for new products.”

Associates who log on to MannaThink.com submit ideas for new products and are asked to rank the ideas of others, with the best ideas naturally rising to the top. “Now we don’t have to sit in our ivory tower and imagine what people are asking for,” Sinnott says. “We just go directly to them and find out exactly what they want. Then we build it for them.”

Mannatech has also emerged as a leader in the dietary supplement industry. Sinnott now serves as Chairman of the Council for Responsible Nutrition’s Senior Scientific Advisory Council, whose role is to assist in developing and implementing scientific strategy relating to the publications, policies and programs of government agencies. Sinnott also holds Mannatech’s seat on the Council for Responsible Nutrition’s board of directors.

Sinnott’s service for the Council for Responsible Nutrition highlights Mannatech’s emphasis on science and puts the company in a position of leadership. It also provides a bird’s-eye view of the machinations of policymakers in Washington, D.C.

Referring to the recent strengthening of the Food and Drug Administration and the Federal Trade Commission, Sinnott believes big changes are impending for both the dietary supplement and direct selling industries in the United States. Having already prepared for the strictest scrutiny, Mannatech believes it is ready to meet these changes head-on—perhaps more so than many companies today.

“We’re expecting the United States to become more like Australia or Canada, where the level of substantiation that’s required for dietary supplements is a lot higher,” Sinnott says. “I think it’s a good thing. A lot more preparatory work and scientific proof will be required. We’re investing a lot of time trying to stay ahead of that change, knowing that it’s coming. And I’m certain it’s coming.”

As a result of these tighter restrictions, Sinnott foresees an industry shakeout. “I think you’ll see a lot of consolidation,” he says. “The smaller companies that don’t have the funds to invest in thorough science are going to fall by the wayside. In about 10 years, there will probably just be a few big players left standing. We’re positioning Mannatech to be one of those companies.”

Product Power

Mannatech upholds strict standards of product safety testing. Although it’s not required, the company tests all new and existing products for toxicity and safety, Sinnott says. “We’ve had very few cases of adverse effect reporting,” he adds. “In fact, in the history of Mannatech, we’ve never had a product liability issue, period.”

Mannatech recently launched a new product—a direct result of the brainstorming site MannaThink.com—called PhytoBurst™ Nutritional Chews, which are food-sourced vitamin, mineral and phytonutrient fruit chews. According to Sinnott, PhytoBurst chews pack a powerful antioxidant punch and taste good, too.

“PhytoBurst is enjoying tremendous global success way beyond our expectations,” Sinnott says. “We actually got that idea directly from consumers; it was a highly rated idea on MannaThink.com. We built it for them and put it out there, and it’s just taking the world by storm.”

The development of PhytoBurst also stems from Mannatech’s new family products focus. “We’re focusing on alternate delivery forms that make it more convenient for the entire family to take dietary supplements,” Sinnott says. “When we came across the PhytoBurst technology—it’s chewable, it’s delicious and it’s got all the nutrition your body needs—we knew we were on to a huge winner.”

PhytoBurst was launched in November 2009 and has already become very popular. “The product launched in South Africa recently, and I’m told that within a matter of a couple of days the product had sold out completely,” Sinnott says.

Mannatech has also renewed its commitment to Real Food TechnologySM by ensuring that its products feature natural, food-sourced ingredients backed by sound science with no synthetic or chemically derived additives. Real Food Technology solutions include products that contain standardized levels of natural and plant-sourced nutrients at nutritionally effective levels.

“There’s quite a bit of research that shows that vitamins and minerals that are obtained from natural sources are absorbed into the body better than synthetic vitamins,” Sinnott says. “Based on new research, we’ve found that vitamins and minerals sourced from plants and other natural sources are superior. So we focus on producing products that are from all-natural sources.”

Pointing to the growth of the organic-food industry, Sinnott believes consumers appreciate this focus on real-food technology, especially today. “Organic food has seen tremendous growth, which shows that people value getting back to nature rather than commercial agriculture,” he says.

Despite Mannatech’s foray into new product development, Ambrotose—a glyconutrient product originally launched in 1996—is still the company’s best-selling product.

“Ambrotose is our flagship product, and it is still our best-selling SKU globally,” Sinnott says. “We continue to invest in research for Ambrotose because people use it for so many things and we want to be able to make substantiated claims related to the product. We’ve invested many millions of dollars in continuing to research and develop Ambrotose even though it’s already on the market.”

Mannatech recently validated that Ambrotose has beneficial effects on the immune system, digestive tract and cognitive functioning. “All of these have emerged as statistically significant in large, double-blind, placebo-controlled studies,” Sinnott says.

Since Ambrotose was introduced to the market in 1996, Mannatech is currently in the process of developing subsequent generations of glyconutrient products. “We’re developing third-, fourth- and fifth-generation glyconutrient products, which will have enhanced effects on the body,” Sinnott says.

Future Expansion

Having put the past behind, Mannatech is confidently moving into the future, which includes innovative product development and additional global expansion.

Sinnott believes there is tremendous opportunity in the family products market, making nutrition convenient for all ages. Mannatech is currently researching drink technologies, a new area of product development for the company.

“I think a lot of people are reaching the point of pill fatigue; there’s only so many pills that they’re going to take in one day,” Sinnott says. “So we’re spending a lot of time and effort looking at ways of delivering nutrition in alternate forms that are more in line with what people do on a daily basis.”

The company is also researching the correlation between Ambrotose and probiotics or the science of live microorganisms. “It turns out, there’s a strong interaction between these two kinds of products,” Sinnott says. “We’re looking at ways of combining them in innovative ways to make it convenient for the consumer.”

In addition to expanding its product line, Mannatech plans to increase its presence globally. Bancino believes Mannatech has merely scratched the surface of its potential for international expansion.
“Going forward, our emphasis on additional global expansion is going to be hot,” Bancino says. “We are doing our due diligence on a number of openings.”

Bancino says Mannatech is poised for expansion not only internationally, but domestically as well. “We’ve got a lot of untapped potential here in North America,” he says.

“We’re ready to tap into our potential in all our wellness technologies combined with our global compensation plan, which is unlike most of our competitors,” Bancino says. “Mannatech is uniquely positioned to be able to address both these issues in a powerful way.”

Having surmounted past difficulties, Mannatech appears to be poised for expansion and success in the future. Through the years, Mannatech has earned a place in the direct selling sun—a position hard-won and well-earned.

In November of this year, I was listening to an interview on National Public Radio’s All Things Considered program. The interview was with Charles Handy, founder of the London Business School and a management consultant whose work has inspired me for some time.

The reporter who introduced the piece started by saying, “Commentator Charles Handy says we need to start thinking about jobs in a whole-new light.” Intrigued, I turned up the volume to drown out the traffic on the interstate as I heard Mr. Handy talk about the mental state of many who have lost their jobs in recent months bemoaning their fates and wondering if they would be able to get another suitable job.

He continued, “The world is full of potential clients—for something. The problem is that you have to create the something yourself, and most of us are not born entrepreneurs. Particularly if we have grown up and even grown old in institutions, moving from school to college to organization, places where work was shoved at you, yours only to pick up your shovel or pen and deal with it. It’s best to practice it young if you can.” (Italics added.)

It’s hard to imagine a clearer vision for why direct selling is more than an income for millions of people; it has changed their lives, forever. I heard Andrea Jung, CEO of Avon Products, tell the assembled group at last summer’s annual meeting that the number of new consultants recruited in the first quarter in Mexico equaled the total job loss in Mexico. Our largest companies are improving entire countries by providing the magic that is opportunity. Even our smaller and newest companies start with a simple idea: Present an opportunity to a person who has the desire, and they create their own futures. Mr. Handy’s “new” way to think about work is thriving every minute of every day, all over the world, through direct selling.

Our company, Southwestern, has been introducing this new idea to the audience that Mr. Handy says is best—young people—since 1868. When that first college student set out on the road during that summer vacation 142 years ago to sell Southwestern Bibles and books door to door, he probably had no idea that, over the next century and a half, tens of thousands of other college students would have their lives changed for the better the very same way.

I was a freshman at Harvard, working as a busboy in one of the dining halls (yes, it was suitably intellectual work), when a senior who was preparing for his fourth summer selling Southwestern products made a point of getting acquainted with me, later calling me to tell me about his summer opportunity. I guess he figured I wasn’t scraping plates and mopping floors for the résumé value. In fact, my parents had recently put their life savings into a brick-and-mortar business that was doing very poorly. The financial pressure on our family was extreme, and I couldn’t figure out how to work enough hours to make a significant-enough dent in my tuition so that I could afford to remain at Harvard.

Marty told me how much he had been able to save from his summers selling Southwestern books, and I couldn’t believe it. His most recent summer had exceeded my previous summer’s savings by a factor of 20. Moreover, he seemed, well, mostly normal. He didn’t do a lot of song and dance, and there sure wasn’t much hype in his opportunity presentation. But he got the point across that if he could do it, I could do it, if I were willing to follow a very old formula.

Work really hard—physically, mentally and emotionally.

Prepare by studying hard in Sales School.

Be coachable throughout the summer. As he put it, “Be smart enough to be dumb enough to be willing to learn.”

I joined 11 others from Harvard that summer as we traveled from Cambridge to Nashville for training, and then on to San Antonio, Texas, to spend the summer selling books, cold-calling door-to-door (we thought leads were for wimps). The first week, I was very successful. I had studied hard, I worked hard, and I was coachable. The second week, I nearly bombed out. I forgot to work as hard, and I sure was not coachable. Marty took me for a day to shadow him. At the end of the day, he looked me in the eye and asked, “Are you really committed? I believe in you, and in what you can become, but it is up to you.” I told him yes and went back to work.

This coming summer will be my 36th summer in direct selling with Southwestern. I have never worked anywhere else, and, in fact, have never written a résumé. I had the privilege of learning from and working directly with DSA Hall of Fame members Spencer Hays and Jerry Heffel. Many great people from other DSA member companies have unselfishly shared their time and influence, for which I thank them. But, most important, I have deeply appreciated the chance to share direct selling with college students.

Although our heritage was as sellers of religious products, today we sell the Southwestern Learning System, an integrated suite of printed products, educational software and a proprietary set of online learning tools. Student dealers now come from more than two dozen countries to spend their summers learning the principles of direct selling entrepreneurship.

Following their first summer, qualified students are invited to return as student managers and have the opportunity to build a sales organization, learning the principles of leadership, recognition, business ethics and integrity, as well as how to develop others—all while still in college. After graduation, we are happy to invite many into our professional ranks, where they continue to build organizations. Every one of our sales directors started selling as a college student. Our chairman and CEO, Henry Bedford, started selling as a college student. I guess you could say helping students grow and develop is forever in our blood.

It is a privilege to be in direct selling and to work with the greatest young people in the world. As Spencer Hays has said so many times, “There are two kinds of people in the world: Some find an excuse, and others find a way. It doesn’t take any guts or gumption to find an excuse; anyone can locate one. But it takes a quality person of genuine character to find a way over, under, around or right through any obstacle that stands in their way.”

Fads come and go, technological changes occur at an accelerating rate, the “good guys” in politics become the “bad guys” in the next administration, but principles that are always true endure. It is exciting to teach enduring principles to young people, knowing they will add their own unique talents and flavorings to them as they grow their businesses within Southwestern’s direct selling program.

Mr. Handy’s new idea—self-employed entrepreneurship, especially starting with young people—is fantastic. We’ve thought so for 142 years now, and look forward to the next 142.

Dan Moore is President of The Southwestern Company.

Telecommunications Giant Commits $1.3 Million to Ronald McDonald House Charities

For ACN, family is the No. 1 priority. The global telecommunications giant firmly believes that each and every one of its independent representatives is part of its family, and each and every one of their customers is part of its even larger family.

So when the company chose to expand its charitable efforts to an organization that defines the importance of family, it knew it had hit a home run.

“In our industry, we can all agree that the only way for us as companies to be successful is to help our independent representatives build their own successful companies within our companies,” says Greg Provenzano, Co-Founder and President of ACN. “In fact, I believe this is what truly sets our industry apart. But at ACN, it’s not just about the lives we can change in business; it’s about the lives we can change, period.”

Those lives include the families of seriously ill and injured children who must travel far from home to receive medical attention. In 2008, ACN began supporting Ronald McDonald House Charities (RMHC) Inc., which for the past 35 years has provided accommodations for the families of children undergoing treatment. Today, ACN and its hundreds of thousands of independent representatives are offering much-needed financial and emotional support to RMHC’s worldwide initiatives, and specifically, to the RMH of Charlotte, a local chapter slated to open in 2010.

A Founding Ideal

Seventeen years ago, the entrepreneurial team of Greg Provenzano, Robert Stevanovski, Mike Cupisz and Tony Cupisz launched what is today the largest direct selling telecommunications and home services company in the world. Now operating in more than 20 countries throughout North America, Europe and Asia-Pacific, the company provides a full-scale product portfolio that includes video phone technology, digital phone service, wireless, local/long-distance and Internet services, home security, and satellite TV.

ACN has provided individuals around the world with a home-based business opportunity marketing these products and services—a business ownership opportunity with lucrative personal and financial rewards. It has also provided its independent representatives with the ideal that “working together, we can truly make a difference.” That belief has not only reaped dividends on the business end, but also in the spirit of giving that has symbolized ACN since its inception.

Throughout its history, ACN has had a tradition of giving back to the community. Its Charitable Community Giving Program has donated to organizations that support such important causes as child welfare, domestic violence and substance-abuse rehabilitation.

At a corporate level, ACN’s history reflects a giving spirit in the communities it has lived and worked in, as well as those it visits during its International Training Events. The company has supported international relief efforts through UNICEF as well as domestic charities such as Mothers Against Drunk Driving and the American Heart Association.

When ACN consolidated all its U.S. operations in Concord, N.C., a suburb of Charlotte, the company reached out to local charities, such as the Boys and Girls Club of Cabarrus County, Youth Homes Inc., the Cabarrus Literacy Council, Boy Scouts of America, the Cabarrus Arts Council, the Charlotte Firefighters Association and several local schools.

When outreach efforts discovered that a Ronald McDonald House would be coming to Charlotte, the company offered its support to Ronald McDonald House Charities.

“RMHC is thrilled with the relationship with ACN,” says Greg Borkowski, Development Manager for Ronald McDonald House Charities Inc. “Their corporate focus on philanthropy starts with the company’s founders and is emphasized at every level. The impact of its generosity has been significant: RMHC chapters on three continents—North America, Europe and Australia—have benefitted from the partnership.”

According to Provenzano, RMHC was a perfect choice for ACN because of its global reach and outstanding commitment to children and their families. Raising money for the charity will be the main focus of the company’s International Training Events, which are held around the world.

“Giving back to the community is an important hallmark of ACN, one of our founding ideals, and we simply couldn’t think of a better organization to focus those efforts on than Ronald McDonald House Charities,” Provenzano says.

Contribution to Community

Since the first Ronald McDonald House opened in Philadelphia in 1974, local chapters have been established in 52 countries. Of the major cities in the United States, only Charlotte, N.C., was without a chapter. ACN saw an opportunity to help make the dream of bringing a chapter to Charlotte a reality.

In June 2009, the company announced its support of the Ronald McDonald House of Charlotte. At its International Training Event in Charlotte that month, independent representatives gave $124,870 to the charity. Guest speaker Donald Trump also contributed, graciously donating $10,000.

“While significant progress has been made, it’s still an uphill battle,” Provenzano says. “Therefore, ACN has committed to donating $1.3 million over the next five years, providing substantial progress toward the RMH of Charlotte’s funding goals and allowing the charity to keep pace with its primary construction targets.”

The RMH of Charlotte is scheduled to open in late 2010 and will serve the families of children being treated at Levine Children’s Hospital and Hemby Children’s Hospital. Located on the 1600 block of East Morehead Street on land donated by the Carolinas Medical Center, the RMH will feature approximately 35,000 square feet of living space, complete with 28 bedrooms (one family per bedroom/suite), providing more than 10,000 nights for the families. It is also scheduled to have a community kitchen, great room, learning center, playground and sitting porch.

“They just have a huge heart.”
    —Mona Johnson-Gibson, Executive Director, RMH of Charlotte

The cost of building and operating the facility will be borne primarily by individual and corporate donations. According to Mona Johnson-Gibson, Executive Director of the RMH of Charlotte, the initial campaign goal is $9 million, with $5.5 million slated for construction costs alone. “When ACN gave us a pledge of $1.3 million, that put us up to a threshold we needed to go ahead and start building. We’re trying to make a $9 million goal because we want to have two years of operations and maintenance, and we also need money to outfit the house—to actually furnish it and get it ready to let families come in.”

What has impressed Johnson-Gibson most about ACN’s commitment is the personal investment of the company’s employees. “It’s exciting to finally be bringing a Ronald McDonald House to Charlotte, and to have a company like ACN get involved to help make that a reality. But it’s not only that they are very generous financially; the whole company has really been very supportive of us. We have a lot of volunteers helping us out who come from ACN headquarters. They just have a huge heart.”

It’s that spirit of giving back to the community that Provenzano says helps his company live up to the ideal he and his co-founders set so long ago.

“While at ACN we are certainly changing lives, we can’t begin to imagine the lives that are changed inside Ronald McDonald Houses around the world every day,” Provenzano says. “Providing shelter, warmth and basic necessities for these families as they take on the battles of their lives is so much bigger than us, bigger than business, and to be just one small part of that is an absolute honor and privilege for us. We believe that, just like success, healing is also measured one step at a time, and if we can pay it forward to just one individual, then our efforts have been more than worthwhile.”

Changing Lives Within

ACN’s decision in 2008 to support Ronald McDonald House Charities exclusively was just an extension of its mission. Since it first began hosting International Training Events, the company has selected a local charity in each city, collecting donations throughout the weekend from its representatives and then matching those donations dollar for dollar.

“It’s a staple at every event, a permanent part of our culture, and our representatives absolutely love the portion of the weekend when we present a check to the charity,” Provenzano says. “It’s amazing to watch a room full of thousands put their own personal needs aside and give so much of themselves.”

When representatives realized that the company could do so much more good if it focused its efforts globally on one organization, the decision to support RMHC was accepted with much enthusiasm.
“Our representatives were thrilled with this decision and have supported us 100 percent,” Provenzano says. “Family is the No. 1 priority for us as a company. We’ve heard incredible stories of how the money we’ve raised has impacted the lives of so many families, and we absolutely give so much of that credit to our representatives. They dig deep at every event, and I am constantly amazed at their generosity.”

Provenzano also shares that at every event he hears stories about how one of the company’s representatives has been personally impacted by the good RMHC does.

“Unfortunately, tragedy often hits closest to home,” he says. “But even when these families are in their darkest hours, they find hope because of this organization. We love hearing these stories—especially the ones with happy endings—as it reminds us that we truly can change lives, one dollar at a time.”

Continuing Support

In October, ACN strengthened its commitment to RMHC by signing on as the title sponsor of the NFL Alumni-Ronald McDonald House of Charlotte Invitational Charity Golf Classic. The event, presented in conjunction with the National Football League Alumni–Carolinas Chapter, hosted 43 teams, each consisting of four amateurs and one NFL alumni player.

“As the title sponsor, ACN brought a tremendous amount of credibility to the event,” says Jack Sullivan, Tournament Director for the Classic. “Their participation helped take the event to another level.”
Proceeds from the golf tournament and Las Vegas Night Party, which was held the night before the event, was well in excess of $65,000.

While ACN will continue to raise funds for RMHC through its International Training Events and sponsorship of the Golf Classic in 2010, Provenzano sees a long-term partnership with the charity that will ensure families have a home away from home while they cope with the serious health issues facing their children.

“Even with over $500,000 in donations already collected, our support of RMHC is only just beginning,” Provenzano says. “Sadly, there will always be sick children, so there will always be a need for the Ronald McDonald House Charities. It is our hope that ACN will always be standing in the wings waiting to help in our own small way.”

Additional help in the future may come from the company’s innovative ACN VideoPhone. The revolutionary technology, which allows consumers to communicate face to face from the comfort of their homes, is being developed for use by the charity.

“Imagine seeing the person you are talking to with every phone call,” Provenzano says. “Now imagine if you had a sick child and were hundreds of miles away from home, from family, from anything familiar to you. Imagine being able to pick up a phone and be right in your own living room. That is our hope for the future of all Ronald McDonald Houses—that we can equip these facilities with our video phone and bring families a little closer to home when they’ve never felt farther away.”

Toby Norton, President, Rain Nutrition	Chad Christofferson, CEO, Rain Nutrition

It’s something unforgettable: the sound—the smell—and the way a gentle rainstorm makes you feel. It is at once peaceful and comforting, yet invigorating and refreshing. No matter where in the world people are, it is one of those rare things on which we can all agree. It just seems to be one of those shared experiences that bind us together.

And that is exactly why one direct selling company chose its name—Rain Nutrition. “Water is the second-most important element in our life; rain is cleansing and wholesome, and plays such a vital role in our environment,” says Toby Norton, President of Rain Nutrition. “I grew up in southeastern Arizona, and I used to love the smell after it rained. I’ll never forget that. We were working on a name for our company, and it just seemed like a natural fit, especially whenhttps://dsndev.wpengine.com/wp-content/uploads/2018/01/Norton_Toby.jpg you look at the Earth’s ecosystem and the essential role that rain plays in that ecosystem. Our vision is that Rain Nutrition is going to provide that same important element to people’s own personal ecosystems.”

Is it a lofty goal? Maybe. But the leadership team at Rain Nutrition is enthusiastically up to the challenge. They officially launched their wellness startup last August, and have never looked back. By all appearances, there is definitely something that makes Rain Nutrition different, that sets them apart from the competition. What that is—the certain something that has this young company poised for growth—starts with challenging the powers that be.

Generation Next

Simply put, this is not your grandfather’s health-and-nutrition company. And that’s not to say there’s anything wrong with the traditional way of doing business, but Rain Nutrition is taking wellness to a whole-new level of cool. The entire vibe is different with Rain Nutrition.

Indeed, a youthful exuberance permeates the entire experience, from the team to the products to the leaders in the field. To get an idea of what that means, you needn’t look any further than the company’s Web site. The crisp, open spaces invite creativity, and the flashy visuals ooze innovation. It’s a fun, energetic feel, but in an understated, laid-back way—much like a rain storm, if you will.
“Everybody wants to belong to something that they can feel worth in, and we want to provide that for people,” Norton says. “At the same time, we’re not a big suit-and-tie company.” Proof of that comes when you look at the management team’s photos on the Web site. It’s no accident that these high-powered executives are dressed down in untucked white shirts and rolled-up jeans, standing in fresh, clean (rain?) water.

“I think our brand portrays that we are serious about business. It portrays an element of education. It portrays class, but there’s something more to it as well,” Norton says. “It also includes this fun side of things—the ability to be serious, while not taking ourselves too seriously.”

The Seeds of Greatness

The science behind Rain Nutrition’s unique line of products sounds simple, and yet, here again it is a break from the traditional way of doing things. It all starts with the seeds. “We get asked, ‘Are you a juice company or are you an energy drink company?’ Really, we’re a nutritional company with a systematic approach to nutrition,” Norton says. “And the differentiating factor between our products and others is that we use seeds, which science and research show contain the most potent antioxidants, and the nutrition that Mother Nature intended for our bodies.”

The challenge comes in extracting the antioxidants in a form that is usable and palatable, and Rain Nutrition has succeeded on both fronts. “The seed is low in calories, but very high and very diverse in antioxidants, and in some there are essential fatty acids as well,” says Chad Christofferson, CEO of Rain Nutrition. “So there are a lot of benefits.”

Consumers hear much discussion about free radicals in the body and how to best combat those. Rain now offers a method of measurement for the levels of free-radical stress on your body—the Free Radical Urine Test Kit. According to Rain, elevated free-radical levels have been linked to countless ailments and are known to be associated with aging and stress. By better understanding the free-radical levels, consumers can determine their own personal antioxidant needs, adjusting their diet and supplementation accordingly.

The list of product names reads like a mix between a weather report and a yoga class description: Soul, Rush, Storm and Pure. The ultimate goal with each one is to help your body achieve maximum health—no matter your age or activity level.

The driving force behind this new approach to nutrition is fueled by passion on a very personal level. “At the age of 20, I decided to swear off caffeine because I watched my dad, who is a professed caffeine addict,” Christofferson says. “My dad would drink several cans of soft drinks a day. It’s just not healthy, and I decided I didn’t want to be like that. So when we came up with Rush, for instance, it had to be something that I would feel comfortable taking, and giving to my family, as well.”

The Perfect Fit

When it came time to decide on a channel of distribution for their unique product line, there was no question—direct selling was the way to go. “In the retail world, it’s all about brand awareness,” Norton says. “If you pay enough for advertising, people will ask for your product. But how do consumers know they’re actually getting what’s best for them? With network marketing, you can really begin to educate people on the specific ingredients, on the delivery system, building the story. By far, the best form of advertising is word-of-mouth.”

“The differentiating factor is that we use seeds, which research
shows contain the nutrition that Mother Nature intended for
our bodies.”     
    —Toby Norton

Education, in large part, is a factor we are sorely missing in the way we consume health products today. But the folks at Rain Nutrition have taken up the cause to turn things around. “I wish kids understood what energy drinks are doing to their bodies, for example,” Christofferson says. “We have an energy drink, but ours is healthy energy. It’s a big distinction. I wish kids knew how harmful those other highly caffeinated drinks can be. People need education.”

Training and growing their business is the primary way Rain Nutrition doesn’t stray from the norm. “Our training system is basic. Not only do we do the in-home meetings, but we do regional meetings. We host conference calls and webinars multiple times throughout the week,” Norton says. “We know that our company’s not going to come in and rewrite how this industry is grown. If anyone does, I think they’re fooling themselves.”

In truth, it all comes down to the personal relationships that will make or break a company, and leveraging those into success that mushrooms from a grass-roots level. “This business is belly-to-belly, face to face,” Christofferson says. “If I can sit in front of a big group of people and explain to them how their body reacts to our products and why it’s vital for them to have them, those people are going to, first of all, want to be healthy. And then I’ll teach them about the business, and they’re going to want to generate wealth for themselves as well.”

When I saw the research and learned about what wasn’t being offered,
but could be, it was an easy decision to put this company together.”
    —Toby Norton

A Better Tomorrow

So many people today are looking for something new. Maybe they’ve been laid off, or are living paycheck to paycheck for a myriad of reasons. What it translates to, for many, is a loss of hope, something Rain Nutrition aims to restore. “We want to offer people a different way of doing things,” Norton says. “Albert Einstein defined insanity as ‘doing the same thing over and over and expecting different results.’ With Rain Nutrition, we give people an alternative to get them out of that old way of thinking.”

Both Christofferson and Norton have experience launching successful companies, but they were both adamant that this venture would be different. “This was an opportunity to take all the things I had learned over the years—right and wrong—and mold that experience into a good company,” Christofferson says. “It was a fun challenge.”

Right from the start, as if by fate, all the pieces were falling into just the right place. “When I saw the research and the science and learned about what wasn’t being offered, but could be, it was an easy decision to put this company together,” Norton says.

The bottom line is that people are experiencing positive results, and they’re learning to dream again, which is an invaluable gift the team at Rain Nutrition is happy to provide. “You know, the financial stress our society is going through today is affecting our health, too,” Norton says. “And this gives people the tools to address both of those angles. I really feel that’s what Rain Nutrition was put here to do.”

A Humble Beginning, an Enduring Commitment

XanGo LLC started from quite modest beginnings. I recall the planning days back in 2002. XanGo’s founders—Joe Morton, Aaron Garrity, Gary Hollister, Gordon Morton, Kent Wood and myself—sitting around the conference table hammering out business details and making a commitment to giving back, just as soon as we turned our first profit.

But that Christmas, we decided we just couldn’t wait any longer for the magic day. If giving back is essential to defining who you are, you can’t postpone it because of the balance sheet. Although the company hadn’t yet turned its first profit, Gordon Morton laid the groundwork for what has become an intrinsic part of the XanGo corporate identity—to give before receiving—when he prompted us that “Humanitarianism is in XanGo’s very DNA.”

Extending Our Commitment to Those in Need Today

Fast-forward seven years to October 2009. I was immensely honored to help launch the XanGo Goodness Foundation at a black-tie fundraising dinner to benefit Operation Smile. The dinner kicked off XanGo’s annual convention in Salt Lake City and honored Bill and Kathy Magee, founders of Operation Smile. That evening, distributors raised nearly $35,000 for an upcoming trip to Thailand, where XanGo will provide cleft lip and palate repair to the children of the very families that harvest mangosteen fruit for XanGo Juice®.

The event marked the official creation of the XanGo Goodness Foundation as a 501(c)(3) charitable organization. Of course, even before becoming a 501(c)(3), XanGo’s founders, staff and distributors already participated in humanitarian efforts, medical expeditions, volunteer programs, community health education and advisory board services.

Why a Foundation Now?

As a direct selling company with expansion into 34 international markets, we felt the timing was right. With the XanGo Goodness Foundation, XanGo will strengthen its relationships with causes locally, around the country and across borders. Naturally, XanGo will continue to donate a significant portion of its profits to humanitarian work; however, the foundation now enables the company to extend its reach to better the lives of more people.

The XanGo Goodness Foundation provides a focal point around which to rally our distributors, motivating their involvement on a global scale. We felt that excitement at the company’s annual convention, when the announcement of the XanGo Goodness Foundation resulted in a standing ovation from the almost 10,000 distributors in attendance. XanGo focuses on healthier lives; it’s only natural that we feel passionate about improving lives through the XanGo Goodness Foundation as well.

For example, XanGo developed life-saving Meal Packs; distributors can purchase the packs, which are sent directly to people taking their first steps out of starvation. We followed the same formula suggested by the World Health Organization (WHO), but sought a way to simplify the formula to include oil. When oil is added separately, it frequently turns rancid in extreme heat or, in cases of corruption, may not reach the intended refugee camps. We don’t charge a penny to the relief organizations that distribute Meal Packs, but the company funds efforts to get them to those most in need. In essence, this is what the XanGo Goodness movement is all about: helping others in need.

A Return to Thailand

When the December 2004 tsunami decimated Phuket, Thailand, XanGo felt an immediate pull to help. We asked ourselves how we could make a difference over the long term, instead of simply writing a check and moving on.

The company conducted an audit of relief organizations involved in Phuket. After doing our homework, we partnered with a small charity to purchase 30-plus acres of undeveloped land in conjunction with the German and Swiss consulates. First, we donated the land and built a community from the ground up, not just building homes for the residents, but hiring them to do the home construction so they could continue to earn a livelihood with that skill. In fact, we helped the Thai government complete the construction of two new schools and made sure the village children had the appropriate school uniforms as well.

I was personally involved in the tsunami mission and have stayed engaged with subsequent annual trips to Thailand. Each year, we ask our premier-level distributors to participate in the Never An Empty Suitcase Program. Distributors bring an extra suitcase full of school supplies, books and clothes to donate to the local children, resulting in an empty suitcase to fill with whatever souvenirs they choose to buy during their trip.

Looking ahead, the Operation Smile trip in April 2010 will mean so much. Throughout the XanGo annual convention in October 2009, we gave our distributors an option to “Buy a Smile” with a donation of $240. The black-tie event and weeklong pledge toward supporting an Operation Smile mission to Thailand raised enough money to provide surgeries for approximately 145 children. XanGo looks forward to giving back to a country and people who made a difference for us.

We continue to build our relationship with the people of Thailand, and XanGo recently welcomed delegates from the Royal Thai Government to our headquarters in Lehi, Utah. The royal delegation recognized XanGo’s “creative use of mangosteen” and presented the company with a certificate of appreciation for being one of the pioneers in bringing mangosteen to a global market.

Helping Children around the GlobeWith the creation of the XanGo Goodness Foundation, we will continue to partner with local and international charities from North America to Australia, from Asia to South America, and everywhere in between. Just a few examples of XanGo Goodness include:

Children’s Wish Foundation, Canada. XanGo continues to work with Children’s Wish to support children who live with high-risk, life-threatening diseases in realizing their most heartfelt wishes. Gordon Morton and XanGo helped grant a child’s wish this past fall at the Real Salt Lake vs. Toronto FC match. In the past, XanGo has been a title sponsor of the Wishmaker Parade, the organization’s premier national fundraising event.

Vitamin Angels, India. XanGo supports the organization’s efforts to eliminate childhood blindness by the year 2020 through systematic distribution of vitamin A supplements to at-risk children, as well as multivitamins to children and vital supplements to expecting mothers. Although India is not one of the 34 countries where XanGo products are available, this is not about market access, but about doing the right thing for children in need and giving our distributors the opportunity to contribute.

Global Alliance Project, Ghana. XanGo champions this project from the University of Utah, providing sustainable medical care and education in rural Ghana in close collaboration with the local community. The innovative model is extending to other developing regions around the world.

And Strengthening the Community at Home

Locally, XanGo supports our employees’ volunteer efforts at their favorite charities by paying their normal salary during volunteer accrual hours throughout the year. Many employees have chosen to use this time with the Best Buddies organization. Best Buddies and XanGo’s partnership creates opportunities for young students with intellectual and developmental disabilities. Recently, we hosted the Best Buddies at our offices and invited players from Real Salt Lake (Salt Lake City’s XanGo-sponsored Major League Soccer team) to join us. XanGo staff raised more than $8,000 as part of our Best Buddies 1K Walk and 5K Run event. Additionally, XanGo supports the National McGruff House Network’s mission to keep children safe from crime.

A Challenge for You

The XanGo Goodness Foundation offers exciting avenues to take humanitarian efforts to the next level. The direct selling industry has provided opportunities to improve lives through the business model, and I challenge the industry to return the favor by helping others. When our industry gets involved, the world benefits.

A founder of XanGo, Bryan Davis represents the company’s international interests as a global ambassador to its existing and emerging markets. Davis strategically builds relationships with key government, industry and trade representatives worldwide, as well as with XanGo’s distributor networks and for the XanGo Goodness Foundation. For more information on XanGo Goodness, visit the foundation online at www.xangogoodness.org.