November 2022 Direct Selling News

BY BLAKE MALLEN

There is POWER in Partnership >

What part of your business would benefit by bringing in a supplier to help your team be more efficient?

“

Through my decades of experience

ELEGATING time-intensive business functions to highly skilled suppliers provides the breathing room to focus on unique skill gaps, like training team members on best practices, getting up to speed with new technology or customer service response that many organizations overlook.

For your convenience, we have compiled a list of our display advertisers. When contacting these companies or those in our Supplier Directory (starting on page 88), please let all of our valued advertisers know that you saw them in Direct Selling News.

I have always known Direct Selling News as an anchor that connects the direct sales industry and its players. DSN has always provided an incredible venue to learn the best practices and to be up to date on the changes that affect our space. I am now honored to be a supplier in the DSN community!

—CARLOS PEREZ / Managing Partner, CP&Krell Group CP&Krell Group 817-697-4321 / CPKRELL.COM

Exigo 214-367-9933 / EXIGO.COM

COVER

Flight Commerce 813-277-0625 / FLIGHTCOMMERCE.COM

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Momentum Factor 512.690.2134 / MOMOFACTOR.COM

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Squire 801-225-6900 / SQUIRE.COM/NETSUITE PAGE 49

PayQuicker 844-258-3006 / PAYQUICKER.COM

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Direct Selling Association 202-452-8866 / DSA.ORG PAGE 86

Integrishield 885-429-1131 / INTEGRISHIELD.COM

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NOW TECH 310-428-9936 / NOW-TECH.COM

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Direct Scale 801-701-3285 / DIRECTSCALE.COM

Metrics Global 702-757-9600 / METRICSGLOBAL.COM

The RESULTS Center 817-430-9422 / INFO@TONYJEARY.COM

33 FutureCeuticals 888-452-6853 / FUTURECEUTICALS.COM

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Nexio 877-551-5504 / NEXIOHUB.COM INSIDE BACK COVER Infotrax 801-431-4900 / INFOTRAXSYS.COM BACK COVER

The eCommerce Elephant in the Room

I DON’T KNOW ABOUT YOU, but I find myself on Amazon almost every day. It has become my default site for whatever lastminute item I’m looking for. It’s quick, it’s simple, it’s comprehensive and it’s reliable. And it’s also a huge challenge for direct selling companies around the globe.

How do you protect your brand, the interests of your field and your pricing structure on this eCommerce Goliath? We asked Blake Mallen, President of Prüvit, to give us his thoughts on cracking the Amazon code. I know you will find many tangible tips and ideas you can apply to your business in this month’s cover story. We also spoke with several other companies of different sizes and with different strategies to help paint a complete picture.

This month, we also asked renowned direct selling consultant Paul Adams to identify ways the channel can differentiate itself from other eCommerce platforms. Here’s a hint: it all centers on personal relationships and customer service!

Finally, we take a deep dive into the recent setback the FTC faced in their litigation against FES. We know the current regulatory environment is a point of concern for every executive in the channel. We are monitoring the situation closely as the story evolves.

Don’t miss the excerpt from this month’s Iconic Insights podcast where our host Heather Chastain interviews motivational speaker and classically trained musician Jade Simmons. There are also articles highlighting Amway and Green Compass. I know you will enjoy the perspective and insights of both leadership teams.

DSN remains your daily resource for global news impacting the direct selling channel. If you haven’t yet, make sure to sign up for the weekly dashboard email which delivers a week’s worth of news in a quick 15-minute read each Sunday. You can also sign up for free text alerts by becoming a member of our VIP Text Alert notifications where you’ll always get the channel’s top stories first and fast.

I would like to personally thank all of you that attended Direct Selling University last month whether virtually or in person. The event was a tremendous success—full of the kind of insights and community only DSU can provide. Make sure to save the date for our Spring 2023 event, happening April 18-20 in Frisco, Texas.

All the best,

The Month in News Affecting

Red Aspen Hosts 4th Annual Girls Weekend

RED ASPEN’S GIRLS WEEKEND hosted more than 200 in-person attendees in Boise, Idaho and more than 1,000 Brand Ambassadors across the U.S. who tuned in virtually. Participants were given a first look at the company’s latest product launches, including expansions to its Skincare with Love collection, and two new promotions that celebrate the company’s fifth anniversary.

Attendees engaged in a social media masterclass by Cait Henning, where they learned how to make effective, engaging reels; an awards night that recognized hundreds of Brand Ambassadors; and enjoyed fun, new Red Aspen swag.

Amway Celebrates 20 Years of XS Energy

AMWAY CELEBRATED THE 20TH ANNIVERSARY of its energy and sports nutrition brand XS with an in-person and live-streamed birthday party. The event was hosted inside of the XS Experience Center at Amway World Headquarters, giving guests an up-close view of the 90,000 square-foot XS Manufacturing Plant, which Amway recently invested $15 million to redesign.

The XS Manufacturing Plant now produces 500 cans of XS Energy Drinks per minute, manufactures 34 flavors of energy drinks and distributes them to the U.S., Canada and Latin America, giving the company more control over the many layers of logistics within its global supply chain.

“The XS Manufacturing Plant is part of Amway’s $300 million global manufacturing investment over the last 10 years,” said Amway Chief Supply Chain Officer Brian Kraus. “Producing XS Energy Drinks in our own facility allows us to respond quickly to market dynamics, while ensuring the high quality our customers expect of us.”

PEOPLE. REAL STORIES.

Jon Ponder credits a cup of convenience store coffee from the man who arrested him as the act that turned his life around. This seemingly simple show of respect forged an unlikely friendship between an FBI agent and a three-time convicted felon, and it was in this life-changing moment that inspired him to embrace a new path – a path toward faith, service, and redemption.

Today, Jon pays this kindness forward by empowering thousands of formerly incarcerated people like himself to build a brighter future. He founded Hope for Prisoners, a foundation that, through donations, helps people reenter the workforce, reengage with their families and communities, and reclaim their lives

In recognition of his widespread impact, he was pardoned by the President of the United States, Donald Trump.

JON PONDER HOPE FOR PRISONERS

Jon’s story reminds us that everyone deserves a helping hand. That’s why we’re here. We deliver premium payment processing to make it easier for incredible people like Jon to continue their work.

We are proud to partner with Jon and those like him who go above and beyond to make life better for others. After all, people are our greatest strength.

Las Vegas Salt Lake City

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A Week’s Worth of News in 15 Minutes!

PRODUCT LAUNCHES

Green Compass Debuts Sleep Better Nano Jellies

GREEN COMPASS announced the launch of Sleep Better Jellies, a clean-label, natural product formulated with Nano-Advanced CBN Hemp Flower Extract and organic ashwagandha, passionflower and lemon balm.

Designed to promote safe and restful sleep, this latest innovation is intended to be used in conjunction with customers’ daily CBD routines or paired with the company’s Sleep Boost essential oil and hemp-derived terpene blend for even greater benefit.

“The market for sleep is absolutely enormous,” said Robert Finigan, Green Compass Chief Marketing Officer. “Everything starts with quality sleep. I’m excited to bring this product to the market.” DSN

Solving the Global Payout Challenge

Rodan + Fields Launches Haircare Line

RODAN + FIELDS announced the debut of its new haircare line, featuring proprietary technology and a scalp-first approach to its new products.

Understanding that scalp is skin, Rodan + Fields leveraged its 15 years of experience in the skincare category to design a line that gets to the root of hair health: a nourished, energized and protected scalp. Included in this new line are:

n VOLUME+—A three-step shampoo, conditioner and densifying treatment that strengthens the skin’s natural moisture barrier for a more resilient scalp, while enhancing flat hair with body, shine and manageability.

n DEFINE+ Curl Cream—Hair-defending polymers and hyaluronic acid prevent color fade and frizz to create defined, bouncier curls.

n REFRESH+ Dry Shampoo—Chamomile and rice starch soothe the scalp and absorb oils to refresh hair between washes and extend styling.

n SMOOTH+—Shampoo and conditioner work together with a Defrizz+ Oil Treatment to cleanse and support long-term healthy hair that is soft, smooth and less prone to breakage. DSN

Shaklee Launches Clean Anti-Aging Body Care Line

SHAKLEE INTRODUCED Shaklee Body, a clean, anti-aging body care collection designed to deliver nutrition for the skin from the outside in. This new line is intended for both men and women and includes Revitalize Body Wash, Restore Body Serum and Nourish Body Lotion.

Shaklee’s proprietary polyphenol blend was designed to help skin feel firmer with better texture and tone by promoting antioxidant activity, slowing collagen breakdown, preventing A.G.E. formation to target premature aging and supporting DNA repair from UV light exposure.

“We developed Shaklee Body to compete with the best luxury body brands in the world,” said Melina Baxter, Shaklee’s Chief Marketing Officer, “but it’s also an anti-aging powerhouse formulated to slow the breakdown of collagen and target premature aging. Our formulas feature a patent-pending polyphenol blend that includes ingredients featured in some of our favorite anti-aging products: Vivix and YOUTH Skin Care. We’re leveraging the best of Shaklee science and innovation to bring something very special to the body care market.” DSN

INSIGHTS

More than Half of American Workers Are Quiet Quitting

QUIET QUITTING. It’s a phrase that strikes fear in the hearts of business leaders and galvanizes burned out employees. But in contrast to its name, quiet quitting isn’t actually about quitting. Instead, it’s an employee’s decision to only complete tasks that are within their job description, while setting boundaries around working extra or going above and beyond for the team.

Quiet quitters frame the trend as a way to push back against a hustle culture that extracts more value from its workers than it provides, while employers often use it as a reason to bring everyone back into the office under the watchful eye of management. But neither the root of the problem nor its solution is quite so simple.

At first glance, it might be easy to frame quiet quitting as a symptom of a younger, entitled workforce, but a deeper look at the trend reveals a broader issue. Older Millennial and Gen X workers may not have had the same language to describe it, but they, too, have been celebrating this phenomenon since the 1990s cult classic film Office Space, which depicted the monotony of corporate cubicle life, complete with an inane boss and a software engineer named Peter who eventually destroys a low-functioning fax machine with a baseball bat. Peter’s decision to coast through the work day—refusing to work weekends, hiding from his supervisor and never going the extra mile—are representative of a similar emotional detachment from work that is rampant in quiet quitters.

A new study from Gallup quantified this “coasting culture,” finding that more than half of all American workers are doing the bare minimum at work, or quiet quitting. What leaders may find even more disturbing: only one in three managers described themselves as emotionally or psychologically engaged at work.

Quiet quitting isn’t a generational problem, and an unemployment rate below four percent disproves theories that people “just don’t want to work.” So why is most of the American workforce phoning it in at the office?

For the full articles, visit directsellingnews.com/ category/news/

“Before the pandemic, the employee engagement rates were really low,” said Libby Rodney, Chief Strategy Officer at The Harris Poll Thought Leadership Practice, on the podcast “America This Week,” co-hosted by Rodney and John Gerzema, CEO of The Harris Poll. “There was a massive burnout in workplace culture, and even the World Health Organization deemed it a critical thing that corporate workplaces had to solve. The pandemic just put fuel on that, and we all had to run and sprint through this time, and maybe now we’re in more of a marathon. It’s up to companies to get people excited to be working.”

Many employers have made strides to build that excitement, but no amount of free lunches or casual Fridays can make up for a workforce that is being led by managers who are already mentally checked out. Add a hybrid or remote infrastructure into the mix, and the situation is even more dire. The Gallup study discovered that less than four in ten young remote or hybrid employees know what is expected of them at work, and yet a Harris Poll conducted by Bloomberg News found that among remote or hybrid working adults, 57 percent of Millennials say they would quit if they were forced to come to work five days a week.

The solution? With these data points, Gallup described quiet quitting as a clear symptom of poor management, stating that senior leadership needs to take the time to reskill managers to lead well in the new hybrid environment and guide them to have meaningful, weekly conversations with their team members. From there, creating individual performance goals can help employees see how their work contributes to the larger goals of the organization.

More than a system of accountability, however, there is also a need for a more holistic view of this phenomenon. Senior leaders must take into account the workplace environments they have created and ask themselves if employees feel like they matter and are being appropriately compensated for their time. Employers who want a team of people who go the extra mile, should start by doing so themselves. DSN

DSN SHARES A COMMON GOAL WITH THE SUPPLIER COMMUNITY—to serve and support the growth and evolution of direct selling companies. When they win, we all win—including millions of customers and distributors around the globe.

Our mission is to serve, educate and edify the channel with daily breaking global news, emerging trends and powerful stories, made possible through the generosity and support of our Premier Supplier Partners. Thank you for your dedication to the direct selling channel!

Study Measures Impact of Direct Selling on Utah’s Economy

ANEW STUDY is quantifying the direct selling industry’s impact on the economy of Utah, a measurement that has never before been documented. In An Economic Analysis of Utah’s Direct Selling Industry, a 24-page white paper authored by Senior Research Economist Levi Pace for the Kem C. Gardner Policy Institute at the University of Utah, Pace details 19 months of data collection and surveys.

The driving force behind the study was a collaboration with the Utah Direct Selling Coalition (UDSC), an entity founded through the collaborative support of Cloe Nixon and Troy Keller at Dorsey and Whitney LLP and direct selling companies 4Life, ASEA, doTERRA, LifeVantage, Nature’s Sunshine, NewAge, Nu Skin, Modere, USANA Health Sciences, Younique, Young Living and Zyia Active. The resulting third-party analysis of the channel’s economic impact on local economies is expected to become a model for other states densely populated by direct selling companies.

“I speak for all Utah Direct Selling Coalition members by saying that we’ve always known our channel contributes meaningfully to Utah’s economy—but none of us anticipated the depth and breadth of our impact on the state,” said Calvin Jolley, 4Life Vice President of Corporate Communications. “Among more than 150 combined direct sellers and ecosystem service suppliers, we account for more

than one-third of Utah’s total international exports and more than 70 percent of Utah’s non-gold exports. Our businesses provide more than 38,000 jobs. We employ a more diverse workforce than other industries and bring people in from around the country and world. All this says nothing about our entrepreneurial opportunities or philanthropic commitments. The Kem C. Gardner Policy Institute Economic Analysis provides us with an indispensable tool to engage and educate policymakers. And as a collective? The UDSC framework is a model that every state with more than one direct selling company should adopt.”

Key findings in the paper indicate just how vast Utah’s direct selling footprint is, hosting 157 companies who are responsible for 38,238 jobs, or 1.8 percent of the state’s employment. Direct selling jobs were also found to pay higher than average wages, ranking 18.4 percent higher than other industries within the state.

The ten direct selling companies surveyed by Pace’s team reported $10.3 billion in sales in 2020 and were responsible for $6.3 billion in international exports in 2020, or 35.6 percent of Utah’s total international exports and 71.7 percent of Utah’s non-gold commodity exports.

Direct selling’s presence in Utah also catalyzes tourism. From 2015 to 2019, it is estimated that out-ofstate visitors attending direct selling conventions spent $41.6 million annually. DSN

UDSC members with State Legislators at the Utah State Capitol Rotunda during a Coalition dinner earlier this year. Pictured: Former Utah Governor Gary Herbert, Utah Senate President J. Stuart Adams, Utah Attorney General Sean Reyes, and many other policy makers.

Social Media Is the Youngest Generations’ Job Fair

MILLENNIALS AND GEN Z are turning to social media when it comes to finding new career opportunities. A new survey by CareerArc, in collaboration with Harris Poll, showed that almost half (48 percent each) of Gen Z and Millennials with work experience have applied to jobs they found on social media. This is critical information for employers looking to expand

their team during what has been dubbed a “war on talent” by many headhunters. Beyond formally applying, social media is also where young professionals (58 percent) search for information about potential employers, and where they lean on networking to uncover opportunities. Almost half of Gen Z and Millennials with work experience say they have connected with recruiters or prospective employers on social media platforms.

This new approach to hiring also offers unexpected benefits, like improved diversity of candidates. Hispanic and Black Americans with work experience reported being far more likely to find job opportunities on social media than their white counterparts.

Job boards and fairs are no longer enough to reach a diverse pool of highly qualified candidates. Senior leaders need to consider their social recruiting strategy and analyze whether the public-facing content on their social channels is accurately representing company culture.

“With US employers adding 528,000 jobs in July— surpassing economists’ forecasts and returning to prepandemic levels—the war for great talent and how organizations are recruiting continues to be at the forefront of business goals,” said Jim Bramante, CareerArc Chairman and Chief Executive Officer. “This data presents a clear picture of how critical a tool social media is for today’s jobseekers and the companies trying to recruit them.” DSN

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For the full articles, visit directsellingnews.com/ category/news/

EXECUTIVE ANNOUNCEMENTS

4LIFE announced that Jorge Chacón has been promoted to Vice President of Global Markets. Chacón began his career with 4Life 12 years ago as Costa Rica Finance Manager and has held additional roles including General Manager of Ecuador and General Manager of Peru.

In this new role, Chacón will oversee operations in Peru, Bolivia and Chile.

“Jorge has proven himself time and again, in every position he’s held,” said 4Life President and CEO Danny Lee. “He’s results driven. I’m confident in his ongoing representation of the 4Life brand and our fantastic affiliates in South America and around the world.”

DIRECT SELLING AUSTRALIA / CHIEF EXECUTIVE OFFICER

THE BOARD OF DIRECTORS

for Direct Selling Australia (DSA) announced the appointment of Geoff Mulham as the organization’s new chief executive officer.

Mulham has held multiple CEO positions across industries, including two decades within the direct selling channel.

“I’m thrilled to be joining the DSA and look forward to working with our members to provide proactive representation, advocacy and promotional support,” Mulham said. “I am a passionate voice for our industry, and it’s my privilege to be able to steer the association through this next exciting chapter.”

Mulham succeeded Gill Stapleton effective October 10, and worked closely with her to ensure a seamless transition.

QYRAL has appointed Wendy Lindahl to the role of Director of Sales.

Lindahl brings more than two decades of experience in the direct selling industry and plans to use her experiences as both a distributor and corporate executive to guide the Qyral sales force as they identify their own strengths. As a corporate leader, Lindahl led a sales force that generated more than $100 million in revenue in a single year.

“I see Qyral as unique from the personalization of the products to the prescription line to the telederm visits,” Lindahl said. “I’m a skincare junkie myself and that gets me even more excited about the possibilities for this company.”

GEOFF MULHAM

WENDY LINDAHL QYRAL / DIRECTOR OF SALES

JORGE CHACÓN

4LIFE / VICE PRESIDENT OF GLOBAL MARKETS

SOUTHWESTERN ADVANTAGE / PRESIDENT

SOUTHWESTERN FAMILY OF COMPANIES (SWFC) announced that Dan Moore, who has served as Southwestern Advantage President for 49 years, will be retiring at the end of 2022.

Moore joined the company in 1974 as a student dealer in the Southwestern Advantage summer sales and leadership program, earning enough to pay his tuition at Harvard University. He was named to the role of President of Southwestern Advantage in 2007.

“Dan Moore has played a foundational role in the success of Southwestern Advantage and Southwestern Family of Companies,” said Henry Bedford, CEO and Chairman of the Board at SWFC. “His caring and mentorship of students each summer has been integral in the professional path of many alumni, including many within our very own Family of Companies.”

JONATHAN LANOY

NATURE’S SUNSHINE / INTERIM CHIEF FINANCIAL OFFICER

NATURE’S SUNSHINE Chief Financial Officer Joseph Baty announced his retirement effective September 30. The company is actively searching for an executive to fill this role, and has appointed Jonathan Lanoy as the company’s interim CFO.

Lanoy has been a member of the company’s finance department since 2008 and is currently Nature’s Sunshine’s Corporate Controller and Vice President of Finance.

“On behalf of the entire management team, I thank Joe for his dedication and valuable contributions during his career at Nature’s Sunshine,” said Nature’s Sunshine Chief Executive Officer Terrence Moorehead. “Joe played an important role in developing a strong finance team and driving critical financial and operational improvements that have put Nature’s Sunshine in a position to achieve its strategic goals. I am deeply appreciative of Joe’s service and leadership and wish him all the best.”

PATTY HOPPENSTEDT

SOUTHWESTERN FAMILY OF COMPANIES / CHIEF OPERATIONS & PEOPLE OFFICER

SOUTHWESTERN FAMILY OF COMPANIES announced that Patty Hoppenstedt, previously Vice President of Human Resources, has been promoted to Chief Operations and People Officer. Hoppenstedt is also a member of the Southwestern Family of Companies Board of Directors.

Hoppenstedt has almost three decades of experience in operations and HR leadership.

“In her time at Southwestern, Patty has become a great strategic partner to all of the businesses in the family of companies helping us achieve best practices and creating efficiencies around our human resources and recruiting practices,” said Henry Bedford, CEO and Chairman of the Board for SWFC. “Patty has a strong background in operations that is certain to be equally as valuable to the businesses as she partners with them around their operations.”

MARK R. BARTLETT

YOUNG LIVING / EXECUTIVE VICE PRESIDENT OF SCIENCE AND DEVELOPMENT

YOUNG LIVING announced it has named Mark R. Bartlett Ph.D. to the role of Executive Vice President of Science and Development.

Bartlett brings more than three decades of experience in the nutrition supplement industry, where he led a team of scientists, technicians and educators as they worked to innovate and develop new products. His fields of study include degrees in organic chemistry and biochemistry, as well as graduate research focused on the photosynthetic cycle and the use of plant-derived natural products as inhibitors for autoimmune diseases.

“We are thrilled to welcome Mark Bartlett as Young Living’s Executive Vice President of Science and Development,” said Mary Young, Founder and CEO of Young Living Essential Oils. “Mark has extensive experience in understanding the science behind plant-based products. Young Living is dedicated to building a team of experts that reflect our mission for creating sustainable and health conscious products.”

TUPPERWARE has named Douglas Lane as the company’s Vice President of Investor Relations and Strategy.

Lane brings more than three decades of experience in investor relations with a specialization in the direct selling industry. In this new role, he will lead the company’s business strategy, interface with the investment community and work in tandem with the company’s leadership team and board of directors to determine capital allocation, business expansion and total shareholder value target setting.

“We are pleased to have Douglas join us as we begin to see our omnichannel strategy come to life as a key component to our turnaround strategy,” said Miguel Fernandez, Tupperware Chief Executive Officer. “Given his knowledge and experience in the industry, we know he understands both the direct selling and the consumer side of our business, and we feel that his leadership in this area will be critical to delivering shareholder value.”

RICH MAKOVER QYRAL / CHIEF SALES OFFICER

QYRAL announced the appointment of Rich Makover as the company’s new Chief Sales Officer. A veteran sales, marketing and strategic planning expert, Makover has executive experience within the direct selling industry as well as D2C and B2B operations.

In this new role, Makover will lead strategy development and big-picture growth plans for Qyral consultants.

“Rich brings over 20 years of network marketing experience to Qyral which includes leading the largest business transformation in AVON history,” said Qyral Founder Hanieh Sigari. “His impressive accomplishments both in and out of the network marketing realm make him a well-rounded leader with an eye for what it takes to transform a vision into tangible success. We are excited to have Rich building the Qyral sales strategy with his dynamic talents.” DSN

DOUGLAS LANE

TUPPERWARE / VICE PRESIDENT OF INVESTOR RELATIONS & STRATEGY

DirectScale is the only personalization platform for direct selling that never charges for Customer Support. Our Care Team answers questions on the first interaction 95% of the time. And our industry-leading Help Center saves time and money by empowering your team to customize the platform themselves. Scan the QR code or call to book a demo today.

Scan, text or click today to see how we will help you run, know and grow your business in 2022 and beyond.

(435) 222-2558 | directscale.com/DSN

“You’ve saved us time like crazy. You’ve saved money. You are knights in shining armor … I think you have a customer for life.”

Ryan Scott, VP at Neumi

The CCR Program is based solely on a company’s customer-to-distributor ratio taking into consideration the following definitions:

n Distributor—someone who DOES have a distributor agreement in place

n Customer—someone who DOES NOT have a distributor agreement in place

n Active is defined as each customer and distributor must have made a product purchase during the last six months. Active customer and distributor counts are limited to those in the U.S. and Canada.

Companies must have been in business for at least one year and have a minimum of $5 million in annual revenue.

Qualifying companies must attain: 5:1 up to 10:1 for Gold status and 10:1 or more for Platinum status.

BE CUSTOMER-

Direct Selling News is excited to present the Customer-Centric Recognition (CCR) Program to celebrate companies that are leading the way toward a customer-centric future for the industry.

Qualifying companies utilize business models that boast high customer-to-distributor ratios and prioritize customer sales.

Companies who wish to learn more or submit

CCR

Application can go to www.directsellingnews.com/ccr/ or contact editor@directsellingnews.com

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INTRODUCING

Design of t he Times

6 Website Design Trends for Direct Selling Companies

BY DAVID LEE

EVOLVING TECHNOLOGY and ever-changing market behaviors make it difficult to stay on top of the latest website design and functionality trends. Here are six strategies direct selling companies can implement to create a unique and effective website experience.

1/ MEMPHIS DESIGN

Some direct selling websites can feel a little too vanilla. One of the most popular design concepts to incorporate bold colors and out-of-the-box elements is Memphis design. It’s an art deco-inspired style with daring patterns and retro color palettes. Some designers refer to it as a bit gaudy, splashing some chaos and various shapes together. The overall look might bring some 1980s vibes since the style is named after a 1980s Italian design group.

“Memphis styles work exceptionally well for website design, particularly because they need to grab someone`s attention from afar. To put it simply, it`s fun. It`s a pop of color and vibrancy in a monochromatic, minimalist world,” explained Bashooka, a graphic and web design blog

THE BOLD BUT SIMPLE

LARGE HERO TYPOGRAPHY

3/ VISIBLE BORDERS

2/ HERO TYPOGRAPHY

The bold but simple large hero typography works like a news headline, grabbing people’s attention with an impactful message. Focusing on hero type reduces or, in some cases, eliminates images on the page. They are typically sans serif fonts. Many sites incorporate dynamic scroll elements and animation with hero type. This is commonly used to slightly overlap images to create a sense of depth. It’s also terrific for highlighting quotes, testimonials or to convey a slogan. Here are five benefits of hero typography affording to Design Hack:

n Clear focus and understanding for the design

n Potentially more room for words

n Visually disruptive homepage that will catch attention because it is different

n Works on any screen size without having to think about different crops

n Can flow well with other design elements such as small animations, sound or bold color

The perfect example of zigging when everyone else is zagging is incorporating visible borders and grids. This design strategy separates sections and builds clear boundaries. It helps direct a visitor’s eyes like a traditional magazine layout. Borders pair well with retro tones, such as the Memphis style described earlier. It incorporates gridlines and is more prevalent for a widescreen desktop experience. While symmetrical grids are the most popular, erratic placement of borders can also create a unique experience. Images can float over borders in scrolling effects, combining the popular parallax style with a more traditional border layout.

“Thin gridlines are the most popular by far— they’re least obtrusive to the eye—but thicker lines can make a bigger statement if that’s on-brand for a company or product,” according to New Media Campaigns. “Thicker lines tend to read as more of a hard throwback, whereas delicate lines acknowledge the trend without having it define the entire design.”

WORKS LIKE A NEWS HEADLINE, GRABBING PEOPLE’S ATTENTION WITH AN IMPACTFUL MESSAGE.

DARING PATTERNS

5/ MOVING TYPE

4/ INTERACTIVE ELEMENTS

Video and drop-down elements are nothing new, but are becoming more popular with site designs meant to immediately capture a visitor’s attention and encourage them to interact with the site. A popular strategy for direct selling companies is to use a continual loop video of field distributors at events and incentive trips to communicate culture. Try placing a looping background video near the top of the homepage.

Interactive cursors and drop-down elements that reveal hidden content create a unique experience that compel visitors to discover secrets, information and keep them on the site longer. Cursors can also move or rotate elements on the page, creating a game experience. GIFs that cycle through a sequence of images (known as “cinemagraphs”) can be eye-catching on a page paired with stagnant imagery.

“Interactive websites either respond to a user’s interaction or guide the user journey with captivating animations, videos and other interactive elements…” said a post by Hubspot. “This type of website does more than delight users—it helps keep them engaged on the site for longer.”

Animation and eye-catching movement are not limited to video images. Moving type, also called “kinetic typography,” adds to the interactive experience. Typically, this is when the text enters the screen as a visitor scrolls or when the text follows along with cursor movements. With some features, users can control the speed and direction of text movement, creating a unique animation of its own.

“Moving type is going to be a big trend. We live in a digital world and it’s cool to see some fun ways of taking advantage of this in the world of typefaces to create living breathing letters,” shared Arian Bozorg, Community Engagement Manager at 99designs.

6/ SCROLLING ANIMATIONS

Scrolling animations are becoming the norm instead of a rare feature, especially with web design software making it much easier to incorporate. Parallax effects, for example, create a sense of depth and encourages the visitor to keep scrolling. It creates an experience of the visitors controlling site as elements come together or activate as they scroll. These features work well with company timelines and detailing product benefits.

According to Hubspot, scrolling effects “are increasingly used on interactive websites to intrigue readers to keep scrolling, signify a break in content, and create a three-dimensional experience.” DSN

MEMPHIS DESIGN IS AN AR T DECO INSPIRED STYLE WITH A ND RETRO COLOR PALETTES.

Head Space

Mental health is becoming a key focus in the workplace.

BY DAVID LEE

THE PAST TWO YEARS have shined a bright light on mental health and its impact on workplace productivity and employee retention. Companies are evaluating the importance of mental health throughout their workforce. More flexible hours, remote work opportunities, wellness programs, mentor systems for new employees, in-office massages and counseling are just some benefits companies are exploring to improve mental health in the workplace.

Even with stigmas around mental health issues collapsing, employees are still highly likely to keep stress hidden. According to Deloitte, “95 percent of employees who have taken time off due to stress named another reason, such as an upset stomach or headache.”

Forbes lists four key trends in creating a workplace culture of mental health: regular manager trainings; coaching for company leaders; mental health employee resource groups (ERGs); and mental health as a part of inclusion efforts. Harvard Business Review also lists several methods to help create a culture

of care, including: implementing regular surveys; managers sharing their own experience with mental health issues; offering more flexibility; and fostering a deeper connection with employees.

“Leaders must model these and other mentally healthy behaviors for employees to truly feel like they can do the same,” a Harvard Business Review article stated. “Having conversations between managers and direct reports to articulate individual working styles and preferences supports inclusion. Employers must also ensure that teams have the resources and bandwidth necessary to do their jobs effectively while remaining mentally healthy.” DSN

76% report experiencing at least one mental health condition in the past year. This includes depression, burnout and anxiety.

Top three factors that negatively impact mental health: emotionally draining work; challenges with work-life balance; lack of recognition.

2021 MENTAL HEALTH AT WORK REPORT

50% of full-time workers have left previous roles, at least in part, due to mental health reasons.

Mental health resources offered by companies:

n Paid time off +55%

n Mental health days +41%

n Mental health training +33%

say their workplace environment had a negative impact on their mental health.

Power Your Brain Health Product

Respondents reported a 550% increase of taking extended or more frequent breaks.

Respondents who felt their mental health is supported by their employer said they are 5.6 times more likely to trust their company and its leaders.

CognatiQ (cog-na-teek) is a patented coffee fruit ingredient clinically shown to increase levels of a key neuroprotein (BDNF) vital to learning, memory, and higher thinking.

BY PAUL ADAMS

(AND H

Nobody saw it coming.

ITHOUT REHASHING IT, I think we can all agree that the last few years are unlike anything we’ve ever experienced and never want to go through again. As people. As families. And, as businesses. But from a business perspective, it has been nothing short of fascinating.

In our channel, we started off with massive uncertainty. What was going to happen? Would we survive? How would people react? Could we stay open? How could we work almost completely remotely? Who would have believed that—within weeks—we would all be experts on something called Zoom.

We saw an amazing growth happen immediately after we thought we might not survive. And now unfortunately many have seen tremendous slowing, with some going back to “pre-pandemic” levels.

Companies of all shapes and sizes had issues with supply chain. I saw firsthand all sorts of problems.

Ingredients could not be manufactured fast enough to keep up with demand. Suppliers shut down with entire staffs being quarantined. This happened with both product manufacturers as well as 3PL partners. Both can be devastating.

THROUGH IT ALL, one thing became clear: we had to earn and keep the trust of our customers and distributors.

After finally getting their ingredients in and product manufactured, I saw one company ship completed product from the US to the Philippines only to realize that the boat the container was on stopped in China for either a pick up or delivery and detained “in quarantine” for nearly 6 months. Who knew? They had one container on a ship with hundreds—if not thousands—of other containers. And they were stuck.

If you were doing business in China, you saw it all. Products couldn’t get into or out of the country. Or, even if you were manufacturing “in-country,” when the major cities locked down completely, you were still out of luck.

Amazing.

Trying Times and Trust Issues

With the unpredictable elements we all faced, somehow, some way, against all odds, we have had to try to keep our customers and distributors happy. If they were simply buying a product from Amazon, and their first choice was “out of stock” due to supply chain issues, they could easily just search for a replacement and, one click later, it was on the way to their home. It will be there tomorrow…or sooner.

THREE KEY TAKEAWAYS

1 / HOW WE BUILD AND KEEP TRUST IS KEY

Our customers and field expect and deserve transparency about the inevitable challenges of doing business today.

2 / THE PERSONAL TOUCH DIRECT SELLING OFFERS SETS US APART

We treat customers with more care and concern than our retail counterparts— this is our true differentiator.

3 / WE MUST IMPROVE OUR CUSTOMER EXPERIENCE

Amazon’s user experience in regards to checkout is, by and large, far superior to ours.

While our customers are, obviously, purchasing other products from other retailers, they choose our products for a reason. Perhaps they cannot find a similar product from another resource. They appreciate and trust the quality they get from us. Or, they are trying to make a few extra dollars so they are willing to wait.

But at some point, their patience was understandably tested.

Through it all, one thing became clear: we had to earn and keep the trust of our customers and distributors. We had to be honest and communicate more than ever with relevant information. Not just fluffy marketing. Tell people what they needed to hear. If the product was going to be out of stock for a few weeks, tell them. And, more importantly, tell them how we were going to help them through the challenges.

Trust is hard earned and easily lost.

“Trust is hard earned and easily lost.

Transparency Leads to Trust

I watched closely as one client had ongoing/ recurring issues with their supply chain. Generally speaking, the challenges were caused by specific ingredient(s) within their formulation of a key product. Repeatedly, they bumped into issues that caused delays in getting those important products into the marketplace. And, repeatedly, they reached out to the customers and distributors to inform them about the challenge and to offer high-value alternatives.

They were honest. They were timely. They were humble. They showed a level of care that people appreciated and believed.

But, it’s hard to imagine that everyone would just accept their explanations and be “ok” with it.

They didn’t. But, they appreciated their efforts and openness.

Recently, that same client conducted a series of “road show” events to get in front of their distributors. A dozen or so events, spread out across the country, were designed to promote new incentives and initiatives. It was a chance to be face-to-face with people who they hadn’t been in front of for a couple of years.

From city to city, they talked, asked questions and listened. They shared optimism and asked to hear how they could help their people succeed.

Yet, from city to city, nobody complained about the supply chain challenges. They could have been mad or disappointed. But, they knew what was happening and appreciated the level of communication from the company. Kudos to them for being open and honest. It was recognized by all involved.

How Direct Selling Differentiates

In our channel, our customers are not just numbers. They are people we know. They are our friends and colleagues. We have asked them what they are looking for and provided solutions that could have a real impact. And not just in some generic sense. We are focused on creating an impact on a person—a real person—not a number.

We build our businesses one person at a time.

The words “customer obsessed” have become a sort of catch phrase for creating an experience for our customers that is special. For the most part, I think the channel does a pretty good job of it, but we can do much better. Most of us have call centers and our distributors and customers call us. They ask questions. They want clarity on products and compensation. We give it to them. Fast, efficient and friendly. I cannot count the number of client events I’ve attended and observed distributors at the onsite company store searching for their favorite person from the call center. They exchange hugs and ask about each other’s families.

It’s real. We care. They care back.

While the rest of the world struggles with email open rates, we send emails to our customers and distributors, and they actually read them at an extraordinary rate. They seem to appreciate that we try to provide information they want to know about.

Where We Can Do More

Interestingly, in research we have done for a number of different companies, one of the biggest complaints we hear from distributors is about the website/shopping cart. Amazon raised the bar and, in many cases, we are still way behind in technical advancements.

We haven’t stepped up to be what we need to be. Instead, we are cumbersome—too much friction. Yet, our customers and distributors still come back. They fight through our inadequacies and order products.

WHILE THE REST OF THE WORLD struggles with email open rates, we send emails to our customers and distributors, and they actually read them at an extraordinary rate.

I’ve read countless monthly surveys where we ask the customers about their experiences with our companies. The Net Promoter Scores are off-thecharts. They love our companies and our products. Even when they have concerns and write-in comments with real grievances about backorders, boxes damaged in transit or some other issue, they consistently rank the company with amazingly high scores. They are so high, in fact, that we’ve had to adjust how we read the NPS scores. While we love to read high scores, the real gold and guidance is in the comments, not the score itself.

As I’ve said recently in a previous article, your culture is your superpower. The feeling from a customer that we obsess over them is 100 percent due to your internal team. If they feel obsessed to make distributors and customers happy, everyone feels it. The conversations in your building (or Zoom) become much more focused on fixing things that increase the customer satisfaction.

If your team is truly obsessed with the experience, you will hear questions such as, “If we do this, how

will it impact the customer?” or “How can we make the process smoother and easier?” or, perhaps, “Is there a way to make sure the customer gets the most value or best experience from the product?” Or, best of all, “Instead of coming up with good explanations and answers when the customer calls, how do we fix the problem so that the customer doesn’t have to call in the first place?”

Those are variations of real questions I’ve heard from teams that are truly obsessed and willing to go the extra step to make sure customers are happy.

Even in a time of massive technical advancement, we have a special place in the minds of our customers and distributors. If we take it for granted, we lose. But, if we continue to truly obsess to create a team that “gets it” and is willing to ask the tough questions and make real change happen, we can continue to earn and keep the trust of our customers and distributors.

The best advice I’ve ever received in business definitely applies to this.

Ask questions and listen.

If we follow those four words, we will be able to withstand whatever gets tossed our way. DSN

PAUL ADAMS has been involved in the direct selling channel for more than 30 years. Over the decades, he has worked with hundreds of companies and been a trusted advisor in boardrooms with countless executive teams. From corporate giants to pre-startup, Paul has helped companies invent, reinvent and solidify their messaging, strategy and execution.

BY BLAKE MALLEN

We have an Amazon problem.

I’M NOT JUST TALKING about our online shopping habits or the fact that 20 Amazon boxes show up on our doorsteps each week. Amazon is the third largest search engine in the world and where 63 percent of all product searches start. Let’s be real, if your product is not on Amazon, customers think you’re weird. Amazon is not where the world is going—the world and consumers are already there.

In my 22 years in the industry, I’ve been blessed to have gathered a fairly unique perspective from living on all sides of the direct selling fence. I’ve been a top earner, an owner that went from a scrappy startup to major acquisition, an officer of a public direct selling company, and now president of Prüvit.

I understand launching, hypergrowth, scaling and all the ups and downs in-between. At Prüvit, we’ve been on the leading edge of the customer-centric conversation and have always been heavily invested in the mainstream trends around the world. Through experience, I can tell you that in order to bring relevance to the channel today, Amazon has to be a critical part of our strategy.

You may assume that since you haven’t chosen to sell on Amazon, that your products aren’t available there. If you think that’s true, pause a moment right now and do an Amazon search for your brand name. Odds are, someone is using your brand reputation and image to sell products without your permission.

If you’re a product-based company, you can either choose to sell on Amazon or unauthorized sellers will do it for you.

The Dangers of Letting Amazon Run Wild

Imagine being a new distributor, excited to launch your business. You’ve finally worked up the nerve to talk to your first prospect and, when you tell them about your great product, the first thing that customer does is what everyone will do: they either will go to Amazon directly, or stop by Google, where it’s almost certain that one of the first listings that pops up for your product will be…Amazon. So, what happens if the product on Amazon is cheaper than the price you, a new distributor, can sell it to them?

THREE KEY TAKEAWAYS

1 / DON’T LET A ROGUE AMAZON PRESENCE DISCOURAGE NEW DISTRIBUTORS

When unauthorized sellers are undercutting distributor prices on Amazon, it can cause a ripple effect of dissatisfaction and worry in the field.

2 / THERE ARE TWO KEY STEPS TO BUILDING A SUCCESSFUL AMAZON STRATEGY

First, protect your brand by establishing a brand identity and store on the platform. Then, tackle pricing.

3 / REVENUE IS NOT THE MAIN BENEFIT OF AMAZON FOR DIRECT SELLERS

Protecting the brand and elevating the customer experience and quality control are more valuable to the company long term.

This is what happens when we don’t pay attention to Amazon. In that scenario, you’ll not only lose the customer relationship, you’ll also lose the morale of that brand new distributor and all of their potential growth. And, on their way out, they’re probably going to complain to their upline, who will complain to their upline and now you have a telephone game of complaints and a support team who is dealing with issues out of their control.

And the complaints won’t stop there because you can’t regulate the quality of products sold this way. You don’t know what claims are being made on the product descriptions, how long it’s been in a hot garage, what the expiration date is or what

the packaging looks like when it arrives on the customer’s doorstep. All of this does serious damage to the brand. At the end of the day, an uncontrolled Amazon model violates the integrity of the business model and upends what is supposed to be a fair opportunity for everyone.

Defense and Offense

Winning the Amazon game begins by owning and protecting your brand on Amazon. Start by setting up your Amazon store and brand registry so that you have the ability to remove all unauthorized sellers. Amazon makes it easy to hide behind seller names, and many times it’s the same person with multiple accounts.

Trying to deal with these ghosts merely through a company compliance process is extremely difficult, which is why an Amazon brand registry strategy is a welcomed solution. Over time, your company will own the Buy Box, control the price and ensure that all Amazon imagery matches your marketing. Don’t try to shortcut this by setting up a brand registry without selling any products. Amazon wants the sales, and this won’t work long term.

Next, tackle pricing. I’ve seen brands make the mistake of competing with themselves by matching or dropping their prices on Amazon. At Prüvit, we don’t match the price; we raise the price. Our Amazon price is always higher than what distributors sell the product for, which guarantees our distributors always have a better hookup than Amazon. Why would someone go to Amazon and pay more money if they already have a relationship with a distributor who can give them a better deal? We have chosen this channel because we believe in creating and growing entrepreneurs. Give your community the advantage.

There is good news with Amazon. Having a controlled footprint on the most trusted third-party website on the internet lends unique credibility. Ratings and reviews are what customers trust today, so even if they’re not buying on Amazon, a managed presence there is elevating the brand for everyone. Amazon’s search traffic can also organically drive incremental sales with a very high profit margin, so find an expert who knows Amazon’s platform and leverage their advertising options in order to scale. Don’t forget to play offense and defense here as well through strategic keyword selection.

“If you’re a product-based company, you can either choose to sell on Amazon or unknown sellers will do it for you.

THERE IS GOOD NEWS WITH AMAZON. Having a controlled footprint on the most trusted third party website on the internet lends unique credibility.

Three Plays to Consider

There are three ways to build an Amazon strategy, and I’ve tried all of them.

1 / Find a wholesale distributor. This is someone in the field who is already successfully selling on Amazon or has the expertise to take it on. Generally, this takes place through a wholesale agreement. The benefit to this is that it’s hands off—you get the revenue and don’t have to think about it, you limit other sellers and protect your pricing. In my experience, however, because you don’t control the inventory, have no visibility into what’s happening and they often cut corners, this method can leave the brand vulnerable in ways you don’t intend.

2 / Do it yourself.

You can leverage your internal marketing team for design, but building the expertise in-house also means hiring talent that understands both Amazon and the nuances of your company compliance. This can be difficult to find, and building a small, dedicated team will likely be more expensive, time consuming and have a longer learning curve than seeking outside expertise.

“

This is the way the Amazon game is going to be played, and you can’t win unless you control it.

an Accounting &

integration expert

3 / Engage an expert.

After learning from the first two options, I now prefer to work closely with an agency that specializes in the direct selling channel to run our Amazon strategy. This allows us to have full visibility and control while staying fairly hands-off on the day-to-day. The sales it generates pays for itself, while allowing us to actualize all of the benefits of protecting our community and elevating our brand. It’s become a real win-win for the company and our community.

How to Win

I’m a firm believer that intention matters—so it’s important to have strong understanding and belief in why you are making a decision to incorporate an Amazon strategy and how it will really help both the company and community. The benefits are clear, so successful implementation really comes down to leading with education, transparency and communication.

You may run into some pushback from the field if some of your distributors are already using Amazon to become super sellers without realizing that they’re degrading the brand in order to advance themselves. But our role as leaders is to do what’s right for our communities and companies long term, and that means protecting the brand and maintaining equal opportunity for distributors.

Start with the top leaders and educate the field on how this new strategy protects their businesses. As it begins to pay off, provide an upside for distributors through a revenue pool, bonus, incentive trip or some sort of additional recognition or reward. This helps create alignment with the company and the community.

It’s easy to understand the value of additional revenue, but I would say that the strategic benefits of Amazon—the brand protection, quality control and increased visibility and credibility—are even more valuable to the company long term than the potential financial benefits.

The world has shifted. We are in the business of teaching people how to shift paradigms, and that begins with a shift in our own thinking. We can’t get stuck in old paradigms because omnichannel visions are not the future—they’re the present. This is the way the Amazon game is played, and—if you want to win—you must control it. DSN

USAGE OF TAGLINED LOGO S

MARC ANDRUS

I have twenty years of experience working with direct-selling clients to help them improve and streamline business processes. I specialize in helping clients with their accounting, benchmarking and forecasting needs, as well as integrating their disparate systems so they can all work as one. We are experienced in helping with foreign currency and exchange rates, warehouse management, and accounting for multiple subsidiaries in various countries around the globe.

The tagline "AUDIT.TAX.ADVISORY" on ly accompanies the logo in cir cumstances where context requires c larification about what Squire can do for current and potential customers (the audience).

BLAKE MALLEN, President of Prüvit, is a billion-dollar brand builder and community marketing expert. With over two decades of field, ownership and executive experience in the direct selling industry, Blake offers a unique combination of wisdom and innovation that has helped him turn ideas into iconic healthy lifestyle brands.

For example, Squire.com and its subsequent web pages featu r e the onet agline version (HIGHER PE RSPECTIVE ONLY) of the Squire logo because the subpage content t hroughout the site provides adequate co ntext to visitors.

On the other hand, if the team attends a national financial trade show where Sq uire should differentiate itself from a n eighboring financial software co mpany, then trade show banners n eed to include the tagline, “Audit- TaxA dvisory.”

version of

MAKE OR BREAK MOMENTS

BY SARAH PAULK

– DANNY LEE / 4Life President & Chief Executive Officer

Unauthorized and Anonymous

IT’S LIKELY THAT every direct selling executive has been in a meeting when someone has asked, “What are we going to do about Amazon?”

Amazon, with its sprawling marketplace, free shipping and trusted third-party reviews, is radically altering the direct selling landscape. Unauthorized sellers list products for less than the retail price and shoppers flock to it as a search engine to discover their new favorite products. In the process, distributors and the business model in general are losing out.

“What good is a wholesale price that you’re offering to all of your affiliates or preferred customers, if there really is no retail price?” shared Danny Lee, 4Life President and Chief Executive Officer. “If it’s just window dressing and no one ever buys at that price, then it really has no meaning at all. That can’t be a long-term strategy for any company, but especially in our industry where we are relying upon this sales force that works with friends and family on a one-on-one basis.”

For years, the direct selling industry has stepped up compliance and put safeguards in place to prevent inventory loading or large purchases of products by one person rather than real, individual customers. But Amazon has fed this activity through its powerful privacy protections for sellers and customers alike, making offloading products easy and anonymous.

Under cover of anonymity, distributors can leverage Amazon to engage in “garage qualifying”—the process of using a wholesale discount to buy in bulk and make rank—by setting up multiple shell storefronts under fake names and sell surplus products at a price that is deeply discounted from retail.

This is not only a legal issue, but one that inflicts damage on all parties: Distributors lose sales, companies endure brand damage and customers miss out on product support and affiliate relationships. Effectively combating this endless supply of anonymous sellers means companies must fully own and build their brand presence on Amazon.

“By having a presence on Amazon, we become the ‘authorized seller’ and therefore we can protect our brand from the host of unauthorized sellers who plague many direct sales companies,” said Roger Morgan, pawTREE Founder and Chief Executive Officer. “We control our prices on Amazon, and we are committed to selling our products on Amazon at higher prices than we do on our petPros’ websites.”

“What good is a wholesale price that you’re offering to all of your affiliates or preferred customers, if there really is no retail price?

– GAYA SAMARASINGHA / Kalaia Founder & Chief Executive Officer

The Amazon Learning Curve

A managed presence on Amazon is ideal, but not simple. Advertising, compliance and uncovering the best ways to drive traffic on the platform requires an experienced team—something that is not always easy to find. Combine that with high-end products and the nuanced direct selling business model and that search for knowledgeable talent becomes even more trying.

“If you have your brand registered and trademarked, it’s not hard to set up, but it is what you do afterwards that is challenging,” said Gaya Samarasingha, Kalaia Founder and Chief Executive Officer. “I just engaged our third agency in a short period of time. It’s another whole business, and there is a learning curve.”

Kalaia, which was featured on Amazon during Small Business Prime Day, originally turned to Amazon as a way to enhance new customer acquisition and increase visibility. The company still maintains Amazon as an important part of its sales strategy, but Samarasingha has adjusted her expectations of what the platform will provide for her company.

“Would I call us a success on Amazon? No, we are still a small fish in a humongous ocean, trying to navigate and learn as we go,” Samarasingha said. “We will maintain a presence on Amazon to be able to control our brand and make sure no one else comes in and starts selling our products on it, but it may become less of a priority for us.”

Resource vs. Rival

Amazon can either be a resource or it can be a rival. When companies protect their brand presence on Amazon, the platform becomes a place where customers can find complete product descriptions, unbiased reviews and beautiful product images that serve to only elevate the brand and the industry as a whole. If they see all of this and a higher price, it strengthens their relationship with the distributor who referred them to the product in the first place, protecting the distributor’s business opportunity and the integrity of the model overall.

“The question is, are you going to just be passive, stick your head in the sand and just hope for the best?” Lee said. “Or are you going to run to those theaters of war, if you will, and establish and protect your brand and prices?” DSN

If you have your brand registered and trademarked, it’s not hard to set up, but it is what you do afterwards that is challenging.

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The two most important days in your life are the day you are born and the day you find out why. —MARK TWAIN

A RARE SETBACK FOR THE FTC

JUDGE DEMANDS MORE EVIDENCE IN CASE AGAINST FES.

IBY TODD ELIASON

N RECENT YEARS, the Federal Trade Commission (FTC) has increasingly targeted companies in the direct selling space, pursuing claims of emphasizing recruitment over product sales and questioning the legality of compensation plans. While the channel has been diligent about defending itself against the allegations and impacted companies have shown remarkable resolve and flexibility in finding actionable remedies to the concerns, the power of the FTC has made it difficult to find resolution.

It’s a frustrating situation that has many executives in the channel concerned. The power of the FTC is undeniable, and by putting the industry in its crosshairs, it has compelled many companies in the channel to explore new compensation plans and double down on product sales and customer acquisition efforts. These are welcome changes and have helped to modernize and legitimize the channel in the minds of many.

UNFORTUNATELY, THESE CHANGES haven’t alleviated the intensity of FTC scrutiny. But a recent ruling in a case may have signaled a change, at least in the judiciary, to help level the playing field.

At a preliminary injunction hearing June 30th in the U.S. District Court for the Eastern District of Michigan, federal district court judge Bernard A. Friedman required the FTC to provide more evidence in its case against Financial Education Services (FES). FES is a direct selling company that offers credit restoration services, wills and living trusts among other services. The FTC had levied pyramid scheme charges against FES a month prior.

The judge also reversed his own temporary restraining order issued a day after the FTC filed its complaint, essentially terminating an asset freeze and allowing FES to continue operating.

A First for this Industry

Larry Steinberg, chair of the Buchalter law firm’s MLM industry group, who was legal counsel for BurnLounge in its landmark 2007 case with the FTC, was surprised when he heard that the judge in this case rescinded his own order and asked the FTC to come back with more evidence. “This is the first time to my knowledge where the FTC lost the entirety of its preliminary injunction motion, and lifted an asset freeze that had been entered entered on an ex parte emergency basis at the beginning of the case.”

In this case, the court initially did what was expected: issued an asset freeze order as well as installed a Receiver to run the company. But the fact that FES was allowed to re-open its doors 30 days later once the judge lifted the asset freeze and changed the Receiver to a Monitor is a departure

FTC VS FES TIMELINE OF EVENTS

MAY 23, 2022

FTC files a complaint alleging that FES and its owners, Parimal Naik, Michael Toloff, Christopher Toloff and Gerald Thompson, as well as a number of its related companies, bilked consumers for more than $213 million, including operating an unlawful credit repair scam that has deceived consumers across the country, and alleging that FES’ investment opportunity is an illegal pyramid scheme.

The FTC included a declaration from Dr. David Givens, an economist in the Consumer Protection Division of the Bureau of Economics at the FTC, to support its claim that the company was operating as a pyramid scheme, although Givens never saw any company data. He said that the FES information given to him by the FTC was consistent with being a pyramid scheme.

MAY 24, 2022

Judge Bernard A. Friedman, a federal district court judge for the Eastern District of Michigan, issues a temporary restraining order essentially shutting down the company and freezing all of its assets.

JUNE 30, 2022

After hearing oral arguments from both sides, Judge Friedman issues an order denying the FTC’s motion for preliminary injunction, vacating the temporary restraining order, terminating the previously ordered asset freeze and converting the receivership to a monitorship.

and a positive development for the channel.

“Usually, when the FTC brings a case to court, the judge gives it the benefit of the doubt,” said Steinberg. “A judge will assume that if the company in question was a legitimate, law-abiding business, the FTC wouldn’t be there wasting its time and resources.”

Why is this such a departure? Because historically, the judiciary has deferred to the FTC in direct selling litigation. This might be because the complexity of

THREE KEY TAKEAWAYS

1 / THIS IS A RARE MOVE AND A POSITIVE SIGN FOR DIRECT SELLING COMPANIES

Quite often judges acquiesce to FTC requests without much review or discretion.

2 / THE FTC FAILED TO PROVE THE ELEMENTS OF AN ILLEGAL PYRAMID SCHEME

The agency’s complaint against FES was light on actual evidence, which is why the court demanded more proof to substantiate the FTC’s claims.

3 / THIS CASE COULD BE A GAME CHANGER

Although the case is far from resolved, the judge’s willingness to require proper due diligence and actual operational data from the FTC is encouraging.

the business model is confusing. But in this instance, the judge did not do that. “Judge Friedman made it clear to the FTC that as the plaintiff in this case, it had not yet met the required burden of proof. To me, this is a breath of fresh air because the FTC often gets what it wants,” shared Steinberg.

Steinberg did note that the court certainly is allowing for the possibility that the FTC will come back with more evidence. But for now, this judge denied the preliminary injunction and lifted the asset freeze, not because it was validating the legality of FES’ business model—the court didn’t go that far— but because, without any actual evidence, the FTC had not, as yet, met its burden of proof.

So, What Led to the Judge’s Decision?

After reviewing the June 30th preliminary injunction hearing transcript, it appears that FES’ legal team made a compelling argument that the FTC failed to provide sufficient evidence and show adequate due diligence, leading to the judge’s decision.

Richard W. Epstein, a partner at Greenspoon Marder LLP and legal counsel for FES, successfully argued that, since the FTC provided no FES operational data in its complaint, the court could not make the required finding that FES emphasized the recruitment of agents over the sale of products.

LARRY STEINBERG / Buchalter Law Firm

According to Epstein, what the FTC did provide was a lot of bank records. But bank records only show money coming in and out. “It doesn’t tell them whether this is from customers buying the product, which would indicate that this is a legitimate multilevel marketing plan, versus money coming from the sale of the business opportunity, which is one element of a pyramid scheme.”

Continuing, Epstein went on to state that out of FES’ 160,000-plus agents and roughly 420,000 customers the company has serviced, to say in broad-sweeping terms that this company operates as a pyramid scheme is a stretch. “Without taking into account the actual data that exists that could have allowed for an appropriate evaluation of the marketing plan, there simply is not a proper foundation to continue any sort of injunctive relief against any of the corporate parties in this action.”

FES Brings in Third Party to Review FTC Complaint

To further analyze the FTC’s complaint against FES, Epstein asked Branko Jovanovic, Ph.D., principal with The Brattle Group, an international economic consulting firm with extensive experience analyzing MLM compensation models, to give his opinion on the allegations regarding FES’ product offerings. “As Dr. Jovanovic points out in our expert rebuttal

to Dr. Givens, there is no set standard. There is no bright line that anyone has drawn… and more importantly, the Federal Trade Commission has not drawn,” Epstein asserted.

Here is a short breakdown of Dr. Jovanovic’s analysis of the FTC complaint:

n Credit Repair Products are Ineffective

The FTC focused on a small subset of three products that they stated were ineffective. However, FES’ restoration services have led to a removal of 500,000 obsolete, unverifiable and inaccurate items in customer credit records from 2019 to 2021.

n No Evidence of What Defines a Pyramid Scheme

Rather than defining what a pyramid scheme is (or isn’t), Dr. Givens’ declaration simply asserts that FES is one. However, his conclusions that FES’ compensation plan incentivizes recruitment over retailing; that the majority of agents start at the lowest rank inherently implies that FES operate a pyramid scheme; and that there is no return policy are all demonstrably wrong.

n No Access to Distributor Level intelligence Data

Because of constraints imposed by the Receiver, Givens’ and Jovanovic’s decisions were reached without direct access to important data that would have provided more clarity.

“

Judge Friedman made it clear to the FTC that, as the plaintiff in this case, it had not yet met the required burden of proof. To me, this is a breath of fresh air because the FTC often gets what it wants.

Q: RECEIVER VS MONITOR: WHAT’S THE DIFFERENCE?

While a receiver or special master stands in the shoes of the owner, a court monitor audits, investigates and can seek judicial relief for non-compliance with corporate charters or federal, state or local law. A court monitor is often, but not always, put in place with consent from both parties.

LARRY STEINBERG / Buchalter Law Firm

Judge Friedman’s Final wTake

When it came time for Judge Friedman’s ruling he stated that as he was listening to the arguments, he was looking for a preponderance of evidence standard to base his ruling on. But all he had were pleadings and affidavits that are disputed. “Pleadings, as we all know, are not evidence,” said Friedman. When it comes to the public interest, the judge said we must do all we can to enforce regulations and laws to protect consumers, but we also need to protect businesses.

“...we also have a public interest in promoting entrepreneurial endeavors and we have (a) public interest in allowing people to conduct their business in a lawful manner.” He presumed FES would continue to operate lawfully because “everyone’s going to be watching.”

What We’ve Learned So Far

This case is just getting started, and a lot can and will happen in the months and years to come as this case heads to court. But here are a few things we can glean from this case so far that could have ramifications moving forward.

n The FTC Must Substantiate Its Claims

The agency can no longer assume judges will rubber stamp their complaints. This has been the major grievance of many companies who get caught in the crosshairs of the FTC—that the agency doesn’t have substantial evidence to file its complaint.

n The FTC Hung their Hat on Section 13(b)

Since the early 1970s the FTC has used Section 13(b) to claim and obtain extraordinary monetary relief, such as freezing a company’s assets. After a unanimous ruling in April of 2021, the Supreme Court, in AMG Capital Management vs Federal Trade Commission, ruled that Section 13(b) does not authorize the Commission to obtain court-ordered monetary relief. That is exactly what Mr. Epstein argued that the only basis cited in the temporary restraining order for the asset freeze was “rescission or reformation of contracts and refund of monies or property. This is monetary relief.”

n Judge Friedman Did What Judges Should Do

He listened to both sides, read everything carefully and said that, with no substantial evidence provided, the FTC had not met its burden.

A Game-Changing Moment?

“This lawsuit has the potential to be groundbreaking when it comes to MLM and pyramid scheme litigation,” Steinberg said. “Only time will tell. With the injunction phase of this case behind us, FES is able to continue in its business for now. Right now, the parties are getting into discovery and motion preparation. I will be following this case very closely.”

We all appreciate having our rights as a consumer protected. That is what the FTC is for. But businesses also need protection from government overreach. The damage that ensues from an FTC investigation can be devastating and far reaching, as many companies in the channel can attest to. We can only hope all judges follow Judge Friedman’s lead and base their decisions on the evidence. That’s all that anyone can ask for. DSN

This lawsuit has the potential to be a groundbreaking case when it comes to MLM and pyramid scheme litigation.

ICONIC INSIGHTS

of the world’s

Chastain

and what’s

Davenport,

Suze

Sustainable Success

After 63 years of business, Amway’s focus on the greater good continues to propel organic growth.

BY CHELSEA HUGHES

HEN HIGH SCHOOL FRIENDS

Rich DeVos and Jay Van Andel made a pact to become business partners, little did they know that promise would eventually create a legacy. After a few failed ventures, including a flying school and a drive-in restaurant, the pair started Amway in 1959 from their basements.

FOUNDED: 1959

HEADQUARTERS: Ada, Michigan

TOP EXECUTIVE: Milind Pant, CEO

PRODUCT CATEGORY: Health/Wellness, Beauty, Home, Adventure

DSN

DeVos and Van Andel founded Amway with the desire to help other people become successful while being good stewards of the earth—a business philosophy that was decades ahead of their time. Together they launched Amway’s first product, L.O.C., one of the world’s first concentrated multi-purpose cleaners made with biodegradable cleaning agents. And the rest, as they say, is history

Fast forward over 60 years later, and Amway is the world’s top direct selling business, with more than $8 billion in total sales last year alone and over one million Amway Business Owners (ABOs) worldwide. Having expanded into multiple product categories in over 100 markets, Amway’s global impact is as deep as it is broad.

So, what’s the secret to Amway’s staying power? “This company was built on timeless ideals,” Chief Executive Officer Milind Pant explained. “Our founders believed in the potential that exists within all of us to improve the lives of others and leave this world better than we found it. Today, we are proud to carry that forward everywhere we operate.”

Continued Pant, “In partnership with our ABOs around the world, we are shaping Amway’s future as a health and wellness company focused on empowering people and caring for our planet. This vision, shared among our incredible group of entrepreneurs, has been key to our sustained success over the years.”

People First

From the beginning, Amway’s founders knew that people would be the heart and soul of the operation. “Amway is powered by people—an incredibly diverse group bound together by our common desire to help people live better, healthier lives,” said Pant. “This business is for everyone.”

Today, Amway honors this heritage by prioritizing diversity, equity and inclusion. Employees from around the world are encouraged to be their true selves and share their diverse perspectives, so they can unleash their full potential and spark solutions that impact the lives of employees, communities, ABOs and their customers. This is brought to life through a strong collection of Employee Inclusion Networks.

“Our Employee Inclusion Networks encourage people from all backgrounds and lifestyles to come together, foster a sense of belonging, provide opportunities for networking and support career development,” explained Chief Operating and Chief People Officer Michael Nelson. Networks include Young Professionals, Multicultural Inclusion, Pride Inclusion and Women’s Inclusion. Each network provides a space for connection and support to allow everyone to feel seen and heard.

While Amway’s Inclusion Networks help employees feel a sense of togetherness, ABOs are also creating communities of their own based on their passions and hobbies, including cooking, parenting, fitness and more.

Amway’s people-centricity can also be seen in the Amway Promise, a comprehensive service and consumer protection program that allows business owners and customers alike to take confidence in their business and/or product purchases. From zero purchase requirements and minimal start-up fees to a 100 percent satisfaction guarantee (including inventory buy-back), to warranty programs and data protection compliance, Amway promises to uphold the highest ethical standards in their business practices.

“We take great care to establish trust with our ABOs and customers around the world,” shared John Parker, Chief Sales Officer and Regional President, West. “Prioritizing their needs and exceeding their expectations is key to delivering meaningful experiences—and ultimately helps them live better, healthier lives. When you put people first, everything else falls into place.”

Be the Change

As a direct sales leader, Amway’s global leadership team humbly recognizes that with great corporate influence comes great corporate social responsibility. And with an international business, an array of product lines and an enormous team of world changers, what better way to create a better planet than to leverage all three?

“We use the best of our business and the passion of our people to impact communities in every market where we do business,” explained Cindy Droog, Vice President, Global Strategic Communications, Social Responsibility and Reputation. “Our ABOs and employees are dedicated to being the change for a better world.”

Philanthropic partnerships with non-profits are based on each organization’s alignment with Amway’s strategic pillars: Health and Nutrition, Economic Empowerment and Engagement. Partnerships can include community program support, volunteering and grants.

With the intent of supporting access to wellness and critical nourishment, Amway’s Health and Nutrition pillar became a major focus over the last few years due to COVID-19. At the height of the pandemic, Amway raised and contributed $500,000 toward critical assistance and medical supplies in India, including 1,000 ventilators and 25,000 oxygen concentrators. In Europe, ABOs raised over $500,000 through the sale of disposable face masks, with

Amway matching the profits. This fundraiser resulted in $1.2 million being donated to Red Cross and Civil Protection in Europe. Other recent Health and Nutrition projects include providing nearly 200 Nutrilite health supplements to school children in Malaysia, as well as supporting the Healthy Children Paradise Project in Mainland China, which provided health resources to over 4,000 families.

Amway’s second strategic pillar, Empowerment, is intended to help individuals become change agents for themselves, their families and their communities. This pillar has inspired partnerships such as Project Nari Shakti in India, which provides training in the fields of fashion design, beauty, wellness, nutrition and entrepreneurship. With the goal of helping girls and women build their competencies and become financially independent, the program has educated more than 1,000 women per year since its inception.

Engagement is the third pillar of Amway’s strategic partnerships, which drives a culture of community service that encourages employees and ABOs alike to connect, commit and contribute. Kids’ Food Basket is a food equity organization near Amway’s home office in Michigan that helps children and families in the area access healthy food. From packing meals to serving on the KFB Board of Directors, Amway employees volunteered nearly 600 hours to this local cause in 2021. Another recent Engagement project was the KABOOM! playground build, which also benefitted Amway’s local community in Michigan. Since partnering with KABOOM!, which builds playscapes in underserved areas, Amway has funded and built 22 playgrounds in three states, with a total of 17,710 volunteer hours devoted to this cause.

“

—MILIND PANT, CEO

Our founders believed in the potential that exists within all of us to improve the lives of others and leave this world better than we found it. Today, we are proud to carry that vision forward everywhere we operate.

“Amway is proud to align with causes that share our founders’ vision of empowering people and bringing health and wellness to all,” explained Droog. “It’s incumbent on us to leverage our resources for good wherever those needs are greatest.”

Evergreen Products

If people are the heart and soul of Amway, an arsenal of bestselling products would be its body. For over 60 years, Amway has manufactured and distributed nutrition, beauty, personal care and home products. But not just any products.

“Amway’s products are rooted in our belief that you can live your best by living responsibly,” said Anouchah Sanei, Chief Innovation and Science Officer. “That’s why every one of our products strives to be good for you, good for the world and transparent about what’s in that product—so you know you’re getting a safe, effective and all-around responsible option.”

For example, Nutrilite is the world’s number one selling vitamin and dietary supplements brand and uses ingredients sourced from plants grown on nearly 6,000 acres of certified-organic Amway-owned farms and on partner farms all over the world. Likewise, the Artistry Skin Nutrition line of products are formulated to work like supplements for skin. Many products are registered with The Vegan Society and are created according to strict Artistry Clean guidelines. Botanicals included in the line are also derived from plants grown on certified organic farms

In keeping with the founding philosophies of Amway, protecting the environment is of utmost importance

when it comes to product sourcing and production. “Helping people live healthier lives goes handin-hand with caring for our planet,” said Sanei. “That’s why we’re committed to becoming a more sustainable company. From start to finish, we keep a watchful eye on how our products are sourced and made. We use natural, effective solutions from the earth whenever possible.” Sustainable farming practices, reduction of biomass waste and natural pest control are strategies that Amway employs to benefit the environment, as well as investment in renewable energy sources around the globe

“Our sustainability efforts are made possible by the actions of employees, business owners and customers worldwide,” continued Sanei. “They are the drivers and voices for the strategies we’ve developed. Together, we can make a difference for generations to come by investing our time and resources in helping improve the health of our planet.”

Recycled Wisdom

Since its founding over 60 years ago, Amway’s leadership has remained consistent in vision and purpose. There are no plans to change that in the decades to come.

“Amway is an ageless idea,” shared Pant “It combines an inclusive entrepreneurship opportunity and freedom for people to set their own path and goals with rewards that meaningfully improve people’s economic situation and health and wellness.”

Continued Pant, “Over the past few years, we have all experienced immense change, but true to what drove Amway’s founders back in 1959, our ‘why’ remains the same: we do what we do every day to help people live better, healthier lives around the world. And that’s more relevant today than ever before.” DSN

Cultivating a New Category

Science Makes Green Compass Credible; Innovation Makes Them Better.

BY BETH DOUGLASS SILCOX

REEN COMPASS’S STORY is one of conviction and hope for healing. After the birth of her second son, Founder Meredith Cook just wasn’t herself—mentally or physically. Her brother, Brooks, had researched CBD for athletic recovery and recommended she try it. She felt a bit better, but desired a “clean” product she could really trust. She wanted transparency and consistency, too.

FOUNDED: 2019

HEADQUARTERS: Wilmington, NC

TOP EXECUTIVE: Meredith Cook, Founder Sterling Cook, CEO

PRODUCT CATEGORY: CBD

In stepped her husband, Sterling Cook, now Green Compass CEO. A career working with organic commercial farms and production led him to choose long-time family friends and agriculture pioneers in a North Carolina hemp pilot program, Adam and George Wooten, as partners. Together, they would cultivate the quality product Meredith had searched for. Three years later, that product is now changing the lives of tens of thousands through a hemp based wellness social selling company called Green Compass

“The thing that I never expected while on the pursuit of my goals was the community of dedicated people we would meet along the way. Every single person on this journey has inspired me to dream bigger. Our products make a difference. We are making a difference,” Meredith said.

The Power of the Products

The major and minor cannabinoids that power each of Green Compass’s hemp products target overall balance and restorative wellness. But it took them a few years, several acres and a whole community to create a 100 percent USDA-certified organic CBD that’s traceable from seed to bottle. Stringent, independent third-party lab testing ensures efficacy and safety, and every product is backed by a no risk, 30-day money-back guarantee

The company points to hemp’s potential as an influence in attracting top leadership with directto-consumer, eCommerce and direct selling experience, as well as recruitment of regional team members, all of whom share character traits and values to position Green Compass through this first phase of business and provide the support necessary to scale.

Science makes Green Compass credible, but innovation makes them better. They pioneered vertical integration of their products—from the soil to extraction, production and shipping—making theirs among the safest, cleanest and highest performing hemp flower extracts available.

Quality and production processes have evolved well beyond typical CBD manufacturers to earn Green Compass status as a recognized leader in CBD and hemp lifestyle products. And they pioneered the “Hemp Wellness” category, which is projected to grow to more than $20B by 2025.

That growth potential seems increasingly likely if this new direct selling company continues on its accelerated trajectory upward. Green Compass achieved a 26 percent top-line growth yearover-year in Q1 2022, a record-breaking number compared to previous quarters. Additionally, they’ve experienced double-digit growth over the past 12 months YTD comparisons.

“Our growth strategy is clear, which is creating hemp wellness awareness; enhancing our product story of being fully integrated from farm to family; simplifying our product messaging; and enhancing our customer subscription to reach new and retain more customers,” Colby Waisath, Chief Operating Officer, explained.

An enhanced customer experience, sales support, talent acquisition, streamlining operations, exciting new product launches, tech investments, a nationwide summer activation and corporate social responsibility to make quality hemp-based wellness products accessible to communities who need it most are first and foremost among the forward steps Green Compass is taking.

“ Never in my wildest dreams would I have thought we’d have seen so many success stories this early in our business.

—MEREDITH COOK / FOUNDER

Cautious about over-extending the benefits of their products, they continually differentiate themselves from those who make unnecessary, unsubstantiated or unmeasurable claims. Green Compass takes regulatory compliance seriously, while intermixing a good dose of advocacy. They’ve hired some of the best attorneys and compliance experts in the U.S. that complement their stringent product development process and methodology, while the company reinforces the CBD movement with additional lobbying and influence to create positive change across the entire industry itself.

Distinct. Different. Better. Comprehensive rebranding efforts further differentiate Green Compass from less diligent CBD competitors. Sustainability, traceability and diversity are tied to their mission of harnessing the power of clean, organic hemp for the good of humanity. The company’s refreshed customer-led brand reflects those values, while it renews calls for advocacy for education, support and building inclusive communities to share personal hemp wellness journeys.

“We feel strongly that our humble beginnings, highly differentiated product lines, enhanced website experience and streamlined technology will allow us to attract the right people and connect to customers in even more meaningful ways,” Sterling shared Green Compass’s field of advocates, corporate staff and leadership are values-driven, charitably minded, curious, creative, optimistic, resolute, collaborative and fun-loving. “We obviously look for the necessary skills to perform in a competitive market, but we also look at the dimension of the person. We often ask ourselves, ‘Would we like to have the person over for dinner with our family?’” Meredith explained.

While Green Compass started small, they are now dreaming big about where it can take them. Through alignment of their core values, the company hopes to spur a movement that will create more stringent and clear guidelines for CBD and increase awareness, research and exposure to the positive effects these products can have for humanity. And they are recruiting people who can relate to their passion and purpose. They’re actively looking for thought leaders, hope builders, health changers, wellness shifters and dream makers.

“Never in my wildest dreams would I have thought we’d have seen so many success stories this early in our business. We are proud to be partnered with such incredible people—for all the moms and dads, doctors and lawyers, educators, veterans, health practitioners and countless other everydayentrepreneurs who have chosen to partner with Green Compass, we thank our amazing customers and advocates,” Meredith said.

Sharing Made Simple

Much of that success is due to new advocate training that places personal hemp plant experiences at the forefront. Most people today are challenged by work-life balance, stress, anxiety, pain, etc., so Green Compass focuses on a healthy CBD routine and keeps training and customer acquisition simple through a discover, sample and share process. From there, they focus on activation, community and creating the best customer experience possible.

“We utilize the strength of our field leaders, regional sales teams, social media and other communication channels that really keep the spirit of Green Compass alive each day,” Meredith explained.

Testimonials drive their business, so events are critical because that is where people can really touch and feel their products and culture. That was made more complicated by COVID-19, but virtual events carried Green Compass through with record success and growth. What they have learned and accomplished during this time of virtual gathering makes them all the more excited about the power of their in-person events yet to come.

Thriving through the pandemic taught this young company a great deal about itself and its abilities. “We had to stick and move, pitch and pivot, outpace and out-innovate through this period. We are so grateful for our sales, marketing, operations and product- and customer-focused teams for working so hard and staying committed to Green Compass,” shared Robert Finigan, CMO.

The last year alone produced several key product launches, expanded reach with hundreds of events of all types and sizes, an entire company rebrand, more than 25 new hires and upgrades to core processes and systems, including many investments in technology and manufacturing.

“Throughout the pandemic and beyond, we’ve understood the importance of reliable technologies and tools to support our advocate growth. And while we can’t do everything at once, we are carefully planning our technology roadmap for the next 18 months, which will include some incredible and disruptive initiatives,” Sterling said.

They’ve adopted a “do less, better” corporate philosophy, which is about being exceptional at the basics, forcing better prioritization of ideas and focusing energy on moving the needle for advocates and customers.

As Meredith explained, “We are now carefully evaluating each initiative and working on a longer planning cycle. Ensuring we have the basics in place will allow us to invest in certain strategic growth efforts that complement this. We call this ‘pouring gas on the fire.’ While perhaps an extreme metaphor, this is a real commitment to investing in the customer journey, and a focus on supporting our most important and valued asset—our advocates.” DSN

Key Takeaways from 40+ Episodes

CHECK

the

38] of DSN’s

where

and

3 Lessons for Direct Sellers from Top Global Brands

BY MICHAEL MCCLELLAN

LESSONS

IRECENTLYJOINED WORLDPAY FROM

FIS one of the the world’s largest payment processors—with over one million merchant customers globally. Over the past few months, I’ve read many clients’ case studies and observed best practices for some of the world’s largest brands, both within and outside of direct selling.

The hyper-focus that many leading brands have on both gaining and maintaining a customer is astounding. They know what the cost is to gain, retain and lose a customer. They know how to convert their audiences into lifelong shoppers or distributors, scrutinizing and optimizing shopper experiences for long-term success.

Here are some key learning points on the customer purchase journey.

1

/ Frictionless Payments

Why not go check-out free? In EMEA, linking up with a large retail technology partner has enabled just that. After tapping in with a credit card, sensors detect what you put in your cart—and what you put back—and then you simply walk out when you are done. No lines, no checkout, no time wasted.

In both the online and offline environment, anything that causes friction during that all important payment journey can increase cart abandonment. Innovative companies may benefit from viewing their payment processor as a revenue generating partner versus a cost center. What if you could decrease cart abandonment and increase sales? What is a 10-15 percent increase in sales worth to your company?

Digital wallets and innovative payment solutions focused on speed and convenience—such as FISgrown GoCart and modern checkout Skipify—are disrupting what shoppers typically expect the checkout process to be. Paying with one click,

wherever you are and whatever you’re purchasing, plus having your information stored for accelerated checkout in the future, may soon be the norm.

Whilst new payment technologies speed up the purchasing journey, they also help keep shoppers and companies safe. Biometric checkout (fingerprint and facial recognition) decreases fraud, increases acceptance rates and simplifies the customer checkout experience. You simply look at or touch your device, and you’ve paid.

The modern shopper increasingly expects a simple payments experience, where losing your card and needing to update it across services when it expires is a thing of the past.

THE MODERN SHOPPER increasingly expects a simple payments experience.

2 / Declined Customer Transactions

Declined customer transactions are lost customers and distributors. Do you know what your lost customer and distributor cost is?

More than $443 billion worth of orders are falsely declined every year due to fear of fraud, yet only one percent of orders are actually fraud.

Each card issuing bank has certain rules to dictate which transactions they accept or decline. Issuing banks are much stricter on eCom transactions versus card-present transactions. Knowing how to present key information, the appropriate networks, exception rules and track record are all key to improving acceptance rates.

Some payment providers have specific authorization maximization products that only charge for the service when they successfully improve acceptance rates. I have seen direct selling companies increase their acceptance rate by seven percent just by using the right payment partner. What would a seven percent increase in your payment acceptance do for your business?

Of course, it is still important to identify fraudulent transactions when they do arise by enabling the right fraud prevention tools and measures. Merchants pay on average $3.36 per lost fraud dollar. Credit card fraud occurrences are up 161 percent since 2015. Online fraud is set to exceed $200 billion between 2020 and 2024.

3 / Localization

When customers are not able to use their preferred currency or payment types, they may not complete the transaction and could take their business elsewhere. Payment habits continue to shift away from cash and credit cards towards digital wallets and other alternative payment methods like buy now, pay later.

Digital wallets comprised 48.6 percent of eCommerce transaction value globally in 2021, or just over US $2.6 trillion. Wallets are projected to rise to 52.5 percent of transaction value by 2025. Some shoppers are dissuaded from purchasing cross-border because of hidden fees and customs charges, so transparency and up-front costs can improve confidence. Even better, make the international shopping experience feel domestic and ensure costs are kept down, shipping is fast, and returns are just as easy.

For markets where you have a high volume of established sales with a local entity, you may want to set up a local merchant account with local processing to minimize FX expense and increase your payment acceptance rates. Find out which

“

Digital wallets comprised 48.6% of eCommerce transaction value globally in 2021. Wallets are projected to rise to 52.5% of transaction value in 2025.

markets your payment partner has local licenses for to set up a merchant account for you. This can eliminate additional contracting entities and costly technical integrations that must be constantly maintained.

Driving Growth and Retention

In my short time at Worldpay from FIS, I’ve learned the future of retail success lies in a balancing act between key priorities. Many leading brands are great at making it easy to buy their product or service, and through select partnerships and integrations achieve speed, security and convenience for the customer, whilst also optimizing their revenue and limiting risk. The very definition of a ‘seamless’ service is that the shopper doesn’t know which components were brought together to enable them to sit back and relax, knowing their item is on its way without a hitch.

DSN

MICHAEL MCCLELLAN has been in the direct s elling industry for 20+ years and oversees the direct s elling vertical market for FIS Worldpay. FIS Worldpay is the largest payment processor in the world.

IN BOTH THE ONLINE AND OFFLINE ENVIRONMENT, anything that causes friction to a customer’s purchase increases cart abandonment.

Innovative companies see their payment processor as a revenue generating partner versus a cost center.

Heather Chastain Talks with Jade Simmons

the

of

BY PAULA FELPS

INTHE LATEST EPISODE OF ICONIC INSIGHTS , host Heather Chastain sits down with Jade Simmons, a world-class concert pianist, transformational speaker, author and CEO of Jade Media Global.

Although she spent the first few years of her career wowing audiences with her musical skills, Jade also discovered her voice as an inspirational speaker who has helped audiences learn how to shift their mindsets and start living more consequential lives. In this interview, Jade and Heather talk about the power of finding your purpose, the difference between purpose and passion and why following your purpose can make a significant difference in the lives of others.

HEATHER CHASTAIN: I want to start by talking about your purpose statement. I was so moved by that, and I’d love to hear the genesis of it.

JADE SIMMONS: So, the statement is, “Your purpose is not the thing you do. It’s the thing that happens in others when you do what you do.”

HEATHER: When you think about it, that’s so powerful.

JADE: People kept having that reaction to the point that they were—and it’s not a great advertisement as a corporate speaker—but they were leaving the corporations. They were literally jumping off of these incredible, I call them purpose-based ledges. They were giving themselves permission to do work that they’d always been doing but had never recognized it as purpose.

“ Your purpose is not the thing you do. It’s the thing that happens in others when you do what you do.

JADE

And I always want to give people relief right away and say, the good news is you don’t have to go look for purpose. Most likely you’ve already been operating in it for most of your life. You just now get to pull this thing out front.

HEATHER: What really resonated with me about it was, it freed me from any selfishness that I might have had about pursuing my purpose. Why should I have that luxury of going after fulfilling my purpose? But when I think about it through the lens that you provide, how can I not because it isn’t about me, it is about the impact I can make in the world.

JADE: You’re so right.

HEATHER: You really have made an impact for me because it refocused my touchstone as an entrepreneur myself against why am I doing what I’m doing? What am I trying to stir in other people? What am I trying to help other people achieve?

JADE: The wonderful irony of it all is when you take the focus off of what you’re doing and put the focus on what you’re causing to happen in others, it gives new revitalized purpose to the work you’re doing. And there’s less burnout. Now, I’m not saying you’re not going to be tired. But it’s not wasted. It’s purposeful expenditure.

We sometimes confuse passion and purpose. Because they can feel very similar and you’ll see all the sayings, like “follow your passion.”

I believe you follow purpose and your passion will follow you. Passion, I believe, is given to us as a source of energy, but it is exhaustible. Passion can burn out.

Purpose, on the other hand, renews itself. So, every time I’m either on that stage or whether I’m playing a concert or speaking or preaching or teaching, there’s this one purpose which is not to teach, play or speak. The purpose for me is to activate a new level of boldness in the people that I am in front of, whatever that audience may be.

So, any book that I write, it can’t just be a book about how to build a music career, how to be an entrepreneur—it has to unleash you into a next level of boldness. And that means that if that’s purpose, activating people to become the biggest, boldest version of themselves possible, that’s my purpose.

HEATHER: So, you can’t really get bold through passion; you need to have that purpose piece to trigger the boldness?

JADE: You think about it, purpose is what gives you permanence. So, passion is a fleeting source. It’s wonderful if you have passion about your purpose and then that passion will continually be renewed. There are very rare moments that I actually don’t like what I’m doing. And usually that’s because I’ve operated somewhere out of purpose, I just said yes

to an engagement because of how much it paid. But I didn’t really spend the time vetting the type of audience. Is this an audience that wants to be activated to a level of boldness?

Purpose informs that. So, as a company, even though my main background originally was as a concert pianist, if anybody calls now and says, we just want her to come and play the piano, we always say no. She could play, but that’s not her purpose.

HEATHER: You chose to be an entrepreneur. Why and how did that evolve for you?

JADE: Well, any artist, musician, whether they like it or know it, they are entrepreneurs. Now the problem is most of us don’t accept that. And we have a really wonderful dream that we’ll come out of music school; we’ll get signed by an agent; we’ll get the record deal; we’ll play with an orchestra. And that does happen. It happened to me in a way after a few years of figuring out that it didn’t just come to you like that.

On the way to getting the things I had dreamed about, I stumbled into entrepreneurship because I had to figure it out. I had learned how to play all the classics, but no one had ever taught us how to make a career playing classical music.

I’ve always been fascinated by creativity and innovation. And I remember starting out as an artist and not making a ton of money, but I still looked fabulous. I had an incredible website. Man, I was playing all these engagements, but I was spending a lot more getting to the engagement than I was making from the engagement. And I remember saying to my husband, “The gift that I have in me is worth way more than what I am making and what I feel like I’m able to put out.”

I still felt like I was only being a fraction of myself. And so, over the time I began to add different elements to what I was doing in service to see how many people can I reach.

HEATHER: I challenge everybody listening to think through how you can frame the work you do every day to connect more with that purpose, connect more with the impact that you make. Because we do have that power to really help people see so much more in themselves than they can see right now. And there’s power in that.

JADE: It gives energy to me. And it also gives clarity and energy to the people that I’m called to serve. If you’re comfortable in one lane, that’s good. But I feel like I got a whole highway over here built for me so I will just go between the lanes.

I think purpose has this wonderful effect of freeing us from a lot of our own limitations and from limitations that may have been placed on us that we need to break through. DSN

I believe you follow purpose and your passion will follow you.

CHECK OUT Jade’s best‑selling book for even more insights and inspiration!

Our Voices, Our Advocacy

AS DIRECT SELLERS, we love talking about our businesses. And for good reason: we have so much to share. Only a few weeks ago, the stories of salesforce members were heard beyond our channel and by Members of Congress during Direct Selling Day on Capitol Hill.

On September 21, 2022, direct sellers from across the nation arrived in Washington, D.C., to help Members of Congress understand how direct selling provides a flexible and low-risk pathway to entrepreneurship, just as it has for the 7.3 million direct sellers in the U.S. today.

These stories resonate, and none among us should ever underestimate the power of our distributors’ voices. While presenting at the DSA Legal & Regulatory Seminar on September 22, United States Congresswoman Debbie Lesko (R-AZ) and Congressman Marc Veasey (D-TX) noted the impact that individual distributors’ stories had in shaping their decision to join the Direct Selling Caucus.

When our distributors meet with these elected officials and others, they help strengthen the channel’s effort to protect our distributors’ ability to build their businesses—which generated 42.7 million in retail sales in 2021 alone—on their own terms.

These meetings are critical in helping DSA urge passage of H.R. 5038, the Preserving the Direct Seller Independence Act. This legislation, which seeks to modernize independent work laws to keep pace with updates in the economy and with the nature of labor, was a critical legislative focus for Hill Day.

Reaching beyond elected officials, DSA and our channel’s voices are creating even stronger

BRIAN BENNETT

bonds with regulators at the Federal Trade Commission (FTC). Not only did attendees of the DSA Legal & Regulatory Seminar hear remarks by Samuel Levine, Director for the FTC’s Bureau of Consumer Protection, but DSA also recently filed comments questioning the need for the Federal Trade Commission’s suggested rulemaking on earnings claims.

Sen ior Vice President, Government Affairs & Policy, DSA

At the request of DSA, four United States Senators and fourteen members of the United States House of Representatives submitted a letter to the FTC stating that the agency should heed the comments of DSA and other stakeholders before proceeding. Marsha Blackburn (R-TN) referenced the Direct Selling Self-Regulatory Council (DSSRC) as among the most successful examples of industry selfregulation in her presentation to DSA Legal & Regulatory Seminar attendees.

On yet another front, DSA has vigorously engaged with the U.S. Department of Labor regarding a proposed rule that could change how independent contractor status is determined for direct sellers and many others.

Specifically, DSA lent its voice to a forum hosted by the Labor Department and commented that any such independent contractor rule should not affect the current statutory status of direct sellers as independent contractors. DSA will remain a part of this ongoing rulemaking process.

We know that direct selling is a force for good. Amplifying our distributors’ voices and creating forums for them to engage ensures our representatives here in Washington, D.C., understand the channel and how we differ from others. DSN

SUPPLIER

DIRECTORY

SQUIRE

1329 South 800 East Orem, Utah 84097 801-515-0977 squire.com

For nearly 50 years, Squire & Company has provided financial excellence and NetSuite expertise for clients in the Direct Selling industry. We offer personal service, responsiveness, and expertise in all areas.

PAYQUICKER

400 Linden Oaks, Suite 320 Rochester, NY 14625 844-258-3006 payquicker.com

PayQuicker is the leading global payout provider to direct selling organizations. Instantly make secure and compliant payouts to your field in local currency across the globe with our award-winning solution that provides the largest selection of flexible and modern spend options.

MINER GROUP LLC

11905 Sara Road Laredo TX, 78045 956-712-8842 minergroup.net

Miner Group LLC offers solutions for the Mexican Market! For over 30 years, we have helped companies expand to or optimize their operations in Mexico. We offer product and ingredient evaluations, customs clearance, regulatory compliance, label translations, and logistic services for the Mexican market.

I-PAYOUT

540 NE 4th Street

Fort Lauderdale, FL 33301 866-218-4668 discover@i-payout.com i-payout.com

Since 2007 i-payout has been the leading payment choice for pay out and pay in solutions. We pride ourselves on exceptional service paired with integrated and customized solutions.

CP & KRELL GROUP Keller, TX 817-697-4321 cpkrell.com

Landing a more sophisticated brand of talent takes a more sophisticated recruiting partner.

Bringing 25 years of Direct Sales executivelevel experience from around the world and with a Team speaking 5 languages we know what it looks like to have success in a diverse and international environment. Our goal is to become an extension of your brand.

COMPLETE MERCHANT SOLUTIONS

727 North 1550 East 3rd Floor, Orem, UT 84097 877-267-4324 cmsonline.com

Complete Merchant Solutions (CMS) is a full-service US merchant account provider representing multiple banks. CMS safely and securely supports many types of payment processing for direct selling companies.

LACORE PAYMENT TECHNOLOGIES

900 Wilmeth Road, McKinney Texas 75069 Info@lacoretechnologies.com lacorepayments.com

LaCore Payment Technologies is a payment platform designed to support direct selling companies globally. Our services include: Global connectivity to 150 countries in 50 currencies, including direct connectivity to most alternative payment types, secure tokenization, customized fraud solutions, including our proprietary Fraudhawk™, advanced reporting tools, and online dispute management.

STRATEGIC CHOICE PARTNERS

2201 Long Prairie Road, Ste. 107-316 Flower Mound, TX 75022 407-891-9265 strategicchoicepartners.com

SCP offers the most holistic consulting services specific to direct selling companies today. We’ve worked with more than 70 companies over the last three years alone, and served more than 250 years collectively in the industry.

METRICS GLOBAL, INC

1160 N. Town Center Drive, Ste. 100 Las Vegas, NV 89144 702-757-9600

metricsglobal.com

We are the industry’s leading payments partner, long-established advocate, and problem-solver. Our unified commerce & payments platform will connect you to a global marketplace, enable your international expansion strategy, and fuel your exponential growth plans. Let us show you how. Contact Us: info@metricsglobal.com

NEXIO

727 N 1550 E, 3rd Floor Orem, UT 84097 1-877-551-5504 nexiohub.com

Nexio manages the chaos of payments offering:

• Faster roll out for distributors or partners

• Simplifies payment processing for corporations

Nexio does this by being integrated with the majority of back-office software solutions in the Direct Sales Industry.

DELIVERZEN FULFILLMENT

1551 Corporate Drive Irving, Texas 75038 214-233-6790 deliverzen.com

Deliverzen’s mission is to provide the best service in the order fulfillment industry.

KATAPULT EVENTS

5840 Red Bug Lake Rd, Ste. 140 Winter Springs, FL 32708 407-915-9060 katapultevents.com

Fresh. Exciting. Bold. Your field deserves the best and we help you deliver. Out-of-the-box creative production with experienced show management. We execute on budget and make you look AMAZING!

AMWARE FULFILLMENT

4505 Newpoint Place Lawrenceville, GA 30043 866-888-2999 Sales@amwarelogistics.com amwarelogistics.com

Handle fulfillment for many direct sellers. DSA member with 15 fulfillment centers, nationwide, for 1–2 day ground delivery to 95% of U.S. population. Offer comprehensive B2C fulfillment services, including complex kitting, plus discounted parcel shipping based on our large volume of freight.

GLOBAL ACCESS

2889 Ashton Blvd, Ste. 350 Salt Lake City, UT 84070 877-811-8108 globalaccess.com

International expansion expertise and technology and logistics solutions that grow clients’ businesses and brands around the world.

MULTI IMAGE GROUP

1701 Clint Moore Road Boca Raton, FL 33487 800-523-2682 mig.cc

Founded in 1979, Multi Image Group (MIG) is a women-owned, family-run creative event production company fueled by innovators, strategists, and technologists who craft custom live, hybrid & virtual experiences for some of the world’s biggest brands.

CANADA CARTAGE LOGISTICS SOLUTIONS

1615 Clark Blvd.

Brampton, Ontario L6T 4W1 905-564-2115 x2 canadacartage.com/direct-selling

CCLS is your gateway to turn-key e-commerce sales and distribution in Canada. With fulfillment centers across Canada, our pick, pack and ship options, and real-time inventory visibility, we will help your business grow. We are NHP Site Compliant, Health Canada licensed, and GMP Compliant.

LACORE LOGISTICS

900 Wilmeth Road, McKinney Texas 75069 214-817-4802 lacorelogistics.com

LaCore Logistics provides distribution and order fulfillment services. Our highly automated distribution center provides both domestic and international direct-to-consumer shipping solutions. We offer omni-channel fulfillment solutions ranging from marketplace fulfillment for leading marketplaces to businessto-business fulfillment for leading retailers.

HANNA SHEA

844-344-7177 hannashea.com

Since 2007, Hanna Shea Executive Search has been the go-to search firm in support of the direct selling industry. Hanna Shea finds top talent for companies in need of building or improving an executive leadership team for organizational success.

SUPPLIER

DIRECTORY

CUSTOM TRAVEL SOLUTIONS

27 S Main St #17

Travelers Rest, SC 29690 864-990-3074 customtravelsolutions.com

Recruit and retain the right people for your organization — We are the world’s largest “white label” travel club builder.

FUTURECEUTICALS

2692 N. State Route 1-17, Momence, IL 60954 888-452-6853 futureceuticals.com

Fruit, vegetable, and grain-based solutions backed with evidence-based, marketable claims.

BYDESIGN TECHNOLOGIES

9503 Princess Palm Avenue Tampa, FL 33619 813-253-2235 bydesign.com

Award-winning social commerce software for affiliate, influencer, MLM, party plan, and social retail companies. Our turnkey back-office solutions include Wayroo, delivering advanced commerce, comment selling, and payment solutions.

E.A. DION, INC.

33 Franklin McKay Road Attleboro, MA 02703 800-445-1007 eadion.com

Dion’s jewelry solutions are perfect for career path, sales & recruiting, corporate anniversaries and incentive travel recognition awards.

MOMENTUM FACTOR

4801 Spicewood Springs Road, Ste. 250, Austin, TX 78759 512.690.2134 momofactor.com

Momentum Factor is a leading digital risk management firm specializing in online compliance monitoring and global online reputation management services for the direct selling industry. Our passion and mission are to protect companies from the brand and regulatory risks associated with online and social media technologies.

DIRECTSCALE

1510 N. State St. Orem, Utah 84057 801-701-3285 directscale.com

The most customizable enterprise SaaS platform for managing all aspects of your direct selling, affiliate and influencer marketing business. Edit your comp plan and test it against your live data! From startup to billion dollar company, it automatically scales to meet your needs so you never have to upgrade again.

ROYAL CARIBBEAN INTERNATIONAL

1080 Caribbean Way Miami, FL 33132

Royal Caribbean International’s Corporate Sales Team 800-345-7225 (SELECT 2, THEN 1) royalcaribbeanincentives.com

ICONIC SHIPS. EPIC ADVENTURES. ULTIMATE EVENTS.

Royal Caribbean® transforms events into the ultimate productivity paradise. Impress your attendees with epic venues, vibrant restaurants, onboard thrills and beautiful destinations.

NOW TECH

5800 Democracy Drive, Suite 100 Plano, TX 75024 310-428-9936 now-tech.com

The most comprehensive and powerful business management solution for direct sellers. We put more than 35 years of industry experience into creating strategies and tools to consistently grow your business. Contact us for a demo today.

EXIGO

1600 Viceroy Dr., Suite 125 Dallas, TX 75235 214-367-9933 exigo.com

The global leader in cloud-based Platformas-a-Service (PaaS) for direct selling companies. An open framework for billiondollar giants to startup companies. Exigo supports MLM, Party Plan and Affiliate models, operating in single global markets.

FLIGHT COMMERCE

1208 E. Kennedy Blvd., Ste. 222 Tampa, FL 33602 813-277-0625 flightcommerce.com

Global Operations Management Software. Advanced Comp Plan Programming. Sales Force Backoffice & Automation. Web Site Design & Replication.

THATCHER TECHNOLOGY GROUP, LLC 55 Shuman Blvd., Ste. 350 Naperville, IL 60563 866-698-3848 thatchertech.com

Thatcher Technology Group provides Sales Force, Compensation and Incentive Management Software for the Direct Selling Industry.

XIRECT SOFTWARE SOLUTIONS

686 E 110 S Unit 104 American Fork, UT 84003 385-448-1800 xirect.com

Scalable software from startup to enterprise. Your delivery expert in Commissions Calc / Consulting, Replicating Websites, E-Commerce, Reporting, Promotions, Localization, Multi-Currency, and more- The Perfect Cloud-based Direct Selling Software Partner!

INFOTRAX SYSTEMS

1875 S. State Street, Ste. 3000 Orem, UT 84097 801-431-4900 infotraxsys.com

Software & SaaS solutions for startup, emerging, and global direct selling companies. See our ad on the back cover.

JENKON

915 Broadway Street, Ste. 400 Vancouver, WA 98660 360-256-4400 jenkon.com

From Startup to Enterprise, Jenkon provides Direct Selling companies an award-winning, scalable platform unifying the future of direct selling: Openness, connectivity, omni-channel and conversational marketing.

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