John Parker - Direct Selling News https://www.directsellingnews.com The News You Need. The Name You Trust. Wed, 03 Jan 2024 19:20:41 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.2 https://www.directsellingnews.com/wp-content/uploads/2021/04/DSN-favicon-150x150.png John Parker - Direct Selling News https://www.directsellingnews.com 32 32 Cheers to 20! https://www.directsellingnews.com/2024/01/03/cheers-to-20/?utm_source=rss&utm_medium=rss&utm_campaign=cheers-to-20 Wed, 03 Jan 2024 19:19:28 +0000 https://www.directsellingnews.com/?p=20552 As we celebrate 20 years of innovations and insights, we take a look back on a few of DSN’s most important milestones. And, we asked industry leaders and legends to share how past evolutions and current opportunities are shaping the future of the industry.

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On DSN’s 20th anniversary, we asked industry leaders and legends to share how past evolutions and current opportunities are shaping the future of the industry.

In 2004, Stuart Johnson, now CEO of Direct Selling Partners, Direct Selling News (DSN) and NOW Tech, held a clear vision: to create a monthly publication that offered timely and useful information to direct selling executives. Today, that vision has expanded beyond a print publication to include podcasts, workshops, executive forums and informative in-person events featuring the biggest names in the industry. The format and appearance of the magazine has changed throughout the years, but the original foundation of Johnson’s vision remains unchanged.

As we celebrate 20 years of innovations and insights, we take a look back on a few of DSN’s most important milestones. But even before DSN’s debut in 2004, Founder and CEO Stuart Johnson had an illustrious career influencing the channel. He founded VideoDirect in 1987, which ultimately became VideoPlus and then SUCCESS Partners. He launched SUCCESS Partners University, an education conference for direct selling corporate executives in 2002.

DSN, now in its twentieth year of publication, continues to be the go-to resource for well-researched global industry news, expert insights and interviews with the founders and executive leaders behind the channel’s legacy companies and rising stars.

Deborah K. Heisz, now Neora Co-CEO, and John Fleming, a DSN Legend and former Avon executive, were two of the original staff members tasked with assembling the publication’s flagship print issues.

“At the time, there was no real periodical resource for legitimate news and information for people who were leading and operating direct selling companies,” Heisz said. “People were hungry for a trade journal they could rely on, and we received feedback from dozens—if not hundreds—of executives and owners across the industry letting us know we had truly filled a need.”

From a simple eight-page newsletter to the robust, global magazine it is today, DSN remains committed to supporting, informing, connecting and challenging direct selling executives across the US and around the world.

“I planned to stay for two to three years, but I remained Publisher and Editor in Chief for nine,” Fleming said. “We started by building something relevant and, in many ways, it has become far more relevant than we ever envisioned.”

Twenty Years of Industry-Changing Trends

The past two decades have been host to some of the most dramatic shifts in the channel, including the proliferation of the internet; the broad adoption of mobile devices; and pandemic-induced social distancing that forever changed the way shoppers buy products and interact with brands. With each paradigm shift, the direct selling industry learned to evolve and adapt.

We asked these executives: In the last 20 years, what changes have had the greatest impact on the industry?

“The vast majority of companies started in the industry by sharing products at home parties. Now, we’re sharing the opportunity virtually and across the globe without concern for physical barriers. Digital platforms forced all of us to adjust, while opening up a world of opportunity.”—Mark Pentecost / It Works! Founder and Chairman

“The operating landscape has permanently changed. Millennials want their own gig, but the average direct-to-consumer venture lacks the ability to scale up the way a direct selling company can with sales organizations.”—Rick Goings / DSN Legend, Chairman Emeritus and former CEO of Tupperware Brands

“Twenty years ago, signups and applications required a stack of paper. Today, it’s all done digitally. Technology has enabled much more efficient point-of-sale transactions and created the ability to connect and communicate with more people.”—John Addison / Addison Leadership Group; Board Member for Primerica, LegalShield; Senior Advisor to Utility Warehouse

“The digital revolution of the early 2000s felt, at the time, like a once-in-a-lifetime revolution, but it proved to be just the beginning of an avalanche of technology and business models that would profoundly change the world around us. Through all of these changes–the rise of social media, gig platforms and AI, and the challenges of the pandemic—we have demonstrated that, as a channel, we can adapt and evolve quickly.—John Parker / Amway Chief Sales Officer

“Technology has been the biggest gamechanger for us. I believe you have to have a robust strategy in both automation and face-to-face interactions for success in today’s marketplace. It is a delicate balance. Simplicity and speed can be the difference between success and failure.”—Kevin Guest / USANA Executive Chairman

The Next 20 Years

Lessons from the past 20 years have illustrated that change is not only inevitable; it is a critical part of healthy evolution. It was by welcoming social media, ecommerce and a digital-first footprint that the industry was prepared to not only survive but thrive during the pandemic. And as industry leaders look to the horizon, it will be that same bold approach and nimble, open mindset that will prepare the next generation of direct sellers for success.

We asked these executives: What actions should leaders be taking now to prepare for the future?

“We need to remember what got us here. We have always been an industry that focuses on building people, and then those people go on to build our business. We can ensure our future success by remembering that the most valuable asset any direct selling company has is our loyal, hardworking distributor field!Rudy Revak / DSN Legend, Founder of Symmetry and Xyngular

“As technology continues to create opportunities and disruptions, I believe the future of direct selling will have to be centered around community and the social dynamic in our businesses. Great products, compelling income opportunities, competitive customer and representative experiences will continue to be basic requirements, but the community and social experiences we offer can be real differentiators.—John Parker / Amway Chief Sales Officer

“We empower women and others to work a meaningful business in pockets of their day. That’s the best part of direct selling. That’s how we win. We must continue to create and emphasize this opportunity—the side hustle is always in style.—Sarah Shadonix / Scout & Cellar Founder and CEO

“Leaders in the channel should plan for growth. Those who stay current by investing in the technologies of today and tomorrow—including new ways to purchase, improve speed to customer and product value—will thrive.—Joni Rogers-Kante / SeneGence Founder and CEO

“Direct selling will continue to thrive where the exchange of value is ongoing and supportive—like in following a nutrition or fitness plan—because of the importance of accountability to achieve success, but we need to acknowledge that affiliate marketing will replace network marketing where the relationship is purely transactional.—Carl Daikeler / BODi CEO

“Personalization and integration of AI in customer service are trends that we find exciting and that we are integrating into our strategy. Direct selling is also very unique; we never work solely online or offline. The future is hybrid, and we are relying on hybrid solutions in our strategy and development to be active pioneers in our industry.—Rolf Sorg / PM-International Founder and CEO

Creating a Lasting Impact

DSN has always strived to stay on the cutting edge of direct selling trends, news and thought leadership through its educational initiatives and events. We asked these executives: How has DSN’s coverage and perspective impacted your businesses over the past two decades?

“DSN has challenged the way I think about our business and the future of our channel. It helps me sift through the hype and understand the real innovations and opportunities that will shape our future. I am so grateful for the connections and insights that DSN has brought to me and our industry.”—John Parker / Amway Chief Sales Officer

“What DSN provides is something critical for the industry: a collegial way to share best practices with one another. One of the great things about the direct selling industry is people’s willingness to share both their successes and failures. DSN gives executives a way to learn and grow their businesses.John Addison / Addison Leadership Group CEO; Board Member for Primerica, LegalShield; Senior Advisor to Utility Warehouse

“DSN is a powerful source of knowledge, allowing companies to learn from each other and grow. DSN has always offered great insights and innovative ideas. When there can be criticism of our industry, it’s important to have a platform like DSN to speak of the positive impact we’re having around the world.—Mark Pentecost / It Works! Founder and Chairman

“DSN is an important forum for keeping abreast to fast changing forces and how others are approaching and adapting to remain vital and resilient.—Rick Goings / DSN Legend, Chairman Emeritus and former CEO of Tupperware Brands

“The DSN articles and DSU events have been an amazing asset to the corporate leaders of this channel. They both create opportunities to gain valuable information, ideas and strategies, and they give guidance during changing and challenging times.—Rudy Revak / DSN Legend, Founder of Symmetry and Xyngular

“DSN continues to be an important voice and resource for steering the direction of this method of sales and marketing. It’s easy for institutions and regulators to lose sight of the individuals who legitimately use direct selling as their livelihood. DSN helps us all remember who is most important in this industry, and it’s not the company—it’s the distributors and customers.—Carl Daikeler / BODi CEO

“When DSN started, I remember thinking: ‘Finally! One place to get timely, reliable and insightful information on other direct sellers.’ Before DSN, people had to constantly scan multiple sources. It was very easy to miss company announcements and releases because so many direct sellers were private or just starting out.—David Holl / Mary Kay Chairman and former CEO

“DSN is my ‘go-to manual’ when I have questions; seek insight; look for surveys; or simply look for inspiration when I need it. I never throw away a publication, as I know I’ll need to refer to it one way or another. It helps me stay informed and current with what is going on in our channel.”—Joni Rogers-Kante / SeneGence Founder and CEO

“The community gains so much strength when we all work together, and DSN makes that happen. They are invaluable to the ongoing growth and professionalism of this industry, and I am so grateful for their work.”—Michele Gay / LimeLife by Alcone
Co-Founder & Chairwoman

“The coverage of the direct selling landscape in DSN is like no other, providing a clear and nuanced view into an industry that thrives on personal connections and innovative strategies. The articles are a testament to the precise research and commitment to detail that the team embodies, making Direct Selling News an invaluable resource for anyone involved in or interested in the dynamic world of direct sales. It’s journalism that not only informs but enriches and compliments the conversation around this unique sector of commerce.—Rolf Sorg / PM-International Founder & CEO

Building a Legacy Meant to Last

Reflecting on the past 20 years, the DSN team continues to build and plan for an even brighter future with more events, global coverage, expanding platforms and an unflinching grasp of Johnson’s original vision. The next 20 years will expand on that relevancy and commitment, providing more insights, developing broader resources and presenting more opportunities to support the executives working diligently to strengthen and scale the one-of-a-kind entrepreneurial possibilities found within the direct selling channel. 


From the January/February 2024 issue of Direct Selling News magazine.

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John Parker / Direct Selling Is a Team Sport https://www.directsellingnews.com/2023/06/23/john-parker-direct-selling-team-sport/?utm_source=rss&utm_medium=rss&utm_campaign=john-parker-direct-selling-team-sport Fri, 23 Jun 2023 17:18:17 +0000 https://www.directsellingnews.com/?p=19254 The Bravo Excellence Award is a new award this year, designed as a way to recognize executives with a long history of leadership, excellence and integrity. We couldn’t think of anyone more fitting to honor than John Parker.

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While Amway Chief Sales Officer and Regional President West John Parker is a celebrated leader, he prefers to see himself as part of a team, and not just Team Amway, but a part of something even bigger—the direct selling community.

“Direct selling is a team sport,” he shared. “We may have individual roles, but it really is a team sport. And I think for me, that’s been so much of what has shaped how I approach my career and the role that I play as a teammate and being a part of Amway as an organization and the industry more broadly.”

Destined for Direct Selling

Parker began his career with Amway in 1993, in an entry level customer service role. This job was both his first exposure to corporate culture and the direct sales industry, so he came in with a blank slate.

“I feel like direct sales chose me, not the other way around,” he joked. “And I suspect a lot of us in the industry would have similar experiences. I was really young when I started here at Amway. And it was just the experience of coming in with no knowledge of direct selling and finding myself at a company where the culture was really a good fit for me. I didn’t have a lot of perspective on what companies or corporate cultures were like. And the deeper I got into direct selling and the deeper I got into Amway, the more I liked it. The more I liked it, the more I felt at home. I felt there was a tremendous opportunity to learn and grow and develop.”

Amway has been Parker’s home for three decades, giving him the opportunity to expand his sales and marketing experience from a small regional role to President of Amway Japan to his current position as Regional President West and Chief Sales Officer. He’s had a front row seat as both Amway and the broader direct sales industry have navigated the evolution of online sales, changing customer expectations, different management styles and even a global pandemic. But he sees those shifts and changes as the rule rather than the exception.

“As I reflect back on the 30 years that I’ve been a part of the industry, what’s most interesting to me is the way in which our businesses and the individual entrepreneurs that make up our businesses have collectively adapted over time to changes in the marketplace. Sometimes we have this perspective that our model is so distinct that we’ve had to change or adapt more than other industries, but I believe that need for change is true across a lot of other industries as well.”

In Parker’s estimation, adapting is just an integral part of business as usual. He explained, “As an industry, we don’t view change as a periodic thing that we have to implement when there’s some kind of milestone or in order to react to some sudden change in the marketplace. Change is a part of operating a business day-to-day. There are times we want to be a step ahead. But there are times we want to be in step with what current expectations are.”

A Life-Long Learner

During his time in leadership at Amway, Parker has learned from hundreds of great leaders from around the world but believes that the best leaders are simply the best listeners—and that they can learn from anyone.

“As an Amway employee, I’ve learned so much from so many leaders and executives at Amway. But I’ve learned just as much from people at all levels in the organization. Our best leaders are the ones that take a 360-degree view of learning. I feel like I’m growing and learning as much today as I did 25 years ago.”

And that culture of constant learning provides Parker with the energy and inspiration that is still at the heart of the work he’s done for the past three decades. “It’s been helpful for me to be surrounded by such great people. I feel consistently compelled to maintain the standards of those I am so privileged to work with. It’s a good push for me personally to recognize that I have as much to learn today as I did when I started at Amway 30-plus years ago.”

The Bravo Excellence Award is a new award this year, designed as a way to recognize executives with a long history of leadership, excellence and integrity. We couldn’t think of anyone more fitting to honor than John Parker.

DSN salutes and respects his years of industry leadership and uncompromising integrity and belief in the channel.


From the June 2023 issue of Direct Selling News magazine.

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2023 Global Celebration | Honoring the channel’s innovators, achievers & visionaries https://www.directsellingnews.com/2023/06/01/2023-global-celebration-honoring-the-channels-innovators-achievers-visionaries/?utm_source=rss&utm_medium=rss&utm_campaign=2023-global-celebration-honoring-the-channels-innovators-achievers-visionaries Thu, 01 Jun 2023 15:29:23 +0000 https://www.directsellingnews.com/?p=19020 Hundreds of people representing 53 companies from around the world attended in person. And thousands more watched the event via free livestream. Awards and honors were revealed in several categories, including a Lifetime Achievement Award, the Bravo Awards and the DSN Global 100 List.

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It’s been a year of transition as direct selling companies and distributors continue to refine and redefine what it means to participate in the channel. While revenues for many companies remained flat or declined, several companies did report remarkable gains.

And—most importantly—companies across the industry continued to embrace and incorporate new methods of doing business to attract new people to the channel and to inspire current participants to expand their vision. There is much to celebrate.

And celebrate we did at the 14th DSN Global Celebration, a live hybrid event held on Tuesday, April 18, 2023 in Frisco, Texas. It was an exciting night hosted by DSN Chief Brand Officer Shelley Rojas and DSN Strategic Advisor Heather Chastain. Hundreds of people representing 53 companies from around the world attended in person. And thousands more watched the event via free livestream. Awards and honors were revealed in several categories, including a Lifetime Achievement Award, the Bravo Awards and the DSN Global 100 List.

Lifetime Achievement Award

For only the third time, DSN bestowed its Lifetime Achievement Award. This prestigious award was given to a true legend in direct selling, Rudy Revak.

Rudy is the craftsman behind multiple highly successful direct selling companies including Symmetry and Xyngular, which he founded in 1995 and 2009 respectively and was instrumental in the acquisition and rebranding of PUREhaven in 2016. He’s also the Chairman and Founder of Global Ventures Partners, an investment capital firm committed to creating opportunities for common people to achieve uncommon results.

Stuart Johnson and Rudy Revak

Born in Germany and the son of a World War II refugee, he escaped to America when he was just five years old. He’s a living breathing example of the American Dream in its purest, most inspirational form.

When asked to reflect on his years in the industry and what it has meant to him, Rudy spoke eloquently of the impact direct selling has had on his life. “I’ve loved this industry for all these years. I’m still in it because I love it—not just for what it has done for me, but for what it continues to do for so many people. It provides the opportunity for people to reach their dreams. I would do it all over again, 100 percent.”

The two previous recipients, John Fleming and Stan Frederick, were on hand to warmly welcome Rudy into this illustrious club. To read more about Rudy’s enduring legacy, please see page 60.

The Bravo Awards

Each year the Bravo Awards panel recognizes companies for outstanding achievement and excellence in areas of leadership and the highest percentage of revenue growth. Specialty awards are also given to individuals and companies for their achievements in and service to the direct selling channel.

ROLF SORG , PM-International / Recipient of the Bravo Leadership Award

The Bravo Leadership Award is given to an individual, recognizing outstanding achievement and exceptional leadership of a direct selling executive. This year’s recipient was Rolf Sorg, Founder and CEO of PM-International in honor of his visionary leadership and strategic direction he has displayed throughout the 30-year history of the company. PM-International is now ranked #8 on the DSN Global 100 list with $2.55 billion in 2022 revenue and a presence in 45 countries.

The Bravo Global Good Award recognizes companies that take a proactive approach to environmental, philanthropic and social responsibility issues. This year the honor went to Arbonne. Arbonne is known for its passionate commitment to empowerment, transparency and sustainability. In 2022, Arbonne earned recertification for its B Corporation status. Among Arbonne’s recertification achievements are a reduction in water consumption globally by 60 percent; a 55 percent reduction in Scope I and II emissions since 2019; and a 42 percent decrease in electricity consumption since 2019.

DSN honored three companies with the Bravo Impact Award this year. The award recognizes the achievements of well-rounded companies that take a holistic, measured and incremental approach to growth, innovation and operational integrity and excellence. These companies positively impact their customers, distributors, staff, communities and the channel as a whole. They are helping to lead the way forward in shifting the public perception of direct selling.

The first award went to LegalShield. LegalShield has devoted the past 50 years to providing affordable assistance with everyday legal matters from wills and real estate to family law and consumer issues, as well as privacy management. LegalShield has served 4.5 million people and more than 140,000 businesses and taken over 50 million requests for legal services since its inception and has paid out over $1 billion in commissions over the past ten years.

The second Impact award honoree was Princess House. Celebrating their 60th anniversary this year, Princess House is marking this milestone with an unprecedented period of growth. They credit this success to creating a true partnership with the field. Their field, comprised mostly of Latina women, have embraced a new digital approach that has greatly expanded their reach. A streamlined product offering and a philosophy of training up has increased their overall order size by 40 percent.

LIMELIFE BY ALCONE /
Recipient of the Bravo Impact Award

The final recipient of the Impact Award was LimeLife by Alcone. Plunging ahead into the unexpected and refusing to fit in is part of this company’s DNA. Having started in 1952 selling stage makeup to Broadway performers, Alcone eventually grew into a nationwide leader in professional makeup for the television, film and theatrical industries. The company’s commitment to quality, DEI-focused strategies and passion for female entrepreneurship is nothing short of inspirational!

Two Bravo Growth Awards were bestowed on domestic direct selling companies. This prestigious award celebrates the direct selling company with the highest year-over-year revenue growth on the Global 100 List. One is given to a product-based company, and another is given to a service-based company.

This year’s product-based Bravo Growth Award was given to Princess House. This market leader in kitchenware and home goods grew 114 percent between 2019 and 2022.

The service-based award was given to eXp Realty for the third year in a row. The company has well over 85,000 independent agents worldwide and continues to grow at an exponential rate. In fact, this publicly traded company grew from $3.8 billion in 2021 to $4.6 billion in 2022. An $800 million-dollar increase representing 21 percent in year-over-year growth.

Two Bravo International Growth Awards were also announced. These were also given to one product-based company and one service-based company.

The product-based winner was no stranger to the Global Celebration stage. Based in Luxembourg, PM-International has enjoyed 29 years of continuous growth. They are on quite a run, growing from $1.7 billion in 2020 to $2.38 billion in 2021 and achieving $2.55 billion in 2022.

Utility Warehouse won in the service-based category. This UK-based company ranked #10 on the Global 100 this year.

DSN added two new awards to the Bravo line up this year. The first, the Bravo Innovator Award, recognizes direct selling companies that embrace and deploy the emerging technologies and future-focused strategies that propel the company forward and serve as an inspiration of what’s possible. The inaugural Bravo Innovator Award was given to FASTer Way To Fat Loss.

The final award of the evening was the Bravo Excellence Award, another new award this year. This recognition is reserved for executives with a long history of leadership, excellence and integrity. These individuals are champions of the channel and positive mentors to all who serve it. The award was given to John Parker, Chief Sales Officer and Regional President West of Amway.

For more in-depth information of our Bravo Award winners, please see our expanded coverage starting on page 66.

The Global 100 List

One of the most eagerly anticipated announcements each year at the Global Celebration is the unveiling of the Global 100 list. This list determines the top direct selling companies in the world for 2022. Inclusion on the Global 100 has become a point of much-deserved pride.

The List offers a unique perspective on the global impact of the industry by recognizing companies’ revenue achievements. Recognition for each of these companies is the culmination of months of research and the cooperation of many individuals around the world.

This year’s DSN Global 100 list acknowledges 53 companies achieving more than $100 million in revenue for 2022. Full coverage of the list as well as analysis on important and emerging trends can be found starting on page 114.

Oh, What a Night!

The DSN Global Celebration is the industry awards event of the year—a night designed to celebrate, inspire and motivate! If you missed the broadcast, you can catch it on replay at DSNG100.com for a limited time. Gathering together in person creates an incredibly positive sense of community and energy within the room—the magic of those moments is definitely must-see viewing for supporters of the channel.

From the 53 thriving companies on the Global 100 List to the 11 Bravo Award winners and our Lifetime Achievement Award winner, Rudy Revak, DSN recognized the best of the best of the channel we all love and believe in.

Congratulations to the winners and thank you to the hundreds in the room and thousands of viewers worldwide. And a sincere thank you to all our Supporter Companies and Supplier Sponsors for helping DSN provide this night of celebration, recognition and camaraderie. 


From the June 2023 issue of Direct Selling News magazine.

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Amway: Sustainable Success https://www.directsellingnews.com/2022/11/21/amway-sustainable-success/?utm_source=rss&utm_medium=rss&utm_campaign=amway-sustainable-success Mon, 21 Nov 2022 15:10:00 +0000 https://www.directsellingnews.com/?p=17675 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.

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

Founded | 1959

Headquarters | Ada, Michigan

Top Executive | Milind Pant, CEO

Product Category | Health/Wellness, Beauty, Home, Adventure

DSN Global 100 2021 | #1

When 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.

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.

“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 hand-in-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.”


From the November 2022 issue of Direct Selling News magazine.

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Direct Selling University 2022 https://www.directsellingnews.com/2022/06/10/direct-selling-university-2022/?utm_source=rss&utm_medium=rss&utm_campaign=direct-selling-university-2022 Fri, 10 Jun 2022 16:35:41 +0000 https://www.directsellingnews.com/?p=16623 The multi-day educational event offered new insight and strategies for connecting with a rapidly evolving market.

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The multi-day educational event offered new insight and strategies for connecting with a rapidly evolving market.
STUART JOHNSON / CEO of Direct Selling News, Direct Selling Partners & NOW Technologies

After a multi-year hiatus, Direct Selling University was back in-person at the Omni Hotel in Frisco, Texas, infused with more energy and excitement than ever before. The educational and networking opportunity, which has been held virtually during the pandemic, offered experience-based, high-impact insight into everything from improving communication and onboarding practices to the importance of sustainability and diversity.

“Being back in person for the first time in three years was incredibly energizing,” said Shelley Rojas, Publisher and Chief Brand Officer for Direct Selling News. “The human connectivity and interaction reuniting with our in-person attendees was inspiring and a lot of fun.”

Headlining the event was Jason Dorsey, author, speaker, researcher and President of The Center for Generational Kinetics, who shared an extensive data-backed look at the generational trends in consumer purchasing, recruitment, communication and engagement. His keynote address inspired an enthusiastic conversation among attendees about how companies can leverage their culture, technology, digital footprint, messaging tactics and customer service strategies to successfully reach even more people.

JASON DORSEY / President of The Center for Generational Kinetics

“It’s always important to have outside, expert perspectives to help everyone learn, grow, stretch and evolve individually and as a channel,” Rojas said. “Jason’s insights and research on generational trends are fascinating.”

Technology was by far the most discussed category among the generational divides, with Dorsey highlighting how each age group interacts with online platforms in unique ways. By honoring every generational segment within the industry, from Gen Z to Baby Boomers, and acknowledging their separate needs and preferences, Dorsey illustrated how the channel has the opportunity to become not only more relevant, but more effective as well.

“Direct selling has and will always be a people business,” Rojas said. “The more companies focus on how to understand and embrace people from every generation for their strengths and communication styles combined with diversity, equity and inclusion efforts in their decision making and culture building, we believe significant shifts and evolution can happen.”

Edify and Inform

KATY HOLT-LARSEN / President & CEO, Kyäni

This year’s lineup featured more than 30 speakers from top performing direct selling brands, rising stars within the industry, marketing experts and innovators, with thought leaders and top executives from companies around the world gathered to network, learn and share insights throughout the two-day event.

“At DSN, we strive to edify, inform and educate the channel and the executives that lead it,” said Stuart Johnson, Direct Selling News Founder and CEO. “Direct Selling University serves as a strong foundation for that goal by bringing together some of the channel’s most prominent executives, champions and thought leaders. We create an open, transparent environment that’s designed to foster the sharing of ideas and best practices for the betterment of direct selling as a whole.”

Carrying that mission beyond the event, Direct Selling News also shared its new opportunities for connection, through the DSN VIP Community, a fully customizable text messaging platform that sends news alerts based on user preferences, and the DSN Membership Program, which provides exclusive training and educational opportunities to keep corporate staff members one step ahead with the most important trends and breaking news.

ROLF SORG / Founder & CEO, PM-International

“We’re in the midst of a strategic renaissance here at Direct Selling News and are eagerly looking for ways to share practical solutions to common challenges with the executives who are leading the future of this channel,” Rojas said.

Jason Dorsey, Author, Speaker and President of The Center for Generational Kinetics, brought decades’ worth of data to the stage, sharing the generational angles that no one is talking about and how paying attention to the differences in these segments can help companies future-proof their businesses.

Stuart Johnson, CEO, Direct Selling News, Direct Selling Partners & NOW Technologies, pointed out how the pandemic accelerated trends that were already in motion within the industry and how the channel can use sampling and referrals to capitalize on that customer-centric momentum.

Rolf Sorg, Founder & CEO, PM-International, illustrated how he used solution-oriented thinking to find opportunity within the challenges of the past year to exceed $2 billion in sales.

Sarah Shadonix, Founder & CEO, Scout & Cellar, shared some of her young company’s biggest mistakes and how learning from previous fumbles can help leaders build better businesses.

Brian Underwood, Co-Founder & CEO, Prüvit, and Terry Lacore, Founder & CEO, Lacore Enterprises, in a Q&A panel with Wayne Moorehead, Host of The Direct Approach Podcast, explained how their innovative partnership with Sunbasket is driving consumer engagement while building cost-effective and simple onramps for complicated products that develop loyal customers.

from left:
STUART JOHNSON / Founder & CEO, Direct Selling News
TARL ROBINSON / Founder & CEO, Plexus Worldwide
JOHN PARKER / West Region President & CSO, Amway
Mark Pentecost, Founder & Chairman, It Works!

John Parker, West Region President and Chief Sales Officer, Amway; Mark Pentecost, Founder & Chairman, It Works!; and Tarl Robinson, Founder & CEO, Plexus Worldwide, participated in a panel led by Stuart Johnson, and shared why investing in growth amid incredible momentum is critical; offered an inside look at Amway’s approach to sustaining an entrepreneurial culture while leading one of the most well-known brands in America; and how to embrace every phase of a company’s growth.

Ami Perry and Noah Westerlund of NOW Technologies leveraged their data analytics to illustrate how to improve adoption of digital platforms and increase recruitment and retention numbers.

Russ Fletcher, Chief Executive Officer, Xyngular, taught a Personal Development 101 course on stage, sharing how to involve distributors through quick, digital engagements while monitoring perceived value.

Shelley Rojas, Publisher and Chief Brand Officer, Direct Selling News, shared the many free resources available to direct selling executives to connect with breaking news, inspiring stories and education to find answers to everyday leadership challenges through DSN’s VIP community and vast masterclass archives with the DSN Membership Program.

DEBBIE BOLTON / Co-Founder, Norwex

Mike Lohner, President and Chief Financial Officer, Direct Selling Acquisition Corporation, provided an update on the first special purpose acquisition company entirely focused on the direct selling channel and traded on the New York Stock Exchange, including its overwhelmingly positive reception on the market that resulted in raising $230 million.

Kelly Bellerose, Senior Vice President, 4Life, used data from recent studies to explain how vital imagery is for brand communications and why cohesion through consistency, familiarity and repetition can form a brand language that draws in customers in a way that text alone never could.

Debbie Bolton, Co-Founder, Norwex, told the story of how she switched her mindset from a perspective of building a dynasty to creating a legacy, and how leading with the future in mind has helped her company stay relevant.

Daniel Picou, Founder and CEO, Vasayo, discussed lessons learned during international expansion into China, and how to build a sustainable business through steady growth built on customer loyalty and a flexible leadership team.

JESSE McKINNEY, AMANDA MOORE and GENIE REESE /
Co-Founders, Red Aspen with Heather Chastain

Kindra Hall, Author, Speaker and Storytelling Expert, explained why the stories we tell ourselves can limit our success, and offered an action plan for transforming the lives of potential superstar leaders by teaching them how to change their own storytelling.

Jesse McKinney, Amanda Moore, Genie Reese, Co-Founders, Red Aspen, interviewed by Heather Chastain, Founder & CEO, Bridgehead Collective and new Strategic Advisor at DSN, shared how they drive engagement through constantly refreshing their product offerings and why sharing all of their marketing assets and training materials publicly has decreased skepticism.

Kevin Guest, Chairman & CEO, USANA, talked about how 30 years of successful business has illustrated the importance of focusing on active customer counts rather than revenue to maintain the overall growth and long-term sustainability of a company.

KEVIN GUEST / Chairman & CEO, USANA

Sinan Tuna, CEO North America, Farmasi, shared his perspective as a Gen Z leader and how his company has crafted a winning expansion strategy by being nimble, responsive and fast moving.

Wayne Moorehead, Marketing, Brand Strategy & Direct-to-Consumer Industry Expert and Host of The Direct Approach podcast, discussed the changing competitive landscapes direct sellers operate in and how companies can deliver a timely, relevant message across a growing array of customer touchpoints.

Katy Holt-Larsen, President and CEO, Kyäni, talked about how to take the industry to the next level by fighting back against “business as usual” and casting a resilient vision.

Stuart MacMillan, President, MONAT, pointed out the uniqueness of the channel and how an unwavering commitment to acquiring and satisfying customers is the best engine for growth and an effective defense against an ever-changing regulatory environment.

Crayton Webb, Founder & CEO, Sunwest Communications, shared lessons from pop culture about crisis preparedness and how quick, clear communication can prevent damage to a brand’s reputation.

Kirsten Aguilar, Executive Vice President of Global Marketing and SeneCare, SeneGence, shared how they have leveraged a collaboration with distributors who have massive social media followings to promote products in a budget-friendly, viral way.

DON THOMPSON / President, LegalShield

Paul Adams, Founder & CEO, Adams Resource Group, offered a blueprint for how to create, own and defend your company culture.

Deborah K. Heisz, Co-CEO, Neora, explained the importance of leading rather than reacting in a crisis and shared the key components of their success amid a lengthy battle with the FTC.

Heather Chastain, Founder & CEO, Bridgehead Collective, encouraged leaders to manage field expectations through realistic stories and thoughtful transparency to help them reach their goals.

JOHN ADDISON / CEO, Addison Leadership Group

Kindsey Pentecost, Chief Marketing Officer, It Works!, shared how authenticity, caring for their corporate team as well as the field, being willing to fail, and aligning their culture with their brand accelerated their growth and gave them a competitive advantage.

Don Thompson, President, LegalShield, discussed the challenges of being an established subscription-based service company with aging field leadership and their innovative solutions that honor these legacies while infusing energy into new recruits.

John Addison, Chief Executive Officer, Addison Leadership Group, called people to take charge of their thoughts and attitudes to cultivate a better life and become a person that people want to follow.


From the June 2022 issue of Direct Selling News magazine.

The post Direct Selling University 2022 first appeared on Direct Selling News.

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The Making of a Billion Dollar Company https://www.directsellingnews.com/2022/03/01/the-making-of-a-billion-dollar-company/?utm_source=rss&utm_medium=rss&utm_campaign=the-making-of-a-billion-dollar-company Tue, 01 Mar 2022 15:17:00 +0000 https://www.directsellingnews.com/?p=15825 Common Practices. Managerial Courage. Calculated Risk. If a founder’s belief in a hero product starts a company on its journey toward the billion-dollar mark, then it’s stellar decision-making and a determined field that can propel them into momentum and triple digit multimillion-dollar status. But scaling to a billion or more? What does it take to get […]

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Common Practices. Managerial Courage. Calculated Risk.

If a founder’s belief in a hero product starts a company on its journey toward the billion-dollar mark, then it’s stellar decision-making and a determined field that can propel them into momentum and triple digit multimillion-dollar status.

But scaling to a billion or more? What does it take to get there? Is it possible to suss out common denominators that give rise to the birth of a legacy company? What has to change along the way? What doesn’t?

Cropped shot of a mature businessman giving a presentation in the boardroom.
Billion-dollar companies understand if they do not put the customer first, the customer will simply find a company that does.
Yuri A/shutterstock.com

There are a several billion-dollar domestic companies in the channel: Ambit, Amway, doTERRA, eXp Realty, Forever Living, Herbalife, Melaleuca, Medifast, Nu Skin, Primerica, Rodan + Fields, Scentsy, Tupperware, USANA and Young Living. These questions were top of mind when DSN reached out to a select list of these billion-dollar companies.

The idea was to make a common denominator checklist of sorts, gleaned from their responses to questions about their approach to business. We asked about manufacturing, information technology, environmental, social and governance initiatives, in-house research and development and the like. Do they consider themselves customer-centric? What do they gain from segmentation?

No small surprise—billion-dollar companies have plenty of tangibles in common. After all, these companies are headed by industry leaders, the likes of which identify and promote best practices throughout the broader direct selling industry.

No company—billion dollar or otherwise—uses the identical building blocks in precisely the same manner. Here, we aim to highlight the benefits, as these companies see it, to consistently apply best practices in order to meet their corporate goals.

We also consider the less tangible and harder to measure corporate and leadership characteristics that billion-dollar companies share and why these attitudes and behaviors are vital for those companies who someday want to claim that billion-dollar status themselves.

What Makes a Billion Dollar Company?

It took two decades or more from their founding for several of the participating billion-dollar companies to reach the illusive billion dollars in sales. Scentsy, a newcomer to the list in 2021, found their stride in just 17 (discover more about their journey on page 60). But Rodan + Fields met the mark in an astonishing eight years, simultaneously becoming the number one premium skin care brand in the United States in 2016.

No doubt, industry best practices applied over the years pushed them all toward their goals and continue to inform the strategic thinking that keeps them growing. But what else came into play to get them to a billion? We asked Heather Chastain, Founder and CEO of the direct selling consultancy Bridgehead Collective, just that.

“You don’t see timid companies reach that level. You see bold companies, who take calculated risk, thoughtful risk, mission-minded risk, but risk nonetheless,” Chastain, who has worked in the C-Suite of companies like Shaklee, Arbonne, Celebrating Home and BeautiControl, shared.

There’s an immense amount of patience and foresight necessary to scale a direct selling business. It also takes corporate recognition that what earned them their current status may not be what ultimately gets them across the billion-dollar threshold.

As Chastain explained, “Too many companies that I see, their pitfall is they stay insular. They think, ‘This is what got us here and it will get us to the next level.’” Chastain helps companies think through marrying innovation and strategy by opening up and engaging management teams to embrace strategic thinking as a daily activity as opposed to a one-time event.

Companies, large and small, can weave this kind of day-to-day strategic thinking into their commitment to and application of industry best practices. Billion-dollar companies long ago began this process and have reaped the advantages.

So, what are these best practices and how do billion-dollar companies put them to work?

Customer Centricity

Billion-dollar companies put customers at the center, whether that’s improving the shopping experience; better understanding wants, needs, goals and motivations; or maximizing data and analytics to help customers make informed choices and their distributors deliver products that excite and satisfy. They understand if they do not put the customer first, the customer will simply find a company that does.

Cheerful young man and woman shaking hand to man sitting in front of him across the desk
G-Stock Studio/shutterstock.com

“We have a Customer Experience (CX) office led by the C-Suite of the company that manages and socializes customer journeys across our personas, to prioritize and address the top needs of the customer according to the data the team gathers,” explained Ruth Todd, Senior Vice President and Chief Reputation Officer at Nu Skin.

That CX team prompts collaboration across Nu Skin’s departments and markets to deliver key customer experiences that drive attraction, connection and retention. Customer need and experience is paramount at every touchpoint, as it helps affiliates attract new customers and grow their customer base.

Global Responsibility

Environmental, social and governance (ESG) initiatives resonate with customers as well, but that’s not the only reason billion-dollar companies embark upon them. Doing good is good for business, and it also helps secure the direct selling business model in the marketplace.

People, planet and product—those are the areas of ESG focus for billion-dollar companies, who wrap sustainability, charitable giving and social impact into their business strategies and create governance committees at both the board level and internally to assure efforts remain aligned with company core values, vision and goals.

“We make no distinction between our Global Responsibility and operating our business: Both are reflected in our long-term growth strategies and our day-to-day activities. We are committed to creating positive impacts for our independent distributors, employees, communities and the planet, while driving sustainable business growth,” Herbalife CFO Alex Amezquita said.

The initiatives are plentiful and varied. USANA, in addition to their efforts to create more sustainable products and packaging, has undertaken a large-scale information initiative to help employees learn how to make the company a more inclusive, equitable and sustainable workplace.

Nu Skin works closely with supply chains, product and facilities teams to do their part to protect the environment, while supplying VitaMeal to the world’s neediest through charity partners. “By working closely with experts on the ground, we have a clearer picture of how we can best help and know that we are making the greatest impact,” explained Todd.

So engrained is giving in Scentsy’s culture that since 2010, the Scentsy Family Foundation has donated more than $14.3 million to more than 175 global and local charities that their communities most value.

At Rodan + Fields, the company’s charitable arm, Prescription for Change has invested more than $15 million in programs for 1.5 million young people to give them the skills they need to thrive in school, work and life.

“Our community of distributors and home office team members are passionate about doing good and giving back. I’m constantly inspired by the various ways they demonstrate our purpose to be life changing by making a positive impact,” said Jessica Raefield, Chief Human Resources Officer.

“We also launched an ESG effort in 2019, as well as formulating 2025 Do Good goals that focus energy on the environmental and social commitments most material to stakeholders and their core business strategy,” shared Raefield.

Segmentation

Member/Customer segmentation offers clear differentiation between people who want to purchase retail products or to build a sales organization and those who simply want discounts on products for their own consumption. Billion-dollar companies embrace segmentation because it creates the most accurate picture of customer activity, intent and goals, while also improving the company’s ability to communicate and market effectively.

Detailed customer segmentation can be used throughout product and program design and development so that a company is crystal clear on a product’s unique value proposition for a target audience. It also informs the creation of compensation plans for companies like Scentsy, who do not attract large numbers of preferred customers. Scentsy distributors, for example, are not compensated on a “wholesale/retail” pricing structure, but rather a commission structure with the opportunity for bonus overrides.

Information Technology

Extensive in-house IT teams, who are called upon to manage diverse components that make up a company’s overall IT infrastructure, are a hallmark of billion-dollar companies. Because these departments have a deep understanding of the company’s values and its business operations, they are often the most effective way to reach IT goals. In-house teams support customization, help develop right-sized efforts and maintain focus. However, to prioritize and meet business needs, some companies reach to trusted IT partners for outside thinking and specialized expertise.

Manufacturing

Warehouse setting with smiling female engineer in helmet
“Manufacturing on-site allows us to remove as many unknown variables as possible, which leads to higher quality products.”—JIM BROWN / USANA President
Art_Photo/shutterstock.com

All of our respondents exercise at least some autonomy over the manufacture of their products, either through company-owned and operated manufacturing facilities or those owned by strategic investment arms. Some companies report an estimated 60/40 split between in-house manufacturing and outsourcing. Often the question of in-house manufacturing depends upon the product and where it is sold.

“Manufacturing on-site allows us to remove as many unknown variables as possible, which leads to higher quality products. When we are able to oversee virtually every aspect of product manufacturing, we can more easily spot any quality issues and what is causing those issues,” President Jim Brown says of USANA’s well-equipped in-house processes.

Herbalife—who maintains two manufacturing sites in the U.S., three abroad and eight quality control labs—began expanding self-manufacturing investments in 2010. According to COO Mark Schissel, investments in research, technology, science, manufacturing facilities and other areas allowed Herbalife to weather many supply chain disruptions and has given the company the ability to develop better and safer products that build consumer trust.

It’s a worthwhile investment according to many billion-dollar companies. Just last year Amway announced an investment of more than $50 million over the next five years in the company’s Ada, Michigan-based manufacturing capabilities and footprint.

And at Young Living it’s an integral part of the company’s commitment to quality that began with founder D. Gary Young and continues until today. Young always wanted to know where essential oils came from; how the plants were grown and harvested; how the they were extracted; and how they were stored. The company has continued that philosophy by investing in their own farms and developing sourcing and compliance programs that give them an extensive knowledge of their global essential oil supply chain.

Regional Distribution Centers

To better serve a quickly expanding customer base, many of these five billion-dollar companies utilize regional distribution centers. RDCs streamline global shipping, delivery and order fulfillment processes. Herbalife opened its third U.S. regional distribution center in Hagerstown, Maryland in September last year. Nu Skin utilizes distribution centers and warehouses in many markets, with principal facilities in Provo, Utah and mainland China. By April 2022, Scentsy will have three North American distribution centers.

Research and Development

Billion-dollar companies maintain a collaborative research and development (R&D) philosophy that combines in-house capabilities ranging from staffs of 75 in-house scientists, as is the case with Nu Skin, to co-development research and clinical testing third-party partnerships managed by in-house teams.

“Rodan + Fields develops innovative products and proprietary technologies with expertise from many professionals including esteemed doctors, PhDs, R&D experts and strategic partnerships, as well as insight from our very own brand founders, who are esteemed practicing dermatologists themselves,” shared Dr. Sumita Butani, Senior Vice President of R&D and Innovation. “Our breakthrough products begin in a world-class laboratory in Berkeley, California where our team of scientists collaborate.”

Amway shares a similar philosophy. “We have a global Innovation and Science team of 800 full-time explorers, engineers, formulators, scientists and other experts who pour their hearts and minds into every product we create,” explained John Parker, Chief Sales Officer and Regional President, West. “Having Innovation and Science as a force internally helps us guarantee scientific excellence at each and every step of the way.”

A portrait of an industrial woman engineer standing in a factory
Halfpoint/shutterstock.com

While the activities associated with in-house R&D vary greatly from company to company depending upon their product category, the over-arching effect of in-house teams proves advantageous. They can enhance vertical focus and consumer-driven responses; strengthen resource oversight and control; and reduce time-to-market.

Young Living has an in-house Research and Development department lead by Dr. HK Lin. The greatest advantage to the company is the ability to create an environment to foster the next generation of research and development leaders who will carry out the company’s vision well into the future.

“With in-house R&D, it provides us with a tighter connection to product development for greater innovation and speed to market. As we listen to our customers, we are able to focus on unique research for developing products that meet their needs, and it gives us the ability to test and gain even more understanding after products launch for ongoing enhancements,” Todd explained.

Brown agreed, “Having our R&D team in-house is a great benefit to the company because they understand the full impact of our mission and what we are trying to deliver with our products.”

Public or Private—The Great Debate

Amongst the twelve companies we considered, there is an almost even split between public and private. It’s not surprising because there is no right or wrong answer to whether or not going public is the best course of action. Each path has potential benefits and pitfalls.

Private companies face less scrutiny from shareholders and don’t have to release quarterly and annual reports like public companies do. And the process of going public is also lengthy and costly.

But there are considerable benefits to becoming a public company as well. It can mean a huge influx of critically needed cash for a growing company trying to take the next step, which can be used for strategic investments in vital areas such as supply chain, technology and international expansion to name just a few.

Leadership—More Than Checking Off Best Practices

It turns out, best practices, while extremely valuable and essential, are the easiest billion-dollar commonalities to quantify, assess and talk about. They more or less fit nicely onto a checklist, but they represent a fraction of what goes into building a billion-dollar direct selling company.

Even if a company applies them in the most advantageous ways, there’s no guarantee they will reach the proverbial pinnacle they are seeking. So what else is in play inside direct selling’s most successful companies? What can aspiring companies and their leadership teams learn from those already on the list?

Billion-dollar companies have three commonalities that make a huge difference in their eventual rise: A consistent and relentless focus on their mission; seemingly unending commitment; and managerial courage.

“The companies that get to that billion-dollar level often have founders and management teams that walk the walk. They are genuinely invested in the mission of their companies beyond the confines of a job. For them, it’s not a job. It’s a purpose,” Chastain said.

These leaders excel at sharing that mission and engaging and enlisting their fields and employees in the mission on a regular basis and absolutely not deviating from that mission even when things get challenging.

On-going commitment, even when it’s challenging to stick with an annual or a three-year or five-year strategic plan means these companies are not concentrating on short-term results or quick fixes. They are focused on the long-term objectives and have discipline throughout their organizations.

And that takes managerial courage. Chastain encouraged companies to “Take big steps; make bold changes when the market calls for it and when the field calls for it.”

“Our leadership recognizes the need to be agile and always innovating, backed by the ability to make the necessary decisions for the long-term success of the company,” Todd said.

How those decisions get made is infinitely more complex as a company scales toward a billion dollars in sales. Eighty percent of companies in the $500 million range discover in an honest assessment that a CEO or Founder is holding on too tight to too many decisions.

“To scale, everything can’t continue to come through one single point of contact. That means hands-on Founders, who have grown their businesses to say the $500 million mark, need to make space in the spotlight for others in the organization; relinquish some control; and delegate to trusted hires,” Chastain explained.

The organizational structure of the company itself matters little. In fact, billion-dollar companies can have country managers or presidents, global entities or everything can be run through corporate. But the one thing that billion-dollar companies do have in common is autonomy for their department heads, however that’s defined internally.

They are trusted and granted latitude to work autonomously. Not carte blanche, but with enough autonomy to effect change in their function. They are trusted, respected leaders who are expected to understand the mission; understand where the company is headed; understand the strategic plan; but they can go execute somewhat freely to deliver what they’ve been hired to deliver.

But often, companies pushing toward billion-dollar sales goals don’t recognize what’s holding them back. What’s lacking is new energy and a fresh perspective.

That can come in the form of a couple new hires or outside consultancies, but the time to search for help is when things are going well. The time to plan for the next wave of growth is during the current wave of growth.

“That’s where we can get true radical change,” Chastain said.


Although there is nothing cookie cutter about these companies, you can see from this checklist that there are a few traits and commonalities they share. Their product lines and origin stories vary widely, but there are many similarities in their business philosophies—we’ve compiled them here.

Amway logo

Headquarters |
Ada, Michigan

Founded |
1959

Product Category |
Health and wellness

Hero Product |
Nutrilite (accounts for more than half of global sales)

Founders |
Richard DeVos and Jay Van Andel

Current Leadership |
CEO Milind Pant

Hit Billion-Dollar Status |
1980

Privately held

International Markets |
More than 100 countries and territories worldwide

COMMONALITIES:

  • Identifies as Customer Centric
  • In-house Research and Development
  • In-house Manufacturing: Combination
  • ESG Initiatives
Herbalife Logo

Headquarters |
Los Angeles, California

Founded |
1980

Product Category |
Weight management, sports nutrition, health and wellness

Hero Product |
#1 brand meal replacement and protein supplements in world

Founder |
Mark Hughes

Current Leadership |
Chairman and CEO John Agwunobi

Hit Billion-Dollar Status |
2001

Public (HLF: NYSE)

International Markets |
95

COMMONALITIES:

  • Utilizes segmentation: In nearly all key markets
  • Identifies as Customer Centric
  • In-house Research and Development: Combination
  • In-house Manufacturing: 65% of product
  • Utilizes Regional Distribution Centers
  • ESG Initiatives
Nu Skin Logo

Headquarters |
Provo, Utah

Founded |
1984

Product Category |
Beauty and wellness

Hero Product |
60/40 split in favor of personal care products

Founders |
Blake Roney, Sandie Tillotson, Steve Lund

Current Leadership |
President and CEO Ryan Napierski

Hit Billion-Dollar Status |
Fiscal year 2004

Public (NUS: NYSE)

International Markets |
approximately 50

COMMONALITIES:

  • Utilizes segmentation: Outside Mainland China
  • Identifies as Customer Centric
  • In-house Research and Development
  • In-house Manufacturing: In Mainland China; Trusted third-parties elsewhere
  • In-house IT: Combination
  • Utilizes Regional Distribution Centers
  • ESG Initiatives
  • Transparent Communications Priority
Rodan Fields Logo

Headquarters |
San Francisco, California

Founded |
2002 (retail), 2008 (direct selling)

Product Category |
Skin care

Hero Product |
Rodan + Fields Core Regimens

Founders |
Dr. Katie Rodan and Dr. Kathy Fields

Current Leadership |
CEO and President Dimitri Haloulos

Hit Billion-Dollar Status |
2016

Privately held

International Markets |
4

COMMONALITIES:

  • Identifies as Customer Centric
  • In-house Research and Development
  • In-house IT: Combination
  • ESG Initiatives
Scentsy Logo

Headquarters |
Meridian, Idaho

Founded |
2004

Product Category |
Home durable and consumable within home fragrance space

Hero Product |
Scentsy Warmers and Fragranced Wax

Founders |
Heidi and Orville Thompson

Current Leadership |
Dan Orchard, President and Interim CEO

Hit Billion-Dollar Status |
Fiscal year 2021

Privately Held

International Markets |
5

COMMONALITIES:

  • Utilizes segmentation: To provide crystal clear value proposition for target audience
  • Identifies as Customer Centric
  • In-house Research and Development: In-house works in tandem with outside partners
  • In-house Manufacturing: For fragrance; not for hard goods.
  • Utilizes Regional Distribution Centers
  • In-house IT
  • ESG Initiatives
  • Transparent Communications Priority
Usana logo

Headquarters |
Salt Lake City, Utah

Founded |
1992

Product Category |
Nutritional supplements, skin care, lifestyle, weight management

Hero Product | USANA CellSentials

Founder |
Dr. Myron Wentz

Current Leadership |
CEO and Chairman Kevin Guest

Hit Billion-Dollar Status |
Fiscal year 2016

Public (USNA: NYSE)

International Markets |
24

COMMONALITIES:

  • Utilizes segmentation
  • Identifies as Customer Centric
  • In-house Research and Development
  • In-house Manufacturing: 65% of product
  • Utilizes Regional Distribution Centers
  • In-house IT
  • ESG Initiatives: Employee and associate/customer
  • Transparent Communications Priority
Young Living Logo

Headquarters |
Lehi, Utah

Founded |
1994

Product Category |
Essential oils and essential oil-infused products

Hero Product |
Ningxia, Thieves, Lavender

Founder |
D. Gary Young

Current Leadership |
Mary Young

Hit Billion-Dollar Status |
2015

Privately Held

International Markets |
Service and ship globally with markets in North and South America, Europe, Asia and Africa

COMMONALITIES:

  • Identifies as Customer Centric
  • In-house Research and Development
  • In-house Manufacturing
  • ESG Initiatives

From the March 2022 issue of Direct Selling News magazine.

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Q&A with Ryan Napierski https://www.directsellingnews.com/2019/08/01/qa-with-ryan-napierski/?utm_source=rss&utm_medium=rss&utm_campaign=qa-with-ryan-napierski https://www.directsellingnews.com/2019/08/01/qa-with-ryan-napierski/#respond Thu, 01 Aug 2019 10:10:13 +0000 https://dsnnewprd.wpengine.com/qa-with-ryan-napierski/ Transformation is a Perpetual Process. Nu Skin President Ryan Napierski was named the DSA Chairman at the DSA Annual Meeting in June. I recently connected with Ryan to talk about his focus and vision for his upcoming new role as well as insights on what is happening at Nu Skin. We are a couple months […]

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Transformation is a Perpetual Process.

Nu Skin President Ryan Napierski was named the DSA Chairman at the DSA Annual Meeting in June. I recently connected with Ryan to talk about his focus and vision for his upcoming new role as well as insights on what is happening at Nu Skin.

We are a couple months from the DSA annual meeting in Austin, where you were welcomed as the new Chairman taking over from Amway’s John Parker. Could you share with us a little about what your focus and vision are going to be as the Chairman?Ryan Napierski

I’m really excited to take on this role. I’ve been participating in the executive committee along with John for the last couple of years, and we’re excited about the progress we’ve been making around selfregulation. I think reputation is a critical part of our responsibility—as an association—how we work and how we represent our industry.

As we look to the future, I want to make certain that there’s continuity between where we’ve been and where we’re going. So I developed a three ‘R’ framework of Reputation, Repositioning, and then Rejuvenation. I briefly spoke about reputation—how do we continue to improve the overall reputation? The self-regulatory movement, the Direct Selling Self-Regulatory Council, is a critical step in helping us to ensure that companies that are part of our industry—broader than just the association—understand the appropriate way of doing business. That will continue to be a key focus as we move forward in optimizing this new program to improve the reputation overall.


“Our focus is to get culture right and to continuously transform as an enterprise to win in the future.”

Share with us the second and third part of your three ‘R’ framework, Repositioning & Rejuvenation.

In addition to reputation, we need to look hard at the repositioning of our association and our industry. With all the macro trend movements we’re all familiar with—the gig economy, millennials, social, mobile—it really is a different business operating environment. It also poses a very significant opportunity for us—if we position ourselves effectively to play in it. As an association, how we provide value to our members to help us in repositioning ourselves in this new world is a key focus in adding value for our members.

The final element or the third ‘R’ is rejuvenation. This is all around ensuring that the association provides an environment for our member companies to help them be successful. Many of these companies are new. We have all different types of members from very small startup companies to very large, 50-year-old companies. Each one of those companies adds value, respectively to the association, according to what they contribute to it. I think it’s critical that our association represents their needs and provides value to every type of company. It’s also crucial that we create an environment where new companies are teaching old companies how to operate more effectively.

A lot has been talked about both in our magazine as well as the DSA’s Annual Meeting about how we compete going forward. What are we as an industry doing well as an industry, and where do we need to improve?

Ryan NapierskiWhat we’re doing well is we are acting very responsibly as an association. I think the moves we’ve made over the last few years—the last year in particular— are really important for the long-term viability of our industry.

As an industry, we’ve also done really well in building a community of like-minded businesses to learn and share and develop together. It’s something that I would argue is very special to the Direct Selling Association of the willingness to share with peer companies.

I think the things that we need to improve on, especially in light of what I talked about with the repositioning activities, is how do we see ourselves in the future? If we continue to see ourselves as analog lens direct sellers, then we will miss a significant opportunity that’s ahead of us with the gig economy. The broad movement to independent workforces, and the desires of millennials, and even Gen Z, who aspire to own their own business are so much greater than Gen X or the baby boomers. If we position ourselves correctly to win in those environments, I think we will do better.

At times, we continue to look at ourselves through what I would define as an analog lens rather than a digital lens—where many of our companies are not digital native companies. So it’s a much more transformational repositioning that we need to go through as an industry and as an association to capitalize on those trends.

It’s great to see that the U.S. direct selling market had 1.3 percent growth in retail sales for 2018, stopping the two-year slide. From your vantage point at Nu Skin, what did your company learn from your slight downturn in 2013-15 that allowed you to have three years of sustained growth?

We have learned a few key lessons over the course of the last two decades or so about our business. However, I think the last decade has probably been the most significant period of change for Nu Skin, at least in our 35-year history. What we have learned is that the business environment in which we operate today is dramatically different from the business environment that existed for the prior 30 years. That’s largely a result of how our distributors do the business.

The impact of social and the medium itself has significantly changed the behaviors that our sales force utilizes to build their business. You can go all the way back to the hotel meeting model, the three-way calling model, or even the party plan models of the past. Those models today are all facilitated in a totally different manner because of technology. I would argue that perhaps the greatest, most significant lesson we’ve learned over the course of the last decade is that technology, if utilized and positioned within the company correctly, can be a significant, transformational agent for the business.Ryan Napierski

The second thing we’ve learned is that focusing our sales force really matters. This probably doesn’t come as any surprise—but as companies, we tend to feel that the more we do for them then the better off we will be. We still struggle with determining how much is too much versus how little is too little. I think what we’re trying to find is that sweet spot where pushing innovations to market by our sales force are at the appropriate cadence to get them aligned and moving forward directionally in a consistent manner that the company can support.

What are you laser-focused on right now as a company leading into the end of 2019, and into 2020?

We are laser-focused on our transformation as a company. Sometimes people think transformation is a one and done or something you do every 10 years. I’m laser-focused on helping our organization to recognize that transformation is a perpetual process that we must constantly be in both individually, as well as collectively as a company.

While we had an amazing year last year, with nearly 18 percent growth year over year, we recognize that to sustain growth requires perpetual transformation. That’s what I’m focusing on right now with my team.

We have the right culture and principles in place. We just rolled out a new culture construct that we call the Nu Skin Way that goes through our leadership principles around being customer obsessed and accountable, empowered, and being decisive. These are all principles that we’re now trying to ensure that we live on a day-to-day basis across the company. As we all know, the Peter Drucker quote that Culture eats strategy for breakfast is very true. So our focus is to get culture right and to continuously transform as an enterprise to win in the future.

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U.S. DSA Announces 2019 Officers, Directors https://www.directsellingnews.com/2019/06/24/u-s-dsa-announces-2019-officers-directors/?utm_source=rss&utm_medium=rss&utm_campaign=u-s-dsa-announces-2019-officers-directors https://www.directsellingnews.com/2019/06/24/u-s-dsa-announces-2019-officers-directors/#respond Mon, 24 Jun 2019 14:53:27 +0000 https://dsnnewprd.wpengine.com/u-s-dsa-announces-2019-officers-directors/ The U.S. Direct Selling Association (DSA) recently announced elected officers and directors to the association’s Board of Directors.   Officers and directors of the association are recognized leaders who have earned the respect of their colleagues and the public and are committed to lead and direct the affairs of the association. The board officers will each serve one-year […]

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The U.S. Direct Selling Association (DSA) recently announced elected officers and directors to the association’s Board of Directors.

 

Officers and directors of the association are recognized leaders who have earned the respect of their colleagues and the public and are committed to lead and direct the affairs of the association. The board officers will each serve one-year terms in their elected positions, and directors will each serve three-year terms.

 

“DSA is so fortunate to work with a talented and dedicated slate of directors and officers,” said Joseph N. Mariano, DSA president. “We are forever grateful for the time and effort the Board spends helping to shape the future of direct selling for our members.”

 

Board Members

·       Chairman: Ryan Napierski, President, Nu Skin Enterprises

·       Vice Chairman: Dr. Traci Lynn Burton, Founder & Chief Executive Officer, Traci Lynn Inc.

·       Vice Chairman: Connie Tang, President & Chief Executive Officer, Princess House, Inc.

·       Treasurer: David Merriman, Executive Vice President, ACN, Inc.

·       Immediate Past Chairman: John Parker, Chief Sales Officer, Amway

·       Past Chairman: David Holl, President & Chief Executive Officer, Mary Kay Inc.

 

Directors (for terms expiring in 2022)

·       Dan Chard, Chief Executive Officer, Medifast – OPTAVIA

·       Heather Chastain, President US and Canada, Shaklee Corporation

·       Erik Johnson, Chairman & Chief Executive Officer, Hy Cite Enterprises, LLC

·       Pamela Jones Harbour, Senior Vice President and Legal Officer, Global Member Compliance and Privacy, Herbalife Nutrition

·       Dan Moore, Southwestern Advantage

·       Brett “Ben” Rogers, Executive Vice President and General Counsel, Primerica, Inc.

·       Joni Rogers-Kante, Founder and Chief Executive Officer, SeneGence International

·       Mark Stastny, Chief Marketing Officer, Scentsy, Inc.

 

Continuing Directors

·       Ursula Dudley Oglesby, Dudley Beauty Corp. LLC (2020)

·       Aaron Eddington, Melaleuca, Inc. (2020)

·       Steve Fisher, Stream Gas & Electric, Ltd. DBA Stream (2021)

·       Kevin Guest, USANA Health Sciences, Inc. (2021)

·       Darren Jensen, LifeVantage Corporation (2021)

·       Danny Lee, 4Life Research (2020)

·       Aidan O’Hare, Forever Living Products (2020)

·       Paul Vidovich, Rexair LLC (2021)

·       Steve Wallach, Youngevity International, Inc. (2021)

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A Lifetime Of Change In One Decade https://www.directsellingnews.com/2019/06/01/a-lifetime-of-change-n-one-decade-dsn-global-100/?utm_source=rss&utm_medium=rss&utm_campaign=a-lifetime-of-change-n-one-decade-dsn-global-100 https://www.directsellingnews.com/2019/06/01/a-lifetime-of-change-n-one-decade-dsn-global-100/#respond Sat, 01 Jun 2019 05:10:20 +0000 https://dsnnewprd.wpengine.com/a-lifetime-of-change-n-one-decade-dsn-global-100/ Changes in the global environment for direct selling companies are happening rapidly on all fronts. Shifting consumer expectations, tighter regulations, increasing digital demands and new competitors are forcing us to examine ourselves inside and out—question who we are, what we’re about and how we want to move forward. We can shrink from these challenges, or […]

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Changes in the global environment for direct selling companies are happening rapidly on all fronts. Shifting consumer expectations, tighter regulations, increasing digital demands and new competitors are forcing us to examine ourselves inside and out—question who we are, what we’re about and how we want to move forward.

We can shrink from these challenges, or we can evolve. We can be resilient, innovative and bold. This will require new thinking and tough decisions, but it will position us to be even stronger. As the 2019 Global 100 list celebrates its tenth birthday, Direct Selling News examines how the industry has changed and what the landscape looks like as we head into the third decade of the 21st century as independent distributors.

First, the numbers

Collectively, the companies in the DSN Global 100 achieved $75.6 billion for 2018. Aggregate sales for the top 10 global companies on DSN’s Global 100 list were $40.8 billion in 2018. Twenty of the Global 100 grew by $100 million or more in the past year—including list toppers Infinitus, Natura, Herbalife Nutrition, Coway and Nu Skin. Newcomers O’Boticario and Atomy debuted at $1.22 billion and $1.5 billion, respectively. There are 23 mid-market companies—those between $300 million and $1 billion on this year’s ranking. Five companies are above $700 million, and another five above the half-billion-dollar mark.


“There are 23 mid-market companies—those between $300 million and $1 billion on this year’s ranking. Five companies are above $700 million, and another five above the half-billion-dollar mark.”

Eighteen companies are making their first appearance on the Global 100 list, including companies from Brazil, Korea, Taiwan, Germany, Malaysia, Japan and Sweden. The biggest gaps on the 2019 list, though, come from the absence of 25 of the 26 China-based companies that made the list last year and some U.S.-based companies—such as Mary Kay, Isagenix, AdvoCare and Juice Plus—that chose not to report their financials.

In response to some unsubstantiated product claims, the Chinese government in January launched a 100-day review of all health and wellness direct selling companies operating in China, the industry’s second-largest market. Because of the increased scrutiny, most Chinese companies were unwilling to disclose their financial information to the magazine. This left room for 18 newcomers to the list and seven companies returning to the list after an absence.


“Direct selling companies are spending millions to improve their online shopping portals, partly in response to the Amazon effect and partly because of regulatory pressure to distinguish more clearly between customers and distributors.”

The economic and regulatory conditions in a global marketplace always fluctuate, and sometimes companies will decide to keep a lower profile, which is why it’s noteworthy that this year’s list includes 13 private companies that have reported their numbers to the Global 100 every year since it began in 2009. Public companies don’t have a choice about whether to share financials, but closely held companies do, and their transparency allows the Global 100 to present as clear a picture of the industry as possible.

Times, they are a changin’

The direct selling business and consumer habits have changed significantly over the last decade.

From a broad, cultural perspective, people now consider their involvement in a direct selling company in much the same way they consider any job. “The direct selling space is evolving from the days when it was sort of a niche way to do business,” says securities analyst Doug Lane. “Given advancements in technology and social selling, direct selling  is becoming more mainstream.”

But nothing has changed in our industry more than the prevalence of technology. In the last 10 years ecommerce and social media—mainly Amazon and Facebook—have transformed the way people learn about and purchase products.

In 2009, there were 360 million active Facebook users worldwide. Now there are 2.38 billion—and a huge number of them turn to social media for brand guidance. And Forbes reports that 70 percent of Americans with annual incomes of $150,000 or more have Amazon Prime memberships, which give people unlimited free shipping (now in one day) of more than 100 million items.

Overall e-commerce sales in the United States reached $517 billion last year, 14 percent of all U.S. retail sales, according to analysis of U.S. Commerce Department data. Amazon sales alone were $141 billion of that total—accounting for nearly one-third of ecommerce revenue.

Direct selling companies are spending millions to improve their online shopping portals, partly in response to the Amazon effect and partly because of regulatory pressure to distinguish more clearly between customers and distributors. Direct sellers have to offer customers a way to buy product without signing up to become a distributor, and creating direct online ordering systems is the easiest way to do that. Such changes come more quickly for smaller, newer companies, Lane says. But the larger the business, the more legacy systems and mindsets there are to move. “That makes it a big challenge,” he says. “But that’s what leadership has to do.”

Some direct selling companies are meeting this challenge head-on, responding with complete digital transformations of customer and distributor experiences, says Bob Bass, Lead Strategic Insights Analyst for Amway, which tops the Global 100 list for the seventh consecutive year, with $8.8 billion in revenue. “Changes I’m seeing are monumental, from the way companies support distributors to the emerging use of augmented reality.”

Augmented reality is fueling a trend called “experiential retail,” which is, ironically, drawing customers back to brick-and-mortar stores. For example, Pottery Barn allows in-store customers to place virtual furniture in digital versions of their homes. Nordstrom shoppers can select clothing via a mobile app and the store will have the items waiting for them in a dressing room when they arrive. French beauty products retailer L’Occitane lets customers take a cyber hot air balloon ride through the French countryside while they get a hand massage with real hand cream.


“Customers and distributors want to be reached in ways that are most meaningful to them. Everything from attracting, developing and retaining more young leaders to honing in on what is marketed to different segments, so that your approaches are much more personal and relevant.” – Bob Bass, Lead Strategic Insights Analyst for Amway

If some of these experiences feel familiar, they should—they’re a next-gen version of what network marketing has been doing through the party plan model for decades: letting people try and build a connection with a brand before they buy. This trend reinforces the core of our model while showing us how to enhance that model at the same time.

Beauty and wellness products are prime for augmented reality, says a recent market study—so as the direct selling channel’s largest category, these products give the industry an opportunity to use the tool on a broad scale. Amway’s already on board. Last spring, it partnered with a Silicon Valley company to implement the YouCam Makeup app, which makes personalized skin care commendations and lets customers put virtual Artistry brand makeup on their selfies.

With YouCam, Amway seems to be proving that even massive companies can be technologically agile, if they’re committed. Amway Chief Sales Officer John Parker says it’s all about a forward-thinking mindset. “We encourage our employees to stay hungry and focused on what is still possible rather than what we have already achieved,” he says. “As an industry we embrace what’s great about our channel—the combination of digital and social relationships with the delivery of live interactions and experiences distributors and customers will never forget.”

Getting personal

As consumers become more sophisticated about how and where they buy, they’ve also become more particular about how they want companies to market to them. “Customers and distributors want to be reached in ways that are most meaningful to them,” Bass says. “This means everything from attracting, developing and retaining more young leaders to honing in on what is marketed to different segments, so that your approaches are much more personal and relevant.”

Noah Westerlund, Senior Vice President of Business Development for SUCCESS Partners, says this personal approach starts with making sure the audience you want and the audience you have are the same. “Be realistic about what your company provides, and do some audience research to find out if it’s what your intended targets really want,” he says. “Maybe you have a product that has always appealed to Baby Boomers but you keep pushing your teams to recruit and sell to Millennials.” If you’re losing or can’t gain momentum, a misalignment between your message and target customers may be partly why.

Parker says Amway’s strategy for keeping its momentum for so many years is to keep its ear close to the field. “We continually focus on listening to our Amway Business Owners, who are out there every day working with customers and new people in the business,” he says. “Like them, we know the importance of hard work, trying new approaches, studying others’ successes and failures and planning our next move, even when business is at its strongest.”

New frontiers

One ingredient and one concept that have burst into the marketplace in the last few years are putting our industry in an interesting juxtaposition: One is opening doors to astronomical sales, while the other is reminding us not to take our position for granted.

Let’s talk about hemp first. Products with cannabidiol (CBD)—a non-THC product derived from the cannabis plant—are becoming wildly popular for direct selling. DSN estimates that direct selling’s CBD revenue reached $300 million in 2018, will hit $600 million this year and will generate $1 billion next year.

At least 40 companies on this year’s Global 100 list sell products with CBD, and they’re seeing huge numbers. Four of them alone—including Las Vegas-base My Daily Choice/Hempworx and San Diego-based Kannaway accounted for $400 million of overall CBD sales last year. Sales at My Daily Choice/Hempworx increased from $10 million in 2017 to $100 million in 2018, a 900 percent growth rate.

While CBD has become the hot new category inside the industry, income opportunities with ride-share providers, on-demand errand services and private home rental companies are changing the game outside our industry, which used to have a lock on the “gig” idea.

According to a recent McKinsey Global report, more than 160 million people in Europe and the United States are earning money using cars, houses and time they already own. This is more than three times the 18.6 million U.S. direct sellers—4.1 million of whom are discount buyers or have no plans to sell the products and nine million of whom have gone inactive.

The lure of gigs is strong because they usually require little capital or training. You don’t need sales skills to be an Uber driver. You wake up, turn on your phone and customers fall out of the sky.


“If you’re losing or can’t gain momentum, a misalignment between your message and target customers may be partly why.” – Noah Westerlund, Senior Vice President of Business Development for SUCCESS Partners

Direct selling experts say that the industry can be competitive by appealing to people’s desire to work for more than just a paycheck. People want to be part of something with a greater purpose—they also will gravitate toward opportunities that provide support and ongoing training so that they can improve personally and professionally.

But we can’t keep doing everything the way we’ve always done it. For example, gig work pays on the spot and that’s a huge deal to its workforce. Direct sellers have to find ways of paying more quickly.

NuSkin, number seven on this year’s list with $2.68 billion in sales, introduced a new compensation strategy in late 2017 to allow for quicker payouts. Through NuSkin’s “Velocity” pay plan distributors can earn retail sharing bonuses daily when someone buys a product via their mobile app. “We found there was a fairly large group of people building a Nu Skin business because they needed income today, not six weeks, or even a week from now,” NuSkin President Ryan Napierski said at the 2019 Companies in Focus.

And about those customers “falling out of the sky?” Direct selling also needs to refine its process of distributing leads to field teams, Westerlund says. “That’s how we become an end-to-end solution that’s competitive with gig economy opportunities.”

Being better

How do we maintain traction where we have it and regain it where we might have slipped?

We always need to recognize and build on what makes us unique—our high-quality research-based products, the opportunity we give people to change their lives in small and big ways and our deep commitment to the communities in which we do business.

It’s also critical for companies to acknowledge and correct for their blind spots and missteps, and that means doing a better job on compliance, income claims and product claims. Bass agrees. Transparency is everything in this industry, he says.

In January, the U.S. Direct Selling Association launched the Direct Selling Self-Regulatory Council to hold the industry even more accountable to ethical business practices. Administered by the Council of Better Business Bureaus, the SRC will monitor the marketplace for questionable activity, investigate consumer complaints and report potentially noncompliant companies to the appropriate government agencies.

“We know that direct selling has sometimes suffered from perceived problems, occasional bad actors and others who pretend to be legitimate,” said DSA President and CEO Joseph Mariano. “We have decided to address these issues directly, by holding companies to the highest standards with an effective third-party regimen.”

Says Bass, “It’s in our collective interest to call each other out and hold each other accountable for deceptive and dishonest speech.”

In addition to staying mindful of industry-specific changes, it’s important to note that the economy is likely nearing the end of a decades-long expansion cycle. It’s too soon to know how much of a slowdown we’ll experience, but slowdowns are inevitable. And maybe a more moderate pace is exactly what everyone needs to catch their breath and make plans for the next race.


$100 million+ non-reporting companies

In addition to the Chinese companies not reporting this year, several $100 million plus companies previously represented on our Global 100 list chose not to report their 2018 data.

·       ACN ·       It Works! ·       Melaleuca ·       Premier Designs
·       AdvoCare ·       Juice Plus ·       Neora (Nerium) ·       SeneGence
·       Beachbody ·       Kyani ·       New Avon ·       Skaklee
·       Cabi ·       LegalShield ·       Norwex ·       Stella & Dot
·       doTERRA ·       Le-Vel ·       Omnilife ·       Sunrider
·       Forever Living ·       LuLaRoe ·       Pampered Chef ·       Thirty-One Gifts
·       Isagenix ·       Mary Kay ·       Paparazzi

 

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Direct Selling Industry Leaders Gather in San Diego for DSA Annual Meeting https://www.directsellingnews.com/2018/06/18/direct-selling-industry-leaders-gather-in-san-diego-for-dsa-annual-meeting/?utm_source=rss&utm_medium=rss&utm_campaign=direct-selling-industry-leaders-gather-in-san-diego-for-dsa-annual-meeting https://www.directsellingnews.com/2018/06/18/direct-selling-industry-leaders-gather-in-san-diego-for-dsa-annual-meeting/#respond Mon, 18 Jun 2018 20:41:20 +0000 https://dsnnewprd.wpengine.com/direct-selling-industry-leaders-gather-in-san-diego-for-dsa-annual-meeting/ The Direct Selling Association (DSA) Annual Meeting’s general sessions kicked off today with a focus on sharing best practices for the direct selling industry and exploring new ways to continue developing “America’s Original Entrepreneurs.” The event will run through tomorrow at the Marriott Marquis San Diego Marina in San Diego. “Direct selling is poised to be […]

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The Direct Selling Association (DSA) Annual Meeting’s general sessions kicked off today with a focus on sharing best practices for the direct selling industry and exploring new ways to continue developing “America’s Original Entrepreneurs.” The event will run through tomorrow at the Marriott Marquis San Diego Marina in San Diego.

“Direct selling is poised to be the next retail channel of choice for many consumers, and the DSA annual meeting provides direct selling leaders the opportunity to share information about industry best practices, important advocacy initiatives and the coming implementation of the Association’s business ethics program,” said Joseph N. Mariano, president and chief executive officer of the Direct Selling Association.

The meeting will also focus on consumer perceptions and awareness of direct selling as well as the future launch of the enhanced self-regulation for the direct selling industry.  In addition, DSA will unveil its annual market-sizing (Growth & Outlook) survey results, and DSA will present current trends on how Americans like to shop and earn and the implications for direct selling.

DSA Chairman of the Board and Amway Chief Sales Officer John Parker said, “The DSA has a long history of setting, maintaining, evolving and enforcing high standards for ethics and self-regulation. The marketplace has changed, and the time is now for the industry to innovate and develop a new model for ensuring we continue to raise the bar on the protection of consumers.”

New York Times best-selling author of Better and Faster and CEO of TrendHunter.com, Jeremy Gutsche, will provide insight on growth and innovation as the featured speaker on “Disruption and Creating an Adaptable Culture.” Direct selling industry leadership providing keynotes and/or leading panels, such as:

U.S. Congressional keynote speakers are Congressman Tony Cardenas (D-CA) and Congressman John Moolenaar (R-MI).

Special events at the Annual Meeting include the DSA Industry Awards Gala with the announcement of the DSA Hall of Fame, as well as he celebration of the Direct Selling Education Foundation (DSEF) Academic of the Year and Circle of Honor inductees.

The full meeting and conference schedule can be viewed here.

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