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.

The post Cheers to 20! first appeared on Direct Selling News.

Direct selling executives need insight and fresh ideas now more than ever before. In one of the most challenging years in direct selling history, leaders faced continued lockdowns in certain markets, changing consumer behaviors, a tense regulatory environment and lingering supply chain issues.

To provide practical solutions, Direct Selling University enlisted more than 25 of the industry’s leading executives to share unique perspectives and new approaches regarding some of the most complex issues facing the channel today.

We kicked off DSU with the CEO Forum, one of our highest rated events, and had 75 executives in the room representing $43 billion in revenue,” said Stuart Johnson, Chief Executive Officer of Direct Selling News, Direct Selling Partners and NOW Tech. “We talked about omnichannel strategies, fighting field fatigue (our industry’s version of quiet quitting), attracting the next generation, industry reputation and the rise of affiliate models in the marketplace.”

Johnson cast vision for attendees, calling them to move beyond customer-centric thinking to becoming customer-obsessed. Following his lead, speakers provided tangible ways to improve customer conversion rates, improve salesforce morale, upgrade training systems, drive revenue and create authentic connection with customers.

“DSU gives leaders the chance to open their minds to a bigger picture,” Johnson said. “This event exists to share knowledge, future trends and success stories that inspire, challenge beliefs and spark change. I’m confident that every executive left the event with at least one game-changing idea or initiative to take back to their teams.”

Addressing Amazon

Amazon. The eCommerce goliath has been the elephant in the room for years, and for the first time, Direct Selling University tackled the challenge head-on. Without shying away from the complexities of the issue, DSU offered multiple opportunities for participants to listen and learn from experts about how to alter their approach to what is arguably the industry’s biggest competitor.

Blake Mallen, Author, President of Prüvit, delivered the most talked about speech of the event, as well as a break-out workshop session that drew more than 150 attendees, discussing his proven Amazon strategy.

“A lot of customers buying on Amazon assume they are buying from the company directly, and when they receive a damaged or expired product, they’ll either blow up the support team with their complaints or—worse—blast Amazon with negative reviews,” Mallen said. “This stuff can cause serious potential long-term damage to our brands. When you share the message that anyone can start today with the same opportunity to change their life, but when there are different prices for different people, it can erode the very heart of what our channel stands for.”

Continuing the event’s conversation about how to become customer-obsessed, Mallen explained the importance of setting an intentional Amazon game plan, telling attendees that winning the Amazon game begins with controlling their brand’s footprint on Amazon.

“This is not the future—this is the present,” Mallen said. “Amazon is a key part of the customer journey today, which means this cannot be ignored. This is something we as a channel need to do not only for our companies—but for our communities—and make the shift our industry really needs.”

Rudy Revak, Founder and Chairman, Xyngular, reminded leaders of the importance of taking care of new distributors and helping the sales force stay persistent and positive.

Shelley Rojas, Chief Brand Officer, Direct Selling News, and Heather Chastain, Founder and Chief Executive Officer, Bridgehead Collective and Direct Selling News Strategic Advisor, announced a new social community platform for DSN Supporters, as well as a new entry-level of Support, the Advocate, that will enhance the user experience and open up becoming a part of Direct Selling News to many more companies.

Magnus Brännström, President & Chief Executive Officer, Oriflame, focused on the ways the pandemic impacted work trends and how Oriflame reorganized its brand experience structure to improve the product, customer, digital, social selling and employee culture experiences.

Lynne Coté, President and Chief Executive Officer, Princess House, and Laura Beitler, Chief Global Sales Officer, Rodan + Fields, in a conversation with Heather Chastain, discussed the importance of transparency in creating alignment between the home office and the field in the midst of change and challenges.

Dan Macuga, Chief Communications and Marketing Officer, USANA, illustrated the power of their “Start Something” campaign and offered a how-to for companies wanting to create similar initiatives that drive customer engagement, loyalty and connection.

Amber Snow, Director of Diversity, Equity & Inclusion, Amway, shared how executives can make DE&I more than just a buzzword in their companies by facing the fact that people of color make up only 14 percent of direct selling representatives and persuaded leaders to make a commitment to listen, learn and act.

Amanda Tress, Founder and Chief Executive Officer, FASTer Way to Fat Loss, shared the simplicity of her company’s one-tier micro-influencer marketing model, and why she believes it could be a powerful strategy for companies fearing FTC scrutiny and enhanced regulations.

Glenn Sanford, Founder, eXp Realty, Chief Executive Officer, eXp World Holdings and SUCCESS, in an interview with Stuart Johnson, discussed the strategy behind eXp Realty’s hypergrowth and why a focus on agent experience has built a collaborative culture that drives value.

Wayne Moorehead, Marketing and Branding Expert and Host of the Direct Approach Podcast, in an interview with Stuart Johnson, reflected on the hot topics and trends discussed during interviews with leaders from 30 different companies who represent $30 billion in revenue.

Russ Moorehead, Chief Marketing Officer, Nu Skin, exposed five myths direct selling companies often fall prey to, and why the latest shopping trends give direct-to-consumer companies a significant advantage.

Patrick Wright, Chief Executive Officer, AdvoCare, gave a behind-the-scenes look at the company’s 2019 FTC settlement and described how seeing limitations as opportunities has allowed AdvoCare to increase its customer conversion rate by 10x while better serving their affiliates.

Jesse McKinney, Co-Founder and Chief Executive Officer, Red Aspen, shared a sneak peek into the company’s 2023 strategy, including four pillars—sustainability, technology initiatives, Tik Tok-style training videos and a new Gen Z-focused product category—all inspired by her experience at DSU Spring 2022.

Nick Martinez, Top Distributor, Prüvit, encouraged industry leaders to embrace distributors who are building influence instead of recruiting and why consistently creating social media content can be the key to unlocking top earner potential.

Noah Westerlund, Executive Vice President, NOW Tech, in a conversation with Wayne Moorehead, discussed the importance of Quick Commerce and long-form landing pages to increase conversion rates.

Michele Gay, Co-Founder & Chairwoman, LimeLife by Alcone, described the toll the pandemic took on women especially, and how the Three Laws of Performance helped her sales field and staff overcome the fixed mindsets and patterns of excuses that two years of living in a socially distanced world had created.

Ben Riley, President, Young Living, reminded participants of the importance of disruption and how direct selling leaders can leverage small-scale innovation and strategic change management to outsmart gig economy competitors.

Brandy Huyser, Director of XS Energy and Next Gen Strategy, Amway/XS, reflected on 20 years of adventure as the XS Energy brand built momentum by upending business-as-usual at Amway, staying focused on the field, controlling the supply chain through local manufacturing and creation and designing a youth-driven culture.

Jason Dorsey, President, Center for Generational Kinetics, Speaker and Researcher, offered a sneak peek at the first-ever generational research study conducted in direct selling that he will be leading for Direct Selling News to uncover how to quickly connect with, build trust and drive influence across generations.

Gina Ghura, Chief Marketing Officer, MONAT, offered advice for building consumer love through relationship building, personalized customer experiences, distinctive product offerings and a compensation plan that rewards customer acquisition and retention.

Rajneesh Chopra, Chief Commercial Officer, Immunotec, shared how the company invested in technology and opened new markets and manufacturing facilities during the pandemic, resulting in tremendous growth that is moving them forward in the midst of a cooling economy.

Garrett McGrath, President, ANMP, talked about the power of tiny gains and how improving by one percent every day in the areas of customer retention, community building and compensation strategies can build unstoppable momentum.

Dana Roefer, Author, Entrepreneur and Direct Selling Strategist, highlighted takeaways from her book Shopping Social and shared how education is crucial for helping consumers understand how social shopping can connect them with products that support their best life.

Darnell Self, Executive Vice President of Network and Business Development, PPLSI, shared his insights as both a field leader and industry executive, shining a light on the undervalued priorities of effective communication and a healthy team culture.

Gordon Hester, General Manager Sales, North America, PM-International AG, explained how culture is the biggest differentiator in business, and why focusing on revenue drivers and profitability can prevent feelings of entitlement and division within the field.

Must-See (In-Person) Events

The energy of this DSU—the first in-person fall version ever held—was inspiring, and the feedback received was overwhelmingly positive—making this Direct Selling University one of the most successful to date.

Planning for the next DSU event in April of 2023 in Frisco, Texas is underway, and the momentum and excitement is already building.

From the December 2022 issue of Direct Selling News magazine.

The post DSU Fall 2022: Lessons for an Evolving channel first appeared on Direct Selling News.

Ridinger launched Market America in 1992, an online retailer that now employs more than 800 people around the world and has generated more than $7.3 billion in retail sales. Market America recently held an international event to celebrate their 39th anniversary. Ridinger was a visionary and a trailblazer for over three decades.  

More than his business acumen, Ridinger was a friend and mentor to many, including celebrities like former Chicago Bulls player Scottie Pippen who posted a memorial on Instagram that read: “We lost a good one with the passing of my friend @jrridinger. JR was so helpful and supportive when I began my life after basketball, giving me valuable advice and teaching me how to become an entrepreneur. He touched a lot of lives and will be greatly missed.” 

Many other celebrities have expressed support online as well, including Khloe Kardashian, who commented on the company’s post with broken heart emojis and “Devasted” and Victoria Beckham, who reposted an image of J.R. with wife Loren and a caption that read “We love you, Loren.”  

Ridinger is survived by his wife Loren, daughters Amber and Amanda, his brothers Marc and Steve, his sister Brandi, his son-in-law Duane and grandchildren Ayden, Ayva and Aydrien.

In a statement on Market America’s Twitter account, the company said: “Market America has lost its great visionary, and the world has lost a passionate human being who believed in other people even more than they believed in themselves.” 

J.R.’s wife Loren Ridinger expressed her grief on social media with a picture from their wedding and the caption: “I am shattered in every way possible. There is no love like our love. Please pray for me and my family. I love you @jrridinger for the rest of my life and beyond. It will only be you. 33 years of love together on this earth.” 

Long-time friends and celebrities replied to Loren with words of encouragement, including Hailey Bieber, Ashanti, Tracy Anderson and Jamie Foxx. Serena Williams wrote, “I am shattered as well for you and with you.” 

Direct Selling News Founder and CEO Stuart Johnson shared his thoughts, “I’ve known JR since I was 16 years old. He’s been a partner, mentor, inspiration and—most importantly—dear friend for over 40 years. This is a huge loss, not just for the channel but for all the people in it who looked to JR for guidance and wisdom. The DSN family mourns along with Loren and the rest of the Market America team.” 

Pointing to the future, Market America stated: “J.R. leaves behind a company that only he could have created, and his entrepreneurial spirit will forever be the foundation of Market America. J.R. always positioned and empowered his team to carry on into the future as he instilled belief in us and encouraged us to keep growing. The company is forever strong because of the belief and passion J.R. instilled in all of us. The foundation he built has prepared us to continue to carry his dream forward for generations to come.”

The post In Memoriam: J.R. Ridinger, Founder of Market America   first appeared on Direct Selling News.

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.

“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

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.

“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.

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.

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.

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.

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.

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.

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.

Building Bigger Brands

The direct selling model is becoming more deeply ingrained within larger retail brands, especially in the beauty and cosmetics segments. This trend goes beyond online direct-to-consumer sales done by a retail company. It involves either the development of a supplemental direct/social selling brand within the parent company or the acquisition of a direct/social selling brand into a larger conglomerate. 

The benefits are clear and go both ways. Direct selling has robust IT and social selling platforms that the parent company can leverage as well as presence in new markets. And the established retail brand lends credibility and exposure to the direct selling enterprise. 

Although this trend isn’t new, it is growing and shaping the scope and focus of the industry. Traditional retail brands are acquiring or merging with direct selling standouts to create even bigger international beauty brands. And these brands dominate across all categories: Direct to consumer, retail, e-commerce and social selling. 

There are several very well-known companies and celebrities launching social selling initiatives this year, each with the potential to change and shape the future of this channel. One recently announced example is Kendra Scott, a multichannel retail jewelry and accessories brand starting a direct/social selling division. This 20-year old brand was founded in 2002 and boasts $360 Million in annual sales. Its entry into the social selling space, Direct Retail by Kendra Scott, shows tremendous potential. 

Natura, the number two direct selling company in the world, is a prime example of a brand already excelling across all channels. They acquired Avon Products in January 2020 for $3.7 Billion, creating the world’s fourth largest beauty company. The Avon Products acquisition did not include “The Avon Company,” which is owned by South Korean-based LG Household & Healthcare since 2019 and operates in North America. 

Natura is also the parent company of The Body Shop, which operates around 2,800 retail locations in over 70 countries providing sustainably produced skincare, body care, hair care and makeup. The Body Shop at Home is their social-selling channel, where consultant satisfaction is an astounding 92 percent and the business has flourished over the last two years including a very successful reintroduction of the model to the U.S. market. Natura also owns Aésop, a luxury skincare brand based in Australia. The brands’ messages are all cause-based and the combination with Avon created a $7 Billion company in 2021.

Another great company showing how channel diversification can strengthen a brand is Beautycounter. 2021 was a landmark year for the clean beauty brand, now valued at $1 Billion after its acquisition by Carlyle. The company has leveraged a wildly successful omnichannel model. Their products can be purchased in a variety of ways: Through one of 65,000 consultants; directly on their website via shoppable live-streams; and traditional retail options through seasonal pop-ups in Sephora and brick-and-mortar locations in markets like Los Angeles, Denver and New York. 

Groupe Rocher, a French-based international cosmetic and beauty brand, greatly expanded its portfolio into direct selling when it acquired Arbonne in 2018. The family-owned company owns and operates retail locations throughout France but had little direct selling presence prior to acquiring Arbonne. 

The brands share similar values and botanically-based products. Group Rocher understands the value of the direct selling model, and the addition of Arbonne allowed them to become a $3 Billion company. 

L’OCCITANE en Provence is another huge beauty brand making an impression in the direct selling/social selling space. They acquired direct-selling standout LimeLife by Alcone in 2017. What started out as an informal referral system at LimeLife by Alcone evolved into a full-fledged business opportunity. The brand has been providing professional makeup artists with their products since 1952 and found social selling to be a natural way to extend the brand with these influential professionals. In fact, the brand joined the DSN Global 100 list in 2020.

The emphasis on social selling continued in 2020 with L’OCCITANE’S U.K. launch of DUOLAB, a social selling-based skincare startup engineered to strengthen its ecommerce sales and expand its digital brand.  

In June of 2021, L’OCCITANE en Provence announced plans for the company to expand its omnichannel beauty and lifestyle presence through the direct selling model once again. The expansion was part of the company’s North American business transformation and is designed to help the company develop a more personal relationship with its customers. The result is MyL’OCCITANE, a brand-new social selling platform. 

Across All Categories

The trend goes beyond beauty brands and is reflected in other direct selling categories as well. LegalShield has grown considerably the last few years. Serving 4.5 million individuals and 140,000 businesses, LegalShield is the world’s largest platform for legal, identity and reputation management services across North America.

They have three channels including a digital direct-to-consumer option; business-to-business group or corporate sales as well as a vibrant direct selling model. Legal Shield is celebrating its golden 50^th anniversary this year. Congratulations to Jeff Bell and the entire Legal Shield team! 

In December 2021, health supplement standout Prüvit merged its Exogenous ketones business with direct-to-consumer ready-to-eat healthy meal and snack delivery company Sunbasket to supplement and complement the brand’s healthy lifestyle offering. It’s the kind of brand extension that not only makes sense for the company but also adds tremendous value for the customers and distributors who can now easily order and enjoy the keto-friendly meals and snacks that enhance the Prüvit lifestyle.

Additionally, Total Life Changes just introduced a Product Influencer Program that’s very reminiscent of affiliate marketing. It allows customers that enjoy and believe in the products but don’t want to become distributors in the traditional sense to use their influence to encourage others to buy the products via social media, earning $20 for every product purchase. Best of all, Product Influencers get paid the next day after a qualifying sale. 

Other direct sellers are introducing similar programs and encouraging existing distributors to use this exciting social selling system as well. This affordable impulse purchase via a social media selling system has really developed over the last five years. Other amazing success stories include Younique’s lash product; Nu Skin’s toothpaste; Colorstreet’s nail products; Paparazzi jewelry; and Senegence Lipsense. These social media “selling systems” and others like them have successfully acquired tens of millions of customers in direct/social selling.

I hope you and your teams continue to benefit from the research, journalism, advocacy and education Direct Selling News brings to you via our publication, events, website, podcasts and more. 

Stuart Johnson has served the direct selling industry for 36 years and is the sole Founder and CEO of Direct Selling News. His passion for the channel encompasses a broader commitment to build and connect the direct selling community through exclusive industry events such as Direct Selling University and the DSN Global Celebration.  

Stuart is arguably the most connected person in direct selling, building and growing a network of executives, thought leaders, strategists and innovators. His advice and counsel are sought after by leaders throughout the channel. 

The post Omnichannel Direct-to-Consumer Updates first appeared on Direct Selling News.

Success Stories

Let’s begin with results from our 2021 growth survey. We sought information from a data set of 100 companies, each with at least $50 Million in domestic revenue. With this version of the survey, we had data points from 80 companies to build our analysis.   

We all remember the staggering growth in 2020 and determining how much was a COVID bump and how much was a sustainable change in the growth pattern for many companies. Analyzing the data from 80 companies—the data speaks for itself:  

• 36 companies (45%) grew revenue in 2021 over 2020
• 8 companies (10%) were flat
• 36 companies (45%) declined from 2020 to 2021

As we all know, 2020 was a bit of an anomaly with record-shattering growth stemming from the pandemic. And although growth in 2021 did not keep pace with 2020’s record-breaking year, the channel did grow domestically. While we await the final numbers, I can share that DSA is forecasting 4-7 percent growth domestically. That makes 2021 another record year for direct selling in the U.S.

There are some amazing growth stories within the channel that I am excited to share:

• eXp Realty’s revenue DOUBLED to more than $3.7 Billion for 2021
• PM-International grew over $600 Million to $2.35 Billion revenue for 2021
• OPTAVIA also grew over $600 Million in 2021, reaching over $1.5 Billion and becoming a new member of the Billion Dollar Club
• Scentsy joined the Billion Dollar Club, growing more than $100 Million in 2021, after growing $400 Million in 2020
• Betterware de Mexico has grown from $150 Million in 2019 to more than $500 Million in 2021
• Herbalife grew more than $300 Million in 2021

Additionally, younger companies including Red Aspen, Body Shop at Home and QuiAri have enjoyed tremendous growth in 2021 and look to continue their momentum in 2022. 

The easiest way to summarize 2021’s growth trend is that it was a tale of two stories. The first half of the year enjoyed growth, fueled in part by the ongoing pandemic environment and stimulus payments. That growth slowed dramatically in the second half of the year, primarily in companies that failed to capitalize on the COVID-related growth and mistook it for foundational growth. It was also affected by people vacationing much more and stimulus payments going away. December was particularly troublesome for some companies due to the holiday season and the unexpected massive surge in Omicron COVID cases.

Overall the expectations for 2022 are mixed. I am optimistic, but that optimism is also tempered with nervousness and uncertainly as the world still grapples with the volatile post-pandemic and probably future endemic climate. There are good signs already in: Omicron case numbers have dropped more than 50 percent in the last few weeks. 

Our biggest challenge as a channel remains pivoting from post-pandemic growth due to captive audiences to more sustainable, long-term growth strategies. 

Our biggest opportunity is in recognizing the need for low-barrier, part-time income is greater than ever before, and we need to double down on that messaging with selling systems for micro-entrepreneurs.

Digital Momentum Index

On the digital front, overall web traffic for 2021 declined as most direct selling companies saw distributor and recruiting interest stabilize after the impact of 2020’s global shutdown. But on social media, the industry made great gains. 

Fan/Follower growth was up 66% on Facebook and an incredible 86% on Instagram. 

I’d like to recognize and congratulate the top 10 domestic companies for 2021 from our Digital Momentum Index, which ranks the top direct selling companies by social media and online presence.

This is annual ranking is a compilation of all four quarters. You can review the full list and see both the domestic and international rankings and analysis here.

I hope you and your teams continue to benefit from the research, journalism, advocacy and education Direct Selling News brings to you via our website, podcasts and more. I’ll be sharing additional insights, trends and data in subsequent articles in the weeks to come—stay tuned!

A Complicated but Compelling Future

I have been a part of this channel for 36 years, and I remain optimistic and encouraged about the future. Yes, we are living in turbulent, unpredictable times, but massive opportunity exists—even in chaos. I know that our channel is well positioned to navigate through uncertainty and come out on the other side stronger than ever. 

My goal has always been to help the direct selling channel reach its highest potential. I am honored and extremely grateful to have the opportunity to serve each of you.

Stuart Johnson has served the direct selling industry for 36 years and is the sole Founder and CEO of Direct Selling News. His passion for the channel encompasses a broader commitment to build and connect the direct selling community through exclusive industry events such as Direct Selling University and the DSN Global Celebration. Stuart is arguably the most connected person in direct selling, building and growing a network of executives, thought leaders, strategists and innovators. His advice and counsel are sought after by leaders throughout the channel.

The post 2021: A Look Back and a Look Ahead first appeared on Direct Selling News.

The one thing that has been predictable about 2021 is that it has proven itself to be just as unpredictable as 2020. Direct Selling University (DSU), one of the most anticipated industry events of the year, was originally scheduled to be an in-person gathering, where leaders from around the world could network, build relationships face-to-face and connect over their shared challenges and wins during this unusual pandemic season. But growing concerns around the Delta Variant and COVID-19, as well as the changing travel and meeting restrictions, led to the difficult decision to transform the event—once again—into a vibrant virtual experience that would protect the health and safety of attendees, presenters, sponsors and employees while providing groundbreaking insight from some of the industry’s most experienced and talented executives.

This year’s unpredictability, with its supply chain and logistical hurdles, a market that continues to shift at lightning speed, increased regulatory pressure and a hovering sense of disconnection between the field and corporate teams, meant that this year’s second Direct Selling University was even more crucial than ever before. The audience was eager for tangible action plans, straightforward strategies and new approaches—and the 30 speakers assembled for this year’s event delivered.

“Change continues to come at us fast and furious as market conditions, technology, consumer behavior and expectations continue to evolve,” said Stuart Johnson, Founder and Chief Executive Officer of Direct Selling News, NOW Technologies and Direct Selling Capital Advisors.

Amid these challenges, however, the channel experienced positive momentum, put in motion by 2020’s explosive growth. Last year, revenue within the industry reached $40 billion domestically and $180 billion globally, and there are many companies positioned to capitalize on this energy, like OPTAVIA, whose annual revenue is set to exceed $1.5 billion.

“Direct selling remains perfectly positioned to maintain and increase our growth and improve our reputations—just by continuing to do what we do best!” Johnson said.

Sharing Wisdom and Experience

Executives from more than 50 companies attended Direct Selling University for the first time, signaling a growing passion and need for shared wisdom and insight across the industry. From innovative strategies for cultivating an empowered and connected field to teaching data-backed masterclasses on the importance of diversity, inclusion and racial equity, presenters offered powerful, timeless messages that are particularly relevant and important in today’s landscape.

“At DSN, we strive to edify the channel and inform the executives that lead it,” said Shelley Rojas, Direct Selling News Publisher and Chief Brand Officer. “Direct Selling University is a big part of that goal.”

The Power of Proximity:

Kami Pentecost, Chief Networking Officer, It Works!, discussed the consequences of disconnection and offered tangible ways leaders could invest in their teams to increase performance, morale and longevity, even as in-person gatherings remain out of reach.

Living with a Longevity Mindset:

Nancy Bogart, Owner and Founder, Jordan Essentials, shared her company’s 21-year history of adjusting, adapting and overcoming the odds in order to protect the long-term vision.

Building a Legacy Brand:

Melissa Thompson, CEO and Founder, BELLAME, reflected on the company’s earliest days, and how their commitment to strategic SEO, customer research and developing their own tech platform provided momentum that has carried them through the pandemic.

The Bokeh Effect:

Mark Stastny, Chief Marketing Officer, Scentsy, encouraged leaders to sharpen their focus on what truly matters and to allow distractions to blur and fade into the background.

The Stories We Tell:

Kindra Hall, Author, Speaker and Chief Storytelling Officer, SUCCESS, illustrated how executive leaders can motivate their field from the inside out with four specific stories distributors can learn to tell themselves.

Permission to Play: Strategies to Accelerate Growth in a Digital World:

Jacob McLain, Senior Vice President and Chief Strategy Officer, MONAT Global, offered strategies that take advantage of the macrotrends presenting opportunities for the channel, and how companies can leverage and adapt to the new digital-first economy.

Connecting with Hispanic and Latino Markets:

Judith Sánchez, General Manager, JAFRA USA, explained how understanding the cultural nuances of the Hispanic and Latino markets is crucial to revenue growth and mastering the inclusive language, behavior and tone that attracts these growing populations.

Building a Social Media Brand:

Jessie Lee Ward, Coach & Rank 10 Prüvit Leader, taught corporate leaders how to leverage viral content, artificial intelligence and social media trends to ignite explosive sales growth.

Prioritize Meaningful Over Measurable:

Shama Hyder, Chief Executive Officer, Zen Media, explained why ROI is a terrible metric, and how owning the conversation and embracing dark social is crucial for success in a digital ecosystem.

Direct Selling’s Highest Potential:

Stuart Johnson, Founder and Chief Executive Officer, Direct Selling News, NOW Technologies, Direct Selling Capital Advisors, cast vision for the future of the channel and offered unique opportunities that can enhance the lives of the industry’s 120 million micro-influencers and provide enormous value to customers.

The Sales and Marketing Trojan Horse:

Jim Caldwell, Chief Marketing Officer, LifeWave, illustrated how captivating storytelling can decrease skepticism, and why word-of-mouth marketing is a sure-fire way to create unstoppable momentum.

Using Change to Propel Growth:

Chris Cicchinelli, President and Chief Executive Officer, Pure Romance, explained how the company pivoted early in the pandemic and helped employees and distributors find success in the face of fear and uncertainty.

Purpose First:

Tyler Whitehead, Chief Executive Officer, Arbonne, challenged leaders to elevate their brands by balancing people and profits, offering value without requesting a monetary exchange, and to never lose sight of their purpose.

The Business Case for Diversity, Equity and Inclusion:

Simon T. Bailey, Speaker, Author, Life Coach and Entrepreneur, delivered a masterclass on why executives should implement racial equity initiatives and hiring practices—not just because it’s the right thing to do, but because it’s a crucial business strategy for developing longevity and profitability.

Groundbreaking News, In-depth Research:

Shelley Rojas, Publisher and Chief Brand Officer, Direct Selling News, shared DSN’s mission to serve, educate and edify the channel as the go-to resource for breaking global news, emerging trends and powerful stories, and announced exciting new offerings, like the text-based DSN VIP Community, the DSN Membership Program and the DSU On-Demand Library.

The Ups and Downs of Hyper Growth:

In a special excerpt from the Direct Approach with Wayne Moorehead podcast, Jesse McKinney, Co-Founder & CEO, Red Aspen, got candid about the realities of hyper growth, technology, social selling, product rationalization and more.

Shifting Focus to the Customer:

Laura Brandt, Chief Experience Officer, IDLife, shared how transforming the company’s compensation plan, communication and ecommerce solutions to become customer-centric, increased their customer acquisition by 28 percent.

The Entrepreneurial Mindset:

In highlights from the Direct Approach with Wayne Moorehead podcast, Glenn Sanford, Founder, eXp Realty and CEO eXp World Holdings, discussed the inherent benefits and opportunities of entrepreneurship and how the conventional wisdom surrounding risk vs. reward is counterintuitive.

Experience the Future:

Joe Cannon, President, Young Living, explained how the future of business is experiential, and why showcasing the scientists and farms behind their essential oils have validated the authenticity of their products.

Stick to Your Strategy:

Heather Chastain, Founder & CEO, Bridgehead Collective, commissioned leaders to commit to their strategic plans and rally their teams around them in order to develop a consistent stream of actions that will ultimately create success.

Adapting Incentives for the New Normal:

Rolf Sorg, Chief Executive Officer & Founder, PM-International AG, shared his company’s strategies for motivating people and developing a team mindset in the face of continued pandemic lockdowns and challenges.

Putting Technology to Work:

Wayne Moorehead, Marketing, Branding, Direct-to-Consumer Industry Expert & Podcast Host, took attendees on a deep dive into all things digital, sharing the ways technology is accelerating growth in the channel and how to leverage them.

The CEO Roundtable:

In highlights from the DSN podcast, four CEOs, Joni Rogers-Kante, SeneGence; Sarah Shadonix, Scout & Cellar; Amelia Warren, Epicure; and Michele Gay, LimeLife by Alcone, engaged in a lively discussion about the importance of providing aspiring entrepreneurs a viable opportunity through direct selling.

Finding New Success:

Al Bala, President & CEO of Mannatech, shared how Mannatech has implemented a disciplined focus on business basics over the last 18 months. The result? Mannatech has become a “new” success story after nearly 30 years in business.

The Social Strategy for NOW:

Ami Perry, VP of Business Development at NOW Technologies, spoke with Rallio’s Co-Founder and CEO Chuck Goestchel and VP of Business Development, Ryan Hicks to discuss the impact of social selling on businesses and how the new NOW Social platform helps systematize, streamline and enhance social media strategies.

The Power of the Pivot:

In a special excerpt from the Direct Approach with Wayne Moorehead podcast, Dan Macuga, Chief Marketing and Communications Officer, USANA, shared insights into the “do”s and “don’t”s in building relationships with brand ambassadors, influencers and athletes.

Doubling Down on Digital:

Chris Postler, COO at Pure Romance shared the company’s approach to technology and how it plays a vital role in all aspects of their business from communication strategies to analytics with Noah Westerlund, EVP at NOW Technologies.

Competing with Online Retailers:

In a special excerpt from the Direct Approach with Wayne Moorehead episode, Danny Lee, President & CEO, 4Life, shared 4Life’s retail pricing strategy and how it turned the Amazon challenge from being the elephant in the room into a positive piece of the business that benefits everyone. DSN

The audience was eager for tangible action plans, straightforward strategies and new approaches—and the 30 speakers assembled for this year’s event delivered.

From the November 2021 issue of Direct Selling News magazine.

The post DSU: Connect & Empower first appeared on Direct Selling News.

While the vast majority of direct selling companies are privately-held, family-run entities, the principals behind Direct Selling Acquisition Corp. (NYSE: DSAQ.U) or (“DSAC”) are looking to shake up that traditional model by providing a high-quality, high-performing direct selling company with the opportunity to access the public markets.

On September 28, 2021 DSAC closed its initial public offering (“IPO”) and now trades on the New York Stock Exchange under the symbol DSAQ.U. The base $200 million offering was more than three times oversubscribed and was increased to $230 million based on the underwriters’ full exercise of their 15% overallotment option. 

A SPAC, or Special Purpose Acquisition Company, essentially operates as a shell company, formed by a combination of investors and operators, to raise capital from investors through an IPO. The SPAC’s ability to do this is generally based on the reputation of the SPAC team or a particular investment thesis. Because SPACs are often less expensive and faster than traditional IPOs, they have become a popular method of raising capital and accessing the public markets. In fact, cnbc.com recently called SPACs one of Wall Street’s hottest trends.

SPACs have evolved into a highly efficient and effective vehicle for providing companies with access to the public equity markets. SPACs are no longer considered vehicles to acquire businesses. Instead they function similarly to a reverse merger where the pre-existing shareholders of the target company can remain the largest shareholders in the public company post-merger. In other words, pre-merger ownership often maintains control of their company, with the SPAC providing capital and expertise to support the company in its growth.

One of the unique aspects of a SPAC is that when it raises capital, the investors buying into the IPO do not know what the eventual target company will be—that’s why SPACs are sometimes referred to as “blank check companies.”

A Growing Trend for Investors

Recent companies outside of direct selling that have gone public through a SPAC include Virgin Galactic, SoFi Financial and Draft Kings. There’s also a recent and very successful example of a direct selling company going public through a SPAC, Betterware de Mexico.

Betterware is the leading direct selling company in Mexico with a network of over 65,000 distributors. It completed its SPAC merger in 2020. The capital from the merger allowed Betterware to invest in a broad range of growth initiatives.  As Luis Campos, Executive Chairman of Betterware explains, “We remain focused on our three strategic pillars of product innovation, technology and business intelligence.” Betterware also successfully expanded into Guatemala and plans to open in additional countries throughout Central and South America in the future.

From the time of its SPAC merger close in Q1 2020 to the end of the year, Betterware de Mexico shares were up 297 percent. This was the best performance of all the SPACs that completed a deal in 2020 for the period of merger close to the end of the year.

A SPAC Solely Focused on Direct Selling

Based on existing trends and these successful examples, DSAC is focused solely on facilitating the transition of a high-performing private direct selling company to the public market. DSAC is led by some of the biggest names in direct selling—a connected and reputable group of C-level executives with a combined 180 years of leadership experience.

DSAC plans to focus their search on domestically-based businesses within the direct selling channel. By leveraging their vast experience and unparalleled relationships, DSAC seeks to help founders/owners capitalize on significant growth opportunities within the direct selling channel.  

DSAC’s Chairman and Chief Executive Officer Dave Wentz calls this a watershed moment for direct selling. “The current growth in direct selling makes the timing for this launch ideal. There are several companies we feel could do tremendous things with the infusion of capital and shareholder value going public brings,” he says. “We are excited about the opportunity to help a strong, successful private company become a great public one.”

A Strategy Focused on Opportunity and Growth

Using the above criteria, DSAC has identified a number of privately held direct selling companies they believe can benefit from going public. DSAC believes its unmatched combination of industry experience and connections makes them a preferred partner for these potential target companies. Some of DSAC’s differentiators include:

Unparalleled experience
Due to the strong connections and relationships held by the management, board of directors and sponsor team of DSAC, as well as the group’s decades of relevant experience, they are well positioned to provide tremendous value and support to the extent it is desired or needed by a partner company. In addition, DSAC is familiar with the business and opportunities of many companies within their target universe. This wealth of knowledge will allow the team to move quickly and confidently through the evaluation process and provide advisory assistance as the company prepares to go public.

Underserved channel
Most direct selling companies are self-funded, thus diminishing the need for these companies to develop relationships with the financial community. As a result, liquidity and growth capital opportunities are underutilized more often than not. As Special Advisor Ryan Bright says, “We have long believed that direct selling companies are underserved by capital markets, which is a core pillar of DSAC’s thesis. We believe that our expertise, reputation and relationships will help bridge that gap. DSAC is the perfect vehicle to help a great company gain access to public capital and the additional growth opportunities that capital provides.”

Reputation and relationships
The leadership of DSAC is well known and highly respected throughout the channel. “Our team is likely the most connected group in the direct selling industry worldwide,” explains Stuart Johnson, DSAC Special Advisor. “Direct selling is a people business—and we already know the people leading these companies. There is a lot of mutual trust, admiration and respect already in place.”

Growing Bigger Better Companies

The SPAC merger will likely result in an approximately $230 million capital infusion or more in the selected company. So how could that instant influx of public capital help a direct selling company scale? By allowing them to make strategic investments in specific areas in order to take their business to the next level. Amongst others, this can include investing in the following areas:

• Supply chain and distribution
• Technology
• Digital transformation
• Product development and innovation
• Branding
• International expansion
• Human resources

Direct selling is enjoying a resurgence in popularity and growth dovetailing with the rise of social selling and the side hustle culture. This has created a virtual army of 120 million micro-influencers utilizing direct selling to grow their individual brands and businesses organically through social media and social sharing. The dynamic of blending direct selling with direct to consumer impacts the channel more than any other single factor.

As Wayne Moorehead, DSAC’s Chief Strategy Officer, explains, “Many direct selling companies that are poised for growth need to invest in technology in order to fully realize their potential. Direct selling is blending with direct to consumer in what is evolving into a business model that can provide the best of both high tech and high touch. There is a significant digital transformation underway that is fueling growth. An infusion of significant capital could allow a target company to invest in the kinds of technologies that allow their micro-influencers to reach more customers, sell more product and build bigger, better teams.”

There are other tangible benefits to companies considering a SPAC merger as well. The short list of companies on DSAC’s target list are already successful with good cash flow and market share, but this allows them to benefit from the knowledge and experience of the officers of the SPAC. In addition to growth capital, access to the public markets provides:

• A level of liquidity not generally available to industry companies;
• A public currency to leverage for acquisition opportunities or further capital needs;
• Ability to extend management, employee and distributor loyalty and longevity through participation in stock ownership; and
• Broadened estate planning and legacy building opportunities for company ownership.

The management team and board of directors of DSAC has over 180 years of combined C-Suite experience with direct selling companies of different segments and sizes from startups to well-established brands. They know the industry inside and out and can bring not only capital but a wealth of knowledge to companies that are already performing well, ideally helping them achieve even more.

As Mike Lohner, DSAC’s President and Chief Financial Officer, explains, “I am honored to work with this extraordinary team, whose passion for and experience in the direct selling channel makes it an ideal merger partner for an industry company that can benefit from the growth capital, expertise and support that DSAC can provide. We believe our understanding of the unique opportunities and challenges of these companies is at a level that most within the investment community simply do not possess, and that could prove invaluable to founder/owners, operators, investors and the industry at large.”

Taking the Channel to New Heights

The corporate side of direct selling is often considered a mystery to outside investors and other industries. There is a distinct disconnect between what today’s direct selling companies achieve and how they operate in addition to lingering public mistrust and confusion.

In order for the channel to continue to grow, its leading companies must change the narrative with a new story of prosperity, legitimacy and innovation. DSAC promises to offer the right company the capital to improve and expand. Strong companies with strong reputations not only combat stereotypes, but edify and elevate the channel as a whole.

An Impressive Leadership Team

DSAC is led by a seasoned group of direct selling luminaries and leaders with over 100 years of combined C-Level experience in public and private companies.

Dave Wentz serves as Chairman and Chief Executive Officer. He is the former Chief Executive Officer of USANA Health Sciences. During his time with USANA, he served on the board of directors of both the Direct Selling Association and the Direct Selling Education Foundation.

Mike Lohner is the President, Chief Financial Officer and a Director. He is a highly experienced executive, board member, founder and investor in the direct selling and direct-to-consumer industries. He’s also co-founder of DOSH, a leading card-linked cash-back advertising platform.

Wayne Moorehead serves as the Chief Strategy Officer and as Director. He brings a wealth of experience in marketing, branding and direct-to-consumer to the management team. He’s a seasoned thought leader and advisor across several industries, most recently as Chief Marketing Officer for Young Living.

Stuart Johnson is a Special Advisor to DSAC. Stuart has served the direct selling channel for more than 35 years as the sole founder and CEO of Direct Selling Partners, a leading marketing services firm, as well as the founder of Direct Selling Capital Advisors. He is also the owner of Direct Selling News, a leading industry publication.

Ryan Bright is Special Advisor to DSAC. He is a partner and co-founder of Direct Selling Capital Advisors and has nearly 20 years of experience as a financial and investment executive. He began his career in finance sourcing private equity transactions.

In addition to those listed above, DSAC has the following independent directors:

John Addison, former Co-Chief Executive Officer of Primerica, Inc. and currently the Chief Executive Officer of the Addison Leadership Group.

Bradford Richardson, former president of Shaklee International. He has spent 20 years of his 30+ career aggressively scaling direct selling companies globally.

Travis Ogden, currently serving as the Co-Founder and Chief Executive Officer of Oola Global, a personal development company serving the direct selling channel.

Heather Chastain, Founder and Chief Executive Officer of Bridgehead Collective, a consultancy focused on assisting direct selling companies scale.

The post Long-time Industry Executives Form Special Purpose Acquisition Company first appeared on Direct Selling News.

In August, three members of the DSCI fell by double-digit percentage points—Medifast, Inc. (NYSE: MED); The Beachbody Company, Inc. (NYSE: BODY); and Sharing Services Global Corporation (OTC: SHRG)—and an equal number increased by more than 10 percent–eXp World Holdings, Inc. (NASDAQ: EXPI); Tupperware Brands Corporation (NYSE: TUP); and Mannatech, Inc. (NASDAQ: MTEX). Surprisingly, BODY and SHRG were among the stocks that also declined by more than 10 percent in July.

In total, 11 of the 17 stocks in the DSCI lost value during August, including seven of the eight small-cap stocks.

Since the DSCI tracking period began in March 2020, the DSCI has gained a cumulative 82.8 percent, compared to the DJIA’s gain of 35.9 percent.  Year-to-date, the DSCI has increased 15.7 percent, while the DJIA has gained 14.2 percent.

The DSCI’s disappointing performance over the last two months essentially erases the outsized gains realized over the previous two months, particularly the 18.4 percent increase in May.

“An issue facing the direct selling stocks, and likely a principal reason for the pronounced declines in the DSCI over the last two months, has been investors’ increasing focus on large cap stocks, particularly mega-cap technology stocks, and the resultant narrowing of the group of advancing stocks,” said Stuart Johnson, Direct Selling Capital Advisors CEO. “These giant stocks are heavily represented in the DJIA and account for a continuation of that index’s rise over recent months. Conversely, many direct selling stocks are small to mid-caps and have been a source of funds for investors recently.  As an illustration of this current preference for larger cap stocks, it is likely no coincidence that five of the nine large cap components of the DSCI increased in August, while only one of the eight small cap members gained.”

It seems possible that the significant declines experienced in July and August will be at least partially reversed in September and, factoring in strong earnings reports and the declines in share prices of many of the stocks over the last 60 days, many direct selling stocks currently trade at substantial P/E discounts to the overall stock market. HLF stock, for instance, already increased 3 percent in the first three days of September, without any company-specific news.

With this in mind, however, September is historically a difficult month for overall stock market performance. It is also when investors will be grappling with the delicate issues of the timing of the U.S. Fed’s potential tapering of its bond buying program, and the details of any tax increase plan to fund increased federal spending.

Large Cap Stocks

• Betterware de Mexico (NASDAQ: BWMX) fell 0.5 percent  in August despite reporting healthy second quarter earnings on August 5.  Revenue, EBITDA and net income increased 81 percent, 92 percent and 72 percent, respectively, over the previous year. Shares are up 27.2 percent since the start of the year and a remarkable 349 percent since BWMX began trading in March 2020 after the company’s merger with the SPAC DD3 Acquisition Corp. 
• Tupperware Brands Corporation (NYSE: TUP) reversed its downward pattern that has lasted several months, increasing 14.3 percent in August, and cutting its year-to-date losses to 25.3 percent. Since March 1, 2020, TUP shares have gained an astounding 737.5 percent. On August 4, the company reported second quarter results that easily surpassed Wall Street’s expectations. Quarterly net sales and adjusted EBITDA each increased 17 percent compared to the previous year. In late June 2021, TUP’s Board of Directors authorized a $250 million stock repurchase plan, equivalent to 20-25 percent of shares outstanding, reasoning that the company’s Turnaround Plan had successfully improved its liquidity position.
• Nu Skin Enterprises, Inc. (NYSE: NUS) shares declined 5.7 percent in August, leading shares to be down by 7.3 percent in the first eight months of 2021, but up 114.6 percent since March 2020, when tracking began. Second quarter earnings included an increase in revenue by 15 percent over the previous year’s period, and EPS growth of 42 percent. NUS boosted its full-year 2021 EPS guidance to $4.30-$4.50, about a 5 percent increase from the guidance it issued just three months before.
• Herbalife Nutrition, Inc. (NYSE: HLF) gained 0.8 percent in August, boosting the stock’s year-to-date performance to 2.9 percent, and a gain of 58.7 percent since March 2020. Second quarter net sales reached $1.6 billion, up 15 percent from a year ago, and adjusted EBITDA rose even more rapidly, reaching $262 million, 18 percent higher than the second quarter of 2020.   
• Medifast, Inc. (NYSE: MED) stock was the victim of significant profit taking in August. The company’s second quarter revenues increased 79 percent from the same period last year, and diluted EPS grew even faster, reaching $3.96 in 2Q 2021, up 113 percent. In turn, MED boosted its full-year 2021 revenue guidance slightly to $1.425-$1.475 billion. However, despite these robust numbers, MED’s shares declined a remarkable 20.2 percent in the month, cutting its gains since March 1, 2020 to 186.7 percent. Based on the $13.44 per share midpoint of MED’s annual earnings guidance, the stock trades at a P/E multiple of about 17.5x, an approximate 20 percent discount to the overall stock market’s valuation, despite its much faster projected revenue growth.
• USANA Health Sciences, Inc. (NYSE: USNA) shares rose 1.8 percent in August, leading to a year-to-date gain of 24.5 percent. Since the March 2020 inception of the DSCI, USANA shares have increased 46.8 percent, beating the Dow’s 35.9% cumulative price increase. USANA reported robust second quarter results, with net sales and diluted earnings per share jumping 30.1 percent and 41.7 percent, respectively, from year ago levels.  
• eXp World Holdings, Inc. (NASDAQ: EXPI) shares posted the strongest performance of all DSCI members in August, rising 27.6 percent. So far in 2021, the stock has climbed 49.4 percent, and an astonishing 859.2 percent since March 2020. Second quarter financial results reported 87 percent more agents than in the year-ago period. Equally important, EXPI declared a $0.04 per share quarterly cash dividend to shareholders, its first-ever dividend. Its cash balance increased $44 million in the quarter, even after repurchasing $55 million of stock during this period. The company announced on August 31 that it has expanded into Germany, bringing the total number of countries and territories in which its real estate agents operate to 18.  EXPI now employs more than 62,000 agents across the globe.
• Primerica, Inc. (NYSE: PRI) was the fourth-best performer among all stocks in the DSCI in August, rising 4.6 percent, and is now 18.5 percent higher over the first eight months of 2021, and 39.6 percent higher since the March 2020 inception of the DSCI. The company’s second quarter revenue and earnings per diluted share increased 25 percent and 28 percent, respectively. PRI’s ROE is an impressive 26.3 percent.  
• The Beachbody Company, Inc. (NYSE: BODY) stock declined 13.9 percent in August. Second quarter revenue increased 2 percent versus over the same period in 2020, and digital revenue rose 20 percent.  Adjusted EBITDA was negative $4.4 million in the second quarter versus positive $0.9 million in the second quarter of 2020.

Small Cap Stocks

The small cap stocks tracking set lagged noticeably behind the performance of their large cap peers in August, with seven of the eight stocks falling during the month. Mannatech, Incorporated (NASDAQ: MTEX) was the second-best performer of all DSCI components in August, rising 27.1 percent. The stock has appreciated 81.8 percent over the first eight months of 2021 and reported solid second quarter financial results, including a 12.9 percent increase in revenues over the second quarter of the previous year. Diluted EPS reached $0.99 in the quarter, a 111 percent increase from $0.47 in 2020.

Short Interest and Data Analysis

Short interest in industry stocks continued to move higher through mid-August, and “days to cover” has increased about 150 percent since bottoming in mid-February. The number of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks was around 97%. The percentage of stocks which analysts recommended selling was only 3 percent.

Analysis brought to you by:

Direct Selling Capital Advisors provides monthly market analysis abased on research and the TDSI index. The TDSI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million.

The post DSCA: Direct Selling Stocks Significantly Decline in August first appeared on Direct Selling News.

Rojas is a long-time veteran of the brand, having previously served as Senior Vice President of Marketing and Publications. In fact, she has been involved in DSN working at its sister company, SUCCESS Partners, for 20 years. 

“Shelley has been an integral part of DSN’s success from the very beginning,” explains Stuart Johnson, Founder and CEO. “Her creative insights, leadership abilities, dedication and professionalism have always been key ingredients in our ‘secret sauce.’ Shelley has crafted a unique vision and voice for the brand. I can’t wait to see how DSN will grow and evolve under her tutelage.” 

The appointment of Rojas ensures DSN will continue to bring direct selling executives the news, insights and stories they need on the platforms they use most, providing an expanded, robust digital and multi-media component to the brand’s coverage.  

As Johnson explains, “Shelley is the perfect fit for this position. She has led the rebranding of DSN for the past nine months—and, as a result, we have launched a sleeker, more intuitive new website and new exclusive content including two podcasts. Our weekly emails and social media presence have also been revamped. Shelley’s influence has been game changing for the brand.” 

In her role as DSN’s Publisher and CBO, Rojas will oversee the day-to-day operations of the brand’s multimedia outlets, which include digital and print publications, podcasts, original content and research as well as a 20-year history of premiere networking, recognition, awards and educational events. 

Patricia White, DSN Editor says, “With Shelley taking the Brand Officer/Publisher role, I am more excited than ever about the important guidance and resources Direct Selling News provides the channel. Shelley’s multimedia expertise allows us to bring more up-to-the-minute news and trends to direct selling executives across all platforms.”

“I’m incredibly humbled and excited to assume the role of Chief Brand Officer and Publisher for Direct Selling News,” says Rojas. “DSN has a rich history, a formidable team and a purpose-driven future. We are excited to honor the legacy and to expand the brand’s reach and impact by providing more value than ever before serving the channel as its primary source for global news, emerging trends and inspiration.”

Direct Selling News can be found across social media, including Facebook, Twitter and LinkedIn.

The post Direct Selling News Names Shelley Rojas Chief Brand Officer and Publisher first appeared on Direct Selling News.