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.

Founded | 2009

Headquarters | Lehi, UT

Top Executives:
Curtis Call, Chief Sales Officer
Josh Gagon, Chief Financial Officer

Products | Health and Wellness

As the industry adapts to change from every angle, health-and-wellness-focused Xyngular is no exception. But whether navigating market changes, supply chain challenges or pandemic-era uncertainties, Xyngular has kept culture at the heart of every decision.

A Culture that Adapts

Like so many companies launched in the last two decades, weight-loss leader Xyngular found hard-fought success in the face of adversity. The company was born in December 2009, on the heels of the global financial crisis. Just after its tenth year in business, the world screeched to a halt during the COVID-19 pandemic. But as Xyngular approaches its 14th birthday, the company has emerged from these challenges with both financial success and an even stronger sense of purpose. And that purpose is all about people, as Founders Rudy Revak and Marc Walker intended when they launched the company.

“Rudy Revak spent a significant portion of his career in this industry as a distributor, building a business, and he understands really well what they’re going through,” explains Curtis Call, Chief Sales Officer. “He understands what it takes to be successful on that side, and he has helped set that tone for us, pouring everything we have into helping people be successful. I know a lot of companies do these things, but we’ve made it our mission and an art form to really do it the right way, to treat people the right way. We’re not perfect. What we pride ourselves on is getting it right—figuring it out for the individual, what’s right for the company and right for them. And I think that’s one of the contributors to having a great culture.”

Xyngular’s culture of people pouring into people doesn’t just apply to the field; corporate employees have the same growth opportunities as distributors. And it’s clearly making an impact. Within the last five years, Xyngular has been named one of DSN’s Best Places to Work four times.

“We place a large emphasis on self-development and offer what we call a ‘League of Leaders’ program,” said Josh Gagon, Chief Financial Officer. “The League of Leaders program helps employees at Xyngular have a common vocabulary when discussing business and employee issues. The program also helps employees continue in their development. We want to help empower change not only in the lives of our field organization but also in the lives of our employees. We understand that for most employees, Xyngular will not be the last stop in their career. So, our hope is that while they’re at Xyngular, they will be given opportunities to grow in their respective fields and in leadership so that when the time comes that they move on in their careers, they can feel like Xyngular invested in helping them become more.”

When people are empowered and appreciated, they’re better prepared to adapt and respond when things change—which has been essential for most companies in recent years, including Xyngular.

“Since 2018, I believe the main theme for Xyngular has been our ability to adapt to rapidly changing environments,” Josh added. “In 2020, we went from planning for potential major slowdowns in sales to not being able to order product fast enough due to a very rapid sales increase. Since that time in April 2020 until present, we have had to adapt to major changes to our operating and sales environment. We have had to figure out how to scale up with the rapid increase in revenues and then how to reverse some of that scaling as revenues have softened.”

A Culture that Celebrates

Xyngular’s field of nearly 15,000 distributors isn’t just empowered—they’re celebrated. While the company’s compensation plan is simple and straightforward, Xyngular’s Passport Program offers distributors a unique “extra” that celebrates their achievements through a series of incredible international travel experiences.

“Our Partners can earn trips for two starting at just $10,000 in sales volume and other awards and trips that go up from there,” Josh explained. “We have around 10 total trips and awards in the Passport Program where our Partners can go places they may have never thought they would visit.”

“The Passport Program has been really unique,” Curtis added. “I’ve had a lot of colleagues in the industry ask me about it. It really keeps people motivated and moving towards something in their business because, while most people are building for income, people love to travel. Rudy has said that we want to give our partners the opportunity to live a life of adventure, and this is our way of delivering on some of those adventures that they might not otherwise create and book for themselves. It’s one of those things that continues to grow the culture. When you’re together and you’re meeting other people from all over the country or around the world and you’ve all come together and see all the things that we have in common, it really binds us together as part of the Xyngular community.”

During the pandemic, travel wasn’t the only celebration put on hold for Xyngular. State and local restrictions on large group gatherings relegated field achievement celebrations to Zoom—which just wasn’t good enough for the Xyngular family.

“We had many experiences during the pandemic where people had earned rewards, bonuses and awards,” Curtis shared. “We weren’t having in-person events, so we went out ‘Publishers’ Clearinghouse’ style and dispatched 17 teams. We went out around the country. We knocked on doors and handed them the bonuses that they had earned. It was just one of those things that show who we are as a company. We will go the extra mile. We will do those things for our partners to ensure that they’re having a great experience being a part of our company and being part of our culture.”

A Culture that’s Ready

Strengthened by a culture that has proven how well it can navigate change, Xyngular is preparing to adapt its portfolio to meet an evolving weight-loss marketplace. Prescription weight-loss possibilities have exploded onto the scene in the last year, presenting a new and urgent opportunity for Xyngular to adapt.

“Xyngular has primarily been a weight-loss company since its inception,” Josh said. “However, with the surge in medical weight-loss options, such as Ozempic, Wegovy and Mounjaro, we have been working on re-imagining what weight loss may look like as we move into the future. We have introduced a digestion line as well. However, as we look to continue to innovate and deal with the new medically assisted weight-loss options, I am excited for what other product lines we can introduce that may assist in reaching new geographics and demographics. We have learned it is very difficult to forecast the future in rapidly changing environments, but in the face of all this change, it’s so important to be agile and adapt to the best of your abilities.”

While this newest challenge isn’t without uncertainty, the Xyngular leadership team believes in the strength of their people and is excited to navigate this next season together.

“We’re in a place right now in our industry where we’re trying to solve challenges and innovate,” Curtis shared. “We’re innovating within our product space; we’re creating a number of new training programs for our distributors. Once we get these things launched and deployed into the field, really good things are coming for us. People are choosing Xyngular because they see a values-based company who lives up to their word and truly goes out of their way to get to know and to take good care of their people. I’m excited that with all these changes, we can bring more and more people into an opportunity that gives them the ability to build something that can be life-changing for them.”

From the November 2023 issue of Direct Selling News magazine.

The post Xyngular: Where Culture Comes First first appeared on Direct Selling News.

The DSN Lifetime Achievement Award is not given out annually. It is reserved for the true legends of direct selling—those time-tested titans that have shaped the channel and inspired its leadership for decades. The third-ever recipient of this prestigious award is Rudy Revak, the craftsman behind multiple highly successful companies including Symmetry and Xyngular.

Rudy Revak’s launch into the direct selling industry began with a cold call from a total stranger.

A German refugee, Revak was raised on a chicken farm in New Jersey, where his parents, Hungarian and Romanian refugees themselves, fled after the war. Revak was attending school on the GI Bill after returning from Vietnam and working full-time in retail when he received a phone call inviting him to a business presentation that would ultimately change his life.

Revak drove 60 miles to attend that meeting and watched as the man in the front of the room wrote “$30,000” on the board. Revak remembers the man went on to draw circles and squares, explaining discounts and how to build a business, but it was all a blur.

“I didn’t understand any of it,” Revak shared. “I was just focused on the $30,000. If they could show me how to make that—I was in.”

While Revak was desperate for opportunity, this one came with a catch—and not a small one: buy-in would cost him $3,217. “I was 23. I had no money, and my family had no money, but I was excited.”

Revak’s enthusiasm was catching, and his father saw the potential. “They’re showing you how to work smart, not hard,” Revak remembered his father explaining. But $3,217 was out of the question. No one in his family had that amount of money lying around.

A few days later, Revak’s father handed him a check to cover the buy-in costs. He had gone to the bank without his son’s knowledge and leveraged his home and farm to borrow the money. “When he brought me that check, he told me, ‘I want you to have the chance that I never had.’”

The Courage to Try

Revak’s buy-in bought him a basement full of soap, which, he admits, did not make for instant success. But a combination of his German work ethic and mentorship by natural salesmen, like Marty Day, Bill Bailey and Jim Rohn, gave him the boost he needed.

Revak was promoted to area coordinator in Maryland, where he became one of the top five area coordinators in the country. Business was booming. Before his next promotion, the company’s leadership asked him if he would be willing to go to Germany as an assistant vice president—a leap over his scheduled promotion—where his team and overall revenues grew as well.

Revak quickly became the company’s go-to leader. After Germany, he helped grow markets in Sweden, Finland, Italy, Spain and Mexico. During a leadership stint in Canada, he was introduced to what would become the foundation for later ventures: nutritional supplementation.

In 1995, Rudy launched his own company, Symmetry, a health and wellness organization, then Xyngular in 2009, a company based on a single-line compensation plan and single product, which he eventually merged into one company. Revak then led the acquisition and rebranding of PUREhaven in 2016.

“I have always had the courage to try,” he shared. “I had to learn the business; how to communicate with people; and how to sell. I had to overcome the fear of talking to people. People joining today have the same fears.”

Four Pillars of Success

As he looks back over his career, Revak can point to four core beliefs and behaviors that have helped propel him to decades of success.

1 / Hard Work

Growing up on a chicken farm, Revak learned early on that hard work was essential. When the chicken feeder broke, he remembers his father telling him to go figure out how to fix it. Knowing how to work hard—even when you don’t feel up to the challenge—was his first key to success.

2 / Belief

There are plenty of opportunities for today’s direct sellers to feel down about themselves, and Revak has watched as the world has become accustomed to putting people down and telling them what they can’t accomplish.

“People have a hard time believing in themselves,” he explained. “They think it takes a special person to do uncommon things, but it doesn’t. It’s just ordinary people who do the most incredible, unique things in this world.”

3 / Attitude

People don’t buy your products; they buy you. This mantra has been integral for Revak as he has led and built teams across the world. When direct sellers are energized by their mission, the people they are talking to can’t help but join them. He believes people follow feelings over facts, so enthusiasm is essential.

4 / Persistence

This is where Revak believes the magic is found. Over breakfast early in his career, Revak recalls a mentor asking him why his sales were dismal. After rattling off excuses, his mentor handed him ten paper clips to keep in his left pocket. Every time he talked to a person, the mentor instructed him, he could move a paperclip to his right pocket. At the end of the day, he had better have moved all ten.

“It got me into the activity of what I needed to do,” Revak remembered. “Suddenly, I didn’t care about ‘yes’ or ‘no.’ My goal was to move those paperclips. In this industry, if you can get people consistently working their business and sharing the message, sooner or later they’ll find others who will join them.”

Committed for Life

Revak is still highly engaged in the industry as a mentor and leader. In his spare time, he flies his small airplane, rides motorcycles and drives race cars. To Revak, age isn’t a good reason to stop doing what he enjoys.

He lives in the Houston area with his supportive wife, Pam. His son, Brandon and wife Michelle, live just 10 houses away. Revak feels fortunate to live so close to his three grandchildren who are the lights of 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. People will ask me when I’m going to retire, and I say, ‘From what? I love what I do.’ This industry has changed my whole life. I would do it all over again, 100 percent.”

DSN congratulates Lifetime Achievement Award Winner Rudy Revak. Thank you for over 50 years of excellence, integrity, leadership and vision.

From the June 2023 issue of Direct Selling News magazine.

The post Lifetime Achievement Award / Rudy Revak first appeared on Direct Selling News.

After clearing a plethora of challenges in the past few years, the direct selling industry emerges asking even more questions about what inspires people to interact with their brands. There’s a retooling underway that bends direct selling business models further and further toward a more customer-centric focus, and direct selling companies find themselves adapting to a new kind of customer. But it’s not just the customer who has changed.

The pandemic spurred an accelerated evolution within direct selling field organizations too. While plenty of traditional industry business builders are selling products and recruiting others to do the same, more companies have now expanded to include affiliate, tiered affiliate and brand partner programs. And the number of social media influencers in the mix could be endless.

The “field” simply isn’t what it used to be. No longer a generalized group of business builders, the direct selling field is more like a collective of wildly diverse motivations, intentions, needs and expectations. Figuring out how to effectively incentivize behavior and reward successful performance is a complicated challenge because this eclectic direct selling field is coming at it from multiple directions all at once.

Effective motivation depends a great deal on a direct selling company’s ability to suss out what people desire most, then adopt incentive and recognition strategies that reflect their differing goals for business builders, affiliates/brand partners and social media influencers, who all want different things. In essence, you need to make it personal. That requires a creative, tiered strategy unlike anything that’s come before.

“I really think as an industry and as a company, we’re still figuring this out. It’s new. We’re trying new things. It’s going to evolve as we go forward, as we have a better understanding of how these different distributor types, influencer types and affiliate types fit together within your program, within your compensation structure as well as the ways that you might recognize them,” Curtis Call, Xyngular’s Chief Sales Officer said.

Acknowledgment is a powerful recognition tool, and it’s one facet of an incentive and rewards strategy that doesn’t have to be complicated or a sweeping campaign to make people feel seen. Some of the things that have worked for decades in the direct selling industry continue to be powerful forms of recognition.

Personalized birthday wishes and thank you notes, free product and swag all have their place—especially when budgets aren’t plump. They go a long way in giving younger people, for instance, the frequent feedback they want. These short-term kudos don’t necessarily tie to a big red-carpet moment, rank advance or top-tier travel reward. Experiences like accepting a plaque on stage and earning that glamourous trip still hold sway with business builders, and cash bonuses certainly never go out of style.

“But at the same time, I think we need to continue to evolve and allow ourselves to be creative and ideate on new forms of recognition that are equally powerful, especially as we get into the younger generations joining the industry,” Call said.

Significant Circles of Influence

Direct selling companies have always sought to recruit people who possess significant circles of influence. With the rise of social media influencers, direct sellers would love to bring them into their teams or at least get them into their organizations to leverage that influence to help promote and move products.

But often, there’s a rub. Social media influencers don’t necessarily want to be viewed as network marketers or distributors. Sure, hybrid individuals exist and sometimes get involved in business-building opportunities, but most simply want to remain influencers. As Call said, they are happy to “plug in” and use their influence. They may love a company’s products, but also want to simultaneously promote another company’s products.

Expectations like these are shifting incentives and recognition strategies within the direct selling industry. Multi-level compensation plans—attractive to business builders—don’t fit the social media influencer, who may prefer a single-level, built-in monetary reward for sales they influence. Company swag, free products or exclusive offers for their peer or influence group can also work.

“You have to understand who’s building it as a business and who’s merely a great promoter of your products. I think today’s companies need both. I think you still need the builders. I think you still need to have a strategy to go after the influencers. But the influencers aren’t necessarily looking for the opportunity to come to your event and walk across your stage, hold a title and a rank with the company,” Call said.

Getting Personal

The industry norm—a tiered, business-builder inspired incentive and recognition strategy—is evolving and getting increasingly complex with the introduction of these new players. But running parallel and growing more powerful in the post-pandemic era is the notion that the reward itself needs to really mean something to the recipient.

“The future of incentives for any consumer brand is how to get more personal with the behavior you’re trying to drive. Why would they care about doing this or care about the reward itself?” explained Kevin Yip, President and Co-Founder of Blueboard, a San Francisco-based experiential rewards and incentive platform.

Nearly ten years ago, Yip was an accountant at a Fortune 500 firm. He’d just wrapped a two-month-long project requiring 400+ hours of unpaid overtime. Grueling—and it took its toll: 20 pounds overweight, stressed and anxious, Yip was labeled a “top performer.” That’s when a well-meaning manager dropped a $200 gift card on his desk, and Yip’s world changed. It was easy math. His reward: roughly 50 cents per hour.

“You know when you put that much energy into something and you’re that burned out, it was the straw that broke the camel’s back. I felt it was incredibly impersonal. It felt like a slap in the face. I felt really undervalued. I was really frustrated,” Yip remembered.

That company spends millions of dollars annually on recognitions, but in the moment, Yip said, “All that hard work and good intention fell flat in that final mile.”

What if, instead, that manager offered up a short-term membership to the gym around the corner? Yip loved boxing and would relish getting back in shape. Perhaps a classy, Michelin-star dinner date since he’d been unable to spend quality time with his girlfriend as the hours piled on?

“Same cost—but imagine how much more personal and thoughtful that would’ve been for me as an employee,” Yip said.

Together, Yip and his longtime friend and fellow “top performer” Taylor Smith recalled the countless Starbucks and AmEx gift cards tossed on their desks as rewards. Were they a magical motivating factor? Not in the least. So, they set about helping companies figure out a better way and co-founded Blueboard in 2014.

Blueboard’s client base runs the gamut from direct selling organizations to some of the world’s largest tech companies, elevator manufacturers, The Shake Shack and Chick-fil-A. After a company does the introspective work necessary to identify the behaviors they want to incentivize and recognize, Blueboard shows up with a portfolio of experiences aimed at personally rewarding recipients. Then they partner with the client to launch a campaign that drives the desired outcome.

Often, they work to elevate sales and reward top performers. But campaigns can be behavioral driven too—incentivizing people to adopt a new way of doing something. For instance, one organization discovered through a deep data dive that they won 50 percent of face-to-face customer meetings, but only 10 percent when no one showed up in person. “So, we incentivized them getting an in-person meeting because that tilts the advantage,” Yip said.

Nearly $100 billion is spent on non-cash incentives and rewards in the United States, Yip said. While there’s a travel component to that figure, much of that money goes toward gift cards, plaques, swag, electronics and merchandise. And today, a recognition strategy centered this way feels more than a little antiquated and out of touch.

“Folks aren’t going to say no to another iPad or Apple Watch, but it’s probably the fifth or sixth one they’ve received. You spend $500,000. Are they working harder because of it? Are they more loyal because of it? Are they talking about it?” Yip asked. “Probably not.”

Direct selling, as an industry, has engineered that top-rank reward—leasing an entire cruise ship or jetting people off to a private island—to a tee. But what Yip hears over and over from those ultra-top performers is that these trips still feel like work. “It’s less personally valuable. It’s more socially valuable…But it doesn’t feel like a chance to unplug,” he said.

Blueboard helps direct selling companies figure out how to reward their top people with something they want to do with their families and their friends, not a trip they take to inspire the top five people in their downline or network with other top performers. While those events are essential to business success, a real reward for top field leaders would be true downtime doing something that creates memories to last a lifetime.

That could be anything from an Italian cooking class with your team to a three-month, once-a-week Spanish language course; hiking Machu Picchu; or beach time on a white sand beach in the Bahamas with the family.

“One of the things we believe is experiences are universal, but preferences are different. So, we want to help deliver this idea of quality time to these people getting rewards,” Yip said.

Sometimes people want the ability to decide for themselves what their recognition is, Call said. And that’s why monetary rewards work.

It’s also why Blueboard’s concept is so appealing. Companies set the parameters for the reward experience and recipients get to choose. Sending someone on a trip is far different than helping them recreate their honeymoon. That’s the personal touch, and that’s something direct selling companies can deliver.

From the April 2023 issue of Direct Selling News magazine.

The post Make It Personal 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.

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.

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January’s publication received significant international attention, and we are very excited to announce that we are expanding our social media tracking globally.  Next month’s issue will include the March’s Digital Momentum Index will contain both US Domestic and Global International rankings!

Feedback thus far has been overwhelmingly positive, and we had dozens of great conversations about the rankings and the Industry’s use of social media in general. We are excited to expand the report globally and look forward to continued learning with industry experts.

February’s Top 50 Momentum Rankings are:

This is for the left hand side

What the Ranking Means

It is worth repeating that the Digital Momentum Index only compares single period/monthly changes (vs. year-to-date or a trailing month timeline), and so it is not uncommon to see a single member company make leaps or appear/disappear each month. A company who achieved +25 percent growth last month would have to continue growth atop that to maintain their rank. The index is intended to be a measure of “who saw significant social media growth in the last 30 days” rather than a long time leaderboard.

Our Efforts for Continuous Improvement & Accuracy

The amount of data available on Social Media and SOE / Web Traffic is both vast and ever changing, and we’re learning more about it every month. We launched the Rankings in Q4 2020 with intent to learn and collect feedback for a stable method in 2021, and we continue to learn and collect feedback. February rankings were calculated with the same data and weighting as January 2021 and December 2020, and we will make and announce any adjustments to the methodology quarterly.

Components

The list represents months of analysis across the three core pillars of social media marketing: web traffic & SEO analysis, Facebook activity, and Instagram activity.

Eligibility

A company is included in the Transformation Capital Direct Selling Momentum ranking when it has an active website, at least one active social media account, and at least 50,000 followers or fans for a single account (Facebook or Instagram).

As noted, our initial ranking methodology focuses exclusively on three primary drivers of online presence: web traffic, Facebook activity, and Instagram activity. We’ve aggregated roughly a dozen metrics from these three sources and assessed their change over the last thirty days in an attempt to measure the growth in a company’s online audience, or momentum.

A brief explanation of our proprietary methodology follows:

Web Traffic & SEO

We analyze basic web traffic statistics as a measure of general interest. These statistics seek to measure the number of individuals searching for, visiting, and clicking on links that direct them to the company’s domain. This domain includes the corporate website and (in most cases) the company hosted web pages for individual distributors. Additionally we analyze the number of third party sources referring internet users to the company website, as well as the number of associated keywords, branded phrases, or marketing jargon (hashtags, slogans, etc.) that are popular across the web. Assessing the change in these metrics over time creates an estimated increase or decrease in demand for the company across the web.

Facebook Activity

We gather a collection of metrics intended to measure thirty-day changes in both volume (count) and quality (engagement & communication with) of followers. Assessing the change in behavior on Facebook, we believe, is a valuable tool in determining improvements (or declines) of a brand’s social value.

Instagram Activity

As with Facebook, we focus on the thirty-day change of our metrics as a measure of social attention, or momentum, assuming a significant change in attention indicates changes in social interest and brand awareness.

A Note on Facebook vs. Instagram

Given varying target markets and consumer profiles, companies seem to often focus on Facebook or Instagram, rather than both. To ensure appropriate credit is given to the correct outlet, our metric analysis and momentum calculation consider which platform appears to be the primary for each company. As an example, if a company has 20,000 Instagram followers and 80,000 Facebook fans, all Facebook-related metrics will be weighted at 80 percent(80/100) of the total weighted social media metric score. Similarly, all Instagram-related metrics will be weighted 20 percent. Few companies do not have an active official Instagram account, and so their social media metric is based 100 percent on Facebook performance and changes. There are no companies in the list for which an official Facebook profile does not exist.

The post FEBRUARY DIRECT SELLING MOMENTUM INDEX first appeared on Direct Selling News.

Tranont, Xyngular and ARIIX were all named in the Consumer Products and Services category.

Tranont, founded in 2013 and based in Lehi, Utah, landed at No. 597 with 744 percent growth over the last three years. The company, which distributes dietary supplements and financial products through a direct sales model, had $14.9 million in revenue for 2018.

Another Lehi company, Xyngular, came in at No. 2976. The nutritional supplements company had 126 percent growth over the three-year period and achieved $111.5 million in revenue for 2018.

ARIIX, with headquarters in Bountiful, Utah, came in at No. 3629 with 96 percent growth. The company, which offers multiple independent health and personal care brands, had $219.88 million in revenue for 2018.

The 5,000 companies, representing 49 states, Puerto Rico, and the District of Columbia, combined generated $237.7 billion in revenue last year. They had an average 2018 revenue of $47.5 million and median three-year growth rate of 157.4 percent.

The post 3 Direct Sellers Named to Inc. 5000 Fastest Growing List first appeared on Direct Selling News.

Amazon, gig economy competitors and other market forces have taken some wind out of direct selling’s sales.

After years of significant growth, our industry’s U.S. revenue was down 1.6 percent in 2016 and nearly two percent in 2017, according to DSA’s Growth & Outlook Survey.

The surge in alternatives to direct selling and pressure from e-commerce has knocked us back. And we’re just now regaining our balance. Last year U.S. direct selling retail sales was slightly up again, a paltry 1.3 percent over 2017 to $35.4 billion, and the number of business builders—those who regularly buy product at a discount and sell it for a profit—was up 1.6 percent to 6.2 million. The Direct Selling Association (DSA) projects that U.S. direct sales revenue will continue to rise, between one and three percent annually for the next three years.

“We have to be willing to change what used to work. Because although it may have worked in the past, it was never sustainable.”

That seems doable, right? If we can grow by 5.9 percent—our high between 2011 and 2015—surely, we can manage a percent or two. But we have to be willing to change what used to work. Because although it may have worked in the past, it was never sustainable. We must find new tactics, set new expectations and rephrase our recruiting message because times have changed. The “You, too, can have the house, the boat, and retire a millionaire in five years!” hard sell our industry has been known for has done us more harm than good. “The appeal to greed is repugnant,” said LifeVantage President and CEO Darren Jensen at DSA’s 2018 Fall Conference. “We keep going back to that well time and time again, and we need to shift away from it.”

Putting Field Leaders Back To Work

The lure of network marketing was this grandiose plan to work hard for a few years until the big money rolls in and then coast on the residual income. Direct selling companies have themselves to blame since they have traditionally organized their compensation plans to reward these top earners to coast on the work their downline does. It’s time to start rewarding activity that directly brings in new customers and representatives. This strategy not only will energize your ground-level representatives, it should motivate those veteran team members to re-engage in business building.

There are examples of this priority shift all over the channel, notably what happened with AdvoCare earlier this year. In May, the Plano, Texas-based company announced it would abandon the multilevel marketing model, no longer paying distributors on the sales of the salespeople in their downlines, but paying only on sales to retail customers. “Over the years, we have made many changes to the AdvoCare policies as the regulatory environment has shifted,” said AdvoCare Chief Executive Officer Patrick Wright in a statement. “Based on recent discussions [with the Federal Trade Commission], it became clear that this change is the only viable option.”

Other companies are still offering tiered compensation plans, but those plans are getting flatter and easier to understand.

“The more our industry focuses on being customer-centric—the more our business will work in the future.” —Gordon Hester, direct selling analyst

The compensation plan at Salt Lake City, Utah-based Perfectly Posh pays Posh influencers commission on their own sales and a maximum 15 percent commission on the sales of influencers on just two additional levels, or “spheres.” Said Perfectly Posh CEO Ann Dalton in May, “Our new Influencer Pay Plan transitions away from the more typical pyramid pay structure in direct sales, which is neither simple nor transparent. We’ve taken a modern approach to compensation, ditching the complex and often confusing steps it takes to build a successful business.”

Brand ambassadors for Provo, Utah-based Nu Skin can earn same-day sharing bonuses when registered retail customers buy directly from Nu Skin or through the company’s mobile app, the Velocity pay plan. “When we looked at the desires and the needs of [our sales force], 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,” says Nu Skin President Ryan Napierski.

Companies with comp plans similar to those at Perfectly Posh and Nu Skin understand that customer acquisition and increasing retail sales have to be their main goals. The bottom line is that most people who come to our doors are just looking for premium products at a fair price. They’re not interested in selling it. Lehi, Utah-based Xyngular puts front and center on its comp plan description that only 20 percent of its members are business builders. When we recognize and respect customers’ motivations, they’re more likely to become repeat customers because they don’t feel pressured to become anything else.

“The more our industry focuses on being customercentric— the more our business will work in the future,” said direct selling analyst Gordon Hester at DSA’s recent annual meeting. “That’s what the data is saying.” The data he’s referring to includes a 48 percent growth in preferred customers in 2018. Preferred customers purchase at a discount, often as a perk of signing up for automatic repeat shipments.

“As the strength of the customer base—what we call ‘customer density’—grows, then all of a sudden, everything around it grows,” Hester continued. “We’re going to see a longer customer lifetime value and longer customer lifetime stay, and we’re going to see distributors staying longer and engaging at higher levels.”

A New Reality

Engaged, loyal distributors take time to cultivate—and it’s more challenging now that direct selling no longer dominates the work-for-yourself market. According to Statista, 57.3 million people are earning money from some kind of gig economy job—Uber driving, Airbnb renting, etc. This likely includes the 6.2 million direct selling business builders, but it also includes 51 million others who aren’t working in our channel. Why do so many people choose these other opportunities?

Experts say it’s because gig companies not only offer the work flexibility and autonomy that direct selling used to own, but they have set new side hustle standards. Gig work often

• has low or no startup costs;
• pays instantly (sometimes up front); and
• provides customer leads—no sales experience required.

Gigs have put in stark relief the difference between wanting to earn extra money and wanting to be an entrepreneur. The two can be mutually exclusive, says Brett Duncan of Strategic Choice Partners.

“While direct selling companies keep promoting ‘business opportunities,’ the Gig Economy keeps showing us just how many people aren’t interested in that,” Duncan wrote recently. “ In fact, it may actually turn them off. Making an extra $300 a month isn’t typically considered ‘a business’ by a normal person. Sure, it technically is a business, but that’s not how most people think about it. So why do we keep pushing it?”

“The appeal to greed is repugnant. We keep going back to that well time and time again, and we need to shift away from it.” —Darren Jensen, Life Vantage President and CEO

Recruiting in our industry has no choice but to stop pushing against the expectations and motivations these gig opportunities have revealed. Yes, there are people who have entrepreneurial skill and drive and who see direct selling as the perfect way to achieve their dreams of business ownership. Most people pick up side work to make ends meet more easily and are bringing in less than $50,000 a year with their gig—only 11 percent are clearing six figures, according to Statista data. Even among direct sellers, only 16 percent of them are working full time (30 or more hours per week), according to the latest DSA’s Growth & Outlook Survey. That suggests that the majority are putting in part-time work because they’re looking for part-time income.

Direct selling companies need to develop recruiting messages and strategies that meet prospective distributors where they are and likely will be comfortable staying. If we don’t, we’ll become irrelevant, says LifeVantage’s Jensen. “We need to recognize we are in a battle of the side hustle.”

We’ve gathered some best practices for winning in this side-money, customer-driven era:

1. Set honest, realistic expectations. Tell prospective business builders what most distributors actually earn and what it takes to achieve and sustain that level. Xyngular’s comp plan states clearly that nearly 80 percent of its distributors earn $67 a month.
2. Offer quick payments. Instant commissions are one of the biggest trends in our space. Airbnb hosts get paid before their guest even arrives. So, we have to  get faster. Perfectly Posh pays in less than five minutes from the time of sale, at no additional cost.
3. Provide complete, accessible information about your opportunity. Make it easy for potential distributors to find your compensation plan and startup requirements on your website.
4. Watch your language. Reinforce the separation between customers and distributors at every stage. At Xyngular, for example, distributors enroll but customers check out, Jensen says. If a customer has to click “enroll,” there’s an implication that she is getting in deeper than she wants and she may bail on the purchase.
5. Emphasize product and experience sharing. Potential customers and distributors are more likely to respond positively to authentic content from satisfied product users.

Compliance Matters

Class action lawsuits across all industries are costing companies more money and time than ever.

According to the 2019 Carlton Fields Class Action Survey, the number of companies that reported facing class actions in 2018 dropped slightly to 54 percent, but the average number of matters per company increased from 6.3 in 2017 to 7.8 in 2018. And class action spending increased for a fourth consecutive year, to $2.46 billion in 2018, accounting for 11.1 percent of all litigation spending in the United States. The companies surveyed said most class action lawsuits brought against them last year alleged either consumer fraud or a labor and employment violation.

“Recruiting in our industry has no choice but to stop pushing against the expectations and motivations these gig opportunities have revealed.”

We don’t have class action lawsuit volume for our industry, but the general sense is that we’re feeling the pinch as much as or maybe more than other channels. “In my experience, we’re seeing more and more direct selling companies targeted by class-action lawsuits due to product and earnings claims,” says Crayton Webb, owner and CEO of Sunwest Communications, a Dallas-based public relations firm.

Most of these claims come, though, from a lack of understanding, training and awareness—and while distributors have a responsibility to represent our companies and products truthfully, it’s incumbent on our industry and individual companies to continually educate our field teams. We have to tell them often what they can and can’t say and then monitor our marketplace for statements and activity that come dangerously close to or go over the line.

Do The Right Thing

Amazon and other e-commerce players have rewritten the retail rules. The gig economy has rewritten the work-for- yourself and extra income rules. And regulators are watching us more closely than ever to make sure we stick to the ethical and legal rules—rules, by the way, that we should follow even when no one is watching. We have a choice to make—A) evolve and thrive or B) cover our ears and eyes and hope no one notices if we do business as usual. The thing is, though, A is really the only choice. Because “as usual” will put us out of business.

The post Raising The Bar first appeared on Direct Selling News.