But how do you turn all of that learning into action? The key is to pin down a handful of revelations that rose to the top, and then do something with them! In an effort to help us all take action, whether you were there or not, here are the next steps I would encourage any executive to take, inspired by Fall DSU 2023. 

1 / Get Serious About the Hispanic Market

The most blatantly clear takeaway from DSU was a lot of companies growing in the US have one thing in common: a commitment to the Hispanic market. This was a key point in about four different presentations. Whether you decide to target the Hispanic market or not, every executive needs to be intentional about how you’re thinking about this market, both globally and especially in the US.

2 / Simplify until It Hurts

John Alcala, CEO of It Works!, reminded us of just how much distributors have on their plates…and that’s before we add all of our stuff (promotions, incentives, announcements, launches…) to the mix! We all talk about simplifying our business, but do we really do it? To experience the kind of simplicity that actually prompts growth and duplication, you’ve got to shed some of the secondary “stuff” that only gets in the way for the average distributor. Go find it and do something about it.

3 / Experiment, Learn and Adapt

pawTree Founder and CEO Roger Morgan walked us through a few scenarios where the company identified a problem; came up with a possible solution; and launched quickly. Some worked well; some didn’t; and some only worked within very specific circumstances, but not others. The takeaways from his specific examples were helpful, but the biggest takeaway is this: am I tracking everything I do well enough to know if it works and why? And then do I keep iterating to see the improvement?

4 / Compare Your Business to Neora

A huge perk of DSU was hearing from Founder and CEO Jeff Olson and Co-CEO Deborah K. Heisz from Neora about their journey in their case against the FTC. The work they’ve done is so vital for every single one of us—both in terms of validating what we do and also shedding light on how we should do it. But in Stuart Johnson’s words, “If you’re still doing things the wrong way, this is not a win for you!” Deb shared some of the elements of Neora’s business (like 80 percent of those who buy from them are Customers and receive no commission) that strengthened their case. It’s in no way the hard-and-fast rule that must be followed, but if you need a standard to compare yourself against, it sounds like we just got a new one.

5 / Start Using AI (whether you want to or not!)

I’ll admit I’ve been slow to jump on the AI bandwagon. It can feel a bit overwhelming to understand. And it can feel like “just one more thing,” when I’ve already got enough “things” in my life. But after listening to Blake Mallen and Brandon White talk about how they’re putting AI to use right now, I realized my excuses hold little weight compared to the unbelievable benefits that can come from incorporating AI into how I work and live. Rather than figure it all out, I’m simply dedicating 15 minutes a day to using AI in some form or fashion. It’s the only way I’ll learn it and appreciate it. Maybe you should, too.

6 / Success Is in the Segmentation

No single speaker focused on segmentation as a topic, but many alluded to it. Bridgehead Collective’s Founder and CEO Heather Chastain’s generational research certainly shines a bright light on the need for us to segment what we do. The panel on affiliate programs (and how different each program is) certainly showcases how companies are trying to segment the opportunity in new ways. We even learned of the differences among segments within the Hispanic market. We can all do a better job of segmentation. Whatever is holding you back—technology, resources, know-how, WHATEVER!—let’s make 2024 the year we do something about it.

7 / What We Do Still Matters

Vivian Mokome, Founder and CEO of Vivian Mokome Projects, shared a heartfelt reminder that direct selling changes lives…and, in her estimation, can change continents! She sees direct selling as a prominent force for change in Africa. We must evolve as a channel and respond to the market in terms of what it wants and how it wants it. But we cannot lose sight of the actual life changes that have occurred and continue to occur, no matter how tempted we may be to downplay it in the midst of so many changes. Remind yourself of the greater good your company pursues and provides regularly. There’s no other fuel like it.

Were there more takeaways at DSU? You bet!
This is just a starting place. If you were there, think back to the points above in context of your own experience and determine what makes sense for your company. If you weren’t there, this list can still prompt extremely helpful conversations for your team. And bring them to DSU 2024! DSN

Note from the Editorial Staff: We’re excited to include these insights from industry expert Brett Duncan. Look for more content from Brett in the coming months on the pages of DSN.

Brett Duncan specializes in helping direct selling companies evolve into modern social selling models while still maintaining the culture and essence of who they are and what makes them different. He is Co-Founder and Managing Partner of Strategic Choice Partners, a business development firm that helps direct selling companies take their next steps.

From the December 2023 issue of Direct Selling News magazine.

The post 7 Top Takeaways for Executives from DSU Fall 2023 first appeared on Direct Selling News.

Business as usual was forever changed in 2020. The pandemic, with its supply chain nightmares, quiet quitting epidemic and what felt like endless uncertainties, shifted many workplace paradigms seemingly overnight. In the three years since, it has been common for even the most well-known brands to flounder amid the challenging economic environment.

But these circumstances have also revealed rising stars and leaders within the direct selling industry. These top brands proved through their pioneering and strategic responses how to build and maintain momentum in the midst of circumstances that no executive had ever faced before, and their examples will now play an influential role in the decisions that shape the industry moving forward.

DSN looked at the approaches, behaviors and trajectories of 17 companies (including four publicly traded ones) within the channel who experienced three consecutive years of revenue increases—from 2020 to 2022—through the pandemic and beyond, to discover what the industry can learn from these trailblazers.

Pandemic Puppies and Other Unique Growth Opportunities

The pandemic was a boon for some industries, like suppliers of hand sanitizers and disinfectants but a dramatic bust for others, like hospitality providers. For direct selling companies who built momentum during this time, discovering the unique needs created by living life in a pandemic, and then wielding the pre-existing advantages of the direct selling model, was a major force for maintaining stability and capitalizing on untapped revenue potential.

“For many businesses, the effects of COVID were headwinds that shut them out of business,” said Roger Morgan, pawTree Chief Executive Officer. “For pawTree, the effects of COVID were tailwinds. There were definitely a lot of people who got new puppies, but people were also home more, spending time with their pets and being more attentive to the issues that our products could address. On top of that, we had already moved away from in-person events as our predominant way of sharing and selling, so our field had the tools and habits they needed in place. And one of our greatest tailwinds was that we are an online-sales-only company. That was a well-established trend before COVID, so when people shied away from retail and buying off of physical shelves, we weren’t negatively impacted by that weakened distribution channel.”

Building Trust through Transparency

Uncertainty was the predominant theme in the early months of the pandemic. Where to source materials to maintain inventory; how to navigate international COVID regulations; and when it would be wise to come back to the office were all questions without clear answers in the beginning. Distributors and customers alike needed to be presented with a clear vision for what life could be like on the other side of these extraordinary obstacles, while also receiving assurance that their company had their best interests at heart.

For Amare Global, leaning into compassion and kindness was the first step to creating a safe environment for its team members and has also played a key role in integrating Kyäni, which it acquired in September 2022, into its legacy of bringing mental wellness to the world.

“Our company name and primary core value is love,” said Jared Turner, Amare Global Chief Executive Officer. “At Amare, we want our corporate employees and field organizations to feel loved, inspired and valued. We are focused on operationalizing love throughout our organization to create a community and culture of belonging and support.”

Without a lengthy shared history to fall back on, reassuring the field and customers was even more challenging for young companies, but BELLAME saw it as an opportunity and a way to build transparency and trust from the ground up.

“When COVID hit, we were only 19 months old, so we were still new to our industry, our vendors and our field,” said Melissa Thompson, BELLAME Founder and Chief Executive Officer. “The biggest corporations were closing their doors all around us, so we had a lot to prove. The challenge of uncertainty, however, became an optimal opportunity to build trust within all facets of our business. Transparency became the antidote to it all. From transportation delays to global supply chain issues, we were completely open at every turn. Doing so allowed us to build trust, which has brought amazing opportunities our way.”

Transparency and a continual feedback cycle have been essential components of inGroup’s phenomenal growth. As Chief Operating Officer Anthony Varvaro explained, “Our year-over-year growth is due to a subscription model that has a high perceived and real value to our Members. Our existing Members continue their memberships and new Members continually join. We continually refine the membership and partnership opportunities and incorporate feedback that we take in from our Members and Partners to give more value and more earning opportunities, resulting both top-line and bottom-line growth.”

Building trust with customers has helped Utility Warehouse experience exponential revenue increases, the company ranked #10 on the DSN Global 100 list this year.

“Our partners are growing more and more confident in what we are offering and they are recommending UW to their friends and families in increasing numbers,” said Stuart Burnett, Utility Warehouse Co-CEO. “By doing so, they are earning meaningful additional incomes that are helping them meet the growing pressures on their personal finances.”

Learning to Love Remote Work Culture

Remote work seemed like a fantasy for employees and a nightmare for employers pre-2020. Today, office culture has shifted. Forced closures and social distancing measures gave executives a crash course in remote management, but those who rose to the top learned to not only accept, but also embrace and expand upon this new reality.

“Although our corporate team works remotely from across the globe, I feel more connected with them than I did when I had teams report to an office daily,” Thompson said. “It is amazing how efficient and productive our workflow has become.”

Surprisingly, distance has drawn the leaders of these growing companies closer. Morgan says the efficacy and happiness of his pawTree team can’t be attributed to one specific action, but rather a wide range of efforts to make sure they are appreciated and well-equipped. They’ve been innovative and thoughtful in their approach including inviting the management team to participate in incentive trips; giving raises to make sure team members are appropriately compensated; and ensuring a good awareness of the division of responsibilities across departments.

Digital-First Is Key

It can be easy to forget what it was like in 2020, before a pandemic-induced virtual world took over the sales and marketing approach for most companies. The brands who stood out among their peers were those that were already leaning heavily into creating a digital experience for their customers and distributors.

“Our brand was born through an audience of online followers long before anyone knew we were creating a single product,” Thompson said. “When the pandemic locked us all into a purely digital world in 2020, it was a space that we were quite comfortable inside. Having custom built our own digital platform, commission engine and back office, we were able to put our energy and resources into creating sophisticated marketing tools that made sharing our brand easy.”

Consumers and distributors have accepted the use of digital tools and an online-only business model at a rapidly accelerated pace since 2020. The companies that saw revenue momentum used this opportunity to not only double down on their existing digital infrastructure, but also scale new innovations, like PM-International, who implemented PM DirectCash, which pays online sales income immediately to distributors; and FASTer Way to Fat Loss and eXp Realty, both of whom tapped into powerful lead generators.

“eXp Realty is building on the momentum of the past several years by ensuring we always remain on the cutting-edge of technology so we can continue to deliver on our agent value proposition,” said Michael Valdes, eXp Realty Chief Growth Officer. “We have a robust set of resources that help drive agent success at each step of the real estate journey while simplifying their business with our future-focused technology. Today, eXp continues to be an attractive model for leading teams and independent brokerages because we solve for their pain points. And we offer better compensation options, including our competitive split, cap and equity opportunities.”

The Rise of the Enhanced Affiliate Model

Looking to the future, many of these leading companies are deciding how they can prepare now for the next big wave of change that waits on the horizon. For pawTree, that means taking a fresh look at its own mode of operation and considering ways it can outsmart competitors from outside of the industry that are eager to encroach on its market share.

“Complacency is the kiss of death,” Morgan said. “You’re always tweaking and turning dials, continuing to stay in a state of hunger for learning and understanding the consumer and the seller. All of that has pointed us to an affiliate sales program, which we’ll be launching in the next year.”

Switching to an affiliate-based model has become a pattern that many industry powerhouses have already begun to adopt. For them, it’s a way to give field leaders the marketing campaigns and tools that provide the financial benefits of a network marketing opportunity without sacrificing the community of support that the channel is known for.

“This affiliate model movement sparked with the onset of the pandemic. However, it has continued to evolve and gain momentum over the past three years,” Thompson said. “Pioneering a new business model is an ever-evolving movement—one that we believe will not only maintain our momentum in the years to come, but that of our entire industry.”

And at FASTer Way to Fat Loss, Founder and CEO Amanda Tress credits the affiliate model with her company’s continued success. And that success is impressive. Q1 2023 was the company’s best since launching in January of 2016, and March was their biggest month ever—they paid 46 percent more in commissions to affiliates in March than they did in the previous month of February.

FASTer Way offers two tracks in their affiliate program: Certified Coaches and Ambassadors. The Ambassadors are primarily bloggers and social media influencers who simply refer the program to their followers and receive a one-time commission for their efforts. Certified Coaches go through an in-depth FASTer Way certification course that equips them to run their own FASTer Way businesses, accompanying their clients throughout their journey. They therefore have multiple opportunities to earn on each client.

Whatever path an affiliate chooses, Tress recognizes the importance of nurturing the relationship. “Right after launch I was so focused on the products and the client experience, I realized I had been neglecting our Ambassadors and Certified Coaches. The strength of that relationship is key. We are always looking into ideas for incentives and trips and retreats because they are such an important component of our mutual continued success.”

Preparing for the Next Big Thing

The last three years have been a lesson in flexibility. The companies that have continued to succeed have proven how to stay true to the industry’s DNA, while being willing to explore new and innovative ways to serve their customers and distributors. No matter the compensation plan or sales model, this blending of the old with the new has served as a way for brands to stay nimble and relevant as well as served as guardrails for those at the helm who have masterfully led their companies to growth during a season of aggressive change.

“Digitization will bring many simplifications and savings in handling day-to-day business and will make it possible to reach masses of people and work without limits,” said Wolfgang Klaer, PM-International General Manager International Sales and Support. “But virtual customer assistance can never and will never take the place of a direct customer contact. Direct sales is a person-to-person business. This will always remain the case, and it should.”

The Secret Sauce

Eleven industry thought leaders share their go-to revenue growth strategies.

“We’ve placed a substantial focus on driving stability in customer retention rates, and with customer satisfaction metrics at all-time highs, we’ve seen retention return to and hold at normal levels. We continue to take steps to mitigate cost pressures, drive efficiency and build financial resilience into our model. We’re already seeing some of the impact of that work begin to play out, and while it will take some time to work through our business cadence, we remain highly confident in both the long-term efficacy of our model and our prospects for stable and sustainable growth.” —Dan Chard, Medifast Chairman & Chief Executive Officer

“I think this comes down to investment and innovation—in product development and how we connect with people; the quality and surety in our supply chain; and great analytics to support decision making. A key part of our success is our commitment to and involvement with up-to-date health and nutrition research. This provides a solid foundation for our new product development and ensures that we are producing the highest quality health and nutritional products available in the world today.
—Graeme Clegg / New Image Chairman & Founder

“It was precisely in the pandemic that the strength of PM-International was revealed. While other companies suffered major setbacks or even had to close their doors, PM-International quickly adapted and played to its own strengths: the ability to make quick decisions as a family-owned company; enough financial cushion to easily buy up necessary raw materials; and an innovative nature which helped us adapt our communication tools at lightning speed.” —Wolfgang Klaer, PM-International General Manager International Sales and Support

“One of the questions we ask ourselves is ‘If you were going to launch a company to compete with your own brand, knowing what you know, what would you do?’ If you’re not willing to act on that answer and make exciting changes that might rock the boat, someone else will.” —Roger Morgan, pawTree Chief Executive Officer

“Our growth didn’t come without challenges. We were able to prosper virtually when we were talking about our products and services, but we struggled to build relationships virtually. For us, returning to live events has brought a lot of energy and enthusiasm to the field and has been key to our continued growth.” —Don Thompson, Legal Shield President, Network Division

“Our innovative products and incredible earnings opportunity are beyond valuable, however, the key to our continued growth is rooted in the behavior of servant leadership. Even in our highly digital world, we are focused on serving our Brand Partners and building relationships. I personally host a Skype Chat, 7 days a week, with my top 65 leaders and sellers. Unscripted, regular live zooms for constant communication, transparency and collaboration. Without a doubt this is what fuels our growth.” —Melissa Thompson, BELLAME Beauty Inc. Chief Executive Officer and Founder

“The key drivers for our momentum since 2020 have been to prioritize and focus on as many interpersonal touchpoints as possible. We encouraged small gatherings and culture building events just to get people together. We rolled out our first in-person ACTIVZ Academies and ACTIVZ schools throughout our largest market, Mexico, which had a remarkable spill-over affect into our secondary markets. Focusing on building strong relationships throughout the field and especially with mid-level leaders on up, we’ve greatly benefitted from the unity that’s been created which is now taking our company into momentum.” —Ryan Thompson, Activz President and Co-Founder

“Amare is a true pioneer of the mental wellness movement, and we have an excellent team that is committed to providing clinically researched products that encourage a baseline of both physical and mental wellness and resilience. We are seeing the marketplace respond by rewarding the company with triple-digit growth. We operate in 50 countries worldwide, and believe people everywhere are seeking the solutions we offer. We have a goal of reaching one million homes within the next five years and are well on our way to achieving this milestone.” —Jared Turner, Amare Global Chief Executive Officer

“Our secret sauce is really our agent-centric model, which was designed to withstand varying market conditions. This uniquely positions us to continue investing in our future and iterating on our industry-leading agent value proposition. From the beginning, we have always believed that when you put the agent first, the rest will follow. And in our case, it truly has. It is why we continue to thrive when many of our competitors are not.” — Michael Valdes, eXp Realty Chief Growth Officer

“I would have to say our business model is our secret sauce. The model is continually adjusting itself to market conditions and provides the perfect balance of recurring and new revenue to guide it through all market conditions. It’s the business model that ensured inGroup made it through the COVID years with constant sales and has allowed it to leverage the recovery at a phenomenal rate. —Anthony Varvaro / InGroup Chief Operating Officer

“Our success in 2022 reflected the value of guidance that our sales force brings to middle-income families and the important role they play in encouraging clients to take action. For three consecutive years, Primerica has issued more than $100 billion in term life insurance face amount. And while inflation and market volatility created headwinds, our representatives successfully helped their clients invest $10 Billion in 2022 toward their future financial goals.” — Glenn Williams, Primerica Chief Executive Officer

Content updated from the July/August 2023 issue of Direct Selling News magazine.

The post Industry Superstars: 3 Consecutive Years of Growth first appeared on Direct Selling News.

How the Right Amazon Strategy Can Take You From Pain to Profit.

We have an Amazon problem.

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

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

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

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

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

The Dangers of Letting Amazon Run Wild

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

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

And the complaints won’t stop there because you can’t regulate the quality of products sold this way. You don’t know what claims are being made on the product descriptions, how long it’s been in a hot garage, what the expiration date is or what the packaging looks like when it arrives on the customer’s doorstep. All of this does serious damage to the brand. At the end of the day, an uncontrolled Amazon model violates the integrity of the business model and upends what is supposed to be a fair opportunity for everyone.

Defense and Offense

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

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

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

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

Three Plays to Consider

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

1 / Find a wholesale distributor.

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

2 / Do it yourself.

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

3 / Engage an expert.

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

How to Win

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

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

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

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

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

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

Three industry leaders share their experience tackling AMAZON—the eCommerce Goliath

By Sarah Paulk

It’s likely that every direct selling executive has been in a meeting when someone has asked, “What are we going to do about Amazon?”

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

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

Unauthorized and Anonymous

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

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

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

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

The Amazon Learning Curve

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

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

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

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

Resource vs. Rival

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

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

Frequently Asked Questions

1. What is the BuyBox?
   The Amazon BuyBox is the “Add to Cart” button on Amazon. If you have multiple sellers of an item, the store that gets the sale or gets the BuyBox will rotate based on Amazon Metrics.
2. How do you “Win the BuyBox”?
   The primary metrics that Amazon looks at are who has the lowest price and who is in Amazon FBA. The best way to ensure that you are winning the BuyBox and getting the sale is to ensure that you are the only seller for your brand.
3. What is the difference between Amazon FBA and FBM?
   Amazon FBM is “Fulfilled by Merchant.” This means that when a customer orders, the brand owner is required to pick/pack/ship that product to the customer.
   Amazon FBA is “Fulfilled by Amazon.” This means that when a customer orders, Amazon will pick/pack/ship that product from an Amazon facility.
4. Why is it important to do Amazon FBA?
   Amazon rewards FBA sellers, and it is often a more cost-effective model. Having your products in FBA allows for Prime and Amazon’s quick shipping. It also allows the brand to take advantage of Amazon’s shipping rates and customer service team.
5. What is the difference between Amazon Seller Central and Amazon Vendor Central?
   Amazon Seller Central is the most popular model. In this model, the brand owns the inventory and is paid for it when it sells. The brand has the most control with this model.
   Amazon Vendor Central is when the brand sells it directly to Amazon, and Amazon has control of pricing, etc. 
6. Why is our product not the first one that comes up when we search our brand? 
   This is typically due to other brands advertising and winning the paid advertising space on Amazon. You can control this by running a small amount of defensive advertising. 
7. What is an ASIN, Storefront, Seller Account and A+ Content?
   ASIN is Amazon’s internal identifier code. Similar to a UPC, but specific to the Amazon platform.
   Storefront is a landing page that allows a brand to provide marketing for all of its products.
   Seller Account is the account that is selling the product—the account that owns the inventory and receives the payments from Amazon.
   A+ Content is additional marketing space below the product listing. It is a great opportunity to provide additional brand education to your customers.
8. What is a Sponsorship Guarantee?
   A Sponsorship Guarantee ensures that the brand will provide credit to a distributor if that distributor can prove they lost a customer to Amazon.
9. Does Amazon regulate what you can ask customers and what you can send them?
   Yes. Amazon has very specific rules around how you are allowed to communicate with customers. 
10. What is the average percentage of product returns?
    In the direct sales space, the average return rate on Amazon is under one percent.
11. Do you recommend using the Amazon Transparency Program?
    No. This program has very specific guidelines for how it is applied. Using it incorrectly will put your brand and trademark status with Amazon at high risk. 
12. Do you recommend utilizing the Amazon Subscribe & Save Program?
    Yes. The Amazon Subscribe & Save Program has a great adoption and retention rate. 
13. How do you decide what product you want to sell on Amazon?
    Start with your top selling items and over time expanding to offer your full assortment. Having all your products available from a marketing perspective is important but not necessary Day One. 
14. How do you decide how to price your products on Amazon?
    Price your product 5-15 percent above retail, so that you are not competing with the field for sales. 
15. Who manages the customer service side of Amazon?
    Your agency partner should manage all Amazon customer service and use company guidelines to respond to Amazon customers with the correct information. 
16. Is Amazon good for brand visibility?
    Yes. Amazon is an amazing marketing tool. Aside from the sales opportunity, it is important that your brand have a presence on Amazon to continue to gain exposure. 
17. How long does it take to set up an Amazon account and start selling product?
    When done properly, set up of a new Amazon account can take 7-14 days. You can start selling product with Amazon FBA within 21 days. 
18. How long does it take to clean up an Amazon account and become the only authorized seller?
    This depends on the partner or company that is supporting with this activity. Done correctly, Amazon clean up should take no longer than 90 days.
19. How much work is needed by the Brand Owner in order to launch or clean up Amazon?
    This depends on the partner or company that is supporting the launch. When using the right partner, the Brand Owner only needs to provide images, content and basic product information.        

From the November 2022 issue of Direct Selling News magazine.

The post Cracking the Amazon Code first appeared on Direct Selling News.

Founded | 2014

Headquarters | Southlake, TX

Top Executive | Roger Morgan, Founder & CEO

Products | Pet Products

Our story is one of unconditional love,” said Roger Morgan, Founder and CEO of pawTree. “A story of pets and how they love us unconditionally. This company is an opportunity for us to give back to our pets in ways that they can’t provide for themselves.”

Prior to founding pawTree, Roger was a long-time CEO of a pet supplies company, where the focus was set on keeping prices low in order to appease retailers—which became increasingly difficult year after year. In order to keep prices from rising, Roger found that the quality of the products inevitably had to be lowered. Cutting corners created a true quandary for Roger, as he felt forced to prioritize profit over the wellbeing of their end users: beloved family pets.

“After going through that experience many times with various retailers and realizing how much power they have, I knew I needed to control the quality of these products and not compromise,” Roger explained. “Not through retail stores, but through relationships, where people value the quality of our products as much as I do. I knew direct selling would be the natural sales channel for this concept. It would allow me to uphold the quality of the products while delivering outstanding results alongside people of like mind.”

With that realization, Roger set out to create a business that allowed pet parents to make better nutritional choices for their pets—and let the results speak for themselves.

The Happiness Business

To reciprocate the unconditional love that pets give to their owners, Roger carefully assembled a top-tier team of veterinarians and a PhD in Animal Science and Pet Nutrition to formulate the best line of pet products on the market. pawTree sought to develop products with no fillers or by-products—just nutritionally-dense food and nutritional supplements containing the highest quality ingredients and antioxidants. This holistic approach to pet nutrition would allow pets to thrive, while also acting as a proactive measure to avoid excessive and costly vet visits.

And just like that, pawTree was born: a company devoted to creating phenomenal products for healthier pets and happier hearts and homes. In addition to pet food, the product assortment includes toys, grooming and training products—each crafted with the same commitment to quality. The idea of unconditional love was woven into the fabric of pawTree, starting with their brand vision: To create a world filled with unconditional love where pets and their people thrive.

“When pet parents introduce our products, they see a transformation in the lives of their pets, as well as their own,” Roger said. “Because just like with our two-legged babies, when our pets are happier and healthier, we’re also happier. That’s why we say we’re in the happiness business. The pet feels amazing, and the pet parent feels amazing because they truly made an impact on the life of their pet. It’s a win-win!”

Director of Customer Support and Field Development Tami VanHoy agreed, “We get to help pets live their best lives, which makes the corporate team happy, too. And because pet parents see the difference in their pets after using pawTree products, our customer loyalty and retention is very strong. These are passionate pet people, so once they realize that better products exist, they become life- long customers.”

Leading the Pack

Since pawTree launched in 2014, the company has carved out a unique niche in the direct selling space. With beauty and nutrition largely dominating the industry, pawTree’s focus on premium pet products is a differentiator that has helped generate brand loyalty—from corporate to consumer. Their commitment to unconditional love doesn’t hurt either.

The entire corporate team is at the heart of the company’s success. With a shared vision, they view pawTree not as a job but as a way to make an impact. They’ve assembled a strong team across all departments.

Though pawTree’s home office leadership team has grown over the years to support the business, Roger reports zero turnover. “Our management team has the same loyalty as our customers do to our brand. We have attracted executive team members who were CEOs, founders and top earners from other direct selling companies, a product specialist from a top-tier competitor and so on. They see the impact we’re making on the lives of pets and people and have a shared commitment to our vision statement. Collectively, we see it unfolding in the lives of pets and people literally every single day.”

Director of Sales Melissa Davis agreed, “What makes the biggest impact in the lives of people and pets alike is the same thing: unconditional love. You see that in everything we do and in the quality of our product line. We get results! And when pet parents see those results, they become life-long customers, which also fuels our compensation plan and drives success for our petPros. The residual commission is very sticky and strong.”

Thanks to these factors, retention in field leadership is also very high. The team is comprised of a strong base of individuals in the field who joined in or near the beginning, and pawTree continues to add to that talented team as more people continue to join.

Sharing the Love

In pawTree’s eight years of business, they have launched a steady flow of new and innovative products, including the “Core 4,” which are flagship products that proactively address nearly 80 percent of the reasons pet parents take their fur babies to the vet. Core 4 consists of four products (Wild Alaskan Salmon and Pollock Oil, Gastro Pro Plus, Joint Support Plus and CBD Mega).

Based on their innovative products and impressive growth, pawTree has collected several prestigious awards over the years. The company won the Harvard Business School Regional New Venture Competition (where Roger also earned his MBA) and a DSA Rising Star Award. pawTree was also named to the Inc. 5000 Fastest-Growing Private Companies in America list in 2021, having experienced 271 percent growth over the previous year. In addition, Southern Methodist University’s Cox School of Business named pawTree to its coveted Dallas 100 Entrepreneur Awards list for two years due to its rapid growth.

With all of pawTree’s success, Roger and his team remain focused on the brand vision, which naturally lends itself to giving back. pawTree’s philanthropic partnerships are perfectly aligned with their products and philosophies. For instance, pawTree has partnered with Smoky Mountain Service Dogs (SMSD), a non-profit organization that enhances quality of life for wounded veterans by providing custom-trained service dogs at no cost to the veteran.

“Our organizations share a vision of making a difference not only in the lives of pets, but also their people!” explained pawTree’s Director of Consumer Marketing Tammy Roseborough. “SMSD recognizes the impact that a service dog can have on a veteran who faces challenges due to military service. We chose them as a strategic partner because we personally visited, spoke with veterans and saw the unconditional love these dogs and veterans have for each other. The service dogs who support those who have served our country deserve to have the best. That’s why we have provided free dog food and supplements to these canine partners—so they can live long, healthy lives. pawTree and SMSD are a perfect fit because we are both driven by love and service.”

DFW Rescue Me is another non-profit partner that pawTree wholeheartedly supports. “They are a wonderful local pet rescue that we have partnered with over the years by providing free food and other pet products,” Roger shared. “They are our official rescue, and they even attended our pawTree launch party in 2014. My family was so enthralled with their rescue animals that we adopted one of them on the spot! DFW Rescue Me shares our passion for connecting people and pets, which makes for a meaningful partnership.”

Sit and Staying Power

Despite COVID-19, pawTree managed to double their business in 2020—and again in 2021. The company is on track to double their sales again this year. In addition, pawTree’s top income earners consistently break new sales records on a near-monthly basis. To maintain this upward trajectory, Roger is excited to add to pawTree’s already robust product offering with strategic product launches over the next five years. But even so, Roger brings the focus back to the reason he started pawTree to begin with: unconditional love.

“Our brand attracts a broad group of people who love their fur babies—plus breeders, groomers, pet sitters, dog walkers and more,” Roger explained. “But the one thing we all have in common is our passion for pets and a desire to see pets’ and peoples’ lives change for the better. People are emotionally connected to their pets, so when we help them, we also help a pet parent.”

Roger concluded, “Some people think selling pet food is what we ‘do.’ And while we sell premium pet nutrition, that’s not even close to what we ‘do.’ Thanks to this industry, what we ‘do’ is impact pets and people in a positive and profound way—as of last year, we were able to touch over 260,000 of them. That’s why pawTree exists. That’s what we ‘do.’ And we do it with love.”

From the September 2022 issue of Direct Selling News magazine.

The post pawTree: for the Love of Pets first appeared on Direct Selling News.

You’ve spent serious money for quality research and production teams. You’re sparing no expense to hire the best minds for your executive team. You pay big dollars for technology expertise. But your intern is shooting video at your national conference and photographing your top team members with her iPhone?

We get it. Creative talent isn’t cheap, and as technology becomes more sophisticated and more affordable, it’s tempting to cut marketing corners. But while your intern may know how to use “portrait” mode on her cell phone, does she know when or if she should use it?

Skimping Leads to Inconsistency in Your Brand

“You can’t replace artistry with technical competency,” says Noah Westerlund, Senior Vice President of Business Development for Success Partners. And therein lies the difference between pros and amateurs: Professionals shape and tell a brand story with their tools. Amateurs let the tools shape and tell the stories for them. “This business is driven by storytelling and enabling your distributors to tell stories effectively. Why would you skimp on the story?” says Westerlund.

Studies show that 90% of all consumers expect their brand experience to be consistent across all platforms and devices. Building on that, 71% of users who have a positive social experience with a brand will share that experience and recommend the brand to others.

The lesson learned? Your visual brand is the face of your company to customers, distributors and prospects. It’s too important to leave in untrained hands.

Creativity on a Budget

Money, especially for startups, is tight. So how do you get the high-quality images, video and graphics you need for a clear, polished visual brand without breaking the bank?

Don’t try to create it all at once, Westerlund advises. “Decide on a few key components and do those things really well rather than do five or six things in a mediocre way.” It will cost more than pennies. A startup should expect to spend between $25,000 and $50,000 for basic deliverables, like a website and one or two product videos, he says. But the photographs on your brochures and video on your website and social pages are the first impression you won’t have a second chance to make, experts say. Don’t waste the opportunity.

“The quality of photography will directly influence the perceived value of your product,” says Annette Ferraro, a professional commercial photographer in Columbus, Ohio, and owner of Annette Ferraro Photography. “If a consumer or client isn’t immediately sold on an image he or she will not engage with your content and will simply move on.”

Westerlund agrees. “When poor design is at its most egregious, the prospect is going to look at it and say, ‘This is not something I have faith in.’” There are even long-term consequences to not investing in quality brand creative, Westerlund says. “I’ve seen so many startups make that mistake. And when you start out cheap you’re fighting that uphill battle for years to come.” Because eventually you’ll want to rebrand but people will be loyal to the original one “even if it was amateurish boring” and the change will be painful.

Creative Licenses

If you can’t afford a high-end designer or a whole design team, at least invest in a solid brand style guide, Westerlund says. “Then you can hire kids out of design school to execute on that style guide.”

Outsourcing also is a great way to get strong creative content without the payroll expense of top talent. That’s the path Roger Morgan chose from day one in 2014 when he founded pawTree, a Southlake, Texas-based pet product direct selling company.

As a past CEO of a multinational pet products company, Morgan understood the value of high-quality visual content—“especially at the beginning when you’re not a known brand.” Prospective salespeople and customers are not going to take a chance on a company or product if the brand doesn’t look reputable or high-quality, he says.

But as a start-up—and even now—PawTree couldn’t afford to hire the expertise it needed full time. So it has one in-house marketing director who manages teams of freelance creatives who handle everything from product photography to video production to logo design. And the company doesn’t always need a stable of designers, either. “Outsourcing gives us the ability to flex up and down with the resources,” Morgan says.

It’s an Investment in Your Brand

There are situations in which taking the amateur path makes sense, especially on the social networking front, says Ferraro, who has many small-brand clients whose visual brand strategies thrive on a mixture of professional photos and cell phone captures. Because their customers want to know as much about the owners as people as they do about the company’s products—and they want that information in real time—a bit of leeway in brand consistency and polished images for every post is okay. These small brands are still deliberate about their branding choices, and they still use professional images to showcase their final products in ads and on their websites.

“Investing in a professional may seem expensive,” Ferraro says, “but it will boost your brand, save you money and time, eliminate frustrations, and positively impact sales.”

3 Reasons to Outsource to the Pros

Pick up the printed issue in which this article is found.

Because cameras and design software have become more feature-heavy in addition to user friendly, they have made it easier for the average person to produce decent pictures as well as graphics. While the differences between professional and nonprofessional work are sometimes subtle, they’re important.

Annette Ferraro, a professional commercial photographer, points to three technical advantages that professional photographers and videographers bring:

1. Proper lighting. “How are you supposed to effectively communicate the message of your brand if your customer can’t even see what you’re selling?” she asks. Lighting mistakes are easy for non-pros to make, she adds, because they haven’t spent years mastering the concept of light.
2. Post-production expertise. The default image setting on phone cameras and most DSLR cameras is JPEG—basically a photo file for dummies, automatically correcting exposure and color, for example, and finalizing the photo. But if the subject is not well-lit to begin with, for example, there’s only so much the auto-correct process can do. And even if an amateur knew how to set the camera to take correctable RAW images (the digital equivalent of a film negative), chances are he wouldn’t have the photo editing tools or skills to make those images suitable for publication—and for your brand.
3. A new perspective. Professionals can see your products and people in a way you may never have looked at them before. They can position and frame them to emphasize their best qualities.

The post The Affordable Technology Trap first appeared on Direct Selling News.

He became a student of the direct selling channel and has since expanded the company into all 50 U.S. states. Over the past year or so, the company has begun to hit its stride thanks in part to the introduction of a food seasoning product that allows people to add variety, and boost nutrition, to their pets’ meals. Direct Selling News had an opportunity to speak with Roger Morgan about his company’s progress. Below is a portion of that conversation.

Roger Morgan

DSN: Let’s start by talking about one of the most unique offerings in pawTree’s catalogue, pawPairings. How did the product come to be?

RM: It’s an important part of our growth and our story. The phrase we use that really seems to resonate with people is, “You don’t like to eat the same thing every day and neither do your pets.”

For people who have pets, we almost all feed them the same thing every single day. There are reasons for that: Pets get digestive upset very easily, and when you start mixing things up, their stomachs react poorly and we end up with messes on our hands. People learn quickly and they stop changing the food.

Talking about pawPairings is usually the first conversation we have with people. Once they try that product, it’s an entry to many other products and solutions that we have to offer. We think of it as the tip of the spear.

DSN: It’s a product that might need a little bit more explanation than some of the other things in your product line. How does the direct selling model help in terms of introducing it to customers?

RM: It does resonate when people hear the story, and most people would never consider it if they just saw a bottle of something on the shelf at a retail store. The product is also very demonstrable. Our petPros are having a lot of success showing a video on their Instagram or Facebook pages. They’ll show a video of them putting the seasonings on the pet food and watching how excited the pets get to have variety in their meal plan, because it just gets so boring eating the same thing literally every day.

This product story has a one-two punch. The one is all about variety and giving pets some excitement at meal time. The two is that all of our pawPairings include eight super foods and a vitamin and mineral pack that goes into every one, and so it’s also very nutritious.

DSN: In addition to the use of video, your petPros also have had success with a sampling program. Tell us a little more about how that program works.

RM: We call our sales approach TSA, for “talk, share, ask.”

First, we talk dog and cat. People who have pets will totally resonate with that concept. When you find somebody who has a pet, you just immediately go to that level, “Oh, let me see a photo of your pet,” or “Let me tell you this story about mine,” or “look at this cute video.” You talk dog and cat.

As part of the “talking dog and cat,” you make the lead-in comment, which is, “You don’t like to eat the same thing every day and neither do your pets. Here are some seasonings you can put on your pet food, would you like to try this? And I’d love to call you tomorrow or the next day and see what Fluffy thought about it.” So that’s the share.

And then the ask is just a follow-up, one to two days later, with the question, “How did Fluffy like it?” And, of course, we always get a resounding, “Wow, Fluffy loved it. That was amazing.” Then the follow-up to that is, “Well, great, would you like to buy some for Fluffy?”

That’s how our sampling program has worked. Also, it’s a smaller product and pretty easy to mail, so you can have a Facebook conversation or a text conversation or a phone call with somebody who is in a different geography and easily follow this same process.

Some of our products are appropriate for certain pets in certain circumstances, but not all pets in all circumstances. An example might be our Joint Support Plus. That’s a really good product for obviously any pet that has joint issues. It can even be used proactively for those pets that don’t right now have joint issues. But not everybody finds a need or sees an immediate benefit.

With pawPairings, every dog and cat can benefit from that product. It doesn’t matter what food you’ve chosen, you can sprinkle this product on top of it. It really opens the conversation to anybody with a pet. And when a pet parent sees how much their fur baby enjoys it, and they know it’s healthy for their pet, they have an interest in buying.

DSN: Now that you have such a replicable process in place, what are some of the things that you’re focused on in terms of the business strategy as you head deeper into 2018 to continue to grow and expand pawTree’s reach?

RM: It’s one of the things I’m most excited about because, as you said, we’ve really narrowed down and simplified and focused on what we call “The One Thing.” Our “One Thing” is pawPairings. So, in 2018 our customer incentive campaigns are all around pawPairings. Our petPro incentive campaigns are all around pawPairings. Our product trainings are all around pawPairings. Our initial conversations that petPros have with customers are all about pawPairings. We’ve really focused our messaging, our training, our strategy, our incentives, our conversations, all around The One Thing.

DSN: When you founded pawTree, you did not come from a traditional direct selling background. You came out of more of the traditional bigger-box pet retail environment. What are some of the things that you’ve learned along the way?

RM: Direct selling is so much fun and so rewarding. I’ve learned this is a people business and I absolutely love these people. One of the things I’ve experienced is the incredible passion that exists in this space. It’s a really exciting convergence of two industries because the pet industry is also really passionate. People who have pets love their pets. They get so excited about their pets. People who are in direct selling, they love their companies and the products they represent. So you combine two very passionate categories into one and you get these fireworks that go off.

Another thing that I’ve learned is what a powerful sales channel direct selling is for sharing stories. pawTree is a story of unconditional love, and our story is being shared over and over in an incredibly powerful way that could never happen through traditional retail stores. My vision for what we’re building at pawTree and what motivates me as a person at this stage of my career is helping to create more happiness in the world. I believe that love is the key to happiness. Our vision statement is to create a world filled with unconditional love where pets and their people thrive. It is really, really exciting to watch that happen.

The post pawTree’s Roger Morgan Talks Dog and Cat first appeared on Direct Selling News.