January 2022 Direct Selling News by directsellingnews

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DIRECT SELLING NEWS

VOLUME 18 / ISSUE 1

JANUARY 2022

DOUBLING DOWN ON DIGITAL /

ESSENTIAL TECH FOR DIRECT SELLING SUCCESS PROTECT YOUR COMPANY /

HOW TO AVOID MISCLASSIFICATION LITIGATION

INFINITUS /

ROOTED IN TRADITION, WINNING WITH SCIENCE BEMER /

WHAT

CHANGING THE GAME IN HEALTH & WELLNESS

WORK LOOKS LIKE NOW OFFICE CULTURE IN A POST‑PANDEMIC WORLD

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C O N T E N T S J A N UA R Y

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F E AT U R E S

Doubling Down on Digital B Y WAY N E M O O R E H E A D

Take Steps to Protect Your Company B Y J O H N C .C . S A N D E R S , J R , K AT R I N A E A S H A N D D I O N J . R O B B I N S

32 50

SPOTLIGHTS

Infinitus:

Rooted in Tradition, Winning with Science

B Y B E T H D O U G L A S S S I LC O X

Bemer:

Enhancing Performance, Impacting Longevity

B Y J E N N Y V E T T E R

DEPARTMENTS

WORKING SM ART /

Seven Tax Considerations for Direct Sellers B Y

SHARA SUMNALL AND JOE HILLSTEAD

NEW PERSPEC TIVES /

The Story that Changes Everything

B Y

KINDRA HALL

I N EV ERY ISSU E 6 AD INDEX // 9 FROM THE PUBLISHER // 11 INDUSTRY NEWS // 28 FORWARD THINKING // 79 DSA MESSAGE // 80 SUPPLIER DIRECTORY //

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Reimagining Office Culture in a Post-Pandemic World

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BY SAR AH PAULK

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The Future’s So Bright… THE NEW YEAR IS UPON US—I always look forward to this time of year when I can set new goals for myself both personally and professionally. It’s a time when everything seems possible. We’re definitely taking advantage of this feeling at Direct Selling News as we put together our plans for the coming year—we’re excited to share some of the new ways we will be connecting and communicating with you in the coming months. There’s lots of energy and enthusiasm on our team, and we are poised to make 2022 our best year ever. Stay tuned! This month’s magazine gets the new year off to a strong start. In our cover story, we take a look at what work looks like in a post-pandemic world. How are the solutions we had to craft on the fly in 2020 now making our teams stronger and more effective? We cover best practices and next steps in this indepth feature. Wayne Moorehead doubles down on digital in another feature this month. What are the technologies that we, as a channel, need to focus on now and next? Wayne decodes this challenging puzzle with his insights on this ever-evolving topic. You’ll come

away with practical advice and action items to drive your initiatives in the coming months. If you want to help your staff, your field or yourself change limiting beliefs into unlimited potential, make sure to read the article by Kindra Hall in this issue. And we have another can’tmiss feature on what steps you can take to protect your company from misclassification lawsuits and how pending legislation could impact your company in the short and long term. At DSN, we always want to be your daily resource for global news impacting the direct selling channel. I invite each of you to sign up for the weekly dashboard email which delivers a week’s worth of news in a quick 15-minute read each Sunday. You can also sign up for text alerts by becoming a member of our VIP community where you’ll always get our top stories first and fast.

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The Month in News Affecting Our Channel 12 / Recent Expansions 14 / Insights 16 / News Watch 16 / In Memoriam 17 / Executive Announcments 24 / CCR Program

/ INDUSTRY NEWS /

E X P A N S I O N S

R ECENT E XPAN S I O N S FABERLIC LAUNCHES OPERATIONS IN UNITED STATES Europe-based Faberlic will now expand its market reach to the United States. Currently the company operates in 44 countries with more than 10 million

LIFEVANTAGE LAUNCHES

customers and 100,000 distributors.

IN THE PHILIPPINES

“Our mission is to help everyone become the best version of themselves, and

LifeVantage Corporation has officially opened operations in the

we fulfill that through our product offerings, our business opportunity and our

Philippines through its Philippine subsidiary Protandim Philippines

social and environmental engagement,” said CEO Konstantin Barmashov.

Corporation. With this addition, LifeVantage now has on-the-

Faberlic’s reputation for charitable activities is also expected to expand to the U.S. with its new operations. As part of its commitment to environmental

ground operations in more than 20 countries. “We are so excited that our international expansion now

responsibility and social awareness, the company has planted 10 million trees,

includes the Philippines,” said LifeVantage President and CEO

donated material and psychological support to 10,000 young mothers and

Steve Fife. “We look forward to sharing our wellness products

distributed 15 million units of sanitizers during the COVID-19 pandemic.

and business with all Filipinos across the 7,000 plus islands that

“We believe that contributing to society and the environment is an important aspect of personal growth for every distributor,” Barmashov said. “We will bring

make up the Philippines nation, and inspiring them to create a personal legacy and help others do the same.”

this spirit of contribution to our new operations in the United States.”

U N I T E D S TAT E S

SOUTH AFRICA

KANNAWAY TO OPEN OPERATIONS IN SOUTH AFRICA Kannaway, a direct selling subsidiary of Medical Marijuana, Inc., announced it has begun the process of launching operations in South Africa. Leading this expansion will be Country Manager of South Africa Duduzile Mathole, a direct selling industry veteran with experience in the local and regional regulations of South Africa regarding cannabis. “I am confident that Duduzile will be a great addition to our team and is more than capable of helping us establish and grow our operations in South Africa and throughout the region,” said Kannaway CEO Blake Schroeder. “We’ve found great success as a company thus far because of our talented, dedicated team around the world, and I know that Duduzile will be a great addition to our team. When I joined the company in 2016, I could have never imagined the significant international expansion that we’ve achieved, and I’m excited about the many new regions we plan to enter in the coming years.” South Africa’s cannabidiol market has grown since the country made CBD available for purchase without a prescription last year. The Department of Agriculture, Land Reform and Rural Development estimate South Africa’s CBD market to be worth $1.9 billion USD and is projected to create 25,000 jobs.

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PHILIPPINES

COMING SOON

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

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I N S I G H T S

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

INSIGHTS

LegalShield’s Economic Stress Index Shows Impact of Rising Inflation

urchasing power is shrinking for prospective buyers as record-high home prices feed inflation. At the same time, LegalShield’s Housing Construction Index recently showed the steepest decline on record (7.8 points) as homebuilders manage supply chain and labor challenges. This decline, as well as a decrease (-7.7 percent) in residential permits in September, suggest that homebuilding activity is unlikely to rebound in the near future. “Our data reveals that members are shifting their focus away from real estate and home purchases and toward consumer finance, employment and landlord/tenant advice from our network of law providers,” said Jeff Bell, CEO

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of PPLSI, parent company of LegalShield. “There’s more pressing matters on their minds with rising inflation, federal aid and loan and eviction moratoriums expiring.” Inflation is also restricting consumer spending, as prices rise on essential goods and services, and the data shows that inflation-adjusted disposable income has decreased five of the last six months. This may lead to increased usage of short-term financial tools, which will impact the consumer stress index in 2022. Favorable employment trends are cushioning some positive developments amid inflation, and bankruptcies and foreclosures continue to remain at historically low levels. DSN

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I N

M E M O R I A M

IN MEMORIAM

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

NEWS W AT C H

Hughes built a multimillion-dollar global enterprise that

TOP

helped revolutionize the herbal and natural

HEADLINES >

wellness industry.

Nature’s Sunshine Co‑Founder Gene Hughes

ene Hughes, the co-founder of Nature’s Sunshine Products, passed away at the age of 91. From a small, family-owned business that began with encapsulated herbs sold to health food stores, Hughes built a multimillion-dollar global enterprise that helped revolutionize the herbal and natural wellness industry. Hughes, along with his wife Kristine and family, found a market for their products among complementary and alternative healthcare practitioners across the country and spread their mission to more than 40 countries worldwide. “Loved by both his immediate family and all of his Nature’s Sunshine family, Gene will be dearly missed, and his legacy will continue to leave an impact across our business,” said Nature’s Sunshine Chief Executive Officer Terrence Moorehead. “Gene loved this company, and his personal interactions with consultants and employees forged relationships around the globe.” Hughes served as the company’s first president and remained active within the Nature’s Sunshine family throughout his life. “Gene dedicated his life to helping others discover greater wellbeing and opportunity through Nature’s Sunshine,” Moorehead said. “We will continue to honor his life and memory through our efforts to share nature’s healing power with the world.” DSN

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Newsweek Names Tupperware One of America’s Most Responsible Companies Medical Marijuana Q3 Net Revenue Reaches $9.2 Million Nu Skin Provides 750 Million Meals through Relief Program eXp World Holdings Named in Deloitte’s List of FastestGrowing Companies in North America New Survey Reveals Customer Onboarding Trends and Challenges to Expect in 2022

For the full articles, visit directsellingnews.com/ announcements/

EXECUTIVE ANNOUNCEMENTS

Dr. Andreas Boettcher

Cara Whitley

Chris Brya

General Manager of Science, PM-International PM-International, AG has appointed Dr. Andreas Boettcher to the role of General Manager of Science. Dr. Boettcher is a chiropractic physician with training in sports medicine, nutrition and sports performance and experience in product formulation within the direct selling industry. “We are very pleased to gain Dr. Boettcher as a valuable new member to our management team”, said Founder and CEO Rolf Sorg. “His expertise and understanding of nutrition, sports medicine and wellbeing will surely bring new insights to our product research and development, which will benefit all of our customers and partners.” Dr. Boettcher will now contribute to the research and product development for the company and join the company’s Scientific Experts Team.

Chief Marketing Officer, PPLSI PPLSI, the parent company of LegalShield and IDShield, welcomed Cara Whitley as the company’s new Chief Marketing Officer. Whitley has more than two decades of experience in marketing, branding, strategic partnerships and business development and has held executive roles at major corporations. “Cara brings a tremendous digital, loyalty and retention acumen and her brand work in revitalizing Century21 is proof of her extraordinary capabilities,” said Jeff Bell, CEO of PPLSI. “We are proud to have her join our leadership team and lead us through a continued marketing and brand transformation.” Whitley will now oversee the company’s marketing, advertising, media planning and buying.

Vice President of Digital Marketing, Plexus Plexus Worldwide announced Chris Brya will join the company as Vice President of Digital Marketing. Brya has more than two decades of experience in digital marketing and will now help amplify the company’s digital presence and optimize business performance. “Thanks to his many years leading digital teams and growing companies worldwide, Chris will provide a fresh perspective as our company continues to grow,” said Travis Garza, President of Sales and Marketing for Plexus Worldwide. “We’re confident that his proven leadership skills will make a positive impact on our company’s marketing strategy and further optimize [the] Plexus user experience for our customers and Brand Ambassadors.”

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Kristin Frank Board of Directors, Beachbody The Beachbody Company, Inc. announced Kristin Frank, the Chief Executive Officer of AdPredictive, will join the Beachbody Board of Directors. The board is now comprised of seven directors, four of whom are independent. “Kristin is an exceptional leader who brings more than 20 years of data-driven marketing and digital media expertise to Beachbody’s Board of Directors,” said Carl Daikeler, Beachbody’s Co-Founder, Chairman and Chief Executive Officer. “Her deep expertise and unique perspective will be a valuable asset as we continue to strengthen our brand recognition and further scale our business. We are committed to ensuring good corporate governance with a board that includes strong independent directors as well as diverse and complementary sets of experiences, perspectives and backgrounds.”

Miguel Gutierrez Vazquez Sales Director of Mexico, Kannaway Kannaway, the direct selling subsidiary of Medical Marijuana, Inc., announced it has appointed Miguel Gutierrez Vazquez as the new Sales Director for its Mexico operations. “2021 has been an exciting year for us as we have added pedigreed leaders to our international team,” said Kannaway CEO Blake Schroeder. “I feel confident that Miguel will be another great addition because of his extensive experience and well-established relationships in Mexico. Our family of companies has been a pioneer in cannabidiol (CBD) sales in Mexico for many years as we were the first to secure legal import permits in Mexico in 2016. Latin America has always been a significant area of growth and revenue for us, and we believe it will continue to be so under his leadership.”

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E X E C U T I V E

A N N O U N C E M E N T S

For the full articles, visit directsellingnews.com/ announcements/

Beatrice Nelson Beer

Charla Gervers

Judith Hammerschmidt

President, Seldia The European Direct Selling Association, Seldia, announced Beatrice Nelson Beer has been elected President. Beer is the Chief Legal Officer for PM-International as well as global head of legal, regulatory affairs, compliance and human resources and will now serve as chair of the Seldia Board of Directors for the next three years, succeeding Philippe Jacquelinet, the CEO of Captain Tortue. With this appointment, the Seldia Board of Directors is now genderbalanced, with five women and five men, including Secretary Generals of the Dutch, French, Italian, Spanish, Swedish and Baltics Direct Selling Associations. “Direct selling is changing and so is Seldia,” said Laure Alexandre, Seldia Executive Director. “Direct sellers in the EU are 79 percent women. The Seldia team is all women, and our board of directors also now evolves to reflect this. With the regulatory and societal changes ahead, I very much look forward to working with Beatrice for the next three years.”

Vice President of Field Development, Scout & Cellar Scout & Cellar announced the appointment of direct selling industry veteran Charla Gervers to Vice President of Field Development. Gervers has more than two decades of experience working with social selling companies through all phases of strategic growth— from startups to multimilliondollar companies. “The ideal candidate for this role is a strategic thinker and planner with a deep understanding of fueling people through purpose and passion,” said Sarah Shadonix, Founder and CEO of Scout & Cellar. “Charla meets this profile given her extensive expertise in the industry, and proven ability to be agile in meeting the dynamic needs of the field. Her valuable approach to coaching, training, planning, empowering and inspiring make her a fantastic addition to the Scout & Cellar team.”

Board of Directors, NewAge NewAge, Inc. announced the addition of Judith Hammerschmidt to its board of directors. Hammerschmidt brings more than three decades of experience in corporate law to the role, as well as an extensive understanding of international nutritional supplement and food laws, direct selling regulations worldwide and the required approval processes for nutritional supplements, nutraceuticals and cosmetics. “Judy has an impressive background, having spent many years as outside counsel and as a board member helping companies expand in highly regulated industries,” said Brent Willis, NewAge’s Chief Executive Officer. “We enthusiastically welcome Judy to our board and look forward to drawing upon her broad experience as we continue our growth and expansion for the benefit of our many stakeholders.”

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Julie Hunter Vice President of Legal and Compliance, Amare Global Amare Global announced the appointment of Julie Hunter to the role of Vice President of Legal and Compliance. Hunter will now lead legal, regulatory and corporate affairs and provide strategic counsel to the company’s executive team and distributors. “We are grateful to add a leader of Julie’s caliber and experience to our executive team,” said Amare Chief Executive Officer Jared Turner. “I’ve worked alongside her for many years. Her character, expertise and leadership will be an invaluable asset to Amare as we grow both domestically and internationally.”

Jarom Webb

Scott Alred

Dave Wall

Ben Tyler

ASEA Strengthens Executive Team ASEA announced changes and expansions to its current executive team as part of a strategic move to position the company for future growth. “We have every confidence that these expanded roles and the organizational changes accompanying them will allow ASEA to more aggressively enter its next phase of growth,” said CEO Chuck Funke. “We are extremely fortunate that these changes were all made with highly talented and trusted executives from within the organization.” n Current President Jarom Webb will expand his role on the Board of Managers as Vice Chairman and will now oversee the strategic direction of the company and support long-term growth. n Scott Alred will take on the role of president while continuing as COO, overseeing ASEA’s science, regulatory and product development. Alred will also provide global infrastructure growth support and focus on the direction of the company’s operations. n Dave Wall will continue as CFO, directing the company’s finance department but will now also offer support to IT and human resources and ensure these teams align to support future growth as Executive Vice President. n Ben Tyler will retain his role as the corporate secretary for the ASEA Board but will also be promoted to Chief Legal Officer. With this advancement, Tyler will increase his focus on risk management and imperatives and oversee the company’s legal, international development and associate conduct and education. “I’m excited about these changes,” says Founder and Chair Tyler Norton. “Just as importantly, I am grateful to Jarom, Scott, Dave and Ben for their contributions going back to our earliest years and the expanded roles they are taking on to drive ASEA’s future growth.” DSN w w w. d i r e c t s e l l i n g n e w s . c o m 2 1

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C U S T O M E R - C E N T R I C

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CCR

G O L D

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U C

CCR

P L A T I N U M R

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

Distributor—someone who

DOES have a distributor agreement in place

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

Active is defined as each

customer and distributor must have made a product purchase during the last six months. Active customer and distributor counts are limited to those in the U.S. and Canada. Companies must have been

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R E C O G N I T I O N

Direct Selling News is excited to present the Customer-Centric Recognition (CCR) Program to celebrate companies that are leading the way toward a customer-centric future for the industry. Qualifying companies utilize business models that boast high customer-to-distributor ratios and prioritize customer sales.

in business for at least one year and have a minimum of $5 million in annual revenue. Qualifying companies must attain: 5:1 up to 10:1 for Gold status and 10:1 or more for Platinum status.

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IRECT SELLING COMPANIES with a strong retail base of satisfied customers are experiencing impressive growth and deserve recognition and acknowledgment for

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M E TAV E R S E ? - E V E N T S

Ready to Enter the Metaverse? Why Facebook’s drastic shift toward the metaverse matters to direct selling.

BY DAVID LEE

ETA. That’s Facebook’s new name. While it might take a while for it to stick in the minds of the platform’s nearly 3 billion users, there is a massive online shift happening, and the world’s largest social media platform aims to be far ahead of the curve. Meta, as a prefix, means “transformation” or “occurring in succession.” Facebook’s name change signals the company’s focus on the coming evolution of the internet: The metaverse. So, what is the metaverse exactly? Think of it as the internet powered by virtual reality and augmented reality. “If the contemporary internet experience is two-dimensional—meaning you browse and scroll through it on a screen—the metaverse is 3D. You’ll be ‘walking’ through it via connected headsets or glasses,” explains an article by Quartz.com. No one owns the metaverse, just like no one owns the internet, but Meta aims to create the world’s largest and most robust metaverse platform. It might sound like something out of Ready Player One or The Matrix, but the focus is on providing a virtual, interactive platform that connects people and allows them to create. The evolution to come will have major implications for the direct selling industry that relies so much on social platforms for networking, growing business and creating culture.

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“We basically think of the metaverse as the successor of the mobile internet, in the sense that the mobile internet didn’t completely replace everything that came before it,” Meta Founder and CEO Mark Zuckerberg said in a press briefing. “It’s not that the metaverse is going to completely replace something that comes before it. But it’s the next platform. In that sense, it’s not a thing that a company builds. It is a broader platform that I think we’re all going to contribute towards building in a way that is open and interoperable.” Evolutions in technology have launched entire industries and created revolutionary creative and economic opportunities. Meta’s shift to existing in the metaverse deserves the direct selling industry’s attention, as it certainly could change the way people interact online; buy and sell products through e-commerce platforms; as well as how they shape their online persona.

The Metaverse is Already Here

Trying to understand the metaverse is akin to trying to understand the internet in the early 1990s. It’s not meant to replace the internet, and the augmented reality aspect connects the physical and the virtual. We’re already seeing several examples of these ideas, and they are changing the way people behave from entertainment to business.

META’S SHIFT to existing in the metaverse deserves the direct selling industry’s attention.

Whether it’s an Ariana Grande concert in the video game Fortnight; BMW announcing its new car in the game Rocket League; or the rise in augmented reality mobile games such as Pokémon GO and Roblox, physical and virtual worlds are connecting across many industries. But you don’t have to be a hardcore gamer to understand how these technologies and digital experiences could impact the direct selling industry. Let’s look at some of the key features for Meta’s plans that could impact the industry to most.

QUEST HEADSET / First, many metaverse features will require Meta’s virtual reality headset. The current iteration, the Oculus Quest, will give way to the Meta Quest, planning to drop in 2022. The Facebook Portal video device will be rebranded “Meta Portal” in early 2022. Still, many of the most robust metaverse features likely won’t launch for a few years.

HORIZON HOME / This essentially will be a user’s hub in the metaverse. It’s where you begin your experience, similar to your computer’s desktop. You will be able to invite people to watch movies, play games, listen to music or just hang out with each other’s virtual avatars. HORIZON WORLDS AND HORIZON WORKROOMS / These features allow users to build virtual environments, throw virtual parties, hold virtual office meetings or just go exploring. Businesses can construct their own virtual office and interact with employees or co-workers. “The metaverse also could be a game-changer for the work-from-home shift amid the coronavirus pandemic. Instead of seeing co-workers on a video call grid, employees could see them virtually,” explained an Associated Press article.

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How quickly people will adapt to connecting in a virtual metaverse will determine how businesses pivot to capitalize on the shift in attention and behavior.

Zuckerberg said the company is developing the ability for people to login with a business account separate from a personal account. Horizon Workrooms already exists in correlation with the Oculus VR headsets. “I’m genuinely optimistic about work in the metaverse. We know from the last couple years that a lot of people can effectively work from anywhere,” Zuckerberg said in a video announcement. “But hybrid is going to be a lot more complex—when some people are together and others are still remote. So, giving everyone the tools to be present no matter where they are, whether it’s a hologram sitting next to you in a physical meeting or in a discussion taking place in the metaverse, that’s going to be a game-changer.”

Direct Selling in the Metaverse

Imagine hosting virtual opportunity presentations complete with slides or videos in a digital atmosphere you create that’s in line with your brand and message. Distributors may be able to host product demonstrations, recipe examples or lead workouts in a virtual world. Conventions in the future may have virtual components. Virtual fashion shows can show off new distributor swag, putting spectators right by a runway. Awards and forms of recognition or rank advancement can exist virtually for distributors to display. A pin or ring in the physical world may exist as a custom avatar in the metaverse.

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From a corporate standpoint, virtual office meetings can help reduce the need for commuting to work, which can help reduce stress and save people time. Participants may be able to watch the same presentation, or a product demonstration, and can seamlessly interact with others in the meeting. Of course, you’ll be able to do this from nearly anywhere, which connects with one of the direct selling industry’s most enticing benefits of running your own business on your own time. The terms “solopreneur,” “freedompreneur” or “mobilepreneur” could have new meanings. As an example, eXp Realty already uses its eXp World for virtual reality meeting rooms, networking opportunities and trainings, complete with avatars. Zuckerberg also teased a metaverse marketplace where people can buy digital art, clothes and perhaps even virtual real estate. Of course, this opens new possibilities for the application of crypto currencies or other forms of non-traditional currencies. People may be able to sell their own forms of digital products and experiences directly to others. This also should grab the attention of the direct selling industry, especially since it’s built on developing and leveraging individual relationships. Distributors may be able to send customers a virtual gift or invite them to a virtual seminar. Doing business in a virtual world may be difficult to wrap your head around right now, but this evolution seems inevitable. How quickly people will adapt to connecting in a virtual metaverse will determine how businesses pivot to capitalize on the shift in attention and behavior. DSN

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DOUBLING DOWN ON DIGITAL THE TRENDING TECHNOLOGIES ESSENTIAL FOR DIRECT SELLING SUCCESS

BY WAY N E MOOREHEAD

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THERE IS A SIGNIFICANT AND POWERFUL EVOLUTION HAPPENING RIGHT NOW IN THE CHANNEL.

Direct selling is blending with the

direct-to-consumer space and it is changing two very important dynamics in the industry: The nature of our relationship with consumers and the nature of competition itself. >

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25% LESS THAN

There are many simple and powerful platforms to choose from. Getting on an e-commerce platform should be high priority.

SELLING NEWS

ARE ON A MODERN E-COMMERCE PLATFORM.

E-Commerce

RADITIONALLY, the relationship with the consumer has been managed by distributors. Companies have had limited ability to influence consumer behavior, both pre- and postpurchase, but those interactions are changing through a myriad of touchpoints across platforms and sales channels. Now, brands interact with customers every day, and we can no longer abdicate this responsibility or hand off the customer relationship. Instead, it must be owned. Our capabilities to market and connect with consumers have increased, shifting us into the realm of direct‑to‑consumer, but the reverse is true as well. Direct-to-consumer brands are now realizing the power and potential of social selling, and are introducing their own commission structures and incentives for sharing their products. While our products might not compete next to direct-to-consumer brands on store shelves, they are certainly competing in social feeds. It’s getting more difficult to cut through the clutter to win the share of mind and share of wallet that we all want. This is driven, in part, by a change in customer behavior, but mostly, it’s being driven by technology. To succeed in this new direct selling world, we need to fully leverage and prepare for these technologies. Consider how you can implement these digital strategies to scale an even greater relationship with customers through connection and customization.

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Having an effective e-commerce platform today is table stakes—it’s no longer an option. Today’s consumers are not willing to endure unnecessary friction to simply purchase a product. Our customer experience should have the same ease and convenience as every other site they purchase from on a daily basis. Recently, I spoke to several Chief Information Officers in the channel and, by their estimates, less than 25 percent of companies in direct selling are on a modern e-commerce platform. There are many simple and powerful platforms to choose from, such as Shopify Plus, Magento, Skava and others, so, if you haven’t done so, getting on an e-commerce platform should be high priority.

AT THE END

70% OF 2021,

OF WEB TRAFFIC

WAS COMING FROM

MOBILE

AND

ABOUT HALF OF ALL E-COMMERCE SALES HAPPENED THROUGH A

MOBILE

DEVICE.

“

Thinking ERP? Think Squire.

Live commerce, or video commerce, is going to be the most important trend and have the biggest impact on direct selling.

A NetSuite implementation from Squire is unique:

Social Commerce

Prior to 2020, most of our companies were using social media platforms as part of our marketing strategies to build community. But today, most platforms are integrating purchase capability directly into their apps, so that the entire end-to-end shopping experience can happen without ever leaving the platform. This comes from awareness and product research, all the way down to product reviews and, ultimately, conversion. While Facebook and Instagram haven’t yet integrated the ability to finalize a purchase directly on the platform, they’re working hard on it, and it’s only a matter of time before it is reality.

We take the time to understand your business goals and processes. Only then do we create a custom NetSuite solution that will meet your unique business needs.

Video Commerce

Live commerce, or video commerce, is going to be the most important trend and have the biggest impact on direct selling, in my opinion. By 2026, it will represent ten to 20 percent of all e-commerce according to McKinsey. TikTok is leading the way through its new partnership with Shopify, with links in bio, fast checkout and integration with social payment tools. Within the next few years, this is how I believe most of our field will market and how most of our customers will purchase.

NETSUITE IS THE WORLD’S MOST DEPLOYED CLOUD ERP SOLUTION

M-Commerce

At the end of 2021, 70 percent of web traffic was coming from mobile and about half of all e-commerce sales happened through USAGE OF TAGLINED a mobile device. Not only are distributors growing and managing LOGOS their businesses almost exclusively from their phone offices, but One-tagline version of full color logo The tagline "AUDIT.TAX.ADVISORY" customers are increasingly engaging with our products, services, only accompanies the logo in circumstances where context website and content through aclarification mobile about device. We requires need to ensure what Squire can do for current and potential customersto enable that we, as companies, have the right tools internally (the audience). this. Our sites must be responsive and we must have progressive For example, Squire.com and its Secondary-tagline subsequent web pages web apps and mobile optimized content. We feature needthetooneempower our tagline version (HIGHER version of full color distributor force with mobile tools, such as theofNOW Technologieslogo PERSPECTIVE ONLY) the Squire logo because the subpage content app, and allow distributors to onboard, throughout thecommunicate, site provides adequatesample and context to visitors. sell all from the convenience of their phones. On the other hand, if the team attends a national financial trade show where Squire should differentiate itself from a neighboring financial software company, then trade show banners need to include the tagline, “Audit-TaxAdvisory.” Treat the secondary tagline like it’s part

One-tagline version of white logo

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netsuite.squire.com ( 801) 225-6900

AUDIT · TAX · ADVISORY

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What AI is really doing is driving a more personalized digital shopping experience. Influencer Marketing

Distributors are micro-influencers in their own right, but engaging influencer marketing at a medium or macro level can have a huge impact on generating awareness and positioning the brand. This must be intentional and targeted though, and we should establish a few key verticals or categories that our products play in that best represent the brand, and then partner with influencers and subject matter experts in those areas. Tracking these types of campaigns through tools like Tagger, Billo and Tracker will help ensure that the partnership is positioning the brand correctly over time.

Artificial Intelligence

Chatbots, product recommendations, upselling and cross-selling make a big impact, but what AI is really doing is driving a more personalized digital shopping experience. In this vein, companies need to determine their best approach to managing a customer’s experience on Amazon. Amazon is now the second-largest search engine and it’s often the buyer’s first stop. It has an enormous impact on the brand experience and we have to engage with it. Inconsistent brand messaging in regard to multiple price points, varying product quality and a poorly managed Amazon experience can make a brand a mess. This experience should be owned by the company to firmly anchor a retail price point, position the brand properly, enhance positive reviews and ultimately ensure that customers have a positive overall experience.

Immersive Commerce

Many brands are creating cool and unique shopping experiences through virtual reality and augmented reality. This may look like walking through virtual stores to experience products, or, like Young Living has done, allowing customers to visit the company farm. While the full potential of these technologies is still yet to be realized, there is plenty of potential for new ways that customers can experience a brand in exciting, cutting-edge ways.

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Performance Marketing

In today’s world, we have to pay for results, whether those results are traffic, views, leads or sales. Unpaid posts are no longer getting the reach and engagement they once were, and performance marketing is now imperative. To accommodate this change, marketing departments need to be organized somewhat differently as well. We still need a dynamic and capable field marketing team and we need a performance marketing team that is digitally driven. These teams may have vastly different skill sets, but they need a shared mindset that supports distributors’ sales efforts and provides value to customers.

Marketing Automation

Tools like HubSpot and Marketo can streamline and simplify some of the most time consuming and potentially repetitive marketing tasks by sending out automated messages to distributors and customers based on their behaviors. Automating these actions nurtures relationships and helps move customers and distributors further down their paths.

Play to Your Strengths

It’s important to remember that all of these trending automations are not in conflict with distributor efforts. In fact, these tools and strategies enable us to partner even more closely to build the brand and drive additional sales volume within their organizations. This is such an exciting time to be part of direct selling. We understand social selling better than any other channel, and we know how to truly bring personalization to purchasing. With these technologies, we can continue to do what we do best, but at an even greater scale. DSN WAYNE MOOREHEAD has deep experience in marketing and brand strategy. He has applied his expertise and passion to help companies (from startups to Fortune 100) define, communicate and activate their brands. Wayne’s rare blend of experience and success has shaped his philosophy on effective growth strategies, and he believes the future of the channel will blend the best of direct selling with the best of direct-to-consumer.

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REIMAGINING OFFICE CULTURE IN A POST‑PANDEMIC WORLD

BY SARAH PAULK

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L M O S T T W O T U M U LT U O U S Y E A R S L AT E R , L I F E AT T H E O F F I C E B A R E LY R E S E M B L E S T H E R I G I D N I N E -T O - F I V E T E M P L AT E T H AT H A S D E F I N E D W O R K P L A C E C U LT U R E F O R G E N E R AT I O N S .

To stay in the game, companies must offer flexibility and a category of benefits workers didn’t feel empowered to ask for previously,

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The pandemic ushered in a rapid acceptance and adaptation of a new way to work, and as teams learned to collaborate virtually, industry leaders watched in real-time as productivity and efficiency didn’t falter, and, in most cases, actually improved. But after months of supply chain challenges and geographic restrictions, the pandemic had another alarming surprise up its sleeve: An unprecedented labor shortage. In September 2021 alone, more than 4.4 million workers walked off the job. With this trend, dubbed the “Great Resignation,” companies are now seeking to hire from a pool of talent that has significant leverage. To stay in the game, companies must offer flexibility and a category of benefits workers didn’t feel empowered to ask for previously, like the opportunity to build their careers and spend more time with their families (all while wearing comfortable pants).

With new metrics in hand of how remote and hybrid work can positively impact the bottom line, executives now have the opportunity to reshape what work could look like for their employees and independent workforce. But will the direct selling channel be willing to reimagine and reinvent itself—not just for the field but for corporate employees as well?

Trust and Flexibility Go Hand-in-Hand

At Scentsy, the approach to developing a work model for its knowledge worker base has radically transformed. Their once one-size-fits-all on-campus corporate model has become a customizable framework, tailored to each department and individual manager. “I would say Scentsy was a place that was not massively conducive to flexible work options prior to the pandemic,” said Mark Stastny, Scentsy Chief Marketing Officer. “Coming out of that, our worldview changed and forced us to put in place not only tech solutions but also a level of cultural shift and trust.”

“

Hybrid meetings are still not very fun, but what we learned is that we could trust it. — M A R K S TA S T N Y / S c e n t s y C h i e f M a r k e t i n g O f f i c e r

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We now tend to try and schedule meetings for a shorter time and then schedule another one, if needed.

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When it was deemed prudent to return to company headquarters, each department was able to choose what worked best for their team.

— M A R K S TA S T N Y / S c e n t s y C h i e f M a r k e t i n g O f f i c e r

The New Office Etiquette Stastny says Scentsy’s default corporate mindset previously assumed that creating a collaborative culture that seamlessly functioned across team boundaries required people to sit in the same conference rooms. When the company was forced to send much of its knowledge workforce home and learn to utilize technology more productively, the corporate team discovered that collaboration could not only happen digitally, it also made everyone better communicators. Meetings became more intentional with the purpose made crystal clear, and catch-all conference room invites were ditched in favor of looping in only those absolutely necessary to make the decision. When it was deemed prudent to return to company headquarters, each department was able to choose what worked best for their team. For some, naturally migrating back to an in-office structure made the most sense. For others, leaning heavily on remote work was more efficient. The result has been a healthier culture that attracts the right talent. “What we saw was productivity increased, and people were actually happier in some ways relative to the flexibility it gave them in their lives,” Stastny said. “Hybrid meetings are still not very fun, but what we learned is that we could trust it.”

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MONAT, who recently made the decision to end the lease on its legacy office while it constructs a new distribution and office facility in suburban Miami, has gone to a “default-remote” model and relies on technology platforms like Miro, which provides virtual whiteboarding in the meantime. The company’s remaining facilities are now only utilized for high-value, in-person gatherings. This caveat is something that many companies, even those who have gone fully remote, continue to find to be true: That there is tremendous transparency of thought that can only come from watercooler banter, non-verbal communication and the contagious energy of a successful group brainstorming session. The lessons of the last two years, however, have taught executives how to better run those gatherings, whether virtual or in-person, by more skillfully wielding existing integrated technology. “With a proliferation of meetings once informal information sharing in the office was no longer an option, it forced a discipline around focusing meeting attendance, being intentional with who is included in emails, and reinforced a focus on each team member’s specific contribution to each initiative,” said Jacob McLain, MONAT Senior Vice President and Chief Strategy Officer. Forced time out of office gave leaders the chance to reevaluate the system of work, measuring with fresh perspective the ROI on even subconscious office etiquette—like how much time is automatically blocked off for meetings in a group invite.

“We’ve learned that all meetings don’t have to be one hour just because it’s a convenient scheduling mechanism on our digital calendar,” Stastny said. “We now tend to try and schedule meetings for a shorter time and then schedule another one, if needed. It forces us to drive toward that decision in a shorter time frame.” What’s more: Executives have discovered that some decisions shouldn’t be made in meetings at all, whether virtual or in-person. “Meetings, if not managed properly, can be a lazy way to get business done,” Stastny said. “If you understand accountabilities and who decision makers are within the organization, there are much more efficient ways to make decisions and move the business forward than to get 12 to 14 people in a room and have a discussion about it.”

Permission to Play

Distributors were not exempt from the pandemic’s workplace challenges. While the majority of direct selling companies had already turned to online events and Facebook groups rather than partybased gatherings prior to regional shutdowns, distributors still had to find new pathways to reach customers when living rooms and coffee shops were no longer an option. For Scentsy consultants, messaging platforms became the surprisingly powerful tool of choice for interacting with the field and inviting customers to engage with the products.

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“It’s almost like the bulk of the energy of the party has shifted to that messaging platform,” Stastny said. “Yes, there is usually a linked Facebook party, but it’s happening on the text platform.” Like the corporate office team, distributors and their customers have also spent the last two years evaluating their relationship to work, friendships and day-to-day tasks, like shopping, and how they want each category to fit into their lives. Receiving shopping content through a message, rather than a real-time virtual or in-person shopping event, allows customers the flexibility to absorb and act on the information whenever it is convenient for them. “We’re always looking for ways to make customer contact and engagement as efficient as possible,” Stastny said. “There has to be an efficiency gain in there for why people are wanting to receive content that way, and that has caught us by surprise.” With this understanding, a digital-first approach is now non-negotiable for every element of business, from onboarding to customer service. Training, product guides, shipping details, upline communications—all touchpoints need to be mobile-friendly. For MONAT, that has meant capturing the advantage that comes from relational selling and activating it through digital resources. “Mobile tech will be permission to play in our channel,” McLain said. “Many companies purchase technology and adapt their business to the technology, but we are taking the inverse approach. We are building bespoke technology that leverages the learnings from the pandemic around customer trial, conversion and engagement, as well as Market Partner skill development and pivoting those to a digital-forward approach.”

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Mobile tech will be permission to play in our channel. — J A C O B M C L A I N / M O N AT S e n i o r V i c e P r e s i d e n t & Chief Strategy Officer

Rebooting Normal

In many ways, the last two years felt like building the plane while flying. The circumstances demanded a mad dash to assemble and construct new organizational infrastructure without much preparation or the comfort of familiar rhythms, and many within the retail and service industry crumbled under the weight of these tasks. And while the direct selling industry, with its remote distributor workforce and established e-commerce platforms, was arguably better prepared than other industries, it was not without hurdles.

Personalizing digital connections to create distributor intimacy and customer loyalty over tech‑enabled platforms is the next frontier for the industry.

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FABULOUS PARTY MANAGEMENT

“Retail is declining; e-commerce is hypercompetitive and plays in a space of consumers who switch brands impulsively,” McLain said. “Our channel will need to bear in mind our competitive advantage—personal connection—but provide the tools for our distributors to drive that connection outside of parties, workbooks and team meetings. Digitizing what has been effective for decades should be front of mind for all of us in the channel.” Personalizing digital connections to create distributor intimacy and customer loyalty over techenabled platforms is the next frontier for the industry, according to McLain. Showing up digitally will mean significant investments in mobile and e-commerce technology, but in a world that is rapidly embracing a digital-only work environment, it will be a prerequisite for success. As the world crests what will hopefully be the final challenging hill of this pandemic, the industry now has a chance to reflect on lessons learned about how to design a healthy and productive office culture and then reboot what “normal” will look like from now on. “Scentsy has always had the value that we want people to be meaningfully engaged in work, but we don’t want work to be everything to them,” Stastny said. “I think that dynamic, which has been around for some time, has been accelerated through what we learned through COVID. Regardless of what happens post-pandemic, we will never go back to what it was like before.” DSN

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TA K E ST EPS TO PROT ECT YOU R COM PA N Y DIRECT SELLER MISCLASSIFICATION LITIGATION IS ON THE RISE. HERE’S WHAT YOU NEED TO KNOW.

BY JOHN C.C. SANDERS, JR., K AT R I N A G . E A S H & D I O N J . R O B B I N S

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IRECT SELLING COMPANIES RELY ON AN EXPANSIVE FIELD OF

INDEPENDENT DISTRIBUTORS TO SELL THEIR GOODS AND SERVICES. THAT FIELD IS THE LIFEBLOOD OF DIRECT SELLING COMPANIES. BUT RECENT LEGAL AND LEGISLATIVE DEVELOPMENTS ARE PLACING THE INDEPENDENT CONTRACTOR STATUS OF THESE DISTRIBUTORS AT RISK AND EXPOSING DIRECT SELLERS TO LITIGATION THAT THREATENS TO UPEND THE WAY THEY DO BUSINESS. HERE, WE ADDRESS THE BEST WAYS TO PROTECT YOUR COMPANY FROM A MISCLASSIFICATION LAWSUIT.

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Ask your general counsel if you have an arbitration agreement and class action waiver.

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IRST, WE DISCUSS your company’s primary means of reducing exposure to distributor misclassification claims—an enforceable arbitration agreement and class action waiver. Second, we discuss the rising trend of various states enacting legislation authorizing representative actions that are immune from arbitration agreements and class action waivers. And third, we identify ways your company can make sure it is prepared to fight representative actions in those states where arbitration and class action waivers alone will not defeat misclassification lawsuits.

Arbitration Agreements with Class Action Waivers Are a Must

First, every direct selling company must have an enforceable arbitration agreement and class action waiver in its distributor agreements. In addition to being effective tools to defeat class action claims in general, these provisions are very effective at both discouraging and defeating misclassification lawsuits brought by a purported class of distributors (excepting representative actions, which we will discuss later in the article).

An enforceable arbitration agreement allows your company to quickly dismiss class litigation brought in court and force the distributor bringing the claim to litigate in private arbitration, where you can utilize your class action waiver to prevent all class claims. In most cases, when plaintiffs’ attorneys cannot bring misclassification claims on a class basis, the claims are not economically feasible to prosecute and the cases promptly settle for a very low sum. Ask your general counsel if you have an arbitration agreement and class action waiver. If the answer is “no”, immediate consideration should be taken to adding one. Typically, however, direct sellers do have these provisions. The next step is to ensure your provisions are enforceable under the law applying to your distributor agreement. There are many ways to attack an arbitration agreement, so we recommend retaining sophisticated counsel to ensure your provisions are enforceable. Some of the issues we see frequently that could render your arbitration agreement unenforceable are:

/ UNENCUMBERED, UNILATERAL modification rights.

2 / ARBITRATION PROVISIONS that could be considered unconscionable under the laws of certain states.

/ CONFLICTS BETWEEN DIFFERENT PROVISIONS of the various agreements that govern distributors (e.g., the policies, the terms and conditions, the application, etc.).

Representative Actions Are on the Rise in California and Could Be Coming to Other States Soon

Unfortunately, an enforceable arbitration agreement and class action waiver only get you so far. That’s because states like California have enacted legislation allowing representative actions on behalf of the state, in which distributors argue they have been improperly classified. Importantly, these actions are not subject to arbitration or class action waivers—that is, companies cannot quickly and efficiently dismiss these representative actions in court and force individual arbitration. At present, California’s Private Attorney General Act (“PAGA”) is the only statute that has been enacted allowing representative misclassification actions. And in the past two years, we have seen multiple direct selling companies sued under PAGA.

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Eliminate Unnecessary Control from Your Distributor Agreements to Limit Your Exposure

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One basic issue always remains the same: Control. In these cases, the plaintiffs generally allege they have been misclassified as independent contractors instead of employees. The plaintiffs contend they are entitled to employee status, and as such, they demand minimum and overtime wages, meal periods, rest breaks, itemized wage statements, reimbursement for necessary expenditures, workers’ compensation insurance, among other benefits typically provided to W-2 employees. Importantly, the plaintiffs are not seeking recovery solely on their own behalf; rather, they generally seek recovery for all current and former allegedly misclassified California distributors. Although California is the only state to have enacted such legislation at present, at least the following states are attempting to enact similar legislation: New York, Massachusetts, Vermont, Washington, Maine, Connecticut, Oregon and New Jersey. In all these states, if the legislation is pushed through, distributor misclassification actions under the law will be exempt from arbitration and class action waiver agreements. For direct sellers, these broad representative claims loop in thousands of distributors, depending on the state in which they are brought, thus exposing direct selling companies to expensive, bet-the-business litigation. Given this threat, the question then arises: What can companies do to protect themselves?

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Although states and various regulatory bodies have different rules and requirements controlling whether a distributor is misclassified, one basic issue always remains the same: Control. Does the company exercise so much control over the way its distributors operate that the relationship is more akin to an employer/employee than an independent contractor? If the answer is no, you’ve won a significant portion of the battle, if not the whole battle. For companies facing representative actions alleging distributor misclassification, the company must prove, among other things, that it does not exert so much control over the affairs of its distributors that they should be classified as employees. To be sure, eliminating areas of control is a careful balancing act. Distributor agreements should be revised to eliminate control where possible, while at the same time ensuring the company is protecting itself from regulatory and other legal threats. Here are some things to consider:

/ CONTROL SHOULD PROTECT ONLY LEGITIMATE COMPANY INTERESTS The authority you retain to exercise control over your distributors should be for the purpose of protecting a legitimate company interest. For example, companies can impose obligations to protect their brand and reputation from tarnishment; to prevent the disclosure of their confidential information; to comply with regulatory requirements, including those barring misleading product, income and lifestyle claims and to reduce other potential legal exposure. But broad reservations of rights that exert control over distributors’ work practices and daily activities could signal to an adjudicator that the distributors are not in reality independent contractors.

2 / REMOVE INDICIA OF A TRADITIONAL

EMPLOYMENT RELATIONSHIP Indicia of an employment relationship can appear in unexpected contract provisions that may seem to have nothing to do with whether a worker is an

ARBITRATION AGREEMENT and class action waiver.

2 / ELIMINATING ALL UNNECESSARY CONTROL

FROM YOUR DISTRIBUTOR AGREEMENTS, while still maintaining those controls that are necessary for regulatory compliance and the operation of the business. To those looking for help with these issues, we would be happy to assist you. DSN

celebrates companies that are leading the way toward a customer‑centric future for the industry. Qualifying companies utilize business models that boast high customer‑to‑distributor ratios and prioritize customer sales.

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CCR G O L D

MER CEN D E C T O G N I Z E TO R S

CCR

1 / ENSURING YOU HAVE AN ENFORCEABLE

The Customer-Centric Recognition (CCR) Program

independent contractor or an employee. For example, many direct sellers use robust restrictive covenants that seek to restrict distributors from working with competitors. Such restrictions may be seen as an exercise of employerlike control and, in states like California, may run against the assumption that an independent contractor is customarily engaged in similar work for multiple hiring entities. For more information on restrictive covenants in distributor agreements, please see our article, Protect Your Company from Downline Raiding at directsellingnews.com or in the October 2021 issue of Direct Selling News. The balance for eliminating control, while still protecting your company, is a difficult one to find, but counsel experienced in these issues can help you. The direct selling industry will almost certainly see more independent contractor misclassification litigation in the coming years. Make sure your company is prepared by:

Be Customer‑ Centric Recognized.

P L A T I N U M R

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

D E C O G N I Z E

n Distributor—someone who DOES have a distributor agreement in place n Customer—someone who DOES NOT have a distributor agreement in place n Active is defined as each customer and distributor must have made a product purchase during the last six months. Active customer and distributor counts are limited to those in the U.S. and Canada. Companies must have been in business for at least one year and have a minimum of $5 million in annual revenue. Qualifying companies must attain: 5:1 up to 10:1 for Gold status and 10:1 or more for Platinum status.

JOHN C.C. SANDERS, JR. Founding Partner—Dallas

KATRINA G. EASH Partner

DION J. ROBBINS Associate

WINSTON represents dozens of direct selling companies in a wide range of disputes and consulting matters. The firm has successfully defeated class actions alleging pyramid schemes and securities claims, enforced non-compete and non-solicitation agreements against departing distributors, prosecuted individuals violating intellectual property rights, and counseled clients on regulatory compliance issues and publicity crises. The firm also regularly advises direct selling clients undergoing government investigations, including those brought by the FTC.

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Submit Your CCR Program Application Today

DSN DIRECT SELLING NEWS

Companies who wish to learn more or submit a CCR Program Application can go to www.directsellingnews.com/ achievements/ccr-program/ or contact editor@directsellingnews.com

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INFINITUS /

Rooted in Chinese Tradition, Winning with Science Infinitus Straddles Two Worlds. BY BETH DOUGLASS SILCOX

T ITS CORE, traditional Chinese medicine focuses on preventing disease. There’s always been a

push and pull between the tenets of this Eastern methodology and the treatment-centric focus of Western medicine, but companies like Infinitus straddle both worlds in their quest to develop quality products that meet people’s diversified needs for health, beauty, youth, vitality and quality of life.

FOUNDED:

1992 HEADQUARTERS:

Guangzhou City, Guangdong Province, China TOP EXECUTIVE:

Lam Yu, Infinitus Global CEO H E R O P R O D U C T:

Infinitus Health Tonic CO R P O R ATE E M PLOY E ES:

More than 3,000

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OVERSEAS TRAINING GROWS INFINITUS BRAND, CULTURE & INFLUENCE

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PA R T I C I PAT E A N N U A L LY

TO IMPROVE PARTNERS’ online operation capabilities, Infinitus provides a series of online courses and tool skills training, as well as a special Overseas Training Program for outstanding distributors. The annual training program combines conference seminars, cultural exchanges, and sightseeing trips to showcase the Infinitus corporate culture and brand image to the world, as well as expand the company’s overseas influence. Launched in 1996, the Overseas Training Program has visited more than 40 countries and regions. Over 10,000 people participate annually. Currently, there are four themed overseas training programs, including Seminar with Glory, Seminar with Scenery, Seminar with Motivation and Seminar with Determination.

When they launched in 1992, Infinitus took a health and wellness track, advocating for excellence in Chinese wellness traditions and seizing opportunities to promote the Chinese medicine health industry. They used the Chinese health culture as the theoretical basis for research and development of high-quality Chinese herbal health products, while utilizing modern technology and Western methods to conduct research and development, demonstration, extraction and processing to make Infinitus products more effective and more appealing to the health and wellness needs of multiple consumer personalities.

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Today, Infinitus is positioned as a high-quality Chinese herbal health product company within the health food, skin care, personal care and household categories, offering seven major brands and more than 200 products in total. They have two production bases in Xinhui and Yingkou comprised of hundreds of acres, as well as more than 30 corporate offices in Hong Kong, Shanghai and other metropolitan centers and a newly completed headquarters in Guangzhou, China. Infinitus operates within a hybrid business model that includes direct sales, plus 30 branches, 30 service centers and about 7,000 specialty stores and studios in mainland China as well as online platforms like WeChat, websites and apps to carry out service consultation, marketing promotion and product sales. E-commerce cloud merchants and distributors can utilize all these options to introduce products and consult with consumers before and after sales. All told, Infinitus employs more than 3,000 people. In 2020, Infinitus earned a “China Best Employer Award” and then found themselves in the company of well-known, global businesses

Theirs was the first composite polysaccharide, Chinese herbal health product and it was quickly recognized and favored by consumers. In the years since, Infinitus Health Tonic has racked up numerous awards and was ranked as the number one Chinese herbal immunomodulatory health food in 2019 by Euromonitor Information Consulting (Shanghai), a world-renowned research and consulting organization.

Proudly Rooted, Meticulous and Compliant

like McDonald’s, Marriott International and SAIC GM when they earned Top Employer China 2021 certification. This comes as a result of excellent human resource benchmarks, management, strategies and practices including personal and professional employee growth plans, creating a better workplace environment and enabling company-wide long‑term and sustainable development.

Launching a Hero Product

But this storied history all began nearly 30 years ago with the launch of what would become their hero product—Infinitus Health Tonic. Capitalizing on more than 20 years of research conducted by Professor Xianxiu Xian of what is now China’s Southern Medical University, Infinitus brought to market Infinitus Health Tonic in 1994. Utilizing Dr. Xian’s development of “composite polysaccharide,” a combination of pure, natural ingredients extracted from plants and fungi-active polysaccharides, the Health Tonic’s blend was found more effective in enhancing immune system function than ingesting a single polysaccharide.

China’s health food industry has undergone a decades‑long evolution bringing about healthier and steadier product development, segmentation in consumer demand that has increased cross-industry competition, as well as online and offline integration development. These and other trends provide both opportunities and challenges. Yet, Infinitus is proud and thankful to be rooted in the excellence of the thousands-year-old Chinese wellness traditions, as they continue implementing a forward‑looking business development strategy. “By reviewing, we found that the health concepts embodied in the Chinese wellness traditions, such as treatment of disease, holistic view, physical and mental coherence, etc., coincide with the current needs of health preservation, and our original choice is still in line with the trend of the times,” Lam Yu, Infinitus Global CEO, told the 2021 China Special Food Conference. Today, companies need to be more intensive and meticulous, Yu explained, and they must strengthen consumer insights and services in order to grasp the needs of different groups and fields. Infinitus, like other upstanding health and wellness direct selling companies doing business in China, is actively promoting industry compliance as a way of evolving to meet the needs of their marketplace and as a follow-up to the country’s 100 Day Review of the nutritional supplement industry. Previously short-sighted, bad and illegal behaviors by some companies affected not only famous health food brands but also product markets, reputations and the operating efficiency of the entire industry. Since 2017, Infinitus has set June 16th each year as the “6·16 Infinitus Norm Management Day,” hoping to set an example for the public in corporate norm and shape w w w. d i r e c t s e l l i n g n e w s . c o m 5 9

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an industry image of integrity and self‑discipline; to help practitioners establish a correct view of employment, strengthen their awareness of standards, strengthen standardized behaviors and continue to gain customers’ recognition; standardize themselves so that consumers can truly understand product efficacy and information, enjoy honest and high-quality services and worry-free after- sale guarantee. This edict should come as no surprise to those familiar with the corporate culture at Infinitus which is based upon the core phrase “Si Li Ji Ren,” when translated into English means “considering everyone’s interest before taking action.” Infinitus emphasizes taking a helicopter view, thinking from others’ perspectives and caring about other people’s feelings. They’ve built a philosophy that produces steady brand growth thanks to effective communication channels between customers and the company, as well as the ability to take rapid action in response to ongoing market changes, collect feedback from the sales force to better meet their needs, cultivate high trust and efficiency that enhances participation and create a sense of belonging that promotes win-win situations.

Primary, Productive Forces for Success

Science and technology are the primary, productive forces behind the success of Infinitus. They consider scientific strength a weapon for winning in the marketplace, and technology permeates all aspects of Infinitus’ research and development, production, sales and service. Cooperative research partners at University of Cambridge, for instance, used advanced molecular biology technologies to study the effects of active ingredients in Chinese herbal medicines. Their discoveries provided a new research direction, analytical methods and targets for in-depth study of anti-aging product development, as well as valuable insights for future anti-aging product efficacy. Infinitus invested about 300 million yuan ($47 million U.S. dollars) in 2018 to build the first smart Chinese herbal oral liquid production line, receiving 17 patents along the way. The high degree of automation and information technology that powers it allows Infinitus to realize full-process automation from unpackaging, preparation, filling, sterilization, light inspection, packaging and storage.

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It speeds production and increases per capita production capacity, while ensuring the quality stability of batch production, reducing manual intervention, the intermediate links of product production as well as direct contact between product and environment, resulting in higher standards of hygiene. In the five years from 2020 to 2024, Infinitus will invest a total of 3 billion yuan ($471 million U.S. dollars) in scientific research. The COVID-19 pandemic accelerated the shift of consumers purchasing online. Paired with 2020’s growth in China’s social e-commerce sector surpassing 70 million and the expectation of China’s health service industry to climb to 16 trillion yuan (approximately $2.5 trillion U.S. dollars) by 2030, the integration of online and offline business has become an irreversible trend. So, in 2019, Infinitus rolled out a new business model that included e-commerce and then prioritized digital transformation as 2020 began. Through the use of technology, they sought to break down all barriers to creative thinking and adopt innovative approaches to reinvent direct selling. They launched digitally through Enterprise WeChat to fully maximize operational efficiency so that a distributor only needs a cell phone to acquire a lead, convert into a buying customer, conduct follow up sales conversion, and provide business support. The e-commerce business model is working for Infinitus, who touts more than one million distributors who have chosen the Easy Earn model of social e-commerce in the past two years. The company plans to invest 3.4 billion yuan (approximately $526 million U.S.) in digital transformation and brand building. By grasping the current social e-commerce dividend, finding the right marketing model and inspiring business potential, Infinitus is accelerating its pace toward achieving its mission and creating a whole new series of growth points. DSN

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G R O U P

BEMER GROUP /

Enhancing Performance, Impacting Longevity BY JENNY VETTER

n the human body, healthy circulation is everything. The intricate highway of veins, arteries and capillaries that runs throughout our bodies moves

nutrients, waste and chemicals from one destination to another. When circulation is compromised, poor blood flow can cause inflammation and other health issues. Exercise and nutrition are critical to healthy circulation, but the researchers at BEMER Group have proven there’s

FOUNDED:

1998 HEADQUARTERS:

Carlsbad, CA TOP EXECUTIVE:

another way to dramatically improve the circulatory system. And it only takes 16 minutes a day.

Albert Bosch, North American CEO PRODUCTS:

PEMF Devices

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Fields and Frequencies

Pulsed electromagnetic field (PEMF) therapy is one the best-kept secrets amongst athletes, holistic practitioners and veterinarians, but hasn’t quite made it onto the main stage in the health and wellness arena. The BEMER Group is ready to change that. BEMER stands for Bio-Electro-MagneticEnergy-Regulation. Since 1998, the scientists and researchers at BEMER have been focusing on PEMF technology, utilizing electromagnetic fields through specific waveforms and frequencies to stimulate various systems throughout the body. The BEMER team harnessed the power of PEMF and developed a proprietary signal designed to target the circulatory system. Its flagship product, the BEMER device, delivers a patented bio-rhythmically defined therapeutic signal that temporarily improves circulation, which can result in a better supply of oxygen and nutrients, as well as better disposal of waste. Basically, it works with the body to make circulation more efficient. The latest application of the BEMER signal targets microcirculation within muscle tissue. These tiny “micro-vessels” are small in size but huge in the responsibility they have in supporting healthy tissues. The device consists of a “b.box” control unit and various applicators for both full-body and targeted local use. Users either lie on the full body mat or

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choose the area of the body they want to address with the smaller applicators. The device delivers the patented BEMER signal for eight minutes in each session; two daily sessions are recommended. BEMER offers several editions of the device, including Homeand Go-Editions. “We consider ourselves to be the only physical vascular therapy device that exists on the planet that actually accomplishes this (regulation of blood flow at a local level),” shared Albert Bosch, North American Chief Executive Officer of BEMER Group. “We have a protected multiple patented position in a class of our own within the global PEMF market.” Bosch is newer to BEMER, joining the company in September of 2019; but has deep experience in the network marketing industry, holding leadership positions at It Works! and Tupperware over the last 25 years. He joined BEMER at a critical time—not only on the advent of a global pandemic, but also as the company was navigating a new level of FDA clearance.

Its flagship product, the BEMER device, delivers a patented bio-rhythmically defined therapeutic signal that temporarily improves circulation, which can result in a better supply of oxygen and nutrients, as well as better disposal of waste.

“

We have a protected multiple patented position in a class of our own within the global PEMF market. — A L B E RT B O S C H / No r t h A m e r i c a n C E O

Originally a Class I medical device, BEMER pursued Class II clearance to differentiate themselves from their competitors and become the first FDA-cleared PEMF device of its kind. Bosch and his team were faced with a challenging clearance process, delayed in large part by the pandemic and FDA timing. “Our move from Class I to Class II went less smoothly than expected, but fortunately, all was cleared up with the FDA and every applicator for the BEMER PEMF systems has now been cleared,” Bosch explained. “BEMER is the only FDA-cleared Class II medical device in the range of low frequency-low intensity. What this means is we are at a low enough power to be safe but also demonstrate efficacy.”

Distributors and Ambassadors

The BEMER field is made up of over 20,000 distributors. These dedicated users have experienced life-changing results—from better sleep to faster recovery, increased energy levels and reduced discomfort. “Over the two years that I’ve been here, we’ve spent a lot of time really differentiating ourselves,” Bosch explained. “We have a three-pronged approach to our strategy right now. We’re moving (our focus) towards preventative lifestyle changes versus aging customers with ailments. That’s our wellness focus. “The second channel is all about performance enhancement and recovery—athletes, trainers and physical therapists. The last one is our equine focus: horse owners, handlers, trainers and veterinarians.”

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In addition to distributors, the BEMER team has recently added a new avenue of sharing the benefits of their technology with the world. The company has partnered with over 30 product ambassadors—primarily professional athletes or wellness experts—between the human and equine sides of the business. “We have a channel of distributors in the U.S. like the rest of the (direct sales) industry,” Bosch said. “But in branding our product we also have ambassadors, everything from extreme athletes like Jimmy Chin and freestyle skiers like Mark Abma to Olympians Miki Barber and Simone Blum and pickle ball champion Tyson McGiffin. We also work with sports therapists and equine ambassadors. Everyone of our ambassadors use the product. They love it; they speak from the heart; and there’s no money exchange with these individuals. So, it’s real versus what could be seen as a paid endorsement. These are real users, real stories and real testimonials.” BEMER also works with fitness guru and celebrity spokesperson Brooke Burke, giving her the spotlight to share her experience with the device.

BEMER blanket. So as soon as they see it work on their horse, they’re like, ‘oh my gosh, wow. It really does work!’ It’s almost an instant sale for us. If you can sell a horse owner a BEMER Horse Set, chances are you’re going to sell a human set as well.”

Humans and Horses

Today and Tomorrow

Used in hospitals, clinics, universities and homes around the world, BEMER serves over 100,000 users in more than 40 markets. This type of therapy isn’t just for humans—BEMER is a secret weapon in the horse world as well, used as an equine therapy for decades. “Since I’ve joined, our team has done a great job of moving us more into enhanced performance and recovery,” Bosch said. “It’s about elite performance, it’s about recovery. It’s about horses and humans all in those same veins. It’s like bio hacking, that little edge that everybody’s looking for.” North American Marketing Director Brad Horn sees BEMER’s equine application as a twofold opportunity. “A lot of owners, riders and trainers might be a little skeptical about the technology and the product,” he said. “But with a horse, there’s no such thing as a placebo effect—obviously the horse doesn’t know if it’s a regular blanket or a

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This type of therapy isn’t just for humans—BEMER is a secret weapon in the horse world as well, used as an equine therapy for decades.

Health outcomes for Americans have never been in more need of the type of effective, non-invasive therapy the BEMER device delivers. Bosch, Horn and their team are eager to share their technology with the world, with a goal to see a BEMER in every home (and every barn, too). “I’m most excited about what our product does for people,” Bosch said. “I’ve seen the lives that we’ve improved tremendously from a wellness perspective, that the science is real. The poor health and wellness of our country represents a huge opportunity for a technology like BEMER to come in and provide help. Our product is natural; it’s proven; it’s FDA cleared; and it’s the right type of technology to help people live a preventative lifestyle. If they add that to working out and eating well, meditating and all those things, I think our product will just continue to expand and become more of a household name.” DSN

THANK YOU FOR YOUR CONTINUED MEMBERSHIP—IT’S BECAUSE OF YOU THAT WE ARE MOVING FORWARD TOGETHER TO BETTER. By renewing your DSA membership, you gain the power of a voice dedicated to ensuring that lawmakers preserve the opportunity for independent contractors that companies like yours work so hard to create and nurture. DSA membership provides you with access to a broad collection of research, educational programming, professional development opportunities and fellowship with like-minded business leaders that is unparalleled and empowers your company to thrive in bold new ways.

Renew your membership before MARCH 15, 2022 at DSA.org/renew. SUPPLIERS: Renew before JANUARY 15, 2022 at DSA.org/supplier-renew.

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Top 7 Tax Considerations for Direct Selling Businesses

BY SHARA SUMNALL & JOE HILLSTEAD

ITH TAX SEASON quickly approaching, owners of direct selling businesses might be wondering what they should consider as they file for next year. Unfortunately, taxes are a necessary evil, but understanding the various accounting components available for your business and maximizing your deductions can make for a seamless and stress-free experience. Below are seven tax tips to consider for all direct selling businesses and how they might affect you.

1 / Self-Employment Tax

Self-employment tax laws apply to self-employed direct sellers in the same way as other taxpayers. This generally means that the income and expenses of the business are reported on Schedule C as selfemployment income. When this is listed as ‘selfemployment’ income, any net profit is subject to 15.3 percent as of 2020, which functions similarly to corporate employees who have social security and Medicare taxes withheld from their wages.

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7 TIPS

2 / Product Taxability

Another important factor to understand in tackling sales tax is learning how your products are taxed in different states. What is their taxability? For example, clothing will be taxed differently in California, Massachusetts and Texas. There may be tax exemptions for your product in some states but not others, and there may be special rules such as a taxable threshold. One example of this is that New York exempts footwear if the item costs less than $110. Certain states also hold sales tax holidays on different products annually. A timely example of this is the emergency sales tax holiday that Puerto Rico declared on necessary items to help relieve tax burdens on its citizens dealing with COVID-19 impacts. Understanding the general taxability of your products matters.

3 / Exempt Customers

If business is humming along and a customer presents you with a sales tax exemption certificate, do you know what you are receiving and how to handle it? Is it required to honor a sales tax exemption certificate? Is this correct documentation? Is it complete? This kind of detail may not seem important until you’re faced with this scenario or a sales tax audit. Knowing the general rules and pitfalls can save a lot of time. Save your customer service team from this headache. Tax exemption documentation is important from a purchasing standpoint and a sales perspective. Learn and know the basics.

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If you use your residence for your business, you may be able to claim a home office deduction for the portion of your home that is used. In order to qualify for this deduction, this area of the home must be used exclusively for business purposes. With so many workers now conducting businesses remotely, it is important to recognize, multipurpose spaces such as the kitchen table, guest room, etc., may not meet the criteria. For example, if you use a specific area in your home to store inventory, you may be able to claim that. However, if you spend your personal time in your living room, which is also where your inventory is, you would not be able to claim this as a deduction because the room is also being used for personal reasons. If you meet the criteria for this deduction, you must then choose a method. There are two different methods of home office deductions, regular and simplified. The simplified method was introduced in 2013 to reduce the burden on small business owners. Both methods base the calculation on the square footage of the home used for the business. The simplified method uses a standard of five dollars per square foot to a maximum of 300 square feet. Under the simplified method, there is also no depreciation to track nor later recapture as well as limits to the home gain exclusion when the home is sold. The regular method allows a deduction of home office expenses proportionately based on the home’s total square footage. Evaluating the facts and circumstances of your business will help you determine which is the most beneficial method for your direct selling business .

ONE OF THE MOST CRITICAL STEPS to help you with your tax deductions is to document everything. Having proper documentation can help you maximize your potential tax deductions each year and set your business up for success in the new year.

5 / Cost of Goods Sold Calculation

Direct selling businesses may deduct the Cost of Goods Sold from their business income. When computing this calculation for your business, you must consider the following things: Inventory at the beginning of the year, purchases for personal use, labor costs, materials and supplies, other manufacturing costs, as well as inventory at the end of the year. All of these play a factor in computing the cost of goods sold that you will be able to claim on your taxes. This can be a complex calculation; the IRS encourages businesses to establish reliable record-keeping systems to accurately report all income.

6 / Inventory Location

Many direct selling businesses will ship inventory to their independent contractors to later be sold. Who is the legal owner of the inventory when it is delivered? Is the business keeping track of where inventory is located? These questions are important to take into consideration when putting together your contractor agreements as inventory may trigger income tax nexus requiring the business to file an income tax return in every state it owns and holds inventory. To avoid this issue, consider transferring legal ownership of inventory to the contractor when it is delivered.

7 / 1099-NEC Reporting

It is common that direct selling companies have hundreds to thousands of independent contractors. The IRS requires businesses to file informational returns every year, known as Form 1099-NECs (Non-Employee Compensation) to report the amount paid to each independent contractor. This form is filed with the IRS and a copy is sent to the contractor for them to use to file their tax return. A 1099 is required for payments made to contractors

that exceed $600 in a taxable year. Information that is required on the 1099 is the contractors’ legal name reported to the Social Security Administration; taxpayer identification number such as an SSN, EIN or ITIN; address; and total amounts paid in a tax year. The name and taxpayer identification number must match IRS records, or it will be flagged for a penalty as not reporting correct information. The best practice is to require Form W-9s from each independent contractor as part of the company’s onboarding process. The information on the W-9 should then be matched with the IRS system to ensure it is correct. Having good processes in place will ensure the company’s ability to abate potential filing penalties.

Documentation is Everything

One of the most critical steps to help you with your tax deductions is to document everything. Having proper documentation can help you maximize your potential tax deductions each year and set your business up for success in 2022. We hope that as this tax season approaches, these tips can help your business thrive into the new year. For direct selling business owners, consider talking to a tax advisor about what these tips could mean for your business. DSN

SHARA SUMNALL is a Sales Tax Manager at Squire & Company. Shara works with a growing team of Sales Tax Account managers in their registration, filing and support responsibilities. Shara spends time advising clients with multistate sales tax obligations and onboarding them to Squire’s sales tax services. JOE HILLSTEAD is a Tax Partner at Squire & Company. Joe specializes in U.S. taxation of international transactions and corporate income tax matters. He provides tax consulting and tax compliance services. Joe leads Squire’s sales tax team and he is a leader in Squire’s direct selling industry group. w w w. d i r e c t s e l l i n g n e w s . c o m 7 1

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The Story That Changes Everything BY KINDRA HALL

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EET AMBER. Amber is a mother of two, living with her husband in the middle of the country. Amber worked as a receptionist in an accounting office full time, but was, in her own words, “SO over it.” She was underappreciated, underpaid and was always stuck training new receptionists who were half her age with double her attitude and who quit as soon as they started. Amber felt stuck and hopeless, and then one day, a friend of hers introduced Amber to an amazing opportunity. Amber knew this was her way out, and she immediately got to work. She called all her friends; they called their friends; and they took off like wildfire. Everything Amber touched turned to gold. She won the trips. She walked the stage and was recognized on calls. But then, something happened. Or didn’t happen. Or stopped happening. It was not the kind of something that’s an event or a tragedy or out of left field, but rather something more… subtle. Amber couldn’t quite put her finger on it. Suddenly, when she tuned into the recognition call, instead of hearing her name or her team’s names and being excited—or hearing other people achieving higher levels and using it as motivation for what she could achieve next—every name that was announced sounded sour. She would see other women posting on social media and would immediately unfollow them, brooding about their success for an hour or two. “Well of course she’s doing great—she doesn’t have XYZ to deal with,” or “Duh…look at her Instagram following…of course she’s getting ahead.” Almost as quickly as she found success, it fell

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If stories are what is holding us back, then only stories can move us forward.

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apart. Or, at least, it stalled. And while it would be easy to blame the company, the comp plan, her upline or whatever else she could think of, Amber didn’t. Well, she did for a while. But when that didn’t help, Amber wondered if maybe what she was dealing with wasn’t a problem that stemmed from outside her. Maybe it was a problem from within her. Not a capability problem—she had proven she was capable—instead, Amber believed she had a storytelling problem. And that is when I met Amber: Amber and all of the stories that were holding her back.

The “Other” Kind of Story

It was November of 2020. As a global population, we were still in the depths of the pandemic. As a nation, we were grappling with an election. And, as an industry, we were still making things happen without the magic of being together in person. For me personally, I was deeply immersed in research for my second book; Choose Your Story, Change Your Life: Silence Your Inner Critic and Rewrite Your Life from the Inside Out (on sale January 11, 2022).

Like my first book, the new book is about storytelling—a topic that is certainly not new to you as there is no question that the direct selling business is a storytelling business. And for nearly a decade now, I have joined you at your annual conventions and stood in your stadiums as a keynote speaker. There, I’ve taught your industry’s professionals not only that they should be telling stories, but exactly how to tell them; and, sometimes most importantly, that no matter who they are, their story matters. However, while it is true that “facts tell and stories sell” and that they would be more successful if they were to simply tell more stories instead of listing features and ingredients, nothing is ever as easy as it seems. If success really was as simple as “share your product story,” your job would be a whole lot easier. The truth is, when it comes to breaking through barriers and achieving greater success, there is a much bigger story at play: The story we tell ourselves.

Human = Storyteller

Humans are storytelling creatures by nature. We are WIRED for story. And while the earliest stories allowed us to communicate with other cavemen about the dangers of that particular berry or the lion crouching behind a particular bush, the storytelling skill—like humans themselves—evolved. Eventually, a new kind of story emerged: The self-story. The inner monologue. Researchers have determined that we use self-stories for a variety of reasons, like solving problems, motivating ourselves, making plans for the future, self-control and self-reflection. Our internal dialogue helped us stay safe, fit into the tribe and make sense of the world around us; in turn, these benefits helped us to live longer and ensured our safety and survival. And so the self-storytelling cycle continued. Over the course of hundreds of thousands of years, this self-storytelling habit became as automated as breath and blood flow, and now—fast-forward thousands of years—you have Amber and millions of women like her. Amber doesn’t need to be kept safe from poisonous berries or hungry lions, but that doesn’t stop her inner-storyteller from sensing danger a mile away in the shape of modern threats like rejection, failure, humiliation. In an effort to keep her safe, Amber’s self-stories immediately launch into action, replaying all the times she’s tried something and failed. They are as vivid as a movie on the big screen, and w w w. d i r e c t s e l l i n g n e w s . c o m 75

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yet they are completely invisible because evolution automated them, replaying them subconsciously so that Amber doesn’t even know they are there. If you’ve ever looked on, baffled, as one of your top leaders seems to self-destruct for no apparent reason—there is a self-story to blame. If you’ve ever watched in wonder as someone with all the potential in the world just can’t seem to take flight, it’s self-storytelling. You can talk about mindset or personal development all you want, but until you interrupt the automatic stories that are holding your people back and then help them to replace those stories with better ones, the Ambers will stay stuck. If stories are what is holding us back, then only stories can move us forward.

Choose Your Story, Change Your Life

Choose Your Story, Change Your Life: Silence Your Inner Critic and Rewrite Your Life from the Inside Out

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Could taking control of the stories we tell ourselves—stopping the automation and choosing to tell ourselves stories that motivate and encourage us, or at the very least stop the spiral of negative thinking—could that simple change change everything? That was what I endeavored to find out through my research with Amber and a group of others, all seeking to break through barriers and limiting beliefs in various areas of their lives including health and well-being, money and finances, business and career, love and relationships and family and parenting. Over the course of 6 weeks, I walked the participants in the research group through a simple, four-step method to choosing better stories. It starts with identifying the limiting beliefs and the old stories propping them up and then analyzing those stories.

For Amber, her belief that she would never be “good enough” was keeping her stuck, and it was anchored by stories like when she didn’t make the dance team in high school. Or when she dropped out of college. There was an early divorce. Various mom-fails. She could remember, in detail, the wealthy women in her neighborhood who made her feel awkward at the community center holiday gathering. You name it, Amber had a story for it. Stories that were old and outdated, yes, but that her subconscious continued to play in an effort to keep her safe. The only way to break free? Choosing better stories to silence that inner critic. Amber (like most of the participants) found many stories that illustrated the opposite of her limiting beliefs, especially when it came to her direct selling business. There was the lake house she was able to rent for her family vacation with her side-gig income. There was the story of the first Christmas when she didn’t have to stress over whether she could afford the toys her sons so desperately wanted. Or the Tuesday afternoon that she went to the grocery store and, out in the parking lot with a cart full of groceries, she realized she didn’t take her calculator out once to make sure she had enough money— because she knew she did. “I AM A BEAST!!” Amber shouted confidently and unprompted during our third session together. “Why have I been telling myself these terrible stories when I have so many great ones?” It was a very good question. And asking it changed everything.

The participants in the sample group as a whole were 225 percent more likely to report being “very satisfied” with life; five times more likely to report being “very optimistic” about their future; and 230 percent more likely to shift from a “fear of failure” focus to a “hope of success” focus. The group size was small, so the results are only directional in nature, but if you have ever sat at your desk and—after all the training sessions, the incentives, the bonuses—you’ve still had a sense that something needed to change…look no further than the stories your colleagues are telling themselves. Change those stories, and everything can change.

Happily Ever After

During our last session, I read Amber’s list of limiting beliefs back to her, and she shook her head as I did. “I know I felt that way, so it’s not that it wasn’t real…. It just was never true. And now I’m actually more open to letting myself feel like I actually am doing good… and as a result, I’ve been doing more good... And I’ve come to realize, I’m actually pretty awesome!” There’s no question that storytelling is an essential ingredient to success in this industry. My hope is that, in experiencing this book and what it teaches, the people you lead and inspire will come to the same conclusions that Amber and so many others did. That they will tell and retell themselves the stories of their successes—the stories that make them feel proud and brave and capable—and in doing so, rewrite their lives from the inside out. DSN

The Self-Storytelling Opportunity

In just six weeks, Amber reported feeling 50 percent more in control of her life than when she started and 150 percent more optimistic about her future—simply by choosing better stories. She revealed that even the people on her team had noticed a difference, commenting that she didn’t call and “Debbie Downer” them anymore. Amber wasn’t the only one who saw a change.

KINDRA HALL is the Wall Street Journal bestselling author of Stories that Stick and her newest book Choose Your Story, Change Your Life: Silence Your Inner Critic and Rewrite Your Life from the Inside Out. She is a sought-after keynote speaker in the direct selling industry and beyond. Hall is based in Manhattan, New York with her two children, husband and puppy named Spacedog.

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Decision Makers Engage with DSN The Direct Selling News audience are the top decision makers in the industry— 21% are owners and C-Level executives and another 41% hold senior management roles. And these powerbrokers turn to DSN to stay informed and engaged with the channel.

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The Power of Association

E’VE RUNG IN THE NEW year, and the importance of connectivity and positive engagement is on everyone’s mind as we consider what’s next for the channel. We have come such a long way, and we have learned so much. During the past 22 months, more than 6,000 executives have participated in DSA’s 100+ webinars, meetings and events that now embrace the hybrid formats characterizing our new normal. As we head into the new year, we want senior direct selling executives to know that DSA will be convening exclusive premier opportunities throughout 2022, so mark your calendars without delay!

DSA In-Person and Virtual Company Visits (January through March 2022) This in-person and virtual tour will bring senior DSA executives to major direct selling markets for lunch and discussion with member company CEOs; attendance will be limited in Dallas, Chicago, Salt Lake City and Los Angeles.

DSA Compliance Officers and General Counsel Retreats (February 1–3) Herbalife will host this year’s in-person retreats at their Los Angeles headquarters.

A CEO Retreat Hosted by Joni Rogers-Kante (February 23–25, 2022) Hosted by SeneGence International’s Founder and CEO, Joni Rogers-Kante, at her California home, this event will be limited to a maximum of 30 executives.

DSA Social Media Day: A Virtual Event (March 11, 2022) Join as Scott Kramer, CEO of Multibrain and direct selling’s leading digital community builders delve into 2022’s social media megatrends

including the “shopification” of social media platforms; the emergence and proliferation of short-form content; harnessing the potential of user-generated content (UGC); social media etiquette guidelines for our field sellers; and the opportunities and potential pitfalls of augmented reality (AR).

Spring 2022 DSA Board Meeting (March 2022, Washington, D.C.) This in-person DSA Board Meeting will be streamed to allow others to listen to the proceedings.

MELISSA K. BRUNTON Senior Vice President, Education & Meeting Services, DSA

#COMMUNITY #STRONGERTOGETHER

Direct Selling “Masters at the Masters” (April 6–8, 2022, Augusta, GA) This Davos-style think tank will be held at the Augusta National Golf Club in concert with social activities at the Masters Golf Tournament; attendance is limited to 10 executives.

DSA ENGAGE 2022: Conversion Emersion (June 3–7, 2022, Boca Raton, FL) This annual meeting will bring the future into focus as we explore the countless unknowns and limitless opportunities we face. The event will explore the disruption and transformation of business today: the technologies that are already helping us transform our organizations, the innovations that are already emerging, and what we need to do today so that we can thrive tomorrow. Also, DSEF will host a DSEF Fellows Conference featuring national academic influencers and field experts to discuss the latest research and trends affecting the future of the channel. Participants will include leading academics, policymakers, industry leaders, media and opinion leaders. Please stay tuned for additional information. Renew your DSA membership today and get ready to engage in another year of growth and prosperity. DSN w w w. d i r e c t s e l l i n g n e w s . c o m 79

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

INTERNATIONAL PAYOUT SYSTEMS INC. 540 NE 4th St. Fort Lauderdale, FL 33301 866-218-4668 www.i-payout.com

Upgrade to the most customizable payment solution available. Expand your global footprint to over 180 countries and have more than 20 payout and pay-in options for your participants. And, we really can customize our solution to fit your needs exactly—and help you grow.

PAYQUICKER 400 Linden Oaks, Suite 320 Rochester, NY 14625 844-258-3006 www.payquicker.com Instantly make secure and compliant global payouts to your distributors in local currency with PayQuicker’s fully customizable, client-branded solution. We offer secured bank accounts with prepaid debit cards, virtual cards and more—all through a single point of integration.

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

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

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

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

JANUARY 2022

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

METRICS GLOBAL, INC

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

SELLING NEWS

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

Keller, TX 817-697-4321 www.cpkrell.com

STRATEGIC CHOICE PARTNERS

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CP & KRELL GROUP

LACORE PAYMENT TECHNOLOGIES

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

C R E D I T C A R D/ PAY M E N T P R O C E S S I N G

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

C O M M I S S I O N PAY M E N T S E R V I C E S

SQUIRE

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

NEXIO 727 N 1550 E, 3rd Floor Orem, UT 84097 1-877-551-5504 www.nexiohub.com Nexio manages the chaos of payments offering: • Faster roll out for distributors or partners • Simplifies payment processing for corporations Nexio does this by being integrated with the majority of back-office software solutions in the Direct Sales Industry.

CANADA CARTAGE LOGISTICS SOLUTIONS

1615 Clark Blvd. Brampton, Ontario L6T 4W1 905-564-2115 x2 www.canadacartage.com/logistics Single Source Solutions, Order to Delivery B2C Solutions, On-Time Order Fulfillment, Real-Time Inventory Visibility, NHP Site Compliant, SOP/GMP Compliant, and locations across Canada.

900 Wilmeth Road, McKinney Texas 75069 214-817-4802 www.lacorelogistics.com LaCore Logistics provides distribution and order fulfillment services. Our highly automated distribution center provides both domestic and international direct-to-consumer shipping solutions. We offer omni-channel fulfillment solutions ranging from marketplace fulfillment for leading marketplaces to businessto-business fulfillment for leading retailers.

KATAPULT EVENTS 5840 Red Bug Lake Rd, Ste. 140 Winter Springs, FL 32708 407-915-9060 www.katapultevents.com Fresh. Exciting. Bold. Your field deserves the best and we help you deliver. Out-of-the-box creative production with experienced show management. We execute on budget and make you look AMAZING!

E X E C U T I V E R E C R U I TM E N T

Handle fulfillment for 14 direct sellers. DSA member with 15 fulfillment centers, nationwide, for 1–2 day delivery to 95% of the US. Offer comprehensive B2C fulfillment services, including complex kitting, plus discounted parcel shipping based on our large volume of freight.

LACORE LOGISTICS

INCENTIVES/RECOGNITION

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

D I S T R I B U T I O N / F U L F I L L M E N T/ LO G I S T I C S

AMWARE FULFILLMENT

EVENT PRODUCTION

D I S T R I B U T I O N / F U L F I L L M E N T/ LO G I S T I C S

TO BE INCLUDED IN THE SUPPLIER DIRECTORY, EMAIL ADVERTISING@DIRECTSELLINGNEWS.COM

HANNA SHEA 1835 W Chandler Blvd 103, Chandler, AZ 85224 844-344-7177 www.hannashea.com Since 2007, Hanna Shea Executive Search has been the go-to search firm in support of the direct selling industry. Hanna Shea finds top talent for companies in need of building or improving an executive leadership team for organizational success.

CUSTOM TRAVEL SOLUTIONS 27 S Main St #17 Travelers Rest, SC 29690 864-990-3074 www.CustomTravelSolutions.com Recruit and retain the right people for your organization — We are the world’s largest “white label” travel club builder.

GLOBAL ACCESS

MULTI IMAGE GROUP

E.A. DION, INC.

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

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

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

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

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

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

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M A N U FA C T U R I N G/ P R O D . D E V E LO P M E N T

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

MOMENTUM FACTOR

NOW TECH 5800 Democracy Drive, Suite 100 Plano, TX 75024 310-428-9936 www.now-tech.com The most comprehensive and powerful business management solution for direct sellers. We put more than 35 years of industry experience into creating strategies and tools to consistently grow your business. Contact us for a demo today.

S O F T WA R E / T E C H N O LO GY S O LU T I O N S

1080 Caribbean Way Miami, FL 33132 Royal Caribbean International’s Corporate Sales Team 800-345-7225 (SELECT 2, THEN 1) www.royalcaribbeanincentives.com

M A R K E T I N G/ B R A N D I N G

ROYAL CARIBBEAN INTERNATIONAL

EXIGO 1600 Viceroy Dr., Suite 125 Dallas, TX 75235 214-367-9933 www.exigo.com The global leader in cloud-based Platformas-a-Service (PaaS) for direct selling companies. An open framework for billiondollar giants to startup companies. Exigo supports MLM, Party Plan and Affiliate models, operating in single global markets.

BYDESIGN TECHNOLOGIES

INFOTRAX SYSTEMS

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

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

Award winning SaaS solutions including Geneology Management & Commissions, Inventory, Replicated Websites, Premier Rep Tools, Branded Mobile App, Virtual Parties, E-vites, Hostess Rewards, Bookings, Social Sharing, Promotions, & Shopping.

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

VERICAST

DIRECTSCALE

2435 Goodwin Lane New Braunfels, TX 78132 sales@dsa.harlandclarke.com www.vericast.com

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

INTERNATIONAL DIRECT SELLING TECHNOLOGY CORP.

VERICAST FUELS COMMERCE We create meaningful connections between your business and the people that you serve how, when and where it matters. By pushing the boundaries of data and insights, we spark discovery and inspire action to create profitable results.

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

4801 Spicewood Springs Road, Ste. 250, Austin, TX 78759 512.690.2134 www.momofactor.com Momentum Factor is a leading digital risk management firm specializing in online compliance monitoring and global online reputation management services for the direct selling industry. Our passion and mission are to protect companies from the brand and regulatory risks associated with online and social media technologies.

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

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

JENKON 915 Broadway Street, Ste. 400 Vancouver, WA 98660 360-256-4400 www.jenkon.com From Startup to Enterprise, Jenkon provides Direct Selling companies an award-winning, scalable platform unifying the future of direct selling: Openness, connectivity, omni-channel and conversational marketing.

S O F T WA R E / T E C H N O LO GY S O LU T I O N S

TO BE INCLUDED IN THE SUPPLIER DIRECTORY, EMAIL ADVERTISING@DIRECTSELLINGNEWS.COM

XIRECT SOFTWARE SOLUTIONS

686 E 110 S Unit 104 American Fork, UT 84003 385-448-1800 www.xirect.com Scalable software from startup to enterprise. Your delivery expert in Commissions Calc / Consulting, Replicating Websites, E-Commerce, Reporting, Promotions, Localization, Multi-Currency, and more- The Perfect Cloud-based Direct Selling Software Partner!

MW2 DIRECT 2033 Gateway Place, 5th Floor San Jose, CA 95110 408-573-6310 www.mw2consulting.com/direct Combine the Magento Platform with powerful social and direct selling features available in the MW2 Direct platform. Solving Digital Transformation for direct selling with personalization, party management, influencer marketing, commission, analytics.

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

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

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BUSINESS MADE EASY MULTIPLE SOLUTIONS ALL FROM ONE APP ONBOARD Keeps new recruits connected Fast tracks time to first sale Guides distributors along their journey

SHARE Equips distributors with sales tools Shows compliant, on brand content Captures new leads and customers

SAMPLE Offers an easy way to acquire customers Provides a simplified experience

SELL Gives structure to your sales system Utilizes the newest sales technologies Helps your distributors win

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January 2022 Direct Selling News

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DSA MESSAGE // 80 SUPPLIER DIRECTORY