2020 is almost behind us. This was a rather tough year for all and the difficulties are far from being over. Yet, we are seeing very promising signs as well. Similar to last year (*), I asked some of the prominent figures of the global direct selling industry their opinions on this matter:

“What will be the most important issue, whether it be an opportunity or a threat, in the direct selling industry that will need a closer focus Next Year?” was the question.

Their responses have forged a two-part article. This week’s part encompasses comments from seven notable persons from the industry. Feel free to add yours at the end of the article.

Laure Alexandre, Executive Director of Seldia (The European Direct Selling Association)

“The EU is unambiguous in its determination to lead the twin green and digital transition despite the coronavirus crisis. Numerous regulatory proposals affecting companies supply and value chains are to be expected, as well as an “EU digital levy”. Some Members States, and the European Commission have also clearly expressed their wish to offer some level of social protection, balanced with adequate tax collection for ‘new forms of work’. While there are fundamental differences between platform workers, freelancers and direct sellers, there are also many similarities. Risk mitigation will be required when the EU legislative proposal is presented in 2021.”

Mona Ameli, Founder and Managing Partner of Ameli Global Partnerships

“While 2020 was a year of challenges and changes, 2021 would be a year of strategic stabilization and full transformation. Some of the effects of the pandemic and the social-racial movements triggered immediate and accelerated adjustments. It’s imperative for organizations to discern which of these changes will be permanent and how to integrate them as part of a longer-term re-defined business plan. The priorities would be to re-calibrate between 2020’s “circumstantial” and 2021 more “real” growth expectations and to re-assess budget allocations accordingly. This will ensure priority for key transformation opportunities: Cultural inclusion, customer focus, virtual & digital evolution, and operational nimbleness.”

Oscar Cano Arias, Managing Director of Direct Selling Europe

“2021 will be an intense year for the sector in the EU from a regulatory perspective. First of all, Direct Selling Europe (DSE) will follow closely the transposition of the new provisions on unsolicited marketing sales in the EU 27 Member States. Furthermore, we will continue working to make sure that the upcoming legislative proposals on the revision of the rules on Commercial Agents or the Consumer Credit Directive are in line with the interests of the industry. Last but not least, DSE will continue helping its members and sellers to make sure that they can continue receiving economic and/or financial support from their respective national authorities to mitigate the effects of the Covid-19 pandemic.”

Michel Bayan, CEO of Directech Labs

“2021 is the year of retention. With the gains made by the industry in 2021 we need to prove that we provide better value to more of the customers and representatives who put their trust and belief in us. We prove this quantifiably by increasing the lifespan and lifetime value of our people. Our rewards: A more stable business that is less dependent on big recruiting numbers in order to grow. A much improved public image. The praise and admiration of regulators. Higher multiples for valuations and market cap. This is all within our grasp if we give it the energy and focus It deserves.”

Tamuna Gabilaia, Executive Director and COO of the WFDSA (World Federation of Direct Selling Associations)

“These are unprecedented times we are living in with the current pandemic.  It profoundly affected the lives of millions of people around the world disabling entire communities and forever changing our lives. At the same time, despite unprecedented challenges, we saw our industry has not only been resilient but has seen the wave of inspiring new ideas, innovation, adaptability and creativity even more than ever before. As our new WFDSA Chairman Roger Barnett said so well, it is an opportunity to look forward and to ‘Reimagine, Reinvent and Redefine’ the global direct selling industry. It is truly and amazing, inclusive and diverse industry I love so much which provides an income earnings opportunities to millions of people around the world and changes lives.”

Dan Jensen, Compensation Plan Specialist, Founder of Dan Jensen Consulting 

“Things that do not change will remain the same. We must either ADAPT to the changing marketplace or see revenues and active sales force counts decline. Adapt or die a slow death. That is our greatest challenge. But how should we adapt? Attention spans… have they grown longer or shorter in the last 5 years? Adapt. Social media influence. Use it. Instant gratification. Drive it. Predictable results – if I do this, I WILL get that. Vital. Many of the things we did 5 years ago no longer work well. Change takes courage and leadership and your future depends on both.”

Robert Kreklewetz, Founding Partner of Millar Kreklewetz

“We see 2021 as a huge opportunity for home-based businesses like those in the direct selling industry – and particularly for new companies look to start-up operations in Canada. Almost everyone I know is either working from home OR looking to supplement their primary source of income OR both! We offer US direct sellers a ‘one-stop shop’ for Canadian start-ups and have personally seen an uptick in companies looking to open up Canada. I see 2021 as a ‘early bird gets the worm’ situation, with the first companies opening up, reaping the bulk of the rewards!”

(*) Please click here and here to read last year’s comments.

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The post In 100 Words: Looking Ahead to 2021 – Part 1 appeared first on The World of Direct Selling.

The question was:

“Explosive start, growth, sustainability of growth, profitability, cost efficiency, positive cash flow… For a typical start-up in direct selling during these days, which one would you pick as the most important? Or is there another area that you would emphasize the most?”

Below are comments from a group of persons of expertise form the industry:

Shilpa Ajwani, Founder and CEO of unomantra 

“The year 2020 has brought with it a more level playing field as both big and small companies faced unprecedented challenges. This is a good time for innovative direct selling companies to start up.

They should focus on explosive growth to catch the attention of potential salesforce seeking extra income and consumers wanting effective products for their homes and well-being. While gaining momentum needs to be the first priority, the leadership must create strategic initiatives that focus on creating a unique culture coupled with robust systems for retention and leadership development using both high touch and high tech enablers.

This would lead to positive unit economics and sustainable growth.“

Mona Ameli, Founder and Managing Partner of Ameli Global Partnerships

“While devastating in many ways, the pandemic has created an interesting mix of opportunities and challenges for many start-ups within our industry.

From remote and virtual interactions for both employees and field, to more versatile digitally-based business approach for both customers and consultants, the start-ups have benefited from far greater advantages of agility and flexibility compared to their legacy traditionally-run and technology-strapped counterparts.

But the key challenges of careful risk-management and strategically-planned sustainable growth model that can effectively distinguish key fundamental changes to the business from temporary circumstance-based momentum remains a core area. A core area of focus for those looking to create a long-term, financially stable and scalable business.”

Emily Barr, Owner of Orbis Consulting 

“I feel sustainability of growth is a key for start-ups, and the means to achieving this is through a strong initial ‘go to market’ strategy.

This strategy needs to emphasize corporate recruiting, because for a new company one will not be able to rely solely on organic field growth. Identifying the most effective ways to use your recruitment budget is critical.

The good news, in our post pandemic world many individuals are looking for supplemental income opportunities. Whether due to income loss or added free time, there is a large, captive audience waiting to hear what you have to offer.”

Mark Beiderwieden, Founder of DiSSECT

 “The current crisis shook many households with the realisation that their trusted income stream & lifestyle are more vulnerable than they assumed.

This “new reality” is creating a new segment of direct selling participants seeking to protect their future that are both well informed and cautious when considering where to put their trust.  Expectations are high, and must be met with realistic, value-driven promises coupled with attractive income, all supported by a solid foundation of quality service, training and sales support.

The current growth potential is real! Never before has the focus on business fundamentals been more essential in order to realize this potential.”

Craig Fleming, CEO/President at Direct Sales Experts

“Currently we are launching 5-7 new direct selling companies each month and the key differentiator between highly successful companies has always been communications.

In order to successfully launch your new business, we encourage entrepreneurs to start with a well written strategic business plan. A plan that communicates your mission, vision, values, culture, unique selling proposition and key ‘go to market’ strategies.

Once written, you now have a roadmap that can be easily communicated to all team members, eliminating confusion and misunderstandings. This clear focus helps everyone understand what the future looks like and the steps needed for success.”

Doug Hepfer, President at Hepfer & Associates 

“Sustainable growth has been the focus of the most successful direct selling start-ups for as long as I can remember. Sustainable growth can deliver the exponential sales increases that drive super-start launches, without the risks of compensation plans that are highly weighted toward explosive distributor recruiting.

Focusing only on profitability often leads to under-investment in the infrastructure you’re going to need when your company passes its next revenue milestone.

Balanced growth built on strong distributor trees supported by growing customer sales has been the key to long-term success for the most successful new direct selling companies of the last decade.”

Dan Jensen, Founder of Dan Jensen Consulting

“Sustainable growth is vital for every startup. How? Think long term.

Have a great product that knocks the socks off people who experience it. Priced right.

Have great training systems that produce predictable results when applied.

Have an amazing compensation plan that makes it worth their time at 1 hour per week or 40 hours per week.

The elephant in the room is the question, ‘Is it worth my time?’”

Jay Leisner, President of Sylvina Consulting

“None of those are most important. For a direct selling startup in today’s pandemic world, what is most important is the ability of a company’s representatives to transact business entirely online (selling, recruiting, team building, leadership development, etc).

Of second importance is the need to sell products or services that people will buy even if they are not earning any money through the company’s compensation plan.

Third, I would list having company executives who are focused on both the needs of the field and the needs of the company.

Finally, I would list patience as next in importance.”

Alan Luce, Senior Managing Partner at Strategic Choice Partners

“Start-up companies face any number of significant challenges: Not enough cash, often little operational skill among the founders, and lots of investment is needed in technology, registering intellectual property and development of a product line. When they do not know what the best sellers might be, they tend to over compensate by offering more products. In most cases it is the better practice to offer fewer items with a larger count of each item.

In recent years the rise of excellent third-party warehousing and pick, pack and ship operations has removed the headache and the start-up costs associated managing logistics. This is another area where the founders usually lack expertise. The third-party logistics option saves money, time and worry.

In my experience, poor inventory management is one of the most common reason why start-up companies fail.”

Daryl Wurzbacher, CEO of ByDesign Technologies

“In successful startups, the common trend we are seeing is long-term thinking. These companies are launching with advanced tools for their representatives, investing time in building out digital assets libraries, and keeping the field focused on the next step and the next rank versus EVERYTHING needed for success.

They are also listening to customers and paying attention to the things that matter to them, like transparency, ethical supply chain, and quickly adapting to shifts in demand.

We are also seeing more companies doing industry research: Reading blogs, listening to podcasts, and contacting mature companies for tips. Those startups who take advantage of the available resources tend to avoid costly mistakes/missteps that could have deterred their growth.”

(*) Click below links for previous articles in this series:

Looking Ahead to 2020 – Part 1
Looking Ahead to 2020 – Part 2
Recommendations in Times of the Global Pandemic

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The post In 100 Words: Direct Sales Start-Ups in Pandemic Times appeared first on The World of Direct Selling.

Mona Ameli is our first guest. Following various top managerial roles at leading direct sellers, she has been the President of Take Shape For Life, a subsidiary of Medifast, for over two years now.

Could you tell us about your education?

I had the great opportunity to live in different parts of the world while growing up so my education was accomplished across three continents: Asia, America and Europe.

I majored in Economics and Business with a undergrad degree in Economics and a master’s degree in Business (major: marketing, minor: finance) from University Paris Dauphine and a post-master in marketing from the University of Val de Marnes Business School in France.

What was your childhood dream?

As a child, I always loved traveling, foreign languages and had a keen interest for different cultures. At first, I wanted to become an airline stewardess as I thought they were the luckiest people in the world being able to travel to so many countries. Then, I wanted to become an international interpreter as I was fascinated by my cousin’s job who spoke five languages fluently and constantly traveled around the world attending prestigious conferences.

But what I enjoyed the most as a child was being around people. I loved organizing events and rallying friends around doing special projects. My father told me once that I could combine all these things that I loved so much and look into an international management field of work. He knew my passion well before I realized it and am so thankful that he and my mom helped direct my studies towards what led to my current career.

What were your past experiences before your current role at Take Shape for Life?

I have had the great opportunity to work in the direct selling industry since 1998. I started my career in global marketing with some of our largest industry leaders and gradually grew from product development, marketing and branding strategy to international market expansion to country management and general management.

The incredible opportunity to develop products in health and beauty category from concept to market, to create global brands and to expand portfolios around the world, to open and/or re-launch growth in more than 70 countries and to work closely with the field have given me a wide perspective on some key aspects of our business. The best part of all my experiences has been the incredible people I got to team up with, learn from and grow with; with each expanding my horizons and stretching my learnings.

What do you attribute your career success to most?

Several key elements were fundamental:

– The genuine belief, love and passion for our industry and our ability to transform and touch so many lives as well as my perspective that what I do is not just a job but a life mission.

– The openness and eagerness to always grow and learn all aspects of the business – beyond just my primary job,  from everyone I worked with and for and from the field, fully understanding their unique perspectives by trying to put myself in their shoes when making decisions.

– The preference of always working as part of a team and giving as much priority and importance to achieving the financial goals as to developing and growing people.

What has been your most inspiring moment?

There are so many of them as what we do is all about inspiration.

One specific instance that stands out for me is about one of the top leaders of a $1.9 billion company that I worked for who shared her extraordinary life-changing experience as an independent contractor who lived in the Amazon. With her business, she was able now to own a beautiful house in one of the largest metropolitan cities in Latin America. She sent her children to some of the top US universities so they can get the quality education she had always dreamed of and had never had herself. Speaking in her local dialect with a Spanish translator at the top Leadership Recognition Trip I was hosting that year, she emphasized the fact that not only her life has forever changed but she has been able to spread this opportunity across many members of her family and community in the Amazon. At that moment, as tears were coming down my face I realized deep down that not only what I did for a living had a direct impact on individuals, but it could become a catalyst for positive transformations around entire societies, giving opportunities to those who never thought it could be possible.

This story also inspired me in moments of fear of failure to remember how this amazing woman had been able to build a multi-million-Dollar beauty business in the Amazon with creative logistics and incredible resilience. Throughout my career, field members have been and continue to be the biggest source of inspiration and motivation for me.

Your hobbies?

I used to do a lot of non-profit activity in California, centered around women and children. But as I relocated to the East Coast two years ago and became recently a mother for the first time, it has become more challenging to continue my community involvement. I still try to travel to a new place in the world every year and keep up my reading while my love for music and dancing continue to be a great “escape” from my super-busy life.

How would you describe being a direct selling executive to an outsider?

This has always been a very interesting conversation. Very often people don’t know exactly what the term “direct selling” means or that it’s a multi-billion-dollar global industry. So, whenever asked what I do for a living, my answer is: “I help transform lives, what do you do?”

As they look at me shocked and inquisitively, I then explain that my job is to run the support team, resources and infrastructure that help tens of thousands of independent business owners to be their own CEOs in their businesses of helping others transform lives while creating a strong and mission-based community of world-changers. This extremely fulfilling job is not your typical corporate function but a true life mission that can have an enormous impact on both individuals and entire communities. I also explain that it’s a challenging job as it’s based on people and the fluctuations of their energy, emotions, motivation and engagement. So, it requires skills beyond just your classic business experience.

What is your biggest achievement at Take Shape for Life?

We’ve had so many great successes with the team over the past 2+ years. The fact that we turned around TSFL from a double-digit decline in 2014 to a double-digit growth in revenue in public results from Q3 2016 is a huge accomplishment. But what stands out the most for me is the incredible trust-building and collaboration achieved with our field leadership and our internal TSFL team.

I believe that my biggest achievement was when on stage at our National Convention last July, I was recognized by the field leaders as “one of them”  – a first for a corporate executive to be accepted as a fully integrated member of the field community, ending a long history of field-corporate polarized relationships and giving place to a new era of collaboration as “one team”. I feel so honored and touched, knowing a lot of work, tireless efforts, personal and team growth took place for this great synergy to be created. This is certainly at the basis of our amazing growth this past year.

And your biggest challenge at a direct selling company executive role?

My biggest challenge has also been the greatest area of opportunity and stretch for me. It’s about a constant balancing act both internally and externally.

– Internally: Making sure that our corporate decisions and plans don’t impact our field in a negative way and keeping the right balance between honoring our financial obligations to our share holders while providing the right kind of resources and support for our field members to grow their businesses.

– Externally: In this environment of heightened sensitivity around our industry and its ethics, to be an active voice and advocate for strict ethics and keeping the integrity of our business by showing the outside world our true value and potential by creating awareness and insights to our successes while ensuring full compliance of our rules within the company and the field operations

What would be your best advice to those who are thinking of joining a direct sales company at a corporate role?

Here are a few that have been important for me:

– Make sure you are passionate about what your role is and that you fully believe and embrace the mission of the company.

– Spend enough time listening, learning and absorbing as much as you can both from the internal team and the field members and not just the leaders, but across the board.

– Don’t be too quick to bring changes and plans that have worked elsewhere. While some concepts are valid across the industry and functions, each company has its own culture and ways of doing and being. So, make sure you fully understand that before being the catalyst for change.

– This is a people’s business so you need to make personal growth, relationship-building, communication and soft skills as part of your core competencies in parallel to your hard business skills.

– Remember at all times that more than often change is a constant and the balancing act of fulfilling your obligations and creating simultaneous success for all stakeholders like the field, clients, employees and shareholders requires patience, resilience, laser focus, agility, authenticity and a big heart filled with humility and compassion.

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