SMS: Friend or Foe?

Recently, an executive at a direct selling company expressed concern about sending distributors and customers messages through SMS. It was his belief that communicating with his audience in this way was too intrusive and that good old-fashioned email was the least of all evils when it came to communication channels. I can certainly understand the sentiment, consumers do exhibit more sensitivity to unsolicited SMS messages and the government also works to protect this channel through regulations like the Telephone Consumer Protection Act (TCPA).

However, I believe it’s a sucker’s choice to either go all in or all out with SMS messaging. The truth of the matter is that, when done right, no channel is more effective for audience engagement than the same channel that people use to interact with their closest friends and family. In North America, that channel is overwhelmingly SMS (although a strong argument could be made for social media channels like TikTok and Instagram for teens and Gen-Z).

The reason why SMS is so effective is that it is the most frictionless of channels – I’m already engaging with my closest circle of associates through SMS, so if you can effectively reach me there, you will get my attention. The carriers confirm this phenomenon by saying that 98% of SMS messages are read and a whopping 90% are read within the first 3 minutes of receipt^[1].

Most consumers are happy to receive automated messages if they see and feel the value. A clear example of this is using SMS as a means for multi-factor authentication – you want to access your bank account online? Your bank may send you a code via SMS to make sure it’s really you. We really have no issue with use cases like that.

What consumers do have issues with, however, are unsolicited text messages that are salesy and overly marketing heavy. We work hard to protect the sanctity of our preferred channel, the last thing we want is to muddy it up with tons of unwanted messages like…well, like what email has become.

So as a direct selling executive, how do you strike the balance of leveraging a messaging channel that is the most effective without burning bridges or relationships by abusing it?

I work with a mobile messaging expert who helped me understand this dynamic very well a few years ago. He explained to me that any incoming message we get via SMS is an interruption, even if it is coming from our best friend. And how true that is, an incoming message is unexpected and an interruption. The key is to make sure that the interruption is a welcome and valued interruption. I want my friends and family to text me. These interruptions enhance my life. And the modality of SMS is such where I can reply on my own time and on my own terms, increasing its convenience.

So how do you ensure that your messages are welcomed and valued? Here are a few tips:

• Understand the law. We live in an increasingly regulated world and SMS is no exception. There are government regulations like the aforementioned TCPA that you need to be aware of (violations can be as much as $1,500 per message!) as well as regulations that the carriers (T-Mobile, Verizon, AT&T, etc) The carriers recently implemented a protocol for automated messages through long codes (10-digit phone numbers) called A2P 10DLC. These protocols require companies to register their campaigns in advance and adhere to terms of service. Compliance to these regulations requires companies to employ more sophisticated technology platforms.

• Make it easy for users to opt in and opt out. Users should have 100% in control of your SMS relationship. This puts the onus on you to ensure the messaging experience they have feels valuable.

• Move beyond marketing. Yes, you want to use this channel to promote your products and services but that relationship is too one-sided. Consider implementing benefits and services into SMS such as allowing customers to use SMS for customer service or to access coaching and educational tips and tutorials.

• Implement personalized communication preferences. Taking a cue from email subscriptions, you can give your distributors and customers choices about what types of messages they receive as well as frequency of such messages. The more control they feel, the more likely they’ll hang around.

• Create a Return on Investment calculation. For all its virtues, SMS is expensive. And A2P 10DLC policy modifications also came with even more price increases. You should think through an ROI calculation to ensure the money you are putting in is at the very least paying for itself. Can you use SMS to increase customer loyalty? To help distributors be more effective? To increase sales? To decrease contact center costs? Ultimately, like with any tool, you need to justify its usage.

If you think about it, the relationships you value the most in your life, whether with people or with businesses, you are quick to offer your mobile number to be communicated with. If you’re distributors and customers value you in such a way, they will surely give you a shot at proving that you can use SMS to help them and in turn, help you.

^[1] https://www.twilio.com/learn/call-and-text-marketing/best-practices-text-sms-marketing

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This week’s article is a collection of industry news that stood out in 2020. It was most certainly a challenging year for the industry, yet we know there were positives alongside with all the negatives.

Also included are articles from The World of Direct Selling that attracted much interest last year.

> The Future of a Natura-Avon Powerhouse?
> Stella & Dot Puts Focus on Ambassadors by Merging Its Three Brands
> Rodan + Fields Lays off 86 Employees, 15% of Its Staff
> Amway Sued by Independent Business Owner Claiming Employee Status
> Nearly 7,000 Convene for Mary Kay’s Annual Leadership Conference
> Isagenix Acquires Zija International
> Rick Goings to Retire from the Board of Tupperware

Most-Read Article in January on The World of Direct Selling:
Here is Direct Selling in Canada, Folks! (Hakki Ozmorali)

> USANA Reports $1.061B Sales in 2019, Down 11% vs. Previous Year
> Brazil DSA to Celebrate 40th Anniversary in 2020
> Nu Skin Reports $2.4 Billion Revenue in 2019, Down 10%
> Jeunesse Reaches Annual Sales of $1 Billion for Fifth Consecutive Year
> Oriflame Reports 2% Sales Decrease in 2019
> Herbalife Notches $4.9 Billion in Annual Sales Despite Hit in China
> Amway’s 2019 Sales Down 5%
> Medifast Reports $714M Revenue in 2019, Up 42%

Most-Read Article in February on The World of Direct Selling:
Trust and Communication: The Foundation of Success in Direct Sales (Brett Duncan)

> Industry Advocate Jeff Babener Passes Away
> Natura Reports Modest Q4 Profit, Weighed by Avon Acquisition Costs
> Mary Kay Pulls Out of Australia and New Zealand
> QNet Fires Over 400 Reps in 20 Countries
> Tupperware Appoints Miguel Fernandez as CEO, and Rich Goudis as Chairman
> US DSA Calls for Measures to Ensure Accurate Product Claims
> Industry Veteran John Agwunobi Assumes New Role as Herbalife CEO

Most-Read Article in March on The World of Direct Selling:
Five Key Insights from New DSA & Ipsos Consumer Attitudes & Entrepreneurship Study (Ben Gamse)

> Tupperware Announces New Organization Focused on Long-Term Growth
> US Cosmetics Market Experiences Sharpest Decline in 60 Years
> Stella & Dot CEO Jessica Herrin on Managing During the COVID-19 Crisis
> US Cosmetics Market Experiences Sharpest Decline in 60 Years
> COVID-19: Tupperware-Style Parties Drive Sales for DTC Sector
> FTC Sends Warning Letters to Direct Selling Companies
> Mary Kay Commits Nearly $10 Million to Global COVID-19 Support

Most-Read Article in April on The World of Direct Selling:
Lessons from the Lockdown (Alan Luce)

> WFDSA Chairman Magnus Brannstorm Addresses Global Direct Selling Community (video)
> CEO of Plexus Forgoes Salary to Award Bonuses to Employees
> More Canadians Becoming Entrepreneurs Amid ‘Direct Selling Movement’
> Lessons Learned During Chinese Regulatory Crackdown Help Nu Skin Weather Crisis
> 192 Million Customer Records Leaked by Natura &Co, 90% Brazilian Customers
> The Future of Retail Is Social

Most-Read Article in May on The World of Direct Selling:
Mixed Growth Performances in the First Quarter (Hakki Ozmorali)

> US DSA Releases Results from 2020 Growth & Outlook Survey
> FTC Sends Second Round of Warning Letters to MLM Companies
> How COVID-19 Has Sparked a ‘New Normal’ in the Health and Wellness Industry
> Avon Suffers ‘Cyber Incident’ Weeks After Major Data Breach at Natura
> Amway Establishes East Beauty Center of Excellence in South Korea
> 7 Predictions for How Coronavirus Will Change Retail in the Future
> Nearly 20,000 Attend Plexus Worldwide 20/20 Vision Virtual Convention

Most-Read Article in June on The World of Direct Selling:
Executive Q&A: Angela Cretu, CEO of Avon

> WFDSA Announces 2019 Global Direct Selling Industry Statistics
> Direct Selling Self-Regulatory Council Issues New Guidance on Earnings Claims in the US
> New Avon Announces Over $16 Million in Product Donations
> Pampered Chef Ex-CEO Tracy Britt Cool Takes a Stake in Thirty-One Gifts
> Direct Selling Continues to Grow in the EU in 2019
> Natura’s Asian Debut
> NewAge Agrees to Combine with ARIIX and Four Other Companies
> USANA Notches Sales Gain Despite Pandemic Disruptions

Most-Read Article in July on The World of Direct Selling:
Global Direct Selling Industry in 2019 (Hakki Ozmorali)

> Longaberger Baskets Selling Again, with Daughters Tami, Rachel Involved
> MONAT Ranks #653 on the 2020 List of Inc. 5000
> Mary Kay Ash Named Among USA TODAY’s ‘Women of the Century’
> Herbalife Agrees to Pay Over $122 Million to Resolve Corrupt Practices Case in China
> Isagenix Co-Founders, Shareholders Invest $35 Million to Foster Growth
> Nu Skin Invests $53 Million in New Production Facility in China
> How Lorraine Lea Reinvented Party Plan Selling for the Digital Age
> Tech for Health – Amway on Its Big Tech, Social Commerce, Big Data Ambitions

Most-Read Article in August on The World of Direct Selling:
A Glance at the Direct Sales Industry in Mid-2020 (Hakki Ozmorali)

> Laure Alexandre Appointed as Executive Director of Seldia
> Nature’s Sunshine Announces Company Transformation with New Business Model Launch
> Court Dismisses Neora’s Declaratory Judgement Suit Against FTC
> Avon’s Makeover: Five Things You Didn’t Know About the New Visual Identity
> Covid-19 Pandemic Gives Major Boost to E-Commerce
> WFDSA Releases 2019-2020 Annual Report
> Isagenix Names Sharon Walsh as New CEO
> Shaklee CEO Roger Barnett WFDSA’s New Chairman

Most-Read Article in September on The World of Direct Selling:
Mobile Messaging Best Practices for Direct Sellers (Vince Han)

> Message from WFDSA Outgoing Chairman Magnus Brannstrom (Video)
> Herbalife CEO Sees ‘Dramatic’ Demand Growth (Video)
> Ruby Ribbon Bolsters Management Ranks with Hiring of COO/CFO and CMO
> A Wrinkle in Time: Why Rodan+Fields’ Founders Lost Their Billionaire Status
> Natura Among Fortune’s World’s 25 Best Multinational Workplaces
> Melaleuca Turns 35
> Tupperware Profits and Shares Soar as More People Are Eating at Home
> Turkish Direct Seller Farmasi Plans to Build $25 Million Distribution Center in Miami
> Gig Economy and Micro-Entrepreneurship Are on the Rise, but Are We Ready to Manage That Successfully?

Most-Read Article in October on The World of Direct Selling:
The Joy and Pain of New Opportunities (Ben Woodward)

> Pampered Chef Continues International Expansion with Addition of France
> Kristi Hubbard Assumes CEO Role at Younique
> Natura &Co Significantly Outperforms Global Beauty Market with Strong Sales Growth
> NewAge and ARIIX Close Merger
> Youngevity Receives Notice of NASDAQ Delisting Due to Non-Compliance
> Direct Selling Could Be a Key Driver of Inclusive Economic Growth in South Africa
> In 2020, Beauty Is More Digital, More Hygiene-Focused and at Home
> From Turnover Point of View, We Are Already Back to Pre-Covid Levels: Oriflame VP Frederic Widell

Most-Read Article in November on The World of Direct Selling:
5 Essential Lessons on Success I Have Learned from Clients (Daryl Wurzbacher)

> Seldia Announces Winners of 2020 Astra Awards
> US Direct Selling Association Announces 2020 Award Winners and 25 Largest Companies
> Canada DSA Announces 2020 Award Winners
> ‘Tupperware-Style’ Retail Sees 45% Growth in 2020 in UK
> FTC and Law Enforcement Partners Crack Down on Deceptive Income Schemes
> TikTok Is Banning MLMs and Other Content That Aims to Deceive People
> SeneGence: How a Beauty Company Is Making Real Connections in a Virtual World
> Mary Kay: The Beauty of Sustainable Packaging
> WorldVentures Voluntarily Files for Bankruptcy

Most-Read Article in December on The World of Direct Selling:
The Crucial Role of P&P Documents in Direct Selling (Hakki Ozmorali)

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Vince Han
Mobile Messaging Best Practices for Direct Sellers

Direct selling companies rely on being able to effectively communicate with their field. This is simple when a company is starting out with just a handful of early leaders; company founders can easily spend time developing and nurturing relationships with their first distributors.

Then the company grows to the point where the founders can no longer personally keep up with everyone in their field. When this happens, maintaining effective communications transitions from personal, one-on-one communication to mass communications.

The modes of mass communications have ranged from email to social media posts, but in recent years, companies are finding that the most effective communication channels are popular messaging mediums like SMS, Facebook Messenger, and WhatsApp.

Mobile messaging channels are effective because they are the same channels where distributors are communicating with their first level contacts–friends, family, and work colleagues. These messages take priority over all the other influx of messages that inundate people today. And people work to fiercely protect the sanctity of this primary messaging channel by guarding against unwanted, unsolicited, spam-type messages.

If direct selling companies look to utilize mobile messaging (and they should), they need to be adept at creating messaging that consistently feels valuable to the user. They should keep in mind that any incoming message that comes to your phone is going to be an interruption. Some of these interruptions are welcome (like a message from a loved one or a friend) while others will feel unwelcome (like an unsolicited marketing message).

The following is a best practices list that direct selling companies should consider when using mobile messaging.



Set user expectations and keep that promise

Whether you use an automation tool or have staff handle messages manually, it’s important to establish a set of expectations that users can consistently rely on.

For example, let people know how frequently to expect messages. Something like, “We will rarely message you more than once a week and it’ll always be something important enough that you’ll want to stay updated.”

You can also give people an idea of the types of messages you’ll send. Uncertainty is one of the main reasons people get nervous about messaging. If they’re worried that the messages will just be marketing or guilt-tripping to work harder, people are less likely to engage. On the other hand, if you can establish trust quickly and send truly helpful messages, people will get excited to see each new message.

Choose the right channel for the right audience member

Depending on where someone is in the world and what demographic they belong to, their primary messaging channel preference might vary. A partial list of primary messaging channels includes SMS, WhatsApp, Messenger, Instagram, Viber, LINE, Kakao, WeChat, VK, and Telegram.

It’s important to gather feedback from your field when selecting channels. Where are they already messaging friends and family and trying to connect? Ideally, your messages should be in that same platform. You want them to feel like your messages are deeply integrated into their work and existing network. The farther they have to go to hear from you–even if it’s just into another app–the less they’ll pay attention to your messages.

Understand your users (where are they, what is their schedule)

Depending on your core user demographic, the types of messages and when you want to send them are very important. For example, maybe your core audience has full-time day jobs and focus on their direct sales business on nights and weekends. In that instance, getting your messages onto their screens at the right time can make a big difference in how they respond. If possible, consider letting your field set their own schedule to receive your messages to increase the chances of your message getting to them at the right time and place.

Write in a consistent voice

The compelling reason why messaging is so effective is that it’s conversational. In fact, in product terms, this is called conversational user interface because it isn’t like traditional software that requires logins, menus and search bars. Chatting with a trusted source is the most frictionless way to convey information.

So make sure that you message in a consistent voice over time. If you don’t, the experience could feel jolting. If you think about it, people work hard to portray themselves authentically when messaging their friends and it should be no different when receiving a message from a business. A consistent “look and feel” to your messages naturally develops trust and helps reinforce your brand identity with your field. The relationship they have with your messages should mirror the relationship you want them to have with your brand–whether that means being professional, straight-forward and efficient, or fun, surprising, and energetic, or anything else.

Offer interactivity

While you probably don’t have the time to message everyone individually, creating a messaging group can be a great way to help everyone feel a part of the community and get individual interaction without adding to your corporate team. You can create a group with several members, then simply start a discussion and let the group talk amongst themselves. This allows your field to naturally nurture each other and helps scale up your existing resources.

The best discussion questions are open-ended and require nuanced responses. For example, instead of asking, “Did the onboarding materials provided by corporate help?” you can ask, “What was the most helpful resource for you when you were first starting out? Why was that resource more helpful than the others?”

Another way to scale up your corporate resources to grow with your field is to build a chatbot. A good chatbot can provide step-by-step mentoring and answer a large number of the most common questions your field asks.

With a good chatbot in place, your existing team can spend less time answering the same question over and over and more time dealing with the most important work of developing your field.

Personalization

The more personalized a message feels, the more people are going to pay attention to it. Personalization can be a key factor in making a message feel helpful instead of annoying.

Thankfully, many messaging platforms offer ways to personalize messages at scale. Adding in a name to a message is now fairly standard and straightforward, but you can also find ways to personalize beyond the name, including messaging preferences like time of day and frequency, or allowing users to “follow” certain topics and not others so that the messages you are sending out are most likely going to the audience that wants and needs it the most. Additionally, full chatbot solutions can offer more complex personalization based on time with the company, rank, recent account activity, and so much more.



Get smart about what technology to use

As your business grows, you’ll quickly find that manually keeping up with communicating with thousands of people isn’t scalable or doable. This is where marketing automation tools really come into place. Marketing automation tools for email are quite mature but the bad news is that email has quickly fallen out of favor for many users.

Marketing automation tools for mobile messaging are also now widely available although can require sophistication in putting them together correctly and can be costly. This is why businesses should have a solid ROI (return on investment) calculation in place as they implement them.

Key components to effectively using marketing automation include having workflows to keep your contact database clean and adhering to all consumer protection laws and regulations around text messaging.

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The competency you develop in effectively messaging to your field will also translate into interacting with your customers. It is estimated that 85% of all customer interactions will be handled via conversational interfaces this year and a 2017 Nielsen study showed that 53% of people are more likely to choose a business that they can contact via chat.

Direct selling companies that invest now in both the technology platforms and internal messaging competencies and best practices will find themselves a step ahead in this increasingly digital age.

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It is evident that we are globally going through unprecedented times. Within this, the direct selling industry is facing immense difficulties. That being said, there are things that can and should be done by company management. Below you will find what several prominent figures of the industry have to say on this. Feel free to add your own comments.

“What will be your most important advice to direct selling companies, in times of the global pandemic?” was the question.

Oscar Canio Arias, Managing Director of Direct Selling Europe

“At the time of writing this article, COVID-19 continues to expand. The priority for the industry should continue being safeguarding the lives of our employees, collaborators and customers. Beyond the health implications, together with the contingency plans being currently implemented, companies should be working on a two-steps approach: 1) In the short term, work to return to business as soon as confinements are over; and, 2) Furthermore, prepare your company for a new post COVID-19 scenario, where both policy makers and consumers’ priorities and behaviour will be heavily shifted by the crisis.”

Tamuna Gabilaia, Executive Director and COO of the WFDSA

“In light of the global CoVid19 pandemic WFDSA is supporting the global direct selling industry by planning virtual global networking sessions for the leadership of direct selling associations and companies to enable them to share best practices and strategies designed to overcome the challenges posed to direct sellers by the CoVid19 pandemic. These challenges range from distribution channel disruption to limitations on the traditional person-to-person business model. Equally important will be ways for companies to innovate with digital sales and the opportunity also afforded by direct selling distance selling that has advantages over retail businesses. While WFDSA’s paramount priority continues to be consumer protection and adherence to the highest standards of ethical business practices enshrined in the WFDSA Code of Conduct, WFDSA will also be a leader in convening and facilitating global events and seminars that explore ways to navigate the challenges of the CoVid19 pandemic while also identifying opportunities that can position direct selling in a competitive posture in the changing marketplace as a consequence of the CoVid19 pandemic.”

Vince Han, Founder and CEO of MobileCoach

“COVID-19 is the first pandemic that many have experienced and the accompanying uncertainty, fear and disruption to jobs and life can wreak havoc on one’s well-being. In trying times, people are going to cling to their most meaningful relationships. More than traditional retail brands, direct sellers enjoy a greater sense of kinship between them and their distributors and customers. This is a time to find ways to genuinely come together as a community. Be there for your community in times of trouble and you’ll enjoy the ensuing goodwill and loyalty for years to come.”

Brenton Kugler, Partner at Scheef & Stone, LLP

“In such an uncertain time, it is critically important for companies to focus on the things they can control rather than spend time and energy on the growing number of things that are beyond their control. For sure, this is easier said than done. If corporate staff is working remotely, provide regular communication, preferably via video conference, to keep employees engaged and focused. Maintain regular contact with manufacturers and suppliers so that your company is prepared for supply chain interruptions. It is critical to maintain operating capital and companies and suppliers should determine if they are eligible for benefits available from the COVID-19 stimulus loan programs.  Most importantly, have a plan in place for quickly resuming full-scale business activity once the pandemic finally ends. You don’t want to be slow out of the gate because opportunities will likely be available to the companies that are the quickest to return to full operating capacity.”

Alan Luce, Senior Managing Partner at Strategic Choice Partners

“My most important advice to direct selling companies would be for them to recognize that this event will forever change us as a society. While the pandemic will eventually recede driven back by science and social distancing, some of the social and business practices that societies and nations have adopted will stay with us for generations. For example, most may not remember that the US Social Security program began during the Great Depression of 1929 as a program intended to alleviate the extreme poverty of senior citizens. This crisis and the social boundaries both imposed and self-activated will, in some ways not fully foreseeable at this time, change the way we think about subjects like the role and size of government, universal income assistance, pandemic and other types of catastrophe planning and preparation, health care as a right or an option, safety nets for independent contractors and how to pay for them and, whether direct selling becomes much more virtual on line rather than traditional person to person. Pay attention to what our most effective online sellers and team builders are doing now! Going forward these may become the backbone of direct selling standard operating procedure. This experience is changing us. We just don’t know all the ways it has yet!”

Peter Maddox, President of the Direct Sellers Association of Canada

“There are so many unknowns right now, so giving advice is a fraught exercise. Nevertheless, here are some things for direct selling leaders to consider both during and post COVID-19: • Look after your people and get the payback in the future – relationships developed during tough times can become enduring and powerful, • Don’t forget ongoing compliance requirements – perhaps more than ever, regulators and others are looking for missteps around product claims and earnings, • Search for ways to grow your business and the economy – without appearing predatory, investigate opportunities to sensitively and intelligently promote the direct selling opportunity, • Work together with your industry colleagues – this is an important time for sharing problems, solutions and best practices with your peers.”

Gillian Stapleton, Executive Director of the Australia Direct Selling Association

“When my team in Australia chose our conference theme for 2020 back in 2019, we had no idea how topical it would actually become. ‘Right Here, Right Now’ is how we are all operating these days and things are changing daily, so planning effectively becomes nearly impossible. Make decisions based on what you know today, and know it will change and you will have to make that decision again. Right here Right now, my three-guiding principles in this time of crisis, when there is no rulebook: Back Yourself, Back Your Team and Make Decisions.”

Kevin Thompson, Partner and Co-Founder of Thompson Burton

“Press! I would encourage anyone to fight through this period. If they come out of this lockdown period without a new skill or a new strategy, they did it wrong. This is the perfect time to reconsider patterns of behavior, keeping the good and discarding the bad. In life, it’s always wise to recalibrate your business goals every few months. We get busy and generally fail to dig deep to think through our strategies. Well now that we’re all shut down, there’s no better time than today.”

Daryl Wurzbacher, CEO of ByDesign Technologies

“Stay Positive! Our industry has a strong history of growth during economic downturns. This current issue is no different. Now is the time to plant seeds with relationship building, supporting your online communities, and preparing for the growth that is just around the corner. This is an excellent time to focus on the fundamentals of your business: optimize your supply chain, develop consistent onboarding, and leverage this as an opportunity to make ourselves and the industry better. Let’s make the direct sales industry the leader in helping people become truly self-reliant.”

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Vince Han
21st Century Customer Expectations – Can Direct Selling Companies Deliver? 

Can you remember life before Google? 

It’s amazing how entrenched Google (and search in general) is in our day-to-day lives. The ability to ask the Internet any question and get an immediate response is something we can easily take for granted, but it’s the kind of thing that was pure science fiction not too long ago. 

In the United States, approximately 25% of the population was born after Google was founded. These Americans haven’t known a life without instant access to answers via the Internet. And these digital natives are the key audience for any business looking to thrive in today’s economy.



The direct selling industry finds itself at a crossroad – it is an industry founded in the middle of the last century and has proven itself as a vehicle for millions of entrepreneurs, but after multiple consecutive years of declining growth coupled with increasing regulatory pressures, it is in need of major upgrades if not a complete rebirth. 

And there is no better way to reshape the direct selling industry than meeting the expectations of the 21st-century customer. Direct sellers must focus on attracting and keeping distributors as their primary customer as well as on pleasing the end consumers of their products and services. 

So what does a 21st-century distributor expect? 

Immediacy

Yes, Google has trained us to expect immediacy in all aspects of life. We can cringe all we want at this culture of instant gratification, but the expectation is not going away anytime soon. And what do we want immediately? 

• Answers to our questions 
• Problems solved 
• Products shipped 
• To get paid 

 
Seamless Interconnectivity

I recently ordered Apple’s new credit card, the Apple Card. I applied for and obtained the card using the native Wallet app on my iPhone. Moments later, I purchased a new Apple product from my laptop, and immediately the Apple Card appeared as the default preferred payment method. 

Once you experience this type of seamless interconnectivity from one device to another or from one website to a different app, you expect it everywhere you go digitally. 

Basic interconnectivity started with federated identification (e.g. using your Facebook login for Spotify, newsletter subscriptions, Etsy profile, etc.) while more integrated systems rely on advanced APIs (e.g. I can track the delivery status of my Amazon order on the UPS website). 

But there are still major limitations that frustrate users. For example, if I don’t know how to use an app on my iPhone, I should be able to ask Siri for help; but, Siri can’t tell what I’m looking at because the app is managed by a non-Apple company. So, while there is still work to be done to streamline our digital experiences, today’s users expect a high level of integration.

Access to Social Media Audiences

Social media has democratized access to the world—I can create content and have people from all around the planet view it. Social media platforms like YouTube, TikTok, and Instagram give creators access to a seemingly limitless audience. That ease of publishing has been the catalyst of literally billions of hours invested in content creation.

What isn’t democratized, however, is content creation talent. Take a look at most large public high schools in the United States. Instagram and TikTok adoption is ubiquitous but only a small percentage of content creators find broad success. Some are just more naturally talented in creating compelling content—and it is these individuals that are a ripe new market for direct selling companies. 

These influencers would love nothing more than to be paid to continue creating content that their audience craves. Direct selling companies that figure out how to leverage influencer talent and audience are going to be steps ahead. 



Privacy and Online Security

If immediacy plus interconnectivity is the ying for the 21st-century customer, privacy plus online security is the yang. The technological trade-off with an open digital experience is more exposure and risk to personal privacy and security. The more services and servers that know about and host my data, the more at risk I am of being the victim of hacks, security breaches, and identity theft.

While IT executives might complain of trying to service the double standard of openness and security, it remains the expectation from today’s customer. Yes, you must help me have a seamless, integrated experience and keep my data private and secure. 

For direct selling companies looking to thrive in today’s fast-changing environment, they will have to make an honest assessment of where they stack up against these 21st-century expectations. Questions they should be asking themselves:

• Who on our executive team is equipped to help transform our UX (user experience)?
• How do our vendor partners stack up against these expectations? Do we believe that our partners have the people and vision to deliver the user experiences we need?
• How ready and willing are our existing top field leaders to go through the changes needed to attract and keep a new generation of sellers and customers?
• Do we have the organizational discipline to plan for, budget for, and execute the changes we need to make?

 
And if any direct selling company does not sense the urgency to transform themselves, they may sadly find themselves like retail companies (e.g. Toys R Us, Blockbuster, Radio Shack to name a few)  that also underestimated the need to cater to online audiences. And those that make today’s digital consumer a real priority can look forward to being a part of the next generation of direct selling companies.

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This week’s featured article is a brief compilation of industry news of significance from 2019. As you scroll down, I am sure you will agree with me that it was most certainly another exciting year for the industry with all the positives and the negatives.

I have also included articles from The World of Direct Selling that attracted much interest last year.

> Herbalife CEO Richard Goudis Resigns Over Comments He Made Before Taking the Job
> New Avon Names Laurie Ann Goldman CEO
> Stella & Dot to Exit European Market
> China Launches Campaign to Regulate Health Product Market
> Nerium Gets New Name
> Jeunesse Posts Record Year with $1.46B in Annual Sales
> Mary Kay Celebrates 50 Years of an American Icon – the Mary Kay Pink Cadillac
> LuLaRoe Founders Accused of Hiding Millions to Avoid Creditors

Most-Read Article in January on The World of Direct Selling:
What Direct Sellers Can Learn from the Corporate Training Industry (Vince Han)

> Amway Reports Sales of $8.8 Billion USD in 2018
> USANA Posts Another Sales Increase as China’s Direct Selling Clampdown Looms
> Avon Sees Revenues Decrease in Q4, Full Year 2018
> Herbalife Neared $5 billion Mark in 2018; Waits for Other Shoe to Drop in Goudis/China Probe
> Medifast Announces 87% Revenue Increase in Q4 and 66% for the Full Year
> Nu Skin Expands to Peru
> Skin Care Billionaires Rodan and Fields Return to the Teen Acne Market

Most-Read Article in February on The World of Direct Selling:
The 7 Giants’ 2018 Growth Review (Hakki Ozmorali)

> Fact or Fiction? Let’s Set the Record Straight – US DSA President
> Brazil’s Natura and Avon Confirm Deal Talks
> Nature’s Sunshine Reports $365 Million Sales for 2018, Up 7%
> Tupperware Parties: Suburban Women’s Plastic Path to Empowerment
> Two Mary Kay Executives Make Black Enterprise’s 2019 Most Powerful Women List
> Why Direct Sales Appeals to So Many Moms

Most-Read Article in March on The World of Direct Selling:
Common Pitfalls that Prevent Profitability in Direct Selling Start Ups (Dan Murphy)

> DSN Announces the 2019 Global 100
> Young Living Celebrates 25 Years of Global Growth
> Amway Disrupts Its Own Beauty Business, Launching 50 New Mobile Apps
> More Than 100 LuLaRoe Sellers Have Filed for Bankruptcy
> How Blake Mallen Capitalized on the Gig Economy Before It Was a Thing
> Brazilian Cosmetics Giant in ‘Advanced Talks’ with Avon
> Mary Kay Recognized by Forbes as One of America’s Best Midsize Employers 2019

Most-Read Article in April on The World of Direct Selling:
Marketing’s New Role to Keep A Direct Selling Company Relevant (Jonas Hedberg)

> Oriflame’s Co-Founder Jonas af Jochnick Has Suddenly Passed Away
> Nu Skin Named the World’s #1 At-Home Beauty Device System Brand by Euromonitor
> Tupperware Names CEO Tricia Stitzel Chairman of the Board
> AdvoCare Business Changing
> Founding Family Offers to Buy Out Oriflame
> It’s Official: Natura Buys Avon

Most-Read Article in May on The World of Direct Selling:
AdvoCare Abandons MLM: Uncertainty Returns to Direct Selling (Jeff Babener)

> WFDSA Announces Record-setting 2018 Direct Selling Business Results
> LG to Acquire New Avon North America
> US DSA Announces 2019 Awards Winners and Highest Performing Companies
> Natura’s Avon Acquisition Creates the First Latin American Beauty Powerhouse
> Retail Was Never in Our Plan and It Won’t Happen in Future Also: Frederic Widell, Oriflame VP
> Kirsten Dunst Is Making a Show About a Cult-Like MLM Company
> Amway, the Family Business that Became Global (Google-Translated Text)

Most-Read Article in June on The World of Direct Selling:
2019: The Year Direct Selling As We Know It Changed Forever (Brett Duncan)

> Happi Magazine Announces Top 50 Household and Personal Products Companies
> Canada DSA’s Recipients of the 2019 DSA Awards
> Amway Sues Sellers for Trademark Infringement, Faulty Product Distribution
> As India Hicks Closes Her Luxury Label, Is This the End of Tupperware-Party Shopping?
> USANA: China’s 100-Day Crackdown Has Damaged Consumer Confidence; Sales Drop by 15%
> Mary Kay Champions Business Excellence, Ethics and Social Responsibility, Reaps Rewards in Europe
> Nature’s Sunshine Announces New Global Leadership Structure and Appointments
> Pampered Chef Succeeds in Trademark Infringement Battle

Most-Read Article in July on The World of Direct Selling:
Five Ways the Direct Selling Industry Can Achieve Sustained Growth (Ben Gamse)

> New Amway CEO Shares Digital Vision
> doTERRA CIO Todd Thompson: Social Selling Is Taking off
> Executive Changes at Scentsy
> LG Closes $125M Acquisition of New Avon
> Coty and Younique to Part and Focus on the Development of Their Respective Strengths
> US Direct Selling Association CBD Memo: Ingestible CBD-Infused Products Violate DSA Code of Ethics
> “Tupperware-Style” Retail Makes a Comeback with 27% Growth in UK

Most-Read Article in August on The World of Direct Selling:
Why Are They Leaving Our Company? (Hakki Ozmorali)

> DSA Canada Responds to Globe & Mail Article
> Natura Lands in Asia and Starts Operations in Malaysia
> Tracy Britt Cool to Leave Pampered Chef to Start New Venture
> Rodan + Fields to Launch in Japan
> WorldVentures Expands to Brazil
> Nature’s Sunshine Announces Entry into CBD Market
> MONAT Expands into Europe with Its Launch in Ireland and Poland
> Amazon Challenges Amway, Modicare and Oriflame Ruling in Supreme Court

Most-Read Article in September on The World of Direct Selling:
Natura and Avon: Will This Acquisition Work for Both Sides? (Hakki Ozmorali)

> AdvoCare Will Pay $150 Million To Settle FTC Charges
> FTC v. AdvoCare: Enforcement Action Demonstrates Importance of Compliance Programs
> Uber Is Launching a New App That Matches Freelance Workers with Businesses
> Herbalife Announces CEO Succession Plan
> How Mary Kay China Is Trying to Stay Relevant with Younger Beauty consumers
> Beautycounter Appoints COO and CCO
> Origami Owl CEO Chrissy Weems Explores the Roots of a Successful Business
> USANA Announces Appointment Promotion of Walter Noot to Chief Operating Officer
> Oriflame to Focus on Wellness, Position as Healthy Lifestyle Brand: CEO Magnus Brannstrom

Most-Read Article in October on The World of Direct Selling:
FTC vs. AdvoCare: A Teachable Moment for Direct Selling (Jeff Babener)

> Neora Files Suit Challenging FTC’s Attempt to Change Direct Selling Laws
> Herbalife, Younique, LuLaRoe And Other MLMs Suddenly Under Fire
> LuLaRoe: From Startup to Over $1 Billion in Less Than 4 Years. Lessons and Growing Pains
> Tupperware Appoints Chris O’Leary Interim CEO
> U.S. Charges Two Former Herbalife Executives in China over Bribery Scheme
> UK DSA Announces 2019 Star Award Winners
> Jeunesse Enters Global Essential Oils Market

Most-Read Article in November on The World of Direct Selling:
AdvoCare, Neora, an Ever More Aggressive FTC! What Now? (Alan Luce)

> Kyani Founders Identified as Victims in Plane Crash
> Former New Avon CEO: Company Reneged on $1M Severance
> USANA Announces Retirement of Founder and Chairman, Myron W. Wentz
> Why Market America Is a Legitimate and Thriving Business
> US DSA  2019 Sales and Marketing Conference Reveals New Data on Direct Selling and Independent Work
> The 10 Beauty Brands That Defined the 2010s

Most-Read Article in December on The World of Direct Selling:
5 Keys to Communications Confidence in 2020 (Crayton Webb)

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Hakki Ozmorali is the Principal of WDS Consultancy, a management consulting firm in Canada specialized in providing services to direct selling firms. WDS Consultancy is a Supplier Member of the Canada DSA. It is also the publisher of The World of Direct Selling, global industry’s leading weekly online publication since 2010. Hakki is an experienced professional with a strong background in direct sales. His work experiences in direct selling include Country and Regional Manager roles at various multinationals. You can contact Hakki here.

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Vince Han is the founder and CEO of MobileCoach and a frequent speaker at conferences such as Training Conference, DevLearn,  FocusOn, Online Learning,  ATDTK and others. He holds an MBA from the MIT Sloan School of Management. Vince is an industry thought-leader for learning and learning technology with an emphasis on artificial intelligence and chatbot technology. Vince has founded several successful technology companies and resides in Utah.

Guest Post by Vince Han
How Technology Will Disrupt Direct Selling – Are You Ready?

There is a quote attributed to Henry Ford that goes, “If I had asked people what they wanted, they would have said a faster horse.” This quote highlights the fact that when it comes to innovation, incumbents and established entities are blind to what’s coming until it’s too late. During the advent of the automobile, surely there were horse breeders and wagon makers who scoffed at its first iterations, but given ample time, innovation will disrupt even the most powerful and established companies.

In recent years, direct selling pundits and executives have bemoaned gig-economy services like Uber and Airbnb and their meteoric growth rates, saying that they have, snatched away time and revenue from what should have been direct selling’s target audience. Also to be bemoaned? The precision and friction-free online shopping experience that Amazon has created.



Looking at these services, it’s fair for a direct selling executive to be asking, “Shouldn’t these innovations have started with us?” But there’s another question that executive should be asking: “What else are we missing?”

Admittedly, forecasting trends and being bold enough to invest in them is much easier said than done. Rather than beating ourselves up, it’s useful to understand some basic human psychological biases that make embracing innovation so hard:

• Confirmation bias – We subconsciously seek out data that represents “proof” to confirm our current strategy, even if our current strategy is wrong. “I’ve asked all my neighbors and they all tell me that they would never give up their horse for an automobile.”
• Sunk cost loss aversion – We spend so much money and time with our existing initiatives that the prospect to throw that all away seems to defy logic. “We just invested a year’s worth of profits designing our new carriage line to accommodate four horses, there is no way we’d throw that away.”
• Greed – reed’s crowning attribute is to rob the future for the present. “We have a ton of interest in our new four horse carriage line now, let’s bank it and worry about the future later.”
• Herd mentality – We instinctively conform to group think, or the behavior of the herd which gives us a false sense of security. “Not one of our real competitors are looking at that automobile idea so it’s not likely that we are all wrong!”

So, in our defense, the fact that we are human makes it more likely that we are blind to important trends and innovation and we often view “innovators” as people with heads in the clouds and not based in reality. However, it certainly feels like we are at an inflection point in the direct selling business with more millennials being drawn to the idea of freedom of employment and more technology that interconnects us to a point where finding and selling to customers is not as hard as it used to be.

So what trends are on the horizon that direct sellers should be watching carefully (if not leading the charge)?

• Frictionless user experiences – One of the hardest things to do is to make things simple, which is why the companies who figure this out truly are innovators. This means that there cannot be any sacred cows preserved in the design process of the experience you design for your customers. Each click or swipe that you require a distributor or customer to do has so much more cost than you think. The best emerging services in the world are so frictionless that any friction in your flow will make the  experience feel clumsy in comparison.
• Multi-sensory user experiences – The value of augmented reality and virtual reality still feel elusive to you? These technologies are just getting started and while the initial use cases that dominate their headlines seem more centered around gaming, the potential is tremendous. Imagine party planning hosts constructing elaborate virtual or augmented reality parties or creating real-life simulation trainings for your distributors. Imagine being able to hold meaningful conversations “face to face” with someone across the globe with simultaneous translation?
• Artificial intelligence and chatbots – Hollywood has done us all a disservice by portraying the ideal of a computerized AI and chatbots being able to converse with humans at an emotional level, like a friend. Therefore, many people don’t believe chatbots have value until Siri can actually replace a real friend (she is far from being able to do that). Quietly, there are arising many value-filled use cases for chatbots and AI, including step-by-step onboarding experiences, informational assistants, front-line customer service, and more.
• Robust API and IoT ecosystems – If direct selling companies do not have robust, extensible APIs with their databases, they will inevitably fall behind. The more context you have, the better chance you have to deliver the right content to a customer. Context requires “things” to talk with each other from the physical things in your environment (hence “Internet of Things” or IoT) but more importantly, systems. Making contextual data available at your distributors’ fingertips is a powerful innovation. Most companies have some semblance of a dashboard today, but imagine a dynamic dashboard that updates you on the most up-to-date, actionable data no matter where you are.
• Software that works – This one is admittedly a bit tongue in cheek but developing software that works the way it’s supposed to can be hard stuff. One could argue that the companies that just deliver software that works are innovative in their own right! This represents companies who are disciplined, smart and restrain themselves from the dreaded biases listed above.

There are undoubtedly other important buckets of innovations not on this list. After all, the very definition of an innovation is developing something that didn’t exist before. So what now? You are committed to embracing the appropriate levels of innovation and disruption, where do you go from here so you aren’t stuck “trying to breed a faster horse”?

It’s critical that direct selling companies hire, retain and empower technology executives that understand  the complexities of implementing innovative technologies but are first and foremost champions of the user experience. Less experienced technology executives will let fear of bugs and scope creep direct their biases. More experienced technologists will be a champion of frictionless experiences and user delight.

Direct selling executive teams need to surround themselves with a diverse group of thinkers and doers, deliberately examining and challenging current assumptions as well as the data that is informing those assumptions. Healthy debate and counter-debate is a great antidote to the biases of herd mentality or loss aversion. These teams should also develop a culture of trial and error. Constant tinkering done with purpose and an infrastructure of measuring ROI will do wonders to keeping open minds and staying ahead of the competition.

Which direct selling companies will be the multi-billion dollar companies of tomorrow? I’m betting on the innovators.

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Guest Post by Vince Han
What Direct Sellers Can Learn from the Corporate Training Industry

The success of any direct selling organization is determined by how knowledgeable, skilled and motivated their field distributors are. Thus training has always been a major pillar of a direct seller’s sales and marketing strategy.

Similarly, large corporations (or any size corporation for that matter) are only successful as far as their people are able to carry them. All major corporations have a team dedicated to training and developing their people. These teams are often called L&D (Learning and Development) or Talent Management teams.

Of course, direct sellers differ because their sales organizations are not employees that report to an office and a manager,subject to promotions or firings based an annual performance review. No, direct sellers have a decidedly unique challenge in influencing and shaping the development of its army of entrepreneurs. That said, there is much that direct sellers can learn from the structured, methodical way that corporations train and develop their staff.

Here are the top lessons that direct sellers can learn from corporate training best practices:

• Enable learning technology 

Corporations have turned to learning technologies such as Learning Management Systems, chatbots, e-learning courses, e-learning libraries and alike to empower employees to be able to constantly learn and develop. These tools also allow the organization to manage and measure all the learning that takes place. Direct sellers can take advantage of the plethora of learning technologies that have been developed in the past decade to power the development of their field.

• Hire instructional designers

Believe or not, there is an army of specialists whose expertise is designing training to be most effective for a learning audience. Direct sellers can tap into this talent pool to update their training materials to meet today’s ever changing digital workforce.

• Establish a training ROI sensibility and measurement infrastructure

In an always data-driven environment, corporations are insisting that every investment have an ROI associated with it. Why should training be any different? Smart organizations can tie training initiatives to business outcomes, thereby manage their investments strategically and wisely. Direct sellers should be able to ask themselves, “If we teach a certain skill, how can we measure its outcome?”

• Identify skills gaps

A key element in many corporation’s training strategy is to start with assessments to determine skills gaps. Whether a “360” assessment or some kind of personality guide assessment, helping people recognize their strengths and gaps is an important prerequisite to getting their buy-in with whatever training they need.

• Espouse a career-building philosophy

Today’s workforce is accustomed to the idea that they are highly likely to switch jobs a number of times throughout their career. In fact, a recent PwC study^[1]showed that millennials most valued the opportunity to learn and grow when asked about what is most important to them in the workplace–rating it even higher than salary. Employers that help “up skill” their workforce do risk that they will be investing in their people only to benefit a future employer,but they risk even more by not training them. There is an purported exchange between executives of a major corporation that went like this:

CFO: “What happens if we train our people and they leave?”

CEO: “What happens if we don’t and they stay?”

Corporations cannot afford to ignore building the skill sets and careers of the people they most depend on.

• Make required training accessible and engaging

“Performance support” is a training buzzword that has really taken root among training professionals in recent years. The term refers to providing resources for an employee to help them do their job (e.g. imagine a job aid such as a picture of a pizza to help someone at a pizza store know what toppings to put on each type of pizza). In complex job functions like sales, providing resources at a learner’s fingertips delivers huge value to the learning curve of that person. Direct selling companies need to deliver training resources right at the fingertips of their field and that training should be easy to navigate and intellectually engaging.

• Understand the role of the manager

Corporations understand that training is only as effective as what lessons end up being applied on the job. Gone should be the days when someone attends a training and takes copious notes, only to forget everything learned a week later. Training is exponentially more effective when one’s manager gets personally involved in the training process. For example, what if your manager approached you and said, “Vince, I’m sending you to a training to learn how to work pivot tables in a spreadsheet. This is a vitally important skill that our team doesn’t have.When you get back, you’ll teach it to the rest of us.” In this scenario, how much more likely is Vince to pay attention and really focus on learning the training? A lot more. Similarly, if a new distributor’s sponsor or leader took express interest in the training path of their new team member, that training would be that much more meaningful and effective.

Direct selling companies can benefit tremendously by implementing these ideas and best practices garnered from the corporate training industry and, as they do so, they will not only see a more successful sales field but also a more loyal one.

^1] https://www.pwc.de/de/prozessoptimierung/assets/millennials-at-work-2011.pdf

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From the very beginning, we have been featuring articles from renowned personalities from the global direct sales industry. You will find their insightful articles below.

Jeff Babener (1948-2020)
Jeff Babener was the principal attorney in the law firm of Babener & Associates. For more than 30 years, he advised leading U.S. and international companies in the direct selling industry. Read from Jeff Babener

Meredith Berkich
Meredith Berkich is the President of LifeWave. She was the Chief Growth Officer at Jenkon, working with corporate leadership seeking solutions to digital transformation and business evolution. Read from Meredith Berkich

Jeff Dahl
Jeff Dahl is recognized as an industry leader and innovator, with over 35 years of experience working with global consumer brands and direct selling companies. Read from Jeff Dahl

Clark Diemer
Clark Diemer is an Associate of Strategic Choice Partners and the owner of Left Hook Videos. He has worked closely with more than 30 different direct sales companies. Read from Clark Diemer

Brett Duncan
Brett Duncan is Co-Founder and Managing Partner of Strategic Choice Partners, a business development firm that helps direct selling companies take their next steps. Read from Brett Duncan

Jonathan Gilliam
Jonathan Gilliam is the Founder & President of Momentum Factor, a compliance software and services firm serving direct selling companies exclusively. Read from Jonathan Gilliam

Vince Han
Vince Han is the founder and CEO of MobileCoach and an industry thought-leader for learning technology with an emphasis on artificial intelligence and chatbot technology. Read from Vince Han

Rick Loy
Rick Loy is an Associate with Strategic Choice Partners, and a sales strategist and training specialist with more than 20 years of experience as a Senior Executive in direct selling. Read from Rick Loy

Alan Luce (1945-2021)
Alan Luce was Co-Founder and Managing Principal of Strategic Choice Partners. He was a US DSA Hall of Famer and a member of the DSEF’s Circle of Honor. Read from Alan Luce

Peter Maddox
Peter Maddox has been the President of the Direct Sellers Association of Canada since early 2018. He has extensive experience in the association world and the marketing industry. Read from Peter Maddox

Michele McDonough
Michele McDonough is Co-Founder of  C3 Executive Search, serving the companies in the acquisition of exceptional executive talent in the direct selling channel. Read from Michele McDonough

Max Pecherskyi
Max Pecherskyi is Co-Founder and CEO of PromoRepublic, a distributed marketing platform for multi-location brands that launched a social selling solution for direct selling businesses. Read from Max Pecherskyi

Andi Sherwood
Andi Sherwood is the Director of Strategy and Plan Design at Dan Jensen Consulting. Since joining in 2066, she has personally designed more than 400+ compensation plans globally. Read from Andi Sherwood

Don Sorensen
Don Sorensen is an Associate with Strategic Choice Partners. He is an online reputation management authority whose expertise has been featured in numerous prominent publications. Read from Don Sorensen

Gillian Stapleton
Gillian Stapleton was the CEO of Direct Selling Australia between 2016 and 2022. She was appointed to this role as the first female in the association’s 54-year history. Read from Gillian Stapleton

Nancy Tobler
Nancy Tobler is an Associate of Strategic Choice Partners, and Chief Data Analyst at MLM Compensation Consulting. She has worked in the direct sales industry on commission analytics for 20 years. Read from Nancy Tobler

Crayton Webb
Crayton Webb is the owner and CEO of Sunwest Communications, a public relations and public affairs firm. Previously, he was the VP, Corporate Communications at Mary Kay. Read from Crayton Webb

Ben Woodward
Ben Woodward is an Associate of DISSECT and the author of a best-selling book. He previously assumed executive roles at various internationals like Amway, Melaleuca and Nikken. Read from Ben Woodward 

Daryl Wurzbacher
Daryl Wurzbacher is the CEO of ByDesign Technologies, a company dedicated to delivering leading-edge capabilities in software-as-a-service, and platform-as-a-service solutions. Read from Daryl Wurzbacher

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