SSN Admin
PEOPLE ON THE MOVE – December
December 01, 2023
Bryon Ellington, eXp Realty
Exp Realty has hired Bryon Ellington as chief learning officer. Ellington brings more than 20 years’ experience in real estate and coaching to the role and will develop agent-driven training and coaching. Previous executive roles include chief operating officer and chief development officer at Century 21 as well as positions at Keller Williams.
Greg Gittens, Modere
Modere has appointed Greg Gittens as chief financial officer. Gittens is a seasoned finance executive with more than 25 years of experience in financial strategy and operations management. Prior to joining Modere, Gittens was a partner at Emil Capital Partners and held roles at Stila Cosmetics, Estee Lauder, and others.
Hello friends,
That’s a wrap for 2023! I am happy to present our year-in-review issue — a look back at the stories and expert contributions that documented the dynamic state of social selling within the context of a rapidly evolving technological landscape countered by challenging economic realities.
The direct selling sector witnessed formidable challenges this year, from global inflationary trends to continued regulatory targeting. Yet, despite these hurdles, network marketers demonstrated remarkable adaptability and innovation.
Companies across the channel took risks and explored novel strategies — we saw collaboration amongst competitors, retail partnerships, and an embrace of rapidly evolving AI technologies to turbocharge marketing, tools for the field, and backoffice performance.
It was also a year for victories. 2023 saw some major financial moves that injected new life into struggling companies, strategic advances into new global markets, and continued progress towards sustainability and the use of green energy.
I also count as a victory every single person and community that was touched by the philanthropic giving of the direct selling channel. Companies demonstrated their generosity and dedication to helping others throughout the year. And rounding out the year was perhaps the channel’s greatest victory — the triumph of Neora over
the FTC.
I am very excited to see what 2024 has in store for direct sellers. In addition to bringing you the news that directly affects your business, we look forward to bringing you insights and advice from your fellow direct sellers as well as timely reporting on new marketing platforms and advances in data analytics. We also want to share with you the continued innovation of unique and profitable partnerships that have become a hallmark of direct selling in recent years.
So, here’s to a new year filled with even more achievements, breakthroughs, and success stories. I know that I speak on behalf of my entire staff when I say THANK YOU for you for your readership and for your invaluable contributions to this publication.
I wish each of you a truly special holiday season.
Warmly, David Bland!
Commission addresses AI-related consumer concerns to ensure ethical use and market integrity
By: David Bland
“AI, in particular generative AI, is still evolving rapidly, but it already has the potential to transform many industries and business practices. Notably, there is no AI exemption from the laws on the books.” - FTC
In the continuously evolving landscape of direct selling, 2023 witnessed the emergence of artificial intelligence (AI) and the tools it powered as a transformative force within the channel. As in other business sectors, direct selling companies have begun integrating this technology into their core operations, harnessing AI to enhance customer engagement, optimize supply chain management, and refine sales strategies with advanced analytics and predictive modeling.
Regulators are also keeping a close eye on these technologies. As businesses across the country embrace these new tools, the Federal Trade Commission (FTC) has made it known that it is vigilantly monitoring the marketplace and company behavior on behalf of consumers. The Commission’s Office of Technology is tasked with analyzing AI’s trends and advancements as well as its risks to ensure that these emerging tech products are used by businesses in a manner that is both ethical and compliant with existing consumer protection laws.
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Strategic shifts and new product lines mark the channel’s response to economic uncertainties
By: Dave Rauf
Herbalife
Herbalife’s third-quarter profit fell roughly 48% as sales in the U.S. and China continue to slump.
The direct selling giant reported a profit of $42.8 million for the quarter on total sales of $1.3 billion. Herbalife’s revenue for the third-quarter was flat compared to the same time a year ago. Total sales declined 1.5% from last year when calculated on a constant currency basis.
Moving forward, Herbalife CEO Michael Johnson said returning to growth in the U.S. and China — two of the company’s most important markets — will be “our primary focus.”
An Herbalife regional team is launching new initiatives to drive recruitment, stimulate engagement, improve productivity and support the company’s return to sales growth in the U.S.
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January Headlines
US Labor Department Proposes New Independent Contractor Rule
President Biden’s Department of Labor (DOL) is finalizing a new rule under the Fair Labor Standards Act to redefine independent contractor classification, aiming for completion in the second half of 2023. This follows extensive public feedback, including over 55,000 comments since October 2022. The proposal revisits the Economic Realities Test, introduced by the previous administration, to determine employee versus contractor status. The DOL seeks a more holistic approach, in contrast to the 2021 rule’s focus on key factors. Groups like the Direct Selling Association and the U.S. Chamber of Commerce, as well as Republican legislators, have raised concerns, citing potential confusion and impact on small businesses and independent workers.
FTC Issues Revised Compliance Guidance for Health Products
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Is your Website a Potential Liability?
April 2023 Issue - By William M. Miller
In this digitally dependent world, the first contact many consumers have with a company is through its website. As a result, more than ever, it is essential to have a website that complies with both United States and foreign laws, not only to safeguard potential and existing customers but also to avoid costly lawsuits that may result from non-compliance.
With a few exceptions, it is well established that any retail website doing business in the United States must be accessible to individuals with disabilities (particularly those that also do business through brick-and-mortar stores). As a practical matter, what this means is that the website must be coded to allow it to interface with screen reading software that enables a person that is blind or has low vision to access the website.
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How to Fight the Amazon Beast
January 2023 Issue – By Travis Wilson
With the massive increase in participation from everyday people in online marketplaces such as Amazon and Walmart, direct sellers are scrambling to prevent the erosion of their brands, lowering of price expectations, and reputational risk that comes from the unauthorized sale of their products online. Companies are facing billions of dollars in losses as marketplaces continue to profit from the enablement of gray market sales.
Direct sales companies are feeling the pinch across all categories, and are scrambling to stop these sellers and remove listings. Unauthorized sellers battle with companies for consumer dollars, and customers look for the least expensive way to get the product they want on their doorstep with free two-day shipping. This severely impacts a direct seller’s bottom line and hurts the field, as they often cannot compete with the cut-rate prices found online.
“Affiliate marketing streamlines the process of increasing sales by tapping into the skills of experienced marketers and a community of product evangelists.”
With new developments in digital technologies, growth in social media influence, and changing
consumer behaviors, direct selling companies are now stepping further into the digital age where social communities and marketers are joining forces and sharing in the rewards along the way.
The direct selling business model, in general, has always been centered around a strong sense
of community. As a competitive advantage over traditional retailers, direct selling companies
focus on the more social aspects of the business world, creating deeper connections with their
customers and sellers. Because of its community-driven nature, more and more
companies in the industry are introducing affiliate systems as a means of giving their brands greater reach and
generating more opportunities for growth within those communities.