Features
New survey sheds light on gig workers and their evolving roles in the trillion-dollar industry
By: Stephanie Ramirez
“Pre-Covid, people were saving the money they made from their gigs. Post-Covid, people are using their gig earnings to pay household bills. … If that continues, that’s a major change.” — Dr. Robert Peterson, Professor of Marketing and Chair of Business Admin., The University of Texas at Austin
In a comprehensive effort to unravel the intricate dynamics of the gig economy, a new survey sponsored by PayQuicker and the Ultimate Gig Research Project has been released, providing critical insights into the ever-changing world of gig workers in the United States. The research, based on surveys conducted in July 2020 and April 2023, forms an integral part of the extensive Ultimate Gig Research Project, dedicated to empirically assessing gig economy trends to enhance business strategies and inform public policy decisions.
A growing number of former distributors are using the statute to allege exploitation through misclassification
By: David Bland
The Beachbody Co., a fitness and wellness company known for its home workout programs, is being sued by one of its former distributors in a dual individual and class-action lawsuit filed under California’s Private Attorneys General Act (PAGA). The May 2023 filing was brought by Jessica Lyons, who joined Beachbody’s direct selling division, Team Beachbody, in 2016. Lyons’ lawsuit alleges that The Beachbody Company, Inc. (re-branded in 2023 as BODi) is exploiting its distributors (called Coaches) by misclassifying them as independent contractors instead of employees.
The 137-page lawsuit alleges that Beachbody, by misclassifying its Coaches, violated a wide variety of provisions of the California Labor Code that apply to employees, such as not paying them a minimum wage, not providing meal and rest breaks, failing to keep payroll records and wage statements, not reimbursing business expenses, and failing to pay unpaid wages at the time of separation of employment. The lawsuit alleges that all of these actions constitute unfair competition, in violation of California law.
The clock is ticking to avoid delisting on NYSE
By: Dave Rauf
“The Company intends to develop and submit this business plan within the required timeframe, and to identify measures that are in the best interests of the Company and its stockholders.” – Tupperware
Tupperware is at risk of getting delisted by the New York Stock Exchange (NYSE) for noncompliance, following the direct-selling giant disclosing in April that it might go bankrupt.
The latest in a growing list of issues for the maker of food storage containers and kitchen goods is the result of its average global market capitalization being less than $50 million over a 30-trading-day period. Also, its stockholders’ equity was less than $50 million when last reported, according to a regulatory filing.
Building success and a sense of community with nontraditional solutions
Bio: Charla Gervers brings over two decades of experience to her role as senior vice president of sales for J.Hilburn, a leading custom-made menswear brand in the direct sales industry. With a proven track record of success as a senior leader in the sales, marketing and personal development arenas, she has led success across numerous product categories, including nutrition, skin care/beauty, energy, travel services, and girls’ and women’s apparel. Her most recent prior roles include serving as chief sales officer at Matilda Jane/Good Hart and vice president of field development at Scout & Cellar. Gervers’ passion is inspiring leaders around the world to live full out and go get the life of their dreams.
SSN: You have a reputation for creating nontraditional solutions in terms of finding new ways to profit, to approach training, etc. Why is the strategy of thinking differently important, and how does it give companies an edge?
Unlocking the younger demographics by re-thinking traditional practices
“…We have to understand the mindset of the upcoming generations.” —Tami VanHoy, Head Executive over Field Development and Customer Support, pawTree
Attracting Millennials (and now Gen Z) has been top of mind for direct selling executives since the early 2000s, when the demographic began reaching adulthood. In the beginning, it was partly because Millennials were an even larger population than the Baby Boomers. And as those Boomers began aging out of the field—or at the very least, slowing down activity—the goal seemed more urgent.
The key to successfully attracting large numbers of these demographics may be removing the padlock most seasoned direct selling executives have previously advocated.
Global expansion, improved recruitment and in-person events drive profits
Herbalife
Slumping sales in North America and China sent Herbalife to a 70% nosedive in first-quarter profit to $29.3 million.
The MLM giant reported sales during the first three months of the year were down by 6.3% to about $1.3 billion. That includes an 8.9% decline in North America, and continued sluggish performance in China, where sales dipped 36% compared to the same period a year ago.
CEO Michael Johnson said despite plunging revenue, the company will grow and results will improve.
“We’re evolving. And that’s what’s been happening over the last six months, and it’s going to continue,” Johnson told analysts during a recent earnings call. “We still aren’t where we want to be, but we have embarked on a significant journey.”