Special Report
Top executives share their perspective on timing, preparation and clarity of purpose
By: Jenna Lang Warford
“We wanted to… make it more hip, more fun, but we did not want to disconnect with the overarching brand.” — Lela Tucker, Executive Vice President Marketing, Bella Grace Global
The trick to successful rebranding, according to Harvard Business Review’s November 2023 podcast, is to keep as much “cumulative advantage” as possible.
“The modern fantasy about wow, business is changing so quickly. You’ve got to keep morphing and changing, updating your brand, getting a new visual identity. Don’t do that. Why? …because you interrupt habit,” says Roger Martin, professor emeritus and former dean of the Rotman School of Management at the University of Toronto (Canada).
Company founders are reaching an even wider audience through authorship
“John Maxwell told me, ‘Your wisdom and experience are only viable for the audience that gets to come hear you. But if you put it in writing, you can add value to the lives of people who will never meet you.” —Logan Stout, Founder and Chairman, IDLife
Impact, inspiration, and legacy are driving forces in the direct selling channel—not just for field members but often for company founders, executives, and employees. In fact, what leaders do can be measured in thousands and even tens of thousands of people impacted.
However, there is a “next level,” and noted leadership expert and author John Maxwell pointed it out in a conversation with IDLife’s founder and chairman, Logan Stout. “Your wisdom and experience are only viable for the audience that gets to come hear you. But if you put it in writing, you can add value to the lives of people who will never meet you.”
Creating lasting legacies through charitable giving and passion-driven support is a cornerstone of the channel
“It’s humbling to see the impact Reliv, our Ambassadors and the Reliv Kalogris Foundation (RKF) have had.” Scott Montgomery, President, Reliv
By: Jenna Lang Warford
Direct selling is a channel driven by passion: that of the founders, the executive teams, support staff and, perhaps most of all, the sales field. So it’s no surprise that charitable giving is a prevalent component in many companies. While a few companies may have brought their charitable foundations more to the forefront due to Millennials’ and Gen Z’s drive to have careers with a cause they’re passionate about, most were already active and vocal about their give-back positions—some of which directly align with the company’s products.
For companies born of passion for the channel there are some key priorities
“If we can do the product right, and the e-commerce right, then the sales field puts fire on that. But it has to start with those two pieces.” —Melissa Soete, Growth Strategist
The direct selling channel is an industry born, and sustained, through passion. Both legacy companies as well as new startups are often founded by a leader who had his or her start successfully leading a sales organization. Mary Kay Cosmetics, Amway, It Works!, Senegence, ACN and Neora are among the most well-known examples.
Garrett McGrath, a former CEO who is also president of the Association of Network Marketing Professionals and has been a top field leader for over 30 years, says, “A founder who has never built in the field before tends to look just at the aggregate numbers or is more focused on ‘streamlining operations’ or ‘maximizing profits’ rather than serving the people who are out there every day promoting the products and opportunity. I believe that over time, such CEO/founders will inevitably make decisions at times that will cause teams of field leaders to leave their company.”
The House Oversight Committee calls for more FDA action to ensure safe hemp product access
By: Stephanie Ramirez
“It’s unfortunate that it’s taken this long for Congress to finally get a sit down with the FDA to get the ball really rolling here, but we’ve had a relatively long leash with CBD.” —Nate Farnsworth, Co-owner, Factory6 Inc.
The Subcommittee on Health Care and Financial Services within the Committee on Oversight and Accountability (U.S. House of Representatives) held a hearing in late July, titled “Hemp in the Modern World: The Yearslong Wait for FDA Action,” to examine the failures of the Food and Drug Administration (FDA) to regulate CBD and hemp-derived products.
The backdrop of this hearing traces back to the pivotal 2018 Farm Bill, which not only ushered in the legality of hemp cultivation and the sale of hemp-derived goods but also affirmed the FDA’s jurisdiction over regulating these products.
Veteran leaders share insight on keeping distributors during tough times
By: Jenna Lang Warford
“Denying or disregarding the issue at hand only prolongs the crisis.” —Al Bala, CEO and President, Mannatech
Though the U.S. direct selling channel had $40.5 billion in sales in 2022, it seems like every month there is a company facing negative publicity—some from company crises, others from docu-dramas, the Federal Trade Commission, class action lawsuits, or from aspersions cast by Truth in Advertising (TINA), even a groundswell from social media.
Grinding through these reputation management crises can test the mettle of any executive, but by prioritizing several things, an executive team can maintain the confidence of the field as well as its customers.
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.
Harnessing social media to foster curiosity, engagement and authenticity
By: Jenna Lang Warford
“The currency of social media is conversations.” — Scott Kramer, CEO, MultiBrain
This is Part 2 of our conversation about digital best practices that was first featured in the March 2023 Special Report. In that piece, contributor Jenna Lang Warford discussed “Digital Marketing’s Baseline for Growth.” Now, she will share more insights from channel executives about using social media to build community with distributors and customers.
Creating community on social media is a more complicated endeavor than creating brand recognition through savvy product placement and endorsements. Direct selling companies that crack the community code are using multiple platforms, incorporating comp plan tweaks and providing the field with strategic new training.
“After $2.35B in sales in 2021, we grew by 23% in 2022. This year, our recruiting is up 89%, January over January,” says Gordon Hester, PM International’s general manager of sales for the U.S. and Canada.
“When a company’s sales go backwards, there’s a tendency to say, ‘Whoa, we need to figure this out.’ No, you need to figure out how to get your field engaged. You’re seeing more companies that say, ‘We’re going to control (customer engagement).’ And the reality is, that’s the complete opposite of what you should do.”