From humble beginnings to charting fintech frontiers
Intro: Reco McCambry is founder, president and CEO of Novae, a direct selling company focused on financial services and education. A member of the Forbes Business Council and an industry expert on Forbes.com, McCambry also serves on the National Small Business Association Leadership Council in Washington D.C. He was honored by his hometown of McDonough, Georgia, with a proclamation naming Jan. 19, Mr. Reco McCambry Day. Novae has been recognized by Inc. magazine, Inc 5000, as one of the Fastest-Growing Private Companies in America, three years in a row—2021, 2022 and 2023. In 2022, McCambry was named Innovator of the Year and received the Outstanding Leadership Award, and in 2023, Coles College of Business at Kennesaw State University named him Graduate of the Last Decade.
SSN: Tell us about your road to leading a direct selling company and why you chose this marketing model.
Reco McCambry: I started my journey in direct sales as an independent sales rep for Excel Communications back in 2001 at the age of 20 years old, while I was in college. I was recruited in the most classic way: A guy walked up to me at a car wash, asked if I was interested in starting my own business, handed me a few flyers with a business card, and told me about a meeting over the weekend that I was invited to.
Prior to that point, I had never been recruited for direct sales, nor knew anyone who was doing direct sales, at least to my knowledge. After leaving the car wash, I went to his
website, the first time I’d ever seen a lead capture page and an opt-in form. I watched the video, put my information on the site, and received an email a few minutes later. I ended up attending the meeting a few days later. My first year, I was able to leave my job. I was working with the Georgia Power Co. as a design engineer at the time as a co-op student. My second year, I was able to do six figures, and by my fifth year in the industry, my organization was producing millions of dollars.
In 2009, I started my first direct sales company, selling e-commerce sites and a few other retail products. My mother got sick, and unfortunately, I sold my interest in that company around a year prior to her passing away, but I was able to spend a little more than a year with her—almost every day—because of the success I had gained in the industry. Her dying wish was for me to go back to college and finish my degree. After selling my interest in that company, I went back and graduated with an industrial engineering degree. Then I got back into the industry, initially coaching a few young top money earners and launched a consulting and training company and started training their organizations.
A few years later, in 2014, I founded Novae. After a few years of offering several different types of products and services, I decided we should focus on financial education and financial literacy. In 2018, I decided to get my MBA. I started reading up on fintech and the potential for someone to get into it. We started to develop some APIs on our own, started doing more research, got the right partnerships, and completely transformed our model. Inc. magazine recognized us as being on their Inc. 5000 Fastest-Growing Private Companies in America list in 2021, 2022, and 2023. We’ve been doing relatively well, after that pivot. So, super excited about the people we’re impacting and about what we’re doing out here.
SSN: What drove your early success as an independent rep?
RM: No. 1 is being coachable. I thought I was a pretty smart guy; I was going to Georgia Tech on a full scholarship, majoring in physics and electrical engineering. However, when I went to some of these training events and looked at the information, I was overthinking a lot of it. But one of the things that I had the benefit of having was some great mentorship and a great sponsor. They explained to me early on that if you just follow the system and if you’re coachable and follow a process, you’re going to be able to make money. And I was smart enough to listen to that because a lot of the information I was given on the front end was so simplistic.
If I would have done it my way, I probably would have had no success and quit early on. But I followed the system to a T. And I duplicated that. So that would be the next thing, not only being coachable but making sure that you’re following a system that can be duplicated. Because everything I was able to do, I made sure it was so simple that I was able to teach other people to do it. And then over time, it just multiplied.
The third thing is staying hungry and maintaining strong faith. Because at the end of the day, if you’re hungry and you’re motivated, but don’t have that foundation of faith and have some core values and morals, you’re not going to have longevity. I’ve seen a lot of people make a lot of money in a short time, and then the next year they’re broke again, or they’re worse off because they’ve lost it all. Having that foundation of faith and staying hungry and humble definitely gets you where you need to go.
SSN: With the intense regulatory scrutiny of direct selling and financial services, how does your executive team maintain company and field compliance without sacrificing the boldness and grit that direct selling leaders are known for?
RM: We focus on compliance in three main ways. No. 1, we use compliance as a competitive advantage. We ensure our corporate office and top leadership embrace regulation and position compliance as a core value and strategic advantage. This approach, being upfront about regulatory requirements, builds trust with distributors and regulators, so we embrace it rather than shy away from it. Additionally, we’re proactive with our compliance culture, developing it from the top down. Whether it’s myself, the CEO, our CMO, COO, director of operations, VP of marketing, or other directors and leaders in the field, we ensure consistency in messaging, providing ongoing training and resources to understand relevant regulations.
The second aspect involves empowering our distributors within that compliance framework. We focus on the “why” by clearly communicating the purpose and benefits of compliance, ensuring they understand how it protects them, the company, and the customers. This protection is crucial for safeguarding their income and the opportunity. We provide clear guidelines, developing concise sales scripts, marketing materials, and compensation plans that comply with regulations. Additionally, we integrate compliance into the compensation plan, rewarding consistent adherence to compliance standards.
The third aspect is leveraging our strengths through careful partnership vetting and technology. As a fintech company, due diligence is key, so we partner only with reputable financial institutions that are compliant, simplifying our compliance efforts. Our technology enables us to offer services to consumers and small business owners efficiently, while our marketing is limited to regulator-approved content, ensuring consistent messaging and minimizing compliance risk. We also have a team monitoring social media to maintain compliance.
SSN: What does this channel need to do to improve its reputation and quiet the noisy detractors?
RM: I believe leadership is crucial. It starts with leaders continuing to lead and uphold high standards in running our organizations and what we permit within our companies. Achieving this collectively could transform the entire industry. The most beneficial aspect of my involvement in this industry is not just the money I’ve made but the person I’ve become through the process. I’ve become a better father, son, businessperson, leader, and human being. My mother raised me well, but this industry elevated my personal development. I see it as a personal responsibility to pave the way for others to achieve success by doing things the right way.
We must model the behavior we wish to see, both in how we run our businesses and in how we live our lives. This kind of accountability should extend from our corporate offices down to the organizations of direct sellers. However, many owners in the industry allow distributors too much leeway, sometimes even when it doesn’t align with the company’s core values. This distorts the company’s mission and affects the reputation of direct selling overall, making us all look unreliable. We must do a better job of recreating the narrative around direct selling, ensuring this effort reaches every level of the organization. As we do so, we’ll see the industry and the world change. Light will always drive out darkness, eliminating detractors and distractions as the light becomes brighter. If we all do our part collectively, we will succeed.
SSN: What are your thoughts on crypto? Should fintech direct selling companies steer clear of this controversial investment vehicle?
RM: Novae has never offered a crypto product and for the foreseeable future, never will. We strive to avoid controversial products and services to steer clear of regulatory issues. Novae has never offered such a product, and I don’t anticipate it unless there’s a significant shift in the marketplace toward greater acceptance. Moreover, we do not offer any investment vehicles or investment advice. My view is that individuals interested in investing or crypto should consult with someone licensed to provide guidance on these matters.
Regarding the involvement of companies in this space, I believe they should remain cautious until there’s clear regulation surrounding the product, ensuring they understand what they’re getting into. We have been approached by companies for white-label programs and co-brand partnerships, offering a fintech platform for integration. However, some partners that have offered crypto had to pivot or cease offering it due to the industry’s volatility. If anyone were considering starting a company with crypto as one of the products, my advice would be against it.
SSN: What are some of the unique challenges you face in the financial products sector that other direct selling companies may not encounter?
RM: In our sector, we offer credit products such as loans, business funding, lines of credit, and credit cards. We are at the mercy of the economic climate, influenced by interest rates—whether high or low—as determined by the Federal Reserve, and the varying willingness of banks to fund deals, whether in a tightening or more accommodating market. Conversely, when the economy suffers, we also offer products and solutions that help consumers find relief in areas related to their credit and debt loads, which significantly increases our revenue. Therefore, when the market is thriving, we do very well, but even when the financial climate is poor, we still perform strongly. We are fortunate to be in a position that allows us to navigate these fluctuations. While some challenges may affect us differently than other direct sellers, especially in downturns, we have developed ways to address these issues with additional services we provide.
SSN: What are your thoughts on utilizing network marketing for product segments that most people wouldn’t normally associate with direct selling?
RM: I believe the opportunity lies in verticals where direct selling has not yet penetrated. If you can identify and fill a need while remaining compliant, that’s where the opportunity is. When I started Novae, I aimed to fulfill a need within the industry that was lacking, not only in certain communities but in the industry as a whole. I’ve always learned, as many of us have in our initial direct sales training, that if you want to be wealthy, you should observe what everyone else is doing around you and do the opposite.
Growing up, we were poor—something I didn’t realize until I reached college and saw that we didn’t have much. Becoming an adult and starting to have more made me appreciate it more because I had so little growing up. I realized there were many people, myself included, who could have been further ahead in life if they had had more opportunities, information, services, mentorship, and guidance. I thought, what if there were a way to fulfill that need and also monetize it? For me, it’s a blessing and a godsend in what I do every day because I’m passionate not just about making money but making history—what we’re doing. And hopefully, anyone looking to start a direct sales company could feel excited about that. Whatever need you’re trying to fill may be related to how you grew up.
SSN: How will AI change, or improve your company?
RM: I am deeply connected with many individuals in the financial technology sector. With AI being a significant trend across various industries, it naturally holds a prominent place in fintech. We receive weekly inquiries about different opportunities involving AI. Fortunately, we have already been utilizing AI in our software, revolutionizing the credit-building industry. In 2022, we introduced the first AI-self-driven credit repair software, launching it right at the end of the COVID-19 pandemic.
Credit repair has been a controversial topic and service over the years but has also helped millions of people better address issues on their credit reports that were holding them back. Many states prohibit charging individuals for credit repair services. To navigate this, we developed software that allows individuals to pull their credit reports from all three major credit bureaus, identifies issues immediately, and, through machine learning, suggests ways to address these issues with the bureaus to clear up any errors with just a few clicks. Consumers can then print out the letters and mail them to the bureaus themselves, eliminating the need for a human to be involved or for consumers to pay a credit repair company to do the work. The AI enables them to handle everything independently.
Our approach bypasses traditional credit repair services or direct interactions with clients. Instead, the software empowers users by providing a clear view of their credit information, enabling them to make informed decisions.
SSN: How does Novae promote financial health and responsibility among individuals and small business owners?
RM: As I mentioned earlier, the primary reason we started our company was to offer financial literacy. Initially, our financial education comprised mainly YouTube videos and documents. Over the years, it has evolved significantly. We now feature many drip campaigns that offer free financial education through our marketing funnel products for distributors. This enables them to provide prospects with reports or courses aimed at helping them transition from poor credit and debt to homeownership and business ownership.
Additionally, we offer ongoing live online training, conducting several webinars weekly. A training library is also available to new customers and distributors, providing them with access to a wealth of resources right from the start. Distributors receive free services as part of their membership, allowing them to work on their personal financial situations through videos and emails.
We host live events to delve deeper into financial education, offering workshops where attendees can develop plans and programs for their advancement. Moreover, every newly enrolled customer and distributor receives drip campaigns that furnish them with financial education, further supporting their journey toward building their business and enhancing their financial literacy. Financial education and empowerment are at the core of what we do and are our greatest passion.
