Building a smart international expansion strategy means looking for momentum-building markets with untapped growth potential. In 2024, that indisputably includes the Hispanic and Latino markets.

In Mexico alone, the direct selling market is projected to surge to $19.48 billion by 2028. That staggering number doesn’t include the more than 60 million Latinos living and working within the US, or the fact that direct selling is already a staple for the Latin American population, where a quarter of beauty and personal care sales take place through a direct selling relationship (compared to eight percent globally).

“Latinos in the United States represent a larger consumption market than the entire economy of nations like Italy, Canada or Russia,” shared Judith Sanchez Lopez, PM-International General Manager, Latin America. “If Latinos living in the United States were an independent country, the US Latino GDP would be the fifth largest GDP in the world, larger than the GDPs of India, the United Kingdom or France.”

There are a number of direct selling companies who have already captivated the Hispanic and Latino markets and are thriving. There are two distinct scenarios at play here: US-based companies that are dominating in Hispanic markets and foreign-based companies doing the same.

DSN 2023 Bravo Growth Award winner Princess House successfully serves this corner of the US market. Other examples include 4Life, Hy Cite, Immunotec and relative newcomer ACTIVZ. These companies are also strong in other Spanish-speaking markets.

Betterware de Mexico and Omnilife are based in Mexico and making huge strides in that market and throughout the region.

It could be tempting to assume that the same strategies and approaches that work for US customers would be a fit for the Hispanic population living within the US, or even the neighboring Latin American populations, but that assumption is a sure-fire way to fail. Ignoring the unique communication styles of each individual market is not only ineffective, it’s disrespectful. There are cultural sensitivities that should be honored; product preferences that need to be prioritized; and local talent that deserve to be elevated to leadership.

“Companies that want to be successful need to stop making Latin American countries an extension of their current market,” said Mauricio Domenzain, Immunotec Chief Executive Officer. “By that, I mean you really need to commit to the market. We can’t simply send one manager to Latin America now and then wait to see if it’s going to work or not. It’s a full commitment, not just the addition of another flag on your wall or your website. You have to truly become part of that market to understand the cultural needs.”

Copy and Paste Isn’t a Strategy

What works in the United States doesn’t automatically translate to success on a global scale. That goes for products, but it’s also a good rule to live by when it comes to communication, marketing materials and events. For companies founded in the US or who predominantly operate within the US, expanding to include Spanish-speaking consumers is not as simple as hiring a translator or relying on Google Translate. These translations are often choppy, with no regard for local idioms or speaking rhythms.

Solving for this pain point has been a game changer for brands like 4Life, who overhauled their communication process to treat Spanish as its own first language rather than relying entirely on English. The company now enlists two separate content creator teams, one who is primarily English-speaking and one who is primarily Spanish-speaking, to design materials. The end result prevents poor translations that damage credibility.

“If you go to our convention, we are 80-85 percent Hispanic,” said Brian Gill, 4Life Chief Marketing Officer. “Five years ago, out of respect, we stopped translating English to Spanish. It’s not enough to have great translators. A Hispanic whose primary language is Spanish should be the one creating our materials. It’s about empowering the affiliate to share the brand, and a poor translation is not a credible connection they are proud to share.”

Homogenous, hand-me-down resources communicate the message that international markets are inferior, less valuable and unappreciated. Conversely, when companies allocate the resources and staff necessary to maintain and develop a culturally relevant, localized brand with tools that take local language, lifestyle and history into consideration, customers and distributors take note. A successful entry into Hispanic and Latino markets is one that allows the population to embrace entrepreneurial opportunity while preserving its own cultural DNA.

“Entering the Hispanic market was not secondary or an afterthought; it was our primary thought,” said David Brown, ACTIVZ Chief Executive Officer. “Our Spanish-speaking distributors are constantly amazed that they get new products and materials first and that they weren’t translated from English. Everyone responds well to attention and responsiveness, and that’s probably the secret to our success.”

Honor Culture Past and Present

Family is a core value for the Hispanic and Latin American markets, and consumers in these demographics typically have great reverence for their parents and their tightly-knit communities. The US ethos of independent, self-made success doesn’t land the same within these cultures, so even well-intentioned corporate leaders commissioned from the company’s US headquarters could get off on the wrong foot without realizing it.

“It’s not only the language, but it’s also the culture that you need to understand,” explained Domenzain. “You need to have people on the ground—people directly from those markets—who understand and can serve that market the correct way.”

Leaders also need to consider how each new generation brings their own energy and inspiration to the foundational values of the Hispanic and Latin American cultures. From a corporate standpoint, that means being willing to adjust the speed and style of work. Omnilife addressed this generational evolution by implementing a shift from graphic design to a focus on social media, leaving behind big format printing in favor of video and digital formats and encouraging all of its departments to embrace the Gen Z style of work, which is quick to adapt to change.

“We are integrating younger generations into our corporate team, and that has helped make us relevant,” said Eduardo Ros, Omnilife Marketing Manager. “Our communications and packaging have become younger. We have received testimonies from people in Ecuador and Peru who tell us that working with second- and third-generation distributors who are younger has helped them see how best to take advantage of this opportunity and approach the business differently.”

Recognize the Uniqueness of Each Market

Each country and community has its own unique traditions and habits, and the Latin American market is no exception. There is no one-size-fits-all approach that would respectfully reach this vast audience, and it’s important to remember that there are distinctions among the adjectives often used to describe this diverse group of cultures within and outside of the US. The word Hispanic describes Spanish speakers, including those living within the US and Spain, while Latinos is reserved for those living within Latin America, including Brazil, where Portuguese is the official national language.

“Hispanics in the US are not a monolith,” Sanchez Lopez said. “They are a combination of countries, cultures, slang, levels of acculturation and generations. You need to decide who you want to target, understand what sets them apart and then ask yourself if your company is communicating and interacting in a way that respects their cultural differences and strongest drivers.”

For companies with a broad footprint across countries with similar but distinct cultures, discovering what makes each market tick is critical to securing healthy, welcomed growth among distributors and potential customers. Hy Cite, for example, courts Latinos in eight different countries, including the US and Brazil. Efficiency is incredibly important, so the company harmonizes its content, but it also takes care to modify even the smallest details to communicate that each individual market matters.

“The way we present our products changes depending on the audience,” said Paulo Moledo, Hy Cite President and Chief Executive Officer. “Our recipes used on social media, for instance, feature arepas in Colombia and tacos in Mexico. We also pay attention to our call center services. We learned the hard way that the agent accent speaking to customers from different markets is an important variable.”

Moledo also emphasizes the significance of making sure corporate expresses with actions that they value distributors’ wellbeing just as much as their earning opportunity. For Hy Cite, that means facilitating a close relationship between executives and top leaders; leaning into recognition; and designing ways for distributors and customers to voice their opinions and experiences.

“Latinos, more than most, need to feel heard,” Moledo said. “As fast as we could after the pandemic, we started having events, conventions and meetings with independent distributors, and the attendance has been outstanding. We invest more today in events than we did pre-pandemic, but the return on that personal, face-to-face touch is great.”

Operating with inclusion and respect as the highest priorities is non-negotiable. It’s imperative that companies take the extra steps to ensure the opportunity they are presenting is tailor-made for the audience receiving it, and that their presence improves the quality of life for the people who call that country home. When diversity of backgrounds and ways of doing business are treated with dignity and honor, executives who have successfully built bridges into the Latino and Hispanic cultures say there is a shared entrepreneurial spirit that transcends language barriers and countries of origin.

“It doesn’t matter what language you speak or what country you’re in, everyone is looking for the same thing,” Domenzain said. “To be a part of something bigger than yourself.”

From the November 2023 issue of Direct Selling News magazine.

The post Hispanic Market is booming first appeared on Direct Selling News.

“Our team is always looking for new ways to better support our dedicated Brand Partners in growing their businesses,” said Bo Short, Chief Executive Officer of Elevacity International Holdings, LLC. “While this is just a first step, it is one that puts us on a good path to empowering our field to build globally. We’re excited to share these resources and continue identifying new ways to support our community of entrepreneurs in achieving their business goals.”

The launch of these new resources complements the company’s recent international expansion into several European and Latin American markets.

The post The Happy Co. Brings Spanish-Language Resources to Growing U.S. Latino Market first appeared on Direct Selling News.

The website, available in both English and Spanish, includes new business-building features, such as online event creation, along with improved search functionality and localized international pricing. The site enables a mobile responsive user experience, fast and effective launches in new markets and reduced maintenance efforts.

“Social selling has become an increasingly popular marketing tool that leverages various social media outlets such as Facebook, Instagram and other forms of media,” said Youngevity President and CFO Dave Briskie. “This launch is an important benchmark in our overall business strategy. We anticipate that this platform will contribute to our organic growth in 2018 and beyond. We are forecasting hundreds of online socials selling events to take place each month.”

Youngevity’s 2017 launch of a social selling pilot program resulted in $4 million of organic revenue over the course of the program. The company anticipates this new selling system will provide further differentiation as Youngevity expands its omni-direct sales and marketing systems.

The new platform is being launched across six countries, including the United States, Canada, United Kingdom, Mexico, Australia and New Zealand.

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In This Issue:
The Most Influential Women in Direct Selling
Bringing Gender Parity to Direct Selling 
Advocating for the Direct Selling Community 
Navigating the Millennial-Driven World
Sticking to a Winning Business Model
Leading with Passion and Commitment
Launching New Products and Segments
Recruiting and Retaining the Field
Direct Selling Icons

Since 2011, participation in direct selling has steadily increased each year, according to the U.S. Direct Selling Association (DSA).

About 5 million Americans became a part of a direct selling company over the past five years, joining more than 15 million others already in the channel. Worldwide, there were more than 107 million independent representatives in 2016, up 10 million since 2013, according to the World Federation of Direct Selling Associations (WFDSA).

The opportunities the channel offers individuals are as varied as those who participate in direct selling. According the DSA’s latest research, for 800,000 Americans, it is the chance to own their own business; for 4.5 million others, it is the avenue to earning supplemental income working on a part-time basis. Millions more simply desire discounts on their favorite products.

And direct selling companies are developing strategies to keep independent representatives active longer, from engaging more deeply in their first few days and weeks, to providing quick wins in recognition and compensation. The executives say they believe such initiatives will appeal to prospective entrepreneurs on several levels—financially, culturally and philanthropically.

Key Drivers

Dr. Oi-Lin Chen, President and CEO of health and beauty company Sunrider International, believes key factors to recruiting and retaining representatives include company longevity, products and the compensation plan.

“People are attracted to our opportunity because our company has a 35-year history of success and financial stability,” Dr. Chen says. “They like the fact that we self-manufacture our products; they know we stand behind our products. Prospects are always interested in the products you are selling because they are putting their own reputation behind them. They need to feel that the products are effective and consumable, something that customers will keep purchasing.”

Dr. Oi-Lin Chen, President and CEO, Sunrider International Dr. Oi-Lin Chen co-founded Torrance, California-based health and wellness company Sunrider, with her husband, Dr. Tei-Fu Chen, and oversees daily operations in over 50 countries and regions.

Sunrider recently launched a new compensation plan that, according to Chen, rewards the key behaviors of selling, sponsoring, developing and leading. “If they do the right actions, they can decide how much they want to make,” she says. “The plan has baby steps for new independent business owners (IBOs), so they can achieve success right away—because the first 90 days are the most important to an IBO’s retention. We have a step-by-step training program to help them achieve their goals, so they feel that the business is simple—an opportunity that everyone can do.”

When Wendy Lewis and Randy Ray founded anti-aging skincare company Jeunesse in 2009, they had two very specific reasons for creating the company. First, they wanted to help as many people as possible reach their goals and fulfill their dreams; second, they wanted to help children around the world. Lewis, who also serves as Chief Operations Officer, believes this combination of personal achievement and philanthropy resonates with people universally.

“Essentially, I think people want the opportunity to achieve in a supportive and inspiring environment and the chance to make a difference,” Lewis says. “As an industry, our role is to offer pathways to success and support systems to get them there. In addition to the essentials—viable earning opportunities, training programs and outstanding marketing support tools—key drivers should include intangibles such as creating a strong company culture and embracing a higher purpose.”

Cultural Connections

In 2016, nearly 40 percent of the record 20.5 million Americans who participated in direct selling were minorities, led by Hispanic-American entrepreneurs at 22 percent. Ethnic and minority groups recognize direct selling as an attractive and affordable way to build a business, in a manner of their choosing and conducive to their economic, family and social priorities. Hence, direct selling companies are attracting these first-time entrepreneurs.

“Minority groups sometimes have a hard time finding a good job because of the language barrier and a different environment and culture than they are used to,” Chen says. “We find that they are open to a direct approach about the business opportunity, so we emphasize different aspects of the opportunity, such as financial freedom and connecting to their community locally and globally.”

Wendy Lewis, Founder and Chief Operations Officer, Jeunesse Global Wendy Lewis co-founded Lake-Mary, Florida-based anti-aging skincare and wellness company Jeunesse with her husband, Randy Ray, after a successful career building and later selling a medical practice management supplier company.

That global connection is of paramount importance to many ethnic and minority group entrepreneurs, as an established, familiar community emboldens them to share the opportunity. “Many of our minority IBOs have families and friends overseas, so they like the fact that we have a global, seamless compensation plan,” Chen says. “They can extend their business around the world. We have bilingual staff dedicated to supporting these specific markets, so they feel like we are ‘speaking their language.’ Our marketing tools and training are all translated into Spanish, Korean and Chinese in the United States.”

As a global company, Jeunesse has found success by taking the time to understand the culture and business practices of each location and by ensuring respected local leaders are in place to manage the market. “The U.S. market is a melting pot of many cultures, and we approach this market in the same manner, taking the time to understand the needs of the unique groups of entrepreneurs that make up this diverse marketplace,” Lewis says.

For example, the company recently launched a market initiative tailored to the Hispanic-American entrepreneur called VIVE Jeunesse, which takes the successful Jeunesse University concept and tailors it to the Spanish-speaking market, with all trainings and tools in Spanish and by the engagement of top Spanish-speaking leaders. This tailored approach helps attract Hispanic-American distributors and gives them the tools and training needed to not only begin, but to continue their Jeunesse journey.

In addition to this initiative, Jeunesse supports other cultural demographics by offering training and marketing materials in several languages. The North America comprehensive training kit, for example, is available in English, Spanish, simplified Chinese and French, and includes training and marketing support tools. In addition, the exclusive Jmobile business management app is available in 22 languages.

Retaining the Field

The direct selling business model is perfectly structured to appeal to people seeking greater autonomy over their working lives. The flexibility offered is one of the biggest reasons people join.  Still,  companies find themselves looking for new ways to keep new recruits as well as long-term independent representatives.

Lewis shares three ways that help Jeunesse retain its distributors: offering ample training opportunities through hands-on events held regularly around the world, providing marketing tools, and recognizing and rewarding achievement.

“We strive to create a culture, a sense of belonging and a purpose, that keeps the Jeunesse family of distributors engaged and committed to our mission to create positive impact in the world,” she says. “Not everyone who joins the Jeunesse family ultimately decides to stay. But those who do are so united and committed to our mission and our culture. I believe this sense of unity and purpose, coupled with our sincere desire to help them succeed, helps us retain distributors and grow the Jeunesse family around the world.”

At Sunrider, one focus is on helping new IBOs feel confident they can achieve their goal and fulfill their dream; therefore, the company strategy is to help them quickly succeed. In addition to email communication, every new IBO receives a phone call from the company in their first week welcoming them and helping them to set up their business. They can also immediately access the Sunrider training website to get started.

Open communication is another area in which Sunrider invests a lot of time. The business development staff is in constant communication with leaders, including private social media groups where they can immediately raise concerns as well as weekly webinars where they can ask questions.

“Our IBOs need to know that we care about them and support them,” Chen says. “This goes back to personalizing the business experience for them through one-on-one or small group interactions. This is why the personal phone call during their first week is important. They know they have someone at the corporate level they can reach out to.”

The Future of Training

It’s impossible to know what new tools will come down the pike in the coming years, but if past technology breakthroughs are any indication, then they are certain to help direct selling executives better connect with independent business owners everywhere. Breaking down geographic and language barriers, especially to companies with global footprints, is critical to the future of training in direct selling and, ultimately, recruitment and retention efforts.

“In today’s working environment, technology has been instrumental in improving our ability to connect with people, particularly across geographical distances,” Lewis says.

“In order to be effective in training and retaining distributors, connecting is critical. We have been successful connecting our family of distributors through the multitude of live events that happen across the globe on a weekly basis,” she adds. “For a long time, we’ve used technology such as video, conference calls and webinars to connect with distributors. Now we’re using social media, tools like Facebook Live and our Jmobile app to connect with and train distributors across geographic locations in multiple languages.”

While Sunrider still holds in-person training, the company extensively uses social media platforms such as Facebook Live and WhatsApp to conduct training. Private social media groups that are segmented by age, location and rank offer opportunities to discuss personal experiences and share tips. Weekly training webinars are consistently held, and views of them can increase 10 times when posted to Facebook or other social media channels.

“When we create any training, we’ve learned that it needs to be accessible and ‘bite-sized,’ ” Chen says. “IBOs don’t have the patience or attention span for hourslong training anymore. They are always asking us for shorter versions of our videos, and everything must be mobile-friendly now. For the future, we are investing in our own mobile apps and mobile-friendly websites, so training can be accessed from anywhere, and we are also making sure our training supports various language options.”

“It’s exciting to know that there is technology yet to be employed that will help us connect with distributors,” Lewis says. “I believe technologies that minimize the barriers of geographic location and language will be instrumental to offering new tools to communicate with and train distributors in the future.”

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