Before we go too far, let’s first define what “headless” technology means. It refers to the separation of the front end, or user interface, from the back end, or server-side logic, of a web application. For instance, a headless ecommerce system separates the user interface from the back end, which manages orders, inventory, commissions and other essential data, while these two systems communicate seamlessly through a well-designed Application Programming Interface (API) integration.

Headless systems are especially attractive to companies in unique industries such as direct selling. With advancements in compensation platforms, they can consider separating the distributor back office from the back-end systems that store tree and commission data.

A headless approach eliminates the need to program the front-end systems to account for complicated compensation rules. Instead, they need to pass unique data to the commission platform and display calculated results provided by the system where earnings or volumes are generated. Removing these calculations from the front-end systems can bring significant improvements in the speed and functionality of the customer experience.

There are five key advantages of headless ecommerce for direct selling companies that should be evaluated.

1/ Faster Business Decisions

One of the most significant advantages of headless ecommerce is that it enables direct selling companies to bring products to market faster. With the front-end and back-end separated, updates can be made to the user interface without disrupting the back-end system. This means that changes can be made quickly and easily, reducing the time it takes to implement business decisions.

This can be particularly beneficial for direct selling companies as product catalogs and promotions change frequently. With a headless system, many of the changes to products or promotions can take place without large development efforts in the front-end display. This modular approach to product, country and promotion logic can save costs and bring your vision to life faster.

2/ Better User Experience

Headless technology also enables companies to provide a better user experience to their customers. With a decoupled system, companies have greater control over the user interface, allowing them to create unique and personalized experiences for their field. This can be particularly valuable in the direct selling industry, where building strong customer relationships has always been the key to success. Additionally, the front-end can be optimized for performance and speed, resulting in faster load times and a smoother overall experience.

This does not just apply to the ecommerce experience. Decoupling the front-end and back-end systems allows for these same type of optimizations in the back office and other customer-facing tools. Partner integrations like mobile apps and training platforms can also benefit from the ability to connect to the same back-end data points your field sees in their main reporting systems, creating a more congruent experience across your tech ecosystem.

3/ Improved Operational Technology

Another benefit of headless technology is its ability to integrate with other operational systems and platforms. With the front-end and back-end separated, the back-end can be integrated with other technology, such as marketing automation tools, customer relationship management (CRM) systems and alternative payment gateways.

With a traditional web application, integrations often require custom coding and development, which can be time-consuming and expensive. In a headless system, integrations can be done faster using APIs, allowing companies to connect with these other systems and platforms in a more streamlined and efficient way.

4/ Increased Scalability

Headless systems offer increased scalability, which can be a significant advantage for direct selling companies. In a traditional system, every customer interaction with the system has to go through the front-end and back-end systems to reach completion. This can put a tremendous strain on the systems and servers, especially during peak traffic times.

With headless systems, the front-end system handles the initial approval of a transaction before handing it off to the back-end system to complete the post-order processes, such as reducing inventory, preparing the order for shipment or applying commissionable volume. This separation of duties allows customers to see completed transactions without wait times while the back-end system completes post-order processes out of view.

By separating the workload between systems, companies can allocate resources where they are needed the most, saving time and money. For example, if a promotion is creating heavy front-end user traffic, additional server capacity can be added to capture the orders, while the processes surrounding shipping or commission calculation take place in the background unfazed by the heavy traffic. Targeting resources where they are needed the most prevents oversizing systems and unnecessary spending on unburdened processes.

5/ Future Proof

Technology is advancing rapidly, and it is crucial for companies to keep up with these changes to remain competitive. A decoupled system, like a headless system, can take some of the fear out of technology decisions by creating segments of the system that can be updated or replaced without a company-wide technology overhaul. The versatility to replace just part of a tech stack can give companies a future-proof architecture with the ability to adapt and integrate to the “next big thing.”

Direct selling is evolving, and the right technology can help companies lead the way. As companies consider the future, they should consider what a headless architecture can do for their company and field. By using headless systems, companies can achieve increased scalability; allocate resources where they are needed most; and future-proof their technology infrastructure.

Sean Smith is an accomplished business leader and lifelong entrepreneur with over 12 years of experience in the direct selling industry. As the CEO of InfoTrax Systems, a leading provider of software solutions, he has a proven track record of delivering innovative and effective solutions for his clients.

From the May 2023 issue of Direct Selling News magazine.

The post Headless Architecture Offers Many Benefits for Direct Sellers first appeared on Direct Selling News.

Direct selling is at a serious inflection point. With the triple threat of inflation, post-pandemic malaise, and the invasion of Ukraine continuing to burden sales for industry leaders, companies must ask themselves: how have distributor and consumer desires, expectations, and behaviors changed? Many direct selling companies have made the mistake of focusing on their processes, operations, and business results without considering the psychologies and behaviors of distributors and end consumers.

What can direct selling companies today do to account for these changes? How should direct sellers evolve to compete in the New Economy of the 2020s? The answers to the questions are at once simpler and more complex than most people think.

1. Distributors Are Tired.

While direct selling is somewhat siloed off from the larger economy (due to the industry’s singular nature), still, it can’t help but be affected by some of the dominant trends in the workforce. Chief among them is the same sense of overwork that sparked, first, the Great Resignation, and second, “quiet quitting” in traditional organizations. 81%+ of the workforce as of last year felt overwhelmed, while threats of a recession looming will not have helped matters in 2023.

The story isn’t all that different in direct selling, where 2021, the latest year with conclusive data, showed a 5.2% decrease in direct selling distributors overall. At best, it seems that consultant turnover rates remained stagnant through 2022, with sales productivity not reaching the highs of the pandemic, when members of the field were stuck at home and more likely to spend more time on social business-building at a time when loneliness was rampant among older adults.

In addition, distributors have simple ways to earn money that in their eyes, might not require as much initial effort. They can sign up with a gig platform. They can create an eCommerce shop after registering with Etsy. They can find part-time or freelance work. How can direct selling persuade distributors to give it their “timeshare” in today’s marketplace? If the New Economy has been defined so far by trends like the Great Resignation and quiet quitting, direct selling decision-makers need a way around this.

Direct selling field operations cannot proceed as normal without enhancing reliability, capability, and ultimately sales performance at scale among field distributors. Leaders in field operations and sales must reconsider how they drive field efforts or risk further corporate downturns.

SOLUTION: Embrace digital transformation and the benefits of modern technology.

At a basic level, direct selling is at even more of a disadvantage than traditional companies here. Distributors are obviously not employees and cannot be compelled to perform or be productive. They must be subtly, continually persuaded to sell. And so the “tools” that direct sellers use to appeal to distributors take on outsize importance.

The “tools” that distributors have access to, the means by which they onboard, upskill, and sell to consumers, are the points of connection between the company and the distributor: they are the main hinge point that binds the company together with the individual. When distributors see the company’s tools as bare bones, their estimation of the company goes down. When distributors see the company’s tools as state-of-the-art, their estimation of the company goes up. We see this borne out at Rallyware, where we provide an all-in-one field Performance Enablement Platform for sales forces.

Last year direct selling companies, after adding “Incentives & Recognition” tools to their Distributor Experience (i.e., the set of tools the distributor has access to), saw a 3.4X average increase in user sessions, meaning that richer, smarter, more state-of-the-art tools–or points of connection–result in a more engaged, less “tired” field.

We’ll dive into this more later, because from this solution alone, it’s not clear what kinds of tools are useful for the New Economy.

2. Consumers Are More Cautious.

Today’s consumers have to navigate inflation, a more uncertain job market, and the pressures of interest rates, all at once. It makes sense, then, that consumer-facing industries like retail and direct selling have seen downturns even among leaders. Meanwhile, as of December 2022, consumer spending on services had jumped 8.7% year over year, reflecting a shift in priorities away from tangible goods.

So part of the reason why direct selling has seen flagging distributor enthusiasm is this–it’s just become harder to sell. It’s harder to get customers to part with their hard-earned money. This is particularly true in the wake of the pandemic, when many consumers were spending more freely and now are tightening their purse strings. How do direct sellers drive field sales performance and behaviors, and thus more revenue (as well as earnings for distributors themselves, encouraging them to stay in the field)?

Again, though this might seem to be a consumer-facing question, it really impacts field operations. A maximally empowered field will be able to convert more customers. Operations and sales leaders would do well to pay attention.

SOLUTION: Embrace digital technology that connects distributor activities to real, measurable sales results. and the achievement of distributor goals and corporate business outcomes, at every turn.

Many technological, distributor-facing platforms simply provide “onboarding tools” or “learning tools” to make these processes easier, “digitalizing” them. While such tools can be helpful, they do not quite meet the moment nor the market, which require field sales performance enablement at every turn. Largely, Rallyware’s “Performance Enablement” model of technology architecture has been built to address this reality.

Performance Enablement means that each action taken by a distributor gets leveraged intelligently by the platform to enable higher (sales) performance. Nothing happens in a vacuum. When the distributor gets recommended learning content, the platform intelligently calibrates the right content to company KPIs (does revenue need to rise? How about retention?) and the distributor’s self-defined goals and sales progress.

The result is not just a “learning journey.” It’s a business-building experience attuned to the shifting needs and goals of the distributor, with the aim of driving the sales performance and behaviors that will benefit her and the company. Learning becomes upskilling, the enhancement of field capabilities. What we see is knowledge for the sake of enablement.

The point here is that it’s not enough to digitalize field operations, but to digitally transform the field experience in a way that enables and prioritizes sales performance. This explains why we’ve calculated that direct selling companies on average +53% sales productivity growth via upskilling in the Performance Enablement model. Distributors become active salespersons, not just reps to be bought from.

3. Distributors Want Direct Selling Companies to Care About Them.

With a larger amount of direct selling companies competing for a smaller amount of distributors, organizations have to stand apart from the pack. Furthermore, consumers generally want brands to care about them, and there’s no reason why distributors shouldn’t feel this way as well: after all, logically speaking, they’re representing a brand, and they should feel connected to it. Distributors want a personalized experience with the direct selling brand they rep–that feeling of, “Oh, they know me.” Having this capability is at the very least a way for an organization to stand apart.

This is a tall ask at a time when companies are competing to see how much they can cut costs. Every week brings a fresh round of layoffs for major companies (Amazon, Meta, Disney, Lyft), and though that wave may not have hit direct selling yet, still there’s the imperative in an uncertain environment to slash expenses. Yet how can you invest in personalization and recognition for the field while trimming budgets?

Surprisingly, you can do both by digitally transforming field operations using the Performance Enablement model.

Solution: Embrace consolidation in digital transformation.

Tech consolidation helps you both cut expenses, by cutting out multiple vendors, and further personalize the distributor’s experience. At Rallyware, we’ve found that the Performance Enablement model for consolidating tech has borne fruit. Customers bring multiple tools under one umbrella, saving money and time spent on separate vendors.

At the same time, data from separate tools flow into the results and recommendations from the others. This leads to an optimally personalized experience, enabling the distributor for sales performance in the way that’s right for her. The business outcomes are significant and measurable. To be specific, on average, our internal research has found, direct sellers see 30.3% sales growth year-over-year when consolidating learning and rewards and recognition tools, versus customers who implement field enablement learning tools alone.

Further, as we discuss in our Performance Enablement Platform white paper, learning activities consolidated with business activities, smart notifications, and social features result in an average 38% increase in productivity.

Cutting costs while doing more with your technology sounds like a paradox, doesn’t it? It’s not, really. It’s simply what’s required to grow in, and transform field operations for, the distributor and consumer of the 2020s. And it’s what Performance Enablement technology is built to provide.

Finally, breakthrough technologies like an Artificial Intelligence (AI) Chat Agent will help the distributor feel a connection with the brand, the company, and its products. In essence, this Chat Agent, as developed and exclusively provided by Rallyware, uses the latest advances in natural language processing to deliver an AI-enabled smart assistant to the distributor, answering her queries and showing her not only answers, but sales aids and suggestions to help her sales performance. With an easy-to-use, mobile smart assistant, the distributor feels cared for. She also feels: this company is on the cutting edge of technology. She trusts them.

Rallyware invests in, and delivers, major leaps forward in direct selling technologies. We’re transforming direct selling today with the tools and products of tomorrow. Accelerate your digital transformation and clear the competition. Request your demonstration today.

The post Can Direct Selling Adapt? first appeared on Direct Selling News.

Direct selling is an industry known for not staying put.

Our model is conducive to exponential growth, with many companies regularly posting substantial year-over-year revenue increases. On the most recent Direct Selling News Global 100 list, 17 companies reported growing by $100 million or more from 2019 to 2020.

Growth is good. It’s better—and more sustainable—when intention underlies the expansion. This is where the concept of scalability comes in. Making sure your organization has a sound but flexible infrastructure and design that can support growth is the best way to keep it from buckling under the pressure of becoming larger.

In our “E-commerce Excellence” story earlier this year, we touched on the basic elements of scalable technology, in particular. We told you that it’s fluid and integrated, it works well for one-on-one and one-on-thousands applications, and it translates easily across international borders. This month, we elaborate on the idea of scalability, giving you six signs that your e-commerce system is suited for every next level.

Sign #1

Your sales and marketing team communicates with your tech team.

One of the biggest mistakes direct selling companies make is not having enough cross-sectional input when they’re developing their e-commerce system. The IT department has to understand the business needs and plans of the sales and marketing team so that it can recommend or develop a system that supports those needs. Likewise, the business team won’t get far with a strategy that requires certain tech capabilities if it hasn’t consulted with the IT folks to make sure it’s possible.

As author Brett Blake writes in his book “Systems Scale: Eight Simple Systems that Ignite Growth,” if you view your organization as an ecosystem—a web of interdependent parts—you will be more likely to move beyond traditional thinking about your technology. It’s not just a collection of computer codes. It’s a dynamic system that can grow and improve as long as it has all the information it needs.

Sign #2

Your technology systems communicate with each other.

Just as sales and IT have to communicate to develop an effective e-commerce system, the systems themselves have to easily share information. If you launch a mobile app that distributes samples and then 15 percent-off coupons, but your back-office system doesn’t have the capacity to collect the right data from customers during the transaction, you’ll have no idea how well the app is working. You won’t know things like your close ratio or what offers work best with what demographics.

Pay attention to the API (application programming interface) of the system you’re investing in. This is the software that allows applications to talk to each other. The more seamless the data sharing, the more valuable analysis you’ll get from your system, which makes the system more cost-effective.

Cost-effectiveness is key as you scale your business, according to consultant Peter Cohan. “Scalable is a word that gets thrown around in business conversations,” he writes in Inc. magazine. “But what does it mean? For me, it means … as your business grows, its costs will go down so much that it will change from a burner to a producer of cash.”

Sign #3

Your system is built to expand.

As your organization grows, you will want to collect data from an increasing number of customers and increasing amounts of data per customer.

For example, you might start out asking shoppers to fill out a form every time they purchase a product, but eventually, you’ll want them to create customer profiles. And maybe those profiles will expand over time to include more data about their product and lifestyle preferences. Your data collection system needs to be malleable enough to accommodate more fields for customers to fill out, and it needs to be able to store and make accessible all of that information for whoever in the company needs it.

You can get caught with your heads down trying to meet quarterly goals and forget to look up and out to the future. Try to anticipate what your business needs will be before you need them, and develop an e-commerce system that will grow with you.

Sign #4

Your system is robust and globally accessible.

Don’t forget about the technology nuts and bolts. Your e-commerce system needs enough processing power so that your online catalogs load quickly, for example. It needs the ability to make millions of concurrent connections so that it can handle a surge in orders. It needs to be accessible in international markets, too, complying with the unique commerce and data privacy laws in various countries.

Sign #5

Your compensation system supports your e-commerce strategy.

Good direct selling ideas die in places where they’re not supported by the compensation plan. If your compensation plan rewards distributors primarily for recruiting other distributors, that’s the activity you’ll get from your sales teams. They might not be as inclined to use the sampling and coupon features on the app you spent so much time and money developing.

Sign #6

Your e-commerce partners are scalable, too.

Choose manufacturing and fulfillment partners with the production, warehousing and logistical capacity to accommodate your projected growth.

Speaking of partners, consider working with a third party to develop and maintain your e-commerce system. You might have some internal capacity and even talent to develop one, but most direct selling companies are better off working with a provider whose job it is to do nothing but keep its clients’ IT systems cutting edge.

The Human Element

Technology has gotten quite smart. It’s easy to think it will manage itself, responding and expanding in exactly the ways we need it to, without a lot of thought or planning from us. But it’s only as good as the thoughts we put into it and the attention we pay to whether it’s actually meeting our needs.

Yes, technology is a powerful tool, but it still requires human beings to put their heads together and decide when, where and how to plug it in. 

From the July 2021 issue of Direct Selling News magazine.

The post Next-Level Technology first appeared on Direct Selling News.

APIS, or application programming interfaces, were once the realm of technicaljargon prone software engineers. Today, however, there is a growing need for executives, sales analysts, HR specialists and others in all industries to understand the value of APIs.

All these stakeholders have something in common: They want to cut costs, improve efficiency and boost the bottom line of their company—no matter what industry it’s in. Generally, the way to do that is through technology—specifically, through developing a great set of APIs.

The direct selling industry is no different. Because technology changes so quickly today, it’s even more important for direct selling companies to focus on developing good APIs. This is the message we received from the sources to whom we spoke for this story.

Direct Selling News talked to several direct selling executives with technology backgrounds to get their thoughts on why building APIs is better than trying to update your technology at every turn. But first, let’s take a look at what exactly APIs do.

What Are APIS and How Do They Work?

An application programming interface or API is what allows programs to talk to one another, so they can share data and features. APIs provide a standard way of accessing any application, data or device, whether it is shopping from your phone or accessing cloud applications at work.

APIs define the rules that must be followed in order to interact with a programming language, a software library, or any other software component. A good API makes it easier to develop a program by providing all the building blocks.

Think of an API as a messenger that delivers a request to the provider you’re requesting it from, and then delivers the response back to you. APIs are used by software applications in much the same way that interfaces for apps and other software are used by humans.

Why APIS Matter

For direct sellers to get ahead, they must create a great set of APIs—for their back office and beyond. Because of the strategic significance of APIs, industry executives should feature APIs in their long-term plans and initiatives.

Consider this: If you get good at developing APIs, then your team owns them, and you can plug into other technologies as they become available. Otherwise, you will always be chasing the tail of technology. Our sources told us that APIs are the key to business success in the direct selling industry. For example, your back office needs to be robust enough to support your business, and it needs to present the data that is there—such as customer/distributor details. If you can present this information through an API, you can create the user interface you would like.

The reason this is possible is that APIs are what allow disparate data sources to talk to one another—and this will expand your options exponentially. When data is segmented, you can only see part of the picture. Not so when using an API-based system.

Thus, developing a robust set of APIs is the key to not only sharing data but increasing functionality. These dual benefits offer the promise of a smoother and more contiguous experience across a variety of platforms.

How Data Delivers

In recent years, data has become a crucial resource to companies because of its ability to give those businesses a competitive edge. Companies that become market leaders do so because they understand how to leverage data—how to analyze it, optimize it, monetize it. According to McKinsey & Company, early adopters in various industries have used APIs to create new products, channels and opportunities. For example, in the automotive industry, companies are using APIs to integrate real-time driving data into dashboards. Indeed, developing good APIs is the key to leveraging data to create new opportunities for innovation and business growth.

Another benefit to developing great APIs is that it enables your company to create rules about accessing your data, thus protecting the data’s integrity. Compromised data leads to negative outcomes and dissatisfied customers. It’s also a risk to your business with privacy laws like the GDPR in Europe.

Chasing the Tail of Technology

While technology has always evolved, it is now changing at a much more rapid pace than yesteryear. Today, technology is experiencing exponential growth. As a result, it’s easy for companies to get distracted by technology—or at least the wrong aspects of it—only to discover that chasing technology is a neverending chase.

That doesn’t mean that you shouldn’t spend time keeping updated but be strategic about it. Does it make things easier and faster? Does it create cost savings? Or, is it leading your company down the rabbit hole?

When it comes to technology, the key seems to be knowing where to focus your energy. Being an expert in APIs allows you to integrate new technology seamlessly and more easily. It also allows you to become an expert on integrations—thus mastering the art of developing technology in such a way that you maximize speed and minimize disruption.

Economies of Scale

Building your back office around a good set of APIs will also allow your company to be nimbler and more agile. The right APIs will enable you to scale and adapt quickly to changing user tastes and new technologies.

How do APIs fit into your company’s big-picture vision? Are they the foundation on which you build your business? Do they play an important role in your strategic plan? These are questions we suggest you ask and answer.

The fact is, if your company is thinking about implementing any piece of new technology, you should seriously consider the API set and documentation. Ensuring that all of your implementations and integrations are based on good APIs makes it much easier to manage and scale your technology.

Anything else will come across as clunky and outdated, something that is just not acceptable today. Manual processes, no matter how efficient, just can’t keep up speed- or scale-wise.

We live in an Amazon world where even the unsophisticated, as it relates to technology, have a certain expectation set. You have to have good data and the ability to access it quickly and flexibly. And that’s what APIs provide.

The post Stop Chasing Technology first appeared on Direct Selling News.

Digital wellness, autonomous outlets, voice, customer-led experiences and the expansion of super apps will have the most impact on commerce in 2019.

According to the company, for the first time ever more than half of the global population will have internet access this year. However, consumers are emphasizing a balance between time spent online versus offline, becoming more intentional and selective of their digital activities.

“Increased connectivity combined with technological advances has created massive upheavals in consumer expectations, lowered the barriers of entry for fast-moving companies and inspired new digital-first commerce avenues,” said Michelle Evans, head of digital consumer at Euromonitor International.

In 2019, autonomous outlets will continue gaining traction as companies invest in this technology to enter new channels and develop innovative business models.

The company says voice commerce, which accounted for only 1 percent of online purchases in the U.S. last year, will increase to 5 percent by 2023. With voice-enabled devices becoming mainstream, companies should prepare for new use cases to emerge and integrate these functions into existing strategies.

Improving the customer journey is the top concern for business leaders in the coming year, according to Euromonitor International’s Digital Consumer Industry Insights Survey. Technology will help companies deliver truly curated, personalized interactions, putting consumers in control of their shopping experiences.

Super apps—mobile apps that combine several features into a single platform—are going global with consumers and companies embracing their multifunctionality.

Euromonitor International further exploring their impact in a webinar on Thursday, Feb. 21 at 9 a.m. CST. To register for the webinar, click here.

The post Euromonitor’s Top 5 Digital Consumer Trends in 2019 first appeared on Direct Selling News.

Events will always be a driving force for growth and belief building. While the benefits of training motivation and culture are at the core of events, they generate some impressive, tangible growth numbers. Some companies are augmenting live events with some of the latest technology and social media platforms to create a unique and inclusive experience.

Events are Crucial to Enrolling

According to LifeVantage CEO Darren Jensen in his recent article titled, The Social Proof Principle: Does Attending Events Matter?, “Event attendees are 2,241 percent more likely to enroll somebody than their non-event-attending counterparts.” He also states that those who attended at least one major event per year earn an average of 119 percent more.

“Seasoned industry veterans understand the power behind events,” Jensen says. “We keep on coming back because we derive value from them. We continue to invest personal money to attend them because, either we enjoy the experience, or it helps our businesses in some tangible way. Events remind distributors that they are necessary while helping them feel connected to a larger purpose.”

Pick up the printed issue in which this article is found.

Technology Changing Event Landscape

ACN will enter its 26th year in business in 2019, and still hosts four major corporate events throughout the year. The largest event is in February, and each one builds to the next. Different locations are selected for each and announced during or right after the current event. The company recently held a live event with some of its top leaders that was also broadcast via YouTube Live for any of its Independent Business Owners to view, creating an atmosphere where everyone felt as if they were in the same room. “All of our leaders truly believe that our events are non-negotiable,” says Katie Mapel, ACN Director of Marketing Communications.

Ambit Energy holds two major corporate events per year for its Independent Consultants. Ambition, historically held Labor Day weekend in Dallas, is the company’s major annual convention. The first event each year, called Simulcast, acts as a one-day yearly kickoff held in January. For 2019, there are two live locations (Texas and Connecticut). It’s a mix of training, motivation, plus a time for announcements and goals for the year. For the first time, an after-party will be held near the live locations to help bolster excitement, culture and networking.

The event is also simulcast (hence the name) online for consultants who cannot attend a live location. Groups of consultants around the country hold watch parties, which Ambit corporate staff members have been known to “crash” with prizes. Attendees, whether live or online, are eligible for special bonus promotions following Simulcast.

The post The Events Horizon first appeared on Direct Selling News.

What is it that moves a prospect to become a trialist and, ultimately, a customer? Clearly, the seller’s “pitch” is a big part of what influences that decision.

Consumers today have access not only to products but also services in the direct sales channel. Tangible goods, such as cosmetics, nutritional supplements, clothing, jewelry and housewares can be held, sampled and experienced before the sale. Representatives of service-oriented direct selling companies, who are sharing such offerings as legal services, financial services, memberships and identity theft protection, may take a different approach when helping potential customers understand the benefits of doing business with them. The common denominator for all direct selling transactions, regardless of what’s being sold, is the establishment of trust. What leads a prospect to believe not only in the representative, but also to believe that the product or service at hand will make his or her life easier? Is there some magic formula that breeds success?

In a word, no—especially in this day and age, in which the selling situation can happen anytime, anywhere and in any fashion. That fact hasn’t been lost on direct selling companies. Take a look around the current landscape of our channel, and you’ll notice established companies expanding their repertoire of tools and technology, so that representatives have a variety of options at their disposal. And some newer companies are coming right out of the starting gate with social media-based selling models. There’s no one-size-fits-all approach that works best.

Trust Is Key

Within this selling environment, it’s never been more vital that direct sellers listen to their prospective customers and tailor their pitches accordingly. It’s easy to make sweeping generalizations about millennials versus baby boomers and the nuances of each customer demographic, but it’s not as clear cut as that. Direct selling, first and foremost, is about personalized service. Regardless of how much technology may infiltrate our lives, independent representatives always will have the responsibility to seek to understand—to invest the time and effort necessary to develop those relationships customers can’t find elsewhere.

“The vast majority [of consumers] are heavily influenced by personal connection,” says Rick Loy, senior vice president of U.S. sales and training for AdvoCare, a seller of nutritional and weight-management supplements. “My observation is that whether it’s on the phone, face-to-face or through some other mechanism, most people are looking for a sense of assuredness and confidence in the independent representative. They’re looking for a vibe that invokes that trust and feeling of safety to take the next steps. Emotions, body language, tone of voice are all important.”

“Our founder said the field will teach you everything you need to know, so stay close.”

—Rick Loy, Senior Vice President of U.S. Sales and Training, AdvoCare

Trust may represent a particularly crucial dimension when the product is a service and can’t be held or sampled prior to the sale. That’s the case for LegalShield, a provider of legal plans and identity theft solutions. “What we do has to be explained, and it has to be explained by a person you trust,” says LegalShield CEO Jeff Bell. One of the most effective ways to establish that trust, he says, is through an associate’s own experience using LegalShield services. “Once people use the LegalShield membership,” he adds, “they can tell other people about its power with authenticity and truth.”

Indeed, regardless of the company’s product or service, when it comes to developing one’s “pitch,” there’s simply no substitute for being able to speak from direct experience, especially when there’s personal transformation involved. At healthy lifestyle company OPTAVIA, where coaches work with clients to achieve several dimensions of health and wellness, “the primary training for our coaches comes through their experience as clients,” says Dan Chard, CEO of parent company Medifast. “Most of our coaches were clients first, so their training starts when they go through the program themselves. Clients are being coached by someone who has likely been in their shoes and can help steer them to success. People are attracted to people who are sincere. Coaches have to be able to talk about their personal transformations, and by sharing that, they can help others. It’s really just that simple.”

Scott Lewis, chief visionary officer of Jeunesse, an anti-aging skincare and wellness company, agrees. “Being authentic is paramount to everything we do in life, and the distributor–customer relationship is no different,” he says. “It might even be more important, as there is an inherent trust when hard-earned money exchanges hands. The customer needs to know how our products can change their lives, and the distributor provides personal product testimony that helps establish confidence and a long-term relationship. We are more likely to buy products in a ‘social-selling’ environment, which is inherently more friendly and casual, and infinitely more sustainable.”

The Modern Selling Situation

Meeting customers where they are means blending traditional selling methods with innovative ones. Salesforce members are not only using Facebook, Twitter and Instagram; you’ll find plenty of distributors using Skype and Zoom, along with messaging platforms such as WhatsApp, Facebook Messenger and WeChat, to reach customers where they are. In fact, a report issued by Business Insider Intelligence reveals that active users on messaging apps have surpassed those on social networks.

It’s not difficult to understand why the use of technology in direct sales has exploded: It’s easy, it’s inexpensive, and it can far expand the potential reach of a distributor. First and foremost, however, it can be a powerful vehicle for storytelling. Take Le-Vel, for example, a cloud-based health and wellness company whose growth has largely been organic through the sharing of personal testimonials on its Facebook page. The company’s salesforce paints the picture for customers, and “the stories on social media are just continued validation,” says Le-Vel Co-CEO Paul Gravette. “If you’re a customer, you’ll believe those stories faster than anything else.”

Technology isn’t intended to replace personalized service, but rather enhance it. One top AdvoCare distributor, a personal trainer, uses social media as an introduction vehicle. From there, he responds offline through a personal message and arranges an in-person meeting. The motivation, he says, isn’t to push sales, but rather to establish a relationship and better understand his customers’ needs. Many of his customers, he adds, have been with him since he started his AdvoCare business five years ago.

Darren Jensen, CEO of wellness and personal-care company LifeVantage, says, “The principles of direct selling remain the same, but our tactics are modifying. If you’re looking to build a solid base of retail customers, social media is the way to go.” He points to a salesforce promotion currently underway in which LifeVantage distributors can earn a trip to the Bahamas by earning 3,000 points through rank advancements, sales and other achievements during the promotional period. Those distributors who have embraced social media or who are using some sort of social media hybrid sales strategy, he says, are seeing the best results. “Our highest distributor currently has 30,000 points—she’s totally outstripped everything,” he says. “She’s the poster child for actively driving a business through social media.”

That “poster child,” a top LifeVantage distributor, has her own winning strategy for attracting potential clients, which she calls the “indirect approach.” It’s based on philosophies she first honed offline and on the phone to much success. “I made a million dollars before I ever posted anything on social media,” she says. “The basics of direct sales have always been about creating curiosity, delivering information and following up.” Instead of asking a prospect outright if he’s interested in a product, she asks him if he knows anyone who might be interested. Her non-aggressive tactics are deliberately vague and designed to pique initial interest, after which she’ll share more specifics about the product at hand.

“I tell people that your job is not to lead the horse to water; your job is to make the horse so thirsty, it’s begging for water. What would our products or the business opportunity do for your customer’s life?”

—A Top Distributor at LifeVantage

While the indirect approach helped her build her customer base offline, it was social media that put her business into hyperdrive. “Social media gives you a way to subtly expose your network without being personally rejected,” she says, adding that she’s building her business by an average of 1,000 to 1,500 customers each month and that between 25 to 35 percent of them come from Facebook.

“As the saying goes, you can lead a horse to water,” she continues, “but what people are constantly doing is dragging people to the water. I tell people that your job is not to lead the horse to water; your job is to make the horse so thirsty, it’s begging for water. What would our products or the business opportunity do for your customer’s life? Once you show your customers the solution to their problems, they’re in.”

Social media is a crowded place, and anyone who wants to be successful there has to cut through the noise. One top director at MONAT, a naturally based hair-care company, has managed to do just that by establishing her own personal brand, so to speak. Video has been her medium of choice. A comedienne at heart, she took improvisation classes and dabbled in standup comedy before MONAT. Most of her new business, she says, comes from her connections on Facebook and Instagram. “You have to find a way to brand yourself on social media,” she adds. “You’re ultimately the CEO of your business. Your personality needs to come through.

“When I see people like and comment on my videos,” she continues, “I ‘like’ and comment back—I continue the conversation. My videos help people feel like they know me already. With social media, we have a vehicle to get our personalities out there. You have to be true to who you are and own that. When you’re true to yourself, your vibe attracts your tribe.”

Keeping Pace with Technology

From an aspiring entrepreneur’s standpoint, one of the most attractive features of a direct selling business is that no prior sales experience is required. The playing field is level, and anyone, regardless of age, background or circumstances, can join the race. With that in mind, direct selling companies invest considerable time and money to create product education, sales and personal development tools that help even the novice get up to speed, and at the pace of their own choosing.

It takes time for any representative, particularly those who have no prior selling experience, to develop the confidence necessary to develop the right pitch. That’s why companies like AdvoCare offer distributors step-by-step training, so they have a chance to practice behaviors that can help them become successful. At AdvoCare, training focuses in part on monitoring and improving those behaviors; for example, live events that walk distributors through a curriculum covering everything from word choices to role playing.

“For those who avail themselves of the training, I think it reduces fear and grows confidence,” Loy says. “If our distributors are comfortable and confident, they’ll increase their competence through repetition. We can take them to that place of having a sense of ownership of their story. The power of the relationship goes all the way back to speaking from the heart.”

Across the board, direct selling companies are offering representatives a combination of in-person and digital training, realizing that, while technology offers convenience, there’s no replacing the power of in-person delivery. LegalShield holds an average of 400 meetings across the United States each week for associates and prospects. Those meetings are an opportunity not just for potential associates to learn more about LegalShield, but also for current associates to watch and learn from leaders within the organization. The company also presents a series of LegalShield University events weekly in its largest markets. A learning management system offers associates training on demand through videos and online coursework, “but it’s dangerous to move too far away from the in-person side of the business,” says Bell.

Simplicity First, Simplicity Always

Within any direct sales pitch, there’s certainly room for personalization. But companies do want their field members to adhere to a structure.

While some direct selling companies do not use selling scripts, many companies choose to do so, creating scripts their independent representatives can easily follow and duplicate. Executives we spoke to say they do this for several reasons. First, a straightforward script can make the products and the business more approachable, relatable and attractive to potential customers and, ultimately, consultants. Second, when a product and/or business opportunity is easy to explain and share, new consultants gain confidence more quickly, and score quicker wins, which can make all the difference in the outcome of their businesses.

Last and perhaps more important, creating and promoting a sales script for the field, even if it’s nothing more than a set of bullet points, can help organizations maintain regulatory compliance. There’s a fine balance there, too: Overly complicated or overly vague scripts could result in a consultant’s attempt to either translate or fill in gaps. A direct, clear-cut script provides a reference that field members can use again and again. There’s little need to reinvent the wheel. The sales technique that a company recommends its distributors use really comes down to the kind of products those distributors are selling, along with the company’s culture and philosophies.

“We prefer that everyone beat to the same drum,” says Le-Vel Co-CEO Jason Camper. “Our belief is that the company will grow faster and stronger if everyone’s saying the same thing, if the message stays intact and consistent. We understand everyone has their own style. We don’t expect them to be robotic, but the why, when and how of the business—we want it to be a broken record, a copy-and-paste message.”

For Le-Vel’s independent salesforce of Brand Promoters, there’s little need to deviate from a standard presentation because “this business model is really simple,” says a top Brand Promoter. “They’ve set the field up for success and when we can keep it simple, we experience more success. If people start doing tons of training and needing material, you’re going to miss the big picture, which is helping people improve their quality of life.”

“Simplicity will make or break you,” adds Camper. “You’re trying to get a large number of people to a successful level. They’re busy and have a thousand things going on, and now we’re inserting our company into their busy lifestyles. You’re dealing with a broad range of ages and educational backgrounds. Not everybody is a salesman, so you need to keep it simple.”

“We prefer that everyone beat to the same drum. Our belief is that the company will grow faster and stronger if everyone’s saying the same thing, if the message stays intact and consistent.”

—Jason Camper, Co-CEO, Le-Vel

From the customer’s viewpoint, this pared-down introduction to direct selling is often welcome. Consider the average prospect. Odds are good that she just wants to hear the bullet points, the top-line information that conveys why she should care about the product, or why the business opportunity is right for her, right now. She may have questions that the representative can’t answer. In most cases, those answers live somewhere, usually on a company website, so the representative can get back to the prospect within a short time with the information she’s looking for. If a representative comes right out of the starting gate with an in-depth description of the science and testing behind a product, it’s easy to drown a prospect with information overload. In that scenario, “analysis paralysis” isn’t far behind.

For the uninitiated, there’s sometimes a misperception that representatives have to be product experts in order to be successful. While they should certainly use and be familiar with the products they sell, they don’t have to have all the answers. Direct selling companies almost universally provide their sales representatives with enough support so that they don’t have to be subject matter experts. Representatives are the messengers, not the message.

Feedback from Distributors Is Vital

In an effort to understand selling dynamics out in the field, direct selling companies maintain near-constant contact with the field through such measures as surveys, advisory boards and private Facebook groups, all of which invite top distributors to partner with corporate staff and identify challenges and opportunities for improvement.

At MONAT, “Members of the corporate sales team are very active in their regions throughout North America, attending their events and supporting them with coaching calls,” says Jason Russell, MONAT’s new director of Market Partner experience. “In my role, I’ve also convened three different Market Partner focus groups to foster dialogue because we really want to understand things from the Market Partner perspective.”

AdvoCare’s CEO Diamond Council convenes regularly with distributors “about everything we’re doing—our methodologies, what’s working, what’s not, what are they learning that we can learn,” Loy says. “Our executives in the field often solicit feedback. We ask those who are successful what they’re doing, seeing what we can maximize for our distributor base. We never presume to have all of the best ideas. Our founder said the field will teach you everything you need to know, so stay close.”

Our channel’s core principle of delivering exceptional products and service should be the foundation of any independent direct selling business. Whatever pitch a distributor chooses—whether it incorporates personal conversation, technology or some combination—the simple of art of listening may be the most critical element in a sale. Listening, in fact, is not a quick process; it requires time and care. But the potential rewards, as so many top distributors will attest, are great.

The post The Power Of The Pitch first appeared on Direct Selling News.

The question is indeed an excellent one. It is full of anticipation and excitement for the arrival at a destination that is perceived to bring great joy. I have often asked myself the same question when thinking about the completion of a project, progress toward a goal and even the collective advancement of our direct selling community. Are we there? Have we arrived at that moment in time when marketplace perception is more than favorable and brings with it preferred entrepreneurial choices, an excellent customer service proposition, and unsurpassed use of technology to support independent contractors and customers? The list goes on. However, the preceding provides a glimpse into the thoughts of all of us who embrace and advocate direct selling as a channel of distribution.

Are we there yet? I think we are there simply because we must arrive at our destinations in our own mental community and feel like we are there, before we can make it a reality. The kids in the back seat of that car had a clear vision of what it was going to be like when they arrived at their destination, regardless of whether it was the home of relatives or an amusement park. The enthusiasm for the destination is what triggered the question.

Having observed this channel of distribution for many years, I do think we are there. I think we have arrived at a moment in time when we know our strengths, weaknesses, opportunities and threats. My thoughts are not based on recent financial information or company results, but instead are based on our collective experience as a channel of distribution. I believe we are gaining a clearer understanding of how we can improve marketplace perceptions and compete successfully in the gig economy. Improved perception will be the result of our collective marketing as individual companies as well as our channel as a whole. We know why some negative perceptions have existed and what is expected of our channel of distribution. Perhaps, the biggest lesson we have learned over the past few years is that it is not enough to simply say we sell and service customers through an organization of independent contractors. We must demonstrate that real customer acquisition is at the forefront of our business-building activities.

Having observed this channel of distribution for many years, I do think we are there. I think we have arrived at a moment in time when we know our strengths, weaknesses, opportunities and threats.

We can choose the language that positions our brands, products, services and business opportunities. We have more capability and marketing savvy than ever because of the emergence of digital marketing and technology tools we never envisioned 15 short years ago. Our capabilities around brand-positioning are so very competitive and powerful. Direct selling companies can compete with giant brands when digital marketing is used effectively with the additional ingredient that independent contractors bring to the marketing mix—energy, enthusiasm, belief, authenticity and credibility. Today, we design and control our brand positioning more effectively than at any time in the history of the channel.

The business opportunities offered by companies who utilize the direct selling channel, regardless of preferred description—social selling, social entrepreneurship, networker, party plan, direct selling—do not separate us from the common denominator that binds us all. This channel of distribution engages independent contractors who become a primary link between company and consumer. Independent contractors are rewarded for customer acquisition and for attracting and helping other independent contractors succeed in their efforts to acquire customers. The rewards for those who invest time in learning and applying new skills is simply exciting, and the ease of entry is considered one of the most unique attributes of our business model.

Over the past two years, I have observed the phenomena of Uber. I also have interviewed more than 100 Uber drivers. Their primary reason for driving is flexibility and ease of entry. Uber drivers do not appear to receive a promise of income, only the promise of an opportunity to earn an income in proportion to time and effort invested. Uber drivers are equipped with basically one piece of technology, receive virtually no training, and they are in business. They also are rated by their customers immediately after they render their service, so only those who deliver excellence will survive. Uber created a simple model that disrupted the way we look at local transportation services. What is the purpose of this anecdote? Direct selling companies offer a better opportunity. However, there may be a lesson to learn from the Uber model. The evaluation and rating of the Uber driver by customers serves a valuable purpose. It represents and demonstrates how a simple evaluation by the consumer being served supports the desired behavior of the person delivering the service.

Websites, once thought to be a threat to direct selling, are now a basic staple to the channel, especially personalized websites that an independent contractor can have up and running within hours of engagement with the company of their choice. Some companies also support their independent contractors with landing pages and apps that allow those individuals to promote specific products to a targeted audience who can quickly learn about the products and make a purchase. Technology has empowered direct selling companies to present a more consistent message and professional presentation. Technology has not become a threat. Technology is a powerful asset when utilized effectively.

Direct selling companies overall have kept pace with the advancements in technology, and some are on the leading edge of how technology can serve the current marketplace. Direct selling companies that have kept pace utilize technology as well as any retailer, including Amazon. A rapidly growing segment of consumers is becoming more and more reliant upon technological tools as their primary and preferred method for purchasing products and services. For this very reason, keeping pace with and using technology effectively is an essential component of success when using direct selling as a channel of distribution.

Today, we can let the consumer know through an app if the product is in stock and when it will ship. No more waiting weeks for delivery. Companies providing a service as their product can now enable customers to complete their application process within minutes, a process that formerly took days. Is it possible for a direct selling company to provide the consumer with real-time product status, ship within hours and provide 99 percent order fulfillment and accuracy? Yes, this is possible, and it is happening within direct selling companies. This is another reason why I think we are there.

I should add that being there still takes good decision making, marketing and positioning that resonates with the marketplace. It also takes an impeccable ethical standard, excellence in leadership, profitability, good resource allocation, excellence in communication and excellence in execution of strategy. What is different is the availability of tools that would have been considered dreams less than 10 years ago. The tools are dominated by new and innovative technology; however, print remains relevant, and innovative design for literature and kits continues to make impressive first impressions. Print also has been impacted by technology making print-on-demand our new reality for sales collateral that once occupied much space in the warehouse. Chances are, you are reading this article in the print format because print is still a preferred choice for certain types of information.

Over the past 10 years, we have experienced exponential growth in technology and we should expect the same over the next 10 years. Access to everything important will become easier and faster. Most interesting is the fact that direct sellers are now using much of the same technology the retail competition is using. Retail competition is no longer the big gorilla that once overshadowed the attributes delivered by a direct selling company—personalized and caring service delivered in a fun, sometimes entertaining, manner, which offers information and education not found in traditional retail channel. These strong attributes remain a direct selling company’s competitive advantage, and today this advantage is even stronger because it is supported with technology.

I am personally of the opinion that we are there. We know from the experiences of the past few years what is smart when it comes to strategies and tactics. We know the importance of real customers and not overpromising on expectations, be they product claims or the potential associated with the business opportunity. We have arrived at a great time when the tools available have never been greater and our access is the same as the competition. We know the importance of an impeccable ethical standard for our companies and all independent contractors who are the ambassadors of the corporate brand. Analytics and analysis of historical performance as well as the ability to predict future performance based on desired behaviors has never been greater. We have a rich and historical experience in serving others in a personal manner, and we are better than ever before—or at least we can be.

We are there!

John Fleming

DSN Ambassador John Fleming, a retired direct selling executive and former Publisher/Editor in Chief of Direct Selling News, is the Direct Selling Association’s 2016 Hall of Fame Honoree and 2016 Direct Selling News Lifetime Achiever.

The post Are We There? first appeared on Direct Selling News.

Funds for this new initiative were granted to Herbalife Nutrition by governments in China as part of an economic development package for its proven contribution and commitment to the continuing growth and success of the Chinese economy.

“China is instrumental in our global growth plans and to fulfill our purpose to make the world healthier and happier,” said CEO Rich Goudis. “We are making this significant investment in China to leverage our deep operational expertise in nutrition to accelerate growth as well as helping address some of the most pressing and challenging societal issues such as the rise in obesity.”

This China Growth and Impact Investment Fund will focus on five key areas:

• New Acquisitions in Health and Wellness Products and Companies. To complement Herbalife Nutrition’s already extensive lineup of quality products and wellness services, the company will look to increase its footprint in China through strategic acquisitions of innovative and impactful health and wellness companies and products and services.

• Expansion of Nutrition Clubs. Nutrition Clubs are run by Herbalife Nutrition service providers and provide local, supportive venues for communities of like-minded people to gather and receive nutrition and fitness coaching and counseling as they work to achieve their personal health and fitness goals. Thus, Herbalife is planning to invest in Nutrition Clubs and expand the number of Clubs serving communities across China.

• Increasing and Improving Technology. To take full advantage of technological enhancements, Herbalife plans to make an additional investment in technology, equipping the service representatives and service providers with the latest tools so they may better serve their customers, track their services and manage their businesses.

• Providing Additional Research, Learning and Training. Herbalife will also offer service providers and employees a more enhanced and extensive training program focused on nutrition and wellness. Additionally, as Herbalife Nutrition looks to the future, the company will seek opportunities to partner with and provide endowments to universities in China for four chairs, each to play a distinct role. The first endowment will be in the field of direct sales.

• Public-Private Partnerships Focused on Eradicating Obesity. Obesity has become one of the world’s most dire issues. This epidemic, unfortunately, has not bypassed China and the government is addressing these issues head on in part with the approval of the Healthy China 2030 plan by China’s Central Committee. The Company plans to fund a series of public-private partnerships at the local and regional levels that will focus on best practices to end obesity.

The post Herbalife Nutrition Establishes New $90 Million China Growth and Impact Investment Fund first appeared on Direct Selling News.

Rich Libby

“We are excited to have Rich, a talented and respected leader in the industry, join our team,” said Dave Pezzullo, chief operating officer at Herbalife. “Rich is joining a group of noteworthy individuals who collectively strengthen the company’s capabilities, especially in the digital arena, and open more doors to innovation.”

Libby was most recently chief information officer at another direct selling company, where he led its digital transformation and was responsible for all aspects of global technology and infrastructure in the company’s markets, including the United States, Canada, Mexico, China, Japan, Indonesia, Malaysia and Taiwan. Prior to that, he spent seven years as vice president of technology at Gap Inc., where he ran a multi-year digital transformational program supporting omni-channel marketing, CRM and enterprise data services; as well as 11 years with JPMorgan Chase managing customer service platform technologies.

“Having been in the direct selling and nutrition industry for more than seven years, I have developed a great understanding for the impact technology has on distributors,” said Libby. “I am eager to expand on the technological groundwork already in place.”

The post Herbalife Nutrition Names Rich Libby As CIO first appeared on Direct Selling News.