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November 2020

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Pushed by Pandemic, New Companies Enter Social Selling Space

Opportunities and obstacles are the name of the game as companies compete and e-commerce explodes

Surveys from the Direct Selling Association also indicate the same. More than 60 percent of respondents in a late August survey said U.S. revenue had been impacted in a positive manner due to the pandemic, while 35 percent said COVID-19 had a negative impact on sales domestically. In terms of global revenue, 57 percent of respondents said the coronavirus had a positive impact, while 31 percent reported it as hurting sales.

Consultants who work with direct selling companies say they’ve noticed an uptick in interest this year in companies wanting to join the channel, as brick-and-mortar businesses suffer and alternative distribution avenues to sell products are sought.

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Quick Takes

What is the channel''s greatest opportunity right now?

Direct Sales Recruiting Firms

Each month The Ranks spotlights companies, people or trends that are important to the direct selling channels.

November Digital Edition

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September 2020

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Supreme Court to Weigh In on FTC Authority to Order Monetary Relief

Recent court decisions concerning Section 13(b) of FTC Act could change decades of precedent

The U.S. Supreme Court has agreed to decide whether the Federal Trade Commission (FTC) can continue to seek monetary rewards when it sues scammers and firms accused of deceptive business practices, setting the stage for a ruling that will have wide-ranging ramifications for the direct selling channel.

Observers of the FTC’s 13(b) cases say they already have a recent decision from the Supreme Court that might shed a light on how events could play out. The U.S. Securities and Exchange Commission had its disgorgement authority challenged in Liu v. Securities and Exchange Commission. Similar to 13(b), the provision in question did not expressly authorize disgorgement.

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Product Manufacturing Companies

Each month The Ranks spotlights companies, people or trends that are important to the direct selling channels. This month, the Ranks list features Fastest Growing Young Companies

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Metrics Global announces industry veteran Lenny Crotty as President

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Metrics Global has announced the appointment of Lenny Crotty as President, assuming responsibility for overall business growth, go to market strategy and day-to-day operations for one of the leading global payments and fintech companies..

September Digital Edition - online now

Look for our September issue in your mailbox. Read a digital copy here. Current News, Risk Roundup, Special Report, The Ranks, People on the Move, The Optics, and more.

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July 2020

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DIRECT SELLING EXECUTIVES BREAK TRADITIONAL SILENCE

Usually quiet on social issues, major companies issue bold statements.

Historically reserved when it comes to speaking out publicly on social issues, the statements mark a rare move for direct sellers by wading into the area of advocacy on a high-profile topic laden with political context. Executives say they have already received pushback and criticism for speaking out—in certain cases for not taking a strong enough position. Meanwhile, some direct sellers are now even pledging to adjust fundamentals of their business—including advertising and marketing, hiring practices, and product lines—to be more racially inclusive as a result of recent events.

“This is a human issue, social issue and a justice issue.” --Ryan Napierski, President, Nu Skin

“The fact that leadership in companies has taken this stand is a very distinct change in culture.” --Connie Tang, former CEO, Princess House

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Voices

John Fleming Speaks to Stakeholders.

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Merchant Processing Companies

Each month, Ranks spotlights companies, people or trends that are important to the direct selling channels.

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July Issue Online Now

Look for our July issue in your mailbox. Read a digital copy here.

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December 2020

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Channel Evolutions Brings Changes to Model

Companies embrace shift in structure, comp plans to meet market demands

Perhaps at its most basic level, 2020 has offered opportunity to companies seeking an expanded horizon in which to operate. One such company is a familiar iconic brand that is creating a do-over. Years ago, as a member of the board at the iconic basket brand The Longaberger Company, Robert D’Loren says he remembers being in meetings where executives were presented with what amounted at the time to a futuristic vision for the business: using digital to take the company to new heights.

“We all knew it was coming, but the technology didn’t exist,” says D’Loren, who served on Longaberger’s board of directors from 2006 to 2008.Fast-forward roughly 15 years—and the well-known direct seller has reemerged with a digital-first mindset. At one time a billion-dollar company, Longaberger filed for bankruptcy and shut down in 2018.

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Quick Takes

What was your company’s biggest win in 2020?

The RANKS - Year-End Review

Each month The Ranks spotlights companies, people or trends that are important to the direct selling channels. See the 2020 Overview.

December Digital Edition

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October 2020

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U.S. Companies Dodge a Bullet in Trump’s WeChat Ban

App is critical for companies with distributors in China''

The Commerce Department regulations announced in September implement an executive order signed by President Trump in August to ban WeChat. The Trump administration had claimed the Chinese Communist Party was using data collected through WeChat to “threaten the national security, foreign policy and the economy of the U.S. ”In an interview with Fox Business News, U.S. Department of Commerce Secretary Wilbur Ross said that “for all practical purposes” his agency’s regulation will shut down WeChat in the US.

WeChat is a messaging and e-commerce app used by more than 1.2 billion people worldwide, and it’s essentially regarded as a super app in China, where it’s used widely for mobile payments, shopping and social networking. Distributors in China rely on the app for all of the above to conduct business.

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Neora To Resume Case Against FTC in Texas

Dismissal of case in Illinois allows company to fight in preferred venue. “Neora and Jeff Olson look forward to challenging the FTC’s overreach. As we said from the very beginning, we intend to defend ourselves and stand up for our industry with vigor.”—Neora company statement

Logistics and Fulfillment Companies

Each month The Ranks spotlights companies, people or trends that are important to the direct selling channels.

October Digital Edition - online now

The direct selling industry''s go-to source of compelling news and actionable insights. Social Selling News delivers channel professionals the latest in news, trends and developments inside the world of direct selling, along with special reports, informative articles, company rankings, interviews, supplier resources and more!

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January 2021

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FTC Launches Nationwide Crackdown on Income Claims

More than 50 enforcement actions taken in ''Operation Income Illusion''

On Dec. 14, the Federal Trade Commission (FTC), along with 19 federal, state, and local law enforcement partners announced a nationwide crackdown on “scams that target consumers with false promises of income and financial independence,” which, they say, have been particularly rampant during the pandemic.

The regulatory agency initiated four new enforcement actions and one new settlement alleging deceptive income claims in violation of the FTC Act and noted that these actions are part of its broader initiative “Operation Income Illusion,” intended to dramatically increase claims enforcement.