

Spring 2022
DSA SupplierSource Summer 2019
How Can 10 X Action be Easier Than 2x?
Marvelless Mark - Marvelless Mark Speaks
The Rock Star Mindset. Do you know that 10x actions or goals are easier to achieve than 2x? Here's what I mean. 2X action doesn't require transformation. 2X is working harder, longer, and doing more of what you're already doing. ("The definition of insanity remember? Doing the same thing over and over again and expecting different results.") More energy, more effort, more time. 2X requires you to speed things up. But remember this "what got you here won't get you there."But 10x action actually slows things down. 80% of what you are currently doing is stopping you from reaching 10x. To achieve 10x you have to go way deeper into your own "unique ability".
You have to focus and channel your energy and creativity into the one, two, no more than three things you do the best. Remember Dan Sullivan said if you have more than three priorities you have none. Your band-with is too wide. The basic principle comes from the book "who not how". It's quite simple. We need to find more "who's" to do the 80% that is slowing us down so we can focus on what we do best. I'm always happy to discuss the rock star strategy of figuring out that if, we're going to achieve something we need to be thinking about who can help us achieve this or who do we know that can do the how's for us. Then we can channel 100% of our energy and creativity on our end game.
After all, it's not Rocket Science, it's ROCK-IT Science.
5 Traits of Highly Effective Fulfillment Service Providers
Harry Drajpuch, CEO - Amware Fulfillment
It can take months or more to extricate your business from an order fulfillment company, so make sure your first choice is your best choice. Look for the following characteristics when choosing a fulfillment 3PL for direct sales.
1. Accurate Orders, Shipped On-Time
Gotta start here, right? It’s the core of every fulfillment 3PL’s value proposition. Great performance here helps protect your brand and solidifies customer relationships.
2. High flexibility/agility
Your direct sales business is unpredictable. Your fulfillment 3PL must be able to adapt operations on a dime to accommodate things like new product launches and flash sales.
3. Scalability
If you start with 50,000 shipments but have a vision to grow to five million annual shipments within a few years, you want a 3PL with the people, systems and operational expertise scale with you to meet that demand. Make sure your fulfillment solution is future-proof.
4. Partner vs Supplier Mentality
A 3PL relationship is about more than placing products in boxes. It’s about getting to know your goals and aspirations as a direct selling business and the needs of your buyers, then translating that knowledge into fulfillment solutions that are uniquely tailored to your business and your customers.
5. National Warehouse Footprint
If you support a national customer base from a single DC, high-zone parcel moves will substantially drive up parcel shipping costs – your single largest fulfillment expense. A fulfillment company with a national network can strategically locate your inventory across the country to provide fast, and affordable, shipping.
New Documentation Requirements Pose Delays and Cost Increase in Mexico
Rafael Miner - Miner Group LLC
New documentation requirements for transportation companies delivering products to Mexico, may cause delays and additional costs.
Mexico’s SAT has implemented a new set of regulations called "CFDI con complemento carta porte" that will be mandatory after March 1st, 2022. The Mexican Tax Administration Service (SAT) is a decentralized agency of the Ministry of Finance, which has the responsibility for implementing fiscal and customs legislation in Mexico.
The new documents will need to be completed and filed by the carrier, based on information provided by the supplier or buyer of the products before customs clearance, and whenever the vehicle drives more than 30kms over federal highways.
According to SAT, the new documents will allow the Mexican Government to:
a) Confirm the legal stay and/or possession of the products during their transfer in Mexico, as well as the origin and destination.
b) Confirm VAT withholding amount for the transportation services.
c) Provide detailed information about the goods, origin, destinations, owners, and operators involved in the transfer of the goods.
d) And mainly, to discourage contraband and tax evasion.
Once the “CFDI and carta porte” become mandatory, noncompliance with this requirement may have several immediate consequences
1 Seizure of hauled goods
2 Fines ( For both, the carrier and the owner of the products)
3 Non-Deductible VAT
It is very important for direct selling companies shipping products to Mexico to contact their carriers immediately, to confirm that the carriers are ready to comply with these new regulations to avoid any delays or additional costs.
Meaghan Maybee - pc/nametag
Today, making eco-conscious decisions isn’t just the moral thing to do, but the smart thing to do—especially when it comes to doing good business.
Sustainability initiatives involve much more than simply protecting our environment. Done right, they can save your organization significant money, boost its reputation, and reduce its reliance on unnecessary resources.
It is up to organizational leaders to set a precedent for greener meetings, events, and workplaces. But where should you start? Taking your corporate and social responsibility to new heights is easier than you may think.
First, position your brand as an advocate for sustainability through the virtual and in-person events you host. Events have historically contributed to a massive amount of annual waste and carbon emissions, so make this the year you pave the way towards a greener future for your industry.
Second, actively reduce waste through sustainable office and event supplies. Your team members and attendees will appreciate that you have provided 100% recyclable event passes, organic cotton lanyards, biodegradable badge ribbons, eco-conscious gifts and promo products, and more.
Opting for earth-friendly office and event supplies does not mean you need to sacrifice your budget, looks or quality! You can have it all—and decrease unnecessary waste in the process—by partnering with the right supplier.
Whether you want to decrease your carbon footprint or go carbon net-zero, get inspired by visiting pcnametag.com/sustainable-events where you will discover climate-positive products that will help you achieve your most ambitious sustainability goals, this year and beyond.
DirectScale Acquires DirecTech Labs
Brett Merritt - DirectScale
On March 4, 2022, DirectScale acquired of DirecTech Labs. The addition of the business intelligence and retention automation product, with the skilled leadership of Michel Bayan and Jordan Zommick proves DirectScale’s commitment to a platform that leverages sales enablement tools, data, and AI to help companies grow in new and measurable ways.
“DirecTech Labs has proven they can drive millions in new revenue for companies over and over again. We’re excited to add a faster path to our goal of actionable BI, innovate faster, and leverage the rare expertise of Michel, Jordan, and their team” says Rodger Smith, CEO at DirectScale. “This is the perfect combination to level up our company in a meaningful, industry-changing way.”
“This is a new vision to propel social selling into the age of personalization. No one has done this in social selling until now. Combining our technologies, experience, and skillsets delivers an enterprise-class platform that goes beyond the digital experience alone,” says Michel Bayan, CEO at DirecTech Labs.
The benefits of this acquisition to DirectScale clients and potential buyers include the largest and most diverse anonymized database of direct selling behavior ever gathered, the only Business Intelligence platform built specifically for direct and social selling, and an AI-driven alert system that drives tens of thousands of new revenue-producing activities for users each month.
These technology and leadership additions make DirectScale an even more attractive option for mid-tier, enterprise, and international clients.
Please contact mbayan@directscale.com for more information.
Compliance: What to Say When You Can’t Say Anything
Terrel F Transtrum - ServiceQuest
For years the field has been told “don’t say this!” and “can’t say that!” Any word or phrase related to making money is potentially risky, and claims related to products are similarly verboten. What can honest field associates actually do to convey their experience and excitement about product and opportunity?
These five points will give you confidence as you think about incremental improvements in compliance:
• Invest in coaching field reps to tell their personal stories powerfully and compliantly. Think: “how do I help our field reps powerfully and compliantly while avoiding the known put-offs and killers of authentic and relatable relationship building?”
• Leverage the power of unique journey maps that identify the actual path for customers and builders in your business.
• Measure at onboarding, measure before training, measure after training, and measure along the way. It’s not always possible to know or control impressions and expectations of a new customer or prospective field rep, but it’s on you to understand expectations and to correct or level-set once you accept the application and new account.
• Give your field reps the sales playbook with frameworks for plugging in personal story versions (celebration, recognition, struggles, next steps) and precise disclosure statements.
• Approach social media post review: (a) phrasing concern, (b) reason for the concern, (c) what to say instead, (d) alternative phrasing, (e) framework that can become a standard.
With careful focus, you can advance your policy requirements while helping field reps present their businesses with natural, compelling ease.
Using Data to Fight Product Diversion
Adam Scherman - Vorys eControl
Direct Sellers face special challenges when trying to control how their products are distributed online. While most consumer products companies typically distribute through somewhat limited networks of retailers and distributors, Direct Sellers provide a business opportunity that is far more open. Because it is easy to sign up as a distributor, Direct Sellers are vulnerable to all sorts of diversion schemes. Every new distributor that signs up is a potential source of diverted products.
But Direct Sellers also have an advantage that many overlook. Conventional retailers often use tiered-distribution, so they don’t always know who ends up selling their products. In contrast, Direct Sellers have direct relationships with all of their distributors.
Due to the nature of the business model, Direct Sellers have tremendous data about who buys their products and where they’re being shipped. Yet many Direct Sellers fail to leverage this data effectively.
Online diversion schemes have gotten more sophisticated recently. As online marketplaces are pressured to disclose more information about sellers, schemers have gotten better at concealing their identities and obtaining products in a more discrete manner. But, by using the routinely collected data, Direct Sellers can uncover major diversion schemes.
Sometimes it’s as simple as multiple Distributors sharing a home address, shipping address, or payment method. Other times it may be more complex. There are numerous possibilities, but any Direct Seller that is not analyzing the data at its disposal is missing an opportunity to shut down diversion schemes.
Creating an Unmatched Customer Journey
McKinley Oswald - Verb Technology Company
Customer expectations are at an all-time high. In fact, Salesforce Research found that “80% of customers now consider the experience a company provides to be as important as its products and services.”
Direct sales companies have a unique opportunity to create an authentic and engaging user experience by mobilizing individual distributors, but it’s your responsibility to provide your field with the resources they need to facilitate that experience. Your customers are the lifeblood of your business, and there are two straightforward ways to ensure you’re creating a customer journey that encourages brand loyalty and retention:
Promote personal connection. Research shows that consumers are far more likely to make a purchase if it’s recommended by a friend, so establishing a personal connection between your distributors and their customers is a key to driving sales. Encourage your distributors to reach out to their customers on an individual, personalized basis as often as possible, and consider providing social media sharing tools that can assist them in making those connections.
Utilize automation. A system that sends automatic follow-up reminders based on various triggers, like an upcoming shipment or a customer who has fallen inactive, can be a great asset to your field. This provides a perfect opportunity for your distributors to provide personalized communication with their customers, which can, in turn, lead to more frequent orders, increased order sizes, and a strengthened distributor-customer relationship.
The data is clear: crafting the ultimate customer experience is well worth the effort.
Canada Regulates Natural Health Products
Susan Delve - CCLS (Canada Cartage Logistics Solutions)
Health products containing naturally sourced medicinal ingredients are called Natural Health Products (NHP). They are intended to provide direct benefit to your health, including prevention/treatment of an illness or condition, reduction of health risks, and/or the maintenance of good health.
All NHPs sold in Canada are subject to NHP Regulations. To sell NHPs in Canada, a product license application must be submitted to Health Canada, providing evidence supporting the safety and efficacy of the NHP when used according to its recommended dosage. Health Canada determines whether the products are acceptable for sale in Canada. Approved NHPs are issued a product license along with an eight-digit Natural Product Number (NPN) or Homeopathic Medicine Number (DIN-HM), which must appear on the product label. As well, an NHP site license must also be in place. Through site licensing processes, Health Canada reviews all foreign manufacturing, packaging and labeling sites, confirming they meet Canadian Good Manufacturing Practices.
The Canadian regulatory landscape requirements for testing and stability can differ, and be more stringent, than other countries. At CCLS, we offer in-house regulatory consultants to help apply for licenses with Health Canada, guiding customers on the steps to get registered in Canada. We hold site licenses for importation and product labelling at our centers across Canada. We offer GMP compliant facilities, temperature/humidity monitoring, staff training, pest control, and sanitation. Our validated Warehouse Management System provides customers with full inventory control, lot-traceability, expiry date compliance, and recall support, important factors when importing NHPs into Canada.
How Effective Is Your Distributor Onboarding Experience?
Ami Perry, VP of Business Development - NOW Technology
When it comes to your onboarding experience, first impressions matter! An introduction to your culture and methods for success is a complex process that demands well-documented and deliberate steps. If done properly, an expertly crafted onboarding experience can help transform a promising new recruit into a top-performing salesperson. As with most things in life, timing is everything.
Your onboarding should leave new recruits with a clear sense of what they need to accomplish, but also a generous understanding of your mission, culture, and values – without making them feel overwhelmed. An interactive onboarding experience should be developed in incremental, timely, and focused phases and continue well beyond the first 30 days. You have a lot of resources to share, so be more systematic and personal in your approach to optimize their momentum and excitement!
Like most direct selling companies, you likely see a dip in activity around 60 days, but the key to overcoming that is providing significant guidance in an engaging way. A well-thought-out distributor experience will build confidence in your company and offer long-term success and retention.
NOW Technologies is the premier provider for digital solutions, with an experience-based approach to distributor onboarding. Our method takes a new recruit through bite-sized modules, personalized for their experience level. The strategy is to take a stroll through your brand, systems and essentials of getting started with a pace and cadence that fully maximizes the excitement that inspired them to join in the first place.
Building a Field of Social Sellers
Sam Hind Social Media Speaker & Trainer (exclusively to Direct Selling) - Auxano Global
Personal branding, social selling, influencing - all buzz words of 2022. There is no question that technology and digital platforms are the way forward in the direct selling industry BUT with that comes great risk…. What if we are relying too much on tech? The problem is, many have already crossed that bridge and are now scratching their heads, wondering what went wrong!
As direct selling companies embrace our digital world, we are seeing innovations like social selling platforms that allow distributors to schedule pre-made content and bots that automate communication. With all this technology at our fingertips, how could we fail?
The answer is, more easily than ever! For many, content has moved too much toward ‘systemising’ and too far away from real, relatable content. Have we lost sight of personal branding – the very core of what makes this industry what it is – our people?
The secret sauce is not the best technology, skills, or the sassiest dance moves on TikTok. The secret sauce is unique content, relatability, and personality that communicates our passion!
Our industry IS its people. When technology is prioritized over personality, we’ve lost our way. I’m a social media speaker and trainer, so I’m all for making the most of tech but the key is to use the tech to communicate YOU!
Personal branding is all about unlocking a distributor’s passion. Helping them find it, understand it and share it 💃 Product sales and recruiting naturally follows!
Sam Hind
Social Media Speaker & Trainer (exclusively to Direct Selling)
https://www.auxano.global
A Look Beyond... And Growth
George Elfond - Rallyware
In direct sales, the year 2021 was a story of growth, change, and evolution – particularly for distributors. As the pandemic continued and retail stores closed periodically, distributors dove headfirst into direct selling, embracing personalized training based on their goals to make the most of entrepreneurship.
We recorded 14.2% more users using performance enablement platforms than in 2020, and an overall uptick in distributor activity. As individuals continued to drop out of the traditional labor force, they increasingly turned to direct sales as an alternative.
At the same time, distributors spent more time focused on their growth journey – folks on Rallyware completed 17% more business tasks per day than in 2020. The more active reps are, the more likely they are to remain in direct sales, promoting distributor retention past their initial 90 days with the company.
Now that the pandemic seems – fingers crossed – in rear view, and people are reevaluating their workdays via the “great resignation,” the growth potential for direct sales looks limitless. People are open to non-traditional work arrangements, new ways of doing business. To seize the day, however, the direct selling industry will need the right tools to enable workforce performance and retention, to help their distributors thrive and evolve.
The Connection Between Failed Payments and Churn
Leanne Beattie - FlexPay
Customer retention is essential for any direct selling business and churn must always be reduced. Most companies know the common sources of churn: customer fatigue, competitive loss, and customer service issues. However, many companies don’t realize the biggest cause of churn: failed payments.
Failed payments cause involuntary churn because regular, recurring billing ends immediately. The customer doesn’t choose to stop receiving products, but it ends anyway when their payment isn’t successful.
Failed payments are legitimate transactions that are falsely declined by payment authorization systems. The customer wants to make the purchase, but the authorization system doesn’t have all the information needed to make the correct decision and ends up declining a legitimate transaction to avoid potential fraud.
Failed payments hurt direct selling companies. They cause lost customers now and lost revenue that would have been earned if the products had been delivered for the rest of the lifecycle. There’s more than one month’s transaction at stake.
Visa says recurring transactions are declined 24% of the time, on average. This means almost one in four transactions for recurring or multi-step payments are falsely declined. Fortunately, there are several effective failed payment recovery methods available, including rules-based recovery, email and SMS recovery (dunning), customer service recovery, and recovery using Artificial Intelligence and machine learning. Solutions that use AI and machine learning do not involve the customer, which is another driver of churn, so the recommended approach is for Direct Selling businesses to always start with this type of recovery solution.
Failed payments can’t be ignored. Act today for better customer retention tomorrow.
